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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: June 30, 2013
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Item 1. Reports to Stockholders
[PHOTO]
SEMI-ANNUAL REPORT 2013
SUNAMERICA
Money Market Fund
[LOGO]
JUNE 30, 2013 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........................... 9
NOTES TO FINANCIAL STATEMENTS...................... 12
APPROVAL OF THE INVESTMENT ADVISORY AND MANAGEMENT
AGREEMENT.......................................... 19
JUNE 30, 2013 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, 2013. For
the money markets, it was a period wherein Federal Reserve Board (the "Fed")
policy, fiscal policy, global market volatility and supply/demand conditions
within the repurchase agreement and U.S. Treasury securities markets combined
to keep money market yields low.
Overall, macroeconomic data and the trend of global economic growth were
largely positive during the semi-annual period. European data improved. Japan's
economy grew in response to its government and central bank policies. The U.S.
economy continued to rebound rather steadily, albeit slower than many would
prefer. Still, volatility persisted.
During the first quarter of 2013, U.S. economic data softened somewhat, despite
a strong housing sector, and the European economy showed further signs of
weakening, as troubles in Italy and Cyprus dominated headlines. The second
quarter of 2013 saw heightened volatility in interest rates, and benchmark
yields in the U.S., Europe and Japan rose substantially. Such volatility was
sparked by Fed Chair Bernanke's announcement on May 22, 2013 regarding the
potential "tapering" of the pace of quantitative easing asset purchases. In
June 2013, news from the Fed indicated the slowing of the asset purchase
program could begin later this year. The result was a sharp sell-off in both
U.S. Treasuries and what are considered riskier assets. European peripheral
countries performed well despite weaker economic data, as political uncertainty
in Italy eased and the European Central Bank ("ECB") cut its main policy rate
by 25 basis points to a record low of 0.50% in May, citing weak growth and
slowing inflation. (A basis point is 1/100/th/ of a percentage point.) The Bank
of Japan announced aggressive new easing measures in its first policy meeting
under its new Governor Kuroda.
With the targeted federal funds rate near zero throughout the semi-annual
period and no immediate indication of this changing despite the continued
rhetoric from the Fed on moderating the monthly pace of asset purchases, money
market yields were anchored near the same zero level with little difference
between maturities. Further, the money market yield curve, or spectrum of
maturities, 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 during the semi-annual period. As such, the semi-annual period did
not provide many opportunities to add yield.
There were also significant regulatory developments on the money market reform
front during the semi-annual period. On June 5, 2013, the Securities and
Exchange Commission ("SEC") unanimously voted to propose for public comment a
proposal to amend Rule 2a-7 and other rules that govern money market funds
under the Investment Company Act of 1940. While we continue to review details
of the proposal, we do note that it includes two principal alternative reforms
that could be adopted alone or in combination. Under the first alternative,
prime and tax exempt institutional money market funds would be required to
float their net asset value (NAV). Specifically, these funds would be required
to sell and redeem shares based on the current market-based value of the
securities in their underlying portfolios. Under the second alternative, money
market funds would continue to transact at a $1.00 share price, but in certain
circumstances would be required to institute a liquidity fee and permitted to
impose a redemption gate in times of stress. The SEC also proposed additional
amendments as part of its proposal, such as tightening diversification
requirements under Rule 2a-7, enhancing disclosure requirements, strengthening
stress testing and increasing reporting obligations for money market funds. It
is important to note that this is just a proposal and it will likely be some
time before final rules, if any, are adopted and become effective. As a result,
there are no changes to the Fund or the rules governing money market funds
being implemented at this time in response to the proposal.
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, 2013.
1
JUNE 30, 2013 SEMI-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.
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, 2013 -- (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, 2013 and held until June 30, 2013.
