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
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
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Date of fiscal year end: December 31
--------------------------
Date of reporting period: June 30, 2006
-------------------------
Item 1. Reports to Stockholders
SunAmerica Money Market Funds, Inc., Semi-Annual Report at June 30,
2006.
2006
Semi-annual
SunAmerica Report
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[PHOTO]
[GRAPHIC]
Money Market Funds
Table of Contents
SHAREHOLDERS' LETTER............... 1
EXPENSE EXAMPLE.................... 2
STATEMENT OF ASSETS AND LIABILITIES 4
STATEMENT OF OPERATIONS............ 5
STATEMENT OF CHANGES IN NET ASSETS. 6
FINANCIAL HIGHLIGHTS............... 7
PORTFOLIO OF INVESTMENTS........... 9
NOTES TO FINANCIAL STATEMENTS...... 15
DIRECTORS AND OFFICERS INFORMATION. 22
June 30, 2006 SEMI-ANNUAL REPORT
Shareholders' Letter
Dear Shareholders,
We are pleased to present the semi-annual shareholder report for the
SunAmerica Money Market Fund and the SunAmerica Municipal Money Market Fund for
the six-month period ending June 30, 2006.
Since the Federal Reserve initiated its tightening policy in 2004, monetary
policy remains at the forefront. The semi-annual period marked new leadership
at the Federal Reserve. Chairman Bernanke sent mixed signals to the market,
initially raising hope that the end of the tightening cycle was near. However,
high energy prices and strong economic growth raised concerns about
inflationary pressures and the potential need for further interest rate
increases. As a result, the Federal Reserve recently increased its rate from
5.00% to 5.25%.
Based on this environment, both Funds purchased high-quality securities with
shorter maturities in order to capitalize on reinvestment opportunities at
higher rates. As evidence more clearly suggests that the end of the tightening
cycle is near, the Funds will focus on longer-term maturities to capture the
attractive rates.
Throughout the semi-annual period, both Funds remained invested in the
highest quality of taxable and non-taxable money fund securities. In doing so,
the Funds maintained their chief objective of principal preservation and their
secondary objective of yield enhancement.
We remain diligent in the management of your assets and thank you for your
continued investment in our Funds.
Sincerely,
/s/ Peter A. Harbeck
Peter A. Harbeck,
President and CEO
AIG SunAmerica Asset Management Corp.
- --------
An investment in the Fund is not insured or guaranteed by the Federal Deposit
Insurance Corporation or any other government agency. Although the Fund seeks
to preserve the value of your investment of $1.00 per share, it is possible to
lose money by investing in the Fund.
Past performance is no guarantee of future results.
1
SunAmerica Money Market Funds
EXPENSE EXAMPLE -- June 30, 2006 -- (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 purchases and 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, 2006 and held until June 30,
2006.
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, 2006" 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, 2006" 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, 2006" column does not include
administrative fees that may apply to qualified retirement plan accounts. See
the Funds' prospectus and/or your retirement plan document for a full
description of these fees. Had these fees been included, the "Expenses Paid
During the Six Months Ended June 30, 2006" 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, 2006"
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, 2006" column does not
include administrative fees that may apply to qualified retirement plan
accounts. See the Fund's prospectus and/or your retirement plan document for
full description of these fees. Had these fees been included, the "Expenses
Paid During the Six Months Ended June 30, 2006" 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 your 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, 2006 -- (unaudited) (continued)
Actual Hypothetical
----------------------------------------------- ---------------------------------------------------
Ending Ending Account
Account Value Expenses Paid Value using Expenses Paid
Beginning Using Actual During the Beginning a Hypothetical 5% During the
Account Value at Returns at Six Months Ended Account Value at Assumed Return at Six Months Ended
January 1, 2006 June 30, 2006 June 30, 2006 January 1, 2006 June 30, 2006 June 30, 2006
---------------- ------------- ---------------- ---------------- ----------------- ----------------
Money Market Fund
Class A............ $1,000.00 $1,019.26 $4.46 $1,000.00 $1,020.38 $4.46
Class B............ $1,000.00 $1,014.93 $8.74 $1,000.00 $1,016.12 $8.75
Class C ........... $1,000.00 $1,014.94 $8.69 $1,000.00 $1,016.17 $8.70
Class I#........... $1,000.00 $1,019.72 $4.01 $1,000.00 $1,020.83 $4.01
Municipal Money Market
Fund
Class A#........... $1,000.00 $1,012.67 $3.84 $1,000.00 $1,020.98 $3.86
Class B#........... $1,000.00 $1,008.21 $8.32 $1,000.00 $1,016.51 $8.35
Class C#........... $1,000.00 $1,008.21 $8.22 $1,000.00 $1,016.61 $8.25
Expense Ratio
as of
June 30, 2006*
--------------
Money Market Fund
Class A............ 0.89%
Class B............ 1.75%
Class C ........... 1.74%
Class I#........... 0.80%
Municipal Money Market
Fund
Class A#........... 0.77%
Class B#........... 1.67%
Class C#........... 1.65%
- --------
* Expenses are equal to the Fund's annualized expense ratio multiplied by the
average account value over the period, multiplied by 181 days divided by 365
days. These ratios do not reflect transaction costs, including sales charges
on purchase payments, contingent deferred sales charges, small account fees
and administrative fees, if applicable to your account. Please refer to your
Prospectus and/or your qualified retirement plan document for more
information.
# During the stated period, the investment adviser and distributor either
waived a portion of or all of the fees and assumed a portion of or all
expenses for the Funds. As a result, if these fees and expenses had not been
waived, the "Actual/Hypothetical Ending Account Value" would have been lower
and the "Actual/Hypothetical Expenses Paid During the Six Months Ended June
30, 2006" and the "Expense Ratios" would have been higher.
