<PAGE>
SUNAMERICA MONEY MARKET FUND
SHAREHOLDER LETTER
August 1, 1996
Dear Shareholder:
Since the beginning of 1996, the strength and resilience of the economy has
rendered the investment community bewildered. Employment data, in particular,
has caught the market by surprise both in its unexpected growth and depth.
Nevertheless, it is our belief that, in the long-term, the economy will expand
at an overall moderate pace, with little fear of rising inflation.
The second half of 1996 should experience slower growth mainly due to
increased manufacturing production. This will be a temporary pattern as
necessitated by the desire to rebuild depleted inventories. Higher interest
rates have taken their toll on certain manufacturing sectors with more to
follow, for instance, housing starts and resales are slowing. The persistence
of long-term economic growth will come from increasing export activity. Many
international economies are rebounding, and their growth will feed our export
pipeline.
The SunAmerica Money Market Fund performed well in spite of turbulent market
conditions. We can attribute these results to security selection and a shorter
average maturity. The portfolio's average maturity stands at 45 days relative
to 55 days for the Donoghue Average Composite. We are committed to provide a
competitive total return while balancing high credit quality standards and
liquidity requirements. It is our contention to extend the average maturity
only when the skeptics turn a more neutral position on inflation.
/s/ P. Christopher Leary
P. Christopher Leary
Portfolio Manager
<PAGE>
- --------------------------------------------------------------------------------
SUNAMERICA MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS AT JUNE 30, 1996 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
SECURITY DESCRIPTION (IN THOUSANDS) RATE* MATURITY (NOTE 2)
- ---------------------------------------------------------------------------------------------------
COMMERCIAL PAPER--40.5%
<S> <C> <C> <C> <C>
Atlas Funding Corp. $10,000 5.45% 7/15/96 $ 9,978,806
BOT Financial Corp. 5,000 5.48 7/08/96 4,994,672
BMW U.S. Capital Corp. 7,314 5.43 7/09/96 7,305,174
Caterpillar Financial Services Corp. 5,735 4.30 7/22/96 5,730,641
Cemex S.A. 7,000 5.35 7/10/96 6,990,638
Chemical Banking Corp. 6,000 4.90 7/15/96 5,988,567
Deutsche Bank 7,000 5.85 4/11/97 7,000,000
Eiger Capital Corp. 8,000 5.38 7/22/96 7,974,893
Embarcadero Center Venture Three 7,000 5.42 7/19/96 6,981,030
Galicia Funding Corp. 7,000 5.27 10/07/96 6,899,577
Guinness PLC 3,000 5.30 7/09/96 2,996,467
JLUS Funding Corp. 7,000 5.38 9/14/96 6,932,003
MidAmerican Energy Co. 6,200 5.27 7/08/96 6,193,647
Mitsubishi Motors Credit of America, Inc. 5,000 5.38 7/25/96 4,982,067
Morgan Stanley Group, Inc. 15,000 5.30-5.31 7/17/96-7/31/96 14,958,458
Nomura Holding America, Inc. 5,000 5.45 9/19/96 4,947,014
Premium Funding, Inc. 3,000 5.42 7/08/96 2,996,838
Quebec (Province of) 6,000 5.32 7/11/96 5,991,133
Sanwa Bank Ltd. 6,000 5.40 8/09/96 5,964,900
Sherwood Medical Co. 8,000 5.40 8/21/96 7,938,800
Southland Corp. 7,000 5.37 7/17/96 6,983,293
Strategic Asset Funding Corp. 5,000 5.30 7/01/96 5,000,000
Yamaha Motor Finance Corp. 5,000 5.42 7/09/96 4,993,978
------------
TOTAL COMMERCIAL PAPER
(amortized cost $150,722,596) 150,722,596
------------
GOVERNMENT AGENCIES--3.5%
Agency for International Development India+ 4,000 5.69 7/30/96 4,010,072
Agency for International Development Isra-
el+ 3,603 5.69 7/30/96 3,603,379
Agency for International Development Pana-
ma+ 5,227 5.95 7/30/96 5,261,022
------------
TOTAL GOVERNMENT AGENCIES
(amortized cost $12,874,473) 12,874,473
------------
MEDIUM TERM NOTES--30.1%
Bear Stearns & Cos., Inc.+ 15,000 5.49-5.95 8/01/96-9/18/96 15,408,356
Beneficial Corp. 4,700 9.13 3/12/97 4,824,407
Boatmen's National Bank of St. Louis+ 5,000 5.62 7/30/96 5,000,000
Campbell Soup Co. 4,567 7.75 2/24/97 4,642,318
First Union Corp. 7,000 8.13 12/15/96 7,077,254
Ford Motor Credit Co. 4,000 5.20 1/01/97 3,999,185
