-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, JireogMZpunqdyZ7La1rfxCiS4TNmTwEGWeQZLYPaEj7eEgcw14SFZ/RA7FO2UiL iJG5mWaBYi6f7cdRPdrPbg== 0001193125-05-047774.txt : 20050311 0001193125-05-047774.hdr.sgml : 20050311 20050311151948 ACCESSION NUMBER: 0001193125-05-047774 CONFORMED SUBMISSION TYPE: N-CSR PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 20041231 FILED AS OF DATE: 20050311 DATE AS OF CHANGE: 20050311 EFFECTIVENESS DATE: 20050311 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SUNAMERICA MONEY MARKET FUNDS INC CENTRAL INDEX KEY: 0000724129 IRS NUMBER: 133234943 STATE OF INCORPORATION: NY FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-CSR SEC ACT: 1940 Act SEC FILE NUMBER: 811-03807 FILM NUMBER: 05675337 BUSINESS ADDRESS: STREET 1: 733 THIRD AVENUE CITY: NEW YORK STATE: NY ZIP: 10017 BUSINESS PHONE: 2125515189 MAIL ADDRESS: STREET 1: 733 THIRD AVENUE STREET 2: THIRD FLOOR CITY: NEW YORK STATE: NY ZIP: 10017 FORMER COMPANY: FORMER CONFORMED NAME: SUNAMERICA MONEY MARKET SECURITIES INC DATE OF NAME CHANGE: 19920703 FORMER COMPANY: FORMER CONFORMED NAME: INTEGRATED MONEY MARKET SECURITIES INC DATE OF NAME CHANGE: 19900302 N-CSR 1 dncsr.txt SUNAMERICA MONEY MARKET FUNDS, INC. UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM N-CSR CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act file number 811-3807 SunAmerica Money Market Funds, Inc. (Exact name of registrant as specified in charter) Harborside Financial Center, 3200 Plaza 5 Jersey City, NJ 07311 (Address of principal executive offices) (Zip code) Vincent M. Marra Senior Vice President & Chief Operating Officer AIG SunAmerica Asset Management Corp. Harborside Financial Center, 3200 Plaza 5 Jersey City, NJ 07311 (Name and address of agent for service) Registrant's telephone number, including area code: (201) 324-6464 Date of fiscal year end: December 31 Date of reporting period: December 31, 2004 Item 1. Reports to Stockholders SunAmerica Money Market Funds, Inc., Annual Report at December 31, 2004. [GRAPHIC] SunAmerica THE RETIREMENT SPECIALIST Money Market Funds 2004 ANNUAL REPORT [LOGO] AIG SunAmerica Mutual Funds December 31, 2004 ANNUAL REPORT SUNAMERICA MONEY MARKET FUNDS SunAmerica Money Market (SMAXX) SunAmerica Municipal Money Market (NMAXX) Table of Contents PRESIDENT'S LETTER..................................... 1 MONEY MARKET FUNDS REVIEW.............................. 2 EXPENSE EXAMPLE........................................ 4 STATEMENT OF ASSETS AND LIABILITIES.................... 6 STATEMENT OF OPERATIONS................................ 7 STATEMENT OF CHANGES IN NET ASSETS..................... 8 FINANCIAL HIGHLIGHTS................................... 9 PORTFOLIO OF INVESTMENTS............................... 12 NOTES TO FINANCIAL STATEMENTS.......................... 18 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM 25 DIRECTORS AND OFFICERS INFORMATION..................... 26 December 31, 2004 ANNUAL REPORT President's Letter Dear Shareholder, We are pleased to present you with the annual report for the SunAmerica Money Market Fund and the SunAmerica Municipal Money Market Fund. Over the past twelve months these funds have been most notably affected by a change in the direction of interest rates. This long anticipated increase was precipitated by two notable changes in economic data: improvement in domestic employment numbers and a spike in inflation. On June 30th, 2004, the Federal Open Market Committee boosted the federal funds rate 25 basis points, the first time the Fed had raised rates since May 2000. This was followed by four additional 25 basis point hikes in August, September, November and December, leading to a total 125 basis point rise in the fed funds rate by the end of 2004. In response, both the SunAmerica Money Market Fund and the SunAmerica Municipal Money Market Fund have reduced the weighted average maturity of securities held in these Funds. This strategy has allowed the funds to capture higher yields as they became available. Throughout the period, the Funds also continued to invest in the highest quality money market instruments, in keeping with their chief objective of principal preservation. We thank you for your continued investment in our Funds. Sincerely, /s/ Peter A. Harbeck Peter A. Harbeck, President AIG SunAmerica Asset Management Corp. - -------- Past performance is no guarantee of future results. SunAmerica Money Market Fund Brian Wiese, Portfolio Manager AIG SunAmerica Asset Management Corp. When 2004 opened, the federal funds rate was at a multi-decade low of 1.00%. At the time most market participants believed the Federal Reserve Bank would remain on hold, and keep the fed funds rate at 1.00% for the foreseeable future, or at least until it was clear that strong output growth would be accompanied by robust job growth as well. The employment picture improved dramatically in March, and set the tone for short-term interest rates for the remainder of the year. Expectations were drastically changed as both the timing and scope of Fed tightening was re-priced into the market. The Federal Open Market Committee embarked on its current tightening cycle at the end of June, when it raised interest rates by 25 basis points, the first increase in four years. Policy makers have followed up the initial tightening with additional moves of 25 basis points at each meeting, resulting in a total of 125 basis points of tightening for the year. At year-end, the fed funds rate had increased to 2.25%. Early in the second quarter we began to anticipate rising short-term interest rates and structured the Fund accordingly. By reducing the Fund's weighted average maturity, we were better positioned to take advantage of rising short-term rates. By the close of the reporting period the SunAmerica Money Market Fund's weighted average maturity was slightly shorter than the Donoghue Average.* In addition, the Fund held a significant position in asset-backed commercial paper, which generally offer slightly higher yields than traditional commercial paper of similar credit quality. To further protect the Fund from interest rate volatility, we also purchased floating rate notes. - -------- *Donoghue Average is an average of major money market fund yields that is issued weekly in many newspapers for 7 and 30-day yields. Donoghue also tracks the maturities of the securities in the portfolios. Portfolios with short maturities are an indication that fund managers have the opinion that interest rates are going to rise. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the Fund. Past performance is no guarantee of future results. 2 SunAmerica Municipal Money Market Fund Hutch Bryan, Portfolio Manager AIG Global Investment Corp. Geopolitical events, a recovery in the economy and an increase in short term rates all contributed to the performance of the bond market over the course of the past year. The low rate environment experienced in 2003 carried over into the first half of 2004 for the municipal money market. The SunAmerica Municipal Money Market Fund's key weekly index, the Bond Market Association Municipal Swap (BMA) Index, hovered around the 1.00% mark for the first half of the year. In the second half of the year, the BMA Index began to rise as the large three-month municipal reinvestment period of June, July, and August faded and an improving economy made increases in the fed funds rate a reality.* In the last week of December the BMA Index reset at a 1.99%, which was 1.04% above where it had begun the year. On June 30, the Federal Open Market Committee instituted a 25 basis point hike in the fed funds rate -- the first increase since May 2000. This marked the beginning of an incremental rate raising that led to an overall 125 basis point rise in the fed fund rate by year-end. As the S&P 500 recovered from its August lows and the stock market rallied through the second half of the year, short-term municipal yields rose. During this period the Fund saw redemptions consistent with a general trend of investors removing assets from money market and bond funds and allocating to equities. Despite this trend, municipal money market funds as a class saw assets rise to a record high of $319 billion during 2004 according to the December Municipal Advisor report from Municipal Market Advisors. During the year the Fund purchased fixed rate municipal notes that, provided a greater level of yield and income than available from Variable Rate Demand Note (VRDN) securities. Our best example of a relative value purchase was the investment in California Revenue Anticipation Warrants. We purchased these during February at a spread of approximately 50 basis points or .5% cheaper in yield to comparable structure California notes. We saw an opportunity to purchase the notes before the vote on Proposition 58 on March 2/nd/ where the public endorsed Governor Arnold Schwarzenegger's proposal to sell $15 billion in economic recovery bonds. The passing of that measure significantly improved California's short-term liquidity by removing any doubt regarding payment of these bonds and other short-term obligations of the state, and a week later the bonds were priced equivalent to other comparable structured notes. Our purchases during the year tended toward well-recognized, liquid names obtained from large issuances such as the Michigan State General Obligation Notes. We first purchased this in January and another piece of the same name in September to replace the maturing obligation. Other names purchased were California State Revenue Anticipation Notes maturing in June of 2005, Philadelphia Tax and Revenue Anticipation Notes also maturing in June of 2005, and Illinois Finance Authority Revolving Fund bonds maturing in March of 2005. By year-end our overall allocation between fixed rate and variable rate securities had shifted from roughly 24% fixed coupon to just fewer than 13%. The mix of variable rate securities in the Fund shifted slightly from higher weights in healthcare, lease bonds and industrial development to a mix of more industrial development, power and housing bonds. These sectors still represent a more positive spread over the BMA index relative to others. - -------- *The Bond Market Association Municipal Swap (BMA) Index, produced by Municipal Market Data (MMD), is a 7-day high-grade market index comprised of tax-exempt variable rate demand obligations (VRDOs) from MMD's extensive database. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the Fund. Past performance is no guarantee of future results. 3 SunAmerica Money Market Funds EXPENSE EXAMPLE -- December 31, 2004 -- (unaudited) Disclosure of Portfolio Expenses in Shareholder Reports As a shareholder of a Fund in the SunAmerica Money Market Funds, Inc. (the "Corporation"), you may incur two types of costs: (1) transaction costs, including sales charges on purchase payments, contingent deferred sales charges and (2) ongoing costs, including management fees; distribution and service fees; and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds. The Example is based on an investment of $1,000 invested at July 1, 2004 and held until December 31, 2004. Actual Expenses The "Actual" section of the table provides information about actual account values and actual expenses. You may use the information in these columns, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the column under the heading entitled "Expenses Paid During the Six Months" to estimate the expenses you paid on your account during this period. For shareholder accounts in classes other than Class I, the "Expenses Paid During the Six Months" column does not include small account fees that may be charged if your account balance is below $500 ($250 for retirement plan accounts). In addition, the "Expenses Paid During the Six Months" column does not include administrative fees that may apply to qualified retirement plan accounts. See the Funds' prospectus and/or the retirement plan document for full description of these fees. Had these fees been included, the "Expenses Paid During the Six Months" column would have been higher and the "Ending Account Value" column would have been lower. Hypothetical Example for Comparison Purposes The "Hypothetical" section of the table provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Portfolios of other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. For shareholder accounts in classes other than Class I, the "Expenses Paid During the Six Months" column does not include small account fees that may be charged if your account balance is below $500 ($250 for retirement plan accounts). In addition, the "Expenses Paid During the Six Months" column does not include administrative fees that may apply to qualified retirement plan accounts. See the Fund's prospectus and/or the retirement plan document for full description of these fees. Had these fees been included, the "Expenses Paid During the Six Months" column would have been higher and the "Ending Account Value" column would have been lower. Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, including sales charges on purchase payments, contingent deferred sales charges, small account fees and administrative fees, if applicable to your account. Please refer to your Prospectus and/or qualified retirement plan document for more information. Therefore, the "Hypothetical" example is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transaction costs and other fees were included, your costs would have been higher. 4 SunAmerica Money Market Funds EXPENSE EXAMPLE -- December 31, 2004 -- (unaudited) (continued)
