================================================================================
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.
----------------------------------------------------
(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
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, 2009
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Item 1. Reports to Stockholders
[PHOTO]
SEMI-ANNUAL REPORT 2009
SUNAMERICA
Money Market Funds
[LOGO]
June 30, 2009 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............................... 19
June 30, 2009 SEMI-ANNUAL REPORT
Shareholders' Letter
Dear Shareholders:
We are pleased to present the semi-annual shareholder report for the SunAmerica
Money Market Fund and the SunAmerica Municipal Money Market Fund for the
six-month period ended June 30, 2009.
The past six months certainly have been interesting in both the financial and
economic markets.
The first three months exhibited continuing deterioration in the U.S. and
global economy. Gross domestic product (GDP) contracted sharply, unemployment
rose, consumer confidence plummeted, and the equity markets declined. The
policy response to this historic economic situation was strong and
multifaceted. For example, the U.S. government launched a variety of programs
designed to support financial institutions, restart consumer credit markets,
and remove toxic assets from banks' balance sheets. With short-term interest
rates effectively at zero, the Federal Reserve embarked on a program of buying
government bonds to create new money in the economy.
The second three months of the semi-annual period brought a belief that the
economy had bottomed and was on its way to a sustainable recovery. There was
constant talk of green shoots, which, while not necessarily demonstrating
economic growth, were signs that the economy was stabilizing. This renewed
economic optimism brought positive returns in the equity markets and increased
investor's risk appetite.
The second quarter was also marked by the government continuing to actively
participate in the economy. The Federal government introduced a wide ranging
proposal to reform regulation of the financial markets. The Federal Reserve
continued to maintain its very accommodative monetary policy, despite
increasing concerns about inflation, and reiterated its commitment to employ
all available tools to promote economic recovery and promote price stability.
The Federal Reserve met twice during the second quarter and left rates
unchanged.
This low interest rate environment was challenging for yields. During the
period, the Money Market Fund sought to add value through active management of
the Fund's duration, specifically by purchasing longer-dated fixed rate
instruments as well as floating rate notes. The Municipal Money Market Fund
maintained a portfolio diversified by sector and region with the majority of
the portfolio being invested in variable rate obligations during the period.
On March 31, 2009, the U.S. Treasury announced an extension of the Temporary
Guarantee Program for Money Market Funds (the "Program") until September 18,
2009. The SunAmerica Money Market Fund and the SunAmerica Municipal Money
Market Fund are participating in the extension of the Program./1/
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
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/The Program's guarantee only applies to shareholders of the Funds and the
number of shares owned by those shareholders as of the close of business on
September 19, 2008. Please see the Funds' prospectus for additional details on
the Program, including certain conditions and limitations. More information
about the Program is also available
at http://www.treas.gov/press/releases/tg76.htm and http://www.ustreas.gov.
1
SunAmerica Money Market Funds
EXPENSE EXAMPLE -- June 30, 2009 -- (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 contingent deferred
sales charges, small account fees and administrative fees 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, 2009 and held until June 30,
2009.
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, 2009" 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, 2009" 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, 2009" 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, 2009" 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, 2009"
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, 2009" 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, 2009" 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
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, 2009 -- (unaudited)
Actual Hypothetical
---------------------------------------------------- -----------------------------------------------------
Ending Account
Ending Account Expenses Paid Value Using Expenses Paid
Beginning Value Using During the Beginning a Hypothetical 5% During the
Account Value Actual Returns Six Months Ended Account Value Assumed Return Six Months Ended
at January 1, 2009 at June 30, 2009 June 30, 2009* at January 1, 2009 at June 30, 2009 June 30, 2009*
------------------ ---------------- ---------------- ------------------ ----------------- ----------------
Money Market
Fund
Class A#.... $1,000.00 $1,001.20 $4.71 $1,000.00 $1,020.08 $4.76
Class I#.... $1,000.00 $1,001.95 $3.97 $1,000.00 $1,020.83 $4.01
Municipal
Money Market
Fund
Class A#.... $1,000.00 $1,000.16 $3.22 $1,000.00 $1,021.57 $3.26
Expense
Ratio as of
June 30, 2009*
--------------
Money Market
Fund
Class A#.... 0.95%
Class I#.... 0.80%
Municipal
Money Market
Fund
Class A#.... 0.65%
- --------
* Expenses are equal to the Fund's annualized expense ratio multiplied by the
average account value over the period, multiplied by 181 days divided by 365
days. These ratios do not reflect transaction costs, including 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, 2009" and the "Expense Ratios" would have been higher.
3
SunAmerica Money Market Funds
STATEMENT OF ASSETS AND LIABILITIES -- June 30, 2009 -- (unaudited)
Money Market Municipal Money
Fund Market Fund
------------ ---------------
ASSETS:
Short-term investment securities, at value* (unaffiliated)......... $832,958,382 $156,852,650
Repurchase agreements (cost approximates market value)............. 76,900,000 --
------------ ------------
Total Investments................................................ 909,858,382 156,852,650
------------ ------------
Cash............................................................... 408 --
Receivable for:
Fund shares sold................................................. 84,707 --
Sale of investments.............................................. -- 1,000,007
Dividends and interest........................................... 899,562 230,837
Prepaid expenses and other assets.................................. 153,777 17,008
Due from investment adviser for expense reimbursements/fee waivers. 72,773 31,088
Due from distributor for fee waivers............................... 103,827 18,374
------------ ------------
Total assets..................................................... 911,173,436 158,149,964
------------ ------------
LIABILITIES:
Payable for:
Fund shares redeemed............................................. 823,030 --
Investment advisory and management fees.......................... 365,582 45,877
Distribution and service maintenance fees........................ 113,616 19,664
Transfer agent fees and expenses................................. 230,431 31,769
Dividends payable.................................................. 14,830 2,005
Due to custodian................................................... -- 195,695
Directors' fees and expenses....................................... 47,647 30,803
Other accrued expenses............................................. 223,510 61,601
------------ ------------
Total liabilities................................................ 1,818,646 387,414
------------ ------------
Net Assets...................................................... $909,354,790 $157,762,550
============ ============
NET ASSETS REPRESENTED BY:
Common stock, $.001 par value (10 billion shares authorized)....... $ 913,242 $ 157,762
Paid-in capital.................................................... 912,233,602 157,604,200
------------ ------------
913,146,844 157,761,962
Accumulated undistributed net investment income (loss)............. 141,661 25,276
Accumulated realized gain (loss) on investment..................... (3,933,715) (24,688)
------------ ------------
Net assets...................................................... $909,354,790 $157,762,550
============ ============
Class A:
Net assets......................................................... $893,199,186 $157,762,550
Shares outstanding................................................. 897,026,206 $157,761,788
Net asset value and redemption price per share
(excluding any applicable contingent deferred sales charge)....... $ 1.00 $ 1.00
============ ============
Class I:
Net assets......................................................... $ 16,155,604 $ --
Shares outstanding................................................. 16,215,627 --
Net asset value and redemption price per share..................... $ 1.00 $ --
============ ============
*Amortized cost of short-term investment securities (unaffiliated). $832,958,382 $156,852,650
============ ============
See Notes to Financial Statements
4
SunAmerica Money Market Funds
STATEMENT OF OPERATIONS -- For the six months ended June 30, 2009 --
(unaudited)
Money Market Municipal Money
Fund Market Fund
------------ ---------------
INVESTMENT INCOME:
Interest (unaffiliated)................................................................ $6,109,400 $ 553,984
Dividends (unaffiliated)............................................................... 6,744 97
---------- ----------
Total investment income............................................................. 6,116,144 554,081
---------- ----------
EXPENSES:
Investment advisory and management fees................................................ 2,428,935 283,765
Distribution and service maintenance fees
Class A.............................................................................. 710,846 121,614
Class B*............................................................................. 79,579 --
Class C*............................................................................. 143,369 --
Transfer agent fees and expenses
