[FRONT COVER]
Oppenheimer Money Market Fund, Inc.
Annual Report July 31, 1996
[Picture of BarBQ]
"I want
to know my
money will
be there
when
I need it."
[Oppenheimer Logo]
<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, Inc. 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 7/31/96 was 4.73% with compounding
and 4.62% without compounding.(2)
Compounded annualized yield for the 12 months ended 7/31/96 was 4.91%.
The corresponding yield without compounding was 4.80%.(3)
Outlook
"Unless we begin to see clear evidence of a slowdown in the economy relative to
last year, we will remain fairly short in our average maturity. Given this
outlook for the market, we expect to continue to provide shareholders with a
competitive income stream as well as safety of principal."
Carol Wolf, Portfolio Manager
July 31, 1996
Past performance does not guarantee future results.
1. An investment in the Fund is neither insured nor guaranteed by the U.S.
government, and there is no assurance that the Fund will maintain a stable $1.00
share price in the future.
2. Compounded yields assume reinvestment of dividends.
3. As of 6/30/96, the Fund's seven-day annualized yields were 4.74% with
compounding and 4.63% without compounding. Compounded annualized yield for the
12 months ended 6/30/96 was 4.96%. The corresponding yield without compounding
was 4.85%.
2 Oppenheimer Money Market Fund, Inc.
<PAGE>
[Picture of Bridget A. Macaskill]
[Caption] Bridget A. Macaskill
President
Oppenheimer
Money Market Fund, Inc.
Dear Shareholder,
Money market funds have been steady performers during the first half of 1996 and
we expect the same--or better--for the rest of the year.
Money market funds are generally pegged to short-term interest rates,
which are largely determined by the Federal Reserve Board. Unlike long-term
interest rates, short-term rates have stayed relatively steady during 1996. As a
result, money market fund yields have also remained steady during the period.
During the first half of 1996, the Federal Reserve cut interest rates
once--by 0.25% to 5.25%--in order to stimulate the economy. At the time, it
appeared as if the economy was slowing to the point where a recession was a real
possibility. Growth in the fourth quarter of 1995 was almost nonexistent, and
retailers had a poor Christmas season. As a result, interest rates--and
subsequently money market yields--fell, due to investors' expectations that the
Fed would lower rates further.
Suddenly, however, investor perception of the economy changed. An
employment report, issued in February, indicated that there had been a
substantial increase in nonagricultural jobs--the largest increase in 12 years.
Although that employment report was later revised downward, investor sentiment
had already been significantly altered.
Indeed, first and second quarter economic growth turned out to be more
robust than expected. As a result, speculation regarding another rate cut by the
Federal Reserve Board has ended for the time being. There has even been talk
that the Fed may have to raise interest rates before the end of the year to slow
down the economy and stave off inflation.
Higher interest rates--a negative for stocks and bonds--are a plus for
money market funds, particularly if inflation truly stays low. That's because
money market fund assets tend to be invested in high quality securities such as
Treasury bills and commercial paper issued by blue chip corporations. These
securities typically mature anywhere from a few days to one year. And, because
the average maturity of a money market fund is very short, money market funds
can quickly reinvest in higher yielding money market instruments when interest
rates rise.
Currently, money market fund yields have stabilized in the 4-5% area,
while inflation continues to advance at 2-3%. Therefore, money market funds
offer investors a high degree of liquidity, preservation of capital and a return
in excess of inflation.
Your portfolio managers discuss the outlook for your Fund in light of
these broad issues on the following pages. Thank you for your confidence in
OppenheimerFunds. We look forward to helping you reach your investment goals in
the future.
/s/ Bridget A. Macaskill
Bridget A. Macaskill
August 21, 1996
3 Oppenheimer Money Market Fund, Inc.
<PAGE>
Carol Wolf
Portfolio Manager
Q+A
An interview with your Fund's managers.
How has the Fund performed over the past year?
In what was a very difficult fixed-income market, the Fund performed well. By
positioning our investments in securities offering competitive yields, we
successfully provided shareholders with current income while maintaining a
constant share price.
What investments have had a positive effect on the portfolio?
The Fund's objective--to preserve capital while capturing as high a yield as
possible--means the portfolio is invested in low risk, short-term securities
such as commercial paper, letters of credit and floating rate securities.
However, within these areas, there are actions we can take to increase the
portfolio's performance as the market changes. For example, as interest rates
began to rise early this year, we began to invest in shorter-maturity
securities. These must be replaced by new issues more frequently, so as rates
have risen, we have been able to replace our maturing holdings with new
securities offering higher yields. This positioning helped us maintain a
competitive yield during the period.(1)
Were any factors working against the Fund?
No. The Fund successfully met its objectives over the period largely because we
anticipated higher interest rates and thus positioned our investments in
securities that offered competitive yields and relative price stability.
What areas of the market are you currently targeting?