Actual Hypothetical ------------------------------------------------ ---------------------------------------------------- Ending Account Value Ending Account Using Actual Expenses Paid Value using Expenses Paid Beginning Return at During the Beginning a Hypothetical 5% During the Account Value December 31, Six Months Ended Account Value Assumed Return at Six Months Ended Fund at July 1, 2004 2004 December 31, 2004* at July 1, 2004 December 31, 2004 December 31, 2004* - ---- --------------- ------------- ------------------ --------------- ----------------- ------------------ Money Market Class A..... $1,000.00 $1,003.86 $4.53 $1,000.00 $1,020.61 $4.57 Class B #... $1,000.00 $1,000.52 $7.84 $1,000.00 $1,017.29 $7.91 Class C #... $1,000.00 $1,000.55 $7.79 $1,000.00 $1,017.34 $7.86 Class I #... $1,000.00 $1,004.21 $4.03 $1,000.00 $1,021.11 $4.06 Municipal Money Market Class A #... $1,000.00 $1,002.51 $4.49 $1,000.00 $1,020.72 $4.53 Class B #... $1,000.00 $1,000.51 $5.75 $1,000.00 $1,019.46 $5.80 Class C #... $1,000.00 $1,000.51 $6.50 $1,000.00 $1,018.70 $6.56
Expense Ratio as of December 31, Fund 2004* - ---- ------------ Money Market Class A..... 0.90% Class B #... 1.56% Class C #... 1.55% Class I #... 0.80% Municipal Money Market Class A #... 0.89% Class B #... 1.14% Class C #... 1.29%
- -------- * Expenses are equal to the Fund's annualized expense ratio multiplied by the average account value over the period, multiplied by the 184 days divided by 366 days. These ratios do not reflect transaction costs, including sales charges on purchase payments, contingent deferred sales charges, small account fees and administrative fees, if applicable to your account. Please refer to your Prospectus and/or qualified retirement plan document for more information. # During the stated period, the investment adviser and distributor either waived a portion or all of the fees and assumed a portion of or all expenses for the Funds. As a result, if these fees and expenses had not been waived, the "Actual/Hypothetical Ending Account Value" would have been lower and the "Actual/Hypothetical Expenses Paid During the Period" and the "Expense Ratios" would have been higher. 5 SunAmerica Money Market Funds STATEMENT OF ASSETS AND LIABILITIES -- December 31, 2004
Money Market Municipal Money Fund Market Fund -------------- --------------- ASSETS: Short-term investment securities, at value (unaffiliated)*........ $1,641,674,505 $ 98,764,682 Repurchase agreements (cost equals market value).................. 31,046,000 -- -------------- -------------- Total Investments............................................... 1,672,720,505 98,764,682 -------------- -------------- Cash.............................................................. 487 -- Receivable for: Fund shares sold................................................ 31,069,853 1,887,625 Dividends and interest.......................................... 1,575,352 328,631 Prepaid expenses and other assets................................. 14,066 741 Due from investment adviser for expense reimbursements/fee waivers 2,189 589 Due from distributor for fee waivers.............................. -- 194 -------------- -------------- Total Assets.................................................... 1,705,382,452 100,982,462 -------------- -------------- LIABILITIES: Payable for: Fund shares redeemed............................................ 2,057,449 2,770,071 Investment advisory and management fees......................... 657,482 29,154 Distribution and service maintenance fees....................... 250,846 12,953 Transfer agent fees and expenses................................ 347,941 22,662 Directors' fees and expenses.................................... 238,269 5,985 Other accrued expenses.......................................... 160,019 47,629 -------------- -------------- Total Liabilities............................................... 3,712,006 2,888,454 -------------- -------------- Net Assets..................................................... $1,701,670,446 $ 98,094,008 ============== ============== NET ASSETS REPRESENTED BY: Common Stock, $.001 par value (10 billion shares authorized)...... $ 1,701,653 $ 98,093 Paid-in capital................................................... 1,699,869,927 97,995,334 -------------- -------------- 1,701,571,580 98,093,427 Accumulated undistributed net investment income (loss)............ 98,866 581 -------------- -------------- Net Assets........................................................ $1,701,670,446 $ 98,094,008 ============== ============== Class A: Net assets........................................................ $1,630,353,392 $ 97,373,881 Shares outstanding................................................ 1,630,337,106 97,373,174 Net asset value, offering and redemption price per share (excluding any applicable contingent deferred sales charge)...... $ 1.00 $ 1.00 ============== ============== Class B: Net assets........................................................ $ 42,437,477 $ 496,879 Shares outstanding ............................................... 42,436,095 496,819 Net asset value, offering and redemption price per share (excluding any applicable contingent deferred sales charge)...... $ 1.00 $ 1.00 ============== ============== Class C+: Net assets........................................................ $ 16,984,756 $ 223,248 Shares outstanding ............................................... 16,985,074 223,260 Net asset value, offering and redemption price per share (excluding any applicable contingent deferred sales charge)...... $ 1.00 $ 1.00 ============== ============== Class I: Net assets........................................................ $ 11,894,821 $ -- Shares outstanding................................................ 11,894,822 -- Net asset value, offering and redemption price per share.......... $ 1.00 $ -- ============== ============== *Amortized cost of short-term investment securities (unaffiliated) $1,641,674,505 $ 98,764,682 ============== ==============
- -------- + Effective February 23, 2004, Class II shares were redesignated as Class C shares See Notes to Financial Statements 6 SunAmerica Money Market Funds STATEMENT OF OPERATIONS -- For the year ended December 31, 2004
Money Market Municipal Money Fund Market Fund ------------ --------------- INVESTMENT INCOME: Interest (unaffiliated)....................... $23,866,717 $ 1,296,918 Dividends (unaffiliated)...................... -- 859 ----------- ----------- Total investment income.................... 23,866,717 1,297,777 ----------- ----------- EXPENSES: Investment advisory and management fees...... 7,910,184 373,773 Distribution and service maintenance fees: Class A.................................... 2,450,175 156,182 Class B.................................... 434,616 22,121 Class C+................................... 198,623 1,918 Transfer agent fees and expenses: Class A.................................... 3,644,696 235,389 Class B.................................... 126,953 5,637 Class C+................................... 54,361 2,357 Class I.................................... 32,250 -- Registration fees: Class A.................................... 387 18,242 Class B.................................... 9,347 9,213 Class C+................................... 9,572 9,849 Class I.................................... 9,055 -- Custodian fees............................... 278,689 56,628 Reports to shareholders...................... 595,246 14,185 Audit and tax fees........................... 37,947 39,183 Legal fees .................................. 44,431 6,986 Directors' fees and expenses................. 106,211 5,274 Other expenses............................... 48,923 9,344 ----------- ----------- Total expenses before fee waivers, expense reimbursements and custody credits................................... 15,991,666 966,281 Fees waived and expenses reimbursed by investment adviser and distributor (Note 3)........................................ (282,296) (31,784) Custody credits earned on cash balances.... (8,296) (3,628) ----------- ----------- Net expenses............................... 15,701,074 930,869 ----------- ----------- Net investment income (loss).................. 8,165,643 366,908 ----------- ----------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS.................... $ 8,165,643 $ 366,908 =========== ===========
- -------- + Effective February 23, 2004, Class II shares were redesignated as Class C shares See Notes to Financial Statements 7 SunAmerica Money Market Funds STATEMENT OF CHANGES IN NET ASSETS
Municipal Money Money Market Fund Market Fund ------------------------------ ------------------------------ For the For the For the For the year ended year ended year ended year ended December 31, December 31, December 31, December 31, 2004 2003 2004 2003 -------------- -------------- -------------- -------------- INCREASE (DECREASE) IN NET ASSETS: OPERATIONS: Net investment income (loss)................. $ 8,165,643 $ 5,654,971 $ 366,908 $ 293,449 -------------- -------------- -------------- -------------- Increase (decrease) in net assets resulting from operations............................. $ 8,165,643 $ 5,654,971 $ 366,908 $ 293,449 DISTRIBUTIONS TO SHAREHOLDERS FROM: Net investment income (Class A).............. (8,054,333) (5,587,357) (364,223) (288,875) Net investment income (Class B).............. (30,639) (17,891) (2,471) (3,816) Net investment income (Class C)+............. (14,024) (8,618) (214) (176) Net investment income (Class I).............. (66,647) (39,889) -- -- -------------- -------------- -------------- -------------- Total distributions to shareholders.......... (8,165,643) (5,653,755) (366,908) (292,867) -------------- -------------- -------------- -------------- Net increase (decrease) in net assets resulting from capital share transactions (Note 5).................................... (17,388,052) (137,050,057) (19,134,111) 25,292,765 -------------- -------------- -------------- -------------- Total increase (decrease) in net assets...... (17,388,052) (137,048,841) (19,134,111) 25,293,347 NET ASSETS: Beginning of period.......................... 1,719,058,498 1,856,107,339 117,228,119 91,934,772 -------------- -------------- -------------- -------------- End of period*............................... $1,701,670,446 $1,719,058,498 $ 98,094,008 $ 117,228,119 ============== ============== ============== ============== *Includes accumulated undistributed net investment income (loss).................... $ 98,866 $ 98,866 $ 581 $ 582 ============== ============== ============== ==============
- -------- + Effective February 23, 2004, Class II shares were redesignated as Class C shares See Notes to Financial Statements 8 SunAmerica Money Market Funds FINANCIAL HIGHLIGHTS
