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)
Vincent M. Marra
Senior Vice President & Chief Operating Officer
AIG SunAmerica Asset Management Corp.
Harborside Financial Center,
3200 Plaza 5
Jersey City, NJ 07311
- --------------------------------------------------------------------------------
(Name and address of agent for service)
Registrant's telephone number, including area code: (201) 324-6464
-----------------------------
Date of fiscal year end: December 31
--------------------------
Date of reporting period: June 30, 2005
-------------------------
Item 1. Reports to Stockholders
SunAmerica Money Market Funds, Inc., Semiannual Report at June 30, 2005.
[GRAPHIC]
SunAmerica
Money Market Funds
2005 SEMIANNUAL REPORT
[LOGO] AIG SunAmerica
Mutual Funds
June 30, 2005 SEMIANNUAL REPORT
SUNAMERICA MONEY MARKET FUNDS
SunAmerica Money Market (SMAXX)
SunAmerica Municipal Money Market (NMAXX)
Table of Contents
PRESIDENT'S LETTER................. 1
EXPENSE EXAMPLE.................... 2
STATEMENT OF ASSETS AND LIABILITIES 4
STATEMENT OF OPERATIONS............ 5
STATEMENT OF CHANGES IN NET ASSETS. 6
FINANCIAL HIGHLIGHTS............... 7
PORTFOLIO OF INVESTMENTS........... 9
NOTES TO FINANCIAL STATEMENTS...... 15
DIRECTORS AND OFFICERS INFORMATION. 22
June 30, 2005 SEMIANNUAL REPORT
President's Letter
Dear Shareholders,
We are pleased to present you with this semiannual shareholder report for
the SunAmerica Money Market Fund and the SunAmerica Municipal Money Market Fund
for the six-month period ending June 30, 2005.
During this period, the economy and the markets were directly impacted by
the direction of energy prices. After an impressive rally during the first
three months of 2005, crude oil prices relinquished most of those gains during
the seven-week period ending May 20th. This downturn was short-lived, however,
as oil assumed its upward climb, peaking at $60.54 on June 27th.
Meanwhile, monetary policy remains at the forefront. Over the six-month
period, the Federal Reserve instituted four interest rate increases bringing
the federal funds rate to 3.25%, raising the rate a cumulative 1%.
While short-term rates have increased, the 10-year Treasury has had a
different response. It ended the quarter at 3.92%, 31 basis points lower than
where it stood at the beginning of the year.
The Funds have responded to this rising short-term interest rate environment
by adopting a defensive position, purchasing only high quality, highly-rated
securities with shorter maturities. This strategy positions the funds to
capitalize on reinvestment opportunities at higher rates.
We remain diligent in the management of your assets, and thank you for your
continued investment in our Funds.
Sincerely,
/s/ Peter A. Harbeck
Peter A. Harbeck,
President
AIG SunAmerica Asset Management Corp.
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An investment in the Fund is not insured or guaranteed by the Federal Deposit
Insurance Corporation or any other government agency. Although the Fund seeks
to preserve the value of your investment at $1.00 per share, it is possible to
lose money by investing in the Fund.
Past performance is no guarantee of future results.
SunAmerica Money Market Funds
EXPENSE EXAMPLE -- June 30, 2005 -- (unaudited)
Disclosure of Portfolio Expenses in Shareholder Reports
As a shareholder of a Fund in the SunAmerica Money Market Funds, Inc. (the
"Corporation"), you may incur two types of costs: (1) transaction costs,
including sales charges on purchase payments, contingent deferred sales charges
and (2) ongoing costs, including management fees; distribution and service
fees; and other Fund expenses. This Example is intended to help you understand
your ongoing costs (in dollars) of investing in the Funds and to compare these
costs with the ongoing costs of investing in other mutual funds. The Example is
based on an investment of $1,000 invested at January 1, 2005 and held until
June 30, 2005.
Actual Expenses
The "Actual" section of the table provides information about actual account
values and actual expenses. You may use the information in these columns,
together with the amount you invested, to estimate the expenses that you paid
over the period. Simply divide your account value by $1,000 (for example, an
$8,600 account value divided by $1,000 = 8.6), then multiply the result by the
number in the column under the heading entitled "Expenses Paid During the Six
Months Ended June 30, 2005" to estimate the expenses you paid on your account
during this period. For shareholder accounts in classes other than Class I, the
"Expenses Paid During the Six Months Ended June 30, 2005" column does not
include small account fees that may be charged if your account balance is below
$500 ($250 for retirement plan accounts). In addition, the "Expenses Paid
During the Six Months Ended June 30, 2005" column does not include
administrative fees that may apply to qualified retirement plan accounts. See
the Funds' prospectus and/or the retirement plan document for full description
of these fees. Had these fees been included, the "Expenses Paid During the Six
Months Ended June 30, 2005" column would have been higher and the "Ending
Account Value" column would have been lower.
Hypothetical Example for Comparison Purposes
The "Hypothetical" section of the table provides information about hypothetical
account values and hypothetical expenses based on the Fund's actual expense
ratio and an assumed rate of return of 5% per year before expenses, which is
not the Fund's actual return. The hypothetical account values and expenses may
not be used to estimate the actual ending account balance or expenses you paid
for the period. You may use this information to compare the ongoing costs of
investing in the Portfolios of other funds. To do so, compare this 5%
hypothetical example with the 5% hypothetical examples that appear in the
shareholder reports of other funds. For shareholder accounts in classes other
than Class I, the "Expenses Paid During the Six Months Ended June 30, 2005"
column does not include small account fees that may be charged if your account
balance is below $500 ($250 for retirement plan accounts). In addition, the
"Expenses Paid During the Six Months Ended June 30, 2005" column does not
include administrative fees that may apply to qualified retirement plan
accounts. See the Fund's prospectus and/or the retirement plan document for
full description of these fees. Had these fees been included, the "Expenses
Paid During the Six Months Ended June 30, 2005" column would have been higher
and the "Ending Account Value" column would have been lower.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transaction costs, including sales
charges on purchase payments, contingent deferred sales charges, small account
fees and administrative fees, if applicable to your account. Please refer to
your Prospectus and/or qualified retirement plan document for more information.
Therefore, the "Hypothetical" example is useful in comparing ongoing costs
only, and will not help you determine the relative total costs of owning
different funds. In addition, if these transaction costs and other fees were
included, your costs would have been higher.
2
SunAmerica Money Market Funds
EXPENSE EXAMPLE -- June 30, 2005 -- (unaudited) (continued)
Actual Hypothetical
------------------------------------------------- ------------------------------------
Ending Ending Account
Account Value Expenses Paid Value using
Beginning Using Actual During the Beginning a Hypothetical 5%
Account Value Return at Six Months Ended Account Value Assumed Return at
at January 1, 2005 June 30, 2005 June 30, 2005 at January 1, 2005 June 30, 2005
------------------ ------------- ---------------- ------------------ -----------------
Money Market Fund
Class A................. $1,000.00 $1,009.06 $4.48 $1,000.00 $1,020.33
Class B................. $1,000.00 $1,004.74 $8.80 $1,000.00 $1,016.02
Class C ................ $1,000.00 $1,004.93 $8.60 $1,000.00 $1,016.22
Class I #............... $1,000.00 $1,009.74 $3.99 $1,000.00 $1,020.83
Municipal Money Market Fund
Class A #............... $1,000.00 $1,006.99 $3.98 $1,000.00 $1,020.83
Class B #............... $1,000.00 $1,002.97 $8.00 $1,000.00 $1,016.81
Class C #............... $1,000.00 $1,003.08 $7.55 $1,000.00 $1,017.26
-----------------
Expense
Expenses Paid Ratio
During the as of
Six Months Ended June 30,
June 30, 2005 2005*
---------------- --------
Money Market Fund
Class A................. $4.51 0.90%
Class B................. $8.85 1.77%
Class C ................ $8.65 1.73%
Class I #............... $4.01 0.80%
Municipal Money Market Fund
Class A #............... $4.01 0.80%
Class B #............... $8.05 1.61%
Class C #............... $7.60 1.52%
- --------
* Expenses are equal to the Fund's annualized expense ratio multiplied by the
average account value over the period, multiplied by 181 days divided by 365
days. These ratios do not reflect transaction costs, including sales charges
on purchase payments, contingent deferred sales charges, small account fees
and administrative fees, if applicable to your account. Please refer to your
Prospectus and/or qualified retirement plan document for more information.
# During the stated period, the investment adviser and distributor either
waived a portion of or all of the fees and assumed a portion of or all
expenses for the Funds. As a result, if these fees and expenses had not been
waived, the "Actual/Hypothetical Ending Account Value" would have been lower
and the "Actual/Hypothetical Expenses Paid During the Six Months Ended June
30, 2005" and the "Expense Ratios" would have been higher.
