Strategy. The Portfolio seeks to achieve its goals by investing under normal conditions approximately 80% of its assets in a combination of other mutual funds (the Underlying Portfolios) (the Fund-of-Funds Component) and 20% of its assets in a combination of equity index and fixed income futures, currency forwards and equity index put options selected through the use of a VCP (Volatility Control Portfolio) risk management process designed to manage the volatility level of the Portfolios annual returns (the Overlay Component). SunAmerica, the Portfolios adviser, is responsible for managing the Fund-of-Funds Component. T. Rowe Price Associates, Inc. (T. Rowe Price), the Portfolios subadviser, is responsible for managing the Overlay Component. Under normal circumstances, the Fund-of-Funds Component will allocate approximately 70% of its … Show more… The Portfolio seeks to achieve its goals by investing under normal conditions approximately 80% of its assets in a combination of other mutual funds (the Underlying Portfolios) (the Fund-of-Funds Component) and 20% of its assets in a combination of equity index and fixed income futures, currency forwards and equity index put options selected through the use of a VCP (Volatility Control Portfolio) risk management process designed to manage the volatility level of the Portfolios annual returns (the Overlay Component). SunAmerica, the Portfolios adviser, is responsible for managing the Fund-of-Funds Component. T. Rowe Price Associates, Inc. (T. Rowe Price), the Portfolios subadviser, is responsible for managing the Overlay Component. Under normal circumstances, the Fund-of-Funds Component will allocate approximately 70% of its assets (with a range of 60% to 80%) to Underlying Portfolios investing primarily in equity securities (the Underlying Equity Portfolios) and 30% of its assets (with a range of 20% to 40%) to Underlying Portfolios investing primarily in fixed income securities (Underlying Fixed Income Portfolios). The Underlying Portfolios will primarily include other funds in the Trust but may also include other funds advised by SunAmerica. The Underlying Equity Portfolios include, among others, funds that invest in domestic and international equity securities of small, medium and/or large capitalization companies and the Underlying Fixed Income Portfolios include, among others, funds that invest in domestic government and corporate bonds. The Underlying Portfolios will be limited to index funds, which are passively managed to track the performance of designated indices. The Fund-of-Funds Component may invest a significant portion of its assets in any single Underlying Portfolio. The following chart sets forth the Fund-of-Funds Components target allocations set by SunAmerica on January 31, 2025 to the Underlying Equity Portfolios and Underlying Fixed Income Portfolios. The Fund-of-Funds Components actual allocations may vary from these projections and will fluctuate from time to time due to, among other things, market conditions and changes made by SunAmerica to the target allocations. Underlying Portfolio % of Total Portfolio Equity 70.00% SA Large Cap Index Portfolio 45.40% SA Mid Cap Index Portfolio 7.60% SA Small Cap Index Portfolio 5.00% SA International Index Portfolio 12.00% Fixed Income 30.00% SA Fixed Income Intermediate Index Portfolio 15.00% SA Fixed Income Index Portfolio 15.00% The Underlying Portfolio selection is made based on the Fund-of-Funds Components 70%/30% asset allocation strategy discussed above. SunAmerica may adjust the Fund-of-Funds Components allocation to the Underlying Portfolios from time to time as it deems necessary, including based on market conditions or other factors. SunAmerica intends to rebalance the Fund-of-Funds Component on an ongoing basis using cash flows; however, it reserves the right to rebalance the Fund-of-Funds Component through exchanges at any time. The Overlay Component will utilize a systematic volatility control process to manage the risk of the Portfolio. The Portfolio targets a volatility level of 11% within a range of 10% to 14%. Volatility is a statistical measure of the magnitude of changes in the Portfolios returns over time without regard to the direction of those changes. T. Rowe Price expects to use a variety of equity index and fixed income futures and currency forwards as the principal tools to implement this volatility management strategy. The Portfolios overall net equity exposure may be reduced to 20% or increased to 100% as a result of the volatility management strategy. In addition, T. Rowe Price will seek to reduce exposure to certain downside risks by purchasing equity index put options that aim to reduce the Portfolios exposure to certain severe and unanticipated market events that could significantly detract from returns. Volatility is not a measure of investment performance. Volatility may result from rapid and dramatic price swings. Higher volatility generally indicates higher risk and is often reflected by frequent and sometimes significant movements up and down in value. The Portfolio could experience high levels of volatility in both rising and falling markets. Due to market conditions or other factors, the actual or realized volatility of the Portfolio for any particular period of time may be materially higher or lower than the target level. The Portfolios target volatility level of 11% is not a total return performance target. The Portfolio does not expect its total return performance to be within any specified target range. It is possible for the Portfolio to maintain its volatility at or under its target volatility level while having negative performance returns. Efforts to manage the Portfolios volatility could limit the Portfolios gains in rising markets, may expose the Portfolio to costs to which it would otherwise not have been exposed, and if unsuccessful may result in substantial losses. The Portfolio may also invest its assets in money market securities, which may include, but are not limited to, U.S. government securities, U.S. government agency securities, short-term fixed income securities, bank deposits, repurchase agreements, money market mutual fund shares, and cash and cash equivalents. The Portfolios money market securities holdings may serve as collateral for the Portfolios derivative positions, earn income for the Portfolio and be used for cash management purposes. The subadviser may engage in frequent and active trading of portfolio securities. Show less