MONEY MARKET FUND ----------------- Ratio Net Net of net Asset Dividends Asset Net Assets Ratio of investment Value Net from net Value end of expenses income to beginning investment investment end of Total period to average average Period Ended of period income(1) income period Return(2) (000's) net assets net assets - -------------------- --------- ---------- ---------- ------ --------- ---------- ---------- ---------- Class A - - 12/31/00............ $1.000 $0.054 $(0.054) $1.000 5.57% $ 971,137 0.95% 5.47% 12/31/01............ 1.000 0.034 (0.034) 1.000 3.45 1,087,329 0.93 4.04 12/31/02............ 1.000 0.010 (0.010) 1.000 1.04(6) 1,751,812 0.90 0.99 12/31/03............ 1.000 0.003 (0.003) 1.000 0.32 1,644,603 0.88 0.32 12/31/04............ 1.000 0.005 (0.005) 1.000 0.50 1,630,353 0.90 0.49 Class B - - 12/31/00............ $1.000 $0.046 $(0.046) $1.000 4.72% $ 24,090 1.76%(4) 4.62%(4) 12/31/01............ 1.000 0.025 (0.025) 1.000 2.57 55,066 1.75(4) 3.76(4) 12/31/02............ 1.000 0.003 (0.003) 1.000 0.28(6) 64,815 1.64(4) 0.26(4) 12/31/03............ 1.000 0.000 0.000 1.000 0.03 44,529 1.18(4) 0.03(4) 12/31/04............ 1.000 0.001 (0.001) 1.000 0.07 42,437 1.32(4) 0.06(4) Class C+ - - 12/31/00............ $1.000 $0.046 $(0.046) $1.000 4.73% $ 11,012 1.75%(4) 4.67%(4) 12/31/01............ 1.000 0.026 (0.026) 1.000 2.63 33,644 1.69(4) 3.51(4) 12/31/02............ 1.000 0.003 (0.003) 1.000 0.27(6) 30,285 1.66(4) 0.26(4) 12/31/03............ 1.000 0.000 0.000 1.000 0.03 20,290 1.18(4) 0.03(4) 12/31/04............ 1.000 0.001 (0.001) 1.000 0.07 16,985 1.33(4) 0.06(4) Class I - - 11/16/01-12/31/01(3) $1.000 $0.002 $(0.002) $1.000 0.20% $ 8,336 0.80%(4)(5) 0.84%(4)(5) 12/31/02............ 1.000 0.011 (0.011) 1.000 1.13(6) 9,195 0.80(4) 1.12(4) 12/31/03............ 1.000 0.004 (0.004) 1.000 0.43 9,636 0.77(4) 0.43(4) 12/31/04............ 1.000 0.006 (0.006) 1.000 0.58 11,895 0.80(4) 0.59(4)
- -------- (1)Calculated based upon average shares outstanding. (2)Total return is not annualized and does not reflect sales load, but does include expense reimbursements. (3)Commencement of sales of respective class of shares (4)Net of the following expense reimbursements/waivers (based on average net assets):
12/31/00 12/31/01 12/31/02 12/31/03 12/31/04 -------- -------- -------- -------- -------- Class B. -- % -- % 0.04% 0.51% 0.39% Class C+ 0.18 0.05 0.04 0.53 0.39 Class I. -- 0.24 0.14 0.02 0.09
(5)Annualized (6)The total return for each class was increased by less than 0.01% from gains realized on the disposal of investments in violation of investment restrictions. + Effective February 23, 2004, Class II shares were redesignated as Class C shares See Notes to Financial Statements 9 SunAmerica Money Market Funds FINANCIAL HIGHLIGHTS
MUNICIPAL MONEY MARKET FUND --------------------------- Net Net Net Ratio of net Asset Dividends Asset Assets Ratio of investment Value Net from net Value end of expenses income to beginning investment investment end of Total period to average average Period Ended of period income(1) income period Return(2) (000's) net assets(5) net assets(5) - ----------------------- --------- ---------- ---------- ------ --------- ------- ------------- ------------- Class A ------- 10/31/00(6)............ $1.000 $0.030 $(0.030) $1.000 3.06% $ 4,452 0.97% 3.03% 10/31/01(6)............ 1.000 0.020 (0.020) 1.000 2.39 3,972 0.78 2.39 11/01/01-12/31/01(6)... 1.000 0.013 (0.013) 1.000 2.05 3,829 0.62(3) 1.71(3) 12/31/02............... 1.000 0.009 (0.009) 1.000 0.92 88,050 0.78 0.71 12/31/03............... 1.000 0.003 (0.003) 1.000 0.28 113,802 0.81 0.28 12/31/04............... 1.000 0.004 (0.004) 1.000 0.36 97,374 0.87 0.35 Class B - - 10/31/00(6)............ $1.000 $0.030 $(0.030) $1.000 2.48% $ 2,777 1.54% 2.44% 10/31/01(6)............ 1.000 0.020 (0.020) 1.000 2.39 2,613 0.78 2.38 11/01/01-12/31/01(6)... 1.000 0.008 (0.008) 1.000 1.97 2,618 1.13(3) 1.27(3) 12/31/02............... 1.000 0.002 (0.002) 1.000 0.24 3,714 1.39 0.16 12/31/03............... 1.000 0.001 (0.001) 1.000 0.10 3,168 0.98 0.11 12/31/04............... 1.000 0.001 (0.001) 1.000 0.10 497 1.02 0.10 Class C+ - - 08/10/00-10/31/00(4)(6) $1.000 $0.010 $(0.010) $1.000 0.71% $ 108 0.75%(3) 2.78%(3) 10/31/01(6)............ 1.000 0.020 (0.020) 1.000 2.40 136 0.78 2.33 11/01/01-12/31/01(6)... 1.000 0.008 (0.008) 1.000 1.97 195 1.15(3) 1.14(3) 12/31/02............... 1.000 0.002 (0.002) 1.000 0.24 170 1.39 0.19 12/31/03............... 1.000 0.001 (0.001) 1.000 0.10 258 1.00 0.11 12/31/04............... 1.000 0.001 (0.001) 1.000 0.10 223 1.18 0.10
- -------- (1)Calculated based upon average shares outstanding. (2)Total return is not annualized and does not reflect sales load, but does include expense reimbursements. (3)Annualized (4)Commencement of sales of respective class of shares (5)Net of the following expense reimbursements/waivers (based on average net assets):
10/31/00 10/31/01 12/31/01(3) 12/31/02 12/31/03 12/31/04 -------- -------- ----------- -------- -------- -------- Class A. 0.47% 1.18% 2.51% 0.20% 0.03% 0.00% Class B. 0.46 1.18 2.59 1.25 1.03 0.87 Class C+ 0.41(3) 1.18 7.84 9.68 7.45 4.20
(6)The financial information for the periods prior to November 16, 2001 reflects the financial information for the North American Municipal Money Market Fund. + Effective February 23, 2004, Class II shares were redesignated as Class C shares See Notes to Financial Statements 10 SunAmerica Money Market Fund PORTFOLIO PROFILE -- December 31, 2004 -- (unaudited) Industry Allocation* Government Agencies.............. 20.4% Finance.......................... 16.2 Trade and Term Receivables....... 16.1 Banking.......................... 11.5 Trade Receivables................ 10.9 Receivable Company............... 9.4 Securities Holding Company....... 7.6 Loan Receivables................. 3.8 Repurchase Agreements............ 1.8 Municipalities................... 0.6 ---- 98.3% ==== Weighted average days to maturity 31.7
Credit Quality Allocation @# Government........... 20.7% Repurchase Agreements 1.9 A-1.................. 77.4 ----- 100.0% =====
- -------- * Calculated as a percentage of net assets. @ Source: Standard and Poors # Calculated as a percentage of total debt issues. 11 SunAmerica Money Market Fund PORTFOLIO OF INVESTMENTS -- December 31, 2004
Principal Value Security Description Amount (Note 2) CERTIFICATES OF DEPOSIT -- 8.5% Citibank N.A. 2.06% due 01/25/05+.......................... $25,000,000 $ 25,000,000 First Tennessee Bank 2.27% due 01/28/05+......................... 20,000,000 20,000,000 2.33% due 01/18/05+......................... 25,000,000 25,000,000 HBOS Treasury Services 2.19% due 02/11/05+.......................... 25,000,000 25,000,000 Wells Fargo Bank N.A. 2.16% due 02/07/05.......................... 25,000,000 25,000,000 2.33% due 02/03/05+......................... 25,000,000 25,000,000 ------------ Total Certificates of Deposit (amortized cost $145,000,000)............... 145,000,000 ------------ COMMERCIAL PAPER -- 61.1% Apreco, LLC (LOC -- Citibank N.A.) 2.30% due 01/11/05*......................... 25,000,000 24,984,028 2.34% due 01/14/05*......................... 25,000,000 24,978,875 Amsterdam Funding Corp. (LOC -- ABN AMRO Bank) 2.33% due 02/02/05*.......................... 25,000,000 24,948,222 Atlantis One Funding 2.19% due 02/09/05*......................... 25,000,000 24,940,687 BNP Paribas 2.26% due 01/07/05+......................... 25,000,000 25,000,000 Barton Capital, LLC (LOC -- Societe Generale) 2.31% due 02/08/05*......................... 25,000,000 24,939,042 Beta Finance, Inc. 2.30% due 01/08/05*+........................ 25,000,000 25,000,000 CRC Funding, LLC 2.36% due 02/10/05*......................... 25,000,000 24,934,444 2.36% due 02/11/05*......................... 25,000,000 24,932,805 CXC, LLC 2.00% due 01/14/05*......................... 15,000,000 14,989,167 Cancara Asset Securitization, Ltd. 2.10% due 01/27/05*......................... 20,000,000 19,969,667 2.27% due 02/18/05*......................... 25,000,000 24,924,333 Citigroup Global Markets Holdings, Inc. 2.34% due 02/04/05.......................... 27,000,000 26,940,330 Compass Securitization, LLC (LOC -- Ambac Assurance Corp.) 2.35% due 01/25/05*......................... 25,000,000 24,960,833 CAFCO, LLC 2.03% due 01/18/05*......................... 25,000,000 24,976,035 2.24% due 02/10/05*......................... 25,000,000 24,937,778 Delaware Funding Corp., LLC (LOC -- JP Morgan) 2.20% due 01/13/05*......................... 25,000,000 24,981,667 2.35% due 01/18/05*......................... 25,000,000 24,972,257 Edison Asset Securitization, LLC (LOC -- GE Capital Corp.) 2.00% due 01/13/05*......................... 15,000,000 14,990,000 2.13% due 02/02/05*......................... 26,000,000 25,950,773 2.20% due 02/08/05*......................... 25,000,000 24,941,944 Galaxy Funding, Inc. 2.04% due 01/24/05*......................... 25,000,000 24,967,417 2.23% due 02/10/05*......................... 25,000,000 24,938,055 General Electric Capital Corp. 2.26% due 02/15/05.......................... 25,000,000 24,929,375 2.32% due 01/31/05.......................... 25,000,000 24,951,667 Giro Funding U.S. Corp. 2.01% due 01/18/05*......................... 30,000,000 29,971,525 Goldman Sachs Group, Inc. 2.33% due 01/03/05*+........................ 25,000,000 25,000,000
Principal Value Security Description Amount (Note 2) --------------------------------------------------------------------- Govco, Inc. 2.01% due 01/18/05*..................... $15,000,000 $ 14,985,762 2.23% due 02/15/05*..................... 25,000,000 24,930,313 Greyhawk Funding, LLC 2.25% due 02/16/05*..................... 25,000,000 24,928,125 2.34% due 01/18/05*..................... 25,000,000 24,972,375 Old Line Funding, LLC 2.36% due 02/07/05+..................... 25,000,000 24,939,361 Preferred Receivables Funding 2.34% due 01/26/05*..................... 25,000,000 24,959,375 2.35% due 01/31/05*..................... 25,000,000 24,951,042 Sheffield Receivables (LOC -- Barclay Bank Plc) 2.16% due 01/07/05*..................... 25,000,000 24,991,000 2.18% due 01/04/05*..................... 25,000,000 24,995,458 Surrey Funding Corp. (LOC -- Barclay Bank Plc) 2.13% due 02/02/05*..................... 24,000,000 23,954,560 2.31% due 01/13/05*..................... 25,000,000 24,980,750 Sydney Capital Corp. 2.25% due 01/04/05*..................... 25,000,000 24,995,313 2.31% due 02/04/05*..................... 20,000,000 19,956,367 UBS Finance, LLC 2.39% due 01/04/05...................... 25,000,000 24,995,021 Windmill Funding Corp. (LOC -- ABN AMRO Bank) 2.33% due 02/04/05*..................... 50,000,000 49,889,972 -------------- Total Commercial Paper (amortized cost $1,040,375,720)......... 1,040,375,720 -------------- U.S. GOVERNMENT AGENCIES -- 20.4% Agency for International Development Panama: 2.74% due 01/04/05+..................... 2,888,876 2,899,056 -------------- Federal Home Loan Bank: 1.26% due 04/08/05...................... 20,000,000 20,000,000 1.30% due 02/23/05...................... 20,000,000 20,000,000 1.30% due 04/11/05...................... 20,000,000 20,000,000 1.40% due 04/01/05...................... 20,000,000 20,000,000 1.46% due 03/01/05...................... 20,000,000 20,000,000 2.26% due 01/19/05...................... 17,500,000 17,480,225 2.34% due 01/25/05+..................... 25,000,000 24,999,718 -------------- 142,479,943 -------------- Federal Home Loan Mortgage Corp.: 1.50% due 02/14/05+..................... 19,000,000 19,000,000 2.13% due 01/04/05...................... 10,000,000 9,998,225 2.27% due 01/28/05...................... 22,000,000 21,962,545 2.27% due 02/01/05...................... 20,000,000 19,960,906 -------------- 70,921,676 -------------- Federal National Mortgage Association: 1.33% due 02/23/05...................... 20,000,000 20,000,000 1.34% due 03/04/05...................... 20,000,000 20,000,000 1.38% due 02/14/05...................... 20,000,000 20,000,000 1.50% due 05/09/05...................... 20,000,000 20,000,000 1.65% due 02/08/05+..................... 30,000,000 30,000,000 2.25% due 01/03/05+..................... 20,000,000 19,998,871 -------------- 129,998,871 -------------- Total U.S. Government Agencies (amortized cost $346,299,546)........... 346,299,546 --------------
12 SunAmerica Money Market Fund PORTFOLIO OF INVESTMENTS -- December 31, 2004 -- (continued)
Principal Value Security Description Amount (Note 2) MEDIUM TERM NOTES -- 5.9% Merrill Lynch & Co. 2.24% due 02/17/05+.................. $20,000,000 $ 20,000,000 Merrill Lynch & Co. 2.37% due 01/31/05+.................. 30,000,000 30,000,000 Sigma Finance, Inc. 2.36% due 01/21/05*+................. 25,000,000 24,999,239 White Pine Finance, LLC 2.37% due 01/18/05*+................. 25,000,000 25,000,000 -------------- Total Medium Term Notes (amortized cost $99,999,239)........ 99,999,239 -------------- TAXABLE MUNICIPAL MEDIUM TERM NOTES -- 0.6% Illinois Student Assistance Commission (LOC -- Bank of America) 2.51% due 01/05/05+ (amortized cost $10,000,000)......... 10,000,000 10,000,000 -------------- Total Short-Term Investment Securities -- 96.5% (amortized cost $1,641,674,505)..... 1,641,674,505 -------------- REPURCHASE AGREEMENTS -- 1.8% State Street Bank & Trust Co. Joint Repurchase Agreement(1)........ 46,000 46,000 UBS Securities, LLC Joint Repurchase Agreement(1)........ 31,000,000 31,000,000 -------------- Total Repurchase Agreements (amortized cost $31,046,000)........ 31,046,000 --------------
