================================================================================
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, 2011
================================================================================
Item 1. Reports to Stockholders
[PHOTO]
SEMI-ANNUAL REPORT 2011
SUNAMERICA
Money Market Funds
[LOGO]
JUNE 30, 2011 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..................... 3
STATEMENT OF ASSETS AND LIABILITIES. 5
STATEMENT OF OPERATIONS............. 6
STATEMENT OF CHANGES IN NET ASSETS.. 7
FINANCIAL HIGHLIGHTS................ 8
PORTFOLIO OF INVESTMENTS............ 10
NOTES TO FINANCIAL STATEMENTS....... 18
APPROVAL OF ADVISORY AGREEMENTS..... 26
JUNE 30, 2011 SEMI-ANNUAL REPORT
SHAREHOLDERS' LETTER -- (unaudited)
Dear Shareholders,
We are pleased to present this semi-annual shareholder report for the
SunAmerica Money Market Fund and the SunAmerica Municipal Money Market Fund for
the six months ended June 30, 2011--a period wherein mixed economic data,
geopolitical events, Federal Reserve Board policy and supply/demand conditions
combined to push yields lower in both the taxable and tax-exempt money markets.
Leading indicators of economic growth were mixed during the semi-annual period.
During the first quarter of 2011, economic data was robust, especially in the
manufacturing sector. However, during the second quarter of 2011, economic
activity slowed. Consequent expectations for lower Gross Domestic Product (GDP)
growth along with the emergence of new challenges drove safe-haven trading.
More specifically, these challenges included political turmoil in the Middle
East and North Africa, which drove oil prices higher; a disastrous earthquake
and tsunami in Japan, which raised concerns about a disruption in the global
supply chain; and renewed fears of a sovereign debt restructuring in Europe's
troubled peripheral nations, which raised risk premiums across non-Treasury
fixed income sectors. The flight to quality that followed caused U.S. Treasury
yields to decline.
Also pushing yields lower at the short-term end of the U.S. Treasury yield
curve was the Federal Reserve Board's (the "Fed's") quantitative easing program
known as QE2. (QE2 was a program whereby the Fed purchased $600 billion of
long-term U.S. Treasury securities between November 2010 and the expiration of
the program on June 30, 2011.) Indeed, yields on three-month, six-month and
one-year Treasury securities fell nine basis points, nine basis points and ten
basis points, respectively, during the semi-annual period. (A basis point is
1/100/th/ of a percentage point.)
As U.S. Treasury yields declined, so, too, did money market yields. In April, a
newly imposed change in the calculation of the FDIC assessment fee for banks in
the U.S. caused acute compression in the overnight markets, setting a tone that
would carry throughout the remainder of the semi-annual period.
Through the entire semi-annual period, the Fed reinforced similar language as
had been in place for more than two years--that it intended to operate in an
ultra-low interest rate environment for an "extended period." Following its
June 2011 meeting, the Fed stated that it remained comfortable with increased
inflation expectations and softer economic growth and that neither was outside
of market expectations given muted reaction to these trends. The Fed decided to
keep the targeted federal funds rate in a zero to 0.25% range.
On the following pages, you will find detailed financial statements and
portfolio information for the SunAmerica Money Market Fund and SunAmerica
Municipal Money Market Fund for the semi-annual period ended June 30, 2011.
Though the money markets have posed challenges, we remain diligent in the
management of your assets. We value your ongoing confidence in us and look
forward to serving your investment needs in the future. As always, if
1
JUNE 30, 2011 SEMI-ANNUAL REPORT
SHAREHOLDERS' LETTER -- (unaudited) (continued)
you have any questions, or require additional information on these or other
SunAmerica Mutual Funds, you may contact your financial advisor or visit us at
www.sunamericafunds.com.
Sincerely,
/s/ Peter A. Harbeck
Peter A. Harbeck
President & CEO
SunAmerica Asset Management Corp.
--------
Past performance is no guarantee of future results.
An investment in the Funds is not insured or guaranteed by the Federal Deposit
Insurance Corporation (FDIC) or any other government agency. Although the Funds
seek to preserve the value of your investment at $1.00 per share, it is
possible to lose money by investing in the Funds.
2
SUNAMERICA MONEY MARKET FUNDS, INC.
EXPENSE EXAMPLE -- JUNE 30, 2011 -- (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, 2011 and held until June 30,
2011.
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, 2011" 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, 2011" 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, 2011" column does not include
administrative fees that may apply to qualified retirement plan accounts. See
the Funds' prospectus, your retirement plan documents and/or materials from
your financial adviser for a full description of these fees. Had these fees
been included, the "Expenses Paid During the Six Months Ended June 30, 2011"
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, 2011"
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, 2011" column does not
include administrative fees that may apply to qualified retirement plan
accounts. See the Funds' prospectus, your retirement plan documents and/or
materials from your financial adviser for a full description of these fees. Had
these fees been included, the "Expenses Paid During the Six Months Ended June
30, 2011" 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, qualified
retirement plan document and/or materials from your financial adviser 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.
3
SUNAMERICA MONEY MARKET FUNDS, INC.
EXPENSE EXAMPLE -- JUNE 30, 2011 -- (UNAUDITED) (CONTINUED)
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
FUND# AT JANUARY 1, 2011 AT JUNE 30, 2011 JUNE 30, 2011* AT JANUARY 1, 2011 AT JUNE 30, 2011 JUNE 30, 2011*
----- ------------------ ---------------- ---------------- ------------------ ----------------- ----------------
Money Market
Class A..... $1,000.00 $1,000.05 $1.04 $1,000.00 $1,023.75 $1.05
Class I..... $1,000.00 $1,000.05 $1.04 $1,000.00 $1,023.75 $1.05
Municipal
Money Market
Class A..... $1,000.00 $1,000.05 $1.09 $1,000.00 $1,023.70 $1.10
EXPENSE
RATIO AS OF
FUND# JUNE 30, 2011*
----- --------------
Money Market
Class A..... 0.21%
Class I..... 0.21%
Municipal
Money Market
Class A..... 0.22%
--------
* 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, your qualified
retirement plan document and/or materials from your financial adviser for
more information.
# During the stated period, the investment adviser and distributor either
waived/reimbursed a portion of or all of the fees/expenses and assumed a
portion of or all expenses for the Funds. As a result, if these fees and
expenses had not been waived/reimbursed, the "Actual/Hypothetical Ending
Account Value" would have been lower and the "Actual/Hypothetical Expenses
Paid During the Six Months Ended June 30, 2011" and the "Expense Ratios"
would have been higher.
4
SUNAMERICA MONEY MARKET FUNDS, INC.
STATEMENT OF ASSETS AND LIABILITIES -- JUNE 30, 2011 -- (UNAUDITED)
MONEY MARKET MUNICIPAL MONEY
FUND MARKET FUND
------------ ---------------
ASSETS:
Investment at value* (unaffiliated)................................ $580,943,202 $ 72,496,447
Repurchase agreements (cost approximates value).................... 85,909,000 --
------------ ------------
Total Investments................................................ $666,852,202 $ 72,496,447
------------ ------------
Cash............................................................... 874 1,440,087
Receivable for:
Fund shares sold................................................. 154,694 --
Sale of investments.............................................. -- 1,802,868
Dividends and interest........................................... 98,329 88,802
Prepaid expenses and other assets.................................. 7,668 3,472
Due from investment adviser for expense reimbursements/fee waivers. 323,788 30,436
Due from distributor for fee waivers............................... 79,861 8,905
------------ ------------
Total assets..................................................... 667,517,416 75,871,017
------------ ------------
LIABILITIES:
Payable for:
Fund shares redeemed............................................. 589,348 --
Investment advisory and management fees.......................... 269,506 20,779
Distribution and service maintenance fees........................ 80,951 8,908
Transfer agent fees and expenses................................. 134,568 15,029
Dividends payable................................................ 19,223 2,048
Directors' fees and expenses..................................... 26,841 2,497
Other accrued expenses............................................. 143,458 52,885
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Total liabilities................................................ 1,263,895 102,146
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Net Assets...................................................... $666,253,521 $ 75,768,871
============ ============
NET ASSETS REPRESENTED BY:
Common stock, $.001 par value (10 billion shares authorized)....... $ 667,420 $ 75,785
Paid-in capital.................................................... 666,827,726 75,719,227
------------ ------------
667,495,146 75,795,012
Accumulated undistributed net investment income (loss)............. (28,076) (1,624)
Accumulated realized gain(loss) on investments..................... (1,213,549) (24,517)
------------ ------------
Net assets...................................................... $666,253,521 $ 75,768,871
============ ============
CLASS A:
Net assets......................................................... $651,821,203 $ 75,768,871
Shares outstanding................................................. 652,983,909 $ 75,785,207
Net asset value and redemption price per share
(excluding any applicable contingent deferred sales charge)....... $ 1.00 $ 1.00
============ ============
CLASS I:
Net assets......................................................... $ 14,432,317 $ --
Shares outstanding................................................. 14,436,097 --
Net asset value and redemption price per share..................... $ 1.00 $ --
============ ============
*Amortized cost of investment securities (unaffiliated)............ $580,943,202 $ 72,496,447
============ ============
See Notes to Financial Statements
5
SUNAMERICA MONEY MARKET FUNDS, INC.
