a comparison of investment options available with polaris ... · a comparison of investment options...

For financial professional use only. Not to be used with the public.

POLARIS FOR THOSE WHO WANT MORE®

Investment Options

AT A GLANCE

A comparison of Investment Options available with Polaris Variable Annuities featuring Polaris Income Plus DailySM

A Polaris Variable Annuity with the Polaris Income Plus Daily income protection feature offers you and your clients MORE investment flexibility with a choice of investment options. Build a customized allocation using any combination of certain portfolios, including asset allocation portfolios, actively managed funds-of-funds and index funds-of-funds.

What’s more, with Polaris Income Plus Daily, you and your clients remain in control of the investment allocation and have the flexibility to change the mix of investments at any time by using the available investment options described. Participation in quarterly automatic asset rebalancing is also required. Initial and additional investments can be allocated as follows:

You can use this guide to help gain a greater understanding of the asset allocation portfolios, actively managed funds-of-funds, volatility control portfolios and index funds-of-funds available with Polaris Income Plus Daily. The investment options described cross the target equity spectrum, allowing you and your clients to choose investment options tailored to their investment goals and tolerance for risk:

* Target equity exposure is 55% ** Target equity exposure is 65%

Polaris Income Plus Daily is available at contract issue in select Polaris Variable Annuities. Depending on the Polaris product purchased, this feature is either optional or standard. Regardless of whether the feature is optional or standard, additional fees, age restrictions, investment requirements and limitations apply. Please see a prospectus for complete details.

The investment requirements may reduce the need to rely on an income protection guarantee because they allocate your clients’ investment across asset classes and potentially limit exposure to market volatility.

10% Secure Value Account—an interest-earning fixed account with a one-year term

90%Build a Customized Allocation using one or a combination of available portfolios— including the portfolios described in this brochure

40% 50% 60% 80% 90% 70%

Managed Allocation Balanced

SA BlackRock Multi-Asset Income

American Funds Asset Allocation SAST

Managed Allocation Growth

SA Index Allocation 90/10

Managed Allocation Moderate*

Asset AllocationAsset Allocation

Diversified Growth

BalancedSA Index Allocation

80/20

SA MFS® Total Return

Managed AllocationModerate Growth**

Strategic Multi-Asset**


Target Equity Exposure for Available Investment OptionsPrior to required 10% allocation to Secure Value Account

MORE Flexibility & Control with a Choice of Portfolios


Designed to help provide clients with a “smoother” ride

Today’s volatile market can make clients uneasy when it comes to investing. Portfolios that employ a volatility control approach seek to manage volatility within the portfolio, reduce the incidence of extreme outcomes (including the probability of large losses or gains), and preserve long-term return potential. As a result, a volatility control approach may provide more consistent performance with less risk from market downturns. However, the risk management strategies used by these portfolios could limit the upside participation in strong, increasing markets as compared to a portfolio without such a strategy.

Polaris Variable Annuities now offer clients MORE Investment Choice & MORE Investment Flexibility with a total of 8 different Volatility Control Portfolios from many of the industry’s most respected names in money management. These portfolios offer clients the benefits of professional money management for long-term growth potential, the opportunity for diversification, and risk management. The approaches to volatility management, as well as investment style and underlying investments, vary by portfolio. These portfolios may also be used to help meet the investment requirements associated with an income protection feature, if elected.

Volatility Control Mechanism

• SunAmerica Dynamic Allocation Portfolio®

• SunAmerica Dynamic Strategy Portfolio®

VOLATILITY TARGET

A Volatility Target aims to maintain a stable level of volatility within the portfolio on a daily basis

• SA T. Rowe Price VCP Balanced Portfolio

• VCP Total Return Balanced® Portfolio

• SA BlackRock VCP Global Multi Asset Portfolio

• SA Schroders VCP Global Allocation Portfolio

• VCP Managed Asset Allocation SAST Portfolio®

• VCP Value® Portfolio

RANGE-BOUNDVOLATILITY TARGET

VOLATILITY CAP

A Range-Bound Volatility Target aims to maintain a stable level of volatility within the portfolio without taking action if within a pre-specified range

