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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM N-CSR
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CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-3807
SunAmerica Money Market Funds, Inc.
----------------------------------------------------
(Exact name of registrant as specified in charter)
Harborside 5, 185 Hudson Street, Jersey City, NJ 07311
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(Address of principal executive offices) (Zip code)
John T. Genoy
Senior Vice President
SunAmerica Asset Management, LLC
Harborside 5, 185 Hudson Street,
Jersey City, NJ 07311
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(Name and address of agent for service)
Registrant's telephone number, including area code: (201) 324-6414
Date of fiscal year end: December 31
Date of reporting period: December 31, 2018
================================================================================
Item 1. Reports to Stockholders
ANNUAL REPORT 2018
AIG
Government Money Market Fund
[PHOTO]
Beginning on January 1, 2021, as permitted by regulations adopted by the
Securities and Exchange Commission, paper copies of each Fund's shareholder
reports will no longer be sent by mail, unless you specifically request paper
copies of the reports from the Fund or your financial intermediary. Instead,
the reports will be made available on a website, and you will be notified by
mail each time a report is posted and provided with a website link to access
the report.
If you already elected to receive shareholder reports electronically, you will
not be affected by this change and you need not take any action. At any time,
you may elect to receive reports and other communications from a Fund
electronically by calling 800-858-8850 or contacting your financial
intermediary directly.
You may elect to receive all future reports in paper free of charge. If your
account is held directly at the Fund, you can inform the Fund that you wish to
receive paper copies of reports by calling 800-858-8850. If your account is
held through a financial intermediary, please contact the financial
intermediary to make this election. Your election to receive paper will apply
to all AIG Funds in which you are invested and may apply to all funds held with
your financial intermediary.
[LOGO]
aig.com/funds
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................................................ 22
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, 2018.
The annual period ended December 31, 2018 was one wherein money market yields
remained low but moved noticeably higher as the Federal Reserve (the "Fed")
proceeded to raise the targeted federal funds rate four more times -- in March,
June, September and December. Each rate increase was 25 basis points,/*/
bringing the targeted federal funds rate to a range of 2.25% - 2.50% by the end
of December 2018. Through most of the year, the Fed had upgraded its economic
growth and employment projections and shifted inflation expectations higher,
but by the end of the year had set expectations for a slower pace of tightening
in 2019. Also affecting the money markets during the annual period was the
continuation of the Fed's balance sheet normalization, which began in October
2017.+
Elsewhere, global monetary policies diverged. The European Central Bank ended
its quantitative easing program as anticipated in December 2018 but pledged to
keep policy rates unchanged at least through the summer of 2019. The People's
Bank of China unexpectedly cut its reserve requirement ratio for most banks to
free up lending for small businesses and subsequently announced a significant
change in its reserve requirement for banks to help stabilize its currency. The
Bank of Canada raised its interest rates three times. The Bank of England
increased its interest rates once but then left its rates unchanged as the U.K.
negotiated terms of its exit from the European Union. The Bank of Japan amended
its yield-curve targeting policy to allow longer-term bond yields to fluctuate
more freely around its 0% target. Although Sweden's central bank embarked on a
tightening cycle for the first time since 2011, its policy rates remained below
zero.
The U.S. Treasury money market yield curve, or spectrum of maturities,
flattened during the annual period overall, meaning yields on shorter-term
maturities rose more than those on longer-term maturities. 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,
2018.
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 1/100th of a percentage point.
+ Balance sheet normalization refers to the steps the Federal Reserve is
taking to reverse quantitative easing and remove the substantial monetary
accommodation it has provided to the U.S. economy since the financial crisis
began in 2007.
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 (FDIC) 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 0.77% for the annual
period ended December 31, 2018.
As money market yields were low but rising throughout the annual period, the
Fund continued to seek current income to the extent consistent with liquidity
and stability of principal. Part of the Fund's performance was affected by the
widening of rates throughout the annual period. LIBOR/1/ rates, seen as
generally representative of short-term rates, increased significantly during
the first half of 2018 to keep pace with the Fed's rate increases and the
onslaught of Treasury bill supply. This caused short-term rates to widen
throughout the annual period, leading to an erosion in asset value. Different
government-sponsored enterprise/2/ banks also had widening rates throughout the
annual period due to increased funding needs, interest rate hikes, LIBOR rate
moves and increased Treasury bill supply.
