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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM N-CSR
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CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-3807
SunAmerica Money Market Funds, Inc.
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(Exact name of registrant as specified in charter)
Harborside Financial Center, 3200 Plaza 5 Jersey City, NJ 07311
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(Address of principal executive offices) (Zip code)
John T. Genoy
Senior Vice President
SunAmerica Asset Management Corp.
Harborside Financial Center,
3200 Plaza 5
Jersey City, NJ 07311
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(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: December 31, 2011
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Item 1. Reports to Stockholders
[PHOTO]
ANNUAL REPORT 2011
SUNAMERICA
Money Market Funds
[LOGO]
DECEMBER 31, 2011 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......................................... 5
STATEMENT OF ASSETS AND LIABILITIES..................... 7
STATEMENT OF OPERATIONS................................. 8
STATEMENT OF CHANGES IN NET ASSETS...................... 9
FINANCIAL HIGHLIGHTS.................................... 10
PORTFOLIO OF INVESTMENTS................................ 12
NOTES TO FINANCIAL STATEMENTS........................... 20
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM. 28
DIRECTORS AND OFFICERS INFORMATION...................... 29
SHAREHOLDER TAX INFORMATION............................. 32
DECEMBER 31, 2011 ANNUAL REPORT
SHAREHOLDERS' LETTER -- (UNAUDITED)
Dear Shareholders,
We are pleased to present this annual report for the SunAmerica Money Market
Fund and the SunAmerica Municipal Money Market Fund for the 12 months ended
December 31, 2011 - a period wherein mixed economic data, international
geopolitical events, Federal Reserve Board (the "Fed") policy and supply/demand
conditions combined to push yields in both the taxable and tax-exempt money
markets lower.
Global economic growth remained sluggish yet positive during the annual period,
but new challenges emerged, including European sovereign debt crises, political
unrest in the Middle East and North Africa, natural and nuclear disasters in
Japan, gridlock in the U.S. Congress over the raising of the U.S. debt ceiling,
and an unprecedented downgrade of U.S. sovereign debt from AAA to AA+ by
Standard & Poor's. While such events caused great volatility in the financial
markets broadly, the Fed kept the targeted federal funds rate in its near-zero
range throughout. The Fed cited that the U.S. economy had been expanding
moderately, notwithstanding some apparent slowing in global economic growth.
Indeed, indicators pointed to some improvement in overall labor market
conditions. Also, household spending continued to advance, although business
fixed investment appeared to be increasing less rapidly. Inflation moderated
during 2011, and longer-term inflation expectations remained relatively stable.
Meanwhile, the Fed's quantitative easing program known as QE2, designed to
boost the economy via the purchase of $600 billion of long-term U.S. Treasury
securities, expired on schedule on June 30, 2011. In August, the Fed took the
unprecedented step of declaring that it would maintain its accommodative rate
policy well into 2013, as the Fed anticipated that economic conditions,
including low rates of resource utilization, subdued inflation trends and
stable inflation expectations were likely to continue to warrant exceptionally
low levels of the federal funds rate for an extended period. In September 2011,
the Fed introduced a program dubbed Operation Twist, wherein the Fed extends
the maturity of its U.S. Treasury security holdings with the goal of lowering
longer-term interest rates and thereby spur spending and investment. The result
of the Fed's actions was that already low yields at the short-term end of the
U.S. Treasury yield curve, or spectrum of maturities, were pushed even lower.
As U.S. Treasury yields declined, so, too, did money market yields.
Another factor impacting money market yields during the annual period was
supply/demand conditions. Beginning in the second calendar quarter and
continuing through much of the annual period, demand increased and supply
decreased, causing the money market yield curve to flatten, meaning the
differential in yields between longer and shorter-term maturities narrowed. The
shift in supply was caused by two factors. Supply contracted in part because in
April 2011 the Federal Deposit Insurance Corporation (FDIC) altered its fee
formula charged to commercial banks. This resulted in banks being required to
maintain more capital and thus they were less likely to lend collateral via
repurchase agreements. Supply also decreased when political gridlock in the
U.S. Congress caused the U.S. Treasury Department to eliminate issuance of
Supplemental Financing Program* bills in June 2011 ahead of the August deadline
to increase the nation's debt ceiling. The impact of these two factors combined
as the U.S. economy was displaying signs of slowing. Meanwhile, demand for
securities perceived to be a relatively safe haven soared, as a flight to
quality ensued with investors' growing risk aversion. The combination of high
demand and short supply caused rates to decline further.
All told, yields on three-month, six-month and one-year Treasury securities
fell 10 basis points, 13 basis points and 17 basis points+, respectively,
during the annual period.
On the following pages, you will find a brief discussion from the portfolio
managers of the SunAmerica Money Market Fund and SunAmerica Municipal Money
Market Fund regarding the Funds' annual results and highlighting key strategies
pursued. You will also find the financial statements and portfolio information
for each of the Funds for the annual period ended December 31, 2011.
1
SHAREHOLDERS' LETTER -- (UNAUDITED) (CONTINUED)
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 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.
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Past performance is no guarantee of future results.
*The Supplemental Financing Program (SFP) is a program enacted by the U.S.
Treasury Department to provide supplementary funding to the Fed to offset the
financial strain due to the creation of various liquidity programs and
facilities during the financial crisis of 2008. The Department began allowing
its $200 billion worth of 56-day SFP bills to diminish as they matured to help
avoid exceeding the U.S. debt limit.
+A basis point is 1/100/th/ of a percentage point.
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 FUND
ANDREW DOULOS, PORTFOLIO MANAGER
SUNAMERICA ASSET MANAGEMENT CORP.
The SunAmerica Money Market Fund (Class A) returned 0.01%* for the annual
period ended December 31, 2011, as compared with the three-month T-Bill
index/1/, which returned 0.08% for the same period.
Fund performance was affected most by historically low interest rates that
persisted throughout 2011. Yields on money market securities moved up and down
within a rather tight range throughout the annual period, with one-month
certificates of deposit (CDs) yielding approximately 0.22% at year end compared
to roughly 0.20% at the start of the year, but averaging 0.16% for the annual
period as a whole.
While money market yields were low throughout the annual period, the Fund
continued to seek current income to the extent consistent with the liquidity
and stability of principal. We were able to navigate interest rate risk by
adjusting the Fund's weighted average maturity/2/ as market conditions shifted.
We were able to mitigate potential credit risk by buying high quality,
creditworthy names, which helped buoy the Fund's performance.
More specifically, given the low yield environment that existed throughout
the year, we employed a barbell investment strategy, with greater weightings in
fixed-rate securities at the short-term end of the yield curve, or spectrum of
maturities, and in longer-dated floating-rate securities. This strategy enabled
us to ensure a cushion of additional near-term liquidity, i.e. one to seven
days, and to garner the somewhat greater yield, albeit a modest gain given the
flattening of the yield curve during the annual period, available from
investments with longer-dated maturities, i.e. those with reset dates of 90
days.
Throughout the annual period, the Fund maintained a weighted average
maturity below the 60-day maximum mandated by applicable regulatory
requirements. Indeed, the Fund's weighted average maturity was managed to
achieve a range between 45 to 50 days for most of the annual period. At the end
of the annual period, we did shorten the Fund's weighted average maturity a
bit, and as of December 31, 2011, the Fund's weighted average maturity stood at
approximately 41 days.
The Fund was focused primarily on investments in government agency
securities and U.S. Treasury securities, with lesser allocations to
shorter-term repurchase agreements, commercial paper and certificates of
deposit throughout the annual period.
--------
Past performance is no guarantee of future results.
*SunAmerica has voluntarily waived fees and/or reimbursed expenses of the Fund
during the annual period ended December 31, 2011, including to avoid a negative
yield on any class of the Fund.
/1/As measured by the Citigroup 3-Month Treasury Bill Index, an unmanaged index
that tracks short-term U.S. government debt instruments. Indices are not
managed and an investor cannot invest directly into an index.
/2/Weighted average maturity is the average time it takes for securities in a
portfolio to mature, weighted in proportion to the dollar amount that is
invested in the portfolio. The weighted average maturity of a money market fund
is a measure of its price sensitivity to changes in interest rates.
An investment in the Fund is not insured or guaranteed by the Federal Deposit
Insurance Corporation (FDIC) or any other government agency. Although the Fund
seeks to preserve the value of your investment at $1.00 per share, it is
possible to lose money by investing in the Fund.
Securities listed may or may not be a part of current portfolio construction.
3
SUNAMERICA MUNICIPAL MONEY MARKET FUND
PETER STEVENSON, PORTFOLIO MANAGER
AIG ASSET MANAGEMENT
The SunAmerica Municipal Money Market Fund (Class A) returned 0.01%* for the
annual period ended December 31, 2011.
During the first quarter of the annual period, the Fund had the majority of
its assets invested in variable-rate demand notes (VRDNs), whose rates reset
either daily or weekly. The Fund was diversified among securities in various
sectors issued in various states. The Fund's weighted average maturity/1/
finished the first quarter at approximately 12 days. By the end of the second
quarter, the Fund's weighted average maturity had declined modestly to
approximately seven days, with no extensions made during the quarter, as our
view was that variable rate resets would close any gap with note rates. The mix
of exposure to sectors had shifted slightly compared to the prior quarter, with
transportation, housing and general obligation credits comprising the top three
sectors.
