================================================================================
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM N-CSR
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CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-3807
SunAmerica Money Market Funds, Inc.
----------------------------------------------------
(Exact name of registrant as specified in charter)
Harborside 5, 185 Hudson Street, Suite 3300 Jersey City, NJ 07311
---------------------------------------------------------------------
(Address of principal executive offices) (Zip code)
John T. Genoy
Senior Vice President
SunAmerica Asset Management, LLC
Harborside 5, 185 Hudson Street,
Suite 3300
Jersey City, NJ 07311
-----------------------------------------
(Name and address of agent for service)
Registrant's telephone number, including area code: (201) 324-6414
Date of fiscal year end: December 31
Date of reporting period: December 31, 2017
================================================================================
Item 1. Reports to Stockholders
ANNUAL REPORT 2017
AIG
Government Money Market Fund
[PHOTO]
[LOGO]
Table of Contents
SHAREHOLDERS' LETTER.................................... 2
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........................... 12
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM. 18
DIRECTORS AND OFFICERS INFORMATION...................... 19
SHAREHOLDER TAX INFORMATION............................. 23
December 31, 2017 ANNUAL REPORT
Shareholders' Letter -- (unaudited)
Dear Shareholders,
We are pleased to present this annual shareholder report for the AIG Government
Money Market Fund (the "Fund") for the 12 months ended December 31, 2017.
Please note that effective February 28, 2017, SunAmerica Mutual Funds was
rebranded as AIG Funds, and each Fund's name was changed accordingly.
SunAmerica Asset Management, LLC, the investment adviser to the Fund, continues
to serve as investment adviser of the Fund and retains its current name. In
addition, there was no change in the Fund's investment goals or strategies,
portfolio managers or ticker symbols in connection with the rebranding.
The annual period ended December 31, 2017 was one wherein money market yields
remained low throughout but did move modestly higher as the Federal Reserve
(the "Fed") proceeded to raise the targeted federal funds rate three times, by
25 basis points each,/*/ bringing it to a range of 1.25%-1.50% by the end of
December 2017.
Indeed, as the annual period progressed, most central banks around the world
became incrementally more hawkish. The Fed raised interest rates in March, June
and December of 2017 and began tapering its asset purchases in October 2017.
Strong economic growth and inflation data prompted the Bank of Canada to raise
interest rates during July 2017 for the first time in seven years -- and then
it did so again in a surprise move less than two months later. Through much of
the annual period, the Bank of England (BoE) indicated interest rate increases
may be looming for the U.K. to contain surging inflation, despite uncertainty
about the post-Brexit growth outlook. Then, during the fourth calendar quarter,
the BoE raised its interest rates for the first time in 10 years, noting future
rate hikes would depend on the stability of the Brexit transition. The European
Central Bank (ECB) announced its intention early in 2017 to continue the pace
of its bond purchases through at least December 2017 and pushed back against
the notion of initiating interest rate increases prior to the end of its
quantitative easing. The ECB then announced in October 2017 a reduction in its
monthly asset purchases beginning in January 2018 but extended its purchase
program through September 2018. The People's Bank of China raised its open
market operations reverse repo rate during the fourth quarter of 2017. The
exception was the Bank of Japan, which remained accommodative, re-stating its
commitment to maintain a zero-yield policy on 10-year Japanese government bonds.
The U.S. Treasury money market yield curve, or spectrum of maturities,
flattened during the annual period overall, as yields on shorter-term
maturities rose while yields on longer-term maturities declined. Though there
was little difference in yields between maturities, the Fed's actions did help
drive short-term rates higher, creating opportunities to purchase modestly
higher yielding securities.
On the following pages, you will find a brief discussion of the annual period
from the portfolio manager. You will also find financial statements and
portfolio information for the Fund for the annual period ended December 31,
2017.
As always, we remain diligent in the management of your assets. If you have any
questions, or require additional information on this or other AIG Funds, we
invite you to contact your financial advisor or visit us at our website,
www.aig.com/funds. We value your ongoing confidence in us and look forward to
serving your investment needs in the future.
Sincerely,
/s/ Peter A. Harbeck
Peter A. Harbeck
President & CEO
SunAmerica Asset Management, LLC
--------
Past performance is no guarantee of future results.
*A basis point is 1/100/th/ of a percentage point.
You could lose money by investing in the Fund. Although the Fund seeks to
preserve the value of your investment at $1.00 per share, it cannot guarantee
it will do so. An investment in the Fund is not insured or guaranteed by the
Federal Deposit Insurance Corporation or any other government agency. The
Fund's sponsor has no legal obligation to provide financial support to the
Fund, and you should not expect that the sponsor will provide financial support
to the Fund at any time.
2
AIG Government Money Market Fund
The AIG Government Money Market Fund (Class A) returned 0.04% for the annual
period ended December 31, 2017.
Fund performance was affected most by rising, yet still low, interest rates
that persisted throughout 2017. 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.
To qualify as a government money market fund, the Fund must invest at least
99.5% of its total assets in cash, U.S. government securities, and/or
repurchase agreements that are collateralized by cash and/or U.S. government
securities. More specifically, during the annual period, the Fund had its
greatest allocation to U.S. government agency securities, especially Federal
Home Loan Bank Discount Notes and Fannie Mae Discount Notes, as we believed
these securities offered the best pricing versus U.S. Treasuries. The positions
in these agency securities contributed positively to the fund's annual
performance due to higher discount note funding needs, floating rate funding
needs and the multiple interest rate raises by the Federal Reserve (the "Fed")
during the annual period. These Discount Notes, along with Federal Farm Credit
Bank positions, were the best performing investments in the Fund during the
annual period.
