-----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, TiXYMiibCi/HaAhQdWPTNTrjbX9MIXgLRbUYGBEvW9dTX7Q89vMeQB1Tww7xuxVV BP7sVB1k0/XzxxXVXJD8Wg== 0001193125-05-181378.txt : 20050907 0001193125-05-181378.hdr.sgml : 20050907 20050907143456 ACCESSION NUMBER: 0001193125-05-181378 CONFORMED SUBMISSION TYPE: N-CSRS PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20050630 FILED AS OF DATE: 20050907 DATE AS OF CHANGE: 20050907 EFFECTIVENESS DATE: 20050907 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-CSRS SEC ACT: 1940 Act SEC FILE NUMBER: 811-03807 FILM NUMBER: 051072514 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-CSRS 1 dncsrs.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: June 30, 2005 ------------------------- Item 1. Reports to Stockholders SunAmerica Money Market Funds, Inc., Semiannual Report at June 30, 2005. [GRAPHIC] SunAmerica Money Market Funds 2005 SEMIANNUAL REPORT [LOGO] AIG SunAmerica Mutual Funds June 30, 2005 SEMIANNUAL REPORT SUNAMERICA MONEY MARKET FUNDS SunAmerica Money Market (SMAXX) SunAmerica Municipal Money Market (NMAXX) Table of Contents PRESIDENT'S LETTER................. 1 EXPENSE EXAMPLE.................... 2 STATEMENT OF ASSETS AND LIABILITIES 4 STATEMENT OF OPERATIONS............ 5 STATEMENT OF CHANGES IN NET ASSETS. 6 FINANCIAL HIGHLIGHTS............... 7 PORTFOLIO OF INVESTMENTS........... 9 NOTES TO FINANCIAL STATEMENTS...... 15 DIRECTORS AND OFFICERS INFORMATION. 22 June 30, 2005 SEMIANNUAL REPORT President's Letter Dear Shareholders, We are pleased to present you with this semiannual shareholder report for the SunAmerica Money Market Fund and the SunAmerica Municipal Money Market Fund for the six-month period ending June 30, 2005. During this period, the economy and the markets were directly impacted by the direction of energy prices. After an impressive rally during the first three months of 2005, crude oil prices relinquished most of those gains during the seven-week period ending May 20th. This downturn was short-lived, however, as oil assumed its upward climb, peaking at $60.54 on June 27th. Meanwhile, monetary policy remains at the forefront. Over the six-month period, the Federal Reserve instituted four interest rate increases bringing the federal funds rate to 3.25%, raising the rate a cumulative 1%. While short-term rates have increased, the 10-year Treasury has had a different response. It ended the quarter at 3.92%, 31 basis points lower than where it stood at the beginning of the year. The Funds have responded to this rising short-term interest rate environment by adopting a defensive position, purchasing only high quality, highly-rated securities with shorter maturities. This strategy positions the funds to capitalize on reinvestment opportunities at higher rates. We remain diligent in the management of your assets, and thank you for your continued investment in our Funds. Sincerely, /s/ Peter A. Harbeck Peter A. Harbeck, President AIG SunAmerica Asset Management Corp. - -------- 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. SunAmerica Money Market Funds EXPENSE EXAMPLE -- June 30, 2005 -- (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 January 1, 2005 and held until June 30, 2005. 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 Ended June 30, 2005" 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 Ended June 30, 2005" 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 Ended June 30, 2005" 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 Ended June 30, 2005" 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 Ended June 30, 2005" 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 Ended June 30, 2005" 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 Ended June 30, 2005" 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. 2 SunAmerica Money Market Funds EXPENSE EXAMPLE -- June 30, 2005 -- (unaudited) (continued)
Actual Hypothetical ------------------------------------------------- ------------------------------------ Ending Ending Account Account Value Expenses Paid Value using Beginning Using Actual During the Beginning a Hypothetical 5% Account Value Return at Six Months Ended Account Value Assumed Return at at January 1, 2005 June 30, 2005 June 30, 2005 at January 1, 2005 June 30, 2005 ------------------ ------------- ---------------- ------------------ ----------------- Money Market Fund Class A................. $1,000.00 $1,009.06 $4.48 $1,000.00 $1,020.33 Class B................. $1,000.00 $1,004.74 $8.80 $1,000.00 $1,016.02 Class C ................ $1,000.00 $1,004.93 $8.60 $1,000.00 $1,016.22 Class I #............... $1,000.00 $1,009.74 $3.99 $1,000.00 $1,020.83 Municipal Money Market Fund Class A #............... $1,000.00 $1,006.99 $3.98 $1,000.00 $1,020.83 Class B #............... $1,000.00 $1,002.97 $8.00 $1,000.00 $1,016.81 Class C #............... $1,000.00 $1,003.08 $7.55 $1,000.00 $1,017.26
----------------- Expense Expenses Paid Ratio During the as of Six Months Ended June 30, June 30, 2005 2005* ---------------- -------- Money Market Fund Class A................. $4.51 0.90% Class B................. $8.85 1.77% Class C ................ $8.65 1.73% Class I #............... $4.01 0.80% Municipal Money Market Fund Class A #............... $4.01 0.80% Class B #............... $8.05 1.61% Class C #............... $7.60 1.52%
- -------- * Expenses are equal to the Fund's annualized expense ratio multiplied by the average account value over the period, multiplied by 181 days divided by 365 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 of 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 Six Months Ended June 30, 2005" and the "Expense Ratios" would have been higher. 3 SunAmerica Money Market Funds STATEMENT OF ASSETS AND LIABILITIES -- June 30, 2005 -- (unaudited)
Money Market Municipal Money Fund Market Fund -------------- --------------- ASSETS: Short-term investment securities, at value (unaffiliated)*........ $1,562,143,309 $ 86,092,244 Repurchase agreements (cost equals market value).................. 55,223,000 -- -------------- -------------- Total Investments............................................... 1,617,366,309 86,092,244 -------------- -------------- Cash.............................................................. 494 2,126,312 Receivable for: Fund shares sold................................................ 3,576,481 1,337,012 Dividends and interest.......................................... 1,263,235 391,999 Prepaid expenses and other assets................................. 30,923 9 Due from investment adviser for expense reimbursements/fee waivers 2,299 9,960 -------------- -------------- Total Assets.................................................... 1,622,239,741 89,957,536 -------------- -------------- LIABILITIES: Payable for: Fund shares redeemed............................................ 1,909,608 2,803,569 Investments purchased........................................... -- 2,129,121 Investment advisory and management fees......................... 624,442 24,749 Distribution and service maintenance fees....................... 232,836 11,359 Transfer agent fees and expenses................................ 