As always, we continue to focus on offering competitive yields, while watching
interest rates carefully. At this time, we believe reports of stronger-
than-expected economic growth are making further interest rate cuts this year
unlikely. We're currently maintaining our focus on shorter securities and
watching carefully for ways to increase yield. This should be accomplished
through purchase of floating rate securities, new commercial paper programs and
structuring the maturities of our investments.
What is your outlook for the Fund?
Because the securities we must invest in have short maturities, the yields they
pay are directly related to prevailing interest rates. The fact that rates are
higher now than at the beginning of the year should continue to work in our
favor over the near term. Still, unless we begin to see clear evidence of a
slowdown in the economy relative to last year, we will remain fairly short in
our average maturity. Given this outlook for the market, we expect to continue
to provide shareholders with a competitive income stream, as well as safety of
principal.[Solid Box]
1. The Fund's portfolio is subject to change.
4 Oppenheimer Money Market Fund, Inc.
<PAGE>
Statement of Investments July 31, 1996
<TABLE>
<CAPTION>
Face Value
Amount See Note 1
====================================================================================================================================
<S> <C> <C>
Certificates of Deposit--1.8%
- ------------------------------------------------------------------------------------------------------------------------------------
FCC National Bank, 5.47%, 10/7/96 $ 5,000,000 $ 5,000,000
-------------------------------------------------------------------------------------------------------------
First National Bank of Boston:
5.38%, 8/1/96 5,000,000 5,000,000
5.708%, 10/30/96(1) 5,000,000 5,000,000
-------------------------------------------------------------------------------------------------------------
Huntington National Bank, 5.09%, 8/21/96 5,000,000 5,000,000
-----------
Total Certificates of Deposit (Cost $20,000,000)
20,000,000
====================================================================================================================================
Direct Bank Obligations--4.6%
- ------------------------------------------------------------------------------------------------------------------------------------
ABN Amro Bank North America Finance, Inc., 4.93%, 8/5/96 5,000,000 4,997,261
-------------------------------------------------------------------------------------------------------------
Dresdner U.S. Finance, Inc., 4.97%, 8/26/96 10,000,000 9,965,521
-------------------------------------------------------------------------------------------------------------
FCC National Bank, 5.36%, 12/27/96(1) 5,000,000 4,998,893
-------------------------------------------------------------------------------------------------------------
National Westminster Bank of Canada:
4.94%, 8/15/96 7,000,000 6,986,566
5.48%, 10/15/96 4,000,000 3,954,333
-------------------------------------------------------------------------------------------------------------
Societe Generale North America, Inc.:
4.89%, 8/8/96 10,000,000 9,990,492
4.95%, 8/22/96 10,000,000 9,971,154
----------
Total Direct Bank Obligations (Cost $50,864,220) 50,864,220
====================================================================================================================================
Letters of Credit--3.6%
- ------------------------------------------------------------------------------------------------------------------------------------
Barclays Bank PLC, guaranteeing commercial paper of:
Banco Bradesco S.A.-Grand Cayman Branch, 5.45%, 10/15/96 5,000,000 4,943,229
Petroleo Brasileiro, S.A.-Petrobras, 5.32%, 8/19/96 4,700,000 4,687,498
-------------------------------------------------------------------------------------------------------------
Credit Suisse, guaranteeing commercial paper of:
Daewoo International Corp., 5.05%, 8/29/96 5,000,000 4,980,361
Cemex, S.A. de C.V.-Series A, 5.35%, 8/20/96 15,000,000 14,957,646
-------------------------------------------------------------------------------------------------------------
Societe Generale, guaranteeing commercial
paper of Nacionale Financiera, SNC:
Series A, 5.30%, 8/28/96 5,000,000 4,980,125
Series B, 5.44%, 9/3/96 5,000,000 4,975,067
-----------
Total Letters of Credit (Cost $39,523,926) 39,523,926
====================================================================================================================================
Short-Term Notes--88.6%
- ------------------------------------------------------------------------------------------------------------------------------------
Banks--1.3% Chemical Banking Corp., 4.93%, 8/15/96 10,000,000 9,980,828
-------------------------------------------------------------------------------------------------------------
CoreStates Capital Corp., 5.44%, 10/25/96(1) 5,000,000 5,000,000
-----------
14,980,828
- ------------------------------------------------------------------------------------------------------------------------------------
Beverages--3.6% Coca-Cola Enterprises, Inc.:
5.34%, 8/8/96(2) 15,000,000 14,984,425
5.45%, 9/4/96(2) 5,000,000 4,974,264
5.43%, 8/26/96(2) 5,250,000 5,230,203
5.43%, 9/9/96(2) 10,000,000 9,941,175
5.49%, 10/9/96(2) 5,000,000 4,947,387
-----------
40,077,454
- ------------------------------------------------------------------------------------------------------------------------------------
Broker/Dealers--7.3% Dean Witter, Discover & Co.:
