ANCHOR SERIES TRUST · 2020. 1. 21. · Pursuant to Rules 497(k) and 497(e) Registration No....

Pursuant to Rules 497(k) and 497(e)

Registration No. 002-86188

ANCHOR SERIES TRUST

SA BlackRock Multi-Asset Income Portfolio

(the “Portfolio”)

Supplement dated October 10, 2019 to the Summary Prospectus,

Prospectus and Statement of Additional Information (“SAI”),

each dated May 1, 2019, as amended and supplemented to date

On October 4, 2019, the Board of Trustees (the “Board”) of Anchor Series Trust (the “Trust”) approved a Plan of

Liquidation (“Plan”), subject to shareholder approval, to liquidate the Portfolio, a series of the Trust, and the

submission of the Plan to contractholders of variable annuity contracts (“contractholders”) who have selected the

Portfolio for investment through those contracts and therefore have a beneficial interest in shares of the Portfolio.

Proxy materials describing the Plan will be mailed to contractholders and contractholders of record will have the

right to provide voting instructions with respect to the Portfolio at a special meeting of shareholders to be held at

a later date for the purpose of gaining shareholder approval of the Plan. If approved, the liquidation of the

Portfolio (the “Liquidation”) is expected to occur on or about January 30, 2020, or such other date as an officer

of the Trust shall determine (the “Liquidation Date”).

In order to convert all portfolio securities of the Portfolio to cash or cash equivalents in preparation for the

Liquidation, the Portfolio is expected to deviate from its stated investment goal and investment strategies until it

is liquidated on the Liquidation Date.

Any assets that remain in the Portfolio on the Liquidation Date will be automatically reinvested in shares of the

Goldman Sachs Government Money Market Fund, a series of Goldman Sachs Variable Insurance Trust, in

accordance with instructions from the insurance companies that sponsor the variable annuity contracts for which

the Portfolio serves as an investment option.

Liquidation of Assets. Pursuant to the Plan, on the Liquidation Date, the Portfolio will distribute pro rata to the

Portfolio’s shareholders of record, as of the close of business on the Liquidation Date, all of the remaining assets

of the Portfolio in complete cancellation and redemption of all of the outstanding shares of beneficial interest of

the Portfolio, less an estimated amount necessary to discharge (a) any unpaid liabilities and obligations of the

Portfolio on the Portfolio’s books on the date of the first distribution, and (b) liabilities as the Board shall

reasonably deem to exist against the assets of the Portfolio.

Purchases and Transfers into the Portfolio. Purchases and transfers into the Portfolio will not be accepted

beginning on November 11, 2019, for those individuals who purchase a new variable annuity contract on or after

this date. Purchases and transfers into the Portfolio will be accepted, however, until the Liquidation Date for

existing contractholders. The Portfolio will continue to accept reinvestments of dividends and capital gain

distributions from existing shareholders until the Liquidation Date. To the extent there are any dividend

payments prior to the Liquidation Date, they will be automatically reinvested in additional shares of the Portfolio.

Transfers out of the Portfolio. Contractholders may transfer out of the Portfolio into any other investment

option available under their respective contracts at any time prior to the Liquidation Date. Transfers out of the

Portfolio prior to the Liquidation Date and transfers out of the Goldman Sachs Government Money Market Fund

within 30 days after the Liquidation Date will not count as a transfer for purposes of transfer limitations under

the contracts. Please see the Trust’s Prospectus for information about other funds available for investment that

are offered by the Trust. Please see your product prospectus for more information on transfers, including any

restrictions on transfers into the Portfolio before the Liquidation Date, and other investment options available

under your contract.

U.S. Federal Income Tax Matters. Contractholders are not expected to incur any tax liability in connection

with the Liquidation of the Portfolio. Certain limitations on the current deductibility of losses may apply. Please

consult with your tax adviser for details.

Disclosure Changes. Assuming the Liquidation of the Portfolio occurs, all references to and related to the

Portfolio and its subadviser, BlackRock Investment Management, LLC, in the Trust’s registration statement

(including the Prospectus and the SAI) will be deleted effective upon the Liquidation Date.

Capitalized terms used in this Supplement shall, unless otherwise defined herein, have the same meaning as

given in the Summary Prospectus, Prospectus and/or SAI.

This Supplement should be retained for future reference.

SCSP-03311Y-BMI1 (10/19)

PROSPECTUSMay 1, 2019

ANCHOR SERIES TRUST(Class 1, Class 2 and Class 3 Shares)

SA BlackRock Multi-Asset Income PortfolioSA PGI Asset Allocation Portfolio (formerly, SA Edge Asset Allocation Portfolio)

SA Wellington Capital Appreciation PortfolioSA Wellington Government and Quality Bond Portfolio

SA Wellington Strategic Multi-Asset Portfolio

This Prospectus contains information you should know before investing, including information about risks. Please readit before you invest and keep it for future reference.

The Securities and Exchange Commission has not approved or disapproved these securities or passed upon theadequacy of this Prospectus. Any representation to the contrary is a criminal offense.

Topic Page

Portfolio Summaries ................................................................................................................................................................ 1SA BlackRock Multi-Asset Income Portfolio ................................................................................................................ 1SA PGI Asset Allocation Portfolio (formerly, SA Edge Asset Allocation Portfolio) ..................................................... 7SA Wellington Capital Appreciation Portfolio ............................................................................................................... 11SA Wellington Government and Quality Bond Portfolio ............................................................................................... 14SA Wellington Strategic Multi-Asset Portfolio .............................................................................................................. 17

Important Additional Information ........................................................................................................................................... 21Additional Information About the Portfolios’

Investment Strategies and Investment Risks ........................................................................................................................ 22Glossary ................................................................................................................................................................................... 24

Investment Terms............................................................................................................................................................ 24About the Indices............................................................................................................................................................ 27Risk Terminology............................................................................................................................................................ 28

Management............................................................................................................................................................................. 35Account Information ............................................................................................................................................................... 37Financial Highlights................................................................................................................................................................. 40For More Information .............................................................................................................................................................. 45

TABLE OF CONTENTS

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Investment Goals

The investment goal of the SA BlackRock Multi-Asset IncomePortfolio (the “Portfolio”) is current income with a secondarygoal of capital appreciation.

Fees and Expenses of the Portfolio

This table describes the fees and expenses that you may pay ifyou buy and hold shares of the Portfolio. The Portfolio’s annualoperating expenses do not reflect the separate account feescharged in the variable annuity or variable life insurance policy(“Variable Contracts”) in which the Portfolio is offered. Ifseparate account fees were shown, the Portfolio’s annualoperating expenses would be higher. Please see your VariableContract prospectus for more details on the separate accountfees.

Annual Portfolio Operating Expenses (expenses that you payeach year as a percentage of the value of your investment)

Class 1 Class 3

Management Fees ......................................... 1.00% 1.00%Service (12b-1) Fees..................................... None 0.25%Other Expenses............................................. 0.25% 0.25%Acquired Fund Fees and Expenses ............... 0.33% 0.33%Total Annual Portfolio Operating

Expenses1.................................................. 1.58% 1.83%Fee Waivers and/or Expense

Reimbursements2,3.................................... -0.67% -0.67%Total Annual Portfolio Operating

Expenses After Fee Waivers and/orExpense Reimbursements1,2,3 ................... 0.91% 1.16%

1 Total Annual Portfolio Operating Expenses do not correlate to the ratio ofnet expenses to average net assets provided in the Financial Highlights table,which reflects the operating expenses of each class and does not includeAcquired Fund Fees and Expenses.

2 Pursuant to a Fee Waiver Agreement, SunAmerica Asset Management, LLC(“SunAmerica”) is contractually obligated to waive a portion of itsmanagement fees with respect to the Portfolio so that the management feerate payable by the Portfolio to SunAmerica is 0.80% of the Portfolio’saverage daily net assets on the first $100 million, 0.77% on the next$400 million, 0.75% on the next $500 million and 0.72% thereafter. This FeeWaiver Agreement will continue in effect until April 30, 2020. SunAmericahas also contractually agreed to waive a portion of its management fee withrespect to the Portfolio in an amount equal to the Portfolio’s expenses relatedto investments in exchange traded funds (“ETFs”) managed or advised byBlackRock Investment Management, LLC (“BlackRock”) or its affiliates,and this waiver will continue so long as the Portfolio invests in such ETFs.

3 Pursuant to an Expense Limitation Agreement, SunAmerica hascontractually agreed to waive its fees and/or reimburse the expenses of thePortfolio until April 30, 2020, so that the Portfolio’s “Total Annual PortfolioOperating Expenses After Fee Waivers and/or Expense Reimbursements” donot exceed 0.58% for Class 1 shares and 0.83% for Class 3 shares. Forpurposes of the Expense Limitation Agreement, “Total Annual PortfolioOperating Expenses” shall not include extraordinary expenses (i.e.,expenses that are unusual in nature and infrequent in occurrence, such aslitigation), acquired fund fees and expenses, brokerage commissions andother transactional expenses relating to the purchase and sale of portfoliosecurities, interest, taxes and governmental fees, and other expenses notincurred in the ordinary course of Anchor Series Trust’s (the “Trust”)business on behalf of the Portfolio. Any waivers and/or reimbursements

made by SunAmerica with respect to the Portfolio are subject to recoupmentfrom the Portfolio within two years after the occurrence of any such waiversand/or reimbursements, provided that the recoupment does not cause theexpense ratio of the share class to exceed the lesser of (a) the expenselimitation in effect at the time the waivers and/or reimbursements occurred,or (b) the current expense limitation of that share class. This Agreement maybe terminated prior to April 30, 2020 by the Board of Trustees, including amajority of the trustees who are not “interested persons” of the Trust asdefined in the Investment Company Act of 1940, as amended.

Expense Example

This Example is intended to help you compare the cost ofinvesting in the Portfolio with the cost of investing in othermutual funds. The Example assumes that you invest $10,000 inthe Portfolio for the time periods indicated and then redeem allof your shares at the end of those periods. The Example alsoassumes that your investment has a 5% return each year and thatthe Portfolio’s operating expenses remain the same and that allfee waivers and/or reimbursements remain in place untilApril 30, 2020. The Example does not reflect charges imposedby the Variable Contract. If the Variable Contract fees werereflected, the expenses would be higher. See the VariableContract prospectus for information on such charges. Althoughyour actual costs may be higher or lower, based on theseassumptions and the net expenses shown in the fee table, yourcosts would be:

1 Year 3 Years 5 Years 10 Years

Class 1 Shares ............... $ 93 $433 $797 $1,822Class 3 Shares ............... 118 510 928 2,093

Portfolio Turnover

The Portfolio pays transaction costs, such as commissions,when it buys and sells securities (or “turns over” its portfolio).A higher portfolio turnover rate may indicate higher transactioncosts. These costs, which are not reflected in annual portfoliooperating expenses or in the Example, affect the Portfolio’sperformance.

During the most recent fiscal year, the Portfolio’s portfolioturnover rate was 13% of the average value of its portfolio.

Principal Investment Strategies of the Portfolio

The Portfolio’s principal investment strategy is to activelyallocate the Portfolio’s assets among a broad range of income-producing investments, including fixed income securities andequity securities. The Portfolio may invest up to 100% of itsassets in fixed income securities and up to 80% of its assets inequity securities. The Portfolio may also invest all or a portionof its assets in ETFs, including ETFs affiliated with thePortfolio’s subadviser, that provide exposure to fixed incomesecurities, equity securities or other asset classes. Whenselecting investments for the Portfolio, the Portfolio’ssubadviser employs a tactical asset allocation strategy that seeksto allocate assets across a broad range of income-producinginvestments, while also employing a proprietary volatility

PORTFOLIO SUMMARY: SA BLACKROCK MULTI-ASSET INCOME PORTFOLIO

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control process that seeks to reduce risk when market volatilityis expected to exceed normal ranges.

The fixed income securities in which the Portfolio intends toinvest, or obtain exposure to through investments in ETFs,include corporate bonds and notes, mortgage-backed securities,asset-backed securities, convertible securities and governmentobligations. The Portfolio may invest in, or obtain exposure to,fixed income securities that are rated investment grade or belowinvestment grade (commonly referred to as high-yield or “junk”bonds), and may at times allocate a significant portion of itsassets to below investment grade securities (including distressedsecurities). The fixed income securities in which the Portfoliointends to invest, or obtain exposure to, may be those of U.S. orforeign (non-U.S.) issuers, including emerging market issuers,and may be denominated in U.S. dollars or foreign currencies.The Portfolio may invest in fixed income securities of anymaturity and the Portfolio does not have any policy with respectto average duration or average maturity. The average duration ofthe Portfolio is determined at the discretion of the portfoliomanagers and is expected to vary based on market conditions,interest rates and other factors.

The equity securities in which the Portfolio intends to invest, orobtain exposure to through investments in ETFs, includecommon stock, preferred stock and securities convertible intocommon and preferred stock. The Portfolio generally intends toinvest in dividend paying stocks. The Portfolio may invest in, orobtain exposure to, equity securities of companies of any marketcapitalization. The equity securities in which the Portfoliointends to invest, or obtain exposure to, may be those of U.S. orforeign issuers, including emerging market issuers, and may bedenominated in U.S. dollars or foreign currencies.

The Portfolio may also invest in master limited partnerships(“MLPs”), U.S. and foreign real estate investment trusts(“REITs”) and floating rate securities (including floating rateloans). The Portfolio may invest in structured notes that provideexposure to covered call options or other types of financialinstruments. The Portfolio may invest up to 15% of its totalassets in collateralized debt obligations (“CDOs”), includingcollateralized loan obligations (“CLOs”).

The Portfolio may use derivative instruments, including futuresor options, total return swaps and foreign currency contracts.The Portfolio may also engage in option writing to generateadditional income in the Portfolio. The Portfolio typically usesderivatives to obtain investment exposure to certain asset classesor securities, to enhance return and/or as part of a strategydesigned to reduce exposure or risk. The Portfolio also usescurrency forward contracts and interest rate futures to manageforeign currency, duration and yield curve positioning withinthe fixed income portion of the Portfolio.

The Portfolio may allocate without limitation assets into cash orshort-term fixed income securities, and away from riskier assetssuch as equity and high yield fixed income securities. Whenvolatility decreases, the Portfolio may move assets out of cashand back into riskier securities. The Portfolio may, at times,invest significantly in cash.

Principal Risks of Investing in the Portfolio

As with any mutual fund, there can be no assurance that thePortfolio’s investment goals will be met or that the net return onan investment in the Portfolio will exceed what could have beenobtained through other investment or savings vehicles. Shares ofthe Portfolio are not bank deposits and are not guaranteed orinsured by any bank, government entity or the Federal DepositInsurance Corporation. If the value of the assets of the Portfoliogoes down, you could lose money.

The following is a summary of the principal risks of investing inthe Portfolio.

These risks may apply as a result of the Portfolio’s directinvestments in securities or other instruments or through itsexposure to the underlying securities and other instruments heldby the ETFs in which the Portfolio invests.

Fixed Income Securities Risk. The Portfolio investssignificantly in, or obtains significant exposure to, various typesof fixed income securities. As a result, the value of yourinvestment in the Portfolio may go up or down in response tochanges in interest rates or defaults (or even the potential forfuture default) by issuers of fixed income securities. To theextent the Portfolio is invested in the bond market, movementsin the bond market may affect its performance. In addition,individual fixed income securities selected for the Portfolio mayunderperform the market generally.

Interest Rate Fluctuations Risk. Fixed income securities maybe subject to volatility due to changes in interest rates. Durationis a measure of interest rate risk that indicates how price-sensitive a bond is to changes in interest rates. Longer-term andlower coupon bonds tend to be more sensitive to changes ininterest rates. Interest rates have been historically low, so thePortfolio faces a heightened risk that interest rates may rise. Forexample, a bond with a duration of three years will decrease invalue by approximately 3% if interest rates increase by 1%.Recent and potential future changes in monetary policy made bycentral banks and/or their governments are likely to affect thelevel of interest rates.

Credit Risk. The creditworthiness of the issuer is always afactor in analyzing fixed income securities. An issuer with alower credit rating will be more likely than a higher rated issuerto default or otherwise become unable to honor its financial


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obligations. An issuer held in the Portfolio may not be able tohonor its financial obligations, including its obligations to thePortfolio.

Prepayment Risk. Prepayment risk is the possibility that theprincipal of a loan or fixed income security may be prepaid priorto its maturity. As a general rule, prepayments increase during aperiod of falling interest rates and decrease during a period ofrising interest rates. The overall interest rate environment,general business conditions, an issuer’s or borrower’s financialcondition and competitive conditions among lenders are alsofactors that may increase or decrease the frequency ofprepayments. Prepayments may reduce the potential for pricegains and may result in the Portfolio having to reinvest proceedsof these securities at lower interest rates.

Risk of Investing in Junk Bonds. The Portfolio may invest in,or obtain exposure to, high-yield, high risk bonds commonlyknown as “junk bonds,” which are considered speculative. Junkbonds carry a substantial risk of default or of changes in theissuer’s creditworthiness, or they may already be in default at thetime of purchase.A junk bond’s market price may fluctuate morethan higher-quality securities and may decline significantly. Inaddition, it may be more difficult for the Portfolio to dispose ofjunk bonds or to determine their value. Junk bonds may containredemption or call provisions that, if exercised during a periodof declining interest rates, may force the Portfolio to replace thesecurity with a lower yielding security. If this occurs, it willdecrease the value of your investment in the Portfolio.

Distressed Securities Risk. Distressed securities arespeculative and involve substantial risks in addition to the risksof investing in junk bonds. The Portfolio will generally notreceive interest payments on the distressed securities and mayincur costs to protect its investment. In addition, distressedsecurities involve the substantial risk that principal will not berepaid. These securities may present a substantial risk of defaultor may be in default at the time of investment. The Portfolio mayincur additional expenses to the extent it is required to seekrecovery upon a default in the payment of principal of or intereston its portfolio holdings. In any reorganization or liquidationproceeding relating to a portfolio company, the Portfolio maylose its entire investment or may be required to accept cash orsecurities with a value less than its original investment.Distressed securities and any securities received in an exchangefor such securities may be subject to restrictions on resale.

Mortgage- and Asset-Backed Securities Risk. Mortgage- andasset-backed securities represent interests in “pools” ofmortgages or other assets, including consumer loans orreceivables held in trust. The characteristics of these mortgage-backed and asset-backed securities differ from traditional fixed-income securities. Mortgage-backed securities are subject toprepayment risk (described above) and “extension risk.”Extension risk is the risk that, when interest rates rise, certainobligations will be paid off by the obligor more slowly than

anticipated, causing the value of these securities to fall. Smallmovements in interest rates (both increases and decreases) mayquickly and significantly reduce the value of certain mortgage-backed securities. These securities also are subject to risk ofdefault on the underlying mortgage, particularly during periodsof economic downturn.

Convertible Securities Risk. The values of the convertiblesecurities in which the Portfolio may invest will be affected bymarket interest rates, the risk that the issuer may default oninterest or principal payments and the value of the underlyingcommon stock or preferred stock into which these securitiesmay be converted. Specifically, certain types of convertiblesecurities may pay fixed interest and dividends; their values mayfall if market interest rates rise and rise if market interest ratesfall. Additionally, an issuer may have the right to buy back or“call” certain of the convertible securities at a time unfavorableto the Portfolio.

Foreign Sovereign Debt Risk. Foreign sovereign debtsecurities are subject to the risk that a governmental entity maydelay or refuse to pay interest or to repay principal on itssovereign debt, due, for example, to cash flow problems,insufficient foreign currency reserves, political, social andeconomic considerations, the relative size of the governmentalentity’s debt position in relation to the economy or the failure toput in place economic reforms required by the InternationalMonetary Fund or other multilateral agencies. If a governmentalentity defaults, it may ask for more time in which to pay or forfurther loans.