General Motors Acceptance Corp. 7,000 5.00 1/27/97 6,969,392
</TABLE>
<PAGE>
- --------------------------------------------------------------------------------
SUNAMERICA MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS AT JUNE 30, 1996 (UNAUDITED) -- (CONTINUED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
SECURITY DESCRIPTION (IN THOUSANDS) RATE* MATURITY (NOTE 2)
- ----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
MEDIUM TERM NOTES--(CONTINUED)
Key Bank of Idaho+ $10,000 5.23% 7/24/96 $ 9,998,770
Key Bank of Wyoming+ 5,000 5.39 8/14/96 4,997,862
Liberty Mutual Capital Corp. 9,185 8.50 7/08/96 9,189,348
Manufactures Life Insurance Cos. 3,000 8.25 3/01/97 3,058,377
Morgan Stanley Group, Inc. 2,000 7.32 1/15/97 2,023,917
Nationsbank Corp. 7,300 7.50 2/15/97 7,396,637
Philip Morris Cos., Inc. 4,000 8.75 12/01/96 4,053,583
PNC Bank, N.A.+ 17,000 5.23-5.50 7/30/96-8/12/96 16,996,512
Smith Barney Holdings, Inc. 5,000 6.00 3/15/97 5,025,230
Xerox Credit Corp.+ 1,500 5.57 8/09/96 1,500,138
------------
TOTAL MEDIUM TERM NOTES
(amortized cost $112,161,286) 112,161,286
------------
TAXABLE MUNICIPAL MEDIUM TERM NOTES--9.7%
Illinois Student Assistance Corp.+ 15,900 5.49-5.77 7/24/96 15,900,000
New Hampshire State Industrial Development
Authority 13,000 5.45 7/17/96 13,000,000
State of Texas Veteran's Housing
Assistance+ 7,415 5.52 7/24/96 7,415,000
------------
TOTAL TAXABLE MUNICIPAL MEDIUM TERM NOTES
(amortized cost $36,315,000) 36,315,000
------------
TOTAL INVESTMENT SECURITIES
(amortized cost $312,073,355) 312,073,355
------------
REPURCHASE AGREEMENT--18.0%
Joint Repurchase Agreement Account (Note 3)
(cost $66,808,000) 66,808 5.32 7/01/96 66,808,000
------------
TOTAL INVESTMENTS--
(amortized cost $378,881,355**) 101.8% 378,881,355
Liabilities in excess of other assets (1.8) (6,750,987)
----- ------------
NET ASSETS 100.0% $372,130,368
===== ============
</TABLE>
- --------
*Rates shown are rates in effect as of June 30, 1996
**At June 30, 1996 the cost of securities for Federal income tax purposes was
the same as for book purposes
+Variable rate security; maturity date reflects next reset date
<TABLE>
<CAPTION>
PORTFOLIO BREAKDOWN AS A PERCENTAGE OF NET ASSETS (EXCLUDING REPURCHASE AGREEMENT) BY INDUSTRY@
<S> <C> <C> <C> <C> <C>
Banking 18.9% Government Agencies 3.5% Real Estate 1.9%
Finance 18.8 Insurance 3.3 Materials 1.9
Securities Holding Company 11.4 Pharmaceuticals 2.1 Utilities 1.7
Municipalities 9.7 Food & Beverages 2.0 Foreign Government 1.6
Receivables Company 4.0 Retail 1.9 Tobacco 1.1
----
83.8%
====
</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, 1996 (UNAUDITED)
<TABLE>
<S> <C>
ASSETS:
Investment securities, at value (amortized cost $378,881,355)....... $378,881,355
Cash................................................................ 728,841
Interest receivable................................................. 2,551,386
Receivable for fund shares sold..................................... 633,580
Prepaid expenses.................................................... 73,570
------------
Total assets....................................................... 382,868,732
------------
LIABILITIES:
Payable for investments purchased................................... 5,839,571
Payable for fund shares repurchased................................. 3,736,597
Dividends payable................................................... 750,954
Accrued expenses.................................................... 186,052
Investment advisory and management fees payable..................... 152,797
Distribution and service maintenance fees payable................... 72,393
------------
Total liabilities.................................................. 10,738,364
------------
Net assets...................................................... $372,130,368
============
NET ASSETS WERE COMPOSED OF:
Common Stock, $.001 par value....................................... $ 372,114
Additional paid-in capital.......................................... 371,647,412
