THURSDAY, APRIL 9, 2015

Top Performing Dividend Funds:Beating The Market

MUTUAL FUNDS

BY DOUG ROGERSINVESTOR’S BUSINESS DAILY

Though they can’t be expected to do so in every period, dividend funds on average have made investors more money than the S&P 500 in the past 15 years. By how much? A $10,000 investment in the average dividend fund on March 31, 2000, would have grown to $24,941 by April 7 this year, according to Morningstar Inc. The same amount invested in the S&P 500 would have increased to $18,481.

SunAmerica’s Focused Dividend Strategy Portfolio has risen an average annual 9.56% the past 15 years vs. 4.10% for the S&P 500. The $9 billion fund, run by Timo-thy Pettee, Timothy Campion and Andrew Sheridan since 2013, has merger-bound Kraft Foods (NASDAQ:KRFT) as well as Lockheed Martin (NYSE:LMT) among its recent holdings.

Kraft has a dividend yield of 2.5%. Its IBD Relative Strength Rating jumped to 96 from 60 two

weeks ago, before the merger with Heinz was announced. Heinz is owned by 3G Capital and Warren Buffett’s Berkshire Hathaway (NYSE:BRKA). Berkshire (NYSE:BRKB) has an RS Rating of

56 and does not pay dividends to its shareholders.

Lockheed Martin, which makes military aircraft and combat sys-tems, has an RS Rating of 80 and has a dividend yield of 3%.

(#85743) Copyright 2015 by Investor’s Business Daily, Inc. Adapted with permission. To subscribe to Investor’s Business Daily, please call (800) 831-2525 or visit us online at Investors.com. For additional information about reprints or permissions to use Investor’s Business Daily content, please visit IBDreprints.com or contact PARS International Corp. at (212) 221-9595.

Source: Morningstar Inc.

Fund Symbol 2014 YTD 15-year avg 12-month yield

Dividend funds with assets of $100 million+Ranked by 15-year average annual returns as of 4/7/15

SunAmerica Focused Dividend Strategy A FDSAX 9.06% 3.77% 9.56% 2.27%TCW Relative Value Dividend Apprec N TGIGX 9.43 0.15 9.12 1.32Franklin Rising Dividends A FRDPX 9.72 0.47 8.61 1.15Columbia Dividend Income T GEQAX 12.42 0.19 7.59 1.94Hartford Dividend & Growth HLS IA HIADX 12.96 0.42 7.36 1.65Delaware Dividend Income A DDIAX 7.88 2.29 7.21 2.38BlackRock Equity Dividend Inv B MBDVX 8.21 -0.92 7.07 0.84Eaton Vance Dividend Builder A EVTMX 11.72 3.63 6.97 1.35Hartford Dividend & Growth A IHGIX 12.32 0.38 6.86 1.32Nuveen Dividend Value A FFEIX 8.41 -0.07 6.70 2.12T. Rowe Price Dividend Growth PRDGX 12.34 2.22 6.68 1.59Deutsche CROCI Equity Dividend A KDHAX 9.69 0.34 6.40 1.87Oppenheimer Rising Dividends A OARDX 10.93 0.20 6.38 0.80Vanguard Dividend Growth Inv VDIGX 11.85 1.34 6.00 1.83S&P 500 13.69 1.38 4.10 1.96

Growth of $10,000Beating The Market With Dividend Funds

5,000

10,000

15,000

20,000

$25,000

’15’14 ’13’12’11’10’09’08’07’06’05’04’03’02’01’00

Dividend funds$24,941

3/31/00 to 4/7/15

S&P 500 $18,481

SunAmerica Focused Dividend Strategy A FDSAX 9.06% 3.77% 9.56% 2.27%

PRINTED COPY FOR PERSONAL READING ONLY. NOT FOR DISTRIBUTION.

SunAmerica Focused Dividend Strategy PortfolioClass A: FDSAX Class B: FDSBX Class C: FDSTX Class W: FDSWX

For the periods ending September 30, 2015, the Focused Dividend Strategy Portfolio’s Morningstar Overall, 5-, and 10-year ratings are 5 stars and its 3-year rating is 3 stars. Overall Rating is based out of 1,211 funds in the Large Value category. The Fund ranked #76 out of 1,384 funds for 1 year, #95 out of 1,211 funds for 3 years, #18 out of 1,071 funds for 5 years and #1 out of 744 funds for 10 years. Morningstar is an independent investment research firm that rates the performance of mutual funds based on return and risk. For each fund with at least a 3-year history, Morningstar calculates a Morningstar Rating™ based on a Morningstar Risk-Adjusted Return measure that accounts for variations in a fund’s monthly performance (including the effects of sales charges, loads and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars and the bottom 10% receive 1 star. (Each share class is counted as a fraction of one fund within this scale and rated separately, which may cause slight variations in the distribution percentages.) The Overall Morningstar Rating for a fund is derived from a weighted average of the performance figures associated with its 3-, 5- and 10-year (if applicable) Morningstar Rating metrics. Morningstar Rating is for the A share class only; other classes may have different performance characteristics. Past performance is not a guarantee of future results. Focused funds are less diversified than typical mutual funds; therefore the performance of each holding in a focused fund has a greater impact upon the overall portfolio, which increases risk. Stocks of small-cap and mid-cap companies are generally more volatile than and not as readily marketable as those of larger companies, and may have less resources and a greater risk of business failure than do large companies. The Fund employs a Disciplined Strategy and will not deviate from its strategy (except to the extent necessary to comply with federal tax laws or other applicable laws). If the Fund is committed to a strategy that is unsuccessful, the Fund will not meet its investment goal. Because the Fund will not use certain techniques available to other mutual funds to reduce stock market exposure, the Fund may be more susceptible to general market declines than other mutual funds.Neither SunAmerica, its affiliates, nor their licensed sales professionals provide tax advice. Please consult with your tax professional for advice concerning your particular situation.

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 www.safunds.com. Investors should read the prospectus carefully before investing. Funds distributed by AIG Capital Services, Inc., member FINRA.

S5110AR3.2 (10/15)

5-Star Overall Morningstar Rating™(out of 1,211 funds in the Large Value category as of 9/30/15)

As of September 30, 2015 1-Year 3-Year 5-Year 10-Year

Morningstar Rating N/A* ★★★ ★★★★★ ★★★★★

Ranking (%) 6 8 2 1

Ranking (#) 76 out of 1,384 95 out of 1,211 18 out of 1,071 1 out of 744

Fund Return 0.18% 13.21% 14.29% 10.24%

Large Value Category Return -4.97% 10.27% 10.79% 5.26%

*Ratings not calculated by Morningstar for this time period

Performance data quoted represents past performance and is not a guarantee of future results. The data assumes reinvestment of all distributions at net asset value (NAV). Class A gross operating expenses: 1.07%. Class A maximum sales charge: 5.75%. The Fund’s daily NAV is not guaranteed and shares are not insured by the FDIC, the Federal Reserve Board or any other agency. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be higher or lower than the original cost. Current performance may be higher or lower than that shown. Performance as of the most recent month end is available at www.safunds.com.

Average Annual Returns (%) (Class A as of 9/30/15) 1-Year 3-Year 5-Year 10-Year Since Inception

At Net Asset Value 0.18% 13.21% 14.29% 10.24% 6.77%

With Maximum Sales Charge -5.59% 11.00% 12.95% 9.59% 6.41%

Combine the opportunity for capital appreciation with high dividend income.Contact your financial advisor for additional details.

S-5110-AR3.2.indd 1 10/28/15 1:44 PM