Class A.............................................................................. 1,110,893 180,002
Class B*............................................................................. 25,708 --
Class C*............................................................................. 45,877 --
Class I.............................................................................. 18,767 --
Registration fees
Class A.............................................................................. 31,210 5,386
Class B*............................................................................. 7,478 --
Class C*............................................................................. 2,856 --
Class I.............................................................................. 13,021 --
Custodian and accounting fees.......................................................... 109,817 3,609
Reports to shareholders................................................................ 104,032 11,360
Audit and tax fees..................................................................... 15,526 12,610
Legal fees............................................................................. 84,171 11,554
Directors' fees and expenses........................................................... 68,158 24,697
Other expenses......................................................................... 345,669 34,716
---------- ----------
Total expenses before fee waivers, expense reimbursements and custody credits....... 5,345,912 689,313
Fees waived and expenses reimbursed by investment adviser and distributor (Note 3).. (456,878) (161,764)
Custody credits earned on cash balances............................................. (36) --
---------- ----------
Net expenses........................................................................ 4,888,998 527,549
---------- ----------
Net investment income (loss)........................................................... 1,227,146 26,532
---------- ----------
Net realized gain (loss) on investments................................................ 988,140 (178)
---------- ----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS........................ $2,215,286 $ 26,354
========== ==========
- --------
* See Note 1
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
2009 December 31,
(unaudited) 2008
-------------- --------------
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss)........................................................... $ 1,227,146 $ 20,751,072
Net realized gain (loss) on investments................................................ 988,140 (4,918,048)
-------------- --------------
Net increase (decrease) in net assets resulting from operations.......................... $ 2,215,286 $ 15,833,024
-------------- --------------
Distributions to shareholders from:
Net investment income (Class A)........................................................ (1,187,940) (19,840,997)
Net investment income (Class B)+....................................................... (2,328) (204,882)
Net investment income (Class C)+....................................................... (4,524) (367,143)
Net investment income (Class I)........................................................ (31,547) (344,204)
-------------- --------------
Total distributions to shareholders...................................................... (1,226,339) (20,757,226)
-------------- --------------
Net increase (decrease) in net assets resulting from capital share transactions (Note 5). (168,167,010) (161,246,024)
-------------- --------------
Total increase (decrease) in net assets.................................................. (167,178,063) (166,170,226)
============== ==============
NET ASSETS:
Beginning of period...................................................................... 1,076,532,853 1,242,703,079
-------------- --------------
End of period*........................................................................... $ 909,354,790 $1,076,532,853
============== ==============
*Includes accumulated undistributed net investment income (loss)......................... $ 141,661 $ 140,854
============== ==============
Municipal Money
Market Fund
------------------------------
For the
six months
ended For the year
June 30, ended
2009 December 31,
(unaudited) 2008
-------------- --------------
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss)........................................................... $ 26,532 $ 2,444,850
Net realized gain (loss) on investments................................................ (178) (188)
-------------- --------------
Net increase (decrease) in net assets resulting from operations.......................... $ 26,354 $ 2,444,662
-------------- --------------
Distributions to shareholders from:
Net investment income (Class A)........................................................ (26,346) (2,440,520)
Net investment income (Class B)+....................................................... -- (808)
Net investment income (Class C)+....................................................... -- (3,334)
Net investment income (Class I)........................................................ -- --
-------------- --------------
Total distributions to shareholders...................................................... (26,346) (2,444,662)
-------------- --------------
Net increase (decrease) in net assets resulting from capital share transactions (Note 5). (30,320,153) 33,371,054
-------------- --------------
Total increase (decrease) in net assets.................................................. (30,320,145) 33,371,054
============== ==============
NET ASSETS:
Beginning of period...................................................................... 188,082,695 154,711,641
-------------- --------------
End of period*........................................................................... $ 157,762,550 $ 188,082,695
============== ==============
*Includes accumulated undistributed net investment income (loss)......................... $ 25,276 $ 25,090
============== ==============
- --------
+ See Note 1
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
-------
12/31/04 $1.00 $0.01 $(0.01) $1.00 0.50% $1,630,353 0.90% 0.49%
12/31/05 1.00 0.02 (0.02) 1.00 2.38 1,587,641 0.89 2.35
12/31/06 1.00 0.04 (0.04) 1.00 4.22 1,711,783 0.89 4.14
12/31/07 1.00 0.04 (0.04) 1.00 4.32 1,182,789 0.90 4.27
12/31/08 1.00 0.02 (0.02) 1.00 1.84 995,968 0.94 1.86
01/01/09-06/30/2009(4) 1.00 0.01 (0.01) 1.00 0.12 893,199 0.95(3)(5) 0.25(3)(5)
Class I
-------
12/31/04 $1.00 $0.01 $(0.01) $1.00 0.58% $ 11,895 0.80%(3) 0.59%(3)
12/31/05 1.00 0.03 (0.03) 1.00 2.49 13,708 0.80(3) 2.49(3)
12/31/06 1.00 0.04 (0.04) 1.00 4.31 18,057 0.80(3) 4.26(3)
12/31/07 1.00 0.04 (0.04) 1.00 4.43 18,543 0.80(3) 4.32(3)
12/31/08 1.00 0.02 (0.02) 1.00 1.98 16,998 0.80(3) 1.97(3)
01/01/09-06/30/2009(4) 1.00 0.02 (0.02) 1.00 0.19 16,156 0.80(3)(5) 0.40(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):
12/31/04 12/31/05 12/31/06 12/31/07 12/31/08 06/30/09(4)(5)
-------- -------- -------- -------- -------- --------------
Class A. -- % -- % -- % -- % -- % 0.06%
Class I. 0.09 0.05 0.05 0.04 0.18 0.23
(4)Unaudited
(5)Annualized
+ 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 net assets
- ---------------------- --------- ---------- ---------- ------ --------- -------- ---------- ------------
Class A
-------
12/31/04 $1.00 $0.00 $(0.00) $1.00 0.36% $ 97,374 0.87% 0.35%
12/31/05 1.00 0.02 (0.02) 1.00 1.62 84,817 0.81(3) 1.58(3)
12/31/06 1.00 0.03 (0.03) 1.00 2.69 101,083 0.78 2.68
12/31/07 1.00 0.03 (0.03) 1.00 2.84 153,906 0.83(3) 2.80(3)
12/31/08 1.00 0.02 (0.02) 1.00 1.53 188,083 0.83(3) 1.45(3)
01/01/09-06/30/2009(4) 1.00 0.00 (0.00) 1.00 0.02 157,763 0.65(3)(5) 0.03(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):
12/31/04 12/31/05 12/31/06 12/31/07 12/31/08 06/30/09(4)(5)
-------- -------- -------- -------- -------- --------------
Class A. -- % 0.04% -- % 0.01% 0.01% 0.20%
(4) Unaudited
(5) Annualized
See Notes to Financial Statements
8
SunAmerica Money Market Fund
PORTFOLIO PROFILE -- June 30, 2009 -- (unaudited)
Industry Allocation*
U.S. Government Agencies.......... 63.4%
Repurchase Agreement.............. 8.5
Time Deposit...................... 5.9
Foreign Banks..................... 5.9
Finance........................... 3.8
Super-Regional Banks-US........... 3.0
Commercial Banks.................. 2.7
Money Center Banks................ 2.0
Commercial Banks-Canadian......... 1.5
U.S. Government Securities........ 1.5
Diversified Financial Services.... 1.5
Treasury/Agency................... 0.4
-----
100.1%
=====
Weighted average days to maturity. 56.6
Credit Quality Allocation@#
A-1......................... 99.6%
Not Rated+.................. 0.4
-----
100.0%
=====
- --------
* Calculated as a percentage of net assets
@ Source: Standard and Poor's
# 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.
9
SunAmerica Money Market Fund
PORTFOLIO OF INVESTMENTS -- June 30, 2009 -- (unaudited)
Principal Market Value
Security Description Amount (Note 2)
SHORT-TERM INVESTMENT SECURITIES -- 91.6%
CERTIFICATES OF DEPOSIT -- 7.4%
Barclays Bank PLC
1.47% due 08/04/09+....................... $13,400,000 $13,400,000
Calyon
2.16% due 07/20/09+....................... 13,500,000 13,502,905
Deutsche Bank AG
0.67% due 07/01/09+....................... 13,000,000 13,002,963
Rabobank Nederland N.V.
1.01% due 09/04/09+....................... 13,600,000 13,600,244
Royal Bank of Canada
1.19% due 08/07/09+....................... 13,500,000 13,498,308
-----------
Total Certificates of Deposit
(amortized cost $67,004,420)............. 67,004,420
-----------
COMMERCIAL PAPER -- 2.7%
Deutsche Bank Financial LLC
0.62% due 07/22/09........................ 13,500,000 13,495,117
State Street Corp.
0.19% due 07/10/09........................ 11,000,000 10,999,478
-----------
Total Commercial Paper
(amortized cost $24,494,595)............. 24,494,595
-----------
CORPORATE BONDS & NOTES -- 0.5%
J.P. Morgan Chase & Co.
FDIC Guar. Notes
0.74% due 08/24/09+
(amortized cost $5,000,000)............... 5,000,000 5,000,000
-----------
MEDIUM TERM NOTES -- 9.8%
Bank of America NA
FDIC Guar. Notes
0.66% due 09/14/09+....................... 27,000,000 27,000,000
Bear Stearns Co., Inc.
0.90% due 09/09/09+....................... 11,000,000 10,993,584
Citigroup Funding, Inc.
FDIC Guar. Notes
1.14% due 07/30/09+....................... 13,300,000 13,320,348
General Electric Capital Corp.