Value Security Description (Note 2) ----------------------------------------------------------- TOTAL INVESTMENTS (amortized cost $1,672,720,505#)... 98.3% $1,672,720,505 Assets in excess of other liabilities 1.7 28,949,941 ----- -------------- NET ASSETS........................... 100.0% $1,701,670,446 ===== ==============
- -------- * Securities exempt from registration under Rule 144A of Securities Act of 1933. These securities may be sold in transactions exempt from registration, normally to qualified institutional buyers. The Fund has no rights to demand registration of these securities. At December 31,2004, the aggregate value of these securities was $938,619,205 representing 55.2% of net assets. Unless otherwise indicated, these securities are not considered to be illiquid. # At December 31, 2004, the cost of securities for federal income tax purposes was the same for book purposes. + Variable rate security -- the rate reflected is as of December 31, 2004, maturity date reflects next reset date. (1) See Note 2 for details of the Joint Repurchase Agreement LOC --Letter of credit See Notes to Financial Statements 13 SunAmerica Municipal Money Market Fund PORTFOLIO PROFILE -- December 31, 2004 -- (unaudited) State Allocation* Michigan......................... 10.0% Pennsylvania..................... 9.8 Ohio............................. 6.6 Arizona.......................... 6.4 North Carolina................... 6.4 Illinois......................... 6.3 California....................... 5.7 South Carolina................... 5.0 Florida.......................... 4.7 Kentucky......................... 4.5 North Dakota..................... 3.8 Alabama.......................... 3.1 Colorado......................... 3.0 Missouri......................... 2.9 District of Columbia............. 2.7 Connecticut...................... 2.2 Kansas........................... 2.1 Wisconsin........................ 2.0 Georgia.......................... 1.8 New York......................... 1.8 Iowa............................. 1.7 Texas............................ 1.7 Nebraska......................... 1.5 Washington....................... 1.5 Delaware......................... 1.4 Utah............................. 0.7 Wyoming.......................... 0.7 Tennessee........................ 0.4 South Dakota..................... 0.2 Registered Investment Companies.. 0.1 ----- 100.7% ===== Weighted average days to maturity 36.7
Credit Quality Allocation @(1) A-1...................... 97.1% N/R...................... 2.8 Registered Investment Co. 0.1 ----- 100.0% =====
- -------- * Calculated as a percentage of net assets. @ Source: Standard and Poors (1)Calculated as a percentage of total debt issues. 14 SunAmerica Municipal Money Market Fund PORTFOLIO OF INVESTMENTS -- December 31, 2004
Principal Value Security Description Amount (Note 2) SHORT-TERM INVESTMENT SECURITIES -- 100.7% Alabama -- 3.1% Stevenson, Alabama Industrial Development Board Environmental Improvement (LOC -- JP Morgan Chase Bank) 2.03% due 01/05/05+............................. $3,000,000 $ 3,000,000 ------------ Arizona -- 6.4% Arizona Health Facilities Authority 2.00% due 01/05/05+............................. 935,000 935,000 Maricopa County, Arizona Industrial Development Authority, Series A (LOC -- Wells Fargo Bank N.A.) 2.09% due on 01/06/05+.......................... 1,510,000 1,510,000 Maricopa County, Arizona Industrial Development Authority (LOC -- Harris Trust & Savings Bank) 2.12% due 01/06/05+............................. 925,000 925,000 Mesa, Arizona Industrial Development Authority, Series B 1.99% due 01/05/05+............................. 2,930,000 2,930,000 ------------ 6,300,000 ------------ California -- 5.7% California Housing Finance Agency, Series H 2.03% due 01/05/05+............................. 600,000 600,000 California State Revenue Anticipation Notes, Series A 3.00% due 06/30/05.............................. 5,000,000 5,030,808 ------------ 5,630,808 ------------ Colorado -- 3.0% Colorado Springs, Colorado Revenue (LOC -- Wells Fargo Bank N.A.) 2.09% due 01/06/05+............................. 1,495,000 1,495,000 Crystal Valley, Colorado Metropolitan District 1 (LOC -- Wells Fargo Bank N.A.) 1.99% due 01/06/05+............................. 600,000 600,000 Durango, Colorado Revenue (LOC -- Wells Fargo Bank N.A.) 2.09% due 01/06/05+............................. 835,000 835,000 ------------ 2,930,000 ------------ Connecticut -- 2.2% Connecticut State Housing Finance Authority 2.02% due 01/06/05+............................. 2,200,000 2,200,000 ------------ Delaware -- 1.4% Delaware State Economic Development Authority 2.00% due 01/06/05+............................. 100,000 100,000 Delaware State Economic Development Authority 2.00% due 01/06/05+............................. 1,300,000 1,300,000 ------------ 1,400,000 ------------ District of Columbia -- 2.7% District of Columbia Revenue (LOC -- Wachovia Bank N.A.) 1.99% due 01/06/05+............................. 2,610,000 2,610,000 ------------
Principal Value Security Description Amount (Note 2) ------------------------------------------------------------------------- Florida -- 4.7% Lakeland, Florida Energy Systems, Series A 1.88% due 01/05/05+............................ $2,600,000 $ 2,600,000 Lakeland, Florida Energy Systems 1.88% due 01/05/05+............................ 2,000,000 2,000,000 ------------ 4,600,000 ------------ Georgia -- 1.8% Fulton County, Georgia Development Authority (LOC -- Wachovia Bank N.A.) 1.99% due 01/06/05+............................ 1,800,000 1,800,000 ------------ Illinois -- 6.3% Chicago, Illinois O'Hare International Airport, Series B (LOC -- Societe Generale) 2.05% due 01/05/05+............................ 845,000 845,000 Chicago, Illinois Park District, Series B 4.00% due 01/01/05............................. 600,000 600,000 Chicago, Illinois Waterworks (LOC -- Bank One N.A.) 2.00% due 01/05/05+............................ 500,000 500,000 Illinois Finance Authority 3.00% due 03/01/05............................. 2,305,000 2,310,822 Warren County, Illinois Revenue (LOC -- Wells Fargo Bank N.A.) 2.09% due 01/06/05+............................ 1,955,000 1,955,000 ------------ 6,210,822 ------------ Iowa -- 1.7% Iowa Financial Authority, Series F (LOC -- Wells Fargo Bank N.A.) 1.98% due 01/06/05+............................ 1,100,000 1,100,000 Iowa Finance Authority Childrens Services, Series B (LOC -- Wells Fargo Bank N.A.) 2.09% due 01/06/05+............................ 400,000 400,000 Storm Lake, Iowa Higher Education Facilities 2.14% due 01/06/05+............................ 200,000 200,000 ------------ 1,700,000 ------------ Kansas -- 2.1% Shawnee, Kansas Industrial Revenue (LOC -- JP Morgan Chase Bank) 2.00% due 01/03/05+............................ 2,050,000 2,050,000 ------------ Kentucky -- 4.5% Breckinridge County, Kentucky Lease Program (LOC -- U.S. Bank N.A.) 2.00% due 01/05/05+............................ 1,220,000 1,220,000 Breckinridge County, Kentucky Lease Program, Series A (LOC -- U.S. Bank N.A.) 2.00% due 01/05/05+............................ 3,215,000 3,215,000 ------------ 4,435,000 ------------ Michigan -- 10.0% Detroit, Michigan Sewage Disposal, Series C-1 1.95% due 01/06/05+............................ 1,700,000 1,700,000 Detroit, Michigan Sewage Disposal, Series C-2 1.95% due 01/06/05+............................ 3,000,000 3,000,000 Michigan State General Obligation Notes, Series A 3.50% due 09/30/05+............................ 4,500,000 4,549,470
15 SunAmerica Municipal Money Market Fund PORTFOLIO OF INVESTMENTS -- December 31, 2004 -- (continued)
Principal Value Security Description Amount (Note 2) SHORT-TERM INVESTMENT SECURITIES (continued) Michigan (continued) Michigan State Strategic Funding Limited Obligation (LOC -- Fifth Third Bank) 2.05% due 01/05/05+............................ $ 570,000 $ 570,000 ---------- 9,819,470 ---------- Missouri -- 2.9% Missouri Higher Education Student Loan Authority, Series B 2.05% due 01/05/05+............................ 1,300,000 1,300,000 St Louis, Missouri Planned Industrial Expansion Authority (LOC -- Bank of America N.A.) 2.05% due 01/05/05+............................ 1,500,000 1,500,000 ---------- 2,800,000 ---------- Nebraska -- 1.5% Douglas County, Nebraska Solid Waste Disposal, Series A (LOC -- Wachovia Bank N.A.) 2.05% due 01/06/05+............................ 1,500,000 1,500,000 ---------- New York -- 1.8% New York City Trust for Cultural Resources (LOC -- JP Morgan Chase Bank) 1.98% due 01/06/05+............................ 1,800,000 1,800,000 ---------- North Carolina -- 6.4% Charlotte, North Carolina Certificates of Participation, Series B 2.05% due 01/06/05+............................ 4,000,000 4,000,000 Durham, North Carolina General Obligation 1.99% due 01/06/05+............................ 300,000 300,031 Greensboro, North Carolina Enterprise System, Series B 2.00% due 01/06/05+............................ 900,000 900,000 Mecklenburg County, North Carolina Certificates of Participation 2.00% due 01/06/05+............................ 800,000 800,000 Mecklenburg County, North Carolina Certificates of Participation 2.05% due 01/06/05+............................ 250,000 250,000 ---------- 6,250,031 ---------- North Dakota -- 3.8% North Dakota State Housing Finance Agency, Series A 2.01% due 01/05/05+............................ 3,700,000 3,700,000 ---------- Ohio -- 6.6% Cleveland, Ohio Airport System, Series D (LOC -- WestLb AG) 2.01% due 01/05/05+............................ 2,965,000 2,965,000 Franklin County, Ohio Hospital, Series B (LOC -- Citibank N.A.) 1.97% due 01/06/05+............................ 3,470,000 3,470,000 ---------- 6,435,000 ---------- Pennsylvania -- 9.8% Delaware Valley, Pennsylvania Regional Financial Authority, Series A (LOC -- Toronto -- Dominion Bank) 1.98% due 01/05/05+............................ 300,000 300,000
Principal Value Security Description Amount (Note 2) ----------------------------------------------------------------------- Pennsylvania (continued) Delaware Valley, Pennsylvania Regional Financial Authority, Series C (LOC -- Toronto - Dominion Bank) 1.98% due 01/05/05+............................ $1,700,000 $1,700,000 Pennsylvania State Higher Education Assistance Agency 1.93% due 01/05/05+............................ 1,400,000 1,400,000 Pennsylvania State Turnpike Commission, Series A 2.00% due 01/05/05+............................ 1,000,000 1,000,000 Philadelphia, Pennsylvania Tax & Revenue Anticipation Notes 3.00% due 06/30/05............................. 5,000,000 5,033,264 Philadelphia, Pennsylvania Authority for Industrial Development (LOC -- GE Capital Corp.) 1.95% due 01/05/05+............................ 200,000 200,000 ---------- 9,633,264 ---------- South Carolina -- 5.0% South Carolina Jobs Economic Development Authority (LOC -- Bank of America N.A.) 2.05% due 01/05/05+............................ 1,800,000 1,800,000 Piedmont Municipal Power Agency Electric Revenue, Series B-6 1.98% due 01/05/05+............................ 3,100,000 3,100,000 ---------- 4,900,000 ---------- South Dakota -- 0.2% Lower Brule Sioux Tribe, South Dakota General Obligation Notes (LOC -- Wells Fargo Bank N.A.) 1.99% due 01/06/05+............................ 135,000 135,000 ---------- Tennessee -- 0.4% Nashville & Davidson County, Tennessee Industrial Development Board (LOC -- Bank of America N.A.) 1.94% due 01/03/05+............................ 300,000 300,000 ---------- Texas -- 1.7% Brownsville, Texas Utility Systems, Series A 1.97% due 01/05/05+............................ 1,610,000 1,610,000 Gulf Coast Waste Disposal Authority, Series A (LOC -- JP Morgan Chase Bank) 2.05% due 01/06/05+............................ 100,000 100,000 ---------- 1,710,000 ---------- Utah -- 0.7% Eagle Mountain, Utah Gas & Electric Revenue (LOC -- BNP Paribas) 2.00% due 01/06/05+............................ 645,000 645,000 ---------- Washington -- 1.5% Port Seattle, Washington Industrial Development (LOC -- Citibank N.A.) 2.02% due 01/05/05+............................ 1,500,000 1,500,000 ---------- Wisconsin -- 2.0% Wisconsin State Health & Educational Facilities Authority (LOC -- U.S. Bank Trust N.A.) 1.98% due 01/06/05+............................ 2,000,000 2,000,000 ----------
16 SunAmerica Municipal Money Market Fund PORTFOLIO OF INVESTMENTS -- December 31, 2004 -- (continued)
