Item 1. Reports to Stockholders
[PHOTO]
ANNUAL REPORT 2013
SUNAMERICA
Money Market Fund
[LOGO]
DECEMBER 31, 2013 ANNUAL REPORT
SUNAMERICA MONEY MARKET FUNDS, INC.
SUNAMERICA MONEY MARKET FUND (SMAXX)
TABLE OF CONTENTS
SHAREHOLDERS' LETTER.................................... 2
EXPENSE EXAMPLE......................................... 5
STATEMENT OF ASSETS AND LIABILITIES..................... 7
STATEMENT OF OPERATIONS................................. 8
STATEMENT OF CHANGES IN NET ASSETS...................... 9
FINANCIAL HIGHLIGHTS.................................... 10
PORTFOLIO OF INVESTMENTS................................ 11
NOTES TO FINANCIAL STATEMENTS........................... 14
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM. 22
DIRECTORS AND OFFICERS INFORMATION...................... 23
SHAREHOLDER TAX INFORMATION............................. 26
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DECEMBER 31, 2013 ANNUAL REPORT
SHAREHOLDERS' LETTER -- (unaudited)
Dear Shareholders,
We are pleased to present this annual shareholder report for the SunAmerica
Money Market Funds, Inc. for the 12 months ended December 31, 2013.
For money market funds, it was a period wherein aggressive monetary stimulus
helped ease investors' concerns about the slow-moving U.S. economy and the
potential for a financial crisis in Europe. Throughout the annual period, U.S.
economic data remained a key determinant of the Federal Reserve's (the "Fed")
policy stance. During the first quarter of 2013, U.S. economic data softened
somewhat, despite a strong housing sector, and the European economy showed
further signs of weakening, as troubles in Italy and Cyprus dominated
headlines. The second quarter of 2013 saw heightened volatility in interest
rates, and benchmark yields in the U.S., Europe and Japan rose substantially.
Such volatility was sparked by Fed Chair Bernanke's announcement on May 22,
2013 that the Fed would potentially begin "tapering" the pace of quantitative
easing asset purchases. In June 2013, news from the Fed indicated that the
slowing of the asset purchase program could begin later in 2013. The result was
a sharp sell-off in both U.S. Treasuries and, what are considered, riskier
assets. European peripheral countries performed well, as political uncertainty
in Italy eased and the European Central Bank ("ECB") cut its main policy rate
by 25 basis points to a then-record low of 0.50% in May, citing weak economic
growth and slowing inflation. The Bank of Japan announced aggressive new easing
measures under its new leader, Governor Kuroda.
During the third calendar quarter, data suggested heightened U.S. economic
activity. The Fed surprised the financial markets when it chose not to announce
a tapering of its asset purchases at its September meeting, citing insufficient
economic conditions and concerns about the impact of fiscal tightening. The
U.S. also faced a Congressional stalemate over budget financing, which forced
the first federal government shutdown in 17 years. In Europe and the U.K.,
economic data strengthened. Despite the improvement, the ECB left the door open
to further easing, so liquidity remained sufficient to prevent sharper
increases in short-term interest rates.
In the last quarter of the annual period, U.S. economic data continued to
indicate strengthening. The Fed finally ended months of speculation by
announcing in December 2013 that it would begin tapering its quantitative
easing asset purchases in January 2014. The Fed planned to reduce its monthly
asset purchases of U.S. Treasuries and mortgage-backed securities by $10
billion -- from $85 billion to $75 billion per month. The Fed further indicated
it would maintain its "low for long" policy on short-term interest rates. The
nomination of Janet Yellen to succeed Mr. Bernanke as Fed Chair in early 2014
indicated to the markets at large that monetary policy was likely to remain
accommodative. At the end of the year, Congress came to a two-year budget
agreement to replace some cuts made under the sequester with other revenue
sources, however, it still needed to pass detailed spending bills to eliminate
the threat of another government shutdown. The ECB cut its main policy rate to
a record low of 0.25% in November 2013 and left its deposit rate at zero, as
the region emerged from its recession and began to see some economic expansion.
With the targeted federal funds rate near zero throughout the annual period,
and with the Fed strengthening its forward guidance for continued low rates,
money market yields were anchored near the same zero level with little
difference between maturities. Further, the money market yield curve, or
"spectrum of maturities," remained extremely flat, meaning the difference
between yields at the short-term end of the money market yield curve and the
long-term end was quite narrow during the annual period. As such, the annual
period did not provide many opportunities to add yield.
There were also significant regulatory developments with respect to money
market reform during the annual period. On June 5, 2013, the Securities and
Exchange Commission ("SEC") unanimously voted to propose for public comment a
proposal to amend Rule 2a-7 and other rules that govern money market funds
under the Investment Company Act of 1940. The proposal included two principal
alternative reforms that could be adopted alone or in combination. Under the
first
2
DECEMBER 31, 2013 ANNUAL REPORT
SHAREHOLDERS' LETTER -- (unaudited) (continued)
alternative, prime and tax-exempt institutional money market funds would be
required to have a floating net asset value ("NAV"). Specifically, these funds
would be required to sell and redeem shares based on the current market-based
value of the securities in their underlying portfolios. Under the second
alternative, money market funds would continue to transact at a $1.00 per share
price, but in certain circumstances would be required to institute a liquidity
fee and would be permitted to impose a redemption gate in times of stress. The
SEC also proposed additional amendments, such as tightening diversification
requirements under Rule 2a-7, enhancing disclosure requirements, strengthening
stress testing and increasing reporting obligations for money market funds. It
is important to note that it will likely be some time before final rules, if
any, are adopted and become effective. Accordingly, there were no changes to
the Fund or the rules governing money market funds made during the Fund's
annual period as a result of the pending proposal.
On the following pages, you will find a brief discussion of the annual period
from the portfolio manager as well as financial statements and portfolio
information for the SunAmerica Money Market Fund for the annual period ended
December 31, 2013.
As always, we remain diligent in the management of your assets. We value your
ongoing confidence in us and look forward to serving your investment needs in
the future. If you have any questions, or require additional information on
this or other SunAmerica Mutual Funds, you may contact your financial advisor
or visit us at www.safunds.com.
Sincerely,
/s/ Peter A. Harbeck
Peter A. Harbeck
President & CEO
SunAmerica Asset Management, LLC.*
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Past performance is no guarantee of future results.
*Effective upon the close of business on December 31, 2013, SunAmerica Asset
Management Corp. was reorganized as a Delaware limited liability company and
its name concurrently changed to SunAmerica Asset Management, LLC.
An investment in the Fund is not insured or guaranteed by the Federal Deposit
Insurance Corporation (FDIC) or any other government agency. Although the Fund
seeks to preserve the value of your investment at $1.00 per share, it is
possible to lose money by investing in the Fund.
3
SUNAMERICA MONEY MARKET FUND
ANDREW DOULOS, PORTFOLIO MANAGER
SUNAMERICA ASSET MANAGEMENT, LLC^
The SunAmerica Money Market Fund (Class A) returned 0.01% for the annual
period ended December 31, 2013.
Fund performance was affected most by historically low interest rates that
persisted throughout 2013. Yields on money market securities moved up and down
within a rather tight range throughout the annual period, with one-month
certificates of deposit (CDs) yielding approximately 0.09% at year end 2013
compared to roughly 0.17% at year end 2012 and averaging 0.13% for the annual
period as a whole. Muted Fund performance was compounded by the fact that
increased risk appetite during the annual period helped pull credit spreads
tighter.
While money market yields were low throughout the annual period, the Fund
continued to seek current income to the extent consistent with liquidity and
stability of principal. We were able to navigate interest rate risk by
adjusting the Fund's weighted average maturity** as market conditions shifted.
We were able to mitigate potential credit risk by buying high quality,
creditworthy names, which helped buoy the Fund's performance.
More specifically, given the low yield environment that existed throughout
the year, we employed a barbell investment strategy, with greater weightings in
fixed-rate securities at the short-term end of the yield curve and in
longer-dated floating-rate securities. This strategy enabled us to maintain a
cushion of liquidity in the near term, i.e., one to seven days, and to garner
the somewhat greater yield, albeit a modest gain given the flat yield curve
during the annual period, available from investments with longer-dated
maturities, i.e., those with reset dates of 90 days. The added benefits of
implementing this barbell investment strategy were to potentially mitigate the
impact of market volatility on the Fund and to help keep the Fund's maturity
profile within regulatory parameters.
Indeed, the Fund's weighted average maturity was managed to achieve a range
between 40 to 50 days for most of the annual period. We made adjustments to the
Fund's weighted average maturity based on then-current market conditions, our
near-term view on interest rates and anticipated and actual Fed monetary policy
statements. For example, we modestly lengthened the Fund's weighted average
maturity days beyond 50 days at the end of August 2013 and then maintained a
weighted average maturity of approximately 50 days until the end of November
2013. We again slightly reduced the Fund's weighted average maturity in
December 2013. As of December 31, 2013, the Fund's weighted average maturity
stood at approximately 39 days. The Fund's weighted average life+ on
December 31, 2013 was 84 days.
The Fund was focused primarily on investments in government agency
securities and U.S. Treasury securities, with lesser allocations to
shorter-term repurchase agreements, commercial paper, corporate bonds and
notes, Yankee certificates of deposit++ and certificates of deposit throughout
the annual period. As supply and demand factors shifted during the annual
period, we adjusted the allocations to these various investments accordingly.