By the close of the third quarter, the Fund's weighted average maturity had
lengthened to approximately 12 days as an extension purchase had been made. We
purchased a State of Texas tax and revenue anticipation note in August 2011,
maturing on August 30, 2012, to replace another Texas fixed coupon note and a
State of Michigan note held by the Fund, each of which matured in August 2011.
During the third quarter, the tax-exempt money market yield curve flattened, as
the spread between the SIFMA Municipal Swap Index/2/, which is a proxy for
weekly reset securities, and 12-month municipal bond notes had narrowed to 12
basis points./3/ At the end of the fourth quarter, the Fund's weighted average
maturity had declined slightly to approximately 11 days. The State of Texas
note position purchased in the third quarter remained the security with the
longest maturity in the Fund's portfolio. The Fund held more than 30% of its
net assets in daily reset VRDNs, which have a daily put/4/ feature and,
therefore, daily liquidity, but that typically reset at a slightly lower rate
than do weekly reset securities, therefore remitting less income.
Variable rate yields, as measured by the SIFMA Municipal Swap Index, reset
within a six basis point range during the first quarter, with the average for
the quarter being approximately 0.26%. That proved to be the peak for the year,
as yields declined through the second quarter, averaging 0.19% but moving from
a high of 0.27% down to a then record low of 0.09%. During the third quarter,
an all-time low of 0.07% was set for the SIFMA Municipal Swap Index during July
before rising to 0.21% in August. Variable rate yields then steadily declined
to finish the year at 0.10%. For the year, the SIFMA Municipal Swap Index
posted a return of 0.10%. The relationship between the levels of VRDNs and
longer-term fixed rate money market securities had the greatest impact on the
Fund's results during the annual period. More specifically, as note rates
declined during the first half of the year, the Fund could have benefited from
further extension of its weighted average maturity. During the second half of
the year, one-year tax-exempt rates rose slightly before flattening, and thus
the Fund's weighted average maturity positioning then buoyed results.
At the end of the annual period, variable-rate demand note obligations
comprised more than 96% of the Fund's investments with the balance invested in
fixed-rate note revenue obligations. The largest sector exposures at year end
were transportation, housing and general obligation. New York, California and
Massachusetts represented the Fund's three largest exposures as measured by
state of issuance at the end of December 2011.
--------
Past performance is no guarantee of future results.
*SunAmerica has voluntarily waived fees and/or reimbursed expenses of the Fund
during the annual period ended December 31, 2011, including to avoid a negative
yield on any class of the Fund.
/1/Weighted average maturity is the average time it takes for securities in a
portfolio to mature, weighted in proportion to the dollar amount that is
invested in the portfolio. The weighted average maturity of a money market fund
is a measure of its price sensitivity to changes in interest rates.
/2/The Securities Industry and Financial Markets Association (SIFMA) Municipal
Swap Index is a 7-day high-grade market index comprised of tax-exempt
variable-rate demand obligations. Indices are not managed and an investor
cannot invest directly into an index.
/3/A basis point is 1/100/th/ of a percentage point.
/4/A put is an option that conveys to its holder the right, but not the
obligation, to sell an issue of bonds before maturity by forcing the issuer to
buy at par, or at an amount equivalent to its original asset value.
An investment in the Fund is not insured or guaranteed by the Federal Deposit
Insurance Corporation (FDIC) or any other government agency. Although the Fund
seeks to preserve the value of your investment at $1.00 per share, it is
possible to lose money by investing in the Fund.
Securities listed may or may not be a part of current portfolio construction.
4
SUNAMERICA MONEY MARKET FUNDS, INC.
EXPENSE EXAMPLE -- DECEMBER 31, 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 July 1, 2011 and held until December 31,
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 December 31, 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 December 31, 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 December 31, 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
December 31, 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 December 31, 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 December 31, 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
December 31, 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.
5
SUNAMERICA MONEY MARKET FUNDS, INC.
EXPENSE EXAMPLE -- DECEMBER 31, 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 JULY 1, 2011 AT DECEMBER 31, 2011 DECEMBER 31, 2011* AT JULY 1, 2011 AT DECEMBER 31, 2011 DECEMBER 31, 2011*
----- --------------- -------------------- ------------------ --------------- -------------------- ------------------
Money Market
Class A..... $1,000.00 $1,000.05 $0.76 $1,000.00 $1,024.45 $0.77
Class I..... $1,000.00 $1,000.05 $0.76 $1,000.00 $1,024.45 $0.77
Municipal
Money Market
Class A..... $1,000.00 $1,000.05 $0.76 $1,000.00 $1,024.45 $0.77
EXPENSE
RATIO AS OF
FUND# DECEMBER 31, 2011*
----- ------------------
Money Market
Class A..... 0.15%
Class I..... 0.15%
Municipal
Money Market
Class A..... 0.15%
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* Expenses are equal to the Fund's annualized expense ratio multiplied by the
average account value over the period, multiplied by 184 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 December 31, 2011" and the "Expense Ratios"
would have been higher.
6
SUNAMERICA MONEY MARKET FUNDS, INC.
STATEMENT OF ASSETS AND LIABILITIES -- DECEMBER 31, 2011
MONEY MARKET MUNICIPAL MONEY
FUND MARKET FUND
------------ ---------------
ASSETS:
Investments at value* (unaffiliated)............................... $650,710,610 $ 82,885,627
Repurchase agreements (cost approximates market value)............. 57,534,000 --
------------ ------------
Total Investments................................................ $708,244,610 $ 82,885,627
------------ ------------
Cash............................................................... 906 --
Receivable for:
Fund shares sold................................................. 71,135 --
Dividends and interest........................................... 205,744 50,110
Prepaid expenses and other assets.................................. 7,800 1,250
Due from investment adviser for expense reimbursements/fee waivers. 399,098 49,223
Due from distributor for fee waivers............................... 89,119 10,881
------------ ------------
Total assets..................................................... 709,018,412 82,997,091
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LIABILITIES:
Payable for:
Fund shares redeemed............................................. 133,325 --
Investment advisory and management fees.......................... 298,811 25,388
Distribution and service maintenance fees........................ 90,209 10,883
Transfer agent fees and expenses................................. 164,074 17,964
Dividends payable................................................ 20,312 2,055
Directors' fees and expenses..................................... 23,622 2,203
Other accrued expenses........................................... 148,051 57,364
Due to custodian................................................... -- 647,603
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Total liabilities................................................ 878,404 763,460
------------ ------------
Net Assets...................................................... $708,140,008 $ 82,233,631
============ ============
NET ASSETS REPRESENTED BY:
Common stock, $.001 par value (10 billion shares authorized)....... $ 709,304 $ 82,250
Paid-in capital.................................................... 708,669,486 82,177,522
------------ ------------
709,378,790 82,259,772
Accumulated undistributed net investment income (loss)............. (27,841) (1,624)
Accumulated realized gain (loss) on investment..................... (1,210,941) (24,517)
------------ ------------
Net assets...................................................... $708,140,008 $ 82,233,631
============ ============
CLASS A:
Net assets......................................................... $692,514,959 $ 82,233,631
Shares outstanding................................................. 693,675,103 $ 82,249,967
Net asset value and redemption price per share
(excluding any applicable contingent deferred sales charge)....... $ 1.00 $ 1.00
============ ============
CLASS I:
Net assets......................................................... $ 15,625,049 $ --
Shares outstanding................................................. 15,628,777 --
Net asset value and redemption price per share..................... $ 1.00 --
============ ============
*Amortized cost of investment securities (unaffiliated) ........... $650,710,610 $ 82,885,627
============ ============
See Notes to Financial Statements
7
SUNAMERICA MONEY MARKET FUNDS, INC.
STATEMENT OF OPERATIONS -- FOR THE YEAR ENDED DECEMBER 31, 2011
MONEY MARKET MUNICIPAL MONEY
FUND MARKET FUND
------------ ---------------
INVESTMENT INCOME:
Interest (unaffiliated)................................................................ $ 1,305,434 $ 155,283
----------- -----------
Total investment income............................................................. 1,305,434 155,283
----------- -----------
EXPENSES:
Investment advisory and management fees................................................ 3,476,051 277,719
Distribution and service maintenance fees:
Class A.............................................................................. 1,037,064 119,022
Transfer agent fees and expenses:
Class A.............................................................................. 1,583,506 175,744
Class I.............................................................................. 32,032 --
Registration fees:
Class A.............................................................................. 36,456 18,725
Class I.............................................................................. -- --
Custodian and accounting fees.......................................................... 137,010 39,282
Reports to shareholders................................................................ 122,841 9,640
Audit and tax fees..................................................................... 38,264 38,379
Legal fees............................................................................. 36,727 10,806
Directors' fees and expenses........................................................... 70,265 7,941
Other expenses......................................................................... 21,771 12,863
----------- -----------
Total expenses before fee waivers, expense reimbursements and custody credits....... 6,591,987 710,121
Fees waived and expenses reimbursed by investment adviser and distributor (Note 3).. (5,357,353) (562,778)
Custody credits earned on cash balances............................................. (84) (21)
----------- -----------
Net expenses........................................................................ 1,234,550 147,322
----------- -----------
Net investment income (loss)........................................................... 70,884 7,961
----------- -----------
Net realized gain (loss) on investments................................................ 166 (24)
----------- -----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS........................ $ 71,050 $ 7,937
=========== ===========
See Notes to Financial Statements
8
SUNAMERICA MONEY MARKET FUNDS, INC.
