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
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(Address of principal executive offices) (Zip code)
Robert M. Zakem, ESQ.
Senior Vice President & General Counsel
AIG SunAmerica Asset Management Corp.
Harborside Financial Center,
3200 Plaza 5
Jersey City, NJ 07311
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(Name and address of agent for service)
Registrant's telephone number, including area code: (201) 324-6363
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Date of fiscal year end: December 31
--------------------------
Date of reporting period: June 30, 2003
-------------------------
Item 1. Reports to Shareholders
SunAmerica Money Market Funds Inc., Semiannual Report at June 30, 2003.
[GRAPHIC]
SunAmerica
THE RETIREMENT SPECIALIST
Money Market Funds
2003 SEMIANNUAL REPORT
[LOGO] AIG SunAmerica
Mutual Funds
Table of Contents
STATEMENT OF ASSETS AND LIABILITIES 1
STATEMENT OF OPERATIONS............ 2
STATEMENT OF CHANGES IN NET ASSETS. 3
FINANCIAL HIGHLIGHTS............... 4
PORTFOLIO OF INVESTMENTS........... 6
NOTES TO FINANCIAL STATEMENTS...... 11
DIRECTORS INFORMATION.............. 19
SunAmerica Money Market Funds
STATEMENT OF ASSETS AND LIABILITIES -- June 30, 2003 -- (unaudited)
Money
Market Municipal Money
Fund Market Fund
-------------- ---------------
ASSETS:
Investment securities, at value*............................ $1,870,010,773 $ 108,426,460
Cash........................................................ 852 1,182,226
Receivable for investments sold............................. -- 900,000
Receivables for fund shares sold............................ 5,386,676 994,234
Interest receivable......................................... 1,387,466 365,965
Due from advisor............................................ 419 16,759
Due from distributor........................................ 66,185 3,164
Prepaid expenses............................................ 50,140 690
-------------- --------------
Total assets.............................................. 1,876,902,511 111,889,498
-------------- --------------
LIABILITIES:
Payable for investments purchased........................... 49,991,250 2,692,233
Payable for fund shares repurchased......................... 21,739,891 1,794,555
Investment advisory and management fees payable............. 687,660 31,813
Distribution and service fees payable....................... 276,561 15,903
Accrued expenses............................................ 825,048 65,488
-------------- --------------
Total liabilities......................................... 73,520,410 4,599,992
-------------- --------------
Net assets............................................... $1,803,382,101 $ 107,289,506
============== ==============
NET ASSETS WERE COMPOSED OF:
Common stock, $.001 par value (10 billion shares authorized) $ 1,803,384 $ 107,289
Paid-in capital............................................. 1,801,479,850 107,181,552
-------------- --------------
1,803,283,234 107,288,841
Undistributed net investment income......................... 98,867 665
-------------- --------------
Net assets............................................... $1,803,382,101 $ 107,289,506
============== ==============
Class A:
Net assets.................................................. $1,712,054,739 $ 103,612,780
Shares outstanding.......................................... 1,712,054,080 103,612,000
Net asset value and redemption price per share
(excluding any applicable contingent deferred sales charge) $ 1.00 $ 1.00
============== ==============
Class B:
Net assets.................................................. $ 56,089,104 $ 3,494,952
Shares outstanding.......................................... 56,089,390 3,494,927
Net asset value and redemption price per share
(excluding any applicable contingent deferred sales charge) $ 1.00 $ 1.00
============== ==============
Class II:
Net assets.................................................. $ 26,120,767 $ 181,774
Shares outstanding.......................................... 26,121,523 181,777
Net asset value and redemption price per share
(excluding any applicable contingent deferred sales charge) $ 1.00 $ 1.00
============== ==============
Class I:
Net assets.................................................. $ 9,117,491 $ --
Shares outstanding.......................................... 9,119,755 --
Net asset value and redemption price per share.............. $ 1.00 $ --
============== ==============
*Amortized cost of investments.............................. $1,870,010,773 $ 108,426,460
============== ==============
See Notes to Financial Statements
1
SunAmerica Money Market Funds
STATEMENT OF OPERATIONS -- For the six months ended June 30, 2003 --
(unaudited)
Money Market Municipal Money
Fund Market Fund
------------ ---------------
NET INVESTMENT INCOME:
Interest Income............................................... $12,096,034 $ 620,766
----------- -----------
EXPENSES:
Investment advisory and management fees....................... 4,217,460 182,934
Transfer agent fees and expenses -- Class A................... 2,063,186 111,173
Transfer agent fees and expenses -- Class B................... 84,160 4,651
Transfer agent fees and expenses -- Class II.................. 40,550 802
Transfer agent fees and expenses -- Class I................... 10,048 --
Service fees -- Class A....................................... 1,309,075 75,617
Distribution and service fees -- Class B...................... 287,482 15,865
Distribution and service fees -- Class II..................... 135,210 836
Custodian fees................................................ 162,118 26,069
Registration fees -- Class A.................................. 59,187 13,831
Registration fees -- Class B.................................. 5,746 7,433
Registration fees -- Class II................................. 5,220 4,506
Registration fees -- Class I.................................. 5,215 --
Printing expense.............................................. 60,448 1,393
Directors' fees and expenses.................................. 67,346 2,754
Audit and tax expenses........................................ 23,510 19,821
Legal fees.................................................... 17,497 2,874
Miscellaneous expenses........................................ 1,086 753
----------- -----------
Total expenses before reimbursements and custody credits...... 8,554,544 471,312
Less: Expenses waived or reimbursed........................ (189,614) (34,253)
Custody credits earned on cash balances.............. (10,722) (512)
----------- -----------
Net expenses............................................... 8,354,208 436,547
----------- -----------
Net investment income (loss).................................. 3,741,826 184,219
----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM
OPERATIONS................................................... $ 3,741,826 $ 184,219
=========== ===========
See Notes to Financial Statements
2
SunAmerica Money Market Funds
STATEMENT OF CHANGES IN NET ASSETS
Municipal Money
Money Market Fund Market Fund
-------------------------------- ------------------------------
For the six For the six
months ended For the months ended For the
