<PAGE>
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SUNAMERICA MONEY MARKET FUND
SHAREHOLDER LETTER
August 15, 1995
Dear Shareholder:
The SunAmerica Money Market Fund achieved the Fund's objective of providing a
high current level of income and, at the same time, investing in the highest
quality, short-term money market instruments which are both liquid and stable.
By extending its average-days-to-maturity, the Fund was properly positioned to
capitalize on the recent rally in the short-term fixed-income markets. This
extension of the Fund's maturity also protected it against reinvesting maturing
proceeds at lower market rates, a fate which befell funds with shorter average-
days-to-maturity during this period.
A weakening manufacturing sector coupled with softening consumer demand
forced the fixed-income market to reconsider the sustainability of the current
economic expansion. The heightened probability of an economic slowdown, along
with the anticipation that the Federal Reserve will lower short-term interest
rates to offset this economic slowdown, sparked a tremendous year long rally in
the fixed-income markets. Both short-term and long-term rates dropped
significantly from the beginning of the year and may continue to decline
further if the pace of economic growth continues to subside.
While we expect the economy to display continuing signs of deterioration in
the near-term, we remain cautious of the possibility of economic upswing in the
third and fourth quarters of this year. We are concerned that the recent
decline in interest rates will spur new economic growth later this year in the
interest rate sensitive sectors of the economy. Such growth, combined with a
solid manufacturing sector, a weak dollar and an increase in consumer
consumption, may force rates higher in order to offset inflationary pressures.
If this occurs, we are prepared to shorten your Fund's average-days-to-maturity
to take advantage of higher rates. We appreciate your investment in the Fund
and will do our best to meet your money market objectives.
Sincerely,
/s/ Kenneth A. Fahrman
Kenneth A. Fahrman
Portfolio Manager
<PAGE>
--------------------------------------------------------------------------------
SUNAMERICA MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS AT JUNE 30, 1995 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
SECURITY DESCRIPTION (IN THOUSANDS) RATE# MATURITY (NOTE 3)
--------------------------------------------------------------------------------
COMMERCIAL PAPER--65.5%
<S> <C> <C> <C> <C>
Abbey National North America $ 6,000 6.40% 5/30/96 $6,000,000
Ameritech Capital Funding Corp. 3,000 6.22 7/10/95 2,995,335
AT&T Corp. 1,000 6.13 7/10/95 998,468
Bank of America 7,000 6.35 7/24/95 6,971,601
BankAmerica Corp. 7,000 5.90 9/27/95 6,899,044
BellSouth Capital Funding Corp. 5,000 6.20 7/07/95 4,994,833
BHF Finance (DE), Inc. 7,000 5.68 12/05/95 6,826,602
Banque Internationale a Luxembourg, Inc. 7,000 5.81 9/28/95 6,899,455
Chemical Banking Corp 7,000 5.85 9/26/95 6,901,038
Cosco (Cayman) Co. Ltd. 5,000 6.11 7/06/95 4,995,757
Cregem North America, Inc. 5,000 6.02 7/19/95 4,984,950
Daewoo International (America) Corp. 11,000 5.90-5.97 9/07/95-9/12/95 10,871,834
du Pont (E.I.) de Nemours & Co. 7,000 5.90 9/26/95 6,900,192
Dynamic Funding Corp. 3,400 6.05 7/05/95 3,397,714
General Electric Capital Corp. 7,000 5.58 3/08/96 6,727,665
Golden Peanut Co. 5,000 5.93 9/26/95 4,928,346