STATEMENT OF OPERATIONS -- FOR THE SIX MONTHS
ENDED JUNE 30, 2011 -- (UNAUDITED)
MONEY MARKET MUNICIPAL MONEY
FUND MARKET FUND
------------ ---------------
INVESTMENT INCOME:
Interest (unaffiliated)................................................................ $ 737,405 $ 85,274
----------- -----------
Total investment income............................................................. 737,405 85,274
----------- -----------
EXPENSES:
Investment advisory and management fees................................................ 1,683,552 127,733
Distribution and service maintenance fees:
Class A.............................................................................. 501,097 54,743
Transfer agent fees and expenses:
Class A.............................................................................. 764,427 80,290
Class I.............................................................................. 15,558 --
Registration fees:
Class A.............................................................................. 22,881 11,142
Class I.............................................................................. -- --
Custodian and accounting fees.......................................................... 69,991 20,948
Reports to shareholders................................................................ 39,938 3,884
Audit and tax fees..................................................................... 18,627 18,746
Legal fees............................................................................. 10,798 1,220
Directors' fees and expenses........................................................... 40,500 4,710
Other expenses......................................................................... 12,385 4,968
----------- -----------
Total expenses before fee waivers, expense reimbursements and custody credits....... 3,179,754 328,384
Fees waived and expenses reimbursed by investment adviser and distributor (Note 3).. (2,476,629) (246,780)
Custody credits earned on cash balances............................................. (67) (4)
----------- -----------
Net expenses........................................................................ 703,058 81,600
----------- -----------
Net investment income (loss)........................................................... 34,347 3,674
----------- -----------
Net realized gain (loss) on investments................................................ (2,442) (24)
----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS........................ $ 31,905 $ 3,650
=========== ===========
See Notes to Financial Statements
6
SUNAMERICA MONEY MARKET FUNDS, INC.
STATEMENT OF CHANGES IN NET ASSETS
MONEY MARKET FUND
--------------------------
FOR THE
SIX MONTHS
ENDED FOR THE YEAR
JUNE 30, ENDED
2011 DECEMBER 31,
(UNAUDITED) 2010
------------ ------------
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income (loss)........................................................... $ 34,347 $ 74,097
Net realized gain (loss) on investments................................................ (2,442) 1,057,317
------------ ------------
Net increase (decrease) in net assets resulting from operations.......................... $ 31,905 $ 1,131,414
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (Class A)........................................................ (33,464) (72,203)
Net investment income (Class I)........................................................ (700) (1,684)
------------ ------------
Total distributions to shareholders...................................................... (34,164) (73,887)
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS (NOTE 5). (68,390,292) (41,636,074)
------------ ------------
TOTAL INCREASE (DECREASE) IN NET ASSETS.................................................. (68,392,551) (40,578,547)
------------ ------------
NET ASSETS:
Beginning of period...................................................................... 734,646,072 775,224,619
------------ ------------
End of period*........................................................................... $666,253,521 $734,646,072
============ ============
*Includes accumulated undistributed net investment income (loss)......................... $ (28,076) $ (28,259)
============ ============
MUNICIPAL MONEY
MARKET FUND
-------------------------
FOR THE
SIX MONTHS
ENDED FOR THE YEAR
JUNE 30, ENDED
2011 DECEMBER 31,
(UNAUDITED) 2010
----------- ------------
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income (loss)........................................................... $ 3,674 $ 8,762
Net realized gain (loss) on investments................................................ (24) 9
----------- ------------
Net increase (decrease) in net assets resulting from operations.......................... $ 3,650 $ 8,771
----------- ------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (Class A)........................................................ (3,650) (25,869)
Net investment income (Class I)........................................................ -- --
----------- ------------
Total distributions to shareholders...................................................... (3,650) (25,869)
----------- ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS (NOTE 5). (6,638,369) (28,106,880)
----------- ------------
TOTAL INCREASE (DECREASE) IN NET ASSETS.................................................. (6,638,369) (28,123,978)
----------- ------------
NET ASSETS:
Beginning of period...................................................................... 82,407,240 110,531,218
----------- ------------
End of period*........................................................................... $75,768,871 $ 82,407,240
=========== ============
*Includes accumulated undistributed net investment income (loss)......................... $ (1,624) $ (1,648)
=========== ============
See Notes to Financial Statements
7
SUNAMERICA MONEY MARKET FUNDS, INC.
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
-------
12/31/06 $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(4) 995,968 0.94 1.86
12/31/09 1.00 0.00 (0.00) 1.00 0.12(5) 760,577 0.78(3) 0.14(3)
12/31/10 1.00 0.00 (0.00) 1.00 0.01(6) 719,671 0.29(3) 0.01(3)
06/30/11(7) 1.00 0.00 (0.00) 1.00 0.00 651,821 0.21(3)(8) 0.01(3)(8)
CLASS I
-------
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(4) 16,998 0.80(3) 1.97(3)
12/31/09 1.00 0.00 (0.00) 1.00 0.20(5) 14,648 0.69(3) 0.21(3)
12/31/10 1.00 0.00 (0.00) 1.00 0.01(6) 14,975 0.29(3) 0.01(3)
06/30/11(7) 1.00 0.00 (0.00) 1.00 0.00 14,432 0.21(3)(8) 0.01(3)(8)
--------
(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):
12/31/06 12/31/07 12/31/08 12/31/09 12/31/10 06/30/11(7)(8)
-------- -------- -------- -------- -------- --------------
Class A............. -- % -- % -- % 0.21% 0.64% 0.73%
Class I............. 0.05 0.04 0.18 0.34 0.51 0.57
(4) Total return includes the effect of payments by an affiliate. Without these
payments, the total return would have been 0.82% for Class A shares and
0.96% for Class I shares.
(5) Total return includes the effect of payments by an affiliate. Without these
payments, the total return would have been (0.88)% for Class A shares and
remained unchanged for Class I shares.
(6) The Fund's performance figure was increased by less than 0.01% from the
effect of payments by an affiliate (Note 3)
(7) Unaudited
(8) Annualized
See Notes to Financial Statements
8
SUNAMERICA MONEY MARKET FUNDS, INC.
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
-------
12/31/06 $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)
12/31/09 1.00 0.00 (0.00) 1.00 0.02 110,531 0.52(3) 0.02(3)
12/31/10 1.00 0.00 (0.00) 1.00 0.03 82,407 0.29(3) 0.01(3)
06/30/11(4) 1.00 0.00 (0.00) 1.00 0.00 75,769 0.22(3)(5) 0.01(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):
12/31/06 12/31/07 12/31/08 12/31/09 12/31/10 06/30/11(4)(5)
-------- -------- -------- -------- -------- --------------
Class A............. -- % 0.01% 0.01% 0.32% 0.57% 0.68%
(4) Unaudited
(5) Annualized
See Notes to Financial Statements
9
SUNAMERICA MONEY MARKET FUND
PORTFOLIO PROFILE -- JUNE 30, 2011 -- (UNAUDITED)
INDUSTRY ALLOCATION*
U.S. Government Agencies.......... 49.5%
Repurchase Agreement.............. 12.9
Foreign Banks..................... 9.2
U.S. Government Treasuries........ 6.9
Money Center Banks................ 6.7
Commercial Banks-Canadian......... 5.4
Diversified Financial Services.... 5.3
Finance........................... 2.3
Super-Regional Banks-US........... 1.9
-----
100.1%
=====
Weighted average days to maturity. 45.9
CREDIT QUALITY ALLOCATION@#
A-1......................... 99.8%
Not Rated+.................. 0.2
-----
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 form the data source.
10
SUNAMERICA MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS -- JUNE 30, 2011 -- (UNAUDITED)
PRINCIPAL VALUE
SECURITY DESCRIPTION AMOUNT (NOTE 2)
SHORT-TERM INVESTMENT SECURITIES -- 87.2%
CERTIFICATES OF DEPOSIT -- 21.7%
Barclays Bank PLC
0.22% due 09/08/11.................. $11,900,000 $ 11,900,000
Citibank NA
0.15% due 07/26/11.................. 12,100,000 12,100,000
Deutsche Bank AG
0.23% due 11/30/11.................. 12,360,000 12,360,000
Deutsche Bank AG FRS
0.26% due 07/08/11.................. 13,200,000 13,200,000
Rabobank Nederland NV
0.34% due 09/28/11.................. 11,900,000 11,900,000
Royal Bank of Canada FRS
0.26% due 09/14/11.................. 12,800,000 12,800,000
Royal Bank of Canada FRS
0.29% due 06/18/12.................. 12,000,000 12,000,000
State Street Bank & Trust Co.
0.12% due 07/15/11.................. 11,000,000 11,000,000
Svenska Handelsbanken
0.19% due 09/08/11.................. 12,150,000 12,150,000
Svenska Handelsbanken
0.21% due 07/21/11.................. 12,200,000 12,200,000
UBS AG FRS
0.26% due 09/09/11.................. 11,000,000 11,000,000
UBS AG
0.37% due 03/06/12.................. 12,100,000 12,100,000
------------
TOTAL CERTIFICATES OF DEPOSIT
(amortized cost $144,710,000)...... 144,710,000
------------
COMMERCIAL PAPER -- 3.5%
Citigroup Funding, Inc.
0.17% due 07/06/11.................. 11,000,000 10,999,740
Nordea North America, Inc.