June 30, 2003 year ended June 30, 2003 year ended
(unaudited) December 31, 2002 (unaudited) December 31, 2002
-------------- ----------------- ------------- -----------------
INCREASE IN NET ASSETS
Operations:
Net investment income....................... $ 3,741,826 $ 13,593,056 $ 184,219 $ 255,650
-------------- -------------- ------------ -----------
Net increase (decrease) in net assets
resulting from operations................... $ 3,741,826 $ 13,593,056 $ 184,219 $ 255,650
Dividends and distributions to shareholders:
From net investment income (Class A)........ (3,703,011) (13,331,197) (181,450) (254,054)
From net investment income (Class B)........ (9,755) (156,928) (2,003) (7,293)
From net investment income (Class II)....... (4,933) (82,581) (101) (403)
From net investment income (Class I)........ (22,910) (92,863) -- --
-------------- -------------- ------------ -----------
Total dividends and distributions to
shareholders................................ (3,740,609) (13,663,569) (183,554) (261,750)
-------------- -------------- ------------ -----------
Increase (decrease) in net assets from
capital share transactions (Note 5)......... (52,726,455) 671,802,549 15,354,069 85,299,083
-------------- -------------- ------------ -----------
Total increase (decrease) in net assets...... (52,725,238) 671,732,036 15,354,734 85,292,983
============== ============== ============ ===========
Net Assets:
Beginning of period.......................... 1,856,107,339 1,184,375,303 91,934,772 6,641,789
-------------- -------------- ------------ -----------
End of period+............................... $1,803,382,101 $1,856,107,339 $107,289,506 $91,934,772
============== ============== ============ ===========
+Includes undistributed net investment
income (loss)............................... $ 98,867 $ 97,650 $ 665 $ --
============== ============== ============ ===========
See Notes to Financial Statements
3
SunAmerica Money Market Funds
FINANCIAL HIGHLIGHTS
MONEY MARKET FUND
-----------------
Ratio of Ratio of
Net Net expenses net
Asset Dividends Asset Net Assets to investment
Value Net from net Value end of average income to
Period beginning investment investment end of Total period net average
Ended of period income(1) income period Return(2) (000's) assets net assets
- -------------------- --------- ---------- ---------- -------- --------- ---------- -------- ----------
Class A
-------
12/31/98............ $1.000 $0.047 $(0.047) $1.000 4.80% $ 687,801 0.95%(3) 4.70%(3)
12/31/99............ 1.000 0.044 (0.044) 1.000 4.44 881,223 0.95(3) 4.36(3)
12/31/00............ 1.000 0.054 (0.054) 1.000 5.57 971,137 0.95 5.47
12/31/01............ 1.000 0.034 (0.034) 1.000 3.45 1,087,329 0.93 4.04
12/31/02............ 1.000 0.010 (0.010) 1.000 1.04(7) 1,751,812 0.90 0.99
06/30/03(8)......... 1.000 0.004 (0.004) 1.000 0.21 1,712,055 0.88(6) 0.42(6)
Class B
-------
12/31/98............ $1.000 $0.039 $(0.039) $1.000 3.96% $ 34,828 1.75%(3) 3.88%(3)
12/31/99............ 1.000 0.035 (0.035) 1.000 3.59 35,103 1.75(3) 3.53(3)
12/31/00............ 1.000 0.046 (0.046) 1.000 4.72 24,090 1.76 4.62
12/31/01............ 1.000 0.025 (0.025) 1.000 2.57 55,066 1.75 3.76
12/31/02............ 1.000 0.003 (0.003) 1.000 0.28(7) 64,815 1.64(5) 0.26(5)
06/30/03(8)......... 1.000 0.000 (0.000) 1.000 0.02 56,089 1.28(5)(6) 0.03(5)(6)
Class II
--------
12/31/98............ $1.000 $0.039 $(0.039) $1.000 3.94% $ 1,433 1.75%(5) 3.83%(5)
12/31/99............ 1.000 0.035 (0.035) 1.000 3.57 8,235 1.61 3.59
12/31/00............ 1.000 0.046 (0.046) 1.000 4.73 11,012 1.75(5) 4.67(5)
12/31/01............ 1.000 0.026 (0.026) 1.000 2.63 33,644 1.69(5) 3.51(5)
12/31/02............ 1.000 0.003 (0.003) 1.000 0.27(7) 30,285 1.66(5) 0.26(5)
06/30/03(8)......... 1.000 0.000 (0.000) 1.000 0.02 26,121 1.28(5)(6) 0.03(5)(6)
Class I
-------
11/16/01-12/31/01(4) $1.000 $0.002 $(0.002) $1.000 0.20% $ 8,336 0.80%(5)(6) 0.84%(5)(6)
12/31/02............ 1.000 0.011 (0.011) 1.000 1.13(7) 9,195 0.80(5) 1.12(5)
06/30/03(8)......... 1.000 0.006 (0.006) 1.000 0.25 9,117 0.80(5)(6) 0.51(5)(6)
- --------
(1)Calculated based upon average shares outstanding.
(2)Total return is not annualized and does not reflect sales load.
(3)Net of transfer agent expense credits of:
12/31/98 12/31/99
-------- --------
Class A. 0.03% 0.01%
Class B. 0.01% --
(4)Commencement of sales of respective class of shares
(5)Net of the following expense reimbursements (based on average net assets):
12/31/98 12/31/00 12/31/01 12/31/02 06/30/03(6)
-------- -------- -------- -------- -----------
Class B. -- % -- % -- % 0.04% 0.39%
Class II 2.55 0.18 0.05 0.04 0.42
Class I. -- -- 0.24 0.14 0.03
(6)Annualized
(7)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 (Note 3).
(8)Unaudited
See Notes to Financial Statements
4
SunAmerica Money Market Funds
FINANCIAL HIGHLIGHTS
MUNICIPAL MONEY MARKET FUND
---------------------------
Ratio of Ratio of
Net Net expenses net
Asset Dividends Asset Net Assets to investment
Value Net from net Value end of average income to
Period beginning investment investment end of Total period net average
Ended of period income(1) income period Return(2) (000's) assets(5) net assets(5)
- ----------------------- --------- ---------- ---------- ------ --------- ---------- --------- -------------
Class A
-------
10/31/99(6)............ $1.000 $0.020 $(0.020) $1.000 2.18% $ 3,651 1.05% 2.18%
10/31/00(6)............ 1.000 0.030 (0.030) 1.000 3.06 4,452 0.97 3.03
10/31/01(6)............ 1.000 0.020 (0.020) 1.000 2.39 3,972 0.78 2.39
11/01/01-12/31/01(6)... 1.000 0.013 (0.013) 1.000 2.05 3,829 0.62(3) 1.71(3)
12/31/02............... 1.000 0.009 (0.009) 1.000 0.92 88,050 0.78 0.71
06/30/03(7)............ 1.000 0.004 (0.004) 1.000 0.17 103,613 0.83(3) 0.36(3)
Class B
-------
10/31/99(6)............ $1.000 $0.010 $(0.010) $1.000 1.42% $ 2,841 1.80% 1.42%
10/31/00(6)............ 1.000 0.030 (0.030) 1.000 2.48 2,777 1.54 2.44
10/31/01(6)............ 1.000 0.020 (0.020) 1.000 2.39 2,613 0.78 2.38
11/01/01-12/31/01(6)... 1.000 0.008 (0.008) 1.000 1.97 2,618 1.13(3) 1.27(3)
12/31/02............... 1.000 0.002 (0.002) 1.000 0.24 3,714 1.39 0.16
06/30/03(7)............ 1.000 0.001 (0.001) 1.000 0.05 3,495 1.08(3) 0.12(3)
Class II
--------
08/10/00-10/31/00(4)(6) $1.000 $0.010 $(0.010) $1.000 0.71% $ 108 0.75%(3) 2.78%(3)
10/31/01(6)............ 1.000 0.020 (0.020) 1.000 2.40 136 0.78 2.33
11/01/01-12/31/01(6)... 1.000 0.008 (0.008) 1.000 1.97 195 1.15(3) 1.14(3)
12/31/02............... 1.000 0.002 (0.002) 1.000 0.24 170 1.39 0.19
06/30/03(7)............ 1.000 0.001 (0.001) 1.000 0.05 182 1.08(3) 0.11(3)
- --------
(1)Calculated based upon average shares outstanding.
(2)Total return is not annualized and does not reflect sales load.
(3)Annualized
(4)Commencement of sales of respective class of shares
(5)Net of the following expense reimbursements (based on average net assets):
10/31/99 10/31/00 10/31/01 12/31/01(5) 12/31/02 06/30/03(3)
-------- -------- -------- ----------- -------- -----------
Class A. 0.84% 0.47% 1.18% 2.51% 0.20% 0.02%
Class B. 0.89 0.46 1.18 2.59 1.25 0.96
Class II -- 0.41(3) 1.18 7.84 9.68 5.99
(6)The financial information for the periods prior to November 16, 2001
reflects the financial information for the North American Municipal Money
Market Fund.
