<PAGE>
Oppenheimer Money Market Fund, Inc.
Oppenheimer Annual Report December 31, 1993
[LOGO]
"Life is full of surprises. I need to know if
I can rely on our investment money when I need it.
"With this Fund, I've earned income while
having access to my investment."
[GRAPHIC]
<PAGE>
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FUND FACTS
- -------------------------------------------------------------------------------
Six Facts Every Shareholder Should Know About
Oppenheimer Money Market Fund, Inc.
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1 The Fund seeks current income that is consistent
with stability of principal. It invests in a
diversified portfolio of short-term money market
securities.
------------------------------------------------------
2 Compounded annualized yield for the twelve months
In this report: ended December 31, 1993 was 2.71%. The
corresponding yield without compounding was 2.68%.
Answers to three ------------------------------------------------------
timely questions you 3 Dividends paid per share for the past twelve
should ask your months totaled $0.03.
Fund's managers. ------------------------------------------------------
4 The Fund's seven-day annualized yield as of
/ /With interest December 31, 1993 was 2.65% with compounding, and
rates at low levels, 2.62% without compounding.
how has the Fund ------------------------------------------------------
maintained an 5 The Fund seeks to maintain a constant $1.00 per
attractive yield? share net asset value through an investment
strategy that emphasizes careful analysis and
/ /What is the outlook diversification to preserve capital. Taking a
for money market rates conservative approach to credit quality, the Fund
in 1994? invests only in highly-rated short-term
investments. Portfolio allocation on 12/31/93
/ /Which sectors of the was: (1)
money market securities
market has the Fund SHORT-TERM NOTES 78.0%
emphasized during the DIRECT BANK OBLIGATIONS 8.9%
past year and why? U.S. GOVERNMENT SECURITIES 8.6% [graphic]
CERTIFICATES OF DEPOSIT 4.1%
REPURCHASE AGREEMENTS 0.4%
------------------------------------------------------
6 "During a year in which short-term interest rates
were essentially flat, we took several steps to
maintain and enhance the Fund's yield. While
investing only in high quality securities, we
purchased largely in the corporate market, which
offered the most attractive yields. Additionally,
approximately 29% of the Fund's assets were in
floating rate instruments, which provided
additional income to the Fund when their coupon
was adjusted as interest rates moved up slightly
during October."
PORTFOLIO MANAGER, CAROL WOLF, DECEMBER 31, 1993
(1) The Fund's portfolio is subject to change.
Past performance does not guarantee future
results.
2 Oppenheimer Money Market Fund, Inc.
<PAGE>
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REPORT TO SHAREHOLDERS
- -------------------------------------------------------------------------------
Oppenheimer Money Market Fund provided shareholders
with competitive yields during the twelve months ended
December 31, 1993. The Fund's compounded annualized
yield for the twelve months ended December 31, 1993 was
2.71%. Without compounding, the corresponding yield
was 2.68%.
The Fund's seven-day annualized yields
were 2.65% with compounding, and 2.62% without
compounding as of December 31, 1993.
The Fund is managed to seek current
income consistent with the preservation of capital. It
invests in high quality, short-term money market
securities.
- --------------------- During the past year, the market for
HIGH QUALITY, money market securities was characterized by stable
DIVERSIFIED PORTFOLIO short-term interest rates. With the economy sluggish
throughout most of the year, interest rates remained
The Fund's top 5 low, which made it attractive for companies to issue
holdings as of long-term debt. Therefore, the supply of short-term
12/31/93 were money market securities was lower than usual. Inflation
short-term notes remained under control which led to a neutral stance by
of: the Federal Reserve regarding interest rate
- --------------------- adjustments. The net result is that current short-term
interest rates are at essentially the same level as at
SMALL BUSINESS the beginning of 1993.
ADMINISTRATION
- --------------------- The Fund continues to invest all of its
assets in high quality money market instruments. The
SUN LIFE INSURANCE CO. Fund's portfolio is currently concentrated in the
corporate sector of the market to gain additional
- --------------------- yield. Within this area, a portion of holdings are
invested in floating rate instruments, which have
COUNTRYWIDE FUNDING yields tied to various indices, such as the prime rate
CORP. or U.S. Treasury bill rate. The Fund received higher
- --------------------- yields from these securities when short-term interest
rates increased in October.
AMERICAN BRANDS, INC.
- --------------------- In selecting money market securities,
the Fund's managers diversify the portfolio's holdings
BEAR STEARNS by market sector and issuer. Each security is carefully
analyzed to ensure that it meets the high quality
standards of the Fund and can provide a competitive
return. Recently, securities of several select Japanese
banks were added to the Fund.
