-----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, FK/8oI90kBFT7595UsKIROusfjU/w1cot+AK8TElUo2D5iPfCkIoWHLcck9H+hVU dO0fJyy8AKnb7eZQe++NcA== 0001193125-07-197475.txt : 20070907 0001193125-07-197475.hdr.sgml : 20070907 20070907161232 ACCESSION NUMBER: 0001193125-07-197475 CONFORMED SUBMISSION TYPE: N-CSRS PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20070630 FILED AS OF DATE: 20070907 DATE AS OF CHANGE: 20070907 EFFECTIVENESS DATE: 20070907 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: 071106150 BUSINESS ADDRESS: STREET 1: HARBORSIDE FINANCIAL CENTER STREET 2: 3200 PLAZA FIVE CITY: JERSEY CITY STATE: NJ ZIP: 07311-4992 BUSINESS PHONE: 2013246300 MAIL ADDRESS: STREET 1: HARBORSIDE FINANCIAL CENTER STREET 2: 3200 PLAZA FIVE CITY: JERSEY CITY STATE: NJ ZIP: 07311-4992 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 0000724129 S000007637 Money Market C000020840 Class A C000020841 Class B C000020842 Class C C000020843 Class I 0000724129 S000007638 Municipal Money Market C000020844 Class A C000020845 Class B C000020846 Class C N-CSRS 1 dncsrs.txt SUNAMERICA MONEY MARKET FUNDS 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 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, 2007 ------------------------- Item 1. Reports to Stockholders [PHOTO] SEMI-ANNUAL REPORT 2007 AIG SUNAMERICA Money Market Funds LOGO June 30, 2007 SEMI-ANNUAL REPORT SUNAMERICA MONEY MARKET FUNDS, INC. SunAmerica Money Market Fund (SMAXX) SunAmerica Municipal Money Market Fund (NMAXX) Table of Contents SHAREHOLDERS' 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...... 16 June 30, 2007 SEMI-ANNUAL REPORT Shareholders' Letter Dear Shareholder: We are pleased to present you with this semi-annual shareholder letter for the SunAmerica Money Market Fund and the SunAmerica Municipal Money Market Fund. We would also like to take this opportunity to discuss the market conditions that have shaped the investment environment during the six-month period ended June 30, 2007. Although the Federal Reserve has left its key target unchanged since August 2006, monetary policy remains in the spotlight for a number of reasons. During the first quarter, the economy exhibited conflicting signs of inflation and recession. Although the period ended with higher-than-expected job growth, the Federal Reserve modified its language in a fashion that removed the bias toward further tightening--an acknowledgment that risks exist on both sides of the debate. Entering the second quarter of 2007, there had been much speculation that weakness in the housing market would lead to a slowdown in consumer spending, causing the Federal Reserve to cut interest rates. However, over the last three months, consumer spending has remained resilient while core inflation has been held in check, and the Federal Reserve kept the Federal Fund Rate steady at 5.25%. One key point to which investors should keep a keen eye is the emerging struggle between core inflation and headline inflation. While the May 2007 measurement of core inflation (excludes food and energy prices) brought the 12-month inflation rate below 2% and vindicated the Federal Reserve's recent steady rate policy, food and energy prices continue to increase. This may create pressure on the Federal Reserve to adopt headline inflation (includes food and energy prices) as its measuring stick for future policy decisions. Throughout the semi-annual period, both Funds remained invested in the highest quality of taxable and non-taxable money fund securities. In doing so, the Funds maintained their objectives of principal preservation and yield enhancement. 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 and CEO AIG SunAmerica Asset Management - -------- An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) 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. 1 SunAmerica Money Market Funds EXPENSE EXAMPLE -- June 30, 2007 -- (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 and contingent deferred sales charges and (2) ongoing costs, including management fees, distribution and service fees, and other Fund expenses. This Example set forth below 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, 2007 and held until June 30, 2007. 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, 2007" 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, 2007" 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, 2007" column does not include administrative fees that may apply to qualified retirement plan accounts. See the Funds' prospectus and/or your retirement plan documents for a full description of these fees. Had these fees been included, the "Expenses Paid During the Six Months Ended June 30, 2007" column would have been higher and the "Ending Account Value" 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 and 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, 2007" 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, 2007" column does not include administrative fees that may apply to qualified retirement plan accounts. See the Funds' prospectus and/or your retirement plan documents for a full description of these fees. Had these fees been included, the "Expenses Paid During the Six Months Ended June 30, 2007" column would have been higher and the "Ending Account Value" 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 the Fund's 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, 2007 -- (unaudited) (continued)
Actual Hypothetical ------------------------------------------------- ------------------------------------ Ending Ending Account Account Value Expenses Paid Value using Beginning Using Actual During the Beginning a Hypothetical 5% Account Value Returns at Six Months Ended Account Value Assumed Return at at January 1, 2007 June 30, 2007 June 30, 2007 at January 1, 2007 June 30, 2007 ------------------ ------------- ---------------- ------------------ ----------------- Money Market Fund Class A................. $1,000.00 $1,022.28 $4.46 $1,000.00 $1,020.38 Class B................. $1,000.00 $1,017.69 $9.00 $1,000.00 $1,015.87 Class C ................ $1,000.00 $1,017.84 $8.86 $1,000.00 $1,016.02 Class I#................ $1,000.00 $1,022.75 $4.01 $1,000.00 $1,020.83 Municipal Money Market Fund Class A#................ $1,000.00 $1,014.42 $3.95 $1,000.00 $1,020.88 Class B#................ $1,000.00 $1,009.89 $8.47 $1,000.00 $1.016.36 Class C#................ $1,000.00 $1,009.87 $8.47 $1,000.00 $1,016.36
----------------- Expense Expenses Paid Ratio During the as of Six Months Ended June 30, June 30, 2007 2007* ---------------- -------- Money Market Fund Class A................. $4.46 0.89% Class B................. $9.00 1.80% Class C ................ $8.85 1.77% Class I#................ $4.01 0.80% Municipal Money Market Fund Class A#................ $3.96 0.79% Class B#................ $8.50 1.70% Class C#................ $8.50 1.70%
- -------- * 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 your 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, 2007" and the "Expense Ratios" would have been higher. 3 SunAmerica Money Market Funds STATEMENT OF ASSETS AND LIABILITIES -- June 30, 2007 -- (unaudited)