U.S. Government Securities Risk. Obligations issued byagencies and instrumentalities of the U.S. Government vary inthe level of support they receive from the U.S. Government. Themaximum potential liability of the issuers of some U.S.Government securities held by the Portfolio may greatly exceedtheir current resources, including their legal right of supportfrom the U.S. Treasury. It is possible that these issuers will nothave the funds to meet their payment obligations in the future.The U.S. Government may choose not to provide financialsupport to U.S. Government sponsored agencies orinstrumentalities if it is not legally obligated to do so, in whichcase, if the issuer defaulted, the Portfolio might not be able torecover its investment from the U.S. Government.

Equity Securities Risk. The Portfolio invests significantly in,or obtains significant exposure to, equities. As a result, the valueof your investment in this Portfolio may fluctuate in response tostock market movements. In addition, individual stocks selectedfor the Portfolio may underperform the market generally for avariety of reasons, including poor company earnings results.You should be aware that the performance of different types ofequity stocks may rise or decline under varying marketconditions — for example, “value” stocks may perform wellunder circumstances in which the prices of “growth” stocks ingeneral have fallen, or vice versa.


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Issuer Risk. The value of a security may decline for a numberof reasons directly related to the issuer, such as managementperformance, financial leverage and reduced demand for theissuer’s goods and services.

Preferred Stock Risk. Unlike common stock, preferred stockgenerally pays a fixed dividend from a company’s earnings andmay have a preference over common stock on the distribution ofa company’s assets in the event of bankruptcy or liquidation.Preferred stockholders’ liquidation rights are subordinate to thecompany’s debt holders and creditors. If interest rates rise, thefixed dividend on preferred stocks may be less attractive and theprice of preferred stocks may decline.

Small- and Medium-Sized Companies Risk. Securities ofsmall- and medium-sized companies are usually more volatileand entail greater risks than securities of large companies.

Foreign Investment Risk. The Portfolio’s investments in thesecurities of foreign issuers or issuers with significant exposureto foreign markets involve additional risk. Foreign countries inwhich the Portfolio invests may have markets that are less liquid,less regulated and more volatile than U.S. markets. The value ofthe Portfolio’s investments may decline because of factorsaffecting the particular issuer as well as foreign markets andissuers generally, such as unfavorable government actions, andpolitical or financial instability. Lack of information may alsoaffect the value of these securities. The risks of foreigninvestments are heightened when investing in issuers inemerging market countries.

Emerging Markets Risk. Risks associated with investments inemerging markets may include: delays in settling portfoliosecurities transactions; currency and capital controls; greatersensitivity to interest rate changes; pervasive corruption andcrime; exchange rate volatility; inflation, deflation or currencydevaluation; violent military or political conflicts; confiscationsand other government restrictions by the United States or othergovernments; and government instability. As a result,investments in emerging market securities tend to be morevolatile than investments in developed countries.

Currency Volatility Risk. The value of the Portfolio’s foreigninvestments may fluctuate due to changes in currency exchangerates. A decline in the value of foreign currencies relative to theU.S. dollar generally can be expected to depress the value of thePortfolio’s non-U.S. dollar-denominated securities.

ETF Risk. An investment in an ETF generally presents the sameprimary risks as an investment in a conventional fund (i.e., onethat is not exchange-traded) that has the same investmentobjectives, strategies and policies. In addition, an ETF may failto accurately track the market segment or index that underlies itsinvestment objective. The price of an ETF can fluctuate, and thePortfolio could lose money investing in an ETF.

Affiliated Fund Risk. The Portfolio’s subadviser selects theETFs in which the Portfolio may invest, including ETFs that areaffiliated with the subadviser. As a result, the subadviser may besubject to potential conflicts of interest in selecting the affiliatedETFs because of the fees payable by the ETFs to the subadviserand also because the fees payable to it by some of these ETFsare higher than the fees payable by other ETFs. However, thesubadviser has a fiduciary duty to act in the Portfolio’s bestinterests when selecting the ETFs.

Market Risk. The Portfolio’s share price can fall because ofweakness in the broad market, a particular industry, or specificholdings. The market as a whole can decline for many reasons,including adverse political or economic developments in theUnited States or abroad, changes in investor psychology, orheavy institutional selling. The prospects for an industry orcompany may deteriorate because of a variety of factors,including disappointing earnings or changes in the competitiveenvironment. In addition, the subadviser’s assessment ofcompanies held in the Portfolio may prove incorrect, resultingin losses or poor performance even in a rising market. Finally,the Portfolio’s investment approach could fall out of favor withthe investing public, resulting in lagging performance versusother comparable portfolios.

Management Risk. The Portfolio is subject to management riskbecause it is an actively-managed investment portfolio. ThePortfolio’s portfolio managers apply investment techniques andrisk analyses in making investment decisions, but there can beno guarantee that these decisions or the individual securitiesselected by the portfolio managers will produce the desiredresults.

MLP Risk. The interests or “units” of an MLP are listed andtraded on securities exchanges or in the over-the-counter marketand their value fluctuates predominantly based on prevailingmarket conditions and the success of the MLP. MLPs carrymany of the risks inherent in investing in a partnership. Unitholders of an MLP may not be afforded corporate protections tothe same extent as shareholders of a corporation. In addition,unlike owners of common stock of a corporation, holders ofcommon units of an MLP may have more limited control andlimited rights to vote on matters affecting the MLP and have noability to elect directors annually. In the event of liquidation,common units have preference over subordinated units, but notover debt or preferred units, to the remaining assets of the MLP.

REIT Risk. Investing in REITs involves certain unique risks.Equity REITs may be affected by changes in the value of theunderlying property owned by such REITs, while mortgageREITs may be affected by the quality of any credit extended.REITs are dependent upon management skills, are notdiversified (except to the extent the Internal Revenue Code of1986, as amended, requires), and are subject to the risks offinancing projects. REITs are also subject to interest rate risks.The Portfolio will indirectly bear its proportionate share of any


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management and other expenses that may be charged by theREITs in which it invests, in addition to the expenses paid by thePortfolio.

Structured Notes Risk. Structured notes and other relatedinstruments are generally privately negotiated debt obligationswhere the principal and/or interest is determined by reference tothe performance of a specific asset, benchmark asset, market orinterest rate (“reference measure”). The purchase of structurednotes exposes the Portfolio to the credit risk of the issuer of thestructured product. Structured notes may be leveraged,increasing the volatility of each structured note’s value relativeto the change in the reference measure. Structured notes mayalso be less liquid and more difficult to price accurately than lesscomplex securities and instruments or more traditional debtsecurities.

Derivatives Risk. A derivative is any financial instrumentwhose value is based on and determined by another security,index or benchmark (e.g., stock options, futures, caps, floors,etc.). To the extent a derivative contract is used to hedge anotherposition in the Portfolio, the Portfolio will be exposed to therisks associated with hedging as described below and in theGlossary. To the extent an option or futures contract is used toenhance return, rather than as a hedge, the Portfolio will bedirectly exposed to the risks of the contract. Gains or losses fromnon-hedging positions may be substantially greater than the costof the position.

Forwards. Forwards are not exchange-traded and therefore noclearinghouse or exchange stands ready to meet the obligationsof the contracts. Thus, the Portfolio faces the risk that itscounterparties may not perform their obligations. Forwardcontracts are also not regulated by the Commodity FuturesTrading Commission (“CFTC”) and therefore, the Portfolio willnot receive any benefit of CFTC regulation when tradingforwards.

Futures. The risks associated with the Portfolio’s use of futurescontracts include the risks that: (i) changes in the price of afutures contract may not always track the changes in marketvalue of the underlying asset; (ii) trading restrictions orlimitations may be imposed by an exchange, and governmentregulations may restrict trading in futures contracts; and (iii) ifthe Portfolio has insufficient cash to meet margin requirements,the Portfolio may need to sell other investments, including atdisadvantageous times.

Options. An investment in options may be subject to greaterfluctuation than an investment in the underlying instrumentsthemselves. By purchasing options, the Portfolio is subject tothe risk of a complete loss of premiums. The use of options forrisk management or hedging purposes may not be successful,resulting in losses to the Portfolio. In addition, the cost ofhedging may reduce the Portfolio’s returns.

Swaps. Swap agreements involve the risk that the party withwhom the Portfolio has entered into the swap will default on itsobligation to pay the Portfolio and the risk that the Portfolio willnot be able to meet its obligations to pay the other party to theagreement.

CDO Risk. A CDO is an asset-backed security whoseunderlying collateral is typically a portfolio of bonds, bankloans, other structured finance securities and/or syntheticinstruments. Where the underlying collateral is a portfolio ofbonds, a CDO is referred to as a collateralized bond obligation.Where the underlying collateral is a portfolio of bank loans, aCDO is referred to as a CLO. Investors in CDOs bear the creditrisk of the underlying collateral. Multiple tranches of securitiesare issued by the CDO, offering investors various maturity andcredit risk characteristics. Tranches are categorized as senior,mezzanine, and subordinated/equity, according to their degreeof risk. If there are defaults or the CDO’s collateral otherwiseunderperforms, scheduled payments to senior tranches takeprecedence over those of mezzanine tranches, and scheduledpayments to mezzanine tranches take precedence over those tosubordinated/equity tranches. CDOs are subject to the same riskof prepayment described with respect to certain mortgage-related and asset-backed securities. The value of CDOs may beaffected by changes in the market’s perception of thecreditworthiness of the servicing agent for the pool or theoriginator.

Counterparty Risk. Counterparty risk is the risk that acounterparty to a security, loan or derivative held by thePortfolio becomes bankrupt or otherwise fails to perform itsobligations due to financial difficulties. The Portfolio mayexperience significant delays in obtaining any recovery in abankruptcy or other reorganization proceeding, and there maybe no recovery or limited recovery in such circumstances.

Hedging Risk. A hedge is an investment made in order toreduce the risk of adverse price movements in a security, bytaking an offsetting position in a related security (often aderivative, such as an option or a short sale). While hedgingstrategies can be very useful and inexpensive ways of reducingrisk, they are sometimes ineffective due to unexpected changesin the market. Hedging also involves the risk that changes in thevalue of the related security will not match those of theinstruments being hedged as expected, in which case any losseson the instruments being hedged may not be reduced.

Active Trading Risk. A strategy whereby the Portfolio mayengage in frequent trading of securities to achieve its investmentgoals. Active trading may result in high portfolio turnover andcorrespondingly greater brokerage commissions and othertransaction costs, which will be borne directly by the Portfolioand could affect your performance. During periods of increasedmarket volatility, active trading may be more pronounced.


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Performance Information

The following bar chart illustrates the risks of investing in thePortfolio by showing changes in the Portfolio’s performancefrom calendar year to calendar year and the table compares thePortfolio’s average annual returns to those of the S&P 500®

Index, the Bloomberg Barclays U.S. Aggregate Bond Index, theMSCI World Index, and a blended index. The blended indexconsists of 50% MSCI World Index and 50% BloombergBarclays U.S. Aggregate Bond Index (the “Blended Index”).The Blended Index is intended to be more representative of themarket sectors or types of securities in which the Portfolioinvests pursuant to its stated investment strategies than any ofthe individual benchmark indices, in that it includes both equityand fixed income components. Fees and expenses incurred atthe contract level are not reflected in the bar chart or table. Ifthese amounts were reflected, returns would be less than thoseshown. Of course, past performance is not necessarily anindication of how the Portfolio will perform in the future.

Effective January 12, 2015, the Portfolio’s investment goal andprincipal investment strategies were changed and BlackRockbecame the subadviser to the Portfolio. The Portfolio’sperformance prior to January 12, 2015 is not attributable to thePortfolio’s current subadviser or to its current investmentstrategies.

(Class 1 Shares)

23.99%

9.00%

-1.17%

9.50%

17.67%

9.68%

-4.45%

6.51% 6.34%

-3.73%

-10%

-5%

0%

5%

10%

15%

20%

25%

30%

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

During the 10-year period shown in the bar chart, the highestreturn for a quarter was 12.82% (quarter ended September 30,2009) and the lowest return for a quarter was -10.86% (quarterended September 30, 2011).

Average Annual Total Returns (For the periods endedDecember 31, 2018)

1Year

5Years

10Years

SinceInception(10-8-12)

Class 1 Shares .............. -3.73% 2.71% 7.00% N/A

Class 3 Shares .............. -4.02% 2.45% N/A 4.42%

S&P 500® Index.......... -4.38% 8.49% 13.12% 11.35%

Bloomberg BarclaysU.S. Aggregate BondIndex......................... 0.01% 2.52% 3.48% 1.75%

Blended Index .............. -4.19% 3.70% 6.82% 4.88%

MSCI World Index....... -8.71% 4.56% 9.67% 7.77%

Investment Adviser

The Portfolio’s investment adviser is SunAmerica.

The Portfolio is subadvised by BlackRock.

Portfolio Managers

Name and Title

PortfolioManager of thePortfolio Since

Michael FredericksManaging Director of BlackRock, Inc. ......... 2015

Justin Christofel, CFA, CAIAManaging Director of BlackRock, Inc. ......... 2015

Alex Shingler, CFAManaging Director of BlackRock, Inc. ......... 2015

For important information about purchases and sales ofPortfolio shares, taxes and payments to broker-dealers and otherfinancial intermediaries, please turn to the “ImportantAdditional Information” section on page 21.


- 6 -

Investment Goal

The investment goal of the SA PGI Asset Allocation Portfolio(formerly, SA Edge Asset Allocation Portfolio) (the “Portfolio”)is high total return (including income and capital gains)consistent with long-term preservation of capital.




Class 1 Class 2 Class 3

Management Fees ......................... 0.67% 0.67% 0.67%Service (12b-1) Fees ..................... None 0.15% 0.25%Other Expenses ............................. 0.10% 0.10% 0.10%Acquired Fund Fees and

Expenses.................................... 0.02% 0.02% 0.02%Total Annual Portfolio Operating

Expenses1 .................................. 0.79% 0.94% 1.04%1 Total Annual Portfolio Operating Expenses do not correlate to the ratio of

net expenses to average net assets provided in the Financial Highlights table,which reflects the operating expenses of each class and does not includeAcquired Fund Fees and Expenses.

Expense Example

This Example is intended to help you compare the cost ofinvesting in the Portfolio with the cost of investing in othermutual funds. The Example assumes that you invest $10,000 inthe Portfolio for the time periods indicated and then redeem allof your shares at the end of those periods. The Example alsoassumes that your investment has a 5% return each year and thatthe Portfolio’s operating expenses remain the same. TheExample does not reflect charges imposed by the VariableContract. If the Variable Contract fees were reflected, theexpenses would be higher. See the Variable Contract prospectusfor information on such charges. Although your actual costsmay be higher or lower, based on these assumptions and the netexpenses shown in the fee table, your costs would be:


Class 1 Shares ............... $ 81 $252 $439 $ 978Class 2 Shares ............... 96 300 520 1,155Class 3 Shares ............... 106 331 574 1,271

Portfolio Turnover




The Portfolio’s principal investment strategy is to invest in adiversified portfolio that may include common stocks and othersecurities with common stock characteristics, bonds and otherintermediate and long-term fixed income securities and moneymarket instruments.

The Portfolio will principally invest in equity securities,including common stocks; convertible securities; warrants andrights; fixed income securities, including U.S. Governmentsecurities, investment grade corporate bonds, preferred stocks,junk bonds (up to 25% of fixed income investments), seniorsecurities and pass-through securities; real estate investmenttrusts (“REITs”); registered investment companies; and foreignsecurities, including depositary receipts and emerging marketissues.

Asset allocation views may be expressed through equitysecurities, fixed income securities, money market instrumentsand other assets.


As with any mutual fund, there can be no assurance that thePortfolio’s investment goal(s) will be met or that the net returnon an investment in the Portfolio will exceed what could havebeen obtained through other investment or savings vehicles.Shares of the Portfolio are not bank deposits and are notguaranteed or insured by any bank, government entity or theFederal Deposit Insurance Corporation. If the value of the assetsof the Portfolio goes down, you could lose money.


Equity Securities Risk. The Portfolio invests significantly inequities. As with any equity fund, the value of your investmentin this Portfolio may fluctuate in response to stock marketmovements. In addition, individual stocks selected for thePortfolio may underperform the market generally for a varietyof reasons, including poor company earnings results.

PORTFOLIO SUMMARY: SA PGI ASSET ALLOCATION PORTFOLIO (FORMERLY, SA EDGEASSET ALLOCATION PORTFOLIO)

- 7 -

Market Risk. The Portfolio’s share price can fall because ofweakness in the broad market, a particular industry, or specificholdings. The market as a whole can decline for many reasons,including adverse political or economic developments in theUnited States or abroad, changes in investor psychology, orheavy institutional selling. In addition, the subadviser’sassessment of companies held in the Portfolio may proveincorrect, resulting in losses or poor performance even in arising market. Finally, the Portfolio’s investment approach couldfall out of favor with the investing public, resulting in laggingperformance versus other comparable portfolios.

Preferred Stock Risk. Unlike common stock, preferred stockgenerally pays a fixed dividend from a company’s earnings andmay have a preference over common stock on the distribution ofa company’s assets in the event of bankruptcy or liquidation.Preferred stockholders’ liquidation rights are subordinate to thecompany’s debt holders and creditors. If interest rates rise, thefixed dividend on preferred stocks may be less attractive and theprice of preferred stocks may decline.


Fixed Income Securities Risk. The Portfolio investssignificantly in various types of fixed income securities. As aresult, the value of your investment in the Portfolio may go upor down in response to changes in interest rates or defaults (oreven the potential for future default) by issuers of fixed incomesecurities. As interest rates rise, the prices for fixed incomesecurities typically fall, and as interest rates fall, the pricestypically rise. To the extent that the Portfolio is invested in thebond market, movements in the bond market may affect itsperformance.


Credit Risk. The creditworthiness of an issuer is always a factorin analyzing fixed income securities. An issuer with a lower

credit rating will be more likely than a higher rated issuer todefault or otherwise become unable to honor its financialobligations. An issuer held in this Portfolio may not be able tohonor its financial obligations, including its obligations to thePortfolio.

Risk of Investing in Junk Bonds. High yield, high risk bondscommonly known as “junk bonds” are generally subject togreater credit risks than higher-grade bonds. Junk bonds areconsidered speculative, tend to be less liquid and are moredifficult to value than higher grade securities. Junk bonds tendto be volatile and more susceptible to adverse events andnegative sentiments and may be difficult to sell at a desiredprice, or at all, during periods of uncertainty or market turmoil.

Mortgage- and Asset-Backed Securities Risk. Mortgage- andasset-backed securities represent interests in “pools” ofmortgages or other assets, including consumer loans orreceivables held in trust. The characteristics of these mortgage-backed and asset-backed securities differ from traditional fixed-income securities. Mortgage-backed securities are subject to“prepayment risk” and “extension risk.” Prepayment risk is therisk that, when interest rates fall, certain types of obligationswill be paid off by the obligor more quickly than originallyanticipated and the Portfolio may have to invest the proceeds insecurities with lower yields. Extension risk is the risk that, wheninterest rates rise, certain obligations will be paid off by theobligor more slowly than anticipated, causing the value of thesesecurities to fall. Small movements in interest rates (bothincreases and decreases) may quickly and significantly reducethe value of certain mortgage-backed securities. Thesesecurities also are subject to risk of default on the underlyingmortgage, particularly during periods of economic downturn.

Convertible Securities Risk. The values of the convertiblesecurities in which the Portfolio may invest will be affected bymarket interest rates, the risk that the issuer may default oninterest or principal payments and the value of the underlyingcommon stock into which these securities may be converted.Specifically, certain types of convertible securities may payfixed interest and dividends; their values may fall if marketinterest 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 thePortfolio.