STATEMENT OF CHANGES IN NET ASSETS
MONEY MARKET FUND
--------------------------
FOR THE YEAR FOR THE YEAR
ENDED ENDED
DECEMBER 31, DECEMBER 31,
2011 2010
------------ ------------
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income (loss)........................................................... $ 70,884 $ 74,097
Net realized gain (loss) on investments................................................ 166 1,057,317
------------ ------------
Net increase (decrease) in net assets resulting from operations.......................... $ 71,050 $ 1,131,414
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (Class A)........................................................ (69,254) (72,203)
Net investment income (Class I)........................................................ (1,442) (1,684)
------------ ------------
Total distributions to shareholders...................................................... (70,696) (73,887)
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS (NOTE 5). (26,506,418) (41,636,074)
------------ ------------
TOTAL INCREASE (DECREASE) IN NET ASSETS.................................................. (26,506,064) (40,578,547)
------------ ------------
NET ASSETS:
Beginning of period...................................................................... 734,646,072 775,224,619
------------ ------------
End of period*........................................................................... $708,140,008 $734,646,072
============ ============
*Includes accumulated undistributed net investment income (loss)......................... $ (27,841) $ (28,259)
============ ============
MUNICIPAL MONEY
MARKET FUND
-------------------------
FOR THE YEAR FOR THE YEAR
ENDED ENDED
DECEMBER 31, DECEMBER 31,
2011 2010
------------ ------------
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income (loss)........................................................... $ 7,961 $ 8,762
Net realized gain (loss) on investments................................................ (24) 9
----------- ------------
Net increase (decrease) in net assets resulting from operations.......................... $ 7,937 $ 8,771
----------- ------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (Class A)........................................................ (7,937) (25,869)
Net investment income (Class I)........................................................ -- --
----------- ------------
Total distributions to shareholders...................................................... (7,937) (25,869)
----------- ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS (NOTE 5). (173,609) (28,106,880)
----------- ------------
TOTAL INCREASE (DECREASE) IN NET ASSETS.................................................. (173,609) (28,123,978)
----------- ------------
NET ASSETS:
Beginning of period...................................................................... 82,407,240 110,531,218
----------- ------------
End of period*........................................................................... $82,233,631 $ 82,407,240
=========== ============
*Includes accumulated undistributed net investment income (loss)......................... $ (1,624) $ (1,648)
=========== ============
See Notes to Financial Statements
9
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
-------
12/31/07 $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)
12/31/11 1.00 0.00 (0.00) 1.00 0.01 692,515 0.17(3) 0.01(3)
CLASS I
-------
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)
12/31/11 1.00 0.00 (0.00) 1.00 0.01 15,625 0.18(3) 0.01(3)
--------
(1) Calculated based upon average shares outstanding.
(2) Total return is not annualized and does not reflect sales load but does
include expense reimbursements.
(3) Net of the following expense reimbursements/waivers (based on average net
assets):
12/31/07 12/31/08 12/31/09 12/31/10 12/31/11
-------- -------- -------- -------- --------
Class A............. -- % -- % 0.21% 0.64% 0.76%
Class I............. 0.04 0.18 0.34 0.51 0.60%
(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)
See Notes to Financial Statements
10
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(3) NET ASSETS(3)
------------ --------- ---------- ---------- ------ --------- -------- ------------- -------------
CLASS A
-------
12/31/07 $1.00 $0.03 $(0.03) $1.00 2.84% $153,906 0.83% 2.80%
12/31/08 1.00 0.02 (0.02) 1.00 1.53 188,083 0.83 1.45
12/31/09 1.00 0.00 (0.00) 1.00 0.02 110,531 0.52 0.02
12/31/10 1.00 0.00 (0.00) 1.00 0.03 82,407 0.29 0.01
12/31/11 1.00 0.00 (0.00) 1.00 0.01 82,234 0.19 0.01
--------
(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):
12/31/07 12/31/08 12/31/09 12/31/10 12/31/11
-------- -------- -------- -------- --------
Class A............. 0.01% 0.01% 0.32% 0.57% 0.71%
See Notes to Financial Statements
11
SUNAMERICA MONEY MARKET FUND
PORTFOLIO PROFILE -- DECEMBER 31, 2011 -- (UNAUDITED)
INDUSTRY ALLOCATION*
U.S. Government Agencies.......... 63.7%
Money Center Banks................ 8.6
Repurchase Agreements............. 8.1
U.S. Government Treasuries........ 4.2
Commercial Banks-Canadian......... 4.2
Finance........................... 2.6
Diversified Financial Services.... 2.6
Cosmetics-Toiletries.............. 1.9
Super-Regional Banks-US........... 1.9
Domestic Banks.................... 1.9
Finance-Investment Banker/Brokers. 0.3
-----
100.0%
=====
Weighted average days to maturity. 41.3
CREDIT QUALITY ALLOCATION @#
A-1.......................... 99.9%
Not Rated+................... 0.1
-----
100.0%
=====
--------
* Calculated as a percentage of net assets
@ Source: Standard and Poor's
# Calculated as a percentage of total debt issues
+ Represents debt issues that have either no rating or the rating is
unavailable from the data source.
12
SUNAMERICA MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS -- DECEMBER 31, 2011
PRINCIPAL VALUE
SECURITY DESCRIPTION AMOUNT (NOTE 2)
SHORT-TERM INVESTMENT SECURITIES -- 91.9%
CERTIFICATES OF DEPOSIT -- 11.6%
Citibank NA
0.21% due 01/30/12......................... $14,000,000 $14,000,000
Rabobank Nederland NV NY
0.36% due 01/13/12......................... 12,250,000 12,250,653
Rabobank Nederland NV NY
0.38% due 02/02/12......................... 14,000,000 14,000,987
Royal Bank of Canada NY FRS
0.28% due 06/18/12......................... 12,000,000 12,000,000
Royal Bank of Canada NY FRS
0.40% due 07/09/12......................... 17,750,000 17,751,713
UBS AG Stamford CT
0.37% due 03/06/12......................... 12,100,000 12,100,000
-----------
TOTAL CERTIFICATES OF DEPOSIT
(amortized cost $82,103,353).............. 82,103,353
-----------
COMMERCIAL PAPER -- 1.9%
Proctor & Gamble Co.
0.07% due 03/08/12
(amortized cost $13,298,267)............... 13,300,000 13,298,267
-----------
U.S. CORPORATE BONDS & NOTES -- 6.5%
Bank of America NA
0.27% due 01/05/12......................... 13,200,000 13,200,059
Bear Stearns Cos. LLC FRS
0.62% due 02/01/12......................... 12,750,000 12,752,032
Citigroup Funding, Inc. FRS
FDIC Guar. Notes
0.44% due 07/12/12......................... 4,530,000 4,540,036
Morgan Stanley FRS
FDIC Guar. Notes
0.74% due 03/13/12......................... 2,300,000 2,303,043
Wells Fargo & Co. FRS
0.51% due 01/24/12......................... 13,175,000 13,177,652
-----------
TOTAL U.S. CORPORATE BONDS & NOTES
(amortized cost $45,972,822).............. 45,972,822
-----------
MEDIUM TERM NOTES -- 4.0%
General Electric Capital Corp. FRS
0.51% due 04/10/12......................... 12,755,000 12,759,450
General Electric Capital Corp. FRS
0.59% due 07/27/12......................... 5,920,000 5,926,815
JPMorgan Chase & Co. FRS
0.58% due 02/22/12......................... 9,700,000 9,701,563
-----------
TOTAL MEDIUM TERM NOTES
(amortized cost $28,387,828).............. 28,387,828
-----------
U.S. GOVERNMENT AGENCIES -- 63.7%
Agency for International Development Panama
FRS
0.57% due 05/15/15......................... 962,959 964,061
Federal Farm Credit Bank
0.07% due 08/24/12......................... 3,400,000 3,398,440
2.00% due 01/17/12........................ 2,150,000 2,151,823
Federal Farm Credit Bank FRS
0.16% due 10/19/12......................... 13,000,000 12,998,963
0.20% due 05/23/12........................ 10,400,000 10,402,481
0.23% due 08/17/12........................ 4,000,000 3,999,746
PRINCIPAL VALUE
SECURITY DESCRIPTION AMOUNT (NOTE 2)
--------------------------------------------------------------
U.S. GOVERNMENT AGENCIES (CONTINUED)
0.26% due 02/11/13................. $28,000,000 $ 28,000,000
0.26% due 03/27/12................. 10,300,000 10,299,758
0.29% due 11/13/12................. 10,000,000 10,004,434
Federal Home Loan Bank
0.01% due 01/20/12.................. 29,000,000 28,999,847
0.03% due 01/20/12................. 6,600,000 6,599,896
0.03% due 02/15/12................. 17,250,000 17,249,461
0.03% due 03/16/12................. 5,000,000 4,999,687
0.05% due 02/03/12................. 5,000,000 4,999,771
0.09% due 04/13/12................. 5,400,000 5,398,610
0.08% due 04/16/12................. 6,000,000 5,998,587
0.10% due 05/30/12................. 6,750,000 6,747,188
0.11% due 02/08/12................. 9,600,000 9,598,885
0.11% due 08/01/12................. 4,400,000 4,397,136
0.12% due 02/27/12................. 13,300,000 13,299,528
0.12% due 03/01/12................. 5,000,000 4,999,000
0.12% due 06/25/12................. 19,400,000 19,388,619
0.17% due 01/04/12................. 8,820,000 8,819,875
0.19% due 10/03/12................. 5,289,000 5,281,296
Federal Home Loan Bank FRS
0.13% due 07/13/12.................. 12,400,000 12,399,671
0.24% due 11/01/12................. 5,310,000 5,312,334
0.28% due 01/12/12................. 26,500,000 26,500,000
0.29% due 01/20/12................. 13,220,000 13,219,931
0.35% due 02/17/12................. 7,600,000 7,599,493
Federal Home Loan Mtg. Corp.
