UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-3807
---------------------------------------------
SunAmerica Money Market Funds, Inc
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in charter)
Harborside Financial Center, 3200 Plaza 5 Jersey City, NJ 07311
- --------------------------------------------------------------------------------
(Address of principal executive offices) (Zip code)
Vincent M. Marra
Senior Vice President
AIG SunAmerica Asset Management Corp.
Harborside Financial Center,
3200 Plaza 5
Jersey City, NJ 07311
- --------------------------------------------------------------------------------
(Name and address of agent for service)
Registrant's telephone number, including area code: (201) 324-6464
-----------------------------
Date of fiscal year end: December 31
--------------------------
Date of reporting period: June 30, 2007
-------------------------
Item 1. Reports to Stockholders
[PHOTO]
SEMI-ANNUAL REPORT 2007
AIG SUNAMERICA
Money Market Funds
LOGO
June 30, 2007 SEMI-ANNUAL REPORT
SUNAMERICA MONEY MARKET FUNDS, INC.
SunAmerica Money Market Fund (SMAXX)
SunAmerica Municipal Money Market Fund (NMAXX)
Table of Contents
SHAREHOLDERS' LETTER............... 1
EXPENSE EXAMPLE.................... 2
STATEMENT OF ASSETS AND LIABILITIES 4
STATEMENT OF OPERATIONS............ 5
STATEMENT OF CHANGES IN NET ASSETS. 6
FINANCIAL HIGHLIGHTS............... 7
PORTFOLIO OF INVESTMENTS........... 9
NOTES TO FINANCIAL STATEMENTS...... 16
June 30, 2007 SEMI-ANNUAL REPORT
Shareholders' Letter
Dear Shareholder:
We are pleased to present you with this semi-annual shareholder letter for
the SunAmerica Money Market Fund and the SunAmerica Municipal Money Market
Fund. We would also like to take this opportunity to discuss the market
conditions that have shaped the investment environment during the six-month
period ended June 30, 2007.
Although the Federal Reserve has left its key target unchanged since August
2006, monetary policy remains in the spotlight for a number of reasons. During
the first quarter, the economy exhibited conflicting signs of inflation and
recession. Although the period ended with higher-than-expected job growth, the
Federal Reserve modified its language in a fashion that removed the bias toward
further tightening--an acknowledgment that risks exist on both sides of the
debate.
Entering the second quarter of 2007, there had been much speculation that
weakness in the housing market would lead to a slowdown in consumer spending,
causing the Federal Reserve to cut interest rates. However, over the last three
months, consumer spending has remained resilient while core inflation has been
held in check, and the Federal Reserve kept the Federal Fund Rate steady at
5.25%.
One key point to which investors should keep a keen eye is the emerging
struggle between core inflation and headline inflation. While the May 2007
measurement of core inflation (excludes food and energy prices) brought the
12-month inflation rate below 2% and vindicated the Federal Reserve's recent
steady rate policy, food and energy prices continue to increase. This may
create pressure on the Federal Reserve to adopt headline inflation (includes
food and energy prices) as its measuring stick for future policy decisions.
Throughout the semi-annual period, both Funds remained invested in the
highest quality of taxable and non-taxable money fund securities. In doing so,
the Funds maintained their objectives of principal preservation and yield
enhancement.
We remain diligent in the management of your assets and thank you for your
continued investment in our Funds.
Sincerely,
/s/ Peter A. Harbeck
Peter A. Harbeck
President and CEO
AIG SunAmerica Asset Management
- --------
An investment in the Fund is not insured or guaranteed by the Federal Deposit
Insurance Corporation (FDIC) or any other government agency. Although the Fund
seeks to preserve the value of your investment at $1.00 per share, it is
possible to lose money by investing in the Fund.
Past performance is no guarantee of future results.
1
SunAmerica Money Market Funds
EXPENSE EXAMPLE -- June 30, 2007 -- (unaudited)
Disclosure of Portfolio Expenses in Shareholder Reports
As a shareholder of a Fund in the SunAmerica Money Market Funds, Inc. (the
"Corporation"), you may incur two types of costs: (1) transaction costs,
including sales charges on purchase payments and contingent deferred sales
charges and (2) ongoing costs, including management fees, distribution and
service fees, and other Fund expenses. This Example set forth below is intended
to help you understand your ongoing costs (in dollars) of investing in the
Funds and to compare these costs with the ongoing costs of investing in other
mutual funds. The Example is based on an investment of $1,000 invested at
January 1, 2007 and held until June 30, 2007.
Actual Expenses
The "Actual" section of the table provides information about actual account
values and actual expenses. You may use the information in these columns,
together with the amount you invested, to estimate the expenses that you paid
over the period. Simply divide your account value by $1,000 (for example, an
$8,600 account value divided by $1,000 = 8.6), then multiply the result by the
number in the column under the heading entitled "Expenses Paid During the Six
Months Ended June 30, 2007" to estimate the expenses you paid on your account
during this period. For shareholder accounts in classes other than Class I, the
"Expenses Paid During the Six Months Ended June 30, 2007" column does not
include small account fees that may be charged if your account balance is below
$500 ($250 for retirement plan accounts). In addition, the "Expenses Paid
During the Six Months Ended June 30, 2007" column does not include
administrative fees that may apply to qualified retirement plan accounts. See
the Funds' prospectus and/or your retirement plan documents for a full
description of these fees. Had these fees been included, the "Expenses Paid
During the Six Months Ended June 30, 2007" column would have been higher and
the "Ending Account Value" would have been lower.
Hypothetical Example for Comparison Purposes
The "Hypothetical" section of the table provides information about hypothetical
account values and hypothetical expenses based on the Fund's actual expense
ratio and an assumed rate of return of 5% per year before expenses, which is
not the Fund's actual return. The hypothetical account values and expenses may
not be used to estimate the actual ending account balance or expenses you paid
for the period. You may use this information to compare the ongoing costs of
investing in the Portfolios and other funds. To do so, compare this 5%
hypothetical example with the 5% hypothetical examples that appear in the
shareholder reports of other funds. For shareholder accounts in classes other
than Class I, the "Expenses Paid During the Six Months Ended June 30, 2007"
column does not include small account fees that may be charged if your account
balance is below $500 ($250 for retirement plan accounts). In addition, the
"Expenses Paid During the Six Months Ended June 30, 2007" column does not
include administrative fees that may apply to qualified retirement plan
accounts. See the Funds' prospectus and/or your retirement plan documents for a
full description of these fees. Had these fees been included, the "Expenses
Paid During the Six Months Ended June 30, 2007" column would have been higher
and the "Ending Account Value" would have been lower.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transaction costs, including sales
charges on purchase payments, contingent deferred sales charges, small account
fees and administrative fees, if applicable to your account. Please refer to
the Fund's prospectus and/or qualified retirement plan document for more
information. Therefore, the "Hypothetical" example is useful in comparing
ongoing costs only, and will not help you determine the relative total costs of
owning different funds. In addition, if these transaction costs and other fees
were included, your costs would have been higher.
2
SunAmerica Money Market Funds
EXPENSE EXAMPLE -- June 30, 2007 -- (unaudited) (continued)
Actual Hypothetical
------------------------------------------------- ------------------------------------
Ending Ending Account
Account Value Expenses Paid Value using
Beginning Using Actual During the Beginning a Hypothetical 5%
Account Value Returns at Six Months Ended Account Value Assumed Return at
at January 1, 2007 June 30, 2007 June 30, 2007 at January 1, 2007 June 30, 2007
------------------ ------------- ---------------- ------------------ -----------------
Money Market Fund
Class A................. $1,000.00 $1,022.28 $4.46 $1,000.00 $1,020.38
Class B................. $1,000.00 $1,017.69 $9.00 $1,000.00 $1,015.87
Class C ................ $1,000.00 $1,017.84 $8.86 $1,000.00 $1,016.02
Class I#................ $1,000.00 $1,022.75 $4.01 $1,000.00 $1,020.83
Municipal Money Market Fund
Class A#................ $1,000.00 $1,014.42 $3.95 $1,000.00 $1,020.88
Class B#................ $1,000.00 $1,009.89 $8.47 $1,000.00 $1.016.36
Class C#................ $1,000.00 $1,009.87 $8.47 $1,000.00 $1,016.36
-----------------
Expense
Expenses Paid Ratio
During the as of
Six Months Ended June 30,
June 30, 2007 2007*
---------------- --------
Money Market Fund
Class A................. $4.46 0.89%
Class B................. $9.00 1.80%
Class C ................ $8.85 1.77%
Class I#................ $4.01 0.80%
Municipal Money Market Fund
Class A#................ $3.96 0.79%
Class B#................ $8.50 1.70%
Class C#................ $8.50 1.70%
- --------
* Expenses are equal to the Fund's annualized expense ratio multiplied by the
average account value over the period, multiplied by 181 days divided by 365
days. These ratios do not reflect transaction costs, including sales charges
on purchase payments, contingent deferred sales charges, small account fees
and administrative fees, if applicable to your account. Please refer to your
Prospectus and/or your qualified retirement plan document for more
information.
# During the stated period, the investment adviser and distributor either
waived a portion of or all of the fees and assumed a portion of or all
expenses for the Funds. As a result, if these fees and expenses had not been
waived, the "Actual/Hypothetical Ending Account Value" would have been lower
and the "Actual/Hypothetical Expenses Paid During the Six Months Ended June
30, 2007" and the "Expense Ratios" would have been higher.