5.70%, 11/15/96(1) 10,000,000 10,005,043
5.77%, 1/15/97(1) 8,000,000 8,008,623
5 Oppenheimer Money Market Fund, Inc.
<PAGE>
Statement of Investments (Continued)
Face Value
Amount See Note 1
- ------------------------------------------------------------------------------------------------------------------------------------
Broker/Dealers Merrill Lynch & Co., Inc.:
(continued) 4.95%, 8/28/96 $ 5,000,000 $ 4,981,437
5.45%, 9/19/96(1) 5,000,000 5,000,000
5.45%, 9/9/96 5,000,000 4,970,479
5.48%, 10/10/96 5,000,000 4,946,722
-------------------------------------------------------------------------------------------------------------
Morgan Stanley Group, Inc.:
5.27%, 9/30/96(1) 35,000,000 35,000,000
5.71%, 9/16/96(1) 7,000,000 7,000,000
-----------
79,912,304
- ------------------------------------------------------------------------------------------------------------------------------------
Building Materials--0.5%
Compagnie de Saint Gobain, 4.98%, 8/29/96 5,000,000 4,980,653
- ------------------------------------------------------------------------------------------------------------------------------------
Commercial Finance--14.6%
CIT Group Holdings, Inc.:
5.30%, 11/18/96(1) 5,000,000 4,998,519
5.32%, 8/2/96 10,000,000 9,998,522
5.35%, 5/1/97(1) 5,000,000 4,995,727
5.619%, 8/14/96(1) 10,000,000 10,000,000
-------------------------------------------------------------------------------------------------------------
Countrywide Home Loan:
5.32%, 8/12/96 5,000,000 4,991,872
5.38%, 9/6/96 19,200,000 19,096,704
5.45%, 8/5/96 10,000,000 9,993,944
5.41%, 9/18/96 10,000,000 9,927,867
-------------------------------------------------------------------------------------------------------------
FINOVA Capital Corp.:
5.43%, 8/23/96 5,000,000 4,983,408
5.45%, 9/19/96 10,000,000 9,925,819
5.50%, 8/1/96 5,000,000 5,000,000
5.50%, 9/16/96 4,000,000 3,971,889
5.50%, 9/9/96 5,000,000 4,970,208
5.53%, 10/4/96 5,000,000 4,950,844
5.49%, 9/18/96 8,000,000 7,941,440
-------------------------------------------------------------------------------------------------------------
Heller Financial, Inc.:
5.46%, 9/9/96 5,000,000 4,970,425
5.48%, 8/15/96 5,000,000 4,989,344
5.49%, 10/2/96 5,000,000 4,952,725
5.50%, 10/7/96(1) 5,000,000 5,000,000
5.51%, 8/28/96(1) 10,000,000 10,000,000
5.53%, 10/4/96(1) 5,000,000 4,999,486
5.55%, 6/2/97(1) 5,000,000 4,998,699
5.66%, 1/15/97(1) 5,000,000 5,003,092
-----------
160,660,534
- ------------------------------------------------------------------------------------------------------------------------------------
Computer Software--2.3% First Data Corp.:
5.38%, 9/3/96 5,000,000 4,975,342
5.45%, 9/10/96 7,000,000 6,957,611
5.47%, 9/20/96 14,000,000 13,893,639
-----------
25,826,592
- ------------------------------------------------------------------------------------------------------------------------------------
Consumer Finance--1.8%
American Express Credit Corp., 4.92%, 8/23/96 10,000,000 9,969,933
-------------------------------------------------------------------------------------------------------------
Sears Roebuck Acceptance Corp., 5.40%, 9/17/96 10,000,000 9,929,500
-----------
19,899,433
6 Oppenheimer Money Market Fund, Inc.
<PAGE>
Face Value
Amount See Note 1
- ------------------------------------------------------------------------------------------------------------------------------------
Diversified Financial--8.6%
Associates Corp. of North America, 5.70%, 8/1/96 $ 36,360,000 $ 36,360,000
-------------------------------------------------------------------------------------------------------------
Ford Motor Credit Co., 5.35%, 10/3/96 5,000,000 4,953,187
-------------------------------------------------------------------------------------------------------------
General Electric Capital Corp.:
4.94%, 8/19/96 5,000,000 4,987,650
4.94%, 8/21/96 10,000,000 9,972,556
5.36%, 10/4/96 5,000,000 4,952,356
-------------------------------------------------------------------------------------------------------------
General Motors Acceptance Corp.:
5.39%, 10/2/96 5,000,000 4,953,586
5.42%, 11/8/96 6,500,000 6,403,118
5.76%, 8/19/96(1) 5,000,000 4,999,986
-------------------------------------------------------------------------------------------------------------
Household Finance Corp.:
5.28%, 8/19/96 5,000,000 4,986,800
5.39%, 8/7/96 7,500,000 7,500,000
5.39%, 9/27/96(1) 5,000,000 4,999,908
-----------
95,069,147
- ------------------------------------------------------------------------------------------------------------------------------------
Drug Wholesalers--0.7%
Sandoz Corp., 5.38%, 9/17/96(2) 8,000,000 7,943,809
- ------------------------------------------------------------------------------------------------------------------------------------
Electric Utilities--0.5%
Vattenfall Treasury, Inc., 5.35%, 10/16/96 5,000,000 4,943,528