3
SunAmerica Money Market Funds
STATEMENT OF ASSETS AND LIABILITIES -- June 30, 2006
Money Market Municipal Money
Fund Market Fund
-------------- ---------------
ASSETS:
Short-term investment securities, at value* (unaffiliated).......... $1,702,284,135 $ 102,798,485
Repurchase agreements (cost equals market value).................... 40,479,000 --
-------------- ---------------
Total Investments................................................. $1,742,763,135 $ 102,798,485
-------------- ---------------
Cash................................................................ 473 8,292,818
Receivable for:
Fund shares sold.................................................. 3,891,601 298,751
Dividends and interest............................................ 4,209,200 749,592
Prepaid expenses and other assets................................... 11,929 631
Due from investment adviser for expense reimbursements/fee waivers.. 1,449 4,062
-------------- ---------------
Total assets...................................................... 1,750,877,787 112,144,339
-------------- ---------------
LIABILITIES:
Payable for--
Investments purchased............................................. -- 2,005,925
Investment advisory and management fees........................... 692,034 29,361
Distribution and service maintenance fees......................... 260,539 13,185
Transfer agent fees and expenses.................................. 362,179 19,846
Directors' fees and expenses...................................... 239,110 6,934
Other accrued expenses............................................ 350,779 38,102
Dividends payable................................................. 180,673 2,111
-------------- ---------------
Total liabilities................................................. 2,085,314 2,115,464
-------------- ---------------
Net Assets....................................................... $1,748,792,473 $ 110,028,875
============== ===============
NET ASSETS REPRESENTED BY:
Common stock, $.001 par value (10 billion shares authorized)........ $ 1,748,799 $ 110,028
Paid-in capital..................................................... 1,746,955,787 109,918,229
-------------- ---------------
1,748,704,586 110,028,257
Accumulated undistributed net investment income (loss).............. 87,887 618
-------------- ---------------
Net assets....................................................... $1,748,792,473 $ 110,028,875
============== ===============
Class A:
Net assets.......................................................... $1,674,656,546 $ 109,067,745
Shares outstanding.................................................. 1,674,659,697 109,067,002
Net asset value, offering and redemption price per share
(excluding any applicable contingent deferred sales charge)........ $ 1.00 $ 1.00
============== ===============
Class B:
Net assets.......................................................... $ 32,066,171 $ 598,632
Shares outstanding.................................................. 32,066,876 598,572
Net asset value, offering and redemption price per share
(excluding any applicable contingent deferred sales charge)........ $ 1.00 $ 1.00
============== ===============
Class C+:
Net assets.......................................................... $ 25,859,840 $ 362,498
Shares outstanding.................................................. 25,860,810 362,509
Net asset value, offering and redemption price per share
(excluding any applicable contingent deferred sales charge)........ $ 1.00 $ 1.00
============== ===============
Class I:
Net assets.......................................................... $ 16,209,916 $ --
Shares outstanding.................................................. 16,212,180 --
Net asset value, offering and redemption price per share............ $ 1.00 $ --
============== ===============
*Amortized cost of short-term investment securities (unaffiliated) . $1,702,284,135 $ 102,798,485
============== ===============
See Notes to Financial Statements
4
SunAmerica Money Market Funds
STATEMENT OF OPERATIONS -- For the six months ended June 30, 2006
Money Market Municipal Money
Fund Market Fund
------------ ---------------
INVESTMENT INCOME:
Interest (unaffiliated)................................................................ $39,239,054 $1,495,094
Dividends (unaffiliated)............................................................... -- 3,147
----------- ----------
Total investment income............................................................. 39,239,054 1,498,241
----------- ----------
EXPENSES:
Investment advisory and management fees................................................ 3,831,024 157,281
Distribution and service maintenance fees:
Class A.............................................................................. 1,191,302 66,420
Class B.............................................................................. 136,381 2,261
Class C.............................................................................. 84,958 3,659
Transfer agent fees and expenses:
Class A.............................................................................. 1,785,957 98,704
Class B.............................................................................. 45,332 1,320
Class C.............................................................................. 25,460 1,033
Class I.............................................................................. 19,601 --
Registration fees:
Class A.............................................................................. 18,504 10,109
Class B.............................................................................. 5,630 5,574
Class C.............................................................................. 5,575 5,351
Class I.............................................................................. 5,588 --
Custodian and accounting fees.......................................................... 162,499 9,011
Reports to shareholders................................................................ 173,936 3,795
Audit and tax fees..................................................................... 10,897 10,898
Legal fees............................................................................. 16,167 2,316
Directors' fees and expenses........................................................... 50,402 2,908
Other expenses......................................................................... 17,083 961
----------- ----------
Total expenses before fee waivers, expense reimbursements and custody credits....... 7,586,296 381,601
Fees waived and expenses reimbursed by investment adviser and distributor (Note 3).. (4,209) (12,428)
Custody credits earned on cash balances............................................. (10,152) (15,377)
----------- ----------
Net expenses........................................................................ 7,571,935 353,796
----------- ----------
Net investment income (loss)........................................................... 31,667,119 1,144,445
----------- ----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS........................ $31,667,119 $1,144,445
=========== ==========
See Notes to Financial Statements
5
SunAmerica Money Market Funds
STATEMENT OF CHANGES IN NET ASSETS
Money Market Fund
---------------------------------
For the six months For the year
ended ended
June 30, 2006 December 31,
(unaudited) 2005
------------------ --------------
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss)................................................. $ 31,667,119 $ 39,505,841
-------------- --------------
Net increase (decrease) in net assets resulting from operations................ $ 31,667,119 $ 39,505,841
-------------- --------------
Distributions to shareholders from:
Net investment income (Class A).............................................. (30,631,959) (38,360,984)
Net investment income (Class B).............................................. (454,457) (535,077)
Net investment income (Class C).............................................. (289,358) (303,588)
Net investment income (Class I).............................................. (291,173) (317,343)
-------------- --------------
Total distributions to shareholders............................................ (31,666,947) (39,516,992)
-------------- --------------
Net increase (decrease) in net assets resulting from capital share transactions
(Note 5)...................................................................... 102,207,253 (55,074,247)
-------------- --------------
Total increase (decrease) in net assets........................................ 102,207,425 (55,085,398)
============== ==============
NET ASSETS:
Beginning of period............................................................ 1,646,585,048 1,701,670,446
-------------- --------------
End of period*................................................................. $1,748,792,473 $1,646,585,048
============== ==============
*Includes accumulated undistributed net investment income (loss)............... $ 87,887 $ 87,715
============== ==============
Municipal Money
Market Fund
-------------------------------
For the six months For the year
ended ended
June 30, 2006 December 31,
(unaudited) 2005
------------------ ------------
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss)................................................. $ 1,144,445 $ 1,428,607
------------ ------------
Net increase (decrease) in net assets resulting from operations................ $ 1,144,445 $ 1,428,607
------------ ------------
Distributions to shareholders from:
Net investment income (Class A).............................................. (1,133,919) (1,413,877)
Net investment income (Class B).............................................. (4,177) (4,110)
Net investment income (Class C).............................................. (6,311) (10,621)
Net investment income (Class I).............................................. -- --
------------ ------------
Total distributions to shareholders............................................ (1,144,407) (1,428,608)
------------ ------------
Net increase (decrease) in net assets resulting from capital share transactions
(Note 5)...................................................................... 23,128,531 (11,193,701)
------------ ------------
Total increase (decrease) in net assets........................................ 23,128,569 (11,193,702)
============ ============
NET ASSETS:
Beginning of period............................................................ 86,900,306 98,094,008
------------ ------------
End of period*................................................................. $110,028,875 $ 86,900,306
============ ============
*Includes accumulated undistributed net investment income (loss)............... $ 618 $ 580
============ ============
See Notes to Financial Statements
6
SunAmerica Money Market Funds
FINANCIAL HIGHLIGHTS
MONEY MARKET FUND
-----------------
Net Net Ratio of net
Asset Dividends Asset Net Assets Ratio of investment
Value Net from net Value end of expenses income to
beginning investment investment end of Total period to average average
Period Ended of period income(1) income period Return(2) (000's) net assets net assets
- -------------------- --------- ---------- ---------- ------ --------- ---------- ---------- ------------
Class A
- -
12/31/01 $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
12/31/05 1.000 0.024 (0.024) 1.000 2.38 1,587,641 0.89 2.35
01/01/06-06/30/06(7) 1.000 0.019 (0.019) 1.000 1.93 1,674,656 0.89(5) 3.86(5)
Class B
- -
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(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)
12/31/05 1.000 0.015 (0.015) 1.000 1.52 31,738 1.74 1.46
01/01/06-06/30/06(7) 1.000 0.015 (0.015) 1.000 1.49 32,066 1.75(5) 3.00(5)
Class C+
- -
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)
12/31/05 1.000 0.015 (0.015) 1.000 1.54 13,497 1.71 1.59
01/01/06-06/30/06(7) 1.000 0.015 (0.015) 1.000 1.49 25,860 1.74(5) 3.07(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)
12/31/05 1.000 0.025 (0.025) 1.000 2.49 13,708 0.80(4) 2.49(4)
01/01/06-06/30/06(7) 1.000 0.020 (0.020) 1.000 1.97 16,210 0.80(4)(5) 3.96(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):
12/31/01 12/31/02 12/31/03 12/31/04 12/31/05 06/30/06(5)
-------- -------- -------- -------- -------- -----------
Class B. -- % 0.04% 0.51% 0.39% -- % -- %
Class C+ 0.05 0.04 0.53 0.39 -- --
Class I. 0.24 0.14 0.02 0.09 0.05 0.06
(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(4) net assets(4)
- -------------------- --------- ---------- ---------- ------ --------- -------- ------------- -------------
Class A
- -
10/31/01(5) $1.000 $0.020 $(0.020) $1.000 2.39% $ 3,972 0.78% 2.39%
11/01/01-12/31/01(5) 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
12/31/05 1.000 0.016 (0.016) 1.000 1.62 84,817 0.81 1.58
01/01/06-06/30/06(6) 1.000 0.013 (0.013) 1.000 1.27 109,068 0.77(3) 2.56(3)
Class B
- -
10/31/01(5) $1.000 $0.020 $(0.020) $1.000 2.39% $ 2,613 0.78% 2.38%
11/01/01-12/31/01(5) 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
12/31/05 1.000 0.008 (0.008) 1.000 0.81 520 1.62 0.80
01/01/06-06/30/06(6) 1.000 0.008 (0.008) 1.000 0.82 599 1.67(3) 1.66(3)
Class C+
- -
10/31/01(5) $1.000 $0.020 $(0.020) $1.000 2.40% $ 136 0.78% 2.33%
11/01/01-12/31/01(5) 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
12/31/05 1.000 0.008 (0.008) 1.000 0.82 1,563 1.59 1.02
01/01/06-06/30/06(6) 1.000 0.008 (0.008) 1.000 0.82 362 1.65(3) 1.55(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)Net of the following expense reimbursements/waivers (based on average net
assets):
10/31/01 12/31/01(3) 12/31/02 12/31/03 12/31/04 12/31/05 06/30/06(3)
-------- ----------- -------- -------- -------- -------- -----------
Class A. 1.18% 2.51% 0.20% 0.03% 0.00% 0.04% 0.00%
Class B. 1.18 2.59 1.25 1.03 0.87 1.44 2.38
Class C+ 1.18 7.84 9.68 7.45 4.20 0.47 1.24
(5)The financial information for the periods prior to November 16, 2001
reflects the financial information for the North American Municipal Money
Market Fund.
