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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM N-CSR
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CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-3807
SunAmerica Money Market Funds, Inc
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(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)
John T. Genoy
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) 324-6414
Date of fiscal year end: December 31
Date of reporting period: June 30, 2008
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Item 1. Reports to Stockholders
[PHOTO]
SEMI-ANNUAL REPORT 2008
SUNAMERICA
Money Market Funds
[LOGO]
www.sunamericafunds.com
live longer retire stronger/sm/
June 30, 2008 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, 2008 SEMI-ANNUAL REPORT
Shareholders' Letter
Dear Shareholder:
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 ended June 30, 2008.
The past six months certainly have been challenging in both the financial and
economic markets. Slowing economic growth was the dominant theme over the
period with increasing concerns about inflation entering the economic dialogue
toward the end of the period. The housing downturn and credit crisis have
weighed on growth while steadily rising energy and food prices have stimulated
inflation fears.
The Federal Reserve has responded by reducing the Federal Funds Rate throughout
the period ending at a rate of 2.00%. However, given the twin concerns of
economic growth and inflation at the end of the period, the future direction of
interest rates remains uncertain.
Market conditions also have been challenging for both funds. The widely
reported downgrade of monoline insurers such as MBIA and AMBAC has shrunk the
inventory of available securities in the Municipal Money Market Fund. Our
managers have responded by focusing on securities backed by letters of credit.
The total return of the Money Market Fund was negatively impacted by its
holding in Cheyne Finance, LLC, which had previously discontinued making
interest and principal payments in connection with an insolvency event. In
addition, the Fund has faced the challenge of declining yields on money market
securities. Yields decreased steadily throughout the period with one-month
certificates of deposit yielding approximately 2.65% on June 30, 2008 down from
roughly 4.42% on December 31, 2007. We have responded by retaining a larger
than normal position in U.S. Treasuries and repurchase agreements backed by
U.S. Treasuries while actively managing the Fund's duration.
Though the markets have posed challenges, 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.
- --------
Past performance is no guarantee of future results.
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.
1
SunAmerica Money Market Funds
EXPENSE EXAMPLE -- June 30, 2008 -- (unaudited)
Disclosure of Portfolio Expenses in Shareholder Reports
As a shareholder of a Fund in the SunAmerica Money Market Funds, Inc., 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, 2008 and held until June 30,
2008.
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, 2008" 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, 2008" 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, 2008" 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, 2008" 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, 2008"
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, 2008" 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, 2008" 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, 2008 -- (unaudited) (continued)
Actual Hypothetical
-------------------------------------------- ------------------------------------------------
Ending Ending Account Expense
Beginning Account Value Expenses Paid Beginning Value using Expenses Paid Ratio
Account Value Using Actual During the Account Value a Hypothetical 5% During the as of
at January 1, Returns at Six Months Ended at January 1, Assumed Return at Six Months Ended June 30,
2008 June 30, 2008 June 30, 2008 2008 June 30, 2008 June 30, 2008 2008*
------------- ------------- ---------------- ------------- ----------------- ---------------- --------
Money Market
Fund
Class A..... $1,000.00 $1,011.34 $4.60 $1,000.00 $1,020.29 $4.62 0.92%
Class B..... $1,000.00 $1,007.16 $8.73 $1,000.00 $1,016.16 $8.77 1.75%
Class C .... $1,000.00 $1,007.24 $8.63 $1,000.00 $1,016.26 $8.67 1.73%
Class I#.... $1,000.00 $1,011.93 $4.00 $1,000.00 $1,020.89 $4.02 0.80%
Municipal
Money Market
Fund
Class A#.... $1,000.00 $1,007.35 $4.44 $1,000.00 $1,020.44 $4.47 0.89%
Class B#.... $1,000.00 $1,003.38 $8.37 $1,000.00 $1,016.51 $8.42 1.68%
Class C#.... $1,000.00 $1,003.38 $8.42 $1,000.00 $1,016.46 $8.47 1.69%
- --------
* Expenses are equal to the Fund's annualized expense ratio multiplied by the
average account value over the period, multiplied by 182 days divided by 366
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, 2008" and the "Expense Ratios" would have been higher.
3
SunAmerica Money Market Funds
STATEMENT OF ASSETS AND LIABILITIES -- June 30, 2008 -- (unaudited)
Money Market Municipal Money
Fund Market Fund
-------------- ---------------
ASSETS:
Short-term investment securities, at value* (unaffiliated)......... $1,023,331,633 $ 140,120,892
Repurchase agreements (cost approximates market value)............. 80,509,000 --
-------------- --------------
Total Investments................................................ $1,103,840,633 $ 140,120,892
-------------- --------------
Cash............................................................... 39,489 --
Receivable for:
Fund shares sold................................................. 3,235,162 167,586
Dividends and interest........................................... 4,447,731 517,522
Prepaid expenses and other assets.................................. 8,879 3,470
Due from investment adviser for expense reimbursements/fee waivers. 330 535
-------------- --------------
Total Assets..................................................... 1,111,572,224 140,810,005
-------------- --------------
LIABILITIES:
Payable for --
Fund shares redeemed............................................. 1,081,987 23,653
Investments purchased............................................ -- 500,544
Investment advisory and management fees.......................... 426,523 40,630
Distribution and service maintenance fees........................ 168,645 17,928
Transfer agent fees and expenses................................. 220,607 31,378
Dividends payable.................................................. 23,315 1,979
Due to custodian................................................... -- 818,303
Directors' fees and expenses....................................... 262,942 8,829
Other accrued expenses............................................. 296,207 104,270
-------------- --------------
Total Liabilities.................................................. 2,480,226 1,547,514
-------------- --------------
Net Assets...................................................... $1,109,091,998 $ 139,262,491
============== ==============
NET ASSETS REPRESENTED BY:
Common stock, $.001 par value (10 billion shares authorized)....... $ 1,108,702 $ 139,274
Paid-in capital.................................................... 1,107,498,040 139,134,941
-------------- --------------
1,108,606,742 139,274,215
Accumulated undistributed net investment income (loss)............. 77,901 580
Accumulated realized gain (loss) on investment..................... 407,355 (12,304)
-------------- --------------
Net Assets...................................................... $1,109,091,998 $ 139,262,491
============== ==============
Class A:
Net assets......................................................... $1,029,305,541 $ 138,266,363
Shares outstanding................................................. 1,028,936,358 138,277,883
Net asset value and redemption price per share