Past performance is no guarantee of future results.
^Effective upon the close of business on December 31, 2013, SunAmerica Asset
Management Corp. was reorganized as a Delaware limited liability company and
its name concurrently changed to SunAmerica Asset Management, LLC.
*As measured by the Citigroup 3-Month Treasury Bill Index, an unmanaged index
that tracks short-term U.S. government debt instruments. Indices are not
managed and an investor cannot invest directly into an index.
**Weighted average maturity is the average time it takes for securities in a
portfolio to mature, weighted in proportion to the dollar amount that is
invested in the portfolio. The weighted average maturity of a money market fund
is a measure of its price sensitivity to changes in interest rates.
+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.
++Yankee certificates of deposit are certificates of deposit that are issued in
the United States by a branch or agency of a foreign bank. A Yankee certificate
of deposit is a foreign certificate of deposit denominated in U.S. dollars,
issued in the U.S. to American investors.
An investment in the Fund is not insured or guaranteed by the Federal Deposit
Insurance Corporation or any other government agency. Although the Fund seeks
to preserve the value of your investment at $1.00 per share, it is possible to
lose money by investing in the Fund.
Securities listed may or may not be a part of current portfolio construction.
4
SUNAMERICA MONEY MARKET FUNDS, INC.
EXPENSE EXAMPLE -- DECEMBER 31, 2013 -- (UNAUDITED)
DISCLOSURE OF PORTFOLIO EXPENSES IN SHAREHOLDER REPORTS
As a shareholder in the SunAmerica 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 service fees, and other Fund
expenses. This Example set forth below is intended to help you understand your
ongoing costs (in dollars) of investing in the Fund and to compare these costs
with the ongoing costs of investing in other mutual funds. The Example is based
on an investment of $1,000 invested at July 1, 2013 and held until December 31,
2013.
ACTUAL EXPENSES
The "Actual" section of the table provides information about actual account
values and actual expenses. You may use the information in these columns,
together with the amount you invested, to estimate the expenses that you paid
over the period. Simply divide your account value by $1,000 (for example, an
$8,600 account value divided by $1,000 = 8.6), then multiply the result by the
number in the column under the heading entitled "Expenses Paid During the Six
Months Ended December 31, 2013" to estimate the expenses you paid on your
account during this period. For shareholder accounts in classes other than
Class I, the "Expenses Paid During the Six Months Ended December 31, 2013"
column does not include small account fees that may be charged if your account
balance is below $500 ($250 for retirement plan accounts). In addition, the
"Expenses Paid During the Six Months Ended December 31, 2013" column does not
include administrative fees that may apply to qualified retirement plan
accounts. See the Fund's prospectus, your retirement plan documents and/or
materials from your financial adviser for a full description of these fees. Had
these fees been included, the "Expenses Paid During the Six Months Ended
December 31, 2013" column would have been higher and the "Ending Account Value"
would have been lower.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The "Hypothetical" section of the table provides information about hypothetical
account values and hypothetical expenses based on the Fund's actual expense
ratio and an assumed rate of return of 5% per year before expenses, which is
not the Fund's actual return. The hypothetical account values and expenses may
not be used to estimate the actual ending account balance or expenses you paid
for the period. You may use this information to compare the ongoing costs of
investing in the Portfolio and other funds. To do so, compare this 5%
hypothetical example with the 5% hypothetical examples that appear in the
shareholder reports of other funds. For shareholder accounts in classes other
than Class I, the "Expenses Paid During the Six Months Ended December 31, 2013"
column does not include small account fees that may be charged if your account
balance is below $500 ($250 for retirement plan accounts). In addition, the
"Expenses Paid During the Six Months Ended December 31, 2013" column does not
include administrative fees that may apply to qualified retirement plan
accounts. See the Fund's prospectus, your retirement plan documents and/or
materials from your financial adviser for a full description of these fees. Had
these fees been included, the "Expenses Paid During the Six Months Ended
December 31, 2013" column would have been higher and the "Ending Account Value"
would have been lower.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transaction costs, including
contingent deferred sales charges, small account fees and administrative fees,
if applicable to your account. Please refer to the Fund's prospectus, qualified
retirement plan document and/or materials from your financial adviser for more
information. Therefore, the "Hypothetical" example is useful in comparing
ongoing costs only, and will not help you determine the relative total costs of
owning different funds. In addition, if these transaction costs and other fees
were included, your costs would have been higher.
5
SUNAMERICA MONEY MARKET FUNDS, INC.
EXPENSE EXAMPLE -- DECEMBER 31, 2013 -- (UNAUDITED) (CONTINUED)
ACTUAL HYPOTHETICAL
---------------------------------------------------- ----------------------------------------------------
ENDING ENDING ACCOUNT
ACCOUNT VALUE EXPENSES PAID VALUE USING EXPENSES PAID
BEGINNING USING ACTUAL DURING THE BEGINNING A HYPOTHETICAL 5% DURING THE
ACCOUNT VALUE RETURNS AT SIX MONTHS ENDED ACCOUNT VALUE ASSUMED RETURN AT SIX MONTHS ENDED
AS JULY 1, 2013 DECEMBER 31, 2013 DECEMBER 31, 2013* AS JULY 1, 2013 DECEMBER 31, 2013 DECEMBER 31, 2013*
--------------- ----------------- ------------------ --------------- ----------------- ------------------
Money Market Fund#
Class A.. $1,000.00 $1,000.05 $0.81 $1,000.00 $1,024.40 $0.82
Class I.. $1,000.00 $1,000.05 $0.81 $1,000.00 $1,024.40 $0.82
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EXPENSE
RATIO
AS OF
DECEMBER 31,
2013*
------------
Money Market Fund#
Class A.. 0.16%
Class I.. 0.16%
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* Expenses are equal to the Fund's annualized expense ratio multiplied by the
average account value over the period, multiplied by 184 days divided by 365
days. These ratios do not reflect transaction costs, including contingent
deferred sales charges, small account fees and administrative fees, if
applicable to your account. Please refer to your Prospectus, your qualified
retirement plan document and/or materials from your financial advise for
more information.
# During the stated period, the investment adviser and distributor either
waived/reimbursed a portion of or all of the fees/expenses and assumed a
portion of or all expenses for the Funds. As a result, if these fees and
expenses had not been waived/reimbursed, the "Actual/Hypothetical Ending
Account Value" would have been lower and the "Actual/Hypothetical Expenses
Paid During the Six Months Ended December 31, 2013" and "Expense Ratios"
would have been higher.
6
SUNAMERICA MONEY MARKET FUNDS, INC.
STATEMENT OF ASSETS AND LIABILITIES -- DECEMBER 31, 2013
MONEY MARKET
FUND
------------
ASSETS:
Investments at value* (unaffiliated)............................... $710,667,810
Repurchase agreements (cost approximates value).................... 39,436,000
------------
Total Investments................................................ $750,103,810
------------
Cash............................................................... 31
Receivable for:
Fund shares sold................................................. 200,542
Dividends and interest........................................... 405,929
Prepaid expenses and other assets.................................. 8,810
Due from investment adviser for expense reimbursements/fee waivers. 372,666
Due from distributor for fee waivers............................... 91,528
------------
Total assets..................................................... 751,183,316
------------
LIABILITIES:
Payable for:
Fund shares redeemed............................................. 164,508
Investment advisory and management fees.......................... 305,267
Distribution and service maintenance fees........................ 91,528
Transfer agent fees and expenses................................. 160,559
Directors' fees and expenses..................................... 12,800
Other accrued expenses........................................... 122,155
Dividends payable.................................................. 24,277
------------
Total liabilities................................................ 881,094
------------
Net Assets...................................................... $750,302,222
============
NET ASSETS REPRESENTED BY:
Common stock, $.001 par value (10 billion shares authorized)....... $ 751,418
Paid-in capital.................................................... 750,741,139
------------
751,492,557
Accumulated undistributed net investment income (loss)............. (28,365)
Accumulated undistributed net realized gain (loss) on investments.. (1,161,970)
------------
Net Assets...................................................... $750,302,222
============
CLASS A:
Net assets......................................................... $736,942,311
Shares outstanding................................................. 738,055,037
Net asset value and redemption price per share
(excluding any applicable contingent deferred sales charge)....... $ 1.00
============
CLASS I:
Net assets......................................................... $ 13,359,911
Shares outstanding................................................. 13,362,610
Net asset value and redemption price per share..................... $ 1.00
============
*Amortized cost of investment securities (unaffiliated)............ $710,667,810
============
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See Notes to Financial Statements
7
SUNAMERICA MONEY MARKET FUNDS, INC.