(6)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, 2006 -- (unaudited)
Industry Allocation *
Foreign Banks.................... 20.8%
Asset Backed/Multi-Asset......... 12.3
Asset Backed/Securities.......... 11.5
Asset Backed/Receivables......... 10.6
Commercial Banks................. 9.2
Finance.......................... 8.9
Money Center Banks............... 6.2
Diversified Financial Services... 5.6
Domestic Bank.................... 4.3
Investment Bank/Brokerage........ 4.3
Finance-Investment Bank/Brokerage 2.6
Sovereign Agency................. 1.5
Regional Bank.................... 1.3
Municipalities................... 0.6
----
99.7%
====
Weighted average days to maturity 32.6
Credit Quality Allocation @#
A-1......................... 96.2%
Government-Agency........... 3.8
-----
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, 2006 -- (unaudited)
Principal Value
Security Description Amount (Note 2)
SHORT-TERM INVESTMENT SECURITIES -- 97.4%
ASSET-BACKED COMMERCIAL PAPER -- 38.2%
Amstel Funding Corp.
5.14% due 08/14/06*.................... $ 4,000,000 $ 3,976,013
5.19% due 11/22/06*................... 24,231,000 23,734,951
5.30% due 07/06/06*................... 53,058,000 53,034,566
Amsterdam Funding Corp.
5.12% due 08/01/06*.................... 15,000,000 14,938,133
5.19% due 08/07/06*................... 11,000,000 10,944,496
Clipper Receivables Co., LLC
5.14% due 07/06/06..................... 30,000,000 29,987,150
CRC Funding, LLC
5.16% due 07/28/06*.................... 24,000,000 23,914,000
5.16% due 08/03/06*................... 24,000,000 23,893,360
Dorada Finance, Inc.
5.27% due 07/27/06*.................... 41,000,000 40,855,953
Edison Asset Securitization, LLC
5.11% due 09/27/06*.................... 24,000,000 23,707,027
5.15% due 08/30/06*................... 34,000,000 33,717,894
Fountain Square Commercial Funding Corp.
5.14% due 08/28/06*.................... 23,000,000 22,816,102
5.14% due 09/27/06*................... 11,240,000 11,101,985
5.33% due 09/15/06*................... 11,000,000 10,879,483
5.35% due 10/12/06*................... 13,000,000 12,804,874
Galaxy Funding, Inc.
5.02% due 08/01/06*.................... 15,000,000 14,939,342
5.13% due 08/28/06*................... 30,000,000 29,760,600
5.13% due 09/01/06*................... 30,000,000 29,743,500
Greyhawk Funding, LLC
5.24% due 07/18/06*.................... 32,000,000 31,930,133
Sedna Finance, Inc.
5.24% due 08/31/06*.................... 27,000,000 26,768,130
Sheffield Receivables
5.16% due 08/09/06*.................... 20,000,000 19,893,933
Sydney Capital Corp.
5.14% due 08/14/06*.................... 7,440,000 7,395,385
5.26% due 08/09/06*................... 6,710,000 6,673,725
5.29% due 08/11/06*................... 12,864,000 12,790,279
5.29% due 08/14/06*................... 34,009,000 33,799,108
Thames Asset Global Securitization, Inc.
5.12% due 08/29/06*.................... 35,009,000 34,725,194
White Pine Finance, LLC
5.04% due 10/31/06*.................... 14,000,000 13,764,800
Windmill Funding Corp.
5.18% due 08/14/06*.................... 25,000,000 24,848,917
5.28% due 07/06/06*................... 40,000,000 39,982,400
------------
Total Asset-Backed Commercial Paper
(amortized cost $667,321,433)......... 667,321,433
------------
CERTIFICATES OF DEPOSIT -- 17.8%
Caylon NY
5.07% due 12/13/06+.................... 23,000,000 22,976,986
Deutshe Bank
5.14% due 10/23/06..................... 60,000,000 59,988,673
5.18% due 10/04/06+................... 15,000,000 15,000,000
Dexia Credit Local NY
5.07% due 07/03/06+.................... 24,000,000 23,999,093
First Tennessee Bank
5.31% due 08/18/06..................... 22,500,000 22,500,000
Principal Value
Security Description Amount (Note 2)
-------------------------------------------------------------
Fortis Bank
5.12% due 08/28/06................. $30,000,000 $ 30,000,000
5.14% due 10/23/06................ 30,000,000 30,000,388
Royal Bank of Scotland
4.31% due 09/29/06................. 24,000,000 24,000,000
Societe Generale
5.14% due 09/05/06................. 25,000,000 25,000,000
Wells Fargo Bank N.A.
5.23% due 07/17/06................. 57,000,000 57,000,000
------------
Total Certificates of Deposit
(amortized cost $310,465,140)..... 310,465,140
------------
COMMERCIAL PAPER -- 34.5%
Bear Stearns Co., Inc.
5.03% due 08/14/06................. 35,000,000 34,794,608
5.08% due 10/10/06................ 16,000,000 15,776,480
5.24% due 07/28/06................ 25,000,000 24,898,111
Citigroup Funding, Inc.
4.96% due 07/19/06................. 24,000,000 23,947,093
5.07% due 10/24/06................ 35,000,000 34,443,004
BNP Paribas Finance, Inc.
4.99% due 09/21/06................. 38,000,000 37,578,622
Barclays US Funding, LLC
5.05% due 08/09/06................. 30,000,000 29,844,292
Dexia Delaware, LLC
4.98% due 07/26/06................. 45,000,000 44,856,825
Goldman Sachs Group, Inc.