A Volatility Cap aims to reduce volatility when a portfolio’s volatility exceeds a specific level

Volatility Control Portfolios Another Option for Investing

1

40% 50% 60% 80% 90% 70%

Managed Allocation Balanced

SA BlackRock Multi-Asset Income

American Funds Asset Allocation SAST

Managed Allocation Growth


Managed Allocation Moderate*

Asset AllocationAsset Allocation

Diversified Growth

BalancedSA Index Allocation

80/20

SA MFS® Total Return

Managed AllocationModerate Growth**

Strategic Multi-Asset**



2 For financial professional use only. Not to be used with the public.

1 Capital Research and Management Company is the investment manager of the American Funds.2 As of most recent fiscal year-end for the applicable trust. Certain portfolio expenses reflect a contractual or non-contractual waiver or reimbursement.

Fees may differ depending upon the Polaris product selected.

American Funds Asset Allocation SAST Asset Allocation Asset Allocation:

Diversified Growth

Managed ByCapital Research and

Management CompanyEdge Asset Management

CompanyPutnam Investment Management, LLC

Fund Story

The Portfolio takes a strategic approach to diversification with Capital Research’s best ideas across its multiple portfolio manager structure and offers a solution that benefits a balanced investor

Asset allocation Portfolio designed to maximize return at a given level of risk

A broad, globally diversified growth Portfolio with targeted equity and fixed-income allocations across multiple asset classes

Highlights

• Seeks high total return consistent with preservation of capital over the long term by investing in a diversified portfolio of equities, debt, and money market securities

• The Portfolio will vary its mix of equity securities, debt securities, and money market instruments with market conditions and the investment adviser’s assessment of their relative attractiveness as investment opportunities

• Employs a three step-investment process, seeking to add value through long-term strategic allocation, tactical moves, and security-level analysis

• The Portfolio is diversified across 28 distinct asset classes

• Putnam’s approach seeks efficient returns through active security selection and flexible allocations to U.S. and international equity and fixed income

• Putnam’s tenured Global Asset Allocation team has been managing asset allocation strategies since 1994

Benchmark (See page 9 for Index Definitions)

60%: S&P 500® Index40%: Barclays U.S. Aggregate

Bond Index


Bond Index

60%:15%:5%:

15%:

5%:

Russell 3000 IndexMSCI EAFE IndexMSCI Emerging Markets Index Barclays U.S. Aggregate Bond IndexJ.P. Morgan Developed Market High Yield Index

Fees2 0.85% 1.02% 1.23%

Asset Allocation Portfolios

1

MORE Investment Choice for a Customized Allocation

3

Balanced SA MFS® Total Return SA BlackRock Multi-Asset Income Strategic Multi-Asset

J.P. Morgan Investment Management Inc.

Massachusetts Financial Services Company

BlackRock Investment Management, LLC

Wellington Management Company LLP

The Portfolio provides diversification by combining three of J.P. Morgan’s highest conviction managers within a 60% equity/40% fixed income asset allocation profile, and seeks to minimize volatility by bringing together low correlated underlying strategies

A traditional, high quality balanced portfolio comprised of stocks and bonds

“Go-anywhere” income solution offering broad and balanced income exposure

Asset allocation Portfolio that seeks to exploit inefficiencies across the global equity and fixed income markets and achieve a high long-term total return

• Seeks conservation of principal and capital appreciation by investing in a balanced portfolio of stocks and bonds

• Managed by Multi-Asset Solutions team, which has unique access to J.P. Morgan’s best ideas and has been serving clients over 40 years

• Conservative balanced portfolio maintains an investment mix of stocks and bonds, which historically has been allocated at approximately 60% stocks and 40% bonds

• Follows a conservative approach investing in value stocks and a well-diversified mix of generally investment grade bonds

• Seeks the best income opportunities around the world and across asset classes, carefully balancing the trade-offs between yield and risk

• The strategy takes a tactical, risk approach to income and actively manages volatility with the objective of limiting the Portfolio’s risk level to that of the benchmark

