Oppenheimer Money Market Fund, Inc.
Annual Report December 31, 1994
[photo depicting family on beach]
"I want to
know my
money will
be there
when I
need it."
[logo] OppenheimerFunds
<PAGE>
This Fund is for people who want to earn current income while maintaining the
value of their initial investment.
How Your Fund Is Managed
Oppenheimer Money Market Fund seeks maximum current income with stability of
principal while giving you a way to keep a portion of your assets liquid.
The manager of your Fund looks for maximum yield from money market
securities such as short-term corporate notes, U.S. government securities, and
certificates of deposit. The Fund's dividends accrue daily and are paid monthly.
And to offer you stability of principal, the Fund seeks to maintain a constant
$1.00 per share net asset value (NAV).(1)
Performance
The Fund's seven-day annualized yield as of 12/31/94 was 5.51% with compounding
and 5.37% without compounding.(2)
Compounded annualized yield for the 12 months ended 12/31/94 was
3.77%. The corresponding yield without compounding was 3.70%.(2)
Outlook
"The Fed is likely to raise short-term interest rates at least one more time in
1995. With the portfolio adjustments we've made over the past several months,
the Fund is ready to respond to whatever opportunities the future holds
in store."
Carol Wolf, Portfolio Manager
December 31, 1994
1. The Fund is neither insured nor guaranteed by the U.S. government, and
there is no assurance that the Fund will maintain a stable $1 share price in
the future.
2. Compounded yields assume reinvestment of dividends. Past performance is
not indicative of future results.
2 Oppenheimer Money Market Fund, Inc.
<PAGE>
Dear OppenheimerFunds Shareholder,
The past year was a good one for short-term investors. The U.S. Federal Reserve
undertook one of the most aggressive efforts to raise interest rates in its
history, and although the Fed's efforts brought significant uncertainty to the
nation's stock and bond markets, the short-term money markets benefited
throughout the year from rising yields.
In this environment, your Fund met its objectives well, combining an
attractive short-term yield and share-price stability with daily liquidity and
investment convenience.
At this writing, we believe that the outlook for the money markets
remains positive. Inflation remains low, and short-term money market investments
are providing attractive inflation-adjusted yields. Given the uncertainties
still surrounding the longer-term investment outlook, many investors are seeking
stable, liquid, short-term investments that provide dependable returns, and our
money market funds offer conservative investors an excellent option for their
short-term funds.
The reason has to do with our approach to short-term investing, a
disciplined one designed to identify money market instruments that seem
especially attractive when compared to others in the market, and to avoid those
that seem to carry unnecessary risks. Although your managers are always looking
for opportunities to enhance portfolio income by monitoring yield differentials
in the nation's money markets, principal stability is their top priority.
In closing, we want to welcome new investors to the Fund and to thank
those who have been with us for some time.
We appreciate your trust in OppenheimerFunds and we look forward to
helping you meet your investment objectives in the future.
Donald W. Spiro
President
Oppenheimer
Money Market
Fund, Inc.
Jon S. Fossel
Chairman and CEO
Oppenheimer
Management
Corporation
Donald W. Spiro Jon S. Fossel
January 23, 1995
3 Oppenheimer Money Market Fund, Inc.
<PAGE>
At right:
Portfolio Manager Carol Wolf
Q + A
An interview with your Fund's manager.
Short-term interest rates rose dramatically over the past 12 months; how did you
position the Fund's portfolio to capitalize on rising rates?
We took several steps to capitalize on rising interest rates. Most importantly,
we steadily shortened the Fund's average maturity during 1994, reducing it from
41 days on January 1 to 26 days at December 31.
Did you change the composition of the portfolio's holdings?
Not in any major way. We continued to maintain positions in overnight
investments, floating-rate notes, and variable-rate instruments, targeting
maturities to Federal Reserve Board meeting dates. At year end, overnight,
variable-rate and floating-rate investments accounted for 26% of the Fund's net
assets.(1)
In past reports, you mentioned that you take a "barbell" approach to portfolio
construction. What does that mean?