5.22% due 07/18/06+................ 24,000,000 24,000,000
HBOS Treasury Services
4.97% due 07/19/06................. 30,000,000 29,933,733
5.06% due 09/11/06................ 25,000,000 24,754,028
HSBC USA, Inc.
5.05% due 09/01/06................. 25,000,000 24,789,583
Rabobank USA Finance Corp.
5.25% due 07/03/06................. 44,000,000 44,000,000
Royal Bank of Canada
5.01% due 10/23/06................. 24,000,000 23,625,920
Societe Generale North America, Inc.
4.99% due 08/22/06................. 24,000,000 23,833,667
5.27% due 07/07/06................ 27,000,000 26,984,190
State Street Boston Corp.
5.22% due 07/07/06................. 37,000,000 36,978,540
Svenska Handelsbank, Inc.
4.90% due 02/08/07................. 19,000,000 19,000,000
UBS Americas, Inc.
5.27% due 07/03/06................. 40,000,000 40,000,000
UBS Finance Delaware, LLC
5.27% due 07/07/06................. 40,000,000 39,976,600
------------
Total Commercial Paper
(amortized cost $604,015,296)..... 604,015,296
------------
MEDIUM TERM NOTES -- 4.8%
Merrill Lynch & Co.
5.18% due 07/17/06+................ 21,000,000 21,000,000
Sedna Finance, Inc.
5.07% due 07/03/06*+............... 19,000,000 18,999,446
Sigma Finance, Inc.
5.15% due 07/17/06*+............... 25,000,000 24,999,178
10
SunAmerica Money Market Fund
PORTFOLIO OF INVESTMENTS -- June 30, 2006 -- (unaudited) (continued)
Principal Value
Security Description Amount (Note 2)
MEDIUM TERM NOTES (continued)
Wells Fargo & Co.
5.09% due 07/03/06+.................. $19,000,000 $ 19,000,000
--------------
Total Medium Term Notes
(amortized cost $83,998,624)........ 83,998,624
--------------
TAXABLE MUNICIPAL MEDIUM TERM NOTES -- 0.6%
Illinois Student Assistance Commission
5.35% due 07/05/06+
(amortized cost $10,000,000)......... 10,000,000 10,000,000
--------------
U.S. GOVERNMENT AGENCIES -- 1.5%
Agency for International Development
Panama
5.45% due 07/05/06+.................. 2,476,179 2,483,642
Federal National Mortgage Association
4.00% due 08/08/06................... 24,000,000 24,000,000
--------------
Total U.S. Government Agencies
(amortized cost $26,483,642)........ 26,483,642
--------------
Total Short-Term Investment Securities -- 97.4%
(amortized cost $1,702,284,135)..... 1,702,284,135
--------------
Principal Value
Security Description Amount (Note 2)
--------------------------------------------------------------
REPURCHASE AGREEMENTS -- 2.3%
UBS Securities LLC
Joint Repurchase Agreement(1)..... $40,479,000 $ 40,479,000
--------------
Total Repurchase Agreements
(amortized cost $40,479,000)..... 40,479,000
--------------
TOTAL INVESTMENTS
(amortized cost $1,742,763,135)#. 99.7% 1,742,763,135
Other assets less liabilities...... 0.3 6,029,338
----------- --------------
NET ASSETS......................... 100.0% $1,748,792,473
=========== ==============
- --------
* 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, 2006, the
aggregate value of these securities was $681,332,907, representing 39.0%
of net assets. Unless otherwise indicated, these securities are not
considered to be illiquid.
# At June 30, 2006, 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, 2006;
maturity date reflects next reset date.
(1) See Note 2 for details of the Joint Repurchase Agreement
See Notes to Financial Statements
11
SunAmerica Municipal Money Market Fund
PORTFOLIO PROFILE -- June 30, 2006 -- (unaudited)
State Allocation *
Texas............................ 7.8%
New York......................... 7.7
North Carolina................... 6.5
Michigan......................... 6.0
Illinois......................... 5.4
Ohio............................. 5.4
Indiana.......................... 5.1
Washington....................... 5.0
Arizona.......................... 4.3
Florida.......................... 3.7
Georgia.......................... 3.7
Pennsylvania..................... 3.7
Kentucky......................... 3.4
New Mexico....................... 3.4
Missouri......................... 3.0
Tennessee........................ 2.9
North Dakota..................... 2.8
Alabama.......................... 2.7
South Carolina................... 2.5
Colorado......................... 2.0
Wisconsin........................ 1.8
Idaho............................ 1.7
Iowa............................. 1.3
Alaska........................... 0.9
Registered Investment Companies.. 0.7
----
93.4%
====
Weighted average days to maturity 13.9
Credit Quality Allocation @ #
A-1.......................... 63.5%
SP-1......................... 9.6
Not Rated+................... 26.9
-----
100.0%
=====
- --------
* Calculated as a percentage of net assets.
@ Source: Standard and Poors
# Calculated as a percentage of total debt issues.
+ Represents debt issues that have either no rating, or the rating is
unavailable from the data source.
12
SunAmerica Municipal Money Market Fund
PORTFOLIO OF INVESTMENTS -- June 30, 2006 -- (unaudited)
Principal Value
Security Description Amount (Note 2)
SHORT-TERM INVESTMENT SECURITIES -- 93.4%
Alaska - 0.9%
Anchorage, Alaska Tax Anticipation Notes
4.50% due 12/28/06............................. $1,000,000 $1,005,472
----------
Alabama -- 2.7%
Stevenson, Alabama Industrial Development
Board Environmental Improvement
(LOC-JP Morgan Chase Bank)
4.05% due 07/05/06+............................ 3,000,000 3,000,000
----------
Arizona -- 4.3%
Maricopa County, Arizona Industrial
Development Authority, Series A
(LOC-Wells Fargo Bank N.A.)
4.07% due on 07/06/06+......................... 1,510,000 1,510,000
Maricopa County, Arizona Industrial
Development Authority
(LOC-Harris Trust & Savings Bank)
4.05% due 07/06/06+............................ 850,000 850,000
Mesa Industrial Development Authority
3.97% due 07/05/06+............................ 2,300,000 2,300,000
----------
4,660,000
----------
Colorado -- 2.0%
Colorado Springs, Colorado National Strength
and Conditioning Assoc.
(LOC-Wells Fargo Bank N.A.)
4.07% due 07/06/06+............................ 1,380,000 1,380,000
Durango, Colorado Community Health &
Human Services
(LOC-Wells Fargo Bank N.A.)
4.07% due 07/06/06+............................ 750,000 750,000
----------
2,130,000
----------
Florida -- 3.7%
Lakeland, Florida Energy Systems, Series A
3.99% due 07/05/06+............................ 2,000,000 2,000,000
Lakeland, Florida Energy Systems
3.99% due 07/05/06+............................ 2,000,000 2,000,000
----------
4,000,000
----------
Georgia -- 3.7%
Dahlonega Downtown Development Authority
(LOC-Wachovia Bank N.A.)
3.96% due 07/06/06+............................ 1,800,000 1,800,000
Fulton County, Georgia Development Authority
(LOC-Wachovia Bank N.A.)
3.98% due 07/06/06+............................ 1,700,000 1,700,000
Municipal Electric Authority of Georgia
(LOC-Bayerische Landesbank)
3.92% due 07/05/06+............................ 500,000 500,000
----------
4,000,000
----------
Idaho - 1.7%
Idaho Health Facilities Authority
3.98% due 07/03/06+............................ 1,825,000 1,825,000
----------
Illinois -- 5.4%
Chicago, Illinois O'Hare International Airport,
Series B (LOC-Societe Generale)
3.95% due 07/05/06+............................ 845,000 845,000
Chicago, Illinois Waterworks
(LOC-Bank One N.A.)