• Wellington’s portfolio management teams combine a macro view of the global markets with specialized bottom-up security selection to identify the highest-conviction investment opportunities across the globe

• A diversified global Portfolio constructed with the goal to produce attractive total returns in a variety of market environments


Bond Index


Bond Index

50%: MSCI World Index50%: Barclays U.S. Aggregate

Bond Index

65%:30%:

5%:

MSCI ACWI IndexCitigroup World Government Bond Index (U.S. $ Hedged, ex Switzerland) Citigroup 3-Month Treasury Bill Index

0.98% 0.94% 1.17% 1.05%

While certain Polaris portfolios may be similar to other funds managed by the same investment adviser, this does not mean that a portfolio’s investment results will be comparable to the investment results of other similar funds, including other funds with the same investment adviser. There may be material differences between similar funds and the Polaris portfolios, such as fees and expenses, portfolio management, portfolio holdings and the timing of cash flows. The portfolios’ investment results will likely differ, and may be higher or lower than the investment results of other similar funds.See back for additional risks and important information.


4

SA T. Rowe Price VCP Balanced Portfolio

VCP Total Return Balanced Portfolio

SA BlackRock VCP Global Multi Asset

Portfolio

Managed ByT. Rowe Price Associates, Inc. Pacific Investment Management

Company LLCBlackRock Investment

Management, LLC

Fund Story

A broadly diversified balanced Portfolio, combining the value added from T. Rowe’s expertise in portfolio design, asset allocation and active management, while managing Portfolio volatility

An asset allocation Portfolio that combines Lipper award-winning equity and fixed income strategies from PIMCO, with active volatility management 3

BlackRock’s global tactical asset allocation strategy actively controls volatility to create a more consistent investment experience

Highlights

• Strategy uses a similar investment profile as the T. Rowe Price Balanced Fund (RPBAX), managed by the firm since 1991

• Leverages T. Rowe Price’s global research platform and wide range of actively managed strategies

• Leverages the fixed income and equity investment expertise of PIMCO

• Based on 2 award-winning strategies (StocksPLUS® has won Lipper Best Group Large Equity Over 3 Years Award multiple times and Total Return Bond has won Fixed-Income Fund Manager of the Year multiple times)

• Tactically adjusts asset allocation based on macro insights developed using fundamental analysis and quantitative tools

• Robust risk management, leveraging the firm’s proprietary platform that covers over 2,200 risk factors and 4 million distinct instruments

Underlying Investments

T. Rowe Price Balanced strategy StocksPLUS strategy/Total Return Bond strategy

Global, tactical asset allocation strategy

Active Volatility Management

• Employs a volatility target (10%, within a specified range of 9% to 13%)

• Decreases net equity exposure in high volatility environments

• Increases net equity exposure in low volatility environments

• May be slower reacting if within the volatility range

• Employs a volatility target (10%), within a specified range

• Decreases net equity exposure in high volatility environments

• Increases net equity exposure in low volatility environments

• May be slower reacting if within the volatility range

•Employs a volatility cap (10%)• Decreases net equity exposure

in high volatility environments• Relatively quick to de-risk

versus re-risk

Benchmark (See page 9 for Index Definitions)

45.5%: S&P 500® Index19.5%: MSCI EAFE Index35.0%: Barclays U.S. Aggregate

Bond Index

40%: S&P 500® Index15%: MSCI EAFE Index 5%: Russell 2000 Index40%: Barclays U.S. Aggregate

Bond Index

27.5%: S&P 500® Index27.5%: MSCI EAFE Index45.0%: Barclays U.S. 7-10 Year

Treasury Index

Equity Range

Long-term Target: Maximum: Minimum:

65%80%20%


60%80%25%


55%70%10%

Fees2 1.17% 1.16% 1.17%

3 Lipper Fund Awards, Best Group Large Equity Over 3 Years Award (Winner, four years in a row: 2010, 2011, 2012 and 2013); Fixed-Income Fund Manager of the Year (2012, 2013). These awards were given to PIMCO in regards to management of certain of its mutual funds. These awards were not given in recognition of the VCP Total Return Balanced Portfolio. The VCP Total Return Balanced Portfolio will have different results.


