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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, 2012
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Item 1. Reports to Stockholders
[PHOTO]
ANNUAL REPORT 2012
SUNAMERICA
Money Market Fund
[LOGO]
DECEMBER 31, 2012 ANNUAL REPORT
SUNAMERICA MONEY MARKET FUNDS, INC.
SUNAMERICA MONEY MARKET FUND (SMAXX)
TABLE OF CONTENTS
SHAREHOLDERS' LETTER.................................... 1
EXPENSE EXAMPLE......................................... 4
STATEMENT OF ASSETS AND LIABILITIES..................... 6
STATEMENT OF OPERATIONS................................. 7
STATEMENT OF CHANGES IN NET ASSETS...................... 8
FINANCIAL HIGHLIGHTS.................................... 9
PORTFOLIO OF INVESTMENTS................................ 10
NOTES TO FINANCIAL STATEMENTS........................... 13
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM. 20
DIRECTORS AND OFFICERS INFORMATION...................... 21
SHAREHOLDER TAX INFORMATION............................. 24
RESULTS OF SPECIAL SHAREHOLDER MEETING.................. 25
DECEMBER 31, 2012 ANNUAL REPORT
SHAREHOLDERS' LETTER -- (UNAUDITED)
Dear Shareholders,
We are pleased to present this annual shareholder report for the SunAmerica
Money Market Funds, Inc./*/ for the 12 month period ended December 31, 2012.
For the money markets, the annual period was one wherein 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 combined to push money market yields lower.
On the whole, the annual period was marked by a slowing worldwide economy and a
low yield environment. The U.S. economy expanded moderately, notwithstanding
some apparent slowing in global growth, as domestic indicators pointed to
improvement in overall labor market conditions and advancing household
spending. Business fixed investment appeared to be increasing less rapidly.
Inflation moderated during the annual period, and longer-term inflation
expectations remained relatively stable. Throughout, the Fed maintained its
target range for the Federal Funds Rate at 0% to 0.25%. In September 2012, the
Fed stated it continued to anticipate that U.S. economic conditions, including
low rates of resource utilization, subdued inflation trends and stable
inflation expectations, are likely to warrant exceptionally low levels of the
Federal Funds Rate through at least mid-2015. The Fed also decided, at its
September 2012 meeting, to increase monetary policy accommodation by purchasing
additional agency mortgage-backed securities at a pace of $40 billion per month
via a third round of quantitative easing, dubbed QE3. In December, the Fed
committed to an open-ended purchase program of $85 billion per month, inclusive
of the $40 billion per month in continuing mortgage-backed securities purchases
plus $45 billion per month of U.S. Treasury purchases. For the first time, the
Fed also replaced date-specific Federal Funds Rate guidance with open-ended
guidance based on unemployment and inflation data thresholds, wherein U.S.
unemployment would need to reach 6.5% or below and inflation would need to
exceed 2.5% a year before the Fed would raise interest rates.
With the Fed keeping the targeted Federal Funds Rate near zero throughout the
annual period and with no near-term indication of this changing, money market
yields remained anchored near zero as well, 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 annual period did
not provide many opportunities to add yield.
There were also significant regulatory developments relating to tightening
money market funds regulation during the annual period. In August 2012, the
Securities and Exchange Commission ("SEC") chair was unable to persuade a
majority of the SEC Commissioners to vote in favor of its reform proposal to
tighten regulation of money market funds. Despite some resistance, in November
2012, the Financial Stability Oversight Council ("FSOC") came forth with three
proposed alternative reform scenarios for money market funds. Proposals include
mandating floating net asset values, requiring a capital buffer to absorb
losses and imposing limits on redemptions. The immediate next steps were a
60-day comment period on the FSOC recommendations, followed by a final
recommendation to the SEC in late January 2013. At the end of the annual
period, it was unclear whether any money market reform would be enacted anytime
in the near future. (THE FSOC ANNOUNCED ON JANUARY 15, 2013 THAT IT HAD
EXTENDED THE COMMENT PERIOD FOR PROPOSED RECOMMENDATIONS FOR MONEY MARKET
MUTUAL FUND REFORM UNTIL FEBRUARY 15, 2013 TO ALLOW THE PUBLIC MORE TIME TO
REVIEW, CONSIDER AND COMMENT ON THE PROPOSED RECOMMENDATIONS.)
On the following pages, you will find a brief discussion of the annual
period from the portfolio manager, as well as detailed financial statements and
portfolio information for the SunAmerica Money Market Fund for the annual
period ended December 31, 2012.
1
DECEMBER 31, 2012 ANNUAL REPORT
SHAREHOLDERS' LETTER -- (UNAUDITED) (CONTINUED)
As always, 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. 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.
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 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, 2012, as compared with the three-month T-Bill index+,
which returned 0.07% for the same period.
Fund performance was affected most by historically low interest rates that
persisted throughout 2012. 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 0.17% at year end 2012
compared to roughly 0.22% at year end 2011 and averaging 0.175% for the annual
period as a whole. Muted Fund performance was compounded by the fact that
increased risk appetite during the annual period helped pull credit spreads
tighter.