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, 2013" 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, 2013" 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, 2013" 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, 2013"
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, 2013"
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, 2013" 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, 2013" 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, 2013 -- (UNAUDITED) (CONTINUED)
ACTUAL HYPOTHETICAL
------------------------------------------------- --------------------------------------------------------
ENDING ENDING ACCOUNT EXPENSE
ACCOUNT VALUE EXPENSES PAID VALUE USING EXPENSES PAID RATIO
BEGINNING USING ACTUAL DURING THE BEGINNING A HYPOTHETICAL 5% DURING THE AS OF
ACCOUNT VALUE RETURNS AT SIX MONTHS ENDED ACCOUNT VALUE ASSUMED RETURN AT SIX MONTHS ENDED JUNE 30,
FUND# AS JANUARY 1, 2013 JUNE 30, 2013 JUNE 30, 2013* AS OF JANUARY 1, 2013 JUNE 30, 2013 JUNE 30, 2013* 2013*
----- ------------------ ------------- ---------------- --------------------- ----------------- ---------------- --------
Money
Market
Class A.. $1,000.00 $1,000.05 $0.99 $1,000.00 $1,023.80 $1.00 0.20%
Class I.. $1,000.00 $1,000.05 $0.99 $1,000.00 $1,023.80 $1.00 0.20%
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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 181 days divided by 365
days. These ratios do not reflect transaction costs, including contingent
deferred sales charges, small account fees and administrative fees, if
applicable to your account. Please refer to your Prospectus, your qualified
retirement plan document and/or materials from your financial 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 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, 2013" and "Expense Ratios" would
have been higher.
4
SUNAMERICA MONEY MARKET FUNDS, INC.
STATEMENT OF ASSETS AND LIABILITIES -- JUNE 30, 2013 -- (UNAUDITED)
ASSETS:
Investments at value* (unaffiliated)............................... $697,686,353
Repurchase agreements (cost approximates value).................... 53,514,000
------------
Total Investments................................................ $751,200,353
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Cash............................................................... 12,499,458
Receivable for:
Fund shares sold................................................. 235,006
Dividends and interest........................................... 495,269
Prepaid expenses and other assets.................................. 7,834
Due from investment adviser for expense reimbursements/fee waivers. 369,837
Due from distributor for fee waivers............................... 86,178
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Total assets..................................................... 764,893,935
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LIABILITIES:
Payable for:
Fund shares redeemed............................................. 92,787
Investments purchased............................................ 25,100,861
Investment advisory and management fees.......................... 288,609
Distribution and service maintenance fees........................ 86,178
Transfer agent fees and expenses................................. 142,565
Directors' fees and expenses..................................... 15,253
Other accrued expenses........................................... 117,716
Dividends payable.................................................. 23,289
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Total liabilities................................................ 25,867,258
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Net Assets...................................................... $739,026,677
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NET ASSETS REPRESENTED BY:
Common stock, $.001 par value (10 billion shares authorized)....... $ 740,148
Paid-in capital.................................................... 739,482,607
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740,222,755
Accumulated undistributed net investment income (loss)............. (28,365)
Accumulated undistributed net realized gain (loss) on investments.. (1,167,713)
------------
Net assets...................................................... $739,026,677
============
CLASS A:
Net assets......................................................... $724,168,897
Shares outstanding................................................. 725,287,248
Net asset value and redemption price per share
(excluding any applicable contingent deferred sales charge)....... $ 1.00
============
CLASS I:
Net assets......................................................... $ 14,857,780
Shares outstanding................................................. 14,860,597
Net asset value and redemption price per share..................... $ 1.00
============
* Amortized cost of investment securities (unaffiliated)........... $697,686,353
============
See Notes to Financial Statements
5
SUNAMERICA MONEY MARKET FUNDS, INC.
STATEMENT OF OPERATIONS -- FOR THE SIX MONTHS ENDED JUNE 30, 2013 --
(UNAUDITED)
MONEY MARKET
FUND
------------
INVESTMENT INCOME:
Interest (unaffiliated)................................................................ $ 740,904
-----------
Total investment income............................................................. 740,904
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EXPENSES:
Investment advisory and management fees................................................ 1,751,212
Distribution and service maintenance fees:
Class A.............................................................................. 523,134
Transfer agent fees and expenses:
Class A.............................................................................. 801,997
Class I.............................................................................. 16,481
Registration fees:
Class A.............................................................................. 23,070