3
SunAmerica Money Market Funds
STATEMENT OF ASSETS AND LIABILITIES -- June 30, 2007 -- (unaudited)
Money Market Municipal Money
Fund Market Fund
--------------- ---------------
ASSETS:
Short-term investment securities, at value* (unaffiliated)........ $ 1,338,981,672 $ 110,732,321
Repurchase agreements (cost equals market value).................. 30,181,000 --
--------------- ---------------
Total Investments............................................... $ 1,369,162,672 $ 110,732,321
--------------- ---------------
Cash.............................................................. 135,035 35,675
Receivable for:
Fund shares sold................................................ 2,955,265 909,480
Dividends and interest.......................................... 8,133,909 708,070
Prepaid expenses and other assets................................. 9,902 25,224
Due from investment adviser for expense reimbursements/fee waivers -- 2,274
--------------- ---------------
Total Assets.................................................... 1,380,396,783 112,413,044
--------------- ---------------
LIABILITIES:
Payable for:
Fund shares redeemed............................................ 9,611,006 --
Investment purchased............................................ 19,074,898 --
Investment advisory and management fees......................... 549,106 34,581
Distribution and service maintenance fees....................... 198,446 15,446
Transfer agent fees and expenses................................ 285,943 20,761
Due to investment adviser....................................... 2,389 --
Dividends payable............................................... 83,061 2,327
Directors' fees and expenses.................................... 239,564 6,234
Other accrued expenses.......................................... 283,610 18,710
--------------- ---------------
Total Liabilities............................................... 30,328,023 98,059
--------------- ---------------
Net Assets..................................................... $ 1,350,068,760 $ 112,314,985
=============== ===============
NET ASSETS REPRESENTED BY:
Common stock, $.001 par value (10 billion shares authorized)...... $ 1,350,076 $ 112,314
Paid-in capital................................................... 1,348,630,969 112,202,091
--------------- ---------------
1,349,981,045 112,314,405
Accumulated undistributed net investment income (loss)............ 87,715 580
--------------- ---------------
Net assets..................................................... $ 1,350,068,760 $ 112,314,985
=============== ===============
Class A:
Net assets........................................................ $ 1,292,291,582 $ 111,321,716
Shares outstanding................................................ 1,292,294,898 111,321,009
Net asset value and redemption price per share
(excluding any applicable contingent deferred sales charge)...... $ 1.00 $ 1.00
=============== ===============
Class B:
Net assets........................................................ $ 19,728,960 $ 297,895
Shares outstanding................................................ 19,729,669 297,836
Net asset value and redemption price per share
(excluding any applicable contingent deferred sales charge)...... $ 1.00 $ 1.00
=============== ===============
Class C:
Net assets........................................................ $ 22,471,644 $ 695,374
Shares outstanding................................................ 22,472,616 695,386
Net asset value and redemption price per share
(excluding any applicable contingent deferred sales charge)...... $ 1.00 $ 1.00
=============== ===============
Class I:
Net assets........................................................ $ 15,576,574 $ --
Shares outstanding................................................ 15,578,840 --
Net asset value and redemption price per share.................... $ 1.00 $ --
=============== ===============
*Amortized cost of short-term investment securities (unaffiliated) $ 1,338,981,672 $ 110,732,321
=============== ===============
See Notes to Financial Statements
4
SunAmerica Money Market Funds
STATEMENT OF OPERATIONS -- For the six months ended June 30, 2007 --
(unaudited)
Money Market Municipal Money
Fund Market Fund
------------ ---------------
INVESTMENT INCOME:
Interest (unaffiliated)........................................................... $43,099,422 $1,942,096
Dividends (unaffiliated).......................................................... -- 950
----------- ----------
Total investment income........................................................ 43,099,422 1,943,046
----------- ----------
EXPENSES:
Investment advisory and management fees........................................... 3,740,440 184,532
Distribution and service maintenance fees
Class A......................................................................... 1,168,990 78,481
Class B......................................................................... 98,748 1,966
Class C......................................................................... 71,951 1,659
Transfer agent fees and expenses
Class A......................................................................... 1,753,624 116,378
Class B......................................................................... 36,067 1,771
Class C......................................................................... 22,189 2,280
Class I......................................................................... 17,678 --
Registration fees
Class A......................................................................... 20,147 10,416
Class B......................................................................... 6,554 4,883
Class C......................................................................... 6,070 5,032
Class I......................................................................... 6,159 --
Custodian and accounting fees..................................................... 154,561 11,567
Reports to shareholders........................................................... 170,407 3,756
Audit and tax fees................................................................ 7,136 7,136
Legal fees........................................................................ 16,324 2,335
Directors' fees and expenses...................................................... 50,649 2,558
Other expenses.................................................................... 10,782 1,643
----------- ----------
Total expenses before fee waivers, expense reimbursements and custody credits.. 7,358,476 436,393
Fees waived and expenses reimbursed by investment adviser (Note 3)............. (921) (13,219)
Custody credits earned on cash balances........................................ (5,978) (2,652)
----------- ----------
Net expenses................................................................... 7,351,577 420,522
----------- ----------
Net investment income (loss)...................................................... 35,747,845 1,522,524
----------- ----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS................... $35,747,845 $1,522,524
=========== ==========
See Notes to Financial Statements
5
SunAmerica Money Market Funds
STATEMENT OF CHANGES IN NET ASSETS
Money Market Fund
------------------------------
For the
six months
ended For the year
June 30, ended
2007 December 31,
(unaudited) 2006
-------------- --------------
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss).......................................................... $ 35,747,845 $ 68,754,726
-------------- --------------
Net increase (decrease) in net assets resulting from operations......................... $ 35,747,845 $ 68,754,726
-------------- --------------
Distributions to shareholders from:
Net investment income (Class A)....................................................... (34,706,726) (66,523,360)
Net investment income (Class B)....................................................... (388,640) (942,063)
Net investment income (Class C)....................................................... (285,782) (615,060)
Net investment income (Class I)....................................................... (365,233) (675,707)
-------------- --------------
Total distributions to shareholders..................................................... (35,746,381) (68,756,190)
-------------- --------------
Net increase (decrease) in net assets resulting from capital share transactions (Note 5) (415,976,460) 119,460,172
-------------- --------------
Total increase (decrease) in net assets................................................. (415,974,996) 119,458,708
-------------- --------------
NET ASSETS:
Beginning of year....................................................................... 1,766,043,756 1,646,585,048
-------------- --------------
End of year*............................................................................ $1,350,068,760 $1,766,043,756
============== ==============
*Includes accumulated undistributed net investment income (loss)........................ $ 87,715 $ 86,251
============== ==============
Municipal Money Market Fund
--------------------------
For the
six months
ended For the year
June 30, ended
2007 December 31,
(unaudited) 2006
------------ ------------
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss).......................................................... $ 1,522,524 $ 2,633,211
------------ ------------
Net increase (decrease) in net assets resulting from operations......................... $ 1,522,524 $ 2,633,211
------------ ------------
Distributions to shareholders from:
Net investment income (Class A)....................................................... (1,514,503) (2,614,881)
Net investment income (Class B)....................................................... (4,326) (10,057)
Net investment income (Class C)....................................................... (3,695) (8,273)
Net investment income (Class I)....................................................... -- --
------------ ------------
Total distributions to shareholders..................................................... (1,522,524) (2,633,211)
------------ ------------
Net increase (decrease) in net assets resulting from capital share transactions (Note 5) 10,562,044 14,852,635
------------ ------------
Total increase (decrease) in net assets................................................. 10,562,044 14,852,635
------------ ------------
NET ASSETS:
Beginning of year....................................................................... 101,752,941 86,900,306
------------ ------------
End of year*............................................................................ $112,314,985 $101,752,941
============ ============
*Includes accumulated undistributed net investment income (loss)........................ $ 580 $ 580
============ ============
See Notes to Financial Statements
6
SunAmerica Money Market Funds
FINANCIAL HIGHLIGHTS
MONEY MARKET FUND
-----------------
Net Net Ratio of net
Asset Dividends Asset Net Assets Ratio of investment
Value Net from net Value end of expenses income to
beginning investment investment end of Total period to average average
Period Ended of period income(1) income period Return(2) (000's) net assets net assets
- ---------------------- --------- ---------- ---------- ------ --------- ---------- ---------- ------------
Class A
- -
12/31/02 $1.000 $0.010 $(0.010) $1.000 1.04%(4) $1,751,812 0.90% 0.99%
12/31/03 1.000 0.003 (0.003) 1.000 0.32 1,644,603 0.88 0.32
12/31/04 1.000 0.005 (0.005) 1.000 0.50 1,630,353 0.90 0.49
12/31/05 1.000 0.024 (0.024) 1.000 2.38 1,587,641 0.89 2.35
12/31/06 1.000 0.041 (0.041) 1.000 4.22 1,711,783 0.89 4.14
01/01/07-06/30/2007(6) 1.000 0.023 (0.023) 1.000 2.23 1,292,292 0.89(5) 4.45(5)
Class B
- -
12/31/02 $1.000 $0.003 $(0.003) $1.000 0.28%(4) $ 64,815 1.64%(3) 0.26%(3)
12/31/03 1.000 0.000 0.000 1.000 0.03 44,529 1.18(3) 0.03(3)
12/31/04 1.000 0.001 (0.001) 1.000 0.07 42,437 1.32(3) 0.06(3)
12/31/05 1.000 0.015 (0.015) 1.000 1.52 31,738 1.74 1.46
12/31/06 1.000 0.033 (0.033) 1.000 3.32 23,806 1.76 3.26
01/01/07-06/30/2007(6) 1.000 0.018 (0.018) 1.000 1.77 19,729 1.80(5) 3.54(5)
Class C+
- -
12/31/02 $1.000 $0.003 $(0.003) $1.000 0.27%(4) $ 30,285 1.66%(3) 0.26%(3)
12/31/03 1.000 0.000 0.000 1.000 0.03 20,290 1.18(3) 0.03(3)
12/31/04 1.000 0.001 (0.001) 1.000 0.07 16,985 1.33(3) 0.06(3)
12/31/05 1.000 0.015 (0.015) 1.000 1.54 13,497 1.71 1.59
12/31/06 1.000 0.033 (0.033) 1.000 3.33 12,399 1.74 3.31
01/01/07-06/30/2007(6) 1.000 0.018 (0.018) 1.000 1.78 22,472 1.77(5) 3.57(5)
Class I
- -
12/31/02 $1.000 $0.011 $(0.011) $1.000 1.13%(4) $ 9,195 0.80%(3) 1.12%(3)
12/31/03 1.000 0.004 (0.004) 1.000 0.43 9,636 0.77(3) 0.43(3)
12/31/04 1.000 0.006 (0.006) 1.000 0.58 11,895 0.80(3) 0.59(3)
12/31/05 1.000 0.025 (0.025) 1.000 2.49 13,708 0.80(3) 2.49(3)
12/31/06 1.000 0.042 (0.042) 1.000 4.31 18,057 0.80(3) 4.26(3)
01/01/07-06/30/2007(6) 1.000 0.023 (0.023) 1.000 2.27 15,577 0.80(3)(5) 4.55(5)
- --------
(1)Calculated based upon average shares outstanding.
(2)Total return is not annualized and does not reflect sales load but does
include expense reimbursements.
