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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.
----------------------------------------------------
(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: June 30, 2012
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Item 1. Reports to Stockholders
[PHOTO]
SEMI-ANNUAL REPORT 2012
SUNAMERICA
Money Market Fund
[LOGO]
JUNE 30, 2012 SEMI-ANNUAL REPORT
SUNAMERICA MONEY MARKET FUNDS, INC.
SUNAMERICA MONEY MARKET FUND (SMAXX)
TABLE OF CONTENTS
SHAREHOLDERS' LETTER............................... 1
EXPENSE EXAMPLE.................................... 3
STATEMENT OF ASSETS AND LIABILITIES................ 5
STATEMENT OF OPERATIONS............................ 6
STATEMENT OF CHANGES IN NET ASSETS................. 7
FINANCIAL HIGHLIGHTS............................... 8
PORTFOLIO OF INVESTMENTS........................... 10
NOTES TO FINANCIAL STATEMENTS...................... 12
APPROVAL OF THE INVESTMENT ADVISORY AND MANAGEMENT
AGREEMENT.......................................... 19
RESULTS OF SPECIAL SHAREHOLDER MEETING............. 23
JUNE 30, 2012 SEMI-ANNUAL REPORT
SHAREHOLDERS' LETTER -- (UNAUDITED)
Dear Shareholders,
We are pleased to present this semi-annual shareholder report for the
SunAmerica Money Market Funds, Inc.* for the six months ended June 30, 2012.
For the money markets, it was a period dominated by mixed U.S. and
international economic data, political uncertainty, Federal Reserve Board (the
"Fed") policy and supply/demand conditions within the repurchase agreement and
U.S. Treasury securities markets. All of these factors combined to push money
market yields lower.
Positive developments out of Europe and improving U.S. economic data helped
boost investor sentiment during the first quarter of 2012. The European Central
Bank ("ECB") expanded its balance sheet considerably to ease monetary policy,
and after protracted negotiations, Eurozone officials finally approved a second
rescue package for Greece amounting to 130 billion euros. The ECB also injected
another round of liquidity into markets via its Long-Term Refinancing Operation
(LTRO), further reducing interbank funding pressures. In the U.S., the level of
jobless claims remained consistent with an improving labor market, and the
unemployment rate dropped to 8.3%, near a three-year low. The service and
manufacturing sectors also gained momentum, each growing at a
faster-than-expected pace. Housing market data remained mixed.
In stark contrast to the opening months of 2012, anxiety over Europe's
worsening debt crisis and deteriorating global economic growth led to a broad
sell-off in risk assets during the second quarter. The growing potential for a
Greek exit from the euro and contagion to other peripheral countries further
exacerbated market fears. Even a pro-bailout party win in the Greek elections
in mid-June failed to prop up markets as borrowing costs in Spain soared to new
highs. It was not until the end of June 2012, when significant progress was
made in stabilizing the European crisis that sentiment began to improve. A
summit meeting of European Union leaders produced initiatives to which the
markets responded positively.
Signs of softening in the U.S. economy added to market tension during the
second quarter. In particular, the employment recovery started to lose
momentum. Consumer confidence dropped off amid slowing job growth. Service
sector activity started to cool as the European crisis intensified. U.S.
manufacturing indicators also indicated a decline. On a positive note, data on
U.S. housing brightened. However, U.S. Gross Domestic Product (GDP) was
reported to have slowed from a 3% annualized rate in the fourth quarter of 2011
to 1.9% in the first quarter of 2012. Together, the economic data boosted
market expectations for additional stimulus by the Fed.
What the Fed did do against this backdrop was maintain its accommodative stance
throughout the semi-annual period and reiterate that it would keep the Fed
Funds Rate exceptionally low until at least late 2014. By March, Fed
policymakers had upgraded their assessment of the U.S. economy based on
improving employment data and diminishing strains in the global financial
markets. Interest rates rose sharply in response to the Fed's statements, as
market participants scaled back expectations of a third round of quantitative
easing. At the end of the first quarter, however, weak data for manufacturing
in Europe and further signs of a slowdown in China led to a pullback in yields
on safe-haven government debt. Then in June, the Fed extended through year-end
2012 its Operation Twist program of selling shorter-dated U.S. Treasuries and
purchasing longer-term U.S. Treasuries in an effort to lower long-term interest
rates. The Fed reduced its economic growth outlook, noting deterioration in the
labor market and a slowdown in consumer spending, and signaled its readiness to
take further action if warranted.
With the Fed keeping the targeted Federal Funds Rate unchanged at its 0% to
0.25% range and with no near-term indication of this range changing, money
market yields remained anchored near zero through the semi-annual period and
the taxable money market yield curve was extremely flat, meaning the difference
between yields at the short-term end of the money market yield curve and the
longer-term end was quite narrow. Indeed, with interest rates remaining near
zero and with securities even being offered at negative rates at times, the
semi-annual period did not provide many opportunities to add yield.
1
SHAREHOLDERS' LETTER -- (UNAUDITED) (CONTINUED)
On the following pages, you will find detailed financial statements and
portfolio information for the SunAmerica Money Market Fund for the semi-annual
period ended June 30, 2012.
As discussed above, the money market asset class has been a challenging area.
As always, we remain diligent in the management of your assets. If you have any
questions, or require additional information on this or other SunAmerica Mutual
Funds, you may contact your financial advisor or visit us at www.safunds.com.
We value your ongoing confidence in us and look forward to serving your
investment needs in the future.
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.
*Effective March 2, 2012, the SunAmerica Municipal Money Market Fund was
liquidated.
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.
2
SUNAMERICA MONEY MARKET FUNDS, INC.
EXPENSE EXAMPLE -- JUNE 30, 2012 -- (UNAUDITED)
DISCLOSURE OF PORTFOLIO EXPENSES IN SHAREHOLDER REPORTS
As a shareholder in the SunAmerica Money Market Fund, 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 Fund and to compare these costs with the
ongoing costs of investing in other mutual funds. The Example is based on an
investment of $1,000 invested at January 1, 2012 and held until June 30, 2012.
ACTUAL EXPENSES
The "Actual" section of the table provides information about actual account
values and actual expenses. You may use the information in these columns,
together with the amount you invested, to estimate the expenses that you paid
over the period. Simply divide your account value by $1,000 (for example, an
$8,600 account value divided by $1,000 = 8.6), then multiply the result by the
number in the column under the heading entitled "Expenses Paid During the Six
Months Ended June 30, 2012" to estimate the expenses you paid on your account
during this period. For shareholder accounts in classes other than Class I, the
"Expenses Paid During the Six Months Ended June 30, 2012" column does not
include small account fees that may be charged if your account balance is below
$500 ($250 for retirement plan accounts). In addition, the "Expenses Paid
During the Six Months Ended June 30, 2012" column does not include
administrative fees that may apply to qualified retirement plan accounts. See
the Fund's prospectus, your retirement plan documents and/or materials from
your financial adviser for a full description of these fees. Had these fees
been included, the "Expenses Paid During the Six Months Ended June 30, 2012"
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 Portfolio and other funds. To do so, compare this 5%
hypothetical example with the 5% hypothetical examples that appear in the
shareholder reports of other funds. For shareholder accounts in classes other
than Class I, the "Expenses Paid During the Six Months Ended June 30, 2012"
column does not include small account fees that may be charged if your account
balance is below $500 ($250 for retirement plan accounts). In addition, the
"Expenses Paid During the Six Months Ended June 30, 2012" column does not
include administrative fees that may apply to qualified retirement plan
accounts. See the Fund's prospectus, your retirement plan documents and/or
materials from your financial adviser for a full description of these fees. Had
these fees been included, the "Expenses Paid During the Six Months Ended June
30, 2012" column would have been higher and the "Ending Account Value" would
have been lower.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transaction costs, including
contingent deferred sales charges, small account fees and administrative fees,
if applicable to your account. Please refer to the Fund's prospectus, qualified
retirement plan document and/or materials from your financial adviser for more
information. Therefore, the "Hypothetical" example is useful in comparing
ongoing costs only, and will not help you determine the relative total costs of
owning different funds. In addition, if these transaction costs and other fees
were included, your costs would have been higher.
