SUNAMERICA INCOME FUNDS
Supplement to the Prospectus dated July 28, 2000
The following items reflect changes to the Class B shares of each Fund:
The Maximum Sales Charge (Load), applicable to Class B shares of each Fund, as
set forth on pages eight and nine of the Prospectus, has been changed to 5.00%.
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References to the cost of investing in Class B shares of each Fund, as indicated
in the section entitled "EXAMPLE" on page 10 of the Prospectus, should be
replaced with the following:
If you redeemed your investment at the end of the periods indicated:
1 Year 3 Years 5 Years 10 Years
U.S. GOVERNMENT FUND
(Class B shares)* ............. $721 $982 $1,369 $2,347
GNMA FUND
(Class B shares)* ............. 706 936 1,293 2,192
DIVERSIFIED INCOME FUND
(Class B shares)* ............. 720 979 1,364 2,339
HIGH INCOME FUND
(Class B shares)* ............. 718 973 1,354 2,326
TAX EXEMPT INSURED FUND
(Class B shares)* ............. 695 903 1,237 2,080
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If you did not redeem your shares:
1 Year 3 Years 5 Years 10 Years
U.S. GOVERNMENT FUND
(Class B shares)* ............. $221 $682 $1,169 $2,347
GNMA FUND
(Class B shares)* ............. 206 636 1,093 2,192
DIVERSIFIED INCOME FUND
(Class B shares)* ............. 220 679 1,164 2,339
HIGH INCOME FUND
(Class B shares)* ............. 218 673 1,154 2,326
TAX EXEMPT INSURED FUND
(Class B shares)* ............. 195 603 1,037 2,080
* Class B shares generally convert to Class A shares approximately eight years
after purchase as described in the section entitled "SHAREHOLDER ACCOUNT
INFORMATION" on page 14. Therefore, expense information for years 9 and 10 is
the same for both Class A and B shares.
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Under the section entitled "SELECTING A SHARE CLASS" on page 11 of the
Prospectus, the fourth paragraph under the section of the Class B column should
be replaced in its entirety with the following:
Automatic conversion to Class A shares approximately eight years after
purchase.
*********
Under the section "CALCULATION OF SALES CHARGES" on page 11 of the Prospectus,
the third paragraph should be replaced in its entirety with the following:
CLASS B shares are offered at their net asset value per share, without
any initial sales charge. However, there is a CDSC on shares you sell
within six years of buying them. The longer the time between the
purchase and the sale of shares, the lower the rate of the CDSC:
2
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Class B deferred charges:
Years after purchase CDSC on shares being sold
1st year 5.00%
2nd year 4.00%
3rd year or 4th year 3.00%
5th year 2.00%
6th year 1.00%
7th year and thereafter None
Dated: December 6, 2000
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