341,686 19,090 Directors' fees and expenses.................................... 243,119 6,362 Other accrued expenses.......................................... 326,691 50,514 -------------- -------------- Total Liabilities............................................... 3,678,382 5,044,764 -------------- -------------- Net Assets..................................................... $1,618,561,359 $ 84,912,772 ============== ============== NET ASSETS REPRESENTED BY: Common stock, $.001 par value (10 billion shares authorized)...... $ 1,618,561 $ 84,912 Paid-in capital................................................... 1,616,847,755 84,827,279 -------------- -------------- 1,618,466,316 84,912,191 Accumulated undistributed net investment income (loss)............ 95,043 581 -------------- -------------- Net Assets..................................................... $1,618,561,359 $ 84,912,772 ============== ============== Class A: Net assets........................................................ $1,554,094,845 $ 83,885,788 Shares outstanding................................................ 1,554,091,508 83,885,080 Net asset value, offering and redemption price per share (excluding any applicable contingent deferred sales charge)...... $ 1.00 $ 1.00 ============== ============== Class B: Net assets........................................................ $ 35,674,512 $ 428,625 Shares outstanding................................................ 35,674,635 428,566 Net asset value, offering and redemption price per share (excluding any applicable contingent deferred sales charge)...... $ 1.00 $ 1.00 ============== ============== Class C: Net assets........................................................ $ 16,173,446 $ 598,359 Shares outstanding................................................ 16,174,326 598,371 Net asset value, offering and redemption price per share (excluding any applicable contingent deferred sales charge)...... $ 1.00 $ 1.00 ============== ============== Class I: Net assets........................................................ $ 12,618,556 $ -- Shares outstanding................................................ 12,620,822 -- Net asset value, offering and redemption price per share.......... $ 1.00 $ -- ============== ============== *Amortized cost of short-term investment securities (unaffiliated) $1,562,143,309 $ 86,092,244 ============== ==============
- -------- See Notes to Financial Statements 4 SunAmerica Money Market Funds STATEMENT OF OPERATIONS -- For the period ended June 30, 2005 -- (unaudited)
Money Market Municipal Money Fund Market Fund ------------ --------------- INVESTMENT INCOME: Interest (unaffiliated)................................................................ $23,004,472 $ 1,023,002 Dividends (unaffiliated)............................................................... -- 838 ----------- ----------- Total investment income............................................................. 23,004,472 1,023,840 ----------- ----------- EXPENSES: Investment advisory and management fees................................................ 3,908,073 164,108 Distribution and service maintenance fees Class A.............................................................................. 1,219,101 69,373 Class B.............................................................................. 174,326 2,280 Class C.............................................................................. 78,055 3,472 Transfer agent fees and expenses Class A.............................................................................. 1,838,553 103,224 Class B.............................................................................. 60,725 700 Class C.............................................................................. 22,886 848 Class I.............................................................................. 15,733 -- Registration fees Class A.............................................................................. 17,983 7,012 Class B.............................................................................. 7,351 2,356 Class C.............................................................................. 4,206 988 Class I.............................................................................. 3,651 -- Custodian fees......................................................................... 144,004 24,711 Reports to shareholders................................................................ 205,133 3,878 Audit and tax fees..................................................................... 24,347 24,343 Legal fees............................................................................. 18,814 1,977 Directors' fees and expenses........................................................... 53,582 2,903 Other expenses......................................................................... 28,788 2,806 ----------- ----------- Total expenses before fee waivers, expense reimbursements and custody credits.......... 7,825,311 414,979 Fees waived and expenses reimbursed by investment adviser and distributor (Note 3).. (2,553) (29,934) Custody credits earned on cash balances............................................. (2,548) (5,888) ----------- ----------- Net expenses........................................................................ 7,820,210 379,157 ----------- ----------- Net investment income (loss)........................................................... 15,184,262 644,683 ----------- ----------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS........................ $15,184,262 $ 644,683 =========== ===========
- -------- See Notes to Financial Statements 5 SunAmerica Money Market Funds STATEMENT OF CHANGES IN NET ASSETS
Money Market Fund ------------------------------ For the six months ended For the year June 30, ended 2005 December 31, (unaudited) 2004 -------------- -------------- INCREASE (DECREASE) IN NET ASSETS Operations: Net investment income (loss).......................................................... $ 15,184,262 $ 8,165,643 -------------- -------------- Net increase (decrease) in net assets resulting from operations......................... $ 15,184,262 $ 8,165,643 Distributions to shareholders from: Net investment income (Class A)....................................................... (14,800,091) (8,054,333) Net investment income (Class B)....................................................... (182,959) (30,639) Net investment income (Class C)+...................................................... (85,760) (14,024) Net investment income (Class I)....................................................... (119,275) (66,647) -------------- -------------- Total distributions to shareholders..................................................... (15,188,085) (8,165,643) -------------- -------------- Net increase (decrease) in net assets resulting from capital share transactions (Note 5) (83,105,264) (17,388,052) -------------- -------------- Total increase (decrease) in net assets................................................. (83,109,087) (17,388,052) ============== ============== Net Assets: Beginning of period..................................................................... 1,701,670,446 1,719,058,498 -------------- -------------- End of period*.......................................................................... $1,618,561,359 $1,701,670,446 ============== ============== *Includes accumulated undistributed net investment income (loss)........................ $ 95,043 $ 98,866 ============== ==============
