<PAGE>
- --------------------------------------------------------------------------------
SUNAMERICA MONEY MARKET FUND
SHAREHOLDER LETTER
- --------------------------------------------------------------------------------
August 14, 1997
Dear Shareholder:
The SunAmerica Money Market Fund's investment objective is to seek as high a
level of current income as is consistent with liquidity and stability of
capital by investing primarily in high quality, short-term money market
instruments.
For the six month period ended June 30, 1997, the Fund's Class A share's
total return was 2.12% and the Fund's SEC seven-day yield was 5.05%. Since the
Fund invests only in short-term obligations with a maturity of 13 months or
less, its performance generally tracks the short-term market levels.
The Federal Reserve raised short-term interest rates on March 25, 1997 by 25
basis points in response to an expanding economy. It was their belief, given
the strong economic data and the increases in employment, wage inflation would
cause the economy undue stress. The raise in rates was a precautionary measure
that proved effective as the economy has been able to continue its growth
without generating significant inflationary pressure. After the increase in
short rates, we extended the average maturity of the Fund to a level slightly
longer than the Donoghue Average, a move which has proven to be quite
beneficial. This action has allowed us to earn more on slightly longer money
market securities than by simply investing the assets over night.
As we enter the third quarter of the year, we are becoming more concerned
with the strength and resiliency of the U.S. economy. The current growth rate
and prospects for growth still point to an economy that is continuing to
expand above the Federal Reserve's target level of 3%. However, we have yet to
see the familiar signs of inflation. Our outlook on future Federal Reserve
action remains cautious. We believe that the consumer has become more
conservative in their spending patterns, despite an expected strong "back to
school" shopping season. If the economic data continues to be stronger than
the Federal Reserve's desired level, we could see a tightening in monetary
policy at the November meeting.
The Fund's strategy remains conservative. We expect to shorten the average
maturity of the Fund to track that of the Donoghue Average and will focus on
the issuers of securities which we believe offer the greatest level of
liquidity.
/s/ P. Christopher Leary
P. Christopher Leary
Portfolio Manager
<PAGE>
- --------------------------------------------------------------------------------
SUNAMERICA MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS AT JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
SECURITY DESCRIPTION (IN THOUSANDS) RATE** MATURITY (NOTE 2)
- -----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ASSET BACKED SECURITIES--2.3%
Americredit Automobile
Receivable Trust $ 4,327 5.52% 4/06/98 $ 4,326,568
Capital Equipment
Receivable Trust 1,889 5.60 10/15/97 1,888,667
Standard Credit Card
Master Trust 5,000 5.86 9/15/97 5,002,876
------------
TOTAL ASSET BACKED SECURITIES
(amortized cost $11,218,111) 11,218,111
------------
BANKERS ACCEPTANCE--6.0%
Dai-Itchi Kango Bank 8,000 5.70 8/06/97 7,954,400
Industrial Bank of Japan Ltd. 7,000 5.70 7/01/97 7,000,000
Sanwa Bank Ltd. 14,000 5.64-5.71 7/14/97-8/14/97 14,021,366
------------
TOTAL BANKERS ACCEPTANCE
(amortized cost $28,975,766) 28,975,766
------------
CERTIFICATES OF DEPOSIT--12.5%
Bank of Tokyo Mitsubishi Ltd. 12,000 5.76 9/19/97 12,000,526
Dai-Itchi Kango Bank 8,000 5.86 8/05/97 8,000,230
Industrial Bank of Japan Ltd. 7,000 5.85 7/18/97 7,000,065
Norinchuken Bank 10,000 5.78 7/02/97 10,000,006
Rabobank Nederland N.V. 13,000 6.07-6.20 3/26/98-4/09/98 12,999,266
Societe Generale Institutional 10,000 6.35 4/15/98 9,998,497
------------
TOTAL CERTIFICATES OF DEPOSIT
(amortized cost $59,998,590) 59,998,590
------------
COMMERCIAL PAPER--47.5%
American Home Products Corp. 6,000 5.56 7/15/97 5,987,027
Australian Wheat Board 6,000 5.63 8/07/97 5,965,282
Bil North America, Inc. 10,000 5.65 7/17/97 9,974,889