Basically it means that we concentrate our investments at the very short- and
long-term ends of the money market investment spectrum.
As I mentioned, as interest rates rose during the year, we increased
the Fund's holdings of overnight instruments and other investments whose yields
respond rapidly to changing interest rates.
At the same time, as interest rates continue to increase, we are also
extending the maturities of some of the portfolio's holdings in an effort to
"lock in" high rates for an extended period.
What are the benefits of this barbell approach?
There are several, but one stands out: Its success doesn't depend on the ability
to predict changes in the economy or interest rates. That's something no one
can do accurately with any consistency. With our barbell approach, we don't need
to forecast interest rates for the Fund to meet its objectives. The Fund,
instead, provides attractive returns and principal stability in any interest
rate environment.
What's your outlook for the Fund?
We think the outlook for Oppenheimer Money Market Fund is very positive. With
interest rates and inflation at their current levels, the Fund is providing
attractive inflation-adjusted returns along with principal stability, and we
don't see conditions changing significantly in the near term. The combination of
income and stability the Fund provides should continue to benefit investors
looking for a safe place to invest their short-term funds.
1. The Fund's portfolio is subject to change.
4 Oppenheimer Money Market Fund, Inc.
<PAGE>
<TABLE>
<CAPTION>
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Statement of Investments December 31, 1994
-----------------------------------------------------------------------------------------
Face Market Value
Amount See Note 1
================================================================================================================================
<S> <C> <C> <C>
Bankers' Acceptances--2.1%
- --------------------------------------------------------------------------------------------------------------------------------
Chase Manhattan Bank, N.A., 5.80%, 2/6/95 $10,000,000 $ 9,942,000
-----------------------------------------------------------------------------------------
CoreStates Bank, N.A., 5.15%, 1/18/95 10,000,000 9,975,681
------------
Total Bankers' Acceptances (Cost $19,917,681) 19,917,681
================================================================================================================================
Certificates of Deposit--1.3%
- --------------------------------------------------------------------------------------------------------------------------------
Domestic Certificates Huntington National Bank, 5.82%, 1/4/95(1) 7,000,000 6,998,612
of Deposit--0.8%
- --------------------------------------------------------------------------------------------------------------------------------
Yankee Certificates Mitsubishi Bank, Ltd., 5.87%, 2/17/95 5,000,000 4,999,871
of Deposit--0.5% ------------
Total Certificates of Deposit (Cost $11,998,483) 11,998,483
================================================================================================================================
Direct Bank Obligations--1.1%
- --------------------------------------------------------------------------------------------------------------------------------
FCC National Bank, 5.82%, 1/4/95(1) 5,000,000 4,996,188
-----------------------------------------------------------------------------------------
First National Bank of Boston, 5.645%, 2/16/95 5,000,000 4,997,528
------------
Total Direct Bank Obligations (Cost $9,993,716) 9,993,716
================================================================================================================================
Letters of Credit--8.4%
- --------------------------------------------------------------------------------------------------------------------------------
Credit Suisse, guaranteeing commercial paper of:
Queensland Alumina Ltd., 5.50%, 1/11/95 11,657,000 11,639,191
Queensland Alumina Ltd., 5.80%, 2/1/95 7,436,000 7,398,861
Queensland Alumina Ltd., 5.80%, 2/17/95 6,092,000 6,045,870
Queensland Alumina Ltd., 5.82%, 2/3/95 8,235,000 8,191,066
Queensland Alumina Ltd., 6%, 2/6/95 7,711,000 7,664,734