Going forward, the Fund will continue to
seek attractive yield opportunities, while closely
monitoring economic factors in order to anticipate
interest rate movements. Although we do not believe
that short-term interest rates will increase
dramatically in 1994, we intend to adjust the average
maturity of our holdings to take advantage of new
opportunities if rates rise slightly later in the year.
We appreciate your confidence in the
Fund's management. We will continue to do our best to
help you reach your investment goals.
"THE FUND'S
PORTFOLIO IS
CURRENTLY
CONCENTRATED IN
THE CORPORATE
SECTOR OF THE
MARKET TO GAIN
ADDITIONAL YIELD."
/s/ Donald W. Spiro
Donald W. Spiro
President
Oppenheimer Money Market Fund, Inc.
January 21, 1994
3 Oppenheimer Money Market Fund, Inc.
<PAGE>
<TABLE>
<CAPTION>
--------------------------------------------------
STATEMENT OF INVESTMENTS December 31, 1993
FACE MARKET VALUE
AMOUNT SEE NOTE 1
- ------------------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C>
REPURCHASE AGREEMENTS-0.4%
- ------------------------------------------------------------------------------------------------------------------------------------
Repurchase agreement with J.P. Morgan Securities, Inc.,
3.23%, dated 12/31/93 and maturing 1/3/94, collateralized by Federal
National Mortgage Assn. Participation Certificates, 5.50%, 12/1/08,
with a value of $2,562,499 (Cost $2,500,000) $ 2,500,000 $ 2,500,000
- ------------------------------------------------------------------------------------------------------------------------------------
CERTIFICATES OF DEPOSIT-4.1%
- ------------------------------------------------------------------------------------------------------------------------------------
Banque Nationale de Paris, 3.34%-3.43%, 1/28/94-4/28/94 10,000,000 9,999,466
------------------------------------------------------------------------------------------------------
Mitsubishi Bank Ltd., 3.30%-3.46%, 3/31/94-6/22/94 10,000,000 10,000,319
------------------------------------------------------------------------------------------------------
Sanwa Bank Ltd., 3.41%, 2/2/94 5,000,000 4,999,866
------------
Total Certificates of Deposit (Cost $24,999,651) 24,999,651
- ------------------------------------------------------------------------------------------------------------------------------------
DIRECT BANK OBLIGATIONS-8.9%
- ------------------------------------------------------------------------------------------------------------------------------------
Abbey National PLC, guaranteeing commercial paper of:
Abbey National North America Corp., 3.22%-3.37%, 3/18/94-4/26/94 22,500,000 22,327,054
------------------------------------------------------------------------------------------------------
ABN Amro Bank NV, guaranteeing commercial paper of:
ABN AMRO Bank Canada, 3.26%-3.30%, 2/16/94-3/17/94 12,000,000 11,946,061
------------------------------------------------------------------------------------------------------
Canadian Imperial Bank of Commerce, guaranteeing commercial paper of:
Canadian Imperial Holdings, Inc., 3.25%-3.27%, 1/26/94-1/28/94 10,000,000 9,976,458
------------------------------------------------------------------------------------------------------
Societe Generale, guaranteeing commercial paper of:
Societe Generale North America, Inc., 3.33%, 1/12/94 4,250,000 4,245,676
------------------------------------------------------------------------------------------------------
Toronto-Dominion Bank, guaranteeing commercial paper of:
Toronto-Dominion Holdings, Inc., 3.30%, 4/11/94 6,000,000 5,945,000
------------
Total Direct Bank Obligations (Cost $54,440,249) 54,440,249
- ------------------------------------------------------------------------------------------------------------------------------------
SHORT-TERM NOTES-78.2%
- ------------------------------------------------------------------------------------------------------------------------------------
ASSET-BACKED-9.3% Beta Finance, Inc., 3.32%, 1/31/94(3) 9,000,000 8,975,100
------------------------------------------------------------------------------------------------------
CIESCO L.P., 3.25%-3.35%, 2/2/94-2/3/94 8,400,000 8,374,985
------------------------------------------------------------------------------------------------------
Cooperative Association of Tractor Dealers, Inc., 3.27%-3.40%, 1/7/94-3/4/94 8,800,000 8,770,527
------------------------------------------------------------------------------------------------------
Corporate Asset Funding Co., Inc., 3.15%-3.27%, 1/18/94-3/3/94 10,000,000 9,964,859
------------------------------------------------------------------------------------------------------
CXC, Inc., 3.40%, 1/21/94 11,000,000 10,979,222
------------------------------------------------------------------------------------------------------
Preferred Receivables Funding Corp., 3.35%, 1/20/94 5,000,000 4,991,160
------------------------------------------------------------------------------------------------------
SMM Trust 1993-A, 3.3625%, 3/18/94(3) 5,000,000 4,999,864
------------
57,055,717
- ------------------------------------------------------------------------------------------------------------------------------------
BANKS-0.8% Bankers Trust New York Corp., 3.36%, 2/11/94 5,000,000 4,980,867
- ------------------------------------------------------------------------------------------------------------------------------------
BROKER/DEALERS-19.5% Bear Stearns Cos., Inc.:
3.37%-3.6875%, 1/3/94-1/4/94(1) 10,000,000 10,000,000
3.25%-3.44%, 3/23/94-5/16/94 16,000,000 15,854,417
------------------------------------------------------------------------------------------------------
Goldman Sachs Group L.P.:
3.50%-3.60%, 1/18/94-2/1/94(3)(4) 10,000,000 10,000,000
3.35%, 2/1/94 10,000,000 9,971,583
3.25%, 3/21/94(1)(2)(3)(4) 5,000,000 5,000,000
</TABLE>
4 Oppenheimer Money Market Fund, Inc.
<PAGE>
<TABLE>
<CAPTION>
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FACE MARKET VALUE
AMOUNT SEE NOTE 1
- ------------------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C>
BROKER/DEALERS Lehman Brothers Holdings, Inc.:
(CONTINUED) 3.375%, 1/3/94(1) $ 5,000,000 $ 5,000,000
3.40%, 1/14/94 5,000,000 4,993,861
------------------------------------------------------------------------------------------------------
Merrill Lynch & Co., Inc.:
3.045%, 1/3/94(1) 10,000,000 9,999,541
3.25%-3.28%, 2/14/94-4/18/94 10,000,000 9,931,657
------------------------------------------------------------------------------------------------------
Morgan Stanley Group, Inc., 2.82%, 1/3/94(1) 16,900,000 16,900,000
------------------------------------------------------------------------------------------------------
Shearson Lehman Brothers Holdings, Inc.:
3.57%, 1/4/94(1) 5,000,000 5,000,000
3.5781%, 1/7/94 16,000,000 16,000,000
------------
118,651,059
------------------------------------------------------------------------------------------------------
BUILDING MATERIALS GROUP Compagnie de Saint-Gobain SA, 3.28%, 5/19/94 10,000,000 9,874,266
- -1.6
- ------------------------------------------------------------------------------------------------------------------------------------
COMMERCIAL FINANCE-3.8% CIT Group Holdings, Inc., 3.5915%, 5/9/94(1)(2) 10,000,000 10,000,000
------------------------------------------------------------------------------------------------------
Heller Financial, Inc., 3.6897%, 5/18/94(1)(2) 13,000,000 13,000,000
------------
23,000,000
- ------------------------------------------------------------------------------------------------------------------------------------
CONGLOMERATES-2.3% Mitsubishi International Corp., 3.27%-3.35%, 1/21/94-4/20/94 14,000,000 13,945,510
- ------------------------------------------------------------------------------------------------------------------------------------
CONSUMER FINANCE-0.4% Norwest Financial, Inc., 8.25%, 2/1/94 2,500,000 2,510,011
- ------------------------------------------------------------------------------------------------------------------------------------
CONSUMER NON-CYCLICALS-4.4% American Brands, Inc., 3.27%-3.43%, 1/10/94-5/2/94 27,000,000 26,867,555
- ------------------------------------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCE-8.9% General Electric Capital Corp., 3.30%-3.40%, 4/18/94-4/26/94 14,043,000 13,899,894
------------------------------------------------------------------------------------------------------
Household Finance Corp., 3.41%-3.45%, 1/3/94-1/5/94(1) 22,000,000 22,000,000
------------------------------------------------------------------------------------------------------
Transamerica Finance Corp., 3.30%-3.35%, 2/4/94-4/14/94 18,444,000 18,357,240
------------
54,257,134
- ------------------------------------------------------------------------------------------------------------------------------------
FINANCIAL SERVICES: Countrywide Funding Corp., 3.30%-3.40%, 1/7/94-4/6/94 30,000,000 29,912,362
------------------------------------------------------------------------------------------------------
MISCELLANEOUS-9.0% Fleet Mortgage Group, Inc., 3.44%-3.45%, 1/13/94-1/14/94 25,000,000 24,970,328
------------
54,882,690
- ------------------------------------------------------------------------------------------------------------------------------------
FOREIGN GOVERNMENT Finnish Export Credit Ltd., supported by the Republic of Finland,
OBLIGATIONS-1.6% 3.27%, 2/18/94 5,000,000 4,978,200
------------------------------------------------------------------------------------------------------
New South Wales Treasury Corp., supported by the Commonwealth of
Australia, State of New South Wales, 3.35%, 1/24/94 5,000,000 4,989,299
------------
9,967,499
- ------------------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL-2.2% Atlas Copco AB, 3.40%, 1/28/94 3,000,000 2,992,350
------------------------------------------------------------------------------------------------------
BICC Cables Corp., guaranteed by BICC PLC, 3.37%-3.50%, 1/14/94-1/21/94 10,500,000 10,483,549
------------
13,475,899
- ------------------------------------------------------------------------------------------------------------------------------------
INSURANCE-4.9% Sun Life Insurance Co., 3.7125%, 1/10/94(1)(2) 30,000,000 30,000,000
- ------------------------------------------------------------------------------------------------------------------------------------