STATEMENT OF OPERATIONS -- FOR THE YEAR ENDED DECEMBER 31, 2013
MONEY MARKET
FUND
------------
INVESTMENT INCOME:
Interest (unaffiliated)................................................................ $ 1,370,066
-----------
Total investment income............................................................. 1,370,066
-----------
EXPENSES:
Investment advisory and management fees................................................ 3,575,206
Distribution and service maintenance fees:
Class A.............................................................................. 1,069,851
Transfer agent fees and expenses:
Class A.............................................................................. 1,636,026
Class I.............................................................................. 32,811
Registration fees:
Class A.............................................................................. 38,499
Class I.............................................................................. 12,385
Custodian and accounting fees.......................................................... 124,783
Reports to shareholders................................................................ 122,658
Audit and tax fees..................................................................... 49,555
Legal fees............................................................................. 27,245
Directors' fees and expenses........................................................... 58,314
Other expenses......................................................................... 16,821
-----------
Total expenses before fee waivers and expense reimbursements........................ 6,764,154
Fees waived and expenses reimbursed by investment adviser and distributor (Note 3).. (5,466,983)
-----------
Net expenses........................................................................ 1,297,171
-----------
Net investment income (loss)........................................................... 72,895
-----------
Net realized gain (loss) on investments................................................ 28,894
-----------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS........................ $ 101,789
===========
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See Notes to Financial Statements
8
SUNAMERICA MONEY MARKET FUNDS, INC.
STATEMENT OF CHANGES IN NET ASSETS
MONEY MARKET FUND
--------------------------
FOR THE YEAR FOR THE YEAR
ENDED ENDED
DECEMBER 31, DECEMBER 31,
2013 2012
------------ ------------
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS:
Net investment income (loss)........................................................... $ 72,895 $ 67,743
Net realized gain (loss) on investments................................................ 28,894 20,077
------------ ------------
Net increase (decrease) in net assets resulting from operations.......................... $ 101,789 $ 87,820
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income (Class A)........................................................ (71,436) (66,757)
Net investment income (Class I)........................................................ (1,459) (1,510)
------------ ------------
Total distributions to shareholders...................................................... (72,895) (68,267)
------------ ------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM CAPITAL SHARE TRANSACTIONS (NOTE 5). (34,135,701) 76,249,468
------------ ------------
TOTAL INCREASE (DECREASE) IN NET ASSETS.................................................. (34,106,807) 76,269,021
------------ ------------
NET ASSETS:
Beginning of period...................................................................... 784,409,029 708,140,008
------------ ------------
End of period*........................................................................... $750,302,222 $784,409,029
============ ============
*Includes accumulated undistributed net investment income (loss)......................... $ (28,365) $ (28,365)
============ ============
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See Notes to Financial Statements
9
SUNAMERICA MONEY MARKET FUNDS, INC.
FINANCIAL HIGHLIGHTS
MONEY MARKET FUND
-----------------
RATIO OF NET
NET NET INVESTMENT
ASSET DIVIDENDS ASSET NET ASSETS RATIO OF INCOME TO
VALUE NET FROM NET VALUE END OF EXPENSES AVERAGE
BEGINNING INVESTMENT INVESTMENT END OF TOTAL PERIOD TO AVERAGE NET
PERIOD ENDED OF PERIOD INCOME(1) INCOME PERIOD RETURN(2) (000'S) NET ASSETS(3) ASSETS(3)
------------ --------- ---------- ---------- ------ --------- ---------- ------------- ------------
CLASS A
-------
12/31/09 $1.00 $0.00 $(0.00) $1.00 0.12%(4) $760,577 0.78% 0.14%
12/31/10 1.00 0.00 (0.00) 1.00 0.01(5) 719,671 0.29 0.01
12/31/11 1.00 0.00 (0.00) 1.00 0.01 692,515 0.17 0.01
12/31/12 1.00 0.00 (0.00) 1.00 0.01 768,644 0.22 0.01
12/31/13 1.00 0.00 (0.00) 1.00 0.01 736,942 0.18 0.01
CLASS I
-------
12/31/09 $1.00 $0.00 $(0.00) $1.00 0.20%(4) $ 14,648 0.69% 0.21%
12/31/10 1.00 0.00 (0.00) 1.00 0.01(5) 14,975 0.29 0.01
12/31/11 1.00 0.00 (0.00) 1.00 0.01 15,625 0.18 0.01
12/31/12 1.00 0.00 (0.00) 1.00 0.01 15,765 0.22 0.01
12/31/13 1.00 0.00 (0.00) 1.00 0.01 13,360 0.18 0.01
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(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):
12/31/09 12/31/10 12/31/11 12/31/12 12/31/13
-------- -------- -------- -------- --------
Class A............. 0.21% 0.64% 0.76% 0.72% 0.75%
Class I............. 0.34 0.51 0.60 0.62 0.68
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(4) Total return includes the effect of payments by an affiliate. Without these
payments, the total return would have been (0.88)% for Class A shares and
would have remained unchanged for Class I shares.
(5) 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
10
SUNAMERICA MONEY MARKET FUND
PORTFOLIO PROFILE -- DECEMBER 31, 2013 -- (UNAUDITED)
INDUSTRY ALLOCATION*
U.S. Government Agencies.......... 37.8%
Foreign Banks..................... 13.9
U.S. Government Treasuries........ 11.4
Money Center Banks................ 10.6
Repurchase Agreement.............. 5.3
Commercial Banks-Canadian......... 4.4
Domestic Bank..................... 3.7
Commercial Banks.................. 3.7
Finance........................... 3.0
Diversified Financial Services.... 2.6
Cosmetics-Toiletries.............. 1.9
Super-Regional Banks-US........... 1.7
-----
100.0%
=====
Weighted average days to maturity. 39.5
|
CREDIT QUALITY ALLOCATION@#
A-1......................... 99.3%
A-2......................... 0.6
Not Rated+.................. 0.1
-----
100.0%
=====
|
* Calculated as a percentage of net assets.
@ Source: Standard and Poors
# Calculated as a percentage of total debt issues.
+ Represents debt issues that have either no rating or the rating is
unavailable from the date source.
11
SUNAMERICA MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS -- DECEMBER 31, 2013
PRINCIPAL VALUE
SECURITY DESCRIPTION AMOUNT (NOTE 2)
SHORT-TERM INVESTMENT SECURITIES -- 94.7%
CERTIFICATES OF DEPOSIT -- 25.6%
Citibank NA
0.20% due 03/19/2014............... $15,500,000 $ 15,500,000
Deutsche Bank AG NY FRS
0.44% due 01/01/2014............... 14,100,000 14,100,000
Nordea Bank Finland PLC NY
0.22% due 03/12/2014............... 14,350,000 14,350,000
Nordea Bank Finland PLC NY FRS
0.71% due 01/27/2014............... 10,500,000 10,504,094
Rabobank Nederland NV NY FRS
0.28% due 09/03/2014............... 5,950,000 5,950,000
Rabobank Nederland NV NY FRS
0.30% due 01/31/2014............... 14,250,000 14,250,000
Rabobank Nederland NV NY FRS
0.32% due 12/23/2014............... 13,500,000 13,500,000
Royal Bank of Canada NY FRS
0.26% due 10/17/2014............... 5,500,000 5,500,000
Royal Bank of Canada NY FRS
0.28% due 06/17/2014............... 14,150,000 14,151,314
Royal Bank of Canada NY FRS
0.33% due 01/06/2014............... 13,500,000 13,500,000
Svenska Handelsbanken NY
0.21% due 05/27/2014............... 16,200,000 16,200,328
Svenska Handelsbanken NY FRS
0.41% due 11/17/2014............... 13,000,000 13,019,862
UBS AG Stamford CT FRS
0.31% due 01/21/2014............... 13,750,000 13,750,000
Wells Fargo Bank NA
0.18% due 01/15/2014............... 14,000,000 14,000,000
Wells Fargo Bank NA FRS
0.18% due 03/11/2014............... 14,100,000 14,100,000
------------
TOTAL CERTIFICATES OF DEPOSIT
(amortized cost $192,375,598)..... 192,375,598
------------
COMMERCIAL PAPER -- 8.9%
Credit Agricole North America, Inc.
0.01% due 01/02/2014............... 25,000,000 24,999,993
JPMorgan Chase & Co. FRS
0.22% due 03/04/2014............... 14,200,000 14,200,000
State Street Corp.
0.15% due 02/04/2014............... 13,250,000 13,248,123
State Street Corp.