0.20% due 07/28/11.................. 12,000,000 11,998,200
------------
TOTAL COMMERCIAL PAPER
(amortized cost $22,997,940)....... 22,997,940
------------
U.S. CORPORATE NOTES -- 3.4%
Bank of America NA FRS
0.27% due 08/22/11.................. 12,900,000 12,900,000
Citibank NA
FDIC Guar. Notes
1.25% due 09/22/11.................. 310,000 310,666
JPMorgan Chase & Co. FRS
0.35% due 02/22/12.................. 9,700,000 9,707,095
------------
TOTAL U.S. CORPORATE NOTES
(amortized cost $22,917,761)....... 22,917,761
------------
MEDIUM TERM NOTES -- 2.2%
General Electric Capital Corp. FRS
0.33% due 08/15/11.................. 4,250,000 4,250,933
General Electric Capital Corp. FRS
0.52% due 10/21/11.................. 10,700,000 10,710,178
------------
TOTAL MEDIUM TERM NOTES
(amortized cost $14,961,111)....... 14,961,111
------------
U.S. GOVERNMENT AGENCIES -- 49.5%
Agency for International Development
Panama FRS
0.57% due 05/15/15.................. 1,100,524 1,101,973
PRINCIPAL VALUE
SECURITY DESCRIPTION AMOUNT (NOTE 2)
------------------------------------------------------------
Federal Farm Credit Bank
0.10% due 11/10/11................ $11,350,000 $ 11,345,838
0.23% due 08/11/11............... 4,200,000 4,198,900
Federal Farm Credit Bank FRS
0.16% due 03/27/12................ 10,300,000 10,299,241
Federal Home Loan Bank
0.08% due 07/06/11................ 7,360,000 7,359,918
0.08% due 07/20/11............... 4,950,000 4,949,791
0.09% due 09/19/11............... 7,250,000 7,248,550
0.09% due 10/24/11............... 7,250,000 7,247,916
0.10% due 07/27/11............... 7,500,000 7,499,458
0.17% due 08/15/11............... 4,750,000 4,748,991
0.27% due 09/19/11............... 4,080,000 4,077,552
Federal Home Loan Bank FRS
0.10% due 08/01/11................ 2,250,000 2,249,816
0.10% due 08/12/11............... 15,300,000 15,298,933
0.14% due 08/01/11............... 10,250,000 10,249,721
0.14% due 09/15/11............... 3,750,000 3,749,753
0.14% due 09/23/11............... 16,000,000 15,999,635
0.14% due 02/17/12............... 7,600,000 7,597,508
0.28% due 01/12/12............... 26,500,000 26,500,000
0.29% due 01/20/12............... 13,220,000 13,219,266
0.30% due 12/15/11............... 12,770,000 12,770,000
Federal Home Loan Mtg. Corp.
0.06% due 08/12/11................ 7,360,000 7,359,485
0.09% due 09/22/11............... 12,360,000 12,357,435
0.09% due 10/13/11............... 6,000,000 5,998,440
0.11% due 12/15/11............... 3,300,000 3,298,316
0.11% due 01/31/12............... 7,500,000 7,495,096
0.16% due 08/03/11............... 7,000,000 6,998,973
0.17% due 08/10/11............... 5,150,000 5,149,027
0.18% due 08/23/11............... 2,570,000 2,569,319
0.20% due 07/07/11............... 5,220,000 5,219,826
0.20% due 07/11/11............... 11,450,000 11,449,364
0.20% due 07/19/11............... 7,920,000 7,919,208
0.20% due 07/27/11............... 7,950,000 7,948,852
0.20% due 12/07/11............... 2,400,000 2,397,880
0.20% due 12/14/11............... 2,500,000 2,497,695
0.21% due 12/06/11............... 4,000,000 3,996,313
0.22% due 07/26/11............... 9,750,000 9,748,511
0.24% due 08/03/11............... 3,580,000 3,579,212
0.24% due 09/14/11............... 4,000,000 3,998,000
Federal Home Loan Mtg. Corp. FRS
0.15% due 08/10/12................ 12,830,000 12,826,431
Federal National Mtg. Assoc.
0.11% due 11/14/11................ 4,950,000 4,947,943
0.12% due 09/01/11............... 6,250,000 6,248,708
0.15% due 01/17/12............... 4,920,000 4,915,900
Federal National Mtg. Assoc. FRS
0.09% due 07/27/11................ 13,000,000 12,999,814
------------
TOTAL U.S. GOVERNMENT AGENCIES
(amortized cost $329,632,508).... 329,632,508
------------
U.S. GOVERNMENT TREASURIES -- 6.9%
United States Treasury Bills
0.10% due 07/07/11................ 10,500,000 10,500,000
0.10% due 12/22/11............... 7,400,000 7,396,602
0.20% due 07/28/11............... 3,500,000 3,499,475
0.21% due 07/28/11............... 2,000,000 1,999,693
11
SUNAMERICA MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS -- JUNE 30, 2011 -- (UNAUDITED) (CONTINUED)
PRINCIPAL VALUE
SECURITY DESCRIPTION AMOUNT (NOTE 2)
-----------------------------------------------------------------
U.S. GOVERNMENT TREASURIES (CONTINUED)
0.22% due 09/22/11.................. $ 2,000,000 $ 1,999,009
0.23% due 09/22/11.................. 10,350,000 10,344,631
0.24% due 09/22/11.................. 5,000,000 4,997,210
United States Treasury Notes
1.88% due 06/15/12................... 4,910,000 4,987,262
------------
TOTAL U.S. GOVERNMENT TREASURIES
(amortized cost $45,723,882)........ 45,723,882
------------
TOTAL SHORT-TERM INVESTMENT SECURITIES -- 87.2%
(amortized cost $580,943,202)....... 580,943,202
------------
REPURCHASE AGREEMENT -- 12.9%
UBS Securities LLC Joint Repurchase
Agreement(1)
(cost $85,909,000)................... 85,909,000 85,909,000
------------
TOTAL INVESTMENTS --
(amortized cost $666,852,202)(2).... 100.1% 666,852,202
LIABILITIES IN EXCESS OF OTHER ASSETS. (0.1) (598,681)
----------- ------------
NET ASSETS............................ 100.0% $666,253,521
=========== ============
--------
(1) See Note 2 for details of Joint Repurchase Agreements.
(2) At June 30, 2011, the cost of securities for federal income tax purposes
was the same for book purposes.
FDIC-- Federal Deposit Insurance Corp.
FRS-- Floating Rate Securities
The rates shown on FRS are the current interest rates at June 30, 2011 and
unless noted otherwise, the dates shown are the original maturity dates.
The following is a summary of the inputs used to value the Fund's net assets as
of June 30, 2011 (see Note 2):
LEVEL 1--UNADJUSTED LEVEL 2--OTHER LEVEL 3--SIGNIFICANT
QUOTED PRICES OBSERVABLE INPUTS UNOBSERVABLE INPUTS TOTAL
------------------- ----------------- -------------------- ------------
Assets:
Short-Term Investment Securities:
Certificates of Deposit........... $-- $144,710,000 $-- $144,710,000
Commercial Paper.................. -- 22,997,940 -- 22,997,940
U.S. Corporate Notes.............. -- 22,917,761 -- 22,917,761
Medium Term Notes................. -- 14,961,111 -- 14,961,111
U.S. Government Agencies.......... -- 329,632,508 -- 329,632,508
U.S. Government Treasuries........ -- 45,723,882 -- 45,723,882
Repurchase Agreement............... -- 85,909,000 -- 85,909,000
--- ------------ --- ------------
TOTAL................................ $-- $666,852,202 $-- $666,852,202
=== ============ === ============
See Notes to Financial Statements
12
SUNAMERICA MUNICIPAL MONEY MARKET FUND
PORTFOLIO PROFILE -- JUNE 30, 2011 -- (UNAUDITED)
ALLOCATION BY STATES*
New York.......................... 10.6%
California........................ 10.1
Illinois.......................... 8.6
New Jersey........................ 8.4
Kentucky.......................... 6.9
Texas............................. 6.5
Michigan.......................... 5.7
Massachusetts..................... 5.4
North Carolina.................... 4.7
Colorado.......................... 4.1
Alaska............................ 2.6
South Dakota...................... 2.2
Maine............................. 2.2
Louisiana......................... 2.0
Utah.............................. 2.0
Arizona........................... 1.8
Pennsylvania...................... 1.7
Florida........................... 1.7
Wyoming........................... 1.5
North Dakota...................... 1.3
Ohio.............................. 1.2
Wisconsin......................... 1.2
Missouri.......................... 1.1
Iowa.............................. 0.9
Connecticut....................... 0.9
Delaware.......................... 0.2
Maryland.......................... 0.1
Registered Investment Company..... 0.1
----
95.7%
====
Weighted average days to maturity. 7.4
CREDIT QUALITY ALLOCATION@#
A-1......................... 77.1%
SP-1........................ 5.2
Not Rated+ ................. 17.7
-----
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.
13
SUNAMERICA MUNICIPAL MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS -- JUNE 30, 2011 -- (UNAUDITED)
PRINCIPAL VALUE
SECURITY DESCRIPTION AMOUNT (NOTE 2)
SHORT-TERM INVESTMENT SECURITIES -- 95.7%
ALASKA -- 2.6%
Alaska State International Airports VRDN
Series A
(LOC-State Street Bank and Trust Co.)
0.04% due 10/01/30+............................. $2,000,000 $2,000,000
----------
ARIZONA -- 1.8%
Maricopa County, Arizona Industrial
Development Multi Family Housing VRDN
Series A
(LOC-Wells Fargo Bank N.A.)
0.23% due 12/01/39+............................. 1,350,000 1,350,000
----------
CALIFORNIA -- 10.1%
Bay Area Toll Authority VRDN
Series B-2
(LOC-JP Morgan Chase Bank)
0.03% due 04/01/47+............................. 1,400,000 1,400,000
Big Bear Lake, California Industrial VRDN
Series A
(LOC-KBC Bank N.V.)
0.09% due 12/01/28+............................. 2,000,000 2,000,000
Metropolitan Water District of Southern
California VRDN
Series B-3
0.02% due 07/01/35+............................. 1,800,000 1,800,000
San Bernardino Country, California Multi Family
Housing VRDN
Series A
0.06% due 02/15/27+............................. 100,000 100,000
San Bernardino Country, California Multi Family
Housing VRDN
Series A
0.07% due 05/15/29+............................. 400,000 400,000
San Bernardino Country, California Multi Family
Housing VRDN
Series A
0.08% due 05/15/29+............................. 100,000 100,000
San Jose, California Redevelopment
Agency VRDN
Series B
(LOC-JP Morgan Chase Bank)
0.04% due 08/01/32+............................. 250,000 250,000
University of California Regents Medical
Center VRDN
Series B-1
0.04% due 05/15/32+............................. 1,635,000 1,635,000
----------
7,685,000
----------
COLORADO -- 4.1%
Colorado Housing & Finance Authority VRDN
Series D
0.09% due 10/15/16+............................. 500,000 500,000
Colorado Housing & Finance Authority VRDN
Series F
0.09% due 10/15/16+............................. 500,000 500,000
Colorado Housing & Finance Authority VRDN
Series I
0.12% due 10/01/35+............................. 335,000 335,000
PRINCIPAL VALUE
SECURITY DESCRIPTION AMOUNT (NOTE 2)
-----------------------------------------------------------------------
COLORADO (CONTINUED)
Colorado Housing & Finance Authority VRDN
Series I-B2
0.12% due 04/01/38+............................ $1,305,000 $1,305,000
Colorado Housing & Finance Authority VRDN
Series I-B3
0.09% due 04/01/38+............................ 495,000 495,000
----------
3,135,000
----------
CONNECTICUT -- 0.9%
Connecticut State Housing Finance Authority
VRDN
Series A-1
0.04% due 05/15/39+............................ 645,000 645,000
----------
DELAWARE -- 0.2%
University of Delaware VRDN
Series B
0.05% due 11/01/34+............................ 160,000 160,000
----------
FLORIDA -- 1.7%
Liberty County, Florida Industrial
Development VRDN
(LOC-Bank of America N.A.)