Municipal Money Market Fund ------------------------------ For the six months ended For the year June 30, ended 2005 December 31, (unaudited) 2004 -------------- -------------- INCREASE (DECREASE) IN NET ASSETS Operations: Net investment income (loss).......................................................... $ 644,683 $ 366,908 -------------- -------------- Net increase (decrease) in net assets resulting from operations......................... $ 644,683 $ 366,908 Distributions to shareholders from: Net investment income (Class A)....................................................... (639,952) (364,223) Net investment income (Class B)....................................................... (1,371) (2,471) Net investment income (Class C)+...................................................... (3,360) (214) Net investment income (Class I)....................................................... -- -- -------------- -------------- Total distributions to shareholders..................................................... (644,683) (366,908) -------------- -------------- Net increase (decrease) in net assets resulting from capital share transactions (Note 5) (13,181,236) (19,134,111) -------------- -------------- Total increase (decrease) in net assets................................................. (13,181,236) (19,134,111) ============== ============== Net Assets: Beginning of period..................................................................... 98,094,008 117,228,119 -------------- -------------- End of period*.......................................................................... $ 84,912,772 $ 98,094,008 ============== ============== *Includes accumulated undistributed net investment income (loss)........................ $ 581 $ 581 ============== ==============
- -------- + Effective February 23, 2004, Class II shares were redesignated to Class C shares See Notes to Financial Statements 6 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 01/01/05-06/30/05(7) 1.000 0.010 (0.010) 1.000 0.91 1,554,095 0.90(5) 1.82(5) 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) 01/01/05-06/30/05(7) 1.000 0.005 (0.005) 1.000 0.47 35,675 1.77(4)(5) 0.94(4)(5) 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) 01/01/05-06/30/05(7) 1.000 0.005 (0.005) 1.000 0.49 16,173 1.73(4)(5) 0.99(4)(5) 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) 01/01/05-06/30/05(7) 1.000 0.010 (0.010) 1.000 0.97 12,619 0.80(4)(5) 1.96(4)(5)
- -------- (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 06/30/05(5) -------- -------- -------- -------- -------- ----------- 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 0.04
(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. (7)Unaudited + Effective February 23, 2004, Class II shares were redesignated as Class C shares See Notes to Financial Statements 7 SunAmerica Money Market Funds FINANCIAL HIGHLIGHTS -- (continued)
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 01/01/05-06/30/05(7) 1.000 0.007 (0.007) 1.000 0.70 83,886 0.80(3) 1.38(3) 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 01/01/05-06/30/05(7) 1.000 0.003 (0.003) 1.000 0.30 429 1.61(3) 0.54(3) 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 01/01/05-06/30/05(7) 1.000 0.003 (0.003) 1.000 0.31 598 1.52(3) 0.87(3)
- -------- (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 06/30/05(3) -------- -------- ----------- -------- -------- -------- ----------- Class A. 0.47% 1.18% 2.51% 0.20% 0.03% 0.00% 0.06% Class B. 0.46 1.18 2.59 1.25 1.03 0.87 0.96 Class C+ 0.41(3) 1.18 7.84 9.68 7.45 4.20 0.33
(6)The financial information for the periods prior to November 16, 2001 reflects the financial information for the North American Municipal Money Market Fund. (7)Unaudited + Effective February 23, 2004, Class II shares were redesignated as Class C shares See Notes to Financial Statements 8 SunAmerica Money Market Fund PORTFOLIO PROFILE -- June 30, 2005 -- (unaudited) Industry Allocation* Asset Backed/Multi-Asset......... 20.0% Finance.......................... 16.1 Asset Backed/Securities.......... 15.7 Asset Backed/Receivables......... 14.9 Foreign Banks.................... 11.9 Regional Banks................... 9.1 Diversified Financial Services... 6.8 Sovereign Agency................. 4.8 Municipalities................... 0.6 ---- 99.9% ==== Weighted average days to maturity 29.8
Credit Quality Allocation @# Government-Agency........... 8.2% A-1......................... 91.8 ----- 100.0% =====
- -------- * Calculated as a percentage of net assets. @ Source: Standard and Poors # Calculated as a percentage of total debt issues. 9 SunAmerica Money Market Fund PORTFOLIO OF INVESTMENTS -- June 30, 2005 -- (unaudited)
Principal Value Security Description Amount (Note 2) SHORT-TERM INVESTMENT SECURITIES -- 96.5% ASSET-BACKED COMMERCIAL PAPER -- 50.7% Amsterdam Funding Corp. 3.32% due 08/25/05*............... $25,000,000 $ 24,873,195 Apreco, LLC 3.10% due 07/12/05*............... 18,000,000 17,982,950 Barton Capital, LLC 3.13% due 08/02/05*............... 25,000,000 24,930,444 3.14% due 08/12/05*.............. 29,000,000 28,893,763 CAFCO, LLC 3.02% due 07/11/05*............... 25,000,000 24,979,028 3.13% due 08/03/05*.............. 25,000,000 24,928,271 CRC Funding, LLC 3.14% due 08/02/05*............... 30,000,000 29,916,267 3.23% due 08/11/05*.............. 25,000,000 24,908,035 Cancara Asset Securitization, Ltd. 3.06% due 07/05/05*............... 25,000,000 24,991,500 3.22% due 07/20/05*.............. 25,000,000 24,957,514 Charta, LLC 3.08% due 07/11/05*............... 25,000,000 24,978,611 3.31% due 09/13/05*.............. 25,000,000 24,829,903 Ciesco, LLC 3.02% due 07/08/05*............... 20,000,000 19,988,256 3.21% due 08/22/05*.............. 25,000,000 24,884,083 Edison Asset Securitization, LLC 3.16% due 08/05/05*............... 25,000,000 24,923,194 3.29% due 09/08/05*.............. 25,000,000 24,842,354 Galaxy Funding, Inc. 3.14% due 08/08/05*............... 25,000,000 24,917,139 Giro Funding U.S. Corp. 3.05% due 07/15/05*............... 25,000,000 24,970,347 3.36% due 07/07/05*.............. 25,000,000 24,986,000 Govco, Inc. 3.14% due 08/01/05*............... 25,000,000 24,932,403 3.37% due 09/16/05*.............. 30,000,000 29,783,758 Greyhawk Funding, LLC 3.13% due 08/02/05*............... 25,000,000 24,930,444 3.17% due 08/01/05*.............. 25,000,000 24,931,757 Preferred Receivables Funding 3.06% due 07/07/05*............... 25,000,000 24,987,250 3.25% due 07/21/05*.............. 25,000,000 24,954,861 Sheffield Receivables 3.33% due 07/08/05*............... 25,000,000 24,983,813 Surrey Funding Corp. 3.30% due 08/24/05*............... 25,000,000 24,876,250 Sydney Capital Corp. 3.09% due 07/14/05*............... 25,000,000 24,972,104 3.14% due 08/04/05*.............. 20,000,000 19,940,689 Windmill Funding Corp. 3.14% due 08/03/05*............... 25,000,000 24,928,042 3.22% due 08/12/05*.............. 25,000,000 24,906,083 White Pine Finance, LLC 3.18% due 07/15/05*+.............. 25,000,000 24,998,628 3.22% due 07/18/05*+............. 25,000,000 25,000,000 ------------ Total Asset-Backed Commercial Paper (amortized cost $819,806,936).... 819,806,936 ------------ CERTIFICATES OF DEPOSIT -- 18.2% ABN AMRO Bank N.A. 3.18% due 08/08/05................ 25,000,000 25,000,000