3
SunAmerica Money Market Funds
STATEMENT OF ASSETS AND LIABILITIES -- June 30, 2005 -- (unaudited)
Money Market Municipal Money
Fund Market Fund
-------------- ---------------
ASSETS:
Short-term investment securities, at value (unaffiliated)*........ $1,562,143,309 $ 86,092,244
Repurchase agreements (cost equals market value).................. 55,223,000 --
-------------- --------------
Total Investments............................................... 1,617,366,309 86,092,244
-------------- --------------
Cash.............................................................. 494 2,126,312
Receivable for:
Fund shares sold................................................ 3,576,481 1,337,012
Dividends and interest.......................................... 1,263,235 391,999
Prepaid expenses and other assets................................. 30,923 9
Due from investment adviser for expense reimbursements/fee waivers 2,299 9,960
-------------- --------------
Total Assets.................................................... 1,622,239,741 89,957,536
-------------- --------------
LIABILITIES:
Payable for:
Fund shares redeemed............................................ 1,909,608 2,803,569
Investments purchased........................................... -- 2,129,121
Investment advisory and management fees......................... 624,442 24,749
Distribution and service maintenance fees....................... 232,836 11,359
Transfer agent fees and expenses................................ 341,686 19,090
Directors' fees and expenses.................................... 243,119 6,362
Other accrued expenses.......................................... 326,691 50,514
-------------- --------------
Total Liabilities............................................... 3,678,382 5,044,764
-------------- --------------
Net Assets..................................................... $1,618,561,359 $ 84,912,772
============== ==============
NET ASSETS REPRESENTED BY:
Common stock, $.001 par value (10 billion shares authorized)...... $ 1,618,561 $ 84,912
Paid-in capital................................................... 1,616,847,755 84,827,279
-------------- --------------
1,618,466,316 84,912,191
Accumulated undistributed net investment income (loss)............ 95,043 581
-------------- --------------
Net Assets..................................................... $1,618,561,359 $ 84,912,772
============== ==============
Class A:
Net assets........................................................ $1,554,094,845 $ 83,885,788
Shares outstanding................................................ 1,554,091,508 83,885,080
Net asset value, offering and redemption price per share
(excluding any applicable contingent deferred sales charge)...... $ 1.00 $ 1.00
============== ==============
Class B:
Net assets........................................................ $ 35,674,512 $ 428,625
Shares outstanding................................................ 35,674,635 428,566
Net asset value, offering and redemption price per share
(excluding any applicable contingent deferred sales charge)...... $ 1.00 $ 1.00
============== ==============
Class C:
Net assets........................................................ $ 16,173,446 $ 598,359
Shares outstanding................................................ 16,174,326 598,371
Net asset value, offering and redemption price per share
(excluding any applicable contingent deferred sales charge)...... $ 1.00 $ 1.00
============== ==============
Class I:
Net assets........................................................ $ 12,618,556 $ --
Shares outstanding................................................ 12,620,822 --
Net asset value, offering and redemption price per share.......... $ 1.00 $ --
============== ==============
*Amortized cost of short-term investment securities (unaffiliated) $1,562,143,309 $ 86,092,244
============== ==============
- --------
See Notes to Financial Statements
4
SunAmerica Money Market Funds
STATEMENT OF OPERATIONS -- For the period ended June 30, 2005 --
(unaudited)
Money Market Municipal Money
Fund Market Fund
------------ ---------------
INVESTMENT INCOME:
Interest (unaffiliated)................................................................ $23,004,472 $ 1,023,002
Dividends (unaffiliated)............................................................... -- 838
----------- -----------
Total investment income............................................................. 23,004,472 1,023,840
----------- -----------
EXPENSES:
Investment advisory and management fees................................................ 3,908,073 164,108
Distribution and service maintenance fees
Class A.............................................................................. 1,219,101 69,373
Class B.............................................................................. 174,326 2,280
Class C.............................................................................. 78,055 3,472
Transfer agent fees and expenses
Class A.............................................................................. 1,838,553 103,224
Class B.............................................................................. 60,725 700
Class C.............................................................................. 22,886 848
Class I.............................................................................. 15,733 --
Registration fees
Class A.............................................................................. 17,983 7,012
Class B.............................................................................. 7,351 2,356
Class C.............................................................................. 4,206 988
Class I.............................................................................. 3,651 --
Custodian fees......................................................................... 144,004 24,711
Reports to shareholders................................................................ 205,133 3,878
Audit and tax fees..................................................................... 24,347 24,343
Legal fees............................................................................. 18,814 1,977
Directors' fees and expenses........................................................... 53,582 2,903
Other expenses......................................................................... 28,788 2,806
----------- -----------
Total expenses before fee waivers, expense reimbursements and custody credits.......... 7,825,311 414,979
Fees waived and expenses reimbursed by investment adviser and distributor (Note 3).. (2,553) (29,934)
Custody credits earned on cash balances............................................. (2,548) (5,888)
----------- -----------
Net expenses........................................................................ 7,820,210 379,157
----------- -----------
Net investment income (loss)........................................................... 15,184,262 644,683
----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS........................ $15,184,262 $ 644,683
=========== ===========
- --------
See Notes to Financial Statements
5
SunAmerica Money Market Funds
STATEMENT OF CHANGES IN NET ASSETS
Money Market Fund
------------------------------
For the
six months
ended For the year
June 30, ended
2005 December 31,
(unaudited) 2004
-------------- --------------
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss).......................................................... $ 15,184,262 $ 8,165,643
-------------- --------------
Net increase (decrease) in net assets resulting from operations......................... $ 15,184,262 $ 8,165,643
Distributions to shareholders from:
Net investment income (Class A)....................................................... (14,800,091) (8,054,333)
Net investment income (Class B)....................................................... (182,959) (30,639)
Net investment income (Class C)+...................................................... (85,760) (14,024)
Net investment income (Class I)....................................................... (119,275) (66,647)
-------------- --------------
Total distributions to shareholders..................................................... (15,188,085) (8,165,643)
-------------- --------------
Net increase (decrease) in net assets resulting from capital share transactions (Note 5) (83,105,264) (17,388,052)
-------------- --------------
Total increase (decrease) in net assets................................................. (83,109,087) (17,388,052)
============== ==============
Net Assets:
Beginning of period..................................................................... 1,701,670,446 1,719,058,498
-------------- --------------
End of period*.......................................................................... $1,618,561,359 $1,701,670,446
============== ==============
*Includes accumulated undistributed net investment income (loss)........................ $ 95,043 $ 98,866
============== ==============
Municipal Money
Market Fund
------------------------------
For the
six months
ended For the year
June 30, ended
2005 December 31,
(unaudited) 2004
-------------- --------------
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss).......................................................... $ 644,683 $ 366,908
-------------- --------------
Net increase (decrease) in net assets resulting from operations......................... $ 644,683 $ 366,908
Distributions to shareholders from:
Net investment income (Class A)....................................................... (639,952) (364,223)
Net investment income (Class B)....................................................... (1,371) (2,471)
Net investment income (Class C)+...................................................... (3,360) (214)
Net investment income (Class I)....................................................... -- --
-------------- --------------
Total distributions to shareholders..................................................... (644,683) (366,908)
-------------- --------------
Net increase (decrease) in net assets resulting from capital share transactions (Note 5) (13,181,236) (19,134,111)
-------------- --------------
Total increase (decrease) in net assets................................................. (13,181,236) (19,134,111)
============== ==============
Net Assets:
Beginning of period..................................................................... 98,094,008 117,228,119
-------------- --------------
End of period*.......................................................................... $ 84,912,772 $ 98,094,008
============== ==============
*Includes accumulated undistributed net investment income (loss)........................ $ 581 $ 581
============== ==============
- --------
+ Effective February 23, 2004, Class II shares were redesignated to Class C
shares
See Notes to Financial Statements
6
SunAmerica Money Market Funds
FINANCIAL HIGHLIGHTS
MONEY MARKET FUND
-----------------
Ratio
Net Net of net
Asset Dividends Asset Net Assets Ratio of investment
Value Net from net Value end of expenses income to
beginning investment investment end of Total period to average average
Period Ended of period income(1) income period Return(2) (000's) net assets net assets
- -------------------- --------- ---------- ---------- ------ --------- ---------- ---------- ----------
Class A
- -
12/31/00 $1.000 $0.054 $(0.054) $1.000 5.57% $ 971,137 0.95% 5.47%
12/31/01 1.000 0.034 (0.034) 1.000 3.45 1,087,329 0.93 4.04
12/31/02 1.000 0.010 (0.010) 1.000 1.04(6) 1,751,812 0.90 0.99
12/31/03 1.000 0.003 (0.003) 1.000 0.32 1,644,603 0.88 0.32
12/31/04 1.000 0.005 (0.005) 1.000 0.50 1,630,353 0.90 0.49
01/01/05-06/30/05(7) 1.000 0.010 (0.010) 1.000 0.91 1,554,095 0.90(5) 1.82(5)
Class B
- -
12/31/00 $1.000 $0.046 $(0.046) $1.000 4.72% $ 24,090 1.76%(4) 4.62%(4)
12/31/01 1.000 0.025 (0.025) 1.000 2.57 55,066 1.75(4) 3.76(4)
12/31/02 1.000 0.003 (0.003) 1.000 0.28(6) 64,815 1.64(4) 0.26(4)
12/31/03 1.000 0.000 0.000 1.000 0.03 44,529 1.18(4) 0.03(4)
12/31/04 1.000 0.001 (0.001) 1.000 0.07 42,437 1.32(4) 0.06(4)
01/01/05-06/30/05(7) 1.000 0.005 (0.005) 1.000 0.47 35,675 1.77(4)(5) 0.94(4)(5)
Class C+
- -
12/31/00 $1.000 $0.046 $(0.046) $1.000 4.73% $ 11,012 1.75%(4) 4.67%(4)
12/31/01 1.000 0.026 (0.026) 1.000 2.63 33,644 1.69(4) 3.51(4)
12/31/02 1.000 0.003 (0.003) 1.000 0.27(6) 30,285 1.66(4) 0.26(4)
12/31/03 1.000 0.000 0.000 1.000 0.03 20,290 1.18(4) 0.03(4)
12/31/04 1.000 0.001 (0.001) 1.000 0.07 16,985 1.33(4) 0.06(4)
01/01/05-06/30/05(7) 1.000 0.005 (0.005) 1.000 0.49 16,173 1.73(4)(5) 0.99(4)(5)
Class I
- -
11/16/01-12/31/01(3) $1.000 $0.002 $(0.002) $1.000 0.20% $ 8,336 0.80%(4)(5) 0.84%(4)(5)
12/31/02 1.000 0.011 (0.011) 1.000 1.13(6) 9,195 0.80(4) 1.12(4)
12/31/03 1.000 0.004 (0.004) 1.000 0.43 9,636 0.77(4) 0.43(4)
12/31/04 1.000 0.006 (0.006) 1.000 0.58 11,895 0.80(4) 0.59(4)
01/01/05-06/30/05(7) 1.000 0.010 (0.010) 1.000 0.97 12,619 0.80(4)(5) 1.96(4)(5)
- --------
(1)Calculated based upon average shares outstanding.
(2)Total return is not annualized and does not reflect sales load, but does
include expense reimbursements.
(3)Commencement of sales of respective class of shares
(4)Net of the following expense reimbursements/waivers (based on average net
assets):
12/31/00 12/31/01 12/31/02 12/31/03 12/31/04 06/30/05(5)
-------- -------- -------- -------- -------- -----------
Class B. -- % -- % 0.04% 0.51% 0.39% -- %
Class C+ 0.18 0.05 0.04 0.53 0.39 --
Class I. -- 0.24 0.14 0.02 0.09 0.04
(5)Annualized
(6)The total return for each class was increased by less than 0.01% from gains
realized on the disposal of investments in violation of investment
restrictions.