While money market yields were low throughout the annual period, the Fund
continued to seek current income to the extent consistent with liquidity and
stability of principal. We were able to navigate interest rate risk by
adjusting the Fund's weighted average maturity/**/ 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, and in
longer-dated floating-rate securities. This strategy enabled us to provide a
cushion of liquidity in the near term, i.e. one to seven days, and to garner
the somewhat greater yield, albeit a modest gain given the flat 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 the SEC. Indeed, the Fund's
weighted average maturity was managed to achieve a range between 45 to 50 days
for most of the annual period. As of December 31, 2012, the Fund's weighted
average maturity stood at approximately 49 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, 2012 to avoid a negative yield
on any class of the Fund.
+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.
/**/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 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 MONEY MARKET FUNDS, INC.
EXPENSE EXAMPLE -- DECEMBER 31, 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 July 1, 2012 and held until December 31, 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 December 31, 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 December 31, 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 December 31, 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
December 31, 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 December 31, 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 December 31, 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
December 31, 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.
4
SUNAMERICA MONEY MARKET FUNDS, INC.
EXPENSE EXAMPLE -- DECEMBER 31, 2012 -- (UNAUDITED) (CONTINUED)
ACTUAL HYPOTHETICAL
------------------------------------------------------- -------------------------------------------------------
ENDING ENDING ACCOUNT
ACCOUNT VALUE EXPENSES PAID VALUE USING EXPENSES PAID
BEGINNING USING ACTUAL DURING THE BEGINNING A HYPOTHETICAL 5% DURING THE
ACCOUNT VALUE RETURNS AT SIX MONTHS ENDED ACCOUNT VALUE ASSUMED RETURN AT SIX MONTHS ENDED
FUND# AS OF JULY 1, 2012 DECEMBER 31, 2012 DECEMBER 31, 2012* AS OF JULY 1, 2012 DECEMBER 31, 2012 DECEMBER 31, 2012*
----- ------------------ ----------------- ------------------ ------------------ ----------------- ------------------
Money Market
Class A... $1,000.00 $1,000.05 $1.11 $1,000.00 $1,024.03 $1.12
Class I... $1,000.00 $1,000.05 $1.11 $1,000.00 $1,024.03 $1.12
EXPENSE
RATIO
AS OF
DECEMBER 31,
FUND# 2012*
----- ------------
Money Market
Class A... 0.22%
Class I... 0.22%
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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 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 advise 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, 2012" and "Expense Ratios"
would have been higher.
5
SUNAMERICA MONEY MARKET FUNDS, INC.
STATEMENT OF ASSETS AND LIABILITIES -- DECEMBER 31, 2012
MONEY
MARKET
FUND
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ASSETS:
Investments at value * (unaffiliated)....................... $709,012,126
Repurchase agreements (cost approximates value)............. 75,283,000
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Total Investments.......................................... $784,295,126
------------
Cash........................................................ 372
Receivable for:
Fund shares sold........................................... 345,575
Dividends and interest..................................... 556,097
Prepaid expenses and other assets........................... 7,746
Due from investment adviser for expense reimbursements/fee
waivers.................................................... 331,470
Due from distributor for fee waivers........................ 92,585
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Total assets............................................... 785,628,971
------------
LIABILITIES:
Payable for:
Fund shares redeemed....................................... 465,649
Investment advisory and management fees.................... 309,183
Distribution and service maintenance fees.................. 92,585
Transfer agent fees and expenses........................... 163,383
Directors' fees and expenses............................... 19,216
Other accrued expenses..................................... 147,630
Dividends payable........................................... 22,296
------------
Total liabilities.......................................... 1,219,942
------------
Net Assets............................................... $784,409,029
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NET ASSETS REPRESENTED BY:
Common stock, $.001 par value (10 billion shares authorized) $ 785,553
Paid-in capital............................................. 784,842,705
------------
785,628,258
Accumulated undistributed net investment income (loss)...... (28,365)
Accumulated undistributed net realized gain(loss) on
investments................................................ (1,190,864)
------------
Net assets............................................... $784,409,029
============
CLASS A:
Net assets.................................................. $768,643,825
Shares outstanding.......................................... 769,784,844
Net asset value and redemption price per share (excluding
any applicable contingent deferred sales charge)........... $ 1.00
============
CLASS I:
Net assets.................................................. $ 15,765,204
Shares outstanding.......................................... 15,768,504
Net asset value and redemption price per share.............. $ 1.00
============
*Amortized cost of investment securities (unaffiliated)..... 709,012,126
============
See Notes to Financial Statements
6
SUNAMERICA MONEY MARKET FUNDS, INC.