Principal Value Security Description Amount (Note 2) ----------------------------------------------------------------- SHORT-TERM INVESTMENT SECURITIES (continued) Wyoming -- 0.7% Wyoming Community Development Authority, Series A 1.99% due 01/06/05+..................... $700,000 $ 700,000 ----------- Registered Investment Companies -- 0.1% SSGA Tax Free Money Market -- Class A 1.31% due 01/03/05+..................... 70,287 70,287 ----------- TOTAL SHORT-TERM INVESTMENT SECURITIES (amortized cost $98,764,682*)............ 100.7% 98,764,682 Liabilities in excess of other assets...... (0.7) (670,674) -------- ----------- NET ASSETS................................. 100.0% $98,094,008 ======== ===========
- -------- * At December 31, 2004, the cost of securities for federal income tax purposes was the same for book purposes. + Variable rate security -- the rate reflected is as of December 31, 2004; maturity date reflects next reset date. LOC -- Letter of Credit See Notes to Financial Statements 17 SunAmerica Money Market Funds NOTES TO FINANCIAL STATEMENTS -- December 31, 2004 Note 1. Organization SunAmerica Money Market Funds, Inc. (the "Corporation") is an open-end diversified management investment company organized as a Maryland Corporation. The Corporation consists of two investment funds (each, a "Fund" and collectively, the "Funds"). Each Fund is a separate series with a distinct investment objective. Each Fund is advised by AIG SunAmerica Asset Management Corp. ("SAAMCo" or "Advisor"), an indirect wholly-owned subsidiary of American International Group, Inc. ("AIG"). The investment objective for each of the Funds is as follows: The SunAmerica Money Market Fund ("Money Market Fund") seeks as high a level of current income as is consistent with liquidity and stability of capital through investment primarily in high-quality money market instruments selected principally on the basis of quality and yield. The SunAmerica Municipal Money Market Fund ("Municipal Money Market Fund") seeks as high a level of current income as is consistent with liquidity and stability of capital and that is exempt from regular federal income taxation through investments selected primarily in high-quality money market instruments primarily on the basis of quality and yield, and under normal market conditions invests at least 80% of its assets in municipal securities that are exempt from regular federal income tax. The Money Market Fund currently offers four classes of shares: Class A, Class B, Class C and Class I. The Municipal Money Market Fund currently offers three classes of shares: Class A, Class B, and Class C. The classes within the Funds are presented in the Statement of Assets and Liabilities. The cost structure for each class is as follows: Class A shares-- Class A shares are offered at net asset value per share without any initial sales charge. Contingent deferred sales charges ("CDSC") are imposed on Class A shares when shares are sold within one year of original purchase. A 1.00% CDSC is imposed on shares sold within one year of original purchase; a 0.50% CDSC is charged on shares sold after the first year and within the second year after purchase. Class B shares-- Class B shares are offered at net asset value per share, without any initial sales charge. A declining contingent deferred sales charge ("CDSC") may be imposed on redemptions made within six years of purchase. Class B shares will convert automatically to Class A shares on the first business day of the month after eight years from the issuance of such shares and at such time are no longer subject to a distribution fee. Class C shares-- Class C shares are offered at the net asset value per share, without any initial sales charge. Certain redemptions made within 12 months of the date of purchase are subject to a contingent deferred sales charge of 1.00%. Effective February 23, 2004, Class II shares were redesignated as Class C shares. Class I shares-- Class I shares are offered at net asset value per share without any initial sales charge, exclusively to certain institutions. Each class of shares bears the same voting, dividend, liquidation and other rights and conditions. Class A, Class B, and Class C shares of each Fund has its own 12b-plan, which allows for distributions and account maintenance and service fees payments except Class B and Class C shares are subject to higher distribution fee rates. Indemnifications: Under the Funds' organizational documents, its officers and directors are indemnified against certain liability arising out of the performance of their duties to the Funds. In addition, in the normal course of business the Funds enter into contracts that contain a variety of representations and warranties which provide general indemnifications. The Funds' maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Funds that have not yet occurred. However, the Funds expect the risk of loss to be remote. 18 SunAmerica Money Market Funds NOTES TO FINANCIAL STATEMENTS -- December 31, 2004 -- (continued) Note 2. Significant Accounting Policies The preparation of financial statements in accordance with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from these estimates. The following is a summary of the significant accounting policies followed by the Funds in the preparation of its financial statements: Security Valuations: Portfolio securities are valued at amortized cost, which approximates market value. The amortized cost method involves valuing a security at its cost on the date of purchase and thereafter assuming a constant amortization/accretion to maturity of any discount or premium. Repurchase Agreements: The Funds, along with other affiliated registered investments companies, pursuant to exemptive relief granted by the Securities and Exchange Commission, may transfer uninvested cash balances onto a single joint account, the daily aggregate balance of which is invested in one or more repurchase agreements collateralized by the U.S. Treasury or federal agency obligations. For repurchase agreements and joint repurchase agreements, the Funds' custodian takes possession of the collateral pledged for investments in such repurchase agreements. The underlying collateral is valued daily on a mark to market basis to ensure that the value, at the time the agreement is entered into, is equal to at least 102% of the repurchase price, including accrued interest. In the event of default of the obligation to repurchase, a Fund has the right to liquidate the collateral and apply the proceeds in satisfaction of the obligation. If the seller defaults and the value of the collateral declines or if bankruptcy proceedings are commenced with respect to the seller of the security, realization of the collateral by the Fund may be delayed or limited. As of December 31, 2004, the following Fund held an undivided interest in a joint repurchase agreement with State Street Bank & Trust Co.:
Percentage Principal Interest Amount ---------- --------- Money Market Fund 0.04% $46,000
As of such date, the repurchase agreement in that joint account and the collateral therefore were as follows: State Street Bank & Trust Co., dated December 31, 2004, bearing interest at a rate of 1.55% per annum, with a principal amount of $104,311,000, a repurchase price of $104,324,474, and a maturity date of January 3, 2005. The repurchase agreement is collateralized by the following:
Interest Maturity Type of Collateral Rate Date Principal Amount Market Value - ------------------ -------- -------- ---------------- ------------ U.S. Treasury Notes 1.50% 07/31/05 $40,800,000 $40,805,834 U.S. Treasury Notes 2.38 08/31/06 4,410,000 4,398,975 U.S. Treasury Notes 2.50 09/30/06 20,455,000 20,402,062 U.S. Treasury Notes 3.00 11/15/07 20,455,000 20,401,940 U.S. Treasury Notes 3.00 02/15/09 20,555,000 20,400,838
In addition, at December 31, 2004, the following Fund held an undivided interest in a joint repurchase agreement with UBS Securities, LLC:
Percentage Principal Interest Amount ---------- ----------- Money Market Fund 12.40% $31,000,000
19 SunAmerica Money Market Funds NOTES TO FINANCIAL STATEMENTS -- December 31, 2004 -- (continued) As of such date, the repurchase agreement in that joint account and the collateral therefore were as follows: UBS Securities, LLC, dated December 31, 2004, bearing interest at a rate of 1.60% per annum, with a principal amount of $250,000,000, a repurchase price of $250,033,333, and a maturity date of January 3, 2005. The repurchase agreement is collateralized by the following:
Interest Maturity Type of Collateral Rate Date Principal Amount Market Value - ------------------ -------- -------- ---------------- ------------ U.S. Treasury Inflation Index Bonds 3.38% 04/15/32 $ 50,000,000 $ 71,187,500 U.S. Treasury Inflation Index Bonds 3.88 04/15/29 114,974,000 183,814,683
Securities Transactions, Investment Income, Dividends and Distributions to Shareholders: Security transactions are recorded on a trade date basis. Realized gains and losses on sales of investments are calculated on the identified cost basis. Interest income, including the accretion of discount and amortization of premium, is accrued daily; dividend income is recorded on the ex-dividend date. Net investment income, other than class specific expenses, and realized and unrealized gains and losses, are allocated daily to each class of shares based upon the relative net asset value of outstanding shares (or the value of the dividend-eligible shares, as appropriate) of each class of shares at the beginning of the day (after adjusting for the current capital shares activity of the respective class). Expenses common to all Funds, not directly related to individual Funds, are allocated among the Funds based upon their relative net asset value or other appropriate methods. In all respects, expenses are charged to each Fund as incurred on a specific identification basis. Interest earned on cash balances held at the custodian are shown as custody credits in the Statement of Operations. Dividends from net investment income, if any, are normally declared daily and paid monthly. Capital gain distributions, if any, are paid annually. The Funds record dividends and distributions to their shareholders on the ex-dividend date. The amount of dividends and distributions from net investment income and net realized capital gains are determined in accordance with federal income tax regulations, which may differ from U.S. generally accepted accounting principles. These "book/tax" differences are either considered temporary or permanent in nature. To the extent these differences are permanent in nature, such amounts are reclassified within the capital accounts at fiscal year end based on their federal tax-basis treatment; temporary differences do not require reclassification. Net investment income (loss), net realized gain (loss), and net assets are not affected by these reclassifications. Note 3. Investment Advisory and Management Agreement, Distribution and Service Agreement The Funds have an Investment Advisory and Management Agreement (the "Agreement") with SAAMCo. Under the Agreement, SAAMCo provides continuous supervision of the Funds and administers its corporate affairs, subject to general review by the Board of Directors. In connection therewith, SAAMCo furnishes the Funds with office facilities, maintains certain of its books and records, and pays the salaries and expenses of all personnel, including officers of the Funds who are employees of SAAMCo and its affiliates. The investment advisory and management fee payable to SAAMCo is computed daily and payable monthly, at an annual rate of 0.50% on the first $600 million of daily net assets, 0.45% on the next $900 million of the assets and 0.40% on net assets over $1.5 billion for the Money Market Fund and 0.35% of average daily net assets of the Municipal Money Market Fund. The Municipal Money Market Fund is subadvised by AIG Global Investment Corp. ("AIGGIC"). AIGGIC is an indirectly wholly-owned subsidiary of AIG and receives fees from SAAMCo at a rate of 0.25% of the Fund's first $200 million of net assets, 0.20% on the next $300 million and 0.15% on net assets over $500 million. SAAMCo has contractually agreed to waive fees or reimburse expenses, if necessary, at or below the following percentages of each Fund's average net assets. 20 SunAmerica Money Market Funds NOTES TO FINANCIAL STATEMENTS -- December 31, 2004 -- (continued)
Fund Percentage - ---- ---------- Money Market Class I............. 0.80% Municipal Money Market Class A... 0.95 Municipal Money Market Class B... 1.70 Municipal Money Market Class C(1) 1.70
SAAMCo has voluntarily agreed to waive fees or reimburse expenses for the period ended December 31, 2004 at the following percentages of each Fund's average net assets.