Goldman Sachs Group L.P. 13,000 5.70-6.60 7/05/95-11/24/95 12,833,783
Indosuez N.A., Inc. 5,000 5.98 9/14/95 4,937,708
JAL Capital Corp. 7,500 5.96 7/25/95 7,470,200
Lilly (Eli) & Co. 4,000 6.06 7/13/95 3,991,920
Merrill Lynch & Co., Inc. 7,000 5.95 7/06/95 6,994,215
Sanwa Bank Ltd. 3,000 6.25 7/03/95 2,998,958
Sharp Electronics Corp. 5,000 5.63 12/08/95 4,875,000
Southland Corp. 14,000 5.85-6.03 7/11/95-10/03/95 13,881,350
Spiegel Funding Corp. 5,000 5.80 9/27/95 4,929,111
Svenska Handelsbanken, Inc. 7,000 6.04 7/20/95 6,977,686
Toronto-Dominion Holdings USA, Inc. 7,000 5.95 7/05/95 6,995,372
US Prime Property, Inc. 3,000 5.80 9/27/95 2,957,467
WMX Technologies, Inc. 7,000 5.65 12/05/95 6,827,518
Working Capital Management Co. L.P. 8,000 6.02-6.08 7/05/95-7/10/95 7,990,393
-----------
TOTAL COMMERCIAL PAPER 186,953,515
(amortized cost $186,953,515) -----------
GOVERNMENT AGENCIES--9.4%
Agency for International Development India+ 5,000 5.96 7/05/95 5,016,682
Agency for International Development Isra-
el+ 4,331 5.69 7/05/95 4,330,905
Agency for International Development Pana-
ma+ 5,503 6.52 7/05/95 5,539,793
Federal Farm Credit Bank+ 7,000 6.18 7/03/95 7,000,668
Federal Home Loan Mortgage Corp. FRN+ 5,000 5.89 7/03/95 4,999,194
-----------
TOTAL GOVERNMENT AGENCIES 26,887,242
(amortized cost $26,887,242) -----------
</TABLE>
<PAGE>
--------------------------------------------------------------------------------
SUNAMERICA MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS AT JUNE 30, 1995 (UNAUDITED)--(CONTINUED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
SECURITY DESCRIPTION (IN THOUSANDS) RATE# MATURITY (NOTE 3)
-------------------------------------------------------------------------------------------------------
MEDIUM TERM NOTES--15.3%
<S> <C> <C> <C> <C> <C>
Bear Stearns & Co., Inc.+ $ 7,500 6.18% 7/20/95 $ 7,500,000
Citicorp 1,000 9.35 6/03/96 1,026,883
Ford Motor Credit Co. 3,500 8.25 5/15/96 3,559,792
General Electric Co. 5,000 9.50 8/24/95 5,019,913
Georgia Power Co. 2,000 6.20 9/01/95 1,996,244
Liberty Mutual Capital Corp. 6,000 8.50 7/08/96 6,138,433
Mellon Financial Co. 5,000 5.38 8/01/95 4,995,234
NBD Bancorp, Inc. 8,000 6.40 4/25/96-4/29/96 7,999,510
Southern New England Telecommunications
Corp. 3,000 7.65 9/05/95 3,008,432
World Saving and Loan Association 2,500 4.85 4/01/96 2,479,425
------------
TOTAL MEDIUM TERM NOTES 43,723,866
(amortized cost $43,723,866) ------------
TAXABLE MUNICIPAL MEDIUM TERM
NOTES--9.4%
Braxton County, West Virginia 5,000 6.11 8/22/95 5,000,000
Illinois Student Assistance Corp.+ 4,800 6.17 7/05/95 4,800,000
New Hampshire State Industrial Development
Authority 13,000 6.22 8/30/95 13,000,000
State of Texas Veteran's Housing Assis- 3,900,000
tance+ 3,900 6.10 7/05/95 ------------
TOTAL TAXABLE MUNICIPAL MEDIUM TERM NOTES 26,700,000
(amortized cost $26,700,000) ------------
TOTAL INVESTMENT SECURITIES 284,264,623
(amortized cost $284,264,623) ------------
REPURCHASE AGREEMENT--1.8%
Joint Repurchase Agreement Account (Note 4) 5,005,000
(cost $5,005,000) 5,005 6.05 7/03/95 ------------
TOTAL INVESTMENTS--
(amortized cost $289,269,623*) 101.4% 289,269,623
Liabilities in excess of other assets-- (1.4) (3,988,648)
----- ------------
NET ASSETS 100.0% $285,280,975
===== ============
</TABLE>
-------
* At June 30, 1995 the cost of securities for Federal income tax purposes was
the same as for book purposes.