(excluding any applicable contingent deferred sales charge)....... $ 1.00 $ 1.00
============== ==============
Class B:
Net assets......................................................... $ 20,452,895 $ 204,386
Shares outstanding................................................. 20,446,382 204,343
Net asset value and redemption price per share
(excluding any applicable contingent deferred sales charge)....... $ 1.00 $ 1.00
============== ==============
Class C+:
Net assets......................................................... $ 42,270,580 $ 791,742
Shares outstanding................................................. 42,259,773 791,815
Net asset value and redemption price per share
(excluding any applicable contingent deferred sales charge)....... $ 1.00 $ 1.00
============== ==============
Class I:
Net assets......................................................... $ 17,062,982 $ --
Shares outstanding................................................. 17,059,207 --
Net asset value and redemption price per share..................... $ 1.00 $ --
============== ==============
*Amortized cost of short-term investment securities (unaffiliated). $1,023,331,633 $ 140,120,892
============== ==============
See Notes to Financial Statements
4
SunAmerica Money Market Funds
STATEMENT OF OPERATIONS -- For the six months ended June 30, 2008 --
(unaudited)
Money Market Municipal Money
Fund Market Fund
------------ ---------------
INVESTMENT INCOME:
Interest (unaffiliated)................................................ $ 18,874,807 $ 1,832,866
Dividends (unaffiliated)............................................... -- 1,006
------------ ------------
Total investment income............................................. 18,874,807 1,833,872
------------ ------------
EXPENSES:
Investment advisory and management fees................................ 2,785,786 271,275
Distribution and service maintenance fees
Class A............................................................... 825,840 115,558
Class B............................................................... 93,295 971
Class C............................................................... 147,046 3,246
Transfer agent fees and expenses
Class A............................................................... 1,229,015 173,324
Class B............................................................... 31,910 914
Class C............................................................... 40,104 1,484
Class I............................................................... 19,025 --
Registration fees
Class A............................................................... 10,741 15,583
Class B............................................................... -- 4,513
Class C............................................................... 7,362 7,458
Class I............................................................... 4,566 --
Custodian and accounting fees.......................................... 102,759 54,264
Reports to shareholders................................................ 170,017 5,491
Audit and tax fees..................................................... 29,331 29,331
Legal fees............................................................. 6,343 13,686
Directors' fees and expenses........................................... 83,273 6,668
Other expenses......................................................... 6,020 7,815
------------ ------------
Total expenses before fee waivers, expense reimbursements and
custody credits.................................................... 5,592,433 711,581
Fees waived and expenses reimbursed by investment adviser (Note 3).. (1,380) (13,633)
Custody credits earned on cash balances............................. (2,253) (4,966)
------------ ------------
Net expenses........................................................ 5,588,800 692,982
------------ ------------
Net investment income (loss)........................................... 13,286,007 1,140,890
------------ ------------
Net increase from payment by affiliates (Note 3)....................... 271,000 --
Net realized gain (loss) on investments................................ 77,948 (12,304)
------------ ------------
Net realized gain (loss) on investments................................ 348,948 (12,304)
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS........ $ 13,634,955 $ 1,128,586
============ ============
See Notes to Financial Statements
5
SunAmerica Money Market Funds
STATEMENT OF CHANGES IN NET ASSETS
Money Market Fund Municipal Money Market Fund
-------------------------------- --------------------------------
For the For the
six months six months
ended For the year ended For the year
June 30, ended June 30, ended
2008 December 31, 2008 December 31,
(unaudited) 2007 (unaudited) 2007
--------------- --------------- --------------- ---------------
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss)........... $ 13,286,007 $ 61,349,650 $ 1,140,890 $ 3,087,724
Net realized gain (loss) on investment. 348,948 58,407 (12,304) --
--------------- --------------- --------------- ---------------
Net increase (decrease) in net assets
resulting from operations.............. $ 13,634,955 $ 61,408,057 $ 1,128,586 $ 3,087,724
--------------- --------------- --------------- ---------------
Distributions to shareholders from:
Net investment income (Class A)........ $ (12,714,401) (59,290,555) (1,137,722) (3,071,615)
Net investment income (Class B)........ (147,190) (700,009) (703) (6,716)
Net investment income (Class C)........ (222,895) (636,557) (2,465) (9,393)
Net investment income (Class I)........ (208,414) (723,986) -- --
--------------- --------------- --------------- ---------------
Total distributions to shareholders..... (13,292,900) (61,351,107) (1,140,890) (3,087,724)
--------------- --------------- --------------- ---------------
Net increase (decrease) in net assets
resulting from capital share
transactions (Note 5).................. (133,953,136) (523,397,627) (15,436,846) 52,958,700
--------------- --------------- --------------- ---------------
Total increase (decrease) in net assets. (133,611,081) (523,340,677) (15,449,150) 52,958,700
--------------- --------------- --------------- ---------------
NET ASSETS:
Beginning of year....................... 1,242,703,079 1,766,043,756 154,711,641 101,752,941
--------------- --------------- --------------- ---------------
End of year*............................ $ 1,109,091,998 $ 1,242,703,079 $ 139,262,491 $ 154,711,641
=============== =============== =============== ===============
*Includes accumulated undistributed net
investment income (loss)............... $ 77,901 $ 84,794 $ 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
-------
12/31/03 $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
12/31/07 1.000 0.044 (0.044) 1.000 4.32 1,182,789 0.90 4.27
01/01/08-06/30/2008(4) 1.000 0.011 (0.011) 1.000 1.13%(6) 1,029,306 0.92%(5) 2.31%(5)
Class B
-------
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
12/31/07 1.000 0.034 (0.034) 1.000 3.42 18,326 1.77 3.38
01/01/08-06/30/2008(4) 1.000 0.007 (0.007) 1.000 0.72%(6) 20,453 1.75%(5) 1.42%(5)
Class C+
-------
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
12/31/07 1.000 0.033 (0.033) 1.000 3.43 23,046 1.76 3.34
01/01/08-06/30/2008(4) 1.000 0.007 (0.007) 1.000 0.72%(6) 42,271 1.73%(5) 1.36%(5)
Class I
-------
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)
12/31/07 1.000 0.043 (0.043) 1.000 4.43 18,543 0.80(3) 4.32(3)
01/01/08-06/30/2008(4) 1.000 0.012 (0.012) 1.000 1.19%(6) 17,063 0.80%(3)(5) 2.41%(3)(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):
12/31/03 12/31/04 12/31/05 12/31/06 12/31/07 06/30/08(4)(5)
-------- -------- -------- -------- -------- --------------
Class B.. 0.51% 0.39% -- % -- % -- % -- %
Class C+. 0.53 0.39 -- -- -- --
Class I.. 0.02 0.09 0.05 0.05 0.04 0.02
(4) Unaudited
(5) Annualized
(6)The fund's performance figure was increased by less than 0.01% from a
payment by an affiliate (Note 3).