(7)Unaudited
+ Effective February 23, 2004, Class II shares were redesignated as Class C
shares
See Notes to Financial Statements
7
SunAmerica Money Market Funds
FINANCIAL HIGHLIGHTS -- (continued)
MUNICIPAL MONEY MARKET FUND
---------------------------
Net Net Net Ratio of net
Asset Dividends Asset Assets Ratio of investment
Value Net from net Value end of expenses income to
beginning investment investment end of Total period to average average
Period Ended of period income(1) income period Return(2) (000's) net assets(5) net assets(5)
- ----------------------- --------- ---------- ---------- ------ --------- -------- ------------- -------------
Class A
- -
10/31/00(6) $1.000 $0.030 $(0.030) $1.000 3.06% $ 4,452 0.97% 3.03%
10/31/01(6) 1.000 0.020 (0.020) 1.000 2.39 3,972 0.78 2.39
11/01/01-12/31/01(6) 1.000 0.013 (0.013) 1.000 2.05 3,829 0.62(3) 1.71(3)
12/31/02 1.000 0.009 (0.009) 1.000 0.92 88,050 0.78 0.71
12/31/03 1.000 0.003 (0.003) 1.000 0.28 113,802 0.81 0.28
12/31/04 1.000 0.004 (0.004) 1.000 0.36 97,374 0.87 0.35
01/01/05-06/30/05(7) 1.000 0.007 (0.007) 1.000 0.70 83,886 0.80(3) 1.38(3)
Class B
- -
10/31/00(6) $1.000 $0.030 $(0.030) $1.000 2.48% $ 2,777 1.54% 2.44%
10/31/01(6) 1.000 0.020 (0.020) 1.000 2.39 2,613 0.78 2.38
11/01/01-12/31/01(6) 1.000 0.008 (0.008) 1.000 1.97 2,618 1.13(3) 1.27(3)
12/31/02 1.000 0.002 (0.002) 1.000 0.24 3,714 1.39 0.16
12/31/03 1.000 0.001 (0.001) 1.000 0.10 3,168 0.98 0.11
12/31/04 1.000 0.001 (0.001) 1.000 0.10 497 1.02 0.10
01/01/05-06/30/05(7) 1.000 0.003 (0.003) 1.000 0.30 429 1.61(3) 0.54(3)
Class C+
- -
08/10/00-10/31/00(4)(6) $1.000 $0.010 $(0.010) $1.000 0.71% $ 108 0.75%(3) 2.78%(3)
10/31/01(6) 1.000 0.020 (0.020) 1.000 2.40 136 0.78 2.33
11/01/01-12/31/01(6) 1.000 0.008 (0.008) 1.000 1.97 195 1.15(3) 1.14(3)
12/31/02 1.000 0.002 (0.002) 1.000 0.24 170 1.39 0.19
12/31/03 1.000 0.001 (0.001) 1.000 0.10 258 1.00 0.11
12/31/04 1.000 0.001 (0.001) 1.000 0.10 223 1.18 0.10
01/01/05-06/30/05(7) 1.000 0.003 (0.003) 1.000 0.31 598 1.52(3) 0.87(3)
- --------
(1)Calculated based upon average shares outstanding.
(2)Total return is not annualized and does not reflect sales load, but does
include expense reimbursements.
(3)Annualized
(4)Commencement of sales of respective class of shares
(5)Net of the following expense reimbursements/waivers (based on average net
assets):
10/31/00 10/31/01 12/31/01(3) 12/31/02 12/31/03 12/31/04 06/30/05(3)
-------- -------- ----------- -------- -------- -------- -----------
Class A. 0.47% 1.18% 2.51% 0.20% 0.03% 0.00% 0.06%
Class B. 0.46 1.18 2.59 1.25 1.03 0.87 0.96
Class C+ 0.41(3) 1.18 7.84 9.68 7.45 4.20 0.33
(6)The financial information for the periods prior to November 16, 2001
reflects the financial information for the North American Municipal Money
Market Fund.
(7)Unaudited
+ Effective February 23, 2004, Class II shares were redesignated as Class C
shares
See Notes to Financial Statements
8
SunAmerica Money Market Fund
PORTFOLIO PROFILE -- June 30, 2005 -- (unaudited)
Industry Allocation*
Asset Backed/Multi-Asset......... 20.0%
Finance.......................... 16.1
Asset Backed/Securities.......... 15.7
Asset Backed/Receivables......... 14.9
Foreign Banks.................... 11.9
Regional Banks................... 9.1
Diversified Financial Services... 6.8
Sovereign Agency................. 4.8
Municipalities................... 0.6
----
99.9%
====
Weighted average days to maturity 29.8
Credit Quality Allocation @#
Government-Agency........... 8.2%
A-1......................... 91.8
-----
100.0%
=====
- --------
* Calculated as a percentage of net assets.
@ Source: Standard and Poors
# Calculated as a percentage of total debt issues.
9
SunAmerica Money Market Fund
PORTFOLIO OF INVESTMENTS -- June 30, 2005 -- (unaudited)
Principal Value
Security Description Amount (Note 2)
SHORT-TERM INVESTMENT SECURITIES -- 96.5%
ASSET-BACKED COMMERCIAL PAPER -- 50.7%
Amsterdam Funding Corp.
3.32% due 08/25/05*............... $25,000,000 $ 24,873,195
Apreco, LLC
3.10% due 07/12/05*............... 18,000,000 17,982,950
Barton Capital, LLC
3.13% due 08/02/05*............... 25,000,000 24,930,444
3.14% due 08/12/05*.............. 29,000,000 28,893,763
CAFCO, LLC
3.02% due 07/11/05*............... 25,000,000 24,979,028
3.13% due 08/03/05*.............. 25,000,000 24,928,271
CRC Funding, LLC
3.14% due 08/02/05*............... 30,000,000 29,916,267
3.23% due 08/11/05*.............. 25,000,000 24,908,035
Cancara Asset Securitization, Ltd.
3.06% due 07/05/05*............... 25,000,000 24,991,500
3.22% due 07/20/05*.............. 25,000,000 24,957,514
Charta, LLC
3.08% due 07/11/05*............... 25,000,000 24,978,611
3.31% due 09/13/05*.............. 25,000,000 24,829,903
Ciesco, LLC
3.02% due 07/08/05*............... 20,000,000 19,988,256
3.21% due 08/22/05*.............. 25,000,000 24,884,083
Edison Asset Securitization, LLC
3.16% due 08/05/05*............... 25,000,000 24,923,194
3.29% due 09/08/05*.............. 25,000,000 24,842,354
Galaxy Funding, Inc.
3.14% due 08/08/05*............... 25,000,000 24,917,139
Giro Funding U.S. Corp.
3.05% due 07/15/05*............... 25,000,000 24,970,347
3.36% due 07/07/05*.............. 25,000,000 24,986,000
Govco, Inc.
3.14% due 08/01/05*............... 25,000,000 24,932,403
3.37% due 09/16/05*.............. 30,000,000 29,783,758
Greyhawk Funding, LLC
3.13% due 08/02/05*............... 25,000,000 24,930,444
3.17% due 08/01/05*.............. 25,000,000 24,931,757
Preferred Receivables Funding
3.06% due 07/07/05*............... 25,000,000 24,987,250
3.25% due 07/21/05*.............. 25,000,000 24,954,861
Sheffield Receivables
3.33% due 07/08/05*............... 25,000,000 24,983,813
Surrey Funding Corp.
3.30% due 08/24/05*............... 25,000,000 24,876,250
Sydney Capital Corp.
3.09% due 07/14/05*............... 25,000,000 24,972,104
3.14% due 08/04/05*.............. 20,000,000 19,940,689
Windmill Funding Corp.
3.14% due 08/03/05*............... 25,000,000 24,928,042
3.22% due 08/12/05*.............. 25,000,000 24,906,083
White Pine Finance, LLC
3.18% due 07/15/05*+.............. 25,000,000 24,998,628
3.22% due 07/18/05*+............. 25,000,000 25,000,000
------------
Total Asset-Backed Commercial Paper
(amortized cost $819,806,936).... 819,806,936
------------
CERTIFICATES OF DEPOSIT -- 18.2%
ABN AMRO Bank N.A.
3.18% due 08/08/05................ 25,000,000 25,000,000
Principal Value
Security Description Amount (Note 2)
---------------------------------------------------------------
BNP Paribas
3.26% due 08/31/05+.................. 25,000,000 $ 25,000,210
3.55% due 08/31/05+................. 25,000,000 25,000,247
Barclays Bank, PLC
3.10% due 07/08/05+.................. $25,000,000 25,000,024
3.12% due 07/12/05+................. 20,000,000 20,000,030
Citibank N.A.
3.32% due 09/14/05+.................. 25,000,000 25,000,000
Deutshe Bank
3.26% due 07/25/05+.................. 23,000,000 23,000,152
HBOS Treasury Services
3.13% due 08/11/05................... 24,000,000 24,000,135
3.41% due 09/28/05+................. 25,000,000 25,000,306
Royal Bank of Scotland
3.14% due 08/04/05................... 28,000,000 28,000,128
Wells Fargo Bank N.A.
3.27% due 08/08/05................... 25,000,000 25,000,000
UBS AG
3.40% due 09/28/05................... 25,000,000 25,000,000
------------
Total Certificates of Deposit
(amortized cost $295,001,232)....... 295,001,232
------------
COMMERCIAL PAPER -- 13.5%
Bear Stearns Co., Inc.
3.08% due 07/06/05................... 25,000,000 24,989,306
3.28% due 08/22/05.................. 25,000,000 24,881,556
Dexia Delaware, LLC
3.10% due 07/29/05................... 29,000,000 28,930,078
General Electric Capital Corp.
3.11% due 07/19/05................... 30,000,000 29,953,350
3.22% due 07/01/05.................. 30,000,000 30,000,000
Goldman Sachs Group, Inc.
3.33% due 07/01/05+.................. 25,000,000 25,000,000
Merrill Lynch & Co.