(3)Net of the following expense reimbursements/waivers (based on average net
assets):
12/31/02 12/31/03 12/31/04 12/31/05 12/31/06 06/30/07(5)(6)
-------- -------- -------- -------- -------- --------------
Class B. 0.04% 0.51% 0.39% -- % -- % -- %
Class C+ 0.04 0.53 0.39 -- -- --
Class I. 0.14 0.02 0.09 0.05 0.05 0.01
(4)The total return for each class was increased by less than 0.01% from gains
realized on the disposal of investments in violation of investment
restrictions.
(5)Annualized
(6)Unaudited
+ Effective February 23, 2004, Class II shares were redesignated as Class C
shares.
See Notes to Financial Statements
7
SunAmerica Money Market Funds
FINANCIAL HIGHLIGHTS -- (continued)
MUNICIPAL MONEY MARKET FUND
---------------------------
Net Net Net Ratio of net
Asset Dividends Asset Assets Ratio of investment
Value Net from net Value end of expenses income to
beginning investment investment end of Total period to average average
Period Ended of period income(1) income period Return(2) (000's) net assets(3) net assets(3)
- ---------------------- --------- ---------- ---------- ------ --------- -------- ------------- -------------
Class A
- -
12/31/02 $1.000 $0.009 $(0.009) $1.000 0.92% $ 88,050 0.78% 0.71%
12/31/03 1.000 0.003 (0.003) 1.000 0.28 113,802 0.81 0.28
12/31/04 1.000 0.004 (0.004) 1.000 0.36 97,374 0.87 0.35
12/31/05 1.000 0.016 (0.016) 1.000 1.62 84,817 0.81 1.58
12/31/06 1.000 0.027 (0.027) 1.000 2.69 101,083 0.78 2.68
01/01/07-06/30/2007(5) 1.000 0.014 (0.014) 1.000 1.44 111,322 0.79(4) 2.89(4)
Class B
- -
12/31/02 $1.000 $0.002 $(0.002) $1.000 0.24% $ 3,714 1.39% 0.16%
12/31/03 1.000 0.001 (0.001) 1.000 0.10 3,168 0.98 0.11
12/31/04 1.000 0.001 (0.001) 1.000 0.10 497 1.02 0.10
12/31/05 1.000 0.008 (0.008) 1.000 0.81 520 1.62 0.80
12/31/06 1.000 0.018 (0.018) 1.000 1.77 536 1.69 1.77
01/01/07-06/30/2007(5) 1.000 0.011 (0.011) 1.000 0.99 298 1.70(4) 1.98(4)
Class C+
- -
12/31/02 $1.000 $0.002 $(0.002) $1.000 0.24% $ 170 1.39% 0.19%
12/31/03 1.000 0.001 (0.001) 1.000 0.10 258 1.00 0.11
12/31/04 1.000 0.001 (0.001) 1.000 0.10 223 1.18 0.10
12/31/05 1.000 0.008 (0.008) 1.000 0.82 1,563 1.59 1.02
12/31/06 1.000 0.018 (0.018) 1.000 1.77 134 1.66 1.61
01/01/07-06/30/2007(5) 1.000 0.008 (0.008) 1.000 0.99 695 1.70(4) 2.00(4)
- --------
(1)Calculated based upon average shares outstanding.
(2)Total return is not annualized and does not reflect sales load but does
include expense reimbursements.
(3)Net of the following expense reimbursements/waivers (based on average net
assets):
12/31/02 12/31/03 12/31/04 12/31/05 12/31/06 06/30/2007(4)(5)
-------- -------- -------- -------- -------- ----------------
Class A 0.20% 0.03% 0.00% 0.04% 0.00% -- %
Class B 1.25 1.03 0.87 1.44 2.15 2.98
Class C+ 9.68 7.45 4.20 0.47 2.14 3.17
(4)Annualized
(5)Unaudited
+ Effective February 23, 2004, Class II shares were redesignated as Class C
shares
See Notes to Financial Statements
8
SunAmerica Money Market Fund
PORTFOLIO PROFILE -- June 30, 2007 -- (unaudited)
Industry Allocation*
Foreign Banks....................... 20.3%
Asset Backed/Receivables............ 16.1
Asset Backed/Securities............. 12.7
Finance............................. 10.3
Asset Backed/Multi-Asset............ 8.1
Finance -- Investment Bank/Brokerage 6.2
Diversified Financial Services...... 5.7
Regional Banks...................... 5.7
Money Center Banks.................. 5.3
Asset Backed/Finance................ 4.4
Repurchase Agreement................ 2.2
Commercial Banks.................... 2.1
Domestic Banks...................... 1.4
Municipalities...................... 0.7
Sovereign Agency.................... 0.2
-----
101.4%
=====
Weighted average days to maturity... 48.7
Credit Quality Allocation @#
A-1......................... 97.8%
Not Rated................... 2.2
-----
100.0%
=====
- --------
* Calculated as a percentage of net assets.
@ Source: Standard and Poors
# Calculated as a percentage of total debt issues.
9
SunAmerica Money Market Fund
PORTFOLIO OF INVESTMENTS -- June 30, 2007 -- (unaudited)
Principal Value
Security Description Amount (Note 2)
SHORT-TERM INVESTMENT SECURITIES -- 99.2%
ASSET-BACKED COMMERCIAL PAPER -- 36.9%
Amstel Funding Corp.
5.26% due 09/20/07*.............. $21,000,000 $ 20,754,533
Amsterdam Funding Corp.
5.23% due 07/13/07*.............. 15,000,000 14,976,029
Apreco LLC
5.23% due 07/05/07*.............. 23,000,000 22,989,976
5.27% due 09/21/07*.............. 22,000,000 21,739,383
Barton Capital LLC
5.30% due 07/13/07*.............. 3,100,000 3,094,980
Chariot Funding LLC
5.32% due 07/27/07*.............. 30,895,000 30,780,860
Ciesco LLC
5.37% due 07/02/07*.............. 15,000,000 15,000,000
CRC Funding LLC
5.36% due 07/02/07*.............. 20,000,000 20,000,000
Galaxy Funding, Inc.
5.24% due 07/25/07*.............. 26,000,000 25,913,041
5.24% due 08/29/07*.............. 13,000,000 12,890,251
Giro Funding US Corp.
5.30% due 07/23/07*.............. 30,000,000 29,907,250
5.38% due 07/02/07*.............. 25,000,000 25,000,000
Jupiter Securitization Co., LLC
5.29% due 07/13/07*.............. 26,000,000 25,957,974
Kitty Hawk Funding Corp.
5.25% due 07/06/07*.............. 21,000,000 20,987,517
Ranger Funding Co., LLC
5.30% due 07/16/07*.............. 30,000,000 29,938,167
Sheffield Receivables
5.29% due 07/13/07*.............. 23,500,000 23,462,051
5.31% due 07/19/07*.............. 14,000,000 13,964,895
5.38% due 07/09/07*.............. 18,000,000 17,981,188
Surrey Funding Corp.
5.27% due 08/13/07*.............. 35,000,000 34,785,012
Sydney Capital Corp.
5.27% due 09/17/07*.............. 22,000,000 21,752,252
5.31% due 07/12/07*.............. 25,500,000 25,462,387
White Pine Finance LLC
5.27% due 09/17/07*.............. 22,000,000 21,752,017
Windmill Funding Corp.
5.25% due 08/03/07*.............. 19,000,000 18,911,333
------------
Total Asset-Backed Commercial Paper
(amortized cost $498,001,096).... 498,001,096
------------
CERTIFICATES OF DEPOSIT -- 25.4%
BNP Paribas
5.29% due 11/05/07............... 5,000,000 4,998,592
5.31% due 07/09/07............... 36,000,000 36,000,000
Calyon NY
5.31% due 09/26/07+.............. 5,500,000 5,499,736
5.33% due 03/04/08............... 32,000,000 32,001,050
Citibank New York NA
5.32% due 09/20/07............... 20,000,000 20,000,000
First Tennessee Bank
5.29% due 07/16/07............... 15,000,000 15,000,000
5.30% due 08/16/07............... 20,500,000 20,500,000
Principal Value
Security Description Amount (Note 2)
--------------------------------------------------------
Fortis Bank
5.27% due 07/30/07+........... $ 5,100,000 $ 5,098,753
5.28% due 08/02/07............ 25,000,000 24,998,918
5.31% due 02/19/08............ 25,500,000 25,500,789
HBOS Treasury Services
5.35% due 10/25/07+........... 20,000,000 20,000,000
5.36% due 10/22/07............ 23,000,000 23,001,032
Royal Bank of Scotland
5.26% due 07/16/07*+.......... 31,000,000 30,999,036
5.37% due 09/06/07*+.......... 18,000,000 18,008,804
Societe Generale
5.27% due 07/02/07+........... 10,000,000 10,000,000
Svenska Handelsbanken, Inc.
5.65% due 07/20/07............ 29,000,000 29,002,302
UBS AG Stamford
5.30% due 07/20/07............ 22,000,000 22,000,041
------------
Total Certificates of Deposit
(amortized cost $342,609,053). 342,609,053
------------
COMMERCIAL PAPER -- 16.3%
Bank of America Corp.
5.30% due 07/30/07+........... 23,000,000 23,001,613
5.41% due 09/05/07............ 18,000,000 17,831,975
Citibank NA
5.30% due 08/09/07............ 33,000,000 33,000,000
General Electric Capital Corp.
5.15% due 10/16/07............ 4,500,000 4,431,763
5.37% due 07/11/07+........... 21,000,000 21,012,041
HSBC Bank USA, Inc.
5.20% due 12/27/07............ 26,000,000 25,331,511
5.43% due 09/21/07+........... 16,000,000 16,004,614
Morgan Stanley
5.33% due 07/02/07+........... 37,000,000 37,000,000
Royal Bank of Canada
3.49% due 04/04/08+........... 19,000,000 18,997,093
UBS Finance LLC
5.20% due 07/05/07............ 24,000,000 23,989,596
Wells Fargo & Co.
5.40% due 09/10/07+........... 40,000 40,008
------------
Total Commercial Paper
(amortized cost $220,640,214). 220,640,214
------------
MEDIUM TERM NOTES -- 19.7%
Barclays Bank PLC
5.41% due 11/02/07............ 27,000,000 27,000,000
Beta Finance, Inc.