-----------------------------------------------------------------------------------------
Mitsubishi Bank Ltd., guaranteeing commercial paper of:
Mitsubishi Motors Credit of America, 5.45%, 1/13/95 8,766,000 8,749,761
Mitsubishi Motors Credit of America, 5.50%, 1/9/95 6,148,000 6,140,486
Mitsubishi Motors Credit of America, 5.71%, 1/11/95 5,000,000 4,992,069
Mitsubishi Motors Credit of America, 6.10%, 1/17/95 7,170,000 7,150,561
-----------------------------------------------------------------------------------------
Sanwa Bank Ltd., guaranteeing commercial paper of:
Orix America, Inc., 5.62%, 2/1/95(2) 10,000,000 9,951,607
------------
Total Letters of Credit (Cost $77,924,206) 77,924,206
================================================================================================================================
Short-Term Notes--79.3%
- --------------------------------------------------------------------------------------------------------------------------------
Asset-Backed--6.7% Beta Finance, Inc., 6.15%, 2/13/95(2) 2,000,000 1,985,308
-----------------------------------------------------------------------------------------
Cooperative Association of Tractor Dealers, Inc.,
6.10%, 1/13/95 5,000,000 4,989,833
-----------------------------------------------------------------------------------------
CXC, Inc.:
5.75%, 2/10/95 6,000,000 5,961,667
5.98%, 2/1/95(2) 5,946,000 5,915,279
-----------------------------------------------------------------------------------------
Preferred Receivables Funding Corp.:
5.52%, 1/25/95 9,550,000 9,514,856
5.65%, 1/10/95 3,250,000 3,245,409
5.70%, 1/9/95 10,000,000 9,987,333
-----------------------------------------------------------------------------------------
Riverwoods Funding Corp., 6.15%, 2/13/95 5,000,000 4,963,271
-----------------------------------------------------------------------------------------
WCP Funding, 6.10%, 2/13/95 16,000,000 15,883,423
------------
62,446,379
</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
================================================================================================================================
<S> <C> <C> <C>
Banks--3.3% Bankers Trust New York Corp., 5.64%, 1/3/95(1)(2)(3) $ 5,000,000 $ 4,999,490
-----------------------------------------------------------------------------------------
Chase Manhattan Corp.:
5.36%, 1/13/95 6,000,000 5,989,280
5.40%, 1/17/95 5,000,000 4,988,000
-----------------------------------------------------------------------------------------
CoreStates Capital Corp., 6.17%, 2/7/95 5,000,000 4,968,293
-----------------------------------------------------------------------------------------
Fleet Financial Group, Inc., 6.10%, 1/17/95 10,000,000 9,972,889
------------
30,917,952
- --------------------------------------------------------------------------------------------------------------------------------
Beverages: Alcoholic--1.2% Bass Finance (C.I.), Ltd., guaranteed by
Bass Capital PLC, 5.82%, 2/21/95 11,520,000 11,425,018
- --------------------------------------------------------------------------------------------------------------------------------
Beverages: Soft Drinks--2.7% Coca-Cola Enterprises, Inc., 5.80%, 2/6/95(2) 25,000,000 24,855,000
- --------------------------------------------------------------------------------------------------------------------------------
Broker/Dealers--13.7% Bear Stearns Cos., Inc.:
5.79%, 1/3/95(1) 5,000,000 5,000,000
5.97%, 1/4/95(1) 5,000,000 5,000,000
6.241%, 1/6/95(1) 17,000,000 17,000,000
6.244%, 1/9/95(1) 5,000,000 5,000,000
-----------------------------------------------------------------------------------------
BT Securities Corp., 5.92%, 1/4/95(1) 5,000,000 5,000,000
-----------------------------------------------------------------------------------------
CS First Boston Group, Inc., 5.10%, 3/8/95(2) 5,000,000 4,953,250
-----------------------------------------------------------------------------------------
Goldman Sachs Group L.P.:
5.30%, 1/12/95 5,000,000 4,991,903
6.145%, 1/13/95(1)(2)(3) 5,000,000 5,000,000
6.375%, 3/21/95(1)(2)(3) 5,000,000 5,000,000
-----------------------------------------------------------------------------------------
Lehman Brothers Holdings, Inc.:
