<PAGE>
- --------------------------------------------------------------------------------
SUNAMERICA MONEY MARKET FUND
SHAREHOLDER LETTER
February 1, 1996
Dear Shareholder:
As the Federal Reserve orchestrated a picture perfect soft landing for the
economy, 1995 finished as a very good year for investors. When the Department
of Commerce releases its data it will show an economy which grew 2% based on
the Gross Domestic Product, with inflation around 2.5%. This soft landing
differs from other cycles in two ways, unemployment declined and short-term
rates remained high while long-term rates declined. This phenomenon is called a
flattening of the yield curve and occurs when investors believe that inflation
is not going to rise and reduce the value of future investments. The flattening
of the yield curve benefited the shareholders of the Fund in 1995 because it
resulted in higher yields throughout the year, which is atypical in a slowing
economy.
We start 1996 with some important issues facing us: will we get a balanced
budget resolution and how resilient is the economy? It appears that the
politicians have not practiced the art of compromise thus far; however, we
believe the process will inevitably lead to a resolution that will be
beneficial to all Americans. Another issue of importance is the future
direction of the economy. Consumers are concerned about their long-term
employment prospects and generally have too much debt. Some of the reasons why
there is concern includes the continuation of consolidations (e.g., Chase and
Chemical Bank), downsizings (e.g., AT&T) and bankruptcies (e.g., retail sector)
in corporate America, all of which give consumers reasons not to spend more
than in the past. Inventories of unsold goods are high, and the harsh winter
has magnified this problem as we begin the new spring selling season. Lastly,
the export picture is not quite as optimistic as many economists thought. Many
countries in Europe are, surprisingly, economically weak, and the recent rise
in the U.S. Dollar will make our products more expensive and therefore less
desirable abroad.
The SunAmerica Money Market Fund performed well in 1995 because of the longer
average maturity maintained throughout most of the year. Currently the average
maturity stands at approximately 45 days. As always, we are focusing on credit
quality and liquidity as we continue to provide you with a very competitive
yield.
/s/ P. Christopher Leary
P. Christopher Leary
Portfolio Manager
<PAGE>
- --------------------------------------------------------------------------------
SUNAMERICA MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS AT DECEMBER 31, 1995
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
SECURITY DESCRIPTION (IN THOUSANDS) RATE* MATURITY (NOTE 2)
- --------------------------------------------------------------------------------------------------
COMMERCIAL PAPER--62.7%
<S> <C> <C> <C> <C>
Abbey National North America $ 5,000 5.71% 1/05/96 $ 4,996,828
Accor S.A. 7,961 5.62 3/01/96 7,886,432
AT&T Capital Corp. 5,000 5.70 1/10/96 4,992,875
Banque Internationale a Luxembourg, Inc. 8,000 5.70 1/09/96 7,989,867
Cemex S.A. 5,000 5.69 2/22/96 4,958,906
Chemical Banking Corp. 5,000 5.72 1/31/96 4,976,167
Corporacion Andina de Fomento 8,000 5.74 1/31/96 7,961,733
Cosco Co. Ltd. 10,000 5.72 2/13/96 9,931,678
CPC International, Inc.# 5,000 5.71 1/12/96 4,991,276
Fayette Funding L.P. 10,000 5.73 2/14/96 9,929,967
General Electric Capital Corp. 7,000 5.58 3/08/96 6,927,305
Golden Peanut Co. 3,000 5.65 2/21/96 2,975,988
Goldman Sachs Group L.P. 10,000 5.60 4/09/96-4/17/96 9,839,778
Hanson Finance PLC 7,000 5.58 3/07/96 6,928,390
Indosuez N.A., Inc. 7,000 5.71 1/04/96 6,996,669
International Securitization Corp. 16,130 5.75-6.00 1/04/96-3/07/96 16,070,421
Island Finance Puerto Rico, Inc. 4,487 5.67 2/23/96 4,449,545
JMG Funding L.P. 9,000 5.73 1/17/96 8,977,080
Mayne Nickless Ltd. 5,000 5.75 2/07/96 4,970,451
Merrill Lynch & Co., Inc. 16,000 5.68-5.70 1/16/96-3/06/96 15,889,334
Morgan (J.P.) & Co., Inc. 7,000 5.58 1/03/96 6,997,830
Morgan Stanley Group, Inc. 8,000 5.75 1/30/96 7,962,944
Orix America, Inc.# 11,500 5.77-6.00 2/01/96-3/15/96 11,387,033
Petroleos de Venezuela S.A. 7,000 5.60 3/08/96 6,927,044
Quebec (Province of) 8,000 5.70 1/30/96 7,963,267
Southland Corp. 7,000 5.70 3/05/96 6,929,067
SRD Finance, Inc. 5,000 6.05 1/18/96 4,985,715
Telefonica N.A., Inc. 8,000 5.65 4/01/96 7,885,744
TMI-1 Fuel Corp. 10,000 5.78 1/11/96 9,983,944
Windmill Funding Corp.# 6,000 5.80 1/25/96 5,976,800