0.13% due 10/01/28+............................ 1,250,000 1,250,000
----------
ILLINOIS -- 8.6%
Chicago, Illinois Board of Education VRDN
Series B
(LOC-JP Morgan Chase Bank)
0.05% due 03/01/36+............................ 700,000 700,000
Chicago, Illinois O'Hare International
Airport VRDN
Series B
(LOC-Societe Generale)
0.12% due 01/01/18+............................ 600,000 600,000
Chicago, Illinois VRDN
Series F
0.20% due 01/01/42+............................ 600,000 600,000
Chicago, Illinois Wastewater
Transmission VRDN
Series C-2
(LOC-Bank of America N.A.)
0.04% due 01/01/39+............................ 100,000 100,000
Illinois Finance Authority VRDN
Series A
0.04% due 11/01/38+............................ 200,000 200,000
Illinois Finance Authority VRDN
Series E
0.13% due 11/15/37+............................ 695,000 695,000
Illinois Finance Authority VRDN
Series E-1
(LOC-JP Morgan Chase Bank)
0.05% due 08/01/43+............................ 600,000 600,000
Jackson-Union Counties, Illinois Regional Port
District VRDN
(LOC-Wachovia Bank N.A.)
0.09% due 04/01/24+............................ 3,050,000 3,050,000
----------
6,545,000
----------
14
SUNAMERICA MUNICIPAL MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS -- JUNE 30, 2011 -- (UNAUDITED) (CONTINUED)
PRINCIPAL VALUE
SECURITY DESCRIPTION AMOUNT (NOTE 2)
SHORT-TERM INVESTMENT SECURITIES (CONTINUED)
IOWA -- 0.9%
Iowa Finance Authority Health Facilities VRDN
Series E
(LOC-Bank of America N.A.)
0.04% due 07/01/39+............................ $ 700,000 $ 700,000
----------
KENTUCKY -- 6.9%
Breckinridge County, Kentucky Lease
Program VRDN
(LOC-U.S. Bank N.A.)
0.07% due 12/01/29+............................ 1,050,000 1,050,000
Breckinridge County, Kentucky Lease
Program VRDN
Series A
(LOC-U.S. Bank N.A.)
0.07% due 02/01/31+............................ 1,400,000 1,400,000
Kentucky Housing Corp. VRDN
Series F
0.14% due 07/01/29+............................ 1,090,000 1,090,000
Kentucky Housing Corp. VRDN
Series I
0.14% due 01/01/32+............................ 995,000 995,000
Louisville & Jefferson County Kentucky
Visitors & Convention Commission VRDN
Series B
0.05% due 12/01/22+............................ 495,000 495,000
Trimble County Association of Counties Leasing
Trust Lease Program VRDN
Series A
(LOC-U.S. Bank N.A.)
0.04% due 12/01/38+............................ 185,000 185,000
----------
5,215,000
----------
LOUISIANA -- 2.0%
East Baton Rouge Parish, Louisiana Pollution
Control VRDN
0.01% due 03/01/22+............................ 1,500,000 1,500,000
----------
MAINE -- 2.2%
Maine State Housing Authority Mortgage VRDN
Series B-3
0.14% due 11/15/38+............................ 1,690,000 1,690,000
----------
MARYLAND -- 0.1%
Maryland Health & Higher Education Facilities
Authority VRDN
Series B
0.12% due 12/01/15+............................ 100,000 100,000
----------
MASSACHUSETTS -- 5.4%
Massachusetts Health & Educational Facilities
Authority VRDN
Series A-2
0.05% due 12/01/37+............................ 900,000 900,000
Massachusetts State VRDN
Series B
0.05% due 12/01/30+............................ 1,775,000 1,775,003
Massachusetts State VRDN
Series B
0.07% due 03/01/26+............................ 1,375,000 1,375,000
----------
4,050,003
----------
MICHIGAN -- 5.7%
Holt, Michigan Public Schools VRDN
0.12% due 05/01/30+............................ 3,095,000 3,095,000
PRINCIPAL VALUE
SECURITY DESCRIPTION AMOUNT (NOTE 2)
-----------------------------------------------------------------------
MICHIGAN (CONTINUED)
Michigan Finance Authority
Series D-3
(LOC-ScotiaBank)
2.00% due 08/22/11............................. $1,250,000 $1,252,841
----------
4,347,841
----------
MISSOURI -- 1.1%
Missouri State Health & Educational Facilities
Authority VRDN
Series B
0.05% due 10/01/24+............................ 500,000 500,000
Missouri State Health & Educational Facilities
Authority VRDN
Series B-1
(LOC-Bank of America N.A.)
0.03% due 10/01/35+............................ 350,000 350,000
----------
850,000
----------
NEW JERSEY -- 8.4%
New Jersey Economic Development
Authority VRDN
0.02% due 07/01/31+............................ 2,750,000 2,750,000
New Jersey State Housing & Mortgage Finance
Agency Multi Family VRDN
Series A
0.15% due 05/01/28+............................ 385,000 385,000
New Jersey State Turnpike Authority VRDN
Series D
(LOC-ScotiaBank)
0.05% due 01/01/24+............................ 3,250,000 3,250,000
----------
6,385,000
----------
NEW YORK -- 10.6%
City of New York, New York VRDN
Series A-8
(LOC-JP Morgan Chase Bank)
0.03% due 08/01/18+............................ 1,000,000 1,000,000
City of New York, New York VRDN
Series E-4
(LOC-BNP Paribas)
0.05% due 08/01/21+............................ 300,000 300,000
City of New York, New York VRDN
Series E-5
(LOC-JP Morgan Chase Bank)
0.03% due 08/01/19+............................ 150,000 150,000
City of New York, New York VRDN
Series H-3
0.05% due 08/01/19+............................ 500,000 500,000
City of New York, New York VRDN
Series H-3
0.05% due 08/01/23+............................ 600,000 600,000
Long Island Power Authority, VRDN
Series 3-B
(LOC-Westdeutsche Landesbank AG)
0.06% due 05/01/33+............................ 100,000 100,000
Metropolitan Transportation Authority VRDN
Series D-1
0.13% due 11/01/29+............................ 1,700,000 1,700,000
15
SUNAMERICA MUNICIPAL MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS -- JUNE 30, 2011 -- (UNAUDITED) (CONTINUED)
PRINCIPAL VALUE
SECURITY DESCRIPTION AMOUNT (NOTE 2)
SHORT-TERM INVESTMENT SECURITIES (CONTINUED)
NEW YORK (CONTINUED)
New York City Municipal Water Finance
Authority Water & Sewer System VRDN
Series B-4
0.06% due 06/15/23+.......................... $1,675,000 $1,675,000
New York City Municipal Water Finance
Authority Water & Sewer System VRDN
Series BB-3
0.05% due 06/15/34+.......................... 1,175,000 1,175,000
New York City Municipal Water Finance
Authority Water & Sewer System VRDN
Series CC-1
0.02% due 06/15/38+.......................... 700,000 700,000
Triborough Bridge & Tunnel Authority VRDN
Series AB
0.10% due 01/01/19+.......................... 120,000 120,000
----------
8,020,000
----------
NORTH CAROLINA -- 4.7%
City of Winston-Salem, North Carolina VRDN
Series C
1.00% due 08/01/11........................... 1,400,000 1,400,000
North Carolina Medical Care Commission
Hospital VRDN
Series A
0.06% due 10/01/35+.......................... 1,400,000 1,400,000
Wilmington, North Carolina VRDN
0.08% due 06/01/15+.......................... 755,000 755,000
----------
3,555,000
----------
NORTH DAKOTA -- 1.3%
North Dakota State Housing Finance
Agency VRDN
Series B
0.11% due 07/01/34+.......................... 1,000,000 1,000,000
----------
OHIO -- 1.2%
Ohio Housing Finance Agency Multi Family
Housing VRDN
(LOC-Federal Home Loan Bank)
0.11% due 10/01/36+.......................... 890,000 890,000
----------
PENNSYLVANIA -- 1.7%
Pittsburgh, Pennsylvania Water & Sewer
Authority VRDN
Series B-1
0.11% due 09/01/33+.......................... 1,300,000 1,300,000
----------
SOUTH DAKOTA -- 2.2%
South Dakota Housing Development Authority
VRDN
Series C-1
0.10% due 05/01/32+.......................... 1,700,000 1,700,000
----------
TEXAS -- 6.5%
Tarrant County Cultural Education Facilities
Finance Corp. VRDN
Series A
(LOC-JP Morgan Chase Bank)
0.07% due 10/01/41+.......................... 1,600,000 1,600,000
Texas State VRDN
Series B
0.10% due 04/01/36+.......................... 400,000 400,000
PRINCIPAL VALUE
SECURITY DESCRIPTION AMOUNT (NOTE 2)
--------------------------------------------------------------------
TEXAS (CONTINUED)
Texas State Economic Development
2.00% due 08/31/11........................ $2,500,000 $ 2,506,869
Texas State Economic Development VRDN
Series A-2
0.08% due 12/01/29+....................... 400,000 400,000
-----------
4,906,869
-----------
UTAH -- 2.0%
Utah Housing Corp. Single Family
Mortgage VRDN
Series A
0.08% due 07/01/36+....................... 1,495,000 1,495,000
-----------
WISCONSIN -- 1.2%
Wisconsin Health & Educational Facilities
Authority VRDN
Series B
(LOC-U.S. Bank N.A.)
