<PAGE>
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PAX WORLD 600 FIFTH AVENUE
MONEY MARKET FUND, INC. NEW YORK, N.Y. 10020
(212) 830-5200
================================================================================
Dear Shareholder:
We are pleased to present the semi-annual report of Pax World Money Market Fund,
Inc. for the period May 27, 1998 (Commencement of Sales) through July 31, 1998.
The Fund had net assets of $58,473,364 and 294 active shareholders as of July
31, 1998.
Thank you for your support and we look forward to continuing to serve your cash
management needs.
Sincerely,
\s\Thomas W. Grant \s\Laurence A. Shadek \s\Steven W. Duff
Thomas W. Grant Laurence A. Shadek Steven W. Duff
President Executive Vice-President Director
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PAX WORLD MONEY MARKET FUND, INC.
STATEMENT OF NET ASSETS
JULY 31, 1998
(UNAUDITED)
================================================================================
<TABLE>
<CAPTION>
Face Maturity Value
Amount Date Yield (Note 1)
------ ---- ----- ------
Commercial Paper (13.66%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 2,000,000 Abbott Laboratories 08/20/98 5.51% $ 1,994,815
2,000,000 Merrill Lynch & Company, Inc. 08/18/98 5.56 1,995,391
2,000,000 Nestle Capital Corporation 08/05/98 5.53 1,999,387
2,000,000 Paine Webber Group 08/17/98 5.66 1,995,621
--------------- ------------
8,000,000 Total Commercial Paper 7,985,214
--------------- ------------
<CAPTION>
Foreign Commercial Paper (3.41%)
- ------------------------------------------------------------------------------------------------------------------------------------
$ 2,000,000 Ford Credit Europe PLC 08/14/98 5.56% $ 1,996,621
--------------- ------------
2,000,000 Total Foreign Commercial Paper 1,996,621
--------------- ------------
<CAPTION>
Domestic Certificates of Deposit (6.84%)
- ------------------------------------------------------------------------------------------------------------------------------------
$ 2,000,000 Chase Manhattan Bank USA 01/15/99 5.62% $ 2,000,000
2,000,000 Morgan Guaranty Trust Company 02/02/99 5.65 1,997,687
--------------- ------------
4,000,000 Total Domestic Certificates of Deposit 3,997,687
--------------- ------------
<CAPTION>
Repurchase Agreements (75.74%)
- ----------------------------------------------------------------------------------------------------------------------------
$ 44,288,000 Morgan (J.P.) Securities, Inc.
(Collateralized by $105,100,935 GNMAs,
8.500% to 9.000%, due 07/15/16 to 06/15/27) 08/03/98 5.65% $ 44,288,000
--------------- ------------
44,288,000 Total Repurchase Agreements 44,288,000
--------------- ------------
Total Investments (99.65%) (Cost $58,267,522+) 58,267,522
Cash and Other Assets, Net of Liabilities (0.35%) 205,842
------------
Net Assets (100.00%) $ 58,473,364
============
Net Asset Value, offering and redemption price per share:
Individual Investor Class, 821,968 shares outstanding (Note 3) $ 1.00
============
Institutional Class, 57,651,396 shares outstanding (Note 3) $ 1.00
============
+ Aggregate cost for federal income tax purposes is identical.
</TABLE>
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See Notes to Financial Statements.
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PAX WORLD MONEY MARKET FUND, INC.
STATEMENT OF OPERATIONS
FOR THE PERIOD MAY 27, 1998 (COMMENCEMENT OF SALES) TO JULY 31, 1998
(UNAUDITED)
================================================================================
<TABLE>
<CAPTION>
INVESTMENT INCOME
<S> <C>
Income:
Interest................................................................. $ 365,417
-------------
Expenses: (Note 2)
Advisory fee............................................................. 9,637
Administrative services fee.............................................. 6,425
Shareholder servicing fee (Individual Investor Class).................... 460
Custodian expenses....................................................... 1,244
Shareholder servicing and related shareholder expenses................... 3,272
Legal fees, compliance and filing fees................................... 7,036
Audit and accounting..................................................... 4,267
Directors' fees.......................................................... 3,000
Amortization of organization costs....................................... 3,217
Other.................................................................... 451
-------------
Total expenses....................................................... 39,009
Less fees waived..................................................... ( 16,062)
-------------
Net expenses ........................................................ 22,947
-------------
Net investment income.................................................... 342,470
-------------
<CAPTION>
REALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain (loss) on investments.................................... -0-
-------------
Increase in net assets from operations..................................... $ 342,470
</TABLE>
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See Notes to Financial Statements.