Money Market Municipal Money Fund Market Fund --------------- --------------- ASSETS: Short-term investment securities, at value* (unaffiliated)........ $ 1,338,981,672 $ 110,732,321 Repurchase agreements (cost equals market value).................. 30,181,000 -- --------------- --------------- Total Investments............................................... $ 1,369,162,672 $ 110,732,321 --------------- --------------- Cash.............................................................. 135,035 35,675 Receivable for: Fund shares sold................................................ 2,955,265 909,480 Dividends and interest.......................................... 8,133,909 708,070 Prepaid expenses and other assets................................. 9,902 25,224 Due from investment adviser for expense reimbursements/fee waivers -- 2,274 --------------- --------------- Total Assets.................................................... 1,380,396,783 112,413,044 --------------- --------------- LIABILITIES: Payable for: Fund shares redeemed............................................ 9,611,006 -- Investment purchased............................................ 19,074,898 -- Investment advisory and management fees......................... 549,106 34,581 Distribution and service maintenance fees....................... 198,446 15,446 Transfer agent fees and expenses................................ 285,943 20,761 Due to investment adviser....................................... 2,389 -- Dividends payable............................................... 83,061 2,327 Directors' fees and expenses.................................... 239,564 6,234 Other accrued expenses.......................................... 283,610 18,710 --------------- --------------- Total Liabilities............................................... 30,328,023 98,059 --------------- --------------- Net Assets..................................................... $ 1,350,068,760 $ 112,314,985 =============== =============== NET ASSETS REPRESENTED BY: Common stock, $.001 par value (10 billion shares authorized)...... $ 1,350,076 $ 112,314 Paid-in capital................................................... 1,348,630,969 112,202,091 --------------- --------------- 1,349,981,045 112,314,405 Accumulated undistributed net investment income (loss)............ 87,715 580 --------------- --------------- Net assets..................................................... $ 1,350,068,760 $ 112,314,985 =============== =============== Class A: Net assets........................................................ $ 1,292,291,582 $ 111,321,716 Shares outstanding................................................ 1,292,294,898 111,321,009 Net asset value and redemption price per share (excluding any applicable contingent deferred sales charge)...... $ 1.00 $ 1.00 =============== =============== Class B: Net assets........................................................ $ 19,728,960 $ 297,895 Shares outstanding................................................ 19,729,669 297,836 Net asset value and redemption price per share (excluding any applicable contingent deferred sales charge)...... $ 1.00 $ 1.00 =============== =============== Class C: Net assets........................................................ $ 22,471,644 $ 695,374 Shares outstanding................................................ 22,472,616 695,386 Net asset value and redemption price per share (excluding any applicable contingent deferred sales charge)...... $ 1.00 $ 1.00 =============== =============== Class I: Net assets........................................................ $ 15,576,574 $ -- Shares outstanding................................................ 15,578,840 -- Net asset value and redemption price per share.................... $ 1.00 $ -- =============== =============== *Amortized cost of short-term investment securities (unaffiliated) $ 1,338,981,672 $ 110,732,321 =============== ===============
See Notes to Financial Statements 4 SunAmerica Money Market Funds STATEMENT OF OPERATIONS -- For the six months ended June 30, 2007 -- (unaudited)
Money Market Municipal Money Fund Market Fund ------------ --------------- INVESTMENT INCOME: Interest (unaffiliated)........................................................... $43,099,422 $1,942,096 Dividends (unaffiliated).......................................................... -- 950 ----------- ---------- Total investment income........................................................ 43,099,422 1,943,046 ----------- ---------- EXPENSES: Investment advisory and management fees........................................... 3,740,440 184,532 Distribution and service maintenance fees Class A......................................................................... 1,168,990 78,481 Class B......................................................................... 98,748 1,966 Class C......................................................................... 71,951 1,659 Transfer agent fees and expenses Class A......................................................................... 1,753,624 116,378 Class B......................................................................... 36,067 1,771 Class C......................................................................... 22,189 2,280 Class I......................................................................... 17,678 -- Registration fees Class A......................................................................... 20,147 10,416 Class B......................................................................... 6,554 4,883 Class C......................................................................... 6,070 5,032 Class I......................................................................... 6,159 -- Custodian and accounting fees..................................................... 154,561 11,567 Reports to shareholders........................................................... 170,407 3,756 Audit and tax fees................................................................ 7,136 7,136 Legal fees........................................................................ 16,324 2,335 Directors' fees and expenses...................................................... 50,649 2,558 Other expenses.................................................................... 10,782 1,643 ----------- ---------- Total expenses before fee waivers, expense reimbursements and custody credits.. 7,358,476 436,393 Fees waived and expenses reimbursed by investment adviser (Note 3)............. (921) (13,219) Custody credits earned on cash balances........................................ (5,978) (2,652) ----------- ---------- Net expenses................................................................... 7,351,577 420,522 ----------- ---------- Net investment income (loss)...................................................... 35,747,845 1,522,524 ----------- ---------- NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS................... $35,747,845 $1,522,524 =========== ==========
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 2007 December 31, (unaudited) 2006 -------------- -------------- INCREASE (DECREASE) IN NET ASSETS Operations: Net investment income (loss).......................................................... $ 35,747,845 $ 68,754,726 -------------- -------------- Net increase (decrease) in net assets resulting from operations......................... $ 35,747,845 $ 68,754,726 -------------- -------------- Distributions to shareholders from: Net investment income (Class A)....................................................... (34,706,726) (66,523,360) Net investment income (Class B)....................................................... (388,640) (942,063) Net investment income (Class C)....................................................... (285,782) (615,060) Net investment income (Class I)....................................................... (365,233) (675,707) -------------- -------------- Total distributions to shareholders..................................................... (35,746,381) (68,756,190) -------------- -------------- Net increase (decrease) in net assets resulting from capital share transactions (Note 5) (415,976,460) 119,460,172 -------------- -------------- Total increase (decrease) in net assets................................................. (415,974,996) 119,458,708 -------------- -------------- NET ASSETS: Beginning of year....................................................................... 1,766,043,756 1,646,585,048 -------------- -------------- End of year*............................................................................ $1,350,068,760 $1,766,043,756 ============== ============== *Includes accumulated undistributed net investment income (loss)........................ $ 87,715 $ 86,251 ============== ==============