Warrants and Rights Risk. Warrants and rights can provide agreater potential for profit or loss than an equivalent investmentin the underlying security. Prices of warrants and rights do notnecessarily move in tandem with the prices of the underlyingsecurities and therefore are highly volatile and speculativeinvestments.

Real Estate Industry Risk. These risks include declines in thevalue of real estate, risks related to general and local economicconditions, overbuilding and increased competition, increases


- 8 -

in property taxes and operating expenses, changes in zoninglaws, casualty or condemnation losses, fluctuations in rentalincome, changes in neighborhood values, changes in the appealof properties to tenants and increases in interest rates. If thePortfolio has rental income or income from the disposition ofreal property, the receipt of such income may adversely affect itsability to retain its tax status as a regulated investment company.In addition, REITs are dependent upon management skill, maynot be diversified and are subject to project financing risks.Such trusts are also subject to heavy cash flow dependency,defaults by borrowers, self-liquidation and the possibility offailing to qualify for tax-free pass-through of income under theInternal Revenue Code of 1986, as amended, and to maintainexemption from registration under the 1940 Act. REITs may beleveraged, which increases risk.

Investment Company Risk. The risks of the Portfolio owningother investment companies, including exchange-traded funds,generally reflect the risks of owning the underlying securities inwhich they invest. Disruptions in the markets for the securitiesunderlying the other investment companies purchased or sold bythe Portfolio could result in losses on the Portfolio’s investmentin such securities. Other investment companies also havemanagement fees that increase their costs versus owning theunderlying securities directly.


Emerging Markets Risk. Risks associated with investments inemerging markets may include: delays in settling portfoliosecurities transactions; currency and capital controls; greatersensitivity to interest rate changes; pervasive corruption andcrime; exchange rate volatility; inflation, deflation or currencydevaluation; violent military or political conflicts; confiscationsand other government restrictions by the United States or othergovernments; and government instability. As a result,investments in emerging market securities tend to be morevolatile than investments in developed countries.

Depositary Receipts Risk. Depositary receipts are generallysubject to the same risks as the foreign securities that theyevidence or into which they may be converted. Depositaryreceipts may or may not be jointly sponsored by the underlyingissuer. The issuers of unsponsored depositary receipts are not

obligated to disclose information that is considered material inthe United States. Therefore, there may be less informationavailable regarding the issuers and there may not be a correlationbetween such information and the market value of thedepositary receipts.



The following bar chart illustrates the risks of investing in thePortfolio by showing changes in the Portfolio’s performancefrom calendar year to calendar year and the table compares thePortfolio’s average annual returns to those of the S&P 500®

Index, the Bloomberg Barclays U.S. Aggregate Bond Index anda blended index. The blended index consists of 40% BloombergBarclays U.S. Aggregate Bond Index and 60% S&P 500® Index(the “Blended Index”). The subadviser believes that the BlendedIndex may be more representative of the market sectors or typesof securities in which the Portfolio invests pursuant to its statedinvestment strategies than any of the individual benchmarkindices, in that it includes both equity and fixed incomecomponents. The weightings of the components of the BlendedIndex are intended to approximate the allocation of thePortfolio’s assets, but at any given time may not be indicative ofthe actual allocation of Portfolio assets among market sectors ortypes of investments. Fees and expenses incurred at the contractlevel are not reflected in the bar chart or table. If these amountswere reflected, returns would be less than those shown. Ofcourse, past performance is not necessarily an indication of howthe Portfolio will perform in the future.

(Class 1 Shares)

22.24%

13.89%

0.93%

11.95%

17.87%

7.41%

-1.72%

10.82%

13.73%

-4.54%

-10%

-5%

0%

5%

10%

15%

20%

25%

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018



- 9 -


1Year

5Years

10Years

Class 1 Shares ................................. -4.54% 4.90% 8.94%

Class 2 Shares ................................. -4.65% 4.75% 8.78%

Class 3 Shares ................................. -4.75% 4.65% 8.67%

S&P 500® Index............................. -4.38% 8.49% 13.12%

Bloomberg Barclays U.S.Aggregate Bond Index ................ 0.01% 2.52% 3.48%

Blended Index ................................. -2.35% 6.24% 9.42%

Investment Adviser


The Portfolio is subadvised by Principal Global Investors, LLC.

Portfolio Managers

Name and Title


Todd Jablonski, CFAChief Investment Officer and PortfolioManager......................................................... 2010

Charles D. Averill, CFAPortfolio Manager ......................................... 2010

Gregory L. Tornga, CFAPortfolio Manager ......................................... 2017



- 10 -

Investment Goal

The investment goal of the SA Wellington Capital AppreciationPortfolio (the “Portfolio”) is long-term capital appreciation.





Management Fees ......................... 0.70% 0.70% 0.70%Service (12b-1) Fees ..................... None 0.15% 0.25%Other Expenses ............................. 0.04% 0.04% 0.04%Total Annual Portfolio Operating

Expenses.................................... 0.74% 0.89% 0.99%

Expense Example



Class 1 Shares ............... $ 76 $237 $411 $ 918Class 2 Shares ............... 91 284 493 1,096Class 3 Shares ............... 101 315 547 1,213

Portfolio Turnover




The Portfolio’s principal investment strategy is to investprimarily in growth equity securities across a wide range ofindustries and companies, using a wide-ranging and flexiblestock selection approach. The Portfolio uses an active tradingstrategy to achieve its investment goal.

The Portfolio will principally invest in equity securities oflarge-, mid- and small-cap companies. The Portfolio may alsoinvest in foreign equity securities, including depositary receipts(up to 30% of total assets).

A “growth” philosophy — that of investing in securitiesbelieved to offer the potential for capital appreciation — focuseson securities of companies that may have one or more of thefollowing characteristics: accelerating or high revenue growth,improving profit margins, or improving balance sheets.




Equity Securities Risk. The Portfolio invests primarily inequities. As with any equity fund, the value of your investmentin this Portfolio may fluctuate in response to stock marketmovements. Growth stocks are historically volatile, which willparticularly affect the Portfolio. In addition, individual stocksselected for the Portfolio may underperform the marketgenerally for a variety of reasons, including poor companyearnings results.


Market Risk. The Portfolio’s share price can fall because ofweakness in the broad market, a particular industry, or specific

PORTFOLIO SUMMARY: SA WELLINGTON CAPITAL APPRECIATION PORTFOLIO

- 11 -

holdings. The market as a whole can decline for many reasons,including adverse political or economic developments in theUnited States or abroad, changes in investor psychology, orheavy institutional selling. In addition, the subadviser’sassessment of companies held in the Portfolio may proveincorrect, resulting in losses or poor performance even in arising market. Finally, the Portfolio’s investment approach couldfall out of favor with the investing public, resulting in laggingperformance versus other comparable portfolios.


Growth Stock Risk. Growth stocks can be volatile for severalreasons. Since the issuers of growth stocks usually reinvest ahigh portion of earnings in their own business, growth stocksmay lack the dividend yield associated with value stocks thatcan cushion total return in a bear market. Also, growth stocksnormally carry a higher price/earnings ratio than many otherstocks. Consequently, if earnings expectations are not met, themarket price of growth stocks will often decline more than otherstocks. However, the market frequently rewards growth stockswith price increases when expectations are met or exceeded.

Large-Cap Companies Risk. Large-cap companies tend to goin and out of favor based on market and economic conditions.In return for the relative stability and low volatility of largecapitalization companies, the Portfolio’s value may not rise asmuch as the value of portfolios that emphasize smaller marketcapitalization companies.


Depositary Receipts Risk. Depositary receipts are generallysubject to the same risks as the foreign securities that theyevidence or into which they may be converted. Depositaryreceipts may or may not be jointly sponsored by the underlyingissuer. The issuers of unsponsored depositary receipts are notobligated to disclose information that is considered material inthe United States. Therefore, there may be less informationavailable regarding the issuers and there may not be a correlationbetween such information and the market value of thedepositary receipts.

Issuer Risk. The value of a security may decline for a numberof reasons directly related to the issuer, such as management

performance, financial leverage and reduced demand for theissuer’s goods and services.

Active Trading Risk. The Portfolio may engage in frequenttrading of securities to achieve its investment goal. Activetrading may result in high portfolio turnover andcorrespondingly greater brokerage commissions and othertransaction costs, which will be borne directly by the Portfolioand could affect your performance.


The following bar chart illustrates the risks of investing in thePortfolio by showing changes in the Portfolio’s performancefrom calendar year to calendar year and the table compares thePortfolio’s average annual returns to those of the Russell 3000®

Growth Index. Fees and expenses incurred at the contract levelare not reflected in the bar chart or table. If these amounts werereflected, returns would be less than those shown. Of course,past performance is not necessarily an indication of how thePortfolio will perform in the future.

(Class 1 Shares)

36.79%

22.72%

-7.05%

23.90%

35.80%

15.26%

8.72%

1.98%

32.78%

-0.75%

-10%

-5%

0%

5%

10%

15%

20%

25%

30%

35%

40%

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

During the 10-year period shown in the bar chart, the highestreturn for a quarter was 21.32% (quarter ended March 31, 2012)and the lowest return for a quarter was -18.84% (quarter endedSeptember 30, 2011).


1Year

5Years

10Years

Class 1 Shares ............................... -0.75% 10.99% 16.03%

Class 2 Shares ............................... -0.90% 10.82% 15.85%

Class 3 Shares ............................... -1.00% 10.71% 15.74%

Russell 3000® Growth Index ....... -2.12% 9.99% 15.15%


- 12 -

Investment Adviser


The Portfolio is subadvised by Wellington ManagementCompany LLP.

Portfolio Managers

Name and Title


Stephen C. MortimerSenior Managing Director and EquityPortfolio Manager ......................................... 2006

Michael T. Carmen, CFASenior Managing Director and EquityPortfolio Manager ......................................... 2010



- 13 -

Investment Goal

The investment goal of the SA Wellington Government andQuality Bond Portfolio (the “Portfolio”) is relatively highcurrent income, liquidity and security of principal.





Management Fees ......................... 0.53% 0.53% 0.53%Service (12b-1) Fees ..................... None 0.15% 0.25%Other Expenses ............................. 0.04% 0.04% 0.04%Total Annual Portfolio Operating

Expenses.................................... 0.57% 0.72% 0.82%

Expense Example



Class 1 Shares ............... $58 $183 $318 $ 714Class 2 Shares ............... 74 230 401 894Class 3 Shares ............... 84 262 455 1,014

Portfolio Turnover




The Portfolio’s principal investment strategy is to invest, undernormal circumstances, at least 80% of net assets in obligationsissued, guaranteed or insured by the U.S. Government, itsagencies or instrumentalities and in high quality fixed incomesecurities (rated AA– or better by S&P Global (Ratings)(“S&P”) or Aa3 or better by Moody’s Investors Service, Inc.(“Moody’s”) or its equivalent by any other nationally recognizedstatistical rating organization (“NRSRO”)).

The Portfolio will principally invest in fixed income securities,including U.S. Government securities, mortgage-backedsecurities, asset-backed securities, and high quality bonds.Corporate bonds rated lower than AA– by S&P but not lowerthan A– (or lower than Aa3 by Moody’s but not lower than A3),or its equivalent by another NRSRO, may comprise up to 20%of the Portfolio’s net assets. The Portfolio may use an activetrading strategy to achieve its objective.





Fixed Income Securities Risk. The Portfolio investssignificantly in various types of fixed income securities. As aresult, the value of your investment in the Portfolio may go upor down in response to changes in interest rates or defaults (oreven the potential for future default) by issuers of fixed income

PORTFOLIO SUMMARY: SA WELLINGTON GOVERNMENT AND QUALITY BOND PORTFOLIO

- 14 -

securities. As interest rates rise, the prices for fixed incomesecurities typically fall, and as interest rates fall, the pricestypically rise. To the extent that the Portfolio is invested in thebond market, movements in the bond market may affect itsperformance. In addition, individual fixed income securitiesselected for this Portfolio may underperform the marketgenerally.

Credit Risk. The creditworthiness of an issuer is always a factorin analyzing fixed income securities. An issuer with a lowercredit rating will be more likely than a higher rated issuer todefault or otherwise become unable to honor its financialobligations. An issuer held in this Portfolio may not be able tohonor its financial obligations, including its obligations to thePortfolio.



Market Risk. The Portfolio’s share price can fall because ofweakness in the broad market, a particular industry, or specificholdings. The market as a whole can decline for many reasons,including adverse political or economic developments in theUnited States or abroad, changes in investor psychology, orheavy institutional selling. In addition, the subadviser’sassessment of companies held in the Portfolio may prove

incorrect, resulting in losses or poor performance even in arising market. Finally, the Portfolio’s investment approach couldfall out of favor with the investing public, resulting in laggingperformance versus other comparable portfolios.




The following bar chart illustrates the risks of investing in thePortfolio by showing changes in the Portfolio’s performancefrom calendar year to calendar year and the table compares thePortfolio’s average annual returns to those of the BloombergBarclays U.S. Aggregate A or Better Index. Fees and expensesincurred at the contract level are not reflected in the bar chart ortable. If these amounts were reflected, returns would be less thanthose shown. Of course, past performance is not necessarily anindication of how the Portfolio will perform in the future.

(Class 1 Shares)

4.29%4.98%

7.09%

3.83%

-2.15%

5.19%

0.58%

1.42%

2.97%

0.04%

-3%

-2%

-1%

0%

1%

2%

3%

4%

5%

6%

7%

8%

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

During the 10-year period shown in the bar chart, the highestreturn for a quarter was 3.65% (quarter ended September 30,2011) and the lowest return for a quarter was -3.25% (quarterended December 31, 2016).


- 15 -


1Year

5Years

10Years

Class 1 Shares ................................... 0.04% 2.02% 2.79%

Class 2 Shares ................................... -0.08% 1.88% 2.64%

Class 3 Shares ................................... -0.24% 1.77% 2.53%

Bloomberg Barclays U.S. AggregateA or Better Index........................... 0.47% 2.38% 3.13%

Investment Adviser



Portfolio Managers

Name and Title


Michael E. Stack, CFASenior Managing Director and FixedIncome Portfolio Manager ............................ 2014

Loren L. Moran, CFAManaging Director and Fixed IncomePortfolio Manager ......................................... 2018



- 16 -

Investment Goal

The investment goal of the SA Wellington Strategic Multi-AssetPortfolio (the “Portfolio”) is high long-term total investmentreturn.




Class 1 Class 3

Management Fees ......................................... 1.00% 1.00%Service (12b-1) Fees..................................... None 0.25%Other Expenses............................................. 0.46% 0.44%Total Annual Portfolio Operating Expenses . 1.46% 1.69%Fee Waivers and/or Expense

Reimbursements1 ...................................... -0.60% -0.58%Total Annual Portfolio Operating

Expenses After Fee Waivers and/orExpense Reimbursements1........................ 0.86% 1.11%

1 Pursuant to an Expense Limitation Agreement, SunAmerica AssetManagement, LLC (“SunAmerica”) has contractually agreed to waive itsfees and/or reimburse the expenses of the Portfolio until April 30, 2020, sothat the Portfolio’s “Total Annual Portfolio Operating Expenses After FeeWaivers and/or Expense Reimbursements” do not exceed 0.86% for Class 1shares and 1.11% for Class 3 shares. For purposes of the Expense LimitationAgreement, “Total Annual Portfolio Operating Expenses” shall not includeextraordinary expenses (i.e., expenses that are unusual in nature andinfrequent in occurrence, such as litigation), or acquired fund fees andexpenses, brokerage commissions and other transactional expenses relatingto the purchase and sale of portfolio securities, interest, taxes andgovernmental fees, and other expenses not incurred in the ordinary courseof Anchor Series Trust’s (the “Trust”) business on behalf of the Portfolio.Any waivers and/or reimbursements made by SunAmerica with respect tothe Portfolio are subject to recoupment from the Portfolio within two yearsafter the occurrence of any such waivers and/or reimbursements, providedthat the recoupment does not cause the expense ratio of the share class toexceed the lesser of (a) the expense limitation in effect at the time the waiversand/or reimbursements occurred, or (b) the current expense limitation of thatshare class. This Agreement may be terminated prior to April 30, 2020 bythe Board of Trustees, including a majority of the trustees who are not“interested persons” of the Trust as defined in the Investment Company Actof 1940, as amended.

Expense Example

This Example is intended to help you compare the cost ofinvesting in the Portfolio with the cost of investing in othermutual funds. The Example assumes that you invest $10,000 inthe Portfolio for the time periods indicated and then redeem all

of your shares at the end of those periods. The Example alsoassumes that your investment has a 5% return each year and thatthe Portfolio’s operating expenses remain the same and that allfee waivers and/or reimbursements remain in place untilApril 30, 2020. The Example does not reflect charges imposedby the Variable Contract. If the Variable Contract fees werereflected, the expenses would be higher. See the VariableContract prospectus for information on such charges. Althoughyour actual costs may be higher or lower, based on theseassumptions and the net expenses shown in the fee table, yourcosts would be:


Class 1 Shares ............... $ 88 $403 $740 $1,695Class 3 Shares ............... 113 476 863 1,949

Portfolio Turnover




The Portfolio’s principal investment strategy is to invest thePortfolio’s assets among global equity and global fixed incomesecurities to achieve total investment return. “Total investmentreturn” is a measure of performance which combines allelements of return including income and capital appreciation.The portfolio will maintain approximately two-thirds of itsassets in equity securities and one-third in fixed incomesecurities.

The Portfolio will principally invest in equity securities oflarge-, mid- and small-cap companies, convertible securities,and foreign equity securities. The Portfolio will also principallyinvest in fixed income securities, including U.S. Governmentsecurities, foreign fixed income securities, emerging marketsecurities, asset-backed and mortgage-backed securities,corporate bonds, high-yield, high-risk bonds (commonlyreferred to as “junk bonds”) and preferred stocks. The Portfoliomay also make short-term investments.

In addition, the Portfolio may invest in derivative instruments,such as currency forwards and interest rate futures to manageforeign currency, duration and yield curve positioning withinthe Portfolio.

The Portfolio may use an active trading strategy to achieve itsobjective.

PORTFOLIO SUMMARY: SA WELLINGTON STRATEGIC MULTI-ASSET PORTFOLIO

- 17 -




Equity Securities Risk. The Portfolio invests significantly inequities. As with any equity fund, the value of your investmentin this Portfolio may fluctuate in response to stock marketmovements. Growth stocks are historically volatile, which willparticularly affect the Portfolio. In addition, individual stocksselected for the Portfolio may underperform the marketgenerally for a variety of reasons, including poor companyearnings results.

Preferred Stock Risk. Preferred stockholders’ liquidationrights are subordinate to the company’s debt holders andcreditors. If interest rates rise, the fixed dividend on preferredstocks may be less attractive and the price of preferred stocksmay decline. Deferred dividend payments by an issuer ofpreferred stock could have adverse tax consequences for thePortfolio and may cause the preferred stock to lose substantialvalue.

Convertible Securities Risk. The values of the convertiblesecurities in which the Portfolio may invest will be affected bymarket interest rates, the risk that the issuer may default oninterest or principal payments and the value of the underlyingcommon stock into which these securities may be converted.Specifically, certain types of convertible securities may payfixed interest and dividends; their values may fall if marketinterest 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 thePortfolio.

Market Risk. The Portfolio’s share price can fall because ofweakness in the broad market, a particular industry, or specificholdings. The market as a whole can decline for many reasons,including adverse political or economic developments in theUnited States or abroad, changes in investor psychology, orheavy institutional selling. In addition, the subadviser’sassessment of companies held in the Portfolio may proveincorrect, resulting in losses or poor performance even in arising market. Finally, the Portfolio’s investment approach couldfall out of favor with the investing public, resulting in laggingperformance versus other comparable portfolios.