STATEMENT OF OPERATIONS -- FOR THE YEAR ENDED DECEMBER 31, 2012
MONEY MARKET
FUND
------------
INVESTMENT INCOME:
Interest (unaffiliated)................................................ $ 1,540,584
-----------
Total investment income............................................. 1,540,584
-----------
EXPENSES:
Investment advisory and management fees................................ 3,358,415
Distribution and service maintenance fees:
Class A............................................................... 996,890
Transfer agent fees and expenses:
Class A............................................................... 1,516,980
Class I............................................................... 33,313
Registration fees:
Class A............................................................... 33,907
Class I............................................................... 8,400
Custodian and accounting fees.......................................... 129,250
Reports to shareholders................................................ 127,346
Audit and tax fees..................................................... 49,956
Legal fees............................................................. 30,278
Directors' fees and expenses........................................... 63,491
Other expenses......................................................... 18,174
-----------
Total expenses before fee waivers, expense reimbursements and
custody credits.................................................... 6,366,400
Fees waived and expenses reimbursed by investment adviser &
distributor (Note 3)............................................... (4,893,115)
Custody credits earned on cash balances............................. (444)
-----------
Net expenses........................................................ 1,472,841
-----------
Net investment income (loss)........................................... 67,743
-----------
Net realized gain (loss) on investments................................ 20,077
-----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS........ $ 87,820
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See Notes to Financial Statements
7
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,
2012 2011
------------ ------------
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income (loss)........................................................... $ 67,743 $ 70,884
Net realized gain (loss) on investments................................................ 20,077 166
------------ ------------
Net increase (decrease) in net assets resulting from operations.......................... $ 87,820 $ 71,050
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (Class A)........................................................ (66,757) (69,254)
Net investment income (Class I)........................................................ (1,510) (1,442)
------------ ------------
Total distributions to shareholders...................................................... (68,267) (70,696)
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS (NOTE 5). 76,249,468 (26,506,418)
------------ ------------
TOTAL INCREASE (DECREASE) IN NET ASSETS.................................................. 76,269,021 (26,506,064)
============ ============
NET ASSETS:
Beginning of period...................................................................... 708,140,008 734,646,072
------------ ------------
End of period*........................................................................... $784,409,029 $708,140,008
============ ============
*Includes accumulated undistributed net investment income (loss)......................... $ (28,365) $ (27,841)
============ ============
See Notes to Financial Statements
8
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
-------
12/31/08 $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)
12/31/12 1.00 0.00 (0.00) 1.00 0.01 768,644 0.22(3) 0.01(3)
CLASS I
-------
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)
12/31/12 1.00 0.00 (0.00) 1.00 0.01 15,765 0.22(3) 0.01(3)
--------
(1) Calculated based upon average shares outstanding.
(2) Total return does not reflect sales load but does include expense
reimbursements.
(3) Net of the following expense reimbursements/waivers (based on average net
assets):
12/31/08 12/31/09 12/31/10 12/31/11 12/31/12
-------- -------- -------- -------- --------
Class A............. -- % 0.21% 0.64% 0.76% 0.72%
Class I............. 0.18 0.34 0.51 0.60 0.62
(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.
See Notes to Financial Statements
9
SUNAMERICA MONEY MARKET FUND
PORTFOLIO PROFILE -- DECEMBER 31, 2012 -- (UNAUDITED)
INDUSTRY ALLOCATION*
U.S. Government Agencies.......... 36.1%
Foreign Banks..................... 20.3
U.S. Government Treasuries........ 11.8
Repurchase Agreements............. 9.6
Money Center Banks................ 8.1
Commercial Banks-Canadian......... 4.1
Super-Regional Banks-US........... 3.8
Commercial Banks.................. 3.6
Diversified Financial Services.... 1.8
Finance........................... 0.8
-----
100.0%
=====
Weighted average days to maturity. 48.9
CREDIT QUALITY ALLOCATION@#
A-1......................... 99.9%
Not Rated+.................. 0.1
-----
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
unavailabe from the date source.
10
SUNAMERICA MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS -- DECEMBER 31, 2012
PRINCIPAL VALUE
SECURITY DESCRIPTION AMOUNT (NOTE 2)
SHORT-TERM INVESTMENT SECURITIES -- 90.4%
CERTIFICATES OF DEPOSIT -- 23.2%
Citibank NA
0.20% due 01/22/2013................ $14,300,000 $ 14,300,000
Credit Agricole Corporate and
Investment Bank NY
0.20% due 01/02/2013................ 14,400,000 14,400,000
Credit Agricole Corporate and
Investment Bank NY
0.25% due 01/22/2013................ 14,300,000 14,300,000
Deutsche Bank AG NY
0.30% due 01/28/2013................ 14,000,000 14,000,000
Deutsche Bank AG NY FRS
0.71% due 03/15/2013................ 13,000,000 13,000,000
Nordea Bank Finland PLC NY
0.29% due 04/26/2013................ 14,250,000 14,250,000
Rabobank Nederland NV NY FRS
0.42% due 01/18/2013................ 12,850,000 12,850,000
Rabobank Nederland NV NY FRS
0.45% due 07/11/2013................ 16,000,000 16,000,000
Royal Bank of Canada NY FRS
0.40% due 11/04/2013................ 13,500,000 13,500,000
Royal Bank of Canada NY FRS
0.42% due 04/02/2013................ 11,150,000 11,152,555
Svenska Handelsbanken NY
0.25% due 01/18/2013................ 14,400,000 14,400,000
Svenska Handelsbanken NY
0.26% due 03/13/2013................ 15,000,000 15,000,148
UBS AG Stamford CT FRS
0.38% due 04/19/2013................ 15,000,000 15,000,000
------------
TOTAL CERTIFICATES OF DEPOSIT
(amortized cost $182,152,703)...... 182,152,703
------------
COMMERCIAL PAPER -- 11.6%
BNP Paribas Finance, Inc.