5.33% due 07/16/07*+.......... 36,000,000 36,001,670
Cheyne Finance LLC
5.30% due 07/06/07*+.......... 23,000,000 23,000,000
5.32% due 09/06/07*+.......... 37,000,000 36,999,166
HSBC Finance Corp.
5.50% due 08/09/07+........... 4,000,000 4,005,653
Merrill Lynch & Co., Inc.
5.33% due 07/16/07+........... 21,000,000 21,000,000
5.57% due 07/11/07+........... 2,500,000 2,500,128
Morgan Stanley Dean Witter Co.
5.48% due 07/18/07+........... 23,000,000 23,019,106
Sedna Finance, Inc.
5.32% due 07/16/07*........... 36,000,000 35,999,045
10
SunAmerica Money Market Fund
PORTFOLIO OF INVESTMENTS -- June 30, 2007 -- (unaudited) (continued)
Principal Value
Security Description Amount (Note 2)
MEDIUM TERM NOTES (continued)
Sigma Finance, Inc.
5.32% due 09/18/07*+..................... $37,000,000 $ 36,999,605
Wells Fargo & Co.
5.31% due 07/03/07+...................... 19,000,000 19,000,000
--------------
Total Medium Term Notes
(amortized cost $265,524,373)........... 265,524,373
--------------
TAXABLE MUNICIPAL NOTES -- 0.7%
Illinois Student Assistance Corp. Series D
5.35% due 07/04/07+...................... 10,000,000 10,000,000
--------------
U.S. GOVERNMENT AGENCIES -- 0.2%
Agency for International Development
Panama
5.76% due 07/03/07+...................... 2,201,048 2,206,936
--------------
Total Short-Term Investment Securities -- 99.2%
(amortized cost $1,338,981,672)......... 1,338,981,672
--------------
Principal Value
Security Description Amount (Note 2)
------------------------------------------------------------------
REPURCHASE AGREEMENT-- 2.2%
UBS Securities, LLC
Joint Repurchase Agreement
(amortized cost $30,181,000)(1).... $30,181,000 $ 30,181,000
--------------
TOTAL INVESTMENTS
(amortized cost $1,369,162,672)#... 101.4% 1,369,162,672
Liabilities in excess of other assets (1.4) (19,093,912)
----------- --------------
NET ASSETS........................... 100.0% $1,350,068,760
=========== ==============
- --------
* Securities exempt from registration under Rule 144A of securities Act of
1933. These securities may be sold in transactions exempt from registration,
normally to qualified institutional buyers. The Fund has no rights to demand
registration of these securities. At June 30, 2007, the aggregate value of
these securities was $716,008,422, representing 53.1% of net assets. Unless
otherwise indicated, these securities are not considered to be illiquid.
# At June 30, 2007, the cost of securities for federal income tax purposes was
the same for book purposes.
+ Variable rate security - the rate reflected is as of June 30, 2007; maturity
date reflects next reset date.
(1)See Note 2 for details of Joint Repurchase Agreements.
See Notes to Financial Statements
11
SunAmerica Municipal Money Market Fund
PORTFOLIO PROFILE -- June 30, 2007 -- (unaudited)
State Allocation*
New York......................... 11.7%
Illinois......................... 10.5
North Carolina................... 9.6
Michigan......................... 8.9
Florida.......................... 4.0
Texas............................ 4.0
Colorado......................... 3.7
Ohio............................. 3.6
New Mexico....................... 3.3
Wyoming.......................... 3.3
South Carolina................... 3.2
Kentucky......................... 3.1
Alabama.......................... 2.7
Indiana.......................... 2.6
Washington....................... 2.5
Alaska........................... 2.4
Arizona.......................... 2.4
Georgia.......................... 2.3
Louisiana........................ 2.3
North Dakota..................... 2.3
Delaware......................... 1.8
Pennsylvania..................... 1.7
Massachusetts.................... 1.6
Missouri......................... 1.6
Iowa............................. 1.2
Wisconsin........................ 1.0
Tennessee........................ 0.8
Idaho............................ 0.5
----
98.6%
====
Weighted average days to maturity 13.0
Credit Quality Allocation @#
A-1......................... 76.7%
SP-1........................ 11.3
Not Rated+.................. 12.0
-----
100.0%
=====
- --------
* Calculated as a percentage of net assets.
@ Source: Standard and Poors
# Calculated as a percentage of total debt issues.
+ Represents debt issues that have either no rating, or the rating is
unavailable from the data source.
12
SunAmerica Municipal Money Market Fund
PORTFOLIO OF INVESTMENTS -- June 30, 2007 -- (unaudited)
Principal Value
Security Description Amount (Note 2)
SHORT-TERM INVESTMENT SECURITIES -- 98.6%
Alabama -- 2.7%
Stevenson Alabama Industrial Development
Board Environmental Improvement Revenue
(LOC-JPMorgan Chase Bank)
3.83% due 07/04/07+.......................... $3,000,000 $3,000,000
----------
Alaska -- 2.4%
Alaska Housing Finance Corp.
Series A
3.70% due 07/05/07+.......................... 2,730,000 2,730,000
----------
Arizona -- 2.4%
Arizona State University Revenue
Series A
3.70% due 07/04/07+.......................... 400,000 400,000
Maricopa County, Arizona Industrial
Development Authority Multi Family
Housing Revenue
Series A
(LOC-Wells Fargo Bank N.A.)
3.83% due 07/05/07+.......................... 1,470,000 1,470,000
Maricopa County, Arizona Industrial
Development Revenue
(LOC-Harris Trust & Savings Bank)
3.79% due 07/05/07+.......................... 790,000 790,000
----------
2,660,000
----------
Colorado -- 3.7%
Colorado Housing & Finance Authority
Series SFM, Class 1-B-2
3.73% due 07/04/07+.......................... 600,000 600,000
Colorado Housing & Finance Authority
Series AA3
(LOC-Wells Fargo Bank N.A.)
3.73% due 07/04/07+.......................... 1,575,000 1,575,000
Colorado Springs, Colorado Revenue
(LOC-Wells Fargo Bank N.A.)
3.83% due 07/05/07+.......................... 1,345,000 1,345,000
Durango, Colorado Revenue
3.83% due 07/05/07+.......................... 660,000 660,000
----------
4,180,000
----------
Delaware -- 1.8%
Delaware Valley Pennsylvania Regional Finance
Authority
Series C
(LOC-Bayerische Landesbank)
3.76% due 07/04/07+.......................... 1,700,000 1,700,000
Delaware Valley Pennsylvania Regional Finance
Authority
Series A
(LOC-Bayerische Landesbank)
3.76% due 07/04/07+.......................... 300,000 300,000
----------
2,000,000
----------
Florida -- 4.0%
Dade County, Florida Water & Sewer System
Revenue
3.73% due 07/04/07+.......................... 3,800,000 3,800,000
Florida Keys Aqueduct Authority Revenue
3.74% due 07/04/07+.......................... 700,000 700,000
----------
4,500,000
----------
Principal Value
Security Description Amount (Note 2)
----------------------------------------------------------------------
Georgia -- 2.3%
Municipal Electric Authority of Georgia
Sub Series C
(LOC-Bayerische Landesbank)
3.68% due 07/04/07+.......................... $2,540,000 $ 2,540,000
-----------
Idaho -- 0.5%
Idaho Health Facilities Authority Revenue
3.94% due 07/02/07+.......................... 550,000 550,000
-----------
Illinois -- 10.5%
Chicago Board of Education
Series C
3.71% due 07/05/07+.......................... 80,000 80,000
Chicago O'Hare International Airport Revenue
Series C
3.74% due 07/04/07+.......................... 2,800,000 2,800,000
Chicago O'Hare International Airport Revenue
Class B
(LOC-Societe Generale)
3.80% due 07/04/07+.......................... 845,000 845,000
Chicago, Illinois Waterworks Revenue
(LOC-Bank One N.A.)
3.75% due 07/04/07+.......................... 500,000 500,000
Illinois Finance Authority Revenue
(LOC-Bank One N.A.)
3.73% due 07/05/07+.......................... 2,900,000 2,900,000
Jackson-Union Counties Regional Port District
Port Facilities Revenue
(LOC-Wachovia Bank N.A.)
3.73% due 07/04/07+.......................... 1,300,000 1,300,000
State of Illinois
Series B
3.73% due 07/04/07+.......................... 3,400,000 3,400,000
-----------
11,825,000
-----------
Indiana -- 2.6%
Marion, Indiana Economic Development
Revenue
(LOC-Bank of America N.A.)
3.73% due 07/04/07+.......................... 1,105,000 1,105,000
Reid Hospital and Health Care Service, Inc.
Series A
3.74% due 07/04/07+.......................... 1,860,000 1,860,000
-----------
2,965,000
-----------
Iowa -- 1.2%
Iowa Higher Education Loan Authority Revenue
(LOC-Wells Fargo Bank N.A.)
3.83% due 07/05/07+.......................... 100,000 100,000
Iowa Finance Authority
Series F
3.80% due 07/05/07+.......................... 1,100,000 1,100,000
Storm Lake, Iowa Higher Education Facilities
Revenue
3.88% due 07/05/07+.......................... 170,000 170,000
-----------
1,370,000
-----------
13
SunAmerica Municipal Money Market Fund
PORTFOLIO OF INVESTMENTS -- June 30, 2007 (unaudited) -- (continued)
Principal Value
Security Description Amount (Note 2)
SHORT-TERM INVESTMENT SECURITIES (continued)
Kentucky -- 3.1%
Breckinridge County, Kentucky Lease
Program Revenue
Series A
(LOC-U.S. Bank N.A.)
3.73% due 07/04/07+........................... $2,385,000 $ 2,385,000
Breckinridge County, Kentucky Lease
Program Revenue
(LOC-U.S. Bank N.A.)
