<PAGE>
PAX WORLD MONEY MARKET FUND
SEMI-ANNUAL REPORT
[GRAPHIC OMITTED]
[GRAPHIC OMITTED]
Semi-Annual
Report
July 31, 1999
(Unaudited)
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<TABLE>
<S> <C>
Pax World Money Market Fund [GRAPHIC OMITTED]
A Socially Responsible Fund PAX
WORLD
Investment Adviser- FUND
Pax World Management Corp. FAMILY
222 State Street 222 State Street
Portsmouth, NH 03801-3853 Portsmouth, NH 03801-3853
www.paxfund.com
Transfer and Dividend Disbursing Agents-
Individual Investor Class: For general fund information, please call:
PFPC, Inc. 1-800-767-1729
P.O. Box 8950
Wilmington, DE 19899-8950
Institutional & Broker Service Classes: For shareholder account information, please call:
Reich & Tang Services, Inc. 1-800-372-7827
600 5th Avenue
New York, NY 10020-2302
All Account Inquiries should be addressed to: For Broker Services, please call:
Pax World Money Market Fund 1-800-635-1404
P.O. Box 8930
Wilmington, DE 19899-8930
</TABLE>
[GRAPHIC OMITTED]
Printed in the USA on recycled paper
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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 February 1, 1999 through July 31, 1999.
The Fund had net assets of $130,653,442 and 1,171 active shareholders as of July
31, 1999.
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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<PAGE>
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PAX WORLD MONEY MARKET FUND, INC.
STATEMENT OF NET ASSETS
JULY 31, 1999
(UNAUDITED)
================================================================================
<TABLE>
<CAPTION>
Face Maturity Value
Amount Date Yield (Note 1)
------ ---- ----- ------
Commercial Paper (43.01%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 6,000,000 Bellsouth Telecommunications, Inc. 09/14/99 5.10% $ 5,963,736
2,500,000 Campbell Soup Company 04/13/00 5.08 2,414,469
6,000,000 Corporate Asset Funding Company, Inc. 11/10/99 5.25 5,913,833
6,000,000 Glaxo Wellcome PLC 09/08/99 5.12 5,968,735
6,000,000 Goldman Sachs Group L.P. 08/25/99 5.10 5,980,565
6,000,000 H.J. Heinz Company 09/07/99 5.11 5,969,520
6,000,000 Nestle Capital Corporation 08/03/99 5.07 5,999,155
6,000,000 Paine Webber Group 08/02/99 5.15 6,000,000
6,000,000 Receivables Capital Corporation 08/20/99 5.10 5,984,850
6,000,000 Wal-Mart Stores 08/03/99 5.09 5,999,152
------------ ------------
56,500,000 Total Commercial Paper 56,194,015
------------ ------------
<CAPTION>
Domestic Certificates of Deposit (10.71%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 5,000,000 Chase Manhattan Bank (USA) 09/02/99 5.03% $ 5,000,000
2,000,000 First Union National Bank 09/17/99 5.25 2,000,000
3,000,000 NationsBank 10/19/99 4.61 3,000,000
2,000,000 NationsBank 01/11/00 5.00 1,999,914
2,000,000 Northern Trust 09/08/99 5.14 1,999,879
------------ ------------
14,000,000 Total Domestic Certificates of Deposit 13,999,793
------------ ------------
<CAPTION>
Other Notes (a) (11.20%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 2,235,000 G & L Land Management
LOC Fifth Third Bank 12/01/17 5.21% $ 2,235,000
5,000,000 Jake Sweeney Automotive, Inc.
LOC First Star Bank 04/01/05 5.23 5,000,000
1,110,000 Oak Crest Homes Inc.
LOC First of America 11/01/26 5.23 1,110,000
2,360,000 SDR Capital, L.L.C.