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. During the annual period, the Fund had its greatest allocation to
U.S. government agency securities, with a focus on those securities issued by
government-sponsored enterprises, including Federal Home Loan Bank, Fannie Mae
and Freddie Mac, whether discount notes, bullets/3/ or floating rate
securities, as we believed these securities offered the best risk/return
opportunities versus U.S. Treasury securities. The positions in these agency
securities contributed positively to the Fund's annual performance overall. A
few of the agency holdings, namely those issued by the Federal Farm Credit
Bank, detracted from performance. The Fund also held positions in short-term
U.S. Treasury bills and notes and what are known as STRIPS./4/ As U.S.Treasury
securities generally outperformed government agency securities during the
annual period, the Fund's underweighted exposure to U.S. Treasury securities
dampened relative results.
We were able to navigate interest rate risk by adjusting the Fund's weighted
average maturity (WAM)/5/ as market conditions shifted. In anticipation of
higher interest rates, we managed the Fund's WAM to remain short for most of
the annual period. Early in 2018, we implemented a barbell strategy, with
heavier weightings at the short-term and long-term ends of the money market
yield curve, moderately extending the Fund's WAM in an effort to pick up yield.
Then, toward the middle of the annual period, as the money market yield curve
continued to flatten, we began laddering the Fund's positions, meaning holding
securities of different maturity dates rather evenly spaced across the money
market yield curve. This strategy, which shortened the Fund's WAM, enabled us
to maintain liquidity, take advantage of attractively priced investment
opportunities when available, and be in a more advantageous position for the
rising interest rates. The Fund generally maintained a WAM in the range of
25 - 40 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 WAM stood at approximately 30 days. The Fund's
weighted average life/6/ on December 31, 2018 was just short of 33 days.
--------
Past performance is no guarantee of future results.
/1/ London Inter-bank Offered Rate (LIBOR) is a benchmark interest rate widely
used as reference rates in bank, corporate and government lending agreements.
/2/ A government-sponsored enterprise (GSE) consists of privately held
corporations with public purposes created by the U.S. Congress to reduce the
cost of credit for certain borrowing sectors of the economy.
/3/ A bulleted strategy is based on the acquisition of a number of different
securities that all mature around the same target date. One of the main
benefits of the bulleted strategy is that it allows the investor to minimize
the impact of interest rate fluctuations.
/4/ Treasury STRIPS are fixed-income securities sold at a significant discount
to face value and offer no interest payments because they mature at par. STRIPS
is an acronym for Separate Trading of Registered Interest and Principal of
Securities.
/5/ Weighted average maturity (WAM) 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.
/6/ The weighted average life of a money market fund is a measure of a money
market fund's price sensitivity to changes in liquidity and/or credit risk.
Under amendments to SEC Rule 2a-7 that became effective in May 2010, the
maximum allowable weighted average life of a money market fund 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 (FDIC) 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, 2018 -- (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, 2018 and
held until December 31, 2018.
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, 2018" 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, 2018"
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, 2018" 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,
2018" 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, 2018" 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, 2018" 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, 2018" 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, 2018 -- (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, 2018 December 31, 2018 December 31, 2018* as July 1, 2018 December 31, 2018 December 31, 2018* Ratio*
--------------- ----------------- ------------------ --------------- ----------------- ------------------ ----------
AIG
Government
Money
Market
Fund#
Class A.. $1,000.00 $1,005.04 $5.26 $1,000.00 $1,019.96 $5.30 1.04%
Class I.. $1,000.00 $1,006.32 $4.05 $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, 2018" and the "Annualized Expense Ratio" would have been
higher.
5
SunAmerica Money Market Funds, Inc.