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PAX WORLD MONEY MARKET FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS
(UNAUDITED)
================================================================================
<TABLE>
<CAPTION>
May 27, 1998
(Commencement of Sales)
to July 31, 1998
----------------
INCREASE (DECREASE) IN NET ASSETS
<S> <C>
Operations:
Net investment income............................................... $ 342,470
Net realized gain (loss) on investments............................. -0-
----------------
Increase in net assets from operations.............................. 342,470
Dividends to shareholders from net investment income:
Individual Investor Class........................................... ( 9,010)
Institutional Class................................................. ( 333,460)
Capital share transactions (Note 3):
Individual Investor Class........................................... 821,968
Institutional Class................................................. 57,551,396
----------------
Total increase (decrease)........................................... 58,373,364
Net assets:
Beginning of period................................................. 100,000
----------------
End of period....................................................... $ 58,473,364
================
</TABLE>
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See Notes to Financial Statements
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PAX WORLD MONEY MARKET FUND, INC.
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
================================================================================
1. Summary of Accounting Policies.
Pax World Money Market Fund, Inc. is a no-load, open-end management investment
company registered under the Investment Company Act of 1940. The Fund has three
classes of stock authorized, the Individual Investor Class, the Institutional
Class and the Broker Service Class. The Individual Investor Class shares are
subject to a service fee pursuant to the Fund's Rule 12b-1 Distribution and
Service Plan and are sold through financial intermediaries who provide servicing
to Individual Investor Class shareholders for which they receive compensation
from Pax World Management Corp. (the "Advisor"), Reich & Tang Asset Management,
L.P. (the "Sub-Advisor"), or Reich & Tang Distributors, Inc. ("the
Distributor"). The Institutional Class shares are not subject to a service fee
and either are sold directly to Institutional Investors or are sold through
financial intermediaries that do not receive compensation from the Advisor,
Sub-Advisor or the Distributor. The Broker Service Class shares are subject to a
service fee pursuant to the Fund's 12b-1 Distribution and Service Plan and are
sold through financial intermediaries who provide servicing to Broker Service
Class shareholders for which they receive compensation from the Advisor, the
Sub-Advisor or the Distributor. The Broker Service Class shares are subject to
an additional sub-transfer agent accounting fee. In all other respects, the
Individual Class, Institutional Class and Broker Service Class shares represent
the same interest in the income and assets of the Fund. The Fund's financial
statements are prepared in accordance with generally accepted accounting
principles for investment companies as follows:
a) Valuation of Securities -
Investments are valued at amortized cost. Under this valuation method, a
portfolio instrument is valued at cost and any discount or premium is
amortized on a constant basis to the maturity of the instrument.
b) Federal Income Taxes -
It is the Fund's policy to comply with the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute
all of its taxable income to its shareholders. Therefore, no provision for
federal income tax is required.
c) Dividends and Distributions -
Dividends from investment income (including net realized short-term capital
gains) are declared daily and paid monthly. Capital gains distributions if
any, will be made at least annually and in no event later than sixty days
after the end of the Fund's fiscal year.
d) Organization Costs -
Organization expenses are being deferred and amortized on a straight line
basis over a period of five years from the Fund's commencement of
operations. The proceeds of any redemptions by the original shareholder of
the initial shares will be reduced by a pro rata portion of any then
unamortized organizational expenses, based on the ratio of the shares
redeemed to the total initial shares outstanding immediately prior to the
redemption.
e) Use of Estimates -
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that effect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the
financial statements and the reported amounts of increases and decreases in
net assets from operations during the reporting period. Actual results
could differ from those estimates.
f) General -
Securities transactions are recorded on a trade date basis. Interest income
is accrued as earned. Realized gains and losses from securities
transactions are recorded on the identified cost basis. It is the Fund's
policy to take possession of securities as collateral under repurchase
agreements and to determine on a daily basis that the value of such
securities are sufficient to cover the value of the repurchase agreements.
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PAX WORLD MONEY MARKET FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(UNAUDITED)
================================================================================
2. Investment Management Fees and Other Transactions with Affiliates.
Under the Advisory Agreement, the Fund will pay Pax World Management Corp. (the
"Advisor") an annual advisory fee of .15% of the Fund's average daily net
assets.