RANGE-BOUND VOLATILITY TARGET VOLATILITY CAP

VolatilityControl Portfolios

5

4 Past performance is not a guarantee of future results.5 Based on combining underlying fund which can go up to 80% equity and typical managed risk component allocation of 5-10%6 Based on underlying strategy which does not have a hard equity maximum, but typically equity has not exceeded 70% historically

SA Schroders VCP Global Allocation Portfolio

VCP Managed Asset Allocation SAST Portfolio

VCP ValuePortfolio

Schroder Investment Management North America Inc.

Capital Research and Management Company; Milliman Financial Risk

Management LLC (volatility control)

Invesco Advisers, Inc.

Schroders’ global asset allocation strategy actively invests across markets and asset classes with the aim to provide growth potential and control volatility

An asset allocation Portfolio utilizing American Funds differentiated investment approach that has a strong track record of over 25 years, with a volatility control overlay4

Invesco’s all-weather, value-oriented strategy investing across various asset classes, including convertible bonds, with a volatility control overlay

• Differentiated research strategy focused on analyzing the expected risk/return across multiple asset classes

• Global, thematic and tactical asset mix aimed to deliver growth-oriented return

• Volatility fund tied to American Funds Asset Allocation; one of the oldest and largest variable annuity balanced funds

• Uses best ideas of multiple American Funds Portfolio Managers

• Strategy uses a similar investment profile as the Invesco Equity & Income Fund (ACEIX), managed by the firm since 1960

• Generally invests at least 60% of assets in income-producing equity securities

• Provides exposure to convertible bonds

Core, multi-asset portfolio American Funds Asset Allocation strategy Invesco Equity and Income strategy

•Employs a volatility cap (10%)• Decreases net equity exposure in high

volatility environments• Relatively quick to de-risk versus re-risk

• Employs a volatility cap• Decreases net equity exposure in high


• Employs a volatility cap (10%)• Decreases net equity exposure in high


60%: MSCI World Unhedged Index40%: Barclays U.S. Corporate Index

60%: S&P 500® Index40%: Barclays U.S. Aggregate Bond Index



60%70%10%


60%75%5

20%


60%70%6

15%

1.17% 1.18% 1.18%

1

VOLATILITY CAP


6 For financial professional use only. Not to be used with the public.

SunAmerica Dynamic Allocation Portfolio

SunAmerica Dynamic Strategy Portfolio

Managed BySunAmerica Asset Management, LLC

(Fund-of-Funds);AllianceBernstein L.P. (volatility control)

SunAmerica Asset Management, LLC (Fund-of-Funds);

AllianceBernstein L.P. (volatility control)

Fund StoryA diversified fund-of-funds portfolio with a core/growth orientation; volatility control overlay managed by AllianceBernstein

A diversified fund-of-funds portfolio with a value orientation; volatility control overlay managed by AllianceBernstein

Highlights

• Leverages the strength of the Polaris investment platform

• Portfolio invests in a diversified mix of professionally managed portfolios, automatically providing exposure to a wide variety of asset classes and investment styles

•Tilts towards core/growth• Can be 100% equity• Volatility management more responsive

• Leverages the strength of the Polaris investment platform

• Portfolio invests in a diversified mix of professionally managed portfolios, automatically providing exposure to a wide variety of asset classes and investment styles

•Tilts towards value• Can be 100% equity• Volatility management more responsive

Underlying Investments Well-diversified fund-of-funds, more core/growth oriented

Well-diversified fund-of-funds, more value oriented

Active Volatility Management

•Employs a volatility target• Decreases net equity exposure in high

volatility environments• Increases net equity exposure in low

volatility environments• Quick to de-risk and re-risk

•Employs a volatility target• Decreases net equity exposure in high

volatility environments• Increases net equity exposure in low

volatility environments• Quick to de-risk and re-risk

Benchmark



Equity Range


60-65%100%25%


60-65%100%25%

Fees2 1.05% 1.06%

VOLATILITY TARGET

VolatilityControl Portfolios

While Volatility Control Portfolios employ risk management processes that seek to manage volatility within the Portfolio, volatility may result from rapid or dramatic price swings. A 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 a Portfolio for any particular period of time may be materially higher or lower than the target level. Efforts to manage a Portfolio’s volatility could limit a Portfolio’s 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. There is no assurance that a Portfolio’s goal will be met or that investment decisions made in seeking to manage a Portfolio’s volatility will achieve the desired result.