# Rates shown are rates in effect as of June 30, 1995.
+ Variable rate security, maturity date reflects next reset date.
FRN--Floating Rate Note
PORTFOLIO BREAKDOWN (EXCLUDING REPURCHASE AGREEMENT) BY INDUSTRY@
<TABLE>
<S> <C> <C> <C> <C> <C>
Finance 18.3% Retail 4.9% Transportation 1.8%
International Finance 12.8 Telecommunication 4.2 Food & Beverages 1.7
Banking 12.3 Conglomerate 3.8 Electronics 1.7
Securities Holding Company 9.6 Electric 2.5 Drugs & Cosmetics 1.4
Government Agencies 9.5 Industrial 2.4 Real Estate 1.0
Municipalities 9.3 Chemicals 2.4 ----
99.6%
====
</TABLE>
@ As grouped by Moody's Investors Service Global Short Term Market Record
See Notes to Financial Statements
<PAGE>
--------------------------------------------------------------------------------
SUNAMERICA MONEY MARKET FUND
STATEMENT OF ASSETS AND LIABILITIES AT JUNE 30, 1995 (UNAUDITED)
<TABLE>
<S> <C>
ASSETS:
Investment securities, at value (amortized cost $289,269,623)...... $289,269,623
Interest receivable................................................ 1,845,670
Receivable for Fund shares sold.................................... 435,156
Prepaid expenses................................................... 99,374
------------
Total assets...................................................... 291,649,823
------------
LIABILITIES:
Payable for Fund shares repurchased................................ 5,328,095
Dividends payable.................................................. 572,843
Accrued expenses................................................... 225,141
Investment advisory and management fees payable.................... 118,841
Distribution and service maintenance fees payable.................. 75,381
Due to custodian................................................... 48,547
------------
Total liabilities................................................. 6,368,848
------------
Net assets...................................................... $285,280,975
============
NET ASSETS WERE COMPOSED OF:
Common Stock, $.001 par value...................................... $ 285,263
Additional paid-in capital......................................... 284,882,992
------------
285,168,255
Accumulated undistributed net investment income.................... 112,720
------------
Net assets...................................................... $285,280,975
============
CLASS A (UNLIMITED SHARES AUTHORIZED):
Net asset value and redemption price per share $1.00
($226,663,969/226,654,844 shares outstanding).................... =====
CLASS B (UNLIMITED SHARES AUTHORIZED):
Net asset value and redemption price per share $1.00
($58,617,006/58,608,172 shares outstanding)...................... =====
</TABLE>
--------------------------------------------------------------------------------
STATEMENT OF OPERATIONS FOR THE SIX MONTHS ENDED JUNE 30, 1995 (UNAUDITED)
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
Interest.................................................. $8,729,935
EXPENSES:
Investment advisory and management fees................... $710,779
Service maintenance fees--Class A......................... 161,145
Distribution and service maintenance fees--Class B........ 312,532
Transfer agent fees and expenses--Class A................. 246,206
Transfer agent fees and expenses--Class B................. 55,207
Custodian fees and expenses............................... 56,345
Registration fees--Class A................................ 43,348
Registration fees--Class B................................ 11,880
Directors fees and expenses............................... 17,976