3
SUNAMERICA MONEY MARKET FUNDS, INC.
EXPENSE EXAMPLE -- JUNE 30, 2012 -- (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
AT JANUARY 1, 2012 AT JUNE 30, 2012 JUNE 30, 2012* AT JANUARY 1, 2012 AT JUNE 30, 2012 JUNE 30, 2012*
- ------------------ ---------------- ---------------- ------------------ ----------------- ----------------
Money Market
Fund#
Class A..... $1,000.00 $1,000.05 $1.04 $1,000.00 $1,023.82 $1.06
Class I..... $1,000.00 $1,000.05 $1.04 $1,000.00 $1,023.82 $1.06
EXPENSE
RATIO AS OF
JUNE 30, 2012*
- --------------
Money Market
Fund#
Class A..... 0.21%
Class I..... 0.21%
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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 182 days divided by 366
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 Fund. As a result, if these fees and
expenses had not been waived/reimbursed, the "Actual/Hypothetical Ending
Account Value" would have been lower and the "Actual/Hypothetical Expenses
Paid During the Six Months Ended June 30, 2012" and the "Expense Ratios"
would have been higher.
4
SUNAMERICA MONEY MARKET FUNDS, INC.
STATEMENT OF ASSETS AND LIABILITIES -- JUNE 30, 2012 -- (UNAUDITED)
MONEY MARKET
FUND
------------
ASSETS:
Investments at value* (unaffiliated)............................... $542,551,659
Repurchase agreements (cost approximates value).................... 127,293,000
------------
Total Investments................................................ $669,844,659
------------
Cash............................................................... 949
Receivable for:
Fund shares sold................................................. 63,222
Dividends and interest........................................... 529,489
Prepaid expenses and other assets.................................. 7,383
Due from investment adviser for expense reimbursements/fee waivers. 317,186
Due from distributor for fee waivers............................... 80,398
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Total assets..................................................... 670,843,286
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LIABILITIES:
Payable for:
Fund shares redeemed............................................. 205,792
Investments purchased............................................ 13,280,000
Investment advisory and management fees.......................... 271,116
Distribution and service maintenance fees........................ 80,398
Transfer agent fees and expenses................................. 134,606
Dividends payable................................................ 21,119
Directors' fees and expenses..................................... 31,460
Other accrued expenses........................................... 180,254
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Total liabilities................................................ 14,204,745
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Net Assets...................................................... $656,638,451
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NET ASSETS REPRESENTED BY:
Common stock, $.001 par value (10 billion shares authorized)....... $ 657,790
Paid-in capital.................................................... 657,207,051
------------
657,864,841
Accumulated undistributed net investment income (loss)............. (28,364)
Accumulated realized gain (loss) on investment..................... (1,198,026)
------------
Net assets...................................................... $656,638,451
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CLASS A:
Net assets......................................................... $641,987,920
Shares outstanding................................................. 643,136,111
Net asset value and redemption price per share
(excluding any applicable contingent deferred sales charge)....... $ 1.00
============
CLASS I:
Net assets......................................................... $ 14,650,531
Shares outstanding................................................. 14,653,820
Net asset value and redemption price per share..................... $ 1.00
============
*Amortized cost of investment securities (unaffiliated) ........... $542,551,659
============
See Notes to Financial Statements
5
SUNAMERICA MONEY MARKET FUNDS, INC.
STATEMENT OF OPERATIONS -- FOR THE SIX MONTHS ENDED JUNE 30, 2012 --
(UNAUDITED)
MONEY MARKET
FUND
------------
INVESTMENT INCOME:
Interest (unaffiliated)................................................................ $ 741,884
-----------
Total investment income............................................................. 741,884
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EXPENSES:
Investment advisory and management fees................................................ 1,648,765
Distribution and service maintenance fees:
Class A.............................................................................. 488,910
Transfer agent fees and expenses:
Class A.............................................................................. 743,089
Class I.............................................................................. 16,180
Registration fees:
Class A.............................................................................. 19,359
Class I.............................................................................. 2,733
Custodian and accounting fees.......................................................... 65,615
Reports to shareholders................................................................ 100,150
Audit and tax fees..................................................................... 19,625
Legal fees............................................................................. 11,872
Directors' fees and expenses........................................................... 43,477
Other expenses......................................................................... 10,753
-----------
Total expenses before fee waivers, expense reimbursements and custody credits....... 3,170,528
Fees waived and expenses reimbursed by investment adviser and distributor (Note 3).. (2,461,324)
Custody credits earned on cash balances............................................. (270)
-----------
Net expenses........................................................................ 708,934
-----------
Net investment income (loss)........................................................... 32,950
-----------
Net realized gain (loss) on investments................................................ 12,915
-----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS........................ $ 45,865
===========
See Notes to Financial Statements
6
SUNAMERICA MONEY MARKET FUNDS, INC.
STATEMENT OF CHANGES IN NET ASSETS
MONEY MARKET FUND
--------------------------
FOR THE
SIX MONTHS
ENDED FOR THE YEAR
JUNE 30, ENDED
2012 DECEMBER 31,
(UNAUDITED) 2011
------------ ------------
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income (loss)........................................................... $ 32,950 $ 70,884
Net realized gain (loss) on investments................................................ 12,915 166
------------ ------------
Net increase (decrease) in net assets resulting from operations.......................... $ 45,865 $ 71,050
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (Class A)........................................................ (32,741) (69,254)
Net investment income (Class I)........................................................ (732) (1,442)
------------ ------------
Total distributions to shareholders...................................................... (33,473) (70,696)
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS (NOTE 5). (51,513,949) (26,506,418)
------------ ------------
TOTAL INCREASE (DECREASE) IN NET ASSETS.................................................. (51,501,557) (26,506,064)
------------ ------------
NET ASSETS:
Beginning of period...................................................................... 708,140,008 734,646,072
------------ ------------
End of period*........................................................................... $656,638,451 $708,140,008
============ ============
*Includes accumulated undistributed net investment income (loss)......................... $ (28,364) $ (27,841)
============ ============
See Notes to Financial Statements
7
SUNAMERICA MONEY MARKET FUNDS, INC.
FINANCIAL HIGHLIGHTS
MONEY MARKET FUND
-----------------
NET NET RATIO OF NET
ASSET DIVIDENDS ASSET NET ASSETS RATIO OF INVESTMENT
VALUE NET FROM NET VALUE END OF EXPENSES INCOME TO
BEGINNING INVESTMENT INVESTMENT END OF TOTAL PERIOD TO AVERAGE AVERAGE
PERIOD ENDED OF PERIOD INCOME(1) INCOME PERIOD RETURN(2) (000'S) NET ASSETS NET ASSETS
------------ --------- ---------- ---------- ------ --------- ---------- ---------- ------------
CLASS A
-------
12/31/07 $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)
06/30/12(7) 1.00 0.00 (0.00) 1.00 0.00 641,988 0.21(3)(8) 0.01(3)(8)
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)
06/30/12(7) 1.00 0.00 (0.00) 1.00 0.00 14,651 0.21(3)(8) 0.01(3)(8)
--------
(1) Calculated based upon average shares outstanding.
(2) Total return is not annualized and does not reflect sales load but does
include expense reimbursements.