7For financial professional use only. Not to be used with the public.

7 Target allocation equity exposures for MAPs and SA Index Allocator Portfolios do not include the 10% required allocation to Secure Value Account.8 Total annual portfolio operating expenses for Class 3 shares of the SA Index Allocation portfolios range from 0.81% to 0.83% after a contractual fee

waiver and/or expense reimbursement; 1.07% to 1.40% before any waivers and/or expense reimbursements. The waiver is in effect through April 30, 2018. See the portfolios’ prospectus for more information. Fees may differ depending upon the Polaris product selected.

See page 9 for Index Definitions

Managed Allocation Portfolios ("MAPs") SA Index Allocation Portfolios

Actively managed funds-of-funds that offer investment style and investment manager diversification. Portfolios are managed by SunAmerica Asset Management, LLC

Index funds-of-funds, managed by SunAmerica Asset Management, LLC (SAAMCo), designed for those who want lower cost, passive investment options8

• Risk based set of allocation portfolios with target equity allocations ranging from 40% to 80%. The Portfolios provide broad diversification, including exposure to U.S. multi-cap equities, international equities, and bonds

• There are four MAPS offered, each with different target allocations. The MAPs are Managed Allocation Balanced, Managed Allocation Moderate, Managed Allocation Moderate Growth, and Managed Allocation Growth

• Managing asset allocation portfolios since 2002 and index portfolios since 2009, SAAMCo’s asset allocation process focuses on complementing systematic with subjective analysis of factors that drive the markets

• The portfolios offer long-term strategic asset allocation in the range of 60% to 90% equity exposure and 10% to 40% fixed income exposure

• Underlying fund investments in each Portfolio may include: SA Large Cap Index Portfolio; SA Mid Cap Index Portfolio; SA Small Cap Index Portfolio; SA International Index Portfolio; and SA Fixed Income Index Portfolio

Benchmark

Depending on Portfolio:

30%-57%: Russell 3000 Index

10%-23%: MSCI EAFE Index

20%-60%: Barclays U.S. Aggregate Bond Index

Depending on Portfolio:

42%-57%: S&P 500® Index

5%-8%: S&P MidCap 400 Index

3%-5%: Russell 2000 Index

10%-20%: MSCI EAFE Index

10%-40%: Bloomberg Barclays US Government/ Credit Bond Index

Fees2

Range: 1.13% - 1.24% Range: 0.81% - 0.83%8

Balanced

40%/60%

Moderate

55%/45%

Moderate Growth

65%/35%

Growth

80%/20%

SA Index Allocation

60/40

SA Index Allocation

80/20

SA Index Allocation

90/10

Allocation Targets: Stocks/Fixed Income7

Asset Allocation Strategies

8

Fixed Income and Money Market Portfolios

Portfolio Name Portfolio Inception Date Fees

Corporate Bond Federated Investment Management Company 0.79%

Global Bond Goldman Sachs Asset Management International 0.95%

Goldman Sachs VIT Government Money Market Fund Goldman Sachs Asset Management, L.P. 0.43%

Government and Quality Bond Wellington Management Company LLP 0.82%

Real Return Wellington Management Company LLP 0.83%

SA JPMorgan MFS® Core Bond Portfolio JPMorgan Investment Management Inc./ Massachusetts Financial Services Company

0.79%

Ultra Short Bond Portfolio Dimensional Fund Advisors LP 0.78%

Polaris Variable Annuities offer you the benefits of professional money management to help diversify your client’s investment and maximize long-term growth potential.

Additional information9 American Funds SAST Portfolios and the VCP Managed Asset Allocation SAST Portfolio invest in the American Funds Insurance Series, which has

the same investment manager (Capital Research and Management Company) as American Funds. Money managers and portfolios are subject to change. Please see prospectus.