+ 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
-------
12/31/03 $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
12/31/07 1.000 0.027 (0.027) 1.000 2.84 153,906 0.83 2.80
01/01/08-06/30/2008(4) 1.000 0.007 (0.007) 1.000 0.73% 138,266 0.89%(5) 1.48%(5)
Class B
-------
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
12/31/07 1.000 0.020 (0.020) 1.000 1.95 189 1.70 1.95
01/01/08-06/30/2008(4) 1.000 0.003 (0.003) 1.000 0.34% 204 1.68%(5) 0.65%(5)
Class C+
-------
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
12/31/07 1.000 0.017 (0.017) 1.000 1.95 617 1.70 1.92
01/01/08-06/30/2008(4) 1.000 0.003 (0.003) 1.000 0.34% 792 1.69%(3)(5) 0.68%(3)(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):
12/31/03 12/31/04 12/31/05 12/31/06 12/31/07 06/30/08(4)(5)
-------- -------- -------- -------- -------- --------------
Class A 0.03% 0.00% 0.04% 0.00% 0.01% 0.00%
Class B 1.03 0.87 1.44 2.15 3.96 4.75
Class C+ 7.45 4.20 0.47 2.14 2.62 2.19
(4) Unaudited
(5) Annualized
+ Effective February 23, 2004, Class II shares were redesignated as Class C
shares
See Notes to Financial Statements
8
SunAmerica Money Market Fund
PORTFOLIO OF INVESTMENTS -- June 30, 2008 -- (unaudited)
Industry Allocation*
U.S. Government Agencies............................................... 27.3%
Foreign Bank........................................................... 18.1
Money Center Banks..................................................... 15.6
Repurchase Agreement................................................... 7.3
Super-Regional Banks................................................... 5.5
Finance................................................................ 4.5
U.S. Government Securities............................................. 4.5
Diversified Financial Services......................................... 4.4
Domestic Bank.......................................................... 3.7
Finance--Investment Banker/Broker...................................... 3.6
Commercial Banks....................................................... 2.0
Asset Backed Commercial Paper/Finance.................................. 1.7
Commercial Banks--Canadian............................................. 1.3
----
99.5%
====
Weighted average days to maturity...................................... 41.7
Credit Quality Allocation@#
A-1................................................................... 91.1%
D..................................................................... 1.7
Not Rated............................................................. 7.2
-----
100.0%
=====
- --------
* Calculated as a percentage of net assets
@ Source: Standards and Poors
# Calculated as a percentage of total debt issues
9
SunAmerica Money Market Fund
PORTFOLIO OF INVESTMENTS -- June 30, 2008 -- (unaudited)
Principal Market Value
Security Description Amount (Note 2)
SHORT-TERM INVESTMENT SECURITIES -- 92.3%
CERTIFICATES OF DEPOSIT -- 31.7%
Bank of America NA 2.53% due 08/26/08................. $12,000,000 $ 12,000,000
2.65% due 10/07/08................................... 10,000,000 10,000,000
3.59% due 07/14/08+.................................. 26,000,000 26,000,000
Bank of Scotland PLC 2.66% due 08/25/08............... 13,500,000 13,500,000
2.70% due 09/12/08................................... 11,200,000 11,200,000
Barclays Bank PLC 2.80% due 09/24/08.................. 10,800,000 10,800,000
3.97% due 07/14/08................................... 15,000,000 15,001,168
BNP Paribas 2.34% due 07/09/08........................ 13,500,000 13,500,000
2.46% due 07/28/08................................... 11,100,000 11,100,083
3.52% due 10/15/08+.................................. 15,000,000 15,000,000
Calyon 2.72% due 10/14/08............................. 11,200,000 11,200,322
2.73% due 07/11/08................................... 11,250,000 11,250,000
Citibank NA 2.33% due 07/02/08........................ 13,400,000 13,400,000
2.69% due 08/15/08................................... 13,600,000 13,600,000
Deutsche Bank AG 2.72% due 08/04/08................... 11,100,000 11,101,017
Dexia Credit Local SA 2.78% due 09/22/08.............. 13,400,000 13,400,153
Fortis Bank 4.00% due 07/11/08........................ 11,100,000 11,104,536
HSBC Bank USA 2.96% due 07/28/08...................... 13,500,000 13,505,426
Nordea Bank Finland 4.61% due 11/05/08+............... 15,000,000 15,039,879
Rabobank Nederland NV 2.34% due 08/11/08.............. 13,500,000 13,500,153
2.60% due 08/01/08................................... 11,200,000 11,200,096
2.62% due 08/19/08................................... 13,000,000 13,001,922
Royal Bank of Canada 2.63% due 07/03/08............... 14,000,000 14,000,000
Royal Bank Of Scotland 3.18% due 12/12/08............. 13,600,000 13,602,222
Svenska Handelsbanken NY 2.75% due 07/28/08........... 11,100,000 11,100,083
Wachovia Bank NA 2.79% due 09/30/08................... 11,000,000 11,000,276
Wells Fargo Bank NA 2.30% due 08/04/08................ 12,000,000 12,000,000
------------
Total Certificates of Deposit
(amortized cost $351,107,336)........................ 351,107,336
------------
COMMERCIAL PAPER -- 18.3%
ABN AMRO Bank NV 2.48% due 07/09/08................... 13,500,000 13,492,560
Bank of Scotland PLC 2.57% due 07/08/08............... 9,600,000 9,595,203
Barclays U.S. Funding LLC 2.64% due 08/28/08.......... 13,600,000 13,542,264
General Electric Capital Corp. 2.42% due 08/01/08..... 11,100,000 11,076,869
2.67% due 08/22/08................................... 14,800,000 14,742,921
HSBC Finance Corp. 2.35% due 07/21/08................. 11,200,000 11,185,378
Principal Market Value
Security Description Amount (Note 2)
- ------------------------------------------------------------------------------
J.P. Morgan Chase & Co. 2.50% due 09/03/08............ $11,200,000 $ 11,150,222
2.56% due 08/04/08................................... 11,000,000 10,973,404
Lloyds Bank PLC 2.24% due 07/01/08.................... 12,500,000 12,500,000
2.49% due 07/01/08................................... 13,500,000 13,500,000
3.77% due 07/15/08................................... 15,000,000 14,978,008
Nordea North America, Inc. 2.30% due 07/07/08......... 11,100,000 11,095,745
2.36% due 07/22/08................................... 11,000,000 10,984,857
Rabobank USA Financial Co. 2.30% due 07/08/08......... 11,200,000 11,194,991
State Street Boston Corp. 2.33% due 07/17/08.......... 11,200,000 11,188,402
2.40% due 08/01/08................................... 11,000,000 10,977,267
Svenska Handelsbank, Inc. 2.49% due 08/05/08.......... 11,000,000 10,973,371
------------
Total Commercial Paper
(amortized cost $203,151,462)........................ 203,151,462
------------
CORPORATE NOTES -- 1.7%
Cheyne Finance LLC 5.20% due 01/07/08*(2)(5)(6)(7)(8)
(amortized cost $18,787,195)......................... 18,787,195 18,787,195