Municipal Money Market Fund -------------------------- For the six months ended For the year June 30, ended 2007 December 31, (unaudited) 2006 ------------ ------------ INCREASE (DECREASE) IN NET ASSETS Operations: Net investment income (loss).......................................................... $ 1,522,524 $ 2,633,211 ------------ ------------ Net increase (decrease) in net assets resulting from operations......................... $ 1,522,524 $ 2,633,211 ------------ ------------ Distributions to shareholders from: Net investment income (Class A)....................................................... (1,514,503) (2,614,881) Net investment income (Class B)....................................................... (4,326) (10,057) Net investment income (Class C)....................................................... (3,695) (8,273) Net investment income (Class I)....................................................... -- -- ------------ ------------ Total distributions to shareholders..................................................... (1,522,524) (2,633,211) ------------ ------------ Net increase (decrease) in net assets resulting from capital share transactions (Note 5) 10,562,044 14,852,635 ------------ ------------ Total increase (decrease) in net assets................................................. 10,562,044 14,852,635 ------------ ------------ NET ASSETS: Beginning of year....................................................................... 101,752,941 86,900,306 ------------ ------------ End of year*............................................................................ $112,314,985 $101,752,941 ============ ============ *Includes accumulated undistributed net investment income (loss)........................ $ 580 $ 580 ============ ============
See Notes to Financial Statements 6 SunAmerica Money Market Funds FINANCIAL HIGHLIGHTS
MONEY MARKET FUND ----------------- Net Net Ratio 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 - - 12/31/02 $1.000 $0.010 $(0.010) $1.000 1.04%(4) $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 12/31/05 1.000 0.024 (0.024) 1.000 2.38 1,587,641 0.89 2.35 12/31/06 1.000 0.041 (0.041) 1.000 4.22 1,711,783 0.89 4.14 01/01/07-06/30/2007(6) 1.000 0.023 (0.023) 1.000 2.23 1,292,292 0.89(5) 4.45(5) Class B - - 12/31/02 $1.000 $0.003 $(0.003) $1.000 0.28%(4) $ 64,815 1.64%(3) 0.26%(3) 12/31/03 1.000 0.000 0.000 1.000 0.03 44,529 1.18(3) 0.03(3) 12/31/04 1.000 0.001 (0.001) 1.000 0.07 42,437 1.32(3) 0.06(3) 12/31/05 1.000 0.015 (0.015) 1.000 1.52 31,738 1.74 1.46 12/31/06 1.000 0.033 (0.033) 1.000 3.32 23,806 1.76 3.26 01/01/07-06/30/2007(6) 1.000 0.018 (0.018) 1.000 1.77 19,729 1.80(5) 3.54(5) Class C+ - - 12/31/02 $1.000 $0.003 $(0.003) $1.000 0.27%(4) $ 30,285 1.66%(3) 0.26%(3) 12/31/03 1.000 0.000 0.000 1.000 0.03 20,290 1.18(3) 0.03(3) 12/31/04 1.000 0.001 (0.001) 1.000 0.07 16,985 1.33(3) 0.06(3) 12/31/05 1.000 0.015 (0.015) 1.000 1.54 13,497 1.71 1.59 12/31/06 1.000 0.033 (0.033) 1.000 3.33 12,399 1.74 3.31 01/01/07-06/30/2007(6) 1.000 0.018 (0.018) 1.000 1.78 22,472 1.77(5) 3.57(5) Class I - - 12/31/02 $1.000 $0.011 $(0.011) $1.000 1.13%(4) $ 9,195 0.80%(3) 1.12%(3) 12/31/03 1.000 0.004 (0.004) 1.000 0.43 9,636 0.77(3) 0.43(3) 12/31/04 1.000 0.006 (0.006) 1.000 0.58 11,895 0.80(3) 0.59(3) 12/31/05 1.000 0.025 (0.025) 1.000 2.49 13,708 0.80(3) 2.49(3) 12/31/06 1.000 0.042 (0.042) 1.000 4.31 18,057 0.80(3) 4.26(3) 01/01/07-06/30/2007(6) 1.000 0.023 (0.023) 1.000 2.27 15,577 0.80(3)(5) 4.55(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)Net of the following expense reimbursements/waivers (based on average net assets):
12/31/02 12/31/03 12/31/04 12/31/05 12/31/06 06/30/07(5)(6) -------- -------- -------- -------- -------- -------------- Class B. 0.04% 0.51% 0.39% -- % -- % -- % Class C+ 0.04 0.53 0.39 -- -- -- Class I. 0.14 0.02 0.09 0.05 0.05 0.01
(4)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. (5)Annualized (6)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(3) net assets(3) - ---------------------- --------- ---------- ---------- ------ --------- -------- ------------- ------------- Class A - - 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 12/31/05 1.000 0.016 (0.016) 1.000 1.62 84,817 0.81 1.58 12/31/06 1.000 0.027 (0.027) 1.000 2.69 101,083 0.78 2.68 01/01/07-06/30/2007(5) 1.000 0.014 (0.014) 1.000 1.44 111,322 0.79(4) 2.89(4) Class B - - 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 12/31/05 1.000 0.008 (0.008) 1.000 0.81 520 1.62 0.80 12/31/06 1.000 0.018 (0.018) 1.000 1.77 536 1.69 1.77 01/01/07-06/30/2007(5) 1.000 0.011 (0.011) 1.000 0.99 298 1.70(4) 1.98(4) Class C+ - - 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 12/31/05 1.000 0.008 (0.008) 1.000 0.82 1,563 1.59 1.02 12/31/06 1.000 0.018 (0.018) 1.000 1.77 134 1.66 1.61 01/01/07-06/30/2007(5) 1.000 0.008 (0.008) 1.000 0.99 695 1.70(4) 2.00(4)
- -------- (1)Calculated based upon average shares outstanding. (2)Total return is not annualized and does not reflect sales load but does include expense reimbursements. (3)Net of the following expense reimbursements/waivers (based on average net assets):
12/31/02 12/31/03 12/31/04 12/31/05 12/31/06 06/30/2007(4)(5) -------- -------- -------- -------- -------- ---------------- Class A 0.20% 0.03% 0.00% 0.04% 0.00% -- % Class B 1.25 1.03 0.87 1.44 2.15 2.98 Class C+ 9.68 7.45 4.20 0.47 2.14 3.17
(4)Annualized (5)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, 2007 -- (unaudited) Industry Allocation* Foreign Banks....................... 20.3% Asset Backed/Receivables............ 16.1 Asset Backed/Securities............. 12.7 Finance............................. 10.3 Asset Backed/Multi-Asset............ 8.1 Finance -- Investment Bank/Brokerage 6.2 Diversified Financial Services...... 5.7 Regional Banks...................... 5.7 Money Center Banks.................. 5.3 Asset Backed/Finance................ 4.4 Repurchase Agreement................ 2.2 Commercial Banks.................... 2.1 Domestic Banks...................... 1.4 Municipalities...................... 0.7 Sovereign Agency.................... 0.2 ----- 101.4% ===== Weighted average days to maturity... 48.7
Credit Quality Allocation @# A-1......................... 97.8% Not Rated................... 2.2 ----- 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, 2007 -- (unaudited)
Principal Value Security Description Amount (Note 2) SHORT-TERM INVESTMENT SECURITIES -- 99.2% ASSET-BACKED COMMERCIAL PAPER -- 36.9% Amstel Funding Corp. 5.26% due 09/20/07*.............. $21,000,000 $ 20,754,533 Amsterdam Funding Corp. 5.23% due 07/13/07*.............. 15,000,000 14,976,029 Apreco LLC 5.23% due 07/05/07*.............. 23,000,000 22,989,976 5.27% due 09/21/07*.............. 22,000,000 21,739,383 Barton Capital LLC 5.30% due 07/13/07*.............. 3,100,000 3,094,980 Chariot Funding LLC 5.32% due 07/27/07*.............. 30,895,000 30,780,860 Ciesco LLC 5.37% due 07/02/07*.............. 15,000,000 15,000,000 CRC Funding LLC 5.36% due 07/02/07*.............. 20,000,000 20,000,000 Galaxy Funding, Inc. 5.24% due 07/25/07*.............. 26,000,000 25,913,041 5.24% due 08/29/07*.............. 13,000,000 12,890,251 Giro Funding US Corp. 5.30% due 07/23/07*.............. 30,000,000 29,907,250 5.38% due 07/02/07*.............. 25,000,000 25,000,000 Jupiter Securitization Co., LLC 5.29% due 07/13/07*.............. 26,000,000 25,957,974 Kitty Hawk Funding Corp. 5.25% due 07/06/07*.............. 21,000,000 20,987,517 Ranger Funding Co., LLC 5.30% due 07/16/07*.............. 30,000,000 29,938,167 Sheffield Receivables 5.29% due 07/13/07*.............. 23,500,000 23,462,051 5.31% due 07/19/07*.............. 14,000,000 13,964,895 5.38% due 07/09/07*.............. 18,000,000 17,981,188 Surrey Funding Corp. 5.27% due 08/13/07*.............. 35,000,000 34,785,012 Sydney Capital Corp. 5.27% due 09/17/07*.............. 22,000,000 21,752,252 5.31% due 07/12/07*.............. 25,500,000 25,462,387 White Pine Finance LLC 5.27% due 09/17/07*.............. 22,000,000 21,752,017 Windmill Funding Corp. 5.25% due 08/03/07*.............. 19,000,000 18,911,333 ------------ Total Asset-Backed Commercial Paper (amortized cost $498,001,096).... 498,001,096 ------------ CERTIFICATES OF DEPOSIT -- 25.4% BNP Paribas 5.29% due 11/05/07............... 5,000,000 4,998,592 5.31% due 07/09/07............... 36,000,000 36,000,000 Calyon NY 5.31% due 09/26/07+.............. 5,500,000 5,499,736 5.33% due 03/04/08............... 32,000,000 32,001,050 Citibank New York NA 5.32% due 09/20/07............... 20,000,000 20,000,000 First Tennessee Bank 5.29% due 07/16/07............... 15,000,000 15,000,000 5.30% due 08/16/07............... 20,500,000 20,500,000