Positions in U.S. Treasuries posted positive absolute returns but detracted
from the Fund's performance, as they were the lowest yielding investments in
its portfolio during the annual period. U.S. Treasuries were under pressure due
to compressed yields early in the calendar year and debt ceiling concerns
throughout the annual period. The Fed's December 2017 interest rate increase
helped mitigate these securities' relative underperformance given the resulting
increases in U.S. Treasury yields and the enhanced opportunities for our team
to purchase higher yielding securities.
We were able to navigate interest rate risk by adjusting the Fund's weighted
average maturity/1/ as market conditions shifted. In anticipation of higher
interest rates, we managed the Fund's weighted average maturity to remain short
for most of the annual period. Investments within the short weighted average
maturity were, when market conditions warranted, laddered, meaning holding
securities of different maturity dates. This strategy enabled us to maintain
liquidity, to take advantage of attractively priced investment opportunities
when available, and to mitigate the effects of rising rates. The Fund generally
maintained a weighted average maturity in a range of between 20 to 35 days
through the annual period, making adjustments based on then-current market
conditions, our near-term view on interest rates and anticipated and actual Fed
monetary policy statements. As of the end of the annual period, the Fund's
weighted average maturity stood at approximately 10 days, having shortened the
Fund's weighted average maturity heading into the December 2017 Fed interest
rate increase. The Fund's weighted average life/2/ on December 31, 2017 was 46
days.
--------
Past performance is no guarantee of future results.
1 Weighted average maturity is the average time it takes for securities in a
portfolio to mature, weighted in proportion to the dollar amount that is
invested in the portfolio. The weighted average maturity of a money market fund
is a measure of its price sensitivity to changes in interest rates.
2 The weighted average life of a money market fund's portfolio is an average of
the final maturities of all securities held in the portfolio, weighted by each
security's percentage of net assets. Pursuant to SEC Rule 2a-7, the maximum
allowable weighted average life of a money market fund's portfolio is 120 days.
You could lose money by investing in the Fund. Although the Fund seeks to
preserve the value of your investment at $1.00 per share, it cannot guarantee
it will do so. An investment in the Fund is not insured or guaranteed by the
Federal Deposit Insurance Corporation or any other government agency. The
Fund's sponsor has no legal obligation to provide financial support to the
Fund, and you should not expect that the sponsor will provide financial support
to the Fund at any time.
Securities listed may or may not be a part of current portfolio construction.
3
SunAmerica Money Market Funds, Inc.
EXPENSE EXAMPLE -- December 31, 2017 -- (unaudited)
Disclosure of Portfolio Expenses in Shareholder Reports
As a shareholder in the AIG Government Money Market Fund (the "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 account maintenance 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, 2017 and
held until December 31, 2017.
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, 2017" 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, 2017"
column and the "Annualized Expense Ratio" column do 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, 2017" column and the "Annualized Expense Ratio"
column do not include administrative or other fees that may apply to qualified
retirement plan accounts and accounts held through financial institutions. 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,
2017" column would have been higher and the "Ending Account Value" column 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 annual rate of return of 5% 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 Fund 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, 2017" column and the
"Annualized Expense Ratio" column do 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, 2017" column and the "Annualized Expense Ratio" column do not include
administrative fees that may apply to qualified retirement plan accounts and
accounts held through financial institutions. 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, 2017" column would have been
higher and the "Ending Account Value" column 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, 2017 -- (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 Annualized
Account Value Return at Six Months Ended Account Value Annual Return at Six Months Ended Expense
as July 1, 2017 December 31, 2017 December 31, 2017* as July 1, 2017 December 31, 2017 December 31, 2017* Ratio*
--------------- ----------------- ------------------ --------------- ----------------- ------------------ ----------
AIG
Government
Money
Market
Fund#+
Class A.. $1,000.00 $1,000.16 $5.04 $1,000.00 $1,020.16 $5.09 1.00%
Class I.. $1,000.00 $1,001.17 $4.04 $1,000.00 $1,021.17 $4.08 0.80%
--------
* Expenses are equal to the Fund's annualized expense ratio multiplied by the
average account value over the period, multiplied by 184 days then divided
by 365 days (to reflect the one-half year period). These ratios do not
reflect transaction costs, including contingent deferred sales charges,
small account fees and administrative fees, if applicable to your account.
Please refer to your Prospectus, your qualified retirement plan document
and/or materials from your financial adviser for more information.
# During the stated period, the investment adviser and distributor either
waived a portion of or all of the fees and assumed a portion of or all
expenses for the Fund. As a result, if these fees and expenses had not been
waived or assumed, the "Actual/Hypothetical Ending Account Value" would have
been lower and the "Actual/Hypothetical Expenses Paid During the Six Months
Ended December 31, 2017" and the "Annualized Expense Ratio" would have been
higher.
+ See Note 1
5
SunAmerica Money Market Funds, Inc.