Cemex SA, Series B 10,000 5.67 8/11/97 9,935,425
Certain Funding Corp. 7,000 5.63 7/11/97 6,989,053
Cregem North America, Inc. 7,000 5.60 8/29/97 6,935,756
Demir Funding Corp. 10,000 5.59 10/14/97 9,836,958
Eksportinas ASA 6,000 5.60 8/29/97 5,944,933
First Deposit Master Trust 8,000 5.60 7/15/97 7,982,578
Garanti Funding Corp., Series A 10,000 5.65 7/11/97 9,984,305
Goldman Sachs Group L.P. 10,000 5.73 1/20/98 9,676,892
Greenwich Asset Funding, Inc. 10,000 5.58 8/13/97 9,933,350
Guinness PLC 8,000 5.62 7/21/97 7,975,022
Island Finance Puerto Rico, Inc. 8,000 5.62 7/10/97 7,988,760
Madison Funding Corp. 7,130 5.66 7/28/97 7,099,733
Merrill Lynch & Co., Inc. 18,000 5.62-5.63 7/09/97-8/20/97 17,911,815
Mitsui & Co. USA, Inc. 16,000 5.60-5.68 7/22/97-8/12/97 15,920,854
Oak Funding Corp. 8,500 5.65 8/14/97 8,441,303
Old Line Funding Corp. 11,721 5.60 9/12/97 11,587,901
Sinochem American CP, Inc. 8,000 5.61 8/08/97 7,952,627
Southwestern Bell Telephone Co. 20,000 6.15 7/01/97 20,000,000
Sumitomo Corp. of America 7,000 5.78 8/22/97 6,941,558
Sunbelt-DIX, Inc. 6,000 5.60 9/16/97 5,928,133
Transportadora de Gas Del Sur 5,000 5.65 7/24/97 4,981,951
USAA Capital Corp. 6,000 5.60 7/07/97 5,994,400
------------
TOTAL COMMERCIAL PAPER
(amortized cost $227,870,505) 227,870,505
------------
</TABLE>
<PAGE>
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SUNAMERICA MONEY MARKET FUND
PORTFOLIO OF INVESTMENTS AT JUNE 30, 1997 (UNAUDITED) -- (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT VALUE
SECURITY DESCRIPTION (IN THOUSANDS) RATE** MATURITY (NOTE 2)
- ------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
GOVERNMENT AGENCIES-- 4.7%
Agency for International Development India+ $ 3,000 5.52% 7/01/97 $ 3,005,105
Agency for International Development Israel+ 2,812 5.78 7/01/97 2,812,321
Agency for International Development Panama+ 4,952 5.89 7/01/97 4,982,444
Federal National Mortgage Association
Discount Notes 12,000 5.57 10/09/97 11,814,333
------------
TOTAL GOVERNMENT AGENCIES
(amortized cost $22,614,203) 22,614,203
------------
MEDIUM TERM NOTES--16.6%
American Express Centurion Bank 5,000 5.66 7/09/97 5,000,000
Asset Backed Securities Investments 11,000 5.48 7/16/97 11,000,000
Bear Stearns Cos., Inc.+ 20,500 5.69-5.89 7/03/97-7/17/97 20,513,036
Boatmen's National Bank of St. Louis+ 8,000 5.67 7/08/97 7,999,838
Fleet Financial Group 5,000 5,91 9/29/97 5,001,486
PNC Bank, N.A. 15,000 5.60 12/11/97 14,996,459
Sigma Finance Corp. 6,000 6.28 4/24/98 6,000,000
Sony Capital Corp.+ 9,000 5.78 8/29/97 9,000,000
------------
TOTAL MEDIUM TERM NOTES
(amortized cost $79,510,819) 79,510,819
------------
TAXABLE MUNICIPAL MEDIUM TERM NOTES--8.2%
Illinois Student Assistance Corp.+ 21,000 5.65 7/02/97 21,000,000
New Hampshire State Industrial Development
Authority 11,000 5.51 7/23/97 10,999,994
Texas G.O.+ 7,415 5.63 7/02/97 7,415,000
------------
TOTAL TAXABLE MUNICIPAL MEDIUM TERM NOTES
(amortized cost $39,414,994) 39,414,994
------------
TOTAL INVESTMENT SECURITIES
(amortized cost $469,602,988) 469,602,988
------------
REPURCHASE AGREEMENTS--1.5%
Joint Repurchase Agreement Account (Note 3)
Chase Securities, Inc. 835 5.65 7/01/97 835,000
Yamaichi International (America), Inc. 6,365 5.90 7/01/97 6,365,000
------------
TOTAL REPURCHASE AGREEMENTS
(cost $7,200,000) 7,200,000
------------
TOTAL INVESTMENTS
(amortized cost $476,802,988*) 99.3% 476,802,988
Other assets less liabilities 0.7 3,294,519
----- ------------
NET ASSETS 100.0% $480,097,507
===== ============
</TABLE>
- --------
* At June 30, 1997 the cost of securities for Federal income tax purposes was
the same for book purposes
** Rates shown are rates in effect as of June 30, 1997
+ Variable rate security; maturity date reflects the next reset date
G.O.--General Obligation
PORTFOLIO BREAKDOWN AS A PERCENTAGE OF NET ASSETS (EXCLUDING REPURCHASE
AGREEMENT) BY INDUSTRY@
<TABLE>
<S> <C>
Banking 23.3%
Finance 18.9
Financial Services 10.6
Securities Holding Company 10.0
Municipalities 8.2
Industrial 7.7
Receivables Company 6.3
Government Agencies 4.7
Utilities 4.2
Food & Beverages 1.7
Sovereign 1.2