Fixed Income Securities Risk. The Portfolio investssignificantly in various types of fixed income securities. As aresult, the value of your investment in the Portfolio may go upor down in response to changes in interest rates or defaults (oreven the potential for future default) by issuers of fixed incomesecurities. As interest rates rise, the prices for fixed incomesecurities typically fall, and as interest rates fall, the pricestypically rise. To the extent that the Portfolio is invested in thebond market, movements in the bond market may affect itsperformance. In addition, individual fixed income securitiesselected for this Portfolio may underperform the marketgenerally.

Credit Risk. The creditworthiness of an issuer is always a factorin analyzing fixed income securities. An issuer with a lowercredit rating will be more likely than a higher rated issuer todefault or otherwise become unable to honor its financialobligations. An issuer held in this Portfolio may not be able tohonor its financial obligations, including its obligations to thePortfolio.

Risk of Investing in Junk Bonds. High yield, high risk bondscommonly known as “junk bonds” are generally subject togreater credit risks than higher-grade bonds. Junk bonds areconsidered speculative, tend to be less liquid and are moredifficult to value than higher grade securities. Junk bonds tendto be volatile and more susceptible to adverse events andnegative sentiments and may be difficult to sell at a desiredprice, or at all, during periods of uncertainty or market turmoil.


Emerging Markets Risk. Risks associated with investments inemerging markets may include: delays in settling portfoliosecurities transactions; currency and capital controls; greatersensitivity to interest rate changes; pervasive corruption and


- 18 -

crime; exchange rate volatility; inflation, deflation or currencydevaluation; violent military or political conflicts; confiscationsand other government restrictions by the United States or othergovernments; and government instability. As a result,investments in emerging market securities tend to be morevolatile than investments in developed countries.



Large-Cap Companies Risk. Large-cap companies tend to goin and out of favor based on market and economic conditions.In return for the relative stability and low volatility of largecapitalization companies, the Portfolio’s value may not rise asmuch as the value of portfolios that emphasize smaller marketcapitalization companies.


Derivatives Risk. A derivative is any financial instrumentwhose value is based on and determined by another security,index or benchmark (e.g., stock options, futures, caps, floors,etc.). To the extent a derivative contract is used to hedge anotherposition in the Portfolio, the Portfolio will be exposed to the

risks associated with hedging as described below and in theGlossary. To the extent an option or futures contract is used toenhance return, rather than as a hedge, the Portfolio will bedirectly exposed to the risks of the contract. Gains or losses fromnon-hedging positions may be substantially greater than the costof the position.

Hedging Risk. A hedge is an investment made in order toreduce the risk of adverse price movements in a security, bytaking an offsetting position in a related security (often aderivative, such as an option or a short sale). While hedgingstrategies can be very useful and inexpensive ways of reducingrisk, they are sometimes ineffective due to unexpected changesin the market. Hedging also involves the risk that changes in thevalue of the related security will not match those of theinstruments being hedged as expected, in which case any losseson the instruments being hedged may not be reduced.

Currency Volatility Risk. The value of the Portfolio’s foreigninvestments may fluctuate due to changes in currency exchangerates. A decline in the value of foreign currencies relative to theU.S. dollar generally can be expected to depress the value of thePortfolio’s non-U.S. dollar-denominated securities.

Currency Transactions Risk. If changes in the currencyexchange rates do not occur as anticipated, the Portfolio maylose money on forward currency transactions. The Portfolio’sability to use forward foreign currency transactions successfullydepends on a number of factors, including the forward foreigncurrency transactions being available at prices that are not toocostly, the availability of liquid markets and the ability of theportfolio managers to accurately predict the direction ofchanges in currency exchange rates. Currency exchange ratesmay be volatile. Currency transactions are subject tocounterparty risk, which is the risk that the other party in thetransaction will not fulfill its contractual obligation.




The following bar chart illustrates the risks of investing in thePortfolio by showing changes in the Portfolio’s performancefrom calendar year to calendar year and the table compares thePortfolio’s average annual returns to those of the MSCI ACWIIndex, the FTSE 3-Month Treasury Bill Index, the FTSE WorldGovernment Bond Index (U.S. $ Hedged) and a blended index.


- 19 -

Effective May 1, 2019, the Portfolio changed its benchmark tothe MSCI ACWI Index, the FTSE World Government BondIndex (U.S. $ Hedged) and a new blended index that consists of65% MSCI ACWI Index and 35% FTSE World GovernmentBond Index (U.S. $ Hedged) (the �New Blended Index�). Theprior blended index consists of 65% MSCI ACWI Index, 30%FTSE World Government Bond Index (U.S. $ Hedged) and 5%FTSE 3-Month Treasury Bill Index (the “Prior Blended Index”).The benchmark is being changed to better represent thesecurities held in the Portfolio. Fees and expenses incurred at thecontract level are not reflected in the bar chart or table. If theseamounts were reflected, returns would be less than those shown.Of course, past performance is not necessarily an indication ofhow the Portfolio will perform in the future.

(Class 1 Shares)

24.51%

12.96%

-3.81%

15.10%

19.65%

5.04%

1.13% 1.85%

16.26%

-7.49%-10%

-5%

0%

5%

10%

15%

20%

25%

30%

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018



1Year

5Years

10Years

SinceInception(9-26-16)

Class 1 Shares ................ -7.49% 3.08% 8.05% N/A

Class 3 Shares ................ -7.81% N/A N/A 2.52%

FTSE 3-Month TreasuryBill Index.................... 1.86% 0.60% 0.35% 1.24%

MSCI ACWI Index ........ -9.41% 4.26% 9.46% 5.67%

FTSE World Gov’t BondIndex (U.S. $ hedged). 2.60% 3.60% 3.24% 0.91%

Prior Blended Index ....... -5.18% 4.04% 7.38% 4.14%

New Blended Index........ -5.14% 4.19% 7.54% 4.13%

Investment Adviser



Portfolio Managers

Name and Title


Nicolas M. ChoumenkovitchSenior Managing Director and EquityPortfolio Manager ......................................... 2000

Mark H. Sullivan, CFA, CMTSenior Managing Director and FixedIncome Portfolio Manager ............................ 2015



- 20 -

Purchases and Sales of Portfolio Shares

Shares of the Portfolios, including the SAI, may only bepurchased or redeemed through Variable Contracts offered bythe separate accounts of participating life insurance companies.Shares of a Portfolio may be purchased and redeemed each daythe New York Stock Exchange is open, at the Portfolio’s netasset value determined after receipt of a request in good order.

The Portfolios, including the SAI, do not have any initial orsubsequent investment minimums. However, your insurancecompany may impose investment or account minimums. Pleaseconsult the prospectus (or other offering document) for yourVariable Contract which may contain additional informationabout purchases and redemptions of Portfolio shares.

Tax Information

The Portfolios, including the SAI, will not be subject to U.S.federal income tax on the net investment company taxableincome or net capital gains distributed to shareholders asordinary income dividends or capital gain dividends and theseparate accounts that receive the dividends are not subject totax. However contractholders may be subject to U.S. federalincome tax (and a U.S. federal Medicare tax of 3.8% that appliesto net investment income, including taxable annuity payments,if applicable) upon withdrawal from a Variable Contract.

Payments to Broker-Dealers andOther Financial Intermediaries

The Portfolios, including the SAI, are not sold directly to thegeneral public but instead are offered as an underlyinginvestment option for Variable Contracts. The Portfolios,including the SAI, and their related companies may makepayments to the sponsoring insurance company (or its affiliates)for distribution and/or other services. These payments maycreate a conflict of interest as they may be a factor that theinsurance company considers in including the Portfolios,including the SAI, as underlying investment options in theVariable Contract. The prospectus (or other offering document)for your Variable Contract may contain additional informationabout these payments.

IMPORTANT ADDITIONAL INFORMATION

- 21 -

Investment Selection

The SA Wellington Capital Appreciation Portfolio buys andsells securities based on bottom-up investment analysis andindividual security selection, with an aim to uncoveropportunities with potential for price appreciation. A bottom-upinvestment approach searches for outstanding performance ofindividual stocks before considering the impact of economic orindustry trends. The Portfolio is managed using a proprietaryfundamental analysis in order to select securities which aredeemed to be consistent with the Portfolio’s investmentobjective and are priced attractively. Fundamental analysis of acompany involves the assessment of such factors as its businessenvironment, management, balance sheet, income statement,anticipated earnings, revenues, dividends, and other relatedmeasures of value. Securities are sold when the investment hasachieved its intended purpose, or because it is no longerconsidered attractive.

The exchange-traded funds (“ETFs”) in which the SABlackRock Multi-Asset Income Portfolio invests are selectedprimarily to achieve the target sector allocations set by thesubadviser on an ongoing basis. Factors such as ETFclassification, historical risk and performance, and therelationship to other ETFs are considered in the selectionprocess. In selecting ETFs and fixed income investments, thesubadviser evaluates sectors of the bond market including, butnot limited to, U.S. Treasuries and agency securities,commercial and residential mortgage-backed securities,collateralized mortgage obligations, asset-backed securities andcorporate bonds. The subadviser may shift the Portfolio’s assetsamong these various sectors based upon changing marketconditions. Securities and ETFs are purchased for the Portfoliowhen the subadviser believes that they have the potential forabove-average total return.

Each of the SA PGI Asset Allocation, SAWellington Government and Quality Bond, and SA WellingtonStrategic Multi-Asset Portfolios employs both a bottom-up anda top-down analysis in its investment approach. On an individualsecurity basis, a Portfolio buys and sells securities based onbottom-up investment analysis, with an aim to uncoveropportunities with potential for price appreciation. A bottom-upinvestment approach is described in the preceding paragraph. Inaddition, each Portfolio is managed using a proprietary top-down macro analysis for asset allocation among its differentasset classes, countries, sectors and styles. Top-down macro

analysis involves the assessment of such factors as trends ineconomic growth, inflation and the capital market environment.

Investment Strategies

The investment goal and principal investment strategy for eachPortfolio may be changed by the Board of Trustees (the“Board”) without a shareholder vote. You will receive at least60 days’ notice prior to any change to a Portfolio’s 80%investment policy.

In addition to the Portfolios’ principal investments discussed intheir respective Portfolio Summaries, the Portfolios, includingthe SAI, may from time-to-time invest in additional securitiesand utilize various investment techniques. We have identifiedbelow those non-principal investments and the risks associatedwith such investments. Refer to the Glossary for a descriptionof the risks. In addition to those described herein, there are othersecurities and investment techniques in which the Portfolios,including the SAI, may invest in limited instances, which are notdescribed in this Prospectus. These securities and investmentpractices are listed in the Statement of Additional Informationof Anchor Series Trust (the “Trust”), which you may obtain freeof charge (see back cover).

A Glossary has been included in this Prospectus to define theinvestment and risk terminology used below and throughout thedocument. Unless otherwise indicated, investment restrictions,including percentage limitations, apply at the time of purchaseunder normal market conditions. You should consider yourability to assume the risks involved before investing in aPortfolio through one of the Variable Contracts.

Percentage limitations may be calculated based on a Portfolio’stotal or net assets. “Total assets” means net assets plus theamount of any borrowings for investment purposes. If notspecified as net assets, the percentage is calculated based ontotal assets.

From time to time, the Portfolios, including the SAI, may taketemporary defensive positions that are inconsistent with theirprincipal investment strategies in attempting to respond toadverse market, economic, political, or other conditions. Thereis no limit on a Portfolio’s investments in money marketsecurities for temporary defensive purposes. If a Portfolio takessuch a temporary defensive position, it may not achieve itsinvestment objective.

SA BlackRock Multi-Asset Income Portfolio. The Portfoliomay also invest in credit default swaps, including credit defaultswaps on indices; initial public offerings (“IPOs”); illiquidinvestments; reverse repurchase agreements; dollar rolls; andforward commitments and when-issued/delayed delivery

transactions. Additional risks that the Portfolio may be subjectto include:

• Credit Default Swap Risk

• IPO Risk

ADDITIONAL INFORMATION ABOUT THE PORTFOLIOS’INVESTMENT STRATEGIES AND INVESTMENT RISKS

- 22 -

• Illiquidity Risk

• Reverse Repurchase Agreements Risk

• Roll Transactions Risk

• Settlement Risk

SA PGI Asset Allocation Portfolio. The Portfolio may alsoinvest in equity securities of small-cap companies; equityswaps; currency transactions; options; futures; forwardcommitments; mortgage dollar rolls; deferred interest bonds;illiquid investments; short-term investments; firm commitmentagreements; when-issued/delayed-delivery transactions; zerocoupon bonds; interest rate swaps; caps, floors and collars; loanparticipations and assignments; and hybrid instruments.Additional risks that the Portfolio may be subject to include:

• Currency Risk

• Derivatives Risk

• Growth Stock Risk

• Hedging Risk


• Interest Rate Fluctuations Risk

• Prepayment Risk

• Roll Transactions Risk

• Settlement Risk

• Small-Sized Companies Risk

SA Wellington Capital Appreciation Portfolio. The Portfoliomay also invest in currency transactions; emerging marketssecurities; illiquid investments, including private placements(up to 10%); forward commitments; when-issued/delayed-delivery transactions; special situations; forward contracts;ETFs; options, rights and warrants; and convertible securities(up to 20%). Additional risks that the Portfolio may be subjectto include:

• Convertible Security Risk

• Currency Risk


• Investment Company Risk

• Emerging Markets Risk


• Hedging Risk


• Settlement Risk

SA Wellington Government and Quality Bond Portfolio. ThePortfolio may also invest in convertible securities; credit defaultswaps, including credit default swaps on indices (up to 10%);interest rate swaps, caps, floors and collars (up to 10%); totalreturn swaps (up to 10%); illiquid investments (up to 10%);forward commitments and when-issued/delayed deliverytransactions; municipal bonds (up to 10%); zero coupon bonds;foreign securities; emerging market securities; futures; specialsituations; and rights and warrants. Additional risks that thePortfolio may be subject to include:

• Convertible Securities Risk

• Counterparty Risk



• Emerging Markets Risk

• Foreign Investment Risk

• Hedging Risk


• Prepayment Risk

• Settlement Risk

SA Wellington Strategic Multi-Asset Portfolio. The Portfoliomay also borrow for temporary or emergency purposes (up to10%); invest in depositary receipts; invest in equity indexfutures; invest in credit default swaps, including credit defaultswaps on indices (up to 10%); ETFs; options; forward contracts;forward commitments; special situations; illiquid investments(up to 10%); and when-issued/delayed delivery transactions.Additional risks that the Portfolio may be subject to include:

• Counterparty Risk


• Depositary Receipts Risk



• Interest Rate Fluctuations Risk

• Investment Company Risk

• Prepayment Risk

• Settlement Risk

ADDITIONAL INFORMATION ABOUT THE PORTFOLIOS’INVESTMENT STRATEGIES AND INVESTMENT RISKS

- 23 -

Investment Terms

Asset-backed securities issued by trusts and special purposecorporations are backed by a pool of assets, such as credit cardor automobile loan receivables representing the obligations of anumber of different parties.

A bond includes all fixed income securities other than short-term commercial paper and preferred stock.

Borrowing for temporary or emergency purposes involvesthe borrowing of cash or securities by a Portfolio in limitedcircumstances, including to meet redemptions. Borrowing willcost a Portfolio interest expense and other fees. Borrowing mayexaggerate changes in a Portfolio’s net asset value and the costmay reduce a Portfolio’s return.

A call option is a contract sold for a price giving its holder theright to buy a specific number of securities at a specific priceprior to a specified date. A covered call option is a call optionissued on securities already owned by the writer of the calloption for delivery to the holder upon the exercise of the option.

A credit default swap is an agreement between two parties: abuyer of credit protection and a seller of credit protection. Thebuyer in a credit default swap agreement is obligated to pay theseller a periodic stream of payments over the term of the swapagreement. If no default or other designated credit event occurs,the seller of credit protection will have received a fixed rate ofincome throughout the term of the swap agreement. If a defaultor designated credit event does occur, the seller of creditprotection must pay the buyer of credit protection the full valueof the reference obligation. As the seller of credit protection, aPortfolio would effectively add leverage because, in addition toits net assets, such Portfolio would be subject to investmentexposure on the par (or other agreed-upon) value it hadundertaken to pay. Credit default swaps may be structured basedon an index or the debt of a basket of issuers, rather than a singleissuer, and may be customized with respect to the default eventthat triggers purchase or other factors (for example, a particularnumber of defaults within a basket, or defaults by a particularcombination of issuers within the basket, may trigger a paymentobligation).

Currency transactions include the purchase and sale ofcurrencies to facilitate the settlement of securities transactionsand forward currency contracts, which are used to hedge againstchanges in currency exchange rates or to enhance returns.

Defensive investments include high-quality, fixed incomesecurities, repurchase agreements and other money marketinstruments. A Portfolio may make temporary defensiveinvestments in response to adverse market, economic, politicalor other conditions. When a Portfolio takes a defensive position,it may miss out on investment opportunities that could have

resulted from investing in accordance with its principalinvestment strategy. As a result, a Portfolio may not achieve itsinvestment goal.

A derivative is a financial instrument, such as a forward, futurescontract or swap, whose value is based on the performance of anunderlying asset or an external benchmark, such as the price ofa specified security or an index.

An “emerging market” country is any country that is includedin the MSCI Emerging Markets Index. See definition of“Foreign securities” for additional information.

Equity securities, such as common stocks, represent shares ofequity ownership in a corporation. Common stocks may or maynot receive dividend payments. Certain securities have commonstock characteristics, including certain convertible securitiessuch as convertible preferred stock, convertible bonds,warrants and rights, and may be classified as equity securities.Investments in equity securities and securities with equitycharacteristics include:

Convertible securities are securities (such as bonds orpreferred stocks) that may be converted into common stock ofthe same or a different company.

Market capitalization ranges. Companies are determined tobe large-cap companies, mid-cap companies, or small-capcompanies based upon the total market value of the outstandingcommon stock (or similar securities) of the company at the timeof purchase. The market capitalization of the companies in thePortfolios and the indices described below change over time. APortfolio or underlying portfolio will not automatically sell orcease to purchase stock of a company that it already owns justbecause the company’s market capitalization grows or fallsoutside this range. With respect to all Portfolios, except as notedin a Portfolio’s Summary:

• Large-Cap companies will include companies whosemarket capitalizations are equal to or greater than themarket capitalization of the smallest company in theRussell 1000® Index during the most recent 12-monthperiod. As of the most recent annual reconstitution ofthe Russell 1000® Index on May 11, 2018, the marketcapitalization range of the companies in the Russell1000® Index was approximately $2.5 billion to$926.9 billion.

• Mid-Cap companies will include companies whosemarket capitalizations range from the marketcapitalization of the smallest company included in theRussell Midcap® Index to the market capitalization ofthe largest company in the Russell Midcap® Indexduring the most recent 12-month period. As of the most

GLOSSARY

- 24 -

recent annual reconstitution of the Russell Midcap®

Index on May 11, 2018, the market capitalization rangeof the companies in the Russell Midcap® Index was$2.5 billion to $34.7 billion.

• Small-Cap companies will include companies whosemarket capitalizations are equal to or less than themarket capitalization of the largest company in theRussell 2000® Index during the most recent 12-monthperiod. As of the most recent annual reconstitution ofthe Russell 2000® Index on May 11, 2018, the marketcapitalization range of the companies in the Russell2000® Index was $159.2 million to $5.0 billion.

Warrants are rights to buy common stock of a company at aspecified price during the life of the warrant.

Rights represent a preemptive right of stockholders to purchaseadditional shares of a stock at the time of a new issuance beforethe stock is offered to the general public.

Equity swaps allow the parties to a swap agreement toexchange the dividend income or other components of return onan equity investment (for example, a group of equity securitiesor an index) for a component of return on another non-equity orequity investment.