9

Experienced Money Managers


9

Index Definitions Barclays U.S. Aggregate Bond Index: Covers the U.S. investment grade fixed rate bond market with index components for government and corporate, mortgage pass-through and asset-backed securities.

Bloomberg Barclays US Government/Credit Bond Index: Broad-based flagship benchmark that measures the non-securitized component of the US Aggregate Index. It includes investment grade, US dollar-denominated, fixed-rate Treasuries, government-related and corporate securities.

Citigroup World Government Bond Index: (U.S. $ hedged, ex-Switzerland) an equal weighted, total return benchmark designed to cover 20+ investment grade country bond markets. The eleven countries of the European Monetary Union count as one geographic region and, in aggregate, they receive one share of this equal-weighted index.

Citigroup 3-Month Treasury Bill Index: An unmanaged index representing monthly return equivalents of yield averages of the last 3 month Treasury Bill issues.

J.P. Morgan Developed Market High Yield Index: Designed to mirror the investable universe of the U.S. dollar developed high yield corporate debt market, including domestic and international issues. International issues are comprised of only developed markets.

MSCI ACWI Index: A free-float adjusted market capitalization index that is designed to measure equity performance in the global developed and emerging markets and in 49 global and developed markets. MSCI uses an arbitrary sampling of stocks and aims to capture 85% of the total market capitalization at both the country and industry levels.

MSCI EAFE Index: Free float-adjusted market capitalization index that is designed to measure developed market equity performance, excluding the U.S. & Canada.

MSCI Emerging Markets Index: A free float-adjusted market capitalization index that is designed to measure equity market performance of emerging markets. The MSCI Emerging Markets Index consists of the following 23 emerging market country indexes: Brazil, Chile, China, Colombia, Czech Republic, Egypt, Greece, Hungary, India, Indonesia, Korea, Malaysia, Mexico, Peru, Philippines, Poland, Qatar, Russia, South Africa, Taiwan, Thailand, Turkey and United Arab Emirates.

MSCI World Index: Free float-adjusted market capitalization index that is designed to measure global developed market equity performance, representative of the market structure of 22 developed market countries in North America, Europe, and the Asia/Pacific Region.

Russell 2000 Index: Measures the performance of approximately 2,000 small-cap companies in the Russell 3000 Index.

Russell 3000 Index: Measures the performance of the small-cap segment of the U.S. equity universe. It includes approximately 3000 of the smallest securities based on a combination of their market cap.

S&P MidCap 400 Index: A barometer for the U.S. mid-cap equities sector which includes stocks with total market capitalization that ranges from roughly $750 million to $3 billion dollars.

S&P 500® Index: Representative sample of leading companies in key industries that reflect the U.S. stock market.

Additional Information About the PortfoliosWhile diversification and asset allocation are both proven investment strategies, they cannot guarantee greater or more consistent returns over time and they cannot protect against loss.

SunAmerica Dynamic Allocation Portfolio and SunAmerica Dynamic Strategy Portfolio — For each Portfolio, the overall level of exposure to the equity market may be increased or decreased through investments made in both the fund-of-funds component and the overlay component. The overlay component may also invest in other derivative instruments, as well as exchange-traded funds (ETFs), to manage the Portfolio’s net equity exposure. The portfolio operating expenses for a fund-of-funds are typically higher than those of a traditional portfolio because investors pay the expenses of that portfolio and indirectly pay a proportionate share of the expenses of the underlying portfolios.

SA BlackRock VCP Global Multi Asset Portfolio — The Portfolio’s volatility management strategy may adjust the composition of the Portfolio’s riskier assets, such as equity and below investment grade fixed income securities, and/or may allocate assets away from riskier assets into cash or short-term fixed income securities. In selecting equity and fixed income investments, judgments that evaluate the attractiveness of countries and sectors may prove incorrect. The value of the Portfolio’s foreign investments may fluctuate due to changes in currency exchange rates.