Audit and tax consulting fees............................. 12,670
Printing expense.......................................... 11,315
Legal fees and expenses................................... 7,580
Insurance expense......................................... 3,902
Miscellaneous expenses.................................... 4,835 1,655,720
-------- ----------
Net investment income..................................... 7,074,215
----------
INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.......... $7,074,215
==========
</TABLE>
See Notes to Financial Statements
<PAGE>
--------------------------------------------------------------------------------
SUNAMERICA MONEY MARKET FUND
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE SIX
MONTHS ENDED FOR THE YEAR
JUNE 30, 1995 ENDED
(UNAUDITED) DECEMBER 31, 1994
------------- -----------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
OPERATIONS:
Net investment income....................... $ 7,074,215 $ 9,362,232
------------ ------------
Net increase in net assets resulting from
operations................................. 7,074,215 9,362,232
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
From net investment income (Class A)........ (5,533,971) (7,019,390)
From net investment income (Class B)........ (1,552,216) (2,312,911)
------------ ------------
Total dividends and distributions to
shareholders............................... (7,086,187) (9,332,301)
INCREASE (DECREASE) IN NET ASSETS FROM FUND
SHARE TRANSACTIONS (NOTE 6)................. (27,063,630) 81,252,104
------------ ------------
Total increase (decrease) in net assets..... (27,075,602) 81,282,035
NET ASSETS:
Beginning of period......................... 312,356,577 231,074,542
------------ ------------
End of Period (including undistributed net
investment income of $112,720 and $124,692
at June 30, 1995 and December 31, 1994,
respectively).............................. $285,280,975 $312,356,577
============ ============
</TABLE>
--------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
RATIO OF RATIO OF
NET NET NET EXPENSES NET
ASSET TOTAL DIVIDENDS ASSET ASSETS TO INVESTMENT
VALUE NET FROM FROM NET VALUE END OF AVERAGE INCOME TO
PERIOD BEGINNING INVESTMENT INVESTMENT INVESTMENT END OF TOTAL PERIOD NET AVERAGE
ENDED OF PERIOD INCOME OPERATIONS INCOME PERIOD RETURN(1) (000'S) ASSETS NET ASSETS
--------------------------------------------------------------------------------------------------------
CLASS A
-------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
12/31/91 $1.000 $0.052 $0.052 $(0.052) $1.000 5.32% $270,405 1.21% 5.25%
12/31/92 1.000 0.027 0.027 (0.027) 1.000 2.74 215,521 1.27 2.76
12/31/93 1.000 0.023 0.023 (0.023) 1.000 2.32 189,160 1.16 2.30
12/31/94 1.000 0.034 0.034 (0.034) 1.000 3.47 213,958 1.00 3.43
6/30/95(2) 1.000 0.023 0.023 (0.023) 1.000 2.37 226,664 1.00(3) 5.15(3)
<CAPTION>
CLASS B
-------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
09/24/93-
12/31/93 $1.000 $0.004 $0.004 $(0.004) $1.000 0.44% $41,915 1.69%(3) 1.69%(3)
12/31/94 1.000 0.027 0.027 (0.027) 1.000 2.76 98,398 1.69 2.91
6/30/95(2) 1.000 0.020 0.020 (0.020) 1.000 2.06 58,617 1.67(3) 4.45(3)
</TABLE>
--------
(1)Total Return is not annualized
(2)Unaudited
(3)Annualized
See Notes to Financial Statements
<PAGE>
--------------------------------------------------------------------------------
SUNAMERICA MONEY MARKET FUND
NOTES TO FINANCIAL STATEMENTS--JUNE 30, 1995 (UNAUDITED)
NOTE 1. ORGANIZATION
SunAmerica Money Market Fund (the "Fund") is an open-end diversified
management investment company organized as a Maryland Corporation
("Corporation").