Class I.............................................................................. 7,896
Custodian and accounting fees.......................................................... 72,410
Reports to shareholders................................................................ 63,923
Audit and tax fees..................................................................... 25,146
Legal fees............................................................................. 12,825
Directors' fees and expenses........................................................... 32,884
Other expenses......................................................................... 9,942
-----------
Total expenses before fee waivers and expense reimbursements........................ 3,340,920
Fees waived and expenses reimbursed by investment adviser and distributor (Note 3).. (2,635,682)
-----------
Net expenses........................................................................ 705,238
-----------
Net investment income (loss)........................................................... 35,666
-----------
Net realized gain (loss) on investments................................................ 23,151
-----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS........................ $ 58,817
===========
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
2013 DECEMBER 31,
(UNAUDITED) 2012
------------------ ------------
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income (loss)........................................................... $ 35,666 $ 67,743
Net realized gain (loss) on investments................................................ 23,151 20,077
------------ ------------
Net increase (decrease) in net assets resulting from operations.......................... $ 58,817 $ 87,820
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (Class A)........................................................ (34,932) (66,757)
Net investment income (Class I)........................................................ (734) (1,510)
------------ ------------
Total distributions to shareholders...................................................... (35,666) (68,267)
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS (NOTE 5). (45,405,503) 76,249,468
------------ ------------
TOTAL INCREASE (DECREASE) IN NET ASSETS.................................................. (45,382,352) 76,269,021
------------ ------------
NET ASSETS:
Beginning of period...................................................................... 784,409,029 708,140,008
------------ ------------
End of period*........................................................................... $739,026,677 $784,409,029
============ ============
* Includes accumulated undistributed net investment income (loss)........................ $ (28,365) $ (28,365)
============ ============
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
-------
12/31/08 $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)
06/30/13(7) 1.00 0.00 (0.00) 1.00 0.00 724,169 0.20(3)(8) 0.01(3)(8)
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)
06/30/13(7) 1.00 0.00 (0.00) 1.00 0.00 14,858 0.20(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):
12/31/08 12/31/09 12/31/10 12/31/11 12/31/12 06/30/13(7)(8)
-------- -------- -------- -------- -------- --------------
Class A............. -- % 0.21% 0.64% 0.76% 0.72% 0.74%
Class I............. 0.18 0.34 0.51 0.60 0.62 0.69
(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, 2013 -- (UNAUDITED)
INDUSTRY ALLOCATION*
U.S. Government Agencies.......... 33.2%
Foreign Banks..................... 16.5
Money Center Banks................ 11.6
U.S. Government Treasuries........ 7.7
Domestic Bank..................... 7.7
Repurchase Agreement.............. 7.2
Super-Regional Banks-US........... 3.9
Commercial Banks-Canadian......... 3.6
Diversified Financial Services.... 3.6
Commercial Banks.................. 3.4
Cosmetics-Toiletries.............. 1.9
Finance........................... 1.3
-----
101.6%
=====
Weighted average days to maturity. 51.9
CREDIT QUALITY ALLOCATION@#
A-1......................... 98.2%
A-2......................... 1.7
Not Rated+.................. 0.1
-----
100.0%
=====
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* Calculated as a percentage of net assets
@ Source: Standard and Poors
# Calculated as a percentage of total debt issues.
+ Represents debt issues that have either no rating or the rating is
unavailable from the date source.
9
SUNAMERICA MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS -- JUNE 30, 2013 -- (UNAUDITED)
PRINCIPAL VALUE
SECURITY DESCRIPTION AMOUNT (NOTE 2)
SHORT-TERM INVESTMENT SECURITIES -- 94.4%
CERTIFICATES OF DEPOSIT -- 27.1%
Citibank NA
0.26% due 08/15/2013............... $13,750,000 $ 13,750,000
Credit Agricole Corporate and
Investment Bank NY
0.13% due 07/03/2013............... 14,100,000 14,100,000
Deutsche Bank AG NY FRS
0.25% due 07/01/13................. 14,100,000 14,100,000
Nordea Bank Finland PLC NY FRS
0.19% due 08/08/2013............... 14,300,000 14,300,000
Nordea Bank Finland PLC NY FRS
0.19% due 10/25/2013............... 13,800,000 13,800,000
Rabobank Nederland NV NY FRS
0.33% due 01/31/2014............... 14,250,000 14,250,000
Rabobank Nederland NV NY FRS
0.38% due 07/11/2013............... 16,000,000 16,000,000
Royal Bank of Canada NY FRS
0.33% due 10/14/2018(3)............ 13,500,000 13,500,000
Svenska Handelsbanken NY
0.21% due 09/23/2013............... 14,500,000 14,500,169
Svenska Handelsbanken NY
0.23% due 07/12/2013............... 14,700,000 14,700,022
UBS AG Stamford CT FRS
0.34% due 01/21/2014............... 13,750,000 13,750,000
UBS AG Stamford CT FRS
0.38% due 10/17/2013............... 14,400,000 14,400,000
Wells Fargo Bank NA FRS
0.18% due 09/11/2013............... 14,900,000 14,900,000
Wells Fargo Bank NA
0.20% due 01/15/2014............... 14,000,000 14,000,000
------------
TOTAL CERTIFICATES OF DEPOSIT
(amortized cost $200,050,191)..... 200,050,191
------------
COMMERCIAL PAPER -- 14.0%
Barclays US Funding Corp.