0.07% due 06/04/12.................. 6,875,000 6,872,928
0.10% due 01/18/12................. 8,000,000 7,999,622
0.11% due 01/31/12................. 7,500,000 7,499,313
0.15% due 02/15/12................. 13,000,000 12,997,563
0.16% due 04/27/12................. 7,550,000 7,546,074
Federal Home Loan Mtg. Corp. FRS
0.07% due 01/25/12.................. 2,280,000 2,279,970
0.21% due 10/12/12................. 2,000,000 2,000,625
0.24% due 08/10/12................. 12,830,000 12,828,049
Federal National Mtg. Assoc.
0.04% due 01/03/12.................. 16,000,000 15,999,964
0.06% due 05/07/12................. 6,500,000 6,498,624
0.06% due 05/21/12................. 6,670,000 6,668,433
0.08% due 04/02/12................. 12,500,000 12,497,444
0.08% due 06/18/12................. 5,000,000 4,998,122
0.10% due 01/04/12................. 12,500,000 12,499,901
0.14% due 02/17/12................. 21,000,000 20,996,162
0.15% due 01/17/12................. 4,920,000 4,919,672
0.16% due 01/03/12................. 9,800,000 9,799,913
Federal National Mtg. Assoc. FRS
0.28% due 07/26/12.................. 2,000,000 2,001,398
------------
TOTAL U.S. GOVERNMENT AGENCIES
(amortized cost $450,932,298)...... 450,932,298
------------
U.S. GOVERNMENT TREASURIES -- 4.2%
United States Treasury Bills.........
0.01% due 04/05/12................. 15,000,000 14,999,607
0.06% due 01/05/12................. 6,670,000 6,669,956
0.07% due 01/26/12................. 3,400,000 3,399,835
13
SUNAMERICA MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS -- DECEMBER 31, 2011 -- (CONTINUED)
PRINCIPAL VALUE
SECURITY DESCRIPTION AMOUNT (NOTE 2)
SHORT-TERM INVESTMENT SECURITIES (CONTINUED)
U.S. GOVERNMENT TREASURIES (CONTINUED)
United States Treasury Notes
1.88% due 06/15/12.................... $4,910,000 $ 4,946,644
------------
TOTAL U.S. GOVERNMENT TREASURIES
(amortized cost $30,016,042)......... 30,016,042
------------
TOTAL SHORT-TERM INVESTMENT SECURITIES -- 91.9%
(amortized cost $650,710,610)........ 650,710,610
------------
PRINCIPAL VALUE
SECURITY DESCRIPTION AMOUNT (NOTE 2)
-----------------------------------------------------------------
REPURCHASE AGREEMENT -- 8.1%
UBS Securities LLC Joint Repurchase
Agreement(1)
(cost $57,534,000)................... $57,534,000 $ 57,534,000
------------
TOTAL INVESTMENTS
(amortized cost $708,244,610)(2).... 100.0% 708,244,610
LIABILITIES IN EXCESS OF OTHER ASSETS. (0.0) (104,602)
----------- ------------
NET ASSETS............................ 100.0% $708,140,008
=========== ============
--------
(1)See Note 2 for details of Joint Repurchase Agreements.
(2)At December 31, 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 December 31, 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 December 31, 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........... $-- $ 82,103,353 $-- $ 82,103,353
Commercial Paper.................. -- 13,298,267 -- 13,298,267
U.S. Corporate Bonds & Notes...... -- 45,972,822 -- 45,972,822
Medium Term Notes................. -- 28,387,828 -- 28,387,828
U.S. Government Agencies.......... -- 450,932,298 -- 450,932,298
U.S. Government Treasuries........ -- 30,016,042 -- 30,016,042
Repurchase Agreement............... -- 57,534,000 -- 57,534,000
--- ------------ --- ------------
TOTAL................................ $-- $708,244,610 $-- $708,244,610
=== ============ === ============
See Notes to Financial Statements
14
SUNAMERICA MUNICIPAL MONEY MARKET FUND
PORTFOLIO PROFILE -- DECEMBER 31, 2011 -- (UNAUDITED)
ALLOCATION BY STATES*
New York........................... 18.3%
California......................... 9.9
Massachusetts...................... 9.1
Texas.............................. 7.1
Pennsylvania....................... 6.0
Illinois........................... 5.2
New Jersey......................... 4.8
Kentucky........................... 3.9
Colorado........................... 3.8
Michigan........................... 3.8
Wyoming............................ 3.5
Missouri........................... 3.3
Alaska............................. 2.4
Kansas............................. 2.1
South Dakota....................... 2.1
Maine.............................. 2.1
Georgia............................ 2.1
Ohio............................... 1.9
Louisiana.......................... 1.6
Arizona............................ 1.5
Wisconsin.......................... 1.3
North Dakota....................... 1.2
Washington......................... 1.2
North Carolina..................... 0.9
New Hampshire...................... 0.7
Delaware........................... 0.4
Iowa............................... 0.4
Virginia........................... 0.1
Registered Investment Company...... 0.1
-----
100.8%
=====
* Weighed average days to maturity. 11.2
CREDIT QUALITY ALLOCATION@#
A-1......................... 81.9%
Not Rated+.................. 18.1
-----
100.0%
=====
--------
* Calculated as a percentage of net assets
@ Source: Standard and Poors
# Calculated as a percentage of total debt issues
+ Represents debt issues that have either no rating or the rating is
unavailable from the date source.
15
SUNAMERICA MUNICIPAL MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS -- DECEMBER 31, 2011
PRINCIPAL VALUE
SECURITY DESCRIPTION AMOUNT (NOTE 2)
SHORT-TERM INVESTMENT SECURITIES -- 100.8%
ALASKA -- 2.4%
Alaska State International Airports VRDN
Series A
(LOC-State Street Bank and Trust Co.)
0.08% due 10/01/30+............................. $2,000,000 $2,000,000
----------
ARIZONA -- 1.5%
Maricopa County, Arizona Industrial
Development Authority Multi Family
Housing VRDN
Series A
(LOC-Wells Fargo Bank N.A.)
0.24% due 12/01/39+............................. 1,270,000 1,270,000
----------
CALIFORNIA -- 9.9%
Bay Area Toll Authority VRDN
Series A-1
(LOC-Bank of America N.A.)
0.03% due 04/01/47+............................. 3,100,000 3,100,000
Bay Area Toll Authority VRDN
Series B-2
(LOC-JP Morgan Chase Bank)
0.04% due 04/01/47+............................. 550,000 550,000
Big Bear Lake, California Industrial VRDN
Series A
(LOC-KBC Bank N.V.)
1.50% due 12/01/28+............................. 2,000,000 2,000,000
Irvine Ranch, California Water District VRDN
Series A
(LOC-Westdeutsche Landesbank AG)
0.03% due 11/15/13+............................. 300,000 300,000
Metropolitan Water District of Southern
California VRDN
Series B-3
0.03% due 07/01/35+............................. 1,000,000 1,000,000
San Bernardino Country, California Multi Family
Housing VRDN
Series A
0.07% due 02/15/27+............................. 100,000 100,000
San Bernardino Country, California Multi Family
Housing VRDN
Series A
0.08% due 05/15/29+............................. 400,000 400,000
San Bernardino Country, California Multi Family
Housing VRDN
Series A
0.09% due 05/15/29+............................. 300,000 300,000
San Jose, California Redevelopment
Agency VRDN
Series B
(LOC-JP Morgan Chase Bank)
0.10% due 08/01/32+............................. 250,000 250,000
University of California Regents Medical
Center VRDN
Series B-1
0.04% due 05/15/32+............................. 100,000 100,000
----------
8,100,000
----------
PRINCIPAL VALUE
SECURITY DESCRIPTION AMOUNT (NOTE 2)
-------------------------------------------------------------------------
COLORADO -- 3.8%
Colorado Housing & Finance Authority VRDN
Series F
0.10% 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
Colorado Housing & Finance Authority VRDN
Series I-B2
1.60% due 04/01/38+.............................. 1,010,000 1,010,000
Colorado Housing & Finance Authority VRDN
Series I-B3
1.60% due 04/01/38+.............................. 585,000 585,000
Colorado State Educational & Cultural Facilities
Authority VRDN
(LOC-Bank of America)
0.09% due 02/01/35+.............................. 390,000 390,000
Colorado State Educational & Cultural Facilities
Authority VRDN
Series C-5
(LOC-U.S. Bank N.A.)
0.07% due 11/01/37+.............................. 100,000 100,000
Colorado State Educational & Cultural Facilities
Authority VRDN
Series D-5
(LOC-JP Morgan Chase Bank)
0.07% due 10/01/38+.............................. 180,000 180,000
----------
3,100,000
----------
DELAWARE -- 0.4%
University of Delaware VRDN
Series B
0.08% due 11/01/34+.............................. 355,000 355,000
----------
GEORGIA -- 2.1%
Municipal Electric Authority of Georgia VRDN
Series B
(LOC-Barclay Bank PLC)
0.10% due 06/01/20+.............................. 1,685,000 1,685,000
----------
ILLINOIS -- 5.2%
Chicago, Illinois VRDN
Series F
0.50% due 01/01/42+.............................. 1,180,000 1,180,000
Illinois Finance Authority VRDN
(LOC-JP Morgan Trust Co. N.A.)