0.16% due 01/09/2014............... 14,250,000 14,249,493
------------
TOTAL COMMERCIAL PAPER
(amortized cost $66,697,609)...... 66,697,609
------------
U.S. CORPORATE BONDS & NOTES -- 7.7%
Bank of America NA
0.23% due 01/24/2014............... 13,000,000 13,000,000
Barclays Bank PLC
2.38% due 01/13/2014............... 5,600,000 5,603,542
Citigroup, Inc. FRS
0.37% due 03/07/2014............... 4,250,000 4,248,703
General Electric Capital Corp. FRS
1.09% due 01/07/2014............... 7,500,000 7,501,121
JPMorgan Chase Bank NA FRS
0.32% due 01/07/2015(3)............ 11,400,000 11,400,000
Procter & Gamble Co. FRS
0.16% due 02/06/2014............... 14,100,000 14,099,775
|
PRINCIPAL VALUE
SECURITY DESCRIPTION AMOUNT (NOTE 2)
-------------------------------------------------------------
UBS AG Stamford CT
2.25% due 01/28/2014................ $ 2,000,000 $ 2,002,829
-----------
TOTAL U.S. CORPORATE BONDS & NOTES
(amortized cost $57,855,970)....... 57,855,970
-----------
MEDIUM TERM NOTES -- 3.3%
Barclays Bank PLC FRS
1.11% due 01/13/2014................ 5,600,000 5,601,465
General Electric Capital Corp. FRS
0.87% due 04/07/2014................ 9,750,000 9,768,151
General Electric Capital Corp. FRS
0.94% due 04/24/2014................ 5,000,000 5,012,081
JPMorgan Chase & Co. FRS
0.99% due 05/02/2014................ 4,250,000 4,259,678
-----------
TOTAL MEDIUM TERM NOTES
(amortized cost $24,641,375)....... 24,641,375
-----------
U.S. GOVERNMENT AGENCIES -- 37.8%
Agency for International Development
Panama FRS
0.58% due 05/15/2015(3)............. 412,624 412,816
Federal Farm Credit Bank
0.09% due 03/24/2014................ 9,000,000 8,998,155
0.14% due 02/10/2014............... 5,500,000 5,499,144
0.25% due 06/11/2014............... 12,400,000 12,406,935
Federal Farm Credit Bank FRS
0.06% due 05/13/2014................ 5,500,000 5,499,186
0.09% due 07/01/2014............... 5,600,000 5,599,293
0.10% due 02/19/2014............... 5,600,000 5,600,000
0.13% due 03/18/2014............... 5,500,000 5,500,126
0.20% due 09/29/2014............... 8,750,000 8,755,269
0.21% due 03/26/2014............... 14,950,000 14,951,194
0.26% due 07/14/2014............... 1,600,000 1,601,293
Federal Home Loan Bank
0.04% due 01/17/2014................ 13,250,000 13,249,764
0.04% due 01/22/2014............... 7,240,000 7,239,831
0.05% due 01/06/2014............... 7,750,000 7,749,946
0.06% due 01/08/2014............... 14,500,000 14,499,831
0.06% due 02/07/2014............... 14,500,000 14,499,106
0.06% due 02/11/2014............... 8,400,000 8,399,426
0.12% due 02/21/2014............... 7,350,000 7,348,750
0.12% due 04/29/2014............... 14,450,000 14,444,316
0.14% due 01/21/2014............... 13,000,000 12,998,989
0.15% due 09/16/2014............... 7,350,000 7,342,099
0.18% due 06/19/2014............... 7,700,000 7,693,493
0.18% due 06/26/2014............... 6,500,000 6,494,280
0.20% due 07/29/2014............... 5,700,000 5,700,000
Federal Home Loan Bank FRS
0.09% due 01/16/2014................ 1,250,000 1,250,000
0.10% due 09/02/2014............... 11,500,000 11,499,615
0.11% due 06/06/2014............... 500,000 499,992
0.12% due 04/01/2014............... 4,750,000 4,750,237
Federal Home Loan Mtg. Corp.
0.10% due 02/18/2014................ 5,500,000 5,499,267
0.17% due 02/24/2014............... 5,700,000 5,698,546
0.18% due 02/24/2014............... 6,200,000 6,198,326
1.38% due 02/25/2014............... 2,447,000 2,451,450
Federal National Mtg. Assoc.
0.16% due 02/03/2014................ 12,000,000 11,998,240
|
12
SUNAMERICA MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS -- DECEMBER 31, 2013 -- (CONTINUED)
PRINCIPAL VALUE
SECURITY DESCRIPTION AMOUNT (NOTE 2)
U.S. GOVERNMENT AGENCIES (CONTINUED)
1.25% due 02/27/2014............ $ 7,600,000 $ 7,612,981
2.50% due 05/15/2014............ 4,000,000 4,033,963
Federal National Mtg. Assoc. FRS
0.28% due 03/04/2014............. 1,298,000 1,298,334
0.34% due 08/11/2014............ 8,500,000 8,513,169
0.36% due 06/23/2014............ 9,600,000 9,611,402
------------
TOTAL U.S. GOVERNMENT AGENCIES
(amortized cost $283,398,764)... 283,398,764
------------
U.S. GOVERNMENT TREASURIES -- 11.4%
United States Treasury Bills
0.01% due 01/16/2014............. 14,100,000 14,099,941
0.02% due 01/02/2014............ 20,000,000 19,999,986
0.07% due 01/30/2014............ 3,000,000 2,999,831
0.08% due 03/06/2014............ 20,250,000 20,247,177
United States Treasury Notes
0.25% due 01/31/2014............. 750,000 750,045
1.00% due 01/15/2014............ 6,650,000 6,652,094
1.00% due 05/15/2014............ 12,500,000 12,537,859
1.75% due 01/31/2014............ 8,400,000 8,411,561
------------
TOTAL U.S. GOVERNMENT TREASURIES
(amortized cost $85,698,494).... 85,698,494
------------
TOTAL SHORT-TERM INVESTMENT SECURITIES -- 94.7%
(amortized cost $710,667,810)... 710,667,810
------------
|
PRINCIPAL VALUE
SECURITY DESCRIPTION AMOUNT (NOTE 2)
--------------------------------------------------------------
REPURCHASE AGREEMENT -- 5.3%
State Street Bank and Trust Co.
Joint Repurchase Agreement(1)
(amortized cost $39,436,000)....... $39,436,000 $ 39,436,000
------------
TOTAL INVESTMENTS
(amortized cost $750,103,810) (2). 100.0% 750,103,810
OTHER ASSETS LESS LIABILITIES....... 0.0 198,412
----------- ------------
NET ASSETS.......................... 100.0% $750,302,222
=========== ============
|
(1)See Note 2 for details of Joint Repurchase Agreements.
(2)At December 31, 2013, the cost of securities for federal income tax purposes
was the same for book purposes.
(3)The security's effective maturity date is less than one year.
FRS--FloatingRate Securities
The rates shown on FRS are the current interest rates at December 31, 2013 and
unless noted otherwise, the dates shown are the original maturity dates.
The following is a summary of the inputs used to value the Fund's net assets as
of December 31, 2013 (see Note 2):
LEVEL 1--UNADJUSTED LEVEL 2--OTHER LEVEL 3--SIGNIFICANT
QUOTED PRICES OBSERVABLE INPUTS UNOBSERVABLE INPUTS TOTAL
------------------- ----------------- -------------------- ------------
Assets:
Short-Term Investment Securities:
Certificates of Deposit........... $-- $192,375,598 $-- $192,375,598
Commercial Paper.................. -- 66,697,609 -- 66,697,609
U.S. Corporate Bonds & Notes...... -- 57,855,970 -- 57,855,970
Medium Term Notes................. -- 24,641,375 -- 24,641,375
U.S. Government Agencies.......... -- 283,398,764 -- 283,398,764
U.S. Government Treasuries........ -- 85,698,494 -- 85,698,494
Repurchase Agreement............... -- 39,436,000 -- 39,436,000
--- ------------ --- ------------
TOTAL................................ $-- $750,103,810 $-- $750,103,810
=== ============ === ============
|
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 Note to Financial Statements
13
SUNAMERICA MONEY MARKET FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS -- DECEMBER 31, 2013
Note 1. Organization
SunAmerica Money Market Funds, Inc. (the "Corporation") is an open-end
diversified management investment company organized as a Maryland
corporation. The Corporation consists of one series -- SunAmerica Money
Market Fund ("the Fund"). The Fund is advised by SunAmerica Asset
Management, LLC. (formerly SunAmerica Asset Management Corp.)* ("SunAmerica"
or "Adviser"), an indirect wholly-owned subsidiary of American International
Group, Inc. ("AIG"). The investment objective of the Fund is to seek as high
a level of current income as is consistent with liquidity and stability of
capital by investing primarily in high-quality money market instruments
selected principally on the basis of quality and yield.
The Fund currently offers two classes of shares: Class A and Class I. These
classes within the Fund are presented in the Statement of Assets and
Liabilities. The cost structure for each class is as follows:
Class A shares-- Class A shares are available with no front-end sales
charge. A 1.00% contingent deferred sales charge ("CDSC")
is imposed on certain shares sold within one year of
original purchase and a 0.50% CDSC is imposed on certain
shares sold after the first year and within the second year
after purchase, as described in the Fund's Prospectus.
Class I shares-- Class I shares are offered at net asset value per share
without any sales charge, exclusively to certain
institutions.
Each class of shares bears the same voting, dividend, liquidation and other
rights and conditions, except as may otherwise be provided in the Fund's
registration statement.
INDEMNIFICATIONS: The Corporation's organizational documents provide current
and former officers and directors with a limited indemnification against
liabilities arising out of the performance of their duties to the
Corporation. In addition, pursuant to Indemnification Agreements between the
Corporation and each of the current directors who is not an "interested
person," as defined in Section 2(a)(19) of the Investment Company Act of
1940, as amended (the "1940 Act"), of the Corporation (collectively, the
"Disinterested Directors"), the Corporation provides the Disinterested
Directors with a limited indemnification against liabilities arising out of
the performance of their duties to the Corporation, whether such liabilities
are asserted during or after their service as directors. In addition, in the
normal course of business the Corporation enters into contracts that contain
the obligation to indemnify others. The Corporation's maximum exposure under
these arrangements is unknown. Currently, however, the Corporation expects
the risk of loss to be remote.
