SUNAMERICA INCOME FUNDS
Supplement to the Statement of Additional Information dated June 1, 1999
The section entitled "Waiver of Sales Charges with Respect to Certain
Purchases of Class A Shares" on Page B-63 of the Statement of Additional
Information should be replaced in its entirety with the following:
Waiver of Sales Charges with Respect to Certain Purchases of Class A Shares.
To the extent that sales are made for personal investment purposes, the sales
charge is waived as to Class A shares purchased by current or retired
officers, directors, and other full-time employees of the Adviser and its
affiliates, as well as members of the selling group and family members of the
foregoing. In addition, the sales charge is waived with respect to shares
purchased by certain qualified retirement plans or employee benefit plans
(other than IRAs), which are sponsored or administered by the Adviser or an
affiliate thereof. Such plans may include certain employee benefit plans
qualified under Sections 401 or 457 of the Code, or employee benefit plans
created pursuant to Section 403(b) of the Code and sponsored by nonprofit
organizations defined under Section 501(c)(3) of the Code (collectively, the
"Plans"). A Plan will qualify for purchases at net asset value provided that
(a) the initial amount invested in one or more of the Funds (or in combination
with the shares of other SunAmerica Mutual Funds) is at least $750,000, (b)
the sponsor signs a $750,000 Letter of Intent, (c) such shares are purchased
by an employer-sponsored plan with at least 75 eligible employees, or (d) the
purchases are by trustees or other fiduciaries for certain employer-sponsored
plans, the trustee, fiduciary or administrator has an agreement with the
Distributor with respect to such purchases, and all such transactions for the
plan are executed through a single omnibus account. Further, the sales charge
is waived with respect to shares purchased by "wrap accounts" for the benefit
of clients of broker-dealers, financial institutions or financial planners or
registered investment advisers adhering to the following standards established
by the Distributor: (i) the broker-dealer, financial institution or financial
planner charges its client(s) an advisory fee based on the assets under
management on an annual basis, and (ii) such broker-dealer, financial
institution or financial planner does not advertise that shares of the Funds
may be purchased by clients at net asset value. Shares purchased under this
waiver may not be resold except to the Fund. Shares are offered at net asset
value to the foregoing persons because of anticipated economies in sales
effort and sales related expenses. Reductions in sales charges apply to
purchases or shares by a "single person" including an individual; members of a
family unit comprising husband, wife and minor children; or a trustee or other
fiduciary purchasing for a single fiduciary account. Complete details
concerning how an investor may purchase shares at reduced sales charges may be
obtained by contacting the Distributor.
Dated: October 7, 1999