------------
MEDIUM TERM NOTES -- 8.8%
General Electric Capital Corp. 3.01% due 07/28/08+.... 13,000,000 13,005,779
Merrill Lynch & Co., Inc. 2.47% due 07/22/08+......... 19,000,000 19,000,000
2.61% due 07/15/08+.................................. 21,000,000 21,000,000
Royal Bank of Scotland PLC 2.47% due 07/28/08*+....... 13,000,000 12,998,514
Wachovia Bank NA 2.65% due 07/03/08+.................. 2,500,000 2,498,568
Wells Fargo & Co. 2.36% due 07/07/08.................. 10,000,000 10,000,017
2.51% due 07/03/08+.................................. 19,000,000 19,000,000
------------
Total Medium Term Notes
(amortized cost $97,502,878)......................... 97,502,878
------------
U.S. GOVERNMENT AGENCIES -- 27.3%
Agency for International Development Panama 2.48% due
07/02/08+............................................ 1,925,918 1,930,414
Federal Farm Credit Bank 2.07% due 07/08/08........... 13,500,000 13,494,566
Federal Home Loan Bank 2.01% due 07/30/08............. 11,100,000 11,082,027
2.02% due 08/01/08................................... 13,500,000 13,476,576
2.02% due 08/08/08................................... 11,000,000 10,976,546
2.02% due 08/11/08................................... 16,000,000 15,963,191
2.03% due 07/16/08................................... 12,620,000 12,609,326
2.05% due 08/08/08................................... 11,100,000 11,075,981
2.10% due 07/02/08................................... 13,400,000 13,399,218
2.12% due 07/09/08................................... 23,500,000 23,488,929
2.15% due 07/11/08................................... 13,500,000 13,491,937
2.15% due 08/01/08................................... 11,000,000 10,980,913
2.18% due 07/11/08................................... 13,400,000 13,391,886
2.18% due 08/15/08................................... 11,000,000 10,970,025
2.20% due 04/01/09................................... 11,300,000 11,292,600
10
SunAmerica Money Market Fund
PORTFOLIO OF INVESTMENTS -- June 30, 2008 -- (unaudited) (continued)
Principal Market Value
Security Description Amount (Note 2)
U.S. GOVERNMENT AGENCIES (continued)
2.22% due 07/16/08............................... $13,500,000 $ 13,487,513
2.30% due 01/15/09............................... 13,800,000 13,790,617
4.13% due 11/19/08............................... 13,800,000 13,901,246
5.00% due 09/12/08............................... 12,000,000 12,065,389
5.80% due 09/02/08............................... 26,000,000 26,062,989
Federal National Mtg. Assoc. 2.02% due 07/18/08... 14,000,000 13,986,646
2.09% due 12/08/08............................... 11,100,000 10,996,893
2.47% due 10/27/08............................... 11,000,000 10,910,943
--------------
Total U.S. Government Agencies
(amortized cost $302,826,371).................... 302,826,371
--------------
U.S. GOVERNMENT TREASURIES -- 4.5%
United States Treasury Notes 3.13% due 09/15/08... 25,000,000 24,956,687
4.13% due 08/15/08............................... 25,000,000 24,999,704
--------------
Total U.S. Government Treasuries
(amortized cost $49,956,391)..................... 49,956,391
--------------
Total Short-Term Investment Securities -- 92.3%
(amortized cost $1,023,331,633).................. 1,023,331,633
--------------
REPURCHASE AGREEMENT -- 7.2%
UBS Securities LLC Joint Repurchase Agreement(3)
(amortized cost $80,509,000)..................... 80,509,000 80,509,000
--------------
TOTAL INVESTMENTS
(amortized cost $1,103,840,633)(4)............... 99.5% 1,103,840,633
Other assets less liabilities..................... 0.5 5,251,365
----------- --------------
NET ASSETS........................................ 100.0% $1,109,091,998
=========== ==============
- --------
* Securities exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be sold in transactions exempt from
registration, normally to qualified institutional buyers. The Fund has no
right to demand registration of these securities. At June 30, 2008, the
aggregate value of these securities was $31,785,709 representing 2.9% of
net assets. Unless otherwise indicated these securities are not considered
to be illiquid.
+ Variable Rate Security - the rate reflected is as of June 30, 2008,
maturity date reflects next reset date.
(2) Illiquid security
(3) See Note 2 for details of Joint Repurchase Agreements.
(4) At June 30, 2008, the cost of securities for federal income tax purposes
was the same for book purposes.
(5) Security in default
(6) Floating rate security where the rate fluctuates. The rate moves up or down
at each reset date. The rate reflected is as of June 30, 2008.
(7) Security issued by a structured investment vehicle ("SIV"). These SIV's may
be affected by, among other things, changes in: interest rates, the quality
of the underlying assets or the market's assessment thereof, factors
concerning the interest in and structure of the issuer or the originator of
the receivables, or the credit worthiness of the entities that provide any
credit enhancements.
(8) On August 28, 2007, mark to market losses experienced in the investment
portfolio of SIV Portfolio, Plc ("SIV Portfolio") (formerly Cheyne Finance
Plc), the issuer of the underlying notes held by Cheyne Finance LLC, the
issuer of the medium term notes (the "Notes") held by the Fund, triggered
the appointment of receivers (Deloitte & Touche LLP) (collectively, the
"Receiver"). On October 17, 2007, the Receiver determined that SIV
Portfolio was, or was about to become, unable to pay its debts as they came
due and that an insolvency event had occurred. As a result of this
determination, the Notes became immediately due and payable and are in
default as a result of non payment. These events, which are based on
published reports, have materially adversely affected the ability of SIV
Portfolio to make interest and principal payments due on the Notes. On
April 16, 2008, however, the Receiver made a partial payment of principal
and interest due on the Notes. On July 18, 2008, the Receiver announced
that they had accepted certain bids in connection with the sale of SIV
Portfolio's investment portfolio and intended to make a distribution to
senior creditors, including the Fund, on account of the net proceeds from
the sale of the entire investment portfolio on or about July 23, 2008. On
July 23, 2008, the Receiver announced that the sale had been concluded and
that a distribution to senior creditors was being made on this date. The
Receiver also announced on July 23, 2008, that they intended to make an
additional distribution to senior creditors soon after completion of the
restructuring, and on August 12, 2008, announced that such additional
distribution would be made on or about August 13, 2008, to holders of
record as of August 11, 2008, which includes the Fund. The additional
distribution was received by the Fund on August 13, 2008.