Note 2. Significant Accounting Policies
The preparation of financial statements in accordance with U.S. generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts and disclosures in the
financial statements. Actual results could differ from these estimates and
those differences could be significant. The following is a summary of
significant accounting policies followed by the Fund in the preparation of
its financial statements:
SECURITY VALUATIONS: In accordance with the authoritative guidance on fair
value measurements and disclosures under accounting principles generally
accepted in the United States of America ("GAAP"), the Fund discloses the
fair value of its investments in a hierarchy that prioritizes the inputs to
valuation techniques used to measure the fair value. In accordance with
GAAP, fair value is defined as the price that the Fund would receive upon
selling an asset or transferring a liability in a timely transaction to an
independent third party in the principal or most advantageous market. GAAP
established a three-tier hierarchy to provide more transparency around the
inputs used to measure fair value and to establish classification of fair
value measurements for disclosure purposes. Inputs refer broadly to the
assumptions that market participants would use in pricing the asset or
liability, including assumptions about risk. Inputs may be observable or
unobservable. Observable inputs are inputs that reflect the assumptions
market participants would use in
* Effective upon the close of business on December 31, 2013, SunAmerica Asset
Management Corp. was reorganized as a Delaware limited liability company and
its name concurrently changed to SunAmerica Asset Management, LLC.
14
SUNAMERICA MONEY MARKET FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS -- DECEMBER 31, 2013 -- (CONTINUED)
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 Corporation's Board of Directors ("Board"), etc.)
Level 3 -- Significant unobservable inputs (includes inputs that reflect
the Funds' own assumptions about the assumptions market participants would
use in pricing the security, developed based on the best information
available under the circumstances)
Changes in valuation techniques may result in transfers in or out of an
investment's assigned Level within the hierarchy. The methodology used for
valuing investments are not necessarily an indication of the risk associated
with investing in those investments and the determination of the
significance of a particular input to the fair value measurement in its
entirety requires judgment and consideration of factors specific to each
security.
The availability of observable inputs can vary from security to security and
is affected by a wide variety of factors, including, for example, the type
of security, whether the security is recently issued and not yet established
in the marketplace, the liquidity of markets, and other characteristics
particular to the security. To the extent that valuation is based on models
or inputs that are less observable or unobservable in the market, the
determination of fair value requires more judgment. Accordingly, the degree
of judgment exercised in determining fair value is greatest for instruments
categorized in Level 3.
The summary of the inputs used to value the Fund's net assets as of
December 31, 2013 are reported on a schedule following the Portfolio of
Investments.
Portfolio securities are valued at amortized cost, which approximates market
value, and are generally categorized as Level 2. The amortized cost method
involves valuing a security at its cost on the date of purchase and
thereafter assuming a constant amortization to maturity of any discount or
premium. In accordance with rule 2a-7 under the 1940 Act, the Board has
adopted procedures intended to stabilize the Fund's net asset value per
share at $1.00. These procedures include the determination, at such
intervals as the Board deems appropriate and reasonable in light of current
market conditions, of the extent, if any, to which the Fund's market-based
net asset value per share deviates from the Fund's amortized cost per share.
The calculation of such deviation is referred to as "Shadow Pricing". For
purposes of these market-based valuations, securities for which market
quotations are not readily available are fair valued, as determined pursuant
to procedures adopted in good faith by the Board.
The Board is responsible for the share valuation process and has adopted a
policy and procedures (the "PRC Procedures") for valuing the securities and
other assets held by the Fund, including procedures for the fair valuation
of securities and other assets for which market quotations are not readily
available or are unreliable. The PRC Procedures provide for the
establishment of a pricing review committee, which is responsible for, among
other things, making certain determinations in connection with the Fund's
fair valuation procedures. Securities for which market quotations are not
readily available or the values of which may be significantly impacted by
the occurrence of developments or significant events are generally
categorized as Level 3. There is no single standard for making fair value
determinations, which may result in prices that vary from those of other
funds.
15
SUNAMERICA MONEY MARKET FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS -- DECEMBER 31, 2013 -- (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, 2013, the following tables represent financial assets and
liabilities (by type) on a gross basis and related collateral pledged for
financial instruments subject to master netting arrangements:
ASSETS:
-------
GROSS NET AMOUNTS
GROSS AMOUNTS OFFSET OF ASSETS PRESENTED
AMOUNTS OF IN THE STATEMENT OF IN THE STATEMENT OF
DESCRIPTION: RECOGNIZED ASSETS ASSETS AND LIABILITIES ASSETS AND LIABILITIES
------------ ------------------------- ---------------------- ----------------------
Repurchase agreements,
subject to a master netting
arrangement or similar
arrangement................. $39,436,000 $ -- $39,436,000
=========== ============ ===========
GROSS AMOUNTS NOT OFFSET IN THE
STATEMENT OF ASSETS AND LIABILITIES
- NET AMOUNTS ---------------------------------------------
OF ASSETS
IN THE STATEMENT FINANCIAL CASH COLLATERAL
COUNTERPARTY: OF ASSETS AND LIABILITIES INSTRUMENTS@ RECEIVED@ NET AMOUNT#
------------- ------------------------- ---------------------- ---------------------- -----------
State Street Bank and Trust
Co.......................... $39,436,000 ($39,436,000) $ -- $ --
=========== ============ =========== ====
|
@ For each respective counterparty, collateral received or (pledged) is
limited to an amount not to exceed 100% of the net amount of the
financial asset/liability in the table above.
# Net amount represents the net amount due from (due to) the
counterparty in the event of a default based on the contractual
set-off rights under the master netting arrangement.
REPURCHASE AGREEMENTS: The Fund, along with other affiliated registered
investment companies, pursuant to procedures adopted by the Board and
applicable guidance from the Securities and Exchange Commission (the "SEC"),
may transfer uninvested cash balances into a single joint account, the daily
aggregate balance of which is invested in one or more repurchase agreements
collateralized by U.S. Treasury or federal agency obligations. In a
repurchase agreement, the seller of a security agrees to repurchase the
security at a mutually agreed-upon time and price, which reflects the
effective rate of return for the term of the agreement. For repurchase
agreements and joint repurchase agreements, the Fund's custodian takes
possession of the collateral pledged for investments in such repurchase
agreements. The underlying collateral is valued daily on a mark-to-market
basis, plus accrued interest, to ensure that the value, at the time the
agreement is entered into, is equal to at least 102% of the repurchase
price, including accrued interest. In the event of default of the obligation
to repurchase, the Fund has the right to liquidate the collateral and apply
the proceeds in satisfaction of the obligation. If the seller defaults and
the value of the collateral declines or if bankruptcy proceedings are
commenced with respect to the seller of the security, realization of the
collateral by the Fund may be delayed or limited.
16
SUNAMERICA MONEY MARKET FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS -- DECEMBER 31, 2013 -- (CONTINUED)
As of December 31, 2013, the Fund held an undivided interest in the joint
repurchase agreement with State Street Bank and Trust Co.:
PERCENTAGE PRINCIPAL
OWNERSHIP AMOUNT
---------- -----------
Money Market Fund............. 25.54% $39,436,000
|
As of such date, the repurchase agreement in that joint account and the
collateral therefore were as follows:
State Street Bank and Trust Co., dated December 31, 2013, bearing interest
at a rate of 0.00% per annum, with a principal amount of $154,381,000, a
repurchase price of $154,381,000, and a maturity date of January 2, 2014.
The repurchase agreement is collateralized by the following:
INTEREST MATURITY
TYPE OF COLLATERAL RATE RATE PRINCIPAL AMOUNT VALUE
------------------ -------- ---------- ---------------- ------------
U.S. Treasury Notes........... 2.13% 08/15/2021 $ 55,215,000 $ 53,995,356
U.S. Treasury Notes........... 2.50 03/31/2015 100,000,000 103,476,600
|
SECURITIES TRANSACTIONS, INVESTMENT INCOME, EXPENSES, DIVIDENDS AND
DISTRIBUTIONS TO SHAREHOLDERS: Security transactions are recorded on a trade
date basis. Realized gains and losses on sales of investments are calculated
on the identified cost basis. Interest income, including the accretion of
discount and amortization of premium, is accrued daily from settlement date,
except when collection is not expected; dividend income is recorded on the
ex-dividend date.
Net investment income, other than class specific expenses, and realized and
unrealized gains and losses, are allocated daily to each class of shares
based upon the relative net asset value of outstanding shares (or the value
of the dividend-eligible shares, as appropriate) of each class of shares at
the beginning of the day (after adjusting for the current capital shares
activity of the respective class).
Dividends from net investment income, if any, are normally declared daily
and paid monthly. Capital gain distributions, if any, are paid annually. The
Fund records dividends and distributions to its shareholders on the
ex-dividend date. The amount of dividends and distributions from net
investment income and net realized capital gains are determined in
accordance with federal income tax regulations, which may differ from U.S.
generally accepted accounting principles. These "book/tax" differences are
either considered temporary or permanent in nature. To the extent these
differences are permanent in nature, such amounts are reclassified within
the capital accounts at fiscal year end based on their federal tax-basis
treatment; temporary differences do not require reclassification. Net assets
are not affected by these reclassifications.
The Fund is considered a separate entity for tax purposes and intends to
comply with the requirements of the Internal Revenue Code, as amended,
applicable to regulated investment companies and distribute all of its
taxable income, including any net capital gains on investments, to its
shareholders. The Fund also intends to distribute sufficient net investment
income and net capital gains, if any, so that the Fund will not be subject
to excise tax on undistributed income and gains. Therefore, no federal
income tax or excise tax provision is required.