STATEMENT OF ASSETS AND LIABILITIES -- December 31, 2018
AIG Government Money
Market Fund
--------------------
ASSETS:
Investments at value* (unaffiliated)............................... $154,428,494
Repurchase agreements (cost approximates value).................... 259,000
Cash............................................................... 567
Receivable for:
Fund shares sold................................................. 915,852
Dividends and interest........................................... 88,698
Prepaid expenses and other assets.................................. 21,897
Due from investment adviser for expense reimbursements/fee waivers. 3,403
Due from distributor for fee waivers............................... 15,878
------------
Total assets..................................................... 155,733,789
------------
LIABILITIES:
Payable for:
Fund shares redeemed............................................. 528,494
Investment advisory and management fees.......................... 58,059
Distribution and service maintenance fees........................ 15,878
Transfer agent fees and expenses................................. 79,715
Directors' fees and expenses..................................... 473
Other accrued expenses........................................... 117,124
Dividends payable.................................................. 1,691
------------
Total liabilities................................................ 801,434
------------
Net Assets...................................................... $154,932,355
============
Common stock, $.001 par value (3.5 billion shares authorized)...... $ 154,775
Paid-in capital.................................................... 154,769,912
------------
154,924,687
Total distributable earnings (loss)................................ 7,668
------------
Net assets...................................................... $154,932,355
============
Class A:
Net assets......................................................... 142,843,764
Shares outstanding................................................. 142,709,953
Net asset value and redemption price per share
(excluding any applicable contingent deferred sales charge)....... $ 1.00
============
Class I:
Net assets......................................................... 12,088,591
Shares outstanding................................................. 12,065,540
Net asset value and redemption price per share..................... $ 1.00
============
*Amortized cost of investment securities (unaffiliated)............ $154,428,494
============
See Notes to Financial Statements
6
SunAmerica Money Market Funds, Inc.
STATEMENT OF OPERATIONS -- For the year ended December 31, 2018
AIG Government Money
Market Fund
--------------------
INVESTMENT INCOME:
Interest (unaffiliated)................................................................ $2,161,051
----------
Total investment income............................................................. 2,161,051
----------
EXPENSES:
Investment advisory and management fees................................................ 594,575
Distribution and account maintenance fees
Class A.............................................................................. 160,201
Transfer agent fees and expenses
Class A.............................................................................. 329,667
Class I.............................................................................. 28,517
Registration fees
Class A.............................................................................. 38,998
Class I.............................................................................. 14,860
Custodian and accounting fees.......................................................... 26,655
Reports to shareholders................................................................ 94,958
Audit and tax fees..................................................................... 57,016
Legal fees............................................................................. 28,223
Directors' fees and expenses........................................................... 5,581
Other expenses......................................................................... 12,684
----------
Total expenses before fee waivers and expense reimbursements........................ 1,391,935
Fees waived and expenses reimbursed by investment adviser and distributor (Note 3).. (190,348)
----------
Net expenses........................................................................ 1,201,587
----------
Net investment income (loss)........................................................... 959,464
----------
Net realized gain (loss) on investments................................................ (6,307)
----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS........................ $ 953,157
==========
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,
2018 2017
------------ ------------
INCREASE (DECREASE) IN NET ASSETS
Operations:
Net investment income (loss).................................................................. $ 959,464 $ 36,456
Net realized gain (loss) on investments....................................................... (6,307) 69
------------ ------------
Net increase (decrease) in net assets resulting from operations................................ $ 953,157 $ 36,525
------------ ------------
Distributions to shareholders from(1):
Distributable earnings (Class A).............................................................. (824,654) (39,234)
Distributable earnings (Class I).............................................................. (123,861) (17,434)
------------ ------------
Total distributions to shareholders............................................................ (948,515) (56,668)
------------ ------------
Net increase (decrease) in net assets resulting from capital share transactions (Note 5)....... 37,895,583 1,465,808
------------ ------------
Total increase (decrease) in net assets........................................................ 37,900,225 1,445,665
------------ ------------
NET ASSETS:
Beginning of period............................................................................ 117,032,130 115,586,465
------------ ------------
End of period.................................................................................. $154,932,355 $117,032,130
============ ============
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(1)The prior year amounts have been restated to reflect the adoption of
amendments to Rule 6-09.3 of regulation S-X. Below are the amounts as stated
in the December 31, 2017 annual report.