Pursuant to the terms of a Sub-Advisory Agreement between the Advisor and Reich
& Tang Asset Management L.P. (the "Sub-advisor"), the Advisor will pay the
Sub-Advisor an annual management fee of .075% of the Fund's average daily net
assets from its advisory fee.
Pursuant to an Administrative Services Agreement for the Fund, the Sub-Advisor
receives an annual fee of .10% of the Fund's average daily net assets.
Pursuant to a Distribution and Service Plan adopted under Securities and
Exchange Commission Rule 12b-1, the Fund and Reich & Tang Distributors, Inc.
(the "Distributor") have entered into a Shareholder Servicing Agreement (with
respect to the Individual Investor Class and the Broker Service Class shares of
the fund only). For its services under the Shareholder Servicing Agreement, the
Distributor receives from the Fund with respect only to the Individual Investor
Class and the Broker Service Class shares, a service fee equal to .25% per annum
of the average daily net assets.
During the period ended July 31, 1998, the Advisor and the Sub-Advisor
voluntarily waived advisory and administrative services fees of $9,637 and
$6,425, respectively.
Fees are paid to Directors who are unaffiliated with the Advisor on the basis of
$1,000 per annum plus $250 per meeting attended.
Included under the caption "Shareholder servicing and related shareholder
expenses" are fees of $1,170 paid to Reich & Tang Services, Inc. an affiliate of
the Sub-Advisor as servicing agent for the Institutional Class.
3. Capital Stock.
At July 31, 1998, 20,000,000,000 shares of $.001 par value stock were authorized
and paid in capital amounted to $58,473,364. Transactions in capital stock, all
at $1.00 per share, were as follows:
<TABLE>
<CAPTION>
May 27, 1998
(Commencement of Sales) to
July 31, 1998
-------------
INDIVIDUAL INVESTOR CLASS
-------------------------
<S> <C>
Sold................................... 2,878,410
Issued on reinvestment of dividends.... 7,652
Redeemed............................... ( 2,064,094)
-------------
Net increase (decrease)................ 821,968
=============
INSTITUTIONAL CLASS
-------------------
Sold................................... 62,340,000
Issued on reinvestment of dividends.... 305,782
Redeemed............................... ( 5,094,386)
-------------
Net increase (decrease)................ 57,551,396
=============
</TABLE>
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<TABLE>
<CAPTION>
4. Financial Highlights.
May 27, 1998
(Commencement of Sales) to
July 31, 1998
-------------
INDIVIDUAL INSTITUTIONAL
INVESTOR CLASS CLASS
-------------- -----
Per Share Operating Performance:
(for a share outstanding throughout the period)
<S> <C> <C>
Net asset value, beginning of period.................. $ 1.00 $ 1.00
--------- ---------
Income from investment operations:
Net investment income............................... 0.009 0.010
Less distributions:
Dividends from net investment income................ ( 0.009) ( 0.010)
--------- ---------
Net asset value, end of period........................ $ 1.00 $ 1.00
========= =========
Total Return.......................................... 5.01%* 5.27%*
Ratios/Supplemental Data
Net assets, end of period (000)....................... $ 822 $57,651
Ratios to average net assets:
Expenses (net of fees waived)....................... 0.60%* 0.35%*
Net investment income............................... 4.90%* 5.34%*
Advisory and administrative services fees waived.... 0.25%* 0.25%*
* Annualized
</TABLE>
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PAX WORLD FUND FAMILY
222 State Street
Portsmouth, NH 03801-3853
http://www.paxfund.com/
-Pax World Money Market Fund-
A No-Load Fund
For general fund information, please call:
1-800-767-1729
For shareholder account information, please call:
1-800-372-7827
Transfer and Dividend Disbursing Agents-
Individual Investor Class:
PFPC, Inc.
P.O. Box 8950
Wilmington, DE 19899
Institutional & Broker Service Classes:
Reich & Tang Services, Inc.
600 5th Avenue
New York, NY 10020
Investment Adviser-
Pax World Management Corp.
222 State Street
Portsmouth, NH 03801-3853
All Account Inquiries should be addressed to:
Pax World Money Market Fund
P.O. Box 8930
Wilmington, DE 19899-8930
Pax World Money Market Fund
1998 Semi-Annual Report
Dated July 31, 1998
Printed in the USA on recycled paper
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1998 SEMI-ANNUAL
REPORT
[GRAPHIC OMITTED]
[GRAPHIC OMITTED]
Semi-Annual
Report
July 31, 1998
(Unaudited)
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