0.77% due 08/31/09+....................... 13,500,000 13,459,217
General Electric Capital Corp.
FDIC Guar. Notes
1.26% due 09/09/09+....................... 10,400,000 10,531,397
Wachovia Bank NA
0.89% due 08/21/09+....................... 13,500,000 13,488,543
-----------
Total Medium Term Notes
(amortized cost $88,793,089)............. 88,793,089
-----------
REGISTERED INVESTMENT COMPANIES -- 0.4%
State Street Institutional U.S. Government
Money Market Fund
(amortized cost $3,716,841)............... 3,716,841 3,716,841
-----------
TIME DEPOSITS -- 5.9%
Euro Time Deposit with State Street
Bank & Trust Co.
0.01% due 07/01/09+
(amortized cost $54,000,000).............. 54,000,000 54,000,000
-----------
Principal Market Value
Security Description Amount (Note 2)
-----------------------------------------------------------------------
U.S. GOVERNMENT AGENCIES -- 63.4%
Agency for International Development Panama
0.71% due 07/01/09+........................ $ 1,650,786 $ 1,654,081
Federal Farm Credit Bank
0.31% due 07/27/09+....................... 13,000,000 12,997,974
0.71% due 07/01/09+....................... 13,400,000 13,400,000
Federal Home Loan Bank
0.30% due 07/21/09+....................... 26,000,000 26,000,000
0.45% due 09/16/09........................ 13,500,000 13,487,006
0.58% due 08/26/09........................ 13,500,000 13,487,820
0.59% due 09/02/09........................ 20,000,000 19,979,350
0.80% due 11/20/09........................ 27,000,000 26,914,800
0.90% due 04/07/10........................ 12,500,000 12,495,164
1.00% due 02/12/10........................ 28,000,000 27,824,222
1.02% due 02/23/10........................ 5,000,000 4,966,425
1.02% due 02/26/10........................ 14,000,000 13,992,248
1.04% due 07/13/10+....................... 55,000,000 54,992,534
1.05% due 02/23/10........................ 13,500,000 13,491,093
1.05% due 03/05/10........................ 13,600,000 13,594,312
1.11% due 07/08/09+....................... 28,000,000 28,001,754
1.50% due 07/17/09........................ 11,000,000 10,992,667
Federal Home Loan Mtg. Corp.
0.25% due 10/20/09........................ 26,000,000 25,979,958
0.62% due 09/10/09+....................... 28,000,000 27,995,664
0.68% due 09/30/09........................ 40,000,000 39,931,244
0.88% due 08/04/09+....................... 19,000,000 19,000,000
1.04% due 07/12/09+....................... 12,000,000 11,999,786
1.21% due 07/07/09+....................... 13,500,000 13,497,614
Federal National Mtg. Assoc.
0.26% due 08/10/09........................ 12,500,000 12,496,389
0.39% due 07/14/09........................ 21,000,000 20,997,043
0.88% due 08/12/09+....................... 13,500,000 13,521,753
0.97% due 08/05/09+....................... 13,500,000 13,498,247
1.03% due 07/13/09+....................... 56,000,000 55,997,105
1.55% due 09/02/09........................ 13,400,000 13,363,653
------------
Total U.S. Government Agencies
(amortized cost $576,549,906)............. 576,549,906
------------
U.S. GOVERNMENT TREASURIES -- 1.5%
United States Treasury Bills
1.26% due 07/02/09
(amortized cost $13,399,531)............... 13,400,000 13,399,531
------------
Total Short-Term Investment Securities -- 91.6%
(amortized cost $832,958,382)............. 832,958,382
------------
REPURCHASE AGREEMENT -- 8.5%
UBS Securities LLC
Joint Repurchase Agreement(1)
(amortized cost $76,900,000)............... 76,900,000 76,900,000
------------
TOTAL INVESTMENTS --
(amortized cost $909,858,382)(2).......... 100.1% 909,858,382
Liabilities in excess of other assets....... (0.1) (503,592)
----------- ------------
NET ASSETS.................................. 100.0% $909,354,790
=========== ============
- --------
+ Variable Rate Security -- the rate reflected is as of June 30, 2009,
maturity date reflects next reset date.
(1) See Note 2 for details of Joint Repurchase Agreements.
(2) See Note 4 for cost of investments on a tax basis.
FDIC -- Federal Deposit Insurance Corp.
10
SunAmerica Money Market Fund
PORTFOLIO OF INVESTMENTS -- June 30, 2009 -- (unaudited) (continued)
The following is a summary of the inputs used to value the Fund's net assets as
of June 30, 2009 (see Note 2):
Level 1--Unadjusted Level 2--Other Level 3--Significant Fair Value at
Quoted Prices Observable Inputs Unobservable Inputs June 30, 2009
- ------------------- ----------------- -------------------- -------------
Short-Term Investment Securities:
Certificates of Deposit......... $-- $ 67,004,420 $-- $ 67,004,420
Commercial Paper................ -- 24,494,595 -- 24,494,595
Corporate Bonds & Notes......... -- 5,000,000 -- 5,000,000
Medium Term Notes............... -- 88,793,089 -- 88,793,089
Registered Investment Companies. -- 3,716,841 -- 3,716,841
Time Deposits................... -- 54,000,000 -- 54,000,000
U.S. Government Agencies........ -- 576,549,906 -- 576,549,906
U.S. Government Treasuries...... -- 13,399,531 -- 13,399,531
Repurchase Agreement............ -- 76,900,000 -- 76,900,000
--- ------------ --- ------------
Total............................. $-- $909,858,382 $-- $909,858,382
=== ============ === ============
See Notes to Financial Statements
11
SunAmerica Municipal Money Market Fund
PORTFOLIO PROFILE -- June 30, 2009 -- (unaudited)
State Allocation*
California........................ 17.2%
New York.......................... 7.6
Colorado.......................... 6.5
North Carolina.................... 6.3
Illinois.......................... 5.2
Massachusetts..................... 5.1
Texas............................. 5.0
Kentucky.......................... 4.2
Michigan.......................... 3.8
Utah.............................. 3.6
New Hampshire..................... 3.3
Maryland.......................... 3.2
Georgia........................... 3.1
Ohio.............................. 3.0
North Dakota...................... 2.6
District of Columbia.............. 2.2
Washington........................ 2.0
Indiana........................... 2.0
New Jersey........................ 1.5
Wisconsin......................... 1.5
Pennsylvania...................... 1.4
Rhode Island...................... 1.3
Arizona........................... 1.3
Oregon............................ 1.2
South Dakota...................... 1.1
Missouri.......................... 1.0
Florida........................... 0.8
Kansas............................ 0.7
Wyoming........................... 0.7
Idaho............................. 0.6
Oklahoma.......................... 0.3
Nevada............................ 0.1
----
99.4%
====
Weighted average days to maturity. 11.0
Credit Quality Allocation@#
A-1......................... 81.6%
Not Rated+.................. 18.4
-----
100.0%
=====
- --------
* Calculated as a percentage of net assets
@ Source: Standard and Poor's
# 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, 2009 -- (unaudited)
Principal Market Value
Security Description Amount (Note 2)
SHORT-TERM INVESTMENT SECURITIES -- 99.4%
Arizona -- 1.3%
Maricopa County, Arizona Industrial
Development Authority
(LOC-Harris Trust & Savings Bank)
0.57% due 07/02/09+...................... $ 600,000 $ 600,000
Maricopa County, Arizona Industrial
Development Authority
Multi-Family Housing
Series A
(LOC-Wells Fargo Bank N.A.)
0.42% due 07/02/09+...................... 1,390,000 1,390,000
----------
1,990,000
----------
California -- 17.2%
Big Bear Lake, California Industrial
Series A
(LOC-KBC Bank N.V.)
0.27% due 07/01/09+...................... 2,000,000 2,000,000
California Housing Finance Agency
Series F
0.24% due 07/01/09+...................... 2,905,000 2,905,000
California Housing Finance Agency
Series M
0.50% due 07/01/09+...................... 3,000,000 3,000,000
California Housing Finance Agency
Multi-Family Housing
Series A
0.25% due 07/01/09+...................... 255,000 255,000
California Housing Finance Agency
Multi-Family Housing
Series C
1.80% due 07/01/09+...................... 450,000 450,000
California Infrastructure & Economic
Development Bank
Series A
(LOC-Allied Irish Bank PLC)
0.18% due 07/01/09+...................... 1,800,000 1,800,000
California Office of the State Treasurer
Series B-6
0.30% due 07/01/09+...................... 3,400,000 3,400,000
California State Department of Water
Resources Supply
Series F-4
(LOC-Bank of America N.A.)