5.61%, 1/12/95 3,000,000 3,000,000
6.22%, 1/3/95(1) 35,000,000 35,000,000
-----------------------------------------------------------------------------------------
Morgan Stanley Group, Inc., 5.49%, 1/3/95(1) 32,325,000 32,325,000
------------
127,270,153
- --------------------------------------------------------------------------------------------------------------------------------
Building Materials Group--0.6% Compagnie de Saint-Gobain SA, 5.08%, 3/1/95 5,000,000 4,958,372
- --------------------------------------------------------------------------------------------------------------------------------
Commercial Finance--3.2% CIT Group Holdings, Inc.:
5.20%, 1/19/95 5,000,000 4,987,000
6.15%, 2/6/95 15,000,000 14,907,750
6.309%, 1/11/95(1)(4) 10,000,000 10,000,000
------------
29,894,750
- --------------------------------------------------------------------------------------------------------------------------------
Conglomerates--2.2% ITT Corp., 5.87%, 2/15/95 10,000,000 9,926,625
-----------------------------------------------------------------------------------------
Mitsubishi International Corp.:
5.60%, 2/1/95 5,000,000 4,975,889
5.82%, 2/15/95 3,000,000 2,978,175
-----------------------------------------------------------------------------------------
Pacific Dunlop Holdings, Inc., guaranteed by
Pacific Dunlop Ltd., 6.05%, 2/28/95(2) 2,610,000 2,584,560
------------
20,465,249
- --------------------------------------------------------------------------------------------------------------------------------
Consumer Finance Sears Roebuck Acceptance Corp.:
(Personal Loans)--4.8% 5.10%, 1/23/95 15,000,000 14,953,250
5.83%, 1/31/95 10,000,000 9,951,417
5.83%, 2/8/95 10,000,000 9,938,461
5.90%, 2/6/95 10,000,000 9,941,000
------------
44,784,128
</TABLE>
6 Oppenheimer Money Market Fund, Inc.
<PAGE>
<TABLE>
<CAPTION>
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-----------------------------------------------------------------------------------------
Face Market Value
Amount See Note 1
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Diversified Finance--7.5% Ford Motor Credit Co., 6.13%, 2/6/95 $12,500,000 $ 12,427,500
-----------------------------------------------------------------------------------------
General Electric Capital Corp.:
5.18%, 1/19/95 3,300,000 3,291,453
5.82%, 2/21/95 15,000,000 14,876,325
-----------------------------------------------------------------------------------------
General Motors Acceptance Corp.:
5.125%, 1/25/95 5,333,000 5,314,779
5.92%, 1/30/95 15,000,000 14,926,896
6.20%, 2/9/95 8,000,000 7,946,267
-----------------------------------------------------------------------------------------
ITT Financial Corp., 5.83%, 2/15/95 11,000,000 10,919,837
------------
69,703,057
- --------------------------------------------------------------------------------------------------------------------------------
Electric Companies--3.7% Central & Southwest Corp., 5.98%, 2/8/95 25,000,000 24,842,194
-----------------------------------------------------------------------------------------
Vattenfall Treasury, Inc., guaranteed by
Vattenfall AB, 5.80%, 1/30/95 10,000,000 9,953,278
------------
34,795,472
- --------------------------------------------------------------------------------------------------------------------------------
Factoring--1.9% CSW Credit, Inc.:
5.70%, 1/9/95 11,000,000 10,986,067
6.17%, 3/2/95 6,715,000 6,645,947
------------
17,632,014
- --------------------------------------------------------------------------------------------------------------------------------
Financial Services: Countrywide Funding Corp.:
Miscellaneous--4.3% 6.20%, 1/3/95 25,000,000 24,991,389
6.30%, 1/4/95 14,750,000 14,742,256
------------
39,733,645
- --------------------------------------------------------------------------------------------------------------------------------
Healthcare: Miscellaneous--1.1% Sherwood Medical Co., guaranteed by
American Home Products, 5.95%, 2/21/95(2) 10,000,000 9,915,708
- --------------------------------------------------------------------------------------------------------------------------------
Insurance--6.7% Internationale Nederlanden Verzekeringen, NV,
guaranteeing commercial paper of:
Internationale Nederlanden U.S.