3.07% due 07/05/05................... 25,000,000 24,991,472
UBS Finance Delaware, LLC
3.39% due 07/01/05................... 30,000,000 30,000,000
------------
Total Commercial Paper
(amortized cost $218,745,762)....... 218,745,762
------------
MEDIUM TERM NOTES -- 8.7%
Beta Finance, Inc.
3.17% due 07/15/05*+................. 25,000,000 25,000,000
Sedna Finance, Inc.
3.19% due 07/15/05*+................. 22,000,000 22,000,000
3.27% due 07/25/05*+................ 25,000,000 25,000,000
Sigma Finance, Inc.
3.11% due 07/06/05*+................. 25,000,000 25,000,000
3.26% due 07/25/05*+................ 25,000,000 24,997,962
Wells Fargo & Co.
3.14% due 07/05/05+.................. 19,000,000 19,000,000
------------
Total Medium Term Notes
(amortized cost $140,997,962)....... 140,997,962
------------
TAXABLE MUNICIPAL MEDIUM TERM NOTES -- 0.6%
Illinois Student Assistance Commission
3.32% due 07/06/05+
(amortized cost $10,000,000)........ 10,000,000 10,000,000
------------
10
SunAmerica Money Market Fund
PORTFOLIO OF INVESTMENTS -- June 30, 2005 -- (unaudited) (continued)
Principal
Security Description Amount Value (Note 2)
U.S. GOVERNMENT AGENCIES -- 4.8%
Agency for International Development
Panama
3.48% due 07/05/05+................. $ 2,751,310 $ 2,760,542
--------------
Federal Home Loan Bank
3.36% due 09/28/05.................. 20,000,000 19,833,867
--------------
Federal National Mortgage Association
3.16% due 07/21/05+................. 23,000,000 22,998,171
3.21% due 07/01/05+................ 20,000,000 19,999,863
3.22% due 07/01/05+................ 12,000,000 11,998,974
--------------
54,997,008
--------------
Total U.S. Government Agencies
(amortized cost $77,591,417)....... 77,591,417
--------------
Total Short-Term Investment Securities -- 96.5%
(amortized cost $1,562,143,309).... 1,562,143,309
--------------
REPURCHASE AGREEMENTS -- 3.4%
State Street Bank & Trust Co.
Joint Repurchase Agreement(1)....... 223,000 223,000
UBS Securities, LLC
Joint Repurchase Agreement(1)....... 55,000,000 55,000,000
--------------
Total Repurchase Agreements
(amortized cost $55,223,000)....... 55,223,000
--------------
Value
Security Description (Note 2)
-----------------------------------------------------------
TOTAL INVESTMENTS
(amortized cost $1,617,366,309@)... 99.9% $1,617,366,309
Assets in excess of other liabilities 0.1 1,195,050
----- --------------
NET ASSETS........................... 100.0% $1,618,561,359
===== ==============
- --------
* Securities exempt from registration under Rule 144A of securities Act of
1933. These securities may be sold in transactions exempt from
registration, normally to qualified institutional buyers. The Fund has no
rights to demand registration of these securities. At June 30, 2005, the
aggregate value of these securities was $941,804,898, representing 58.2%
of net assets. Unless otherwise indicated, these securities are not
considered to be illiquid.
@ At June 30, 2005, the cost of securities for federal income tax purposes
was the same for book purposes.
+ Variable rate security -- the rate reflected is as of June 30, 2005;
maturity date reflects next reset date.
(1) See Note 2 for details of the Joint Repurchase Agreement
LOC --Letter of credit
See Notes to Financial Statements
11
SunAmerica Municipal Money Market Fund
PORTFOLIO PROFILE -- June 30, 2005 -- (unaudited)
State Allocation*
Michigan......................... 10.7%
Texas............................ 8.4
Illinois......................... 7.8
Ohio............................. 7.6
Missouri......................... 6.2
Florida.......................... 5.9
North Carolina................... 5.7
Pennsylvania..................... 5.4
Indiana.......................... 5.2
New Mexico....................... 4.2
North Dakota..................... 4.2
South Carolina................... 4.2
Alabama.......................... 3.5
Massachusetts.................... 3.5
Colorado......................... 3.3
Arizona.......................... 2.9
Wisconsin........................ 2.4
Georgia.......................... 2.1
Iowa............................. 2.1
Nebraska......................... 1.8
Washington....................... 1.8
Delaware......................... 1.7
Kansas........................... 0.6
District of Columbia............. 0.1
Registered Investment Companies.. 0.1
-----
101.4%
=====
Weighted average days to maturity 17.4
Credit Quality Allocation @(1)
A-1....... 82.6%
Not Rated+ 17.4
-----
100.0%
=====
- --------
* Calculated as a percentage of net assets.
@ Source: Standard and Poors
+ Represents debt issues that have either no rating, or the rating is
unavailable from the data source.
(1)Calculated as a percentage of total debt issues.
12
SunAmerica Municipal Money Market Fund
PORTFOLIO OF INVESTMENTS -- June 30, 2005 -- (unaudited)
Principal Value
Security Description Amount (Note 2)
SHORT-TERM INVESTMENT SECURITIES -- 101.4%
Alabama -- 3.5%
Stevenson, Alabama Industrial Development
Board Environmental Improvement
(LOC -- JP Morgan Chase Bank)
2.40% due 07/06/05+............................ $3,000,000 $3,000,000
----------
Arizona -- 2.9%
Maricopa County, Arizona Industrial
Development Authority, Series A
(LOC -- Wells Fargo Bank N.A.)
2.40% due on 07/07/05+......................... 1,510,000 1,510,000
Maricopa County, Arizona Industrial
Development Authority
(LOC -- Harris Trust & Savings Bank)
2.42% due 07/07/05+............................ 925,000 925,000
----------
2,435,000
----------
Colorado -- 3.3%
Colorado Health Facilities Authority
(LOC -- JP Morgan Chase Bank)
2.30% due 07/07/05+............................ 500,000 500,000
Colorado Springs, Colorado National Strength
and Conditioning Assoc.
(LOC -- Wells Fargo Bank N.A.)
2.40% due 07/07/05+............................ 1,495,000 1,495,000
Durango, Colorado Community Health & Human
Services (LOC -- Wells Fargo Bank N.A.)
2.40% due 07/07/05+............................ 835,000 835,000
----------
2,830,000
----------
Delaware -- 1.7%
Delaware State Economic Development
Authority
2.30% due 07/07/05+............................ 1,400,000 1,400,000
----------
District of Columbia -- 0.1%
District of Columbia, Trinity College
(LOC -- Wachovia Bank N.A.)
2.29% due 07/07/05+............................ 100,000 100,000
----------
Florida -- 5.9%
Charlotte County, Florida Utility, Series B
2.30% due 07/07/05+............................ 990,000 990,000
Lakeland, Florida Energy Systems, Series A
2.31% due 07/06/05+............................ 2,000,000 2,000,000
Lakeland, Florida Energy Systems
2.31% due 07/06/05+............................ 2,000,000 2,000,000
----------
4,990,000
----------
Georgia -- 2.1%
Fulton County, Georgia Development Authority
(LOC -- Wachovia Bank N.A.)
2.29% due 07/07/05+............................ 1,800,000 1,800,000
----------
Illinois -- 7.8%
Chicago, Illinois O'Hare International Airport,
Series B (LOC -- Societe Generale)
2.29% due 07/06/05+............................ 845,000 845,000
Chicago, Illinois Waterworks
(LOC -- Bank One N.A.)
2.23% due 07/06/05+............................ 500,000 500,000
Illinois Health Facilities Authority, Series B
2.34% due 07/07/05............................. 3,300,000 3,300,000
Principal Value
Security Description Amount (Note 2)
-----------------------------------------------------------------------
Illinois (continued)
Warren County, Illinois Community Medical
Center (LOC -- Wells Fargo Bank N.A.)
2.40% due 07/07/05+............................ $1,955,000 $1,955,000
----------
6,600,000
----------
Indiana -- 5.2%
Indiana Health Facility Financing
Authority, Series I
2.26% due 07/06/05+............................ 2,525,000 2,525,000
Marion, Indiana Economic Development
(LOC -- Bank of America N.A.)
2.30% due 07/06/05+............................ 1,900,000 1,900,000
----------
4,425,000
----------
Iowa -- 2.1%
Iowa Finance Authority, Series F
(LOC -- Wells Fargo Bank N.A.)
2.30% due 07/07/05+............................ 1,100,000 1,100,000
Iowa Finance Authority Child Services, Series B
(LOC -- Wells Fargo Bank N.A.)
2.40% due 07/07/05+............................ 370,000 370,000
Iowa Higher Education Loan Authority
(LOC -- Wells Fargo Bank N.A.)
2.40% due 07/07/05+............................ 100,000 100,000
Storm Lake, Iowa Higher Education Facilities
2.45% due 07/07/05+............................ 200,000 200,000
----------
1,770,000
----------
Kansas -- 0.6%
Shawnee, Kansas Industrial Revenue
(LOC -- JP Morgan Chase Bank)
2.57% due 07/01/05+............................ 500,000 500,000
----------
Massachusetts -- 3.5%
Woburn, Massachusetts Anticaption Notes
3.50% due 10/07/05............................. 3,008,557 3,008,557
----------
Michigan -- 10.7%
Detroit, Michigan Sewer Disposal System,
Series C-1
2.25% due 07/07/05+............................ 1,000,000 1,000,000
Detroit, Michigan Sewer Disposal System,
Series C-2
2.25% due 07/07/05+............................ 3,000,000 3,000,000
Michigan State, Department of Treasury,
Series A
3.50% due 09/30/05+............................ 4,516,551 4,516,551
Michigan State Strategic Fund Ltd. Obligation
(LOC -- Fifth Third Bank)
2.33% due 07/06/05+............................ 580,000 580,000
----------
9,096,551
----------
Missouri -- 6.2%
Missouri State Health & Educational Facilities
Authority, Series C
2.30% due 07/01/05+............................ 2,100,000 2,100,000
Missouri Higher Education Student Loan
Authority, Series B
2.35% due 07/06/05+............................ 1,500,000 1,500,000
St Louis, Missouri Planned Industrial Expansion
Authority (LOC -- Bank of America N.A.)