Principal Value Security Description Amount (Note 2) --------------------------------------------------------------- BNP Paribas 3.26% due 08/31/05+.................. 25,000,000 $ 25,000,210 3.55% due 08/31/05+................. 25,000,000 25,000,247 Barclays Bank, PLC 3.10% due 07/08/05+.................. $25,000,000 25,000,024 3.12% due 07/12/05+................. 20,000,000 20,000,030 Citibank N.A. 3.32% due 09/14/05+.................. 25,000,000 25,000,000 Deutshe Bank 3.26% due 07/25/05+.................. 23,000,000 23,000,152 HBOS Treasury Services 3.13% due 08/11/05................... 24,000,000 24,000,135 3.41% due 09/28/05+................. 25,000,000 25,000,306 Royal Bank of Scotland 3.14% due 08/04/05................... 28,000,000 28,000,128 Wells Fargo Bank N.A. 3.27% due 08/08/05................... 25,000,000 25,000,000 UBS AG 3.40% due 09/28/05................... 25,000,000 25,000,000 ------------ Total Certificates of Deposit (amortized cost $295,001,232)....... 295,001,232 ------------ COMMERCIAL PAPER -- 13.5% Bear Stearns Co., Inc. 3.08% due 07/06/05................... 25,000,000 24,989,306 3.28% due 08/22/05.................. 25,000,000 24,881,556 Dexia Delaware, LLC 3.10% due 07/29/05................... 29,000,000 28,930,078 General Electric Capital Corp. 3.11% due 07/19/05................... 30,000,000 29,953,350 3.22% due 07/01/05.................. 30,000,000 30,000,000 Goldman Sachs Group, Inc. 3.33% due 07/01/05+.................. 25,000,000 25,000,000 Merrill Lynch & Co. 3.07% due 07/05/05................... 25,000,000 24,991,472 UBS Finance Delaware, LLC 3.39% due 07/01/05................... 30,000,000 30,000,000 ------------ Total Commercial Paper (amortized cost $218,745,762)....... 218,745,762 ------------ MEDIUM TERM NOTES -- 8.7% Beta Finance, Inc. 3.17% due 07/15/05*+................. 25,000,000 25,000,000 Sedna Finance, Inc. 3.19% due 07/15/05*+................. 22,000,000 22,000,000 3.27% due 07/25/05*+................ 25,000,000 25,000,000 Sigma Finance, Inc. 3.11% due 07/06/05*+................. 25,000,000 25,000,000 3.26% due 07/25/05*+................ 25,000,000 24,997,962 Wells Fargo & Co. 3.14% due 07/05/05+.................. 19,000,000 19,000,000 ------------ Total Medium Term Notes (amortized cost $140,997,962)....... 140,997,962 ------------ TAXABLE MUNICIPAL MEDIUM TERM NOTES -- 0.6% Illinois Student Assistance Commission 3.32% due 07/06/05+ (amortized cost $10,000,000)........ 10,000,000 10,000,000 ------------
10 SunAmerica Money Market Fund PORTFOLIO OF INVESTMENTS -- June 30, 2005 -- (unaudited) (continued)
Principal Security Description Amount Value (Note 2) U.S. GOVERNMENT AGENCIES -- 4.8% Agency for International Development Panama 3.48% due 07/05/05+................. $ 2,751,310 $ 2,760,542 -------------- Federal Home Loan Bank 3.36% due 09/28/05.................. 20,000,000 19,833,867 -------------- Federal National Mortgage Association 3.16% due 07/21/05+................. 23,000,000 22,998,171 3.21% due 07/01/05+................ 20,000,000 19,999,863 3.22% due 07/01/05+................ 12,000,000 11,998,974 -------------- 54,997,008 -------------- Total U.S. Government Agencies (amortized cost $77,591,417)....... 77,591,417 -------------- Total Short-Term Investment Securities -- 96.5% (amortized cost $1,562,143,309).... 1,562,143,309 -------------- REPURCHASE AGREEMENTS -- 3.4% State Street Bank & Trust Co. Joint Repurchase Agreement(1)....... 223,000 223,000 UBS Securities, LLC Joint Repurchase Agreement(1)....... 55,000,000 55,000,000 -------------- Total Repurchase Agreements (amortized cost $55,223,000)....... 55,223,000 --------------
Value Security Description (Note 2) ----------------------------------------------------------- TOTAL INVESTMENTS (amortized cost $1,617,366,309@)... 99.9% $1,617,366,309 Assets in excess of other liabilities 0.1 1,195,050 ----- -------------- NET ASSETS........................... 100.0% $1,618,561,359 ===== ==============
- -------- * 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 June 30, 2005, the aggregate value of these securities was $941,804,898, representing 58.2% of net assets. Unless otherwise indicated, these securities are not considered to be illiquid. @ At June 30, 2005, the cost of securities for federal income tax purposes was the same for book purposes. + Variable rate security -- the rate reflected is as of June 30, 2005; 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 11 SunAmerica Municipal Money Market Fund PORTFOLIO PROFILE -- June 30, 2005 -- (unaudited) State Allocation* Michigan......................... 10.7% Texas............................ 8.4 Illinois......................... 7.8 Ohio............................. 7.6 Missouri......................... 6.2 Florida.......................... 5.9 North Carolina................... 5.7 Pennsylvania..................... 5.4 Indiana.......................... 5.2 New Mexico....................... 4.2 North Dakota..................... 4.2 South Carolina................... 4.2 Alabama.......................... 3.5 Massachusetts.................... 3.5 Colorado......................... 3.3 Arizona.......................... 2.9 Wisconsin........................ 2.4 Georgia.......................... 2.1 Iowa............................. 2.1 Nebraska......................... 1.8 Washington....................... 1.8 Delaware......................... 1.7 Kansas........................... 0.6 District of Columbia............. 0.1 Registered Investment Companies.. 0.1 ----- 101.4% ===== Weighted average days to maturity 17.4
Credit Quality Allocation @(1) A-1....... 82.6% Not Rated+ 17.4 ----- 100.0% =====
- -------- * Calculated as a percentage of net assets. @ Source: Standard and Poors + Represents debt issues that have either no rating, or the rating is unavailable from the data source. (1)Calculated as a percentage of total debt issues. 12 SunAmerica Municipal Money Market Fund PORTFOLIO OF INVESTMENTS -- June 30, 2005 -- (unaudited)