STATEMENT OF ASSETS AND LIABILITIES -- December 31, 2017
AIG Government Money
Market Fund+
--------------------
ASSETS:
Investments at value* (unaffiliated)............................... $117,241,401
Repurchase agreements (cost approximates value).................... 300,000
Cash............................................................... 3,211
Receivable for:
Fund shares sold................................................. 36,861
Dividends and interest........................................... 16,061
Prepaid expenses and other assets.................................. 19,779
Due from investment adviser for expense reimbursements/fee waivers. 2,907
Due from distributor for fee waivers............................... 13,483
------------
Total assets..................................................... 117,633,703
------------
LIABILITIES:
Payable for:
Fund shares redeemed............................................. 341,966
Investment advisory and management fees.......................... 50,043
Distribution and service maintenance fees........................ 14,573
Transfer agent fees and expenses................................. 56,271
Directors' fees and expenses..................................... 966
Other accrued expenses........................................... 137,690
Dividends payable.................................................. 64
------------
Total liabilities................................................ 601,573
------------
Net Assets...................................................... $117,032,130
============
Common stock, $.001 par value (3.5 billion shares authorized)...... $ 116,880
Paid-in capital.................................................... 116,912,224
------------
117,029,104
Accumulated undistributed net investment income (loss)............. 2,957
Accumulated undistributed realized gain (loss) on investment....... 69
------------
Net assets......................................................... $117,032,130
============
Class A:
Net assets......................................................... 105,421,759
Shares outstanding................................................. 105,293,197
Net asset value and redemption price per share
(excluding any applicable contingent deferred sales charge)....... $ 1.00
============
Class I:
Net assets......................................................... 11,610,371
Shares outstanding................................................. 11,586,713
Net asset value and redemption price per share..................... $ 1.00
============
*Amortized cost of investment securities (unaffiliated)............ $117,241,401
============
--------
+ See Note 1
See Notes to Financial Statements
6
SunAmerica Money Market Funds, Inc.
STATEMENT OF OPERATIONS -- For the year ended December 31, 2017
AIG Government Money
Market Fund+
--------------------
INVESTMENT INCOME:
Interest (unaffiliated)................................................................ $1,004,136
----------
Total investment income............................................................. 1,004,136
----------
EXPENSES:
Investment advisory and management fees................................................ 572,738
Distribution and account maintenance fees
Class A.............................................................................. 153,432
Transfer agent fees and expenses
Class A.............................................................................. 329,402
Class I.............................................................................. 27,336
Registration fees
Class A.............................................................................. 37,961
Class I.............................................................................. 14,996
Custodian and accounting fees.......................................................... 12,887
Reports to shareholders................................................................ 66,525
Audit and tax fees..................................................................... 56,232
Legal fees............................................................................. 42,549
Directors' fees and expenses........................................................... 2,013
Other expenses......................................................................... 14,476
----------
Total expenses before fee waivers, expense reimbursements........................... 1,330,547
Fees waived and expenses reimbursed by investment adviser and distributor (Note 3).. (362,867)
----------
Net expenses........................................................................ 967,680
----------
Net investment income (loss)........................................................... 36,456
----------
Net realized gain (loss) on investments................................................ 69
----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS........................ $ 36,525
==========
--------
+ See Note 1
See Notes to Financial Statements
7
SunAmerica Money Market Funds, Inc.
STATEMENT OF CHANGES IN NET ASSETS
AIG Government Money Market Fund+
--------------------------------
For the year For the year
ended ended
December 31, December 31,
2017 2016
------------ -------------
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss)........................................................... $ 36,456 $ 60,331
Net realized gain (loss) on investments................................................ 69 90,805
------------ -------------
Net increase (decrease) in net assets resulting from operations.......................... $ 36,525 $ 151,136
------------ -------------
Distributions to shareholders from:
Net investment income (Class A)........................................................ (18,712) (56,354)
Net investment income (Class I)........................................................ (14,873) (890)
Net realized gains on securities (Class A)............................................. (20,522) --
Net realized gains on securities (Class I)............................................. (2,561) --
------------ -------------
Total distributions to shareholders...................................................... (56,668) (57,244)
------------ -------------
Net increase (decrease) in net assets resulting from capital share transactions (Note 5). 1,465,808 (705,749,565)
------------ -------------
Total increase (decrease) in net assets.................................................. 1,445,665 (705,655,673)
------------ -------------
NET ASSETS:
Beginning of period...................................................................... 115,586,465 821,242,138
------------ -------------
End of period*........................................................................... $117,032,130 $ 115,586,465
============ =============
*Includes accumulated undistributed net investment income (loss)......................... $ 2,957 $ --
============ =============
--------
+ See Note 1
See Notes to Financial Statements
8
SunAmerica Money Market Funds, Inc.
FINANCIAL HIGHLIGHTS
AIG GOVERNMENT MONEY MARKET FUND+
---------------------------------
Net Net Net Ratio of net
Asset Dividends Distributions Asset Assets Ratio of investment
Value Net from net from net Value end of expenses income to
beginning investment investment realized end of Total period to average average
Period Ended of period income(1) income gains period Return(2) (000's) net assets(3) net assets(3)
------------ --------- ---------- ---------- ------------- ------ --------- -------- ------------- -------------
Class A
-
12/31/13 $1.00 $0.00 $(0.00) $ -- $1.00 0.01% $736,942 0.18% 0.01%
12/31/14 1.00 0.00 (0.00) -- 1.00 0.01 720,356 0.14 0.01
12/31/15 1.00 0.00 (0.00) -- 1.00 0.01(4) 807,427 0.17 0.01
12/31/16 1.00 0.00 (0.00) -- 1.00 0.01 102,735 0.38 0.01
12/31/17 1.00 0.00 (0.00) (0.00) 1.00 0.04 105,422 0.86 0.02
Class I
-
12/31/13 $1.00 $0.00 $(0.00) $ -- $1.00 0.01% $ 13,360 0.18% 0.01%
12/31/14 1.00 0.00 (0.00) -- 1.00 0.01 15,847 0.14 0.01
12/31/15 1.00 0.00 (0.00) -- 1.00 0.01(4) 13,815 0.16 0.01
12/31/16 1.00 0.00 (0.00) -- 1.00 0.01 12,851 0.39 0.01
12/31/17 1.00 0.00 (0.00) (0.00) 1.00 0.15 11,610 0.75 0.12
--------
(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):
12/31/13 12/31/14 12/31/15 12/31/16 12/31/17
-------- -------- -------- -------- --------
Class A............. 0.75% 0.79% 0.78% 0.57% 0.32%
Class I............. 0.68 0.69 0.71% 0.56% 0.27%
(4) The Fund's performance figure was increased by less than 0.01% from the
effect of payments by an affiliate
+ See Note 1
See Notes to Financial Statements
9
AIG Government Money Market Fund+
PORTFOLIO PROFILE -- December 31, 2017 -- (unaudited)
Industry Allocation*
U.S. Government Agencies.......... 93.7%
U.S. Government Treasuries........ 6.4
Repurchase Agreements............. 0.3
-----
100.4%
=====
Weighted average days to maturity. 9.9
Credit Quality Allocation@#
P-1 100.0%
=====
--------
* Calculated as a percentage of net assets.