Distributions to shareholders from:
Net Investment Income (Class A)........................................... $ (18,712)
Net Investment Income (Class I)........................................... (14,873)
Net Realized Gain on Securities (Class A)................................. (20,522)
Net Realized Gain on Securities (Class I)................................. (2,561)
------------
Total distributions to shareholders........................................ $ (56,668)
------------
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
-------
12/31/14 $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
12/31/18 1.00 0.01 (0.01) -- 1.00 0.77 142,844 1.03 0.78
Class I
-------
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
12/31/18 1.00 0.01 (0.01) -- 1.00 1.02 12,089 0.80 1.02
--------
(1) Calculated based upon average shares outstanding.
(2) Total return includes expense reimbursements.
(3) Net of the following expense reimbursements/waivers (based on average net
assets):
12/31/14 12/31/15 12/31/16 12/31/17 12/31/18
-------- -------- -------- -------- --------
Class A............. 0.79% 0.78% 0.57% 0.32% 0.15%
Class I............. 0.69 0.71% 0.56% 0.27% 0.25%
(4) The Fund's performance figure was increased by less than 0.01% from the
effect of payments by an affiliate
See Notes to Financial Statements
9
AIG Government Money Market Fund
PORTFOLIO PROFILE -- December 31, 2018 -- (unaudited)
Industry Allocation*
U.S. Government Agencies..................... 56.6%
U.S. Government Treasuries................... 43.1
Repurchase Agreements........................ 0.1
----
99.8%
====
Weighted average days to maturity............ 30.3
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.
10
AIG Government Money Market Fund
PORTFOLIO OF INVESTMENTS -- December 31, 2018
Principal Value
Security Description Amount (Note 2)
SHORT-TERM INVESTMENT SECURITIES -- 99.7%
U.S. Government Agencies -- 56.6%
Federal Home Loan Bank
1.25% due 01/16/2019............ $ 1,200,000 $ 1,199,690
2.18% due 01/02/2019........... 36,000,000 35,997,850
2.35% due 01/07/2019........... 2,500,000 2,499,037
2.36% due 01/30/2019........... 4,000,000 3,992,541
2.41% due 02/07/2019........... 6,000,000 5,985,385
2.42% due 01/18/2019........... 6,000,000 5,993,257
2.43% due 02/06/2019........... 5,000,000 4,988,025
2.44% due 02/11/2019........... 5,000,000 4,986,333
2.45% due 03/06/2019........... 4,000,000 3,982,933
Federal Home Loan Bank FRS
2.27% (1 ML-0.08%)
due 02/04/2019.................. 3,000,000 3,000,006
Federal Home Loan Mtg. Corp.
2.32% due 01/18/2019............ 8,000,000 7,991,387
Federal National Mtg. Assoc. FRS
2.39% (1 ML+0.00%)
due 03/08/2019.................. 3,000,000 3,000,405
2.51% (1 ML+0.00%)
due 02/28/2019................. 4,000,000 3,999,591
-----------
Total U.S. Government Agencies
(amortized cost $87,616,440)... 87,616,440
-----------
U.S. Government Treasuries -- 43.1%
United States Treasury Bills
2.21% due 01/22/2019............ 2,100,000 2,097,293
2.24% due 01/02/2019........... 5,000,000 4,999,689
2.28% due 01/22/2019........... 5,000,000 4,993,350
2.29% due 01/22/2019........... 600,000 599,201
2.31% due 01/15/2019........... 8,000,000 7,992,828
2.32% due 01/29/2019........... 2,200,000 2,196,040
2.36% due 01/31/2019........... 5,000,000 4,990,208
2.36% due 02/05/2019........... 6,000,000 5,986,263
2.36% due 03/21/2019........... 6,000,000 5,969,098
2.37% due 02/21/2019........... 4,500,000 4,485,003
2.40% due 04/04/2019........... 4,500,000 4,472,373
2.51% due 06/06/2019........... 5,000,000 4,946,267
Principal Value
Security Description Amount (Note 2)
------------------------------------------------------------------------
U.S. Government Treasuries (continued)
United States Treasury Bonds STRIPS
zero coupon due 02/15/2019.................... $1,000,000 $ 997,600
United States Treasury Notes
1.13% due 01/31/2019.......................... 1,700,000 1,698,908
1.13% due 02/28/2019......................... 4,000,000 3,992,086
1.25% due 01/31/2019......................... 600,000 599,709
1.50% due 01/31/2019......................... 5,800,000 5,796,138
------------
Total U.S. Government Treasuries
(amortized cost $66,812,054)................. 66,812,054
------------
Total Short-Term Investment Securities -- 99.7%
(amortized cost $154,428,494)................ 154,428,494
------------
REPURCHASE AGREEMENTS -- 0.1%
Agreement with Fixed Income Clearing Corp.,
bearing interest at 0.50%, dated 12/31/2018,
to be repurchased 01/02/2019 in the amount
of $259,007, collateralized by $260,000 of
United State Treasury Notes, bearing interest
at 2.88% due 07/31/2025 and having an
approximate value of $266,787.