ETFs are a type of investment company bought and sold on asecurities exchange. An ETF trades like common stock andrepresents a fixed portfolio of securities designed to track aparticular market index. A Portfolio could purchase an ETF togain exposure to a portion of the U.S. or a foreign market whileawaiting purchase of underlying securities. The risks of owningan ETF generally reflect the risks of owning the underlyingsecurities they are designed to track, although the ETFs havemanagement fees which increase their cost. A Portfolio’s abilityto invest in ETFs is limited by the Investment Company Act of1940, as amended (the “1940 Act”).

A firm commitment is a buy order for delayed delivery inwhich a Portfolio agrees to purchase a security from a seller ata future date, stated price, and fixed yield. The agreement bindsthe seller as to delivery and binds the purchaser as to acceptanceof delivery.

Fixed income securities are broadly classified as securities thatprovide for periodic payments, typically interest or dividendpayments, to the holder of the security at a stated rate. Mostfixed income securities, such as bonds, represent indebtednessof the issuer and provide for repayment of principal at a statedtime in the future. Others do not provide for repayment of aprincipal amount. Investments in fixed income securitiesinclude:

Corporate debt instruments (bonds, notes and debentures)are securities representing a debt of a corporation. The issuer is

obligated to repay a principal amount of indebtedness at a statedtime in the future and in most cases to make periodic paymentsof interest at a stated rate.

“High quality” instruments have a very strong capacity to payinterest and repay principal; they reflect the issuers’ highcreditworthiness and low risk of default.

An investment grade fixed income security is rated in one ofthe top four rating categories by a debt rating agency (or isconsidered of comparable quality by the adviser or thesubadviser). The two best-known debt rating agencies are S&PGlobal (Ratings) (“S&P”) and Moody’s Investors Service, Inc.(“Moody’s”). Investment grade refers to any security rated“BBB” or above by S&P or “Baa” or above by Moody’s.

A junk bond is a high risk bond that does not meet the creditquality standards of an investment grade security, and in manycases offers a high yield to maturity.

Pass-through securities involve various debt obligations thatare backed by a pool of mortgages or other assets. Principal andinterest payments made on the underlying asset pools aretypically passed through to investors. Types of pass-throughsecurities include mortgage-backed securities, collateralizedmortgage obligations, commercial mortgage-backed securities,and asset-backed securities.

Preferred stocks receive dividends at a specified rate and havepreference over common stock in the payment of dividends andthe liquidation of assets.

U.S. Government securities are issued or guaranteed by theU.S. Government, its agencies and instrumentalities. Some U.S.Government securities are issued or unconditionally guaranteedby the U.S. Treasury. They are of the highest possible creditquality. While these securities are subject to variations in marketvalue due to fluctuations in interest rates, they will be paid in fullif held to maturity. Other U.S. Government securities are neitherdirect obligations of, nor guaranteed by, the U.S. Treasury.However, they involve federal sponsorship in one way oranother. For example, some are backed by specific types ofcollateral; some are supported by the issuer’s right to borrowfrom the Treasury; some are supported by the discretionaryauthority of the Treasury to purchase certain obligations of theissuer; and others are supported only by the credit of the issuinggovernment agency or instrumentality.

Zero-Coupon Bonds and Deferred Interest Bonds are debtobligations issued or purchased at a significant discount fromface value. Certain zero coupon bonds (Discount Bonds) alsoare sold at substantial discounts from their maturity value andprovide for the commencement of regular interest payments at adeferred date.

GLOSSARY

- 25 -

Foreign securities are issued by (i) foreign governments or theiragencies and instrumentalities, and (ii) companies whoseprincipal securities trading markets are outside the U.S., thatderive a significant share of their total revenue or profits fromeither goods or services produced or sales made in marketsoutside the U.S., that have a significant portion of their assetsoutside the U.S., that are linked to non-U.S. dollar currencies orthat are organized under the laws of, or with principal offices in,another country. Foreign securities include, but are not limitedto, foreign corporate and government bonds, foreign equitysecurities, foreign investment companies, passive foreigninvestment companies, American Depositary Receipts(“ADRs”) or other similar securities that represent interests inforeign equity securities, such as European Depositary Receipts(“EDRs”) and Global Depositary Receipts (“GDRs”). APortfolio’s investments in foreign securities may also includesecurities from emerging market issuers. An emerging marketcountry is generally one with a low or middle income economythat is in the early stages of its industrialization cycle. For fixedincome investments, an emerging market includes those wherethe sovereign credit rating is below investment grade. Emergingmarket countries may change over time depending on marketand economic conditions and the list of emerging marketcountries may vary by the subadviser.

Hybrid instruments, such as indexed or structured securities,can combine the characteristics of securities, futures, andoptions. For example, the principal amount, redemption, orconversion terms of a security could be related to the marketprice of some commodity, currency, or securities index. Suchsecurities may bear interest or pay dividends at below market (oreven relatively nominal) rates. Under certain conditions, theredemption value of such an investment could be zero.

Illiquid/Restricted securities. These securities are subject tolegal or contractual restrictions that may make them difficult tosell. A security that cannot easily be sold within seven days willgenerally be considered illiquid. Certain restricted securities(such as Rule 144A securities) are not generally consideredilliquid because of their established trading market. Illiquidsecurities include privately placed securities that are not readilymarketable.

Income is interest payments from bonds or dividends fromstocks.

Interest rate swaps, caps, floors and collars. Interest rateswaps involve the exchange by a Portfolio with another party oftheir respective commitments to pay or receive interest, such asan exchange of fixed-rate payments for floating rate payments.The purchase of an interest rate cap entitles the purchaser, to theextent that a specified index exceeds a predetermined interestrate, to receive payment of interest on a notional principalamount from the party selling such interest rate cap. Thepurchase of an interest rate floor entitles the purchaser, to theextent that a specified index falls below a predetermined interest

rate, to receive payments of interest on a notional principalamount from the party selling the interest rate floor. An interestrate collar is the combination of a cap and a floor that preservesa certain return within a predetermined range of interest rates.

An IPO investment consists of a Portfolio’s purchase of sharesissued as part of, or a short period after, companies’ IPOs. Aportion of a Portfolio’s return may be attributable to thePortfolio’s investment in IPOs. IPO risk involves the risksassociated with companies that have little operating history aspublic companies, as well as to the risks inherent in those sectorsof the market where these new issuers operate. The market forIPO issuers has been volatile, and share prices of newly-publiccompanies have fluctuated in significant amounts over shortperiods of time.

Loan participations and assignments are investments inwhich a Portfolio acquires some or all of the interest of a bankor other lending institution in a loan to a corporate borrower. Thehighly leveraged nature of many such loans may make suchloans especially vulnerable to adverse changes in economic ormarket conditions. As a result, a Portfolio may be unable to sellsuch investments at an opportune time or may have to resellthem at less than fair market value.

MLPs (master limited partnerships) are limited partnershipsthat are operated under the supervision of one or more managinggeneral partners. The ownership interests/common units of anMLP are listed and publicly traded on U.S. securities exchangesor in the over-the-counter market. To qualify as an MLP for U.S.federal income tax purposes, an entity must receive at least 90%of its income from qualifying sources such as income and gainfrom certain mineral or natural resources activities or from thetransportation or storage of certain fuels. In order to so qualify,most MLPs operate in the energy, natural resources, or realestate sectors.

Mortgage-backed securities directly or indirectly providefunds for mortgage loans made to residential home buyers.These include securities that represent interests in pools ofmortgage loans made by lenders such as commercial banks,savings and loan institutions, mortgage bankers and others.

Municipal bonds. Fixed income securities include, amongother things, municipal bonds which are issued by or on behalfof states, territories and possessions of the United States and theDistrict of Columbia and their political subdivisions, agenciesor instrumentalities, the interest on which is exempt fromfederal income tax (“Municipal Bonds”). Municipal Bondsinclude debt securities which pay interest income that is subjectto the alternative minimum tax. A Portfolio may invest inMunicipal Bonds whose issuers pay interest on the bonds fromrevenues from projects such as multifamily housing, nursinghomes, electric utility systems, hospitals or life care facilities.Municipal Bonds include residual interest bonds, which arebonds created by dividing the income stream of an underlying

GLOSSARY

- 26 -

Municipal Bond in two parts, a variable rate security and aresidual interest bond. The interest rate for the variable ratesecurity is determined by an index or an auction process heldapproximately every 7 to 35 days, while the residual interestbond holder receives the balance of the income from theunderlying Municipal Bond less an auction fee. The marketprices of residual interest bonds may be highly sensitive tochanges in market rates and may decrease significantly whenmarket rates increase.

Options and futures are contracts involving the right to receiveor the obligation to deliver assets or money depending on theperformance of one or more underlying assets or a market oreconomic index. An option gives its owner the right, but not theobligation, to buy (“call”) or sell (“put”) a specified amount ofa security at a specified price within a specified time period. Afutures contract is an exchange-traded legal contract to buy orsell a standard quantity and quality of a commodity, financialinstrument, index, etc., at a specified future date and price.

REITs (real estate investment trusts) are trusts that investprimarily in commercial real estate or real estate related loans.The value of an interest in a REIT may be affected by the valueand the cash flows of the properties owned or the quality of themortgages held by the REIT.

Registered investment companies are investments by aPortfolio in other investment companies, including ETFs, whichare registered in accordance with the federal securities laws.

Roll transactions involve the sale of mortgage or other asset-backed securities with the commitment to purchasesubstantially similar (same type, coupon and maturity) but notidentical securities on a specified future date.

Short-term investments include money market securities suchas short-term U.S. Government obligations, repurchaseagreements, commercial paper, bankers’ acceptances andcertificates of deposit. These securities may provide a Portfoliowith sufficient liquidity to meet redemptions and coverexpenses.

A special situation arises when, in the opinion of the adviser orsubadviser, the securities of a particular issuer will berecognized and appreciate in value due to a specificdevelopment with respect to the issuer. Developments creatinga special situation might include, among others, a new productor process, a technological breakthrough, a management changeor other extraordinary corporate events, or differences in marketsupply of and demand for the security. Investment in specialsituations may carry an additional risk of loss in the event thatthe anticipated development does not occur or does not attractthe expected attention.

Total return is a measure of performance which combines allelements of return including income and capital appreciation.

Total return swaps are contracts that obligate a party to pay orreceive interest in exchange for the payment by the other partyof the total return generated by a security, a basket of securities,an index or an index component.

When-issued securities, delayed delivery and forwardcommitment transactions. The Portfolios may purchase or sellwhen-issued securities that have been authorized but not yetissued in the market. In addition, a Portfolio may purchase orsell securities on a forward commitment basis. A forwardcommitment involves entering into a contract to purchase or sellsecurities, typically on an extended settlement basis, for a fixedprice at a future date. The Portfolios may engage in when-issuedor forward commitment transactions in order to secure what isconsidered to be an advantageous price and yield at the time ofentering into the obligation. The purchase of securities on awhen-issued or forward commitment basis involves a risk ofloss if the value of the security to be purchased declines beforethe settlement date. Conversely, the sale of securities on a when-issued or forward commitment basis involves the risk that thevalue of the securities sold may increase before the settlementdate.

Yield is the annual dollar income received on an investmentexpressed as a percentage of the current or average price.

About the Indices

Unlike mutual funds, the indices do not incur expenses. Ifexpenses were deducted, the actual returns of the indices wouldbe lower.

The Bloomberg Barclays U.S.Aggregate A or Better Index isa subset of the Bloomberg Barclays U.S. Aggregate Index andindices, which include index components for government andcorporate bonds, agency mortgage pass-through securities, andasset-backed securities. However, the Bloomberg Barclays U.S.Aggregate A or Better Index excludes BBB bonds.

The Bloomberg Barclays U.S. Aggregate Bond Indexcombines several Bloomberg Barclays fixed-income indices togive a broad view of the U.S. investment grade fixed rate bondmarket, with index components for government and corporatebonds, mortgage pass-through securities, and asset-backedsecurities.

The FTSE World Government Bond Index (U.S. $ hedged)measures the performance of fixed-rate investment gradesovereign bonds, currency hedged to the U.S. dollar (“USD”).

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The Index is a widely used benchmark that currently comprisessovereign debt from over 20 countries. The Index provides abroad benchmark for the global sovereign fixed income market.

The MSCI ACWI Index is a free-float adjusted marketcapitalization index that is designed to measure equityperformance in the global developed and emerging markets andin 46 global and developed markets. MSCI uses an arbitrarysampling of stocks and aims to capture 85% of the total marketcapitalization at both the country and industry levels.

The MSCI World Index is a market capitalization-weightedindex that measures equity market performance of developedmarkets. The index consists of 24 developed market countryindexes, including the United States.

The Russell 3000® Growth Index measures the performance ofthose Russell 3000® Index companies with higher price-to-book

ratios and higher forecasted growth values. The stocks in thisindex are also members of either the Russell 1000® Growth orthe Russell 2000® Growth Indices.

The S&P 500® Index tracks the common stock performance of500 large-capitalization companies publicly traded in theUnited States. Because it is market-weighted, the index willreflect changes in larger companies more heavily than those insmaller companies. S&P Style Indices divide the completemarket capitalization of each parent index into growth and valuesegments. The constituents for the growth and value segmentsare drawn from the S&P 500® Index. A stock can be in both thegrowth and value segments.

Risk Terminology

Active Trading Risk. A strategy whereby a Portfolio mayengage in frequent trading of securities to achieve its investmentgoal(s). Active trading may result in high portfolio turnover andcorrespondingly greater brokerage commissions and othertransaction costs, which will be borne directly by a Portfolio andcould affect your performance. During periods of increasedmarket volatility, active trading may be more pronounced. In the“Financial Highlights” section we provide each Portfolio’sportfolio turnover rate for each of the last five fiscal years.

Affiliated Fund Risk. A Portfolio’s subadviser selects the ETFsin which the Portfolio may invest, including ETFs that areaffiliated with the subadviser. As a result, the subadviser may besubject to potential conflicts of interest in selecting the affiliatedETFs because of the fees payable by the ETFs to the subadviserand also because the fees payable to it by some of these ETFsare higher than the fees payable by other ETFs. However, thesubadviser has a fiduciary duty to act in the Portfolio’s bestinterests when selecting the ETFs.

CDO Risk. A CDO is an asset-backed security whoseunderlying collateral is typically a portfolio of bonds, bankloans, other structured finance securities and/or syntheticinstruments. Where the underlying collateral is a portfolio ofbonds, a CDO is referred to as a collateralized bond obligation.Where the underlying collateral is a portfolio of bank loans, aCDO is referred to as a CLO. Investors in CDOs bear the creditrisk of the underlying collateral. Multiple tranches of securitiesare issued by the CDO, offering investors various maturity andcredit risk characteristics. Tranches are categorized as senior,mezzanine, and subordinated/equity, according to their degreeof risk. If there are defaults or the CDO’s collateral otherwiseunderperforms, scheduled payments to senior tranches takeprecedence over those of mezzanine tranches, and scheduled

payments to mezzanine tranches take precedence over those tosubordinated/equity tranches. CDOs are subject to the same riskof prepayment described with respect to certain mortgage-related and asset-backed securities. The value of CDOs may beaffected by changes in the market’s perception of thecreditworthiness of the servicing agent for the pool or theoriginator.

Convertible Securities Risk. The values of the convertiblesecurities in which a Portfolio may invest will be affected bymarket interest rates, the risk that the issuer may default oninterest or principal payments and the value of the underlyingcommon stock into which these securities may be converted.Specifically, certain types of convertible securities may payfixed interest and dividends; their values may fall if marketinterest 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 thePortfolio.

Counterparty Risk. Counterparty risk is the risk that acounterparty to a security, loan or derivative held by a Portfoliobecomes bankrupt or otherwise fails to perform its obligationsdue to financial difficulties. A Portfolio may experiencesignificant delays in obtaining any recovery in a bankruptcy orother reorganization proceeding, and there may be no recoveryor limited recovery in such circumstances.

Credit Default Swap Risk. A credit default swap is anagreement between two parties: a buyer of credit protection anda seller of credit protection. The buyer in a credit default swapagreement is obligated to pay the seller a periodic stream ofpayments over the term of the swap agreement. If no default orother designated credit event occurs, the seller of credit

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protection will have received a fixed rate of income throughoutthe term of the swap agreement. If a default or designated creditevent does occur, the seller of credit protection must pay thebuyer of credit protection the full value of the referenceobligation. Credit default swaps increase credit risk when aPortfolio is the seller and increase counterparty risk when aPortfolio is the buyer. Credit default swap transactions in whicha Portfolio is the seller may require the Portfolio to liquidatesecurities when it may not be advantageous to do so in order tosatisfy its obligations or to meet segregation requirements.Under the Dodd-Frank Wall Street Reform and ConsumerProtection Act, regulations are now in effect that require swapdealers to post and collect variation margin (comprised ofspecified liquid instruments and subject to a required haircut) inconnection with trading of over-the-counter swaps with aPortfolio. Shares of investment companies (other than certainmoney market funds) may not be posted as collateral under theseregulations. Requirements for posting of initial margin inconnection with over-the-counter swaps will be phased-inthrough 2020. In addition, regulations adopted by globalprudential regulators that are now in effect require certain bank-regulated counterparties and certain of their affiliates to includein certain financial contracts, including many derivativescontracts, terms that delay or restrict the rights ofcounterparties, such as a Portfolio, to terminate such contracts,foreclose upon collateral, exercise other default rights or restricttransfers of credit support in the event that the counterpartyand/or its affiliates are subject to certain types of resolution orinsolvency proceedings. The implementation of theserequirements with respect to derivatives, as well as additionalgovernment regulation of swaps, may make them more costly,may limit their availability, may disrupt markets or mayotherwise adversely affect their value or performance. APortfolio may be exposed to additional risks as a result ofadditional regulations. The extent and impact of the additionalregulations are not yet fully known and may not be for sometime.

Credit Risk. The creditworthiness of the issuer is always afactor in analyzing fixed income securities. An issuer with alower credit rating will be more likely than a higher rated issuerto default or otherwise become unable to honor its financialobligations. This type of issuer will typically issue junk bonds.In addition to the risk of default, junk bonds may be morevolatile, less liquid, more difficult to value and more susceptibleto adverse economic conditions or investor perceptions thanother bonds.

Currency Risk. The value of a Portfolio’s foreign investmentsmay fluctuate due to changes in currency exchange rates. Adecline in the value of foreign currencies relative to the U.S.dollar generally can be expected to depress the value of thePortfolio’s non-U.S. dollar denominated securities.

Currency Transactions Risk. A Portfolio may not fully benefitfrom or may lose money on forward currency transactions if

changes in currency exchange rates do not occur as anticipatedor do not correspond accurately to changes in the value of thePortfolio’s holdings. A Portfolio’s ability to use forward foreigncurrency transactions successfully depends on a number offactors, including the forward foreign currency transactionsbeing available at prices that are not too costly, the availabilityof liquid markets and the ability of the portfolio managers toaccurately predict the direction of changes in currency exchangerates. Currency exchange rates may be volatile and may beaffected by, among other factors, the general economics of acountry, the actions of U.S. and foreign governments or centralbanks, the imposition of currency controls and speculation. Asecurity may be denominated in a currency that is different fromthe currency where the issuer is domiciled. Currencytransactions are subject to counterparty risk, which is the riskthat the other party in the transaction will not fulfill itscontractual obligation.

Depositary Receipts Risk. Depositary receipts are generallysubject to the same risks as the foreign securities that theyevidence or into which they may be converted. Depositaryreceipts may or may not be jointly sponsored by the underlyingissuer. The issuers of unsponsored depositary receipts are notobligated to disclose information that is considered material inthe United States. Therefore, there may be less informationavailable regarding these issuers and there may not be acorrelation between such information and the market value ofthe depositary receipts. Certain depositary receipts are not listedon an exchange and therefore are subject to illiquidity risk.