0.12% due 01/03/2013................ 30,000,000 29,999,800
Lloyds TSB Bank PLC
0.25% due 02/04/2013................ 17,383,000 17,378,896
Nordea North America, Inc.
0.24% due 02/08/2013................ 15,000,000 14,996,200
State Street Corp.
0.21% due 03/05/2013................ 14,500,000 14,494,671
State Street Corp.
0.21% due 04/12/2013................ 14,000,000 13,991,751
------------
TOTAL COMMERCIAL PAPER
(amortized cost $90,861,318)....... 90,861,318
------------
U.S. CORPORATE BONDS & NOTES -- 4.6%
Bank of America NA
0.22% due 01/14/2013................ 15,000,000 15,000,000
Bank of America NA
0.30% due 02/11/2013................ 15,000,000 15,000,000
General Electric Capital Corp. FRS
0.46% due 05/08/2013................ 3,274,000 3,276,559
General Electric Capital Corp.
2.80% due 01/08/2013................ 2,700,000 2,701,375
------------
TOTAL U.S. CORPORATE BONDS & NOTES
(amortized cost $35,977,934)....... 35,977,934
------------
PRINCIPAL VALUE
SECURITY DESCRIPTION AMOUNT (NOTE 2)
-------------------------------------------------------------
MEDIUM TERM NOTES -- 3.1%
JPMorgan Chase & Co. FRS
0.96% due 02/26/2013................ $17,370,000 $17,388,292
Royal Bank of Canada
2.10% due 07/29/2013................ 7,000,000 7,070,245
-----------
TOTAL MEDIUM TERM NOTES
(amortized cost $24,458,537)....... 24,458,537
-----------
U.S. GOVERNMENT AGENCIES -- 36.1%
Agency for International Development
Panama FRS
0.68% due 05/15/2015................ 687,828 688,381
Federal Farm Credit Bank
0.18% due 09/11/2013............... 13,600,000 13,582,796
0.19% due 01/28/2013............... 5,200,000 5,199,259
Federal Farm Credit Bank FRS
0.18% due 03/15/2013............... 550,000 550,024
0.18% due 04/17/2013............... 13,300,000 13,301,184
0.18% due 06/04/2013............... 13,130,000 13,129,446
0.18% due 07/24/2013............... 9,435,000 9,435,538
0.18% due 09/16/2013............... 800,000 800,061
0.19% due 02/11/2013............... 28,000,000 28,000,000
0.20% due 07/02/2013............... 13,280,000 13,280,000
0.20% due 11/18/2013............... 1,800,000 1,800,320
0.21% due 08/06/2013............... 5,250,000 5,249,985
0.21% due 03/26/2014............... 6,700,000 6,699,163
0.23% due 08/22/2013............... 5,000,000 5,002,299
0.24% due 03/06/2013............... 7,790,000 7,790,342
0.25% due 01/25/2013............... 500,000 500,017
0.27% due 06/26/2013............... 595,000 595,322
0.28% due 08/28/2013............... 4,100,000 4,100,544
0.30% due 07/10/2013............... 1,230,000 1,230,451
Federal Home Loan Bank
0.12% due 02/01/2013............... 7,000,000 6,999,277
0.13% due 01/02/2013............... 20,500,000 20,499,918
0.13% due 08/20/2013............... 4,000,000 3,998,099
0.14% due 02/06/2013............... 9,000,000 8,998,740
0.15% due 01/23/2013............... 8,400,000 8,399,230
0.17% due 05/03/2013............... 9,000,000 8,994,968
0.18% due 02/15/2013............... 8,150,000 8,149,669
0.21% due 04/08/2013............... 6,420,000 6,416,367
Federal Home Loan Bank FRS
0.10% due 04/09/2013............... 11,550,000 11,550,000
0.17% due 04/18/2013............... 16,250,000 16,249,881
0.18% due 04/12/2013............... 1,000,000 1,000,012
0.22% due 07/25/2013............... 10,150,000 10,149,715
Federal Home Loan Mtg. Corp.
0.15% due 03/19/2013............... 8,500,000 8,497,273
0.16% due 06/25/2013............... 9,000,000 8,993,000
Federal Home Loan Mtg. Corp. FRS
0.15% due 05/16/2013............... 2,300,000 2,300,000
0.16% due 02/04/2013............... 4,820,000 4,820,272
0.16% due 05/06/2013............... 550,000 550,003
0.16% due 06/03/2013............... 800,000 800,000
0.17% due 03/21/2013............... 1,300,000 1,300,063
Federal National Mtg. Assoc.