- ------------------------------------------------------------------------------------------------------------------------------------
Electronics--2.7% ITT Industries, Inc.:
5.42%, 8/14/96(2) 5,000,000 4,990,214
5.45%, 9/20/96(2) 5,000,000 4,962,153
5.47%, 8/19/96(2) 9,300,000 9,274,565
-------------------------------------------------------------------------------------------------------------
Mitsubishi Electric Finance America, Inc., 5.30%, 8/21/96(2) 10,000,000 9,970,556
-----------
29,197,488
- ------------------------------------------------------------------------------------------------------------------------------------
Energy Services & Union Pacific Resources Group Inc., 5.45%, 9/19/96(2) 15,000,000 14,888,729
Producers--1.4%
- ------------------------------------------------------------------------------------------------------------------------------------
Entertainment/Film--0.5%
Walt Disney Co., 5.26%, 10/23/96 5,000,000 4,939,364
- ------------------------------------------------------------------------------------------------------------------------------------
Environmental--1.7% WMX Technologies, Inc.:
4.91%, 11/8/96(2) 5,600,000 5,524,386
5.10%, 8/16/96(2) 5,000,000 4,989,375
5.32%, 9/10/96(2) 8,000,000 7,952,711
-----------
18,466,472
- ------------------------------------------------------------------------------------------------------------------------------------
Healthcare/Supplies & Sherwood Medical Co., guaranteed by
Services--0.5% American Home Products, 5.41%, 8/21/96(2) 6,000,000 5,981,967
- ------------------------------------------------------------------------------------------------------------------------------------
Insurance--6.1% General American Life, 5.66%, 8/8/96(1)(2) 20,000,000 20,000,000
-------------------------------------------------------------------------------------------------------------
Jackson National Life Insurance Co.:
5.49%, 8/1/96(1)(2) 5,000,000 5,000,000
5.52%, 8/1/96(1)(2) 30,000,000 30,000,000
-------------------------------------------------------------------------------------------------------------
TransAmerica Life Insurance & Annuity Co.:
5.38%, 9/16/96 5,000,000 4,965,628
5.606%, 8/1/96(1)(2) 7,000,000 7,000,000
-----------
66,965,628
- ------------------------------------------------------------------------------------------------------------------------------------
Leasing & Factoring--4.0%
CSW Credit, Inc.:
5.37%, 9/16/96 16,200,000 16,088,841
5.42%, 8/28/96 4,800,000 4,780,488
5.42%, 8/7/96 12,800,000 12,788,437
-------------------------------------------------------------------------------------------------------------
Hertz Corp. (The), 5.33%, 8/19/96 10,000,000 9,973,350
-----------
43,631,116
7 Oppenheimer Money Market Fund, Inc.
<PAGE>
Statement of Investments (Continued)
Face Value
Amount See Note 1
- ------------------------------------------------------------------------------------------------------------------------------------
Manufacturing--2.4% Rexam PLC:
5.35%, 8/21/96(2) $ 5,000,000 $ 4,985,139
5.42%, 8/23/96(2) 11,768,000 11,729,022
5.43%, 9/9/96(2) 9,700,000 9,642,940
------------
26,357,101
- ------------------------------------------------------------------------------------------------------------------------------------
Metals/Mining--1.2% English China Clays PLC:
5.40%, 8/19/96(2) 1,200,000 1,196,760
5.42%, 9/16/96(2) 7,452,000 7,400,391
5.45%, 9/9/96(2) 5,000,000 4,970,479
------------
13,567,630
- ------------------------------------------------------------------------------------------------------------------------------------
Nondurable Avon Capital Corp.:
Household Goods--0.8% 5.38%, 8/22/96(2) 4,250,000 4,236,662
5.50%, 9/12/96(2) 5,000,000 4,967,917
------------
9,204,579
- ------------------------------------------------------------------------------------------------------------------------------------
Savings & Loans--0.4%
Great Western Bank FSB, 5.35%, 8/21/96 5,000,000 4,985,139
- ------------------------------------------------------------------------------------------------------------------------------------
Special Purpose Financial--18.0%
Asset Securitization Cooperative:
5.33%, 8/21/96(2) 5,000,000 4,985,194
5.35%, 8/20/96(2) 2,000,000 1,994,353
5.42%, 9/16/96(2) 5,000,000 4,965,372
5.47%, 10/7/96(2) 10,000,000 9,898,197
-------------------------------------------------------------------------------------------------------------
Cooperative Association of Tractor Dealers, Inc.:
5.40%, 8/20/96 12,200,000 12,165,230
5.40%, 9/20/96 7,600,000 7,543,000
5.70%, 8/1/96 30,000,000 30,000,000
-------------------------------------------------------------------------------------------------------------
CXC, Inc.:
5.32%, 8/7/96(2) 5,000,000 4,995,567
5.32%, 9/13/96(2) 10,000,000 9,936,456
5.35%, 9/11/96(2) 10,000,000 9,939,069
5.42%, 8/27/96(2) 10,000,000 9,960,856
5.45%, 10/11/96(2) 5,000,000 4,946,257
-------------------------------------------------------------------------------------------------------------