(7)Unaudited
See Notes to Financial Statements
5
SunAmerica Money Market Fund
PORTFOLIO OF INVESTMENTS -- June 30, 2003 -- (unaudited)
Principal
Amount Value
Security Description (in thousands) Rate** Maturity (Note 2)
- ---------------------------------------------------------------------------------------------------------
BANK NOTES -- 1.1%
Wells Fargo Bank NA+
(amortized cost $20,000,000).................. $ 20,000 1.04% 07/01/03 $ 20,000,000
--------------
COMMERCIAL PAPER -- 57.6%
Amstel Funding Corp............................ 70,250 1.23-1.30 07/01/03-08/01/03 70,218,225
Bear Stearns Co., Inc.......................... 80,000 0.95-1.21 08/08/03-09/19/03 79,853,535
Ciesco, LP..................................... 30,000 1.22 07/08/03 29,992,883
Corporate Receivables Corp..................... 80,000 1.03-1.23 07/02/03-08/04/03 79,956,258
CXC, Inc....................................... 60,000 0.98 07/21/03-08/01/03 59,958,350
Delaware Funding Corp. (LOC -- JP Morgan)...... 30,000 1.18 07/14/03 29,987,217
Giro Funding U.S. Corp......................... 30,000 1.25 07/01/03 30,000,000
Govco, Inc..................................... 55,000 0.92-1.23 08/01/03-09/22/03 54,915,197
Greyhawk Capital Corp.......................... 75,000 0.95-1.20 07/03/03-07/25/03 74,971,778
Kittyhawk Funding, LLC (LOC -- Bank of America) 60,000 0.98-1.00 07/14/03-07/21/03 59,972,717
Old Line Funding Corp.......................... 30,000 1.00 07/22/03 29,982,500
Rabobank Nederland............................. 40,000 1.25 07/01/03 40,000,000
Sheffield Receivables Corp. (LOC -- Barclay)... 60,000 0.96-1.22 07/21/03-07/22/03 59,962,650
Sydney Capital Corp............................ 55,000 1.24 07/14/03 54,975,372
Tulip Funding Corp. (LOC -- ABN AMRO).......... 30,000 1.27 07/01/03 30,000,000
UBS Finance, LLC............................... 80,000 1.31 07/01/03 80,000,000
United Parcel Service of America, Inc.......... 30,000 1.18 07/31/03 29,970,500
White Pine Finance, LLC........................ 60,062 0.95-1.25 07/15/03-10/15/03 59,963,327
Windmill Funding Corp. (LOC -- ABN AMRO)....... 85,000 1.18-1.25 07/03/03-08/15/03 84,951,683
--------------
Total Commercial Paper
(amortized cost $1,039,632,192).............. 1,039,632,192
--------------
GOVERNMENT AGENCIES -- 35.3%
Agency for International Development Panama+... 3,302 1.75 07/01/03 3,314,897
Federal Farm Credit Bank....................... 25,000 1.00 07/02/04 24,991,250
Federal Home Loan Bank......................... 218,000 1.02-4.13 07/09/03-07/16/04 218,029,646
Federal Home Loan Mtg. Corp.................... 15,300 1.07 09/04/03 15,270,441
Federal National Mtg. Assoc.................... 294,600 0.89-1.43 07/07/03-07/23/04 294,296,847
Student Loan Marketing Assoc................... 20,000 1.41 02/24/04 20,000,000
Student Loan Marketing Assoc.+................. 60,000 0.88-0.90 07/01/03 60,000,000
--------------
Total Government Agencies
(amortized cost $635,903,081)................ 635,903,081
--------------
MEDIUM TERM NOTES -- 5.8%
Beta Finance, Inc.+............................ 30,000 1.06 07/01/03 30,000,000
Dorada Corp.+.................................. 30,000 1.06 07/01/03 30,000,000
Sigma Finance Corp.+........................... 45,000 1.07-1.09 07/01/03 44,998,500
--------------
Total Medium Term Notes
(amortized cost $104,998,500)................ 104,998,500
--------------
6
SunAmerica Money Market Fund
PORTFOLIO OF INVESTMENTS -- June 30, 2003 -- (unaudited) (continued)
Principal
Amount Value
Security Description (in thousands) Rate** Maturity (Note 2)
- ---------------------------------------------------------------------------------------------------------------------
TAXABLE MUNICIPAL MEDIUM TERM NOTES -- 1.0%
Illinois Student Assistance Corp.+................................... $10,000 1.03% 07/02/03 $ 10,000,000
Texas State Veterans Housing+........................................ 7,415 1.05 07/02/03 7,415,000
--------------
Total Taxable Municipal Medium Term Notes
(amortized cost $17,415,000)....................................... 17,415,000
--------------
REPURCHASE AGREEMENTS -- 2.9%
State Street Bank & Trust Co. Joint Repurchase Agreement (See Note 2) 2,762 0.96 07/01/03 2,762,000
UBS Warburg, LLC Joint Repurchase Agreement (See Note 2)............. 49,300 1.09 07/01/03 49,300,000
--------------
Total Repurchase Agreements
(amortized cost $52,062,000)....................................... 52,062,000
--------------
TOTAL INVESTMENTS
(amortized cost $1,870,010,773*)................................... 103.7% 1,870,010,773
Liabilities in excess of other assets................................ (3.7) (66,628,672)
------- --------------
NET ASSETS........................................................... 100.0% $1,803,382,101
======= ==============
- --------
+ Variable rate security; maturity date reflects the next reset date
* At June 30, 2003, the cost of securities for Federal income tax purposes
approximates the cost for book purposes.
** Rates shown are rates in effect as of June 30, 2003.
LOC-- Letter of Credit
Portfolio breakdown as a percentage of net assets (excluding Repurchase
Agreements) by industry
Government Agencies 35.3% Banking 3.3%
Receivable Company 18.0 Trade Receivables 3.3
Securities Holding Company 16.1 Loan Receivables 3.0
Finance 14.7 Industrial and Commercial 1.7
Trade and Term Receivables 4.4 Municipalities 1.0
-----
100.8%
=====
See Notes to Financial Statements.