LUBRICANTS AND FUELS-2.9% Burmah Castrol Finance PLC, guaranteed by Burmah
Castrol PLC, 3.30%-3.40%, 1/19/94-1/26/94(3) 17,500,000 17,464,702
</TABLE>
5 Oppenheimer Money Market Fund, Inc.
<PAGE>
<TABLE>
<CAPTION>
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STATEMENT OF INVESTMENTS (Continued)
FACE MARKET VALUE
AMOUNT SEE NOTE 1
- ------------------------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------------------
MUNICIPAL-2.1% Carilion Services, Inc., guaranteed by MBIA, 3.45%, 1/31/94 $ 5,000,000 $ 5,000,000
------------------------------------------------------------------------------------------------------
North Slope Borough Alaska, 4.35%, 6/30/94 8,000,000 8,000,000
------------
13,000,000
- ------------------------------------------------------------------------------------------------------------------------------------
OIL: INTEGRATED DOMESTIC Koch Industries, 3.30%, 1/3/94(3) 10,000,000 9,998,167
- -1.6%
- ------------------------------------------------------------------------------------------------------------------------------------
OIL: INTEGRATED Petrofina (DE), Inc., 3.30%, 4/20/94 5,000,000 4,950,042
INTERNATIONAL-1.6% ------------------------------------------------------------------------------------------------------
Statoil, guaranteed by Den Norske Stats Oljeselskap AS, 3.55%, 1/3/94 5,000,000 4,999,014
------------
9,949,056
- ------------------------------------------------------------------------------------------------------------------------------------
SAVINGS AND LOANS/ Household Bank, 3.45%, 1/14/94 3,000,000 3,000,000
HOLDING COMPANIES-0.5%
- ------------------------------------------------------------------------------------------------------------------------------------
TELECOMMUNICATIONS-0.8% NYNEX Corp., 3.40%, 3/28/94 5,000,000 4,959,389
------------
Total Short-Term Notes (Cost $477,839,521) 477,839,521
- ------------------------------------------------------------------------------------------------------------------------------------
SHORT-TERM U.S. GOVERNMENT OBLIGATIONS-8.6%
- ------------------------------------------------------------------------------------------------------------------------------------
Export-Import Bank, 4.25%, 1/4/94(1)(3) 1,715,868 1,732,546
------------------------------------------------------------------------------------------------------
Small Business Administration, 4.50%-7.625%, 1/1/94(1) 47,524,711 50,706,759
------------
Total Short-Term U.S. Government Obligations (Cost $52,439,305) 52,439,305
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE (COST $612,218,726) 100.2% 612,218,726
- ------------------------------------------------------------------------------------------------------------------------------------
LIABILITIES IN EXCESS OF OTHER ASSETS (.2) (941,301)
----------- ------------
NET ASSETS 100.0% $611,277,425
----------- ------------
----------- ------------
<FN>
Short-term notes and direct bank obligations are
generally traded on a discount basis; the interest
rate is the discount rate received by the Fund at
the time of purchase. Other securities normally
bear interest at the rates shown.
(1) Variable rate security. The interest rate,
which is based on specific, or an index of, market
interest rates, is subject to change periodically
and is the effective rate on December 31, 1993.
(2) Put obligation redeemable at full face value on
the date reported.
(3) Security purchased in private placement
transaction, without registration under the
Securities Act of 1933 (the Act). The securities
were acquired between June 11, 1993 and December
31, 1993, are carried at amortized cost, and amount
to $58,170,379, or 9.5% of the Fund's net assets.
(4) In addition to being restricted, the security
is considered illiquid by virtue of the absence of
a readily available market or because of legal or
contractual restrictions on resale. Illiquid
securities amount to $15,000,000, or 2.5% of the
Fund's net assets, at December 31, 1993. The Fund
may not invest more than 10% of its net assets
(determined at the time of purchase) in illiquid
securities.
See accompanying Notes to Financial Statements.