0.07% due 12/01/33+....................... 800,000 800,000
Wisconsin Housing & Economic Development
Authority VRDN
Series C
0.13% due 03/01/34+....................... 75,000 75,000
-----------
875,000
-----------
WYOMING -- 1.5%
Sweetwater County, Wyoming Pollution
Control VRDN
Series A
(LOC-Barclays Bank PLC)
0.05% due 07/01/15+....................... 1,100,000 1,100,000
-----------
REGISTERED INVESTMENT COMPANIES -- 0.1%
SSGA Tax Free Money Market Fund............ 46,734 46,734
-----------
TOTAL INVESTMENTS --
(amortized cost $72,496,447)(1)............ 95.7% 72,496,447
OTHER ASSETS LESS LIABILITIES................ 4.3 3,272,424
---------- -----------
NET ASSETS................................... 100.0% $75,768,871
========== ===========
--------
+ The security's effective maturity date is less than a year.
(1) At June 30, 2011, the cost of securities for federal income tax purposes
was the same for book purposes.
LOC-- Letter of Credit
VRDN-- Variable Rate Demand Notes
The rates shown on VRDN are the current interest rate at June 30, 2011 and
unless noted otherwise, the dates shown are the original maturity dates.
16
SUNAMERICA MUNICIPAL MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS -- JUNE 30, 2011 -- (UNAUDITED) (CONTINUED)
The following is a summary of the inputs used to value the Fund's net assets as
of June 30, 2011 (see Note 2):
LEVEL 1--UNADJUSTED LEVEL 2--OTHER LEVEL 3--SIGNIFICANT
QUOTED PRICES OBSERVABLE INPUTS UNOBSERVABLE INPUTS TOTAL
------------------- ----------------- -------------------- -----------
Assets:
Short-Term Investment Securities:
California........................ $-- $ 7,685,000 $-- $ 7,685,000
Illinois.......................... -- 6,545,000 -- 6,545,000
Kentucky.......................... -- 5,215,000 -- 5,215,000
Massachusetts..................... -- 4,050,003 -- 4,050,003
Michigan.......................... -- 4,347,841 -- 4,347,841
New Jersey........................ -- 6,385,000 -- 6,385,000
New York.......................... -- 8,020,000 -- 8,020,000
Texas............................. -- 4,906,869 -- 4,906,869
Other States*..................... -- 25,295,000 -- 25,295,000
Registered Investment Companies.... -- 46,734 -- 46,734
--- ----------- --- -----------
TOTAL................................ $-- $72,496,447 $-- $72,496,447
=== =========== === ===========
--------
* Sum of all other states each of which individually has an aggregate market
value of less than 5% of net assets. For a detailed presentation of
securities by state, please refer to the Portfolio of Investments.
See Notes to Financial Statements
17
SUNAMERICA MONEY MARKET FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS -- JUNE 30, 2011 -- (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
by investing 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
by investing primarily in high-quality money market instruments selected
primarily on the basis of quality and yield, 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.
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 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 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 and
those differences could be significant. 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 1940 Act, the Corporation's Board of
Directors ("Board") has adopted procedures intended to stabilize the Funds'
net asset
18
SUNAMERICA MONEY MARKET FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS -- JUNE 30, 2011 -- (UNAUDITED)
(CONTINUED)
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 Funds' 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.
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. There is no single standard
for making fair value determinations, which may result in prices that vary
from those of other funds.
The various inputs that may be used to determine the value of the Funds'
investments are summarized into 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, referenced indicies, quoted prices in
inactive markets, adjusted quoted prices in active markets,
adjusted quoted prices on foreign equity securities that
were adjusted in accordance with pricing procedures
approved by the Board, 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,
2011 are reported on a schedule following the Portfolio of Investments.
REPURCHASE AGREEMENTS: The Funds, along with other affiliated registered
investment companies, pursuant to procedures adopted by the Board and
applicable guidance from 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, plus accrued interest, to ensure that the value, at
the time the agreement is entered into, is equal to at least 102% of the
repurchase price, including accrued interest. In the event of default of the
obligation to repurchase, a Fund has the right to liquidate the collateral
and apply the proceeds in satisfaction of the obligation. If the seller
defaults and the value of the collateral declines or if bankruptcy
proceedings are commenced with respect to the seller of the security,
realization of the collateral by the Funds may be delayed or limited.
As of June 30, 2011, the following portfolios held an undivided interest in
the joint repurchase agreement with UBS Securities LLC:
PERCENTAGE PRINCIPAL
FUND INTEREST AMOUNT
---- ---------- -----------
Money Market...................................... 42.95% $85,909,000
19
SUNAMERICA MONEY MARKET FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS -- JUNE 30, 2011 -- (UNAUDITED)
(CONTINUED)
As of such date, the repurchase agreement in that joint account and the
collateral therefore were as follows:
UBS Securities LLC, dated June 30, 2011, bearing interest at a rate of 0.01%
per annum, with a principal amount of $200,000,000, a repurchase price of
$200,000,056, and a maturity date of July 1, 2011. The repurchase agreement
is collateralized by the following:
INTEREST MATURITY
TYPE OF COLLATERAL RATE DATE PRINCIPAL AMOUNT VALUE
------------------ -------- --------- ---------------- ------------
U.S. Treasury Inflation Index
Bonds....................... 3.63% 4/15/2028 $110,569,200 $204,000,174
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 from settlement date,
except when collection is not expected; 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.
Each Fund intends to comply with the requirements of the Internal Revenue
Code applicable to regulated investment companies and distribute all of its
taxable income, including any capital gains, to its shareholders. Therefore,
no federal tax provisions are required. Each Fund is considered a separate
entity for tax purposes. The Funds file U.S. federal and certain state
income tax returns. With few exceptions, the Funds are no longer subject to
U.S. federal and state tax examinations by tax authorities for tax years
ending before 2007.
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.
20
SUNAMERICA MONEY MARKET FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS -- JUNE 30, 2011 -- (UNAUDITED)
(CONTINUED)
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
FUND ASSETS FEES
---- ----------------------------- ----------
Money Market.................. $0 - $600 million 0.50%
next $900 million 0.45%
(greater than) $ 1.5 billion 0.40%
Municipal Money Market........ (greater than) $0 0.35%
The Municipal Money Market Fund is subadvised by AIG Asset Management
(U.S.), LLC ("AMG") pursuant to a subadvisory agreement with SunAmerica. AMG
is an indirect wholly-owned subsidiary of AIG and an affiliate of
SunAmerica. AMG 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. For purposes of
the waived fee and/or reimbursed expense calculations, annual Fund operating
expenses shall not include extraordinary expenses, as determined under
generally accepted accounting principles, or acquired fund fees and
expenses. This fee waiver and expense reimbursement will continue in effect
indefinitely, unless terminated by the Board, including a majority of the
Disinterested Directors.
FUND PERCENTAGE
---- ----------
Money Market Class I.............................. 0.80%
Municipal Money Market Class A.................... 0.95
For the period ended June 30, 2011, pursuant to the contractual expense
limitations in the above table, SunAmerica waived fees and/or reimbursed
expenses as follows:
FUND
----
Money Market Class I........................................ $227
Municipal Money Market Class A.............................. --
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.
For the period ended June 30, 2011, SunAmerica voluntarily waived fees
and/or reimbursed expenses as follows:
FUND
----
Money Market Class A........................................ $1,935,892
Money Market Class I........................................ 39,413
Municipal Money Market Class A.............................. 192,037
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 their Class A shares (each a "Plan" and
collectively, the "Plans") in accordance with the provisions of Rule
21
SUNAMERICA MONEY MARKET FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS -- JUNE 30, 2011 -- (UNAUDITED)
(CONTINUED)
12b-1 under the 1940 Act. 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.
The Plans provide that the Class A shares of the Funds shall pay the
Distributor an account maintenance fee 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 to waive up to 0.15% of the fees it receives under the Plans.
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, 2011, SACS voluntarily waived fees as follows:
FUND
----
Money Market Class A.............................. $501,097
Municipal Money Market Class A.................... 54,743
SACS receives the proceeds of contingent deferred sales charges paid by
investors in connection with certain redemptions of each Fund's Class A
shares. SACS has advised the Funds for the period ended June 30, 2011, the
proceeds received from redemptions are as follows:
CONTINGENT DEFERRED SALES CHARGES
---------------------------------
FUND CLASS A
---- ---------------------------------
Money Market.................. $120
Municipal Money Market........ --
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, 2011, the Funds incurred the following expenses which
are included in the 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
FUND EXPENSES JUNE 30, 2011
---- -------- -------------
Money Market Class A............... $734,942 $117,130
Money Market Class I............... 15,397 2,574
Municipal Money Market Class A..... 80,290 13,061
As of June 30, 2011, 84% of the Money Market Fund's total outstanding shares
and 99% 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 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 of $1,050,000, for the year ended
December 31, 2010.
22
SUNAMERICA MONEY MARKET FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS -- JUNE 30, 2011 -- (UNAUDITED)
(CONTINUED)
On September 22, 2008, American International Group, Inc. ("AIG"), the
ultimate parent of SunAmerica, SACS, SAFS and AMG, entered into a revolving
credit facility ("FRBNY Credit Facility") with the Federal Reserve Bank of
New York ("NY Fed"). In connection with the FRBNY Credit Facility, on March
4, 2009, AIG issued its Series Perpetual, Convertible, Participating
Preferred Stock (the "Series C Preferred Stock") to the AIG Credit Facility
Trust, a trust established for the sole benefit of the United States
Treasury (the "Trust"). The Series C Preferred Stock was entitled to
approximately 77.8% of the voting power of AIG's outstanding stock.