LOC First Michigan Bank 10/01/26 5.23 2,360,000
3,930,000 Weller Irrevocable Trust #2 - Series 1998
LOC First Union National Bank 09/01/13 5.30 3,930,000
------------ ------------
14,635,000 Total Other Notes 14,635,000
------------ ------------
</TABLE>
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See Notes to Financial Statements.
<PAGE>
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================================================================================
<TABLE>
<CAPTION>
Face Maturity Value
Amount Date Yield (Note 1)
------ ---- ----- ------
Loan Participation (3.83%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 5,000,000 Equitable Life Assurance Society (b)
LOC Chase Manhattan Bank 03/20/00 5.21% $ 5,000,000
------------ ------------
5,000,000 Total Loan Participation 5,000,000
------------ ------------
<CAPTION>
Master Note (3.83%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 5,000,000 GMAC Mortgage Corporation(c) 08/02/99 5.19% $ 5,000,000
------------ ------------
5,000,000 Total Master Note 5,000,000
------------ ------------
<CAPTION>
Repurchase Agreement, Overnight (18.65%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 24,367,000 Morgan (J.P.) Securities, Inc.
(Collateralized by $27,607,198, GNMA's,
6.00% to 6.50%, due 03/15/28 to 01/15/29) 08/02/99 5.10% $ 24,367,000
------------ ------------
24,367,000 Total Repurchase Agreement, Overnight 24,367,000
------------ ------------
<CAPTION>
Time Deposit (4.59%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 6,000,000 PNC Bank, N.A. 08/02/99 5.12% $ 6,000,000
------------ ------------
6,000,000 Total Time Deposit 6,000,000
------------ ------------
<CAPTION>
Yankee Certificate of Deposit (3.83%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 5,000,000 Bank of Montreal 05/08/00 5.23% $ 4,998,154
------------ ------------
5,000,000 Total Yankee Certificates of Deposit 4,998,154
------------ ------------
Total Investments (99.65%) (Cost $130,193,962+) $130,193,962
Cash and Other Assets, Net of Liabilities (0.35%) 459,480
------------
Net Assets (100.00%) $130,653,442
============
Net Asset Value, offering and redemption price per share:
Individual Investor Class, 9,195,239 Shares Outstanding (Note 3) $ 1.00
============
Institutional Class, 119,877,190 Shares Outstanding (Note 3) $ 1.00
============
Broker Service Class, 1,581,013 Shares Outstanding (Note 3) $ 1.00
============
+ Aggregate cost for federal income tax purposes is identical.
</TABLE>
FOOTNOTES:
(a) These securities have a 7-day put feature.
(b) The interest rate is adjusted quarterly based on 3-month LIBOR plus 5 basis
points.
(c) The interest rate is adjusted monthly based on 1-month LIBOR; 7-day put
feature.
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See Notes to Financial Statements.
<PAGE>
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PAX WORLD MONEY MARKET FUND, INC.
STATEMENT OF OPERATIONS
SIX MONTHS ENDED JULY 31, 1999
(UNAUDITED)
================================================================================
<TABLE>
<CAPTION>
INVESTMENT INCOME
<S> <C>
Income:
Interest............................................................................ $ 2,984,548
------------------
Expenses: (Note 2)
Advisory fee........................................................................ 90,679
Administrative services fee......................................................... 60,452
Shareholder servicing fee (Individual Investor & Broker Service Classes only)....... 10,023
Custodian expenses.................................................................. 7,710
Shareholder servicing and related shareholder expenses.............................. 24,486
Legal fees, compliance and filing fees.............................................. 36,370
Audit and accounting................................................................ 62,903
Directors' fees..................................................................... 3,025
Amortization of organization costs.................................................. 10,646
Other............................................................................... 3,512
------------------
Total expenses.................................................................. 309,806
Less:
Fees waived (Note 2)............................................................ ( 86,204)
Expenses paid indirectly........................................................ ( 1,279)
------------------
Net expenses ............................................................... 222,323
------------------
Net investment income.................................................................. 2,762,225
<CAPTION>
REALIZED GAIN (LOSS) ON INVESTMENTS
<S> <C>
Net realized gain (loss) on investments................................................ -0-
------------------
Increase in net assets from operations................................................. $ 2,762,225
==================
</TABLE>
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See Notes to Financial Statements.