2.35% due 07/06/05+............................ 1,700,000 1,700,000
----------
5,300,000
----------
13
SunAmerica Municipal Money Market Fund
PORTFOLIO OF INVESTMENTS -- June 30, 2005 -- (unaudited) (continued)
Principal Value
Security Description Amount (Note 2)
SHORT-TERM INVESTMENT SECURITIES (continued)
Nebraska -- 1.8%
Douglas County, Nebraska Solid Waste
Disposal, Series A
(LOC -- Wachovia Bank N.A.)
2.35% due 07/07/05+............................ $1,500,000 $1,500,000
----------
New Mexico -- 4.2%
Albuquerque, New Mexico Educational Facilities
2.33% due 07/06/05+............................ 3,600,000 3,600,000
----------
North Carolina -- 5.7%
Charlotte Mecklenburg Hospital Authority Health
Care System, Series C
2.25% due 07/07/05+............................ 110,000 110,000
Charlotte, North Carolina Certificates of
Participation, Series B
2.35% due 07/07/05+............................ 3,000,000 3,000,000
Charlotte, North Carolina Certificates of
Participation, Series F
2.30% due 07/07/05+............................ 200,000 200,000
Charlotte, North Carolina Water & Sewer
System, Series B
2.30% due 07/07/05+............................ 250,000 250,000
Durham, North Carolina Public Improvement
2.29% due 07/07/05+............................ 300,027 300,027
Greensboro, North Carolina Enterprise System,
Series B
2.30% due 07/07/05+............................ 700,000 700,000
Mecklenburg County, North Carolina Certificates
of Participation
2.35% due 07/07/05+............................ 250,000 250,000
----------
4,810,027
----------
North Dakota -- 4.2%
North Dakota State Housing Finance Agency,
Series A
2.31% due 07/26/05+............................ 3,600,000 3,600,000
----------
Ohio -- 7.6%
Cleveland, Ohio Airport System, Series D
(LOC -- WestLb AG)
2.31% due 07/06/05+............................ 2,845,000 2,845,000
Cleveland, Ohio Waterworks, Series L
2.30% due 07/07/05+............................ 195,000 195,000
Franklin County, Ohio Hospital, Series B
(LOC -- Citibank N.A.)
2.27% due 07/07/05+............................ 3,395,000 3,395,000
----------
6,435,000
----------
Pennsylvania -- 5.4%
Delaware Valley, Pennsylvania Regional
Financial Authority, Series A
(LOC -- National Australia Bank)
2.28% due 07/06/05+............................ 300,000 300,000
Delaware Valley, Pennsylvania Regional
Financial Authority, Series C
(LOC -- National Australia Bank)
2.28% due 07/06/05+............................ 1,700,000 1,700,000
Pennsylvania State Higher Education Assistance
Agency, Series B
2.33% due 07/06/05+............................ 1,400,000 1,400,000
Principal Value
Security Description Amount (Note 2)
------------------------------------------------------------------------
Pennsylvania (continued)
Pennsylvania State Turnpike Commission,
Series A-1
2.32% due 07/06/05+.......................... $1,000,000 $ 1,000,000
Philadelphia, Pennsylvania Authority for
Industrial Development
(LOC -- GE Capital Corp.)
2.25% due 07/06/05+.......................... 200,000 200,000
-----------
4,600,000
-----------
South Carolina -- 4.2%
Piedmont Municipal Power Agency, Series B-1
2.30% due 07/06/05+.......................... 2,500,000 2,500,000
South Carolina Jobs Economic Development
Authority (LOC -- Bank of America N.A.)
2.35% due 07/06/05+.......................... 1,100,000 1,100,000
-----------
3,600,000
-----------
Texas -- 8.4%
Brownsville, Texas Utility System, Series A
2.45% due 08/24/05+.......................... 2,000,000 2,000,000
Harris County, Texas Industrial Development
Corp.
2.22% due 07/01/05+.......................... 2,500,000 2,500,000
Gulf Coast Waste Disposal Authority, Series A
(LOC -- JP Morgan Chase Bank)
2.35% due 07/07/05+.......................... 100,000 100,000
Texas State Tax & Revenue Anticipation Notes
3.00% due 08/31/05........................... 2,500,791 2,500,791
-----------
7,100,791
-----------
Washington -- 1.8%
Port Seattle, Washington Industrial
Development Corp. (LOC -- Citibank N.A.)
2.32% due 07/06/05+.......................... 1,500,000 1,500,000
-----------
Wisconsin -- 2.4%
Wisconsin State Health & Educational
Facilities Authority (LOC -- Citibank N.A.)
2.28% due 07/07/05+.......................... 2,000,000 2,000,000
-----------
Registered Investment Companies -- 0.1%
SSGA Tax Free Money Market Fund............... 91,318 91,318
-----------
TOTAL SHORT-TERM INVESTMENT SECURITIES
(amortized cost $86,092,244@)................. 101.4% 86,092,244
Liabilities in excess of other assets........... (1.4) (1,179,472)
---------- -----------
NET ASSETS...................................... 100.0% $84,912,772
========== ===========
- --------
@ At June 30, 2005, the cost of securities for federal income tax purposes
was the same for book purposes.
+ Variable rate security -- the rate reflected is as of June 30, 2005;
maturity date reflects next reset date.
LOC --Letter of Credit
See Notes to Financial Statements
14
SunAmerica Money Market Funds
NOTES TO FINANCIAL STATEMENTS -- June 30, 2005 -- (unaudited)
Note 1. Organization
SunAmerica Money Market Funds, Inc. (the "Corporation") is an open-end
diversified management investment company organized as a Maryland
Corporation. The Corporation consists of two investment funds (each, a
"Fund" and collectively, the "Funds"). Each Fund is a separate series with a
distinct investment objective. Each Fund is advised by AIG SunAmerica Asset
Management Corp. ("SAAMCo" or "Advisor"), an indirect wholly-owned
subsidiary of American International Group, Inc. ("AIG"). The investment
objective for each of the Funds is as follows:
The SunAmerica Money Market Fund ("Money Market Fund") seeks as high a level
of current income as is consistent with liquidity and stability of capital
through investment primarily in high-quality money market instruments
selected principally on the basis of quality and yield.
The SunAmerica Municipal Money Market Fund ("Municipal Money Market Fund")
seeks as high a level of current income as is consistent with liquidity and
stability of capital and that is exempt from regular federal income taxation
through investments selected primarily in high-quality money market
instruments primarily on the basis of quality and yield, and under normal
market conditions invests at least 80% of its assets in municipal securities
that are exempt from regular federal income tax.
The Money Market Fund currently offers four classes of shares: Class A,
Class B, Class C and Class I. The Municipal Money Market Fund currently
offers three classes of shares: Class A, Class B, and Class C. The classes
within the Funds are presented in the Statement of Assets and Liabilities.
The cost structure for each class is as follows:
Class A shares-- Class A shares are available with no front-end sales
charge. A 1.00% contingent deferred sales charge ("CDSC")
is imposed on shares sold within one year of original
purchase and a 0.50% CDSC is imposed on shares sold after
the first year and within the second year after purchase.
Class B shares-- Class B shares are offered at their net asset value per
share, without any front-end sales charge. However, there
is a declining contingent deferred sales charge ("CDSC") on
shares sold within six years of purchase. Class B shares
will convert automatically to Class A shares approximately
eight years after the purchase of such shares and at such
time are no longer subject to a distribution fee.
Class C shares-- Class C shares are offered at their net asset value per
share, without any front-end sales charge. However, there
is a contingent deferred sales charge of 1.00% on shares
sold within 12 months of purchase.
Class I shares-- Class I shares are offered at net asset value per share
without any sales charge, exclusively to certain
institutions.
Each class of shares bears the same voting, dividend, liquidation and other
rights and conditions. Class A, Class B, and Class C shares of each Fund has
its own 12b-1 plan, which allows for distributions and account maintenance
and service fees payments, except Class B and Class C shares are subject to
higher distribution fee rates.
Indemnifications: Under the Funds' organizational documents, its officers
and directors are indemnified against certain liability arising out of the
performance of their duties to the Funds. In addition, in the normal course
of business the Funds enter into contracts that contain a variety of
representations and warranties which provide general indemnifications. The
Funds' maximum exposure under these arrangements is unknown as this would
involve future claims that may be made against the Funds that have not yet
occurred. However, the Funds expect the risk of loss to be remote.
15
SunAmerica Money Market Funds
NOTES TO FINANCIAL STATEMENTS -- June 30, 2005 -- (unaudited)
(continued)
Note 2. Significant Accounting Policies
The preparation of financial statements in accordance with accounting
principles generally accepted in the United States of America requires
management to make estimates and assumptions that affect the reported
amounts and disclosures in the financial statements. Actual results could
differ from these estimates. The following is a summary of the significant
accounting policies followed by the Funds in the preparation of its
financial statements:
Security Valuations: Portfolio securities are valued at amortized cost,
which approximates market value. The amortized cost method involves valuing
a security at its cost on the date of purchase and thereafter assuming a
constant amortization/accretion to maturity of any discount or premium.
Repurchase Agreements: The Funds, along with other affiliated registered
investments companies, pursuant to exemptive relief granted by the
Securities and Exchange Commission, may transfer uninvested cash balances
onto a single joint account, the daily aggregate balance of which is
invested in one or more repurchase agreements collateralized by U.S.
Treasury or federal agency obligations. For repurchase agreements and joint
repurchase agreements, the Funds' custodian takes possession of the
collateral pledged for investments in such repurchase agreements. The
underlying collateral is valued daily on a mark to market basis to ensure
that the value, at the time the agreement is entered into, is equal to at
least 102% of the repurchase price, including accrued interest. In the event
of default of the obligation to repurchase, a Fund has the right to
liquidate the collateral and apply the proceeds in satisfaction of the
obligation. If the seller defaults and the value of the collateral declines
or if bankruptcy proceedings are commenced with respect to the seller of the
security, realization of the collateral by the Fund may be delayed or
limited.