Working Capital Management Co. L.P. 1,114 6.10 2/09/96 1,106,638
------------
TOTAL COMMERCIAL PAPER 230,746,716
(amortized cost $230,746,716) ------------
GOVERNMENT AGENCIES--5.5%
Agency for International Development India+ 4,000 5.50 1/03/96 4,011,699
Agency for International Development Isra-
el+ 3,975 5.50 1/03/96 3,974,755
Agency for International Development Pana-
ma+ 5,365 6.40 1/03/96 5,400,379
Federal Farm Credit Bank+ 7,000 5.93 3/17/96 7,000,318
------------
TOTAL GOVERNMENT AGENCIES 20,387,151
(amortized cost $20,387,151) ------------
</TABLE>
<PAGE>
- --------------------------------------------------------------------------------
SUNAMERICA MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS AT DECEMBER 31, 1995--(CONTINUED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
SECURITY DESCRIPTION (IN THOUSANDS) RATE* MATURITY (NOTE 2)
- -------------------------------------------------------------------------------------------------------
MEDIUM TERM NOTES--18.9%
<S> <C> <C> <C> <C> <C>
Bear Stearns & Co., Inc.+ $15,000 5.94-6.16% 1/25/96-3/18/96 $ 15,013,741
Carolina Power & Light Co. 2,500 5.13 4/01/96 2,495,150
Citicorp 1,000 9.35 6/03/96 1,012,249
Ford Motor Credit Co. 3,500 8.25 5/15/96 3,525,304
Goldman Sachs & Co.#+ 6,000 6.11 1/15/96 6,001,267
Gulf Coast Texas, I.D.A.+ 10,000 6.15 1/02/96 10,000,000
Liberty Mutual Capital Corp. 6,000 8.50 7/08/96 6,070,144
NBD Bank 8,000 6.40 4/25/96-4/29/96 7,999,812
Norwest Corp., Series D+ 2,000 5.93 1/17/96 2,000,162
PNC Bank, N.A.+ 13,000 5.58-5.87 1/03/96-1/16/96 12,993,263
World Saving and Loan Association 2,500 4.85 4/01/96 2,493,192
------------
TOTAL MEDIUM TERM NOTES 69,604,284
(amortized cost $69,604,284) ------------
TAXABLE MUNICIPAL MEDIUM TERM
NOTES--9.6%
Illinois Student Assistance Corp.+ 14,300 5.83-6.16 1/03/96 14,300,000
New Hampshire State Industrial
Development Authority 13,000 5.85 2/13/96 13,000,000
State of Texas Veteran's Housing Assis- 7,900,000
tance+ 7,900 5.86 1/03/96 ------------
TOTAL TAXABLE MUNICIPAL MEDIUM TERM
NOTES 35,200,000
(amortized cost $35,200,000) ------------
TOTAL INVESTMENT SECURITIES 355,938,151
(amortized cost $355,938,151) ------------
REPURCHASE AGREEMENT--3.1%
Joint Repurchase Agreement Account (Note
3) 11,284,000
(cost $11,284,000) 11,284 5.82 1/02/96 ------------
TOTAL INVESTMENTS--
(amortized cost $367,222,151**) 99.8% 367,222,151
Other assets less liabilities-- 0.2 884,521
----- ------------
NET ASSETS 100.0% $368,106,672
===== ============
</TABLE>
- --------
*Rates shown are rates in effect as of December 31, 1995
** At December 31, 1995 the cost of securities for Federal income tax purposes
was the same as for book purposes
# Resale restricted to qualified institutional buyers
+ 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>
Finance 23.0% Telecommunication 3.5% Electronics 1.9%
Securities Holding Electric 3.4 Retail 1.9
Company 14.9 Food & Beverages 2.2 Oil & Gas 1.9
Municipalities 12.3 Foreign Government 2.2 Insurance 1.7
Banking 11.9 Lodging 2.1 Materials 1.3
Government Savings & Loan 2.0 Automotive 1.0
Agencies 5.5 ----
Transportation 4.0 96.7%
====
</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 DECEMBER 31, 1995
<TABLE>
<S> <C>
ASSETS:
Investment securities, at value (amortized cost $367,222,151)....... $367,222,151
Cash................................................................ 54,972
Interest receivable................................................. 1,529,704
Receivable for fund shares sold..................................... 968,111
Prepaid expenses.................................................... 80,716
------------
Total assets....................................................... 369,855,654
------------
LIABILITIES:
Payable for fund shares repurchased................................. 1,273,748
Accrued expenses.................................................... 237,047
Investment advisory and management fees payable..................... 154,763
Distribution and service maintenance fees payable................... 78,013
Dividends payable................................................... 5,411
------------
Total liabilities.................................................. 1,748,982
------------
Net assets....................................................... $368,106,672
============
NET ASSETS WERE COMPOSED OF:
Common Stock, $.001 par value....................................... $ 368,103
Additional paid-in capital.......................................... 367,639,951
------------
368,008,054