The Fund recognizes the tax benefits of uncertain tax positions only when
the position is more likely than not to be sustained, assuming examination
by tax authorities. Management has analyzed the Fund's tax positions and
concluded that no liability for unrecognized tax benefits should be recorded
related to uncertain tax positions taken on returns filed for open tax years
2010-2012 or expected to be taken in the Fund's 2013 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
2010.
17
SUNAMERICA MONEY MARKET FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS -- DECEMBER 31, 2013 -- (CONTINUED)
NEW ACCOUNTING PRONOUNCEMENTS: In December 2011, the FASB issued Accounting
Standards Update ("ASU") No. 2011-11, "Disclosures about Offsetting Assets
and Liabilities", which was subsequently clarified in ASU 2013-01
"Clarifying the Scope of Disclosures about Offsetting Assets and
Liabilities" which was issued in January 2013. The amended Standard requires
an entity to disclose information about offsetting and related arrangements
to enable users of its financial statements to understand the effect of
those arrangements on its financial position. The new and revised
disclosures are effective for annual reporting periods beginning on or after
January 1, 2013 and interim periods within those annual periods. All
required changes to accounting policies have been made in accordance with
ASU No. 2011-11 and No. 2013-01.
Note 3. Investment Advisory and Management Agreement, Distribution and Service
Agreement and Other Transactions With Affiliates
The Fund has entered into an Investment Advisory and Management Agreement
(the "Advisory Agreement") with SunAmerica. Under the Advisory Agreement,
SunAmerica provides continuous supervision of the Fund and administers its
corporate affairs, subject to general review by the Board. In connection
therewith, SunAmerica furnishes the Fund with office facilities, maintains
certain of its books and records, and pays the salaries and expenses of all
personnel, including officers of the Fund who are employees of SunAmerica
and its affiliates.
The Fund will pay SunAmerica a monthly management fee at the following
annual percentages, based on the average daily net assets of the Fund: 0.50%
on the first $600 million; 0.45% on the next $900 million; and 0.40% over
$1.5 billion.
SunAmerica has contractually agreed to waive fees and/or reimburse expenses
to the extent necessary to cap the Fund's annual fund operating expenses at
0.80% for Class I, of average net assets. For purposes of the waived fee
and/or reimbursed expense calculations, annual Fund operating expenses shall
not include extraordinary expenses, as determined under generally accepted
accounting principles, or acquired fund fees and expenses. This fee waiver
and expense reimbursement will continue in effect indefinitely, unless
terminated by the Board, including a majority of the Disinterested
Directors. For the year ended December 31, 2013, pursuant to the contractual
expense limitations, SunAmerica waived fees and/or reimbursed expenses of
$11,144 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, 2013,
SunAmerica voluntarily waived fees and/or reimbursed expenses of $4,298,287
and $87,701 for Class A and Class I, respectively.
The Fund has entered into a Distribution Agreement with SunAmerica Capital
Services, Inc. ("SACS" or the "Distributor"), an affiliate of the Adviser.
The Fund has adopted a Distribution Plan on behalf of its Class A shares
(the "Plan") in accordance with the provisions of Rule 12b-1 under the 1940
Act. In adopting the Plan, the Board determined that there was a reasonable
likelihood that the Plan would benefit the Fund and the shareholders of the
respective class. The sales charge and distribution fees of a particular
class will not be used to subsidize the sale of shares of any other class.
The Plan provides that the Class A shares of the Fund shall pay the
Distributor an account maintenance fee at the annual rate of up to 0.15% of
the aggregate average daily net assets of such class of shares for payments
to compensate the Distributor and certain securities firms for account
maintenance activities. In this regard, some payments are used to compensate
broker-dealers with account maintenance fees in an amount up to 0.15% per
year of the assets maintained in the Fund by their customers. Accordingly,
SACS received fees (see Statement of Operations) based upon the
aforementioned rates. In addition, in light of current market conditions,
and in order to avoid a negative yield on Class A shares of the Fund, SACS
has agreed to waive up to 0.15% of the fees it receives under the Plans.
This voluntary waiver may be terminated at any time at the option of the
Distributor without notice to shareholders. For the year ended December 31,
2013, SACS voluntarily waived fees as follows: Class A $1,069,851.
18
SUNAMERICA MONEY MARKET FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS -- DECEMBER 31, 2013 -- (CONTINUED)
SACS receives the proceeds of contingent deferred sales charges paid by
investors in connection with certain redemptions of the Fund's Class A
shares. SACS has advised the Fund for the year ended December 31, 2013, the
proceeds received from redemptions are as follows:
Class A..................................................... $561
|
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, 2013, the Fund incurred the following expenses which are
included in the transfer agent fees and expenses payable line in the
Statement of Assets and Liabilities and in transfer agent fees and expenses
in the Statement of Operations to compensate SAFS pursuant to the terms of
the Service Agreement:
PAYABLE AT
FUND EXPENSES DECEMBER 31, 2013
---- ---------- -----------------
Money Market Class A.......... $1,565,739 $134,241
Money Market Class I.......... 32,097 2,544
|
As of December 31, 2013, 86.5% of the Fund's total outstanding shares were
held through Pershing LLC in a brokerage account sweep vehicle for customers
of the broker-dealers within Advisor Group, Inc., an affiliate of the
Adviser.
Note 4. Federal Income Taxes
The following details the tax basis distributions as well as the components
of distributable earnings. The tax basis components of distributable
earnings differ from the amounts reflected in the Statement of Assets and
Liabilities by temporary book/tax differences primarily arising from post
October capital loss deferrals, dividends payable, and cumulative pension
expenses.
DISTRIBUTABLE EARNINGS TAX DISTRIBUTIONS
---------------------------------------- ---------------------------------------------------------------------------
FOR THE YEAR ENDED DECEMBER 31, 2013 FOR THE YEAR ENDED DECEMBER 31, 2013 FOR THE YEAR ENDED DECEMBER 31, 2012
---------------------------------------- ------------------------------------- -------------------------------------
LONG-TERM GAINS/ UNREALIZED LONG-TERM LONG-TERM
ORDINARY CAPITAL AND APPRECIATION ORDINARY CAPITAL ORDINARY CAPITAL
INCOME OTHER LOSSES (DEPRECIATION) INCOME GAINS INCOME GAINS
-------- ---------------- -------------- -------- --------- -------- ---------
$ -- $(1,161,901) $ -- $72,895 $ -- $68,267 $ --
|
At December 31, 2013, for Federal income tax purposes, the Fund has capital
loss carryforwards available to offset future capital gains of $1,161,901
expiring in 2016 and $0 unlimited capital losses.+
During the year ended December 31, 2013, the Fund utilized $28,846 of
capital loss carryforwards to offset current year capital gains.
Under the current tax law, capital losses realized after October 31 and late
year ordinary losses may be deferred and treated as occurring on the first
day of the following year. For the fiscal year ended December 31, 2013, Fund
elected to defer post October long-term capital losses in the amount of $69.
+ On December 22, 2010, the Regulated Investment Company Modernization Act of
2010 (the "Act") was enacted which changed various technical rules governing
the tax treatment of regulated investment companies. The changes are
generally effective for taxable years beginning after the date of enactment.
Under the Act, the fund will be permitted to carry forward capital losses
incurred in taxable years beginning after the date of enactment for an
unlimited period. However, any losses incurred during those future taxable
years will be required to be utilized prior to the losses incurred in
pre-enactment taxable years, which carry an expiration date. As a result of
this ordering rule, pre-enactment capital loss carryforwards may be more
likely to expire unused. Additionally, post-enactment capital losses that
are carried forward will retain their character as either short-term or
long-term losses rather than being considered all short-term as under
previous law.
19
SUNAMERICA MONEY MARKET FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS -- DECEMBER 31, 2013 -- (CONTINUED)
Note 5. Capital Share Transactions
Transactions in each class of shares of the Funds, all at $1.00 per share,
for the year ended December 31, 2013 and for the prior year were as follows:
MONEY MARKET FUND
--------------------------------------------------------------------------
CLASS A CLASS I
------------------------------------ ------------------------------------
FOR THE YEAR ENDED FOR THE YEAR ENDED FOR THE YEAR ENDED FOR THE YEAR ENDED
DECEMBER 31, 2013 DECEMBER 31, 2012 DECEMBER 31, 2013 DECEMBER 31, 2012
------------------ ------------------ ------------------ ------------------
Shares sold............. $ 447,458,467 $ 565,144,937 $ 11,011,406 $ 9,071,617
Reinvested dividends.... 69,405 64,666 1,435 1,487
Shares redeemed......... (479,257,679) (489,099,862) (13,418,735) (8,933,377)
------------- ------------- ------------ -----------
Net increase (decrease). $ (31,729,807) $ 76,109,741 $ (2,405,894) $ 139,727
============= ============= ============ ===========
|
Note 6. Directors' Retirement Plan
The Directors of the Corporation have adopted the SunAmerica Disinterested
Trustees' and Directors' Retirement Plan (the "Retirement Plan") effective
January 1, 1993, as amended, for the Independent Directors. The Retirement
Plan provides generally that an Independent Director may become a
participant ("Participant") in the Retirement Plan if he or she has at least
10 years of consecutive service as a Disinterested Director of any of the
adopting SunAmerica mutual funds (the "Adopting Funds") or has attained the
age of 60 while a Director and completed five (5) consecutive years of
service as a Director of any Adopting Fund (an "Eligible Trustee/Director").