(3) Net of the following expense reimbursements/waivers (based on average net
assets):
12/31/07 12/31/08 12/31/09 12/31/10 12/31/11 06/30/12(7)(8)
-------- -------- -------- -------- -------- --------------
Class A............. -- % -- % 0.21% 0.64% 0.76% 0.74%
Class I............. 0.04 0.18 0.34 0.51 0.60 0.65
(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
would have 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.
(7)Unaudited
(8)Annualized
See Notes to Financial Statements
8
SUNAMERICA MONEY MARKET FUND
PORTFOLIO PROFILE -- JUNE 30, 2012 -- (UNAUDITED)
INDUSTRY ALLOCATION*
U.S. Government Agencies.......... 38.0%
Repurchase Agreement.............. 19.4
U.S. Government Treasuries........ 9.4
Foreign Banks..................... 8.2
Diversified Financial Services.... 6.7
Money Center Banks................ 5.7
Commercial Banks-Canadian......... 4.5
Super-Regional Banks-US........... 4.1
Commercial Banks.................. 2.1
Domestic Banks.................... 2.1
Finance........................... 1.8
-----
102.0%
=====
Weighted average days to maturity. 50.1
CREDIT QUALITY ALLOCATION @#
A-1.......................... 99.2%
A-2.......................... 0.7
Not Rated+................... 0.1
-----
100.0%
=====
--------
* Calculated as a percentage of net assets.
@ Source: Standard & Poors.
# Calculated as a percentage of total debt issues.
+ Represents debt issues that have either no rating or the rating is
unavailable from the data source.
9
SUNAMERICA MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS -- JUNE 30, 2012 -- (UNAUDITED)
PRINCIPAL VALUE
SECURITY DESCRIPTION AMOUNT (NOTE 2)
SHORT-TERM INVESTMENT SECURITIES -- 82.6%
CERTIFICATES OF DEPOSIT -- 22.8%
Citibank NA
0.37% due 07/09/12.................. $13,240,000 $ 13,240,000
Citibank NA
0.42% due 07/30/12.................. 12,000,000 12,000,000
Deutsche Bank AG NY FRS
0.67% due 03/15/13.................. 13,000,000 13,000,000
Nordea Bank Finland PLC NY FRS
0.87% due 09/13/12.................. 14,750,000 14,762,403
Rabobank Nederland NV NY FRS
0.57% due 01/18/13.................. 12,850,000 12,850,000
Royal Bank of Canada NY
0.45% due 04/02/13.................. 11,150,000 11,157,721
Royal Bank of Canada NY FRS
0.48% due 07/09/12.................. 17,750,000 17,750,072
Royal Bank of Canada NY
0.55% due 11/07/12.................. 750,000 750,400
State Street Bank and Trust Co.
0.20% due 08/28/12.................. 14,000,000 14,000,000
Svenska Handelsbanken NY
0.26% due 07/02/12.................. 13,500,000 13,500,000
Svenska Handelsbanken NY
0.26% due 08/17/12.................. 12,900,000 12,900,000
Wells Fargo & Co.
0.17% due 09/17/12.................. 14,050,000 14,050,000
------------
TOTAL CERTIFICATES OF DEPOSIT
(amortized cost $149,960,596)...... 149,960,596
------------
COMMERCIAL PAPER -- 2.1%
Nordea North America, Inc.
0.30% due 09/07/12
(amortized cost $13,992,067)........ 14,000,000 13,992,067
------------
U.S. CORPORATE BONDS & NOTES -- 8.5%
Bank of America NA
0.24% due 07/11/12.................. 13,260,000 13,260,000
Bank of America NA
0.45% due 07/24/12.................. 13,300,000 13,300,000
Citigroup Funding, Inc. FRS
FDIC Guar. Notes
0.52% due 07/12/12.................. 4,530,000 4,530,572
JPMorgan Chase & Co. FRS
1.12% due 02/26/13.................. 17,370,000 17,448,393
JPMorgan Chase & Co.
5.38% due 10/01/12.................. 7,000,000 7,085,560
------------
TOTAL U.S. CORPORATE BOND & NOTES
(amortized cost $55,624,525)....... 55,624,525
------------
MEDIUM TERM NOTES -- 1.8%
General Electric Capital Corp. FRS
0.60% due 11/01/12.................. 1,570,000 1,571,279
General Electric Capital Corp. FRS
0.64% due 07/27/12.................. 8,100,000 8,101,325
General Electric Capital Corp.
FDIC Guar. Notes
2.00% due 09/28/12.................. 980,000 984,311
General Electric Capital Corp.
3.50% due 08/13/12.................. 900,000 903,295
------------
TOTAL MEDIUM TERM NOTES
(amortized cost $11,560,210)....... 11,560,210
------------
PRINCIPAL VALUE
SECURITY DESCRIPTION AMOUNT (NOTE 2)
U.S. GOVERNMENT AGENCIES -- 38.0%
Agency for International Development
Panama FRS
0.56% due 05/15/15.................. $ 825,393 $ 826,199
Federal Farm Credit Bank
0.07% due 08/24/12................. 3,400,000 3,399,643
0.18% due 06/04/13................. 13,130,000 13,128,784
0.19% due 01/28/13................. 5,200,000 5,194,209
0.20% due 07/02/13................. 13,280,000 13,280,000
0.25% due 08/20/12................. 15,250,000 15,252,963
0.26% due 08/28/13................. 4,100,000 4,100,962
0.28% due 07/10/13................. 1,230,000 1,230,888
Federal Farm Credit Bank FRS
0.20% due 09/24/12................. 2,980,000 2,980,209
0.20% due 08/06/13................. 13,130,000 13,128,560
0.22% due 02/11/13................. 28,000,000 28,000,000
0.23% due 08/17/12................. 4,000,000 3,999,948
0.23% due 10/19/12................. 13,000,000 12,999,609
0.25% due 11/13/12................. 10,000,000 10,001,888
0.25% due 03/06/13................. 7,790,000 7,791,326
Federal Home Loan Bank
0.07% due 08/02/12................. 8,000,000 7,999,502
0.11% due 08/01/12................. 4,400,000 4,399,583
0.13% due 07/27/12................. 2,650,000 2,649,751
0.18% due 02/15/13................. 8,150,000 8,148,317
0.21% due 04/08/13................. 6,420,000 6,409,477
Federal Home Loan Bank FRS
0.18% due 11/01/12................. 5,310,000 5,310,941
0.21% due 07/13/12................. 12,400,000 12,399,980
0.22% due 04/09/13................. 11,550,000 11,550,000
Federal Home Loan Mtg. Corp.
0.13% due 07/16/12.................. 5,790,000 5,789,686
Federal Home Loan Mtg. Corp. FRS
0.19% due 02/04/13................. 4,820,000 4,821,746
0.19% due 05/16/13................. 2,300,000 2,300,000
0.29% due 10/12/12................. 2,000,000 2,000,226
Federal National Mtg. Assoc.