@ Source: Moody's.
# Calculated as a percentage of total debt issues.
+ See Note 1.
10
AIG Government Money Market Fund+
PORTFOLIO OF INVESTMENTS -- December 31, 2017
Principal Value
Security Description Amount (Note 2)
SHORT-TERM INVESTMENT SECURITIES -- 100.1%
U.S. Government Agencies -- 93.7%
Federal Farm Credit Bank FRS
1.28% (1 ML-0.15%)
due 10/11/2018................... $ 7,000,000 $ 6,999,857
1.46% (3 ML-0.03%)
due 03/02/2018.................. 255,000 255,118
Federal Home Loan Bank
1.05% due 01/02/2018............. 24,000,000 23,999,300
1.07% due 01/03/2018............ 10,000,000 9,999,406
1.08% due 01/04/2018............ 5,300,000 5,299,523
1.08% due 01/08/2018............ 4,000,000 3,999,160
1.17% due 01/17/2018............ 4,000,000 3,997,920
1.21% due 01/03/2018............ 1,000,000 999,933
1.24% due 01/04/2018............ 5,000,000 4,999,483
1.25% due 01/08/2018............ 5,000,000 4,998,785
1.27% due 01/30/2018............ 2,000,000 1,997,954
Federal Home Loan Bank FRS
1.30% (1 ML-0.19%)
due 02/16/2018................... 9,000,000 9,000,000
1.37% (1 ML-0.13%)
due 08/20/2018.................. 3,000,000 3,000,000
1.37% (1 ML-0.18%)
due 02/23/2018.................. 7,000,000 7,000,000
1.39% (1 ML-0.12%)
due 11/21/2018.................. 4,000,000 4,000,000
Federal Home Loan Mtg. Corp.
1.08% due 01/09/2018............. 6,000,000 5,998,560
Federal National Mtg. Assoc.
1.15% due 01/08/2018............. 5,200,000 5,198,837
1.18% due 01/03/2018............ 7,000,000 6,999,541
Federal National Mtg. Assoc. FRS
1.59% (3 ML-0.05%)
due 03/21/2018................... 1,000,000 1,000,414
------------
Total U.S. Government Agencies
(amortized cost $109,743,791)... 109,743,791
------------
Principal Value
Security Description Amount (Note 2)
------------------------------------------------------------------------
U.S. Government Treasuries -- 6.4%
United States Treasury Bills
0.99% due 01/11/2018......................... $2,000,000 $ 1,999,451
1.09% due 01/04/2018........................ 3,500,000 3,499,682
1.14% due 01/25/2018........................ 2,000,000 1,998,477
------------
Total U.S. Government Treasuries
(amortized cost $7,497,610)................. 7,497,610
------------
Total Short-Term Investment Securities -- 100.1%
(amortized cost $117,241,401)............... 117,241,401
------------
REPURCHASE AGREEMENTS -- 0.3%
Agreement with Fixed Income Clearing Corp.,
bearing interest at 0.20%, dated 12/29/2017,
to be repurchased 01/02/2018 in the amount
of $300,007, collateralized by $300,000 of
United States Treasury Notes, bearing
interest at 0.13% due 04/15/2021 and having
an approximate value of $310,424.
(cost $300,000).............................. 300,000 300,000
------------
TOTAL INVESTMENTS --
(amortized cost $117,541,401)(1)............ 100.4% 117,541,401
Liabilities in excess of other assets......... (0.4) (509,271)
---------- ------------
NET ASSETS.................................... 100.0% $117,032,130
========== ============
--------
+ See Note 1
(1)At December 31, 2017, the cost of securities for federal income tax purposes
was the same for book purposes.
FRS -- Floating Rate Security
The rates shown on FRS are the current interest rates at December 31, 2017 and
unless noted otherwise, the dates shown are the original maturity dates.
Index Legend
1 ML -- 1 Month USD LIBOR
3 ML -- 3 Month USD LIBOR
The following is a summary of the inputs used to value the Fund's net assets as
of December 31, 2017 (see Note 2):
Level 1 -- Unadjusted Level 2 -- Other Level 3 -- Significant
Quoted Prices Observable Inputs Unobservable Inputs Total
--------------------- ----------------- ---------------------- ------------
Assets:
Investment at Value*
Short-Term Investment Securities. $-- $117,241,401 $-- $117,241,401
Repurchase Agreements............ -- 300,000 -- 300,000
--- ------------ --- ------------
Total Investments at Value....... $-- $117,541,401 $-- $117,541,401
=== ============ === ============
--------
* For a detailed presentation of investments, please refer to the Portfolio of
Investments.
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 -- December 31, 2017
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 -- AIG Government Money
Market Fund (the "Fund"). The Fund is advised by SunAmerica Asset
Management, LLC ("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. It does this by
investing at least 99.5% of its total assets in cash, U.S. government
securities, and/or repurchase agreements that are collateralized by U.S.
government securities.