Principal Value Security Description Amount (Note 2) SHORT-TERM INVESTMENT SECURITIES -- 101.4% Alabama -- 3.5% Stevenson, Alabama Industrial Development Board Environmental Improvement (LOC -- JP Morgan Chase Bank) 2.40% due 07/06/05+............................ $3,000,000 $3,000,000 ---------- Arizona -- 2.9% Maricopa County, Arizona Industrial Development Authority, Series A (LOC -- Wells Fargo Bank N.A.) 2.40% due on 07/07/05+......................... 1,510,000 1,510,000 Maricopa County, Arizona Industrial Development Authority (LOC -- Harris Trust & Savings Bank) 2.42% due 07/07/05+............................ 925,000 925,000 ---------- 2,435,000 ---------- Colorado -- 3.3% Colorado Health Facilities Authority (LOC -- JP Morgan Chase Bank) 2.30% due 07/07/05+............................ 500,000 500,000 Colorado Springs, Colorado National Strength and Conditioning Assoc. (LOC -- Wells Fargo Bank N.A.) 2.40% due 07/07/05+............................ 1,495,000 1,495,000 Durango, Colorado Community Health & Human Services (LOC -- Wells Fargo Bank N.A.) 2.40% due 07/07/05+............................ 835,000 835,000 ---------- 2,830,000 ---------- Delaware -- 1.7% Delaware State Economic Development Authority 2.30% due 07/07/05+............................ 1,400,000 1,400,000 ---------- District of Columbia -- 0.1% District of Columbia, Trinity College (LOC -- Wachovia Bank N.A.) 2.29% due 07/07/05+............................ 100,000 100,000 ---------- Florida -- 5.9% Charlotte County, Florida Utility, Series B 2.30% due 07/07/05+............................ 990,000 990,000 Lakeland, Florida Energy Systems, Series A 2.31% due 07/06/05+............................ 2,000,000 2,000,000 Lakeland, Florida Energy Systems 2.31% due 07/06/05+............................ 2,000,000 2,000,000 ---------- 4,990,000 ---------- Georgia -- 2.1% Fulton County, Georgia Development Authority (LOC -- Wachovia Bank N.A.) 2.29% due 07/07/05+............................ 1,800,000 1,800,000 ---------- Illinois -- 7.8% Chicago, Illinois O'Hare International Airport, Series B (LOC -- Societe Generale) 2.29% due 07/06/05+............................ 845,000 845,000 Chicago, Illinois Waterworks (LOC -- Bank One N.A.) 2.23% due 07/06/05+............................ 500,000 500,000 Illinois Health Facilities Authority, Series B 2.34% due 07/07/05............................. 3,300,000 3,300,000
Principal Value Security Description Amount (Note 2) ----------------------------------------------------------------------- Illinois (continued) Warren County, Illinois Community Medical Center (LOC -- Wells Fargo Bank N.A.) 2.40% due 07/07/05+............................ $1,955,000 $1,955,000 ---------- 6,600,000 ---------- Indiana -- 5.2% Indiana Health Facility Financing Authority, Series I 2.26% due 07/06/05+............................ 2,525,000 2,525,000 Marion, Indiana Economic Development (LOC -- Bank of America N.A.) 2.30% due 07/06/05+............................ 1,900,000 1,900,000 ---------- 4,425,000 ---------- Iowa -- 2.1% Iowa Finance Authority, Series F (LOC -- Wells Fargo Bank N.A.) 2.30% due 07/07/05+............................ 1,100,000 1,100,000 Iowa Finance Authority Child Services, Series B (LOC -- Wells Fargo Bank N.A.) 2.40% due 07/07/05+............................ 370,000 370,000 Iowa Higher Education Loan Authority (LOC -- Wells Fargo Bank N.A.) 2.40% due 07/07/05+............................ 100,000 100,000 Storm Lake, Iowa Higher Education Facilities 2.45% due 07/07/05+............................ 200,000 200,000 ---------- 1,770,000 ---------- Kansas -- 0.6% Shawnee, Kansas Industrial Revenue (LOC -- JP Morgan Chase Bank) 2.57% due 07/01/05+............................ 500,000 500,000 ---------- Massachusetts -- 3.5% Woburn, Massachusetts Anticaption Notes 3.50% due 10/07/05............................. 3,008,557 3,008,557 ---------- Michigan -- 10.7% Detroit, Michigan Sewer Disposal System, Series C-1 2.25% due 07/07/05+............................ 1,000,000 1,000,000 Detroit, Michigan Sewer Disposal System, Series C-2 2.25% due 07/07/05+............................ 3,000,000 3,000,000 Michigan State, Department of Treasury, Series A 3.50% due 09/30/05+............................ 4,516,551 4,516,551 Michigan State Strategic Fund Ltd. Obligation (LOC -- Fifth Third Bank) 2.33% due 07/06/05+............................ 580,000 580,000 ---------- 9,096,551 ---------- Missouri -- 6.2% Missouri State Health & Educational Facilities Authority, Series C 2.30% due 07/01/05+............................ 2,100,000 2,100,000 Missouri Higher Education Student Loan Authority, Series B 2.35% due 07/06/05+............................ 1,500,000 1,500,000 St Louis, Missouri Planned Industrial Expansion Authority (LOC -- Bank of America N.A.) 2.35% due 07/06/05+............................ 1,700,000 1,700,000 ---------- 5,300,000 ----------
13 SunAmerica Municipal Money Market Fund PORTFOLIO OF INVESTMENTS -- June 30, 2005 -- (unaudited) (continued)
Principal Value Security Description Amount (Note 2) SHORT-TERM INVESTMENT SECURITIES (continued) Nebraska -- 1.8% Douglas County, Nebraska Solid Waste Disposal, Series A (LOC -- Wachovia Bank N.A.) 2.35% due 07/07/05+............................ $1,500,000 $1,500,000 ---------- New Mexico -- 4.2% Albuquerque, New Mexico Educational Facilities 2.33% due 07/06/05+............................ 3,600,000 3,600,000 ---------- North Carolina -- 5.7% Charlotte Mecklenburg Hospital Authority Health Care System, Series C 2.25% due 07/07/05+............................ 110,000 110,000 Charlotte, North Carolina Certificates of Participation, Series B 2.35% due 07/07/05+............................ 3,000,000 3,000,000 Charlotte, North Carolina Certificates of Participation, Series F 2.30% due 07/07/05+............................ 200,000 200,000 Charlotte, North Carolina Water & Sewer System, Series B 2.30% due 07/07/05+............................ 250,000 250,000 Durham, North Carolina Public Improvement 2.29% due 07/07/05+............................ 300,027 300,027 Greensboro, North Carolina Enterprise System, Series B 2.30% due 07/07/05+............................ 700,000 700,000 Mecklenburg County, North Carolina Certificates of Participation 2.35% due 07/07/05+............................ 250,000 250,000 ---------- 4,810,027 ---------- North Dakota -- 4.2% North Dakota State Housing Finance Agency, Series A 2.31% due 07/26/05+............................ 3,600,000 3,600,000 ---------- Ohio -- 7.6% Cleveland, Ohio Airport System, Series D (LOC -- WestLb AG) 2.31% due 07/06/05+............................ 2,845,000 2,845,000 Cleveland, Ohio Waterworks, Series L 2.30% due 07/07/05+............................ 195,000 195,000 Franklin County, Ohio Hospital, Series B (LOC -- Citibank N.A.) 2.27% due 07/07/05+............................ 3,395,000 3,395,000 ---------- 6,435,000 ---------- Pennsylvania -- 5.4% Delaware Valley, Pennsylvania Regional Financial Authority, Series A (LOC -- National Australia Bank) 2.28% due 07/06/05+............................ 300,000 300,000 Delaware Valley, Pennsylvania Regional Financial Authority, Series C (LOC -- National Australia Bank) 2.28% due 07/06/05+............................ 1,700,000 1,700,000 Pennsylvania State Higher Education Assistance Agency, Series B 2.33% due 07/06/05+............................ 1,400,000 1,400,000