0.13% due 07/01/09+...................... 165,000 165,000
California State Department of Water
Resources Supply
Series C-11
(LOC-KBC Bank N.V. & Bank of Nova
Scotia)
0.16% due 07/02/09+...................... 600,000 600,000
California State Department of Water
Resources Supply
Series B-2
(LOC-BNP Paribas)
0.25% due 07/01/09+...................... 380,000 380,000
California State Economic Recovery
Series C-4
0.28% due 07/01/09+...................... 300,000 300,000
Principal Market Value
Security Description Amount (Note 2)
-------------------------------------------------------------------------
California (continued)
Irvine Ranch, California Water District
(LOC-Bank of America N.A.)
0.25% due 07/01/09+............................ $ 500,000 $ 500,000
Irvine, California Improvement Bond Act
(LOC-KBC Bank N.V.)
0.25% due 07/01/09+............................ 250,000 250,000
Los Angeles County, California Metropolitan
Transportation Authority
Series A-2
0.18% due 07/01/09+............................ 2,800,000 2,800,000
Metropolitan Water District of Southern
California
Series B-1
0.50% due 07/01/09+............................ 1,900,000 1,900,000
Orange County, California Improvement Bond
(LOC-KBC Bank N.V.)
0.15% due 07/01/09+............................ 900,000 900,000
San Bernardino County, California Certificates
of Participation
(LOC-BNP Paribas)
0.17% due 07/02/09+............................ 1,300,000 1,300,000
Santa Clara Valley, California Transportation
Authority
Series C
0.17% due 07/02/09+............................ 4,000,000 4,000,000
Santa Clara, California Electric
Series A
(LOC-Bank of America N.A.)
0.25% due 07/01/09+............................ 200,000 200,000
-----------
27,105,000
-----------
Colorado -- 6.5%
Colorado Housing & Finance Authority
Series I
0.36% due 07/01/09+............................ 1,000,000 1,000,000
Colorado Housing & Finance Authority
Series I-B2
0.50% due 07/01/09+............................ 1,505,000 1,505,000
Colorado Springs, Colorado National
Strength & Conditioning Association
(LOC-Wells Fargo Bank N.A.)
0.37% due 07/02/09+............................ 1,235,000 1,235,000
Colorado Springs, Colorado Utilities
Series A
0.23% due 07/02/09+............................ 3,880,000 3,880,000
Colorado Springs, Colorado Utilities
Series B
1.50% due 07/01/09+............................ 2,100,000 2,100,000
Durango, Colorado Community Health &
Human Services
(LOC-Wells Fargo Bank N.A.)
0.37% due 07/02/09+............................ 615,000 615,000
-----------
10,335,000
-----------
13
SunAmerica Municipal Money Market Fund
PORTFOLIO OF INVESTMENTS -- June 30, 2009 -- (unaudited) (continued)
Principal Market Value
Security Description Amount (Note 2)
SHORT-TERM INVESTMENT SECURITIES (continued)
District of Columbia -- 2.2%
Metropolitan Washington D.C. Airports
Authority System
Series A-2
2.75% due 07/02/09+............................ $3,500,000 $3,500,000
----------
Florida -- 0.8%
Broward County, Florida School Board
0.32% due 07/02/09+............................ 850,000 850,000
Collier County, Florida Health Facilities
Authority
(LOC-Wachovia Bank N.A.)
0.28% due 07/01/09+............................ 350,000 350,000
----------
1,200,000
----------
Georgia -- 3.1%
De Kalb Private Hospital Authority
0.32% due 07/01/09+............................ 4,950,000 4,950,000
----------
Idaho -- 0.6%
Idaho Health Facilities Authority
0.38% due 07/01/09+............................ 890,000 890,000
----------
Illinois -- 5.2%
Chicago, Illinois O'Hare International Airport
Series B
(LOC-Societe Generale)
0.56% due 07/01/09+............................ 730,000 730,000
Illinois Educational Facilities Authority
(LOC-Harris Trust & Savings Bank)
0.22% due 07/01/09+............................ 2,150,000 2,150,000
Illinois Finance Authority
Series E
0.31% due 07/01/09+............................ 695,000 695,000
Illinois State, Illinois
Series A
5.50% due 04/01/10............................. 500,000 516,532
Jackson-Union Counties, Illinois Regional
Port District
(LOC-Wachovia Bank N.A.)
0.23% due 07/01/09+............................ 4,050,000 4,050,000
----------
8,141,532
----------
Indiana -- 2.0%
Indiana State Development Finance Authority
Series A
(LOC-Barclays Bank PLC)
0.40% due 07/01/09+............................ 3,100,000 3,100,000
----------
Kansas -- 0.7%
Kansas State Department of Transportation
Series A-3
0.18% due 07/02/09+............................ 595,000 595,000
Kansas State Department of Transportation
Series A-4
0.18% due 07/02/09+............................ 500,000 500,000
----------
1,095,000
----------
Principal Market Value
Security Description Amount (Note 2)
-------------------------------------------------------------------
Kentucky -- 4.2%
Breckinridge County, Kentucky Lease
Program
(LOC-U.S. Bank N.A.)
0.23% due 07/01/09+...................... $1,455,000 $1,455,000
Breckinridge County, Kentucky Lease
Program
Series A
(LOC-U.S. Bank N.A.)
0.23% due 07/01/09+...................... 2,635,000 2,635,000
Kentucky Housing Corporation
Series F
0.30% due 07/01/09+...................... 1,090,000 1,090,000
Kentucky Housing Corporation
Series I
0.30% due 07/01/09+...................... 995,000 995,000
Louisville & Jefferson County, Kentucky
Metropolitan Sewer District
Series A
0.35% due 07/01/09+...................... 430,000 430,000
----------
6,605,000
----------
Maryland -- 3.2%
Maryland Health & Higher Educational
Facilities Authority
Series A
(LOC-Wachovia Bank N.A.)
0.25% due 07/02/09+...................... 3,000,000 3,000,000
Maryland State Economic Development
Corporation
Series B
(LOC-Bank of America N.A.)
0.32% due 07/01/09+...................... 110,000 110,000
Washington County, Maryland
Commissioners
Series E
(LOC-Wachovia Bank N.A.)
0.26% due 07/02/09+...................... 1,900,000 1,900,000
----------
5,010,000
----------
Massachusetts -- 5.1%
Massachusetts Development Finance Agency
Series U-6C
(LOC-Allied Irish Bank PLC)
0.18% due 07/01/09+...................... 3,805,000 3,805,000
Massachusetts Development Finance Agency
Series U-6D
(LOC-Allied Irish Bank PLC)
0.18% due 07/01/09+...................... 1,400,000 1,400,000
Massachusetts State Water Resources
Authority
Series C
1.25% due 07/01/09+...................... 2,935,000 2,935,000
----------
8,140,000
----------
Michigan -- 3.8%
Holt, Michigan Public Schools
0.35% due 07/02/09+...................... 3,990,000 3,990,000
14
SunAmerica Municipal Money Market Fund
PORTFOLIO OF INVESTMENTS -- June 30, 2009 -- (unaudited) (continued)
Principal Market Value
Security Description Amount (Note 2)
SHORT-TERM INVESTMENT SECURITIES (continued)
Michigan (continued)
Michigan State Hospital Finance Authority
Series B
(LOC-Landesbank Hessen)
0.32% due 07/01/09+.......................... $2,065,000 $2,065,000
----------
6,055,000
----------
Missouri -- 1.0%
Kansas City Industrial Development Authority
(LOC-Bank of America N.A.)
0.28% due 07/01/09+.......................... 1,550,000 1,550,000
----------
Nevada -- 0.1%
Clark County, Nevada School District
Series B
0.30% due 07/01/09+.......................... 115,000 115,000
----------
New Hampshire -- 3.3%
New Hampshire Health & Education Facilities
Authority
Series B-2
0.20% due 07/01/09+.......................... 3,445,000 3,445,000
New Hampshire Health & Education Facilities
Authority
Series B
0.25% due 07/01/09+.......................... 1,780,000 1,780,000
----------
5,225,000
----------
New Jersey -- 1.5%
New Jersey Economic Development Authority
Series V-2
(LOC-Dexia Credit Local)
0.75% due 07/01/09+.......................... 2,000,000 2,000,000
New Jersey State Housing & Mortgage
Finance Agency
Series A
0.90% due 07/02/09+.......................... 395,000 395,000
----------
2,395,000
----------
New York -- 7.6%
Metropolitan Transportation Authority
Series G
(LOC-BNP Paribas)
0.18% due 07/01/09+.......................... 990,000 990,000
Metropolitan Transportation Authority
Series D-1
1.25% due 07/02/09+.......................... 2,200,000 2,200,000
New York City Municipal Water
Finance Authority & Sewer System
Series B-2
0.18% due 07/01/09+.......................... 500,000 500,000
New York City Municipal Water
Finance Authority & Sewer System
Series F-2
0.20% due 07/01/09+.......................... 105,000 105,000
New York City Municipal Water
Finance Authority & Sewer System
Series B-3
0.28% due 07/01/09+.......................... 100,000 100,000
Principal Market Value
Security Description Amount (Note 2)
------------------------------------------------------------------------
New York (continued)
New York City Municipal Water
Finance Authority & Sewer System
Series C
0.35% due 07/01/09+........................... $1,100,000 $ 1,100,000
New York City Office of the City Comptroller
Series J-3
(LOC-Allied Irish Bank PLC)
0.18% due 07/01/09+........................... 2,395,000 2,395,000
New York City Office of the City Comptroller
Series A-5
(LOC-KBC Bank N.V.)