On January 14, 2011, AIG completed a series of previously announced
integrated transactions (the "Recapitalization") to recapitalize AIG. In the
Recapitalization, AIG repaid the NY Fed approximately $21 billion in cash,
representing all amounts owing under the FRBNY Credit Facility and the
facility was terminated. Also as part of the Recapitalization, (i) the
Series C Preferred Stock was exchanged for shares of AIG Common Stock, which
was then transferred to the U.S. Department of the Treasury, and the Trust,
which had previously held all shares of the Series C Preferred Stock, was
terminated, and, (ii) AIG's Series E Preferred Shares and Series F Preferred
Shares were exchanged for shares of AIG Common Stock and a new Series G
Preferred Shares (which functions as a $2 billion commitment to provide
funding that AIG will have the discretion and option to use). As a result of
the Recapitalization, the United States Treasury held a majority of
outstanding shares of AIG Common Stock.
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, 2010
-------------------------------------------------------------------
LONG-TERM
GAINS/CAPITAL UNREALIZED LONG-TERM
ORDINARY AND OTHER APPRECIATION ORDINARY CAPITAL
FUND INCOME LOSSES (DEPRECIATION) INCOME GAINS TAX EXEMPT
---- -------- ------------- -------------- -------- --------- ----------
Money Market....................... $ -- $(1,211,006) $ -- $73,887 $ -- $ --
Municipal Money Market............. 186* (24,493) -- -- -- 25,869
-
* Tax Exempt distributable earnings
For Federal income tax purposes, the Funds indicated below have capital loss
carryforwards, which expire in the year indicated, as of December 31, 2010,
which are available to offset future capital gains, if any:
FUND CAPITAL LOSS CARRYFORWARD
---- ---------------------------------------------
2012 2013 2014 2015 2016 2017 2018
------ ------- ---- ---- ---------- ---- ----
Money Market.................. $ -- $ -- $ -- $ -- $1,211,006 $ -- $ --
Municipal Money Market........ 8,053 16,252 -- -- 188 -- --
23
SUNAMERICA MONEY MARKET FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS -- JUNE 30, 2011 -- (UNAUDITED)
(CONTINUED)
Note 5. Capital Share Transactions
Transactions in each class of shares of the Funds, all at $1.00 per share,
for the year period ended June 30, 2011 and for the prior year were as
follows:
MONEY MARKET FUND
-------------------------------------------------------
CLASS A CLASS I
---------------------------- -------------------------
FOR THE FOR THE
SIX MONTHS SIX MONTHS
ENDED FOR THE YEAR ENDED FOR THE YEAR
JUNE 30, ENDED JUNE 30, ENDED
2011 DECEMBER 31, 2011 DECEMBER 31,
(UNAUDITED) 2010 (UNAUDITED) 2010
------------- ------------- ----------- ------------
Shares sold............. $ 258,018,345 $ 433,199,045 $ 4,734,297 $ 18,197,271
Reinvested dividends.... 32,379 69,808 687 1,650
Shares redeemed......... (325,898,381) (475,207,558) (5,277,619) (17,896,290)
------------- ------------- ----------- ------------
Net increase (decrease). $ (67,847,657) $ (41,938,705) $ (542,635) $ 302,631
============= ============= =========== ============
MUNICIPAL MONEY MARKET FUND
---------------------------
CLASS A
---------------------------
FOR THE
SIX MONTHS
ENDED FOR THE YEAR
JUNE 30, ENDED
2011 DECEMBER 31,
(UNAUDITED) 2010
------------ -------------
Shares sold............. $ 54,566,747 $ 140,417,935
Reinvested dividends.... 3,641 25,847
Shares redeemed......... (61,208,757) (168,550,662)
------------ -------------
Net increase (decrease). $ (6,638,369) $ (28,106,880)
============ =============
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 clause 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) permit 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.
24
SUNAMERICA MONEY MARKET FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS -- JUNE 30, 2011 -- (UNAUDITED)
(CONTINUED)
The following amounts for the Retirement Plan Liabilities are included in
the Directors' fees and expenses line on the Statement of Assets and
Liabilities and the amounts for the Retirement Plan Expenses are included in
the Director's fees and expenses line on the Statement of Operations.
RETIREMENT PLAN RETIREMENT PLAN RETIREMENT PLAN
LIABILITY EXPENSE PAYMENTS
--------------- --------------- ---------------
FUND AS OF JUNE 30, 2011
---- -----------------------------------------------
Money Market.................. $25,143 $668 $3,774
Municipal Money Market........ 1,661 71 246
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 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, 2011, the
Funds did not participate in the program.
25
SUNAMERICA MONEY MARKET FUNDS, INC.
APPROVAL OF ADVISORY AGREEMENTS -- JUNE 30, 2011 -- (UNAUDITED)
The Board of Directors (the "Board," the members of which are referred to as
"Directors") of SunAmerica Money Market Funds, Inc. (the "Corporation"),
including the Directors who are not "interested persons," as defined in
Section 2(a)(19) of the Investment Company Act of 1940, as amended (the "1940
Act"), of the Corporation or its separate series (each a "Fund" and
collectively, the "Funds"), SunAmerica Asset Management Corp. ("SunAmerica") or
AIG Asset Management (U.S.), LLC. ("AMG") (the "Disinterested Directors"),
approved the continuation of the Investment Advisory and Management Agreement
between the Corporation, on behalf of the Funds, and SunAmerica (the "Advisory
Agreement") for a one-year period ending June 30, 2012 at an in-person meeting
held on June 14, 2011 (the "Meeting"). The Corporation currently consists of
two separate Funds, including the SunAmerica Money Market Fund (the "Money
Market Fund") and SunAmerica Municipal Money Market Fund (the "Municipal Money
Market Fund"). At the Meeting, the Board also approved the continuation of the
Subadvisory Agreement between SunAmerica and AMG (the "Subadvisory Agreement")
with respect to the Municipal Money Market Fund for a one-year period ending
June 30, 2012.
In accordance with Section 15(c) of the 1940 Act, the Board requested and
SunAmerica and AMG, where applicable, provided materials relating to the
Board's consideration of whether to approve the continuation of the Advisory
Agreement and Subadvisory Agreement. These materials included (a) a summary of
the services provided to the Funds by SunAmerica and its affiliates;
(b) information independently compiled and prepared by Lipper, Inc. ("Lipper")
on fees and expenses of the Funds, and the investment performance of the Fund
as compared with a peer group of funds; (c) information on the profitability of
SunAmerica, and its affiliates, and a discussion relating to indirect benefits;
(d) a report on economies of scale; (e) information on SunAmerica's and AMG's
risk management process; (f) a discussion on general compliance policies and
procedures; (g) a summary of brokerage and soft dollar practices;
(h) information about the key personnel of SunAmerica, and its affiliates, and
AMG, that are involved in the investment management, administration, compliance
and risk management activities with respect to the Funds, as well as current
and projected staffing levels and compensation practices; and (i) an internal
comparison of management fees received for other mutual funds and accounts with
similar investment objectives and strategies for which SunAmerica serves as
adviser or subadviser, as applicable.
In determining whether to approve the continuation of the Advisory Agreement
and Subadvisory Agreement, the Board, including Disinterested Directors,
considered the following information:
NATURE, EXTENT AND QUALITY OF SERVICES PROVIDED BY SUNAMERICA AND AMG
The Board, including the Disinterested Directors, considered the nature,
quality and extent of services to be provided by SunAmerica and AMG. The Board
noted that the services include acting as investment manager and adviser to the
Funds, managing the daily business affairs of the Funds, and obtaining and
evaluating economic, statistical and financial information to formulate and
implement investment policies. Additionally, the Board observed that SunAmerica
provides office space, bookkeeping, accounting, legal and compliance, clerical
and administrative services and has authorized its officers and employees, if
elected, to serve as officers or Directors of the Funds without compensation.
Finally, the Board noted that SunAmerica is responsible for monitoring and
reviewing the activities of affiliated and unaffiliated third-party service
providers, including AMG. In addition to the quality of the advisory services,
the Board considered the quality of the administrative and non-investment
advisory services provided to the Funds pursuant to the Advisory Agreement and
noted that such services include (i) preparing disclosure documents, such as
the prospectus, the statement of additional information and shareholder
reports; (ii) assisting with daily accounting and pricing; (iii) organizing
Board meetings and preparing the materials for such Board meetings;
(iv) providing legal and compliance support; and (v) performing other
administrative functions necessary for the operation of the Funds, such as tax
reporting and fulfilling regulatory filing requirements.
In connection with the services provided by SunAmerica, the Board analyzed the
structure and duties of SunAmerica's fund administration, accounting,
operations, legal and compliance departments and concluded that they were
adequate to meet the needs of the Funds. The Board also reviewed the personnel
responsible for providing advisory services to the Funds and other key
personnel of SunAmerica in addition to current and projected staffing levels
and compensation practices and concluded, based on its experience and
interaction with SunAmerica, that: (i) SunAmerica is able to retain quality
portfolio managers, analysts and other personnel; (ii) SunAmerica exhibited a
high level of diligence and attention
26
SUNAMERICA MONEY MARKET FUNDS, INC.
APPROVAL OF ADVISORY AGREEMENTS -- JUNE 30, 2011 -- (UNAUDITED)
(CONTINUED)
to detail in carrying out its advisory and other responsibilities under the
Advisory Agreement; (iii) SunAmerica had been responsive to requests of the
Board; and (iv) SunAmerica had kept the Board apprised of developments relating
to the Funds and the industry in general. The Board concluded that the nature
and extent of services provided under the Advisory Agreement were reasonable
and appropriate in relation to the management fee and that the quality of
services continues to be high.