As of June 30, 2005, the following Fund held an undivided interest in a
joint repurchase agreement with State Street Bank & Trust Co.:
Percentage Principal
Interest Amount
---------- ---------
Money Market Fund 0.22% $223,000
As of such date, the repurchase agreement in that joint account and the
collateral therefore were as follows:
State Street Bank & Trust Co., dated June 30, 2005, bearing interest at a
rate of 2.65% per annum, with a principal amount of $99,830,000, a
repurchase price of $99,837,349, and a maturity date of July 1, 2005. The
repurchase agreement is collateralized by the following:
Interest Maturity
Type of Collateral Rate Date Principal Amount Market Value
- ------------------ -------- -------- ---------------- ------------
U.S. Treasury Bond 8.88% 08/15/17 $28,360,588 $28,927,800
U.S. Treasury Bond 8.13 08/15/19 71,469,412 72,904,874
In addition, at June 30, 2005, the following Fund held an undivided interest
in a joint repurchase agreement with UBS Securities, LLC:
Percentage Principal
Interest Amount
---------- -----------
Money Market Fund 15.71% $55,000,000
As of such date, the repurchase agreement in that joint account and the
collateral therefore were as follows:
UBS Securities, LLC, dated June 30, 2005, bearing interest at a rate of
2.90% per annum, with a principal amount of $350,000,000, a repurchase price
of $350,028,194, and a maturity date of July 1, 2005. The repurchase
agreement is collateralized by the following:
Interest Maturity
Type of Collateral Rate Date Principal Amount Market Value
- ------------------ -------- -------- ---------------- ------------
U.S. Treasury Inflation Index Bonds 3.63% 04/15/28 $ 79,473,000 $ 81,062,500
U.S. Treasury Inflation Index Bonds 3.88 04/15/29 163,602,000 166,875,000
U.S. Treasury Inflation Index Bonds 3.38 04/15/32 106,925,000 109,064,735
16
SunAmerica Money Market Funds
NOTES TO FINANCIAL STATEMENTS -- June 30, 2005 -- (unaudited)
(continued)
Securities Transactions, Investment Income, Expenses, Dividends and
Distributions to Shareholders: Security transactions are recorded on a trade
date basis. Realized gains and losses on sales of investments are calculated
on the identified cost basis. Interest income, including the accretion of
discount and amortization of premium, is accrued daily; dividend income is
recorded on the ex-dividend date.
Net investment income, other than class specific expenses, and realized and
unrealized gains and losses, are allocated daily to each class of shares
based upon the relative net asset value of outstanding shares (or the value
of the dividend-eligible shares, as appropriate) of each class of shares at
the beginning of the day (after adjusting for the current capital shares
activity of the respective class).
Expenses common to all Funds, not directly related to individual Funds, are
allocated among the Funds based upon their relative net asset value or other
appropriate methods. In all respects, expenses are charged to each Fund as
incurred on a specific identification basis. Interest earned on cash
balances held at the custodian are shown as custody credits in the Statement
of Operations.
Dividends from net investment income, if any, are normally declared daily
and paid monthly. Capital gain distributions, if any, are paid annually. The
Funds record dividends and distributions to their shareholders on the
ex-dividend date. The amount of dividends and distributions from net
investment income and net realized capital gains are determined in
accordance with federal income tax regulations, which may differ from U.S.
generally accepted accounting principles. These "book/tax" differences are
either considered temporary or permanent in nature. To the extent these
differences are permanent in nature, such amounts are reclassified within
the capital accounts at fiscal year end based on their federal tax-basis
treatment; temporary differences do not require reclassification. Net
investment income (loss), net realized gain (loss), and net assets are not
affected by these reclassifications.
Note 3. Investment Advisory and Management Agreement, Distribution and Service
Agreement
The Funds have an Investment Advisory and Management Agreement (the
"Agreement") with SAAMCo. Under the Agreement, SAAMCo provides continuous
supervision of the Funds and administers its corporate affairs, subject to
general review by the Board of Directors. In connection therewith, SAAMCo
furnishes the Funds with office facilities, maintains certain of its books
and records, and pays the salaries and expenses of all personnel, including
officers of the Funds who are employees of SAAMCo and its affiliates.
The Funds pay SAAMCo a monthly investment advisory and management fee
calculated daily at the following annual percentages of each Fund's average
daily net assets:
Management
Assets Fees
---------------------------- ----------
Money Market Fund.......... $0 - $600 million 0.50%
(greater than) $600 million 0.45%
(greater than) $ 1.5 billion 0.40%
Municipal Money Market Fund (greater than) $0 0.35%
The Municipal Money Market Fund is subadvised by AIG Global Investment Corp.
("AIGGIC") pursuant to a subadvisory agreement with SAAMCo. AIGGIC is an
indirect wholly-owned subsidiary of AIG and an affiliate of SAAMCo. AIGGIC
receives the following fees from SAAMCo., based upon the Fund's average
daily net assets:
Sub-advisory
Assets Fees
--------------------------- ------------
Municipal Money Market Fund $0 - $200 million 0.25%
(greater than) $200 million 0.20%
(greater than) $500 million 0.15%
17
SunAmerica Money Market Funds
NOTES TO FINANCIAL STATEMENTS -- June 30, 2005 -- (unaudited)
(continued)
SAAMCo has contractually agreed to waive fees or reimburse expenses, if
necessary, at or below the following percentages of each Fund's average net
assets.
Fund Percentage
- ---- ----------
Money Market Class I.......... 0.80%
Municipal Money Market Class A 0.95
Municipal Money Market Class B 1.70
Municipal Money Market Class C 1.70
SAAMCo has voluntarily agreed to waive fees or reimburse expenses for the
period ended June 30, 2005 at the following percentages of each Fund's
average net assets.
Fund Percentage
- ---- ----------
Municipal Money Market Class A 0.06%
Municipal Money Market Class B 0.08
Municipal Money Market Class C 0.17
For the period ended June 30, 2005, SAAMCo agreed to reimburse expenses as
follows:
Fund
- ----
Money Market Class I.......... $ 2,553
Municipal Money Market Class A 26,238
Municipal Money Market Class B 2,406
Municipal Money Market Class C 1,248
The contractual expense waivers and fee reimbursements will continue
indefinitely, subject to termination by the Directors, including a majority
of the Independent Directors. The voluntary waivers and/or reimbursements
are expected to continue but may be terminated at any time. The exact amount
of the voluntary waivers and/or reimbursements may change on a day-to-day
basis.
The Funds have a distribution agreement with AIG SunAmerica Capital
Services, Inc. ("SACS" or the "Distributor"), an affiliate of the Advisor.
The Funds have adopted a Distribution Plan (the "Plan") in accordance with
the provisions of Rule 12b-1 under the 1940 Act. Rule 12b-1 permits an
investment company directly or indirectly to pay expenses associated with
the distribution of its shares ("distribution expenses") in accordance with
a plan adopted by the investment company's Board of Directors and approved
by its shareholders. Pursuant to such rule, the directors and the
shareholders of each class of shares of the Funds have adopted Distribution
Plans hereinafter referred to as the "Class A Plan," the "Class B Plan," and
the "Class C Plan." In adopting the Class A Plan, the Class B Plan, and the
Class C Plan, the directors determined that there was a reasonable
likelihood that each such Plan would benefit the Funds and the shareholders
of the respective class. The sales charge and distribution fees of the Class
B shares and Class C shares will not be used to subsidize the sale of Class
A shares.
Under the Class B Plan and the Class C Plan, the Distributor receives
payments from the Funds at the annual rate of up to 0.75% of the average
daily net assets of the Fund's Class B and Class C shares, to compensate the
Distributor and certain securities firms for providing sales and promotional
activities for distributing that class of shares. The distribution costs for
which the Distributor may be compensated include distribution fees paid to
broker-dealers that have sold Fund shares, commissions, and other expenses
such as those incurred for sales literature, prospectus printing and
distribution, and compensation to wholesalers. It is possible that in any
given year the amount paid to the Distributor under the Class B and Class C
Plans may exceed the Distributor's distribution costs as described above.
The Class A Plan does not provide for a distribution fee. The Distribution
Plans provide that each class of shares, other than Class I, of the Funds
may also pay the Distributor an account maintenance and service fee of up to
an annual rate of 0.15% of the aggregate average daily net assets of such
class of shares for payments to broker-dealers for providing continuing
account maintenance. In this regard, some payments are used to compensate
broker-dealers with account maintenance and service fees in an amount up to
0.15% per year of the assets maintained in the Funds by their customers.
Accordingly, for the period ended June 30, 2005, SACS received fees (see
Statement of Operations) based upon the aforementioned rates.
18
SunAmerica Money Market Funds
NOTES TO FINANCIAL STATEMENTS -- June 30, 2005 -- (unaudited)
(continued)
For the period ended June 30, 2005, SACS voluntarily reimbursed the
following expenses:
Fund
- ----
Municipal Money Market Class B $31
Municipal Money Market Class C 11
SACS receives the proceeds of contingent deferred sales charges paid by
investors in connection with certain redemptions of each Fund's Class A,
Class B and Class C shares. SACS has advised the Funds for the period ended
June 30, 2005, the proceeds received from redemptions are as follows:
Contingent Deferred Sales Charges
---------------------------------
Fund Class A Class B Class C
- ---- ------- -------- -------
Money Market.......... $6,250 $155,597 $9,437
Municipal Money Market -- 606 4
The Funds entered into a Service Agreement with AIG SunAmerica Fund
Services, Inc. ("SAFS"), an affiliate of the Advisor. Under the Service
Agreement, SAFS performs certain shareholder account functions by assisting
the Funds' transfer agent in connection with the services that it offers to
its shareholders. The Service Agreement permits the Funds to reimburse SAFS
for the costs incurred in providing such services, based upon an annual rate
of 0.22% of average daily net assets, which is approved annually by the
Directors. For the period ended June 30, 2005, the Funds incurred the
following expenses which are included in transfer agent fees and expenses in
the Statement of Operations to compensate SAFS pursuant to the terms of the
Service Agreement:
Payable at
Fund Expenses June 30, 2005
- ---- ---------- -------------
Money Market Class A.......... $1,788,015 $284,153
Money Market Class B.......... 42,613 6,556
Money Market Class C.......... 19,080 3,000
Money Market Class I.......... 13,355 2,267
Municipal Money Market Class A 101,748 15,336
Municipal Money Market Class B 557 77
Municipal Money Market Class C 848 143
Note 4. Federal Income Taxes
The Funds intend to comply with the requirements of the Internal Revenue
Code applicable to regulated investment companies and distribute all of
their taxable income, including any net realized gain on investments, to its
shareholders. Therefore, no federal tax provisions are required. Each Fund
is considered a separate entity for tax purposes.