First Deposit Master Trust 1993-3:
5.36%, 8/21/96(2) 5,000,000 4,985,111
5.43%, 10/3/96(2) 10,077,000 9,981,243
-------------------------------------------------------------------------------------------------------------
Fleet Funding Corp., 5.35%, 8/19/96(2) 16,892,000 16,846,814
-------------------------------------------------------------------------------------------------------------
New Center Asset Trust, 5.37%, 9/12/96 10,000,000 9,937,350
-------------------------------------------------------------------------------------------------------------
Sheffield Receivables Corp., 5.40%, 8/7/96(2) 8,185,000 8,177,634
-------------------------------------------------------------------------------------------------------------
Short-Term Card Account Trust 1995-1, Cl. A1, 5.51%, 1/15/97(1)(3) 5,000,000 5,000,000
-------------------------------------------------------------------------------------------------------------
SMM Trust 1995-B, 5.48%, 5/29/97(1)(3) 5,000,000 5,000,000
-------------------------------------------------------------------------------------------------------------
WCP Funding:
5.37%, 8/19/96(2) 10,100,000 10,072,882
5.42%, 9/19/96(2) 12,000,000 11,911,473
5.40%, 9/9/96(2) 5,000,000 4,970,750
-----------
198,212,808
- ------------------------------------------------------------------------------------------------------------------------------------
Specialty Retailing--1.6%
St. Michael Finance Ltd., guaranteed by Marks & Spencer PLC:
5%, 8/29/96 10,000,000 9,961,111
5.29%, 8/13/96 7,707,000 7,693,423
-----------
17,654,534
8 Oppenheimer Money Market Fund, Inc.
<PAGE>
Face Value
Amount See Note 1
- ------------------------------------------------------------------------------------------------------------------------------------
Telecommunications- NYNEX Corp.:
Technology--1.5% 5.40%, 9/23/96 $ 7,000,000 $ 6,944,350
5.42%, 9/3/96 5,000,000 4,975,158
5.48%, 10/4/96 5,000,000 4,951,289
-----------
16,870,797
- -----------------------------------------------------------------------------------------------------------------------------------
Telephone Utilities--4.6%
GTE Corp.:
5.36%, 8/29/96 9,000,000 8,962,480
5.40%, 8/22/96 10,000,000 9,968,500
5.41%, 9/4/96 10,000,000 9,948,906
5.43%, 8/14/96 12,000,000 11,976,470
5.43%, 8/16/96 10,000,000 9,977,375
-----------
50,833,731
-----------
Total Short-Term Notes (Cost $976,051,365) 976,051,365
===================================================================================================================================
U.S. Government Obligations--0.1%
- -----------------------------------------------------------------------------------------------------------------------------------
Export-Import Bank:
6.33%, 8/6/96(1)(3) 419,572 421,168
6.33%, 8/6/96(1)(3) 343,036 344,340
-----------
Total U.S. Government Obligations (Cost $765,508) 765,508
===================================================================================================================================
Foreign Government Obligations--1.8%
- -----------------------------------------------------------------------------------------------------------------------------------
Bayerische Landesbank Girozentrale:
5.10%, 8/23/96 10,000,000 10,000,060
5.67%, 7/29/97(1) 10,000,000 10,000,000
-------------
Total Foreign Government Obligations (Cost $20,000,060) 20,000,060
- -----------------------------------------------------------------------------------------------------------------------------------
Total Investments, at Value 100.5% 1,107,205,079
- -----------------------------------------------------------------------------------------------------------------------------------
Liabilities in Excess of Other Assets (0.5) (5,624,831)
----------- --------------
Net Assets 100.0% $1,101,580,248
=========== ==============
Short-term notes, direct bank obligations and letters of credit 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. Floating or variable rate obligation maturing in more than one year. 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 July 31, 1996. Maturity date shown represents effective maturity based on
variable rate and, if applicable, demand feature.
2. Restricted securities, including those issued in exempt transactions without registration under
the Securities Act of 1933, amounting to $356,252,457, or 32.34% of the Fund's net assets, have been
determined to be liquid pursuant to guidelines adopted by the Board of Directors.
3. Restricted securities which are considered illiquid, by virtue of the absence of a readily
available market or because of legal or contractual restrictions on resale, amount to $10,765,508,
or 0.98% of the Fund's net assets. The Fund may not invest more than 10% of its assets (determined
at the time of purchase) in illiquid securities.
</TABLE>
See accompanying Notes to Financial Statements.