Accumulated undistributed net investment income..................... 98,618
------------
Net assets....................................................... $368,106,672
============
CLASS A (UNLIMITED SHARES AUTHORIZED):
Net asset value ($316,307,871/316,304,820 shares outstanding)...... $1.00
=====
CLASS B (UNLIMITED SHARES AUTHORIZED):
Net asset value ($51,798,801/51,797,995 shares outstanding)........ $1.00
=====
</TABLE>
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 1995
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
Interest.............................................. $18,765,665
-----------
EXPENSES:
Investment advisory and management fees............... $1,560,968
Service maintenance fees--Class A..................... 373,008
Distribution and service maintenance fees--Class B.... 571,694
Transfer agent and shareholder servicing fees and
expenses--Class A.................................... 653,088
Transfer agent and shareholder servicing fees and
expenses--Class B.................................... 176,054
Custodian fees and expenses........................... 127,419
Registration fees--Class A............................ 59,457
Registration fees--Class B............................ 14,175
Directors' fees and expenses.......................... 40,061
Audit and tax consulting fees......................... 30,715
Printing expense...................................... 11,315
Legal fees and expenses............................... 10,985
Insurance expense..................................... 7,209
Miscellaneous expenses................................ 17,005 3,653,153
----------
Less: expense offset.................................. (195,627)
-----------
Net expenses.......................................... 3,457,526
-----------
Net investment income................................. 15,308,139
-----------
INCREASE IN NET ASSETS RESULTING FROM OPERATIONS...... $15,308,139
===========
</TABLE>
See Notes to Financial Statements
<PAGE>
- --------------------------------------------------------------------------------
SUNAMERICA MONEY MARKET FUND
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE YEAR FOR THE YEAR
ENDED ENDED
DECEMBER 31, 1995 DECEMBER 31, 1994
----------------- -----------------
<S> <C> <C>
INCREASE IN NET ASSETS:
OPERATIONS:
Net investment income..................... $ 15,308,139 $ 9,362,232
------------ ------------
Net increase in net assets resulting from
operations............................... 15,308,139 9,362,232
DIVIDENDS AND DISTRIBUTIONS TO
SHAREHOLDERS:
From net investment income (Class A)...... (12,540,465) (7,019,390)
From net investment income (Class B)...... (2,793,748) (2,312,911)
------------ ------------
Total dividends and distributions to
shareholders............................. (15,334,213) (9,332,301)
INCREASE IN NET ASSETS FROM FUND SHARE
TRANSACTIONS (NOTE 5)..................... 55,776,169 81,252,104
------------ ------------
Total increase in net assets.............. 55,750,095 81,282,035
NET ASSETS:
Beginning of year......................... 312,356,577 231,074,542
------------ ------------
End of year (including undistributed net
investment income of $98,618 and $124,692
at December 31, 1995 and December 31,
1994, respectively)...................... $368,106,672 $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
12/31/95 1.000 0.051 0.051 (0.051) 1.000 5.18 316,308 1.01(2) 5.04
<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
</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 of .05% and .13% for Class A and Class B,
respectively
(3) Total return is not annualized
(4) Annualized
See Notes to Financial Statements
<PAGE>
- --------------------------------------------------------------------------------
SUNAMERICA MONEY MARKET FUND
NOTES TO FINANCIAL STATEMENTS--DECEMBER 31, 1995
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--DECEMBER 31, 1995--(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 December 31, 1995, the Fund had a 6.8% undivided interest, which
represented $11,284,000 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, 5.82% dated
12/29/95, in the principal amount of $164,950,000 repurchase price
$165,056,668 due 1/2/96 collateralized by $17,455,000 U.S. Treasury Notes
5.75% due 8/15/03, $50,000,000 U.S. Treasury Notes 4.75% due 8/31/98,
$18,735,000 U.S. Treasury Notes 5.125% due 3/31/98, $5,000,000 U.S. Treasury
Notes 5.50% due 9/30/97, $50,000,000 U.S. Treasury Notes 5.50% due 9/30/97,
$18,955,000 U.S. Treasury Notes 7.50% due 12/31/96 and $4,885,000 U.S.