Derivatives Risk. A derivative is any financial instrumentwhose value is based on, and determined by, another security,index or benchmark (e.g., stock options, futures, caps, floors,etc.). In recent years, derivative securities have becomeincreasingly important in the field of finance. Futures andoptions are now actively traded on many different exchanges.Forward contracts, swaps, and many different types of optionsare regularly traded outside of exchanges by financialinstitutions in what are termed “over the counter” markets.Other more specialized derivative securities often form part ofa bond or stock issue. To the extent a contract is used to hedgeanother position in a Portfolio, the Portfolio will be exposed tothe risks associated with hedging described below. To the extentan option or futures contract is used to enhance return, ratherthan as a hedge, a Portfolio will be directly exposed to the risksof the contract. Gains or losses from non-hedging contractpositions may be substantially greater than the cost of a positionin the underlying security index or benchmark.

A Portfolio is subject to legal requirements, applicable to allmutual funds, that are designed to reduce the effects of anyleverage created by the use of derivative instruments. Underthese requirements, a Portfolio must set aside liquid assets(referred to sometimes as “asset segregation”), or engage inother measures, while the derivatives instruments are held.Generally, under current law, a Portfolio must set aside liquid

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assets equal to the full notional value for derivative contractsthat are not contractually required to “cash-settle.” Forderivative contracts that are contractually required to cash-settle, a Portfolio only needs to set aside liquid assets in anamount equal to a Portfolio’s daily marked-to-market netobligation rather than the contract’s full notional value. APortfolio reserves the right to alter its asset segregation policiesin the future to comply with changes in the law or interpretationsthereunder.

Forwards. Forwards are not exchange-traded and therefore noclearinghouse or exchange stands ready to meet the obligationsof the contracts. Thus, a Portfolio faces the risk that itscounterparties may not perform their obligations. Forwardcontracts are not regulated by the Commodity Futures TradingCommission (“CTFC”) and therefore, a Portfolio will notreceive any benefit of CFTC regulation when trading forwards.

Futures. The risks associated with a Portfolio’s use of futurescontracts include the risks that: (i) changes in the price of afutures contract may not always track the changes in marketvalue of the underlying asset; (ii) trading restrictions orlimitations may be imposed by an exchange, and governmentregulations may restrict trading in futures contracts; and (iii) ifa Portfolio has insufficient cash to meet margin requirements, aPortfolio may need to sell other investments, including atdisadvantageous times.

Options. An investment in options may be subject to greaterfluctuation than an investment in the underlying instrumentsthemselves. By purchasing options, a Portfolio is subject to therisk of a complete loss of premiums. The use of options for riskmanagement or hedging purposes may not be successful,resulting in losses to a Portfolio. In addition, the cost of hedgingmay reduce a Portfolio’s returns.

Swaps. Swap agreements involve the risk that the party withwhom a Portfolio has entered into the swap will default on itsobligation to pay the Portfolio and the risk that the Portfolio willnot be able to meet its obligations to pay the other party to theagreement.

Distressed Securities Risk. Distressed securities arespeculative and involve substantial risks in addition to the risksof investing in junk bonds. A Portfolio will generally not receiveinterest payments on the distressed securities and may incurcosts to protect its investment. In addition, distressed securitiesinvolve the substantial risk that principal will not be repaid.These securities may present a substantial risk of default or maybe in default at the time of investment. A Portfolio may incuradditional expenses to the extent it is required to seek recoveryupon a default in the payment of principal of or interest on itsportfolio holdings. In any reorganization or liquidationproceeding relating to a portfolio company, a Portfolio may loseits entire investment or may be required to accept cash or

securities with a value less than its original investment.Distressed securities and any securities received in an exchangefor such securities may be subject to restrictions on resale.

Emerging Markets Risk. The risks associated withinvestments in foreign securities are heightened in connectionwith investments in the securities of issuers in developing or“emerging market” countries. Generally, the economic, social,legal, and political structures in emerging market countries areless diverse, mature and stable than those in developedcountries. Risks associated with investments in emergingmarkets may include: delays in settling portfolio securitiestransactions; currency and capital controls; greater sensitivity tointerest rate changes; pervasive corruption and crime; exchangerate volatility; inflation, deflation or currency devaluation;violent military or political conflicts; confiscations and othergovernment restrictions by the United States or othergovernments; and government instability. As a result,investments in emerging market securities tend to be morevolatile than investments in developed countries.

Equity Securities Risk. This is the risk that the value of aPortfolio may fluctuate in response to stock market movements.Growth stocks are historically volatile. In addition, individualstocks selected for the Portfolio may underperform the marketgenerally for a variety of reasons, including poor companyearnings results. The performance of different types of equitystocks may rise or decline under varying market conditions —for example, “value” stocks may perform well undercircumstances in which the prices of “growth” stocks in generalhave fallen, or vice versa. In addition, individual stocks selectedfor a Portfolio may underperform the market generally.

ETF Risk. ETFs are subject to specific risks, depending on thenature of the ETF. Most ETFs are investment companies whoseshares are purchased and sold on a securities exchange. An ETFrepresents a portfolio of securities generally designed to track aparticular market segment or index. An investment in an ETFgenerally presents the same primary risks as an investment in aconventional fund (i.e., one that is not exchange-traded) that hasthe same investment objectives, strategies and policies. Inaddition, an ETF may fail to accurately track the market segmentor index that underlies its investment objective. The price of anETF can fluctuate, and a Portfolio could lose money investingin an ETF.

Fixed Income Securities Risk. The value of an investment in aPortfolio investing significantly in fixed income securities maygo up or down in response to changes in interest rates or defaults(or even the potential for future default) by issuers of fixedincome securities. As interest rates rise, the prices for fixedincome securities typically fall; and as interest rates fall, theprices typically rise. To the extent a Portfolio is invested in thebond market, movements in the bond market may affect its

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performance. In addition, individual fixed income securitiesselected for a Portfolio may underperform the market generally.

Foreign Investment Risk. Investments in foreign countries aresubject to a number of risks. A principal risk is that fluctuationsin the exchange rates between the U.S. dollar and foreigncurrencies may negatively affect the value of an investment. Inaddition, there may be less publicly available information abouta foreign company and it may not be subject to the same uniformaccounting, auditing and financial reporting standards as U.S.companies. Foreign governments may not regulate securitiesmarkets and companies to the same degree as the U.S.government. Foreign investments will also be affected by localpolitical or economic developments and governmental actionsby the United States or other governments. Consequently,foreign securities may be less liquid, more volatile and moredifficult to price than U.S. securities. These risks are heightenedfor emerging markets issuers. Historically, the markets ofemerging market countries have been more volatile than moredeveloped markets; however, such markets can provide higherrates of return to investors.

Foreign Sovereign Debt Risk. Foreign sovereign debtsecurities are subject to the risk that a governmental entity maydelay or refuse to pay interest or to repay principal on itssovereign debt, due, for example, to cash flow problems,insufficient foreign currency reserves, political, social andeconomic considerations, the relative size of the governmentalentity’s debt position in relation to the economy or the failure toput in place economic reforms required by the InternationalMonetary Fund or other multilateral agencies. If a governmentalentity defaults, it may ask for more time in which to pay or forfurther loans.

Growth Stock Risk. Growth stocks can be volatile for severalreasons. Since the issuers of growth stocks usually reinvest ahigh portion of earnings in their own business, growth stocksmay lack the dividend yield associated with value stocks thatcan cushion total return in a bear market. Also, growth stocksnormally carry a higher price/earnings ratio than many otherstocks. Consequently, if earnings expectations are not met, themarket price of growth stocks will often decline more than otherstocks. However, the market frequently rewards growth stockswith price increases when expectations are met or exceeded.

Hedging Risk. A hedge is an investment made in order toreduce the risk of adverse price movements in a currency orother investment, by taking an offsetting position (often througha derivative instrument, such as an option or forward contract).While hedging strategies can be very useful and inexpensiveways of reducing risk, they are sometimes ineffective due tounexpected changes in the market. Hedging also involves therisk that changes in the value of the related security will not

match those of the instruments being hedged as expected, inwhich case any losses on the instruments being hedged may notbe reduced. Moreover, while hedging can reduce or eliminatelosses, it can also reduce or eliminate gains.

Illiquidity Risk. When there is little or no active trading marketfor specific types of securities, it can become more difficult tosell the securities at or near their perceived value. In such amarket, the value of such securities and a Portfolio’s share pricemay fall dramatically.

Interest Rate Fluctuations Risk. Fixed income securities maybe subject to volatility due to changes in interest rates. Themarket value of bonds and other fixed income securities usuallytends to vary inversely with the level of interest rates; as interestrates rise, the value of such securities typically falls, and asinterest rates fall, the value of such securities typically rises.Longer-term and lower coupon bonds tend to be more sensitiveto changes in interest rates. In periods of very low short-terminterest rates, the Portfolio’s yield may become negative, whichmay result in a decline in the value of your investment. APortfolio may be subject to a greater risk of rising interest ratesdue to the current period of historically low rates and the effectof potential government fiscal policy initiatives and resultingmarket reaction to those initiatives.

Investment Company Risk. The risks of a Portfolio owningother investment companies, including ETFs, generally reflectthe risks of owning the underlying securities in which theyinvest. Disruptions in the markets for the securities held by theother investment companies purchased or sold by a Portfoliocould result in losses on the Portfolio’s investment in suchsecurities. Other investment companies also have fees thatincrease their costs versus owning the underlying securitiesdirectly.

IPO Risk. The risk associated with companies that have littleoperating history as public companies, as well as to the risksinherent in those sectors of the market where these new issuersoperate. The market for IPO issuers has been volatile, and shareprices of newly-public companies have fluctuated in significantamounts over short periods of time.


Large-Cap Companies Risk. Large-cap companies tend to goin and out of favor based on market and economic conditions.Large-cap companies tend to be less volatile than companieswith smaller market capitalizations. In exchange for thispotentially lower risk, a Portfolio’s value may not rise as much

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as the value of portfolios that emphasize smaller capitalizationcompanies.

Management Risk. A Portfolio is subject to management riskbecause it is an actively-managed investment portfolio. APortfolio’s portfolio managers apply investment techniques andrisk analyses in making investment decisions, but there can beno guarantee that these decisions or the individual securitiesselected by the portfolio managers will produce the desiredresults.

Market Risk. The stock and/or bond markets as a whole arevolatile and could go up or down, sometimes dramatically, formany reasons, including adverse political or economicdevelopment in the United States or abroad, changes in investorpsychology or heavy institutional selling. The prospects for anindustry or company may deteriorate because of a variety offactors, including disappointing earnings or changes in thecompetitive environment. This could affect the value of thesecurities held by a Portfolio.

Medium-Sized Companies Risk. Securities of medium-sizedcompanies are usually more volatile and entail greater risks thansecurities of large companies.

MLP Risk. The interests or “units” of an MLP are listed andtraded on securities exchanges or in the over-the-counter marketand their value fluctuates predominantly based on prevailingmarket conditions and the success of the MLP. MLPs carrymany of the risks inherent in investing in a partnership. Unitholders of an MLP may not be afforded corporate protections tothe same extent as shareholders of a corporation. In addition,unlike owners of common stock of a corporation, holders ofcommon units of an MLP may have more limited control andlimited rights to vote on matters affecting the MLP and have noability to elect directors annually. In the event of liquidation,common units have preference over subordinated units, but notover debt or preferred units, to the remaining assets of the MLP.

Due to their federal income tax treatment as partnerships, MLPstypically do not pay income taxes, but MLP unit holders aregenerally subject to tax on their share of the MLP’s income andgains. A change in current tax law or in the industry in which anMLP operates could result in the MLP being treated as acorporation for U.S. federal income tax purposes and beingrequired to pay U.S. federal income tax on its taxable income.The classification of an MLP in which the Portfolio holds unitsas a corporation for U.S. federal income tax purposes wouldhave the effect of reducing the amount of cash available fordistribution by the MLP and any such distributions to thePortfolio would generally be taxed as dividend income, whichwould materially reduce the Portfolio’s cash flow from suchMLP unit investment.

Mortgage- and Asset-Backed Securities Risk. Mortgage- andasset-backed securities represent interests in “pools” of

mortgages or other assets, including consumer loans orreceivables held in trust. The characteristics of these mortgage-backed and asset-backed securities differ from traditional fixed-income securities. Mortgage-backed securities are subject to“prepayment risk” and “extension risk.” Prepayment risk is therisk that, when interest rates fall, certain types of obligationswill be paid off by the obligor more quickly than originallyanticipated and the Portfolio may have to invest the proceeds insecurities with lower yields. Extension risk is the risk that, wheninterest rates rise, certain obligations will be paid off by theobligor more slowly than anticipated, causing the value of thesesecurities to fall. Small movements in interest rates (bothincreases and decreases) may quickly and significantly reducethe value of certain mortgage-backed securities. Thesesecurities also are subject to risk of default on the underlyingmortgage, particularly during periods of economic downturn.

Preferred Stock Risk. Unlike common stock, preferred stockgenerally pays a fixed dividend from a company’s earnings andmay have a preference over common stock on the distribution ofa company’s assets in the event of bankruptcy or liquidation.Preferred stockholders’ liquidation rights are subordinate to thecompany’s debt holders and creditors. If interest rates rise, thefixed dividend on preferred stocks may be less attractive and theprice of preferred stocks may decline. Preferred stock usually donot require the issuer to pay dividends and may permit the issuerto defer dividend payments. Deferred dividend payments couldhave adverse tax consequences for a Portfolio and may cause thepreferred stock to lose substantial value.

Prepayment Risk. Prepayment risk is the possibility that theprincipal of the loans underlying mortgage-backed or otherpass-through securities may be prepaid at any time. As a generalrule, prepayments increase during a period of falling interestrates and decrease during a period of rising interest rates. As aresult of prepayments, in periods of declining interest rates aPortfolio may be required to reinvest its assets in securities withlower interest rates. In periods of increasing interest rates,prepayments generally decline, with the effect that the securitiessubject to prepayment risk held by a Portfolio may exhibit pricecharacteristics of longer-term debt securities.

Real Estate Industry Risks. Risks include declines in the valueof real estate, risks related to general and local economicconditions, overbuilding and increased competition, increasesin property taxes and operating expenses, changes in zoninglaws, casualty or condemnation losses, fluctuations in rentalincome, changes in neighborhood values, changes in the appealof properties to tenants and increases in interest rates. If aPortfolio has rental income or income from the disposition ofreal property, the receipt of such income may adversely affect itsability to retain its tax status as a regulated investment company.In addition, REITs are dependent upon management skill, maynot be diversified and are subject to project financing risks.Such trusts are also subject to heavy cash flow dependency,

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defaults by borrowers, self-liquidation and the possibility offailing to qualify for tax-free pass-through of income under theInternal Revenue Code of 1986, as amended (the “Code”), andto maintain exemption from registration under the 1940 Act.REITs may be leveraged, which increases risk.

REIT (Real Estate Investment Trusts) Risk. A Portfolio mayinvest in REITs. Investing in REITs involves certain uniquerisks. Equity REITs may be affected by changes in the value ofthe underlying property owned by such REITs, while mortgageREITs may be affected by the quality of any credit extended.REITs are dependent upon management skills, are notdiversified (except to the extent the Code requires), and aresubject to the risks of financing projects. REITs are subject toheavy cash flow dependency, default by borrowers, self-liquidation, and the possibilities of failing to qualify for theexemption from tax for distributed income under the Code andfailing to maintain their exemptions from the 1940 Act. REITsare also subject to interest rate risks. A Portfolio will indirectlybear its proportionate share of any management and otherexpenses that may be charged by the REITs in which it invests,in addition to the expenses paid by the Portfolio. REITs may beleveraged, which increases risk.

Reverse Repurchase Agreements Risk. Reverse repurchaseagreements involve the sale of securities held by a Portfolio withan agreement to repurchase the securities at an agreed-uponprice, date and interest payment. Reverse repurchaseagreements involve the risk that the other party may fail toreturn the securities in a timely manner or at all. The Portfoliocould lose money if it is unable to recover the securities and thevalue of the collateral held by the Portfolio, including the valueof the investments made with cash collateral, is less than thevalue of securities. These events could also trigger adverse taxconsequences to the Portfolio.

Risk of Investing in Junk Bonds. A Portfolio may invest in, orobtain exposure to, high-yield, high risk bonds commonlyknown as “junk bonds,” which are considered speculative. Junkbonds carry a substantial risk of default or of changes in theissuer’s creditworthiness, or they may already be in default at thetime of purchase.A junk bond’s market price may fluctuate morethan higher-quality securities and may decline significantly. Inaddition, it may be more difficult for the Portfolio to dispose ofjunk bonds or to determine their value. Junk bonds may containredemption or call provisions that, if exercised during a periodof declining interest rates, may force the Portfolio to replace thesecurity with a lower yielding security. If this occurs, it willdecrease the value of your investment in the Portfolio.

Roll Transactions Risk. Roll transactions involve certain risks,including the following: if the broker-dealer to whom a Portfoliosells the security becomes insolvent, the Portfolio’s right topurchase or repurchase the security subject to the dollar roll maybe restricted and the instrument that the Portfolio is required torepurchase may be worth less than an instrument that the

Portfolio originally held. Successful use of roll transactions willdepend upon the adviser/subadviser’s ability to predict correctlyinterest rates and, in the case of mortgage dollar rolls, mortgageprepayments. For these reasons, there is no assurance that dollarrolls can be successfully employed.

Settlement Risk. Investments purchased on an extended-settlement basis, such as when-issued, forward commitment ordelayed-delivery transactions, involve a risk of loss if the valueof the security to be purchased declines before the settlementdate. Conversely, the sale of securities on an extended-settlement basis involves the risk that the value of the securitiessold may increase before the settlement date.

Small- and Medium-Sized Companies Risk. Companies withsmaller market capitalizations (particularly under $1 billiondepending on the market) tend to be at early stages ofdevelopment with limited product lines, operating histories,market access for products, financial resources, access to newcapital, or depth in management. It may be difficult to obtainreliable information and financial data about these companies.Consequently, the securities of smaller companies may not be asreadily marketable and may be subject to more abrupt or erraticmarket movements than companies with larger capitalizations.Securities of medium-sized companies are also subject to theserisks to a lesser extent.

Small-Sized Companies Risk. Securities of small-capcompanies are usually more volatile and entail greater risks thansecurities of large companies.

Structured Notes Risk. Structured notes and other relatedinstruments are generally privately negotiated debt obligationswhere the principal and/or interest is determined by reference tothe performance of a specific asset, benchmark asset, market orinterest rate (“reference measure”). The purchase of structurednotes exposes a Portfolio to the credit risk of the issuer of thestructured product. Structured notes may be leveraged,increasing the volatility of each structured note’s value relativeto the change in the reference measure. Structured notes mayalso be less liquid and more difficult to price accurately than lesscomplex securities and instruments or more traditional debtsecurities.

U.S. Government Securities Risk. As noted in the InvestmentTerms section of the Glossary, obligations issued by agenciesand instrumentalities of the U.S. Government vary in the levelof support they receive from the U.S. Government. Themaximum potential liability of the issuers of some U.S.Government securities held by a Portfolio may greatly exceedtheir current resources, including their legal right support fromthe U.S. Treasury. It is possible that these issuers will not havethe funds to meet their payment obligations in the future. TheU.S. Government may choose not to provide financial supportto U.S. Government sponsored agencies or instrumentalities ifit is not legally obligated to do so, in which case, if the issuer

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defaulted, a Portfolio holding securities of such issuer might notbe able to recover its investment from the U.S. Government.