See Notes to Financial Statements
11
SunAmerica Municipal Money Market Fund
PORTFOLIO PROFILE -- June 30, 2008 -- (unaudited)
State Allocation*
Illinois............................................................... 12.7%
North Carolina......................................................... 11.0
Washington............................................................. 8.6
New York............................................................... 7.2
Kentucky............................................................... 6.5
Michigan............................................................... 5.8
Virginia............................................................... 5.1
Ohio................................................................... 5.0
Texas.................................................................. 4.7
Colorado............................................................... 4.7
Nebraska............................................................... 3.3
Idaho.................................................................. 3.0
South Dakota........................................................... 2.9
Utah................................................................... 2.6
Pennsylvania........................................................... 2.4
Wisconsin.............................................................. 2.4
Alabama................................................................ 2.2
Indiana................................................................ 1.6
Arizona................................................................ 1.5
North Dakota........................................................... 1.5
Nevada................................................................. 1.2
Oregon................................................................. 1.2
Missouri............................................................... 1.1
Minnesota.............................................................. 0.7
Florida................................................................ 0.6
Tennessee.............................................................. 0.6
Georgia................................................................ 0.5
-----
100.6%
=====
Weighted average days to maturity...................................... 8.4
Credit Quality Allocation @#
A-1.................................................................... 79.2%
SP-1................................................................... 1.4
Not Rated+............................................................. 19.4
-----
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, 2008 -- (unaudited)
Principal Market Value
Security Description Amount (Note 2)
SHORT-TERM INVESTMENT SECURITIES -- 100.3%
Alabama -- 2.2%
Stevenson Alabama Industrial Development Board
Environmental Improvement (LOC -- JP Morgan Chase
Bank) 1.75% due 07/02/08+........................... $3,000,000 $3,000,000
----------
Arizona -- 1.5%
Maricopa County, Arizona Industrial Development
Authority Multi Family Housing Series A (LOC --
Wells Fargo Bank NA) 1.62% due 07/03/08+............ 1,430,000 1,430,000
Maricopa County, Arizona Industrial Development
Authority (LOC -- Harris Trust & Savings Bank)
1.62% due 07/03/08+................................. 715,000 715,000
----------
2,145,000
----------
Colorado -- 4.7%
Colorado Springs, Colorado Utilities Series A 1.30%
due 07/03/08+....................................... 4,625,000 4,625,000
Colorado Springs, Colorado National Strength &
Conditioning Association (LOC -- Wells Fargo Bank
NA) 1.65% due 07/03/08+............................. 1,325,000 1,325,000
Durango, Colorado Community Health & Human
Services (LOC -- Wells Fargo Bank NA) 1.65% due
07/03/08+........................................... 615,000 615,000
----------
6,565,000
----------
Florida -- 0.6%
Charlotte County, Florida Utility Series B 1.55% due
07/03/08+........................................... 475,000 475,000
Collier County Health Facilities Authority (LOC --
Wachovia Bank NA) 1.50% due 07/02/08+............... 350,000 350,000
----------
825,000
----------
Georgia -- 0.5%
Valdosta & Lowndes County, Georgia Hospital
Authority 1.55% due 07/03/08+....................... 700,000 700,000
----------
Idaho -- 3.0%
Idaho Health Facilities Authority 2.66% due 07/01/08+. 395,000 395,000
Idaho Housing & Finance Association Series A 1.72%
due 07/02/08+....................................... 1,450,000 1,450,000
Idaho Housing & Finance Association Series F 1.72%
due 07/02/08+....................................... 2,295,000 2,295,000
----------
4,140,000
----------
Principal Market Value
Security Description Amount (Note 2)
- ------------------------------------------------------------------------------
Illinois -- 12.7%
Chicago, Illinois Board of Education Series C 1.53%
due 07/03/08+....................................... $ 200,000 $ 200,000
Chicago, Illinois O'Hare International Airport Series
B (LOC -- Societe Generale) 1.65% due 07/02/08+..... 790,000 790,000
Chicago, Illinois O'Hare International Airport Series
B (LOC -- Societe Generale) 1.15% due 07/02/08+..... 4,100,000 4,100,000
Chicago, Illinois Waterworks Revenue (LOC -- Bank One
NA) 1.45% due 07/02/08+............................. 500,000 500,000
Cook County, Illinois Capital Improvements Series
E 1.57% due 07/03/08+............................... 2,000,000 2,000,000
Illinois Development Finance Authority Series A (LOC
-- U.S. Bank NA) 1.70% due 07/02/08+................ 2,340,000 2,340,000
Illinois Development Finance Authority Series E 1.45%
due 07/02/08+....................................... 1,695,000 1,695,000
Jackson-Union Counties, Illinois Regional Port
District (LOC -- Wachovia Bank NA) 1.45% due
07/02/08+........................................... 3,400,000 3,400,000
State of Illinois General Obligation Series B 1.60%
due 07/02/08+....................................... 2,625,000 2,625,000
-----------
17,650,000
-----------
Indiana -- 1.6%
Marion, Indiana Economic Development (LOC -- Bank of
America NA) 1.55% due 07/02/08+..................... 2,205,000 2,205,000
-----------
Kentucky -- 6.5%
Breckinridge County, Kentucky Lease Program (LOC --
U.S. Bank NA) 1.45% due 07/02/08.................... 1,315,000 1,315,000
Breckinridge County, Kentucky Lease Program Series
A (LOC -- U.S. Bank NA) 1.45% due 07/02/08.......... 2,710,000 2,710,000
Kentucky Housing Corporation Series F 1.75% due
07/02/08+........................................... 2,490,000 2,490,000
Kentucky Housing Corporation Series I 1.75% due
07/02/08+........................................... 995,000 995,000
13
SunAmerica Municipal Money Market Fund
PORTFOLIO OF INVESTMENTS -- June 30, 2008 -- (unaudited) (continued)
Principal Market Value
Security Description Amount (Note 2)
SHORT-TERM INVESTMENT SECURITIES (continued)
Kentucky (continued)
Kentucky Housing Corporation Series L 1.75% due
07/02/08+........................................... $1,500,000 $1,500,000
----------
9,010,000
----------
Michigan -- 5.8%
Holt, Michigan Public Schools 1.80% due 07/03/08+..... 3,995,000 3,995,000
Michigan State Hospital Finance Authority Series
B (LOC -- Landesbank Hessen) 1.54% due 07/02/08+.... 2,095,000 2,095,000
Michigan State Housing Development Authority Series
C 1.60% due 07/02/08+............................... 2,000,000 2,000,000
----------
8,090,000
----------