Treasury Notes 5.625% due 6/30/97, approximate aggregate value $168,257,239.
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 year
ended December 31, 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 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
<PAGE>
- --------------------------------------------------------------------------------
SUNAMERICA MONEY MARKET FUND
NOTES TO FINANCIAL STATEMENTS--DECEMBER 31, 1995--(CONTINUED)
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 year ended December 31, 1995, SACS
earned fees of $944,702 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 year ended December 31, 1995, SACS informed the Fund that it
received approximately $372,779 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 year ended December 31, 1995
the Fund (Class A, Class B) incurred expenses of $686,826 to reimburse SAFS
pursuant to the terms of the Service Agreement. Of this amount, $68,096 was
payable to SAFS at December 31, 1995.
NOTE 5. CAPITAL SHARE TRANSACTIONS
Transactions in shares of each class, all at $1.00 per share, for the year
ended December 31, 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
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
1995 1994 1995 1994
-------------- ------------ ------------ ------------
<S> <C> <C> <C> <C>
Shares sold............. 1,100,031,147 904,696,309 445,571,488 504,544,389
Reinvested dividends.... 12,194,638 6,720,048 2,179,516 1,759,780
Shares redeemed......... (1,009,865,935) (886,631,162) (494,334,685) (449,837,260)
-------------- ------------ ------------ ------------
Net increase (decrease). 102,359,850 24,785,195 (46,583,681) 56,466,909
============== ============ ============ ============
</TABLE>
<PAGE>
- --------------------------------------------------------------------------------
SUNAMERICA MONEY MARKET FUND
NOTES TO FINANCIAL STATEMENTS--DECEMBER 31, 1995--(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
December 31, 1995, the Fund had accrued $16,064 for the Retirement Plan,
which is included in accrued expenses on the Statement of Assets and
Liabilities and for the year ended December 31, 1995, expensed $12,175 for
the Retirement Plan, which is included in Directors' fees and expenses on
the Statement of Operations.
<PAGE>
- --------------------------------------------------------------------------------
SUNAMERICA MONEY MARKET FUND
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Directors and Shareholders of
SunAmerica Money Market Fund
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 Fund (the
"Fund") at December 31, 1995, 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 generally accepted accounting principles.
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 generally accepted auditing standards which require that we plan and
perform the audit 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, 1995 by correspondence with the custodian, provide a
reasonable basis for the opinion expressed above.
Price Waterhouse LLP
1177 Avenue of the Americas
New York, New York
February 13, 1996
<PAGE>
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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.
The SunAmerica Center
OFFICERS 733 Third Avenue
Peter A. Harbeck, President New York, NY 10017-3204
Nancy Kelly, Vice President
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
<TABLE>
<CAPTION>
CLASS
-------
A B
EQUITY FUNDS --- ---
<S> <C> <C>
Balanced Assets 51 551
Global Balanced 23 523
Blue Chip Growth 522 22
Mid-Cap Growth 71 571
Small Company Growth 36 536
Growth and Income 24 524
</TABLE>
<TABLE>
<CAPTION>
CLASS
-------
A B
INCOME FUNDS --- ---
<S> <C> <C>
U.S. Government
Securities 70 570
Federal Securities 534 34
Diversified Income 580 80
High Income 28 228
Tax Exempt Insured 33 533
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>
- -------------------------------
BULK RATE
SUNAMERICA MONEY MARKET FUND
U.S.
THE SUNAMERICA CENTER POSTAGE
733 THIRD AVENUE PAID
NEW YORK, NY 10017-3204 Kansas
City, MO
PERMIT NO.
1-800-858-8850 3657
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.
SPONSORED BY:
[LOGO] SunAmerica
Asset Management
MMANN
December 31, 1995
SunAmerica
Money Market
Fund
Annual
Report
[LOGO] SunAmerica
Asset Management