Principal Value Security Description Amount (Note 2) -------------------------------------------------------- Fortis Bank 5.27% due 07/30/07+........... $ 5,100,000 $ 5,098,753 5.28% due 08/02/07............ 25,000,000 24,998,918 5.31% due 02/19/08............ 25,500,000 25,500,789 HBOS Treasury Services 5.35% due 10/25/07+........... 20,000,000 20,000,000 5.36% due 10/22/07............ 23,000,000 23,001,032 Royal Bank of Scotland 5.26% due 07/16/07*+.......... 31,000,000 30,999,036 5.37% due 09/06/07*+.......... 18,000,000 18,008,804 Societe Generale 5.27% due 07/02/07+........... 10,000,000 10,000,000 Svenska Handelsbanken, Inc. 5.65% due 07/20/07............ 29,000,000 29,002,302 UBS AG Stamford 5.30% due 07/20/07............ 22,000,000 22,000,041 ------------ Total Certificates of Deposit (amortized cost $342,609,053). 342,609,053 ------------ COMMERCIAL PAPER -- 16.3% Bank of America Corp. 5.30% due 07/30/07+........... 23,000,000 23,001,613 5.41% due 09/05/07............ 18,000,000 17,831,975 Citibank NA 5.30% due 08/09/07............ 33,000,000 33,000,000 General Electric Capital Corp. 5.15% due 10/16/07............ 4,500,000 4,431,763 5.37% due 07/11/07+........... 21,000,000 21,012,041 HSBC Bank USA, Inc. 5.20% due 12/27/07............ 26,000,000 25,331,511 5.43% due 09/21/07+........... 16,000,000 16,004,614 Morgan Stanley 5.33% due 07/02/07+........... 37,000,000 37,000,000 Royal Bank of Canada 3.49% due 04/04/08+........... 19,000,000 18,997,093 UBS Finance LLC 5.20% due 07/05/07............ 24,000,000 23,989,596 Wells Fargo & Co. 5.40% due 09/10/07+........... 40,000 40,008 ------------ Total Commercial Paper (amortized cost $220,640,214). 220,640,214 ------------ MEDIUM TERM NOTES -- 19.7% Barclays Bank PLC 5.41% due 11/02/07............ 27,000,000 27,000,000 Beta Finance, Inc. 5.33% due 07/16/07*+.......... 36,000,000 36,001,670 Cheyne Finance LLC 5.30% due 07/06/07*+.......... 23,000,000 23,000,000 5.32% due 09/06/07*+.......... 37,000,000 36,999,166 HSBC Finance Corp. 5.50% due 08/09/07+........... 4,000,000 4,005,653 Merrill Lynch & Co., Inc. 5.33% due 07/16/07+........... 21,000,000 21,000,000 5.57% due 07/11/07+........... 2,500,000 2,500,128 Morgan Stanley Dean Witter Co. 5.48% due 07/18/07+........... 23,000,000 23,019,106 Sedna Finance, Inc. 5.32% due 07/16/07*........... 36,000,000 35,999,045
10 SunAmerica Money Market Fund PORTFOLIO OF INVESTMENTS -- June 30, 2007 -- (unaudited) (continued)
Principal Value Security Description Amount (Note 2) MEDIUM TERM NOTES (continued) Sigma Finance, Inc. 5.32% due 09/18/07*+..................... $37,000,000 $ 36,999,605 Wells Fargo & Co. 5.31% due 07/03/07+...................... 19,000,000 19,000,000 -------------- Total Medium Term Notes (amortized cost $265,524,373)........... 265,524,373 -------------- TAXABLE MUNICIPAL NOTES -- 0.7% Illinois Student Assistance Corp. Series D 5.35% due 07/04/07+...................... 10,000,000 10,000,000 -------------- U.S. GOVERNMENT AGENCIES -- 0.2% Agency for International Development Panama 5.76% due 07/03/07+...................... 2,201,048 2,206,936 -------------- Total Short-Term Investment Securities -- 99.2% (amortized cost $1,338,981,672)......... 1,338,981,672 --------------
Principal Value Security Description Amount (Note 2) ------------------------------------------------------------------ REPURCHASE AGREEMENT-- 2.2% UBS Securities, LLC Joint Repurchase Agreement (amortized cost $30,181,000)(1).... $30,181,000 $ 30,181,000 -------------- TOTAL INVESTMENTS (amortized cost $1,369,162,672)#... 101.4% 1,369,162,672 Liabilities in excess of other assets (1.4) (19,093,912) ----------- -------------- NET ASSETS........................... 100.0% $1,350,068,760 =========== ==============
- -------- * 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, 2007, the aggregate value of these securities was $716,008,422, representing 53.1% of net assets. Unless otherwise indicated, these securities are not considered to be illiquid. # At June 30, 2007, 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, 2007; maturity date reflects next reset date. (1)See Note 2 for details of Joint Repurchase Agreements. See Notes to Financial Statements 11 SunAmerica Municipal Money Market Fund PORTFOLIO PROFILE -- June 30, 2007 -- (unaudited) State Allocation* New York......................... 11.7% Illinois......................... 10.5 North Carolina................... 9.6 Michigan......................... 8.9 Florida.......................... 4.0 Texas............................ 4.0 Colorado......................... 3.7 Ohio............................. 3.6 New Mexico....................... 3.3 Wyoming.......................... 3.3 South Carolina................... 3.2 Kentucky......................... 3.1 Alabama.......................... 2.7 Indiana.......................... 2.6 Washington....................... 2.5 Alaska........................... 2.4 Arizona.......................... 2.4 Georgia.......................... 2.3 Louisiana........................ 2.3 North Dakota..................... 2.3 Delaware......................... 1.8 Pennsylvania..................... 1.7 Massachusetts.................... 1.6 Missouri......................... 1.6 Iowa............................. 1.2 Wisconsin........................ 1.0 Tennessee........................ 0.8 Idaho............................ 0.5 ---- 98.6% ==== Weighted average days to maturity 13.0
Credit Quality Allocation @# A-1......................... 76.7% SP-1........................ 11.3 Not Rated+.................. 12.0 ----- 100.0% =====
- -------- * Calculated as a percentage of net assets. @ Source: Standard and Poors # Calculated as a percentage of total debt issues. + Represents debt issues that have either no rating, or the rating is unavailable from the data source. 12 SunAmerica Municipal Money Market Fund PORTFOLIO OF INVESTMENTS -- June 30, 2007 -- (unaudited)
Principal Value Security Description Amount (Note 2) SHORT-TERM INVESTMENT SECURITIES -- 98.6% Alabama -- 2.7% Stevenson Alabama Industrial Development Board Environmental Improvement Revenue (LOC-JPMorgan Chase Bank) 3.83% due 07/04/07+.......................... $3,000,000 $3,000,000 ---------- Alaska -- 2.4% Alaska Housing Finance Corp. Series A 3.70% due 07/05/07+.......................... 2,730,000 2,730,000 ---------- Arizona -- 2.4% Arizona State University Revenue Series A 3.70% due 07/04/07+.......................... 400,000 400,000 Maricopa County, Arizona Industrial Development Authority Multi Family Housing Revenue Series A (LOC-Wells Fargo Bank N.A.) 3.83% due 07/05/07+.......................... 1,470,000 1,470,000 Maricopa County, Arizona Industrial Development Revenue (LOC-Harris Trust & Savings Bank) 3.79% due 07/05/07+.......................... 790,000 790,000 ---------- 2,660,000 ---------- Colorado -- 3.7% Colorado Housing & Finance Authority Series SFM, Class 1-B-2 3.73% due 07/04/07+.......................... 600,000 600,000 Colorado Housing & Finance Authority Series AA3 (LOC-Wells Fargo Bank N.A.) 3.73% due 07/04/07+.......................... 1,575,000 1,575,000 Colorado Springs, Colorado Revenue (LOC-Wells Fargo Bank N.A.) 3.83% due 07/05/07+.......................... 1,345,000 1,345,000 Durango, Colorado Revenue 3.83% due 07/05/07+.......................... 660,000 660,000 ---------- 4,180,000 ---------- Delaware -- 1.8% Delaware Valley Pennsylvania Regional Finance Authority Series C (LOC-Bayerische Landesbank) 3.76% due 07/04/07+.......................... 1,700,000 1,700,000 Delaware Valley Pennsylvania Regional Finance Authority Series A (LOC-Bayerische Landesbank) 3.76% due 07/04/07+.......................... 300,000 300,000 ---------- 2,000,000 ---------- Florida -- 4.0% Dade County, Florida Water & Sewer System Revenue 3.73% due 07/04/07+.......................... 3,800,000 3,800,000 Florida Keys Aqueduct Authority Revenue 3.74% due 07/04/07+.......................... 700,000 700,000 ---------- 4,500,000 ----------