0.20% due 07/01/09+........................... 300,000 300,000
New York City Office of the City Comptroller
Series E-3
(LOC-West Duetsche Landesbank)
0.50% due 07/01/09+........................... 100,000 100,000
New York City Transitional Finance Authority
Series 2-E
0.75% due 07/01/09+........................... 300,000 300,000
New York City Transitional Finance Authority
Series 3-D
0.75% due 07/01/09+........................... 910,000 910,000
New York City Transitional Finance Authority
Series 3-C
0.75% due 07/01/09+........................... 700,000 700,000
New York State Environmental Facilities Corp.
Series B
(LOC-J.P. Morgan Chase Bank)
0.45% due 07/02/09+........................... 2,200,000 2,200,000
Triborough Bridge & Tunnel Authority
0.65% due 07/01/09+........................... 140,000 140,000
-----------
12,040,000
-----------
North Carolina -- 6.3%
Charlotte-Mecklenburg, North Carolina
Hospital Authority Health Care System
Series D
0.25% due 07/01/09+........................... 600,000 600,000
City of Winston-Salem, North Carolina+
Series C
0.65% due 07/02/09+........................... 1,400,000 1,400,000
Fayetteville, North Carolina Public Works
Commission
0.65% due 07/01/09+........................... 2,145,000 2,145,000
North Carolina Housing Finance Agency
Series 15-C
0.32% due 07/01/09+........................... 2,995,000 2,995,000
North Carolina Medical Care Commission
Series B
0.23% due 07/02/09+........................... 1,850,000 1,850,000
Wilmington, North Carolina General
Obligation Unlimited
0.33% due 07/01/09+........................... 1,040,000 1,040,000
-----------
10,030,000
-----------
North Dakota -- 2.6%
North Dakota State Housing Finance Agency
Series A
0.37% due 07/01/09+........................... 3,165,000 3,165,000
15
SunAmerica Municipal Money Market Fund
PORTFOLIO OF INVESTMENTS -- June 30, 2009 -- (unaudited) (continued)
Principal Market Value
Security Description Amount (Note 2)
SHORT-TERM INVESTMENT SECURITIES (continued)
North Dakota (continued)
North Dakota State Housing Finance Agency
Series B
0.37% due 07/01/09+........................... $1,000,000 $1,000,000
----------
4,165,000
----------
Ohio -- 3.0%
Cuyahoga County, Ohio
Series B-1
0.18% due 07/01/09+........................... 2,800,000 2,800,000
Ohio Housing Finance Agency
Series B-1
0.25% due 07/01/09+........................... 1,000,000 1,000,000
Ohio Housing Finance Agency Multi-Family
Housing
(LOC-Federal Home Loan Bank)
0.37% due 07/02/09+........................... 890,000 890,000
----------
4,690,000
----------
Oklahoma -- 0.3%
Oklahoma State Capitol Improvment Authority
Series D-3
0.32% due 07/01/09+........................... 190,000 190,000
Oklahoma Turnpike Authority
Series F
0.18% due 07/01/09+........................... 250,000 250,000
----------
440,000
----------
Oregon -- 1.2%
Medford, Oregan Hospital Facilities Authority
(LOC-KBC Bank N.V.)
0.23% due 07/01/09+........................... 455,000 455,000
Multnomah County, Oregon Hospital Facilities
Authority
(LOC-Allied Irish Bank PLC)
0.28% due 07/01/09+........................... 1,400,000 1,400,000
----------
1,855,000
----------
Pennsylvania -- 1.4%
Pennsylvania State Higher Educational
Facilities Authority
Series A-7
(LOC-Allied Irish Bank PLC)
0.80% due 07/02/09+........................... 1,000,000 1,000,000
Pittsburgh, Pennsylvania Water & Sewer
Authority
Series B-1
0.50% due 07/02/09+........................... 1,300,000 1,300,000
----------
2,300,000
----------
Rhode Island -- 1.3%
Providence, Rhode Island Housing Authority
Series A
(LOC-Bank of America N.A.)
0.40% due 07/01/09+........................... 2,100,000 2,100,000
----------
South Dakota -- 1.1%
South Dakota Housing Development Authority
Series C-1
0.45% due 07/02/09+........................... 1,700,000 1,700,000
----------
Principal Market Value
Security Description Amount (Note 2)
-----------------------------------------------------------------------
Texas -- 5.0%
Corpus Christi, Texas City Hall
3.00% due 03/01/10........................... $3,910,000 $3,968,477
Lubbock, Texas Health Facilities Development
Corp.
Series B
(LOC-Wachovia Bank N.A.)
0.35% due 07/01/09+.......................... 160,000 160,000
San Antonio, Texas Electric & Gas
Series B
4.00% due 02/01/10........................... 2,000,000 2,037,697
Tarrant County, Texas Cultural Education
Facilities Finance Corp.
Series C
0.03% due 07/01/09+.......................... 400,000 400,000
Texas State Economic Development
Series A-2
0.34% due 07/01/09+.......................... 1,100,000 1,100,000
Texas Water Development Board
Series A
0.30% due 07/01/09+.......................... 170,000 170,000
----------
7,836,174
----------
Utah -- 3.6%
Utah Housing Corporation Single Family
Mortgage
Series E-1
0.50% due 07/01/09+.......................... 940,000 940,000
Utah Housing Corporation Single Family
Mortgage
Series F
1.15% due 07/01/09+.......................... 3,000,000 3,000,000
Utah Housing Corporation Single Family
Mortgage
Series A
1.15% due 07/01/09+.......................... 1,680,000 1,680,000
----------
5,620,000
----------
Washington -- 2.0%
Washington State Housing Finance
Commission
(LOC-Bank of America N.A.)
0.30% due 07/02/09+.......................... 2,150,000 2,150,000
Washington State Housing Finance
Commission
Series A
(LOC-Wells Fargo Bank N.A.)
0.58% due 07/01/09+.......................... 1,025,000 1,025,000
----------
3,175,000
----------
Wisconsin -- 1.5%
Whitewater, Wisconsin Industrial
Development
(LOC-J.P. Morgan Chase Bank)
0.40% due 07/01/09+.......................... 2,300,000 2,300,000
Wisconsin Housing & Economic Development
Authority
Series C
0.46% due 07/01/09+.......................... 75,000 75,000
----------
2,375,000
----------
16
SunAmerica Municipal Money Market Fund
PORTFOLIO OF INVESTMENTS -- June 30, 2009 -- (unaudited) (continued)
Principal Market Value
Security Description Amount (Note 2)
SHORT-TERM INVESTMENT SECURITIES (continued)
Wyoming -- 0.7%
Sweetwater County, Wyoming
Pollution Control
Series A
(LOC-Barclays Bank PLC)
0.26% due 07/01/09+................ $1,100,000 $ 1,100,000
------------
Registered Investment Company -- 0.0%
SSgA Tax Free Money Market Fund
(amortized cost $24,944)............ 24,944 24,944
------------
TOTAL SHORT-TERM INVESTMENT SECURITIES
(amortized cost $156,852,650)(1).... 99.4% $156,852,650
Other assets less liabilities......... 0.6 909,900
---------- ------------
NET ASSETS --......................... 100.0% $157,762,550
========== ============
- --------
+ Variable Rate Security -- the rate reflected is as of June 30, 2009,
maturity date reflects next reset date.
LOC -- Letter of Credit
(1) See Note 4 for cost of investments on a tax basis.
17
SunAmerica Municipal Money Market Fund
PORTFOLIO OF INVESTMENTS -- June 30, 2009 -- (unaudited) (continued)
The following is a summary of the inputs used to value the Fund's net assets as
of June 30, 2009 (see Note 2):
Level 1--Unadjusted Level 2--Other Level 3--Significant
Quoted Prices Observable Inputs Unobservable Inputs Total
------------------- ----------------- -------------------- ------------
Short-Term Investment Securities:
California...................... $-- $ 27,105,000 $-- $ 27,105,000
Colorado........................ -- 10,335,000 -- 10,335,000
Illinois........................ -- 8,141,532 -- 8,141,532
Massachusetts................... -- 8,140,000 -- 8,140,000
New York........................ -- 12,040,000 -- 12,040,000
North Carolina.................. -- 10,030,000 -- 10,030,000
Texas........................... -- 7,836,174 -- 7,836,174
Other States+................... -- 73,200,000 -- 73,200,000
Registered Investment Companies. -- 24,944 -- 24,944
--- ------------ --- ------------
Total............................. $-- $156,852,650 $-- $156,852,650
=== ============ === ============
- --------
+ Sum of all other states each of which individually has an aggregate market
value of less than 5% of net assets.