3.73% due 07/04/07+........................... 1,120,000 1,120,000
-----------
3,505,000
-----------
Louisiana -- 2.3%
State of Louisiana
Series B
5.00% due 04/15/08+........................... 2,500,000 2,550,555
-----------
Massachusetts -- 1.6%
Massachusetts Health & Educational Facilities
Authority Revenue
Series D
3.84% due 07/02/07+........................... 1,000,000 1,000,000
University of Massachusetts Building Authority
Project Revenue
3.74% due 07/04/07+........................... 750,000 750,000
-----------
1,750,000
-----------
Michigan -- 8.9%
Detroit Michigan Water Supply System
Revenue
Series B
3.73% due 07/05/07+........................... 2,600,000 2,600,000
Detroit Michigan Water Supply System
Series B2
3.73% due 07/05/07+........................... 200,000 200,000
Holt, Michigan Public Schools
3.75% due 07/05/07+........................... 4,000,000 4,000,000
Michigan Municipal Bond Authority Revenue
(LOC-Bank of Nova Scotia)
Series B-2
4.50% due 08/20/07 2,500,000 2,502,654
Michigan State Housing Development
Authority
Series C
3.76% due 07/04/07+........................... 700,000 700,000
-----------
10,002,654
-----------
Missouri -- 1.6%
Missouri Higher Education Loan Authority
Series B
3.77% due 07/04/07+........................... 1,800,000 1,800,000
-----------
New Mexico -- 3.3%
Albuquerque, New Mexico Educational Facilities
Revenue
3.77% due 07/04/07+........................... 3,700,000 3,700,000
-----------
Principal Value
Security Description Amount (Note 2)
---------------------------------------------------------------------
New York -- 11.7%
Jay Street Development Corp. Courts Facility
Lease Revenue
Series A-2
(LOC-Depfa Bank PLC)
3.88% due 07/02/07+......................... $2,185,000 $ 2,185,000
Metropolitan Transportation Authority
Series D-1
3.68% due 07/05/07+......................... 1,950,000 1,950,000
Metropolitan Transportation Authority
Series G-1
3.71% due 07/05/07+......................... 1,745,000 1,745,000
Metropolitan Transportation Authority
Series G-2,
3.71% due 07/05/07+......................... 280,000 280,000
Metropolitan Transportation Authority
Series G
(LOC-BNP Paribas)
3.92% due 07/02/07+......................... 200,000 200,000
New York City Municipal Water Finance
Authority
Sub Series C-3
3.75% due 07/02/07+......................... 1,000,000 1,000,000
New York City Municipal Water Finance
Authority
Series CC-1
3.83% due 07/02/07+......................... 595,000 595,000
New York City Municipal Water Finance
Authority
Series C
3.90% due 07/02/07+......................... 1,000,000 1,000,000
New York City Transitional Finance Authority
Series 1
3.84% due 07/02/07+......................... 900,000 900,000
New York, New York
Series E
(LOC-Bank of America)
3.70% due 07/05/07+......................... 645,000 645,000
New York, New York
Sub Series F-4
(LOC-Royal Bank of Scotland)
3.70% due 07/05/07+......................... 605,000 605,000
New York, New York
Sub Series A-10
(LOC-Morgan Guaranty Trust)
3.90% due 07/02/07+......................... 2,000,000 2,000,000
-----------
13,105,000
-----------
North Carolina -- 9.6%
Charlotte-Mecklenburg Hospital Authority
Series C
3.69% due 07/05/07+......................... 460,000 460,000
Charlotte North Carolina Certificates of
Participation
Series B
3.73% due 07/05/07+......................... 400,000 400,000
14
SunAmerica Municipal Money Market Fund
PORTFOLIO OF INVESTMENTS -- June 30, 2007 (unaudited) -- (continued)
Principal Value
Security Description Amount (Note 2)
SHORT-TERM INVESTMENT SECURITIES (continued)
North Carolina (continued)
City of Charlotte North Carolina
3.73% due 07/05/07+...................... $1,240,000 $ 1,240,000
County of Guilford North Carolina
3.73% due 07/05/07+...................... 1,065,000 1,065,000
Durham, North Carolina Public Improvement
3.75% due 07/05/07+...................... 300,000 300,012
Mecklenburg County, North Carolina
Certificates of Participation
3.73% due 07/05/07+...................... 1,365,000 1,365,000
North Carolina Medical Care Commission
Hospital Revenue
Series B
3.74% due 07/04/07+...................... 1,670,000 1,670,000
North Carolina Medical Care Commission
Hospital Revenue
Series B
3.74% due 07/05/07+...................... 1,430,000 1,430,000
North Carolina Medical Care Commission
Hospital System Revenue
Series D
3.69% due 07/04/07+...................... 800,000 800,000
State of North Carolina
Series D
3.72% due 07/04/07+...................... 1,465,000 1,465,000
Winston-Salem North Carolina Water And
Sewer System Revenue
Series C
3.75% due 07/04/07+...................... 590,000 590,000
-----------
10,785,012
-----------
North Dakota -- 2.3%
North Dakota State Housing Finance Agency
Revenue
Series A
3.81% due 07/04/07+...................... 2,545,000 2,545,000
-----------
Ohio -- 3.6%
Cleveland, Ohio Airport System Revenue
Series D
(LOC-West LB AG)
3.80% due 07/04/07+...................... 2,650,000 2,650,000
Hamilton County, Ohio Hospital Facilities
Series B
(LOC-JPMorgan Chase Bank)
3.70% due 07/05/07+...................... 900,000 900,000
Franklin County, Ohio Hospital Revenue
Series B
(LOC-Citibank N.A.)
3.73% due 07/05/07+...................... 455,000 455,000
-----------
4,005,000
-----------
Pennsylvania -- 1.7%
Pennsylvania Turnpike Commission
Series U
3.73% due 07/05/07+...................... 900,000 900,000
Pennsylvania Turnpike Commission
Class A-1
3.78% due 07/04/07+...................... 1,000,000 1,000,000
-----------
1,900,000
-----------
Principal Value
Security Description Amount (Note 2)
----------------------------------------------------------------------
South Carolina -- 3.2%
Piedmont Municipal Power Agency Electric
Revenue
Sub Series B-3
3.72% due 07/04/07+........................ $1,000,000 $ 1,000,000
Piedmont Municipal Power Agency Electric
Revenue
Sub Series B-1
3.72% due 07/04/07+........................ 2,645,000 2,645,000
------------
3,645,000
------------
Tennessee -- 0.8%
Jackson Energy Authority Wastewater
System Revenue
3.73% due 07/05/07+........................ 850,000 850,000
------------
Texas -- 4.0%
State of Texas Tax & Revenue Anticipation
4.50% due 08/31/07......................... 4,500,000 4,506,749
------------
Washington -- 2.5%
Port of Seattle, Washington Industrial
Development
(LOC-Citibank N.A.)
3.81% due 07/04/07+........................ 1,500,000 1,500,000
Washington Health Care Facilities Authority
Series C
3.74% due 07/04/07+........................ 1,350,000 1,350,000
------------
2,850,000
------------
Wisconsin -- 1.0%
Wisconsin Health & Educational Facilities
Authority
Series A
3.70% due 07/04/07+........................ 1,100,000 1,100,000
------------
Wyoming -- 3.3%
Wyoming Community Development Authority
Series A2
3.73% due 07/05/07+........................ 3,415,000 3,415,000
Wyoming Community Development Authority
Series A
3.73% due 07/05/07+........................ 350,000 350,000
------------
3,765,000
------------
Registered Investment Company -- 0.0%
SSgA Tax Free Money Market Fund............. 47,351 47,351
------------
TOTAL SHORT-TERM INVESTMENT SECURITIES
(amortized cost $110,732,321)*.............. 98.6% 110,732,321
Other assets less liabilities................. 1.4 1,582,664
---------- ------------
NET ASSETS.................................... 100.0% $112,314,985
========== ============
- --------
* At June 30, 2007, the cost of securities for federal income tax purpose
was the same for book purposes.
+ Variable rate security - the rate reflected is as of June 30, 2007;
maturity date reflects next reset date.
LOC --Letter of Credit
See Notes to Financial Statements
15
SunAmerica Money Market Funds
NOTES TO FINANCIAL STATEMENTS -- June 30, 2007 -- (unaudited)
Note 1. Organization
SunAmerica Money Market Funds, Inc. (the "Corporation") is an open-end
diversified management investment company organized as a Maryland
Corporation. The Corporation consists of two investment funds (each, a
"Fund" and collectively, the "Funds"). Each Fund is a separate series with a
distinct investment objective. Each Fund is advised by AIG SunAmerica Asset
Management Corp. ("AIG SunAmerica" or "Adviser"), an indirect wholly-owned
subsidiary of American International Group, Inc. ("AIG"). The investment
objective for each of the Funds is as follows:
The SunAmerica Money Market Fund ("Money Market Fund") seeks as high a level
of current income as is consistent with liquidity and stability of capital
through investment primarily in high-quality money market instruments
selected principally on the basis of quality and yield.
The SunAmerica Municipal Money Market Fund ("Municipal Money Market Fund")
seeks as high a level of current income as is consistent with liquidity and
stability of capital and that is exempt from regular federal income taxation
through investments selected primarily in high-quality money market
instruments primarily on the basis of quality and yield, and under normal
market conditions, invests at least 80% of its assets in municipal
securities that are exempt from regular federal income tax.
The Money Market Fund currently offers four classes of shares: Class A,
Class B, Class C and Class I. The Municipal Money Market Fund currently
offers three classes of shares: Class A, Class B, and Class C. The classes
within the Funds are presented in the Statement of Assets and Liabilities.
The cost structure for each class is as follows:
Class A shares-- Class A shares are available with no front-end sales
charge. A 1.00% contingent deferred sales charge ("CDSC")
is imposed on shares sold within one year of original
purchase and a 0.50% CDSC is imposed on shares sold after
the first year and within the second year after purchase.
Class B shares-- Class B shares are offered at their net asset value per
share, without any front-end sales charge. However, there
is a declining contingent deferred sales charge ("CDSC") on
shares sold within six years of purchase. Class B shares
will convert automatically to Class A shares approximately
eight years after the purchase of such shares and at such
time are no longer subject to a distribution fee.
Class C shares-- Class C shares are offered at their net asset value per
share, without any front-end sales charge. However, there
is a contingent deferred sales charge of 1.00% on shares
sold within 12 months of purchase.
Class I shares-- Class I shares are offered at net asset value per share
without any sales charge, exclusively to certain
institutions.
Each class of shares bears the same voting, dividend, liquidation and other
rights and conditions, except as may otherwise be provided in the Funds'
registration statement. Class A, Class B, and Class C shares of each Fund
has its own 12b-1 plan.
Indemnifications: Under the Funds' organizational documents, its officers
and directors are indemnified against certain liability arising out of the
performance of their duties to the Funds. In addition, in the normal course
of business the Funds enter into contracts that contain the obligation to
indemnify others. The Funds' maximum exposure under these arrangements is
unknown. Currently, however, the Funds expects the risk of loss to be remote.