Principal Value Security Description Amount (Note 2) ------------------------------------------------------------------------ Pennsylvania (continued) Pennsylvania State Turnpike Commission, Series A-1 2.32% due 07/06/05+.......................... $1,000,000 $ 1,000,000 Philadelphia, Pennsylvania Authority for Industrial Development (LOC -- GE Capital Corp.) 2.25% due 07/06/05+.......................... 200,000 200,000 ----------- 4,600,000 ----------- South Carolina -- 4.2% Piedmont Municipal Power Agency, Series B-1 2.30% due 07/06/05+.......................... 2,500,000 2,500,000 South Carolina Jobs Economic Development Authority (LOC -- Bank of America N.A.) 2.35% due 07/06/05+.......................... 1,100,000 1,100,000 ----------- 3,600,000 ----------- Texas -- 8.4% Brownsville, Texas Utility System, Series A 2.45% due 08/24/05+.......................... 2,000,000 2,000,000 Harris County, Texas Industrial Development Corp. 2.22% due 07/01/05+.......................... 2,500,000 2,500,000 Gulf Coast Waste Disposal Authority, Series A (LOC -- JP Morgan Chase Bank) 2.35% due 07/07/05+.......................... 100,000 100,000 Texas State Tax & Revenue Anticipation Notes 3.00% due 08/31/05........................... 2,500,791 2,500,791 ----------- 7,100,791 ----------- Washington -- 1.8% Port Seattle, Washington Industrial Development Corp. (LOC -- Citibank N.A.) 2.32% due 07/06/05+.......................... 1,500,000 1,500,000 ----------- Wisconsin -- 2.4% Wisconsin State Health & Educational Facilities Authority (LOC -- Citibank N.A.) 2.28% due 07/07/05+.......................... 2,000,000 2,000,000 ----------- Registered Investment Companies -- 0.1% SSGA Tax Free Money Market Fund............... 91,318 91,318 ----------- TOTAL SHORT-TERM INVESTMENT SECURITIES (amortized cost $86,092,244@)................. 101.4% 86,092,244 Liabilities in excess of other assets........... (1.4) (1,179,472) ---------- ----------- NET ASSETS...................................... 100.0% $84,912,772 ========== ===========
- -------- @ At June 30, 2005, the cost of securities for federal income tax purposes was the same for book purposes. + Variable rate security -- the rate reflected is as of June 30, 2005; maturity date reflects next reset date. LOC --Letter of Credit See Notes to Financial Statements 14 SunAmerica Money Market Funds NOTES TO FINANCIAL STATEMENTS -- June 30, 2005 -- (unaudited) 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 available with no front-end sales charge. A 1.00% contingent deferred sales charge ("CDSC") is imposed on shares sold within one year of original purchase and a 0.50% CDSC is imposed on shares sold after the first year and within the second year after purchase. Class B shares-- Class B shares are offered at their net asset value per share, without any front-end sales charge. However, there is a declining contingent deferred sales charge ("CDSC") on shares sold within six years of purchase. Class B shares will convert automatically to Class A shares approximately eight years after the purchase of such shares and at such time are no longer subject to a distribution fee. Class C shares-- Class C shares are offered at their net asset value per share, without any front-end sales charge. However, there is a contingent deferred sales charge of 1.00% on shares sold within 12 months of purchase. Class I shares-- Class I shares are offered at net asset value per share without any 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-1 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. 15 SunAmerica Money Market Funds NOTES TO FINANCIAL STATEMENTS -- June 30, 2005 -- (unaudited) (continued) Note 2. Significant Accounting Policies The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America 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 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 June 30, 2005, 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 0.22% $223,000
As of such date, the repurchase agreement in that joint account and the collateral therefore were as follows: State Street Bank & Trust Co., dated June 30, 2005, bearing interest at a rate of 2.65% per annum, with a principal amount of $99,830,000, a repurchase price of $99,837,349, and a maturity date of July 1, 2005. The repurchase agreement is collateralized by the following:
Interest Maturity Type of Collateral Rate Date Principal Amount Market Value - ------------------ -------- -------- ---------------- ------------ U.S. Treasury Bond 8.88% 08/15/17 $28,360,588 $28,927,800 U.S. Treasury Bond 8.13 08/15/19 71,469,412 72,904,874
In addition, at June 30, 2005, the following Fund held an undivided interest in a joint repurchase agreement with UBS Securities, LLC:
Percentage Principal Interest Amount ---------- ----------- Money Market Fund 15.71% $55,000,000
As of such date, the repurchase agreement in that joint account and the collateral therefore were as follows: UBS Securities, LLC, dated June 30, 2005, bearing interest at a rate of 2.90% per annum, with a principal amount of $350,000,000, a repurchase price of $350,028,194, and a maturity date of July 1, 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 3.63% 04/15/28 $ 79,473,000 $ 81,062,500 U.S. Treasury Inflation Index Bonds 3.88 04/15/29 163,602,000 166,875,000 U.S. Treasury Inflation Index Bonds 3.38 04/15/32 106,925,000 109,064,735
16 SunAmerica Money Market Funds NOTES TO FINANCIAL STATEMENTS -- June 30, 2005 -- (unaudited) (continued) Securities Transactions, Investment Income, Expenses, 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 Funds pay SAAMCo a monthly investment advisory and management fee calculated daily at the following annual percentages of each Fund's average daily net assets:
Management Assets Fees ---------------------------- ---------- Money Market Fund.......... $0 - $600 million 0.50% (greater than) $600 million 0.45% (greater than) $ 1.5 billion 0.40% Municipal Money Market Fund (greater than) $0 0.35%
The Municipal Money Market Fund is subadvised by AIG Global Investment Corp. ("AIGGIC") pursuant to a subadvisory agreement with SAAMCo. AIGGIC is an indirect wholly-owned subsidiary of AIG and an affiliate of SAAMCo. AIGGIC receives the following fees from SAAMCo., based upon the Fund's average daily net assets:
Sub-advisory Assets Fees --------------------------- ------------ Municipal Money Market Fund $0 - $200 million 0.25% (greater than) $200 million 0.20% (greater than) $500 million 0.15%
17 SunAmerica Money Market Funds NOTES TO FINANCIAL STATEMENTS -- June 30, 2005 -- (unaudited) (continued) 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.
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 1.70
SAAMCo has voluntarily agreed to waive fees or reimburse expenses for the period ended June 30, 2005 at the following percentages of each Fund's average net assets.