9 Oppenheimer Money Market Fund, Inc.
<PAGE>
Statement of Assets and Liabilities July 31, 1996
<TABLE>
===================================================================================================================================
<S> <C> <C>
Assets Investments, at value--see accompanying statement $1,107,205,079
------------------------------------------------------------------------------------------------------------
Cash 1,279,499
------------------------------------------------------------------------------------------------------------
Receivables:
Shares of capital stock sold 6,009,451
Interest 1,852,801
------------------------------------------------------------------------------------------------------------
Other 105,790
--------------
Total assets 1,116,452,620
===================================================================================================================================
Liabilities Payables and other liabilities:
Shares of capital stock redeemed 13,106,880
Dividends 1,412,661
Directors' fees 237,498
Shareholder reports 92,725
Other 22,608
--------------
Total liabilities 14,872,372
===================================================================================================================================
Net Assets $1,101,580,248
==============
===================================================================================================================================
Composition of Par value of shares of capital stock $ 110,174,648
Net Assets ------------------------------------------------------------------------------------------------------------
Additional paid-in capital 991,571,827
------------------------------------------------------------------------------------------------------------
Accumulated net realized loss on investment transactions (166,227)
--------------
Net assets--applicable to 1,101,746,475 shares of capital stock outstanding $1,101,580,248
==============
===================================================================================================================================
Net Asset Value, Redemption Price and Offering Price Per Share $1.00
</TABLE>
See accompanying Notes to Financial Statements.
10 Oppenheimer Money Market Fund, Inc.
<PAGE>
Statements of Operations
<TABLE>
<CAPTION>
Seven Months Year Ended
Ended July 31, December 31,
1996(1) 1995
==============================================================================================================================
<S> <C> <C> <C>
Investment Income Interest $28,887,262 $52,074,805
==============================================================================================================================
Expenses Management fees--Note 3 2,296,019 3,759,621
-------------------------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees--Note 3 1,441,071 2,965,169
-------------------------------------------------------------------------------------------------------
Shareholder reports 306,123 524,397
-------------------------------------------------------------------------------------------------------
Directors' fees and expenses--Note 1 118,798 86,647
-------------------------------------------------------------------------------------------------------
Registration and filing fees 63,646 124,687
-------------------------------------------------------------------------------------------------------
Custodian fees and expenses 55,124 66,156
-------------------------------------------------------------------------------------------------------
Legal and auditing fees 22,279 57,389
-------------------------------------------------------------------------------------------------------
Insurance expenses 27,542 36,048
-------------------------------------------------------------------------------------------------------
Other 48,499 83,910
----------- -----------
Total expenses 4,379,101 7,704,024
==============================================================================================================================
Net Investment Income 24,508,161 44,370,781
==============================================================================================================================
Net Realized Gain (Loss) on Investments (156,737) 639,389
==============================================================================================================================
Net Increase in Net Assets Resulting From Operations $24,351,424 $45,010,170
=========== ===========
</TABLE>
1. The Fund changed its fiscal year end from December 31 to July 31.
See accompanying Notes to Financial Statements.
11 Oppenheimer Money Market Fund, Inc.
<PAGE>
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
Seven Months
Ended July 31, Year Ended December 31,
1996(1) 1995 1994
===================================================================================================================================
<S> <C> <C> <C>
Operations Net investment income $ 24,508,161 $ 44,370,781 $ 30,443,600
----------------------------------------------------------------------------------------------------------
Net realized gain (loss) (156,737) 639,389 (51,539)
-------------- ------------ --------------
Net increase in net assets resulting
from operations 24,351,424 45,010,170 30,392,061
===================================================================================================================================
Dividends and Distributions to Shareholders (24,508,161) (44,968,631) (30,443,600)
===================================================================================================================================
Capital Stock Net increase (decrease) in net assets resulting
Transactions from capital stock transactions--Note 2 283,809,275 (111,066,422) 317,726,707
===================================================================================================================================
Net Assets Total increase (decrease) 283,652,538 (111,024,883) 317,675,168
----------------------------------------------------------------------------------------------------------
Beginning of period 817,927,710 928,952,593 611,277,425
-------------- ------------ --------------
End of period $1,101,580,248 $817,927,710 $ 928,952,593
============== ============ ==============
</TABLE>
1. The Fund changed its fiscal year end from December 31 to July 31.
See accompanying Notes to Financial Statements.
12 Oppenheimer Money Market Fund, Inc.
<PAGE>
Financial Highlights
<TABLE>
<CAPTION>
Seven Months
Ended July 31, Year Ended December 31,
1996(1) 1995 1994 1993 1992 1991
====================================================================================================================================
<S> <C> <C> <C> <C> <C> <C>
Per Share Operating Data:
Net asset value, beginning of period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
- ------------------------------------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income and net
realized gain (loss) .03 .05 .04 .03 .03 .06
Dividends and distributions
to shareholders (.03) (.05) (.04) (.03) (.03) (.06)
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
====== ===== ===== ===== ===== ======
====================================================================================================================================
Total Return, at Net Asset Value(2) 2.80% 5.40% 3.76% 2.71% 3.47% 5.87%
====================================================================================================================================
Ratios/Supplemental Data:
Net assets, end of period (in millions) $1,102 $ 818 $ 929 $ 611 $ 692 $ 899
- ------------------------------------------------------------------------------------------------------------------------------------
Average net assets (in millions) $ 901 $ 855 $ 804 $ 653 $ 811 $1,003
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income 4.68%(3) 5.19% 3.79% 2.65% 3.42% 5.66%
Expenses 0.84%(3) 0.90% 0.82% 0.87% 0.88% 0.77%
</TABLE>
1. The Fund changed its fiscal year end from December 31 to July 31
2. Assumes a hypothetical initial investment on the business day before the
first day of the fiscal period, with all dividends reinvested in additional
shares on the reinvestment date, and redemption at the net asset value
calculated on the last business day of the fiscal period. Total returns are not
annualized for periods of less than one full year.