Insurance Holdings, Inc., 5.55%, 1/19/95 5,300,000 5,285,293
Internationale Nederlanden U.S.
Insurance Holdings, Inc., 6%, 1/30/95 12,400,000 12,340,066
Internationale Nederlanden U.S.
Insurance Holdings, Inc., 6.10%, 2/7/95 7,500,000 7,452,979
-----------------------------------------------------------------------------------------
Sun Life Insurance Co., 6.275%, 1/4/95(1)(4) 30,000,000 30,000,000
-----------------------------------------------------------------------------------------
TransAmerica Life Insurance and Annuity Co.,
5.79%, 1/3/95(1)(2)(4) 7,000,000 7,000,000
------------
62,078,338
- --------------------------------------------------------------------------------------------------------------------------------
Lease Financing--9.4% International Lease Finance Corp.:
5.75%, 2/8/95 5,000,000 4,969,653
5.80%, 2/14/95 10,000,000 9,929,111
5.82%, 2/21/95 5,000,000 4,958,775
5.85%, 2/24/95 16,000,000 15,859,600
5.98%, 2/2/95 5,000,000 4,973,422
6%, 2/3/95 5,000,000 4,972,500
-----------------------------------------------------------------------------------------
Sanwa Business Credit Corp.:
5.90%, 1/30/95 21,850,000 21,742,632
6.14%, 2/10/95 10,000,000 9,931,778
6.18%, 2/8/95 10,000,000 9,934,766
------------
87,272,237
</TABLE>
7 Oppenheimer Money Market Fund, Inc.
<PAGE>
<TABLE>
<CAPTION>
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Statement of Investments (Continued)
-----------------------------------------------------------------------------------------
Face Market Value
Amount See Note 1
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Lubricants and Fuels--0.4% Burmah Castrol Finance PLC, guaranteed by Burmah
Castrol PLC, 6.25%, 2/21/95(2) $4,000,000 $ 3,964,583
- --------------------------------------------------------------------------------------------------------------------------------
Oil: Integrated International--1.0% Texaco, Inc., 6%, 2/3/95 9,000,000 8,950,500
- --------------------------------------------------------------------------------------------------------------------------------
Retail Stores: Department, St. Michael Finance Ltd., guaranteed by
General and Specialty--0.6% Marks & Spencer PLC, 6.15%, 2/7/95 5,000,000 4,968,396
- --------------------------------------------------------------------------------------------------------------------------------
Technology--1.9% Electronic Data Systems Corp.:
5.95%, 2/15/95 11,000,000 10,919,312
6.15%, 2/9/95 6,625,000 6,580,861
------------
17,500,173
- --------------------------------------------------------------------------------------------------------------------------------
Telecommunications--1.9% NYNEX Corp.:
6.12%, 2/16/95 5,000,000 4,960,900
6.20%, 2/17/95 7,000,000 6,943,339
6.25%, 1/31/95 6,000,000 5,968,750
------------
17,872,989
- --------------------------------------------------------------------------------------------------------------------------------
Tobacco--0.5% American Brands, Inc., 5.52%, 1/18/95 5,000,000 4,986,967
------------
Total Short-Term Notes (Cost $736,391,080) 736,391,080
================================================================================================================================
U.S. Government Obligations--7.4%
- --------------------------------------------------------------------------------------------------------------------------------
Export-Import Bank, 6.90%, 1/10/95(1)(2) 1,715,868 1,728,608
-----------------------------------------------------------------------------------------
Small Business Administration,
6.50%--10.125%, 1/1/95(4) 64,196,305 67,438,393
------------
Total U.S. Government Obligations (Cost $69,167,001) 69,167,001
- --------------------------------------------------------------------------------------------------------------------------------
Total Investments, at Value
(Cost $925,392,167) 99.6% 925,392,167
- --------------------------------------------------------------------------------------------------------------------------------
Other Assets Net of Liabilities 0.4 3,560,426
---------- ------------
Net Assets 100.0% $928,952,593
========== ============
1. Variable rate security. The interest rate, which is based on specific, or an index of,
current market interest rates, is subject to change periodically and is the effective rate
on December 31, 1994.