</TABLE>
6 Oppenheimer Money Market Fund, Inc.
<PAGE>
<TABLE>
<CAPTION>
------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES December 31, 1993
- -------------------------------------------------------------------------------------------------------------------------------
<C> <S> <C>
ASSETS Investments, at value (cost $612,218,726)-see accompanying statement $612,218,726
--------------------------------------------------------------------------------------------------
Cash 3,726,921
--------------------------------------------------------------------------------------------------
Receivables:
Shares of capital stock sold 11,321,107
Interest and principal paydowns 3,145,128
--------------------------------------------------------------------------------------------------
Other 88,500
------------
Total assets 630,500,382
- -------------------------------------------------------------------------------------------------------------------------------
LIABILITIES Payables and other liabilities:
Shares of capital stock redeemed 18,735,973
Dividends 85,390
Other 401,594
------------
Total liabilities 19,222,957
- -------------------------------------------------------------------------------------------------------------------------------
NET ASSETS $611,277,425
------------
- -------------------------------------------------------------------------------------------------------------------------------
COMPOSITION OF Par value of shares of capital stock $ 61,127,692
--------------------------------------------------------------------------------------------------
NET ASSETS Additional paid-in capital 550,149,223
--------------------------------------------------------------------------------------------------
Accumulated net realized gain from investment transactions 510
------------
Net assets-applicable to 611,276,915 shares of capital stock outstanding $611,277,425
------------
------------
- -------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE, REDEMPTION PRICE AND OFFERING PRICE PER SHARE $1.00
</TABLE>
See accompanying Notes to Financial Statements.
7 Oppenheimer Money Market Fund, Inc.
<PAGE>
<TABLE>
<CAPTION>
-------------------------------------------------------------
STATEMENT OF OPERATIONS For the Year Ended December 31, 1993
- ------------------------------------------------------------------------------------------------------------------------------
<C> <S> <C>
INVESTMENT INCOME Interest $22,991,792
- ------------------------------------------------------------------------------------------------------------------------------
EXPENSES Management fees--Note 3 2,901,415
-------------------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees--Note 3 2,069,285
-------------------------------------------------------------------------------------------------
Shareholder reports 380,022
-------------------------------------------------------------------------------------------------
Custodian fees and expenses 111,241
-------------------------------------------------------------------------------------------------
Directors' fees and expenses 82,472
-------------------------------------------------------------------------------------------------
Registration and filing fees 71,315
-------------------------------------------------------------------------------------------------
Legal and auditing fees 35,473
-------------------------------------------------------------------------------------------------
Other 19,503
-----------
Total expenses 5,670,726
- ------------------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME 17,321,066
- ------------------------------------------------------------------------------------------------------------------------------
NET REALIZED GAIN ON INVESTMENTS 211,020
- ------------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $17,532,086
-----------
-----------
</TABLE>
See accompanying Notes to Financial Statements.
8 Oppenheimer Money Market Fund, Inc.
<PAGE>
<TABLE>
<CAPTION>
-------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED DECEMBER 31,
-----------------------------
1993 1992
- -------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C>
OPERATIONS Net investment income $ 17,321,066 $ 27,762,538
--------------------------------------------------------------------------------------
Net realized gain on investments 211,020 85,197
------------ ------------
Net increase in net assets resulting from operations 17,532,086 27,847,735
- -------------------------------------------------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS
TO SHAREHOLDERS (17,675,610) (27,847,735)
- -------------------------------------------------------------------------------------------------------------------
CAPITAL STOCK Net decrease in net assets resulting from capital
TRANSACTIONS stock transactions (80,347,909) (207,486,933)
- -------------------------------------------------------------------------------------------------------------------
NET ASSETS Total decrease (80,491,433) (207,486,933)
- -------------------------------------------------------------------------------------------------------------------
Beginning of year 691,768,858 899,255,791
------------ ------------
End of year $611,277,425 $691,768,858
------------ ------------
------------ ------------
</TABLE>
See accompanying Notes to Financial Statements.