------------
372,019,526
Accumulated undistributed net investment income..................... 110,842
------------
Net assets...................................................... $372,130,368
============
CLASS A (UNLIMITED SHARES AUTHORIZED):
Net asset value ($328,188,252/328,175,151 shares outstanding)...... $1.00
=====
CLASS B (UNLIMITED SHARES AUTHORIZED):
Net asset value ($43,942,116/43,939,136 shares outstanding)........ $1.00
=====
</TABLE>
STATEMENT OF OPERATIONS FOR THE SIX MONTHS ENDED JUNE 30, 1996 (UNAUDITED)
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
Interest................................................ $10,325,479
-----------
EXPENSES:
Investment advisory and management fees................. $932,604
Service maintenance fees--Class A....................... 245,906
Distribution and service maintenance fees--Class B...... 203,249
Transfer agent and shareholder servicing fees and ex-
penses--Class A........................................ 428,325
Transfer agent and shareholder servicing fees and ex-
penses--Class B........................................ 60,966
Custodian fees and expenses............................. 69,490
Registration fees--Class A.............................. 18,831
Registration fees--Class B.............................. 5,298
Directors' fees and expenses............................ 22,536
Audit and tax consulting fees........................... 14,265
Printing expense........................................ 11,860
Insurance expense....................................... 3,980
Legal fees and expenses................................. 3,485
Miscellaneous expenses.................................. 3,030 2,023,825
--------
Less: expense offset.................................... (68,814)
-----------
Net expenses............................................ 1,955,011
-----------
Net investment income................................... 8,370,468
-----------
INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........ $ 8,370,468
===========
</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, 1996 ENDED
(UNAUDITED) DECEMBER 31, 1995
------------------------------------
<S> <C> <C>
INCREASE IN NET ASSETS:
OPERATIONS:
Net investment income.................... $ 8,370,468 $ 15,308,139
------------ ------------
Net increase in net assets resulting from
operations.............................. 8,370,468 15,308,139
DIVIDENDS AND DISTRIBUTIONS TO
SHAREHOLDERS:
From net investment income (Class A)..... (7,498,517) (12,540,465)
From net investment income (Class B)..... (859,727) (2,793,748)
------------ ------------
Total dividends and distributions to
shareholders............................ (8,358,244) (15,334,213)
INCREASE IN NET ASSETS FROM FUND SHARE
TRANSACTIONS (NOTE 5).................... 4,011,472 55,776,169
------------ ------------
Total increase in net assets............. 4,023,696 55,750,095
NET ASSETS:
Beginning of year........................ 368,106,672 312,356,577
------------ ------------
End of period (including undistributed
net investment income of $110,842 and
$98,618 at June 30, 1996 and December
31, 1995, respectively)................. $372,130,368 $368,106,672
============ ============
</TABLE>
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
NET NET NET RATIO OF
ASSET DIVIDENDS ASSET ASSETS RATIO OF NET INVESTMENT
VALUE NET TOTAL FROM FROM NET VALUE END OF EXPENSES INCOME TO
PERIOD BEGINNING INVESTMENT INVESTMENT INVESTMENT END OF TOTAL PERIOD TO AVERAGE AVERAGE
ENDED OF PERIOD INCOME OPERATIONS INCOME PERIOD RETURN(1) (000'S) NET ASSETS NET ASSETS
- ----------------------------------------------------------------------------------------------------------------
CLASS A
-------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
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
12/31/95 1.000 0.051 0.051 (0.051) 1.000 5.18 316,308 1.01(2) 5.04
06/30/96(5) 1.000 0.021 0.021 (0.021) 1.000 2.08 328,188 0.99(2)(4) 4.57(4)
<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%(3) $41,915 1.69%(4) 1.69%(4)