0.10% due 06/01/37+.............................. 825,000 825,000
Illinois Finance Authority VRDN
Series E
0.22% due 11/15/37+.............................. 695,000 695,000
Jackson-Union Counties, Illinois Regional Port
District VRDN
(LOC-Wachovia Bank N.A.)
0.11% due 04/01/24+.............................. 1,550,000 1,550,000
----------
4,250,000
----------
16
SUNAMERICA MUNICIPAL MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS -- DECEMBER 31, 2011 -- (CONTINUED)
PRINCIPAL VALUE
SECURITY DESCRIPTION AMOUNT (NOTE 2)
SHORT-TERM INVESTMENT SECURITIES (CONTINUED)
IOWA -- 0.4%
Iowa Finance Authority Health Facilities VRDN
Series E
(LOC-Bank of America N.A.)
0.16% due 07/01/39+............................ $ 300,000 $ 300,000
----------
KANSAS -- 2.1%
Kansas State Department of
Transportation VRDN
Series B-2
0.02% due 09/01/19+............................ 1,720,000 1,720,000
----------
KENTUCKY -- 3.9%
Breckinridge County, Kentucky Lease
Program VRDN
(LOC-U.S. Bank N.A.)
0.10% due 12/01/29+............................ 1,045,000 1,045,000
Breckinridge County, Kentucky Lease
Program VRDN
Series A
(LOC-U.S. Bank N.A.)
0.10% due 02/01/31+............................ 1,260,000 1,260,000
County of Shelby, Kentucky VRDN
Series A
(LOC-U.S. Bank N.A.)
0.06% due 09/01/34+............................ 650,000 650,000
Trimble County Association of Counties Leasing
Trust Lease Program VRDN
Series A
(LOC-U.S. Bank N.A.)
0.06% due 12/01/38+............................ 265,000 265,000
----------
3,220,000
----------
LOUISIANA -- 1.6%
East Baton Rouge Parish, Louisiana Industrial
Development Board, Inc. VRDN
Series B
0.01% due 12/01/40+............................ 1,275,000 1,275,000
----------
MAINE -- 2.1%
Maine State Housing Authority Mortgage VRDN
Series B-3
0.14% due 11/15/38+............................ 1,690,000 1,690,000
----------
MASSACHUSETTS -- 9.1%
Massachusetts Health & Educational Facilities
Authority VRDN
Series A-2
0.09% due 12/01/37+............................ 1,800,000 1,800,000
Massachusetts Health & Educational Facilities
Authority VRDN
Series R
0.02% due 11/01/49+............................ 1,015,000 1,015,000
Massachusetts State VRDN
Series B
0.03% due 12/01/30+............................ 2,405,000 2,405,003
Massachusetts State Water Resources
Authority VRDN
Series A-2
0.06% due 08/01/37+............................ 500,000 500,000
PRINCIPAL VALUE
SECURITY DESCRIPTION AMOUNT (NOTE 2)
-----------------------------------------------------------------------
MASSACHUSETTS (CONTINUED)
Massachusetts State Water Resources
Authority VRDN
Series A-3
0.07% due 08/01/37+............................ $1,800,000 $1,800,000
----------
7,520,003
----------
MICHIGAN -- 3.8%
Holt, Michigan Public Schools VRDN
0.20% due 05/01/30+............................ 3,095,000 3,095,000
----------
MISSOURI -- 3.3%
Missouri State Health & Educational Facilities
Authority VRDN
Series A
0.05% due 10/01/16+............................ 400,000 400,000
Missouri State Health & Educational Facilities
Authority VRDN
Series B
0.08% due 10/01/24+............................ 1,500,000 1,500,000
Missouri State Health & Educational Facilities
Authority VRDN
Series B-1
(LOC-Bank of America N.A.)
0.05% due 10/01/35+............................ 805,000 805,000
----------
2,705,000
----------
NEW HAMPSHIRE -- 0.7%
New Hampshire Health & Education Facilities
Authority VRDN
Series B-1
0.06% due 07/01/33+............................ 600,000 600,000
----------
NEW JERSEY -- 4.8%
New Jersey Economic Development
Authority VRDN
0.05% due 07/01/31+............................ 350,000 350,000
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
----------
3,985,000
----------
NEW YORK -- 18.3%
City of New York, New York VRDN
Series C-3B
0.08% due 08/01/20+............................ 300,000 300,000
City of New York, New York VRDN
Series E-4
(LOC-BNP Paribas)
0.08% due 08/01/21+............................ 500,000 500,000
City of New York, New York VRDN
Series E-5
(LOC-JP Morgan Chase Bank)
0.05% due 08/01/19+............................ 150,000 150,000
City of New York, New York VRDN
Series H-3
0.04% due 08/01/23+............................ 400,000 400,000
17
SUNAMERICA MUNICIPAL MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS -- DECEMBER 31, 2011 -- (CONTINUED)
PRINCIPAL VALUE
SECURITY DESCRIPTION AMOUNT (NOTE 2)
SHORT-TERM INVESTMENT SECURITIES (CONTINUED)
NEW YORK (CONTINUED)
Long Island Power Authority, New York VRDN
Series 3-B
(LOC-Westdeutsche Landesbank AG)
0.15% due 05/01/33+.......................... $1,900,000 $ 1,900,000
Metropolitan Transportation Authority VRDN
Series D-1
(LOC-Westdeutsche Landesbank AG)
0.25% due 11/01/35+.......................... 1,600,000 1,600,000
New York City, New York Municipal Water
Finance Authority Water & Sewer
System VRDN
Series B-4
0.05% due 06/15/23+.......................... 1,675,000 1,675,000
New York City, New York Municipal Water
Finance Authority Water & Sewer
System VRDN
Series BB-3
0.09% due 06/15/34+.......................... 535,000 535,000
New York City, New York Municipal Water
Finance Authority Water & Sewer
System VRDN
Series CC-1
0.05% due 06/15/38+.......................... 700,000 700,000
New York City, New York Transitional Finance
Authority VRDN
Series 3-H
0.05% due 11/01/22+.......................... 3,860,000 3,860,000
Triborough Bridge & Tunnel Authority VRDN
Series CD
0.10% due 01/01/19+.......................... 3,435,000 3,435,000
-----------
15,055,000
-----------
NORTH CAROLINA -- 0.9%
Wilmington, North Carolina VRDN
0.09% due 06/01/15+.......................... 755,000 755,000
-----------
NORTH DAKOTA -- 1.2%
North Dakota State Housing Finance
Agency VRDN
Series B
1.75% due 07/01/34+.......................... 1,000,000 1,000,000
-----------
OHIO -- 1.9%
Franklin County, Ohio Hospital VRDN
Series A
(LOC-U.S.Bank N.A.)
0.07% due 12/01/21+.......................... 700,000 700,000
Ohio Housing Finance Agency Multi Family
Housing VRDN
(LOC-Federal Home Loan Bank)
0.12% due 10/01/36+.......................... 890,000 890,000
-----------
1,590,000
-----------
PENNSYLVANIA -- 6.0%
Pennsylvania State Turnpike
Commission VRDN
Series B-1
(LOC-Barclays Bank PLC)
0.06% due 12/01/38+.......................... 2,150,000 2,150,000
PRINCIPAL VALUE
SECURITY DESCRIPTION AMOUNT (NOTE 2)
---------------------------------------------------------------------
PENNSYLVANIA (CONTINUED)
Pittsburgh, Pennsylvania Water & Sewer
Authority VRDN
Series B-1
0.10% due 09/01/33+.......................... $2,800,000 $2,800,000
----------
4,950,000
----------
SOUTH DAKOTA -- 2.1%
South Dakota Housing Development
Authority VRDN
Series C-1
0.20% due 05/01/32+.......................... 1,700,000 1,700,000
----------
TEXAS -- 7.1%
Lower Neches Valley Authority Industrial
Development Corp. VRDN
0.01% due 11/01/38+.......................... 2,160,000 2,160,000
Tarrant County Cultural Education Facilities
Finance Corp. VRDN
Series A
(LOC-JP Morgan Chase Bank)
0.06% due 10/01/41+.......................... 145,000 145,000
Texas State
Series A
2.50% due 08/30/12........................... 2,500,000 2,537,260
Texas State Veteran Housing Assistance VRDN
0.08% due 12/01/38+.......................... 980,000 980,000
----------
5,822,260
----------
VIRGINIA -- 0.1%
Peninsula, Virginia Ports Authority VRDN
Series D
(LOC-U.S. Bank NA)
0.02% due 07/01/16+.......................... 100,000 100,000
----------
WASHINGTON -- 1.2%
Washington Health Care Facilities
Authority VRDN
Series B
(LOC-Bank of America N.A.)
0.11% due 10/01/31+.......................... 150,000 150,000
Washington State Housing Finance
Commission VRDN
(LOC-U.S.Bank N.A.)
0.05% due 11/01/25+.......................... 640,000 640,000
Washington State Housing Finance
Commission VRDN
Series A
(LOC-U.S.Bank N.A.)