3. Annualized.
See accompanying Notes to Financial Statements.
13 Oppenheimer Money Market Fund, Inc.
<PAGE>
Notes to Financial Statements
================================================================================
1. Significant
Accounting Policies
Oppenheimer Money Market Fund, Inc. (the Fund) is registered under the
Investment Company Act of 1940, as amended, as a diversified, open-end
management investment company. On June 6, 1996, the Board of Directors elected
to change the fiscal year end of the Fund from December 31 to July 31.
Accordingly, these financial statements include information for the seven month
period from January 1, 1996 to July 31, 1996. The Fund's investment objective is
to seek the maximum current income that is consistent with stability of
principal by investing in "money market" securities meeting specific credit
quality standards. The Fund's investment advisor is OppenheimerFunds, Inc. (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 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 or excise tax provision is required. At July 31, 1996, the Fund had
available for federal income tax purposes an unused capital loss carryover of
approximately $152,000, which expires in 2004.
- --------------------------------------------------------------------------------
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 seven months
ended July 31, 1996, a provision of $84,550 was made for the Fund's projected
benefit obligations, and payments of $5,460 were made to retired directors,
resulting in an accumulated liability of $223,270 at July 31, 1996.
- --------------------------------------------------------------------------------
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.
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect 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 income and expenses during the reporting
period. Actual results could differ from those estimates.
14 Oppenheimer Money Market Fund, Inc.
<PAGE>
================================================================================
2. Capital Stock
The Fund has authorized 5 billion shares of $.10 par value capital stock.
Transactions in shares of capital stock were as follows:
<TABLE>
<CAPTION>
Seven Months Ended July 31, 1996(1) Year Ended December 31, 1995 Year Ended December 31, 1994
----------------------------------- ---------------------------- ----------------------------
Shares Amount Shares Amount Shares Amount
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Sold 1,437,146,578 $ 1,437,146,578 1,772,666,521 $ 1,772,666,521 1,884,595,724 $ 1,884,595,724
Dividends and
distributions reinvested 21,997,805 21,997,805 42,507,860 42,507,860 28,594,376 28,594,376
Issued in connection
with the acquisition of
Connecticut Mutual
Liquid Account--Note 4 73,705,405 73,705,405 -- -- -- --
Redeemed (1,249,040,513) (1,249,040,513) (1,926,240,803) (1,926,240,803) (1,595,463,393) (1,595,463,393)
-------------- --------------- -------------- --------------- -------------- ---------------
Net increase (decrease) 283,809,275 $ 283,809,275 (111,066,422) $ (111,066,422) 317,726,707 $ 317,726,707
============== =============== ============== =============== ============== ===============
</TABLE>
1. The Fund changed its fiscal year end from December 31 to July 31.
================================================================================
3. Management Fees
And Other Transactions
With Affiliates
Management fees paid to the Manager were in accordance with the investment
advisory agreement with the Fund which provides for a fee of 0.45% on the first
$500 million of average annual net assets with a reduction of 0.025% on each
$500 million thereafter, to 0.375% 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.
OppenheimerFunds Services (OFS), a division of the Manager, is the
transfer and shareholder servicing agent for the Fund, and for other registered
investment companies. OFS's total costs of providing such services are allocated
ratably to these companies.
================================================================================
4. Acquisition of Connecticut
Mutual Liquid Account
On April 26, 1996, the Fund acquired all of the net assets of Connecticut Mutual
Liquid Account, pursuant to an Agreement and Plan of Reorganization approved by
the Connecticut Mutual Liquid Account shareholders on April 24, 1996. The Fund
issued 73,705,405 shares in exchange for the net assets valued at $73,705,405 on
April 26, 1996. The exchange qualified as a tax-free reorganization for federal
income tax purposes.
15 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 July 31, 1996, and the
statements of operations for the seven month period then ended and the year
ended December 31, 1995, the statements of changes in net assets for the seven
month period ended July 31, 1996 and the years ended December 31, 1995 and 1994,
and the financial highlights for the seven month period ended July 31, 1996 and
each of the years in the five year period ended December 31, 1995. 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 July
31, 1996, 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 July 31, 1996, the results
of its operations for the seven month period then ended and the year ended
December 31, 1995, the changes in its net assets for the seven month period
ended July 31, 1996 and the years ended December 31, 1995 and 1994, and the
financial highlights for the seven month period ended July 31, 1996 and each of
the years in the five year period ended December 31, 1995, in conformity with
generally accepted accounting principles.