7
SunAmerica Municipal Money Market Fund
PORTFOLIO OF INVESTMENTS -- June 30, 2003 -- (unaudited)
Principal
Amount Value
Security Description (in Thousands) Rate** Maturity (Note 2)
- -----------------------------------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS -- 101.1%
Arizona -- 4.2%
Arizona Health Facilities Authority+............................... $ 200 1.08% 07/02/03 $ 200,000
Maricopa County, Arizona Industrial Development Authority+
(LOC -- Harris Trust & Savings Bank).............................. 920 1.15 07/03/03 920,000
Mesa, Arizona Industrial Development Authority, Series B+.......... 3,350 1.03 07/02/03 3,350,000
-----------
4,470,000
-----------
California -- 0.3%
Irvine Ranch, California Water District, Series A+
(LOC -- Landesbank Hessen-Thuerigen).............................. 300 0.90 07/01/03 300,000
-----------
Colorado -- 3.4%
Colorado Educational & Cultural Facilities Authority+
(LOC -- Wells Fargo Bank N.A.).................................... 1,500 1.00 07/03/03 1,500,000
Colorado Health Facilities Authority+
(LOC -- KBC Bank N.V.)............................................ 1,150 1.05 07/02/03 1,150,000
Colorado Springs, Colorado Revenue+
(LOC -- Wells Fargo Bank N.A.).................................... 1,025 1.10 07/03/03 1,025,000
-----------
3,675,000
-----------
Delaware -- 0.6%
Delaware Transportation Authority.................................. 627 5.25 07/01/03 627,299
-----------
District of Columbia -- 0.9%
District of Columbia Revenue+
(LOC --Bank of America N.A.)...................................... 1,000 1.05 07/03/03 1,000,000
-----------
Florida -- 15.5%
Dade County, Florida Water and Sewer Systems+...................... 1,900 0.95 07/02/03 1,900,000
Jacksonville, Florida Health Facilities Authority+................. 4,700 0.95 07/02/03 4,700,000
Lakeland, Florida Energy Systems+.................................. 2,000 0.95 07/02/03 2,000,000
Lakeland, Florida Energy Systems, Series A+........................ 3,100 0.95 07/02/03 3,100,000
Palm Beach County, Florida+
(LOC -- Bank of America N.A.)..................................... 4,000 1.00 07/03/03 4,000,000
University South Florida Foundation, Inc.+
(LOC -- Wachovia Bank N.A.)....................................... 900 1.03 07/02/03 900,000
-----------
16,600,000
-----------
Georgia -- 1.9%
Hapeville, Georgia Industrial Development Authority+
(LOC -- Bank of America N.A.)..................................... 2,100 0.90 07/01/03 2,100,000
-----------
Illinois -- 9.8%
Chicago O'Hare International Airport, Series B+
(LOC -- Societe Generale)......................................... 845 1.10 07/02/03 845,000
Chicago O'Hare International Airport, Series A+
(LOC -- Bayerische Landesbank).................................... 4,300 1.02 07/02/03 4,300,000
Chicago, Illinois Water+
(LOC -- Bank One N.A.)............................................ 500 1.00 07/02/03 500,000
Illinois Health Facilities Authority, Series B+.................... 850 1.05 07/03/03 850,000
Jackson-Union Counties, Illinois Regional Port District+
(LOC -- First Union National Bank)................................ 4,000 1.03 07/02/03 4,000,000
-----------
10,495,000
-----------
Indiana -- 5.1%
Indiana Bond Bank, Series A........................................ 2,692 2.00 08/01/03 2,692,233
Indiana Secondary Market Education Loans, Inc., Series B+.......... 300 1.00 07/02/03 300,000
Indianapolis, Indiana Local Public Improvement Bond Bank, Series H. 2,501 1.25 08/29/03 2,501,083
-----------
5,493,316
-----------
8
SunAmerica Municipal Money Market Fund
PORTFOLIO OF INVESTMENTS -- June 30, 2003 -- (unaudited) (continued)
Principal
Amount Value
Security Description (in Thousands) Rate** Maturity (Note 2)
- ------------------------------------------------------------------------------------------------------------------
Iowa -- 0.2%
Storm Lake, Iowa Higher Education Facilities+
(LOC -- Wells Fargo Bank Northwest N.A.)........................... $ 235 1.10% 07/03/03 $ 235,000
-----------
Kansas -- 3.5%
Sedgwick County, Kansas, Series A................................... 3,715 2.75 08/01/03 3,714,947
-----------
Kentucky -- 2.2%
Breckinridge County, Kentucky Lease Program, Series A+
(LOC -- U.S. Bank N.A.)............................................ 1,845 1.08 07/02/03 1,845,000
Breckinridge County, Kentucky Lease Program+
(LOC -- U.S. Bank N.A.)............................................ 520 1.08 07/02/03 520,304
-----------
2,365,304
-----------
Maine -- 0.3%
Maine State Housing Authority+
(LOC -- GE Capital Corp.).......................................... 300 1.05 07/02/03 300,000
-----------
Michigan -- 11.4%
Detroit, Michigan Sewage Disposal, Series C-2+...................... 3,000 0.90 07/03/03 3,000,000
Detroit, Michigan Sewage Disposal, Series C-1+...................... 1,700 0.90 07/03/03 1,700,000
Michigan State Building Authority................................... 2,528 5.00 10/15/03 2,527,713
Michigan State General Obligation................................... 5,006 1.50 09/30/03 5,006,124
-----------
12,233,837
-----------
Minnesota -- 3.7%
Prior Lake, Minnesota Independent School District No. 719, Series D. 4,008 2.25 09/28/03 4,007,670
-----------
Mississippi -- 0.5%
Mississippi State Capital Improvements, Series A.................... 500 5.50 07/01/03 500,000
-----------
Missouri -- 3.7%
Missouri Higher Education Loan Authority, Series B+................. 1,700 1.05 07/02/03 1,700,000
St. Louis, Missouri Planned Industrial Expansion Authority+
(LOC -- Bank of America N.A.)...................................... 400 1.10 07/02/03 400,000
Wright City, Missouri Industrial+
(LOC -- Bank of America N.A.)...................................... 1,915 1.05 07/03/03 1,915,000
-----------
4,015,000
-----------
New Mexico -- 0.3%
Albuquerque, New Mexico Educational Facilities+..................... 300 1.05 07/02/03 300,000
-----------
New York -- 4.5%
New York, New York General Obligation, Series B+.................... 600 0.90 07/01/03 600,000
Metropolitan Transportation Authority, New York, Series G-1+........ 4,200 0.96 07/03/03 4,200,000
-----------
4,800,000
-----------
North Carolina -- 4.0%
Durham, North Carolina General Obligation+.......................... 300 1.00 07/03/03 300,042
North Carolina Medical Care Commission, Series B+
(LOC -- Suntrust Bank)............................................. 4,000 0.95 07/02/03 4,000,000
-----------
4,300,042
-----------
Ohio -- 6.1%
Franklin County, Ohio Industrial Development+
(LOC -- Bank One Columbus N.A.).................................... 250 1.15 07/01/03 250,000
Ohio State Air Quality Development Authority+
(LOC -- Westdeutsche Landesbank)................................... 4,000 1.02 07/02/03 4,000,000
Scioto County, Ohio Hospital Revenue+............................... 2,300 0.95 07/02/03 2,300,000
-----------
6,550,000
-----------
9
SunAmerica Municipal Money Market Fund
PORTFOLIO OF INVESTMENTS -- June 30, 2003 -- (unaudited) (continued)
Principal
Amount/Shares Value
Security Description (in Thousands) Rate** Maturity (Note 2)
- --------------------------------------------------------------------------------------------------------------------------
Pennsylvania -- 1.0%
Delaware Valley, Pennsylvania Regional Financial Authority, Series A+
(LOC -- Toronto-Dominion Bank)....................................... $ 300 0.95% 07/02/03 $ 300,000
Pennsylvania State Higher Educational Facilities Authority+........... 600 0.98 07/01/03 600,000
Philadelphia, Pennsylvania Authority for Industrial Development+
(LOC -- GE Capital Corp.)............................................ 200 0.95 07/02/03 200,000
------------
1,100,000
------------
South Carolina -- 0.3%
South Carolina Educational Facilities Authority, Series B+............ 300 0.90 07/03/03 300,000
------------
South Dakota -- 1.0%
Lower Brule Sioux Tribe, South Dakota+
(LOC -- Wells Fargo N.A.)............................................ 1,115 1.00 07/03/03 1,115,000
------------
Tennessee -- 2.1%
Metropolitan Government Nashville and Davidson Counties
(LOC -- Bank of America N.A.)........................................ 200 1.10 07/02/03 200,000
Montgomery County, Tennessee General Obligation....................... 2,033 3.00 05/01/04 2,032,603
------------
2,232,603
------------
Texas -- 11.9%
Arlington, Texas Independent School District.......................... 4,961 Zero Coupon 02/25/04 4,961,413
Brazos River, Texas Authority+........................................ 1,100 1.05 07/02/03 1,100,000
Gulf Coast Waste Disposal Authority+
(LOC -- Wells Fargo Bank Texas N.A.)................................. 975 1.15 07/03/03 975,000
North Texas Higher Education Authority, Series F+..................... 200 1.00 07/02/03 200,000
Northside Independent School District, Series B+...................... 1,500 1.27 08/01/03 1,500,000
Texas State Tax & Revenue............................................. 4,008 2.75 08/29/03 4,008,283
------------
12,744,696
------------
Utah -- 1.9%
Utah Transit Authority, Series B+
(LOC -- Bayerische Landesbank)....................................... 2,000 0.90 07/03/03 2,000,000
------------
Washington -- 0.3%
Port Seattle, Washington Industrial Development Corp.+
(LOC -- Citibank N.A.)............................................... 300 1.03 07/02/03 300,000
------------
Wyoming -- 0.5%
Wyoming Community Development Authority+.............................. 500 1.03 07/03/03 500,000
------------
Other -- 0.0%
SSgA Tax Free Money Market Fund -- Class A............................ 52 0.40 07/01/03 51,746
------------
TOTAL INVESTMENTS
(cost $108,426,460*).................................................. 101.1% 108,426,460
Liabilities in excess of other assets................................... (1.1) (1,136,954)
------ ------------
NET ASSETS.............................................................. 100.0% $107,289,506
====== ============
- --------
+ Variable rate security; maturity date reflects next reset date.