0.20% due 08/01/2013............... 13,300,000 13,297,709
BNP Paribas Finance, Inc.
0.08% due 07/03/2013............... 34,000,000 33,999,849
Credit Agricole North America, Inc.
0.13% due 07/15/2013............... 17,000,000 16,999,141
JPMorgan Chase & Co. FRS
0.29% due 09/03/2013............... 14,250,000 14,250,000
State Street Corp.
0.15% due 08/07/2013............... 12,500,000 12,498,073
State Street Corp.
0.15% due 10/01/2013............... 12,500,000 12,495,208
------------
TOTAL COMMERCIAL PAPER
(amortized cost $103,539,980)..... 103,539,980
------------
U.S. CORPORATE BONDS & NOTES -- 11.8%
Bank of America NA
0.20% due 07/29/2013............... 14,450,000 14,450,000
Bank of America NA
0.26% due 09/16/2013............... 14,080,000 14,080,000
Citigroup, Inc. FRS
0.40% due 03/07/2014............... 4,250,000 4,245,033
Citigroup, Inc.
6.50% due 08/19/2013............... 8,250,000 8,315,865
PRINCIPAL VALUE
SECURITY DESCRIPTION AMOUNT (NOTE 2)
-------------------------------------------------------------
U.S. CORPORATE BONDS & NOTES (CONTINUED)
General Electric Capital Corp. FRS
1.13% due 01/07/2014................ $ 7,500,000 $ 7,535,511
JPMorgan Chase Bank NA FRS
0.35% due 03/07/2019(3)............. 11,400,000 11,400,000
Procter & Gamble Co. FRS
0.19% due 02/06/2014................ 14,100,000 14,098,622
Royal Bank of Canada
1.13% due 01/15/2014................ 12,934,000 12,991,074
-----------
TOTAL U.S. CORPORATE BONDS & NOTES
(amortized cost $87,116,105)....... 87,116,105
-----------
MEDIUM TERM NOTES -- 0.6%
General Electric Capital Corp.
1.88% due 09/16/2013................ 2,000,000 2,006,961
Royal Bank of Canada
2.10% due 07/29/2013................ 250,000 250,369
UBS AG Stamford CT
2.25% due 01/28/2014................ 2,000,000 2,022,105
-----------
TOTAL MEDIUM TERM NOTES
(amortized cost $4,279,435)........ 4,279,435
-----------
U.S. GOVERNMENT AGENCIES -- 33.2%
Agency for International Development
Panama FRS
0.59% due 05/15/2015(3)............. 550,229 550,579
Federal Farm Credit Bank
0.04% due 07/02/2013............... 14,000,000 13,999,984
0.09% due 11/01/2013............... 2,000,000 1,999,385
0.13% due 10/21/2013............... 7,500,000 7,496,967
0.14% due 02/10/2014............... 5,500,000 5,495,209
0.18% due 09/11/2013............... 6,600,000 6,597,624
Federal Farm Credit Bank FRS
0.11% due 02/19/2014............... 5,600,000 5,600,000
0.14% due 12/06/2013............... 8,300,000 8,300,000
0.16% due 07/24/2013............... 5,435,000 5,435,035
0.16% due 09/16/2013............... 800,000 800,018
0.21% due 03/26/2014............... 14,950,000 14,953,811
0.22% due 07/10/2013............... 1,230,000 1,230,021
0.27% due 07/14/2014............... 1,600,000 1,602,519
Federal Home Loan Bank
0.02% due 07/22/2013............... 14,000,000 13,999,837
0.04% due 07/24/2013............... 7,000,000 6,999,463
0.04% due 08/09/2013............... 16,500,000 16,499,285
0.06% due 07/03/2013............... 14,000,000 13,999,953
0.08% due 08/15/2013............... 12,350,000 12,348,740
0.08% due 08/30/2013............... 12,700,000 12,698,307
0.12% due 07/24/2013............... 7,000,000 6,999,803
0.17% due 12/20/2013............... 7,250,000 7,249,432
0.18% due 06/19/2014............... 7,700,000 7,686,409
0.18% due 06/26/2014............... 6,500,000 6,488,300
Federal Home Loan Mtg. Corp.
