<PAGE>
PAX WORLD MONEY MARKET FUND
- --------------------------------------------------------------------------------
ANNUAL REPORT
PAX
WORLD
MONEY [GRAPHIC OMITTED]
MARKET
FUND
ANNUAL
REPORT
JANUARY 31, 2000
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
<S> <C>
Pax World 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 19899-8950 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 recycled paper
- --------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
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 year ended January 31, 2000.
The Fund had net assets of $141,157,600 and 1,481 active shareholders as of
January 31, 2000.
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
- --------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
PAX WORLD MONEY MARKET FUND, INC.
STATEMENT OF NET ASSETS
JANUARY 31, 2000
================================================================================
<TABLE>
<CAPTION>
Face Maturity Value
Amount Date Yield (Note 1)
------ -------- ----- ------
Commercial Paper (32.43%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 6,500,000 Bellsouth Telecommunications Inc. 03/22/00 5.74% $ 6,448,632
2,500,000 Campbell Soup Company 04/13/00 5.08 2,475,850
6,000,000 General Mills Corp. 02/11/00 5.78 5,990,583
6,000,000 Glaxo Wellcome PLC 02/08/00 5.94 5,993,140
6,500,000 H. J. Heinz & Co. 03/03/00 5.66 6,468,488
6,000,000 Paine Webber Group 02/17/00 5.68 5,984,933
6,500,000 Pfizer Inc. 02/22/00 5.64 6,478,729
6,000,000 Provena Health - Series 1998 04/04/00 5.95 5,938,365
------------- -------------
46,000,000 Total Commercial Paper 45,778,720
------------- -------------
<CAPTION>
Eurodollar Certificates of Deposit (4.25%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 6,000,000 Barclays Bank PLC 02/28/00 5.74% $ 6,000,130
------------- -------------
6,000,000 Total Eurodollar Certificates of Deposit 6,000,130
------------- -------------
<CAPTION>
Foreign Commercial Paper (4.25%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 6,000,000 Ford Credit Europe PLC 02/03/00 5.54% $ 5,998,157
------------- -------------
6,000,000 Total Foreign Commercial Paper 5,998,157
------------- -------------
<CAPTION>
Government Agencies (4.22%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 6,000,000 Federal Home Loan Bank 03/15/00 5.68% $ 5,959,580
------------- -------------
6,000,000 Total Government Agencies 5,959,580
------------- -------------
<CAPTION>
Loan Participations (3.54%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 5,000,000 Equitable Life Assurance Society with
Chase Manhattan Bank (a) 03/20/00 6.21% $ 5,000,000
------------- -------------
5,000,000 Total Loan Participations 5,000,000
------------- -------------
<CAPTION>
Master Notes (3.54%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 5,000,000 GMAC Mortgage Corporation (b) 02/01/00 5.80% $ 5,000,000
------------- -------------
5,000,000 Total Master Notes 5,000,000
------------- -------------
<CAPTION>
Other Notes (17.81%) (c)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 2,190,000 G & L Land Management
LOC Fifth Third Bank 12/01/17 5.88% $ 2,190,000
5,000,000 Jake Sweeney Automotive, Inc.
LOC FirstStar Bank 04/01/10 5.90 5,000,000
3,695,000 Oak Crest Homes Inc.
LOC First of America 11/01/26 5.94 3,695,000
</TABLE>
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
<PAGE>
- --------------------------------------------------------------------------------
================================================================================
<TABLE>
<CAPTION>
Face Maturity Value
Amount Date Yield (Note 1)
------ -------- ----- ------
Other Notes (Continued) (c)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 4,455,000 SDR Capital, L.L.C.
LOC First Michigan Bank 10/01/26 6.00% $ 4,455,000
6,000,000 Spring Hill Medical Complex
LOC Amsouth Bank 09/01/11 5.80 6,000,000
3,790,000 Weller Irrevocable Trust #2 - Series 1998
LOC First Union National Bank 09/01/13 5.85 3,790,000
------------- ------------
25,130,000 Total Other Notes 25,130,000
------------- ------------
<CAPTION>
Repurchase Agreement, Overnight (21.85%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 30,846,000 Morgan (JP) Securities Inc.