12/31/94 1.000 0.027 0.027 (0.027) 1.000 2.76 98,398 1.69 2.91
12/31/95 1.000 0.044 0.044 (0.044) 1.000 4.49 51,799 1.78(2) 4.37
06/30/96(5) 1.000 0.017 0.017 (0.017) 1.000 1.73 43,942 1.76(2)(4) 3.80(4)
</TABLE>
- --------
(1) Total return does not reflect sales load
(2) The expense ratio reflects the effect of a gross up of custody and transfer
agent expense credits as follows:
<TABLE>
<CAPTION>
12/31/95 6/30/96
-------- -------
<S> <C> <C>
Class A......... .05% .03%
Class B......... .13% .03%
</TABLE>
(3) Total return is not annualized
(4) Annualized
(5) Unaudited
See Notes to Financial Statements
<PAGE>
- --------------------------------------------------------------------------------
SUNAMERICA MONEY MARKET FUND
NOTES TO FINANCIAL STATEMENTS--JUNE 30, 1996 (UNAUDITED)
NOTE 1. ORGANIZATION
SunAmerica Money Market Fund (the "Fund") is an open-end diversified
management investment company organized as a Maryland 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.
For Class B shares only, a declining contingent deferred sales charge
("CDSC") is 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 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. 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, the Fund has the right to liquidate
the collateral and apply the proceeds in satisfaction of the obligation. If
the seller defaults and the value of the collateral declines or if
bankruptcy proceedings are commenced with respect to the seller of the
security, realization of the collateral by the Fund may be delayed or
limited.
SECURITIES TRANSACTIONS, INVESTMENT INCOME AND DISTRIBUTIONS TO
SHAREHOLDERS: Securities transactions are recorded as of 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.
USE OF ESTIMATES IN FINANCIAL STATEMENT PREPARATION: The preparation of
financial statements in accordance with 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.
<PAGE>
- --------------------------------------------------------------------------------
SUNAMERICA MONEY MARKET FUND
NOTES TO FINANCIAL STATEMENTS--JUNE 30, 1996 (UNAUDITED)--(CONTINUED)
STATEMENT OF POSITION 93-2: As required by Statement of Position 93-2
Determination, Disclosure, and Financial Statement Presentation of Income,
Capital Gain, and Return of Capital Distributions by Investment Companies,
permanent book-tax differences relating to shareholder distributions have
been reclassified to paid in capital. Net investment income/loss, net
realized gain/loss, and net assets were not affected. For the year ended
December 31, 1995, no such reclassifications were required.
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.
NOTE 3. JOINT REPURCHASE AGREEMENT ACCOUNT
As of June 30, 1996, the Fund had a 32.2% undivided interest, which
represented $66,808,000 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:
Yamaichi International (America), Inc., Repurchase Agreement, 5.32% dated
6/28/96, in the principal amount of $207,451,000 repurchase price
$207,542,970 due 7/1/96 collateralized by $7,205,000 U.S. Treasury Notes
6.875% due 3/31/00, $5,560,000 U.S. Treasury Bills 5.65% due 5/29/97,
$22,215,000 U.S. Treasury Bonds 6.875% due 8/15/25, $31,025,000 U.S.
Treasury Notes 5.75% due 8/15/03, $51,860,000 U.S. Treasury Notes 5.75% due
9/30/97, $41,095,000 U.S. Treasury Notes 7.50% due 1/31/97 and $50,000,000
U.S. Treasury Notes 4.375% due 8/15/96, approximate aggregate value
$211,609,106.
NOTE 4. 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 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, 1996, 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 permits an
investment company directly or indirectly to pay expenses associated with
the distribution of its shares ("distribution expenses") in accordance
<PAGE>
- --------------------------------------------------------------------------------
SUNAMERICA MONEY MARKET FUND
NOTES TO FINANCIAL STATEMENTS--JUNE 30, 1996 (UNAUDITED)--(CONTINUED)
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.
