SUNAMERICA INCOME FUNDS
Supplement to the Prospectus dated May 9, 1994
The third sentence of the first paragraph under the section
entitled "Federal Securities Fund" on page 8 of the Prospectus
has been restated as follows:
Among the U.S. government securities that the Fund may
purchase are mortgage-backed securities of Ginnie Mae,
Freddie Mac and Fannie Mae.
The third and fifth sentences of the second paragraph
under the section entitled "Federal Securities Fund"
on page 8 of the Prospectus have been restated as follows:
The Fund also may invest in unrated securities determined by
the Adviser to be of equivalent quality.
The Adviser will monitor continuously the rating and
creditworthiness of securities held by the Fund.
The second paragraph under the section entitled
"Management of the Trust - The Distributor" on page 14 of the
Prospectus has been replaced with the following:
The Distributor, at its expense, may from time-to-time,
provide additional compensation to broker-dealers (including in
some instances, exclusively to Royal Alliance Associates, Inc.
and/or SunAmerica Securities, Inc., affiliates of the
Distributor) in connection with sales of shares of the Fund.
Such compensation may include (i) full reallowance of the
front-end sales charge on Class A shares; (ii) additional
compensation with respect to the sale of Class B shares; or (iii)
financial assistance to broker-dealers in connection with
conferences, sales or training programs for their employees,
seminars for the public, advertising campaigns regarding one or
more of the Funds, and/or other broker-dealer-sponsored special
events. In some instances, this compensation will be made
available only to certain broker-dealers whose representatives
have sold a significant amount of shares of the Fund.
Compensation may also include payment for travel expenses,
including lodging, incurred in connection with trips taken by
invited registered representatives and members of their families
to locations within or outside of the United States for meetings
or seminars of a business nature. In addition, the following
types of non-cash compensation may be offered through sales
contests: (i) vacation trips, including the provision of travel
arrangements and lodging at luxury resorts in exotic locations or
travel mileage on major air carriers; (ii) tickets for
entertainment events (such as concerts or sporting events); or
(iii) merchandise (such as clothing, trophies, clocks, pens or
other electronic equipment). Broker-dealers may not use sales of
the Fund's shares to qualify for this compensation to the extent
receipt of such compensation may be prohibited by the laws of any
state or any self-regulatory agency, such as, for example, the
National Association of Securities Dealers, Inc. Dealers who
receive bonuses or other incentives may be deemed to be
underwriters under the Securities Act of 1933.
May 9, 1995