Effective September 24, 1993, the Fund offered Class A shares and Class B
shares. The offering price is the next determined net asset value per share,
plus, for Class B shares only, a declining contingent deferred sales charge
("CDSC") imposed on certain redemptions made within six years. Class B
shares of the Fund convert automatically to Class A shares on the first
business day of the month seven years after the issuance of such Class B
shares and at such time are no longer subject to a distribution fee. Each
class of shares bears the same voting, dividend, liquidation and other
rights and conditions and each makes distribution and account maintenance
and service fee payments under a distribution plan pursuant to Rule 12b-1
under the Investment Company Act of 1940 (the "1940 Act") except that Class
B shares are subject to distribution fees.
NOTE 2. REORGANIZATION
On March 31, 1993 and September 23, 1993, the Board of Directors/Trustees
and Shareholders, respectively, of the various funds comprising the
SunAmerica Mutual Funds approved the Agreement and Plan of Reorganization
dated March 13, 1993, whereby all of the assets and liabilities of the
determined Funds were transferred in tax-free reorganizations.
Prior to the Reorganization, the Fund was known as SunAmerica Money Market
Securities, Inc. and consisted of one series, SunAmerica Money Market
Securities, Inc. Upon consummation of the reorganization, SunAmerica Money
Market Securities, Inc. was renamed SunAmerica Money Market Fund and the
then outstanding shares were redesignated as Class A shares of the Fund.
Upon consummation of the reorganization, the SunAmerica Cash Fund ("SACF")
was reorganized into the SunAmerica Money Market Fund and the then
outstanding shareholders were issued Class B shares of the Fund.
NOTE 3. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of the significant accounting policies followed
by the Fund in the preparation of its financial statements:
SECURITY VALUATIONS: Portfolio securities are valued at amortized cost,
which approximates market value. 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.
REPURCHASE AGREEMENTS: The Fund, along with other affiliated registered
investment companies, 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. The Fund's custodian takes possession of the collateral pledged
for investments in repurchase agreements. The underlying collateral is
valued daily on a mark to market basis to ensure that the value, including
accrued interest, is at least equal to the repurchase price. In the event of
default of the obligation to repurchase, a 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.
<PAGE>
--------------------------------------------------------------------------------
SUNAMERICA MONEY MARKET FUND
NOTES TO FINANCIAL STATEMENTS--JUNE 30, 1995 (UNAUDITED)--(CONTINUED)
SECURITIES TRANSACTIONS, INVESTMENT INCOME AND DISTRIBUTIONS TO
SHAREHOLDERS: Securities transactions are recorded on the trade date.
Interest income, including the accretion of discount and amortization of
premium, is accrued daily. Realized gains and losses on sales of investments
are calculated on the identified cost basis.
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 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 are declared daily and paid monthly.
STATEMENT OF POSITION 93-2: During the year ended December 31, 1993, the
Fund adopted Statement of Position 93-2 Determination, Disclosure, and
Financial Statement Presentation of Income, Capital Gain, and Return of
Capital Distributions by Investment Companies. For the year ended December
31, 1994, the cumulative effect of differences arising from current book/tax
differences totaling $(94,761) were reclassified from undistributed net
investment income to paid in capital.
FEDERAL INCOME TAXES: It is the Fund's policy to meet the requirements of
the Internal Revenue Code of 1986, as amended, applicable to regulated
investment companies and to distribute all of its taxable net income to its
shareholders. Therefore, no federal income or excise tax provisions are
required.
For the year ended December 31, 1994, the cost of securities for federal
income tax purposes was the same as for book purposes. At December 31, 1994,
the Fund had a capital loss carryforward of $5,892 expiring in the year
2002. Capital losses incurred after October 31, 1994 are deemed to arise on
the first business day of the next taxable year. Accordingly, the Fund
incurred and elected to defer capital losses of $23,205 to the taxable year
ended December 31, 1995.