(cost $259,000)............................... 259,000 259,000
------------
TOTAL INVESTMENTS --
(amortized cost $154,687,494)(1)............. 99.8% 154,687,494
Other assets less liabilities.................. 0.2 244,861
---------- ------------
NET ASSETS..................................... 100.0% $154,932,355
========== ============
--------
(1) At December 31, 2018, 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, 2018 and
unless noted otherwise, the dates shown are the original maturity dates.
STRIPS -- Separate Tracking of Registered Interest and Principal Securities
Index Legend
1 ML --1 Month USD LIBOR
The following is a summary of the inputs used to value the Fund's net assets as
of December 31, 2018 (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. $-- $154,428,494 $-- $154,428,494
Repurchase Agreements............ -- 259,000 -- 259,000
--- ------------ --- ------------
Total Investments at Value....... $-- $154,687,494 $-- $154,687,494
=== ============ === ============
--------
* For a detailed presentation of investments, please refer to the Portfolio of
Investments.
See Notes to Financial Statements
11
SunAmerica Money Market Funds, Inc.
NOTES TO FINANCIAL STATEMENTS -- December 31, 2018
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.
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 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
12
SunAmerica Money Market Funds, Inc.
NOTES TO FINANCIAL STATEMENTS -- December 31, 2018 -- (continued)
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, 2018, is reported on a schedule at the
end of 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.
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 -- December 31, 2018 -- (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.
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.
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
2015 - 2017 or expected to be taken in the Fund's 2018 tax return. The Fund
is not
14
SunAmerica Money Market Funds, Inc.
NOTES TO FINANCIAL STATEMENTS -- December 31, 2018 -- (continued)
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
2015.
New Accounting Pronouncements: In August 2018, the SEC adopted amendments to
certain financial statement disclosure requirements of Regulation S-X to
conform them to GAAP for investment companies. The final rule became
effective on November 5, 2018. All required changes have been made in
accordance with Regulation S-X.
In August 2018, the FASB issued Accounting Standards Update ("ASU") No.
2018-13 "Disclosure Framework -- Changes to the Disclosure Requirements for
Fair Value Measurement". The ASU eliminates, modifies, and adds disclosure
requirements for fair value measurements and is effective for fiscal years,
and interim periods within those fiscal years, beginning after December 15,
2019. The ASU allows for early adoption of either the entire standard or
only the provisions that eliminate or modify the requirements. Management
has elected to early adopt the provisions that eliminate disclosure
requirements and is still evaluating the impact of applying the rest of the
ASU.
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 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 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, 2018,
pursuant to the contractual expense limitations, SunAmerica waived fees
and/or reimbursed expenses of $30,147 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, 2018,
SunAmerica did not voluntarily waive expenses.
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, 2018 -- (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. In light of
current market conditions, 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, 2018, ACS voluntarily waived $160,201 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, 2018,
the proceeds received from redemptions are as follows:
Class A............................ $141
The Fund has entered into a Service Agreement with AIG Fund Services, Inc.