3.95% due 07/05/06+............................ 500,000 500,000
Illinois Health Facilities Authority, Series B
4.01% due 07/06/06+............................ 2,800,000 2,800,000
Principal Value
Security Description Amount (Note 2)
----------------------------------------------------------------------
Illinois (continued
Warren County, Illinois Community Medical
Center (LOC-Wells Fargo Bank N.A.)
4.07% due 07/06/06+........................... $1,805,000 $1,805,000
----------
5,950,000
----------
Indiana -- 5.1%
Indiana Health Facility Financing Authority,
Series B
4.03% due 07/03/06+........................... 1,700,000 1,700,000
Indiana Health Facility Financing Authority,
Series I
4.02% due 07/05/06+........................... 2,825,000 2,825,000
Marion, Indiana Economic Development
(LOC-Bank of America N.A.)
4.00% due 07/05/06+........................... 1,105,000 1,105,000
----------
5,630,000
----------
Iowa -- 1.3%
Iowa Finance Authority, Series F
4.03% due 07/06/06+........................... 1,100,000 1,100,000
Iowa Higher Education Loan Authority
(LOC-Wells Fargo Bank N.A.)
4.07% due 07/06/06+........................... 100,000 100,000
Storm Lake, Iowa Higher Education Facilities
4.12% due 07/06/06+........................... 185,000 185,000
----------
1,385,000
----------
Kentucky - 3.4%
Breckinridge County, Kentucky Lease Program
(LOC-U.S. Bank N.A.)
4.00% due 07/05/06+........................... 1,165,000 1,165,000
Breckinridge County, Kentucky Lease Program,
Series A
(LOC-U.S. Bank N.A.)
4.00% due 07/05/06+........................... 2,630,000 2,630,000
----------
3,795,000
----------
Michigan -- 6.0%
Detroit, Michigan Sewer Disposal System,
Series C-1
3.98% due 07/06/06+........................... 975,000 975,000
Detroit, Michigan Sewer Disposal System,
Series C-2
3.98% due 07/06/06+........................... 3,000,000 3,000,000
Michigan Municipal Bond Authority, Series B-1
4.00% due 08/18/06............................ 2,500,000 2,501,375
Michigan State Strategic Fund Ltd. Obligation
(LOC-Fifth Third Bank)
4.00% due 07/05/06+........................... 145,000 145,000
----------
6,621,375
----------
Missouri -- 3.0%
Missouri Higher Education Student Loan
Authority, Series B
4.01% due 07/06/06+........................... 1,800,000 1,800,000
Missouri Higher Education Student Loan
Authority, Series C
4.01% due 07/05/06+........................... 1,500,000 1,500,000
----------
3,300,000
----------
New Mexico -- 3.4%
Albuquerque, New Mexico Educational Facilities
4.01% due 07/05/06+........................... 3,700,000 3,700,000
----------
13
SunAmerica Municipal Money Market Fund
PORTFOLIO OF INVESTMENTS -- June 30, 2006 (unaudited) -- (continued)
Principal Value
Security Description Amount (Note 2)
SHORT-TERM INVESTMENT SECURITIES (continued)
New York -- 7.7%
New York, New York Series A-10
(LOC-Morgan Guaranty Trust)
4.01% due 07/03/06+............................. $ 100,000 $ 100,000
New York, New York Series E-3
(Bank of America N.A.)
3.96% due 07/06/06+............................. 4,000,000 4,000,000
New York, New York Series B
(LOC-Morgan Guaranty Trust)
4.01% due 07/03/06+............................. 200,000 200,000
New York City Municipal Water Finance Authority
4.01% due 07/03/06+............................. 4,200,000 4,200,000
----------
8,500,000
----------
North Carolina -- 6.5%
Charlotte, North Carolina Certificates of
Participation, Series B
4.05% due 07/06/06+............................. 3,000,000 3,000,000
Durham, North Carolina Public Improvement
3.97% due 07/06/06+............................. 300,000 300,019
Mecklenburg County, North Carolina Certificates
of Participation
4.00% due 07/06/06+............................. 200,000 200,000
North Carolina Medical Care Commission
Hospital
3.95% due 07/06/06+............................. 2,035,000 2,035,000
North Carolina State Water & Sewer
(LOC-Bank of America N.A.)
4.00% due 07/05/06+............................. 1,000,000 1,000,000
Winston-Salem, North Carolina Water & Sewer
System, Series C
4.00% due 07/05/06+............................. 595,000 595,000
----------
7,130,019
----------
North Dakota -- 2.8%
North Dakota State Housing Finance Agency,
Series A
4.03% due 07/05/06+............................. 3,135,000 3,135,000
----------
Ohio -- 5.4%
Cleveland, Ohio Airport System, Series D
(LOC-WestLb AG)
4.03% due 07/05/06+............................. 2,745,000 2,745,000
Franklin County, Ohio Hospital, Series B
(LOC-Citibank N.A.)
3.96% due 07/06/06+............................. 3,240,000 3,240,000
----------
5,985,000
----------
Pennsylvania -- 3.7%
Delaware Valley, Pennsylvania Regional Financial
Authority, Series A
(LOC-National Australia Bank)
3.97% due 07/05/06+............................. 300,000 300,000
Delaware Valley, Pennsylvania Regional Financial
Authority, Series C
(LOC-National Australia Bank)
3.97% due 07/05/06+............................. 1,700,000 1,700,000
Pennsylvania State Turnpike Commission,
Series U
3.96% due 07/06/06+............................. 900,000 900,000
Pennsylvania State Turnpike Commission,
Series A-1
3.98% due 07/05/06+............................. 1,000,000 1,000,000
Principal Value
Security Description Amount (Note 2)
-----------------------------------------------------------------------
Pennsylvania (continued)
Philadelphia, Pennsylvania Authority for
Industrial Development
(LOC-GE Capital Corp.)
4.00% due 07/05/06+......................... $ 200,000 $ 200,000
------------
4,100,000
------------
South Carolina -- 2.5%
Piedmont Municipal Power Agency, Series B-6
3.95% due 07/05/06+......................... 1,800,000 1,800,000
South Carolina Jobs Economic Development
Authority (LOC-Bank of America N.A.)
4.02% due 07/05/06+......................... 1,000,000 1,000,000
------------
2,800,000
------------
Tennessee -- 2.9%
Metropolitan Government Nashville &
Davidson County Tennessee
5.25% due 10/15/06.......................... 1,225,000 1,230,556
Montgomery County Public Building Authority
(LOC-Bank of America N.A.)
4.05% due 07/03/06+......................... 2,000,000 2,000,000
------------
3,230,556
------------
Texas -- 7.8%
Brownsville, Texas Utility System, Series A
3.95% due 07/05/06+......................... 800,000 800,000
Harris County Industrial Development Corp.
3.99% due 07/03/06+......................... 3,800,000 3,800,000
Texas State Tax & Revenue Anticipation Notes
4.50% due 08/31/06.......................... 4,000,000 4,009,414
------------
8,609,414
------------
Washington -- 5.0%
King County, Washington
4.50% due 11/01/06.......................... 4,000,000 4,014,520
Port Seattle, Washington Industrial
Development Corp. (LOC-Citibank N.A.)
4.04% due 07/05/06+......................... 1,500,000 1,500,000
------------
5,514,520
------------
Wisconsin -- 1.8%
Wisconsin State Health & Educational
Facilities Authority (LOC-Citibank N.A.)