* At June 30, 2003, the cost of securities for Federal income tax purposes
approximates the cost for book purposes.
** Rates shown are rates in effect as of June 30, 2003.
LOC -- Letter of Credit
See Notes to Financial Statements
10
SunAmerica Money Market Funds
NOTES TO FINANCIAL STATEMENTS -- June 30, 2003 -- (unaudited)
Note 1. Organization
SunAmerica Money Market Funds, Inc. (the "Corporation") is an open-end
diversified management investment company organized as a Maryland
Corporation. The Corporation consists of two investment funds (each, a
"Fund" and collectively, the "Funds"). Each Fund is a separate series with a
distinct investment objective. Each Fund is advised by AIG SunAmerica Asset
Management Corp. ("SAAMCo" or "Advisor"), an indirect wholly-owned
subsidiary of American International Group, Inc. ("AIG"). The investment
objective for each of the Funds is as follows:
The SunAmerica Money Market Fund ("Money Market Fund") seeks as high a level
of current income as is consistent with liquidity and stability of capital
through investment primarily in high quality money market instruments
selected principally on the basis of quality and yield.
The SunAmerica Municipal Money Market Fund ("Municipal Money Market Fund")
seeks as high a level of current income as is consistent with liquidity and
stability of capital and that is exempt from regular federal income taxation
through investments selected primarily 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 II and Class I. The Municipal Money Market Fund currently
offers three classes of shares: Class A, Class B, and Class II. 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 sold with no front-end sales charges.
Contingent deferred sales charges ("CDSC") are imposed on
Class A shares when shares are sold within two years of
purchase. A 1.00% CDSC is imposed on shares sold within one
year of original purchase; a 0.50% CDSC is charged on
shares sold after the first year and within the second year
after purchase.
Class B shares-- Class B shares are offered at the next determined net asset
value per share, without any initial sales charge. A
declining CDSC may be imposed on redemptions made within
six years of purchase. Class B shares will convert
automatically to Class A shares on the first business day
of the month after eight years from the issuance of such
shares and at such time are no longer subject to a
distribution fee.
Class II shares-- Class II shares are sold with a front-end sales charge of
1.00% at the next determined net asset value per share.
Certain redemptions made within 18 months of the date of
purchase are subject to a contingent deferred sales charge.
11
SunAmerica Money Market Funds
NOTES TO FINANCIAL STATEMENTS -- June 30, 2003 -- (unaudited)
(continued)
Class I shares-- Class I shares are offered exclusively to certain
institutions and have no front-end or contingent deferred
sales charges.
Each class of shares bears the same voting, dividend, liquidation and other
rights and conditions. Class A, Class B, and Class II shares of each Fund
has its own 12b-1 plan, which allows for distributions and account
maintenance and service fees.
Indemnifications: Under the Funds' organizational documents, its officers
and directors are indemnified against certain liability arising out of the
performance of their duties to the Funds. In addition, in the normal course
of business the Funds enter into contracts that contain a variety of
representations and warranties which provide general indemnifications. The
Funds' maximum exposure under these arrangements is unknown as this would
involve future claims that may be made against the Funds that have not yet
occurred. However, the Funds expect the risk of loss to be remote.
Note 2. Significant Accounting Policies
The preparation of financial statements in accordance with accounting
principles generally accepted in the United States of America requires
management to make estimates and assumptions that affect the reported
amounts and disclosures in the financial statements. Actual results could
differ from these estimates. The following is a summary of the significant
accounting policies followed by the Funds in the preparation of its
financial statements:
Security Valuations: Portfolio securities are valued at amortized cost,
which approximates market value. The amortized cost method involves valuing
a security at its cost on the date of purchase and thereafter assuming a
constant amortization to maturity of any discount or premium.
Repurchase Agreements: Pursuant to exemptive relief granted by the
Securities and Exchange Commission, the Funds are permitted to participate
in joint repurchase agreement transactions with other affiliated mutual
funds. The Funds, along with other affiliated registered investment
companies, may transfer uninvested cash balances into 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. 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.
12
SunAmerica Money Market Funds
NOTES TO FINANCIAL STATEMENTS -- June 30, 2003 -- (unaudited)
(continued)
As of June 30, 2003, the following Fund held an undivided interest in a
joint repurchase agreement with State Street Bank & Trust Co.:
Percentage Principal
Interest Amount
---------- ----------
Money Market Fund 1.08% $2,762,000
As of such date, the repurchase agreement in that joint account and the
collateral therefore were as follows:
State Street Bank & Trust Co., dated June 30, 2003, bearing interest at a
rate of 0.96% per annum, with a principal amount of $255,436,000, a
repurchase price of $255,442,812, and a maturity date of July 1, 2003. The
repurchase agreement is collateralized by the following:
Interest Maturity
Type of Collateral Rate Date Principal Amount Market Value
- ------------------ -------- -------- ---------------- ------------
U.S. Treasury Notes 1.63% 04/30/05 $100,900,000 $ 81,607,876
U.S. Treasury Notes 2.00 11/30/04 161,200,000 163,215,000
U.S. Treasury Bond. 8.75 11/15/08 15,140,000 15,745,600
In addition, at June 30, 2003, the following Fund held an undivided interest
in a joint repurchase agreement with UBS Warburg, LLC:
Percentage Principal
Interest Amount
---------- -----------
Money Market Fund 12.33% $49,300,000
As of that date, the repurchase agreement in that joint account and the
collateral therefore were as follows:
UBS Warburg, LLC, dated June 30, 2003, bearing interest at a rate of 1.09%
per annum, with a principal amount of $400,000,000, a repurchase price of
$400,012,111, and a maturity date of July 1, 2003. The repurchase agreement
is collateralized by the following:
Interest Maturity
Type of Collateral Rate Date Principal Amount Market Value
- ------------------ -------- -------- ---------------- ------------
U.S. Treasury Bonds 10.375% 11/15/12 $303,068,000 $408,005,295
Securities Transactions, Investment Income and Distributions to
Shareholders: Securities transactions are recorded as of the trade date.