Principal Value Security Description Amount (Note 2) ---------------------------------------------------------------------- Georgia -- 2.3% Municipal Electric Authority of Georgia Sub Series C (LOC-Bayerische Landesbank) 3.68% due 07/04/07+.......................... $2,540,000 $ 2,540,000 ----------- Idaho -- 0.5% Idaho Health Facilities Authority Revenue 3.94% due 07/02/07+.......................... 550,000 550,000 ----------- Illinois -- 10.5% Chicago Board of Education Series C 3.71% due 07/05/07+.......................... 80,000 80,000 Chicago O'Hare International Airport Revenue Series C 3.74% due 07/04/07+.......................... 2,800,000 2,800,000 Chicago O'Hare International Airport Revenue Class B (LOC-Societe Generale) 3.80% due 07/04/07+.......................... 845,000 845,000 Chicago, Illinois Waterworks Revenue (LOC-Bank One N.A.) 3.75% due 07/04/07+.......................... 500,000 500,000 Illinois Finance Authority Revenue (LOC-Bank One N.A.) 3.73% due 07/05/07+.......................... 2,900,000 2,900,000 Jackson-Union Counties Regional Port District Port Facilities Revenue (LOC-Wachovia Bank N.A.) 3.73% due 07/04/07+.......................... 1,300,000 1,300,000 State of Illinois Series B 3.73% due 07/04/07+.......................... 3,400,000 3,400,000 ----------- 11,825,000 ----------- Indiana -- 2.6% Marion, Indiana Economic Development Revenue (LOC-Bank of America N.A.) 3.73% due 07/04/07+.......................... 1,105,000 1,105,000 Reid Hospital and Health Care Service, Inc. Series A 3.74% due 07/04/07+.......................... 1,860,000 1,860,000 ----------- 2,965,000 ----------- Iowa -- 1.2% Iowa Higher Education Loan Authority Revenue (LOC-Wells Fargo Bank N.A.) 3.83% due 07/05/07+.......................... 100,000 100,000 Iowa Finance Authority Series F 3.80% due 07/05/07+.......................... 1,100,000 1,100,000 Storm Lake, Iowa Higher Education Facilities Revenue 3.88% due 07/05/07+.......................... 170,000 170,000 ----------- 1,370,000 -----------
13 SunAmerica Municipal Money Market Fund PORTFOLIO OF INVESTMENTS -- June 30, 2007 (unaudited) -- (continued)
Principal Value Security Description Amount (Note 2) SHORT-TERM INVESTMENT SECURITIES (continued) Kentucky -- 3.1% Breckinridge County, Kentucky Lease Program Revenue Series A (LOC-U.S. Bank N.A.) 3.73% due 07/04/07+........................... $2,385,000 $ 2,385,000 Breckinridge County, Kentucky Lease Program Revenue (LOC-U.S. Bank N.A.) 3.73% due 07/04/07+........................... 1,120,000 1,120,000 ----------- 3,505,000 ----------- Louisiana -- 2.3% State of Louisiana Series B 5.00% due 04/15/08+........................... 2,500,000 2,550,555 ----------- Massachusetts -- 1.6% Massachusetts Health & Educational Facilities Authority Revenue Series D 3.84% due 07/02/07+........................... 1,000,000 1,000,000 University of Massachusetts Building Authority Project Revenue 3.74% due 07/04/07+........................... 750,000 750,000 ----------- 1,750,000 ----------- Michigan -- 8.9% Detroit Michigan Water Supply System Revenue Series B 3.73% due 07/05/07+........................... 2,600,000 2,600,000 Detroit Michigan Water Supply System Series B2 3.73% due 07/05/07+........................... 200,000 200,000 Holt, Michigan Public Schools 3.75% due 07/05/07+........................... 4,000,000 4,000,000 Michigan Municipal Bond Authority Revenue (LOC-Bank of Nova Scotia) Series B-2 4.50% due 08/20/07 2,500,000 2,502,654 Michigan State Housing Development Authority Series C 3.76% due 07/04/07+........................... 700,000 700,000 ----------- 10,002,654 ----------- Missouri -- 1.6% Missouri Higher Education Loan Authority Series B 3.77% due 07/04/07+........................... 1,800,000 1,800,000 ----------- New Mexico -- 3.3% Albuquerque, New Mexico Educational Facilities Revenue 3.77% due 07/04/07+........................... 3,700,000 3,700,000 -----------
Principal Value Security Description Amount (Note 2) --------------------------------------------------------------------- New York -- 11.7% Jay Street Development Corp. Courts Facility Lease Revenue Series A-2 (LOC-Depfa Bank PLC) 3.88% due 07/02/07+......................... $2,185,000 $ 2,185,000 Metropolitan Transportation Authority Series D-1 3.68% due 07/05/07+......................... 1,950,000 1,950,000 Metropolitan Transportation Authority Series G-1 3.71% due 07/05/07+......................... 1,745,000 1,745,000 Metropolitan Transportation Authority Series G-2, 3.71% due 07/05/07+......................... 280,000 280,000 Metropolitan Transportation Authority Series G (LOC-BNP Paribas) 3.92% due 07/02/07+......................... 200,000 200,000 New York City Municipal Water Finance Authority Sub Series C-3 3.75% due 07/02/07+......................... 1,000,000 1,000,000 New York City Municipal Water Finance Authority Series CC-1 3.83% due 07/02/07+......................... 595,000 595,000 New York City Municipal Water Finance Authority Series C 3.90% due 07/02/07+......................... 1,000,000 1,000,000 New York City Transitional Finance Authority Series 1 3.84% due 07/02/07+......................... 900,000 900,000 New York, New York Series E (LOC-Bank of America) 3.70% due 07/05/07+......................... 645,000 645,000 New York, New York Sub Series F-4 (LOC-Royal Bank of Scotland) 3.70% due 07/05/07+......................... 605,000 605,000 New York, New York Sub Series A-10 (LOC-Morgan Guaranty Trust) 3.90% due 07/02/07+......................... 2,000,000 2,000,000 ----------- 13,105,000 ----------- North Carolina -- 9.6% Charlotte-Mecklenburg Hospital Authority Series C 3.69% due 07/05/07+......................... 460,000 460,000 Charlotte North Carolina Certificates of Participation Series B 3.73% due 07/05/07+......................... 400,000 400,000
14 SunAmerica Municipal Money Market Fund PORTFOLIO OF INVESTMENTS -- June 30, 2007 (unaudited) -- (continued)
Principal Value Security Description Amount (Note 2) SHORT-TERM INVESTMENT SECURITIES (continued) North Carolina (continued) City of Charlotte North Carolina 3.73% due 07/05/07+...................... $1,240,000 $ 1,240,000 County of Guilford North Carolina 3.73% due 07/05/07+...................... 1,065,000 1,065,000 Durham, North Carolina Public Improvement 3.75% due 07/05/07+...................... 300,000 300,012 Mecklenburg County, North Carolina Certificates of Participation 3.73% due 07/05/07+...................... 1,365,000 1,365,000 North Carolina Medical Care Commission Hospital Revenue Series B 3.74% due 07/04/07+...................... 1,670,000 1,670,000 North Carolina Medical Care Commission Hospital Revenue Series B 3.74% due 07/05/07+...................... 1,430,000 1,430,000 North Carolina Medical Care Commission Hospital System Revenue Series D 3.69% due 07/04/07+...................... 800,000 800,000 State of North Carolina Series D 3.72% due 07/04/07+...................... 1,465,000 1,465,000 Winston-Salem North Carolina Water And Sewer System Revenue Series C 3.75% due 07/04/07+...................... 590,000 590,000 ----------- 10,785,012 ----------- North Dakota -- 2.3% North Dakota State Housing Finance Agency Revenue Series A 3.81% due 07/04/07+...................... 2,545,000 2,545,000 ----------- Ohio -- 3.6% Cleveland, Ohio Airport System Revenue Series D (LOC-West LB AG) 3.80% due 07/04/07+...................... 2,650,000 2,650,000 Hamilton County, Ohio Hospital Facilities Series B (LOC-JPMorgan Chase Bank) 3.70% due 07/05/07+...................... 900,000 900,000 Franklin County, Ohio Hospital Revenue Series B (LOC-Citibank N.A.) 3.73% due 07/05/07+...................... 455,000 455,000 ----------- 4,005,000 ----------- Pennsylvania -- 1.7% Pennsylvania Turnpike Commission Series U 3.73% due 07/05/07+...................... 900,000 900,000 Pennsylvania Turnpike Commission Class A-1 3.78% due 07/04/07+...................... 1,000,000 1,000,000 ----------- 1,900,000 -----------