3.97% due 07/06/06+......................... 2,000,000 2,000,000
------------
Registered Investment Companies -- 0.7%
SSGA Tax Free Money Market -- Class A
3.34% due 07/03/05+......................... 792,129 792,129
---------- ------------
TOTAL SHORT-TERM INVESTMENT SECURITIES
(amortized cost $102,798,485)* .............. 93.4% 102,798,485
Other assets less liabilities................ 6.6 7,230,390
---------- ------------
NET ASSETS..................................... 100.0% $110,028,875
========== ============
- --------
* At June 30, 2006, 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, 2006;
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, 2006
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, except as may otherwise be provided in the Funds'
registration statement. Class A, Class B, and Class C shares of each Fund
has its own 12b-1 plan, 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 may contain the obligation
to indemnify others. The Funds' maximum exposure under these arrangements is
unknown. Currently, however, the Funds expect the risk of loss to be remote.
Note 2. Significant Accounting Policies
The preparation of financial statements in accordance with U.S. generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts and disclosures in the
financial 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:
15
SunAmerica Money Market Funds
NOTES TO FINANCIAL STATEMENTS -- June 30, 2006 -- (continued)
Security Valuations: Portfolio securities are valued at amortized cost,
which approximates market value. The amortized cost method involves valuing
a security at its cost on the date of purchase and thereafter assuming a
constant amortization/accretion to maturity of any discount or premium.
Repurchase Agreements: The Funds, along with other affiliated registered
investments companies, pursuant to exemptive relief granted by the
Securities and Exchange Commission, may transfer uninvested cash balances
onto a single joint account, the daily aggregate balance of which is
invested in one or more repurchase agreements collateralized by U.S.
Treasury or federal agency obligations. For repurchase agreements and joint
repurchase agreements, the Funds' custodian takes possession of the
collateral pledged for investments in such repurchase agreements. The
underlying collateral is valued daily on a mark to market basis to ensure
that the value, at the time the agreement is entered into, is equal to at
least 102% of the repurchase price, including accrued interest. In the event
of default of the obligation to repurchase, a Fund has the right to
liquidate the collateral and apply the proceeds in satisfaction of the
obligation. If the seller defaults and the value of the collateral declines
or if bankruptcy proceedings are commenced with respect to the seller of the
security, realization of the collateral by the Fund may be delayed or
limited.
At June 30, 2006, the following Funds held an undivided interest in a joint
repurchase agreement with UBS Securities, LLC.
Percentage Principal
Fund Interest Amount
---- ---------- -----------
Money Market Fund............. 32.38% $40,479,000
As of that date, the repurchase agreement in that joint account and the
collateral therefore were as follows:
UBS Securities, LLC, dated June 30, 2006, bearing interest at a rate of
4.40% per annum, with a principal amount of $125,000,000, a repurchase price
of $125,045,833, and a maturity date of July 3, 2006. 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....................... 2.00% 01/15/26 $45,526,000 $46,437,500
U.S. Treasury Inflation Index
Bonds....................... 3.88 04/15/29 79,474,000 81,064,961
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
16
SunAmerica Money Market Funds
NOTES TO FINANCIAL STATEMENTS -- June 30, 2006 -- (continued)
extent these differences are permanent in nature, such amounts are
reclassified within the capital accounts at fiscal year end based on their
federal tax-basis treatment; temporary differences do not require
reclassification. Net investment income (loss), net realized gain (loss),
and net assets are not affected by these reclassifications.
The Funds intend to comply with the requirements of the Internal Revenue
Code applicable to regulated investment companies and distribute all of
their taxable income, including any net realized gain on investments, to its
shareholders. Therefore, no federal tax provisions are required. Each Fund
is considered a separate entity for tax purposes.
On July 13, 2006, the Financial Accounting Standards Board (FASB) released
FASB Interpretation No. 48 "Accounting for Uncertainty in Income Taxes" (FIN
48). FIN 48 provides guidance for how uncertain tax positions should be
recognized, measured, presented and disclosed in the financial statements.
FIN 48 requires the evaluation of tax positions taken or expected to be
taken in the course of preparing the Funds' tax returns to determine whether
the tax positions are "more-likely-than-not" of being sustained by the
applicable tax authority. Adoption of FIN 48 is required for fiscal years
beginning after December 15, 2006 and is to be applied to all open tax years
as of the effective date. At this time, management is evaluating the
implications of FIN 48 and its impact in the financial statements, if any,
has not yet been determined.
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%
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
17
SunAmerica Money Market Funds
NOTES TO FINANCIAL STATEMENTS -- June 30, 2006 -- (continued)
SAAMCo has voluntarily agreed to waive fees or reimburse expenses for the
period ended June 30, 2006 at the following percentages of each Fund's
average net assets: Municipal Money Market Class A 0.00%; Municipal Money
Market Class B 0.03%; Municipal Money Market Class C 0.05%.
For the period ended December 31, 2005, SAAMCo agreed to waive fees or
reimburse expenses as follows:
Fund
----
Money Market Class I.............................. $4,209
Municipal Money Market Class A.................... 1,506
Municipal Money Market Class B.................... 5,920
Municipal Money Market Class C.................... 5,002
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
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 a
particular class will not be used to subsidize the sale of shares of any
other class.
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, 2006, SACS received fees (see
Statement of Operations) based upon the aforementioned rates.
SACS receives the proceeds of contingent deferred sales charges paid by
investors in connection with certain redemptions of each Fund's Class A,
Class B and Class C shares. SACS has advised the Funds for the period ended
June 30, 2006, the proceeds received from redemptions are as follows:
Contingent Deferred
Sales Charges
-------------------------------
Fund Class A Class B Class C
---- ------- ----------- ----------
Money Market....................... $-- $68,863 $7,204
Municipal Money Market............. -- (352) 985
18
SunAmerica Money Market Funds
NOTES TO FINANCIAL STATEMENTS -- June 30, 2006 -- (continued)
The Funds have entered into a Service Agreement with AIG SunAmerica Fund
Services ("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 the
shareholders of the Fund. The Service Agreement, which permits the Funds to
compensate SAFS for services rendered based upon annual rate of 0.22% of
average daily net assets, is approved annually by the Trustees. For the
period ended June 30, 2006, the Funds incurred the following expenses which
are included in transfer agent fees and expenses payable line in the
Statement of Asset and Liabilities and in transfer agent fees and expenses
in the Statement of Operations to compensate SAFS pursuant to the terms of
the Service Agreement:
Payable at
Expenses June 30, 2006
- ---------- -------------
Money Market Fund Class A.......... $1,727,129 $295,678
Money Market Fund Class B.......... 32,951 5,820
Money Market Fund Class C.......... 20,456 4,536
Money Market Fund Class I.......... 15,976 2,935
Municipal Money Market Fund Class A 96,105 16,975
Municipal Money Market Fund Class B 545 102
Municipal Money Market Fund Class C 890 62
Note 4. Federal Income Taxes
The following details the tax basis distributions as well as the components
of distributable earnings. The tax basis components of distributable
earnings differ from the amounts reflected in the Statement of Assets and
Liabilities by temporary book/tax differences primarily arising from
cumulative pension expenses.
