<PAGE>
PAX WORLD MONEY MARKET FUND
ANNUAL REPORT
PAX
WORLD
MONEY [GRAPHIC OMITTED]
MARKET
FUND
ANNUAL
REPORT [GRAPHIC OMITTED]
JANUARY 31, 1999
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<TABLE>
<CAPTION>
<S> <C>
Pax Money Market Fund
A Socially Responsible Fund
PAX
Investment Adviser- WORLD [GRAPHIC OMITTED]
Pax World Management Corp. FUND
222 State Street FAMILY
Portsmouth, NH 03801-3853 222 State Street
Portsmouth, NH 03801-3853
Transfer and Dividend Disbursing Agents- www.paxfund.com
Individual Investor Class:
PFPC, Inc.
P.O. Box 8950 For General Fund Information, please call:
Wilmington, DE 19899 1-800-767-1729
Institutional & Broker Service Classes:
Reich & Tang Services, Inc. For Shareholder Account Information, please call:
600 5th Avenue 1-800-372-7827
New York, NY 10020
All Account Inquiries should be addressed to:
Pax World Money Market Fund For Broker Services, please call:
P.O. Box 8930 1-800-635-1404
Wilmington, DE 19899-8930
</TABLE>
[GRAPHIC OMITTED]
Printed in the USA on recycle 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 annual report of Pax World Money Market Fund, Inc.
for the period May 27, 1998 (Commencement of Sales) through January 31, 1999.
The Fund had net assets of $124,873,753 and 675 active shareholders as of
January 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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PAX WORLD MONEY MARKET FUND, INC.
STATEMENT OF NET ASSETS
JANUARY 31, 1999
================================================================================
<TABLE>
<CAPTION>
Face Maturity Value
Amount Date Yield (Note 1)
------ -------- ----- ------
Commercial Paper (35.91%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 5,000,000 Abbott Labs 02/09/99 4.80% $ 4,994,689
5,000,000 Asset Securitization Cooperative 03/11/99 4.88 4,974,403
5,000,000 Bellsouth Telecommunications 02/10/99 4.80 4,994,012
2,000,000 Campbell Soup Company 06/10/99 5.19 1,964,167
5,000,000 CIESCO L.P. 02/04/99 5.24 4,997,833
5,000,000 Coca-Cola Company 02/12/99 5.12 4,992,285
5,000,000 Corporate Asset Funding Company Inc. 04/06/99 4.87 4,957,156
3,000,000 Gannett Company 02/11/99 4.79 2,996,017
5,000,000 Pfizer Incorporated 02/11/99 4.80 4,993,361
5,000,000 Receivables Capital Corporation 03/05/99 4.87 4,978,444
------------- -------------
45,000,000 Total Commercial Paper 44,842,367
------------- -------------
<CAPTION>
Foreign Commercial Paper (3.97%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 5,000,000 Ford Credit Europe PLC 04/07/99 4.87% $ 4,956,396
------------- -------------
5,000,000 Total Foreign Commercial Paper 4,956,396
------------- -------------
<CAPTION>
Domestic Certificates of Deposit (8.81%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 2,000,000 First Union Bank 09/17/99 5.25% $ 2,000,000
2,000,000 Morgan Guaranty Trust Company 02/02/99 5.65 1,999,987
3,000,000 NationsBank 10/19/99 4.61 3,000,000
2,000,000 NationsBank 01/11/00 5.00 1,999,818
2,000,000 Northern Trust 09/08/99 4.99 1,999,280
------------- -------------
11,000,000 Total Domestic Certificates of Deposit 10,999,085
------------- -------------
<CAPTION>
Repurchase Agreement (51.08%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 63,791,000 Morgan (J.P.) Securities, Inc.
(Collateralized by $64,741,819 GNMA's,
6.500%, due 03/15/26 to 12/15/28) 02/01/99 4.80% $ 63,791,000
------------- -------------
63,791,000 Total Repurchase Agreement 63,791,000
------------- -------------
Total Investments (99.77%) (Cost $124,588,848+) $ 124,588,848
Cash and Other Assets, Net of Liabilities (0.23%) 284,905
-------------
Net Assets (100.00%) $ 124,873,753
=============
Net Asset Value, offering and redemption price per share:
Individual Investor Class, 5,494,746 Shares outstanding (Note 3) $ 1.00
=============
Institutional Class, 119,309,196 Shares outstanding (Note 3) $ 1.00
=============
Broker Service Class, 69,811 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 JANUARY 31, 1999
================================================================================
<TABLE>
<CAPTION>
INVESTMENT INCOME
<S> <C>
Income:
Interest............................................................................ $ 2,506,746
-----------------
Expenses: (Note 2)
Advisory fee........................................................................ 71,643
Administrative services fee......................................................... 47,762
Shareholder servicing fee (Individual Investor & Broker Service Classes only)....... 4,195
Custodian expenses.................................................................. 5,888
Shareholder servicing and related shareholder expenses.............................. 31,223
Legal fees, compliance and filing fees.............................................. 65,425
Audit and accounting................................................................ 39,152
Directors' fees..................................................................... 6,125
Amortization of organization costs.................................................. 14,720
Other............................................................................... 4,658
-----------------
Total expenses.................................................................. 290,791
Less:
Fees waived (Note 2)............................................................ ( 119,405)
Expenses paid indirectly........................................................ ( 28)
-----------------
Net expenses ............................................................... 171,358
-----------------
Net investment income.................................................................... 2,335,388
<CAPTION>
REALIZED GAIN (LOSS) ON INVESTMENTS
<S> <C>
Net realized gain (loss) on investments.................................................. 260
-----------------
Increase in net assets from operations................................................... $ 2,335,648
=================
</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
================================================================================
<TABLE>
<CAPTION>
May 27, 1998
(Commencement of Sales)
to January 31, 1999
-------------------
INCREASE (DECREASE) IN NET ASSETS
<S> <C>
Operations:
Net investment income............................................. $ 2,335,388
Net realized gain (loss) on investments........................... 260
---------------
Increase in net assets from operations............................ 2,335,648
Dividends to shareholders:
Net investment income:
Individual Investor Class......................................... ( 76,756)
Institutional Class............................................... ( 2,258,471)
Broker Service Class.............................................. ( 161)
Net realized gain on investments:
Individual Investor Class......................................... ( 12)
Institutional Class............................................... ( 248)
Broker Service Class.............................................. --
Capital share transactions (Note 3):
Individual Investor Class......................................... 5,494,746
Institutional Class............................................... 119,209,196
Broker Class...................................................... 69,811
---------------
Total increase (decrease)......................................... 124,773,753
Net assets:
Beginning of period........................................... 100,000
---------------
End of period................................................. $ 124,873,753
===============
</TABLE>
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See Notes to Financial Statements.