On November 18, 2016, the Board of Directors approved a change in the name
of the SunAmerica Government Money Market Fund to the AIG Government Money
Market Fund effective February 28, 2017. SunAmerica Asset Management, LLC
continues to serve as investment adviser of the Fund and retains its current
name. In addition, there was no change in the Fund's investment goals or
strategies, portfolio manager or ticker symbols in connection with the
rebranding.
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 ("GAAP") requires management to make
estimates and assumptions that affect the reported amounts and disclosures
in the financial statements. Actual results could differ from those
estimates and those differences could be significant. The following is a
summary of significant accounting policies consistently followed by the Fund
in the preparation of its financial statements:
Security Valuation: In accordance with the authoritative guidance on fair
value measurements and disclosures under 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
12
SunAmerica Money Market Funds, Inc.
NOTES TO FINANCIAL STATEMENTS -- December 31, 2017 -- (continued)
the principal or most advantageous market. GAAP establishes 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 about the
assumptions market participants would use in pricing the asset or liability
developed based on the best information available in the circumstances. The
three-tiers are as follows:
Level 1 -- Unadjusted quoted prices in active markets for identical
securities
Level 2 -- Other significant observable inputs (including quoted prices for
similar securities, interest rates, prepayment speeds, credit risk,
referenced indices, quoted prices in inactive markets, adjusted quoted
prices in active markets, adjusted quoted prices on foreign equity
securities that were adjusted in accordance with pricing procedures approved
by the Board of Directors (the "Board"), etc.)
Level 3 -- Significant unobservable inputs (includes inputs that reflect the
Fund's own assumptions about the assumptions market participants would use
in pricing the security, developed based on the best information available
under the circumstances)
Changes in valuation techniques may result in transfers in or out of an
investment's assigned Level within the hierarchy. The methodology used for
valuing investments is 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 Fund's assets and liabilities classified in the fair
value hierarchy as of December 31, 2017, is 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
policies 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.
13
SunAmerica Money Market Funds, Inc.
NOTES TO FINANCIAL STATEMENTS -- December 31, 2017 -- (continued)
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 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 December 31, 2017, the repurchase agreements held by the Fund
are subject to master netting provisions. See the Portfolio of Investments
and the Notes to Financial Statements for more information about the Fund's
holdings in repurchase agreements.
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 ("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.
Securities Transactions, Investment Income, Expenses, Dividends and
Distributions to Shareholders: Security transactions are recorded on a trade
date 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 current capital share 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 GAAP.
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.
14
SunAmerica Money Market Funds, Inc.
NOTES TO FINANCIAL STATEMENTS -- December 31, 2017 -- (continued)
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
2014 - 2016 or expected to be taken in the Fund's 2017 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
2014.
New Accounting Pronouncement: In October 2016, the SEC adopted amendments to
rules under the 1940 Act ("final rules") intended to modernize the reporting
and disclosure of information by registered investment companies. The final
rules amend Regulation S-X and require funds to provide standardized,
enhanced derivative disclosure in fund financial statements in a format
designed for individual investors. The amendments to Regulation S-X also
update the disclosures for other investments and investments in and advances
to affiliates and amend the rules regarding the general form and content of
fund financial statements. The compliance date for the amendments to
Regulation S-X was August 1, 2017. All required changes have been made in
accordance with Regulation S-X.
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 waived fee and/or
reimbursed expense calculations, annual Fund operating expenses shall not
include extraordinary expenses (i.e., expenses that are unusual in nature
and/or infrequent in occurrence, such as litigation), or acquired fund fees
and expenses, brokerage commissions and other transactional expenses
relating to the purchase and sale of portfolio securities, interest, taxes
and governmental fees, and other expenses not incurred in the ordinary
course of the Fund's business. 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, 2017, pursuant to the contractual expense limitations,
SunAmerica waived fees and/or reimbursed expenses of $30,840 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, 2017,
SunAmerica voluntarily waived fees and/or reimbursed expenses of $176,186
and $2,409 for Class A and Class I, respectively.
The Fund has entered into a Distribution Agreement with AIG Capital
Services, Inc. ("ACS" 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.
15
SunAmerica Money Market Funds, Inc.
NOTES TO FINANCIAL STATEMENTS -- December 31, 2017 -- (continued)
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 its customers. Accordingly, ACS
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, ACS has agreed to
waive up to 0.15% of the fees it receives under the Plan. 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, 2017, ACS
voluntarily waived $153,432 in account maintenance fees for Class A shares.
ACS receives the proceeds of contingent deferred sales charges paid by
investors in connection with certain redemptions of the Fund's Class A
shares. ACS has advised the Fund that for the year ended December 31, 2017,
the proceeds received from redemptions are as follows:
Class A........................................... $237
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, 2017, the Fund incurred the following expenses which are
included in transfer agent fees and expenses payable line in the Statement
of Assets and Liabilities and in transfer agent fees and expenses in the
Statement of Operations to compensate SAFS pursuant to the terms of the
Service Agreement:
Payable at
Expenses December 31, 2017
-------- -----------------
Class A........................................... $220,379 $19,777
Class I........................................... 26,969 2,243
Note 4. Federal Income Taxes
The following details the tax basis of distributions as well as the
components of distributable earnings. The tax basis components of
distributable earnings differ from the amounts reflected in the Statement of
Assets and Liabilities by temporary book/tax differences primarily arising
from dividends payable.