See Notes to Financial Statements
18
SunAmerica Money Market Funds
NOTES TO FINANCIAL STATEMENTS -- June 30, 2009 -- (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 SunAmerica Asset
Management Corp. ("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 investments 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 selected primarily on the basis of quality and yield, and under
normal market conditions, invests at least 80% of its assets, plus any
borrowings for investment purposes, in municipal securities that are exempt
from regular federal income tax.
The Money Market Fund currently offers two classes of shares: Class A and
Class I. The Municipal Money Market Fund currently offers Class A shares.
These 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 certain shares sold within one year of
original purchase and a 0.50% CDSC is imposed on certain
shares sold after the first year and within the second year
after purchase, as described in the Funds' Prospectus.
Class I shares-- Class I shares are offered at net asset value per share
without any sales charge, exclusively to certain
institutions.
Effective September 17, 2008, the Municipal Money Market Fund no longer
accepted orders to purchase the Class B and Class C shares, including from
existing shareholders. Any outstanding Class B and Class C shares as of the
close of business on September 17, 2008 were converted to Class A shares of
the Municipal Money Market Fund.
Effective June 3, 2009, the Money Market Fund no longer accepted orders to
purchase Class B and Class C shares, including from existing shareholders.
Any outstanding Class B and Class C shares of the Money Market Fund as of
the close of business on June 3, 2009 were converted to Class A shares of
the Money Market Fund.
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
have their own 12b-1 plan.
Indemnifications: The Corporation's organizational documents provide current
and former officers and directors with a limited indemnification against
liabilities arising out of the performance of their duties to the
Corporation. In addition, pursuant to Indemnification Agreements between the
Corporation and each of the current directors who is not an "interested
person," as defined in Section 2(a)(19) of the Investment Company Act of
1940, as amended (the "1940 Act"), of the Corporation (collectively, the
"Disinterested Directors"), the Corporation provides the Disinterested
Directors with a limited indemnification against liabilities arising out of
the performance of their duties to the Corporation, whether such liabilities
are asserted during or after their service as directors. In addition, in the
normal course of business the Corporation enters into contracts that contain
the obligation to indemnify others. The
- --------
* Effective April 1, 2009, AIG SunAmerica Asset Management Corp. changed its
name to SunAmerica Asset Management Corp.
19
SunAmerica Money Market Funds
NOTES TO FINANCIAL STATEMENTS -- June 30, 2009 -- (unaudited)
(continued)
Corporation's maximum exposure under these arrangements is unknown.
Currently, however, the Corporation 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
statements. Actual results could differ from these estimates. The
following is a summary of the significant accounting policies followed by
the Funds in the preparation of its financial statements:
Security Valuations: Portfolio securities are valued at amortized cost,
which approximates market value. The amortized cost method involves valuing
a security at its cost on the date of purchase and thereafter assuming a
constant amortization/accretion to maturity of any discount or premium. 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.
The calculation of such deviation is referred to as "Shadow Pricing". 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. There is no single
standard for making fair value determinations, which may result in market
prices that vary from those of other funds.
Securities for which market quotations are not readily available or if a
development/significant event occurs that may significantly impact the value
of the security, then these securities are valued, as determined pursuant to
procedures adopted in good faith by the Board.
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--Unadjusted 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 (includes inputs that reflect the
Funds' own assumptions about the assumptions market participants would use
in pricing the security, developed based on the best information available
under the circumstances)
The inputs or methodology used for valuing securities are not necessarily an
indication of the risk associated with investing in those securities.
The summary of the inputs used to value the Funds' net assets as of June 30,
2009 are reported on a schedule following the Portfolio of Investments.
Repurchase Agreements: The Funds, along with other affiliated registered
investment companies, pursuant to exemptive relief granted by the Securities
and Exchange Commission, may transfer uninvested cash balances into a single
joint account, the daily aggregate balance of which is invested in one or
more repurchase agreements collateralized by U.S. Treasury or federal agency
obligations. 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
20
SunAmerica Money Market Funds
NOTES TO FINANCIAL STATEMENTS -- June 30, 2009 -- (unaudited)
(continued)
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, 2009, the following Portfolio held an undivided interest in a
joint repurchase agreement with UBS Securities, LLC.:
Percentage Principal
Fund Interest Amount
---- ---------- -----------
Money Market...................................... 34.18% $76,900,000
As of that date, the repurchase agreement in the joint account and the
collateral therefore were as follows:
UBS Securities, LLC, dated June 30, 2009, bearing interest at a rate of
0.01% per annum, with a principal amount of $225,000,000, a repurchase price
of $225,000,063 and a maturity date of July 1, 2009. The repurchase
agreement is collateralized by the following:
Interest Maturity
Type of Collateral Rate Date Principal Amount Market Value
------------------ -------- -------- ---------------- ------------
U.S. Treasury Inflation Index
Bonds....................... 1.88% 07/15/15 $206,524,200 $229,500,017
Securities Transactions, Investment Income, Expenses, Dividends and
Distributions to Shareholders: Security transactions are recorded on a trade
date basis. Realized gains and losses on sales of investments are calculated
on the identified cost basis. Interest income, including the accretion of
discount and amortization of premium, is accrued daily; dividend income is
recorded on the ex-dividend date.
Net investment income, other than class specific expenses, and realized and
unrealized gains and losses, are allocated daily to each class of shares
based upon the relative net asset value of outstanding shares (or the value
of the dividend-eligible shares, as appropriate) of each class of shares at
the beginning of the day (after adjusting for the current capital shares
activity of the respective class).
Expenses common to all Funds, not directly related to individual Funds, are
allocated among the Funds based upon their relative net asset value or other
appropriate methods. In all respects, expenses are charged to each Fund as
incurred on a specific identification basis. Interest earned on cash
balances held at the custodian are shown as custody credits in the Statement
of Operations.
Dividends from net investment income, if any, are normally declared daily
and paid monthly. Capital gain distributions, if any, are paid annually. The
Funds record dividends and distributions to their shareholders on the ex-
dividend date. The amount of dividends and distributions from net investment
income and net realized capital gains are determined in accordance with
federal income tax regulations, which may differ from U.S. generally
accepted accounting principles. These "book/tax" differences are either
considered temporary or permanent in nature. To the extent these differences
are permanent in nature, such amounts are reclassified within the capital
accounts at fiscal year end based on their federal tax-basis treatment;
temporary differences do not require reclassification. Net investment income
(loss), net realized gain (loss), and net assets are not affected by these
reclassifications.
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 2005.
21
SunAmerica Money Market Funds
NOTES TO FINANCIAL STATEMENTS -- June 30, 2009 -- (unaudited)
(continued)
Note 3. Investment Advisory and Management Agreement, Distribution and Service
Agreement and Other Transactions With Affiliates
The Funds have an Investment Advisory and Management Agreement (the
"Advisory Agreement") with SunAmerica. Under the Advisory Agreement,
SunAmerica provides continuous supervision to each Fund's portfolio and
administers the Corporation's corporate affairs, subject to general review
by the Board. In connection therewith, 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
Corporation who are employees of SunAmerica and its affiliates.
The Funds pay 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 SunAmerica. AIGGIC is an
indirect wholly-owned subsidiary of AIG and an affiliate of SunAmerica.
AIGGIC receives the following fees from 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%
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. Annual Fund
operating expenses shall not include extraordinary expenses, as determined
under generally accepted accounting principles, or acquired fund fees and
expenses. 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 1940 Act ("Independent
Directors").
Fund Percentage
---- ----------
Money Market Class I.............................. 0.80%
Municipal Money Market Class A.................... 0.95
For the period ended June 30, 2009, pursuant to the contractual expense
limitations in the above table, SunAmerica reimbursed expenses as follows:
Fund
----
Money Market Class I.............................. $17,919
Municipal Money Market Class A.................... 4,417
SunAmerica may also voluntarily waive fees and/or reimburse expenses,
including to avoid a negative yield on any class of the Funds. The voluntary
waivers and/or reimbursements may be terminated at any time at the option of
SunAmerica. The exact amount of the voluntary waivers and/or reimbursements
may change on a day-to-day basis. There is no guarantee that either Fund
will be able to avoid a negative yield.