Interest income, including the accretion of discount and amortization of
premium, is accrued daily. Realized gains and losses on sales of investments
are calculated on the identified cost basis.
Common expenses incurred by the Corporation are allocated among the Funds
based on relative net assets or other appropriate methods. In all other
respects, expenses are charged to each Fund as incurred on a specific
identification basis.
Net investment income other than class specific expenses, and realized and
unrealized gains and losses are allocated to each class of shares based upon
the relative net asset value of outstanding
13
SunAmerica Money Market Funds
NOTES TO FINANCIAL STATEMENTS -- June 30, 2003 -- (unaudited)
(continued)
shares of each class of shares at the beginning of the day (after adjusting
for the current capital shares activity of the respective class).
Dividends from net investment income are declared daily and paid monthly.
Note 3. Investment Advisory and Management Agreement, Distribution and Service
Agreement
The Funds have an Investment Advisory and Management Agreement (the
"Agreement") with SAAMCo. Under the Agreement, SAAMCo provides continuous
supervision of the Funds and administers its corporate affairs, subject to
general review by the Directors. In connection therewith, SAAMCo furnishes
the Funds with office facilities, maintains certain of its books and
records, and pays the salaries and expenses of all personnel, including
officers of the Funds who are employees of SAAMCo and its affiliates. The
investment advisory and management fee payable to SAAMCo is computed daily
and payable monthly, at an annual rate of 0.50% on the first $600 million of
daily net assets, 0.45% on the next $900 million of the net assets and 0.40%
on net assets over $1.5 billion for the Money Market Fund and 0.35% of
average daily net assets of the Municipal Money Market Fund.
The Municipal Money Market Fund is sub-advised by AIG Global Investment
Corp. ("AIGGIC"). AIGGIC is an indirectly wholly-owned subsidiary of AIG and
receives fees at a rate of 0.25% of the Fund's first $200 million of net
assets, 0.20% on the next $300 million and 0.15% on net assets over $500
million.
SAAMCo contractually agreed to waive fees or reimburse expenses, if
necessary, to keep annual operating expenses at or below the following
percentages of each Fund's average net assets: Money Market Fund 0.80% for
Class I, Municipal Money Market Fund 0.95% for Class A, and 1.70% for Class
B and Class II. Also, SAAMCo has agreed to voluntarily waive fees or
reimburse additional expenses for the period January 1, 2003 through June
30, 2003, for the Municipal Money Market Fund at the following percentages
of the Fund's average net assets: 0.02% for Class A, 0.12% for Class B and
Class II, respectively. For the six months ended June 30, 2003, SAAMCo
reimbursed the Money Market Fund for expenses of $1,290 for Class I and for
the Municipal Money Market Fund $11,800, $8,070, and $5,092 for Class A,
Class B, and Class II, respectively.
The Funds have a distribution Agreement with AIG SunAmerica Capital
Services, Inc. ("SACS" or the "Distributor"), an affiliate of the Advisor.
The Funds have adopted a Distribution Plan (the "Plan") in accordance with
the provisions of Rule 12b-1 under the 1940 Act. Rule 12b-1 permits an
investment company directly or indirectly to pay expenses associated with
the distribution of its shares ("distribution expenses") in accordance with
a plan adopted by the investment company's Board of Directors and approved
by its shareholders. Pursuant to such rule, the Directors and the
shareholders of each class of shares of the Funds have adopted Distribution
Plans hereinafter referred to as the "Class A Plan," the "Class B Plan," and
the "Class II Plan." In adopting the Class A Plan, the Class B Plan, and the
Class II Plan, the Directors determined that there was a reasonable
likelihood that each such Plan would benefit
14
SunAmerica Money Market Funds
NOTES TO FINANCIAL STATEMENTS -- June 30, 2003 -- (unaudited)
(continued)
the Funds and the shareholders of the respective class. The sales charge and
distribution fees of the Class B shares and Class II shares will not be used
to subsidize the sale of Class A shares.
Under the Class B Plan and the Class II Plan the Distributor receives
payments from the Funds at the annual rate of up to 0.75% of the average
daily net assets of the Fund's Class B and Class II shares, to compensate
the Distributor and certain securities firms for providing sales and
promotional activities for distributing that class of shares. The
distribution costs for which the Distributor may be compensated include
distribution fees paid to broker-dealers that have sold Fund shares,
commissions, and other expenses such as those incurred for sales literature,
prospectus printing and distribution, and compensation to wholesalers. It is
possible that in any given year the amount paid to the Distributor under the
Class B and Class II Plans may exceed the Distributor's distribution costs
as described above. The Class A Plan does not provide for a distribution
fee. The Distribution Plans provide that each class of shares of the Funds
may also pay the Distributor an account maintenance and service fee of up to
an annual rate of 0.15% of the aggregate average daily net assets of such
class of shares for payments to broker-dealers for providing continuing
account maintenance. In this regard, some payments are used to compensate
broker-dealers with account maintenance and service fees in an amount up to
0.15% per year of the assets maintained in the Funds by their customers.
Accordingly, for the period ended June 30, 2003, SACS received fees (see
Statement of Operations) based upon the aforementioned rates.
For the period ended June 30, 2003, SACS voluntarily reimbursed the Money
Market Fund for expenses of $125,495 and $62,829 for Class B and Class II,
respectively and for the Municipal Money Market Fund $8,828 and $463 for
Class B and Class II, respectively.
SACS receives sales charges on each Fund's Class II shares, portions of
which are reallowed to affiliated broker-dealer and non-affiliated
broker-dealers. SACS also receives the proceeds of CDSC paid by investors in
connection with certain redemptions of each Fund's Class A, Class B and
Class II shares. SACS has advised the Funds for the period ended June 30,
2003 the proceeds received from sales (and paid out to affiliated and
non-affiliated broker-dealers) and redemptions are as follows:
Class A Class B
------------------------------------- -------------
Contingent
Sales Affiliated Non-affiliated Deferred
Charges Broker-dealers Broker-dealers Sales Charges
------- -------------- -------------- -------------
Money Market Fund.......... $-- $-- $-- $304,139
Municipal Money Market Fund -- -- -- 3,919
Class II Class II
------------------------------------- -------------
Contingent
Sales Affiliated Non-affiliated Deferred
Charges Broker-dealers Broker-dealers Sales Charges
------- -------------- -------------- -------------
Money Market Fund.......... $24,860 $14,285 $10,575 $26,031
Municipal Money Market Fund 516 188 328 109
15
SunAmerica Money Market Funds
NOTES TO FINANCIAL STATEMENTS -- June 30, 2003 -- (unaudited)
(continued)
The Funds entered into a Service Agreement with AIG SunAmerica Fund
Services, Inc. ("SAFS"), an affiliate of the Advisor. Under the Service
Agreement, SAFS performs certain shareholder account functions by assisting
the Funds' transfer agent in connection with the services that it offers to
its shareholders. The Service Agreement permits the Funds to reimburse SAFS
for the costs incurred in providing such services, based upon an annual rate
of 0.22% of average daily net assets, which is approved annually by the
Directors. For the period ended June 30, 2003 the Funds incurred the
following expenses which are included in transfer agent fees and expenses in
the Statement of Operations to compensate SAFS pursuant to the terms of the
Service Agreement:
Payable at
Expenses June 30, 2003
---------- -------------
Money Market Fund Class A........... $1,919,977 $313,808
Money Market Fund Class B........... 70,273 10,457
Money Market Fund Class II.......... 33,051 4,846
Money Market Fund Class I........... 9,923 1,636
Municipal Money Market Fund Class A. 110,904 19,331
Municipal Money Market Fund Class B. 3,878 634
Municipal Money Market Fund Class II 204 32
At June 30, 2003, the Variable Annuity and Life Insurance Company ("VALIC"),
an indirect wholly-owned subsidiary of AIG owned 27% and 71% of the
outstanding shares of Money Market Class I shares and Municipal Money Market
Class B shares, respectively.