Distributable Earnings Tax Distributions Tax Distributions
----------------------------------------- ------------------------------------- -------------------------------------
For the year ended December 31, 2017 For the year ended December 31, 2017 For the year ended December 31, 2016
----------------------------------------- ------------------------------------- -------------------------------------
Long-term Gains/ Unrealized Long-Term Long-Term
Ordinary Capital and Other Appreciation Ordinary Capital Ordinary Capital
Income Losses (Depreciation) Income Gains Income Gains
-------- ----------------- -------------- -------- --------- -------- ---------
$3,030 $ -- $(5) $56,668 $ -- $57,244 $ --
For the year ended December 31, 2017, reclassifications were made to
decrease accumulated net realized gain(loss) by $86 with an offsetting
adjustments to undistributed net investment income of $86. The
reclassifications arising from book/tax differences were due primarily to
dividend redesignations.
On December 22, 2017, the Tax Cuts and Jobs Act (the "Act") was signed into
law. Certain provisions of the Act were effective upon enactment with the
remainder becoming effective for tax years beginning after December 31,
2017. Management is currently evaluating the impact, if any, on the
financial statements and the accompanying notes to financial statements.
16
SunAmerica Money Market Funds, Inc.
NOTES TO FINANCIAL STATEMENTS -- December 31, 2017 -- (continued)
Note 5. Capital Share Transactions
Transactions in each class of shares of the Fund (at $1.00 per share) were
as follows:
Class A Class I
--------------------------- --------------------------
For the For the For the For the
year ended year ended year ended year ended
December 31, December 31, December 31, December 31,
2017 2016 2017 2016
------------ ------------- ------------ ------------
Shares sold............. $ 49,647,887 $ 215,584,499 $ 10,510,780 $ 10,430,504
Reinvested dividends.... 38,824 55,878 17,432 1,219
Shares redeemed......... (46,982,542) (920,421,483) (11,766,573) (11,400,182)
------------ ------------- ------------ ------------
Net increase (decrease). $ 2,704,169 $(704,781,106) $ (1,238,361) $ (968,459)
============ ============= ============ ============
Note 6. 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, 2017, the Fund did
not participate in this program.
17
SunAmerica Money Market Funds, Inc.
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Directors of SunAmerica Money Market Funds, Inc. and
Shareholders of AIG Government Money Market Fund
Opinion on the Financial Statements
We have audited the accompanying statement of assets and liabilities, including
the portfolio of investments, of AIG Government Money Market Fund (formerly
SunAmerica Government Money Market Fund) (the "Fund") as of December 31, 2017,
the related statement of operations for the year ended December 31, 2017, the
statement of changes in net assets for each of the two years in the period
ended December 31, 2017, including the related notes, and the financial
highlights for each of the five years in the period ended December 31, 2017
(collectively referred to as the "financial statements"). In our opinion, the
financial statements present fairly, in all material respects, the financial
position of the Fund as of December 31, 2017, 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 ended December 31, 2017 and the financial highlights for each of the
five years in the period ended December 31, 2017 in conformity with accounting
principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Fund's management. Our
responsibility is to express an opinion on the Fund's financial statements
based on our audits. We are a public accounting firm registered with the Public
Company Accounting Oversight Board (United States) ("PCAOB") and are required
to be independent with respect to the Fund in accordance with the U.S. federal
securities laws and the applicable rules and regulations of the Securities and
Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the
standards of the PCAOB. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial statements are
free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material
misstatement of the financial statements, whether due to error or fraud, and
performing procedures that respond to those risks. Such procedures included
examining, on a test basis, evidence regarding the amounts and disclosures in
the financial statements. Our audits also included evaluating the accounting
principles used and significant estimates made by management, as well as
evaluating the overall presentation of the financial statements. Our procedures
included confirmation of securities owned as of December 31, 2017 by
correspondence with the custodian and brokers; when replies were not received
from brokers, we performed other auditing procedures. We believe that our
audits provide a reasonable basis for our opinion.
/s/ PricewaterhouseCoopers LLP
Houston, Texas
February 27, 2018
We have served as the auditor of one or more investment companies in the AIG
Funds family of funds since 1984.
18
SunAmerica Money Market Funds, Inc.
DIRECTORS AND OFFICERS INFORMATION -- December 31, 2017 -- (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. Unless otherwise noted, the address of each Director
and executive officer is Harborside 5, 185 Hudson Street, Suite 3300, Jersey
City, NJ 07311.
Number of
Position Term of Portfolios in
Held With Office and Fund Complex
Name, Address SunAmerica Length of Principal Occupations Overseen by Other Directorships
and Age* Complex Time Served(4) During Past 5 Years Trustee(1) Held by Trustee(2)
-------------------- ---------- -------------- --------------------------- ------------- --------------------------
Disinterested Trustees
Dr. Judith L. Craven Trustee 2000-present Retired. 77 Director, Sysco Corp.
Age: 72 (1996 to 2017); Director,
Luby's, Inc. (1998 to
present).
William F. Devin Trustee 2001-present Retired. 77 None
Age: 79
Richard W. Grant Trustee 2011-present Retired. 28 None
Age: 72 Chairman
of the
Board
Stephen J. Gutman Trustee 1984-present Senior Vice President 28 None
Age: 74 and Associate Broker,
Corcoran Group (real
estate) (2002 to present);
President, SJG Marketing
Inc. (2009 to present).
Interested Trustees
Peter A. Harbeck(3) Trustee 1994-present President (1995 to 152 None
Age: 63 present), CEO and
Director, SunAmerica.
(1992 to present);
Director, AIG Capital
Services, Inc. ("ACS")
(1993 to present);
Chairman, President and
CEO, Advisor Group, Inc.
(2004 to 2016).
19
SunAmerica Money Market Funds, Inc.