0.15% due 02/14/2013............... 6,500,000 6,498,808
0.16% due 03/04/2013............... 5,500,000 5,498,484
4.13% due 04/15/2013............... 800,000 809,019
11
SUNAMERICA MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS -- DECEMBER 31, 2012 -- (CONTINUED)
PRINCIPAL VALUE
SECURITY DESCRIPTION AMOUNT (NOTE 2)
U.S. GOVERNMENT AGENCIES (CONTINUED)
Federal National Mtg. Assoc. FRS
0.20% due 08/12/2013................ $ 925,000 $ 925,173
------------
TOTAL U.S. GOVERNMENT AGENCIES
(amortized cost $283,333,103)...... 283,333,103
------------
U.S. GOVERNMENT TREASURIES -- 11.8%
United States Treasury Bills
0.13% due 06/27/2013............... 15,000,000 14,990,413
0.14% due 06/06/2013............... 9,500,000 9,494,464
0.17% due 03/07/2013............... 5,800,000 5,798,220
0.18% due 04/04/2013............... 14,350,000 14,343,301
United States Treasury Notes
0.25% due 01/31/2014............... 750,000 750,594
0.38% due 07/31/2013............... 1,150,000 1,151,423
0.50% due 11/15/2013............... 5,700,000 5,715,212
1.00% due 01/15/2014............... 6,650,000 6,706,676
1.38% due 01/15/2013............... 12,850,000 12,855,839
1.38% due 02/15/2013............... 12,970,000 12,988,854
3.88% due 02/15/2013............... 7,400,000 7,433,535
------------
TOTAL U.S. GOVERNMENT TREASURIES
(amortized cost $92,228,531)....... 92,228,531
------------
TOTAL SHORT-TERM INVESTMENT SECURITIES -- 90.4%
(amortized cost $709,012,126)...... 709,012,126
------------
PRINCIPAL VALUE
SECURITY DESCRIPTION AMOUNT (NOTE 2)
--------------------------------------------------------------
REPURCHASE AGREEMENTS -- 9.6%
State Street Bank & Trust Co. Joint
Repurchase Agreement(1)............ $13,223,000 $ 13,223,000
UBS Securities LLC Joint Repurchase
Agreement(1)....................... 62,060,000 62,060,000
------------
TOTAL REPURCHASE AGREEMENTS -- 9.6%
(amortized cost $75,283,000)...... 75,283,000
------------
TOTAL INVESTMENTS
(amortized cost $784,295,126)(2).. 100.0% 784,295,126
OTHER ASSETS LESS LIABILITIES....... 0.0 113,903
----------- ------------
NET ASSETS.......................... 100.0% $784,409,029
=========== ============
--------
(1)See Note 2 for details of Joint Repurchase Agreements.
(2)At December 31, 2012, the cost of securities for federal income tax purposes
was the same for book purposes.
FRS--Floating Rate Securities
The rates shown on FRS are the current interest rates at December 31, 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 December 31, 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........... $-- $182,152,703 $-- $182,152,703
Commercial Paper.................. -- 90,861,318 -- 90,861,318
U.S. Corporate Bonds & Notes...... -- 35,977,934 -- 35,977,934
Medium Term Notes................. -- 24,458,537 -- 24,458,537
U.S. Government Agencies.......... -- 283,333,103 -- 283,333,103
U.S. Government Treasuries........ -- 92,228,531 -- 92,228,531
Repurchase Agreements.............. -- 75,283,000 -- 75,283,000
--- ------------ --- ------------
TOTAL................................ $-- $784,295,126 $-- $784,295,126
=== ============ === ============
The Fund's policy is to recognize transfers between Levels as of the end of the
reporting period. There were no transfers between Levels during the reporting
period.
See Notes to Financial Statements
12
SUNAMERICA MONEY MARKET FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS -- DECEMBER 31, 2012
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
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
13
SUNAMERICA MONEY MARKET FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS -- DECEMBER 31, 2012 -- (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 Corporation's Board of Directors ("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)
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 the inputs used to value the Fund's net assets as of
December 31, 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 to maturity of any discount or
premium. In accordance with rule 2a-7 under the 1940 Act, the 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
14
SUNAMERICA MONEY MARKET FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS -- DECEMBER 31, 2012 -- (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, the Fund has the right to liquidate the collateral and apply
the proceeds in satisfaction of the obligation. If the seller defaults and
the value of the collateral declines or if bankruptcy proceedings are
commenced with respect to the seller of the security, realization of the
collateral by the Fund may be delayed or limited.
As of December 31, 2012, the Fund held an undivided interest in the joint
repurchase agreement with State Street Bank & Trust Co.:
PERCENTAGE PRINCIPAL
OWNERSHIP AMOUNT
---------- -----------
Money Market Fund............. 4.49% $13,223,000
As of such date, the repurchase agreement in that joint account and the
collateral therefore were as follows:
State Street Bank & Trust Co., dated December 31, 2012, bearing interest at
a rate of 0.01% per annum, with a principal amount of $294,279,000, a
repurchase price of $294,279,163, and a maturity date of January 2, 2013.