0.13% due 09/27/12................. 14,050,000 14,045,535
0.27% due 11/23/12................. 750,000 749,794
0.38% due 12/28/12................. 5,350,000 5,355,335
Federal National Mtg. Assoc. FRS
0.24% due 07/26/12................. 2,000,000 2,000,169
0.43% due 12/20/12................. 18,450,000 18,476,683
------------
TOTAL U.S. GOVERNMENT AGENCIES
(amortized cost $249,721,913)...... 249,721,913
------------
U.S. GOVERNMENT TREASURIES -- 9.4%
United States Treasury Bills
0.07% due 07/05/12................. 8,000,000 7,999,938
0.17% due 03/07/13................. 5,800,000 5,793,180
0.18% due 04/04/13................. 14,350,000 14,330,047
United States Treasury Notes
1.38% due 01/15/13................. 12,850,000 12,932,579
1.38% due 02/15/13................. 12,970,000 13,065,948
3.88% due 02/15/13................. 7,400,000 7,570,656
------------
TOTAL U.S. GOVERNMENT TREASURIES
(amortized cost $61,692,348)....... 61,692,348
------------
TOTAL SHORT-TERM INVESTMENT SECURITIES -- 82.6%
(amortized cost $542,551,659)...... 542,551,659
------------
10
SUNAMERICA MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS -- JUNE 30, 2012 -- (UNAUDITED) (CONTINUED)
PRINCIPAL VALUE
SECURITY DESCRIPTION AMOUNT (NOTE 2)
REPURCHASE AGREEMENT -- 19.4%
UBS Securities LLC
Joint Repurchase Agreement(1)
(cost $127,293,000).................. $127,293,000 $127,293,000
------------
TOTAL INVESTMENTS
(amortized cost $669,844,659)(2).... 102.0% 669,844,659
LIABILITIES IN EXCESS OF OTHER ASSETS. (2.0) (13,206,208)
------------ ------------
NET ASSETS............................ 100.0% $656,638,451
============ ============
--------
(1)See Note 2 for details of Joint Repurchase Agreements.
(2)At June 30, 2012, the cost of securities for federal income tax purposes was
the same for book purposes.
FDIC--FederalDeposit Insurance Corp.
FRS--FloatingRate Securities
The rates shown on FRS are the current interest rates at June 30, 2012 and
unless noted otherwise, the dates shown are the original maturity dates.
The following is a summary of the inputs used to value the Fund's net assets as
of June 30, 2012 (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........... $-- $149,960,596 $-- $149,960,596
Commercial Paper.................. -- 13,992,067 -- 13,992,067
U.S. Corporate Bonds & Notes...... -- 55,624,525 -- 55,624,525
Medium Term Notes................. -- 11,560,210 -- 11,560,210
U.S. Government Agencies.......... -- 249,721,913 -- 249,721,913
U.S. Government Treasuries........ -- 61,692,348 -- 61,692,348
Repurchase Agreement............... -- 127,293,000 -- 127,293,000
--- ------------ --- ------------
TOTAL................................ $-- $669,844,659 $-- $669,844,659
=== ============ === ============
The Fund's policy is to recognize transfers in and transfers out as of the end
of the reporting period. There were no transfers between levels.
See Notes to Financial Statements
11
SUNAMERICA MONEY MARKET FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS -- JUNE 30, 2012 -- (UNAUDITED)
NOTE 1. ORGANIZATION
SunAmerica Money Market Funds, Inc. (the "Corporation") is an open-end
diversified management investment company organized as a Maryland
corporation. The Corporation consists of one series -- SunAmerica Money
Market Fund ("the Fund"). On March 2, 2012, the SunAmerica Municipal Money
Market Fund was liquidated. The 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 of the Fund is to seek 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 Fund currently offers two classes of shares: Class A and Class I. These
classes within the Fund 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 Fund's 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 Fund's
registration statement.
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 Fund in the preparation of
its financial statements:
SECURITY VALUATIONS: In accordance with the authoritative guidance on fair
value measurements and disclosures under accounting principles generally
accepted in the United States of America ("GAAP"), the Fund discloses the
fair value of its investments in a hierarchy that prioritizes the inputs to
valuation techniques used to measure the fair value. In accordance with
GAAP, fair value is defined as the price that the Fund would receive upon
selling an asset or transferring a liability in a timely transaction to an
independent third party in the principal or most advantageous market. GAAP
established a three-tier hierarchy to provide more transparency around the
inputs used to measure fair value and to establish classification of fair
value measurements for disclosure purposes. Inputs refer broadly to the
assumptions that market participants would use in pricing the asset or
liability, including assumptions about risk. Inputs may be observable or
unobservable. Observable inputs are inputs that reflect the assumptions
market participants would use in pricing the asset or liability developed
based on market data obtained from sources independent of the reporting
entity. Unobservable inputs are inputs that reflect the reporting entity's
own assumptions
12
SUNAMERICA MONEY MARKET FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS -- JUNE 30, 2012 -- (UNAUDITED)
(CONTINUED)
about the assumptions market participants would use in pricing the asset or
liability developed based on the best information available in the
circumstances. The three-tiers are as follows:
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 indices, 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 Fund's own assumptions about the assumptions
market participants would use in pricing the security,
developed based on the best information available under the
circumstances.)
Changes in valuation techniques may result in transfers in or out of an
investment's assigned Level within the hierarchy. The methodology used for
valuing investments are not necessarily an indication of the risk associated
with investing in those investments and the determination of the
significance of a particular input to the fair value measurement in its
entirety requires judgment and consideration of factors specific to each
security.
The availability of observable inputs can vary from security to security and
is affected by a wide variety of factors, including, for example, the type
of security, whether the security is recently issued and not yet established
in the marketplace, the liquidity of markets, and other characteristics
particular to the security. To the extent that valuation is based on models
or inputs that are less observable or unobservable in the market, the
determination of fair value requires more judgment. Accordingly, the degree
of judgment exercised in determining fair value is greatest for instruments
categorized in Level 3.
The summary of inputs used to value the Fund's net assets as of June 30,
2012 are reported on a schedule following the Portfolio of Investments.
Portfolio securities are valued at amortized cost, which approximates market
value, and are generally categorized as Level 2. The amortized cost method
involves valuing a security at its cost on the date of purchase and
thereafter assuming a constant amortization/accretion to maturity of any
discount or premium. In accordance with rule 2a-7 under the Investment
Company Act of 1940, as amended (the "1940 Act"), the Corporation's Board of
Directors ("Board") has adopted procedures intended to stabilize the Fund's
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 Fund's market-based net asset value per share deviates from the
Fund's amortized cost per share. The calculation of such deviation is
referred to as "Shadow Pricing". For purposes of these market-based
valuations, securities for which market quotations are not readily available
are fair valued, as determined pursuant to procedures adopted in good faith
by the Board.
The Board is responsible for the share valuation process and has adopted a
policy and procedures (the "PRC Procedures") for valuing the securities and
other assets held by the Fund, including procedures for the fair valuation
of securities and other assets for which market quotations are not readily
available or are unreliable. The PRC Procedures provide for the
establishment of a pricing review committee, which is responsible for, among
other things, making certain determinations in connection with the Fund's
fair valuation procedures. Securities for which market quotations are not
readily available or the values of which may be significantly impacted by
the occurrence of developments or significant events are generally
categorized as Level 3. There is no single standard for making fair value
determinations, which may result in prices that vary from those of other
funds.
REPURCHASE AGREEMENTS: The Fund, along with other affiliated registered
investment companies, pursuant to procedures adopted by the Board and
applicable guidance from the Securities and Exchange Commission (the "SEC"),
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. In a
13
SUNAMERICA MONEY MARKET FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS -- JUNE 30, 2012 -- (UNAUDITED)
(CONTINUED)
repurchase agreement, the seller of a security agrees to repurchase the
security at a mutually agreed-upon time and price, which reflects the
effective rate of return for the term of the agreement. For repurchase
agreements and joint repurchase agreements, the Fund's custodian takes
possession of the collateral pledged for investments in such repurchase
agreements. The underlying collateral is valued daily on a mark-to-market
basis, plus accrued interest, to ensure that the value, at the time the
agreement is entered into, is equal to at least 102% of the repurchase
price, including accrued interest. In the event of default of the obligation
to repurchase, a Fund has the right to liquidate the collateral and apply
the proceeds in satisfaction of the obligation. If the seller defaults and
the value of the collateral declines or if bankruptcy proceedings are
commenced with respect to the seller of the security, realization of the
collateral by the Funds may be delayed or limited.