2. Security purchased in private placement transaction, without registration under the
Securities Act of 1933 (the Act). The securities are carried at amortized cost and amount to
$87,853,392, or 9% of the Fund's net assets.
3. 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 amounted to $14,999,490, or 2% of the Fund's net assets, at
December 31, 1994. The Fund may not invest more than 10% of its net assets (determined at
the time of purchase) in illiquid securities.
4. Floating or variable rate obligation maturing in more than one year. The interest rate,
which is based on specific, or an index of, current market interest rates, is subject to
change periodically and is the effective rate on December 31, 1994. This instrument may also
have a demand feature which allows the recovery of principal at any time, or at specified
intervals not exceeding one year, on up to 30 days notice. Maturity date shown represents
effective maturity based on variable rate and, if applicable, demand feature.
See accompanying Notes to Financial Statements.
</TABLE>
8 Oppenheimer Money Market Fund, Inc.
<PAGE>
<TABLE>
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Statement of Assets and Liabilities December 31, 1994
---------------------------------------------------------------------------------------------
===================================================================================================================================
<S> <C> <C>
Assets Investments, at value (cost $925,392,167)--see accompanying statement $925,392,167
---------------------------------------------------------------------------------------------
Cash 4,847,046
---------------------------------------------------------------------------------------------
Receivables:
Shares of capital stock sold 19,590,639
Interest and principal paydowns 3,010,965
---------------------------------------------------------------------------------------------
Other 171,938
------------
Total assets 953,012,755
===================================================================================================================================
Liabilities Payables and other liabilities:
Shares of capital stock redeemed 23,550,218
Other 509,944
------------
Total liabilities 24,060,162
===================================================================================================================================
Net Assets $928,952,593
============
===================================================================================================================================
Composition of Net Assets Par value of shares of capital stock 92,900,362
---------------------------------------------------------------------------------------------
Additional paid-in capital 836,103,260
---------------------------------------------------------------------------------------------
Accumulated net realized gain (loss) from investment transactions (51,029)
------------
Net assets--applicable to 929,003,622 shares of capital stock outstanding $928,952,593
============
===================================================================================================================================
Net Asset Value, Redemption Price and Offering Price Per Share $1.00
See accompanying Notes to Financial Statements.
</TABLE>
9 Oppenheimer Money Market Fund, Inc.
<PAGE>
<TABLE>
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Statement of Operations For the Year Ended December 31, 1994
---------------------------------------------------------------------------------------------
===================================================================================================================================
<S> <C> <C>
Investment Income Interest $ 37,019,199
===================================================================================================================================
Expenses Management fees--Note 3 3,540,849
---------------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees--Note 3 1,988,269
---------------------------------------------------------------------------------------------
Shareholder reports 517,912
---------------------------------------------------------------------------------------------
Custodian fees and expenses 99,263
---------------------------------------------------------------------------------------------
Directors' fees and expenses 73,036
---------------------------------------------------------------------------------------------
Legal and auditing fees 39,016
---------------------------------------------------------------------------------------------
Registration and filing fees 75,709
---------------------------------------------------------------------------------------------
Other 241,545
------------
Total expenses 6,575,599
===================================================================================================================================
Net Investment Income (Loss) 30,443,600
===================================================================================================================================
Net Realized Gain (Loss) on Investments (51,539)
===================================================================================================================================
Net Increase (Decrease) in Net Assets Resulting From Operations $ 30,392,061
============
</TABLE>
<TABLE>
<CAPTION>
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Statements of Changes in Net Assets
---------------------------------------------------------------------------------------------
Year Ended December 31,
1994 1993
===================================================================================================================================
<S> <C> <C> <C>
Operations Net investment income (loss) $ 30,443,600 $ 17,321,066
---------------------------------------------------------------------------------------------
Net realized gain (loss) on investments (51,539) 211,020
------------ ------------
Net increase (decrease) in net assets resulting from operations 30,392,061 17,532,086
===================================================================================================================================
Dividends and Distributions
To Shareholders (30,443,600) (17,675,610)
===================================================================================================================================
Capital Stock Net increase (decrease) in net assets resulting from
Transactions capital stock transactions--Note 2 317,726,707 (80,347,909)
===================================================================================================================================
Net Assets Total increase (decrease) 317,675,168 (80,491,433)
---------------------------------------------------------------------------------------------
Beginning of period 611,277,425 691,768,858
------------ ------------
End of period $928,952,593 $611,277,425
============ ============
See accompanying Notes to Financial Statements.