Consumer Credit Services 1.0
----
97.8%
====
</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, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
ASSETS:
Investment securities, at value (amortized cost $476,802,988)....... $476,802,988
Receivable for fund shares sold..................................... 9,863,768
Interest receivable................................................. 1,544,023
Prepaid expenses.................................................... 84,692
------------
Total assets....................................................... 488,295,471
------------
LIABILITIES:
Payable for fund shares repurchased................................. 6,441,632
Dividends payable................................................... 938,142
Accrued expenses.................................................... 278,566
Due to custodian bank............................................... 265,179
Investment advisory and management fees payable..................... 197,536
Distribution and service maintenance fees payable................... 76,909
------------
Total liabilities.................................................. 8,197,964
------------
Net assets...................................................... $480,097,507
============
NET ASSETS WERE COMPOSED OF:
Common Stock, $.001 par value (10 billion shares authorized)........ $ 480,073
Additional paid-in capital.......................................... 479,487,214
------------
479,967,287
Accumulated undistributed net investment income..................... 130,220
------------
Net assets...................................................... $480,097,507
============
CLASS A:
Net asset value ($452,007,629/451,987,502 shares outstanding)...... $1.00
=====
CLASS B:
Net asset value ($28,089,878/28,085,102 shares outstanding)........ $1.00
=====
</TABLE>
- --------------------------------------------------------------------------------
STATEMENT OF OPERATIONS FOR THE SIX MONTHS ENDED JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
Interest.............................................. $13,265,391
-----------
EXPENSES:
Investment advisory and management fees............... $1,179,567
Service maintenance fees--Class A..................... 326,388
Distribution and service maintenance fees--Class B.... 164,895
Transfer agent and shareholder servicing fees and ex-
penses--Class A...................................... 555,627
Transfer agent and shareholder servicing fees and ex-
penses--Class B...................................... 48,255
Directors' fees and expenses.......................... 66,559
Custodian fees and expenses........................... 53,270
Registration fees--Class A............................ 40,744
Registration fees--Class B............................ 3,664
Audit and tax consulting fees......................... 18,140
Printing expense...................................... 15,480
Insurance expense..................................... 2,547
Legal fees and expenses............................... 2,060
Miscellaneous expenses................................ 3,185
----------
2,480,381
Less: expense offset.................................. (72,902)
-----------
Net expenses.......................................... 2,407,479
-----------
Net investment income................................. 10,857,912
-----------
INCREASE IN NET ASSETS RESULTING FROM OPERATIONS...... $10,857,912
===========
</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, 1997 ENDED
(UNAUDITED) DECEMBER 31, 1996
------------------------------------
<S> <C> <C>
INCREASE IN NET ASSETS:
OPERATIONS:
Net investment income................... $ 10,857,912 $ 17,081,743
------------ ------------
Net increase in net assets resulting
from operations........................ 10,857,912 17,081,743
DIVIDENDS AND DISTRIBUTIONS TO
SHAREHOLDERS:
From net investment income (Class A).... (10,133,467) (15,491,408)
From net investment income (Class B).... (710,098) (1,583,636)
------------ ------------
Total dividends and distributions to
shareholders........................... (10,843,565) (17,075,044)
INCREASE IN NET ASSETS FROM FUND SHARE