Pursuant to the Retirement Plan, an Eligible Director may receive benefits
upon (i) his or her death or disability while a Director or (ii) the
termination of his or her tenure as a Director, other than removal for cause
from each of the Adopting Funds with respect to which he or she is an
Eligible Director.
As of each of the first 10 birthdays after becoming a Participant and on
which he or she is both a Director and Participant, each Eligible Director
will be credited with an amount equal to 50% of his or her regular fees
(excluding committee fees) for services as a Disinterested Director of each
Adopting Fund for the calendar year in which such birthday occurs. In
addition, an amount equal to 8.50% of any amounts credited under the
preceding change during prior years is added to each Eligible Director's
account. The rights of any Participant to benefits under the Retirement Plan
shall be an unsecured claim against the assets of the Adopting Funds. An
Eligible Director may receive any benefits payable under the Retirement
Plan, at his or her election, either in one lump sum or in up to 15 annual
installments. Any undistributed amounts shall continue to accrue interest at
8.50%.
Effective December 3, 2008, the Retirement Plan was amended to, among other
things, (1) freeze the Retirement Plan as to future accruals for active
Participants as of December 31, 2008, (2) prohibit Disinterested Directors
from first becoming participants in the Retirement Plan after December 31,
2008 and (3) permit active Participants to elect to receive a distribution
of their entire Retirement Plan account balance in 2009. The freeze on
future accruals does not apply to Participants that have commenced receiving
benefits under the Retirement Plan on or before December 31, 2008.
The following amounts for the Retirement Plan Liabilities are included in
the Directors' fees and expenses payable line on the Statement of Assets and
Liabilities and the amounts for the Retirement Plan Expenses are included in
the Directors' fees and expenses line on the Statement of Operations.
RETIREMENT PLAN RETIREMENT PLAN RETIREMENT PLAN
LIABILITY EXPENSE PAYMENTS
--------------- --------------- ---------------
FUND AS OF DECEMBER 31, 2013
---- -----------------------------------------------
Money Market
Fund........................................ $9,922 $932 $7,743
|
20
SUNAMERICA MONEY MARKET FUNDS, INC.
NOTES TO FINANCIAL STATEMENTS -- DECEMBER 31, 2013 -- (CONTINUED)
Note 7. Interfund Lending Agreement
Pursuant to the exemptive relief granted by the SEC, the Fund is permitted
to participate in an interfund lending program among investment companies
advised by SunAmerica or an affiliate. The interfund lending program allows
the participating Funds to borrow money from and lend money to each other
for temporary or emergency purposes. An interfund loan will be made under
this facility only if the participating Funds receive a more favorable
interest rate than would otherwise be available from a typical bank for a
comparable transaction. For the year ended December 31, 2013, the Fund did
not participate in this program.
21
SUNAMERICA MONEY MARKET FUNDS, INC.
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Directors and Shareholders of SunAmerica Money Market Funds,
Inc.:
In our opinion, the accompanying statement of assets and liabilities, including
the portfolio of investments, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of SunAmerica Money Market Funds,
Inc. (the "Fund") at December 31, 2013, the results of its operations for the
year then ended, the changes in its net assets for each of the two years in the
period then ended and the financial highlights for each of the five years in
the period then ended, in conformity with accounting principles generally
accepted in the United States of America. These financial statements and
financial highlights (hereafter referred to as "financial statements") are the
responsibility of the Fund's management; our responsibility is to express an
opinion on these financial statements based on our audits. We conducted our
audits of these financial statements in accordance with the standards of the
Public Company Accounting Oversight Board (United States). Those standards
require that we plan and perform the audits to obtain reasonable assurance
about whether the financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, and evaluating the overall
financial statement presentation. We believe that our audits, which included
confirmation of securities at December 31, 2013 by correspondence with the
custodian and brokers, provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
Houston, Texas
February 27, 2014
22
SUNAMERICA MONEY MARKET FUNDS, INC.
DIRECTORS AND OFFICERS INFORMATION -- DECEMBER 31, 2013 -- (UNAUDITED)
The following table contains basic information regarding the Directors and
Officers who oversee operations of the Fund and other investment companies
within the Fund complex.
NUMBER OF
TERM OF FUNDS IN
NAME, POSITION(S) OFFICE AND FUND COMPLEX
ADDRESS AND HELD WITH LENGTH OF PRINCIPAL OCCUPATION(S) OVERSEEN BY OTHER DIRECTORSHIPS
AGE* THE FUND TIME SERVED(4) DURING PAST 5 YEARS DIRECTOR(1) HELD BY DIRECTOR(2)
------------------------ ----------- -------------- ------------------------ ------------ ------------------------
DISINTERESTED DIRECTORS
Dr. Judith L. Craven Director 2001- Retired. 76 Director, Sysco Corp.
Age: 68 present (1996 to present);
Director, Luby's Inc.
(1998 to present).
William F. Devin Director 2001- Retired. 76 Director, Boston Options
Age: 75 present Exchange (2001 to 2010)
Richard W. Grant Director 2011- Retired. Prior to that, 27 None
Age: 68 present attorney and Partner at
Morgan Lewis & Brockius
LLP (1989 to 2011).
Stephen J. Gutman Director 1984- Senior Vice President 27 None
Age: 70 present and Associate Broker,
The Corcoran Group (Real
Estate) (2002 to
present); Managing
Member, Beau Brummell --
Soho, LLC (Licensing of
menswear specialty
retailing) (1995 to
2009); President, SJG
Marketing, Inc (2009 to
present).
William J. Shea Director 2004- Executive Chairman, 27 Chairman of the Board,
Age: 66 present Caliber ID, Inc. Royal and SunAlliance
(medical devices) (2007 U.S.A., Inc. (2004 to
to Present); Managing 2006); Director, Boston
Partner, DLB Capital, Private Financial
LLC (private equity) Holdings (2004 to
(2006 to 2007). present); Chairman,
Demoulas Supermarkets
(1999 to Present).
INTERESTED DIRECTOR
Peter A. Harbeck(3) Director 1994- President, CEO and 76 None
Age: 60 present Director, SunAmerica
(1995 to present);
Director, -- SACS (1993
to present); Chairman,
Advisor Group, Inc.
(2004 to present).
|
23
SUNAMERICA MONEY MARKET FUNDS, INC.
DIRECTORS AND OFFICERS INFORMATION -- DECEMBER 31, 2013 -- (UNAUDITED)
(CONTINUED)
The following table contains basic information regarding the Directors and
Officers who oversee operations of the Fund and other investment companies
within the Fund complex.
NUMBER OF
TERM OF FUNDS IN
NAME, POSITION(S) OFFICE AND FUND COMPLEX
ADDRESS AND HELD WITH LENGTH OF PRINCIPAL OCCUPATIONS OVERSEEN BY OTHER DIRECTORSHIPS
AGE* THE FUND TIME SERVED(4) DURING PAST 5 YEARS DIRECTOR(1) HELD BY DIRECTOR(2)
------------------- ------------ -------------- ----------------------------- ------------ -------------------
OFFICERS
John T. Genoy President 2007- Chief Financial Officer, N/A N/A
Age: 45 present SunAmerica (2002 to
present); Senior Vice
President, SunAmerica
(2003 to present); Chief
Operating Officer,
SunAmerica (2006 to
present).
Donna M. Handel Treasurer 2002- Senior Vice President, N/A N/A
Age: 47 present SunAmerica (2004 to
present).
Gregory N. Bressler Secretary 2005- Senior Vice President and N/A N/A
Age: 47 present General Counsel,
SunAmerica (2005 to
present).
James Nichols Vice 2006- Director, President and N/A N/A
Age: 47 President present CEO, SACS (2006 to
present); Senior Vice
President, SACS (2002 to
2006); Senior Vice President
SunAmerica (2002 to
present).
Kathleen D. Fuentes Chief Legal 2013- Vice President and Deputy N/A N/A
Age: 44 Officer and present General Counsel (2006-
Assistant present)
Secretary
Timothy Pettee Vice August Chief Investment Strategist N/A N/A
Age: 55 President 2008- (2013 to present); Chief
present Investment Officer,
SunAmerica (2003 to 2013).
Katherine Stoner Vice 2011- Vice President, SunAmerica N/A N/A
Age: 57 President present (2011 to present); Vice
and Chief President, The Variable
Compliance Annuity Life Insurance
Officer Company ("VALIC"),
Western National Life
Insurance Company ("WNL")
and American General
Distributors, Inc. (2006 to
present); Deputy General
Counsel and Secretary,
VALIC and WNL (2007 to
May 2011); Vice President,
VALIC Financial Advisors,
Inc. (2010 to 2011) and
VALIC Retirement Services
Company (2010 to present).
|
24
SUNAMERICA MONEY MARKET FUNDS, INC.