(Collateralized by $32,966,000,
FNSM FNMA, 5.250%, due 1/15/03,
value $31,463,268) 02/01/00 5.78% $ 30,846,000
------------- ------------
30,846,000 Total Repurchase Agreement, Overnight 30,846,000
------------- ------------
<CAPTION>
Yankee Certificates of Deposit (7.79%)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 5,000,000 Bank of Montreal 05/08/00 5.23% $ 4,999,360
6,000,000 National Westminster Bank PLC 02/07/00 5.62 6,000,109
------------- ------------
11,000,000 Total Yankee Certificates of Deposit 10,999,469
------------- ------------
Total Investments (99.68%) (Cost $140,712,056+) $140,712,056
Cash and Other Assets, Net of Liabilities (0.32%) 445,544
------------
Net Assets (100.00%) $141,157,600
============
Net Asset Value, offering and redemption price per share:
Individual Investor Class, 13,628,034 Shares Outstanding (Note 3) $ 1.00
============
Institutional Class, 122,213,336 Shares Outstanding (Note 3) $ 1.00
============
Broker Service Class, 1,184,760 Shares Outstanding (Note 3) $ 1.00
============
MMA Praxis Class, 4,131,470 Shares Outstanding (Note 3) $ 1.00
============
+ Aggregate cost for federal income tax purposes is identical.
</TABLE>
FOOTNOTES:
(a) The interest rate is adjusted quarterly based on 3-month LIBOR plus 5 basis
points.
(b) The interest rate is adjusted monthly based on 1-month LIBOR; 7 day put
feature.
(c) These securities have a 7-day put feature.
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
<PAGE>
- --------------------------------------------------------------------------------
PAX WORLD MONEY MARKET FUND, INC.
STATEMENT OF OPERATIONS
YEAR ENDED JANUARY 31, 2000
================================================================================
<TABLE>
<CAPTION>
INVESTMENT INCOME
<S> <C>
Income:
Interest............................................................................ $ 6,545,430
-----------------
Expenses: (Note 2)
Advisory fee........................................................................ 187,076
Administrative services fee......................................................... 124,717
Shareholder servicing fee (Individual Investor Class)............................... 25,494
Shareholder servicing fee (Broker Service Class).................................... 2,318
Shareholder servicing fee (MMA Praxis Class)........................................ 931
Custodian expenses.................................................................. 17,628
Shareholder servicing and related shareholder expenses.............................. 98,156
Legal fees, compliance and filing fees.............................................. 103,506
Audit and accounting................................................................ 104,129
Directors' fees..................................................................... 6,230
Amortization of organization costs.................................................. 21,469
Other............................................................................... 5,752
-----------------
Total expenses................................................................... 697,406
Less:
Fees waived (Note 2)............................................................. ( 170,679)
Expenses reimbursed (Note 2)..................................................... ( 59,631)
-----------------
Net expenses .................................................................. 467,096
-----------------
Net investment income.................................................................. 6,078,334
REALIZED GAIN (LOSS) ON INVESTMENTS
Net realized gain (loss) on investments................................................ 479
-----------------
Increase in net assets from operations................................................. $ 6,078,813
=================
</TABLE>
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
<PAGE>
- --------------------------------------------------------------------------------
PAX WORLD MONEY MARKET FUND, INC.
STATEMENTS OF CHANGES IN NET ASSETS
================================================================================
<TABLE>
<CAPTION>
May 27, 1998
Year Ended (Commencement of Sales)
January 31, 2000 to January 31, 1999
---------------- -------------------
INCREASE (DECREASE) IN NET ASSETS
<S> <C> <C>
Operations:
Net investment income................................$ 6,078,334 $ 2,335,388
Net realized gain (loss) on investments.............. 479 260
----------------- ---------------
Increase in net assets from operations............... 6,078,813 2,335,648
Dividends to shareholders:
Net investment income:
Individual Investor Class............................( 483,610) ( 76,756)
Institutional Class..................................( 5,533,516) ( 2,258,471)
Broker Service Class.................................( 41,825) ( 161)
MMA Praxis Class.....................................( 19,383) --
Net realized gain on investments:
Individual Investor Class............................( 68) ( 12)
Institutional Class..................................( 407) ( 248)
Broker Service Class.................................( 4) --
MMA Praxis Class..................................... -- --
Capital share transactions (Note 3):
Individual Investor Class............................ 8,133,288 5,494,746
Institutional Class.................................. 2,904,140 119,209,196
Broker Service Class................................. 1,114,949 69,811
MMA Praxis Class..................................... 4,131,470 --
----------------- ---------------
Total increase (decrease)............................ 16,283,847 124,773,753
Net assets:
Beginning of period.................................. 124,873,753 100,000
----------------- ---------------
End of period........................................$ 141,157,600 $ 124,873,753
================= ===============
</TABLE>
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of these financial statements.
<PAGE>
- --------------------------------------------------------------------------------
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 four
classes of stock authorized, the Individual Investor Class, the Institutional
Class, the Broker Service Class and the MMA Praxis Class. The Individual
Investor Class, Broker Service Class and the MMA Praxis 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, Broker Service Class and the MMA Praxis 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. Additionally, the Fund may allocate among its classes certain
expenses to the extent allowable to specific classes, including transfer agent
fees, government registration fees, certain printing and postage costs, and
administrative and legal expenses. Class specific expenses of the Fund were
limited to distribution fees and transfer agent expenses. In all other respects,
the Individual Investor Class, Institutional Class, Broker Service Class and the
MMA Praxis Class shares represent the same interest in the income and assets of
the Fund. Distribution of Broker Service Class shares and MMA Praxis Class
shares commenced on January 13, 1999 and October 12, 1999, respectively. The
Fund's financial statements are prepared in accordance with accounting
principles generally accepted in the United States 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.