SA Schroders VCP Global Allocation Portfolio — The Portfolio may make substantial use of derivatives. As a result, performance could be primarily dependent on securities the Portfolio does not own. In selecting equity and fixed income investments, judgments that evaluate the attractiveness of countries and sectors may prove incorrect. The value of the Portfolio’s foreign investments may fluctuate due to changes in currency exchange rates.

SA T. Rowe Price VCP Balanced Portfolio — The Portfolio’s approach for stabilizing volatility may not produce the desired results. The value of the Portfolio’s foreign investments may fluctuate due to changes in currency exchange rates.

VCP Managed Asset Allocation SAST Portfolio — The VCP Managed Asset Allocation SAST Portfolio (“Feeder Fund”) does not invest directly in individual securities; instead it invests in shares of the American Funds Insurance Series® Managed Risk Asset AllocationSM Fund (the “Master Fund”). In turn, the Master Fund invests in shares of an underlying fund, the American Funds Insurance Series® Asset Allocation Fund (the “Underlying Fund”), hedge instruments (primarily exchange-traded futures) and cash or cash equivalents. Investing in a Feeder Fund will result in higher fees and expenses than investing in a portfolio that invests directly in securities. Please see the prospectus for more information regarding the master-feeder fund structure. Hedge assets include cash and liquid transparent financial futures contracts that are tailored to the underlying holdings in the American Funds Insurance Series Asset Allocation Fund. Futures contracts on major equity indices, U.S. Treasury bonds, and currencies are typically used. Futures contracts are used only to reduce risk relative to a long-equity portfolio. In situations of extreme market volatility, the exchange-traded futures could potentially reduce the Master Fund’s net economic exposure to equity securities to 0%. The Portfolio is subject to the risk that the strategy that will be used to stabilize the volatility of the Master Fund and reduce its downside exposure may not produce the desired result. In addition, the use of the risk-management overlay may cause the Master Fund’s return to lag that of the underlying fund in certain rising market conditions. Milliman Financial Risk Management LLC is not an affiliate or member of Capital Research and Management Company or The Capital Group Companies.

VCP Total Return Balanced Portfolio — Portfolio may invest a significant portion of its assets in derivatives; as a result, performance could be primarily dependent on securities the Portfolio does not own. The Portfolio will generally achieve equity exposure by investing in derivatives rather than through direct investments in equity securities. The Portfolio may also invest directly in equity securities and ETFs to achieve its goal.

(continued on the back cover)For financial professional use only. Not to be used with the public.


1-800-445-7862aig.com/annuities

M5671BRO.3 (2/17)

Additional Information About the Portfolios (continued)VCP Value Portfolio — The Portfolio’s target volatility level is not a total return performance target. Total return performance is not expected to be within any specified target range. The Portfolio’s ability to achieve current income may be adversely affected if dividends on the Portfolio’s equity securities are reduced or discontinued or if prevailing interest rates on the Portfolio’s debt securities decline. Although the Portfolio seeks investments in undervalued companies, judgments that a particular security is undervalued may prove incorrect.

American Funds Asset Allocation SAST Portfolio: The American Funds SunAmerica Series Trust (“SAST”) portfolios (“Feeder Funds”) do not invest directly in individual securities; instead they invest all of their assets in corresponding funds (“Master Funds”) of the American Funds Insurance Series. Investing in a Feeder Fund will result in higher fees and expenses than investing directly in a Master Fund. Please see the prospectus and Statement of Additional Information for more information regarding the master-feeder fund structure.

Managed Allocation Portfolios: Each Managed Allocation Portfolio is structured as a fund-of-funds, which means that it pursues its investment goal by investing in a combination of underlying portfolios rather than investing directly in stocks, bonds, cash and other investments.

SA Index Allocation Portfolios: Investment in an SA Index Allocation Portfolio is subject to market risk including loss of principal. Each of these Portfolio’s risks will directly correspond to the risks of the underlying portfolios in which it invests including, but not limited to: risks associated with investments in large-cap companies, which tend to be less volatile than companies with smaller market capitalizations but whose value may not rise as much as the value of portfolios that emphasize smaller companies; risks of investing in small- and medium-sized companies, which are usually more volatile and entail greater risks than securities of large companies; additional or heightened risk associated with investments in foreign markets; interest rate risk; and credit risk. The SA Index Allocation Portfolios are each subject to the risk that the selection of the underlying portfolios and the allocation and reallocation of the Portfolio’s assets among the various asset classes and market sectors may not produce the desired result. Refer to the portfolio’s prospectus for more information.