<PAGE>
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PAX WORLD MONEY MARKET FUND, INC.
STATEMENTS OF CHANGES IN NET ASSETS
================================================================================
<TABLE>
<CAPTION>
Six Months
Ended May 27, 1998
July 31, 1999 (Commencement of Sales)
(Unaudited) to January 31, 1998
--------- -------------------
INCREASE (DECREASE) IN NET ASSETS
<S> <C> <C>
Operations:
Net investment income.........................................$ 2,762,225 $ 2,335,388
Net realized gain (loss) on investments....................... -- 260
------------ ------------
Increase in net assets from operations........................ 2,762,225 2,335,648
Dividends to shareholders:
Net investment income:
Individual Investor Class.....................................( 158,600) ( 76,756)
Institutional Class...........................................( 2,588,666) ( 2,258,471)
Broker Service Class..........................................( 14,959) ( 161)
Net realized gain on investments:
Individual Investor Class..................................... -- ( 12)
Institutional Class........................................... -- ( 248)
Broker Service Class.......................................... -- --
Capital share transactions (Note 3):
Individual Investor Class..................................... 3,700,493 5,494,746
Institutional Class........................................... 567,994 119,209,196
Broker Service Class.......................................... 1,511,202 69,811
------------ ------------
Total increase (decrease)..................................... 5,779,689 124,773,753
Net assets:
Beginning of period........................................... 4,873,753 100,000
------------ ------------
End of period.................................................$130,653,442 $124,873,753
============ ============
</TABLE>
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See Notes to Financial Statements.
<PAGE>
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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 and Broker
Service Class shares are subject to service fees 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 and Broker
Service 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 an additional
sub-transfer agent accounting fee. In all other respects, the Individual
Investor Class, Institutional Class and Broker Service Class shares represent
the same interest in the income and assets of the Fund. Distribution of Broker
Service Class shares commenced on January 13, 1999. 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 costs 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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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 only
with respect to the Individual Investor Class and the Broker Service Class
shares of the Fund. 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, 1999, the Advisor and the Sub-Advisor
voluntarily waived advisory and administrative services fees of $40,079 and
$46,125, 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 $11,562 paid to Reich & Tang Services, Inc. an affiliate
of the Sub-Advisor as servicing agent for the Institutional Class.
Included in the Statement of Operations under the captions "Custodian expenses"
and "Shareholder servicing and related shareholder expenses" are expense offsets
of $1,279.
3. Capital Stock.
At July 31, 1999, 20,000,000,000 shares of $.001 par value stock were authorized
and paid in capital amounted to $130,653,442. Transactions in capital stock, all
at $1.00 per share, were as follows:
<TABLE>
<CAPTION>
Six Months May 27, 1998
Ended (Commencement of Sales) to
July 31, 1999 January 31, 1999
------------- ----------------
INDIVIDUAL INVESTOR CLASS
-------------------------
<S> <C> <C>
Sold...................................... 6,758,984 8,905,964
Issued on reinvestment of dividends....... 157,866 75,193
Redeemed.................................. ( 3,216,357) ( 3,486,411)
------------ ------------
Net increase (decrease)................... 3,700,493 5,494,746
============ ============
<CAPTION>
INSTITUTIONAL CLASS
-------------------
<S> <C> <C>
Sold...................................... 84,837,580 163,404,000
Issued on reinvestment of dividends....... 2,409,613 2,038,582
Redeemed.................................. ( 86,679,199) ( 46,233,386)
------------ ------------
Net increase (decrease)................... 567,994 119,209,196
============ ============
</TABLE>
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<PAGE>
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PAX WORLD MONEY MARKET FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(UNAUDITED)
================================================================================
<TABLE>
<CAPTION>
3. Capital Stock.(Continued)
Six Months January 13, 1999
Ended (Commencement of Sales) to
July 31, 1999 January 31, 1999
------------- ----------------
<S> <C> <C>
BROKER SERVICE CLASS
- ---------------------
Sold...................................... 4,124,831 83,399
Issued on reinvestment of dividends....... 11,747 53
Redeemed.................................. ( 2,625,376) ( 13,641)