TRANSACTIONS (NOTE 5)................... 52,270,659 59,699,130
------------ ------------
Total increase in net assets............ 52,285,006 59,705,829
NET ASSETS:
Beginning of year....................... 427,812,501 368,106,672
------------ ------------
End of period (including undistributed
net investment income of $130,220 and
$105,317 at June 30, 1997 and December
31, 1996, respectively)................ $480,097,507 $427,812,501
============ ============
</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>
12/31/93 $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
12/31/96 1.000 0.045 0.045 (0.045) 1.000 4.61 398,698 1.00(3) 4.52
06/30/97(6) 1.000 0.021 0.021 (0.021) 1.000 2.12 452,008 0.99(3)(5) 4.66(5)
<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%(4) $41,915 1.69%(5) 1.69%(5)
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
12/31/96 1.000 0.038 0.038 (0.038) 1.000 3.83 29,114 1.77(3) 3.76
06/30/97(6) 1.000 0.017 0.017 (0.017) 1.000 1.76% 28,090 1.75(3)(5) 3.88(5)
</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 for the year ended December 31, 1995 of 0.05% and
0.13% for Class A and Class B, respectively.
(3) The expense ratio reflects the effect of a gross up of transfer agent
expense credits as follows:
<TABLE>
<CAPTION>
12/31/96 6/30/97
-------- -------
<S> <C> <C>
Class A......... 0.03% 0.03%
Class B......... 0.04% 0.01%
</TABLE>
(4) Total return is not annualized
(5) Annualized
(6) Unaudited
See Notes to Financial Statements
<PAGE>
- --------------------------------------------------------------------------------
SUNAMERICA MONEY MARKET FUND
NOTES TO FINANCIAL STATEMENTS--JUNE 30, 1997 (UNAUDITED)
- --------------------------------------------------------------------------------
NOTE 1. ORGANIZATION
SunAmerica Money Market Fund (the "Fund") is an open-end diversified
management investment company organized as a Maryland Corporation.
The Fund currently offers 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, 1997 (UNAUDITED)--(CONTINUED)
- --------------------------------------------------------------------------------
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, 1996, the Fund incurred capital loss of
$15,566 which was offset against interest income on the Statement of
Operations. At December 31, 1996, the Fund had capital loss carryforwards in
the following amounts:
<TABLE>
<CAPTION>
EXPIRATION
--------------------------------------------------------------
2002 2003 2004
------ ------- -------
<S> <C> <C>
$5,892 $11,725 $15,660
</TABLE>
To the extent that these capital loss carryforwards are utilized to offset
future net realized gains on securities transactions, the gain, so offset
will not be distributed to the shareholders, to the extent provided by the
regulations.
Capital losses incurred after October 31 within the Fund's fiscal year are
deemed to arise on the first business day of the following fiscal year for
tax purposes. The fund has incurred and will elect to defer $820 of such
capital losses.
NOTE 3. JOINT REPURCHASE AGREEMENT ACCOUNT
As of June 30, 1997, the Fund had a 1.7% undivided interest, which
represented $835,000 in principal amount, in a repurchase agreement in a
joint account with Chase Securities, Inc. and a 7.7% undivided interest,
which represented $6,365,000 in principal amount in a repurchase agreement
in a joint account with Yamaichi International (America), Inc. As of such
date, the repurchase agreements in the joint account and the collateral
therefore was as follows:
Chase Securities, Inc., Repurchase Agreement, 5.65% dated 6/30/97, in the
principal amount of $49,405,000 repurchase price $49,412,754 due 7/01/97
collateralized by $41,520,000 U.S. Treasury Bonds 8.50% due 2/15/20,
approximate aggregate value $50,394,900.
Yamaichi International (America), Inc., Repurchase Agreement, 5.90% dated
6/30/97, in the principal amount of $82,450,000 repurchase price $82,463,513
due 7/01/97 collateralized by $19,395,000 U.S. Treasury Bonds 7.625% due
11/15/22 and $45,810,000 U.S. Treasury Bonds 7.25% due 5/15/16 and
$13,875,000 U.S. Treasury Notes 8.00% due 5/15/01, approximate aggregate
value $84,105,712.
