SunAmerica Income Funds
Supplement to the Prospectus dated July 27, 1998
On August 19, 1998, SunAmerica Inc. ("SunAmerica") entered into an
agreement with American International Group, Inc. ("AIG"). Under
the terms of the agreement, SunAmerica Inc. will merge with and
into AIG, and consequently, SunAmerica Asset Management Corp.
("SAAMCo"), which acts as investment adviser of SunAmerica Income
Funds (the "Trust"), will become a subsidiary of AIG. SAAMCo will
not change its name and no organizational changes are currently
planned which would affect services provided to the Trust. As a
result of the merger, Trust shareholders of record as of October
30, 1998 are being asked to approve a new investment advisory and
management agreement with SAAMCo, to take effect upon consummation
of the merger, as well as certain other matters. The new agreement
will be identical to the current agreement in all respects except
for its effective date and termination date and will have no effect
on the fees or expenses payable by the Trust or its shareholders.
The merger transaction is expected to be consummated in late 1998
or early 1999.
Dated: November 3, 1998