Warrants and Rights Risk. Warrants and rights can provide agreater potential for profit or loss than an equivalent investmentin the underlying security. Prices of warrants and rights do notnecessarily move in tandem with the prices of the underlying

securities and therefore, are highly volatile and speculativeinvestments. They have no voting rights, pay no dividends andhave no rights with respect to the assets of the issuer other thana purchase option. If a warrant or right held by a Portfolio is notexercised by the date of its expiration, the Portfolio would losethe entire purchase price of the warrant or right.

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Information about the Investment Adviser

SunAmerica Asset Management, LLC (“SunAmerica” or the“Adviser”) serves as investment adviser and manager for all thePortfolios of the Trust. SunAmerica oversees WellingtonManagement Company LLP, BlackRock InvestmentManagement, LLC and Principal Global Investors, LLC (the“Subadvisers”), provides various administrative services andsupervises the daily business affairs of each Portfolio.SunAmerica, located at Harborside 5, 185 Hudson Street, Suite3300, Jersey City, New Jersey 07311, is a limited liabilitycompany organized under the laws of the state of Delaware, andis a wholly owned subsidiary of American General LifeInsurance Company. SunAmerica managed, advised oradministered assets in excess of $79 billion as of December 31,2018. In addition to serving as investment adviser and managerto the Trust, SunAmerica serves as adviser, manager and/oradministrator for Seasons Series Trust, SunAmerica Series, Inc.,SunAmerica Equity Funds, SunAmerica Income Funds,SunAmerica Money Market Funds, Inc., SunAmerica SeriesTrust, SunAmerica Senior Floating Rate Fund, Inc.,SunAmerica Specialty Series, VALIC Company I and VALICCompany II.

A discussion regarding the basis for the Board’s approval of theTrust’s investment advisory agreement and the subadvisoryagreements between SunAmerica and the Subadvisers isavailable in the Trust’s 2018 Semi-Annual Report toshareholders, which is available upon request.

SunAmerica has received an exemptive order from theSecurities and Exchange Commission (“SEC”) that permitsSunAmerica, subject to certain conditions, to enter intoagreements relating to each of the Portfolios with subadvisersapproved by the Board without obtaining shareholder approval.The exemptive order also permits SunAmerica, subject to theapproval of the Board but without shareholder approval, toapprove new subadvisers for each Portfolio, change the terms ofparticular agreements with such subadvisers or continue theemployment of existing subadvisers after events that wouldotherwise cause an automatic termination of a subadvisoryagreement. Shareholders will be notified of any subadviserchanges. Shareholders of each Portfolio have the right toterminate an agreement with a subadviser for the Portfolio atany time by a vote of the majority of the outstanding votingsecurities of such Portfolio. Affiliated subadvisers selected andapproved by the Board are subject to shareholder approval.

For the fiscal year ended December 31, 2018, each Portfoliopaid SunAmerica a fee equal to the following percentage ofaverage daily net assets:

Portfolio Fee

SA BlackRock Multi-Asset Income Portfolio ............... 0.80%SA PGI Asset Allocation Portfolio................................. 0.67%SA Wellington Capital Appreciation Portfolio............... 0.70%

Portfolio Fee

SA Wellington Government and Quality BondPortfolio...................................................................... 0.53%

SA Wellington Strategic Multi-Asset Portfolio.............. 1.00%

Commission Recapture Program. Through a commissionrecapture program, a portion of certain Portfolios’ expenseshave been reduced. “Other Expenses,” as reflected in the AnnualPortfolio Operating Expenses in each Portfolio Summary, donot take into account this expense reduction and are thereforehigher than the actual expenses of the Portfolio. Each Portfolio,other than the SA BlackRock Multi-Asset Income Portfolio andthe SA Wellington Government and Quality Bond Portfolio,participated in the commission recapture program.

Acquired Fund Fees And Expenses. Acquired fund fees andexpenses include fees and expenses incurred indirectly by aPortfolio as a result of investment in shares of one or moremutual funds, hedge funds, private equity funds or pooledinvestment vehicles. The fees and expenses will vary based onthe Portfolio’s allocation of assets to, and the annualized netexpenses of, the particular acquired fund.

Information about the Subadvisers

The investment manager(s) and/or management team(s) thathave primary responsibility for the day-to-day management ofthe Portfolios are set forth below. Unless otherwise noted, amanagement team’s members share responsibility in makinginvestment decisions on behalf of a Portfolio and no teammember is limited in his/her role with respect to themanagement team.

SunAmerica compensates the Subadvisers out of the advisoryfees that it receives from the respective Portfolios. SunAmericamay terminate its agreements with the Subadvisers withoutshareholder approval.

The Statement of Additional Information provides informationregarding the portfolio managers listed below, including otheraccounts they manage, their ownership interest in thePortfolio(s), and the structure and method used by theSubadvisers to determine their compensation.

BlackRock Investment Management, LLC (“BlackRock”) islocated at 1 University Square Drive, Princeton, NJ 08540-6455. BlackRock is an affiliate of BlackRock Advisors, LLC, awholly-owned indirect subsidiary of BlackRock, Inc., one of thelargest publicly traded investment management firms in theUnited States with approximately $5.97 trillion in assets under

management as of December 31, 2018. In managing the SABlackRock Multi-Asset Income Portfolio, the Subadviserutilizes sub-subadvisers that are subsidiaries of BlackRock:BlackRock International Limited, BlackRock AssetManagement North Asia Limited, and BlackRock (Singapore)

MANAGEMENT

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Limited.

The SA BlackRock Multi-Asset Income Portfolio is managed bya team of portfolio managers, which includes MichaelFredericks, Alex Shingler, CFA and Justin Christofel, CFA,CAIA.

Mr. Fredericks, Managing Director, is head of IncomeInvestment for the BlackRock Multi-Asset Portfolio Strategiesgroup and lead portfolio manager for the BlackRock Multi-Asset Income, BlackRock Global Multi-Asset Income, andDynamic High Income Funds. He is responsible for thedevelopment and management of asset allocation strategies forretail clients. He joined BlackRock in 2011. Alex Shingler,Managing Director, is a member of the BlackRock Multi-AssetStrategies group and a portfolio manager for the income-oriented multi-asset portfolio, where he manages incomeoriented strategies. He joined BlackRock in 2009 in London,and has served as a research analyst and portfolio managerwithin European and US Credit strategies. Mr. Christofel,Managing Director and portfolio manager, is a member of theMulti-Asset Portfolio Strategies group, which is responsible fordeveloping, assembling, and managing global tactical assetallocation portfolios as well as outcome oriented investmentsolutions. Mr. Christofel is a portfolio manager for theBlackRock Global Multi-Asset Income and the BlackRockDynamic High Income Funds. Mr. Christofel also managesdecumulation strategies designed for investor retirement.Mr. Christofel joined BlackRock in 2007.

Principal Global Investors, LLC (“PGI”), a Delaware limitedliability company, is located at 801 Grand Ave, Des Moines,Iowa 50309. PGI is an investment adviser registered with theSEC under the Investment Advisers Act of 1940 and providesinvestment advisory services to registered investmentcompanies and separately managed accounts. As ofDecember 31, 2018, PGI and its investment affiliates had over$412.76 billion in assets under management.

The SA PGI Asset Allocation Portfolio is managed by a team ofportfolio managers, including Charles D. Averill, CFA, ToddJablonski, CFA and Gregory L. Tornga, CFA. Mr. Averill is aportfolio manager of the asset allocation team. He has workedat PGI or one of its predecessor firms since 1990. Mr. Jablonskiis currently Chief Investment Officer and a portfolio manager.He joined PGI in 2010 and has been in the investment industrysince 1998. Mr. Tornga is a portfolio manager at PGI. He joinedPGI in 2011 and has been in the investment industry since 2002.Messrs. Averill, Jablonski and Tornga each hold the CharteredFinancial Analyst designation.

Wellington Management Company LLP (“WellingtonManagement”) is a Delaware limited liability partnership withprincipal offices at 280 Congress Street, Boston, Massachusetts02210. Wellington Management is a professional investmentcounseling firm which provides investment services toinvestment companies, employee benefit plans, endowments,foundations, and other institutions. Wellington Managementand its predecessor organizations have provided investmentadvisory services for over 80 years. Wellington Management isowned by the partners of Wellington Management Group LLP,a Massachusetts limited liability partnership. As ofDecember 31, 2018, Wellington Management and its investmentadvisory affiliates had investment management authority withrespect to approximately $1 trillion in assets.

The SAWellington CapitalAppreciation Portfolio is managed byStephen C. Mortimer and Michael T. Carmen, CFA.Mr. Mortimer, Senior Managing Director and Equity PortfolioManager of Wellington Management, joined the firm as aninvestment professional in 2001. Mr. Carmen, Senior ManagingDirector and Equity Portfolio Manager of WellingtonManagement, is involved in portfolio management andsecurities analysis for the Portfolio. Mr. Carmen joined the firmas an investment professional in 1999.

The SA Wellington Government and Quality Bond Portfolio ismanaged by Michael E. Stack, CFA and Loren L. Moran, CFA.Mr. Stack, Senior Managing Director and Fixed IncomePortfolio Manager of Wellington Management, joined the firmas an investment professional in 2000. Ms. Moran, ManagingDirector and Fixed Income Portfolio Manager of WellingtonManagement, joined the firm as an investment professional in2014.

The SAWellington Strategic Multi-Asset Portfolio is managed bya team of portfolio managers, which includes Nicolas M.Choumenkovitch and Mark H. Sullivan, CFA, CMT.Mr. Choumenkovitch, Senior Managing Director and EquityPortfolio Manager of Wellington Management, is the portfoliomanager of the global equity portion of the Portfolio.Mr. Choumenkovitch joined the firm as an investmentprofessional in 1995. Mr. Sullivan, Senior Managing Directorand Fixed Income Portfolio Manager, joined the firm as aninvestment professional in 1999.

Custodian, Transfer and Dividend Paying Agent

State Street Bank and Trust Company, Boston, Massachusetts,acts as Custodian of the Trust’s assets. VALIC RetirementServices Company is the Trust’s Transfer and Dividend PayingAgent and in so doing performs certain bookkeeping, dataprocessing and administrative services.

MANAGEMENT

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General

Shares of each Portfolio are not offered directly to the public.Instead, shares are currently issued and redeemed only inconnection with investments in and payments under VariableContracts offered by life insurance companies affiliated withSunAmerica, the investment adviser and manager, as well asnon-affiliated life insurance companies. All shares of the Trustare owned by “Separate Accounts” of the life insurancecompanies. The term “Manager” as used in this Prospectusmeans either SunAmerica or the other registered investmentadvisers that serve as Subadvisers to the Trust, as the case maybe.

The Trust offers three classes of shares: Class 1, Class 2 andClass 3 shares. This Prospectus offers all three classes of shares.Certain classes of shares are offered only to existing contractowners and are not available to new investors. In addition, notall Portfolios are available to all contract owners.

You should be aware that the Variable Contracts involve fees andexpenses that are not described in this Prospectus, and that thecontracts also may involve certain restrictions and limitations.You will find information about purchasing a Variable Contractand the Portfolios available to you in the prospectus that offersthe Variable Contracts, which accompanies this Prospectus.

The Trust does not foresee a disadvantage to contract ownersarising out of the fact that the Trust offers its shares for VariableContracts through the various life insurance companies.Nevertheless, the Board intends to monitor events in order toidentify any material irreconcilable conflicts that may possiblyarise and to determine what action, if any, should be taken inresponse. If such a conflict were to occur, one or more insurancecompany separate accounts might withdraw their investments inthe Trust. This might force the Trust to sell portfolio securitiesat disadvantageous prices.

Service (12b-1) Plan

Class 2 and Class 3 shares of those Portfolios offering suchclasses of shares are subject to a Rule 12b-1 plan that providesfor service fees payable at the annual rate of up to 0.15% and0.25%, respectively, of the average daily net assets of such classof shares. The service fees will be used to compensate the lifeinsurance companies for costs associated with the servicing ofeither Class 2 or Class 3 shares, including the cost ofreimbursing the life insurance companies for expenditures madeto financial intermediaries for providing service to contractholders who are the indirect beneficial owners of the Portfolios’Class 2 or Class 3 shares. Because these fees are paid out of suchPortfolio’s Class 2 or Class 3 assets on an ongoing basis, overtime these fees will increase the cost of your investment and maycost you more than paying other types of sales charges.

Transaction Policies

Valuation of shares. The net asset value (“NAV”) per share foreach Portfolio and class is determined each business day at theclose of regular trading on the New York Stock Exchange(“NYSE”) (generally 4:00 p.m., Eastern time) by dividing thenet assets of each class by the number of such class’s outstandingshares. The NAV for each Portfolio also may be calculated onany other day in which there is sufficient liquidity in thesecurities held by the Portfolio. As a result, the value of thePortfolio’s shares may change on days when you will not be ableto purchase or redeem your shares.

Securities for which market quotations are readily available arevalued at their market price as of the close of regular trading onthe NYSE for the day, unless, in accordance with pricingprocedures approved by the Trust’s Board, the market quotationsare determined to be unreliable.

Securities and other assets for which market quotations areunavailable or unreliable are valued at fair value in accordancewith pricing procedures periodically approved and reviewed bythe Board. There is no single standard for making fair valuedeterminations, which may result in the use of prices that varyfrom those used by other funds. In addition, there can be noassurance that fair value pricing will reflect actual market value,and it is possible that the fair value determined for a securitymay differ materially from the value that could be realized uponthe sale of the security. The value of any share of open-end fundsheld by the Portfolios will be calculated using the NAV of suchfunds. The prospectus for any such open-end funds shouldexplain the circumstances under which these funds use fairvalue pricing and the effect of using fair value pricing.

As of the close of regular trading on the NYSE, securities tradedprimarily on security exchanges outside the United States arevalued at the last sale price on such exchanges on the day ofvaluation or if there is no sale on the day of valuation, at the lastreported bid price. If a security’s price is available from morethan one exchange, a Portfolio will use the exchange that is theprimary market for the security. However, depending on theforeign market, closing prices may be up to 15 hours old whenthey are used to price the Portfolio’s shares, and the Portfoliomay determine that certain closing prices do not reflect the fairvalue of the securities. This determination will be based on areview of a number of factors, including developments inforeign markets, the performance of U.S. securities markets, andthe performance of instruments trading in U.S. markets thatrepresent foreign securities and baskets of foreign securities. Ifa Portfolio determines that closing prices do not reflect the fairvalue of the securities, the Portfolio will adjust the previousclosing prices in accordance with pricing procedures approved

ACCOUNT INFORMATION

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by the Board to reflect what it believes to be the fair value of thesecurities as of the close of regular trading on the NYSE.

A Portfolio may also fair value securities in other situations, forexample, when a particular foreign market is closed but thePortfolio is open. For foreign equity securities and foreignequity index futures contracts, the Trust uses an outside pricingservice to provide it with closing market prices and informationused for adjusting those prices.

A Portfolio may invest in securities that are primarily listed onforeign exchanges that trade on weekends or other days whenthe Trust does not price its shares. As a result, the value of thePortfolio’s shares may change on days when the Trust is not openfor purchases or redemptions.

Because Class 2 and Class 3 shares are subject to service fees,while Class 1 shares are not, the NAV per share of the Class 2and Class 3 shares will generally be lower than the NAV pershare of the Class 1 shares of each Portfolio that offers Class 2and Class 3 shares.

Buy and sell prices. The Separate Accounts buy and sell sharesof a Portfolio at NAV, without any sales or other charges.However, as discussed above, Class 2 and Class 3 shares aresubject to service fees pursuant to a Rule 12b-1 plan.

Execution of requests. The Trust is open on those days whenthe NYSE is open for regular trading. Buy and sell requests areexecuted at the next NAV to be calculated after the request isaccepted by the Trust. If the order is received and is in goodorder by the Trust, or the insurance company as its authorizedagent, before the Trust’s close of business (generally 4:00 p.m.,Eastern time), the order will receive that day’s closing price. Ifthe order is received after that time, it will receive the nextbusiness day’s closing price.

Under the 1940 Act, a Portfolio may suspend the right ofredemption or postpone the date of payment for more than sevendays in the following unusual circumstances:

• during any period in which the NYSE is closed otherthan customary weekend and holiday closings orduring any period in which trading on the NYSE isdeemed to be restricted;

• during any period in which an emergency exists, as aresult of which (i) it is not reasonably practicable forthe Portfolio to dispose of securities owned by it or(ii) it is not reasonably practicable for the Portfolio tofairly determine the value of its net assets; or

• during such other periods as the SEC may by orderpermit to protect Portfolio shareholders.

The SEC will determine the conditions under which tradingshall be deemed to be restricted and the conditions under whichan emergency shall be deemed to exist.

Your redemption proceeds typically will be sent within threebusiness days after your request is submitted, but in any event,within seven days. Under normal circumstances, the Trustexpects to meet redemption requests by using cash or cashequivalents in a Portfolio or by selling portfolio assets togenerate cash. During periods of stressed market conditions, aPortfolio may be more likely to limit cash redemptions and maydetermine to pay redemption proceeds by borrowing under aline of credit.

Frequent Purchases and Redemptions of Shares

The Portfolios, including the SAI,, which are offered onlythrough Variable Contracts, are intended for long-terminvestment and not as frequent short-term trading (“markettiming”) vehicles. Accordingly, organizations or individuals thatuse market timing investment strategies and make frequenttransfers or redemptions should not acquire Variable Contractsthat relate to shares of the Portfolios, including the SAI,.

The Board has adopted policies and procedures with respect tomarket timing activity as discussed below.

The Trust believes that market timing activity is not in the bestinterest of the Portfolios’ performance or their participants.Market timing can disrupt the ability of a Subadviser to investassets in an orderly, long-term manner, which may have anadverse impact on the performance of a Portfolio. In addition,market timing may increase a Portfolio’s expenses throughincreased brokerage, transaction and administrative costs;forced and unplanned portfolio turnover; and large asset swingsthat decrease a Portfolio’s ability to provide maximuminvestment return to all participants. This in turn can have anadverse effect on Portfolio performance.

Certain Portfolios may invest to a large extent in securities thatare primarily traded in foreign markets. Market timing inPortfolios investing significantly in foreign securities may occurbecause of time zone differences between the foreign marketson which a Portfolio’s international portfolio securities trade andthe time as of which the Portfolio’s NAV is calculated. Markettiming in Portfolios investing significantly in junk bonds mayoccur if market prices are not readily available for a Portfolio’sjunk bond holdings. Market timers may purchase shares of aPortfolio based on events occurring after foreign market closingprices are established but before calculation of the Portfolio’sNAV, or if they believe market prices for junk bonds are notaccurately reflected by a Portfolio. One of the objectives of theTrust’s fair value pricing procedures is to minimize thepossibilities of this type of market timing (see “TransactionPolicies—Valuation of Shares”).

Shares of the Portfolios are generally held through SeparateAccounts. The ability of the Trust to monitor transfers made bythe participants in Separate Accounts maintained by financial

ACCOUNT INFORMATION

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intermediaries is limited by the institutional nature of theseomnibus accounts. The Board’s policy is that the Portfolios,including the SAI, must rely on the Separate Accounts to bothmonitor market timing within a Portfolio and attempt to preventit through their own policies and procedures.

The Trust has entered into agreements with the SeparateAccounts that require the Separate Accounts to provide certaininformation to help identify frequent trading activity and toprohibit further purchases or exchanges by a shareholderidentified as having engaged in frequent trades. In situations inwhich the Trust becomes aware of possible market timingactivity, it will notify the Separate Account in order to helpfacilitate the enforcement of such entity’s market timing policiesand procedures.