As of June 30, 2012, the Fund held an undivided interest in the joint
repurchase agreement with UBS Securities LLC:
PERCENTAGE PRINCIPAL
OWNERSHIP AMOUNT
---------- ------------
Money Market Fund................................. 50.92% $127,293,000
As of such date, the repurchase agreement in that joint account and the
collateral therefore were as follows:
UBS Securities LLC, dated June 29, 2012, bearing interest at a rate of 0.12%
per annum, with a principal amount of $250,000,000, a repurchase price of
$250,002,500, and a maturity date of July 2, 2012. The repurchase agreement
is collateralized by the following:
INTEREST MATURITY PRINCIPAL
TYPE OF COLLATERAL RATE DATE AMOUNT VALUE
------------------ -------- --------- ----------- ------------
U.S. Treasury Inflation
Indexed Bonds............... 1.13% 1/15/2021 $31,986,100 $ 38,863,112
U.S. Treasury Inflation
Indexed Bonds............... 1.75 1/15/2028 90,000,000 124,875,000
U.S. Treasury Inflation
Indexed Bonds............... 2.00 7/15/2014 70,000,000 91,262,500
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). 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
Fund records dividends and distributions to its 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 assets
are not affected by these reclassifications.
The 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. The Fund files U.S. federal and
certain state income tax returns. With few
14
SUNAMERICA MONEY MARKET FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS -- JUNE 30, 2012 -- (UNAUDITED)
(CONTINUED)
exceptions, the Fund is no longer subject to U.S. federal and state tax
examinations by tax authorities for tax years ending before 2008.
NOTE 3. INVESTMENT ADVISORY AND MANAGEMENT AGREEMENT, DISTRIBUTION AND SERVICE
AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES
The Fund has entered into an Investment Advisory and Management Agreement
(the "Advisory Agreement") with SunAmerica. Under the Advisory Agreement,
SunAmerica provides continuous supervision of the Fund and administers the
its corporate affairs, subject to general review by the Board. In connection
therewith, SunAmerica furnishes the Fund with office facilities, maintains
certain of its books and records, and pays the salaries and expenses of all
personnel, including officers of the Fund who are employees of SunAmerica
and its affiliates.
The Fund will pay SunAmerica a monthly management fee at the following
annual percentages, based on the average daily net assets of the Fund: 0.50%
on the first $600 million; 0.45% on the next $900 million; and 0.40% over
$1.5 billion.
SunAmerica has contractually agreed to waive fees and/or reimburse expenses
to the extent necessary to cap the Fund's annual fund operating expenses at
0.80% for Class I, of 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. For the six months ended June 30, 2012, pursuant to the
contractual expense limitations, SunAmerica waived fees and/or reimbursed
expenses of $4,120 for Class I.
SunAmerica may also voluntarily waive fees and/or reimburse expenses,
including to avoid a negative yield on any class of the Fund. 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 the Fund will
be able to avoid a negative yield. For the six months ended June 30, 2012,
SunAmerica voluntarily waived fees and/or reimbursed expenses of $1,925,556
and $42,738 for Class A and Class I, respectively.
The Fund has entered into a Distribution Agreement with SunAmerica Capital
Services, Inc. ("SACS" or the "Distributor"), an affiliate of the Adviser.
The Fund has adopted a Distribution Plan on behalf of its Class A shares
(the "Plan") in accordance with the provisions of Rule 12b-1 under the 1940
Act. In adopting the Plan, the Board determined that there was a reasonable
likelihood that the 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 Plan provides that the Class A shares of the Fund 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 Fund by their customers. Accordingly,
SACS received fees (see Statement of Operations) based upon the
aforementioned rates. In addition, in light of current market conditions,
and in order to avoid a negative yield on Class A shares of the Fund, SACS
has agreed to waive up to 0.15% of the fees it receives under the Plans.
This voluntary waiver may be terminated at any time at the option of the
Distributor without notice to shareholders. For the period ended June 30,
2012, SACS voluntarily waived fees as follows: Class A $488,910.
SACS receives the proceeds of contingent deferred sales charges paid by
investors in connection with certain redemptions of the Fund's Class A
shares. SACS has advised the Fund for the period ended June 30, 2012, there
were no proceeds received from redemptions.
15
SUNAMERICA MONEY MARKET FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS -- JUNE 30, 2012 -- (UNAUDITED)
(CONTINUED)
The Fund has 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 Fund's
transfer agent in connection with the services that it offers to the
shareholders of the Fund. The Service Agreement, which permits the Fund to
compensate SAFS for services rendered based upon the annual rate of 0.22% of
average daily net assets, is approved annually by the Board. For the period
ended June 30, 2012, the Fund 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
EXPENSES JUNE 30, 2012
-------- -------------
Class A............................ $717,068 $117,917
Class I............................ 16,063 2,609
As of June 30, 2012, 85% of the 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 of the date of this report, the United States Department of the Treasury
("Department of the Treasury") owned a majority of outstanding shares of
common stock of American International Group, Inc. ("AIG"), ultimate parent
of SunAmerica, SACS and SAFS. AIG has stated that it understands that,
subject to market conditions, the Department of the Treasury intends to
dispose of its ownership interest in AIG over time, and that AIG has granted
certain registration rights to the Department of the Treasury to facilitate
such sales.
NOTE 4. FEDERAL INCOME TAXES
The following details the tax basis distributions as well as the components
of distributable earnings. The tax basis components of distributable
earnings differ from the amounts reflected in the Statement of Assets and
Liabilities by temporary book/tax differences primarily arising from
dividends payable, capital contributions and cumulative pension expenses.
DISTRIBUTABLE EARNINGS TAX DISTRIBUTIONS
----------------------------------------------------- ------------------
FOR THE YEAR ENDED DECEMBER 31, 2011
------------------------------------------------------------------------
LONG-TERM GAINS/ LONG-TERM
ORDINARY CAPITAL AND UNREALIZED ORDINARY CAPITAL
INCOME OTHER LOSSES APPRECIATION (DEPRECIATION) INCOME GAINS
-------- ---------------- --------------------------- -------- ---------
$ -- $(1,210,777) $ -- $70,696 $ --
At December 31, 2011, for Federal income tax purposes, the Fund has capital
loss carryforwards available to offset future capital gains of $1,210,777
expiring in 2016 and $0 unlimited long-term capital losses.+
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, Fund
elected to defer post October long-term capital losses in the amount of $164.
--------
+ 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.
16
SUNAMERICA MONEY MARKET FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS -- JUNE 30, 2012 -- (UNAUDITED)
(CONTINUED)
NOTE 5. CAPITAL SHARE TRANSACTIONS
Transactions in each class of shares of the Fund, all at $1.00 per share,
for the year period ended June 30, 2012 and for the prior year were as
follows:
MONEY MARKET FUND
------------------------------------------------------
CLASS A CLASS A CLASS I CLASS I
------------- ------------- ----------- ------------
FOR THE SIX FOR THE SIX
MONTHS MONTHS
ENDED FOR THE YEAR ENDED FOR THE YEAR
JUNE 30, ENDED JUNE 30, ENDED
2012 DECEMBER 31, 2012 DECEMBER 31,
(UNAUDITED) 2011 (UNAUDITED) 2011
------------- ------------- ----------- ------------
Shares sold............. $ 219,014,802 $ 654,745,945 $ 4,129,262 $ 9,890,008
Reinvested dividends.... 31,870 66,993 726 1,416
Shares redeemed......... (269,585,664) (681,969,401) (5,104,945) (9,241,379)
------------- ------------- ----------- -----------
Net increase (decrease). $ (50,538,992) $ (27,156,463) $ (974,957) $ 650,045
============= ============= =========== ===========
NOTE 6. DIRECTORS' RETIREMENT PLAN
The Directors of the Corporation 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
--------------- --------------- ---------------
AS OF JUNE 30, 2012
-----------------------------------------------
$20,140 $532 $2,440
17
SUNAMERICA MONEY MARKET FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS -- JUNE 30, 2012 -- (UNAUDITED)
(CONTINUED)
NOTE 7. INTERFUND LENDING
Pursuant to exemptive relief granted by the SEC, the Fund is 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 six months ended June 30, 2012, the Fund did
not participate in the program.