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.
<PAGE>
- --------------------------------------------------------------------------------
SUNAMERICA MONEY MARKET FUND
NOTES TO FINANCIAL STATEMENTS--JUNE 30, 1997 (UNAUDITED)--(CONTINUED)
- --------------------------------------------------------------------------------
The Fund has a Distribution Agreement with SunAmerica Capital Services, Inc.
("SACS" or the "Distributor"), 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 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, 1997, SACS
earned fees of $491,283 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, 1997, SACS informed the Fund that
it received approximately $114,756 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,
1997, the Fund (Class A and Class B) incurred expenses of $519,009 to
reimburse SAFS pursuant to the terms of the Service Agreement. Of this
amount, $86,916 was payable to SAFS at June 30, 1997.
<PAGE>
- --------------------------------------------------------------------------------
SUNAMERICA MONEY MARKET FUND
NOTES TO FINANCIAL STATEMENTS--JUNE 30, 1997 (UNAUDITED)--(CONTINUED)
- --------------------------------------------------------------------------------
NOTE 5. CAPITAL SHARE TRANSACTIONS
Transactions in shares of each class, all at $1.00 per share, for the six
months ended June 30, 1997 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
1997 DECEMBER 31, 1997 DECEMBER 31,
(UNAUDITED) 1996 (UNAUDITED) 1996
---------------- -------------- ---------------- ------------
<S> <C> <C> <C> <C>
Shares sold............. 1,069,503,224 1,460,788,582 69,895,359 122,015,372
Reinvested dividends.... 9,116,002 15,326,870 544,475 1,346,953
Shares redeemed......... (1,025,320,294) (1,393,731,702) (71,468,107) (146,046,945)
-------------- -------------- ----------- ------------
Net increase (decrease). 53,298,932 82,383,750 (1,028,273) (22,684,620)
============== ============== =========== ============
</TABLE>
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, 1997, the Fund had accrued $39,240 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, 1997, expensed $8,879 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 DISTRIBUTOR
Sebastiano Sterpa 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
Abbe P. Stein, Assistant Secretary New York, NY 10017-3204
CUSTODIAN AND TRANSFER AGENT
State Street Bank & Trust Company
P.O. Box 419572
Kansas City, MO 64141-6572
- -------------------------------------------------------------------------------
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 8:30 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
Blue Chip Growth 522 22
Mid-Cap Growth 71 571
Small Company
Growth 36 536
Growth and Income 24 524
<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>
<TABLE>
<CAPTION>
CLASS
-----------
STYLE SELECT A B C
SERIES --- --- ---
<S> <C> <C> <C>
Aggressive
Growth
Portfolio 701 711 771
Mid-Cap Growth
Portfolio 702 712 772
Value Portfolio 704 714 774
International
Equity
Portfolio 703 713 773
</TABLE>
Press the following Touch-Tone Button(s) to make your selection:
[1] Fund Prices and Dividend Information
[2] To Work with Funds You Own
[3] Order Statements and Checkbooks
[4] Fund Objectives and Fund Literature Information
[5] Mailing and Wiring Instructions
[6] Year-End Information and Duplicate Tax Forms
2-1 Account Balances and Recent Transactions
2-2 Fund Prices and Dividend Information on
Funds You Own
2-3 To Process an Exchange
2-4 To Change your Personal Identification Number
. Press 0 at anytime during this recording to be transferred to a service
representative Monday - Friday, 8:30 am to 6:00 pm, EST.
. To return to the main or previous menu press "*".
. When working with a list of funds, you may touch "9" to fast forward to the
next fund, or "7" to go back to the previous fund.
<PAGE>
- --------------------------------------- -----------------
SunAmerica Money Market Fund BULK RATE
The SunAmerica Center U.S. POSTAGE
733 Third Avenue PAID
New York, NY 10017-3204 Kansas City, MO
1-800-858-8850 PERMIT NO. 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.
The accompanying report has not been examined by independent accountants and
accordingly no opinion has been expressed thereon.
Sponsored by:
[LOGO OF SUNAMERICA ASSET MANAGEMENT APPEARS HERE]
MMANN
June 30, 1997
SunAmerica
Money Market
Fund
Semiannual
Report
[LOGO OF SUNAMERICA ASSET MANAGEMENT
APPEARS HERE]
800.858.8850