Note 2. Significant Accounting Policies
The preparation of financial statements in accordance with U.S. generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts and disclosures in the financial
16
SunAmerica Money Market Funds
NOTES TO FINANCIAL STATEMENTS -- June 30, 2007 -- (unaudited)
(continued)
statements. Actual results could differ from these estimates. The following
is a summary of the significant accounting policies followed by the Funds in
the preparation of its financial statements:
Pursuant to each 12b-1 plan, the Fund pays the Fund's distributor (the
"Distributor") an account maintenance fee with respect to Class A, B & C
shares and pursuant to the 12b-1 plan for the Class B and Class C shares,
the Fund also pays the Distributor a distribution fee with respect to the
Class B and C shares. The Class A shares do not pay a distribution fee.
Security Valuations: Portfolio securities are valued at amortized cost,
which approximates market value. The amortized cost method involves valuing
a security at its cost on the date of purchase and thereafter assuming a
constant amortization/accretion to maturity of any discount or premium.
Repurchase Agreements: The Funds, along with other affiliated registered
investments companies, pursuant to exemptive relief granted by the
Securities and Exchange Commission, may transfer uninvested cash balances
onto a single joint account, the daily aggregate balance of which is
invested in one or more repurchase agreements collateralized by U.S.
Treasury or federal agency obligations. For repurchase agreements and joint
repurchase agreements, the Funds' custodian takes possession of the
collateral pledged for investments in such repurchase agreements. The
underlying collateral is valued daily on a mark to market basis to ensure
that the value, at the time the agreement is entered into, is equal to at
least 102% of the repurchase price, including accrued interest. In the event
of default of the obligation to repurchase, a Fund has the right to
liquidate the collateral and apply the proceeds in satisfaction of the
obligation. If the seller defaults and the value of the collateral declines
or if bankruptcy proceedings are commenced with respect to the seller of the
security, realization of the collateral by the Fund may be delayed or
limited.
At June 30, 2007, the following Fund held an undivided interest in a joint
repurchase agreement with UBS Securities LLC:
Percentage Principal
Fund Interest Amount
---- ---------- -----------
Money Market Fund................................. 15.09% $30,181,000
As of such date, the repurchase agreement in that joint account and the
collateral therefore were as follows:
UBS Securities LLC, dated June 30, 2007, bearing interest at a rate of
4.40% per annum, with a principal amount of $200,000,000 a repurchase price
of $200,073,333, and a maturity date of July 2, 2007. The repurchase
agreement is collateralized by the following:
Interest Maturity Principal
Type of Collateral Rate Date Amount Market Value
------------------ -------- -------- ----------- ------------
U.S. Treasury Inflation Index
Bonds....................... 2.00% 01/15/14 $77,345,000 $78,892,325
U.S. Treasury Inflation Index
Bonds....................... 3.00 07/15/12 74,885,000 76,382,710
U.S. Treasury Inflation Index
Bonds....................... 3.63 01/15/08 47,770,000 48,726,608
Securities Transactions, Investment Income, Expenses, Dividends and
Distributions to Shareholders: Security transactions are recorded on a trade
date basis. Realized gains and losses on sales of investments are calculated
on the identified cost basis. Interest income, including the accretion of
discount and amortization of premium, is accrued daily; dividend income is
recorded on the ex-dividend date.
Net investment income, other than class specific expenses, and realized and
unrealized gains and losses, are allocated daily to each class of shares
based upon the relative net asset value of outstanding shares (or the value
of the dividend-eligible shares, as appropriate) of each class of shares at
the beginning of the day (after adjusting for the current capital shares
activity of the respective class).
Expenses common to all Funds, not directly related to individual Funds, are
allocated among the Funds based upon their relative net asset value or other
appropriate methods. In all respects, expenses are charged to each Fund as
17
SunAmerica Money Market Funds
NOTES TO FINANCIAL STATEMENTS -- June 30, 2007 -- (unaudited)
(continued)
incurred on a specific identification basis. Interest earned on cash
balances held at the custodian are shown as custody credits in the Statement
of Operations.
Dividends from net investment income, if any, are normally declared daily
and paid monthly. Capital gain distributions, if any, are paid annually. The
Funds record dividends and distributions to their shareholders on the
ex-dividend date. The amount of dividends and distributions from net
investment income and net realized capital gains are determined in
accordance with federal income tax regulations, which may differ from U.S.
generally accepted accounting principles. These "book/tax" differences are
either considered temporary or permanent in nature. To the extent these
differences are permanent in nature, such amounts are reclassified within
the capital accounts at fiscal year end based on their federal tax-basis
treatment; temporary differences do not require reclassification. Net
investment income (loss), net realized gain (loss), and net assets are not
affected by these reclassifications.
The Funds intend to comply with the requirements of the Internal Revenue
Code applicable to regulated investment companies and distribute all of
their taxable income, including any net realized gain on investments, to its
shareholders. Therefore, no federal tax provisions are required. Each Fund
is considered a separate entity for tax purposes.
New Accounting Pronouncements: On July 13, 2006, the Financial Accounting
Standards Board (FASB) released FASB interpretation No. 48 "Accounting for
Uncertainty in Income Taxes" ("FIN 48"). FIN 48 provides guidance for how
uncertain tax positions should be recognized, measured, presented and
disclosed in the financial statements. FIN 48 requires the evaluation of tax
positions taken or expected to be taken in the course of preparing the
Fund's tax returns to determine whether the tax positions are
"more-likely-than-not" of being sustained by the applicable tax authority.
Adoption of FIN 48 is required for fiscal years beginning after December 15,
2006 and is to be applied to all open tax years as of the effective date.
However, Registered Investment Companies are not required to implement FIN
48 until their last net asset value calculation in the first required
financial statement reporting period for fiscal years beginning after
December 15, 2006. Management has evaluated the implications of FIN 48 and
determined there is no impact to the financial statements.
In September 2006, the FASB issued Statement on Financial Accounting
Standards No. 157, "Fair Value Measurements" (FAS 157). This standard
clarifies the definition of fair value for financial reporting, establishes
a framework for measuring fair value and requires additional disclosures
about the use of fair value measurements. FAS 157 is effective for financial
statements issued for fiscal years beginning after November 15, 2007 and
interim periods within those fiscal years. As of November 30, 2006, the Fund
does not believe the adoption of FAS 157 will impact the amounts reported in
the financial statements, however, additional disclosures will be required
about the inputs used to develop the measurements of fair value.
Note 3. Investment Advisory and Management Agreement, Distribution and Service
Agreement
The Funds have an Investment Advisory and Management Agreement (the
"Agreement") with AIG SunAmerica. Under the Agreement, AIG SunAmerica
provides continuous supervision of the Funds and administers its corporate
affairs, subject to general review by the Board of Directors (The "Board").
In connection therewith, AIG SunAmerica furnishes the Funds with office
facilities, maintains certain of its books and records, and pays the
salaries and expenses of all personnel, including officers of the Funds who
are employees of AIG SunAmerica and its affiliates.
The Funds pay AIG SunAmerica a monthly investment advisory and management
fee calculated daily at the following annual percentages of each Fund's
average daily net assets:
Management
Assets Fees
---------------------------- ----------
Money Market Fund............. $0 - $600 million 0.50%
next $900 million 0.45%
(greater than) $ 1.5 billion 0.40%
Municipal Money Market Fund... (greater than) $0 0.35%
18
SunAmerica Money Market Funds
NOTES TO FINANCIAL STATEMENTS -- June 30, 2007 -- (unaudited)
(continued)
The Municipal Money Market Fund is subadvised by AIG Global Investment Corp.
("AIGGIC") pursuant to a subadvisory agreement with AIG SunAmerica. AIGGIC
is an indirect wholly-owned subsidiary of AIG and an affiliate of AIG
SunAmerica. AIGGIC receives the following fees from AIG SunAmerica, based
upon the Fund's average daily net assets:
Sub-advisory
Assets Fees
--------------------------- ------------
Municipal Money Market Fund... $0 - $200 million 0.25%
next $300 million 0.20%
(greater than) $500 million 0.15%
AIG SunAmerica has contractually agreed to waive fees and/or reimburse
expenses to the extent necessary to cap the Fund's annual fund operating
expenses at the following percentages of each Fund's average net assets. The
contractual expense waivers and fee reimbursements will continue
indefinitely, subject to termination by the Directors, including a majority
of the directors that are not deemed to be "interested persons" of the Funds
as defined by Section 2(a)(19) of the Investment Company Act of 1940 (the
"1940 Act") ("Independent Directors").
Fund Percentage
---- ----------
Money Market Class I.............................. 0.80%
Municipal Money Market Class A.................... 0.95
Municipal Money Market Class B.................... 1.70
Municipal Money Market Class C.................... 1.70
The Funds may also voluntarily waive fees and/or reimburse expenses. The
voluntary waivers and/or reimbursements may be terminated at any time. The
exact amount of the voluntary waivers and/or reimbursements may change on a
day-to-day basis.
For the period ended June 30, 2007, AIG SunAmerica agreed to reimburse
expenses as follows:
Fund
----
Money Market Class I.............................. $ 921
Municipal Money Market Class A.................... 870
Municipal Money Market Class B.................... 6,512
Municipal Money Market Class C.................... 5,837
The Corporation on behalf of each, Fund, has entered into a Distribution
Agreement with AIG SunAmerica Capital Services, Inc. ("AIG SACS" or the
"Distributor"), an affiliate of the Adviser. The Funds have adopted a
Distribution Plan (the "Plan") on behalf of each class of shares (other then
Class I Shares (each a "Plan" or collectively the "Plans"), in accordance
with the provisions of Rule 12b-1 under the 1940 Act hereinafter referred to
as the "Class A Plan," the "Class B Plan," and the "Class C Plan." In
adopting the Plans, the directors determined that there was a reasonable
likelihood that each such Plan would benefit the Funds and the shareholders
of the respective class. The sales charge and distribution fees of a
particular class will not be used to subsidize the sale of shares of any
other class.