------------ ------------
Net increase (decrease)................... 1,511,202 69,811
============ ============
<CAPTION>
4. Financial Highlights.
INDIVIDUAL
INVESTOR CLASS
----------------------------------------------
Six Months May 27, 1998
Ended (Commencement of Sales) to
July 31, 1999 January 31, 1999
------------- ----------------
<S> <C> <C>
Per Share Operating Performance:
(for a share outstanding throughout the period)
Net asset value, beginning of period............ $ 1.00 $ 1.00
--------- ---------
Income from investment operations:
Net investment income........................ 0.022 0.032
Less distributions:
Dividends from net investment income......... ( 0.022) ( 0.032)
-------- --------
Net asset value, end of period.................. $ 1.00 $ 1.00
========= =========
Total Return.................................... 4.42%* 4.82%*
Ratios/Supplemental Data
Net assets, end of period (000)................. $ 9,195 $ 5,495
Ratios to average net assets:
Expenses (net of fees waived)................ 0.60%* 0.60%*
Net investment income........................ 4.34%* 4.59%*
Advisory and administrative
services fees waived....................... 0.14%* 0.25%*
* Annualized
</TABLE>
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<PAGE>
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================================================================================
<TABLE>
<CAPTION>
4. Financial Highlights.(Continued)
INSTITUTIONAL
CLASS
----------------------------------------------
Six Months May 27, 1998
Ended (Commencement of Sales) to
July 31, 1999 January 31, 1999
------------- ----------------
<S> <C> <C>
Per Share Operating Performance:
(for a share outstanding throughout the period)
Net asset value, beginning of period............ $ 1.00 $ 1.00
--------- ---------
Income from investment operations:
Net investment income........................ 0.023 0.034
Less distributions:
Dividends from net investment income......... ( 0.023) ( 0.034)
-------- --------
Net asset value, end of period.................. $ 1.00 $ 1.00
========= =========
Total Return.................................... 4.67%* 5.08%*
Ratios/Supplemental Data
Net assets, end of period (000)................. $ 119,877 $ 119,309
Ratios to average net assets:
Expenses (net of fees waived)................ 0.35%* 0.35%*
Net investment income........................ 4.59%* 4.90%*
Advisory and administrative
services fees waived....................... 0.14%* 0.25%*
* Annualized
</TABLE>
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<PAGE>
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PAX WORLD MONEY MARKET FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(UNAUDITED)
================================================================================
<TABLE>
<CAPTION>
4. Financial Highlights.(Continued)
BROKER
SERVICE CLASS
----------------------------------------------
Six Months January 13, 1999
Ended (Commencement of Sales) to
July 31, 1999 January 31, 1999
------------- ----------------
<S> <C> <C>
Per Share Operating Performance:
(for a share outstanding throughout the period)
Net asset value, beginning of period............ $ 1.00 $ 1.00
--------- ---------
Income from investment operations:
Net investment income........................ 0.021 0.002
Less distributions:
Dividends from net investment income......... ( 0.021) ( 0.002)
-------- --------
Net asset value, end of period.................. $ 1.00 $ 1.00
========= =========
Total Return.................................... 4.22%* 4.22%*
Ratios/Supplemental Data
Net assets, end of period (000)................. $ 1,581 $ 70
Ratios to average net assets:
Expenses (net of fees waived)................ 0.80%* 0.80%*
Net investment income........................ 4.18%* 4.16%*
Advisory and administrative
services fees waived....................... 0.14%* 0.25%*
* Annualized
</TABLE>
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