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PAX WORLD MONEY MARKET FUND, INC.
NOTES TO FINANCIAL STATEMENTS
================================================================================
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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PAX WORLD MONEY MARKET FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
================================================================================
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 Contract 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 January 31, 1999, the Advisor and the Sub-Advisor
voluntarily waived advisory and administrative services fees of $71,643 and
$47,762, 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 $9,131 paid to Reich & Tang Services, Inc. an affiliate of
the Sub-Advisor as servicing agent for the Institutional Class and Broker
Service Class.
Included in the Statement of Operations under the caption "Shareholder servicing
and related shareholder expenses are expense offsets of $28.
3. Capital Stock.
At January 31, 1999, 20,000,000,000 shares of $.001 par value stock were
authorized and paid in capital amounted to $124,873,753. Transactions in capital
stock, all at $1.00 per share, were as follows:
<TABLE>
<CAPTION>
May 27, 1998
(Commencement of Sales) to
January 31, 1999
----------------
INDIVIDUAL INVESTOR CLASS
-------------------------
<S> <C>
Sold......................................... 8,905,964
Issued on reinvestment of dividends.......... 75,193
Redeemed..................................... ( 3,486,411)
----------------
Net increase (decrease)...................... 5,494,746
================
INSTITUTIONAL CLASS
-------------------
Sold......................................... 163,404,000
Issued on reinvestment of dividends.......... 2,038,582
Redeemed..................................... ( 46,233,386)
----------------
Net increase (decrease)...................... 119,209,196
================
</TABLE>
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<TABLE>
<CAPTION>
3. Capital Stock. (Continued)
January 13, 1999
(Commencement of Sales) to
January 31, 1999
----------------
BROKER SERVICE CLASS
--------------------
<S> <C>
Sold......................................... 83,399
Issued on reinvestment of dividends.......... 53
Redeemed..................................... ( 13,641)
----------------
69,811
================
<CAPTION>
4. Financial Highlights.
May 27, 1998 January 13, 1999
(Commencement of Sales) to (Commencement of Sales) to
January 31, 1999 January 31, 1999
---------------------------- ---------------------------
INDIVIDUAL BROKER
INVESTOR INSTITUTIONAL SERVICE
CLASS CLASS CLASS
----- ----- -----
Per Share Operating Performance:
(for a share outstanding throughout the period)
<S> <C> <C> <C>
Net asset value, beginning of period......... $ 1.00 $ 1.00 $ 1.00
-------- -------- --------
Income from investment operations:
Net investment income.................... 0.032 0.034 0.002
Less distributions:
Dividends from net investment income..... ( 0.032) ( 0.034) ( 0.002)
-------- -------- --------
Net asset value, end of period............... $ 1.00 $ 1.00 $ 1.00
======== ======== ========
Total Return................................. 4.82%* 5.08%* 4.22%*
Ratios/Supplemental Data
Net assets, end of period (000).............. $ 5,495 $119,309 $ 70
Ratios to average net assets:
Expenses (net of fees waived)............ 0.60%* 0.35%* 0.80%*
Net investment income.................... 4.59%* 4.90%* 4.16%*
Advisory and administrative
services fees waived................... 0.25%* 0.25%* 0.25%*
</TABLE>
* Annualized
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<PAGE>
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PAX WORLD MONEY MARKET FUND, INC.
INDEPENDENT AUDITOR'S REPORT
================================================================================
The Board of Directors and Shareholders
Pax World Money Market Fund, Inc.
We have audited the accompanying statement of net assets of Pax World Money
Market Fund, Inc. as of January 31, 1999, and the related statement of
operations, the statement of changes in net assets, and the financial highlights
for the period from May 27, 1998 (Commencement of sales) to January 31, 1999.
These financial statements and financial highlights are the responsibility of
the Fund's management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audit.
We conducted our audit in accordance with generally accepted auditing standards.
Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements and financial highlights are
free of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements. Our
procedures included confirmation of securities owned as of January 31, 1999, by
correspondence with the custodian. An audit also includes assessing the
accounting principles used and significant estimates made by management, as well
as evaluating the overall financial statement presentation. We believe that our
audit provides a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of Pax
World Money Market Fund, Inc. as of January 31, 1999, the results of its
operations, the changes in its net assets and the financial highlights for the
period from May 27, 1998 to January 31, 1999, in conformity with generally
accepted accounting principles.
\s\McGladrey & Pullen, LLP
New York, New York
February 26, 1999
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