Both the Class B Plan and the Class C Plan, provide that the fund shall pay
the Distributor distribution fee at the annual rate of 0.75% of the average
daily net assets of the Fund's Class B and Class C shares respectively, to
compensate the Distributor and certain securities firms for providing sales
and promotional activities for distributing that class of shares. The
distribution costs for which the Distributor may be compensated include
distribution fees paid to broker-dealers that have sold Fund shares,
commissions, and other expenses such as those incurred for sales literature,
prospectus printing and distribution, and compensation to wholesalers. It is
possible that in any given year the amount paid to the Distributor under the
Class B and Class C Plans may exceed the Distributor's distribution costs as
described above. The Class A Plan does not provide for a distribution fee.
The Plans also provide that each
19
SunAmerica Money Market Funds
NOTES TO FINANCIAL STATEMENTS -- June 30, 2007 -- (unaudited)
(continued)
class of shares of the Funds other than Class I, shall pay the Distributor
an account maintenance at the annual rate of up to 0.15% of the aggregate
average daily net assets of such class of shares for payments to compensate
the Distributor and certain securities firms for account maintenance
activities. In this regard, some payments are used to compensate
broker-dealers with account maintenance fees in an amount up to 0.15% per
year of the assets maintained in the Funds by their customers. Accordingly,
for the period ended June 30, 2007, AIG SACS received fees (see Statement of
Operations) based upon the aforementioned rates.
SACS receives the proceeds of contingent deferred sales charges paid by
investors in connection with certain redemptions of each Fund's Class A,
Class B and Class C shares. AIG SACS has advised the Funds for the period
ended June 30, 2007, the proceeds received from redemptions are as follows:
Contingent Deferred Sales Charges
---------------------------------
Fund Class A Class B Class C
---- ------- ------- -------
Money Market....................... $-- $55,701 $4,523
Municipal Money Market............. -- 6,879 --
The Funds have entered into a Service Agreement with AIG SunAmerica Fund
Services, Inc. ("AIG SAFS"), an affiliate of the Adviser. Under the Service
Agreement, AIG SAFS performs certain shareholder account functions by
assisting the Funds' transfer agent in connection with the services that it
offers to the shareholders of the Fund. The Service Agreement, which permits
the Funds to compensate AIG SAFS for services rendered based upon the annual
rate of 0.22% of average daily net assets, is approved annually by the
Trustees. For the period ended June 30, 2007, the Funds incurred the
following expenses which are included in transfer agent fees and expenses
payable line in the Statement of Asset and Liabilities and in transfer agent
fees and expenses in the Statement of Operations to compensate AIG SAFS
pursuant to the terms of the Service Agreement:
Payable at
Fund Expenses June 30, 2007
---- ---------- -------------
Money Market Fund Class A.......... $1,714,431 $254,231
Money Market Fund Class B.......... 24,139 6,845
Money Market Fund Class C.......... 17,588 4,335
Money Market Fund Class I.......... 17,678 2,979
Municipal Money Market Fund Class A 115,098 21,839
Municipal Money Market Fund Class B 481 107
Municipal Money Market Fund Class C 406 175
Note 4. Federal Income Taxes
The following details the tax basis distributions as well as the components
of distributable earnings. The tax basis components of distributable
earnings differ from the amounts reflected in the Statement of Assets and
Liabilities by temporary book/tax differences primarily arising from
dividends payable and cumulative pension expenses.
Distributable Earnings Tax Distributions
----------------------------------------- --------------------------------
For the year ended December 31, 2006
--------------------------------------------------------------------------
Long-term Gains/ Unrealized Long-Term
Ordinary Capital Loss Appreciation Ordinary Capital
Fund Income Carryover (Depreciation) Income Gains Tax Exempt
- ---- -------- ---------------- -------------- ----------- --------- ----------
Money Market....................... $432,994 $ (318) $-- $68,756,190 $-- $ --
Municipal Money Market............. 34,495* (24,324) -- -- -- 2,633,211
- --------
* Tax exempt distributable earnings
20
SunAmerica Money Market Funds
NOTES TO FINANCIAL STATEMENTS -- June 30, 2007 -- (unaudited)
(continued)
For Federal income tax purposes, the Funds indicated below have capital loss
carryforwards, which expire in the year indicated, as of December 31, 2006,
which are available to offset future capital gains, if any:
Capital Loss Carryforward
-------------------------
Fund 2012 2013 2014
---- ------ ------- ----
Money Market.................. $ -- $ -- $318
Municipal Money Market........ 8,072 16,252 --
Under the current law, capital losses related to securities and foreign
currency realized after October 31 and prior to the Fund's fiscal year end
may be deferred and treated as arising on the first day of the following
year. For fiscal year ended December 31, 2006, the Money Market Fund elected
to defer post October capital losses in the amount of $398.
Note 5. Capital Share Transactions
Transactions in each class of shares of the Funds, all at $1.00 per share,
for the six months ended June 30, 2007 and for the prior year were as follows
SunAmerica Money Market Fund
----------------------------------------------------------------------------------------------
Class A Class B Class C
------------------------------ --------------------------- -------------------------
For the For the For the
six months For the six months For the six months For the
ended year ended year ended year
June 30, ended June 30, ended June 30, ended
2007 December 31, 2007 December 31, 2007 December 31,
(unaudited) 2006 (unaudited) 2006 (unaudited) 2006
------------- --------------- ------------ ------------ ----------- ------------
Shares sold............ $ 412,614,064+ $ 1,067,246,832++ $ 6,190,251 $ 21,345,812 $18,667,793 $ 35,756,424
Reinvested dividends... 34,315,411 65,808,620 363,225 876,052 269,971 556,078
Shares redeemed........ (866,421,868) (1,008,912,573) (10,630,407)+ (30,154,351)++ (8,864,702) (37,411,117)
------------- --------------- ------------ ------------ ----------- ------------
Net increase (decrease) $(419,492,393) $ 124,142,878 $ (4,076,931) $ (7,932,487) $10,073,062 $ (1,098,616)
============= =============== ============ ============ =========== ============
---------------------
Class I
------------------------
For the
six months For the
ended year
June 30, ended
2007 December 31,
(unaudited) 2006
----------- ------------
Shares sold............ $ 5,346,717 $10,490,556
Reinvested dividends... 361,621 672,568
Shares redeemed........ (8,188,541) (6,814,727)
----------- -----------
Net increase (decrease) $(2,480,198) $ 4,348,397
=========== ===========
- --------
+ Includes automatic conversion of Class B shares in the amount of $2,529,173
to Class A shares
++ Includes automatic conversion of Class B shares in the amount of $2,136,800
to Class A shares
SunAmerica Muni Money Market Fund
-------------------------------------------------------------------------------------
Class A Class B Class C
--------------------------- -------------------------- -------------------------
For the For the For the
six months For the six months For the six months For the
ended year ended year ended year
June 30, ended June 30, ended June 30, ended
2007 December 31, 2007 December 31, 2007 December 31,
(unaudited) 2006 (unaudited) 2006 (unaudited) 2006
------------ ------------- ----------- ------------ ------------ ------------
Shares sold............ $108,297,895# $ 253,437,415## $ 15,006 $ 421,681 $ 886,512 $ 535,044
Reinvested dividends... 1,510,838 2,607,633 4,311 10,009 3,129 3,913
Shares redeemed........ (99,570,329) (239,778,560) (256,985)# (416,224)## (328,333) (1,968,276)
------------ ------------- ----------- ------------ ------------ -----------
Net increase (decrease) $ 10,238,404 $ 16,266,488 $ (237,668) $ 15,466 $ 561,308 $(1,429,319)
============ ============= =========== ============ ============ ===========
- --------
# Includes automatic conversion of Class B shares in the amount of $67,866 to
Class A shares
## Includes automatic conversion of Class B shares in the amount of $25,660 to
Class A shares
Note 6. Directors' Retirement Plan
The Directors of the SunAmerica Money Market Funds, Inc. have adopted the
AIG SunAmerica Disinterested Trustees' and Directors' Retirement Plan (the
"Retirement Plan") effective January 1, 1993, as amended December 9, 2006,
for the unaffiliated Directors. The Retirement Plan provides generally that
an unaffiliated Director may become a participant ("Participant") in the
Retirement Plan if he or she has at least 10 years of consecutive service as
a Disinterested Director of any of the adopting AIG SunAmerica mutual funds
(the "Adopting Funds") or has attained the age of 60 while a Director and
completed five (5) consecutive years of service as a Director of any
Adopting Fund (an "Eligible Director"). Pursuant to the Retirement Plan, an
Eligible Director may receive benefits upon (i) his or her
21
SunAmerica Money Market Funds
NOTES TO FINANCIAL STATEMENTS -- June 30, 2007 -- (unaudited)
(continued)
death or disability while a Director or (ii) the termination of his or her
tenure as a Director, other than removal for cause from each of the Adopting
Funds with respect to which he or she is an Eligible Director.
As of each of the first 10 birthdays after becoming a Participant and on
which he or she is both a Director and Participant, each Eligible Director
will be credited with an amount equal to 50% of his or her regular fees
(excluding committee fees) for services as a Disinterested Director of each
Adopting Fund for the calendar year in which such birthday occurs. In
addition, an amount equal to 8.50% of any amounts credited under the
preceding statement during prior years is added to each Eligible Director's
account. The rights of any Participant to benefits under the Retirement Plan
shall be an unsecured claim against the assets of the Adopting Funds. An
Eligible Director may receive any benefits payable under the Retirement
Plan, at his or her election, either in one lump sum or in up to 15 annual
installments. Any undistributed amounts shall continue to accrue interest at
8.50%.
The following amounts for the Retirement Plan Liabilities are included in
the Directors' fees and expenses line on the Statement of Assets and
Liabilities and the amounts for the Retirement Plan Expenses are included in
the Director's fees and expenses line on the Statement of Operations.
Retirement Plan Retirement Plan Retirement Plan
Liability Expense Payments
- --------------- --------------- ---------------
Fund As of June 30, 2007
---- -----------------------------------------------
Money Market.................. $250,992 $12,175 $6,883
Municipal Money Market........ 7,943 789 138
Note 7. Interfund Lending Agreement
Pursuant to exemptive relief granted by the Securities and Exchange
Commission, the Funds are permitted to participate in an interfund lending
program among investment companies advised by AIG SunAmerica or an
affiliate. The interfund lending program allows the participating Funds to
borrow money from and loan money to each other for the temporary or
emergency purposes. An interfund loan will be made under this facility only
if the participating Funds receive a more favorable interest rate than would
otherwise be available from a typical bank for a comparable transaction. For
the period ended June 30, 2007, none of the Funds participated in the
program.