Fund Percentage - ---- ---------- Municipal Money Market Class A 0.06% Municipal Money Market Class B 0.08 Municipal Money Market Class C 0.17
For the period ended June 30, 2005, SAAMCo agreed to reimburse expenses as follows:
Fund - ---- Money Market Class I.......... $ 2,553 Municipal Money Market Class A 26,238 Municipal Money Market Class B 2,406 Municipal Money Market Class C 1,248
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 June 30, 2005, SACS received fees (see Statement of Operations) based upon the aforementioned rates. 18 SunAmerica Money Market Funds NOTES TO FINANCIAL STATEMENTS -- June 30, 2005 -- (unaudited) (continued) For the period ended June 30, 2005, SACS voluntarily reimbursed the following expenses:
Fund - ---- Municipal Money Market Class B $31 Municipal Money Market Class C 11
SACS 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 June 30, 2005, the proceeds received from redemptions are as follows:
Contingent Deferred Sales Charges --------------------------------- Fund Class A Class B Class C - ---- ------- -------- ------- Money Market.......... $6,250 $155,597 $9,437 Municipal Money Market -- 606 4
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 June 30, 2005, 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 Fund Expenses June 30, 2005 - ---- ---------- ------------- Money Market Class A.......... $1,788,015 $284,153 Money Market Class B.......... 42,613 6,556 Money Market Class C.......... 19,080 3,000 Money Market Class I.......... 13,355 2,267 Municipal Money Market Class A 101,748 15,336 Municipal Money Market Class B 557 77 Municipal Money Market Class C 848 143
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. The following details the tax basis distributions as well as the components of distributable earnings. 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 --
19 SunAmerica Money Market Funds NOTES TO FINANCIAL STATEMENTS -- June 30, 2005 -- (unaudited) (continued) 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
At 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 period ended June 30, 2005, and for the prior year were as follows:
Money Market Fund ------------------------------------------------------------------------------------------- Class A Class B Class C(1) ------------------------------ --------------------------- -------------------------- For the For the For the six months For the six months For the six months For the ended year ended year ended year June 30, ended June 30, ended June 30, ended 2005 December 31, 2005 December 31, 2005 December 31, (unaudited) 2004 (unaudited) 2004 (unaudited) 2004 ------------- --------------- ------------ ------------ ------------ ------------ Shares sold......... $ 447,452,416+ $ 1,032,086,849++ $ 13,376,302 $ 51,971,494 $ 16,899,914 $ 44,114,142 Reinvested dividends 14,731,624 8,038,526 170,954 27,583 79,414 12,541 Shares redeemed..... (538,439,117) (1,054,375,452) (20,309,917)+ (54,090,452)++ (17,790,590) (47,431,940) ------------- --------------- ------------ ------------ ------------ ------------ Net increase (decrease)......... $ (76,255,077) $ (14,250,077) $ (6,762,661) $ (2,091,375) $ (811,262) $ (3,305,257) ============= =============== ============ ============ ============ ============ Municipal Money Market Fund ------------------------------------------------------------------------------------------ Class A Class B Class C(1) ------------------------------ --------------------------- -------------------------- For the For the For the six months For the six months For the six months For the ended year ended year ended year June 30, ended June 30, ended June 30, ended 2005 December 31, 2005 December 31, 2005 December 31, (unaudited) 2004 (unaudited) 2004 (unaudited) 2004 ------------- --------------- ------------ ------------ ------------ ------------ Shares sold......... $ 92,327,810# $ 129,348,654## $ 312,290 $ 279,737 $ 1,693,665 $ 783,160 Reinvested dividends 638,450 364,275 1,220 2,416 896 170 Shares redeemed..... (106,454,353) (146,141,140) (381,764)# (2,953,009)## (1,319,450) (818,374) ------------- --------------- ------------ ------------ ------------ ------------ Net increase (decrease)......... $ (13,488,093) $ (16,428,211) $ (68,254) $ (2,670,856) $ 375,111 $ (35,044) ============= =============== ============ ============ ============ ============
------------------------- Class I ------------------------ For the For the six months year ended June ended 30, 2005 December 31, (unaudited) 2004 ----------- ------------ Shares sold......... $ 3,848,721 $10,886,039 Reinvested dividends 118,651 66,605 Shares redeemed..... (3,243,636) (8,693,987) ----------- ----------- Net increase (decrease)......... $ 723,736 $ 2,258,657 =========== =========== Shares sold......... Reinvested dividends Shares redeemed..... Net increase (decrease).........
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") - -------- + Includes automatic conversion of Class B shares in the amount of $1,845,120 to Class A shares. ++ 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 $259,990 to Class A shares. ## Includes automatic conversion of Class B shares in the amount of $4,801 to Class A shares. (1) Effective February 23, 2004, Class II shares were redesignated as Class C shares. 20 SunAmerica Money Market Funds NOTES TO FINANCIAL STATEMENTS -- June 30, 2005 -- (unaudited) (continued) 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 Directors' 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 Retirement Plan Liability Expense Payments --------------- --------------- --------------- Fund As of June 30, 2005 - ---- ----------------------------------------------- Money Market.......... $236,009 $8,581 $7,122 Municipal Money Market 5,952 493 107
Note 7. Interfund Lending Agreement Pursuant to exemptive relief granted by the Securities and Exchange Commission, the Funds are permitted to participate in an interfund lending program among investment companies advised by SAAMCo or an affiliate. The interfund lending program allows the participating Funds to borrow money from and loan money to each other for the temporary or emergency purposes. An interfund 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 period ended June 30, 2005, none of the Funds participated in the program. Note 8. Other Information On May 26, 2005, the New York Attorney General and the New York Superintendent of Insurance filed a civil complaint against American International Group, Inc. ("AIG") as well as its former Chairman and Chief Executive Officer and former Vice Chairman and Chief Financial Officer, in the Supreme Court of the State of New York. The complaint asserts claims under New York's Martin Act and Insurance Law, among others, and makes allegations concerning certain transactions entered into by AIG and certain of its subsidiaries, but in no case involving any subsidiary engaged in providing management or administrative services to the Funds. The complaint seeks disgorgement, injunctive relief, punitive damages and costs, among other things. AIG is the indirect parent company and an affiliated person of the AIG SunAmerica Asset Management Corp. ("Adviser"), AIG SunAmerica Capital Services, Inc. (the "Distributor") and AIG Global Investment Corp. (the "Subadviser"). Neither the Adviser, the Distributor, the Subadviser or their respective officers and directors nor the Funds have been named in the complaint, and the complaint does not seek any penalties against them. In the Adviser's view, the matters alleged in the lawsuit are not material in relation to the financial position of the Adviser, the Distributor or the Subadviser, or to their ability to provide their respective services to the Funds. Due to a provision in the law governing the operation of mutual funds, however, if the lawsuit results in an injunction being entered against AIG, then the Adviser, the Distributor and the Subadviser will need to obtain permission from the Securities and Exchange Commission to continue to service the Funds. While the Securities and Exchange Commission has granted this type of relief to others in the past in similar circumstances, there is no assurance that this permission would be granted. 21 SunAmerica Money Market Funds DIRECTORS AND OFFICERS INFORMATION -- June 30, 2005 -- (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.