0.07% due 08/28/2013............... 3,000,000 2,999,662
0.16% due 11/05/2013............... 11,300,000 11,293,622
0.17% due 02/24/2014............... 5,700,000 5,693,594
0.18% due 02/24/2014............... 6,200,000 6,192,622
1.38% due 02/25/2014............... 2,447,000 2,466,335
10
SUNAMERICA MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS -- JUNE 30, 2013 -- (UNAUDITED) (CONTINUED)
PRINCIPAL VALUE
SECURITY DESCRIPTION AMOUNT (NOTE 2)
U.S. GOVERNMENT AGENCIES (CONTINUED)
Federal National Mtg. Assoc.
0.10% due 09/18/2013............. $ 3,500,000 $ 3,499,232
0.11% due 07/22/2013............. 8,500,000 8,499,455
0.16% due 02/03/2014............. 12,000,000 11,988,427
1.25% due 02/27/2014............. 7,600,000 7,654,885
2.50% due 05/15/2014............. 4,000,000 4,080,599
Federal National Mtg. Assoc. FRS
0.18% due 08/12/2013............. 925,000 925,032
0.36% due 06/23/2014............. 1,000,000 1,001,889
------------
TOTAL U.S. GOVERNMENT AGENCIES
(amortized cost $245,326,035).... 245,326,035
------------
U.S. GOVERNMENT TREASURIES -- 7.7%
United States Treasury Bills
0.01% due 07/25/2013............. 11,000,000 10,999,927
0.04% due 07/05/2013............. 7,000,000 6,999,969
0.07% due 10/31/2013............. 3,000,000 2,999,339
0.07% due 11/07/2013............. 3,000,000 2,999,274
0.10% due 07/25/2013............. 6,500,000 6,499,567
United States Treasury Notes
0.25% due 01/31/2014............. 750,000 750,322
0.38% due 07/31/2013............. 1,150,000 1,150,202
0.50% due 11/15/2013............. 5,700,000 5,706,554
1.00% due 01/15/2014............. 6,650,000 6,679,609
1.00% due 05/15/2014............. 12,500,000 12,589,844
------------
TOTAL U.S. GOVERNMENT TREASURIES
(amortized cost $57,374,607)..... 57,374,607
------------
TOTAL SHORT-TERM INVESTMENT SECURITIES -- 94.4%
(amortized cost $697,686,353).... 697,686,353
------------
PRINCIPAL VALUE
SECURITY DESCRIPTION AMOUNT (NOTE 2)
-----------------------------------------------------------------
REPURCHASE AGREEMENT -- 7.2%
State Street Bank & Trust Co.
Joint Repurchase Agreement(1)
(amortized cost $53,514,000)......... $53,514,000 $ 53,514,000
------------
TOTAL INVESTMENTS
(amortized cost $751,200,353)(2).... 101.6 % 751,200,353
LIABILITIES IN EXCESS OF OTHER ASSETS. (1.6) (12,173,676)
----------- ------------
NET ASSETS............................ 100.0 % $739,026,677
=========== ============
--------
(1)See Note 2 for details of Joint Repurchase Agreement.
(2)At June 30, 2013, the cost of securities for federal income tax purposes was
the same for book purposes.
(3)The security's effective maturity date is less than one year.
FRS--Floating Rate Securities
The rates shown on FRS are the current interest rates at June 30, 2013 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, 2013 (see Note 2):
LEVEL 2--
OTHER
LEVEL 1--UNADJUSTED OBSERVABLE LEVEL 3--SIGNIFICANT
QUOTED PRICES INPUTS UNOBSERVABLE INPUTS TOTAL
------------------- ------------ -------------------- ------------
Assets:
Short-Term Investment Securities:
Certificates of Deposit........... $-- $200,050,191 $-- $200,050,191
Commercial Paper.................. -- 103,539,980 -- 103,539,980
U.S. Corporate Bonds & Notes...... -- 87,116,105 -- 87,116,105
Medium Term Notes................. -- 4,279,435 4,279,435
U.S. Government Agencies.......... -- 245,326,035 -- 245,326,035
U.S. Government Treasuries........ -- 57,374,607 -- 57,374,607
Repurchase Agreement............... -- 53,514,000 -- 53,514,000
--- ------------ --- ------------
TOTAL................................ $-- $751,200,353 $-- $751,200,353
=== ============ === ============
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
11
SUNAMERICA MONEY MARKET FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS -- JUNE 30, 2013 -- (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"). 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
12
SUNAMERICA MONEY MARKET FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS -- JUNE 30, 2013 -- (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 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 June 30,
2013 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.