Note 8. Other Information
On February 9, 2006, AIG, the parent company and an affiliated person of AIG
SunAmerica, AIG SACS and AICGIC, announced that it had consented to the
settlement of an injunctive action instituted by the Securities and Exchange
Commission ("SEC"). In its complaint, the SEC alleged that AIG violated
Section 17(a) of the Securities Act of 1933, as amended, Sections 10(b),
13(a), 13(b)(2) and 13(b)(5) of the Securities Exchange Act of 1934, as
amended, and Rules 10b-5, 12b-20, 13a-1 and 13b2-1 promulgated thereunder,
in connection with AIG's accounting and public reporting practices. The
conduct described in the complaint did not involve any conduct of AIG or its
subsidiaries related to their investment advisory or distribution activities
with respect to the assets of the Funds.
AIG, without admitting or denying the allegations in the complaint (except
as to jurisdiction), consented to the entry of an injunction against further
violations of the statutes referred to above. Absent exemptive relief
granted by the SEC, the entry of such an injunction would prohibit AIG and
its affiliated persons from, among other things, serving as an investment
adviser of any registered investment management company or principal
underwriter for any registered open-end investment company pursuant to
Section 9(a) of the 1940 Act. Certain affiliated persons of AIG, including
the Adviser, received a temporary order from the SEC pursuant to Section
9(c) of the 1940 Act with respect to the entry of the injunction, granting
exemptive relief from the provisions of Section 9(a) of the 1940 Act. The
temporary order permits AIG and its affiliated persons, including AIG's
investment management subsidiaries, to serve as investment adviser,
sub-adviser, principal underwriter or sponsor of the Funds. The Adviser
expects that a permanent exemptive order will be granted, although there is
no assurance the SEC will issue the order.
Additionally, AIG and its subsidiaries reached a resolution of claims and
matters under investigation with the United States Department of Justice
("DOJ"), the Attorney General of the State of New York ("NYAG") and the New
York State Department of Insurance ("DOI"), regarding accounting, financial
reporting and insurance brokerage practices
22
SunAmerica Money Market Funds
NOTES TO FINANCIAL STATEMENTS -- June 30, 2007 -- (unaudited)
(continued)
of AIG and its subsidiaries, as well as claims relating to the underpayment
of certain workers compensation premium taxes and other assessments.
As a result of the settlements with the SEC, the DOJ, the NYAG and the DOI,
AIG will make payments totaling approximately $1.64 billion. In addition, as
part of its settlements, AIG has agreed to retain for a period of three
years an Independent Consultant who will conduct a review that will include
the adequacy of AIG's internal controls over financial reporting and the
remediation plan that AIG has implemented as a result of its own internal
review.
Subject to receipt of permanent relief, the Adviser, Distributor and AIGGIC
believe that the settlements are not likely to have a material adverse
effect on their ability to perform their respective investment advisory or
distribution services relating to the Funds.
23
SunAmerica Money Market Funds
If you would like additional information:
[_] Call FastFacts -- our 24-hour, automated account and fund information
hotline at 800-654-4760.
[_] Visit www.sunamericafunds.com for more up-to-date information.
AIG SunAmerica Mutual Funds
thank you for your continued support.
24
24
[LOGO] AIG Sun America
Mutual Funds
Harborside Financial Center
3200 Plaza 5
Jersey City, NJ 07311-4992
Directors/Trustees VOTING PROXIES ON FUND most recent twelve month
Samuel M. Eisenstat PORTFOLIO SECURITIES period ended June 30 is
Peter A. Harbeck A description of the available, once filed
Dr. Judith L. Craven policies and proce-dures with the U.S. Securities
William F. Devin that the Fund uses to and Exchange Commission,
Stephen J. Gutman determine how to vote without charge, upon
Jeffrey S. Burum proxies relating to request, by calling (800)
William J. Shea secu-rities held in the 858-8850 or on the U.S.
Fund's portfolios which Secu-rities and Exchange
Officers is available in the Commission's website at
Vincent M. Marra, Fund's State-ment of http://www.sec.gov.
President and Chief Additional Information,
Executive Officer may be obtained without DISCLOSURE OF QUARTERLY
Donna M. Handel, charge upon re-quest, by PORTFOLIO HOLDINGS
Treasurer calling (800) 858-8850. The Fund is required to
James Nichols, Vice This information is also file its com-plete
President available from the EDGAR schedule of portfolio
Timothy Pettee, Vice database on the U.S. holdings with the U.S.
President Secu-rities and Exchange Securities and Exchange
Cynthia Gibbons, Vice Commission's website at Commission for its first
President and Chief http://www.sec.gov. and third fiscal quarters
Compliance Officer on Form N-Q. The Fund's
Gregory N. Bressler, DELIVERY OF SHAREHOLDER Forms N-Q are available
Chief Legal Officer DOCUMENTS on the U.S. Securities
and Secretary The Funds have adopted a and Exchange Commission's
Nori L. Gabert, Vice policy that allows them website at
President and to send only one copy of http://www.sec.gov. You
Assistant Secretary a Fund's prospectus, can also review and
Kathleen Fuentes, proxy material, annual obtain copies of the
Assistant Secretary report and semi-annual Forms N-Q at the U.S.
Corey A. Issing, report (the "shareholder Securities and Exchange
Assistant Secretary documents") to Commission's Public
Gregory R. Kingston, shareholders with Refer-ence Room in
Vice President and multiple accounts Washington, DC
Assistant Treasurer residing at the same (information on the
Kathryn Pearce, ''household." This operation of the Public
Assistant Treasurer practice is called Reference Room may be
Matthew J. Hackethal, householding and reduces ob-tained by calling
Anti-Money Laundering Fund expenses, which 1-800-SEC-0330).
Compliance Office benefits you and other
shareholders. Unless the This report is submitted
Investment Adviser Funds receive solely for the general
AIG SunAmerica Asset instructions to the information of
Management Corp. con-trary, you will only shareholders of the Fund.
Harborside Financial receive one copy of the Distribution of this
Center shareholder documents. report to persons other
3200 Plaza 5 The Funds will continue than shareholders of the
Jersey City, NJ to household the Fund is authorized only
07311-4992 share-holder documents in connection with a
indefinitely, until we currently effective
Distributor are instructed otherwise. prospectus, setting forth
AIG SunAmerica Capital If you do nor wish to details of the Fund,
Services, Inc. participate in which must precede or
Harborside Financial householding please accompany this report.
Center contact Shareholder
3200 Plaza 5 Services at (800) The accompanying report
Jersey City, NJ 858-8850 ext. 6010 or has not been audited by
07311-4992 send a written request independent accountants
with your name, the name and accordingly no
Shareholder Servicing of your fund(s) and your opinion has been
Agent account member(s) to AIG expressed thereon.
AIG SunAmerica Fund SunAmerica Mutual Funds
Services, Inc. c/o BFDS, P.O. Box
Harborside Financial 219186, Kansas City MO,
Center 64121-9186. We will
3200 Plaza 5 resume individual
Jersey City, NJ mailings for your account
07311-4992 within thirty (30) days
of receipt of your
Custodian and Transfer request.
Agent
State Street Bank and PROXY VOTING RECORD ON
Trust Company SUNAMERICA MONEY MARKET
P.O. Box 419572 FUNDS
Kansas City, MO Information regarding how
64141-6572 SunAmer-ica Money Market
Funds voted proxies
relating to securities
held in SunAmer-ica Money
Market Funds during the
25
Distributed by:
AIG SunAmerica Capital Services, Inc.
Investors should carefully consider the investment objectives, risks, charges
and expenses of any mutual fund before investing. This and other important
information is contained in the prospectus, which can be obtained from your
financial adviser or from the AIG SunAmerica Sales Desk at 800-858-8850, ext.
6003. Read the prospectus carefully before investing.
www.sunamericafunds.com
MMSAN - 6/07
[LOGO]
AIG
Sun America
Mutual Funds
Item 2. Code of Ethics
Not applicable.
Item 3. Audit Committee Financial Expert.
Not applicable.
Item 4. Principal Accountant Fees and Services.
Not applicable.
Item 5. Audit Committee of Listed Registrants.
Not applicable.
Item 6. Schedule of Investments.
Included in Item 1 to the Form.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End
Management Investment Companies.
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable.
Item 9. Purchases of Equity Securities by Closed-End Management Investment
Company and Affiliated Purchasers.
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders.
There were no material changes to the procedures by which shareholders
may recommend nominees to the Registrant's Board of Directors that were
implemented after the Registrant last provided disclosure in response
to the requirements of Item 407(c)(2)(iv) of Regulation S-K (17 CFR
229.407) (as required by 22(b)(15)) of Schedule 14A (17 CFR 240.14a-
101), or this Item 10.
Item 11. Controls and Procedures.
(a) An evaluation was performed within 90 days of the filing of this
report, under the supervision and with the participation of the
registrant's management, including the President and Treasurer, of the
effectiveness of the design and operation of the registrant's
disclosure controls and procedures as defined under Rule 30a-3(c)
under the Investment Company Act of 1940 (17 CFR 270.3a-3(c)). Based
on that evaluation, the registrant's management, including the
President and Treasurer, concluded that the registrant's disclosure
controls and procedures are effective.
(b) There was no change in the registrant's internal control over financial
reporting (as defined in Rule 30a-3(d) under the Investment Company Act
of 1940 (17 CFR 270.30a-3(d))) that occurred during the last fiscal
quarter of the period covered by this report that has materially
affected, or is reasonably likely to materially affect, the
registrant's internal contro1 over financial reporting.
Item 12. Exhibits.
(a) (1) Not applicable.
(2) Certifications pursuant to Rule 30a-2(a) under the Investment
Company Act of 1940 (17 CFR 270.30a-2(a)) attached hereto as Exhibit
99.CERT.
(3) Not applicable.
(b) Certification pursuant to Rule 30a-2(b) under the Investment Company
Act of 1940 (17 CFR 270.30a-2(a)) and Section 906 of the Sarbanes-
Oxley Act of 2002 attached hereto as Exhibit 99.906.CERT.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
SunAmerica Money Market Funds, Inc.
By: /s/ Vincent M. Marra
-------------------
Vincent M. Marra
President
Date: September 7, 2007
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By: /s/ Vincent M. Marra
-------------------
Vincent M. Marra
President
Date: September 7, 2007
By: /s/ Donna M. Handel
-------------------
Donna M. Handel
Treasurer
Date: September 7, 2007