22
SunAmerica Money Market Funds
NOTES TO FINANCIAL STATEMENTS -- June 30, 2009 -- (unaudited)
(continued)
For the period ended June 30, 2009, SunAmerica voluntarily waived expenses
as follows:
Fund
----
Money Market Class A.............................. $184,700
Money Market Class B*............................. 57,473
Money Market Class C*............................. 92,932
Money Market Class I.............................. 27
Municipal Money Market Class A.................... 138,973
The Corporation, on behalf of each Fund, has entered into a Distribution
Agreement with SunAmerica Capital Services, Inc. ("SACS" or the
"Distributor"), an affiliate of the Adviser. The Funds have adopted a
Distribution Plan on behalf of each class of shares (other than 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," "Class B Plan," and "Class C Plan." In adopting the Plans,
the Board determined that there was a reasonable likelihood that each such
Plan would benefit the Fund 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. As noted above in
Note 1, Class B shares and Class C shares of the Money Market Fund are no
longer offered for sale and any outstanding Class B shares and Class C
shares as of the close of business on June 3, 2009, were converted to Class
A shares. Therefore, subsequent to this conversion, fees are no longer being
paid to SACS under the Class B Plan or Class C Plan.
Prior to the conversion of Class B shares and Class C shares described
above, both the Class B Plan and the Class C Plan provided that the Fund
would 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 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 Class A Plan also provides (and the Class B Plan and Class C plan
previously provided) 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, SACS received fees (see Statement of Operations)
based upon the aforementioned rates. In addition, in light of current market
conditions, and in order to avoid a negative yield on Class A shares of the
Fund, SACS has agreed, effective June 3, 2009, to waive up to 0.15% of the
fees it receives under the Class A Plan. This voluntary waiver may be
terminated at any time at the option of the Distributor without notice to
shareholders.
For the period ended June 30, 2009, SACS voluntarily waived fees as follows:
Fund
----
Money Market Class A.............................. $103,827
Municipal Money Market Class A.................... 18,374
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, 2009, the proceeds received from redemptions are as follows:
Contingent Deferred Sales Charges
---------------------------------
Fund Class A Class B Class C
---- ------- ------- -------
Money Market....................... $-- $58,656 $6,296
Municipal Money Market............. -- -- --
- --------
* See Note 1
23
SunAmerica Money Market Funds
NOTES TO FINANCIAL STATEMENTS -- June 30, 2009 -- (unaudited)
(continued)
The Funds have entered into a Service Agreement with 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
period ended June 30, 2009, the Funds incurred the following expenses which
are included in transfer agent fees and expenses payable line in the
Statement of Assets and Liabilities and in transfer agent fees and expenses
in the Statement of Operations to compensate SAFS pursuant to the terms of
the Service Agreement:
Payable at
Expenses June 30, 2009
---------- -------------
Money Market Fund Class A.......... $1,042,573 $162,794
Money Market Fund Class B.......... 19,563 --
Money Market Fund Class C.......... 35,254 --
Money Market Fund Class I.......... 17,359 2,922
Municipal Money Market Fund Class A 178,367 28,837
As of June 30, 2009, 80% of the Money Market Fund's total outstanding shares
and 98% of the Municipal Money Market Fund's total outstanding shares were
held through Pershing LLC in a brokerage account sweep vehicle for customers
of the broker-dealers within AIG Advisor Group, Inc., an affiliate of the
Adviser.
As a result of losses on medium-term notes issued by Cheyne Finance LLC,
that were previously held by the Money Market Fund, SunAmerica made capital
contributions to the Money Market Fund totaling $471,000.
On March 4, 2009, AIG, the ultimate parent of SunAmerica, SACS, SAFS, and
AIGGIC, issued and sold to the AIG Credit Facility Trust, a trust
established for the sole benefit of the United States Treasury (the
"Trust"), 100,000 shares of AIG's Series C Perpetual, Convertible,
Participating Preferred Stock (the "Stock") for an aggregate purchase price
of $500,000, with an understanding that additional and independently
sufficient consideration was also furnished to AIG by the Federal Reserve
Bank of New York (the "FRBNY") in the form of its lending commitment (the
"Credit Facility") under the Credit Agreement, dated as of September 22,
2008, between AIG and the FRBNY. The Stock has preferential liquidation
rights over AIG common stock, and, to the extent permitted by law, votes
with AIG's common stock on all matters submitted to AIG's shareholders. The
Trust has approximately 79.9% of the aggregate voting power of AIG's common
stock and is entitled to approximately 79.9% of all dividends paid on AIG's
common stock, in each case treating the Stock as if converted. The Stock
will remain outstanding even if the Credit Facility is repaid in full or
otherwise terminates.
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, capital contributions and cumulative pension expenses.
Distributable Earnings Tax Distributions
----------------------------------------- --------------------------------
For the year ended December 31, 2008
--------------------------------------------------------------------------
Long-term Gains/ Unrealized Long-Term
Ordinary Capital and Appreciation Ordinary Capital
Fund Income Other Losses (Depreciation) Income Gains Tax Exempt
- ---- -------- ---------------- -------------- ----------- --------- ----------
Money Market....................... $409,514 $(8,605,552) $3,684,000 $20,757,226 $-- $ --
Municipal Money Market............. 36,540* (24,510) -- -- -- 2,444,662
- --------
+ Effective March 17, 2009, AIG SunAmerica Fund Services, Inc. changed its
name to SunAmerica Fund Services, Inc.
* Tax exempt distributable earnings
24
SunAmerica Money Market Funds
NOTES TO FINANCIAL STATEMENTS -- June 30, 2009 -- (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, 2008,
which are available to offset future capital gains, if any:
Capital Loss Carryforward
-------------------------
Fund 2012 2013 2016
---- ------ ------- ----------
Money Market................................ $ -- $ -- $8,605,552
Municipal Money Market...................... 8,070 16,252 188
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, 2008, the Money Market Fund elected
to defer post October capital losses in the amount of $303.
As of June 30, 2009, the amounts of aggregate unrealized gain (loss) and the
cost of investment securities for federal income tax purposes, including
repurchase agreements, were as follows:
Gross Gross Net Unrealized
Cost of Unrealized Unrealized Appreciation
Fund Investments Appreciation Depreciation (Depreciation)
- ---- ------------ ------------ ------------ --------------
Money Market.................. $906,174,382 $3,684,000 $-- $3,684,000
Municipal Money Market........ 156,852,650 -- -- --
Note 5. Capital Share Transactions
Transactions in each class of shares of the Funds, all at $1.00 per share,
for the period ended June 30, 2009 and for the prior year were as follows:
Money Market Fund
-----------------------------------------------------------------------------------------------
Class A Class B Class C
------------------------------ ----------------------------- --------------------------
For the For the For the For the For the For the
six months year period year period year
ended ended January 1 to ended January 1 to ended
June 30, December 31, June 3, December 31, June 3, December 31,
2009 2008 2009(4) 2008 2009(4) 2008
------------- ------------- ------------ ------------ ------------ ------------
Shares sold............. $ 276,515,735(1) $ 739,651,175(2) $ 5,107,861 $ 24,467,136 $ 15,016,720 $ 89,457,487
Reinvested dividends.... 1,179,835 19,606,294 2,027 193,858 4,274 328,868
Shares redeemed......... (381,152,357) (941,513,403) (28,263,814)(1) (19,832,404)(2) (55,718,483) (72,135,074)
------------- ------------- ------------ ------------ ------------ ------------
Net increase (decrease). $(103,456,787) $(182,255,934) $(23,153,926) $ 4,828,590 $(40,697,489) $ 17,651,281
============= ============= ============ ============ ============ ============
Municipal Money Market Funds
------------------------------
Class A
------------------------------
For the For the
six months year
ended ended
June 30, December 31,
2009 2008
------------- -------------
$ 79,177,329 $ 265,457,527(3)
26,325 2,440,082
(109,523,807) (233,720,922)
------------- -------------
$ (30,320,153) $ 34,176,687
============= =============
--------------------------
Class I
-------------------------
For the For the
six months year
ended ended
June 30, December 31,
2009 2008
----------- ------------
Shares sold............. $ 6,190,265 $ 16,999,656
Reinvested dividends.... 31,593 345,755
Shares redeemed......... (7,080,666) (18,815,372)
----------- ------------
Net increase (decrease). $ (858,808) $ (1,469,961)
=========== ============
- --------
(1)Includes automatic conversion of Class B shares in the amount of $1,832,886
to Class A shares.
(2)Includes automatic conversion of Class B shares in the amount of $1,872,559
to Class A shares
(3)Includes automatic conversion of B shares in the amount of $100 to Class A
shares.
