AIG Flexible Credit Fund

Class A: SHNAX • Class C: SHNCX • Class W: SHNWX

3 Key Reasons to Invest in the Flexible Credit Fund

The AIG Flexible Credit Fund offers investors a potential solution by actively investing in two specialized fixed income asset classes: floating rate loans and high-yield bonds. These asset classes, often referred to as leveraged finance, offer the opportunity for attractive income and total return, while helping to protect against interest rate risk.

Here are three key reasons to invest in the fund:

1. Active portfolio management — To make the most of market conditions and relative value opportunities, the Fund's portfolio management team has the flexibility to allocate 0% to 100% of its assets to either high-yield bonds or floating rate loans.

2. Opportunity for attractive income and total return — With yields in the 4-6% range as of June 30, 2014, floating rate loans and high-yield bonds have generated a high level of current income.1 They have also been among the top-performing asset classes in the global financial markets since 2008, posting annualized gains of 18.21% (high-yield bonds) and 13.51% (floating rate loans). Of course, past performance is not indicative of future results.2

3. Potential hedge against rising rates — High-yield bonds and floating rate loans have historically had low correlations to interest rates, making them potentially strong diversifiers to a traditional fixed income portfolio.3 Floating rate loans are less sensitive to interest rate movements because their coupons "float" with changes to a benchmark rate such as the London Interbank Offered Rate (LIBOR). High-yield bonds also have a built-in buffer against rising rates due to their high coupon rates and typically benefit from economic growth, usually seen in rising rate environments. See the chart below.

Note: Performance and yield data do not represent the performance of the SunAmerica Flexible Credit Fund. Past performance is not a guarantee of future results. High-Yield Bonds are represented by the Barclays U.S. Corporate High Yield Index. Floating Rate Loans are represented by the S&P/LSTA US Leveraged Loan Index. You may not invest directly in an index.

1 Data source: Bond Hub, 2014.
2 Data as of June 30, 2014. Data source: Zephyr StyleAdvisor, 2014.
3 Based on correlations to U.S. Treasuries from January 2001 to June 2014:  -0.19 for High-Yield Bonds and -0.37 for Floating Rate Loans. Treasuries are represented by the Barclays U.S. Treasury 7-10 Year Index. You may not invest directly in an index. Correlation is a statistical measure of how two securities move in relation to each other. This measure ranges from -1 to +1, where -1 indicates perfect negative correlation and +1 indicates perfect positive correlation.

Effective October 1, 2014, the name of the SunAmerica High Yield Bond Fund was changed to the SunAmerica Flexible Credit Fund and certain corresponding changes were made to the Fund's investment strategy and techniques. Prior to this date, the Fund was managed as a high-yield bond fund.

Interest rates and bond prices typically move inversely to each other. As interest rates rise, credit instruments typically fall, and as interest rates fall, credit instruments typically rise. Longer term and lower coupon bonds tend to be more sensitive to interest rate changes. Investments in loans and other floating-rate securities reduce interest rate risk. While interest rates on loans adjust periodically, these rates may not correlate to prevailing interest rates during the periods between rate adjustments. The Fund may be subject to a greater risk of rising interest rates due to the current period of historically low rates and the effect of potential government fiscal policy initiatives and resulting market reaction to those initiatives.

Investment in floating rate loans involves certain risks, including, among others, risks of nonpayment of principal and interest; collateral impairment; non-diversification and borrower industry concentration; and lack of full liquidity. Investments in non-investment-grade debt securities (“high-yield” or “junk” bonds) tend to have lower interest rate risk but may be subject to greater market fluctuations and risk of default or loss of income and principal than securities in higher rating categories. High yield debt instruments carry a greater default risk, may be more volatile, less liquid, more difficult to value and more susceptible to adverse economic conditions or investor perceptions than other debt instruments.