18
SUNAMERICA MONEY MARKET FUNDS, INC.
APPROVAL OF THE INVESTMENT ADVISORY AND MANAGEMENT AGREEMENT -- JUNE
30, 2012 -- (UNAUDITED)
The Board of the Corporation, including the Disinterested Directors of the
Corporation, and SunAmerica, approved the continuation of the Advisory
Agreement between the Corporation, on behalf of the Fund, and SunAmerica for a
one-year period ending June 30, 2013 at an in-person meeting held on May 29,
2012 (the "Meeting"). The Fund is the only current series of the Corporation.
In accordance with Section 15(c) of the 1940 Act, the Board requested and
SunAmerica provided materials relating to the Board's consideration of whether
to approve the continuation of the Advisory Agreement. These materials included
(a) a summary of the services provided to the Fund by SunAmerica and its
affiliates; (b) information independently compiled and prepared by Lipper, Inc.
("Lipper") on fees and expenses of the Fund, and the investment performance of
the Fund as compared with a peer group of funds, along with fee and performance
data with respect to the Fund and any other mutual funds or other accounts
advised or subadvised by SunAmerica with similar investment objectives and/or
strategies, as applicable; (c) information on the profitability of SunAmerica,
and its affiliates, and a discussion relating to indirect benefits; (d) a
report on economies of scale; (e) information about SunAmerica's general
compliance policies and procedures; (f) information about SunAmerica's risk
management process; (g) information about brokerage and soft dollar practices;
and (h) information about the key personnel of SunAmerica, and its affiliates,
that are involved in the investment management, administration, compliance and
risk management activities with respect to the Fund, as well as current and
projected staffing levels and compensation practices.
In determining whether to approve the continuation of the Advisory Agreement,
the Board, including the Disinterested Directors, considered at the Meeting,
and from time to time as appropriate, factors that it deemed relevant,
including the following information:
NATURE, EXTENT AND QUALITY OF SERVICES PROVIDED BY SUNAMERICA.
The Board, including the Disinterested Directors, considered the nature,
quality and extent of services provided by SunAmerica. The Board noted that the
services include acting as investment manager and adviser to the Fund, managing
the daily business affairs of the Fund, and obtaining and evaluating economic,
statistical and financial information to formulate and implement investment
policies. Additionally, the Board observed that SunAmerica provides office
space, bookkeeping, accounting, legal and compliance, clerical and
administrative services and has authorized its officers and employees, if
elected, to serve as officers or Directors of the Fund without compensation.
Finally, the Board noted that SunAmerica is responsible for monitoring and
reviewing the activities of affiliated and unaffiliated third-party service
providers. In addition to the quality of the advisory services provided by
SunAmerica, the Board considered the quality of the administrative and other
services provided by SunAmerica to the Fund pursuant to the Advisory Agreement.
In connection with the services provided by SunAmerica, the Board analyzed the
structure and duties of SunAmerica's fund administration, accounting,
operations, legal and compliance departments and concluded that they were
adequate to meet the needs of the Fund. The Board also reviewed the personnel
responsible for providing advisory services to the Fund and other key personnel
of SunAmerica in addition to current and projected staffing levels and
compensation practices and concluded, based on its experience and interaction
with SunAmerica, that: (i) SunAmerica has been able to retain quality portfolio
managers, analysts and other personnel; (ii) SunAmerica has exhibited a high
level of diligence and attention to detail in carrying out its advisory and
other responsibilities under the Advisory Agreement; (iii) SunAmerica has been
responsive to requests of the Board; and (iv) SunAmerica has kept the Board
apprised of developments relating to the Fund and the industry in general. The
Board concluded that the nature and extent of services provided under the
Advisory Agreement were reasonable and appropriate in relation to the
management fee and that the quality of services continues to be high.
The Board also considered SunAmerica's reputation and long-standing
relationship with the Fund and considered the benefit to shareholders of
investing in funds that are part of a family of funds offering a variety of
types of mutual funds and shareholder services. The Board considered
SunAmerica's experience in providing management and investment advisory and
administrative services to advisory clients and noted that as of March 31,
2012, SunAmerica managed, advised and/or administered approximately $46.3
billion in assets. In addition, the Board considered SunAmerica's code of
ethics and its commitment to compliance generally and with respect to its
management and administration of the Fund. The Board also considered
SunAmerica's risk management process. The Board further observed that
SunAmerica has
19
SUNAMERICA MONEY MARKET FUNDS, INC.
APPROVAL OF THE INVESTMENT ADVISORY AND MANAGEMENT AGREEMENT -- JUNE
30, 2012 -- (UNAUDITED) (CONTINUED)
developed internal procedures for monitoring compliance with the investment
objectives, policies and restrictions of the Fund as set forth in the Fund's
prospectuses. The Board also reviewed SunAmerica's compliance and regulatory
history and noted that there were no material legal, regulatory or compliance
issues that would potentially impact SunAmerica from effectively serving as the
investment adviser to the Funds.
INVESTMENT PERFORMANCE.
The Board, including the Disinterested Directors, also considered the
investment performance of SunAmerica with respect to the Fund. In connection
with its review, the Board received and reviewed information regarding the
investment performance of the Fund as compared to the Fund's peer group ("Peer
Group") and/or peer universe ("Peer Universe") as independently determined by
Lipper and to an appropriate index or combination of indices, including the
Fund's benchmarks. The Board was provided with a description of the methodology
used by Lipper to select the funds in the Peer Group and Peer Universe.
It was noted that performance information was for the periods ended March 31,
2012. The Board also noted that it regularly reviews the performance of the
Funds throughout the year. The Board further noted that, while it monitors
performance of the Fund closely, it generally attaches more importance to
performance over relatively long periods of time, typically three to five years.
The Board considered that the Fund's performance was at the median of its Peer
Group and Peer Universe for the one- year period and below the median of its
Peer Group and Peer Universe for the three- and five- year periods. The Board
also considered that the Fund underperformed its Lipper Index for the one-,
three- and five- year periods. The Board further considered that range of
returns among the funds in the Peer Group and Peer Universe were narrow. The
Board then noted management's discussion of the Fund's performance.
The Board further noted that money market funds, in general, have been
operating in a difficult and low-yielding market environment for an extended
period of time. The Board also considered the voluntary fee waivers and/or
expense reimbursements being made by SunAmerica with respect to the Fund in
order to avoid a negative yield. The Board concluded that the Fund's
performance was satisfactory in light of all factors considered.
CONSIDERATION OF THE MANAGEMENT FEES AND THE COST OF THE SERVICES AND PROFITS
TO BE REALIZED BY SUNAMERICA AND ITS AFFILIATES FROM THE RELATIONSHIP WITH THE
FUND.
The Board, including the Disinterested Directors, received and reviewed
information regarding the fees to be paid by the Fund to SunAmerica pursuant to
the Advisory Agreement. The Board examined this information in order to
determine the reasonableness of the fees in light of the nature and quality of
services to be provided and any potential additional benefits to be received by
SunAmerica or its affiliates in connection with providing such services to the
Fund.