("AFS"), an affiliate of the Adviser. Under the Service Agreement, AFS
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 AFS 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, 2018, 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 AFS pursuant to the terms of the
Service Agreement:
Payable at
Expenses December 31, 2018
-------- -----------------
Class A............................ $231,150 $23,288
Class I............................ 26,652 2,258
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
---------------------------------------- ---------------------------------------------------------------------------
For the year ended December 31, 2018 For the year ended December 31, 2018 For the year ended December 31, 2017
---------------------------------------- ------------------------------------- -------------------------------------
Long-term Gains/ Unrealized Long-Term Long-Term
Ordinary Capital and Appreciation Ordinary Capital Ordinary Capital
Income Other Losses (Depreciation) Income Gains Income Gains
-------- ---------------- -------------- --------- --------- -------- ---------
$14,252 $(6,304) $(6) $948,515 $ -- $56,668 $ --
Capital Loss Carryforwards: At December 31, 2018 for Federal income tax
purposes, the Fund has $6,304 of unlimited short-term capital losses.
For the year ended December 31, 2018, reclassifications were made to
decrease accumulated net realized gain(loss) by $73 with an offsetting
adjustment to undistributed net investment income of $73. The
reclassifications arising from book/tax differences were due primarily to
dividend redesignations.
Due to other timing differences, the fund has a dividend payable of $273.
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. All required changes have been made in accordance with the Act.
16
SunAmerica Money Market Funds, Inc.
NOTES TO FINANCIAL STATEMENTS -- December 31, 2018 -- (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,
2018 2017 2018 2017
------------ ------------ ------------ ------------
Shares sold.............. $ 82,114,138 $ 49,647,887 $ 14,997,048 $ 10,510,780
Reinvested dividends..... 818,432 38,824 123,269 17,432
Shares redeemed.......... (45,515,814) (46,982,542) (14,641,490) (11,766,573)
------------ ------------ ------------ ------------
Net increase (decrease).. $ 37,416,756 $ 2,704,169 $ 478,827 $ (1,238,361)
============ ============ ============ ============
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, 2018, 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 (the "Fund")
as of December 31, 2018, the related statement of operations for the year ended
December 31, 2018, the statement of changes in net assets for each of the two
years in the period ended December 31, 2018, including the related notes, and
the financial highlights for each of the five years in the period ended
December 31, 2018 (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, 2018, 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, 2018 and the financial
highlights for each of the five years in the period ended December 31, 2018 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 audit. 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 audit 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, 2018 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, 2019
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, 2018 -- (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
Name, Held With Office and Fund Complex
Address and SunAmerica Length of Principal Occupations Overseen by Other Directorships
Age* Complex Time Served(4) During Past 5 Years Trustee(1) Held by Trustee(2)
--------------------- ---------- -------------- -------------------------------- ------------- --------------------------
Disinterested Trustees
Dr. Judith L. Craven Trustee 2001-present Retired. 73 Director, A.G. Belo
Age: 73 Corporation (a media
company) (1992-2014);
Director, Sysco Corp.
(1996 to 2017); Director,
Luby's, Inc. (1998 to
present).
William F. Devin Trustee 2001-present Retired. 24 None
Age: 80
Richard W. Grant Trustee 2011-present Retired. 24 None
Age: 73 Chairman
of the
Board
Stephen J. Gutman Trustee 1984-present Senior Vice President and 24 None
Age: 75 Associate Broker, Corcoran
Group (real estate) (2002 to
present); President, SJG
Marketing Inc. (2009 to
present).
Eileen A. Kamerick Trustee 2018-present National Association of 24 Hochschild Mining plc
Age 60 Corporate Directors Board (precious metals
Leadership Fellow and financial company) (since 2016);
expert; Adjunct Professor of Director of Associated
Law, University of Chicago, Banc-Corp (financial
Washington University in St. services company) (since
Louis and University of Iowa 2007); Legg Mason
law schools (since 2007); Closed End Funds
formerly, Senior Advisor to the (registered investment
Chief Executive Officer and companies) (since 2013);
Executive Vice President and Westell Technologies,
Chief Financial Officer of Inc. (technology
ConnectWise, Inc. (software company) (2003-2016).
and services company) (2015-
2016); Chief Financial Officer,
Press Ganey Associates
(health care informatics
company) (2012-2014)
Interested Trustees
Peter A. Harbeck(3) Trustee 1994-present President (1995 to present), 150 None
Age: 64 CEO (1997 to present); and
Director, SunAmerica. (1997
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, 2018 -- (unaudited)
(continued)
Position Term of
Name, Held With Office and
Address and SunAmerica Length of Principal Occupations
Age* Complex Time Served(4) During Past 5 Years
--------------------- --------------- -------------- ------------------------------------------------------------------
Officers
John T. Genoy President 2007- Chief Financial Officer, SunAmerica (2002 to present); Senior
Age: 50 present Vice President, SunAmerica (2004 to present); Chief Operating
Officer, SunAmerica (2006 to present).