(4)See Note 1
25
SunAmerica Money Market Funds
NOTES TO FINANCIAL STATEMENTS -- June 30, 2009 -- (unaudited)
(continued)
Note 6. Directors' Retirement Plan
The Directors of the SunAmerica Money Market Funds, Inc. have adopted the
SunAmerica Disinterested Trustees' and Directors' Retirement Plan (the
"Retirement Plan") effective January 1, 1993, as amended for the Independent
Directors. The Retirement Plan provides generally that an Independent
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 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%.
Effective December 3, 2008, the Retirement Plan was amended to among other
things, (1) freeze the Retirement Plan as to future accruals for active
Participants as of December 31, 2008, (2) prohibit Disinterested Directors
from first becoming participants in the Retirement Plan after December 31,
2008, and (3) permits active Participants to elect to receive a distribution
of their entire Retirement Plan account balance in 2009. The freeze on
future accruals does not apply to Participants that have commenced receiving
benefits under the Retirement Plan on or before December 31, 2008.
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, 2009
---- -----------------------------------------------
Money Market Fund............. $34,253 $12,158 $246,565
Municipal Money Market Fund... 1,370 2,297 12,377
Note 7. Interfund Lending
Pursuant to exemptive relief granted by the Commission, the Funds are
permitted to participate in an interfund lending program among investment
companies advised by 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,
2009, the Funds did not participate in the program.
26
SunAmerica Money Market Funds
NOTES TO FINANCIAL STATEMENTS -- June 30, 2009 -- (unaudited)
(continued)
Note 8. Other Matters
On March 31, 2009, the U.S. Department of the Treasury ("Treasury") announced
an extension of the Treasury's Temporary Guarantee Program for Money Market
Funds (the "Program") until September 18, 2009. On April 3, 2009, the Board
of the Funds approved the continued participation of the Funds in the
Program. The Program's guarantee only applies to shareholders of the Funds as
of the close of business on September 19, 2008. Subject to certain conditions
and limitations, share amounts held by investors in the Funds as of the close
of business on September 19, 2008 are guaranteed against loss under the
Program in the event the per share net asset value falls below $0.995 (a
"Guarantee Event") and a Fund subsequently liquidates. Upon declaration of a
Guarantee Event, the Funds will be required to suspend redemptions, cease
sales, and cease declaration and payment of dividends. The Program guarantee
only covers the amount a shareholder held in the Funds as of the close of
business on September 19, 2008 or the amount a shareholder holds if and when
a Guarantee Event occurs, whichever is less. A shareholder who has
continuously maintained an account with the Funds since September 19, 2008
would receive a payment for each protected share equal to the shortfall
between the amount received in the liquidation and $1.00 per share in the
case of a Guarantee Event. The Program is subject to an overall limit of
approximately $50 billion for all money market funds participating in the
Program.
The extension of the Program began on May 1, 2009 and continues through
September 18, 2009. Continued participation in the Program until
September 18, 2009 required an additional payment to the Treasury in the
amount of 0.023% and 0.015% of the net asset value of the Money Market Fund
and Municipal Money Market Fund, respectively, as of the close of business on
September 19, 2008. The cost to participate in the extension of the Program
was borne by the Funds, subject to the expense limitations currently in
effect for the Funds.
If a Guarantee Event occurs after the Program expires, neither that Fund nor
any shareholder will be entitled to any payment under the Program. More
information about the Program is available at http://www.ustreas.gov.
Note 9. Subsequent Events
The Funds have performed an evaluation of subsequent events through August
27, 2009, which is the date the financial statements were issued. There were
no subsequent events noted.
27
[LOGO] Sun America
Mutual Funds
Harborside Financial Center
3200 Plaza 5
Jersey City, NJ 07311-4992
Directors/Trustees VOTING PROXIES ON FUND Securities and Exchange
Jeffrey S. Burum PORTFOLIO SECURITIES Commission, without
Dr. Judith L. Craven A description of the charge, upon request, by
William F. Devin policies and proce-dures call-ing (800) 858-8850
Samuel M. Eisenstat that the Funds use to or on the U.S. Securities
Stephen J. Gutman determine how to vote and Exchange Commission's
Peter A. Harbeck proxies relating to website at
William J. Shea secu-rities held in the http://www.sec.gov.
Funds' portfolios which
Officers is available in the DISCLOSURE OF QUARTERLY
John T. Genoy, President Funds' State-ment of PORTFOLIO HOLDINGS
and Chief Additional Information, The Fund is required to
Executive Officer may be obtained without file its com-plete
Donna M. Handel, charge upon re-quest, by schedule of portfolio
Treasurer calling (800) 858-8850. holdings with the U.S.
James Nichols, Vice This information is also Securities and Exchange
President available from the EDGAR Commission for its first
Timothy Pettee, Vice database on the U.S. and third fiscal quarters
President Secu-rities and Exchange on Form N-Q. The Fund's
Cynthia A. Skrehot, Vice Commission's website at Forms N-Q are available
President and Chief http://www.sec.gov. on the U.S. Securities
Compliance Officer and Exchange Commission's
Gregory N. Bressler, DELIVERY OF SHAREHOLDER website at
Chief Legal Officer DOCUMENTS http://www.sec.gov. You
and Secretary The Funds have adopted a can also review and
Nori L. Gabert, Vice policy that allows them obtain copies of the
President and to send only one copy of Forms N-Q at the U.S.
Assistant Secretary a Fund's prospectus, Securities and Exchange
Kathleen Fuentes, proxy material, annual Commission's Public
Assistant Secretary report and semi-annual Refer-ence Room in
John E. McLean, report (the "shareholder Washington, DC
Assistant Secretary documents") to (information on the
Gregory R. Kingston, shareholders with operation of the Public
Vice President and multiple accounts Reference Room may be
Assistant Treasurer residing at the same ob-tained by calling
Diedre Shepherd, "household." This 1-800-SEC-0330).
Assistant Treasurer practice is called
Matthew J. Hackethal, householding and reduces This report is submitted
Anti-Money Laundering Fund expenses, which solely for the general
Compliance Officer benefits you and other information of
shareholders. Unless the shareholders of the Fund.
Investment Adviser Funds receive Distribution of this
SunAmerica Asset instructions to the report to persons other
Management Corp. con-trary, you will only than shareholders of the
Harborside Financial receive one copy of the Fund is authorized only
Center shareholder documents. in connection with a
3200 Plaza 5 The Funds will continue currently effective
Jersey City, NJ to household the prospectus, setting forth
07311-4992 share-holder documents details of the Fund,
indefinitely, until we which must precede or
Distributor are instructed otherwise. accompany this report.
SunAmerica Capital If you do not wish to
Services, Inc. participate in The accompanying report
Harborside Financial householding please has not been audited by
Center contact Shareholder independent accountants
3200 Plaza 5 Services at (800) and accordingly no
Jersey City, NJ 858-8850 ext. 6010 or opinion has been
07311-4992 send a written request expressed thereon.
with your name, the name
Shareholder Servicing of your fund(s) and your
Agent account member(s) to
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 the Funds voted proxies
relating to securities
held in the Funds during
the most recent
twelve month period ended
June 30 is available,
once filed with the U.S.
28
[GRAPHIC]
Go Paperless!!
Did you know that you have the option to
receive your shareholder reports online?
By choosing this convenient service, you will no longer receive paper copies of
Fund documents such as annual reports, semi-annual reports, prospectuses and
proxy statements in the mail. Instead, you are provided with quick and easy
access to this information via the Internet.
Why Choose Electronic Delivery?
It's Quick -- Fund documents will be received faster than via traditional mail.
It's Convenient -- Elimination of bulky documents from personal files.
It's Cost Effective -- Reduction of your Fund's printing and mailing costs.
To sign up for electronic delivery, follow
these simple steps:
1
Go to
www.sunamericafunds.com
2
Click on the "Go Paperless" link.
3 Fill out the appropriate information
including the email address to which you
would like your information sent.
4
Click "Submit" --
It's that easy!
The email address you provide will be kept strictly confidential. Once your
enrollment has been processed, you will begin receiving email notifications
when anything you receive electronically is available online.
You can return to www.sunamericafunds.com at any time to change your email
address, edit your preferences or to cancel this service if you choose to
resume physical delivery of your Fund documents.
Please note - this option is only available to accounts opened through the
Funds.
For information on receiving this report online, see inside back cover.
Distributed by:
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
SunAmerica Sales Desk at 800-858-8850, ext. 6003, or at
www.sunamericafunds.com. Read the prospectus carefully before investing.
www.sunamericafunds.com
MMSAN - 6/09
[LOGO]
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. 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 270.30a-3(c))). Based on that evaluation, the registrant's
management, including the President and Treasurer, concluded that the
registrant's disclosure controls and procedures are effective.
(b) There was no change in the registrant's internal control over financial
reporting (as defined 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 4, 2009
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 4, 2009
By: /s/ Donna M. Handel
------------------------------
Donna M. Handel
Treasurer
Date: September 4, 2009