SunAmerica Launches New Fixed Income Portfolio Managed by David Albrycht of Newfleet Asset Management

The SunAmerica Flexible Credit Fund Actively Manages Exposure to High-Yield Bonds and Floating Rate Loans to Seek a High Level of Income and Total Return

JERSEY CITY, N.J.--()--SunAmerica Asset Management, LLC (SunAmerica) today announced the recent launch of the SunAmerica Flexible Credit Fund (the Fund). Sub-advised by Newfleet Asset Management, LLC (Newfleet), the Fund invests 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 potential for attractive income and total return while also helping to protect against interest rate risk.

“Being a flexible, opportunistic manager has been a major contributor to Newfleet’s past success, and we look forward to bringing that philosophy to SunAmerica.”

“We’re really excited to partner with David Albrycht from 20-time Lipper award winner Newfleet Asset Management,”1 said Mike Treske, Executive Vice President and Chief Distribution Officer at SunAmerica. “Floating rate loans and high-yield bonds have been among the best-performing fixed income asset classes since 2008,2 and we believe they have the potential to perform well in today’s changing interest rate environment.”

Unlike most traditional fixed income investments, which generally fall in value when interest rates rise, floating rate loans and high-yield bonds have the potential to appreciate in rising rate environments, and in a well-diversified portfolio, they may act as a natural hedge against interest rate risk.

“The SunAmerica Flexible Credit Fund offers investors the potential to generate yield, regardless of whether rates go up or down,” said David Albrycht, the Fund’s lead portfolio manager and the President and Chief Investment Officer of Newfleet. “The Fund has no allocation constraints between high-yield bonds and floating rate loans, giving it the flexibility to seek income and return opportunities in either market.”

The Fund’s active asset allocation strategy enables it to be responsive to interest rate trends, as well as other factors that may influence performance, including credit quality, market volatility and economic conditions. “This strategy fits perfectly with Newfleet's time-tested, multi-sector approach to fixed income investing, a style of investing we’ve adhered to for over 20 years,” added Albrycht.

“There are many floating rate loan funds or high-yield bond funds,” said Treske. “But few funds combine Newfleet’s leveraged finance expertise with its ability to shift assets quickly and without constraint between these two asset classes.”

“Current conditions within the fixed income market are constantly in flux presenting opportunities that we will look to leverage in the SunAmerica Flexible Credit Fund,” said Albrycht. “Being a flexible, opportunistic manager has been a major contributor to Newfleet’s past success, and we look forward to bringing that philosophy to SunAmerica.”

The SunAmerica Flexible Credit Fund is managed by an experienced team of investment professionals, consisting of David L. Albrycht, CFA, President and Chief Investment Officer; Frank Ossino, Senior Managing Director, and Jonathan Stanley CFA, Managing Director. Each member of the team has over 17 years of leveraged finance market experience.

Past performance is not indicative of future results.

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 may 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 than in past years 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.

Investments in floating rate loans involve 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.

SunAmerica Asset Management, LLC, the investment adviser to the Fund, offers a broad range of retail mutual fund offerings, including unique investment products designed to meet targeted objectives such as alternative strategies, global allocation portfolios and focused dividend strategies. The company’s investment management approach combines strong in-house talent with highly respected independent money managers. As of July 31, 2014, SunAmerica Asset Management, LLC managed and/or administered approximately $69.1 billion of assets. SunAmerica Asset Management, LLC is a member of American International Group, Inc. (AIG).

AIG is the marketing name for the worldwide property-casualty, life and retirement, and general insurance operations of American International Group, Inc., a leading international insurance organization serving customers in more than 130 countries. AIG companies serve commercial, institutional, and individual customers through one of the most extensive worldwide property-casualty networks of any insurer. In addition, AIG companies are leading providers of life insurance and retirement services in the United States. All products and services are written or provided by subsidiaries or affiliates of American International Group, Inc. Products or services may not be available in all countries, and coverage is subject to actual policy language. AIG common stock is listed on the New York Stock Exchange and the Tokyo Stock Exchange.

Newfleet Asset Management is an independent and unaffiliated investment sub-adviser to SunAmerica.

Investors should carefully consider a Fund’s investment objectives, risks, charges and expenses before investing. The prospectus, containing this and other important information, can be obtained from your financial advisor, the SunAmerica Sales Desk at 800-858-8850, ext. 6003, or at Read the prospectus carefully before investing.

SunAmerica Mutual Funds are distributed by AIG Capital Services Inc., member FINRA.

Harborside Financial Center, 3200 Plaza 5, Jersey City, NJ 07311-4992, 800-858-8850

S5095PRS (10/14)

1 Newfleet’s investment team manages the Virtus Multi-Sector Short Term Bond Fund, the Virtus Multi-Sector Intermediate Bond Fund, the Virtus Multi-Sector Fixed Income Series and the DTF Tax-Free Income, Inc. Fund. Lipper recognized the Virtus (formerly Phoenix) Multi-Sector Short Term Bond Fund with 14 Performance Achievement Certificates (PACs) and 3 Fund Awards in the Lipper Short/Intermediate Investment Grade Debt Category from 1996 through 2012. The Virtus (formerly Phoenix) Multi-Sector Intermediate Bond Fund received a PAC in the Lipper General Bond Funds Category in 1994. The Virtus (formerly Phoenix Edge Series Fund) Multi-Sector Fixed Income Series earned a PAC in the Lipper Corporate Debt Funds BBB-Rated Category in 1999. The DTF Tax-Free Income, Inc. Fund received a PAC in the Lipper Closed-End Bond Funds General Muni Debt Fund Category in 2008.

2 Data source: Zephyr StyleAdvisor, 2014. High-yield bonds and floating rate loans posted annualized gains of 16.97% and 12.81% respectively from January 2009 through September 2014. High-yield bonds are represented by the Barclays U.S. Corporate High Yield Index, an unmanaged index of fixed rate non-investment grade debt. Floating rate loans are represented by the S&P/LSTA US Leveraged Loan Index, a market capitalization-weighted index that tracks the performance of the floating rate loan market. Individuals may not invest directly in an index.


for SunAmerica Asset Management, LLC
Linda Malamut, 310-772-6533
Jim Nichols, 201-324-6860