0.05% due 08/01/19+.......................... 205,000 205,000
----------
995,000
----------
WISCONSIN -- 1.3%
Wisconsin Health & Educational Facilities
Authority VRDN
Series B
(LOC-U.S. Bank N.A.)
0.05% due 12/01/33+.......................... 800,000 800,000
18
SUNAMERICA MUNICIPAL MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS -- DECEMBER 31, 2011 -- (CONTINUED)
PRINCIPAL VALUE
SECURITY DESCRIPTION AMOUNT (NOTE 2)
SHORT-TERM INVESTMENT SECURITIES (CONTINUED)
WISCONSIN (CONTINUED)
Wisconsin Health & Educational Facilities
Authority VRDN
(LOC-JP Morgan Chase Bank)
0.06% due 08/15/36+....................... $ 200,000 $ 200,000
Wisconsin Housing & Economic Development
Authority VRDN
Series C
0.14% due 03/01/34+....................... 75,000 75,000
----------
1,075,000
----------
WYOMING -- 3.5%
Sweetwater County, Wyoming Pollution
Control VRDN
Series B
(LOC-Barclays Bank N.A.)
0.05% due 01/01/14+....................... 800,000 800,000
Sweetwater County, Wyoming Pollution
Control VRDN
Series A
(LOC-Barclays Bank PLC)
0.09% due 07/01/15+....................... 2,100,000 2,100,000
----------
2,900,000
----------
PRINCIPAL VALUE
SECURITY DESCRIPTION AMOUNT (NOTE 2)
--------------------------------------------------------------
REGISTERED INVESTMENT COMPANY -- 0.1%
SSGA Tax Free Money Market Fund...... $73,364 $ 73,364
-----------
TOTAL SHORT-TERM INVESTMENT SECURITIES
(cost $82,885,627)................... 82,885,627
-----------
TOTAL INVESTMENTS
(cost $82,885,627)(1)................ 100.8% 82,885,627
LIABILITIES IN EXCESS OF OTHER ASSETS.. (0.8) (651,996)
------- -----------
NET ASSETS............................. 100.0% $82,233,631
======= ===========
--------
+ The security's effective maturity date is less than a year.
(1)At December 31, 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 rates at December 31, 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 December 31, 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........................ $-- $ 8,100,000 $-- $ 8,100,000
Illinois.......................... -- 4,250,000 -- 4,250,000
Massachusetts..................... -- 7,520,003 -- 7,520,003
New York.......................... -- 15,055,000 -- 15,055,000
Pennsylvania...................... -- 4,950,000 -- 4,950,000
Texas............................. -- 5,822,260 -- 5,822,260
Other States*..................... -- 37,115,000 -- 37,115,000
Registered Investment Companies... -- 73,364 -- 73,364
--- ----------- --- -----------
TOTAL................................ $-- $82,885,627 $-- $82,885,627
=== =========== === ===========
--------
* 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
19
SUNAMERICA MONEY MARKET FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS -- DECEMBER 31, 2011
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./1/
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
--------
/1/ On December 1, 2011, the Board of Directors of the Corporation approved
the closing of the Municipal Money Market Fund to new investments,
effective as of the Fund's close of business on January 13, 2012. The
Board and shareholders subsequently approved the liquidation of the Fund
in 2012. Please see Note 8 for additional details.
20
SUNAMERICA MONEY MARKET FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS -- DECEMBER 31, 2011 -- (CONTINUED)
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 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 December
31, 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 December 31, 2011, the following fund held an undivided interest in
the joint repurchase agreement with UBS Securities LLC:
PERCENTAGE PRINCIPAL
FUND OWNERSHIP AMOUNT
---- ---------- -----------
Money Market.................. 23.01% $57,534,000
21
SUNAMERICA MONEY MARKET FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS -- DECEMBER 31, 2011 -- (CONTINUED)
As of such date, the repurchase agreement in that joint account and the
collateral therefore were as follows:
UBS Securities LLC, dated December 30, 2011, bearing interest at a rate of
0.01% per annum, with a principal amount of $250,000,000, a repurchase price
of $250,000,278, and a maturity date of January 3, 2012. The repurchase
agreement is collateralized by the following:
INTEREST MATURITY PRINCIPAL
TYPE OF COLLATERAL RATE DATE AMOUNT VALUE
------------------ -------- --------- ----------- ------------
U.S. Treasury Inflation
Indexed Notes............... 1.63% 1/15/2015 $33,532,100 $ 43,172,579
U.S. Treasury Inflation
Indexed Bonds............... 2.00 1/15/2026 62,000,000 87,962,500
U.S. Treasury Inflation
Indexed Bonds............... 2.13 2/15/2040 87,000,000 123,866,250
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 2008.
NEW ACCOUNTING PRONOUNCEMENTS: In April 2011, the Financial Accounting
Standards Board ("FASB") issued Accounting Standards Update ("ASU") No.
2011-03, "Reconsideration of Effective Control for Repurchase Agreements."
ASU 2011-03 changes the assessment of effective control for repurchase
agreements including dollar roll transactions. The new and revised
disclosures are effective for interim and annual reporting periods beginning
after December 15, 2011. At this time, management is evaluating the
implications of ASU No. 2011-03 and its impact on the financial statements.
In May 2011, the FASB issued ASU No. 2011-04, "Amendments to Achieve Common
Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs."
ASU 2011-04 requires common fair value measurement and disclosure
requirements between U.S. GAAP and International Financial Reporting
Standards. The new and revised
22
SUNAMERICA MONEY MARKET FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS -- DECEMBER 31, 2011 -- (CONTINUED)
disclosures are effective for interim and annual reporting periods beginning
after December 15, 2011. At this time, management is evaluating the
implications of ASU No. 2011-04 and its impact on the financial statements.
NOTE 3. INVESTMENT ADVISORY AND MANAGEMENT AGREEMENT, DISTRIBUTION AND SERVICE
AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES
The Funds have an Investment Advisory and Management Agreement (the
"Advisory Agreement") with SunAmerica. Under the Advisory Agreement,
SunAmerica provides continuous supervision to each Fund's portfolio and
administers the Corporation's corporate affairs, subject to general review
by the Board. In connection therewith, SunAmerica furnishes the Funds with
office facilities, maintains certain of its books and records, and pays the
salaries and expenses of all personnel, including officers of the
Corporation who are employees of SunAmerica and its affiliates.
The Funds pay SunAmerica a monthly investment advisory and management fee
calculated daily at the following annual percentages of each Fund's average
daily net assets:
MANAGEMENT
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
FUND ASSETS FEES
---- --------------------------- ------------
Municipal Money Market........ $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 December 31, 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.
23
SUNAMERICA MONEY MARKET FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS -- DECEMBER 31, 2011 -- (CONTINUED)
For the period ended December 31, 2011, SunAmerica voluntarily waived fees
and/or reimbursed expenses as follows:
FUND
----
Money Market Class A........................................ $4,233,791
Money Market Class I........................................ 86,271
Municipal Money Market Class A.............................. 443,756
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 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 December 31, 2011, SACS voluntarily waived fees as
follows:
FUND
----
Money Market Class A.............................. $1,037,064
Municipal Money Market Class A.................... 119,022
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 December 31, 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 December 31, 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 DECEMBER 31, 2011
---- ---------- -----------------
Money Market Class A............... $1,514,425 $130,707
Money Market Class I............... 31,709 2,923
Municipal Money Market Class A..... 174,450 15,958
24
SUNAMERICA MONEY MARKET FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS -- DECEMBER 31, 2011 -- (CONTINUED)
As of December 31, 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 $0 and $1,050,000, for the years
ended December 31, 2011 and December 31, 2010, respectively.
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.
The following details the tax basis distributions as well as the components
of distributable earnings. The tax basis components of distributable
earnings differ from the amounts reflected in the Statement of Assets and
Liabilities by temporary book/tax differences primarily arising from
dividends payable and cumulative pension expenses.
DISTRIBUTABLE EARNINGS TAX DISTRIBUTIONS
------------------------------------- ------------------------------------
FOR THE YEAR ENDED DECEMBER 31, 2011
--------------------------------------------------------------------------
LONG-TERM
GAINS/CAPITAL UNREALIZED LONG-TERM
ORDINARY AND OTHER APPRECIATION ORDINARY CAPITAL
FUND INCOME LOSSES (DEPRECIATION) INCOME GAINS TAX EXEMPT
---- -------- ------------- -------------- -------- --------- ----------
Money Market....................... $ -- $(1,210,777) $ -- $70,696 $ -- $ --
Municipal Money Market............. -- (24,517) -- -- -- 7,937
TAX DISTRIBUTIONS
------------------------------------
FOR THE YEAR ENDED DECEMBER 31, 2010
------------------------------------
LONG-TERM
ORDINARY CAPITAL
FUND INCOME GAINS TAX EXEMPT
---- -------- --------- ----------
Money Market....................... $73,887 $ -- $ --
Municipal Money Market............. -- -- 25,869
25
SUNAMERICA MONEY MARKET FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS -- DECEMBER 31, 2011 -- (CONTINUED)
For Federal income tax purposes, the Funds indicated below have capital loss
carryforwards, which expire in the year indicated, as of December 31, 2011,
which are available to offset future capital gains, if any:
CAPITAL LOSS CARRYFORWARD UNLIMITED
------------------------- ---------
FUND 2012 2013 2016 ST LT
---- ------ ------- ---------- ---- ----
Money Market....................... $ -- $ -- $1,210,777 $ -- $ --
Municipal Money Market............. 8,053 16,252 188 24 --
On December 22, 2010, the Regulated Investment Company Modernization Act of
2010 (the "Act") was enacted which changed various technical rules governing
the tax treatment of regulated investment companies. The changes are
generally effective for taxable years beginning after the date of enactment.