On August 27, 2002, the Municipal Money Market Fund purchased 16,600,000 par
value of Maryland State Health & Higher Educational Facilities 1.25% due
08/29/02, 8,600,000 par value of Metropolitan Government Nashville and
Davidson Counties 1.30% due 08/29/02, and 8,800,000 par value of Orange
County, California Special Financing Authority Teeter Plan 1.30% due
09/04/02. These transactions represented 18.21%, 9.66% and 9.66%,
respectively, of the Fund's total assets. The Fund has an investment
restriction that states the Fund may not invest more than 5% of its total
assets in securities issued by the same issuer. To correct the investment
restriction violation, the Fund sold 12,600,000 par value of Maryland State
Health & Higher Educational Facilities 1.25% due 08/29/02, 4,000,000 par
value of Metropolitan Government Nashville and Davidson Counties 1.30% due
08/29/02, and 4,800,000 par value of Orange County, California Special
Financing Authority Teeter Plan 1.30% due 09/04/02 on August 28, 2002,
resulting in no gain or loss to the Fund.
On October 17, 2002, the Money Market Fund purchased Edison Asset
Securitization 1.75%, 11/18/02 commercial paper. The Fund has an investment
restriction that states the Fund may not invest in more than 5% of its total
assets in securities issued by the same issuer. This transaction added to
the position previously held by the Fund and represented 5.87% of the total
net assets. Therefore, the Fund sold the security at a gain of $3,519 to the
Fund. The gain to the Fund increased the Fund's total return by less than
0.01%.
16
SunAmerica Money Market Funds
NOTES TO FINANCIAL STATEMENTS -- June 30, 2003 (unaudited) -- (continued)
Note 4. Federal Income Taxes
It is the Funds' policy to meet the requirements of the Internal Revenue
Code of 1986, as amended, applicable to regulated investment companies and
to distribute all of its taxable net income to its shareholders. Therefore,
no federal income or excise tax provisions are required. Each Fund is
treated as a separate taxpayer for Federal Income Tax purposes.
All dividends paid by the Money Market Fund during the year ended December
31, 2002 were taxable to shareholders as ordinary dividends. Except for
$137, all dividends paid by the Municipal Money Market Fund for the year
ended December 31, 2002, were exempt from Federal Income Taxes.
Additionally, on a tax basis, distributable earnings of $242,930 and $112
for the Money Market Fund and the Municipal Money Market Fund at December
31, 2002, respectively, are undistributed ordinary income. As of December
31, 2002, the tax basis components of distributable earnings differ from the
amounts reflected in the Statement of Assets and Liabilities by temporary
book/tax differences primarily arising from cumulative pension expenses.
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, 2003 and for the prior year were as
follows:
Money Market Fund
----------------------------------------------------------------------------------------
Class A Class B Class II
------------------------------ --------------------------- --------------------------
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
2003 December 31, 2003 December 31, 2003 December 31,
(unaudited) 2002 (unaudited) 2002 (unaudited) 2002
------------- --------------- ------------ ------------ ------------ ------------
Shares sold................... $ 516,270,454* $ 4,238,009,787 $ 28,022,713 $ 92,235,061 $ 21,870,198 $ 71,755,313
Reinvested dividends.......... 3,687,785 13,209,737 8,640 144,726 4,132 78,485
Shares redeemed............... (559,716,780) (3,586,667,134) (36,757,329)* (82,630,016) (26,038,926) (75,192,597)
------------- --------------- ------------ ------------ ------------ ------------
Net increase (decrease)....... $ (39,758,541) $ 664,552,390 $ (8,725,976) $ 9,749,771 $ (4,164,596) $ (3,358,799)
============= =============== ============ ============ ============ ============
- --------
*Includes automatic conversion of Class B shares in the amount of $719,923 to Class A shares.
-------------------------
Class I
------------------------
For the
six months For the
ended year
June 30, ended
2003 December 31,
(unaudited) 2002
----------- ------------
Shares sold................... $ 3,374,317 $ 5,527,417
Reinvested dividends.......... 19,920 92,936
Shares redeemed............... (3,471,579) (4,761,166)
----------- -----------
Net increase (decrease)....... $ (77,342) $ 859,187
=========== ===========
- --------
*Includes automatic conversion of Class B shares in the amount of $719,923 to Class A shares.
Municipal Money Market Fund
------------------------------------------------------------------------------
Class A Class B Class II
-------------------------- ------------------------- -----------------------
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
2003 December 31, 2003 December 31, 2003 December 31,
(unaudited) 2002 (unaudited) 2002 (unaudited) 2002
------------ ------------ ----------- ------------ ----------- ------------
Shares sold................... $ 93,701,505* $150,624,322 $ 971,441 $2,004,052 $ 146,042 $ 255,078
Reinvested dividends.......... 177,120 257,388 1,749 7,255 87 392
Shares redeemed............... (78,316,629) (66,656,439) (1,192,575)* (912,543) (134,671) (280,422)
------------ ------------ ----------- ---------- --------- ---------
Net increase (decrease)....... $ 15,561,996 $ 84,225,271 $ (219,385) $1,098,764 $ 11,458 $ (24,952)
============ ============ =========== ========== ========= =========
- --------
*Includes automatic conversion of Class B
shares in the amount of $7,677 to Class A shares.
17
SunAmerica Money Market Funds
NOTES TO FINANCIAL STATEMENTS -- June 30, 2003 -- (unaudited)
(continued)
Note 6. Director's Retirement Plan
The Directors of the SunAmerica Money Market Funds, Inc. have adopted the
SunAmerica Disinterested Trustees' and Directors' Retirement Plan (the
"Retirement Plan") effective January 1, 1993 for the unaffiliated Directors.
The Retirement Plan provides generally that if an unaffiliated Director who
has at least 10 years of consecutive service and a Disinterested Director of
any of the SunAmerica mutual funds (an "Eligible Director") retires after
reaching age 60 but before age 70 or dies while a Director, such person will
be eligible to receive a retirement or death benefit from each SunAmerica
mutual fund with respect to which he or she is an Eligible Director. As of
each birthday, prior to the 70th birthday, but in no event for a period
greater than 10 years, each Eligible Director will be credited with an
amount equal to 50% of his or her regular fees (excluding committee fees)
for services as a Disinterested Director of each SunAmerica mutual fund for
the calendar year in which such birthday occurs. In addition, an amount
equal to 8.5% of any amounts credited under the preceding clause during
prior years, is added to each Eligible Director's account until such
Eligible Director reaches his or her 70th birthday. An Eligible Director may
receive benefits payable under the Retirement Plan, at his or her election,
either in one lump sum or in up to fifteen annual installments. As of June
30, 2003, the Money Market Fund and Municipal Money Market Fund had accrued
$172,600 and $1,487, respectively, for the Retirement Plan, which is
included in accrued expenses on the Statement of Assets and Liabilities. For
the period ended June 30, 2003, the Money Market Fund and the Municipal
Money Market Fund expensed $27,320 and $1,375, respectively, for the
Retirement Plan, which is included in Directors' fees and expenses on the
Statement of Operations.