9 Oppenheimer Money Market Fund, Inc.
<PAGE>
<TABLE>
<CAPTION>
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FINANCIAL HIGHLIGHTS
YEAR ENDED DECEMBER 31,
1993 1992 1991 1990 1989 1988 1987 1986 1985 1984
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING DATA:
Net asset value, beginning of year $1.00 $1.00 $ 1.00 $ 1.00 $1.00 $1.00 $1.00 $1.00 $ 1.00 $ 1.00
- --------------------------------------------------------------------------------------------------------------------------
Income from investment operations-
net investment income and net
realized gain on investments .03 .03 .06 .08 .08 .07 .06 .06 .07 .10
- --------------------------------------------------------------------------------------------------------------------------
Dividends and distributions
to shareholders (.03) (.03) (.06) (.08) (.08) (.07) (.06) (.06) (.07) (.10)
- --------------------------------------------------------------------------------------------------------------------------
Net asset value, end of year $1.00 $1.00 $ 1.00 $ 1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
----- ----- ------ ------ ----- ----- ----- ----- ----- -----
----- ----- ------ ------ ----- ----- ----- ----- ----- -----
- --------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of year (in millions) $611 $692 $899 $1,082 $940 $794 $718 $744 $738 $1,417
- --------------------------------------------------------------------------------------------------------------------------
Average net assets (in millions) $653 $811 $1,003 $1,033 $873 $713 $620 $752 $1,026 $1,356
- --------------------------------------------------------------------------------------------------------------------------
Number of shares outstanding
at end of year (in millions) 611 692 899 1,082 940 794 718 744 738 1,417
- --------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income 2.65% 3.42% 5.66% 7.66% 8.55% 6.98% 6.04% 6.12% 7.56% 9.85%
Expenses .87% .88% .77% .74% .78% .80% .86% .77% .77% .77%
</TABLE>
See accompanying Notes to Financial Statements.
10 Oppenheimer Money Market Fund, Inc.
<PAGE>
-------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
- -------------------------------------------------------------------------------
1. SIGNIFICANT Oppenheimer Money Market Fund, Inc. (the Fund) is
ACCOUNTING POLICIES registered under the Investment Company Act of 1940, as
amended, as a diversified, open-end management
investment company. The Fund's investment advisor is
Oppenheimer Management Corporation (the Manager). The
following is a summary of significant accounting
policies consistently followed by the Fund.
-------------------------------------------------
INVESTMENT VALUATION. Portfolio securities are valued
on the basis of amortized cost, which approximates
market value.
- -------------------------------------------------------------------------------
REPURCHASE AGREEMENTS. The Fund requires the custodian
to take possession, to have legally segregated in the
Federal Reserve Book Entry System or to have segregated
within the custodian's vault, all securities held as
collateral for repurchase agreements. If the seller of
the agreement defaults and the value of the collateral
declines, or if the seller enters an insolvency
proceeding, realization of the value of the collateral
by the Fund may be delayed or limited.
- -------------------------------------------------------------------------------
FEDERAL INCOME TAXES. The Fund intends to continue to
comply with provisions of the Internal Revenue Code
applicable to regulated investment companies and to
distribute all of its taxable income to shareholders.
Therefore, no federal income tax provision is required.
- -------------------------------------------------------------------------------
DIRECTORS' FEES AND EXPENSES. The Fund has adopted a
nonfunded retirement plan for the Fund's independent
directors. Benefits are based on years of service and
fees paid to each director during the years of service.
During the year ended December 31, 1993, a provision of
$29,365 was made for the Fund's projected benefit
obligations, resulting in an accumulated liability of
$117,741 at December 31, 1993. No payments have been
made under the plan.
- -------------------------------------------------------------------------------
DISTRIBUTIONS TO SHAREHOLDERS. The Fund intends to
declare dividends from net investment income each
regular business day and pay such dividends monthly. To
effect its policy of maintaining a net asset value of
$1.00 per share, the Fund may withhold dividends or
make distributions of net realized gains.
- -------------------------------------------------------------------------------
OTHER. Investment transactions are accounted for on the
date the investments are purchased or sold (trade
date). Realized gains and losses on investments are
determined on an identified cost basis, which is the
same basis used for federal income tax purposes.
- -------------------------------------------------------------------------------
2. CAPITAL STOCK The Fund has authorized 5,000,000,000 shares of $.10
par value capital stock. Transactions in shares of
capital stock were as follows:
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31, 1993 YEAR ENDED DECEMBER 31, 1992
------------------------------- -------------------------------
SHARES AMOUNT SHARES AMOUNT
--------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Sold 1,042,487,698 $1,042,487,698 1,079,564,530 $1,079,564,530
Dividends and distributions reinvested 16,858,588 16,858,588 26,411,623 26,411,623
Redeemed (1,139,694,195) (1,139,694,195) (1,313,463,086) (1,313,463,086)
------------- -------------- ------------- --------------
Net decrease (80,347,909) $ (80,347,909) (207,486,933) $ (207,486,933)
------------- -------------- ------------- --------------
------------- ------------- ------------- --------------
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
3. MANAGEMENT FEES Management fees paid to the Manager were in accordance
AND OTHER TRANSACTIONS with the investment advisory agreement with the Fund
WITH AFFILIATES which provides for an annual fee of .45% on the first
$500 million of net assets with a reduction of .025%
on each $500 million thereafter, to .375% on net
assets in excess of $1.5 billion. The Manager has
agreed to reimburse the Fund if aggregate expenses
(with specified exceptions) exceed the lesser of 1% of
average annual net assets of the Fund or 25% of the
total annual investment income of the Fund.