DIRECTORS AND OFFICERS INFORMATION -- DECEMBER 31, 2013 -- (UNAUDITED)
(CONTINUED)
NUMBER OF
TERM OF FUNDS IN
NAME, POSITION(S) OFFICE AND FUND COMPLEX
ADDRESS AND HELD WITH LENGTH OF PRINCIPAL OCCUPATIONS OVERSEEN BY OTHER DIRECTORSHIPS
AGE* THE FUND TIME SERVED(4) DURING PAST 5 YEARS DIRECTOR(1) HELD BY DIRECTOR(2)
-------------------- ----------- -------------- --------------------------- ------------ -------------------
Gregory R. Kingston Vice 2002- Vice President, SunAmerica N/A N/A
Age: 48 President present (2001 to present).
and
Assistant
Treasurer
Nori L. Gabert Vice 2005- Vice President and Deputy N/A N/A
Age: 60 President present General Counsel,
and SunAmerica (2005 to
Assistant present).
Secretary
Thomas D. Peeney Assistant 2013 to Vice President, Assistant N/A N/A
Age: 40 Secretary Present General Counsel
SunAmerica (2013 to
Present); Attorney, Paul
Hastings LLP (2006-2013).
Diedre L. Shepherd Assistant 2008 to Assistant Vice President, N/A N/A
Age: 38 Treasurer Present SunAmerica (2008 to
present).
Matthew J. Hackethal Anti-Money 2006- Chief Compliance Officer, N/A N/A
Age: 42 Laundering present SunAmerica (2006 to
Compliance present); Vice President,
Officer Credit Suisse Asset
Management LLC (2005 to
2006).
|
* The business address for each Director and Officer is Harborside Financial
Center, 3200 Plaza 5, Jersey City, NJ 07311-4992.
(1) The "Fund Complex" means two or more registered investment companies that
hold themselves out to investors as related companies for purposes of
investment services or have a common investment adviser or an investment
adviser that is an affiliated person of the Adviser. The "Fund Complex"
includes the Fund (1 fund), SunAmerica Equity Funds (2 funds), SunAmerica
Income Funds (4 funds), SunAmerica Series, Inc. (4 portfolios), Anchor
Series Trust (8 portfolios), SunAmerica Senior Floating Rate Fund, Inc. (1
fund), SunAmerica Series Trust (40 portfolios), SunAmerica Specialty Series
(7 funds), VALIC Company I (34 funds), VALIC Company II (15 funds) and
Seasons Series Trust (21 portfolios).
(2) Directorships of companies required to report to the SEC under the
Securities Exchange Act of 1934 (i.e. "public companies") or other
investment companies registered under the 1940 Act, other than those listed
under the preceding column.
(3) Interested Director, as defined in the 1940 Act, because he or she is an
officer and a director of the Adviser and a director of the principal
underwriter of the Fund.
(4) Directors serve until their successors are duly elected and qualified,
subject to the Directors' retirement plan as discussed in Note 6 of the
financial statements. Each officer will hold office for an indefinite term
until the date he or she resigns or retires or until his/her successor is
duly elected and qualifies.
Additional information concerning the Directors is contained in the Statement
of Additional Information which is available without charge by calling (800)
858-8850.
25
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, 2013. The information necessary to complete your income
tax returns is included with your Form 1099-DIV, which will be mailed to you in
early 2014.
26
[LOGO] AIG Sun America
Mutual Funds
HARBORSIDE FINANCIAL CENTER
3200 PLAZA 5
JERSEY CITY, NJ 07311-4992
DIRECTORS/TRUSTEES TRANSFER AGENT DISCLOSURE OF QUARTERLY
Dr. Judith L. Craven State Street Bank and PORTFOLIO HOLDINGS
William F. Devin Trust Company The Fund is required to
Richard W. Grant P.O. Box 219373 file its complete
Stephen J. Gutman Kansas City, MO 64141 schedule of portfolio
Peter A. Harbeck holdings with the U.S.
William J. Shea CUSTODIAN Securities and Exchange
State Street Bank and Commission for its first
OFFICERS Trust Company and third fiscal quarters
John T. Genoy, President P.O. Box 5607 on Form N-Q. The Fund's
and Chief Executive Boston, MA 02110 Forms N-Q are available
Officer on the U.S. Securities
Donna M. Handel, VOTING PROXIES ON FUND and Exchange Commission's
Treasurer PORTFOLIO SECURITIES website at
James Nichols, Vice A description of the http://www.sec.gov. You
President policies and procedures can also review and
Katherine Stoner, Chief that the Funds use to obtain copies of the
Compliance Officer determine how to vote Forms N-Q at the U.S.
Gregory N. Bressler, proxies relating to Securities and Exchange
Secretary securities held in the Commission's Public
Nori L. Gabert, Vice Funds' portfolios which Reference Room in
President and is available in the Washington, DC
Assistant Secretary Funds' Statement of (information on the
Kathleen Fuentes, Chief Additional Information operation of the Public
Legal Officer and may be obtained without Reference Room may be
Assistant Secretary charge upon request, by obtained by calling
Timothy P. Pettee, Vice calling (800) 858-8850. 1-800-SEC-0330).
President This information is also
Thomas D. Peeney, available from the EDGAR PROXY VOTING RECORD ON
Assistant Secretary database on the U.S. FUND PORTFOLIO SECURITIES
Gregory R. Kingston, Securities and Exchange Information regarding how
Vice President and Commission's website at the Funds voted proxies
Assistant Treasurer http://www.sec.gov. relating to securities
Diedre L. Shepherd, held in the Fund's
Assistant Treasurer DELIVERY OF SHAREHOLDER portfolio during the most
Matthew J. Hackethal, DOCUMENTS recent twelve month
Anti-Money Laundering The Funds have adopted a period ended June 30 is
Compliance Officer policy that allows them available, once filed
to send only one copy of with the U.S. Securities
INVESTMENT ADVISER a Fund's prospectus, and Exchange Commission,
SunAmerica Asset proxy material, annual without charge, upon
Management, LLC. report and semi-annual request, by calling (800)
Harborside Financial report (the "shareholder 858-8850 or on the U.S.
Center documents") to Securities and Exchange
3200 Plaza 5 shareholders with Commission's website at
Jersey City, NJ multiple accounts http://www.sec.gov.
07311-4992 residing at the same
"household." This This report is submitted
DISTRIBUTOR practice is called solely for the general
SunAmerica Capital householding and reduces information of
Services, Inc. Fund expenses, which shareholders of the Fund.
Harborside Financial benefits you and other Distribution of this
Center shareholders. Unless the report to persons other
3200 Plaza 5 Funds receive than shareholders of the
Jersey City, NJ instructions to the Fund is authorized only
07311-4992 contrary, you will only in connection with a
receive one copy of the currently effective
SHAREHOLDER SERVICING shareholder documents. prospectus, setting forth
AGENT The Funds will continue details of the Fund,
SunAmerica Fund to household the which must precede or
Services, Inc. shareholder documents accompany this report.
Harborside Financial indefinitely, until we
Center are instructed otherwise.
3200 Plaza 5 If you do not wish to
Jersey City, NJ participate in
07311-4992 householding, please
contact Shareholder
Services at
(800) 858-8850 ext. 6010
or send a written request
with your name, the name
of your fund(s) and your
account member(s) to
SunAmerica Mutual Funds
c/o BFDS, P.O. Box
219186, Kansas City MO,
64121-9186. We will
resume individual
mailings for your account
within thirty (30) days
of receipt of your
request.
|
[GRAPHIC]
GO PAPERLESS!!
DID YOU KNOW THAT YOU HAVE THE OPTION TO
RECEIVE YOUR SHAREHOLDER REPORTS ONLINE?
By choosing this convenient service, you will no longer receive paper copies of
Fund documents such as annual reports, semi-annual reports, prospectuses and
proxy statements in the mail. Instead, you are provided with quick and easy
access to this information via the Internet.
Why Choose Electronic Delivery?
IT'S QUICK -- Fund documents will be received faster than via traditional mail.
IT'S CONVENIENT -- Elimination of bulky documents from personal files.
IT'S COST EFFECTIVE -- Reduction of your Fund's printing and mailing costs.
TO SIGN UP FOR ELECTRONIC DELIVERY, FOLLOW
THESE SIMPLE STEPS:
1
GO TO WWW.SAFUNDS.COM
2
CLICK ON THE LINK TO "GO PAPERLESS!!"
|
The email address you provide will be kept strictly confidential. Once your
enrollment has been processed, you will begin receiving email notifications
when anything you receive electronically is available online.
You can return to www.safunds.com at any time to change your email
address, edit your preferences or to cancel this service if you choose to
resume physical delivery of your Fund documents.
Please note - this option is only available to accounts opened through the
Funds.
FOR INFORMATION ON RECEIVING THIS REPORT ONLINE, SEE INSIDE BACK COVER.
DISTRIBUTED BY:
SUNAMERICA CAPITAL SERVICES, INC.
This fund report must be preceded by or accompanied by a prospectus.
Investors should carefully consider a Fund's investment objectives, risks,
charges and expenses before investing. The prospectus, containing this and
other important information, can be obtained from your financial adviser, the
SunAmerica Sales Desk at 800-858-8850, ext. 6003, or at www.safunds.com. Read
the prospectus carefully before investing.
WWW.SAFUNDS.COM
MMANN - 12/13
[LOGO]
AIG
Sun America
Mutual Funds