- --------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
================================================================================
1. Summary of Accounting Policies. (Continued)
e) Use of Estimates -
The preparation of financial statements in conformity with accounting
principles generally accepted in the United States 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.
2. Investment Management Fees and Other Transactions with Affiliates.
Under the Advisory Agreement, the Fund pays 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 pays 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, the Broker Service Class and the
MMA Praxis 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, the Broker Service Class and the MMA Praxis Class
shares, a service fee equal to .25% per annum of the average daily net assets.
During the year ended January 31, 2000, the Advisor and the Sub-Advisor
voluntarily waived advisory and administrative services fees of $93,538 and
$76,210, respectively. The Distributor voluntarily waived shareholder servicing
fees of $931 for the MMA Praxis Class. In addition, although not required to do
so, the sub-advisor has agreed to reimburse class specific expenses amounting to
$55,136 and $4,495 for the Individual Investor Class and MMA Praxis Class
shares, 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 $23,174 paid to Reich & Tang Services, Inc. an affiliate
of the Sub-Advisor as servicing agent for the Institutional Class and Broker
Service Class.
- --------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
PAX WORLD MONEY MARKET FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
================================================================================
3. Capital Stock.
At January 31, 2000, 20,000,000,000 shares of $.001 par value stock were
authorized and paid in capital amounted to $141,157,600. Transactions in capital
stock, all at $1.00 per share, were as follows:
<TABLE>
<CAPTION>
Year May 27, 1998
Ended (Commencement of Sales) to
January 31, 2000 January 31, 1999
---------------- ----------------
INDIVIDUAL INVESTOR CLASS
-------------------------
<S> <C> <C>
Sold........................................ 80,286,696 8,905,964
Issued on reinvestment of dividends......... 481,766 75,193
Redeemed.................................... ( 72,635,174) ( 3,486,411)
---------------- ---------------
Net increase (decrease)..................... 8,133,288 5,494,746
================ ===============
INSTITUTIONAL CLASS
-------------------
Sold........................................ 219,793,858 163,404,000
Issued on reinvestment of dividends......... 4,748,828 2,038,582
Redeemed.................................... ( 221,638,546) ( 46,233,386)
---------------- ---------------
Net increase (decrease)..................... 2,904,140 119,209,196
================ ===============
<CAPTION>
Year January 13, 1999
Ended (Commencement of Sales) to
January 31, 2000 January 31, 1999
---------------- ----------------
BROKER SERVICE CLASS
--------------------
<S> <C> <C>
Sold........................................ 5,273,006 83,399
Issued on reinvestment of dividends......... 39,714 53
Redeemed.................................... ( 4,197,771) ( 13,641)
---------------- ---------------
Net increase (decrease)..................... 1,114,949 69,811
================ ===============
<CAPTION>
October 12, 1999
(Commencement of Sales) to
January 31, 2000
----------------
MMA PRAXIS CLASS
----------------
<S> <C>
Sold........................................ 4,251,298
Issued on reinvestment of dividends......... 20,527
Redeemed.................................... ( 140,355)