Fund Percentage - ---- ---------- Municipal Money Market Class A... 0.00% Municipal Money Market Class B... 0.01 Municipal Money Market Class C(1) 0.01
For the period ended December 31, 2004, SAAMCo agreed to contractually and voluntarily reimburse expenses as follows:
Fund - ---- Money Market Class I............. $10,468 Municipal Money Market Class A... 1,475 Municipal Money Market Class B... 4,957 Municipal Money Market Class C(1) 7,869
The contractual expense waivers and fee reimbursements will continue indefinitely, subject to termination by the Directors, including a majority of the Independent Directors. The voluntary waivers and/or reimbursements are expected to continue but may be terminated at any time. The exact amount of the voluntary waivers and/or reimbursements may change on a day-to-day basis. The Funds have a distribution agreement with AIG SunAmerica Capital Services, Inc. ("SACS" or the "Distributor"), an affiliate of the Advisor. The Funds have adopted a Distribution Plan (the "Plan") in accordance with the provisions of Rule 12b-1 under the 1940 Act. Rule 12b-1 permits an investment company directly or indirectly to pay expenses associated with the distribution of its shares ("distribution expenses") in accordance with a plan adopted by the investment company's Board of Directors and approved by its shareholders. Pursuant to such rule, the directors and the shareholders of each class of shares of the Funds have adopted Distribution Plans hereinafter referred to as the "Class A Plan," the "Class B Plan," and the "Class C Plan." In adopting the Class A Plan, the Class B Plan, and the Class C Plan, the directors determined that there was a reasonable likelihood that each such Plan would benefit the Funds and the shareholders of the respective class. The sales charge and distribution fees of the Class B shares and Class C shares will not be used to subsidize the sale of Class A shares. Under the Class B Plan and the Class C Plan, the Distributor receives payments from the Funds at the annual rate of up to 0.75% of the average daily net assets of the Fund's Class B and Class C shares, to compensate the Distributor and certain securities firms for providing sales and promotional activities for distributing that class of shares. The distribution costs for which the Distributor may be compensated include distribution fees paid to broker-dealers that have sold Fund shares, commissions, and other expenses such as those incurred for sales literature, prospectus printing and distribution, and compensation to wholesalers. It is possible that in any given year the amount paid to the Distributor under the Class B and Class C Plans may exceed the Distributor's distribution costs as described above. The Class A Plan does not provide for a distribution fee. The Distribution Plans provide that each class of shares, other than Class I, of the Funds may also pay the Distributor an account maintenance and service fee of up to an annual rate of 0.15% of the aggregate average daily net assets of such class of shares for payments to broker-dealers for providing continuing account maintenance. In this regard, some payments are used to compensate broker-dealers with account maintenance and service fees in an amount up to 0.15% per year of the assets maintained in the Funds by their customers. Accordingly, for the period ended December 31, 2004, SACS received fees (see Statement of Operations) based upon the aforementioned rates. - -------- (1) Effective February 23, 2004, Class II shares were redesignated as Class C shares. 21 SunAmerica Money Market Funds NOTES TO FINANCIAL STATEMENTS -- December 31, 2004 -- (continued) For the period ended December 31, 2004, SACS voluntarily reimbursed the following expenses:
Fund - ---- Money Market Class B............. $186,003 Money Market Class C(1).......... 85,825 Municipal Money Market Class B... 16,395 Municipal Money Market Class C(1) 1,088
SACS receives sales charges on each Fund's Class C shares, portions of which are reallowed to affiliated broker-dealer and non-affiliated broker-dealers. Effective February 23, 2004, the front-end sales charge for Class C is no longer in effect. SACS also receives the proceeds of contingent deferred sales charges paid by investors in connection with certain redemptions of each Fund's Class A, Class B and Class C shares. SACS has advised the Funds for the period ended December 31, 2004, the proceeds received from sales redemptions (and paid out to affiliated and non-affiliated broker-dealers) and redemptions are as follows:
Class A Class A Class B ------------------------------------- ------------- ------------- Contingent Contingent Sales Affiliated Non-affiliated Deferred Deferred Fund Charges Broker-dealers Broker-dealers Sales Charges Sales Charges - ---- ------- -------------- -------------- ------------- ------------- Money Market.......... $ -- $ -- $ -- $10,000 $301,529 Municipal Money Market -- -- -- -- 4,993
Class C(1) Class C(1) ------------------------------------- ---------- Contingent Deferred Sales Affiliated Non-affiliated Sales Fund Charges Broker-dealers Broker-dealers Charges - ---- ------- -------------- -------------- ---------- Money Market.......... $6,870 $1,672 $5,198 $34,780 Municipal Money Market 12 11 1 19,681
The Funds entered into a Service Agreement with AIG SunAmerica Fund Services, Inc. ("SAFS"), an affiliate of the Advisor. Under the Service Agreement, SAFS performs certain shareholder account functions by assisting the Funds' transfer agent in connection with the services that it offers to its shareholders. The Service Agreement permits the Funds to reimburse SAFS for the costs incurred in providing such services, based upon an annual rate of 0.22% of average daily net assets, which is approved annually by the Directors. For the period ended December 31, 2004, the Funds incurred the following expenses which are included in transfer agent fees and expenses in the Statement of Operations to compensate SAFS pursuant to the terms of the Service Agreement:
Payable at December 31, Fund Expenses 2004 - ---- ---------- ------------ Money Market Class A............. $3,596,088 $299,090 Money Market Class B............. 106,308 8,027 Money Market Class C(1).......... 48,583 3,442 Money Market Class I............. 24,734 2,141 Municipal Money Market Class A... 229,233 18,191 Municipal Money Market Class B... 5,411 96 Municipal Money Market Class C(1) 469 38
Note 4. Federal Income Taxes The Funds intend to comply with the requirements of the Internal Revenue Code applicable to regulated investment companies and distribute all of their taxable income, including any net realized gain on investments, to its shareholders. Therefore, no federal tax provisions are required. Each Fund is considered a separate entity for tax purposes. - -------- (1) Effective February 23, 2004, Class II shares were redesignated as Class C shares. 22 SunAmerica Money Market Funds NOTES TO FINANCIAL STATEMENTS -- December 31, 2004 -- (continued) The tax basis components of distributable earnings differ from the amounts reflected in the Statement of Assets and Liabilities by temporary book/tax differences primarily arising from cumulative pension expenses.
Distributable Earnings Tax Distributions ---------------------------------------- -------------------- For the year ended December 31, 2004 ------------------------------------------------------------- Long-term Gains/ Unrealized Long-Term Ordinary Capital Loss Appreciation Ordinary Capital Fund Income Carryover (Depreciation) Income Gains - ---- -------- ---------------- -------------- ---------- --------- Money Market.......... $347,345 $ -- $ -- $8,165,643 $ -- Municipal Money Market 30,469 -- -- 366,908 -- Tax Distributions -------------------- For the year ended December 31, 2003 -------------------- Long-Term Ordinary Capital Fund Income Gains - ---- ---------- --------- Money Market................................................... $322,099 -- Municipal Money Market......................................... 4,646 --
Under the current law, capital losses related to securities realized after October 31 and prior to the Fund's fiscal year end may be deferred as occurring the first day of the following year. For the fiscal year ended December 31, 2004, the Funds elected to defer capital losses as follows:
Deferred Post-October Fund Capital Loss - ---- --------------------- Money Market.......... $13,929 Municipal Money Market 16,250
As of December 31, 2004, for Federal income tax purposes, the Municipal Money Market Fund had a capital loss carryforward of $8,072, which will expire in the year 2012, which is available to offset future capital gains, if any. Note 5. Capital Share Transactions Transactions in each class of shares of the Funds, all at $1.00 per share, for the year ended December 31, 2004 and for the prior year were as follows:
Money Market Fund ------------------------------------------------------------------------------------------- Class A Class B Class C(1) -------------------------------- --------------------------- -------------------------- For the For the For the For the For the For the year year year year year year ended ended ended ended ended ended December 31, December 31, December 31, December 31, December 31, December 31, 2004 2003 2004 2003 2004 2003 --------------- --------------- ------------ ------------ ------------ ------------ Shares sold............ $ 1,032,086,849+ $ 1,050,689,073@ $ 51,971,494 $ 56,471,807 $ 44,114,142 $ 41,305,272 Reinvested shares...... 8,038,526 5,564,933 27,583 15,806 12,541 7,139 Shares redeemed........ (1,054,375,452) (1,163,463,818) (54,090,452)+ (76,773,842)@ (47,431,940) (51,307,759) --------------- --------------- ------------ ------------ ------------ ------------ Net increase (decrease) $ (14,250,077) $ (107,209,812) $ (2,091,375) $(20,286,229) $ (3,305,257) $ (9,995,348) =============== =============== ============ ============ ============ ============
------------------------- Class I ------------------------ For the For the year year ended ended December 31, December 31, 2004 2003 ------------ ------------ Shares sold............ $10,886,039 $ 7,049,963 Reinvested shares...... 66,605 39,889 Shares redeemed........ (8,693,987) (6,648,520) ----------- ----------- Net increase (decrease) $ 2,258,657 $ 441,332 =========== ===========
- -------- + Includes automatic conversion of Class B shares in the amount of $2,916,293 to Class A shares. @ Includes automatic conversion of Class B shares in the amount of $1,350,441 to Class A shares. (1) Effective February 23, 2004, Class II shares were redesignated as Class C shares. 23 SunAmerica Money Market Funds NOTES TO FINANCIAL STATEMENTS -- December 31, 2004 -- (continued)
Municipal Money Market Fund ---------------------------------------------------------------------------------- Class A Class B Class C(1) ---------------------------- ------------------------- ------------------------ For the For the For the For the For the For the year year year year year year ended ended ended ended ended ended December 31, December 31, December 31, December 31, December 31, December 31, 2004 2003 2004 2003 2004 2003 ------------- ------------- ------------ ------------ ------------ ------------ Shares sold............ $ 129,348,654# $ 175,185,271* $ 279,737 $ 1,513,161 $ 783,160 $ 416,187 Reinvested shares...... 364,275 284,529 2,416 3,555 170 161 Shares redeemed........ (146,141,140) (149,718,411) (2,953,009)# (2,063,313)* (818,374) (328,375) ------------- ------------- ----------- ----------- --------- --------- Net increase (decrease) $ (16,428,211) $ 25,751,389 $(2,670,856) $ (546,597) $ (35,044) $ 87,973 ============= ============= =========== =========== ========= =========
- -------- # Includes automatic conversion of Class B shares in the amount of $4,801 to Class A shares. * Includes automatic conversion of Class B shares in the amount of $21,376 to Class A shares. Note 6. Directors' Retirement Plan The Directors of the SunAmerica Money Market Funds, Inc. have adopted the AIG SunAmerica Disinterested Trustees' and Directors' Retirement Plan (the "Retirement Plan") effective January 1, 1993 for the unaffiliated Directors. The Retirement Plan provides generally that if an unaffiliated Director who has at least 10 years of consecutive service as a Disinterested Director of any of the AIG SunAmerica mutual funds (an "Eligible Director") retires after reaching age 60 but before age 70, or who has at least 5 years of consecutive service after reaching age 65 but before age 70, or dies while a Director, such person will be eligible to receive a retirement or death benefit from each AIG SunAmerica mutual fund with respect to which he or she is an Eligible Director. As of each birthday, prior to the 70th birthday, but in no event for a period greater than 10 years, each Eligible Director will be credited with an amount equal to 50% of his or her regular fees (excluding committee fees) for services as a Disinterested Director of each AIG SunAmerica mutual fund for the calendar year in which such birthday occurs. In addition, an amount equal to 8.50% of any amounts credited under the preceding clause during prior years, is added to each Eligible Director's account until such Eligible Director reaches his or her 70th birthday. An Eligible Director may receive benefits payable under the Retirement Plan, at his or her election, either in one lump sum or in up to fifteen annual installments. Any undistributed amounts shall continue to accrue interest at 8.50%. The following amounts for the Retirement Plan Liabilities are included in the Director fees and expense line on the Statement of Assets and Liabilities and the amounts for the Retirement Plan Expenses are included in the Director's fees and expenses line on the Statement of Operations.