NOTE 4. JOINT REPURCHASE AGREEMENT ACCOUNT
As of June 30, 1995, the Fund had a 4.7% undivided interest which
represented $5,005,000 in principal amount in a repurchase agreement in the
joint account. As of such date, the repurchase agreement in the joint
account and the collateral therefore was as follows:
Morgan Stanley & Co., Inc., Repurchase Agreement, 6.05% dated 6/30/95, in
the principal amount of $106,361,000 repurchase price $106,414,624 due
7/3/95 collateralized by $111,010,000 U.S. Treasury Notes 5.125% due
11/30/98, approximate aggregate value $108,958,626.
NOTE 5. INVESTMENT ADVISORY AND MANAGEMENT AGREEMENT, DISTRIBUTION AGREEMENT
AND SERVICE AGREEMENT
The Fund has an Investment Advisory and Management Agreement (the
"Agreement") with SunAmerica Asset Management Corp. ("SAAMCo"), an indirect
wholly owned subsidiary of SunAmerica Inc. Under the Agreement, SAAMCo
provides continuous supervision of the Fund's portfolio and administers its
corporate affairs, subject to general review by the Directors. In connection
therewith, SAAMCo furnishes the Fund with office facilities, maintains
certain of the Fund's books and records, and pays the salaries and expenses
of
<PAGE>
--------------------------------------------------------------------------------
SUNAMERICA MONEY MARKET FUND
NOTES TO FINANCIAL STATEMENTS--JUNE 30, 1995 (UNAUDITED)--(CONTINUED)
all personnel, including officers of the Fund who are employees of SAAMCo
and its affiliates. The investment advisory and management fee to SAAMCo is
computed daily, and payable monthly, at an annual rate of .50% on the first
$600 million of the Fund's daily net assets, .45% on the next $900 million
of net assets and .40% on net assets over $1.5 billion.
SAAMCo has agreed that, in any fiscal year, it will refund or rebate its
management fee to the Fund to the extent that the Fund's expenses (including
the fees of SAAMCo and amortization of organizational expenses, but
excluding interest, taxes, brokerage commissions, distribution fees and
other extraordinary expenses) exceed the most restrictive expense limitation
imposed by states where the Fund's shares are sold. The most restrictive
expense limitation is presently believed to be 2 1/2% of the first $30
million of the Fund's daily net assets, 2% of the next $70 million of net
assets and 1 1/2% of such net assets in excess of $100 million. For the six
months ended June 30, 1995, no such reimbursement was required.
The Fund has a Distribution Agreement with SunAmerica Capital Services, Inc.
("SACS"), an indirect wholly owned subsidiary of SunAmerica Inc. The Fund
has adopted a Distribution Plan (the "Plan") in accordance with the
provisions of Rule 12b-1 under the 1940 Act. Rule 12b-1 under the 1940 Act
permits an investment company directly or indirectly to pay expenses
associated with the distribution of its shares ("distribution expenses") in
accordance with a plan adopted by the investment company's board of
directors and approved by its shareholders. Pursuant to such rule, the
Directors and the shareholders of each class of shares of the Fund have
adopted Distribution Plans hereinafter referred to as the "Class A Plan" and
the "Class B Plan." In adopting the Class A Plan and the Class B Plan, the
Directors determined that there was a reasonable likelihood that each such
Plan would benefit the Fund and the shareholders of the respective class.
The sales charge and distribution fees of the Class B shares will not be
used to subsidize the sale of Class A shares.
Upon consummation of the reorganization, the Distributor began to receive
payments from the Fund at the annual rate of up to 0.75% of the average
daily net assets of the Fund's Class B shares, to compensate the Distributor
and certain securities firms for providing sales and promotional activities
for distributing that class of shares. The distribution costs for which the
Distributor may be reimbursed out of such distribution fees include fees
paid to broker-dealers that have sold Fund shares, commissions, and other
expenses such as those incurred for sales literature, prospectus printing
and distribution and compensation to wholesalers. It is possible that in any
given year the amount paid to the Distributor under the Class B Plan may
exceed the Distributor's distribution costs as described above. The Class A
Plan does not provide for a distribution fee. The Distribution Plans provide
that each class of shares of the Fund may also pay the Distributor an
account maintenance and service fee of up to 0.15% of the aggregate average
daily net assets of such class of shares for payments to broker-dealers for
providing continuing account maintenance. In this regard, some payments are
used to compensate broker-dealers with account maintenance and service fees
in an amount up to 0.15% per year of the assets maintained in the Fund by
their customers. For the six months ended June 30, 1995, SACS earned fees of
$473,677 from the Fund.