18
SunAmerica Money Market Funds
DIRECTORS INFORMATION -- June 30, 2003 -- (unaudited)
The following table contains basic information regarding the Directors that
oversee operations of the Funds and other investment companies within the
SunAmerica Mutual Funds complex.
Term of Number of
Position Held Office and Funds in Fund
Name, With Length of Principal Complex
Address and SunAmerica Time Occupations During Overseen Other Directorships Held
Date of Birth* Complex Served Past 5 years by Director(1) by Director(2)
-------------- ------------- ---------- ------------------------------- -------------- ---------------------------
S. James Coppersmith Director 18 years Retired. 45 Director of BJ's Wholesale
DOB: February 21, 1933 Club, Inc.; Member of
Board of Trustees of the
Boston Stock Exchange.
Judith L. Craven Director 1 year Retired Administrator. 75 Director, A.G. Belo
DOB: October 6, 1945 Corporation (1992 to
present); Director, Sysco
Corporation (1996 to
present); Director, Luby's
Inc. (1998 to present).
William F. Devin Director 1 year Retired. 75 Member of the Board of
DOB: December 30, 1938 Governors, Boston Stock
Exchange (1985-Present);
formerly, Director, Cypress
Tree Senior Floating Rate
Fund, Inc. (October 1997-
May 2001).
Samuel M. Eisenstat Chairman 17 years Attorney, solo practitioner. 46 Director of North European
DOB: March 7, 1940 of the Oil Royalty Trust.
Board
Stephen J. Gutman Director 18 years Partner and Managing 46 None
DOB: May 10, 1943 Member of B.B. Associates
LLC (menswear specialty
retailing and other activities)
(June 1988 to present)
Peter A. Harbeck(3) Director 8 years President, CEO and 83 None
DOB: January 23, 1954 Director, AIG SunAmerica
Asset Management Corp.
("SAAMCo.") (August 1995
to present"); Director, AIG
SunAmerica Capital
Services, Inc. ("SACS"),
(August 1993 to present).
Sebastiano Sterpa Director 11 years Founder and Chairman of 37 Director, Real Estate
DOB: July 18, 1929 the Board of the Sterpa Business Service and
Group (real estate Countrywide Financial.
investment and
management) (1962 to
present); Director/Trustee of
SAMF.
19
SunAmerica Money Market Funds
DIRECTORS INFORMATION -- June 30, 2003 -- (unaudited) (continued)
- --------
* The business address for each Director is the Harborside Financial
Center, 3200 Plaza 5, Jersey City, NJ 07311-4992.
(1) The "Fund Complex" consists of all registered investment company
portfolios for which the Business Manager serves as investment advisor
or business manager. The "Fund Complex" includes the SunAmerica Equity
Funds (7 funds), SunAmerica Income Funds (6 funds), SunAmerica Money
Market Funds (2 funds), SunAmerica Senior Floating Rate Fund, Inc. (1
fund), SunAmerica Strategic Investment Series, Inc. (7 funds),
SunAmerica Style Select Series, Inc. (15 portfolios), Anchor Pathway
Fund (7 funds), Anchor Series Trust (8 portfolios), Seasons Series Trust
(19 portfolios), SunAmerica Series Trust (33 portfolios), VALIC Company
I (22 portfolios), and VALIC Company II (15 funds).
(2) Directorships of companies required to report to the Securities and
Exchange Commission under the Securities Exchange Act of 1934 (i.e.
"public companies") or other investment companies registered under the
Investment Company Act of 1940.
(3) Interested Trustee, as defined within the Investment Company Act of 1940.
Additional information concerning the Directors is contained in the
Statement of Additional Information and is available without charge by
calling (800) 858-8850.
20
SunAmerica Money Market Funds
If you would like additional information:
[_] Call FastFacts -- our 24-hour, automated account and fund information
hotline at 800-858-8850.
[_] Visit www.sunamericafunds.com for more up-to-date information.
AIG SunAmerica Mutual Funds
thank you for your continued support.
21
[LOGO] AIG SunAmerica
Mutual Funds
AIG SunAmerica Asset Management Corp.
Harborside Financial Center
3200 Plaza 5
Jersey City, NJ 07311-4992
Directors Investment Adviser This report is submitted
S. James Coppersmith AIG SunAmerica Asset solely for the general
Judith L. Craven Management Corp. information of
William F. Devin Harborside Financial shareholders of the
Samuel M. Eisenstat Center Fund. Distribution of
Stephen J. Gutman 3200 Plaza 5 this report to persons
Peter A. Harbeck Jersey City, NJ other than shareholders
Sebastiano Sterpa 07311-4992 of the Fund is
authorized only in
Officers Distributor connection with a
Robert M. Zakem, President AIG SunAmerica Capital currently effective
Donna M. Handel, Treasurer Services, Inc. prospectus, setting
Vacant, Secretary Harborside Financial forth details of the
Abbe P. Stein, Vice President Center Fund, which must
and Assistant Secretary 3200 Plaza 5 precede or accompany
Gregory R. Kingston, Vice President Jersey City, NJ this report.
and Assistant Treasurer 07311-4992
Michael Cheah, Vice President The accompanying report
Brian Wiese, Vice President Shareholder Servicing has not been examined by
J. Steven Neamtz, Vice President Agent independent accountants
Stacey V. Morrison, Assistant Secretary AIG SunAmerica Fund and accordingly no
Joseph P. Kelly, Assistant Secretary Services, Inc. opinion has been
Laura E. Filippone, Assistant Treasurer Harborside Financial expressed thereon.
Donald H. Guire, Assistant Treasurer Center
3200 Plaza 5
Jersey City, NJ
07311-4992
Custodian and Transfer
Agent
State Street Bank and
Trust Company
P.O. Box 219373
Kansas City, MO 64121
Distributed by: AIG SunAmerica Capital Services, Inc.
MMSAN 06/03
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. Reserved.
Item 6. Reserved.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End
Management Investment Companies.
Not applicable.
Item 8. Reserved.
Item 9. Controls and Procedures.
(a) An evaluation was performed within 90 days of the filing of this
report, under the supervision and with the participation of the
registrant's management, including the President and Treasurer, of the
effectiveness of the design and operation of the registrant's
disclosure controls and procedures. Based on that evaluation, the
registrant's management, including the President and Treasurer,
concluded that the registrant's disclosure controls and procedures are
effective.
(b) During the period covered in this report there were no significant
changes in the registrant's internal controls. However, a situation was
discovered at the registrant's transfer agent which circumvented
internal controls related to abandoned property procedures. The
registrant is working with the transfer agent in developing corrective
actions and enhancing the existing internal controls.
Item 10. Exhibits.
(a) Not applicable.
(b) (1) Certification pursuant to Rule 30a-2 under the Investment Company
Act of 1940 (17 CFR 270.30a-2) attached hereto as Exhibit 99.CERT.
(2) Certification pursuant to Section 906 of the Sarbanes-Oxley Act
of 2002 attached hereto as Exhibit 99.906.CERT.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
SunAmerica Money Market Funds, Inc.
By: /s/ Robert M. Zakem
---------------------------
Robert M. Zakem
President
Date: September 8, 2003
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/ Robert M. Zakem
----------------------------
Robert M. Zakem
President
Date: September 8, 2003
By: /s/ Donna M. Handel
----------------------------
Donna M. Handel
Treasurer
Date: September 8, 2003