Under the Class B Plan the Distributor receives 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 an annual rate of 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, 1996, SACS
earned fees of $449,155 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, 1996, SACS informed the Fund that
it received approximately $241,543 in contingent deferred sales charges.
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,
1996 the Fund (Class A, Class B) incurred expenses of $343,115 to reimburse
SAFS pursuant to the terms of the Service Agreement. Of this amount, $67,231
was payable to SAFS at June 30, 1996.
NOTE 5. CAPITAL SHARE TRANSACTIONS
Transactions in shares of each class, all at $1.00 per share, for the six
months ended June 30, 1996 and for the prior year were as follows:
<TABLE>
<CAPTION>
MONEY MARKET FUND
--------------------------------------------------------------
CLASS A CLASS B
------------------------------- -----------------------------
FOR THE FOR THE
SIX MONTHS ENDED FOR THE SIX MONTHS ENDED FOR THE
JUNE 30, YEAR ENDED JUNE 30, YEAR ENDED
1996 DECEMBER 31, 1996 DECEMBER 31,
(UNAUDITED) 1995 (UNAUDITED) 1995
---------------- -------------- ---------------- ------------
<S> <C> <C> <C> <C>
Shares sold............. 694,010,309 1,100,031,147 79,235,906 445,571,488
Reinvested dividends.... 6,743,833 12,194,638 649,921 2,179,516
Shares redeemed......... (688,883,810) (1,009,865,935) (87,744,687) (494,334,685)
------------ -------------- ----------- ------------
Net increase (decrease). 11,870,332 102,359,850 (7,858,860) (46,583,681)
============ ============== =========== ============
</TABLE>
<PAGE>
SUNAMERICA MONEY MARKET FUND
NOTES TO FINANCIAL STATEMENTS--JUNE 30, 1996 (UNAUDITED)--(CONTINUED)
NOTE 6. 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, but in no event
for a period greater than 10 years, 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 SunAmerica mutual
fund for the calendar year in which such birthday occurs. In addition, an
amount equal to 8.5% of any amounts credited under the preceding clause
during prior years, is added to each Eligible Director's account until such
Eligible Director reaches his or her 70th birthday. An Eligible Director may
receive 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, 1996, the Fund had accrued $23,090 for the Retirement Plan, which is
included in accrued expenses on the Statement of Assets and Liabilities and
for the six months ended June 30, 1996, expensed $7,026 for the Retirement
Plan, which is included in Directors' fees and expenses on the Statement of
Operations.
<PAGE>
- -------------------------------------------------------------------------------
SUNAMERICA MONEY MARKET FUND
TRUSTEES INVESTMENT MANAGER AND ADMINISTRATOR
S. James Coppersmith SunAmerica Asset Management Corp.
Samuel M. Eisenstat The SunAmerica Center
Stephen J. Gutman 733 Third Avenue
Peter A. Harbeck New York, NY 10017-3204
Peter McMillan III
Sebastiano Sterpa DISTRIBUTOR
SunAmerica Capital Services, Inc.
OFFICERS The SunAmerica Center
Peter A. Harbeck, President 733 Third Avenue
Nancy Kelly, Vice President New York, NY 10017-3204
P. Christopher Leary, Vice President
Robert M. Zakem, Secretary SHAREHOLDER SERVICING AGENT
Peter C. Sutton, Treasurer SunAmerica Fund Services, Inc.
John T. Genoy, Assistant Treasurer The SunAmerica Center
Donna M. Handel, Assistant Treasurer 733 Third Avenue
Hilary R. Kastleman, Assistant Secretary New York, NY 10017-3204
Abbe P. Stein, Assistant Secretary
CUSTODIAN AND TRANSFER AGENT
State Street Bank & Trust Company
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
CLASS CLASS
-------- --------
EQUITY FUNDS A B INCOME FUNDS A B
--- --- --- ---
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
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
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June 30, 1996
SunAmerica
Money Market
Fund
Semiannual
Report
[LOGO] SunAmerica
Asset Management
800.858.8850