The repurchase agreement is collateralized by the following:
INTEREST MATURITY
TYPE OF COLLATERAL RATE DATE PRINCIPAL AMOUNT VALUE
------------------ -------- ---------- ---------------- ------------
U.S. Treasury Bonds........... 3.13% 11/15/2041 $271,041,778 $276,462,614
U.S. Treasury Notes........... 0.63 08/31/2017 23,237,222 23,707,231
As of December 31, 2012, the Fund held an undivided interest in the joint
repurchase agreement with UBS Securities LLC:
PERCENTAGE PRINCIPAL
OWNERSHIP AMOUNT
---------- -----------
Money Market Fund............. 62.06% $62,060,000
As of such date, the repurchase agreement in that joint account and the
collateral therefore were as follows:
UBS Securities LLC, dated December 31, 2012, bearing interest at a rate of
0.15% per annum, with a principal amount of $100,000,000, a repurchase price
of $100,000,833, and a maturity date of January 2, 2013. The repurchase
agreement is collateralized by the following:
INTEREST MATURITY
TYPE OF COLLATERAL RATE DATE PRINCIPAL AMOUNT VALUE
------------------ -------- ---------- ---------------- ------------
U.S. Treasury Inflation
Indexed Notes............... 1.25% 07/15/2020 $100,000,000 $102,000,043
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
15
SUNAMERICA MONEY MARKET FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS -- DECEMBER 31, 2012 -- (CONTINUED)
the dividend-eligible shares, as appropriate) of each class of shares at the
beginning of the day (after adjusting for the current capital shares
activity of the respective class). 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 is considered a separate entity for tax purposes and intends to
comply with the requirements of the Internal Revenue Code, as amended,
applicable to regulated investment companies and distribute all of its
taxable income, including any net capital gains on investments, to its
shareholders. The Fund also intends to distribute sufficient net investment
income and net capital gains, if any, so that the Fund will not be subject
to excise tax on undistributed income and gains. Therefore, no federal
income tax or excise tax provision is required.
The Fund recognizes the tax benefits of uncertain tax positions only when
the position is more likely than not to be sustained, assuming examination
by tax authorities. Management has analyzed the Fund's tax positions and
concluded that no liability for unrecognized tax benefits should be recorded
related to uncertain tax positions taken on returns filed for open tax years
2009-2011 or expected to be taken in the Fund's 2012 tax return. The Fund is
not aware of any tax provisions for which it is reasonably possible that the
total amounts of unrecognized tax benefits will change materially in the
next twelve months. The Fund files U.S. federal and certain state income tax
returns. With few exceptions, the Fund is no longer subject to U.S. federal
and state tax examinations by tax authorities for tax returns ending before
2009.
NEW ACCOUNTING PRONOUNCEMENTS: 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 disclosures are effective
for interim and annual reporting periods beginning after December 15, 2011.
All required changes to accounting policies have been made in accordance
with ASU No. 2011-04.
In December 2011, the FASB issued ASU No. 2011-11, "Disclosures about
Offsetting Assets and Liabilities". ASU 2011-11 requires an entity to
disclose information about offsetting and related arrangements to enable
users of its financial statements to understand the effect of those
arrangements on its financial position. The new and revised disclosures are
effective for annual reporting periods beginning on or after January 1,
2013, and interim periods within those annual periods. At this time,
management is evaluating the implications of ASU 2011-11 and its impact on
the financial statements.
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 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.
16
SUNAMERICA MONEY MARKET FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS -- DECEMBER 31, 2012 -- (CONTINUED)
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 year ended December 31, 2012, pursuant to the contractual
expense limitations, SunAmerica waived fees and/or reimbursed expenses of
$7,273 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 year ended December 31, 2012,
SunAmerica voluntarily waived fees and/or reimbursed expenses of $3,803,476
and $85,476 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 year ended December 31,
2012, SACS voluntarily waived fees as follows: Class A $996,890.
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 year ended December 31, 2012, the
proceeds received from redemptions are as follows:
Class A..................................................... $37
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 year
ended December 31, 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
FUND EXPENSES DECEMBER 31, 2012
---- ---------- -----------------
Money Market Class A.......... $1,457,306 $135,792
Money Market Class I.......... 33,119 2,941
As of December 31, 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.
17
SUNAMERICA MONEY MARKET FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS -- DECEMBER 31, 2012 -- (CONTINUED)
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 post
October capital loss deferrals, dividends payable, and cumulative pension
expenses.
DISTRIBUTABLE EARNINGS TAX DISTRIBUTIONS
---------------------------------------- ---------------------------------------------------------------------------
FOR THE YEAR ENDED DECEMBER 31, 2012 FOR THE YEAR ENDED DECEMBER 31, 2012 FOR THE YEAR ENDED DECEMBER 31, 2011
---------------------------------------- ------------------------------------- -------------------------------------
LONG-TERM GAINS/ UNREALIZED LONG-TERM LONG-TERM
ORDINARY CAPITAL AND APPRECIATION ORDINARY CAPITAL ORDINARY CAPITAL
INCOME OTHER LOSSES (DEPRECIATION) INCOME GAINS INCOME GAINS
-------- ---------------- -------------- -------- --------- -------- ---------
$ -- $(1,190,747) $ -- $68,267 $ -- $70,696 $ --
At December 31, 2012, for Federal income tax purposes, the Fund has capital
loss carryforwards available to offset future capital gains of $1,190,747
expiring in 2016 and $0 unlimited capital losses.+
Under the current tax 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, 2012, Fund
elected to defer post October long-term capital losses in the amount of $117.
NOTE 5. CAPITAL SHARE TRANSACTIONS
Transactions in each class of shares of the Funds, all at $1.00 per share,
for the period ended December 31, 2012 and for the prior year were as
follows:
MONEY MARKET FUND
----------------------------------------------------------------------
CLASS A CLASS I
---------------------------------- ----------------------------------
FOR THE FOR THE FOR THE FOR THE
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
DECEMBER 31, 2012 DECEMBER 31, 2011 DECEMBER 31, 2012 DECEMBER 31, 2011
----------------- ----------------- ----------------- -----------------
Shares sold............. $ 565,144,937 $ 654,745,945 $ 9,071,617 $ 9,890,008
Reinvested dividends.... 64,666 66,993 1,487 1,416
Shares redeemed......... (489,099,862) (681,969,401) (8,933,377) (9,241,379)
------------- ------------- ----------- -----------
Net increase (decrease). $ 76,109,741 $ (27,156,463) $ 139,727 $ 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 Trustee/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.