The following details the tax basis distributions as well as the components
of distributable earnings. The tax basis components of distributable
earnings differ from the amounts reflected in the Statement of Assets and
Liabilities by temporary book/tax differences primarily arising from
cumulative pension expenses.
Distributable Earnings Tax Distributions
---------------------------------------- --------------------
For the year ended December 31, 2004
-------------------------------------------------------------
Long-term Gains/ Unrealized Long-Term
Ordinary Capital Loss Appreciation Ordinary Capital
Fund Income Carryover (Depreciation) Income Gains
- ---- -------- ---------------- -------------- ---------- ---------
Money Market.......... $347,345 $ -- $ -- $8,165,643 $ --
Municipal Money Market 30,469 -- -- 366,908 --
19
SunAmerica Money Market Funds
NOTES TO FINANCIAL STATEMENTS -- June 30, 2005 -- (unaudited)
(continued)
Under the current law, capital losses related to securities realized after
October 31 and prior to the Fund's fiscal year end may be deferred as
occurring the first day of the following year. For the fiscal year ended
December 31, 2004, the Funds elected to defer capital losses as follows:
Deferred Post-October
Fund Capital Loss
- ---- ---------------------
Money Market.......... $13,929
Municipal Money Market 16,250
At December 31, 2004, for Federal income tax purposes, the Municipal Money
Market Fund had a capital loss carryforward of $8,072, which will expire in
the year 2012, which is available to offset future capital gains, if any.
Note 5. Capital Share Transactions
Transactions in each class of shares of the Funds, all at $1.00 per share,
for the period ended June 30, 2005, and for the prior year were as follows:
Money Market Fund
-------------------------------------------------------------------------------------------
Class A Class B Class C(1)
------------------------------ --------------------------- --------------------------
For the For the For the
six months For the six months For the six months For the
ended year ended year ended year
June 30, ended June 30, ended June 30, ended
2005 December 31, 2005 December 31, 2005 December 31,
(unaudited) 2004 (unaudited) 2004 (unaudited) 2004
------------- --------------- ------------ ------------ ------------ ------------
Shares sold......... $ 447,452,416+ $ 1,032,086,849++ $ 13,376,302 $ 51,971,494 $ 16,899,914 $ 44,114,142
Reinvested dividends 14,731,624 8,038,526 170,954 27,583 79,414 12,541
Shares redeemed..... (538,439,117) (1,054,375,452) (20,309,917)+ (54,090,452)++ (17,790,590) (47,431,940)
------------- --------------- ------------ ------------ ------------ ------------
Net increase
(decrease)......... $ (76,255,077) $ (14,250,077) $ (6,762,661) $ (2,091,375) $ (811,262) $ (3,305,257)
============= =============== ============ ============ ============ ============
Municipal Money Market Fund
------------------------------------------------------------------------------------------
Class A Class B Class C(1)
------------------------------ --------------------------- --------------------------
For the For the For the
six months For the six months For the six months For the
ended year ended year ended year
June 30, ended June 30, ended June 30, ended
2005 December 31, 2005 December 31, 2005 December 31,
(unaudited) 2004 (unaudited) 2004 (unaudited) 2004
------------- --------------- ------------ ------------ ------------ ------------
Shares sold......... $ 92,327,810# $ 129,348,654## $ 312,290 $ 279,737 $ 1,693,665 $ 783,160
Reinvested dividends 638,450 364,275 1,220 2,416 896 170
Shares redeemed..... (106,454,353) (146,141,140) (381,764)# (2,953,009)## (1,319,450) (818,374)
------------- --------------- ------------ ------------ ------------ ------------
Net increase
(decrease)......... $ (13,488,093) $ (16,428,211) $ (68,254) $ (2,670,856) $ 375,111 $ (35,044)
============= =============== ============ ============ ============ ============
-------------------------
Class I
------------------------
For the For the
six months year
ended June ended
30, 2005 December 31,
(unaudited) 2004
----------- ------------
Shares sold......... $ 3,848,721 $10,886,039
Reinvested dividends 118,651 66,605
Shares redeemed..... (3,243,636) (8,693,987)
----------- -----------
Net increase
(decrease)......... $ 723,736 $ 2,258,657
=========== ===========
Shares sold.........
Reinvested dividends
Shares redeemed.....
Net increase
(decrease).........
Note 6. Directors' Retirement Plan
The Directors of the SunAmerica Money Market Funds, Inc. have adopted the
AIG SunAmerica Disinterested Trustees' and Directors' Retirement Plan (the
"Retirement Plan") effective January 1, 1993 for the unaffiliated Directors.
The Retirement Plan provides generally that if an unaffiliated Director who
has at least 10 years of consecutive service as a Disinterested Director of
any of the AIG SunAmerica mutual funds (an "Eligible Director")
- --------
+ Includes automatic conversion of Class B shares in the amount of $1,845,120
to Class A shares.
++ Includes automatic conversion of Class B shares in the amount of $2,916,293
to Class A shares.
# Includes automatic conversion of Class B shares in the amount of $259,990 to
Class A shares.
## Includes automatic conversion of Class B shares in the amount of $4,801 to
Class A shares.
(1) Effective February 23, 2004, Class II shares were redesignated as Class C
shares.
20
SunAmerica Money Market Funds
NOTES TO FINANCIAL STATEMENTS -- June 30, 2005 -- (unaudited)
(continued)
retires after reaching age 60 but before age 70, or who has at least 5 years
of consecutive service after reaching age 65 but before age 70, or dies
while a Director, such person will be eligible to receive a retirement or
death benefit from each AIG SunAmerica mutual fund with respect to which he
or she is an Eligible Director. As of each birthday, prior to the 70th
birthday, but in no event for a period greater than 10 years, each Eligible
Director will be credited with an amount equal to 50% of his or her regular
fees (excluding committee fees) for services as a Disinterested Director of
each AIG SunAmerica mutual fund for the calendar year in which such birthday
occurs. In addition, an amount equal to 8.50% of any amounts credited under
the preceding clause during prior years, is added to each Eligible
Director's account until such Eligible Director reaches his or her 70th
birthday. An Eligible Director may receive benefits payable under the
Retirement Plan, at his or her election, either in one lump sum or in up to
fifteen annual installments. Any undistributed amounts shall continue to
accrue interest at 8.50%.
The following amounts for the Retirement Plan Liabilities are included in
the Directors' fees and expense line on the Statement of Assets and
Liabilities and the amounts for the Retirement Plan Expenses are included in
the Director's fees and expenses line on the Statement of Operations.
Retirement Plan Retirement Plan Retirement Plan
Liability Expense Payments
--------------- --------------- ---------------
Fund As of June 30, 2005
- ---- -----------------------------------------------
Money Market.......... $236,009 $8,581 $7,122
Municipal Money Market 5,952 493 107
Note 7. Interfund Lending Agreement
Pursuant to exemptive relief granted by the Securities and Exchange
Commission, the Funds are permitted to participate in an interfund lending
program among investment companies advised by SAAMCo or an affiliate. The
interfund lending program allows the participating Funds to borrow money
from and loan money to each other for the temporary or emergency purposes.
An interfund loan will be made under this facility only if the participating
Funds receive a more favorable interest rate than would otherwise be
available from a typical bank for a comparable transaction. For the period
ended June 30, 2005, none of the Funds participated in the program.
Note 8. Other Information
On May 26, 2005, the New York Attorney General and the New York
Superintendent of Insurance filed a civil complaint against American
International Group, Inc. ("AIG") as well as its former Chairman and Chief
Executive Officer and former Vice Chairman and Chief Financial Officer, in
the Supreme Court of the State of New York. The complaint asserts claims
under New York's Martin Act and Insurance Law, among others, and makes
allegations concerning certain transactions entered into by AIG and certain
of its subsidiaries, but in no case involving any subsidiary engaged in
providing management or administrative services to the Funds. The complaint
seeks disgorgement, injunctive relief, punitive damages and costs, among
other things.
AIG is the indirect parent company and an affiliated person of the AIG
SunAmerica Asset Management Corp. ("Adviser"), AIG SunAmerica Capital
Services, Inc. (the "Distributor") and AIG Global Investment Corp. (the
"Subadviser"). Neither the Adviser, the Distributor, the Subadviser or their
respective officers and directors nor the Funds have been named in the
complaint, and the complaint does not seek any penalties against them.
In the Adviser's view, the matters alleged in the lawsuit are not material
in relation to the financial position of the Adviser, the Distributor or the
Subadviser, or to their ability to provide their respective services to the
Funds. Due to a provision in the law governing the operation of mutual
funds, however, if the lawsuit results in an injunction being entered
against AIG, then the Adviser, the Distributor and the Subadviser will need
to obtain permission from the Securities and Exchange Commission to continue
to service the Funds. While the Securities and Exchange Commission has
granted this type of relief to others in the past in similar circumstances,
there is no assurance that this permission would be granted.
21
SunAmerica Money Market Funds
DIRECTORS AND OFFICERS INFORMATION -- June 30, 2005 -- (unaudited)
The following table contains basic information regarding the Directors and
Officers that oversee operations of the Funds and other investment companies
within the Fund Complex.
Number of
Position Term of Funds in
Held With Office and Principal Fund Complex Other
Name, Address SunAmerica Length of Occupations During Overseen by Directorships Held
and Date of Birth* Complex Time Served(4) Past 5 years Director(1) by Director(2)
- -------------------- ---------- -------------- ------------------- ------------ -------------------
Directors
Jeffrey S. Burum Director 2004- Founder and CEO of 39 None
DOB: February 27, present National Housing
1963 Development
Corporation
(January 2000 to
present); Founder,
Owner and Partner
of Colonies
Crossroads, Inc.
(January 2000 to
present); Owner and
Managing Member of
Diversified Pacific
Development Group,
LLC (June 1990 to
present).
Judith L. Craven Director 2001- Retired 79 Director. A.G. Belo
DOB: October 6, 1945 present Corporation (1992
to present);
Director, Sysco
Corporation (1996
to present);
Director, Luby's
Inc. (1998 to
present); Director,
University of Texas
Board of Regents
(May 2001 to
present)
William F. Devin Director 2001- Retired 79 Member of the Board
DOB: December 30, present of Governors,
1938 Boston Stock
Exchange
(1985-Present);
Samuel M. Eisenstat Chairman 1985- Attorney, solo 49 Director of North
DOB: March 7, 1940 of the present practitioner; European Oil
Board Royalty Trust.