Managed Allocation Portfolios/SA Index Allocation Portfolios/SunAmerica Dynamic Portfolios: The portfolio operating expenses for a fund-of-funds are typically higher than those of a traditional portfolio because clients pay the expenses of that portfolio and indirectly pay a proportionate share of the expenses of the underlying portfolios.

Money managers, with the exception of SunAmerica Asset Management, LLC, are not affiliated with the issuing insurance companies or American International Group, Inc. (AIG).

Important Risks — There is no assurance that a Portfolio’s investment process will achieve its specific investment objectives. Portfolios that invest in stocks and bonds are subject to risk, including stock market and interest rate fluctuations. Portfolios that invest in bonds are subject to changes in their value when prevailing interest rates change. Portfolios that invest in non-U.S. stocks and bonds, including emerging market investments, are subject to additional risks such as political and social instability, differing securities regulations and accounting standards, limited public information, plus special risks that may include foreign taxation, currency risks, risks associated with possible differences in financial standards, and other monetary and political risks associated with future political and economic developments. Investments that concentrate on one economic sector or geographic region are generally subject to greater volatility than more diverse investments. Portfolios that invest in technology companies are subject to additional risks and may be affected by short product cycles, aggressive pricing, competition from new market entrants and obsolescence of existing technology. Portfolio returns may be considerably more volatile than a portfolio that does not invest in technology companies. Portfolios that invest in small and mid-size company stocks are generally riskier and more volatile than portfolios that invest in larger, more established companies. Portfolios that invest in high-yield bonds may be subject to greater price swings than portfolios that invest in higher-rated bonds. The payment of interest and principal is not assured. Portfolios that invest in real estate investment trusts (REITs) involve risks such as refinancing, economic conditions in the real estate industry, changes in property values, dependency on real estate management, and other risks associated with a concentration in one sector or geographic region. Investments in securities related to gold and other precious metals and minerals are speculative and impacted by a host of worldwide economic, financial and political factors. Money market instruments generally offer stability and income, but an investment in these securities, like investments in other portfolios, is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. An investment in the Goldman Sachs VIT Government Money Market Fund is subject to potential loss of principal; however, the portfolio seeks to maintain a net asset value of $1.

Annuities are long-term investments designed for retirement. Early withdrawals may be subject to withdrawal charges. Partial withdrawals may reduce benefits available under the contract, as well as the amount available upon a full surrender. Withdrawals of taxable amounts are subject to ordinary income tax and if taken prior to age 59½, an additional 10% federal tax may apply. An investment in Polaris involves investment risk, including possible loss of principal. The contract, when redeemed, may be worth more or less than the total amount invested. Products and features may vary by state and may not be available in all states. The purchase of Polaris is not required for, and is not a term of, the provision of any banking service or activity.

Variable annuities are sold by prospectus only. The prospectus contains the investment objectives, risks, fees, charges, expenses and other information regarding the contract and underlying funds, which should be considered carefully before investing. A prospectus may be obtained by calling 1-800-445-7862. Investors should read the prospectus carefully before investing.Polaris Variable Annuities are issued by American General Life Insurance Company (AGL) except in New York, where they are issued by The United States Life Insurance Company in the City of New York (US Life). The Elite Series of Polaris Variable Annuities is issued by The Variable Annuity Life Insurance Company (VALIC). Distributed by AIG Capital Services, Inc. (ACS), Member FINRA. AGL, US Life, VALIC and ACS are members of American International Group, Inc. (AIG).

Not FDIC or NCUA/NCUSIF Insured

May Lose Value • No Bank or Credit Union Guarantee Not a Deposit • Not Insured by any Federal Government Agency

a comparison of investment options available with polaris ... · a comparison of investment options...

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