To assist in analyzing the reasonableness of the management fee for each of the
Fund, the Board received reports independently prepared by Lipper. The reports
showed comparative fee information for the Fund's Peer Group and/or Peer
Universe as determined by Lipper, including rankings within each category. In
considering the reasonableness of the management fee to be paid by the Fund to
SunAmerica, the Board reviewed a number of expense comparisons, including:
(i) contractual and actual management fees; and (ii) actual total operating
expenses. In considering the Fund's total operating expenses, the Board
analyzed the level of fee waivers and/or expense reimbursements and the net
expense caps contractually agreed upon by SunAmerica with respect to Class I
shares of the Fund. The Board also considered the voluntary fee waivers and/or
expense reimbursements being made by SunAmerica being made by SunAmerica with
respect to the Fund in order to avoid a negative yield. The Board further
considered the various expense components of the Fund and compared the Fund's
net expense ratio to those of other funds within its Peer Group and/or Peer
Universe as a guide to help assess the reasonableness of the management fee for
the Fund. The Board acknowledged that it was difficult to make precise
comparisons with other funds in the Peer Groups and Peer Universes since the
exact nature of services provided under the various fund agreements is often
not apparent. The Board noted, however, that the comparative fee information
provided by Lipper as a whole was useful in assessing whether SunAmerica was
providing services at a cost that was competitive with other, similar funds.
20
SUNAMERICA MONEY MARKET FUNDS, INC.
APPROVAL OF THE INVESTMENT ADVISORY AND MANAGEMENT AGREEMENT -- JUNE
30, 2012 -- (UNAUDITED) (CONTINUED)
The Board considered that the Fund's actual management fees were above the
median of its Peer Group and Peer Universe. The Board also considered that the
Fund's total expenses were below the median of its Peer Group and Peer
Universe. The Board noted that the Fund's advisory fee contains breakpoints and
further noted management's discussion regarding the Fund's expenses.
The Board further considered management fees received by SunAmerica with
respect to other mutual funds and accounts with similar investment strategies
to the Fund. The Board also considered that the mutual funds identified as
similar to the Fund are sold only in the variable annuity market and,
accordingly, are in an entirely different Lipper classification, with a peer
group consisting of funds underlying variable insurance products. The Board
noted the management fee paid by the Fund was reasonable as compared to the
fees SunAmerica was receiving from other mutual funds and accounts for which it
serves as adviser or subadviser.
PROFITABILITY.
The Board also considered SunAmerica's profitability and the benefits
SunAmerica and its affiliates received from its relationship with the Fund. The
Board received and reviewed financial statements relating to SunAmerica's
financial condition and profitability with respect to the services it provided
the Fund and considered how profit margins could affect SunAmerica's ability to
attract and retain high quality investment professionals and other key
personnel. The Board was also provided with a profitability analysis that
detailed the revenues earned and the expenses incurred by SunAmerica and its
affiliates that provide services to the Fund. In particular, the Board
considered the contractual fee waiver and/or expense reimbursements agreed to
by SunAmerica, as well as the voluntary fee waivers being made by SunAmerica to
avoid a negative yield.
The Board considered the profitability of SunAmerica under the Advisory
Agreement, and considered the profitability of SunAmerica's affiliates under
the Rule 12b-1 Plans, Service Agreement and Administrative and Shareholder
Services Agreements. Additionally, the Board considered whether SunAmerica and
its affiliates received any indirect benefits from the relationship with the
Funds. Specifically, the Board observed that AIG Federal Savings Bank, an
affiliate of SunAmerica, serves as custodian with respect to certain
shareholder retirement accounts that are administered by SunAmerica and
receives a fee payable by the qualifying shareholders. The Board further
considered whether there were any collateral or "fall-out" benefits that
SunAmerica and its affiliates may derive as a result of their relationship with
the Fund. The Board noted that SunAmerica believes that any such benefits are
DE MINIMIS and do not impact the reasonableness of the management fees.
The Board concluded that SunAmerica had the financial resources necessary to
perform its obligations under the Advisory Agreement and to continue to provide
the Fund with the high quality services that they had provided in the past. The
Board also concluded that the management fee was reasonable in light of the
factors discussed above.
ECONOMIES OF SCALE.
The Board, including the Disinterested Directors, considered whether the
shareholders would benefit from economies of scale and whether there was
potential for future realization of economies with respect to the Fund. The
Board considered that as a result of being part of the SunAmerica fund complex,
the Fund share common resources and may share certain expenses, and if the size
of the complex increases, the Fund could incur lower expenses than it otherwise
would achieve as a stand-alone entity. The Board also took into account that
the Fund had management fee arrangements that included breakpoints that will
adjust the fee downward as the size of the Fund increases, thereby allowing the
shareholders to potentially participate in any economies of scale. The Board
further noted that SunAmerica has agreed to contractually cap the total annual
operating expenses of the Class I shares of the Fund at certain levels. The
Board observed that this expense cap benefited shareholders by keeping total
fees down even in the absence of breakpoints or economies of scale. The Board
concluded that the Fund's management fee structures were reasonable and that it
would continue to review fees in connection with the renewal of the Advisory
Agreement, including whether the implementation of breakpoints would be
appropriate in the future due to an increase in asset size or otherwise.
21
SUNAMERICA MONEY MARKET FUNDS, INC.
APPROVAL OF THE INVESTMENT ADVISORY AND MANAGEMENT AGREEMENT-- JUNE 30,
2012 -- (UNAUDITED) (CONTINUED)
OTHER FACTORS.
In consideration of the Advisory Agreement, the Board also received information
regarding SunAmerica's brokerage and soft dollar practices. The Board
considered that SunAmerica is responsible for decisions to buy and sell
securities for the Fund, selection of broker-dealers and negotiation of
commission rates. The Board also considered the benefits SunAmerica may derive
from soft dollar arrangements, including arrangements under which brokers
provide brokerage and/or research services to SunAmerica in return for
allocating brokerage; however, the Board noted that the securities in which the
Fund invests are traded primarily in the over-the-counter market on a "net"
basis with dealers acting as principal for their own accounts without a stated
commission (although the price of the security usually includes a profit to the
dealer) and, therefore, the Fund generally does not incur brokerage
commissions. Accordingly, the Board observed that SunAmerica typically would
not receive soft dollar benefits in return for allocating the Funds' brokerage
transactions. The Board further observed that when making purchases of new
issues with fixed underwriting fees, SunAmerica may designate the use of broker
dealers who have agreed to provide certain statistical, research and other
information.
CONCLUSION.
After a full and complete discussion, the Board approved the Advisory Agreement
with respect to the Fund for a one-year period ending June 30, 2013. Based upon
their evaluation of all these factors in their totality, the Board, including
the Disinterested Directors, was satisfied that the terms of the Advisory
Agreement were fair and reasonable and in the best interests of the Fund and
the Fund's shareholders. In arriving at a decision to approve the Advisory
Agreement, the Board did not identify any single factor or group of factors as
all-important or controlling, but considered all factors together. The
Disinterested Directors were also assisted by the advice of independent counsel
in making this determination.
22
SUNAMERICA MONEY MARKET FUNDS, INC.
RESULTS OF SPECIAL SHAREHOLDER MEETING -- JUNE 30, 2012 -- (UNAUDITED)
On February 23, 2012, a Special Meeting of Shareholders was held to consider a
proposal to approve a Plan of Liquidation and Dissolution for the SunAmerica
Municipal Money Market Fund.