Distributable Earnings Tax Distributions
------------------------------------------ ---------------------------------
For the year ended December 31, 2005
----------------------------------------------------------------------------
Long-term Gains/ Unrealized Long-Term
Ordinary Capital Loss Appreciation Ordinary Capital
Fund Income Carryover (Depreciation) Income Gains Tax Exempt
- ---- --------- ---------------- -------------- ------------ --------- ----------
Money Market....................... $ 325,324 $ -- $ -- $ 39,516,992 $ -- $ --
Municipal Money Market............. 31,249* -- -- -- -- 1,428,608
- --------
*Taxexempt distributable earnings
At December 31, 2005, for Federal income tax purposes, the Municipal Money
Market Fund had a capital loss carryforward of $8,072 and $16,252, which
will expire in the years 2012 and 2013, respectively, 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, 2006, and for the prior year were as follows:
SunAmerica Money Market Fund
-------------------------------------------------------------------------------------------
Class A Class B Class C
------------------------------ --------------------------- --------------------------
For the For the For the For the
six months For the six months year six months For the
ended year ended ended ended year
June 30, ended June 30, December June 30, ended
2006 December 31, 2006 31, 2006 December 31,
(unaudited) 2005 (unaudited) 2005 (unaudited) 2005
------------- --------------- ------------ ------------ ------------ ------------
Shares sold............ $ 582,808,949+ $ 1,113,494,682++ $ 14,043,476 $ 21,586,531 $ 24,062,786 $ 39,075,804
Reinvested dividends... 30,401,532 38,099,932 422,728 502,145 254,323 270,694
Shares redeemed........ (526,195,197) (1,194,296,786) (14,138,414)+ (32,786,885)++ (11,954,469) (42,833,919)
------------- --------------- ------------ ------------ ------------ ------------
Net increase (decrease) $ 87,015,284 $ (42,702,172) $ 327,790 $(10,698,209) $ 12,362,640 $ (3,487,421)
============= =============== ============ ============ ============ ============
-------------------------
Class I
------------------------
For the
six months For the
ended year
June 30, ended
2006 December 31,
(unaudited) 2005
----------- ------------
Shares sold............ $ 6,816,553 $ 7,693,470
Reinvested dividends... 290,873 316,345
Shares redeemed........ (4,605,887) (6,196,260)
----------- -----------
Net increase (decrease) $ 2,501,539 $ 1,813,555
=========== ===========
- --------
+ Includes automatic conversion of Class B shares in the amount of $1,098,572
to Class A shares.
++ Includes automatic conversion of Class B shares in the amount of $2,267,064
to Class A shares.
19
SunAmerica Money Market Funds
NOTES TO FINANCIAL STATEMENTS -- June 30, 2006 -- (continued)
SunAmerica Muni Money Market Fund
-------------------------------------------------------------------------------
Class A Class B Class C
---------------------------- ---------------------- ------------------------
For the For the For the For the For the
six months year six months For the six months year
ended ended ended year ended ended
June 30, December June 30, ended June 30, December
2006 31, 2006 December 31, 2006 31,
(unaudited) 2005 (unaudited) 2005 (unaudited) 2005
------------- ------------- ----------- ------------ ----------- -----------
Shares sold............ $ 126,365,755 $ 177,698,016# $ 265,945 $ 539,224 $ 365,930 $ 3,443,007
Reinvested dividends... 1,130,447 1,410,098 4,161 3,761 2,570 2,287
Shares redeemed........ (103,245,317) (191,665,171) (191,572) (519,766)# (1,569,388) (2,105,157)
------------- ------------- --------- --------- ----------- -----------
Net increase (decrease) $ 24,250,885 $ (12,557,057) $ 78,534 $ 23,219 $(1,200,888) $ 1,340,137
============= ============= ========= ========= =========== ===========
- --------
# Includes automatic conversion of Class B shares in the amount of $298,186 to
Class A shares.
Note 6. Directors' Retirement Plan
The Directors of the SunAmerica Money Market Funds, Inc. have adopted the
AIG SunAmerica Disinterested Trustees' and Directors' Retirement Plan (the
"Retirement Plan") effective January 1, 1993 for the unaffiliated Directors.
The Retirement Plan provides generally that if an unaffiliated Director who
has at least 10 years of consecutive service as a Disinterested Director of
any of the AIG SunAmerica mutual funds (an "Eligible Director") retires
after reaching age 60 but before age 70, or who has at least 5 years of
consecutive service after reaching age 65 but before age 70, or dies while a
Director, such person will be eligible to receive a retirement or death
benefit from each AIG SunAmerica mutual fund with respect to which he or she
is an Eligible Director. As of each birthday, prior to the 70th birthday,
but in no event for a period greater than 10 years, each Eligible Director
will be credited with an amount equal to 50% of his or her regular fees
(excluding committee fees) for services as a Disinterested Director of each
AIG SunAmerica mutual fund for the calendar year in which such birthday
occurs. In addition, an amount equal to 8.50% of any amounts credited under
the preceding clause during prior years, is added to each Eligible
Director's account until such Eligible Director reaches his or her 70th
birthday. An Eligible Director may receive benefits payable under the
Retirement Plan, at his or her election, either in one lump sum or in up to
fifteen annual installments. Any undistributed amounts shall continue to
accrue interest at 8.50%.
The following amounts for the Retirement Plan Liabilities are included in
the 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, 2006
---- -----------------------------------------------
Money Market.................. $241,685 $11,081 $7,005
Municipal Money Market........ 6,820 598 123
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, 2006, none of the Funds participated in the program.
20
SunAmerica Money Market Funds
NOTES TO FINANCIAL STATEMENTS -- June 30, 2006 -- (continued)
Note 8. Other Information
On February 9, 2006, American International Group, Inc. ("AIG"), the parent
company and an affiliated person of AIG SunAmerica Asset Management Corp.
("Adviser"), AIG SunAmerica Capital Services, Inc., the distributor of the
Funds ("Distributor"), and AIG Global Investment Corp., a subadviser to a
Fund, announced that it had consented to the settlement of an injunctive
action instituted by the Securities and Exchange Commission ("SEC"). In its
complaint, the SEC alleged that AIG violated Section 17(a) of the Securities
Act of 1933, as amended, Sections 10(b), 13(a), 13(b)(2) and 13(b)(5) of the
Securities Exchange Act of 1934, as amended, and Rules 10b-5, 12b-20, 13a-1
and 13b2-1 promulgated thereunder, in connection with AIG's accounting and
public reporting practices. The conduct described in the complaint did not
involve any conduct of AIG or its subsidiaries related to their investment
advisory or distribution activities with respect to the assets of the Funds.
AIG, without admitting or denying the allegations in the complaint (except
as to jurisdiction), consented to the entry of an injunction against further
violations of the statutes referred to above. Absent exemptive relief
granted by the SEC, the entry of such an injunction would prohibit AIG and
its affiliated persons from, among other things, serving as an investment
adviser of any registered investment management company or principal
underwriter for any registered open-end investment company pursuant to
Section 9(a) of the Investment Company Act of 1940, as amended ("1940 Act").
Certain affiliated persons of AIG, including the Adviser, received a
temporary order from the SEC pursuant to Section 9(c) of the 1940 Act with
respect to the entry of the injunction, granting exemptive relief from the
provisions of Section 9(a) of the 1940 Act. The temporary order permits AIG
and its affiliated persons, including AIG's investment management
subsidiaries, to serve as investment adviser, sub-adviser, principal
underwriter or sponsor of the Funds. The Adviser expects that a permanent
exemptive order will be granted, although there is no assurance the SEC will
issue the order.
Additionally, AIG and its subsidiaries reached a resolution of claims and
matters under investigation with the United State Department of Justice
("DOJ"), the Attorney General of the State of New York ("NYAG") and the New
York State Department of Insurance ("DOI"), regarding accounting, financial
reporting and insurance brokerage practices of AIG and its subsidiaries, as
well as claims relating to the underpayment of certain workers compensation
premium taxes and other assessments.