Principal Value Security Description Amount (Note 2) ---------------------------------------------------------------------- South Carolina -- 3.2% Piedmont Municipal Power Agency Electric Revenue Sub Series B-3 3.72% due 07/04/07+........................ $1,000,000 $ 1,000,000 Piedmont Municipal Power Agency Electric Revenue Sub Series B-1 3.72% due 07/04/07+........................ 2,645,000 2,645,000 ------------ 3,645,000 ------------ Tennessee -- 0.8% Jackson Energy Authority Wastewater System Revenue 3.73% due 07/05/07+........................ 850,000 850,000 ------------ Texas -- 4.0% State of Texas Tax & Revenue Anticipation 4.50% due 08/31/07......................... 4,500,000 4,506,749 ------------ Washington -- 2.5% Port of Seattle, Washington Industrial Development (LOC-Citibank N.A.) 3.81% due 07/04/07+........................ 1,500,000 1,500,000 Washington Health Care Facilities Authority Series C 3.74% due 07/04/07+........................ 1,350,000 1,350,000 ------------ 2,850,000 ------------ Wisconsin -- 1.0% Wisconsin Health & Educational Facilities Authority Series A 3.70% due 07/04/07+........................ 1,100,000 1,100,000 ------------ Wyoming -- 3.3% Wyoming Community Development Authority Series A2 3.73% due 07/05/07+........................ 3,415,000 3,415,000 Wyoming Community Development Authority Series A 3.73% due 07/05/07+........................ 350,000 350,000 ------------ 3,765,000 ------------ Registered Investment Company -- 0.0% SSgA Tax Free Money Market Fund............. 47,351 47,351 ------------ TOTAL SHORT-TERM INVESTMENT SECURITIES (amortized cost $110,732,321)*.............. 98.6% 110,732,321 Other assets less liabilities................. 1.4 1,582,664 ---------- ------------ NET ASSETS.................................... 100.0% $112,314,985 ========== ============
- -------- * At June 30, 2007, the cost of securities for federal income tax purpose was the same for book purposes. + Variable rate security - the rate reflected is as of June 30, 2007; maturity date reflects next reset date. LOC --Letter of Credit See Notes to Financial Statements 15 SunAmerica Money Market Funds NOTES TO FINANCIAL STATEMENTS -- June 30, 2007 -- (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. ("AIG SunAmerica" or "Adviser"), 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, except as may otherwise be provided in the Funds' registration statement. Class A, Class B, and Class C shares of each Fund has its own 12b-1 plan. 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 the obligation to indemnify others. The Funds' maximum exposure under these arrangements is unknown. Currently, however, the Funds expects the risk of loss to be remote. Note 2. Significant Accounting Policies The preparation of financial statements in accordance with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial 16 SunAmerica Money Market Funds NOTES TO FINANCIAL STATEMENTS -- June 30, 2007 -- (unaudited) (continued) 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: Pursuant to each 12b-1 plan, the Fund pays the Fund's distributor (the "Distributor") an account maintenance fee with respect to Class A, B & C shares and pursuant to the 12b-1 plan for the Class B and Class C shares, the Fund also pays the Distributor a distribution fee with respect to the Class B and C shares. The Class A shares do not pay a distribution fee. 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. At June 30, 2007, the following Fund held an undivided interest in a joint repurchase agreement with UBS Securities LLC:
Percentage Principal Fund Interest Amount ---- ---------- ----------- Money Market Fund................................. 15.09% $30,181,000
As of such date, the repurchase agreement in that joint account and the collateral therefore were as follows: UBS Securities LLC, dated June 30, 2007, bearing interest at a rate of 4.40% per annum, with a principal amount of $200,000,000 a repurchase price of $200,073,333, and a maturity date of July 2, 2007. The repurchase agreement is collateralized by the following:
Interest Maturity Principal Type of Collateral Rate Date Amount Market Value ------------------ -------- -------- ----------- ------------ U.S. Treasury Inflation Index Bonds....................... 2.00% 01/15/14 $77,345,000 $78,892,325 U.S. Treasury Inflation Index Bonds....................... 3.00 07/15/12 74,885,000 76,382,710 U.S. Treasury Inflation Index Bonds....................... 3.63 01/15/08 47,770,000 48,726,608
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 17 SunAmerica Money Market Funds NOTES TO FINANCIAL STATEMENTS -- June 30, 2007 -- (unaudited) (continued) 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. 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. New Accounting Pronouncements: On July 13, 2006, the Financial Accounting Standards Board (FASB) released FASB interpretation No. 48 "Accounting for Uncertainty in Income Taxes" ("FIN 48"). FIN 48 provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. FIN 48 requires the evaluation of tax positions taken or expected to be taken in the course of preparing the Fund's tax returns to determine whether the tax positions are "more-likely-than-not" of being sustained by the applicable tax authority. Adoption of FIN 48 is required for fiscal years beginning after December 15, 2006 and is to be applied to all open tax years as of the effective date. However, Registered Investment Companies are not required to implement FIN 48 until their last net asset value calculation in the first required financial statement reporting period for fiscal years beginning after December 15, 2006. Management has evaluated the implications of FIN 48 and determined there is no impact to the financial statements. In September 2006, the FASB issued Statement on Financial Accounting Standards No. 157, "Fair Value Measurements" (FAS 157). This standard clarifies the definition of fair value for financial reporting, establishes a framework for measuring fair value and requires additional disclosures about the use of fair value measurements. FAS 157 is effective for financial statements issued for fiscal years beginning after November 15, 2007 and interim periods within those fiscal years. As of November 30, 2006, the Fund does not believe the adoption of FAS 157 will impact the amounts reported in the financial statements, however, additional disclosures will be required about the inputs used to develop the measurements of fair value. Note 3. Investment Advisory and Management Agreement, Distribution and Service Agreement The Funds have an Investment Advisory and Management Agreement (the "Agreement") with AIG SunAmerica. Under the Agreement, AIG SunAmerica provides continuous supervision of the Funds and administers its corporate affairs, subject to general review by the Board of Directors (The "Board"). In connection therewith, AIG SunAmerica 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 AIG SunAmerica and its affiliates. The Funds pay AIG SunAmerica 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% next $900 million 0.45% (greater than) $ 1.5 billion 0.40% Municipal Money Market Fund... (greater than) $0 0.35%
18 SunAmerica Money Market Funds NOTES TO FINANCIAL STATEMENTS -- June 30, 2007 -- (unaudited) (continued) The Municipal Money Market Fund is subadvised by AIG Global Investment Corp. ("AIGGIC") pursuant to a subadvisory agreement with AIG SunAmerica. AIGGIC is an indirect wholly-owned subsidiary of AIG and an affiliate of AIG SunAmerica. AIGGIC receives the following fees from AIG SunAmerica, based upon the Fund's average daily net assets:
Sub-advisory Assets Fees --------------------------- ------------ Municipal Money Market Fund... $0 - $200 million 0.25% next $300 million 0.20% (greater than) $500 million 0.15%
AIG SunAmerica has contractually agreed to waive fees and/or reimburse expenses to the extent necessary to cap the Fund's annual fund operating expenses at the following percentages of each Fund's average net assets. The contractual expense waivers and fee reimbursements will continue indefinitely, subject to termination by the Directors, including a majority of the directors that are not deemed to be "interested persons" of the Funds as defined by Section 2(a)(19) of the Investment Company Act of 1940 (the "1940 Act") ("Independent Directors").