The proposal was approved and the voting results were as follows:
FOR AGAINST ABSTAIN
---------- ------- -------
1,062,817 0 0
23
[LOGO] AIG Sun America
Mutual Funds
HARBORSIDE FINANCIAL CENTER
3200 PLAZA 5
JERSEY CITY, NJ 07311-4992
DIRECTORS CUSTODIAN DISCLOSURE OF QUARTERLY
DR. JUDITH L. CRAVEN STATE STREET BANK AND PORTFOLIO HOLDINGS
WILLIAM F. DEVIN TRUST COMPANY The Fund is required to
RICHARD W. GRANT P.O. BOX 5607 file its com-plete
STEPHEN J. GUTMAN BOSTON, MA 02110 schedule of portfolio
PETER A. HARBECK holdings with the U.S.
WILLIAM J. SHEA VOTING PROXIES ON FUND Securities and Exchange
PORTFOLIO SECURITIES Commission for its first
OFFICERS A description of the and third fiscal quarters
JOHN T. GENOY, PRESIDENT policies and proce-dures on Form N-Q. The Fund's
AND CHIEF EXECUTIVE that the Fund uses to Forms N-Q are available
OFFICER determine how to vote on the U.S. Securities
DONNA M. HANDEL, proxies related to and Exchange Commission's
TREASURER securities held in the website at
JAMES NICHOLS, VICE Fund's portfolio, which http://www.sec.gov. You
PRESIDENT is available in the can also review and
KATHERINE STONER, CHIEF Fund's Statement of obtain copies of the
COMPLIANCE OFFICER Additional Information Forms N-Q at the U.S.
GREGORY N. BRESSLER, may be ob-tained without Securities and Exchange
CHIEF LEGAL charge upon request, by Commission's Public
OFFICER AND SECRETARY calling (800) 858-8850. Refer-ence Room in
GREGORY R. KINGSTON, This in-formation is also Washington, DC
VICE PRESIDENT AND available from the EDGAR (information on the
ASSISTANT TREASURER database on the U.S. operation of the Public
NORI L. GABERT, VICE Secu-rities and Exchange Reference Room may be
PRESIDENT AND Commission's website at ob-tained by calling
ASSISTANT SECRETARY http://www.sec.gov. 1-800-SEC-0330).
JOHN E. MCLEAN,
ASSISTANT SECRETARY DELIVERY OF SHAREHOLDER PROXY VOTING RECORD ON
KATHLEEN FUENTES, DOCUMENTS FUND PORTFOLIO SECURITIES
ASSISTANT SECRETARY The Fund has adopted a Information regarding how
DIEDRE L. SHEPHERD, policy that allows it to the Fund voted proxies
ASSISTANT TREASURER send only one copy of the relating to securities
MATTHEW J. HACKETHAL, Fund's prospectus, proxy held in the Fund's
ANTI-MONEY LAUNDERING material, annual report portfolio during the most
COMPLIANCE OFFICER and semi-annual report recent twelve month
(the "shareholder period ended June 30 is
INVESTMENT ADVISER documents") to available, once filed
SUNAMERICA ASSET shareholders with with the U.S. Securities
MANAGEMENT CORP. multiple accounts and Exchange Commis-sion,
HARBORSIDE FINANCIAL residing at the same without charge, upon
CENTER "household." This request, by calling
3200 PLAZA 5 practice is called (800) 858-8850 or on the
JERSEY CITY, NJ householding and reduces U.S. Securities and
07311-4992 Fund expenses, which Exchange Commission's
benefits you and other website at
DISTRIBUTOR shareholders. Unless the http://www.sec.gov.
SUNAMERICA CAPITAL Fund receives
SERVICES, INC. instructions to the This report is submitted
HARBORSIDE FINANCIAL con-trary, you will only solely for the general
CENTER receive one copy of the information of
3200 PLAZA 5 shareholder documents. shareholders of the Fund.
JERSEY CITY, NJ The Fund will continue to Distribution of this
07311-4992 household the report to persons other
share-holder documents than shareholders of the
SHAREHOLDER SERVICING indefinitely, until we Fund is authorized only
AGENT are instructed otherwise. in connection with a
SUNAMERICA FUND If you do not wish to currently effective
SERVICES, INC. participate in prospectus, setting forth
HARBORSIDE FINANCIAL householding, please details of the Fund,
CENTER contact Shareholder which must precede or
3200 PLAZA 5 Services at (800) accompany this report.
JERSEY CITY, NJ 858-8850 ext. 6010 or
07311-4992 send a written request The accompanying report
with your name, the name has not been audited by
TRANSFER AGENT of your fund(s) and your independent accountants
STATE STREET BANK AND account number(s) to and accordingly no
TRUST COMPANY SunAmerica Mutual Funds opinion has been
P.O. BOX 219373 c/o BFDS, P.O. Box expressed thereon.
KANSAS CITY, MO 64141 219186, Kansas City MO,
64121-9186. We will
resume individual
mailings for your account
within thirty (30) days
of receipt of your
request.
[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.SAFUNDS.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.safunds.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.safunds.com. Read
the prospectus carefully before investing.
WWW.SAFUNDS.COM
MMSAN - 6/12
[LOGO]
AIG
Sun America
Mutual Funds
Item 2. Code of Ethics.
Not applicable.
Item 3. Audit Committee Financial Expert.
Not applicable.
Item 4. Principal Accountant Fees and Services.
Not applicable.
Item 5. Audit Committee of Listed Registrants.
Not applicable.
Item 6. Investments.
Included in Item 1 to the Form.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End
Management Investment Companies.
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable.
Item 9. Purchases of Equity Securities by Closed-End Management Investment
Company and Affiliated Purchasers.
Not applicable.
Item 10.Submission of Matters to a Vote of Security Holders.
There were no material changes to the procedures by which shareholders may
recommend nominees to the registrant's Board of Directors that were
implemented after the registrant last provided disclosure in response to the
requirements of Item 407(c)(2)(iv) of Regulation S-K (17 CFR 229.407) (as
required by 22(b)(15)) of Schedule 14A (17 CFR 240.14a-101), or this Item 10.
Item 11.Controls and Procedures.
(a) An evaluation was performed within 90 days of the filing of this report,
under the supervision and with the participation of the registrant's
management, including the President and Treasurer, of the effectiveness of
the design and operation of the registrant's disclosure controls and
procedures (as defined under Rule 30a-3(c) under the Investment Company Act
of 1940 (17 CFR 270.30a-3(c))). Based on that evaluation, the registrant's
management, including the President and Treasurer, concluded that the
registrant's disclosure controls and procedures are effective.
(b) There was no change in the registrant's internal control over financial
reporting (as defined in Rule 30a-3(d) under the Investment Company Act of
1940 (17 CFR 270.30a-3(d))) that occurred during the registrant's last
fiscal quarter of the period covered by this report that has materially
affected, or is reasonably likely to materially affect, the registrant's
internal contro1 over financial reporting.
Item 12.Exhibits.
(a) (1) Not applicable.
(2) Certifications pursuant to Rule 30a-2(a) under the Investment Company
Act of 1940 (17 CFR 270.30a-2(a)) attached hereto as Exhibit 99.CERT.
(3) Not applicable.
(b) Certification pursuant to Rule 30a-2(b) under the Investment Company Act of
1940 (17 CFR 270.30a-2(a)) and Section 906 of the Sarbanes-Oxley Act of
2002 attached hereto as Exhibit 99.906.CERT.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to
be signed on its behalf by the undersigned, thereunto duly authorized.
SunAmerica Money Market Funds, Inc.
By: /s/ John T. Genoy
------------------------------
John T. Genoy
President
Date: September 7, 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
------------------------------
John T. Genoy
President
Date: September 7, 2012
By: /s/ Donna M. Handel
------------------------------
Donna M. Handel
Treasurer
Date: September 7, 2012