--------
+ 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.
18
SUNAMERICA MONEY MARKET FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS -- DECEMBER 31, 2012 -- (CONTINUED)
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 change 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 payable line on the Statement of Assets and
Liabilities and the amounts for the Retirement Plan Expenses are included in
the Directors' fees and expenses line on the Statement of Operations.
RETIREMENT PLAN RETIREMENT PLAN RETIREMENT PLAN
LIABILITY EXPENSE PAYMENTS
--------------- --------------- ---------------
FUND AS OF DECEMBER 31, 2012
---- -----------------------------------------------
Money Market
Fund........................................ $16,733 $1,063 $6,378
NOTE 7. INTERFUND LENDING AGREEMENT
Pursuant to the 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 lend 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 year ended December 31, 2012, the Fund did
not participate in this program.
19
SUNAMERICA MONEY MARKET FUNDS, INC.
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Directors and Shareholders of SunAmerica Money Market Fund,
Inc.:
In our opinion, the accompanying statement of assets and liabilities, including
the portfolio 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 SunAmerica Money Market Fund, Inc.
(the "Fund") at December 31, 2012, the results of its operations for the year
then ended, the changes in its 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 Fund's 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 audits 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, 2012 by correspondence with the
custodian and brokers, provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
Houston, Texas
February 27, 2013
20
SUNAMERICA MONEY MARKET FUNDS, INC.
DIRECTORS AND OFFICERS INFORMATION -- DECEMBER 31, 2012 -- (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. 78 Director, Belo Corp.
67 present (1992 to present);
Director, Sysco Corp.
(1996 to present);
Director, Luby's Inc.
(1998 to present).
William F. Devin Director 2001- Retired. 78 None
74 present
Richard W. Grant Director 2011- Retired. Prior to that, 29 None
67 present attorney and Partner at
Morgan Lewis & Brockius
LLP (1989 to 2011).
Stephen J. Gutman Director 1984- Senior Vice President 29 None
69 present and Associate Broker,
The Corcoran Group (Real
Estate) (2002 to
present); Managing
Member, 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, 29 Chairman of the Board,
65 present Caliber ID, Inc. Royal and SunAlliance
(medical devices) (2007 U.S.A., Inc. (2004 to
to Present); Managing 2006); Director, Boston
Partner, DLB Capital, Private Financial
LLC (private equity) Holdings (2004 to
(2006 to 2007). present); Chairman,
Demoulas Supermarkets
(1999 to Present).
INTERESTED DIRECTOR
Peter A. Harbeck(3) Director 1994- President, CEO and 78 None
59 present Director, SunAmerica
(1995 to present);
Director, -- SACS (1993
to present); Chairman,
Advisor Group, Inc.
(2004 to present).
21
SUNAMERICA MONEY MARKET FUNDS, INC.
DIRECTORS AND OFFICERS INFORMATION -- DECEMBER 31, 2012 -- (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
44 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
46 present SunAmerica (2004 to
present).
Gregory N. Bressler Secretary 2005- Senior Vice President and N/A N/A
46 and Chief present General Counsel,
Legal SunAmerica (2005 to
Officer present).
James Nichols Vice 2006- Director, President and N/A N/A
46 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
54 President 2008- SunAmerica (2003 to
present present).
Katherine Stoner Vice 2011- Vice President, SunAmerica N/A N/A
56 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
47 President present (2001 to present).
and
Assistant
Treasurer
22
SUNAMERICA MONEY MARKET FUNDS, INC.
DIRECTORS AND OFFICERS INFORMATION -- DECEMBER 31, 2012 -- (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
59 President present General Counsel,
and SunAmerica (2005 to
Assistant present).
Secretary
Matthew J. Hackethal Anti-Money 2006- Chief Compliance Officer, N/A N/A
41 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 Fund (1 fund), SunAmerica Equity Funds (3 funds), SunAmerica
Income Funds (4 funds), SunAmerica Series, Inc. (7 portfolios), Anchor
Series Trust (8 portfolios), SunAmerica Senior Floating Rate Fund, Inc. (1
fund), SunAmerica Series Trust (38 portfolios), SunAmerica Specialty Series
(5 funds), VALIC Company I (34 funds), VALIC Company II (15 funds) and
Seasons Series Trust (21 portfolios).
(2) Directorships of companies required to report to the SEC 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 which is available without charge by calling (800)
858-8850.
23
SUNAMERICA MONEY MARKET FUNDS, INC.
SHAREHOLDER TAX INFORMATION
Certain tax information regarding the Fund is required to be provided to
shareholders based upon the Fund's income and distributions for the taxable
year ended December 31, 2012. The information necessary to complete your income
tax returns is included with your Form 1099-DIV, which will be mailed to you in
early 2013.