Gregory N. Bressler Secretary 2005- Senior Vice President and General Counsel, SunAmerica (2005 to
Age: 52 present present).
Kathleen D. Fuentes Chief Legal 2013- Vice President and Deputy General Counsel, SunAmerica (2006
Age: 49 Officer and present to present).
Assistant
Secretary
James Nichols Vice President 2006- Director, President and CEO, ACS (2006 to present); Senior Vice
Age: 52 present President, SunAmerica (2002 to present).
Gregory R. Kingston Treasurer 2014- Senior Vice President, SunAmerica (2014-present); Vice President,
Age: 52 present SunAmerica (2001 to present); Head of Mutual Fund
Address: Administration, SunAmerica (2014 to present).
2919 Allen Parkway
Houston, Texas 77019
Shawn Parry Vice President 2014- Vice President, SunAmerica (2014 to present); Assistant Vice
Age: 46 and Assistant present President, SunAmerica (2005 to 2014).
Address: Treasurer
2919 Allen Parkway
Houston, Texas 77019
Donna McManus Vice President 2014- Vice President, SunAmerica, (2014 to present); Managing
Age: 57 and Assistant present Director, BNY Mellon (2009 to 2014).
Treasurer
Timothy Pettee Vice President 2018- Lead Portfolio Manager, Rules Based Funds (2013-present);
Age: 60 present Chief Investment Strategist (2003-present); Chief Investment
Officer, SunAmerica (2003-2013).
Christopher C. Joe Chief 2017- Chief Compliance Officer, AIG Funds, Anchor Series Trust,
Age: 49 Compliance present Seasons Series Trust, SunAmerica Series Trust, VALIC Company
Address: Officer I and VALIC Company II (2017 to present); Chief Compliance
2919 Allen Parkway Officer, VALIC Retirement Services Company (2017 to present);
Houston, Texas 77019 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- Acting Chief Compliance Officer, AIG Funds, Anchor Series Trust,
Age: 46 Laundering present Seasons Series Trust, SunAmerica Series Trust, VALIC
Compliance Company I and VALIC Company II (2016 to 2017); Chief
Officer 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).
20
SunAmerica Money Market Funds, Inc.
DIRECTORS AND OFFICERS INFORMATION -- December 31, 2018 -- (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 (6 funds),
SunAmerica Equity Funds (2 funds), SunAmerica Income Funds (3 funds),
SunAmerica Series, Inc. (6 funds), Anchor Series Trust (5 portfolios),
SunAmerica Senior Floating Rate Fund, Inc. (1 fund), SunAmerica Series
Trust (58 portfolios), VALIC Company I (34 portfolios), VALIC Company II
(15 funds), Seasons Series Trust (19 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.
21
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, 2018. The information necessary to complete your income
tax returns is included with your Form 1099-DIV, which will be mailed to you in
early 2019.
22
[LOGO]
AIG Funds
Harborside 5
185 Hudson Street, Suite 3300
Jersey City, NJ 07311
Directors/Trustees VOTING PROXIES ON FUND DISCLOSURE OF QUARTERLY
Dr. Judith L. Craven PORTFOLIO SECURITIES PORTFOLIO HOLDINGS
William F. Devin A description of the The Fund is required to
Richard W. Grant policies and procedures file its complete
Stephen J. Gutman that the Funds use to schedule of portfolio
Peter A. Harbeck determine how to vote holdings with the U.S.