MASTER AGREEMENTS: The Fund has entered into Master Repurchase Agreements
("Master Agreements") with certain counterparties that govern repurchase
agreement transactions. The Master Agreements may contain provisions
regarding, among other things, the parties' general obligations,
representations, agreements, collateral requirements and events of default.
Collateral can be in the form of cash or securities as agreed to by the Fund
and applicable
13
SUNAMERICA MONEY MARKET FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS -- JUNE 30, 2013 -- (UNAUDITED)
(CONTINUED)
counterparty. The Master Agreements typically specify certain standard
termination events, such as failure of a party to pay or deliver, credit
support defaults and other events of default. Upon the occurrence of an
event of default, the other party may elect to terminate early and cause
settlement of all repurchase agreement transactions outstanding pursuant to
a particular Master Agreement, including the payment of any losses and costs
resulting from such early termination, as reasonably determined by the
terminating party. Any decision by one or more of the Fund's counterparties
to elect early termination could cause the Fund to accelerate the payment of
liabilities. Typically, the Master Agreement will permit a single net
payment in the event of default. Note, however, that bankruptcy or
insolvency laws of a particular jurisdiction may impose restrictions on or
prohibitions against the right of offset in bankruptcy, insolvency or other
events.
As of June 30, 2013, the following tables represent financial assets and
liabilities (by type) on a gross basis and related collateral pledged for
financial instruments subject to master netting arrangements:
ASSETS:
-------
GROSS NET AMOUNTS
GROSS AMOUNTS OFFSET OF ASSETS PRESENTED
AMOUNTS OF IN THE STATEMENT OF IN THE STATEMENT OF
DESCRIPTION: RECOGNIZED ASSETS ASSETS AND LIABILITIES ASSETS AND LIABILITIES
------------ ------------------------- ---------------------- ----------------------
Repurchase agreements,
subject to a master netting
arrangement or similar
arrangement................. $53,514,000 $ -- $53,514,000
=========== ============ ===========
GROSS AMOUNTS NOT OFFSET IN THE
STATEMENT OF ASSETS AND LIABILITIES
- NET AMOUNTS ---------------------------------------------
OF ASSETS
IN THE STATEMENT FINANCIAL CASH COLLATERAL
COUNTERPARTY: OF ASSETS AND LIABILITIES INSTRUMENTS RECEIVED NET AMOUNT
------------- ------------------------- ---------------------- ---------------------- ----------
State Street Bank & Trust Co.. $53,514,000 ($53,514,000) $ -- $ --
=========== ============ =========== ====
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
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 June 30, 2013, the Fund held an undivided interest in the joint
repurchase agreement with State Street Bank & Trust Co.:
PERCENTAGE PRINCIPAL
OWNERSHIP AMOUNT
---------- -----------
Money Market Fund............. 27.55% $53,514,000
14
SUNAMERICA MONEY MARKET FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS -- JUNE 30, 2013 -- (UNAUDITED)
(CONTINUED)
As of such date, the repurchase agreement in that joint account and the
collateral therefore were as follows:
State Street Bank & Trust Co., dated June 28, 2013, bearing interest at a
rate of 0.01% per annum, with a principal amount of $194,210,000, a
repurchase price of $194,210,162, and a maturity date of July 1, 2013. The
repurchase agreement is collateralized by the following:
INTEREST MATURITY
TYPE OF COLLATERAL RATE RATE PRINCIPAL AMOUNT VALUE
------------------ -------- --------- ---------------- ------------
U.S. Treasury Notes........... 0.63% 5/31/2017 $ 15,740,000 $ 15,489,293
U.S. Treasury Notes........... 0.88 2/28/2017 80,280,000 80,277,030
U.S. Treasury Notes........... 0.88 4/30/2017 102,755,000 102,329,183
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).
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 December 2011, the FASB issued Accounting
Standards Update ("ASU") No. 2011-11, "Disclosures about Offsetting Assets
and Liabilities", which was subsequently clarified in ASU 2013-01
"Clarifying the Scope of Disclosures about Offsetting Assets and
Liabilities" which was issued in January 2013. The amended Standard 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. All
required changes to accounting policies have been made in accordance with
ASU No. 2011-11 and No. 2013-01.
15
SUNAMERICA MONEY MARKET FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS -- JUNE 30, 2013 -- (UNAUDITED)
(CONTINUED)
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.