--------------
Net increase (decrease)..................... 4,131,470
==============
</TABLE>
- --------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
================================================================================
<TABLE>
<CAPTION>
4. Financial Highlights.
INDIVIDUAL
INVESTOR CLASS
----------------------------------------------
Year May 27, 1998
Ended (Commencement of Sales)
January 31, 2000 to 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................................. 0.046 0.032
Less distributions:
Dividends from net investment income.................. ( 0.046) ( 0.032)
-------- -------
Net asset value, end of period........................... $ 1.00 $ 1.00
========= ========
Total Return............................................. 4.74% 4.82%*
Ratios/Supplemental Data
Net assets, end of period (000).......................... $ 13,628 $ 5,495
Ratios to average net assets:
Expenses (net of fees waived and expenses reimbursed) 0.60% 0.60%*
Net investment income................................. 4.74% 4.59%*
Advisory and administrative services fees waived...... 0.14% 0.25%*
Expenses reimbursed................................... 0.54% --
<CAPTION>
INSTITUTIONAL
CLASS
----------------------------------------------
Year May 27, 1998
Ended (Commencement of Sales)
January 31, 2000 to 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................................. 0.049 0.034
Less distributions:
Dividends from net investment income.................. ( 0.049) ( 0.034)
-------- -------
Net asset value, end of period........................... $ 1.00 $ 1.00
========= ========
Total Return............................................. 5.00% 5.08%*
Ratios/Supplemental Data
Net assets, end of period (000).......................... $ 122,213 $ 119,309
Ratios to average net assets:
Expenses (net of fees waived)......................... 0.35% 0.35%*
Net investment income................................. 4.89% 4.90%*
Advisory and administrative services fees waived...... 0.14% 0.25%*
* Annualized
</TABLE>
- --------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
PAX WORLD MONEY MARKET FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
================================================================================
<TABLE>
<CAPTION>
4. Financial Highlights. (Continued)
BROKER
SERVICE CLASS
----------------------------------------------
Year January 13, 1999
Ended (Commencement of Sales) to
January 31, 2000 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........................ 0.044 0.002
Less distributions:
Dividends from net investment income......... ( 0.044) ( 0.002)
------- -------
Net asset value, end of period.................. $ 1.00 $ 1.00
======== ========
Total Return.................................... 4.53% 4.22%*
Ratios/Supplemental Data
Net assets, end of period (000)................. $ 1,185 $ 70
Ratios to average net assets:
Expenses (net of fees waived)................ 0.80% 0.80%*
Net investment income........................ 4.51% 4.16%*
Advisory and administrative
services fees waived....................... 0.14% 0.25%*
* Annualized
</TABLE>
- --------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
================================================================================
<TABLE>
<CAPTION>
4. Financial Highlights.(Continued)
MMA PRAXIS CLASS
----------------
October 12, 1999
(Commencement of Sales) to
January 31, 2000
----------------
<S> <C>
Per Share Operating Performance:
(for a share outstanding throughout the period)
Net asset value, beginning of period................... $ 1.00
--------
Income from investment operations:
Net investment income............................... 0.016
Less distributions:
Dividends from net investment income................ ( 0.016)
-------
Net asset value, end of period......................... $ 1.00
========
Total Return........................................... 5.25%*
Ratios/Supplemental Data
Net assets, end of period (000)........................ $ 4,131
Ratios to average net assets:
Expenses (net of fees waived and
expenses reimbursed)............................. 0.60%*
Net investment income............................... 5.21%*
Advisory, administrative services and shareholder
servicing fees waived............................ 0.39%*
Expenses reimbursed................................. 1.21%*
* Annualized
</TABLE>
- --------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
PAX WORLD MONEY MARKET FUND, INC.
REPORT OF INDEPENDENT ACCOUNTANTS
================================================================================
To the Board of Directors and Shareholders of
Pax World Money Market Fund, Inc.
In our opinion, the accompanying statement of net assets and the related
statements of operations and of changes in net assets and the financial
highlights present fairly, in all material respects, the financial position of
Pax World Money Market Fund, Inc. (the "Fund") at January 31, 2000, and the
results of its operations, the changes in its net assets and the financial
highlights for the year then ended, in conformity with accounting principles
generally accepted in the United States. These financial statements and
financial highlights (hereafter referred to as "financial statements") are the
responsibility of the Fund's management; our responsibility is to express an
opinion on these financial statements based on our audit. We conducted our audit
of these financial statements in accordance with auditing standards generally
accepted in the United States which require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements are free
of material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements, assessing
the accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audit, which included confirmation of securities at January 31, 2000 by
correspondence with the custodian, provides a reasonable basis for the opinion
expressed above. The financial statements for the period from May 27, 1998
(Commencement of Sales) to January 31, 1999 were audited by other independent
accountants whose report dated February 26, 1999 expressed an unqualified
opinion on those financial statements.
PricewaterhouseCoopers LLP
New York, New York
February 29, 2000
- --------------------------------------------------------------------------------
<PAGE>
- --------------------------------------------------------------------------------
PAX WORLD MONEY MARKET FUND, INC.
CHANGE IN INDEPENDENT ACCOUNTANTS
================================================================================
On August 13, 1999, McGladrey & Pullen, LLP (McGladrey) resigned as independent
auditors of the Fund pursuant to an agreement by PricewaterhouseCoopers LLP
(PwC) to acquire McGladrey's investment company practice. The McGladrey partners
and professionals serving the Fund at the time of the acquisition have joined
PwC.
The reports of McGladrey on the financial statements of the Fund during the past
two fiscal years contained no adverse opinion or a disclaimer of opinion, and
were not qualified or modified as to uncertainty, audit scope or accounting
principles.
In connection with its audits for the most recent two fiscal years and through
August 13, 1999, there were no disagreements with McGladrey on any matter of
accounting principle or practices, financial statement disclosure, or auditing
scope or procedure, which disagreements, if not resolved to the satisfaction of
McGladrey would have caused it to make reference to the subject matter of
disagreement in connection with its report.
Effective August 13, 1999, the Fund, with the approval of its Board of Directors
and its Audit Committee, engaged PwC as its independent auditors.
- --------------------------------------------------------------------------------
<PAGE>