Eileen A. Kamerick proxies relating to Securities and Exchange
Officers securities held in the Commission for its first
John T. Genoy, President Funds' portfolios which and third fiscal quarters
and Chief Executive is available in the on Form N-Q. The Fund's
Officer Funds' Statement of Forms N-Q are available
Timothy Pettee, Vice Additional Information on the U.S. Securities
President may be obtained without and Exchange Commission's
Gregory R. Kingston, charge upon request, by website at
Treasurer calling (800) 858-8850. http://www.sec.gov. You
James Nichols, Vice This information is also can also review and
President available from the EDGAR obtain copies of the
Gregory N. Bressler, database on the U.S. Forms N-Q at the U.S.
Secretary Securities and Exchange Securities and Exchange
Kathleen Fuentes, Chief Commission's website at Commission's Public
Legal Officer and http://www.sec.gov. Reference Room in
Assistant Secretary DELIVERY OF SHAREHOLDER Washington, DC
Donna McManus, Vice DOCUMENTS (information on the
President and The Funds have adopted a operation of the Public
Assistant Treasurer policy that allows them Reference Room may be
Shawn Parry, Vice to send only one copy of obtained by calling
President and a Fund's prospectus, 1-800-SEC-0330).
Assistant Treasurer proxy material, annual PROXY VOTING RECORD ON
Matthew J. Hackethal, report and semi-annual FUND PORTFOLIO SECURITIES
Anti-Money Laundering report (the "shareholder Information regarding how
Compliance Officer documents") to the Funds voted proxies
Christopher C. Joe, shareholders with relating to securities
Chief Compliance multiple accounts held in the Fund's
Officer residing at the same portfolio during the most
Investment Adviser "household." This recent twelve month
SunAmerica Asset practice is called period ended June 30 is
Management, LLC householding and reduces available, once filed
Harborside 5 Fund expenses, which with the U.S. Securities
185 Hudson Street, Suite benefits you and other and Exchange Commission,
3300 shareholders. Unless the without charge, upon
Jersey City, NJ 07311 Funds receive request, by calling (800)
Distributor instructions to the 858-8850 or on the U.S.
AIG Capital Services, contrary, you will only Securities and Exchange
Inc. receive one copy of the Commission's website at
Harborside 5 shareholder documents. http://www.sec.gov.
185 Hudson Street, Suite The Funds will continue This report is submitted
3300 to household the solely for the general
Jersey City, NJ 07311 shareholder documents information of
Shareholder Servicing indefinitely, until we shareholders of the Fund.
Agent are instructed otherwise. Distribution of this
AIG Fund Services, Inc. If you do not wish to report to persons other
Harborside 5 participate in than shareholders of the
185 Hudson Street, Suite householding, please Fund is authorized only
3300 contact Shareholder in connection with a
Jersey City, NJ 07311 Services at currently effective
Transfer Agent (800) 858-8850 ext. 6010 prospectus, setting forth
DST Asset Manager or send a written request details of the Fund,
Solutions, Inc. with your name, the name which must precede or
303 W. 11/th/ Street of your fund(s) and your accompany this report.
Kansas City, MO 64105 account member(s) to AIG
Custodian Funds, P.O. Box 219186,
State Street Bank and Kansas City MO,
Trust Company 64121-9186. We will
One Lincoln St. resume in-dividual
Boston, MA 02111 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.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.
[LOGO]
aig.com/funds
MMANN - 12/18
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, 2018,
there were no reportable waivers or implicit waivers to a provision of
the Code that applies to the registrant's Principal Executive and
Principal Accounting Officers (the "Covered Officers").
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:
2017 2018
(a) Audit Fees................................. $45,985 $47,363
(b) Audit-Related Fees......................... $ 0 $
(c) Tax Fees................................... $12,139 $12,603
(d) All Other Fees............................. $ 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:
2017 2018
(b) Audit-Related Fees.................... $0 $ 0
(c) Tax Fees.............................. $0 $ 0
(d) All Other Fees........................ $0 $36,429
(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 2017 and 2018 were $12,139 and $117,603 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 8, 2019
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By: /s/ John T. Genoy
--------------------------
John T. Genoy
President
Date: March 8, 2019
By: /s/ Gregory R. Kingston
--------------------------
Gregory R. Kingston
Treasurer
Date: March 8, 2019