Retirement Plan Retirement Plan Fund Expense Payments - ---- Retirement Plan Liability --------------- --------------- As of December 31, 2004 For the year ended December 31, 2004 ------------------------- ------------------------------------ Money Market.......... $234,550 $25,586 $14,269 Municipal Money Market 5,566 1,658 156
Note 7. Interfund Lending Agreement Pursuant to exemptive relief granted by the Securities and Exchange Commission, the Funds are permitted to participate in an inter-fund lending program among investment companies advised by SAAMCo or an affiliate. The inter-fund lending program allows the participating Funds to borrow money from and loan money to each other for the temporary or emergency purposes. An inter-fund loan will be made under this facility only if the participating Funds receive a more favorable interest rate than would otherwise be available from a typical bank for a comparable transaction. For the year ended December 31, 2004, none of the Funds participated in the program. - -------- (1) Effective February 23, 2004, Class II shares were redesignated as Class C shares. 24 SunAmerica Money Market Funds REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Board of Directors and Shareholders of SunAmerica Money Market Funds, Inc.: In our opinion, the accompanying statements of assets and liabilities, including the portfolio of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of SunAmerica Money Market Fund and SunAmerica Municipal Money Market Fund (constituting the two funds in SunAmerica Money Market Funds, Inc., hereafter referred to as the "Corporation") at December 31, 2004, the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period then ended and the financial highlights for each of the periods indicated, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Corporation's management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at December 31, 2004 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion. PricewaterhouseCoopers LLP Houston, Texas February 15, 2005 25 SunAmerica Money Market Funds DIRECTORS AND OFFICERS INFORMATION -- December 31, 2004 -- (unaudited) The following table contains basic information regarding the Directors and Officers that oversee operations of the Funds and other investment companies within the Fund Complex.
Term of Number of Position Office and Funds in Fund Held With Length of Principal Complex Other Name, Address SunAmerica Time Served Occupations During Overseen Directorships Held and Date of Birth* Complex (4) Past 5 years by Director (1) by Director (2) - -------------------- ---------- ----------- ------------------- --------------- ------------------- Jeffrey S. Burum Director 2004- Founder and CEO of 36 None DOB: February 27, present National Housing 1963 Development Corp. Judith L. Craven Director 2001- Retired 76 Director. A.G. Belo DOB: October 6, 1945 present Corporation (1992 to present); Director, Sysco Corporation (1996 to present); Director, Luby's Inc. (1998 to present); Director, University of Texas Board of Regents (May 2001 to present) William F. Devin Director 2001- Retired 76 Member of the Board DOB: December 30, present of Governors, 1938 Boston Stock Exchange (1985-Present); Samuel M. Eisenstat Chairman 1985- Attorney, solo 46 Director of North DOB: March 7, 1940 of the present practitioner; European Board Oil Royalty Trust. Stephen J. Gutman Director 1984- Partner and Member 46 None DOB: May 10, 1943 present of Managing Directors, Beau Brummell--Soho LLC (Licensing of menswear specialty retailing and other activities) June 1988-present Peter A. Harbeck (3) Director 1994- President, CEO and 85 None DOB: January 23, present Director, 1954 SAAMCo. (August 1995 to present); Director, AIG SunAmerica Capital Services, Inc. ("SACS") (August 1993 to present) William J. Shea (5) Director 2004- President and CEO, 46 None DOB: February 9, present Conseco, 1948 Inc. (Financial Services) (2001-2004); Chairman of the Board of Centennial Technologies, Inc. (1998 to 2001); Vice Chairman, Bank Boston Corporation (1993-1998) Vincent M. Marra President 2004- Senior Vice N/A N/A DOB: May 28, 1950 present President and Chief Operating Officer, SAAMCo (February 2003 to Present); Chief Administrative Officer and Chief Financial Officer, Carret & Co., LLC (June 2002 to February 2003); President, Bowne Digital Solutions (1999 to May 2002) Donna M. Handel Treasurer 2002- Assistant Treasurer N/A N/A DOB: June 25, 1966 present (1993 to 2002); Senior Vice President, SAAMCo (December 2004 to Present); Vice President, SAAMCo (1997 to December 2004)
- -------- * The business address for each Director and Officer is the Harborside Financial Center, 3200 Plaza 5, Jersey City, NJ 07311-4992. (1) The "Fund Complex" consists of all registered investment company portfolios for which SAAMCo serves as investment adviser or business manager. The "Fund Complex" includes the SunAmerica Money Market Funds (2 funds), SunAmerica Equity Funds (9 funds), SunAmerica Income Funds (6 funds), SunAmerica Focused Series, Inc. (15 portfolios), Anchor Series Trust (9 portfolios), SunAmerica Senior Floating Rate Fund, Inc. (1 fund), SunAmerica Series Trust (32 portfolios), VALIC Company I (24 portfolios), VALIC Company II (15 funds), Seasons Series Trust (24 portfolios) and AIG Series Trust (4 portfolios). (2) Directorships of companies required to report to the Securities and Exchange Commission under the Securities Exchange Act of 1934 (i.e. "public companies") or other investment companies registered under the Investment Company Act of 1940. (3) Interested Director, as defined within the Investment Company Act of 1940, because he is an officer and a director of the advisor and a director of the principal underwriter of, the Trust. (4) Directors serve until their successors are duly elected and qualified, subject to the Director's retirement plan as discussed in Note 6 of the financial statements. (5) Effective on November 30, 2004, William J. Shea began serving as a Director. Additional information concerning the Directors and Officers is contained in the Statement of Additional Information and is available without charge by calling (800) 858-8850. 26 SunAmerica Money Market Funds If you would like additional information: [_] Call FastFacts -- our 24-hour, automated account and fund information hotline at 800-654-4760. [_] Visit www.sunamericafunds.com for more up-to-date information. Thank you for your continued support. AIG SunAmerica Mutual Funds 27 [LOGO] AIG Sun America Mutual Funds Harborside Financial Center 3200 Plaza 5 Jersey City, NJ 07311-4992 Directors/Trustees Investment Adviser DISCLOSURE OF QUARTERLY Samuel M. Eisenstat AIG SunAmerica Asset PORTFOLIO HOLDINGS Peter A. Harbeck Management Corp. The Fund is required to Dr. Judith L. Craven Harborside Financial file its com-plete William F. Devin Center schedule of portfolio Stephen J. Gutman 3200 Plaza 5 holdings with the Jeffrey S. Burum Jersey City, NJ Securities and Exchange William J. Shea 07311-4992 Commission for its first and third fiscal quarters Officers Distributor on Form N-Q for fiscal Vincent M. Marra, AIG SunAmerica Capital quar-ters ending after President Services, Inc. July 9, 2004. Once filed, Donna M. Handel, Harborside Financial the Fund's Form N-Q will Treasurer Center be available without J. Steven Neamtz, Vice 3200 Plaza 5 charge on the Secu-rities President Jersey City, NJ and Exchange Commission's Timothy P. Pettee, Vice 07311-4992 website at www.sec.gov. President You can also obtain Brian Wiese, Vice Shareholder Servicing copies of Form N-Q by (i) President Agent visit-ing the Securities Cynthia Gibbons, Vice AIG SunAmerica Fund and Exchange President and Chief Services, Inc. Com-mission's Public Compliance Officer Harborside Financial Reference Room in Thomas Lynch, Assistant Center Washington, DC Secretary 3200 Plaza 5 (information on the Gregory R. Kingston, Jersey City, NJ operation of the Public Vice President and 07311-4992 Reference Room may be Assistant Treasurer obtained by calling Donald H. Guire, Custodian and Transfer 1-800-SEC-0330); (ii) Assistant Treasurer Agent sending your re-quest and State Street Bank and a duplicating fee to the Trust Company Securities and Exchange P.O. Box 419572 Commission's Public Kansas City, MO Reference Room, 64141-6572 Washington, DC 20549-0102 or (iii) sending your VOTING PROXIES ON FUND request electronically to PORTFOLIO SECURITIES publicinfo.sec.gov. A description of the policies and proce-dures This report is submitted that the Fund uses to solely for the general determine how to vote information of proxies relating to shareholders of the Fund. secu-rities held in the Distribution of this Fund's portfolio which is report to persons other available in the Fund's than shareholders of the State-ment of Additional Fund is authorized only Information, may be in connection with a obtained without charge currently effective upon re-quest, by calling prospectus, setting forth (800) 858-8850. This details of the Fund, information is also which must precede or available from the EDGAR accompany this report. database on the Securities and Exchange Commission's website at http://www.sec.gov. PROXY VOTING RECORD ON SUNAMERICA MONEY MARKET FUNDS Information regarding how SunAmerica Money Market Funds voted proxies relating to securities held in SunAmerica Money Market Funds during the twelve month period ended June 30, 2004 is available without charge, upon request, by calling (800) 858-8850 or on the Securities and Exchange Commission's website at www.sec.gov.