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, 2013, pursuant to the
contractual expense limitations, SunAmerica waived fees and/or reimbursed
expenses of $8,702 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, 2013,
SunAmerica voluntarily waived fees and/or reimbursed expenses of $2,062,112
and $41,734 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,
2013, SACS voluntarily waived fees as follows: Class A $523,134.
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, 2013, the
proceeds received from redemptions are as follows:
Class A..................................................... $35
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
16
SUNAMERICA MONEY MARKET FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS -- JUNE 30, 2013 -- (UNAUDITED)
(CONTINUED)
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, 2013, 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 JUNE 30, 2013
---- -------- -------------
Money Market Class A.......... $767,264 $126,395
Money Market Class I.......... 16,154 2,648
As of June 30, 2013, 84.9% 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.
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
-----------------------------------------------------------
LONG-TERM GAINS/ UNREALIZED LONG-TERM
ORDINARY CAPITAL AND APPRECIATION ORDINARY CAPITAL
INCOME OTHER LOSSES (DEPRECIATION) INCOME GAINS
-------- ---------------- -------------- -------- ---------
$ -- $(1,190,747) $ -- $68,267 $ --
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.+
--------
+ On December 22, 2010, the Regulated Investment Company Modernization Act of
2010 (the "Act") was enacted which changed various technical rules governing
the tax treatment of regulated investment companies. The changes are
generally effective for taxable years beginning after the date of enactment.
Under the Act, the fund will be permitted to carry forward capital losses
incurred in taxable years beginning after the date of enactment for an
unlimited period. However, any losses incurred during those future taxable
years will be required to be utilized prior to the losses incurred in
pre-enactment taxable years, which carry an expiration date. As a result of
this ordering rule, pre-enactment capital loss carryforwards may be more
likely to expire unused. Additionally, post-enactment capital losses that
are carried forward will retain their character as either short-term or
long-term losses rather than being considered all short-term as under
previous law.
Under the current 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 June 30, 2013 and for the prior year were as follows:
MONEY MARKET FUND
--------------------------------------------------------------------
CLASS A CLASS I
--------------------------------- ---------------------------------
FOR THE FOR THE
SIX MONTHS ENDED FOR THE SIX MONTHS ENDED FOR THE
JUNE 30, 2013 YEAR ENDED JUNE 30, 2013 YEAR ENDED
(UNAUDITED) DECEMBER 31, 2012 (UNAUDITED) DECEMBER 31, 2012
---------------- ----------------- ---------------- -----------------
Shares sold............. $ 198,767,685 $ 565,144,937 $ 5,701,055 $ 9,071,617
Reinvested dividends.... 33,909 64,666 722 1,487
Shares redeemed......... (243,299,190) (489,099,862) (6,609,684) (8,933,377)
------------- ------------- ----------- -----------
Net increase (decrease). $ (44,497,596) $ 76,109,741 $ (907,907) $ 139,727
============= ============= =========== ===========
17
SUNAMERICA MONEY MARKET FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS -- JUNE 30, 2013 -- (UNAUDITED)
(CONTINUED)
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.
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 JUNE 30, 2013
---- -----------------------------------------------
Money Market
Fund........................................ $13,380 $519 $3,872
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 six months ended June 30, 2013, the Fund did
not participate in this program.
18
SUNAMERICA MONEY MARKET FUNDS, INC.
APPROVAL OF THE INVESTMENT ADVISORY AND MANAGEMENT AGREEMENT -- JUNE
30, 2013 -- (UNAUDITED)
The Board of the Corporation, including the Disinterested Directors, 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, 2014 at an
in-person meeting held on June 4-5, 2013 (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) information relating to 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 Corporation 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. The Board further considered certain strategic changes
that SunAmerica intended to implement with respect to its investment
department, and concluded, based on its experience and interaction with
SunAmerica, that: (i) SunAmerica has been able to retain quality investment 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,
2013, SunAmerica managed, advised and/or administered approximately $54.8
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.
19
SUNAMERICA MONEY MARKET FUNDS, INC.