Minnesota -- 0.7%
Minnesota State Housing Finance Agency Series K 3.78%
due 08/11/08........................................ 1,000,000 1,001,422
----------
Missouri -- 1.1%
Kansas City Industrial Development Authority (LOC --
Bank of America NA) 1.54% due 07/02/08+............. 1,550,000 1,550,000
----------
Nebraska -- 3.3%
Nebraska Investment Finance Authority Series D 1.72%
due 07/02/08+....................................... 4,555,000 4,555,000
----------
Nevada -- 1.2%
Clark County, Nevada School District Series B 2.44%
due 07/01/08+....................................... 1,720,000 1,720,000
----------
New York -- 7.2%
Metropolitan Transportation Authority Series G (LOC
-- BNP Paribas) 2.38% due 07/01/08+................. 1,360,000 1,360,000
New York City Municipal Water Finance
Authority Series F-2 2.40% due 07/01/08+............ 510,000 510,000
New York City Transitional Finance Authority Series
3-B 1.45% due 07/01/08+............................. 425,000 425,000
New York City Transitional Finance Authority Series
1-E 1.15% due 07/02/08+............................. 285,000 285,000
New York City Transitional Finance Authority Series
2-E 1.15% due 07/02/08+............................. 545,000 545,000
Principal Market Value
Security Description Amount (Note 2)
- ------------------------------------------------------------------------------
New York (continued)
New York City Transitional Finance Authority Series
3-D 1.15% due 07/02/08+............................. $ 750,000 $ 750,000
New York City Transitional Finance Authority Series
C-4 2.40% due 07/01/08+............................. 925,000 925,000
New York City, New York Series B-2 (LOC -- Morgan
Guaranty Trust) 2.38% due 07/01/08+................. 4,800,000 4,800,000
New York City, New York Series H-6.................... 400,000 400,000
-----------
10,000,000
-----------
North Carolina -- 11.0%
Charlotte, North Carolina Certificates of
Participation Series F 1.55% due 07/03/08+.......... 1,240,000 1,240,000
Charlotte, North Carolina Certificates of
Participation Series B 1.55% due 07/03/08+.......... 2,400,000 2,400,000
Durham, North Carolina Public Improvement 1.57% due
07/03/08+........................................... 300,000 300,004
Fayetteville, North Carolina Public Works
Commission 1.52% due 07/02/08+...................... 2,245,000 2,245,000
Guilford County, North Carolina Series B 1.55% due
07/03/08+........................................... 1,030,000 1,030,000
Mecklenburg County, North Carolina Certificates of
Participation 1.55% due 07/03/08+................... 1,480,000 1,480,000
Raleigh, North Carolina Downtown Improvement
Project 1.54% due 07/02/08+......................... 1,670,000 1,670,000
State of North Carolina Public Improvement Series
D 1.50% due 07/02/08+............................... 1,825,000 1,825,000
Wake County, North Carolina General Obligation
Unlimited Series A 1.52% due 07/03/08+.............. 1,400,000 1,400,000
Wilmington, North Carolina General Obligation
Unlimited 1.60% due 07/02/08+....................... 1,200,000 1,200,000
Winston Salem, North Carolina Water and Sewer
Systems Series C 1.55% due 07/02/08+................ 580,000 580,000
-----------
15,370,004
-----------
North Dakota -- 1.5%
North Dakota State Housing Finance Agency Series
A 1.67% due 07/02/08+............................... 2,025,000 2,025,000
-----------
14
SunAmerica Municipal Money Market Fund
PORTFOLIO OF INVESTMENTS -- June 30, 2008 -- (unaudited) (continued)
Principal Market Value
Security Description Amount (Note 2)
SHORT-TERM INVESTMENT SECURITIES (continued)
Ohio -- 5.0%
Cleveland, Ohio Airport System Series D (LOC --
West LB AG) 1.66% due 07/02/08+.................. $2,565,000 $2,565,000
Ohio Housing Finance Agency Series B-1 1.60% due
07/02/08+........................................ 1,895,000 1,895,000
Ohio Housing Finance Agency Series B 1.66% due
07/02/08+........................................ 360,000 360,000
Ohio Housing Finance Agency (LOC -- Federal Home
Loan Bank) 1.65% due 07/03/08+................... 2,100,000 2,100,000
----------
6,920,000
----------
Oregon -- 1.2%
Port of Portland Special Obligation Revenue (LOC
-- Bank of America NA) 2.92% due 07/01/08+....... 1,670,000 1,670,000
----------
Pennsylvania -- 2.4%
Delaware Valley Regioinal
Financial Authority Series B (LOC -- Bayerische
Landesbank) 1.20% due 07/02/08+.................. 3,350,000 3,350,000
----------
South Dakota -- 2.9%
South Dakota Housing Development Authority Series
I 1.75% due 07/02/08+............................ 4,065,000 4,065,000
----------
Tennessee -- 0.6%
Jackson, Tennessee Energy Authority Wastewater
System 1.55% due 07/03/08+....................... 850,000 850,000
----------
Texas -- 4.7%
El Paso, Texas General Obligation Limited Series
1998 5.13% due 08/15/08.......................... 1,000,000 1,015,790
North Texas Tollway Authority 4.13% due 11/19/08... 1,050,000 1,050,000
San Antonio Education Facilities Corporation (LOC
-- JP Morgan Chase Bank) 1.55% due 07/02/08+..... 3,100,000 3,100,000
State of Texas Veterans Housing Fund Series
A-2 1.66% due 07/02/08+.......................... 1,400,000 1,400,000
----------
6,565,790
----------
Utah -- 2.6%
Utah Housing Corporation Single Family
Mortgage Series E 1.72% due 07/02/08+............ 695,000 695,000
Utah Housing Corporation Single Family
Mortgage Series C-1 1.72% due 07/02/08+.......... 1,000,000 1,000,000
Principal Market Value
Security Description Amount (Note 2)
-----------------------------------------------------------------------------
Utah (continued)
Utah Housing Corporation Single Family
Mortgage Series F-1 1.72% due 07/02/08+.......... $2,000,000 $ 2,000,000
------------
3,695,000
------------
Virginia -- 5.1%
Virginia Beach, Virginia Department of
Finance 5.00% due 10/01/08....................... 7,000,000 7,054,717
------------
Washington -- 8.6%
Port of Seattle, Washington Industrial Development
Corporation (LOC -- Citibank NA) 1.67% due
07/02/08+........................................ 1,500,000 1,500,000
Port Tacoma, Washington Revenue (LOC -- Banco
Bilbao Vizcaya) 3.05% due 07/01/08+.............. 1,170,000 1,170,000
Seattle, Washington Water System (LOC --
Bayerische Landesbank) 1.20% due 07/02/08+....... 2,100,000 2,100,000
Snohomish County, Washington Public Utility
District Series A 1.52% due 07/02/08+............ 2,000,000 2,000,000
Washington State Housing Finance Commission (LOC
-- Bank of America NA) 1.56% due 07/03/08+....... 5,150,000 5,150,000
------------
11,920,000
------------
Wisconsin -- 2.4%
Wisconsin Health & Education Facilities
Authority (LOC -- JP Morgan Chase Bank) 1.45%
due 07/03/08+.................................... 3,340,000 3,340,000
Wisconsin Housing & Economic Development
Authority Series C 1.85% due 07/02/08+........... 75,000 75,000
------------
3,415,000
------------
Registered Investment Companies -- 0.0%
SSgA Tax Free Money Market Fund.................... 63,959 63,959
------------
TOTAL SHORT-TERM INVESTMENT SECURITIES
(amortized cost $140,120,892)*..................... 100.6% 140,120,892
Liabilities in excess of other assets.............. (0.6) (858,401)
---------- ------------
NET ASSETS.......................................... 100.0% $139,262,491
========== ============
- --------
* At June 30, 2008, the cost of securities for federal income tax purpose
was the same for book purpose.