As a result of the settlements with the SEC, the DOJ, the NYAG and the DOI,
AIG will make payments totaling approximately $1.64 billion. In addition, as
part of its settlements, AIG has agreed to retain for a period of three
years an Independent Consultant who will conduct a review that will include
the adequacy of AIG's internal controls over financial reporting and the
remediation plan that AIG has implemented as a result of its own internal
review.
Subject to receipt of permanent relief, the Adviser, Distributor and AIGGIC
believe that the settlements are not likely to have a material adverse
effect on their ability to perform their respective investment advisory or
distribution services relating to the Funds.
21
SunAmerica Money Market Funds, Inc.
DIRECTORS AND OFFICERS INFORMATION -- June 30, 2006 -- (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 Fund Complex
Name, Address SunAmerica Length of Principal Occupations Overseen by Other Directorships
and Date of Birth* Complex Time Served(4) During Past 5 years Director(1) Held by Director(2)
- -------------------- ---------- -------------- ---------------------------- ------------ -----------------------------
Directors
Jeffrey S. Burum Director 2004- Founder and CEO of 42 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 90 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 90 Member of the Board of
DOB: December 30, present Governors, Boston Stock
1938 Exchange (1985-Present);
Samuel M. Eisenstat Chairman 1985- Attorney, solo practitioner; 52 Director of North European
DOB: March 7, 1940 of the present Oil Royalty Trust.
Board
Stephen J. Gutman Director 1984- Senior Associate, Corcoran 52 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 99 None
DOB: January 23, present Director, SAAMCo. (August
1954 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)
William J. Shea Director 2004- President and CEO, 52 Chairman of the Board,
DOB: February 9, present Conseco, Inc. (Financial Royal and SunAlliance,
1948 Services) (2001-2004); U.S.A., Inc. (March 2005 to
Chairman of the Board of present); Director, Boston
Centennial Technologies, Private Holdings (October
Inc. (1998 to 2001); Vice 2004 to present)
Chairman, Bank Boston
Corporation (1993-1998)
22
SunAmerica Money Market Funds
DIRECTORS AND OFFICERS INFORMATION -- June 30, 2006 -- (unaudited)
(continued)
Number of
Position Term of Funds in
Held With Office and Fund Complex
Name, Address SunAmerica Length of Principal Occupations Overseen by Other Directorships
and Date of Birth* Complex Time Served(4) During Past 5 years Director(1) Held by Director(2)
- ------------------- ---------- -------------- ----------------------------- ------------ -------------------
Officers
Vincent M. Marra President 2004- Senior Vice President, N/A N/A
DOB: May 28, 1950 present 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 President, N/A N/A
DOB: June 25, 1966 present SAAMCo (December 2004
to Present); Vice President,
SAAMCo (1997 to
December 2004), Assistant
Treasurer (1993 to 2002)
Gregory N. Bressler Secretary September Senior Vice President and N/A N/A
DOB: November 17, and Chief 2005 to General Counsel, SAAMCo
1966 Legal Present (June 2005 to present); Vice
Officer President and Director of
U.S. Asset Management
Compliance, Goldman
Sachs Asset Management
(June 2004 to June 2005);
Deputy General Counsel,
Credit Suisse Asset
Management (June 2002 to
June 2004); Counsel, Credit
Suisse Asset Management
(January 2000 to June
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 administrator. The "Fund
Complex" includes the SunAmerica Money Market Funds, Inc. (2 funds),
SunAmerica Equity Funds (10 funds), SunAmerica Income Funds (5 funds),
SunAmerica Focused Series, Inc. (17 portfolios), SunAmerica Focused Alpha
Growth Fund, Inc. (1 fund), SunAmerica Focused Alpha Large-Cap Fund, Inc.
(1 fund), Anchor Series Trust (9 portfolios), SunAmerica Senior Floating
Rate Fund, Inc. (1 fund), SunAmerica Series Trust (32 portfolios), VALIC
Company I (32 portfolios), VALIC Company II (15 funds), Seasons Series
Trust (24 portfolios) and AIG Series Trust (6 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.
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. The Fund's
Vincent M. Marra, AIG SunAmerica Capital Forms N-Q are available
President Services, Inc. on the U.S. Securities
Donna M. Handel, Harborside Financial and Exchange Commission's
Treasurer Center website at www.sec.gov.
Timothy P. Pettee, Vice 3200 Plaza 5 You can also review and
President Jersey City, NJ obtain copies of the
Cynthia Gibbons, Vice 07311-4992 Forms N-Q at the U.S.
President and Chief Securities and Ex-change
Compliance Officer Shareholder Servicing Commission's Public
Gregory N. Bressler, Agent Reference Room in
Chief Legal Officer AIG SunAmerica Fund Washington, DC
and Secretary Services, Inc. (information on the
Gregory R. Kingston, Harborside Financial operation of the Public
Vice President and Center Reference Room may be
Assistant Treasurer 3200 Plaza 5 ob-tained by calling
Corey A. Issing, Jersey City, NJ 1-800-SEC-0330).
Assistant Secretary 07311-4992
This report is submitted
Custodian and Transfer solely for the general
Agent information of
State Street Bank and shareholders of the Fund.
Trust Company Distribution of this
P.O. Box 419572 report to persons other
Kansas City, MO than shareholders of the
64141-6572 Fund is authorized only
in connection with a
VOTING PROXIES ON FUND currently effective
PORTFOLIO SECURITIES prospectus, setting forth
A description of the details of the Fund,
policies and proce-dures which must precede or
that the Fund uses to accompany this report.
determine how to vote
proxies relating to The accompanying report
secu-rities held in the has not been audited by
Fund's portfolios which independent accountants
is available in the and accordingly no
Fund's State-ment of opinion has been
Additional Information, expressed thereon.
may be obtained without
charge upon re-quest, by
calling (800) 858-8850.
This information is also
available from the EDGAR
database on the U.S.
Secu-rities and Exchange
Commission's website at
http://www.sec.gov.
PROXY VOTING RECORD ON
SUNAMERICA MONEY MARKET
FUNDS
Information regarding how
SunAmerica Money Market
Funds voted proxies
relating to securities
held in SunAmerica Money
Market Funds during the
most recent twelve month
period ended June 30 is
available, once filed
with the U.S. Securities
and Ex-change Commission,
without charge, upon
request, by calling (800)
858-8850 or on the U.S.
Secu-rities and Exchange
Commission's website at
http://www.sec.gov.
25
[LOGO]
AIG
Sun America
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 6/06
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, as defined under Rule 30a-3(c)
under the Investment Company Act of 1940 (17 CFR 270.30a-3(c)). Based
on that evaluation, the registrant's management, including the
President and Treasurer, concluded that the registrant's disclosure
controls and procedures are effective.
(b) There was no change in the registrant's internal control over financial
reporting (as defined under 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) Certifications pursuant to Rule 30a-2(a) under the Investment
Company Act of 1940 (17 CFR 270.30a-2(a)) attached hereto as Exhibit
99.CERT.
(3) Not applicable.
(b) Certification pursuant to Rule 30a-2(b) under the Investment Company
Act of 1940 (17 CFR 270.30a-2(a)) and Section 906 of the Sarbanes-
Oxley Act of 2002 attached hereto as Exhibit 99.906.CERT.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
SunAmerica Money Market Funds, Inc.
By: /s/ Vincent M. Marra
-------------------
Vincent M. Marra
President
Date: September 7, 2006
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, 2006
By: /s/ Donna M. Handel
-------------------
Donna M. Handel
Treasurer
Date: September 7, 2006