Number of Position Term of Funds in Held With Office and Principal Fund Complex Other Name, Address SunAmerica Length of Occupations During Overseen by Directorships Held and Date of Birth* Complex Time Served(4) Past 5 years Director(1) by Director(2) - -------------------- ---------- -------------- ------------------- ------------ ------------------- Directors Jeffrey S. Burum Director 2004- Founder and CEO of 39 None DOB: February 27, present National Housing 1963 Development Corporation (January 2000 to present); Founder, Owner and Partner of Colonies Crossroads, Inc. (January 2000 to present); Owner and Managing Member of Diversified Pacific Development Group, LLC (June 1990 to present). Judith L. Craven Director 2001- Retired 79 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 79 Member of the Board DOB: December 30, present of Governors, 1938 Boston Stock Exchange (1985-Present); Samuel M. Eisenstat Chairman 1985- Attorney, solo 49 Director of North DOB: March 7, 1940 of the present practitioner; European Oil Board Royalty Trust. Stephen J. Gutman Director 1984- Associate, Corcoran 49 None DOB: May 10, 1943 present Group (Real Estate) (2003 to present); Partner and Member 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 88 None DOB: January 23, present Director, SAAMCo. 1954 (August 1995 to present); Director, AIG SunAmerica Capital Services, Inc. ("SACS") (August 1993 to present) President and CEO, AIG Advisor Group, Inc. (June 2004 to present)
22 SunAmerica Money Market Funds DIRECTORS AND OFFICERS INFORMATION -- June 30, 2005 -- (unaudited) (continued)
Number of Position Term of Funds in Held With Office and Principal Fund Complex Other Name, Address SunAmerica Length of Occupations During Overseen by Directorships Held and Date of Birth* Complex Time Served(4) Past 5 years Director(1) by Director(2) - ------------------- ---------- -------------- ------------------- ------------ ------------------- William J. Shea(5) Director 2004- President and CEO, 49 Chairman of the DOB: February 9, present Conseco, Inc. Board, Royal and 1948 (Financial SunAlliance, Services) U.S.A., Inc. (March (2001-2004); 2005 to present); Chairman of the Director, Boston Board of Centennial Private Holdings Technologies, Inc. (October 2004 to (1998 to 2001); present) Vice Chairman, Bank Boston Corporation (1993-1998) Officers 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, Chief Operating Officer and Chief Financial Officer, Carret & Co., LLC (June 2002 to February 2003); President and Chief Operating Officer, Bowne Digital Solutions (1999 to May 2002) Donna M. Handel Treasurer 2002- Senior Vice N/A N/A DOB: June 25, 1966 present President, SAAMCo (December 2004 to Present); Vice President, SAAMCo (1997 to December 2004), Assistant Treasurer (1993 to 2002)
- -------- * 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. (17 portfolios), SunAmerica Focused Alpha Growth Fund (1 fund), 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. 23 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. AIG SunAmerica Mutual Funds thank you for your continued support. 24 [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 U.S. 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. Once filed, Vincent M. Marra, AIG SunAmerica Capital the Fund's Form N-Q will President Services, Inc. be available without Donna M. Handel, Harborside Financial charge on the U.S. Treasurer Center Securities and Exchange J. Steven Neamtz, Vice 3200 Plaza 5 Commission's website at President Jersey City, NJ www.sec.gov. You can also Timothy P. Pettee, Vice 07311-4992 obtain cop-ies of Form President N-Q by (i) visiting the Brian Wiese, Vice Shareholder Servicing U.S. Securities and President Agent Exchange Commis-sion's Cynthia Gibbons, Vice AIG SunAmerica Fund Public Reference Room in President and Chief Services, Inc. Washington, DC Compliance Officer Harborside Financial (information on the Thomas Lynch, Secretary Center operation of the Public Gregory R. Kingston, 3200 Plaza 5 Reference Room may be Vice President and Jersey City, NJ obtained by calling Assistant Treasurer 07311-4992 1-800-SEC-0330); (ii) Corey Issing, Assistant sending your request and Secretary Custodian and Transfer a duplicating fee to the Agent U.S. Securities and State Street Bank and Exchange Commis-sion's Trust Company Public Reference Room, P.O. Box 419572 Washington, DC 20549-0102 Kansas City, MO or (iii) sending your 64141-6572 request electronically to publicinfo@sec.gov. VOTING PROXIES ON FUND PORTFOLIO SECURITIES This report is submitted A description of the solely for the general policies and proce-dures information of that the Fund uses to shareholders of the Fund. determine how to vote Distribution of this proxies relating to report to persons other secu-rities held in the than shareholders of the Fund's portfolio which is Fund is authorized only available in the Fund's in connection with a State-ment of Additional currently effective Information, may be prospectus, setting forth obtained without charge details of the Fund, upon re-quest, by calling which must precede or (800) 858-8850. This accompany this report. information is also available from the EDGAR The accompanying report database on the U.S. has not been audited by Secu-rities and Exchange independent auditors and Commission's website at accordingly no opinion http://www.sec.gov. has been ex-pressed thereon. 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, 2005 is available without charge, upon request, by calling (800) 858-8850 or on the U.S. Secu-rities and Exchange Commission's website at www.sec.gov.
25 [LOGO] AIG SunAmerica Mutual Funds Distributed by: AIG SunAmerica Capital Services, Inc. Harborside Financial Center 3200 Plaza 5 Jersey City, NJ 07311-4992 Investors should carefully consider the investment objectives, risks, charges and expenses of any mutual fund before investing. This and other important information is contained in the prospectus, which can be obtained from your financial adviser or from the AIG SunAmerica Sales Desk at 800-858-8850, ext. 6003. Read the prospectus carefully before you invest. Funds distributed by AIG SunAmerica Capital Services, Inc. www.sunamericafunds.com MMSAN-6/05 Item 2. Code of Ethics Not applicable. Item 3. Audit Committee Financial Expert. Not applicable. Item 4. Principal Accountant Fees and Services. Not applicable. Item 5. Audit Committee of Listed Registrants. Not applicable. Item 6. Schedule of Investments. Included in Item 1 to the Form. 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 (17 CFR 270.30a-3(d))) 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 contro1 over financial reporting. Item 12. Exhibits. (a) (1) Not applicable. (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: September 7, 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: September 7, 2005 By: /s/ Donna M. Handel ------------------- Donna M. Handel Treasurer Date: September 7, 2005 EX-99.CERT 2 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 accepted 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: August 19, 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 accepted 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: August 19, 2005 /s/ Donna M. Handel ------------------- Donna M. Handel Treasurer EX-99.906CERT 3 dex99906cert.txt CERTIFICATION 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: August 19, 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-----