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
The Funds may also voluntarily waive fees and/or reimburse expenses. The voluntary waivers and/or reimbursements may be terminated at any time. The exact amount of the voluntary waivers and/or reimbursements may change on a day-to-day basis. For the period ended June 30, 2007, AIG SunAmerica agreed to reimburse expenses as follows:
Fund ---- Money Market Class I.............................. $ 921 Municipal Money Market Class A.................... 870 Municipal Money Market Class B.................... 6,512 Municipal Money Market Class C.................... 5,837
The Corporation on behalf of each, Fund, has entered into a Distribution Agreement with AIG SunAmerica Capital Services, Inc. ("AIG SACS" or the "Distributor"), an affiliate of the Adviser. The Funds have adopted a Distribution Plan (the "Plan") on behalf of each class of shares (other then Class I Shares (each a "Plan" or collectively the "Plans"), in accordance with the provisions of Rule 12b-1 under the 1940 Act hereinafter referred to as the "Class A Plan," the "Class B Plan," and the "Class C Plan." In adopting the Plans, 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 a particular class will not be used to subsidize the sale of shares of any other class. Both the Class B Plan and the Class C Plan, provide that the fund shall pay the Distributor distribution fee at the annual rate of 0.75% of the average daily net assets of the Fund's Class B and Class C shares respectively, 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 Plans also provide that each 19 SunAmerica Money Market Funds NOTES TO FINANCIAL STATEMENTS -- June 30, 2007 -- (unaudited) (continued) class of shares of the Funds other than Class I, shall pay the Distributor an account maintenance at the annual rate of up to 0.15% of the aggregate average daily net assets of such class of shares for payments to compensate the Distributor and certain securities firms for account maintenance activities. In this regard, some payments are used to compensate broker-dealers with account maintenance 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, 2007, AIG SACS received fees (see Statement of Operations) based upon the aforementioned rates. 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. AIG SACS has advised the Funds for the period ended June 30, 2007, the proceeds received from redemptions are as follows:
Contingent Deferred Sales Charges --------------------------------- Fund Class A Class B Class C ---- ------- ------- ------- Money Market....................... $-- $55,701 $4,523 Municipal Money Market............. -- 6,879 --
The Funds have entered into a Service Agreement with AIG SunAmerica Fund Services, Inc. ("AIG SAFS"), an affiliate of the Adviser. Under the Service Agreement, AIG SAFS performs certain shareholder account functions by assisting the Funds' transfer agent in connection with the services that it offers to the shareholders of the Fund. The Service Agreement, which permits the Funds to compensate AIG SAFS for services rendered based upon the annual rate of 0.22% of average daily net assets, is approved annually by the Trustees. For the period ended June 30, 2007, the Funds incurred the following expenses which are included in transfer agent fees and expenses payable line in the Statement of Asset and Liabilities and in transfer agent fees and expenses in the Statement of Operations to compensate AIG SAFS pursuant to the terms of the Service Agreement:
Payable at Fund Expenses June 30, 2007 ---- ---------- ------------- Money Market Fund Class A.......... $1,714,431 $254,231 Money Market Fund Class B.......... 24,139 6,845 Money Market Fund Class C.......... 17,588 4,335 Money Market Fund Class I.......... 17,678 2,979 Municipal Money Market Fund Class A 115,098 21,839 Municipal Money Market Fund Class B 481 107 Municipal Money Market Fund Class C 406 175
Note 4. Federal Income Taxes 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 dividends payable and cumulative pension expenses.
Distributable Earnings Tax Distributions ----------------------------------------- -------------------------------- For the year ended December 31, 2006 -------------------------------------------------------------------------- Long-term Gains/ Unrealized Long-Term Ordinary Capital Loss Appreciation Ordinary Capital Fund Income Carryover (Depreciation) Income Gains Tax Exempt - ---- -------- ---------------- -------------- ----------- --------- ---------- Money Market....................... $432,994 $ (318) $-- $68,756,190 $-- $ -- Municipal Money Market............. 34,495* (24,324) -- -- -- 2,633,211
- -------- * Tax exempt distributable earnings 20 SunAmerica Money Market Funds NOTES TO FINANCIAL STATEMENTS -- June 30, 2007 -- (unaudited) (continued) For Federal income tax purposes, the Funds indicated below have capital loss carryforwards, which expire in the year indicated, as of December 31, 2006, which are available to offset future capital gains, if any:
Capital Loss Carryforward ------------------------- Fund 2012 2013 2014 ---- ------ ------- ---- Money Market.................. $ -- $ -- $318 Municipal Money Market........ 8,072 16,252 --
Under the current law, capital losses related to securities and foreign currency realized after October 31 and prior to the Fund's fiscal year end may be deferred and treated as arising on the first day of the following year. For fiscal year ended December 31, 2006, the Money Market Fund elected to defer post October capital losses in the amount of $398. Note 5. Capital Share Transactions Transactions in each class of shares of the Funds, all at $1.00 per share, for the six months ended June 30, 2007 and for the prior year were as follows
SunAmerica Money Market Fund ---------------------------------------------------------------------------------------------- Class A Class B Class C ------------------------------ --------------------------- ------------------------- 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 2007 December 31, 2007 December 31, 2007 December 31, (unaudited) 2006 (unaudited) 2006 (unaudited) 2006 ------------- --------------- ------------ ------------ ----------- ------------ Shares sold............ $ 412,614,064+ $ 1,067,246,832++ $ 6,190,251 $ 21,345,812 $18,667,793 $ 35,756,424 Reinvested dividends... 34,315,411 65,808,620 363,225 876,052 269,971 556,078 Shares redeemed........ (866,421,868) (1,008,912,573) (10,630,407)+ (30,154,351)++ (8,864,702) (37,411,117) ------------- --------------- ------------ ------------ ----------- ------------ Net increase (decrease) $(419,492,393) $ 124,142,878 $ (4,076,931) $ (7,932,487) $10,073,062 $ (1,098,616) ============= =============== ============ ============ =========== ============
--------------------- Class I ------------------------ For the six months For the ended year June 30, ended 2007 December 31, (unaudited) 2006 ----------- ------------ Shares sold............ $ 5,346,717 $10,490,556 Reinvested dividends... 361,621 672,568 Shares redeemed........ (8,188,541) (6,814,727) ----------- ----------- Net increase (decrease) $(2,480,198) $ 4,348,397 =========== ===========
- -------- + Includes automatic conversion of Class B shares in the amount of $2,529,173 to Class A shares ++ Includes automatic conversion of Class B shares in the amount of $2,136,800 to Class A shares
SunAmerica Muni Money Market Fund ------------------------------------------------------------------------------------- Class A Class B Class C --------------------------- -------------------------- ------------------------- 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 2007 December 31, 2007 December 31, 2007 December 31, (unaudited) 2006 (unaudited) 2006 (unaudited) 2006 ------------ ------------- ----------- ------------ ------------ ------------ Shares sold............ $108,297,895# $ 253,437,415## $ 15,006 $ 421,681 $ 886,512 $ 535,044 Reinvested dividends... 1,510,838 2,607,633 4,311 10,009 3,129 3,913 Shares redeemed........ (99,570,329) (239,778,560) (256,985)# (416,224)## (328,333) (1,968,276) ------------ ------------- ----------- ------------ ------------ ----------- Net increase (decrease) $ 10,238,404 $ 16,266,488 $ (237,668) $ 15,466 $ 561,308 $(1,429,319) ============ ============= =========== ============ ============ ===========
- -------- # Includes automatic conversion of Class B shares in the amount of $67,866 to Class A shares ## Includes automatic conversion of Class B shares in the amount of $25,660 to Class A shares Note 6. Directors' Retirement Plan The Directors of the SunAmerica Money Market Funds, Inc. have adopted the AIG SunAmerica Disinterested Trustees' and Directors' Retirement Plan (the "Retirement Plan") effective January 1, 1993, as amended December 9, 2006, for the unaffiliated Directors. The Retirement Plan provides generally that an unaffiliated Director may become a participant ("Participant") in the Retirement Plan if he or she has at least 10 years of consecutive service as a Disinterested Director of any of the adopting AIG SunAmerica mutual funds (the "Adopting Funds") or has attained the age of 60 while a Director and completed five (5) consecutive years of service as a Director of any Adopting Fund (an "Eligible Director"). Pursuant to the Retirement Plan, an Eligible Director may receive benefits upon (i) his or her 21 SunAmerica Money Market Funds NOTES TO FINANCIAL STATEMENTS -- June 30, 2007 -- (unaudited) (continued) death or disability while a Director or (ii) the termination of his or her tenure as a Director, other than removal for cause from each of the Adopting Funds with respect to which he or she is an Eligible Director. As of each of the first 10 birthdays after becoming a Participant and on which he or she is both a Director and Participant, 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 Adopting 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 statement during prior years is added to each Eligible Director's account. The rights of any Participant to benefits under the Retirement Plan shall be an unsecured claim against the assets of the Adopting Funds. An Eligible Director may receive any benefits payable under the Retirement Plan, at his or her election, either in one lump sum or in up to 15 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 expenses 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, 2007 ---- ----------------------------------------------- Money Market.................. $250,992 $12,175 $6,883 Municipal Money Market........ 7,943 789 138