</TABLE>
10 Oppenheimer Money Market Fund, Inc.
<PAGE>
<TABLE>
<CAPTION>
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Financial Highlights
---------------------------------------------------------------------------------------
Year Ended December 31,
1994 1993 1992 1991 1990 1989 1988 1987 1986 1985
==============================================================================================================================
<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 .04 .03 .03 .06 .08 .08 .07 .06 .06 .07
- ------------------------------------------------------------------------------------------------------------------------------
Dividends and distributions
to shareholders (.04) (.03) (.03) (.06) (.08) (.08) (.07) (.06) (.06) (.07)
- ------------------------------------------------------------------------------------------------------------------------------
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) $929 $611 $692 $899 $1,082 $940 $794 $718 $744 $738
- ------------------------------------------------------------------------------------------------------------------------------
Average net assets (in millions) $804 $653 $811 $1,003 $1,033 $873 $713 $620 $752 $1,026
- ------------------------------------------------------------------------------------------------------------------------------
Number of shares outstanding
at end of year (in millions) 929 611 692 899 1,082 940 794 718 744 738
- ------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income 3.79% 2.65% 3.42% 5.66% 7.66% 8.55% 6.98% 6.04% 6.12% 7.56%
Expenses .82% .87% .88% .77% .74% .78% .80% .86% .77% .77%
See accompanying Notes to Financial Statements.
</TABLE>
11 Oppenheimer Money Market Fund, Inc.
<PAGE>
<TABLE>
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Notes to Financial Statements
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===================================================================================================================================
<S> <C>
1. Significant Oppenheimer Money Market Fund, Inc. (the Fund) is registered under the Investment Company
Accounting Policies 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. The market
value of the underlying securities is required to be at least 102% of the resale price at
the time of purchase. 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.
At December 31, 1994, the Fund had available for federal income tax purposes an unused
capital loss carryover of approximately $41,000.
-------------------------------------------------------------------------------------------
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, 1994, a provision
of $10,191 was made for the Fund's projected benefit obligations, resulting in an
accumulated liability of $127,932 at December 31, 1994. No payments have been made under
the plan.
-------------------------------------------------------------------------------------------
Distributions to Shareholders. The Fund intends to declare dividends from net investment
income each day the New York Stock Exchange is open for business 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:
<CAPTION>
Year Ended December 31, 1994 Year Ended December 31, 1993
-------------------------------- ----------------------------------
Shares Amount Shares Amount
-------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Sold 1,884,595,724 $ 1,884,595,724 1,042,487,698 $ 1,042,487,698
Dividends and
distributions
reinvested 28,594,376 28,594,376 16,858,588 16,858,588
Redeemed (1,595,463,393) (1,595,463,393) (1,139,694,195) (1,139,694,195)
------------- --------------- ------------- ---------------
Net increase
(decrease) 317,726,707 $ 317,726,707 (80,347,909) $ (80,347,909)
============= =============== ============= ===============
===================================================================================================================================
3. Management Fees Management fees paid to the Manager were in accordance with the investment advisory
And Other Transactions agreement with the Fund which provides for an annual fee of .45% on the first $500 million
With Affiliates 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.