The Board also considered SunAmerica's reputation and long-standing
relationship with the Funds and considered the benefit to shareholders of
investing in funds that are part of a family of funds offering a variety of
types of mutual funds and shareholder services. The Board considered
SunAmerica's experience in providing management and investment advisory and
administrative services to advisory clients and noted that as of March 31,
2011, SunAmerica managed, advised and/or administered approximately $45.3
billion in assets. The Board also considered SunAmerica's code of ethics and
its risk management process, and that it has developed internal procedures,
adopted by the Board, for monitoring compliance with the investment objectives,
policies and restrictions of the Funds as set forth in the Funds' prospectuses.
Additionally, the Board considered SunAmerica's compliance and regulatory
history.
With respect to the Municipal Money Market Fund, for which SunAmerica has
delegated daily investment management responsibilities to AMG, the Board
considered the nature, quality and extent of subadvisory services provided by
AMG. The Board observed that AMG is responsible for providing investment
management services, including investment research, advice and supervision, and
determining which securities will be purchased or sold by the Municipal Money
Market, subject to the oversight and review of SunAmerica. The Board reviewed
AMG's history, structure, size, visibility and resources, which are needed to
attract and retain highly qualified investment professionals. The Board
reviewed the personnel that are responsible for providing subadvisory services
to the Municipal Money Market Fund in addition to current and projected
staffing levels and compensation practices and concluded, based on their
experience with AMG, that: (i) AMG is able to retain high quality portfolio
managers and other investment personnel; (ii) AMG exhibited a high level of
diligence and attention to detail in carrying out its responsibilities under
the Subadvisory Agreement; and (iii) AMG had been responsive to requests of the
Board and of SunAmerica. The Board considered that AMG has developed internal
policies and procedures for monitoring compliance with the investment
objectives, policies and restrictions of the Municipal Money Market Fund as set
forth in the Funds' prospectus. The Board also considered AMG's code of ethics,
compliance and regulatory history and risk management process. The Board noted
that the AMG has not experienced any material regulatory problems nor have they
been involved in any material litigation or administrative proceedings that
would potentially impact it from effectively serving as a subadviser to the
Municipal Money Market Fund. The Board also discussed prior compliance matters
with respect to AIGGIC. The Board concluded that the nature and extent of
services to be provided by AMG under the Subadvisory Agreement were reasonable
and appropriate in relation to the subadvisory fees and that the quality of
services continues to be high.
INVESTMENT PERFORMANCE
The Board, including the Disinterested Directors, also considered the
investment performance of SunAmerica and AMG with respect to the Funds that
they manage. In connection with its review, the Board received and reviewed
information regarding the investment performance of the Funds as compared to
each Fund's peer group ("Peer Group") and/or peer universe ("Peer Universe") as
independently determined by Lipper and to an appropriate index or combination
of indices, including the Funds' benchmarks. The Board was provided with a
description of the methodology used by Lipper to select the funds in the Peer
Groups and Peer Universes. The Board also noted that it regularly reviews the
performance of the Funds throughout the year. The Board noted that, while it
monitors performance of the Funds closely, it generally attaches more
importance to performance over relatively long periods of time, typically three
to five years.
It was noted that performance information was for the periods ended March 31,
2011. The Board also noted that it regularly reviews the performance of the
Funds throughout the year.
MONEY MARKET FUND. The Board considered that the Fund's performance was at the
median of its Peer Group/Universe for the one-year period and below the median
of its Peer Group/Universe for the three- and five-year periods. The Board also
considered that the Fund underperformed its Lipper Index for the one-, three-
and five-year periods. The Board took
27
SUNAMERICA MONEY MARKET FUNDS, INC.
APPROVAL OF ADVISORY AGREEMENTS -- JUNE 30, 2011 -- (UNAUDITED)
(CONTINUED)
into account management's discussion of the Fund's performance and noted the
Fund's improved more recent performance.
MUNICIPAL MONEY MARKET FUND. The Board considered that the Fund's performance
was above the median of its Peer Group/Universe for the one-year period and
below the median of its Peer Group/Universe for the three- and five-year
periods. The Board also considered that the Fund equaled its Lipper Index for
the one-year period and underperformed its Lipper Index for the three- and
five-year periods. The Board took into account management's discussion of the
Fund's performance and noted the Fund's improved more recent performance.
The Board noted that money market funds, in general, have been operating in a
difficult and low-yielding market environment for an extended period of time.
The Board also considered the voluntary fee waivers and/or expense
reimbursements being made by SunAmerica with respect to the Funds in order to
avoid a negative yield. The Board concluded that the Funds' performance was
satisfactory in light of all factors considered.
CONSIDERATION OF THE MANAGEMENT FEES AND SUBADVISORY FEE AND THE COST OF THE
SERVICES AND PROFITS TO BE REALIZED BY SUNAMERICA AND AMG AND THEIR AFFILIATES
FROM THE RELATIONSHIP WITH THE FUNDS
The Board, including the Disinterested Directors, received and reviewed
information regarding the fees to be paid by the Funds to SunAmerica pursuant
to the Advisory Agreement and the fees paid by SunAmerica to AMG pursuant to
the Subadvisory Agreement. The Board examined this information in order to
determine the reasonableness of the fees in light of the nature and quality of
services to be provided and any potential additional benefits to be received by
SunAmerica, AMG or their affiliates in connection with providing such services
to the Funds.
To assist in analyzing the reasonableness of the management fee for each of the
Funds, the Board received reports independently prepared by Lipper. The reports
showed comparative fee information for each Fund's Peer Group and/or Peer
Universe as determined by Lipper, including rankings within each category. In
considering the reasonableness of the management fee to be paid by each Fund to
SunAmerica, the Board reviewed a number of expense comparisons, including:
(i) contractual and actual management fees; and (ii) actual total operating
expenses. In considering each Fund's total operating expenses, the Board
analyzed the level of fee waivers and/or expense reimbursements and the net
expense caps contractually agreed upon by SunAmerica with respect to Class A
shares of the Municipal Money Market Fund and Class I shares of the Money
Market Fund. The Board further considered that, unlike the funds in the Peer
Group and Peer Universe, the fee waivers and/or reimbursements being made by
SunAmerica with respect to the Funds are only reflected in the total expenses
category of the Lipper reports, rather than also being reflected as specific
management fee waivers in the actual management fees category of the Lipper
reports. As a result, the Board took into account that the actual management
fees presented by Lipper for the funds in the Peer Group and Peer Universe may
appear lower on a relative basis. The Board then compared each Fund's net
expense ratio to those of other funds within its Peer Group and/or Peer
Universe as a guide to help assess the reasonableness of the management fee for
the Funds. The Board acknowledged that it was difficult to make precise
comparisons with other funds in the Peer Groups and Peer Universes since the
exact nature of services provided under the various fund agreements is often
not apparent. The Board noted, however, that the comparative fee information
provided by Lipper as a whole was useful in assessing whether SunAmerica was
providing services at a cost that was competitive with other, similar funds.
MONEY MARKET FUND. The Board considered that the Fund's actual management fees
were above the median of its Peer Group and Peer Universe. The Board also
considered that the Fund's total expenses were below the median of its Peer
Group and Peer Universe. The Board noted that the Fund's advisory fee contains
breakpoints and took into account management's discussion regarding the Fund's
expenses.
MUNICIPAL MONEY MARKET FUND. The Board considered that the Fund's actual
management fees were above the median of its Peer Group and Peer Universe. The
Board also considered that the Fund's total expenses were below the median of
its Peer Group and Peer Universe. The Board took into account management's
discussion regarding the Fund's expenses.
28
SUNAMERICA MONEY MARKET FUNDS, INC.
APPROVAL OF ADVISORY AGREEMENTS -- JUNE 30, 2011 -- (UNAUDITED)
(CONTINUED)
The Board further considered management fees received by SunAmerica with
respect to other mutual funds and accounts with similar investment strategies
to the Money Market Fund. The Board also considered that the mutual funds
identified as similar to the Money Market Fund are sold only in the variable
annuity market and, accordingly, are in an entirely different Lipper
classification, with a peer group consisting of funds underlying variable
insurance products. The Board noted the management fee paid by the Money Market
Fund was reasonable as compared to the fees SunAmerica was receiving from other
mutual funds and accounts for which it serves as adviser or subadviser. The
Board did not consider services and fees paid under the investment advisory
contracts that SunAmerica has with other registered investment companies or
other types of clients with similar investment strategies to the Municipal
Money Market Fund since SunAmerica informed the Board that there were no such
similar funds or accounts to the Municipal Money Market Fund.
The Board also received and reviewed information regarding the fees paid by
SunAmerica to AMG pursuant to the Subadvisory Agreement. To assist in analyzing
the reasonableness of the subadvisory fee, the Board received a report
independently prepared by Lipper. The report showed comparative fee information
of the Municipal Money Market Fund's Peer Group that the Directors used as a
guide to help assess the reasonableness of the subadvisory fee. The Directors
noted that Peer Group information as a whole was useful in assessing whether
AMG was providing services at a cost that was competitive with other similar
funds. The Directors also considered that the subadvisory fee is paid by
SunAmerica out of its management fee and not by the Municipal Money Market
Fund, and that subadvisory fees may vary widely within a Peer Group for various
reasons, including market pricing demands, existing relationships, experience
and success, and individual client needs. The Board further considered the
amount of subadvisory fees paid out by SunAmerica and the amount of the
management fees which it retained.
The Board did not consider services and fees paid under the investment advisory
contracts that AMG has with other registered investment companies or other
types of clients with similar investment strategies to the Municipal Money
Market Fund since AMG informed the Board that there were no such similar funds
or accounts to the Municipal Money Market Fund.
The Board also considered SunAmerica's profitability and the benefits
SunAmerica and its affiliates received from its relationship with the Funds.