There is no guarantee that the Trust will be able to detect markettiming activity or the participants engaged in such activity, or, ifit is detected, to prevent its recurrence. Whether or not the Trustdetects it, if market timing activity occurs, you may be subjectto the disruptions and increased expenses discussed above. TheTrust reserves the right, in its sole discretion and without priornotice, to reject or refuse purchase orders received frominsurance company Separate Accounts, whether directly or bytransfer, including orders that have been accepted by a financialintermediary, that the Trust determines not to be in the bestinterest of a Portfolio. Such rejections or refusals will be applieduniformly without exception.

Any restrictions or limitations imposed by the SeparateAccounts may differ from those imposed by the Trust. Pleasereview your Variable Contract prospectus for more informationregarding the insurance company’s market timing policies andprocedures, including any restrictions or limitations that theSeparate Accounts may impose with respect to trades madethrough a Variable Contract. Please refer to the documentspertaining to your Variable Contract prospectus on how to directinvestments in or redemptions from (including making transfersinto or out of) the Portfolios and any fees that may apply.

Payments in Connection with Distribution

Certain life insurance companies affiliated with SunAmericareceive revenue sharing payments from SunAmerica and certainsubadvisers in connection with certain administrative,marketing and other servicing activities, including payments tohelp offset costs for marketing activities and training to supportsales of the Portfolios, as well as occasional gifts, entertainmentor other compensation as incentives. Payments may be derivedfrom 12b-1 fees that are deducted directly from the assets of the

Portfolios or from investment management fees received bySunAmerica or Subadvisers.

Portfolio Holdings

The Trust’s policies and procedures with respect to thedisclosure of the Portfolios’ securities are described in theStatement of Additional Information.

Dividend Policies and Taxes

Distributions. Each Portfolio annually declares and distributessubstantially all of its net investment income in the form ofdividends. Distributions from net realized gains, if any, are paidannually for all Portfolios.

Distribution Reinvestments. The dividends and distributions, ifany, will be reinvested automatically in additional shares of thesame Portfolio on which they were paid. The per share dividendson Class 2 and Class 3 shares will generally be lower than theper share dividends on Class 1 shares of the same Portfolio as aresult of the fact that Class 2 and Class 3 shares are subject toservice fees, while Class 1 shares are not.

Taxability of a Portfolio. Each Portfolio intends to qualify as a“regulated investment company” under the Code. As long aseach Portfolio is qualified as a regulated investment company, itwill not be subject to U.S. federal income tax on the earningsthat it distributes to its shareholders.

The Portfolios that receive dividend income from U.S. sourceswill annually report certain amounts of their dividends paid aseligible for the dividends received deduction, and the Portfoliosincurring foreign taxes will elect to pass-through allowableforeign tax credits. These reports and elections will benefit thelife insurance companies, in potentially material amounts, andwill not beneficially or adversely affect you or the Portfolios.The benefits to the life insurance companies will not be passedto you or the Portfolios.

Each Portfolio further intends to meet certain additionaldiversification and investor control requirements that apply toregulated investment companies that underlie VariableContracts. If a Portfolio were to fail to qualify as a regulatedinvestment company or were to fail to comply with theadditional diversification or investor control requirements,Separate Accounts invested in the Portfolio may not be treatedas annuity, endowment, or life insurance contracts for federalincome tax purposes, and income and gains earned inside theSeparate Accounts would be taxed currently to policyholdersand would remain taxable in future years, even if the Portfoliowere to become adequately diversified in the future.

ACCOUNT INFORMATION

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FINANCIAL HIGHLIGHTS

The following Financial Highlights tables are intended to help you understand each Portfolio’s financial performance for the past 5years. Certain information reflects financial results for a single Portfolio share. The total returns in each table represent the rate that aninvestor would have earned on an investment in a Portfolio (assuming reinvestment of all dividends and distributions). SeparateAccount charges are not reflected in the total returns. If these amounts were reflected, returns would be less than those shown. Thisinformation has been audited by PricewaterhouseCoopers LLP, whose report, along with each Portfolio’s financial statements, isincluded in the Trust’s Annual Report to shareholders, which is available upon request.

Periodended

Net AssetValue

beginningof period

Netinvestment

income(loss)(1)

Net realized& unrealized

gain (loss)on

investments

Total frominvestmentoperations

Dividendsdeclaredfrom net

investmentincome

Distributionsfrom netrealizedgain on

investments

Totaldividends

anddistributions

Net AssetValueend ofperiod

TotalReturn(2)

Net Assetsend of

period (000’s)

Ratio ofexpenses

to averagenet assets

Ratio of netinvestment

income (loss)to averagenet assets

Portfolioturnover

rate

SA Wellington Government and Quality Bond Portfolio Class 112/31/14 $14.71 $0.21 $ 0.55 $ 0.76 $(0.29) $ — $(0.29) $15.18 5.19% $572,823 0.58% 1.40% 128%12/31/15 15.18 0.21 (0.13) 0.08 (0.23) (0.05) (0.28) 14.98 0.58 657,562 0.57 1.39 6212/31/16 14.98 0.24 (0.02) 0.22 (0.22) (0.10) (0.32) 14.88 1.42 817,141 0.57 1.59 6112/31/17 14.88 0.28 0.16 0.44 (0.28) — (0.28) 15.04 2.97 801,507 0.58 1.86 3312/31/18 15.04 0.34 (0.34) 0.00 (0.31) (0.01) (0.32) 14.72 0.04 777,915 0.57 2.28 16

SA Wellington Government and Quality Bond Portfolio Class 212/31/14 14.72 0.19 0.54 0.73 (0.26) — (0.26) 15.19 4.99 43,986 0.73 1.25 12812/31/15 15.19 0.19 (0.14) 0.05 (0.20) (0.05) (0.25) 14.99 0.39 36,223 0.72 1.25 6212/31/16 14.99 0.22 (0.02) 0.20 (0.19) (0.10) (0.29) 14.90 1.31 30,780 0.72 1.45 6112/31/17 14.90 0.26 0.16 0.42 (0.25) — (0.25) 15.07 2.85 27,824 0.72 1.72 3312/31/18 15.07 0.32 (0.33) (0.01) (0.29) (0.01) (0.30) 14.76 (0.08) 22,895 0.72 2.12 16

SA Wellington Government and Quality Bond Portfolio Class 312/31/14 14.67 0.17 0.54 0.71 (0.25) — (0.25) 15.13 4.87 783,305 0.83 1.15 12812/31/15 15.13 0.17 (0.13) 0.04 (0.19) (0.05) (0.24) 14.93 0.32 739,821 0.82 1.14 6212/31/16 14.93 0.21 (0.03) 0.18 (0.18) (0.10) (0.28) 14.83 1.18 762,516 0.82 1.35 6112/31/17 14.83 0.24 0.17 0.41 (0.24) — (0.24) 15.00 2.78 751,516 0.82 1.62 3312/31/18 15.00 0.30 (0.34) (0.04) (0.27) (0.01) (0.28) 14.68 (0.24) 625,760 0.82 2.03 16

(1) Calculated based upon average shares outstanding.(2) Total return does not reflect expenses that apply to the separate accounts of the Life Companies. If such expenses had been included, the total return would have

been lower for each period presented.

See Notes to Financial Statements

Anchor Series Trust


Periodended

Net AssetValue

beginningof period

Netinvestment

income(loss)(1)


gain (loss)on

investments



investmentincome


investments

Totaldividends

anddistributions


TotalReturn(2)

Net Assetsend of

period (000’s)

Ratio ofexpenses

to averagenet assets(3)


income (loss)to average

net assets(3)

Portfolioturnover

rate

SA PGI Asset Allocation Portfolio Class 112/31/14 $16.21 $0.40 $ 0.80 $ 1.20 $(0.41) $(0.46) $(0.87) $16.54 7.41% $146,594 0.75% 2.37% 29%12/31/15 16.54 0.36 (0.66) (0.30) (0.49) (1.71) (2.20) 14.04 (1.72) 125,264 0.75 2.24 2712/31/16 14.04 0.34 1.13 1.47 (0.42) (1.05) (1.47) 14.04 10.82 119,255 0.75 2.40 4512/31/17 14.04 0.31 1.57 1.88 (0.41) (1.24) (1.65) 14.27 13.73 117,879 0.76 2.09 3712/31/18 14.27 0.32 (0.93) (0.61) (0.37) (0.70) (1.07) 12.59 (4.54) 97,575 0.77 2.25 22

SA PGI Asset Allocation Portfolio Class 212/31/14 16.18 0.37 0.81 1.18 (0.38) (0.46) (0.84) 16.52 7.31 15,750 0.90 2.22 2912/31/15 16.52 0.33 (0.64) (0.31) (0.47) (1.71) (2.18) 14.03 (1.83) 13,832 0.90 2.09 2712/31/16 14.03 0.32 1.12 1.44 (0.40) (1.05) (1.45) 14.02 10.57 14,603 0.91 2.25 4512/31/17 14.02 0.28 1.58 1.86 (0.39) (1.24) (1.63) 14.25 13.59 14,758 0.91 1.95 3712/31/18 14.25 0.30 (0.92) (0.62) (0.35) (0.70) (1.05) 12.58 (4.65) 11,106 0.92 2.11 22

SA PGI Asset Allocation Portfolio Class 312/31/14 16.12 0.35 0.81 1.16 (0.37) (0.46) (0.83) 16.45 7.23 56,298 1.00 2.12 2912/31/15 16.45 0.32 (0.66) (0.34) (0.45) (1.71) (2.16) 13.95 (1.99) 53,784 1.00 2.00 2712/31/16 13.95 0.30 1.13 1.43 (0.39) (1.05) (1.44) 13.94 10.53 57,917 1.00 2.15 4512/31/17 13.94 0.27 1.55 1.82 (0.37) (1.24) (1.61) 14.15 13.43 64,824 1.01 1.85 3712/31/18 14.15 0.28 (0.91) (0.63) (0.34) (0.70) (1.04) 12.48 (4.75) 57,614 1.02 2.00 22


been lower for each period presented. Total return includes expense reductions.(3) Excludes expense reductions. If these expense reductions had been applied, the ratio of expenses to average net assets would have been lower and the ratio of net

investment income (loss) to average net assets would have been higher by the following:

Portfolio 12/31/14 12/31/15 12/31/16 12/31/17 12/31/18

SA PGI Asset Allocation Class 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00% 0.00% 0.00% 0.00% 0.00%SA PGI Asset Allocation Class 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00 0.00 0.00 0.00 0.00SA PGI Asset Allocation Class 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00 0.00 0.00 0.00 0.00


Anchor Series Trust


Periodended

Net AssetValue

beginningof period

Netinvestment

income(loss)(1)


gain (loss)on

investments



investmentincome


investments

Totaldividends

anddistributions


TotalReturn(2)

Net Assetsend of

period (000’s)

Ratio ofexpenses

to averagenet assets(3)



net assets(3)

Portfolioturnover

rate

SA Wellington Capital Appreciation Portfolio Class 112/31/14 $49.24 $(0.06) $ 7.41 $ 7.35 $— $(9.21) $(9.21) $47.38 15.26% $668,565 0.74% (0.12)% 91%12/31/15 47.38 (0.05) 3.84 3.79 — (8.36) (8.36) 42.81 8.72(4) 730,504 0.74 (0.11) 6612/31/16 42.81 (0.09) 0.93 0.84 — (5.50) (5.50) 38.15 1.98 589,734 0.74 (0.23) 9912/31/17 38.15 0.02 12.31 12.33 — (3.72) (3.72) 46.76 32.78 656,955 0.74 0.05 7712/31/18 46.76 (0.11) 0.27 0.16 — (6.62) (6.62) 40.30 (0.75) 706,136 0.74 (0.23) 91

SA Wellington Capital Appreciation Portfolio Class 212/31/14 48.33 (0.13) 7.26 7.13 — (9.21) (9.21) 46.25 15.08 56,610 0.89 (0.27) 9112/31/15 46.25 (0.12) 3.74 3.62 — (8.36) (8.36) 41.51 8.56(4) 51,769 0.89 (0.26) 6612/31/16 41.51 (0.15) 0.91 0.76 — (5.50) (5.50) 36.77 1.85 45,012 0.89 (0.38) 9912/31/17 36.77 (0.05) 11.85 11.80 — (3.72) (3.72) 44.85 32.57 50,028 0.89 (0.11) 7712/31/18 44.85 (0.19) 0.30 0.11 — (6.62) (6.62) 38.34 (0.90) 42,600 0.89 (0.39) 91

SA Wellington Capital Appreciation Portfolio Class 312/31/14 47.74 (0.18) 7.17 6.99 — (9.21) (9.21) 45.52 14.96 635,020 0.99 (0.37) 9112/31/15 45.52 (0.16) 3.67 3.51 — (8.36) (8.36) 40.67 8.45(4) 614,697 0.99 (0.36) 6612/31/16 40.67 (0.18) 0.88 0.70 — (5.50) (5.50) 35.87 1.73 580,733 0.99 (0.49) 9912/31/17 35.87 (0.09) 11.56 11.47 — (3.72) (3.72) 43.62 32.46 643,066 0.99 (0.21) 7712/31/18 43.62 (0.23) 0.31 0.08 — (6.62) (6.62) 37.08 (1.00) 549,342 0.99 (0.49) 91


been lower for each period presented. Total return includes expense reductions.(3) Excludes expense reductions. If these expense reductions had been applied, the ratio of expenses to average net assets would have been lower and the ratio of net


Portfolio 12/31/14 12/31/15 12/31/16 12/31/17 12/31/18

SA Wellington Capital Appreciation Class 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00% 0.00% 0.00% 0.00% 0.00%SA Wellington Capital Appreciation Class 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00 0.00 0.00 0.00 0.00SA Wellington Capital Appreciation Class 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00 0.00 0.00 0.00 0.00

(4) The Portfolio’s performance was increased by 0.07% for Class 1, Class 2 and Class 3, from a reimbursement by an affiliate.


Anchor Series Trust


Periodended

Net AssetValue

beginningof period

Netinvestment

income(loss)(1)


gain (loss)on

investments



investmentincome


investments

Distributionsfrom netreturn ofcapital

Totaldividends

anddistributions


TotalReturn(2)

Net Assetsend of

period (000’s)

Ratio ofexpenses

to averagenet assets(3)(5)



netassets(3)(5)

Portfolioturnover

rate

SA BlackRock Multi-Asset Income Portfolio Class 112/31/14 $7.52 $ 0.05 $ 0.68 $ 0.73 $(0.08) $— $— $(0.08) $8.17 9.68% $22,167 1.10% 0.67% 88%12/31/15 8.17 0.25 (0.61) (0.36) (0.06) (1.06) — (1.12) 6.69 (4.45) 18,720 0.60 3.27 15212/31/16 6.69 0.20 0.22 0.42 (0.23) (0.63) — (0.86) 6.25 6.51 17,581 0.58 3.00 5012/31/17 6.25 0.19 0.21 0.40 (0.14) — — (0.14) 6.51 6.34 16,572 0.58 2.97 1112/31/18 6.51 0.23 (0.46) (0.23) (0.32) (0.03) (0.01) (0.36) 5.92 (3.73) 14,330 0.58 3.50 13

SA BlackRock Multi-Asset Income Portfolio Class 312/31/14 7.50 0.03 0.68 0.71 (0.06) — — (0.06) 8.15 9.47 127 1.35 0.42 8812/31/15 8.15 0.24 (0.62) (0.38) (0.05) (1.06) — (1.11) 6.66 (4.76) 204 0.84 3.25 15212/31/16 6.66 0.19 0.21 0.40 (0.23) (0.63) — (0.86) 6.20 6.20 4.691 0.83 3.37 5012/31/17 6.20 0.18 0.20 0.38 (0.13) — — (0.13) 6.45 6.20 18,136 0.83 2.99 1112/31/18 6.45 0.21 (0.46) (0.25) (0.30) (0.03) (0.01) (0.34) 5.86 (4.02) 33,306 0.83 3.46 13

SA Wellington Strategic Multi-Asset Portfolio Class 112/31/14 9.52 0.05 0.41 0.46 (0.04) (1.34) — (1.38) 8.60 5.04 21,067 1.42 0.54 9612/31/15 8.60 0.06 0.03 0.09 (0.27) (0.83) — (1.10) 7.59 1.13 18,887 1.20 0.75 8212/31/16 7.59 0.07 0.06 0.13 (0.14) (0.56) — (0.70) 7.02 1.85 17,015 1.08(7) 0.94 8712/31/17 7.02 0.07 1.07 1.14 (0.02) — — (0.02) 8.14 16.26 18,244 0.86 0.93 11712/31/18 8.14 0.05 (0.65) (0.60) (0.10) (0.31) — (0.41) 7.13 (7.49) 15,202 0.86 0.61 83

SA Wellington Strategic Multi-Asset Portfolio Class 309/26/16(6) -12/31/16 7.09 (0.01) (0.07) (0.08) — — — — 7.01 (1.13)(8) 471 1.11(4)(7) (0.33)(4) 8712/31/17 7.01 0.03 1.10 1.13 (0.02) — — (0.02) 8.12 16.08 13,231 1.11 0.43 11712/31/18 8.12 0.03 (0.66) (0.63) (0.08) (0.31) — (0.39) 7.10 (7.81) 30,078 1.11 0.38 83


been lower for each period presented. Total return includes expense reimbursements (recoupments) and expense reductions.(3) Excludes expense reductions. If these expense reductions had been applied, the ratio of expenses to average net assets would have been lower and the ratio of net


Portfolio 12/31/14 12/31/15 12/31/16 12/31/17 12/31/18

SA BlackRock Multi-Asset Income Class 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00% 0.00% —% —% —%SA BlackRock Multi-Asset Income Class 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00 0.00 — — —SA Wellington Strategic Multi-Asset Class 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.00 0.00 0.00 0.00 0.00SA Wellington Strategic Multi-Asset Class 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — 0.00(4) 0.00 0.00

(4) Annualized(5) Net of the following expense reimbursements/fee waivers (based on average net assets) (See Note 3):

Portfolio 12/31/14 12/31/15 12/31/16 12/31/17 12/31/18

SA BlackRock Multi-Asset Income Class 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.12% 1.03% 0.85% 0.80% 0.67%SA BlackRock Multi-Asset Income Class 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.16 1.03 0.83 0.81 0.67SA Wellington Strategic Multi-Asset Class 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.28 0.55 1.00 0.86 0.60SA Wellington Strategic Multi-Asset Class 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — 2.76(4) 0.86 0.58

(6) Commencement of operations.(7) Excludes a one time reimbursement the Portfolio received for custody expenses paid in the prior years. If the reimbursement had been applied the ratio of expenses

to average net assets would have been 1.03% and 1.05% for Class 1 and Class 3 respectively.(8) Total return is not annualized.


Anchor Series Trust

The following documents contain more information about the Portfolios’ investments and are available free of charge upon request:

• Annual and Semi-annual Reports contain financial statements, performance data and information on portfolio holdings.The annual report also contains a written analysis of market conditions and investment strategies that significantly affecteda Portfolio’s performance for the most recently completed fiscal year.

• Statement of Additional Information (SAI) contains additional information about the Portfolios’ policies, investmentrestrictions and business structure. This Prospectus incorporates the SAI by reference.

The Trust’s prospectus, SAI and semi-annual and annual reports are available at www.aig.com/getprospectus or online through theinternet websites of the life insurance companies offering the Portfolios, including the SAI, as investment options. You may obtaincopies of these documents or ask questions about the Portfolios at no charge by calling (800) 445-7862 or by writing the Trust atP.O. Box 15570, Amarillo, Texas 79105-5570.

Reports and other information about the Portfolios, including the SAI, are available on the EDGAR Database on the Securities andExchange Commission’s website at http://www.sec.gov and copies of this information may be obtained upon payment of a duplicatingfee by electronic request at the following e-mail address: [email protected].

You should rely only on the information contained in this Prospectus. No one is authorized to provide you with any differentinformation.

The Trust’s Investment Company ActFile No: 811-3836

FOR MORE INFORMATION

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