Under the Act, the fund will be permitted to carry forward capital losses
incurred in taxable years beginning after the date of enactment for an
unlimited period. However, any losses incurred during those future taxable
years will be required to be utilized prior to the losses incurred in
pre-enactment taxable years, which carry an expiration date. As a result of
this ordering rule, pre-enactment capital loss carryforwards may be more
likely to expire unused. Additionally, post-enactment capital losses that
are carried forward will retain their character as either short-term or
long-term losses rather than being considered all short-term as under
previous law.
Under the current law, capital losses realized after October 31 and late
year ordinary losses may be deferred and treated as occurring on the first
day of the following year. For the fiscal year ended December 31, 2011, the
Money Market Fund elected to defer post October long-term capital losses in
the amount of $164.
For the year ended December 31, 2011, the reclassifications arising from
book/tax differences resulted in increases (decreases) that were primarily
due to distributions in excess of net investment income to the components of
net assets as follows:
ACCUMULATED ACCUMULATED
UNDISTRIBUTED NET UNDISTRIBUTED
INVESTMENT NET REALIZED
FUND INCOME (LOSS) GAIN (LOSS) CAPITAL PAID-IN
---- ----------------- ------------- ---------------
Money Market....................... $229 $ -- $(229)
Municipal Money Market............. -- -- --
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 December 31, 2011 and for the prior year were as
follows:
MONEY MARKET FUND
-------------------------------------------------------
CLASS A CLASS I
---------------------------- -------------------------
FOR THE YEAR FOR THE YEAR FOR THE YEAR FOR THE YEAR
ENDED ENDED ENDED ENDED
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
2011 2010 2011 2010
------------- ------------- ------------ ------------
Shares sold............. $ 654,745,945 $ 433,199,045 $ 9,890,008 $ 18,197,271
Reinvested dividends.... 66,993 69,808 1,416 1,650
Shares redeemed......... (681,969,401) (475,207,558) (9,241,379) (17,896,290)
------------- ------------- ----------- ------------
Net increase (decrease). $ (27,156,463) $ (41,938,705) $ 650,045 $ 302,631
============= ============= =========== ============
MUNICIPAL MONEY MARKET FUND
----------------------------
CLASS A
----------------------------
FOR THE YEAR FOR THE YEAR
ENDED ENDED
DECEMBER 31, DECEMBER 31,
2011 2010
------------- -------------
Shares sold............. $ 105,713,786 $ 140,417,935
Reinvested dividends.... 7,920 25,847
Shares redeemed......... (105,895,315) (168,550,662)
------------- -------------
Net increase (decrease). $ (173,609) $ (28,106,880)
============= =============
26
SUNAMERICA MONEY MARKET FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS -- DECEMBER 31, 2011 -- (CONTINUED)
NOTE 6. DIRECTORS' RETIREMENT PLAN
The Directors of the SunAmerica Money Market Funds, Inc. have adopted the
SunAmerica Disinterested Trustees' and Directors' Retirement Plan (the
"Retirement Plan") effective January 1, 1993, as amended for the Independent
Directors. The Retirement Plan provides generally that an Independent
Director may become a participant ("Participant") in the Retirement Plan if
he or she has at least 10 years of consecutive service as a Disinterested
Director of any of the adopting SunAmerica mutual funds (the "Adopting
Funds") or has attained the age of 60 while a Director and completed five
(5) consecutive years of service as a Director of any Adopting Fund (an
"Eligible Director"). Pursuant to the Retirement Plan, an Eligible Director
may receive benefits upon (i) his or her death or disability while a
Director or (ii) the termination of his or her tenure as a Director, other
than removal for cause from each of the Adopting Funds with respect to which
he or she is an Eligible Director.
As of each of the first 10 birthdays after becoming a Participant and on
which he or she is both a Director and Participant, each Eligible Director
will be credited with an amount equal to 50% of his or her regular fees
(excluding committee fees) for services as a Disinterested Director of each
Adopting Fund for the calendar year in which such birthday occurs. In
addition, an amount equal to 8.50% of any amounts credited under the
preceding 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.
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 DECEMBER 31, 2011
---- -----------------------------------------------
Money Market.................. $22,048 $1,347 $7,548
Municipal Money Market........ 1,487 142 491
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 December 31, 2011,
the Funds did not participate in the program.
NOTE 8. SUBSEQUENT EVENT
The Municipal Money Market Fund closed to new investments on January 13,
2012, and no longer accepts orders to buy shares from new investors or
existing shareholders (although reinvestments of any dividends and capital
gain distributions from existing shareholders continue to be permitted). On
January 17, 2012, the Board approved a Plan of Liquidation (the "Plan") with
respect to the Fund, which was approved by shareholders at a special meeting
held on February 23, 2012 (the "Special Meeting")./2/ Pursuant to the Plan,
the Fund will be liquidated on or about March 2, 2012.
--------
/2/ As of January 19, 2012, the record date for the Special Meeting, the
Adviser beneficially owned 62.88% of the outstanding shares of the
Municipal Money Market Fund, and such shares were voted in favor of the
Plan
27
SUNAMERICA MONEY MARKET FUNDS, INC.
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Directors and Shareholders of SunAmerica Money Market Funds,
Inc.:
In our opinion, the accompanying statements of assets and liabilities,
including the portfolios of investments, and the related statements of
operations and of changes in net assets and the financial highlights present
fairly, in all material respects, the financial position of each of the two
funds constituting SunAmerica Money Market Funds, Inc. (the "Funds") at
December 31, 2011, the results of each of their operations for the year then
ended, the changes in each of their net assets for each of the two years in the
period then ended and the financial highlights for each of the five years in
the period then ended, in conformity with accounting principles generally
accepted in the United States of America. These financial statements and
financial highlights (hereafter referred to as "financial statements'') are the
responsibility of the Funds' management; our responsibility is to express an
opinion on these financial statements based on our audits. We conducted our
audits of these financial statements in accordance with the standards of the
Public Company Accounting Oversight Board (United States). Those standards
require that we plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, and evaluating the overall
financial statement presentation. We believe that our audits, which included
confirmation of securities at December 31, 2011 by correspondence with the
custodian and brokers, provide a reasonable basis for the opinion.
PricewaterhouseCoopers LLP
Houston, Texas
February 28, 2012
28
SUNAMERICA MONEY MARKET FUNDS, INC.
DIRECTORS AND OFFICERS INFORMATION -- DECEMBER 31, 2011 -- (UNAUDITED)
The following table contains basic information regarding the Directors and
Officers who oversee operations of the Fund and other investment companies
within the Fund complex.
NUMBER OF
TERM OF FUNDS IN
NAME, POSITION(S) OFFICE AND FUND COMPLEX
ADDRESS AND HELD WITH LENGTH OF PRINCIPAL OCCUPATION(S) OVERSEEN BY OTHER DIRECTORSHIPS
AGE* THE FUND TIME SERVED(4) DURING PAST 5 YEARS DIRECTOR(1) HELD BY DIRECTOR(2)
------------------------ ----------- -------------- ------------------------ ------------ ------------------------
DISINTERESTED DIRECTORS
Dr. Judith L. Craven Director 2001- Retired. 83 Director, Belo Corp.
66 present (1992 to present);
Director, Sysco Corp.
(1996 to present);
Director, Luby's Inc.
(1998 to present).
William F. Devin Director 2001- Retired. 83 None
73 present
Richard W. Grant Director 2011- Retired. Prior to that, 35 None
66 present attorney and Partner at
Morgan Lewis & Brockius
LLP (1989 to 2011).
Stephen J. Gutman Director 1984- Vice President and 35 None
68 present Associate Broker,
Corcoran Group (Real
Estate) (2003 to
present); President and
Member of Managing
Directors, Beau Brummell
-- Soho, LLC (Licensing
of menswear specialty
retailing) (1995 to
2009); President, SJG
Marketing, Inc (2009 to
present).
William J. Shea Director 2004- Executive Chairman, 35 Chairman of the Board,
64 present Lucid, Inc. (medical Royal and SunAlliance
technology and U.S.A., Inc. (2004 to
information) (2007 to 2006); Director, Boston
Present); Managing Private Financial
Partner, DLB Capital, Holdings (2004 to
LLC (private equity) present); Chairman,
(2006 to present). Demoulas Supermarkets
(1999 to Present);
Director, NASDAQ OMX BX
(2008 to present).
INTERESTED DIRECTOR
Peter A. Harbeck(3) Director 1994- President, CEO and 83 None
58 present Director, SunAmerica
(1995 to present);
Director, -- SACS (1993
to present); Chairman,
Advisor Group, Inc.
(2004 to present).
29
SUNAMERICA MONEY MARKET FUNDS, INC.
DIRECTORS AND OFFICERS INFORMATION -- DECEMBER 31, 2011 -- (UNAUDITED)
(CONTINUED)
The following table contains basic information regarding the Directors and
Officers who oversee operations of the Fund and other investment companies
within the Fund complex.