APPROVAL OF THE INVESTMENT ADVISORY AND MANAGEMENT AGREEMENT -- JUNE
30, 2013 -- (UNAUDITED) (CONTINUED)
The Board also considered SunAmerica's risk management process. The Board
further observed that SunAmerica has developed internal procedures for
monitoring compliance with the investment objectives, policies and restrictions
of the Fund as set forth in the Fund's prospectus. 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,
2013. 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- and three-year periods and below the
median of its Peer Group and Peer Universe for the five-year period. The Board
also considered that the Fund's performance was equal to its Lipper Index for
the one-year period and underperformed the Lipper Index for the three-, and
five year periods. The Board further considered that range of returns among the
funds in the Peer Group and Peer Universe was 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 with respect to the Fund in
order to avoid a negative yield. The Board further considered that, unlike the
funds in the Peer Group and Peer Universe, the full amount of the fee waivers
and/or reimbursements being made by SunAmerica with respect to the Fund are not
applied against the actual management fees cited the Lipper reports. As a
result, the Board took into account that the actual management fees presented
by Lipper for the funds in the Peer Group and Peer Universe may appear lower on
a relative basis. The Board also considered the various expense components of
the Fund and compared the Fund's net
20
SUNAMERICA MONEY MARKET FUNDS, INC.
APPROVAL OF THE INVESTMENT ADVISORY AND MANAGEMENT AGREEMENT -- JUNE
30, 2013 -- (UNAUDITED) (CONTINUED)
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 Group and Peer Universe 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.
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 noted that the mutual funds identified as similar to the
Fund are sold only in the variable annuity market and, accordingly, are in
different Lipper classifications, with peer groups consisting of funds
underlying variable insurance products. The Board further noted that SunAmerica
serves as subadviser to certain of these similar mutual funds and observed that
the services SunAmerica provides as subadviser are much more limited in scope
than in its role as investment manager and adviser to the Fund. The Board then
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 shares 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
21
SUNAMERICA MONEY MARKET FUNDS, INC.
APPROVAL OF THE INVESTMENT ADVISORY AND MANAGEMENT AGREEMENT -- JUNE
30, 2013 -- (UNAUDITED) (CONTINUED)
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 additional breakpoints would be appropriate in the future due
to an increase in asset size or otherwise.
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, 2014. Based upon
its 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, and each Disinterested
Director may have attributed different weights to different factors. The
Disinterested Directors were also assisted by the advice of independent counsel
in making this determination.
22
[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 complete
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 procedures 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 Reference 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 obtained by calling
Timothy P. Pettee, Vice calling (800) 858-8850. 1-800-SEC-0330).
President This information is also
John E. McLean, available from the EDGAR PROXY VOTING RECORD ON
Assistant Secretary database on the U.S. FUND PORTFOLIO SECURITIES
Gregory R. Kingston, Securities and Exchange Information regarding how
Vice President and Commission's website at the Funds voted proxies
Assistant Treasurer http://www.sec.gov. relating to securities
Diedre L. Shepherd, held in the Fund's
Assistant Treasurer DELIVERY OF SHAREHOLDER portfolio during the most
Matthew J. Hackethal, DOCUMENTS recent twelve month
Anti-Money Laundering The Funds have adopted a period ended June 30 is
Compliance Officer policy that allows them available, once filed
to send only one copy of with the U.S. Securities
INVESTMENT ADVISER a Fund's prospectus, and Exchange Commission,
SunAmerica Asset proxy material, annual without charge, upon
Management Corp. report and semi-annual request, by calling (800)
Harborside Financial report (the "shareholder 858-8850 or on the U.S.
Center documents") to Securities and Exchange
3200 Plaza 5 shareholders with Commission's website at
Jersey City, NJ multiple accounts http://www.sec.gov.
07311-4992 residing at the same
"household." This This report is submitted
DISTRIBUTOR practice is called solely for the general
SunAmerica Capital householding and reduces information of
Services, Inc. Fund expenses, which shareholders of the Fund.
Harborside Financial benefits you and other Distribution of this
Center shareholders. Unless the report to persons other
3200 Plaza 5 Funds receive than shareholders of the
Jersey City, NJ instructions to the Fund is authorized only
07311-4992 contrary, you will only in connection with a
receive one copy of the currently effective
SHAREHOLDER SERVICING shareholder documents. prospectus, setting forth
AGENT The Funds will continue details of the Fund,
SunAmerica Fund to household the which must precede or
Services, Inc. shareholder documents accompany this report.
Harborside Financial indefinitely, until we
Center are instructed otherwise. The accompanying report
3200 Plaza 5 If you do not wish to has not been audited by
Jersey City, NJ participate in independent accountants
07311-4992 householding, please and accordingly no
contact Shareholder opinion has been
Services at expressed thereon.
(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
MMSAN - 6/13
[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 5, 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: September 5, 2013
By: /s/ Donna M. Handel
------------------------------
Donna M. Handel
Treasurer
Date: September 5, 2013