28 [LOGO] AIG SunAmerica Mutual Funds Distributed by: AIG SunAmerica Capital Services, Inc. MMANN-12/04 Item 2. Code of Ethics. The SunAmerica Money Market Funds, Inc. (the "registrant") has adopted a Code of Ethics applicable to its Principal Executive and Principal Accounting Officers pursuant to Section 406 of the Sarbanes-Oxley Act of 2002. Effective December 2, 2004, the Code of Ethics has been amended to reflect Vincent M. Marra as President, replacing Robert M. Zakem. Item 3. Audit Committee Financial Expert. Currently, the registrant does not have an Audit Committee member who possesses all of the attributes required to be an "audit committee financial expert" as defined in instruction 2(b)of Item 3 of Form N-CSR. However, the Board of Directors believes that each member of the Audit Committee has substantial experience relating to the review of financial statements and the operations of audit committees. Accordingly, the Board believes that the members are qualified to evaluate the registrant's financial statements, supervise the registrant's preparation of its financial statements, and oversee the work of the registrant's independent auditors. Item 4. Principal Accountant Fees and Services. (a)--(d) Aggregate fees billed to the registrant for the last two fiscal years for professional services rendered by the registrant's principal accountant were as follows: 2003 2004 ------- ------- Audit Fees ................... $45,135 $45,290 Audit-Related Fees ........... $19,440 $15,266 Tax Fees ..................... $15,910 $15,800 All Other Fees ............... $ 0 $ 0 Audit Fees include amounts related to the audit of the registrant's annual financial statements and services normally provided by the principal accountant in connection with statutory and regulatory filings. Audit-Related Fees principally include a SAS No. 100 review of the registrant's Semiannual Shareholder Report. Tax Fees principally include tax compliance, tax advice, tax planning and preparation of tax returns. (e) (1) The registrant's audit committee pre-approves all audit services provided by the registrant's principal accountant for the registrant and all non-audit services provided by the registrant's principal accountant for the registrant, its investment adviser and any entity controlling, controlled by, or under common control with the investment adviser ("Adviser Affiliate") that provides ongoing services to the registrant, if the engagement by the investment adviser or Adviser Affiliate relates directly to the operations and financial reporting of the registrant. (2) No services included in (b) - (d) above were approved pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X. (f) Not Applicable. (g) The aggregate fees billed for the most recent fiscal year and the preceding fiscal year by the registrant's principal accountant for non-audit services rendered to the registrant, its investment adviser, and Adviser Affiliate that provides ongoing services to the registrant for 2004 and 2003 were $1,817,631 and $636,504, respectively. (h) Non-audit services rendered to the registrant's investment adviser and any Adviser Affiliate that were not pre-approved pursuant to Paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X were considered by the registrant's audit committee as to whether they were compatible with maintaining the principal accountant's independence. Item 5. Audit Committee of Listed Registrants Not Applicable. Item 6. Schedule of Investments. Not Applicable. Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies. Not applicable. Item 8. Portfolio Managers of Closed-End Management Investment Companies. Not applicable. Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers. Not Applicable. Item 10. Submission of Matters to a Vote of Security Holders. Not Applicable. Item 11. Controls and Procedures. (a) An evaluation was performed within 90 days of the filing of this report, under the supervision and with the participation of the registrant's management, including the President and Treasurer, of the effectiveness of the design and operation of the registrant's disclosure controls and procedures. Based on that evaluation, the registrant's management, including the President and Treasurer, concluded that the registrant's disclosure controls and procedures are effective. (b) There was no change in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting. Item 12. Exhibits. (a) (1) Code of Ethics applicable to its Principal Executive and Principal Accounting Officers pursuant to Section 406 of the Sarbanes-Oxley Act of 2002 attached hereto as Exhibit 99.406.Code of Ethics. (2) Certification pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) attached hereto as Exhibit 99.CERT. (3) Not applicable. (b) Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 attached hereto as Exhibit 99.906.CERT. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. SunAmerica Money Market Funds, Inc. By: /s/ Vincent M. Marra Vincent M. Marra President Date: March 11,2005 Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By: /s/ Vincent M. Marra Vincent M. Marra President Date: March 11,2005 By: /s/ Donna M. Handel Donna M. Handel Treasurer Date: March 11,2005 EX-99.406 2 dex99406.txt CODE OF ETHICS FOR PRINCIPAL EXECUTIVE AND PRINCIPAL ACCOUNTING OFFICERS Exhibit 99.406. Code of Ethics ANCHOR SERIES TRUST AIG SERIES TRUST SUNAMERICA EQUITY FUNDS SUNAMERICA FOCUSED SERIES, INC. SUNAMERICA INCOME FUNDS SUNAMERICA MONEY MARKET FUNDS, INC. SUNAMERICA SENIOR FLOATING RATE FUND, INC. (collectively, the "Funds") CODE OF ETHICS FOR PRINCIPAL EXECUTIVE AND PRINCIPAL ACCOUNTING OFFICERS I. INTRODUCTION The Boards of Directors/Trustees of the Funds (the "Boards") have adopted this Code of Ethics (this "Code") pursuant to Section 406 of the Sarbanes-Oxley Act applicable to the Funds' Principal Executive Officer and Principal Accounting Officer (the "Covered Officers" each of whom is set forth in Exhibit A) for the purpose of promoting: o Honest and ethical conduct, including the ethical handling of conflicts of interest between personal and professional relationships; o Full, fair, accurate, timely and understandable disclosure; o Compliance with applicable laws and governmental rules and regulations; o The prompt internal reporting of violations of the Code to an appropriate person or persons identified in the Code; and o Accountability for adherence to the Code. Each Covered Officer should adhere to a high standard of business ethics and should be sensitive to situations that may give rise to actual as well as apparent conflicts of interest. II. COVERED OFFICERS SHOULD HANDLE ETHICALLY ACTUAL AND APPARENT CONFLICTS OF INTEREST A "conflict of interest" occurs when a Covered Officer's private interest improperly interferes with the interests of, or his or her service to, a Trust. For example, a conflict of interest would arise if a Covered Officer, or a member of his or her family, receives improper personal benefits as a result of his or her position with the Trust. Certain conflicts of interest arise out of the relationships between Covered Officers and the Funds and already are subject to conflict of interest provisions in the Investment Company Act of 1940, as amended (the "Investment Company Act") and the Investment Advisers Act of 1 1940, as amended (the "Investment Advisers Act"). For example, Covered Officers may not individually engage in certain transactions (such as the purchase or sale of securities or other property) with the Funds because of their status as "affiliated persons" of the Funds. The compliance programs and procedures of the Funds and the Funds' investment adviser, AIG SunAmerica Asset Management Corp. ("SAAMCo"), are designed to prevent, or identify and correct, violations of these provisions. This Code does not, and is not intended to, repeat or replace these programs and procedures, and such conflicts fall outside of the parameters of this Code. Although typically not presenting an opportunity for improper personal benefit, conflicts may arise from, or as a result of, the contractual relationship between, the Funds and SAAMCo, of which the Covered Officers are also officers or employees. As a result, this Code recognizes that the Covered Officers will, in the normal course of their duties (whether formally for the Funds or for SAAMCo, or for both), be involved in establishing policies and implementing decisions that will have different effects on the Funds and SAAMCo. The participation of the Covered Officers in such activities is inherent in the contractual relationship between the Funds and SAAMCo and is consistent with the performance by the Covered Officers of their duties as officers of the Funds. Thus, if performed in conformity with the provisions of the Investment Company Act and the Investment Advisers Act, such activities will be deemed to have been handled ethically. In addition, it is recognized by the Boards that the Covered Officers may also be officers or employees of other investment companies advised by SAAMCo. In particular, each Covered Officer must: o Not use his or her personal influence or personal relationships to influence investment decisions or financial reporting by a Trust whereby the Covered Officer would benefit personally to the detriment of the Trust; o Not cause a Trust to take action, or fail to take action, for the individual personal benefit of the Covered Officer rather than the benefit of the Trust; and o Report at least annually to the Ethics Committee any material transaction or relationship that could reasonably be expected to give rise to a conflict of interest. There are certain potential conflict of interest situations that should be discussed with the Ethics Committee if material. Examples of these include: o Service as a director on the board of any company; o The receipt of any non-nominal gifts; o The receipt of any entertainment from any company with which a Trust has current or prospective business dealings unless such entertainment is business-related, reasonable in cost, appropriate as to time and place, and not so frequent as to raise any question of impropriety; 2 o Any ownership interest in, or any consulting or employment relationship with, any of the Funds' service providers, other than SAAMCo, the Funds' principal underwriter or any affiliated person thereof; o A direct or indirect financial interest in commissions, transaction charges or spreads paid by a Trust for effecting portfolio transactions or for selling or redeeming shares other than an interest arising from the Covered Officer's employment, such as compensation or equity ownership. III. DISCLOSURE AND COMPLIANCE o Each Covered Officer should familiarize himself or herself with the disclosure requirements generally applicable to the Funds; o Each Covered Officer should not knowingly misrepresent, or cause others to misrepresent, facts about the Funds to others, whether within or outside the Funds, including to the Boards and auditors, or to governmental regulators and self-regulatory organizations; o Each Covered Officer should, to the extent appropriate within his or her area of responsibility, consult with other officers and employees of the Funds and SAAMCo with the goal of promoting full, fair, accurate, timely and understandable disclosure in the reports and documents that the Funds file with, or submit to, the SEC and in other public communications made by the Funds; and o It is the responsibility of each Covered Officer to promote compliance with the standards and restrictions imposed by applicable laws, rules and regulations. IV. REPORTING AND ACCOUNTABILITY Each Covered Officer must: o Upon adoption of the Code (or thereafter as applicable, upon becoming a Covered Officer), affirm in writing to the Boards that he or she has received, read and understands the Code; o Annually thereafter affirm to the Boards that he or she has complied with the requirements of the Code; o Not retaliate against any other Covered Officer or affiliated person of the Funds for reports of potential violations of this Code that are made in good faith; and o Notify the Ethics Committee promptly if he or she knows of any violation of this Code. Failure to do so is itself a violation of this Code. The Ethics Committee is responsible for applying this Code to specific situations in which questions are presented to it and has the authority to interpret this Code in any particular situation. The Ethics Committee will also consider waivers sought by the Covered Officers. 3 The Funds will act according to the following procedures in investigating and enforcing this Code: o The Ethics Committee will take all appropriate action to investigate any potential violations reported to it; o If, after such investigation, the Ethics Committee believes that no violation has occurred, the Ethics Committee is not required to take any further action; o If the Ethics Committee determines that a violation has occurred, it will consider appropriate action, which may include review of, and appropriate modifications to, applicable policies and procedures; notification to appropriate personnel of SAAMCo or its board; or a recommendation to dismiss the Covered Officer; o The Ethics Committee will be responsible for granting waivers, as appropriate; o The Ethics Committee will inform the Boards of violations or waivers of this Code; and o Any changes to or waivers of this Code will, to the extent required, be disclosed as provided by SEC rules. V. OTHER POLICIES AND PROCEDURES This Code shall be the sole Code of Ethics adopted by the Funds for purposes of Section 406 of the Sarbanes-Oxley Act and the rules and forms applicable to investment companies thereunder. Insofar as other policies or procedures of the Funds, SAAMCo, the Funds' principal underwriter or other service providers govern or purport to govern the behavior or activities of the Covered Officers who are subject to this Code, they are superseded by this Code to the extent that they overlap or conflict with the provisions of this Code. The Code of Ethics of the Funds, SAAMCo and the Funds' principal underwriter, under Rule 17j-1 of the Investment Company Act, and SAAMCo's more detailed policies and procedures set forth in the SAAMCo Compliance Procedures Manual are separate requirements applying to Covered Officers and others, and are not part of this Code. VI. AMENDMENTS Any amendments to this Code, other than amendments to Exhibit A, must be approved or ratified by a majority vote of the Boards. VII. CONFIDENTIALITY All reports and records prepared or maintained pursuant to this Code shall be considered confidential and shall be maintained and protected accordingly. Except as otherwise required by law or this Code, such matters shall not be disclosed to anyone other than the Funds, the Ethics Committee, SAAMCo and the Boards and their independent counsel. 4 VIII. INTERNAL USE The Code is intended solely for internal use by the Funds and does not constitute an admission, by or on behalf of the Funds, as to any fact, circumstance or legal conclusion. Date: August 7, 2003 EXHIBIT A Robert M. Zakem, as President of the Funds (Through December 1, 2004) Vincent Marra, as President of the Funds Donna M. Handel, as Treasurer of the Funds 5 EX-99.CERT 3 dex99cert.txt CERTIFICATION PURSUANT TO SECTION 302 Exhibit 99.Cert CERTIFICATION PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT I, Vincent M. Marra, certify that: 1. I have reviewed this report on Form N-CSR of SunAmerica Money Market Funds, Inc.; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepting accounting principles; (c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and (d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: February 15, 2005 /s/ Vincent M. Marra Vincent M. Marra President CERTIFICATION PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT I, Donna M. Handel, certify that: 1. I have reviewed this report on Form N-CSR of SunAmerica Money Market Funds, Inc.; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepting accounting principles; (c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and (d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: February 15, 2005 /s/ Donna M. Handel Donna M. Handel Treasurer EX-99.906CT 4 dex99906ct.txt CERTIFICATIONS PURSUANT TO SECTION 906 EXHIBIT 99.906.CERT. CERTIFICATIONS PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT Vincent M. Marra, President, and Donna M. Handel, Treasurer of SunAmerica Money Market Funds, Inc. (the "Registrant"), each certify to the best of his or her knowledge that: 1. The attached Form N-CSR report of the Registrant fully complies with the requirements of Sections 13(a) and 15(d) of the Securities Exchange Act of 1934; and 2. The information contained in such N-CSR report fairly represents, in all material respects, the financial conditions and results of operations of the Registrant as of, and for, the periods presented in the report. Dated: February 15, 2005 /s/ Vincent M. Marra Vincent M. Marra President /s/ Donna M. Handel Donna M. Handel Treasurer A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to the Registrant and will be retained by the Registrant and furnished to the Securities and Exchange Commission or its staff upon request. -----END PRIVACY-ENHANCED MESSAGE-----