Oppenheimer Shareholder Services (OSS),
a division of the Manager, is the transfer and
shareholder servicing agent for the Fund, and for
other registered investment companies. OSS's total
costs of providing such services are allocated ratably
to these companies.
11 Oppenheimer Money Market Fund, Inc.
<PAGE>
-----------------------------------------------------
INDEPENDENT AUDITORS' REPORT
- -------------------------------------------------------------------------------
The Board of Directors and Shareholders of Oppenheimer
Money Market Fund, Inc.:
We have audited the accompanying statements of
investments and assets and liabilities of Oppenheimer
Money Market Fund, Inc. as of December 31, 1993, and
the related statement of operations for the year then
ended, the statements of changes in net assets for
each of the years in the two-year period then ended
and the financial highlights for each of the years in
the ten-year period then ended. 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 audits.
We conducted our audits 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 and financial
highlights. Our procedures included confirmation of
securities owned as of December 31, 1993, 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 audits provide 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 Oppenheimer Money Market Fund, Inc. as of
December 31, 1993, the results of its operations for
the year then ended, the changes in its net assets for
each of the years in the two-year period then ended,
and the financial highlights for each of the years in
the ten-year period then ended, in conformity with
generally accepted accounting principles.
KPMG PEAT MARWICK
Denver, Colorado
January 21, 1994
12 Oppenheimer Money Market Fund, Inc.
<PAGE>
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FEDERAL INCOME TAX INFORMATION (Unaudited)
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In early 1994, shareholders will receive information
regarding all dividends and distributions paid to them
by the Fund during calendar year 1993. Regulations of
the U.S. Treasury Department require the Fund to
report this information to the Internal Revenue
Service.
None of the dividends paid by the Fund
during the fiscal year ended December 31, 1993 are
eligible for the corporate dividend-received
deduction.
The foregoing information is presented
to assist shareholders in reporting distributions
received from the Fund to the Internal Revenue
Service. Because of the complexity of the federal
regulations which may affect your individual tax
return and the many variations in state and local tax
regulations, we recommend that you consult your tax
advisor for specific guidance.
13 Oppenheimer Money Market Fund, Inc.
<PAGE>
<TABLE>
<CAPTION>
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OPPENHEIMER MONEY MARKET FUND, INC.
<C> <S>
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OFFICERS AND DIRECTORS Leon Levy, Chairman of the Board of Directors
Leo Cherne, Director
Edmund T. Delaney, Director
Robert G. Galli, Director
Benjamin Lipstein, Director
Elizabeth B. Moynihan, Director
Kenneth A. Randall, Director
Edward V. Regan, Director
Russell S. Reynolds, Jr., Director
Sidney M. Robbins, Director
Donald W. Spiro, Director and President
Pauline Trigere, Director
Clayton K. Yeutter, Director
Carol E. Wolf, Vice President
George C. Bowen, Treasurer
Lynn M. Coluccy, Assistant Treasurer
Andrew J. Donohue, Secretary
Robert G. Zack, Assistant Secretary
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INVESTMENT ADVISOR Oppenheimer Management Corporation
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DISTRIBUTOR Oppenheimer Funds Distributor, Inc.
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TRANSFER AND Oppenheimer Shareholder
SHAREHOLDER Services
SERVICING AGENT
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CUSTODIAN OF Citibank, N.A.
PORTFOLIO SECURITIES
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INDEPENDENT AUDITORS KPMG Peat Marwick
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LEGAL COUNSEL Gordon Altman Butowsky Weitzen
Shalov & Wein
This is a copy of a report to shareholders of Oppenheimer Money Market Fund, Inc.
This report must be preceded or accompanied by a Prospectus of Oppenheimer Money Market
Fund, Inc. For material information concerning the Fund, see the Prospectus.
</TABLE>
14 Oppenheimer Money Market Fund, Inc.
<PAGE>
-------------------------------------------------------
THE FAMILY OF OPPENHEIMERFUNDS
- -------------------------------------------------------------------------------
OppenheimerFunds offers over 30 funds designed to fit
virtually every investment goal. Whether you're
investing for retirement, your children's education, or
tax-free income, we have the funds to help you seek
your objective.
When you invest with OppenheimerFunds,
you can feel comfortable knowing that you are investing
with a respected financial institution with over 30
years of experience in helping people just like you
reach their financial goals. And you're investing with
a leader in global, growth stock, and flexible fixed
income investments--with over 1.7 million shareholder
accounts and more than $25 billion under Oppenheimer's
management and that of our affiliates.