+ Variable rate Security -- the rate reflected is as of June 30, 2008;
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, 2008 -- (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 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:
16
SunAmerica Money Market Funds
NOTES TO FINANCIAL STATEMENTS -- June 30, 2008 -- (unaudited)
(continued)
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. In
accordance with rule 2a-7 under the Investment Company Act of 1940, as
amended (the "1940 Act"), the Corporation's Board of Directors ("Board") has
adopted procedures intended to stabilize the Funds' net asset value per
share at $1.00. These procedures include the determination, at such
intervals as the Board deems appropriate and reasonable in light of current
market conditions, of the extent, if any, to which the Funds' market-based
net asset value per share deviates from the Fund's amortized cost per share.
For purposes of these market-based valuations, securities for which market
quotations are not readily available are fair valued, as determined pursuant
to procedures adopted in good faith by the Board.
Repurchase Agreements: The Funds, along with other affiliated registered
investments companies, pursuant to exemptive relief granted by the
Securities and Exchange Commission (the "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, 2008, the following Funds held an undivided interest in a joint
repurchase agreement with UBS Securities, LLC:
Percentage Principal
Fund Interest Amount
---- ---------- -----------
Money Market Fund....................... 29.28% $80,509,000
As of that date, the repurchase agreement in that joint account and the
collateral therefore were as follows:
UBS Securities, LLC, dated June 30, 2008, bearing interest at a rate of
1.70% per annum, with a principal amount of $275,000,000, a repurchase price
of $275,012,986, and a maturity date of July 1, 2008. The repurchase
agreement is collateralized by the following:
Interest Maturity Principal Market
Type of Collateral Rate Date Amount Value
------------------ -------- -------- ------------ ------------
U.S. Treasury
Inflation Index
Bonds............. 2.38% 01/15/27 $ 50,000,000 $ 56,685,000
U.S. Treasury
Inflation Index
Bonds............. 1.75 01/15/28 72,378,500 71,562,861
U.S. Treasury
Inflation Index
Notes............. 0.63 04/15/13 150,000,000 152,250,000
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
17
SunAmerica Money Market Funds
NOTES TO FINANCIAL STATEMENTS -- June 30, 2008 -- (unaudited)
(continued)
the dividend-eligible shares, as appropriate) of each class of shares at the
beginning of the day (after adjusting for the current capital shares
activity of the respective class).
Expenses common to all Funds, not directly related to individual Funds, are
allocated among the Funds based upon their relative net asset value or other
appropriate methods. In all respects, expenses are charged to each Fund as
incurred on a specific identification basis. Interest earned on cash
balances held at the custodian are shown as custody credits in the Statement
of Operations.
Dividends from net investment income, if any, are normally declared daily
and paid monthly. Capital gain distributions, if any, are paid annually. The
Funds record dividends and distributions to their shareholders on the
ex-dividend date. The amount of dividends and distributions from net
investment income and net realized capital gains are determined in
accordance with federal income tax regulations, which may differ from U.S.
generally accepted accounting principles. These "book/tax" differences are
either considered temporary or permanent in nature. To the extent these
differences are permanent in nature, such amounts are reclassified within
the capital accounts at fiscal year end based on their federal tax-basis
treatment; temporary differences do not require reclassification. Net
investment income (loss), net realized gain (loss), and net assets are not
affected by these reclassifications.
The Funds intend to comply with the requirements of the Internal Revenue
Code applicable to regulated investment companies and distribute all of
their taxable income, including any net realized gain on investments, to its
shareholders. Therefore, no federal tax provisions are required. Each Fund
is considered a separate entity for tax purposes. The Fund files U.S.
federal and certain state income tax returns. With few exceptions, the Fund
is no longer subject to U.S. federal and state tax examinations by tax
authorities for tax years ending before 2004.
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 Financial Accounting Standards Board (FASB) issued
Statement on Financial Accounting Standards No. 157, "Fair Value
Measurements" ("FAS157"). 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. FAS157 is effective for financial statements issued for fiscal
years beginning after November 15, 2007 and interim periods within those
fiscal years. Various inputs are used in determining the value of the
Portfolios' investments. These inputs are summarized in the three broad
levels listed below:
Level 1--Quoted prices in active markets for identical securities
Level 2--Other significant observable inputs (including quoted prices for
similar securities, interest rates, prepayment speeds, credit risk, quoted
prices in inactive markets, etc.)
Level 3--Significant unobservable inputs (including the Funds' own
assumptions in determining the fair value of investments)
The inputs or methodology used for valuing securities are not necessarily an
indication of the risk associated with investing in those securities.
18
SunAmerica Money Market Funds
NOTES TO FINANCIAL STATEMENTS -- June 30, 2008 -- (unaudited)
(continued)
The following is a summary of the inputs used to value the Funds' net assets
as of June 30, 2008:
Money Market Fund Municipal Money Market Fund
--------------------------- ---------------------------
Other Other
Valuation Investments in Financial Investments in Financial
inputs Securities Instruments* Securities Instruments*
--------- -------------- ------------ -------------- ------------
Level 1..... $ -- $-- $ -- $--
Level 2..... $1,103,840,633 $-- $140,120,892 $--
Level 3..... $ -- $-- $ -- $--
-------------- --- ------------ ---
Total....... $1,103,840,633 $-- $140,120,892 $--
============== === ============ ===
-----
* Other financial instruments are derivative instruments not reflected in
the Portfolio of investments such as future, written option, swap and
forward contracts, which are valued at the unrealized
appreciation/depreciation on the instrument.
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. 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%
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 Funds' 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 Board, 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
19
SunAmerica Money Market Funds
NOTES TO FINANCIAL STATEMENTS -- June 30, 2008 -- (unaudited)
(continued)
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, 2008, AIG SunAmerica voluntarily waived fees
for the following classes of the Municipal Money Market Fund: Class B $17
and Class C $54.