Stephen J. Gutman Director 1984- Associate, Corcoran 49 None
DOB: May 10, 1943 present Group (Real Estate)
(2003 to present);
Partner and Member
of Managing
Directors, Beau
Brummell -- Soho
LLC (Licensing of
menswear specialty
retailing and other
activities) (June
1988-present)
Peter A. Harbeck(3) Director 1994- President, CEO and 88 None
DOB: January 23, present Director, SAAMCo.
1954 (August 1995 to
present); Director,
AIG SunAmerica
Capital Services,
Inc. ("SACS")
(August 1993 to
present) President
and CEO, AIG
Advisor Group, Inc.
(June 2004 to
present)
22
SunAmerica Money Market Funds
DIRECTORS AND OFFICERS INFORMATION -- June 30, 2005 -- (unaudited)
(continued)
Number of
Position Term of Funds in
Held With Office and Principal Fund Complex Other
Name, Address SunAmerica Length of Occupations During Overseen by Directorships Held
and Date of Birth* Complex Time Served(4) Past 5 years Director(1) by Director(2)
- ------------------- ---------- -------------- ------------------- ------------ -------------------
William J. Shea(5) Director 2004- President and CEO, 49 Chairman of the
DOB: February 9, present Conseco, Inc. Board, Royal and
1948 (Financial SunAlliance,
Services) U.S.A., Inc. (March
(2001-2004); 2005 to present);
Chairman of the Director, Boston
Board of Centennial Private Holdings
Technologies, Inc. (October 2004 to
(1998 to 2001); present)
Vice Chairman, Bank
Boston Corporation
(1993-1998)
Officers
Vincent M. Marra President 2004- Senior Vice N/A N/A
DOB: May 28, 1950 present President and Chief
Operating Officer,
SAAMCo (February
2003 to Present);
Chief
Administrative
Officer, Chief
Operating Officer
and Chief Financial
Officer, Carret &
Co., LLC (June 2002
to February 2003);
President and Chief
Operating Officer,
Bowne Digital
Solutions (1999 to
May 2002)
Donna M. Handel Treasurer 2002- Senior Vice N/A N/A
DOB: June 25, 1966 present President, SAAMCo
(December 2004 to
Present); Vice
President, SAAMCo
(1997 to December
2004), Assistant
Treasurer (1993 to
2002)
- --------
* The business address for each Director and Officer is the Harborside
Financial Center, 3200 Plaza 5, Jersey City, NJ 07311-4992.
(1) The "Fund Complex" consists of all registered investment company portfolios
for which SAAMCo serves as investment adviser or business manager. The
"Fund Complex" includes the SunAmerica Money Market Funds (2 funds),
SunAmerica Equity Funds (9 funds), SunAmerica Income Funds (6 funds),
SunAmerica Focused Series, Inc. (17 portfolios), SunAmerica Focused Alpha
Growth Fund (1 fund), Anchor Series Trust (9 portfolios), SunAmerica Senior
Floating Rate Fund, Inc. (1 fund), SunAmerica Series Trust (32 portfolios),
VALIC Company I (24 portfolios), VALIC Company II (15 funds), Seasons
Series Trust (24 portfolios) and AIG Series Trust (4 portfolios).
(2) Directorships of companies required to report to the Securities and
Exchange Commission under the Securities Exchange Act of 1934 (i.e. "public
companies") or other investment companies registered under the Investment
Company Act of 1940.
(3) Interested Director, as defined within the Investment Company Act of 1940,
because he is an officer and a director of the advisor and a director of
the principal underwriter of, the Trust.
(4) Directors serve until their successors are duly elected and qualified,
subject to the Director's retirement plan as discussed in Note 6 of the
financial statements.
(5) Effective on November 30, 2004, William J. Shea began serving as a Director.
Additional information concerning the Directors and Officers is contained in
the Statement of Additional Information and is available without charge by
calling (800) 858-8850.
23
SunAmerica Money Market Funds
If you would like additional information:
[_] Call FastFacts -- our 24-hour, automated account and fund information
hotline at 800-654-4760.
[_] Visit www.sunamericafunds.com for more up-to-date information.
AIG SunAmerica Mutual Funds
thank you for your continued support.
24
[LOGO] AIG Sun America
Mutual Funds
Harborside Financial Center
3200 Plaza 5
Jersey City, NJ 07311-4992
Directors/Trustees Investment Adviser DISCLOSURE OF QUARTERLY
Samuel M. Eisenstat AIG SunAmerica Asset PORTFOLIO HOLDINGS
Peter A. Harbeck Management Corp. The Fund is required to
Dr. Judith L. Craven Harborside Financial file its com-plete
William F. Devin Center schedule of portfolio
Stephen J. Gutman 3200 Plaza 5 holdings with the U.S.
Jeffrey S. Burum Jersey City, NJ Securities and Exchange
William J. Shea 07311-4992 Commission for its first
and third fiscal quarters
Officers Distributor on Form N-Q. Once filed,
Vincent M. Marra, AIG SunAmerica Capital the Fund's Form N-Q will
President Services, Inc. be available without
Donna M. Handel, Harborside Financial charge on the U.S.
Treasurer Center Securities and Exchange
J. Steven Neamtz, Vice 3200 Plaza 5 Commission's website at
President Jersey City, NJ www.sec.gov. You can also
Timothy P. Pettee, Vice 07311-4992 obtain cop-ies of Form
President N-Q by (i) visiting the
Brian Wiese, Vice Shareholder Servicing U.S. Securities and
President Agent Exchange Commis-sion's
Cynthia Gibbons, Vice AIG SunAmerica Fund Public Reference Room in
President and Chief Services, Inc. Washington, DC
Compliance Officer Harborside Financial (information on the
Thomas Lynch, Secretary Center operation of the Public
Gregory R. Kingston, 3200 Plaza 5 Reference Room may be
Vice President and Jersey City, NJ obtained by calling
Assistant Treasurer 07311-4992 1-800-SEC-0330); (ii)
Corey Issing, Assistant sending your request and
Secretary Custodian and Transfer a duplicating fee to the
Agent U.S. Securities and
State Street Bank and Exchange Commis-sion's
Trust Company Public Reference Room,
P.O. Box 419572 Washington, DC 20549-0102
Kansas City, MO or (iii) sending your
64141-6572 request electronically to
publicinfo@sec.gov.
VOTING PROXIES ON FUND
PORTFOLIO SECURITIES This report is submitted
A description of the solely for the general
policies and proce-dures information of
that the Fund uses to shareholders of the Fund.
determine how to vote Distribution of this
proxies relating to report to persons other
secu-rities held in the than shareholders of the
Fund's portfolio which is Fund is authorized only
available in the Fund's in connection with a
State-ment of Additional currently effective
Information, may be prospectus, setting forth
obtained without charge details of the Fund,
upon re-quest, by calling which must precede or
(800) 858-8850. This accompany this report.
information is also
available from the EDGAR The accompanying report
database on the U.S. has not been audited by
Secu-rities and Exchange independent auditors and
Commission's website at accordingly no opinion
http://www.sec.gov. has been ex-pressed
thereon.
PROXY VOTING RECORD ON
SUNAMERICA MONEY MARKET
FUNDS
Information regarding how
SunAmerica Money Market
Funds voted proxies
relating to securities
held in SunAmerica Money
Market Funds during the
twelve month period ended
June 30, 2005 is
available without charge,
upon request, by
calling (800) 858-8850 or
on the U.S. Secu-rities
and Exchange Commission's
website at www.sec.gov.
25
[LOGO] AIG SunAmerica
Mutual Funds
Distributed by:
AIG SunAmerica Capital Services, Inc.
Harborside Financial Center
3200 Plaza 5
Jersey City, NJ 07311-4992
Investors should carefully consider the investment objectives, risks, charges
and expenses of any mutual fund before investing. This and other important
information is contained in the prospectus, which can be obtained from your
financial adviser or from the AIG SunAmerica Sales Desk at 800-858-8850, ext.
6003. Read the prospectus carefully before you invest. Funds distributed by AIG
SunAmerica Capital Services, Inc.
www.sunamericafunds.com
MMSAN-6/05
Item 2. Code of Ethics
Not applicable.
Item 3. Audit Committee Financial Expert.
Not applicable.
Item 4. Principal Accountant Fees and Services.
Not applicable.
Item 5. Audit Committee of Listed Registrants.
Not applicable.
Item 6. Schedule of Investments.
Included in Item 1 to the Form.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End
Management Investment Companies.
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable.
Item 9. Purchases of Equity Securities by Closed-End Management Investment
Company and Affiliated Purchasers.
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders.
Not applicable.
Item 11. Controls and Procedures.
(a) An evaluation was performed within 90 days of the filing of this
report, under the supervision and with the participation of the
registrant's management, including the President and Treasurer, of the
effectiveness of the design and operation of the registrant's
disclosure controls and procedures. Based on that evaluation, the
registrant's management, including the President and Treasurer,
concluded that the registrant's disclosure controls and procedures are
effective.
(b) There was no change in the registrant's internal control over financial
reporting (as defined in Rule 30a-3(d) under the Investment Company Act
of 1940 (17 CFR 270.30a-3(d))) that occurred during the second fiscal
quarter of the period covered by this report that has materially
affected, or is reasonably likely to materially affect, the
registrant's internal contro1 over financial reporting.
Item 12. Exhibits.
(a) (1) Not applicable.
(2) Certification pursuant to Rule 30a-2(a) under the Investment
Company Act of 1940 (17 CFR 270.30a-2(a)) attached hereto as Exhibit
99.CERT.
(3) Not applicable.
(b) Certification pursuant to Section 906 of the Sarbanes-Oxley Act of
2002 attached hereto as Exhibit 99.906.CERT.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
SunAmerica Money Market Funds, Inc.
By: /s/ Vincent M. Marra
-------------------
Vincent M. Marra
President
Date: September 7, 2005
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By: /s/ Vincent M. Marra
-------------------
Vincent M. Marra
President
Date: September 7, 2005
By: /s/ Donna M. Handel
-------------------
Donna M. Handel
Treasurer
Date: September 7, 2005