DIRECTORS AND OFFICERS INFORMATION -- December 31, 2017 -- (unaudited)
(continued)
Number of
Position Term of Portfolios in
Held With Office and Fund Complex
Name, Address SunAmerica Length of Principal Occupations Overseen by Other Directorships
and Age* Complex Time Served(4) During Past 5 Years Trustee(1) Held by Trustee(2)
-------------------- ------------ -------------- ------------------------- ------------- -------------------
Officers
John T. Genoy President 2007-present Chief Financial Officer, N/A N/A
Age: 49 SunAmerica (2002 to
present); Senior Vice
President, SunAmerica
(2003 to present); Chief
Operating Officer,
SunAmerica (2006
to present).
Gregory N. Bressler Secretary 2005-present Senior Vice President N/A N/A
Age: 51 and General Counsel,
SunAmerica (2005 to
present).
Kathleen D. Fuentes Chief Legal 2013-present Vice President and N/A N/A
Age: 48 Officer and Deputy General Counsel,
Assistant SunAmerica (2006 to
Secretary present).
James Nichols Vice 2006-present Director, President and N/A N/A
Age: 51 President CEO, ACS (2006 to
present); Senior Vice
President, SunAmerica
(2002 to present).
Kara Murphy Vice 2014-present Director of Research, N/A N/A
Age: 45 President SunAmerica (2007 to
2013); Chief Investment
Officer, SunAmerica
(2013 to present).
Gregory R. Kingston Treasurer 2014-present Vice President, N/A N/A
Age: 51 SunAmerica (2001 to
Address: present); Head of Mutual
2919 Allen Parkway Fund Administration,
Houston, Texas 77019 SunAmerica (2014 to
present).
Shawn Parry Vice 2014-present Vice President (2014 to N/A N/A
Age: 45 President present); Assistant Vice
Address: and President, SunAmerica
2919 Allen Parkway Assistant (2005 to 2014).
Houston, Texas 77019 Treasurer
Donna McManus Vice 2014-present Vice President, N/A N/A
Age: 56 President SunAmerica, (2014 to
and present); Managing
Assistant Director, BNY Mellon
Treasurer (2009 to 2014).
20
SunAmerica Money Market Funds, Inc.
DIRECTORS AND OFFICERS INFORMATION -- December 31, 2017 -- (unaudited)
(continued)
Number of
Position Term of Portfolios in
Held With Office and Fund Complex
Name, Address SunAmerica Length of Principal Occupations Overseen by Other Directorships
and Age* Complex Time Served(4) During Past 5 Years Trustee(1) Held by Trustee(2)
-------------------- ----------- -------------- -------------------------- ------------- -------------------
Christopher C. Joe Chief 2017-present Chief Compliance Officer, N/A N/A
Age: 47 Compliance AIG Funds, Anchor
Address: Officer Series Trust, Seasons
2919 Allen Parkway Series Trust, SunAmerica
Houston, Texas 77019 Series Trust, VALIC
Company I and VALIC
Company II (2017 to
present); Chief
Compliance Officer,
VALIC Retirement
Services Company (2017
to present); Chief
Compliance Officer,
Invesco PowerShares
(2012 to 2017); Chief
Compliance Officer,
Invesco Investment
Advisers, LLC (2010 to
2013); U.S. Compliance
Director, Invesco Ltd.
(2006 to 2014); Deputy
Chief Compliance Officer,
Invesco Advisers, LLC
(2014 to 2015).
Matthew J. Hackethal Anti-Money 2006-present Acting Chief Compliance N/A N/A
Age: 46 Laundering Officer, AIG Funds,
Compliance Anchor Series Trust,
Officer Seasons Series Trust,
SunAmerica Series Trust,
VALIC Company I and
VALIC Company II (2016
to 2017); Chief
Compliance Officer,
SunAmerica (2006 to
Present); AML
Compliance Officer, AIG
Funds, Anchor Series
Trust, Seasons Series
Trust, SunAmerica Series
Trust, VALIC Company I
and VALIC Company II
(2006 to Present) and
Vice President,
SunAmerica (2011 to
Present).
21
SunAmerica Money Market Funds, Inc.
DIRECTORS AND OFFICERS INFORMATION -- December 31, 2017 -- (unaudited)
(continued)
--------
* The business address for each Trustee is the Harborside 5, 185 Hudson
Street, Suite 3300, Jersey City, NJ 07311.
(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 Specialty Series (7 funds),
SunAmerica Equity Funds (2 funds), SunAmerica Income Funds (3 funds),
SunAmerica Series, Inc. (6 funds), Anchor Series Trust (8 portfolios),
SunAmerica Senior Floating Rate Fund, Inc. (1 fund), SunAmerica Series
Trust (55 portfolios), VALIC Company I (34 portfolios), VALIC Company II
(15 funds), Seasons Series Trust (20 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.
(3) Interested Trustee, as defined within the 1940 Act, because he is an
officer and a director of the Adviser and a director of the principal
underwriter of the Fund.
(4) Trustees serve until their successors are duly elected and qualified. 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 Trustees is contained in the Statement of
Additional Information which is available, without charge, by calling (800)
858-8850.
22
SunAmerica Money Market Funds, Inc.
SHAREHOLDER TAX INFORMATION -- (unaudited)
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, 2017. The information necessary to complete your income
tax returns is included with your Form 1099-DIV, which will be mailed to you in
early 2018.
23
[LOGO]
AIG Funds
Harborside 5
185 Hudson Street, Suite 3300
Jersey City, NJ 07311
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 Custodian holdings with the U.S.
Officers State Street Bank and Securities and Exchange
John T. Genoy, President Trust Company Commission for its first
and Chief Executive One Lincoln St. and third fiscal quarters
Officer Boston, MA 02111 on Form N-Q. The Fund's
Gregory R. Kingston, VOTING PROXIES ON FUND Forms N-Q are available
Treasurer PORTFOLIO SECURITIES on the U.S. Securities
Kara Murphy, Vice A description of the and Exchange Commission's
President policies and procedures website at
James Nichols, Vice that the Funds use to http://www.sec.gov. You
President determine how to vote can also review and
Gregory N. Bressler, proxies relating to obtain copies of the
Secretary securities held in the Forms N-Q at the U.S.