As an OppenheimerFunds shareholder, you
can easily exchange shares of eligible funds of the
same class by mail or by telephone for a small
administrative fee.(1) For more information on
OppenheimerFunds, please contact your financial advisor
or call us at 1-800-525-7048 for a prospectus. You may
also write us at the address shown on the back cover.
As always, please read the prospectus carefully before
you invest.
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
SPECIALTY STOCK FUNDS Global Bio-Tech Fund Gold & Special Minerals Fund
Global Environment Fund
- ----------------------------------------------------------------------------------------------------------------------
STOCK FUNDS Discovery Fund Global Fund
Time Fund Oppenheimer Fund
Target Fund Value Stock Fund
Special Fund
- ----------------------------------------------------------------------------------------------------------------------
STOCK AND BOND FUNDS Main Street Income & Growth Fund Equity Income Fund
Total Return Fund Asset Allocation Fund
Global Growth & Income Fund
- ----------------------------------------------------------------------------------------------------------------------
BOND FUNDS High Yield Fund Strategic Short-Term Income Fund
Champion High Yield Fund Investment Grade Bond Fund
Strategic Income & Growth Fund Mortgage Income Fund (3)
Strategic Income Fund U.S. Government Trust
Strategic Diversified Income Fund Government Securities Fund
Strategic Investment Grade Bond Fund
- ----------------------------------------------------------------------------------------------------------------------
TAX-EXEMPT FUNDS New York Tax-Exempt Fund(2) Tax-Free Bond Fund
California Tax-Exempt Fund(2) Insured Tax-Exempt Bond Fund
Pennsylvania Tax-Exempt Fund(2) Intermediate Tax-Exempt Bond Fund
Florida Tax-Exempt Fund(2)
- ----------------------------------------------------------------------------------------------------------------------
MONEY MARKET FUNDS Money Market Fund Tax-Exempt Cash Reserves
Cash Reserves
- ----------------------------------------------------------------------------------------------------------------------
<FN>
1. The fee is waived for PhoneLink exchanges
between existing accounts. Exchange
privileges are subject to change or
termination.
2. Available only to residents of those
states.
3. Formerly GNMA Fund.
OppenheimerFunds are distributed by
Oppenheimer Funds Distributor, Inc., Two
World Trade Center, New York, NY 10048-0203.
Copyright 1994 Oppenheimer Management
Corporation. All rights reserved.
</TABLE>
15 Oppenheimer Money Market Fund, Inc.
<PAGE>
"How may I help you?"
GENERAL INFORMATION
1-800-525-7048
Talk to a Customer Service Representative.
Monday through Friday from
8:30 a.m. to 8:00 p.m., and
Saturday from 10:00 a.m.
to 2:00 p.m. ET.
TELEPHONE TRANSACTIONS
1-800-852-8457
Make account transactions with a
Customer Service Representative.
Monday through Friday from
8:30 a.m. to 8:00 p.m. ET.
PHONELINK
1-800-533-3310
Get automated information or
make automated transactions.
24 hours a day, 7 days a week.
TELECOMMUNICATION
DEVICE FOR THE DEAF
1-800-843-4461
Service for the hearing impaired.
Monday through Friday from
8:30 a.m. to 8:00 p.m. ET.
OPPENHEIMERFUNDS INFORMATION HOTLINE
1-800-835-3104
Hear timely and insightful
messages on the economy and
issues that affect your finances.
24 hours a day, 7 days a week.
"Just as OppenheimerFunds offers over 30 different funds designed to help meet
virtually every investment need, Oppenheimer Shareholder Services offers a
variety of services to satisfy your individual needs. Whenever you require help,
we're only a toll-free phone call away.
"For personalized assistance and account information, call our
General Information number to speak with our knowledgeable Customer Service
Representatives.
"We also make it easy for you
to redeem shares, exchange shares, or conduct [PICTURE]
AccountLink transactions, simply by calling our
Telephone Transactions number.
"And for added convenience, OppenheimerFunds' PhoneLink, an
automated voice response system, is available 24 hours a day, 7 days a week.
PhoneLink gives you access to variety of fund, account, and market information.
You can even make purchases, exchanges and redemptions using your touch-tone
[PICTURE] phone. Of course, PhoneLink will always give you the option to
speak with a Customer Service Representative during regular
business hours.
"When you invest in OppenheimerFunds, you know you'll receive a
high level of customer service. The International Customer Service Association
knows it, too, as it recently awarded Oppenheimer Shareholder Services a 1993
Award of Excellence for consistently demonstrating superior customer service.
"Whatever your needs, we're ready to assist you."
Bulk Rate
U.S. Postage
PAID
Permit No. 377
Hackensack, NJ
[LOGO]
Oppenheimer Funds Distributor, Inc.
P.O. Box 5270
Denver, CO 80217-5270