SACS also receives the proceeds of contingent deferred sales charges paid by
investors in connection with certain redemptions of the Fund's Class B
shares. For the six months ended June 30, 1995, SACS informed the Fund
(Class B) that it received approximately $216,401 in contingent deferred
sales charges.
<PAGE>
--------------------------------------------------------------------------------
SUNAMERICA MONEY MARKET FUND
NOTES TO FINANCIAL STATEMENTS--JUNE 30, 1995 (UNAUDITED)--(CONTINUED)
The Fund has entered into a Service Agreement with SunAmerica Fund Services,
Inc. ("SAFS"), an indirect wholly owned subsidiary of SunAmerica Inc. 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 permits the
Fund to reimburse SAFS for costs incurred in providing such services which
is approved annually by the Directors. For the six months ended June 30,
1995, the Fund (Class A, Class B) incurred expenses of $312,743 to reimburse
SAFS pursuant to the terms of the Service Agreement. Of this amount, $52,290
was payable to SAFS at June 30, 1995.
NOTE 6. CAPITAL SHARE TRANSACTIONS
Transactions in shares of each class, all at $1.00 per share, for the six
months ended June 30, 1995 and for the prior year were as follows:
<TABLE>
<CAPTION>
MONEY MARKET FUND
------------------------------------------------------------
CLASS A CLASS B
----------------------------- -----------------------------
FOR THE FOR THE FOR THE FOR THE
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
JUNE 30, 1995 DECEMBER 31, JUNE 30, 1995 DECEMBER 31,
(UNAUDITED) 1994 (UNAUDITED) 1994
---------------- ------------ ---------------- ------------
<S> <C> <C> <C> <C>
Shares sold............. 486,264,081 904,696,309 204,281,506 504,544,389
Reinvested dividends.... 4,871,543 6,720,048 1,103,202 1,759,780
Shares redeemed......... (478,425,750) (886,631,162) (245,158,212) (449,837,260)
------------ ------------ ------------ ------------
Net increase (decrease). 12,709,874 24,785,195 (39,773,504) 56,466,909
============ ============ ============ ============
</TABLE>
NOTE 7. COMMITMENTS AND CONTINGENCIES
The Fund has established an uncommitted line of credit with State Street
Bank and Trust Company with interest payable at the Federal Funds rate plus
100 basis points. Borrowings under the line of credit will commence when the
Fund's cash shortfall exceeds $100,000.
NOTE 8. DIRECTORS RETIREMENT PLAN
The Directors (and Trustees) of the SunAmerica Family of Mutual Funds have
adopted the SunAmerica Disinterested Trustees' and Directors' Retirement
Plan (the "Retirement Plan") effective January 1, 1993 for the unaffiliated
Directors. The Retirement Plan provides generally that if an unaffiliated
Director who has at least 10 years of consecutive service as a Disinterested
Director of any of the SunAmerica mutual funds (an "Eligible Director")
retires after reaching age 60 but before age 70 or dies while a Director,
such person will be eligible to receive a retirement or death benefit from
each SunAmerica mutual fund with respect to which he or she is an Eligible
Director. As of each birthday, prior to the 70th birthday, each Eligible
Director will be credited with an amount equal to (i) 50% of his or her
regular fees (excluding committee fees) for services as a Disinterested
Director of each SunAmerica mutual fund for the calendar year in which such
birthday occurs, plus (ii) 8.5% of any amounts credited under clause (i)
during prior years. 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 fifteen annual installments. As of June 30, 1995, the Fund has
accrued and expensed $9,817 for the Retirement Plan which is included in
accrued expenses on the Statement of Assets and Liabilities.