24
SUNAMERICA MONEY MARKET FUNDS, INC.
RESULTS OF SPECIAL SHAREHOLDER MEETING -- DECEMBER 31, 2012 --
(UNAUDITED)
On February 23, 2012, a special meeting of the Shareholders was held to
consider a proposal to approve a Plan of Liquidation and Distribution 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
25
[LOGO] AIG Sun America
Mutual Funds
HARBORSIDE FINANCIAL CENTER
3200 PLAZA 5
JERSEY CITY, NJ 07311-4992
DIRECTORS/TRUSTEES TRANSFER AGENT 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 219373 file its com-plete
STEPHEN J. GUTMAN KANSAS CITY, MO 64141 schedule of portfolio
PETER A. HARBECK holdings with the U.S.
WILLIAM J. SHEA CUSTODIAN Securities and Exchange
STATE STREET BANK AND Commission for its first
OFFICERS TRUST COMPANY and third fiscal quarters
JOHN T. GENOY, PRESIDENT P.O. BOX 5607 on Form N-Q. The Fund's
AND CHIEF EXECUTIVE BOSTON, MA 02110 Forms N-Q are available
OFFICER on the U.S. Securities
DONNA M. HANDEL, VOTING PROXIES ON FUND and Exchange Commission's
TREASURER PORTFOLIO SECURITIES website at
JAMES NICHOLS, VICE A description of the http://www.sec.gov. You
PRESIDENT policies and proce-dures can also review and
KATHERINE STONER, CHIEF that the Funds use to obtain copies of the
COMPLIANCE OFFICER determine how to vote Forms N-Q at the U.S.
GREGORY N. BRESSLER, proxies relating to Securities and Exchange
CHIEF LEGAL OFFICER securities held in the Commission's Public
AND SECRETARY Funds' portfolios which Refer-ence Room in
NORI L. GABERT, VICE is available in the Washington, DC
PRESIDENT AND Funds' Statement of (information on the
ASSISTANT SECRETARY Additional Information operation of the Public
KATHLEEN FUENTES, may be obtained without Reference Room may be
ASSISTANT SECRETARY charge upon request, by ob-tained by calling
JOHN E. MCLEAN, calling (800) 858-8850. 1-800-SEC-0330).
ASSISTANT SECRETARY This information is also
GREGORY R. KINGSTON, available from the EDGAR PROXY VOTING RECORD ON
VICE PRESIDENT AND database on the U.S. FUND PORTFOLIO SECURITIES
ASSISTANT TREASURER Securities and Exchange Information regarding how
DIEDRE L. SHEPHERD, Com-mission's website at the Funds voted proxies
ASSISTANT TREASURER http://www.sec.gov. relating to securities
MATTHEW J. HACKETHAL, held in the Fund's
ANTI-MONEY LAUNDERING DELIVERY OF SHAREHOLDER portfolio during the most
COMPLIANCE OFFICER DOCUMENTS recent twelve month
The Funds have adopted a period ended June 30 is
INVESTMENT ADVISER policy that allows them available, once filed
SUNAMERICA ASSET to send only one copy of with the U.S. Securities
MANAGEMENT CORP. a Fund's prospectus, and Exchange Commis-sion,
HARBORSIDE FINANCIAL proxy material, annual without charge, upon
CENTER report and semi-annual request, by calling (800)
3200 PLAZA 5 report (the "shareholder 858-8850 or on the U.S.
JERSEY CITY, NJ documents") to Securities and Exchange
07311-4992 share-holders with Commission's website at
multiple accounts http://www.sec.gov.
DISTRIBUTOR residing at the same
SUNAMERICA CAPITAL "household." This This report is submitted
SERVICES, INC. practice is called solely for the general
HARBORSIDE FINANCIAL householding and reduces information of
CENTER Fund expenses, which shareholders of the Fund.
3200 PLAZA 5 benefits you and other Distribution of this
JERSEY CITY, NJ shareholders. Unless the report to persons other
07311-4992 Funds receive than shareholders of the
instructions to the Fund is authorized only
SHAREHOLDER SERVICING contrary, you will only in connection with a
AGENT receive one copy of the currently effective
SUNAMERICA FUND shareholder documents. prospectus, setting forth
SERVICES, INC. The Funds will continue details of the Fund,
HARBORSIDE FINANCIAL to household the which must precede or
CENTER shareholder documents accompany this report.
3200 PLAZA 5 indefinitely, until we
JERSEY CITY, NJ are instructed otherwise.
07311-4992 If you do not wish to
partic-ipate in
householding, please
contact Shareholder
Services at (800)
858-8850 ext. 6010 or
send a written request
with your name, the name
of your fund(s) and your
account member(s) to
SunAmerica Mutual Funds
c/o BFDS, P.O. Box
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
MMANN - 12/12
[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 2012, 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:
2011 2012
(a) Audit Fees............................. $58,163 $39,280
(b) Audit-Related Fees..................... $ 0 $ 0
(c) Tax Fees............................... $23,069 $11,875
(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:
2011 2012
(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 2011 and 2012 were $881,668 and $65,465, respectively.
(h) 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 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 8, 2013
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: March 8, 2013
By: /s/ Donna M. Handel
--------------------------
Donna M. Handel
Treasurer
Date: March 8, 2013