NUMBER OF
TERM OF FUNDS IN
NAME, POSITION(S) OFFICE AND FUND COMPLEX
ADDRESS AND HELD WITH LENGTH OF PRINCIPAL OCCUPATIONS OVERSEEN BY OTHER DIRECTORSHIPS
AGE* THE FUND TIME SERVED(4) DURING PAST 5 YEARS DIRECTOR(1) HELD BY DIRECTOR(2)
------------------- ----------- -------------- ----------------------------- ------------ -------------------
OFFICERS
John T. Genoy President 2007- Chief Financial Officer, N/A N/A
43 present SunAmerica (2002 to
present); Senior Vice
President, SunAmerica
(2003 to present); Chief
Operating Officer,
SunAmerica (2006 to
present).
Donna M. Handel Treasurer 2002- Senior Vice President, N/A N/A
45 present SunAmerica (2004 to
present).
Gregory N. Bressler Secretary 2005- Senior Vice President and N/A N/A
45 and Chief present General Counsel,
Legal SunAmerica (2005 to
Officer present).
James Nichols Vice 2006- Director, President and N/A N/A
45 President present CEO, SACS (2006 to
present); Senior Vice
President, SACS (2002 to
2006); Senior Vice President
SunAmerica (2002 to
present).
Timothy Pettee Vice August Chief Investment Officer, N/A N/A
53 President 2008- SunAmerica (2003 to
present present).
Katherine Stoner Vice 2011- Vice President, SunAmerica N/A N/A
55 President present (2011 to present); Vice
and Chief President, The Variable
Compliance Annuity Life Insurance
Officer Company ("VALIC"),
Western National Life
Insurance Company ("WNL")
and American General
Distributors, Inc. (2006 to
present); Deputy General
Counsel and Secretary,
VALIC and WNL (2007 to
May 2011); Vice President,
VALIC Financial Advisors,
Inc. (2010 to 2011) and
VALIC Retirement Services
Company (2010 to present).
Gregory R. Kingston Vice 2002- Vice President, SunAmerica N/A N/A
46 President present (2001 to present).
and
Assistant
Treasurer
30
SUNAMERICA MONEY MARKET FUNDS, INC.
DIRECTORS AND OFFICERS INFORMATION -- DECEMBER 31, 2011 -- (UNAUDITED)
(CONTINUED)
NUMBER OF
TERM OF FUNDS IN
NAME, POSITION(S) OFFICE AND FUND COMPLEX
ADDRESS AND HELD WITH LENGTH OF PRINCIPAL OCCUPATIONS OVERSEEN BY OTHER DIRECTORSHIPS
AGE* THE FUND TIME SERVED(4) DURING PAST 5 YEARS DIRECTOR(1) HELD BY DIRECTOR(2)
-------------------- ----------- -------------- -------------------------- ------------ -------------------
Nori L. Gabert Vice 2005- Vice President and Deputy N/A N/A
58 President present General Counsel,
and SunAmerica (2005 to
Assistant present).
Secretary
Matthew J. Hackethal Anti-Money 2006- Chief Compliance Officer, N/A N/A
40 Laundering present SunAmerica (2006 to
Compliance present); Vice President,
Officer Credit Suisse Asset
Management LLC (2005 to
2006).
--------
* The business address for each Director and Officer is Harborside Financial
Center, 3200 Plaza 5, Jersey City, NJ 07311-4992.
(1) The "Fund Complex" means two or more registered investment companies that
hold themselves out to investors as related companies for purposes of
investment services or have a common investment adviser or an investment
adviser that is an affiliated person of the Adviser. The "Fund Complex"
includes the Funds (2 funds), SunAmerica Equity Funds (3 funds), SunAmerica
Income Funds (4 funds), SunAmerica Series, Inc. (11 portfolios), Anchor
Series Trust (8 portfolios), SunAmerica Senior Floating Rate Fund, Inc. (1
fund), SunAmerica Series Trust (36 portfolios), SunAmerica Specialty Series
(6 funds), VALIC Company I (33 funds), VALIC Company II (15 funds) and
Seasons Series Trust (21 portfolios).
(2) Directorships of companies required to report to the Commission under the
Securities Exchange Act of 1934 (i.e. "public companies") or other
investment companies registered under the 1940 Act, other than those listed
under the preceding column.
(3) Interested Director, as defined in the 1940 Act, because he or she is an
officer and a director of the Adviser and a director of the principal
underwriter of the Fund.
(4) Directors serve until their successors are duly elected and qualified,
subject to the Directors' retirement plan as discussed in Note 6 of the
financial statements. Each officer will hold office for an indefinite term
until the date he or she resigns or retires or until his/her successor is
duly elected and qualifies.
Additional information concerning the Directors is contained in the Statement
of Additional Information and is available without charge by calling (800)
858-8850.
31
SUNAMERICA MONEY MARKET FUNDS, INC.
SHAREHOLDER TAX INFORMATION
Certain tax information regarding the Funds is required to be provided to
shareholders based upon each Fund's income and distributions for the taxable
year ended December 31, 2011. The information necessary to complete your income
tax returns is included with your Form 1099-DIV, which will be mailed to you in
early 2012.
During the year ended December 31, 2011, 100% of the distributions paid by the
SunAmerica Municipal Money Market Fund are exempt from federal income taxes.
32
[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
3200 PLAZA 5 householding please
JERSEY CITY, NJ contact Shareholder
07311-4992 Services at (800)
858-8850 ext. 6010 or
SHAREHOLDER SERVICING send a written request
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.
[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
MMANN - 12/11
[LOGO]
AIG
Sun America
Mutual Funds
Item 2. Code of Ethics
SunAmerica Money Market Funds, Inc. ("the registrant") has adopted a
Code of Ethics applicable to its Principal Executive and Principal
Accounting Officers pursuant to Section 406 of the Sarbanes-Oxley Act
of 2002. During the fiscal year ended 2011, there were no reportable
amendments, waivers or implicit waivers to a provision of the code of
ethics that applies to the registrant's Principal Executive and
Principal Accounting Officers.
Item 3. Audit Committee Financial Expert.
The registrant's Board of Directors has determined that William J.
Shea, the Chairman of the registrant's Audit Committee, qualifies as
an audit committee financial expert, as defined in Item 3(b) of Form
N-CSR. Mr. Shea is considered to be "independent" for purposes of
Item 3(a)(2) of Form N-CSR.
Item 4. Principal Accountant Fees and Services.
(a)--(d) Aggregate fees billed to the registrant for the last two
fiscal years for professional services rendered by the registrant's
principal accountants were as follows:
2010 2011
(a) Audit Fees............................. $55,527 $58,163
(b) Audit-Related Fees..................... $ 0 $ 0
(c) Tax Fees............................... $22,032 $23,069
(d) All Other Fees......................... $ 0 $ 0
Audit Fees include amounts related to the audit of the registrant's
annual financial statements and services normally provided by the
principal accountant in connection with statutory and regulatory
filings. Tax fees principally include tax compliance, tax advice, tax
planning and preparation of tax returns.
Aggregate fees billed to the investment adviser and Adviser Affiliates
(as defined below in Item 4(e)) that are required to be pre-approved
pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X for
the last two fiscal years for services rendered by the registrant's
principal accountant were as follows:
2010 2011
(b) Audit-Related Fees.................... $ 0 $ 0
(c) Tax Fees.............................. $ 0 $ 0
(d) All Other Fees........................ $ 0 $ 0
(e) (1) The registrant's audit committee pre-approves all audit services
provided by the registrant's principal accountant for the registrant
and all non-audit services provided by the registrant's principal
accountant for the registrant, its investment adviser and any entity
controlling, controlled by, or under common control with the
investment adviser ("Adviser Affiliates") that provides ongoing
services to the registrant, if the engagement by the investment
adviser or Adviser Affiliate relates directly to the operations and
financial reporting of the registrant. The audit committee has not
presently established any pre-approval policies and procedures that
permit the pre-approval of the above services other than by the full
audit committee. Certain de minimis exceptions are allowed for
non-audit services in accordance with Rule 2-01(c)(7)(i)(C) of
Regulation S-X as set forth in the registrant's audit committee
charter.
(2) No services included in (b)-(d) above in connection with fees
billed to the registrant or the investment adviser or Adviser
Affiliates were approved pursuant to paragraph (c)(7)(i)(C) of Rule
2-01 of Regulation S-X.
(f) Not applicable.
(g) The aggregate fees billed for the most recent fiscal year and the
preceding fiscal year by the registrant's principal accountant for
non-audit services rendered to the registrant, its investment adviser,
and Adviser Affiliates that provide ongoing services to the registrant
for 2010 and 2011 were $125,032 and $881,668, respectively.
(h) Non-audit services rendered to the registrant's investment adviser and
any Adviser Affiliates that provides ongoing services to the
registrant that were not pre-approved pursuant to paragraph (c)(7)(ii)
of Rule 2-01 of Regulation S-X were considered by the registrant's
audit committee as to whether they were compatible with maintaining
the principal accountant's independence.
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 Trustees 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 Item 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 in 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 control over financial reporting.
Item 12. Exhibits.
(a) (1) Code of Ethics applicable to its Principal Executive and Principle
Accounting Officers pursuant to Section 406 of the Sarbanes-Oxley Act
of 2002 attached hereto as Exhibit 99.406. Code of Ethics.
(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: March 9, 2012
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
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John T. Genoy
President
Date: March 9, 2012
By: /s/ Donna M. Handel
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Donna M. Handel
Treasurer
Date: March 9, 2012