</TABLE>
12 Oppenheimer Money Market Fund, Inc.
<PAGE>
<TABLE>
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Independent Auditors' Report
-------------------------------------------------------------------------------------------
===================================================================================================================================
<S> <C>
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, 1994, 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. Our procedures included confirmation of
securities owned as of December 31, 1994, 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, 1994, 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 LLP
Denver, Colorado
January 23, 1995
</TABLE>
13 Oppenheimer Money Market Fund, Inc.
<PAGE>
<TABLE>
-------------------------------------------------------------------------------------------
Federal Income Tax Information (Unaudited)
-------------------------------------------------------------------------------------------
===================================================================================================================================
<S> <C>
In early 1995, shareholders will receive information regarding all dividends and
distributions paid to them by the Fund during calendar year 1994. 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, 1994
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.
</TABLE>
14 Oppenheimer Money Market Fund, Inc.
<PAGE>
<TABLE>
-------------------------------------------------------------------------------------------
Oppenheimer Money Market Fund, Inc.
-------------------------------------------------------------------------------------------
===================================================================================================================================
<S> <C>
Officers and Directors Leon Levy, Chairman of the Board of Directors
Leo Cherne, 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
Robert J. Bishop, Assistant Treasurer
Scott Farrar, Assistant Treasurer
Andrew J. Donohue, Secretary
Robert G. Zack, Assistant Secretary
===================================================================================================================================
Investment Advisor Oppenheimer Management Corporation
===================================================================================================================================
Distributor Oppenheimer Funds Distributor, Inc.
===================================================================================================================================
Transfer and Shareholder Oppenheimer Shareholder Services
Servicing Agent
===================================================================================================================================
Custodian of Citibank, N.A.
Portfolio Securities
===================================================================================================================================
Independent Auditors KPMG Peat Marwick LLP
===================================================================================================================================
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>
15 Oppenheimer Money Market Fund, Inc.
<PAGE>
Information
"How may I help you?"
As an OppenheimerFunds shareholder, some special privileges are available to
you. Whether it's automatic investment plans, informative newsletters and
hotlines, or ready account access, you can benefit from services designed to
make investing simple.
And when you need help, our Customer Service Representatives are only a
toll-free phone call away. They can provide information about your account and
handle administrative requests. You can reach them at our General Information
number.
When you want to make a transaction, you can do it easily by calling
our toll-free Telephone Transactions number. And, by enrolling in AccountLink, a
convenient service that "links" your OppenheimerFunds accounts and your bank
checking or savings account, you can use the Telephone Transactions number to
make investments.
For added convenience, you can get automated information with
OppenheimerFunds PhoneLink service, available 24 hours a day, 7 days a week.
PhoneLink gives you access to a variety of fund, account, and market
information. It also gives you the ability to make transactions using your
touch-tone phone. Of course, you can always speak with a Customer Service
Representative during business hours.
You can count on us whenever you need assistance. That's why the
International Customer Service Association, an independent, non-profit
organization made up of over 3,200 customer service management professionals
from around the country, honored the OppenheimerFunds' transfer agent,
Oppenheimer Shareholder Services, with their Award of Excellence in 1993.
So call us today--we're here to help.
Jennifer Leonard, Customer Service Representative
Oppenheimer Shareholder Services
General Information
Monday-Friday 8:30 a.m.-8 p.m. ET
Saturday 10 a.m.-2 p.m. ET
1-800-525-7048
Telephone Transactions
Monday-Friday 8:30 a.m.-8 p.m. ET
1-800-852-8457
PhoneLink
24 hours a day, automated information and transactions
1-800-533-3310
Telecommunications Device for the Deaf (TDD)
Monday-Friday 8:30 a.m.-8 p.m. ET
1-800-843-4461
OppenheimerFunds
Information Hotline
24 hours a day, timely and insightful messages on the
economy and issues that affect your investments
1-800-835-3104
RA200.001.0295
[logo]OppenheimerFunds
Oppenheimer Funds Distributor, Inc.
P.O. Box 5270
Denver, CO 80217-5270
Bulk Rate
U.S. Postage
PAID
Permit No. 314
Farmingdale, NY