Kathleen Fuentes, Chief Funds' portfolios which Securities and Exchange
Legal Officer and is available in the Commission's Public
Assistant Secretary Funds' Statement of Reference Room in
Donna McManus, Vice Additional Information Washington, DC
President and may be obtained without (information on the
Assistant Treasurer charge upon request, by operation of the Public
Shawn Parry, Vice calling (800) 858-8850. Reference Room may be
President and This information is also obtained by calling
Assistant Treasurer available from the EDGAR 1-800-SEC-0330).
Matthew J. Hackethal, database on the U.S. PROXY VOTING RECORD ON
Acting Chief Securities and Exchange FUND PORTFOLIO SECURITIES
Compliance Officer, Commission's website at Information regarding how
Anti-Money Laundering http://www.sec.gov. the Funds voted proxies
Compliance Officer DELIVERY OF SHAREHOLDER relating to securities
Investment Adviser DOCUMENTS held in the Fund's
SunAmerica Asset The Funds have adopted a portfolio during the most
Management, LLC policy that allows them recent twelve month
Harborside 5 to send only one copy of period ended June 30 is
185 Hudson Street, Suite a Fund's prospectus, available, once filed
3300 proxy material, annual with the U.S. Securities
Jersey City, NJ 07311 report and semi-annual and Exchange Commission,
Distributor report (the "shareholder without charge, upon
AIG Capital Services, documents") to request, by calling (800)
Inc. shareholders with 858-8850 or on the U.S.
Harborside 5 multiple accounts Securities and Exchange
185 Hudson Street, Suite residing at the same Commission's website at
3300 "household." This http://www.sec.gov.
Jersey City, NJ 07311 practice is called This report is submitted
Shareholder Servicing householding and reduces solely for the general
Agent Fund expenses, which information of
AIG Fund Services, Inc. benefits you and other shareholders of the Fund.
Harborside 5 shareholders. Unless the Distribution of this
185 Hudson Street, Suite Funds receive report to persons other
3300 instructions to the than shareholders of the
Jersey City, NJ 07311 contrary, you will only Fund is authorized only
receive one copy of the in connection with a
shareholder documents. currently effective
The Funds will continue prospectus, setting forth
to household the details of the Fund,
shareholder documents which must precede or
indefinitely, until we accompany this report.
are instructed otherwise.
If you do not wish to
participate 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 AIG
Funds c/o BFDS, P.O. Box
219186, Kansas City MO,
64121-9186. We will
resume individual
mailings for your
ac-count 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.aig.com/funds
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.aig.com/funds 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.
AIG Funds are advised by SunAmerica Asset Management, LLC (SAAMCo) and
distributed by AIG Capital Services, Inc. (ACS), Member FINRA. Harborside 5,
185 Hudson Street, Suite 3300, Jersey City, NJ 07311, 800-858-8850. SAAMCo and
ACS are members of American International Group, Inc. (AIG).
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
AIG Funds Sales Desk at 800-858-8850, ext. 6003, or at aig.com/funds. Read the
prospectus carefully before investing.
MMANN - 12/17
[LOGO]
aig.com/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 (the "Code"). During the fiscal year ended December 31, 2017,
there were no reportable waivers or implicit waivers to a provision of
the Code of Ethics that applies to the registrant's Principal
Executive and Principal Accounting Officers (the "Covered Officers").
During the fiscal year ended December 31, 2017, however, there were
reportable amendments to the Code that apply to the Covered Officers,
and that relate to one or more of the items set forth in paragraph (b)
of Item 2 of Form N-CSR. In particular, the Code has been amended to
provide an enhanced description of the Covered Officers'
responsibilities, which include a responsibility to observe the
ethical principles contained in the Code.
Item 3. Audit Committee Financial Expert.
As of January 16, 2018, the registrant's Board of Directors has
determined that Eileen A. Kamerick, a Director of the registrant,
qualifies as an audit committee financial expert, as defined in Item
3(b) of Form N-CSR. Ms. Kamerick 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 accountant were as follows:
2016 2017
(a) Audit Fees................................. $45,443 $45,985
(b) Audit-Related Fees......................... $ 0 $ 0
(c) Tax Fees................................... $11,795 $12,139
(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:
2016 2017
(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 2016 and 2017 were $11,795 and $12,139 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 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 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. Disclosure of Securities Lending Activities for Closed-End Management
Investment companies.
Not Applicable.
Item 13. Exhibits.
(a) (1) Code of Ethics applicable to its Principal Executive and Principle
Accounting Officers pursuant to Section 406 of the Sarbanes-Oxley Act
of 2002 attached hereto as Exhibit 99.406. Code of Ethics.
(2) Certifications pursuant to Rule 30a-2(a) under the Investment
Company Act of 1940 (17 CFR 270.30a-2(a)) attached hereto as Exhibit
99.CERT.
(3) Not applicable.
(b) Certification pursuant to Rule 30a-2(b) under the Investment Company
Act of 1940 (17 CFR 270.30a-2(a)) and Section 906 of the
Sarbanes-Oxley Act of 2002 attached hereto as Exhibit 99.906.CERT.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to
be signed on its behalf by the undersigned, thereunto duly authorized.
SunAmerica Money Market Funds, Inc.
By: /s/ John T. Genoy
--------------------------
John T. Genoy
President
Date: March 9, 2018
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 9, 2018
By: /s/ Gregory R. Kingston
--------------------------
Gregory R. Kingston
Treasurer
Date: March 9, 2018