Convertible
Securities Risk. The values of the convertible securities in which the Portfolio may invest will
be affected by market interest rates, the risk that the issuer may default on
interest or principal payments and the value of the underlying common stock into which these securities may be converted. Specifically, certain types of convertible securities may pay
fixed interest and dividends; their values may fall if market interest rates rise
and rise if market interest rates fall. Additionally, an issuer may have the
right to buy back or “call” certain of the convertible securities at a time unfavorable to the Portfolio.
Small- and Mid-Cap Companies Risk. Companies with smaller market capitalizations (particularly under $1 billion depending on the market) tend to be at early stages of development with limited product lines,
operating histories, market access for products, financial resources, access to
new capital, or depth in management. It may be difficult to obtain reliable information and financial data about these companies. Consequently, the securities of smaller companies may not be as readily
marketable and may be subject to more abrupt or erratic market movements than
companies with larger capitalizations. Securities of medium-sized companies are also subject to
these risks to a lesser extent.
Value Investing Risk. The subadviser’s judgment that a particular security is undervalued in relation to the company’s fundamental economic
value may prove incorrect.
Illiquidity Risk. An illiquid investment is any investment that the Portfolio reasonably expects cannot be sold or disposed of in current market
conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment. Illiquidity risk exists when particular
investments are difficult to sell. Although most of the Portfolio’s investments must be liquid at the time of investment, investments may lack liquidity after purchase by the
Portfolio, particularly during periods of market turmoil. When the Portfolio holds illiquid investments, its investments may be harder to value, especially in changing markets, and if
the Portfolio is forced to sell these investments to meet redemption requests or
for other cash needs, the Portfolio may suffer a loss. In addition, when there is illiquidity in the market for certain investments, the Portfolio, due to limitations on illiquid investments, may be unable
to achieve its desired level of exposure to a certain sector. When there is little or no active trading market for specific types of securities, it can become more difficult to
sell the securities at or near their perceived value. In such a market, the value of such securities and the Portfolio’s share price may fall dramatically. Portfolios that invest
in non-investment grade fixed income securities and emerging market country
issuers will be especially
subject to the risk that during certain periods, the liquidity of particular issuers or industries, or all securities within a particular investment category, will shrink or
disappear suddenly and without warning as a result of adverse economic, market or political
events, or adverse investor perceptions.
Issuer Risk. The value of a security may decline for a
number of reasons directly related to the issuer, such as management performance,
financial leverage and reduced demand for the issuer’s goods and services.
Management Risk. The Portfolio is subject to management risk because it is an actively-managed investment portfolio. The Portfolio’s portfolio managers apply investment techniques and
risk analyses in making investment decisions, but there can be no guarantee that
these decisions or the individual securities selected by the portfolio managers will produce the
desired results.
Market Risk. The Portfolio’s share price or the market as a whole can decline for many reasons or be adversely
affected by a number of factors, including, without limitation: weakness in the
broad market, a particular industry, or specific holdings; adverse political, regulatory or economic developments in the United States or abroad; changes in investor psychology; heavy
institutional selling; military confrontations, war, terrorism and other armed
conflicts, disease/virus outbreaks and epidemics; recessions; taxation and
international tax treaties; currency, interest rate and price fluctuations; and other conditions or events. In addition, the subadviser’s assessment of securities held in the
Portfolio may prove incorrect, resulting in losses or poor performance even in a rising
market.
Affiliated Fund
Rebalancing Risk. The Portfolio may be an investment option for other mutual funds for which
SunAmerica serves as investment adviser that are managed as “funds of
funds.” From time to time, the Portfolio may experience relatively large redemptions or investments due to the rebalancing of a fund of funds. In the event of such redemptions or
investments, the Portfolio could be required to sell securities or to invest cash at a time when
it is not advantageous to do so.
ESG Investment Risk. The Portfolio’s adherence to its ESG criteria and application of related analyses when selecting investments may impact the
Portfolio’s performance, including relative to similar funds that do not
adhere to such criteria or apply such analyses. Additionally, the
Portfolio’s adherence to its ESG criteria and application of related analyses in connection with identifying and selecting investments may require subjective analysis and may be more
difficult if data about