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 AIG SunAmerica 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, 2007, none of the Funds participated in the program. Note 8. Other Information On February 9, 2006, AIG, the parent company and an affiliated person of AIG SunAmerica, AIG SACS and AICGIC, announced that it had consented to the settlement of an injunctive action instituted by the Securities and Exchange Commission ("SEC"). In its complaint, the SEC alleged that AIG violated Section 17(a) of the Securities Act of 1933, as amended, Sections 10(b), 13(a), 13(b)(2) and 13(b)(5) of the Securities Exchange Act of 1934, as amended, and Rules 10b-5, 12b-20, 13a-1 and 13b2-1 promulgated thereunder, in connection with AIG's accounting and public reporting practices. The conduct described in the complaint did not involve any conduct of AIG or its subsidiaries related to their investment advisory or distribution activities with respect to the assets of the Funds. AIG, without admitting or denying the allegations in the complaint (except as to jurisdiction), consented to the entry of an injunction against further violations of the statutes referred to above. Absent exemptive relief granted by the SEC, the entry of such an injunction would prohibit AIG and its affiliated persons from, among other things, serving as an investment adviser of any registered investment management company or principal underwriter for any registered open-end investment company pursuant to Section 9(a) of the 1940 Act. Certain affiliated persons of AIG, including the Adviser, received a temporary order from the SEC pursuant to Section 9(c) of the 1940 Act with respect to the entry of the injunction, granting exemptive relief from the provisions of Section 9(a) of the 1940 Act. The temporary order permits AIG and its affiliated persons, including AIG's investment management subsidiaries, to serve as investment adviser, sub-adviser, principal underwriter or sponsor of the Funds. The Adviser expects that a permanent exemptive order will be granted, although there is no assurance the SEC will issue the order. Additionally, AIG and its subsidiaries reached a resolution of claims and matters under investigation with the United States Department of Justice ("DOJ"), the Attorney General of the State of New York ("NYAG") and the New York State Department of Insurance ("DOI"), regarding accounting, financial reporting and insurance brokerage practices 22 SunAmerica Money Market Funds NOTES TO FINANCIAL STATEMENTS -- June 30, 2007 -- (unaudited) (continued) of AIG and its subsidiaries, as well as claims relating to the underpayment of certain workers compensation premium taxes and other assessments. As a result of the settlements with the SEC, the DOJ, the NYAG and the DOI, AIG will make payments totaling approximately $1.64 billion. In addition, as part of its settlements, AIG has agreed to retain for a period of three years an Independent Consultant who will conduct a review that will include the adequacy of AIG's internal controls over financial reporting and the remediation plan that AIG has implemented as a result of its own internal review. Subject to receipt of permanent relief, the Adviser, Distributor and AIGGIC believe that the settlements are not likely to have a material adverse effect on their ability to perform their respective investment advisory or distribution services relating to the Funds. 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 24 [LOGO] AIG Sun America Mutual Funds Harborside Financial Center 3200 Plaza 5 Jersey City, NJ 07311-4992 Directors/Trustees VOTING PROXIES ON FUND most recent twelve month Samuel M. Eisenstat PORTFOLIO SECURITIES period ended June 30 is Peter A. Harbeck A description of the available, once filed Dr. Judith L. Craven policies and proce-dures with the U.S. Securities William F. Devin that the Fund uses to and Exchange Commission, Stephen J. Gutman determine how to vote without charge, upon Jeffrey S. Burum proxies relating to request, by calling (800) William J. Shea secu-rities held in the 858-8850 or on the U.S. Fund's portfolios which Secu-rities and Exchange Officers is available in the Commission's website at Vincent M. Marra, Fund's State-ment of http://www.sec.gov. President and Chief Additional Information, Executive Officer may be obtained without DISCLOSURE OF QUARTERLY Donna M. Handel, charge upon re-quest, by PORTFOLIO HOLDINGS Treasurer calling (800) 858-8850. The Fund is required to James Nichols, Vice This information is also file its com-plete President available from the EDGAR schedule of portfolio Timothy Pettee, Vice database on the U.S. holdings with the U.S. President Secu-rities and Exchange Securities and Exchange Cynthia Gibbons, Vice Commission's website at Commission for its first President and Chief http://www.sec.gov. and third fiscal quarters Compliance Officer on Form N-Q. The Fund's Gregory N. Bressler, DELIVERY OF SHAREHOLDER Forms N-Q are available Chief Legal Officer DOCUMENTS on the U.S. Securities and Secretary The Funds have adopted a and Exchange Commission's Nori L. Gabert, Vice policy that allows them website at President and to send only one copy of http://www.sec.gov. You Assistant Secretary a Fund's prospectus, can also review and Kathleen Fuentes, proxy material, annual obtain copies of the Assistant Secretary report and semi-annual Forms N-Q at the U.S. Corey A. Issing, report (the "shareholder Securities and Exchange Assistant Secretary documents") to Commission's Public Gregory R. Kingston, shareholders with Refer-ence Room in Vice President and multiple accounts Washington, DC Assistant Treasurer residing at the same (information on the Kathryn Pearce, ''household." This operation of the Public Assistant Treasurer practice is called Reference Room may be Matthew J. Hackethal, householding and reduces ob-tained by calling Anti-Money Laundering Fund expenses, which 1-800-SEC-0330). Compliance Office benefits you and other shareholders. Unless the This report is submitted Investment Adviser Funds receive solely for the general AIG SunAmerica Asset instructions to the information of Management Corp. con-trary, you will only shareholders of the Fund. Harborside Financial receive one copy of the Distribution of this Center shareholder documents. report to persons other 3200 Plaza 5 The Funds will continue than shareholders of the Jersey City, NJ to household the Fund is authorized only 07311-4992 share-holder documents in connection with a indefinitely, until we currently effective Distributor are instructed otherwise. prospectus, setting forth AIG SunAmerica Capital If you do nor wish to details of the Fund, Services, Inc. participate in which must precede or Harborside Financial householding please accompany this report. Center contact Shareholder 3200 Plaza 5 Services at (800) The accompanying report Jersey City, NJ 858-8850 ext. 6010 or has not been audited by 07311-4992 send a written request independent accountants with your name, the name and accordingly no Shareholder Servicing of your fund(s) and your opinion has been Agent account member(s) to AIG expressed thereon. AIG SunAmerica Fund SunAmerica Mutual Funds Services, Inc. c/o BFDS, P.O. Box Harborside Financial 219186, Kansas City MO, Center 64121-9186. We will 3200 Plaza 5 resume individual Jersey City, NJ mailings for your account 07311-4992 within thirty (30) days of receipt of your Custodian and Transfer request. Agent State Street Bank and PROXY VOTING RECORD ON Trust Company SUNAMERICA MONEY MARKET P.O. Box 419572 FUNDS Kansas City, MO Information regarding how 64141-6572 SunAmer-ica Money Market Funds voted proxies relating to securities held in SunAmer-ica Money Market Funds during the
25 Distributed by: AIG SunAmerica Capital Services, Inc. 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 investing. www.sunamericafunds.com MMSAN - 6/07 [LOGO] AIG Sun America Mutual Funds 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. There were no material changes to the procedures by which shareholders may recommend nominees to the Registrant's Board of Directors that were implemented after the Registrant last provided disclosure in response to the requirements of Item 407(c)(2)(iv) of Regulation S-K (17 CFR 229.407) (as required by 22(b)(15)) of Schedule 14A (17 CFR 240.14a- 101), or this Item 10. 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 as defined under Rule 30a-3(c) under the Investment Company Act of 1940 (17 CFR 270.3a-3(c)). 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 last 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) Certifications 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 Rule 30a-2(b) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) and 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, 2007 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, 2007 By: /s/ Donna M. Handel ------------------- Donna M. Handel Treasurer Date: September 7, 2007 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 most recent 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 17, 2007 /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 most recent 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 17, 2007 /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 17, 2007 /s/ Vincent M. Marra --------------- Vincent M. Marra President /s/ Donna M. Handel --------------- Donna M. Handel Treasurer -----END PRIVACY-ENHANCED MESSAGE-----