<PAGE>
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SUNAMERICA MONEY MARKET FUND
TRUSTEES INVESTMENT MANAGER AND ADMINISTRATOR
Eli Broad SunAmerica Asset Management Corp.
S. James Coppersmith The SunAmerica Center
Samuel M. Eisenstat 733 Third Avenue
Stephen J. Gutman New York, NY 10017-3204
Sebastiano Sterpa
Jay S. Wintrob DISTRIBUTOR
SunAmerica Capital Services, Inc.
OFFICERS The SunAmerica Center
Peter A. Harbeck, President 733 Third Avenue
Stanton J. Feeley, Executive Vice New York, NY 10017-3204
President
Kenneth A. Fahrman, Vice President SHAREHOLDER SERVICING AGENT
Nancy Kelly, Vice President SunAmerica Fund Services, Inc.
Robert M. Zakem, Secretary The SunAmerica Center
Peter C. Sutton, Controller 733 Third Avenue
John T. Genoy, Assistant Controller New York, NY 10017-3204
Donna M. Handel, Assistant Controller
Hilary R. Kastleman, Assistant CUSTODIAN AND TRANSFER AGENT
Secretary State Street Bank & Trust Company
Abbe P. Stein, Assistant Secretary P.O. Box 419572
Kansas City, MO 64141-6572
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FASTFACTS . . . AVAILABLE FOR YOUR CONVENIENCE
The easy and convenient way to obtain the most current information on your
mutual funds. By calling our toll free number, 1-800-654-4760, you can receive
mutual fund information 24 hours a day. If you require any additional
information, please call us at 1-800-858-8850 Monday-Friday 9:00 a.m.-6:00
p.m. (Eastern time).
HERE'S HOW IT WORKS
All you need is:
* A Touch-Tone Telephone
* Your account number
* Your Personal Identification number "PIN"
(the last four digits of your Social Security number, a tax identification
number or a number chosen by you)
* Your Fund Code
<TABLE>
<CAPTION>
CLASS CLASS
------- -------
A B A B
EQUITY FUNDS --- --- INCOME FUNDS --- ---
<S> <C> <C> <C> <C> <C>
Balanced Assets 51 551 U.S. Government Securities 70 570
Global Balanced 23 523 Federal Securities 534 34
Blue Chip Growth 522 22 Diversified Income 580 80
Mid-Cap Growth 71 571 High Income 28 228
Small Company Growth 36 536 Tax Exempt Insured 33 533
Growth and Income 24 524 Money Market 35 535
</TABLE>
FUNCTIONS
1 Price 12 Duplicate Statement
2 Account Balance 13 Year-End Tax
4 Last Transaction Information/Duplicate Tax
5 Help Forms
10 Check Reorder (Money Market Only) 16 Change "PIN"
17 Last Dividend Transaction
<PAGE>
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<PAGE>
-------------------------------
BULK RATE
SUNAMERICA MONEY MARKET FUND U.S. POSTAGE
THE SUNAMERICA CENTER PAID
733 THIRD AVENUE Kansas City, MO
PERMIT NO. 3657
NEW YORK, NY 10017-3204
1-800-858-8850
This report is submitted solely for the general information of shareholders of
the Fund. Distribution of this report to persons other than shareholders of the
Fund is authorized only in connection with a currently effective prospectus,
setting forth details of the Fund, which must precede or accompany this report.
The accompanying report has not been examined by independent accountants and
accordingly no opinion has been expressed thereon.
SPONSORED BY:
LOGO SunAmerica
Asset Management
MMANN
June 30, 1995
SUNAMERICA
MONEY MARKET
FUND
LOGO
Semiannual
Report
LOGO SunAmerica
Asset Management