The Board received and reviewed financial statements relating to SunAmerica's
financial condition and profitability with respect to the services it provided
the Funds and considered how profit margins could affect SunAmerica's ability
to attract and retain high quality investment professionals and other key
personnel. The Board was also provided with a profitability analysis that
detailed the revenues earned and the expenses incurred by SunAmerica and its
affiliates that provide services to the Funds on a Fund by Fund basis. In
particular, the Board considered the contractual fee waiver and/or expense
reimbursements agreed to by SunAmerica, the voluntary fee waivers being made by
SunAmerica with respect to the Funds to avoid a negative yield.
The Board considered the profitability of SunAmerica under the Advisory
Agreement, and considered the profitability of SunAmerica's affiliates under
the Rule 12b-1 Plans, Service Agreement and Administrative and Shareholder
Services Agreements. Additionally, the Board considered whether SunAmerica, AMG
and their affiliates received any indirect benefits from the relationship with
the Funds. Specifically, the Board observed that AIG Federal Savings Bank, an
affiliate of SunAmerica and AMG, serves as custodian with respect to certain
shareholder retirement accounts that are administered by SunAmerica and
receives a fee payable by the qualifying shareholders. The Board further
considered whether there were any collateral or "fall-out" benefits that
SunAmerica and its affiliates may derive as a result of their relationship with
the Funds. The Board noted that SunAmerica believes that any such benefits are
de minimis and do not impact the reasonableness of the management fees.
The Board also reviewed financial statements from AMG and its affiliates, and
considered whether AMG had the financial resources necessary to attract and
retain high quality investment management personnel and to continue to provide
the high quality of services that it had provided to the Municipal Money Market
Fund to date.
The Board concluded that SunAmerica and AMG had the financial resources
necessary to perform their obligations under the Advisory Agreement and
Subadvisory Agreement and to continue to provide the Funds with the high
quality services that they had provided in the past. The Board also concluded
that the management fee and subadvisory fees were reasonable in light of the
factors discussed above.
29
SUNAMERICA MONEY MARKET FUNDS, INC.
APPROVAL OF ADVISORY AGREEMENTS -- JUNE 30, 2011 -- (UNAUDITED)
(CONTINUED)
ECONOMIES OF SCALE
The Board, including the Disinterested Directors, considered whether the
shareholders would benefit from economies of scale and whether there was
potential for future realization of economies with respect to the Funds. The
Board considered that as a result of being part of the SunAmerica fund complex,
the Funds share common resources and may share certain expenses, and if the
size of the complex increases, each Fund could incur lower expenses than they
otherwise would achieve as stand-alone entities. The Board also considered the
anticipated efficiencies in the processes of SunAmerica as it adds labor and
capital to expand the scale of operations. The Board also took into account
that the Money Market Fund had management fee arrangements that included
breakpoints that will adjust the fee downward as the size of the Fund
increases, thereby allowing the shareholders to potentially participate in any
economies of scale. The Board further noted that SunAmerica has agreed to
contractually cap the total annual operating expenses of the Class I shares of
the Money Market Fund and the Class A of the Municipal Money Market Fund, at
certain levels. The Board observed that those expense caps benefited
shareholders by keeping total fees down even in the absence of breakpoints or
economies of scale. The Board concluded that the Funds' management fee
structures were reasonable and that it would continue to review fees in
connection with the renewal of the Advisory Agreement, including whether the
implementation of breakpoints would be appropriate in the future due to an
increase in asset size or otherwise.
The Board did not review specific information regarding whether there have been
economies of scale with respect to AMG's management of the Municipal Money
Market Fund because it regards that information as less relevant at the
subadviser level. Rather, the Board considered information regarding economies
of scale in the context of the renewal of the Advisory Agreement.
OTHER FACTORS
In consideration of the Advisory Agreement and Subadvisory Agreement with
respect to the Funds, the Board also received information regarding
SunAmerica's and AMG's brokerage and soft dollar practices. The Board
considered that SunAmerica and AMG are responsible for decisions to buy and
sell securities for the portfolios they manage, selection of broker-dealers and
negotiation of commission rates. The Board also considered the benefits
SunAmerica and AMG may derive from soft dollar arrangements, including
arrangements under which brokers provide brokerage and/or research services to
SunAmerica and/or AMG in return for allocating brokerage; however, the Board
noted that the securities in which the Funds invest are traded primarily in the
over-the-counter market on a "net" basis with dealers acting as principal for
their own accounts without a stated commission (although the price of the
security usually includes a profit to the dealer) and, therefore, the Funds
generally do not incur brokerage commissions. Accordingly, the Board observed
that SunAmerica and AMG typically would not receive soft dollar benefits in
return for allocating the Funds' brokerage transactions. The Board further
observed that when making purchases of new issues with fixed underwriting fees,
SunAmerica or AMG may designate the use of broker dealers who have agreed to
provide certain statistical, research and other information.
CONCLUSION
After a full and complete discussion, the Board approved the Advisory Agreement
with respect to the Funds and the Subadvisory Agreement with respect to the
Municipal Money Market Fund, each for a one-year period ending June 30, 2012.
Based upon their evaluation of all these factors in their totality, the Board,
including the Disinterested Directors, was satisfied that the terms of the
Advisory Agreement and Subadvisory Agreement were fair and reasonable and in
the best interests of the Funds and the Funds' shareholders. In arriving at a
decision to approve the Advisory Agreement and Subadvisory Agreement, the Board
did not identify any single factor or group of factors as all-important or
controlling, but considered all factors together. The Disinterested Directors
were also assisted by the advice of independent counsel in making this
determination.
30
[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
Dr. Judith L. Craven PORTFOLIO SECURITIES Commission, without
William F. Devin A description of the charge, upon request, by
Stephen J. Gutman policies and proce-dures call-ing (800) 858-8850
Richard W. Grant that the Funds use to or on the U.S. Securities
Peter A. Harbeck determine how to vote and Exchange Commission's
William J. Shea proxies relating to website at
secu-rities held in the http://www.sec.gov.
OFFICERS Funds' portfolios which
John T. Genoy, President is available in the DISCLOSURE OF QUARTERLY
and Chief Funds' State-ment of PORTFOLIO HOLDINGS
Executive Officer Additional Information The Fund is required to
Donna M. Handel, may be obtained without file its com-plete
Treasurer charge upon re-quest, by schedule of portfolio
James Nichols, Vice calling (800) 858-8850. holdings with the U.S.
President This information is also Securities and Exchange
Timothy Pettee, Vice available from the EDGAR Commission for its first
President database on the U.S. and third fiscal quarters
Katherine Stoner, Chief Secu-rities and Exchange on Form N-Q. The Fund's
Compliance Officer Commission's website at Forms N-Q are available
Gregory N. Bressler, http://www.sec.gov. on the U.S. Securities
Chief Legal Officer and Exchange Commission's
and Secretary DELIVERY OF SHAREHOLDER website at
Nori L. Gabert, Vice DOCUMENTS http://www.sec.gov. You
President and The Funds have adopted a can also review and
Assistant Secretary policy that allows them obtain copies of the
Kathleen Fuentes, to send only one copy of Forms N-Q at the U.S.
Assistant Secretary a Fund's prospectus, Securities and Exchange
John E. McLean, proxy material, annual Commission's Public
Assistant Secretary report and semi-annual Refer-ence Room in
Gregory R. Kingston, report (the "shareholder Washington, DC
Vice President and documents") to (information on the
Assistant Treasurer shareholders with operation of the Public
Diedre L. Shepherd, multiple accounts Reference Room may be
Assistant Treasurer residing at the same ob-tained by calling
Matthew J. Hackethal, "household." This 1-800-SEC-0330).
Anti-Money Laundering practice is called
Compliance Officer householding and reduces This report is submitted
Fund expenses, which solely for the general
INVESTMENT ADVISER benefits you and other information of
SunAmerica Asset shareholders. Unless the shareholders of the Fund.
Management Corp. Funds receive Distribution of this
Harborside Financial instructions to the report to persons other
Center con-trary, you will only than shareholders of the
3200 Plaza 5 receive one copy of the Fund is authorized only
Jersey City, NJ shareholder documents. in connection with a
07311-4992 The Funds will continue currently effective
to household the prospectus, setting forth
DISTRIBUTOR share-holder documents details of the Fund,
SunAmerica Capital indefinitely, until we which must precede or
Services, Inc. are instructed otherwise. accompany this report.
Harborside Financial If you do not wish to
Center participate in The accompanying report
3200 Plaza 5 householding please has not been audited by
Jersey City, NJ contact Shareholder independent accountants
07311-4992 Services at (800) and accordingly no
858-8850 ext. 6010 or opinion has been
SHAREHOLDER SERVICING send a written request expressed thereon.
AGENT with your name, the name
SunAmerica Fund of your fund(s) and your
Services, Inc. account member(s) to
Harborside Financial SunAmerica Mutual Funds
Center c/o BFDS, P.O. Box
3200 Plaza 5 219186, Kansas City MO,
Jersey City, NJ 64121-9186. We will
07311-4992 resume individual
mailings for your account
CUSTODIAN AND TRANSFER within thirty (30) days
AGENT of receipt of your
State Street Bank and request.
Trust Company
P.O. Box 419572 PROXY VOTING RECORD ON
Kansas City, MO SUNAMERICA MONEY MARKET
64141-6572 FUNDS
Information regarding how
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.
31
[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 LINK TO "GO PAPERLESS!!"
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.
This fund report must be preceded by or accompanied by a prospectus.
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 - 6/11
[LOGO]
AIG
Sun America
Mutual Funds
Item 2. Code of Ethics
Not applicable.
Item 3. Audit Committee Financial Expert.
Not applicable.
Item 4. Principal Accountant Fees and Services.
Not applicable.
Item 5. Audit Committee of Listed Registrants.
Not applicable.
Item 6. 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 6, 2011
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 6, 2011
By: /s/ Donna M. Handel
------------------------------
Donna M. Handel
Treasurer
Date: September 6, 2011