For the period ended June 30, 2008, pursuant to the contractual expense
limitations in the above table, AIG SunAmerica waived fees and/or reimbursed
expenses as follows:
Fund
----
Money Market Class I.............................. $1,380
Municipal Money Market Class A.................... 623
Municipal Money Market Class B.................... 5,099
Municipal Money Market Class C.................... 7,840
The Corporation, on behalf of each Fund, has entered into a Distribution
Agreement with AIG SunAmerica Capital Services, Inc. ("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" and 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 Board 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, 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 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 six months ended June 30, 2008, 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 six months
ended June 30, 2008, the proceeds received from redemptions are as follows:
Contingent Deferred Sales
Charges
-----------------------
Fund Class A Class B Class C
---- ------- ------- -------
Money Market....................... $782 $50,032 $10,534
Municipal Money Market............. -- 4,038 287
The Funds have entered into a Service Agreement with AIG SunAmerica Fund
Services, Inc. ("SAFS"), an affiliate of the Adviser. 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 the annual rate of 0.22%
of average daily net assets, is approved annually by the Board. For the six
months ended June 30, 2008, the Funds incurred the following expenses which
are included in transfer agent fees and expenses payable line in the
20
SunAmerica Money Market Funds
NOTES TO FINANCIAL STATEMENTS -- June 30, 2008 -- (unaudited)
(continued)
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
Fund Expenses June 30, 2008
---- ---------- -------------
Money Market Fund Class A.......... $1,211,233 $190,866
Money Market Fund Class B.......... 22,805 5,825
Money Market Fund Class C.......... 35,945 6,969
Money Market Fund Class I.......... 19,025 3,605
Municipal Money Market Fund Class A 169,485 25,589
Municipal Money Market Fund Class B 237 94
Municipal Money Market Fund Class C 793 157
As result of losses on medium-term notes issued by Cheyne Finance LLC, that
are held by the Money Market Fund, AIG SunAmerica made capital contributions
to the Money Market Fund on June 19 and June 24, 2008, totaling $271,000.
Subsequent to June 30, 2008, additional capital contributions were made
totaling $3,398,000, relating to such notes.
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, 2007
--------------------------------------------------------------------------
Long-term Gains/ Unrealized Long-Term
Ordinary Capital Loss Appreciation Ordinary Capital
Fund Income Carryover (Depreciation) Income Gains Tax Exempt
- ---- -------- ---------------- -------------- ----------- --------- ----------
Money Market....................... $409,462 $-- $-- $61,351,107 $-- $ --
Municipal Money Market............. 33,589* (24,322) -- -- -- 3,087,724
- --------
* Tax exempt distributable earnings
For Federal income tax purposes, the Funds indicated below have capital loss
carryforwards, which expire in the year indicated, as of December 31, 2007,
which are available to offset future capital gains, if any:
Capital Loss Carryforward
-------------------------
Fund 2012 2013
---- ------ -------
Money Market................................ $ -- $ --
Municipal Money Market...................... 8,070 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, 2007, the Money Market Fund elected
to defer post October capital losses in the amount of $3,807.
21
SunAmerica Money Market Funds
NOTES TO FINANCIAL STATEMENTS -- June 30, 2008 -- (unaudited)
(continued)
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, 2008 and for the prior year were as
follows:
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
2008 December 31, 2008 December 31, 2008 December 31,
(unaudited) 2007 (unaudited) 2007 (unaudited) 2007
------------- --------------- ----------- ------------ ------------ ------------
Shares sold.......... $ 409,184,659(1) $ 843,066,044(2) $10,367,622 $ 13,577,268 $ 50,153,194 $ 35,861,962
Reinvested dividends. 12,586,115 58,499,405 139,302 655,545 196,658 563,246
Shares redeemed...... (575,573,343) (1,430,613,813) (8,385,876)(1) (19,714,079)(2) (31,136,287) (25,778,554)
------------- --------------- ----------- ------------ ------------ ------------
Net increase
(decrease).......... $(153,802,569) $ (529,048,364) $ 2,121,048 $ (5,481,266) $ 19,213,565 $ 10,646,654
============= =============== =========== ============ ============ ============
---------------------------
Class I
--------------------------
For the
six months For the
ended year
June 30, ended
2008 December 31,
(unaudited) 2007
------------ ------------
Shares sold.......... $ 9,645,475 $ 10,922,170
Reinvested dividends. 211,319 723,464
Shares redeemed...... (11,341,974) (11,160,285)
------------ ------------
Net increase
(decrease).......... $ (1,485,180) $ 485,349
============ ============
Municipal 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
2008 December 31, 2008 December 31, 2008 December 31,
(unaudited) 2007 (unaudited) 2007 (unaudited) 2007
------------- -------------- ----------- ------------ ----------- ------------
Shares sold.......... $ 76,747,662 $ 260,584,595(3) $ 46,559 $ 15,146 $ 639,641 $ 1,136,716
Reinvested dividends. 1,137,589 3,066,154 696 6,688 2,116 8,590
Shares redeemed...... (93,512,622) (210,828,100) (31,706) (368,544)(3) (466,781) (662,545)
------------- -------------- ---------- ---------- ----------- ------------
Net increase
(decrease).......... $ (15,627,371) $ 52,822,649 $ 15,549 $ (346,710) $ 174,976 $ 482,761
============= ============== ========== ========== =========== ============
- --------
(1)Includes automatic conversion of Class B shares in the amount of $788,573 to
Class A shares
(2)Includes automatic conversion of Class B shares in the amount of $4,233,353
to Class A shares
(3)Includes automatic conversion of Class B shares in the amount of $69,768 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 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%.
22
SunAmerica Money Market Funds
NOTES TO FINANCIAL STATEMENTS -- June 30, 2008 -- (unaudited)
(continued)
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, 2008
---- -----------------------------------------------
Money Market Fund............. $265,742 $17,052 $6,883
Municipal Money Market Fund... 10,388 1,998 159
Note 7. Interfund Lending Agreement
Pursuant to exemptive relief granted by the 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 six months ended June 30,
2008, none of the Funds participated in the program.
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.
Thank you for your continued support,
AIG SunAmerica Mutual Funds
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
Jeffrey S. Burum PORTFOLIO SECURITIES period ended June 30 is
Dr. Judith L. Craven A description of the available, once filed
William F. Devin policies and proce-dures with the U.S. Securities
Samuel M. Eisenstat that the Fund uses to and Exchange Commission,
Stephen J. Gutman determine how to vote without charge, upon
Peter A. Harbeck 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
John T. Genoy, President Fund's State-ment of http://www.sec.gov.
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 A. Skrehot, 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.
John E. McLean, 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
Diedre Shepherd, "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 SunAmerica Money Market
Funds voted proxies
re-lating to securities
held in SunAmerica Money
Market Funds during the
25
Distributed by:
AIG SunAmerica Capital Services, Inc.
Investors should carefully consider a Fund's investment objectives, risks,
charges and expenses before investing. The prospectus, containing this and
other important information, can be obtained from your financial adviser, the
AIG SunAmerica Sales Desk at 800-858-8850, ext. 6003, or at
www.sunamericafunds.com. Read the prospectus carefully before investing.
www.sunamericafunds.com
MMSAN - 6/08
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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. 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 registrant's
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/ John T. Genoy
-------------------
John T. Genoy
President
Date: September 5, 2008
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/ John T. Genoy
-------------------
John T. Genoy
President
Date: September 5, 2008
By: /s/ Donna M. Handel
-------------------
Donna M. Handel
Treasurer
Date: September 5, 2008