KPMG Peat Marwick LLP
Denver, Colorado
August 21, 1996
16 Oppenheimer Money Market Fund, Inc.
<PAGE>
Federal Income Tax Information (Unaudited)
================================================================================
In early 1997, shareholders will receive information regarding all dividends and
distributions paid to them by the Fund during calendar year 1996. 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 July
31, 1996 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.
17 Oppenheimer Money Market Fund, Inc.
<PAGE>
Oppenheimer Money Market Fund, Inc.
================================================================================
Officers and Directors Leon Levy, Chairman of the Board of Directors
Donald W. Spiro, Vice Chairman of the
Board of Directors
Bridget A. Macaskill, President
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
Pauline Trigere, Director
Clayton K. Yeutter, Director
Carol E. Wolf, Vice President
George C. Bowen, Treasurer
Robert J. Bishop, Assistant Treasurer
Scott T. Farrar, Assistant Treasurer
Andrew J. Donohue, Secretary
Robert G. Zack, Assistant Secretary
================================================================================
Investment Advisor OppenheimerFunds, Inc.
================================================================================
Distributor OppenheimerFunds Distributor, Inc.
================================================================================
Transfer and Shareholder OppenheimerFunds 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. Shares of Oppenheimer funds are not deposits or obligations of any
bank, are not guaranteed by any bank, and are not insured by the FDIC or any
other agency, and involve investment risks, including possible loss of the
principal amount invested.
18 Oppenheimer Money Market Fund, Inc.
<PAGE>
OppenheimerFunds Family
================================================================================
OppenheimerFunds offers over 50 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 35 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 3 million shareholder accounts and more than $50 billion
under OppenheimerFunds' management and that of our affiliates.
At OppenheimerFunds we don't charge a fee to exchange shares. And you
can exchange shares easily by mail or by telephone.1 For more information on
Oppenheimer funds, 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>
==============================================================================================================
<S> <C> <C>
Stock Funds Global Emerging Growth Fund Growth Fund
Enterprise Fund(2) Global Fund
International Growth Fund Quest Global Value Fund
Discovery Fund Disciplined Value Fund
Quest Small Cap Value Fund Oppenheimer Fund
Gold & Special Minerals Fund Value Stock Fund
Target Fund Quest Value Fund
==============================================================================================================
Stock & Bond Funds Main Street Income & Growth Fund Equity Income Fund
Quest Opportunity Value Fund Disciplined Allocation Fund
Total Return Fund Asset Allocation Fund
Quest Growth & Income Value Fund Strategic Income & Growth Fund
Global Growth & Income Fund Bond Fund for Growth
==============================================================================================================
Bond Funds International Bond Fund Bond Fund
High Yield Fund U.S. Government Trust
Champion Income Fund Limited-Term Government Fund
Strategic Income Fund
==============================================================================================================
Tax-Exempt Funds California Tax-Exempt Fund(3) Insured Tax-Exempt Fund
Florida Tax-Exempt Fund(3) Intermediate Tax-Exempt Fund
New Jersey Tax-Exempt Fund(3)
New York Tax-Exempt Fund(3) Rochester Division
Pennsylvania Tax-Exempt Fund(3) Rochester Fund Municipals
Tax-Free Bond Fund Limited Term New York Municipal Fund
==============================================================================================================
Money Market Funds(4) Money Market Fund Cash Reserves
==============================================================================================================
LifeSpan Growth Fund Income Fund
Balanced Fund
</TABLE>
1. Exchange privileges are subject to change or termination. Shares may be
exchanged only for shares of the same class of eligible funds.
2. Effective 4/1/96, the Fund is closed to new investors.
3. Available only to investors in certain states.
4. An investment in money market funds is neither insured nor guaranteed by the
U.S. government and there can be no assurance that a money market fund will be
able to maintain a stable net asset value of $1.00 per share. Oppenheimer funds
are distributed by OppenheimerFunds Distributor, Inc., Two World Trade Center,
New York, NY 10048-0203.
(C) Copyright 1996 OppenheimerFunds, Inc. All rights reserved.
19 Oppenheimer Money Market Fund, Inc.
<PAGE>
[BACK COVER]
Information
General Information
Monday-Friday 8:30 a.m.-9 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
RA0200.001.0796 September 30, 1996
[Picture of Jennifer Leonard]
[Caption] Jennifer Leonard, Customer Service Representative
OppenheimerFunds Services
"How may I help you?"
As an Oppenheimer fund shareholder, you have some special privileges. 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 Oppenheimer funds 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. Of course, you can always speak with a Customer Service
Representative during the General Information hours shown at the left.
You can count on us whenever you need assistance. That's why the
International Customer Service Association, an independent, nonprofit
organization made up of over 3,200 customer service management professionals
from around the country, honored the Oppenheimer funds' transfer agent,
OppenheimerFunds Services, with their Award of Excellence in 1993.
So call us today--we're here to help.
- --------------------------------------------------------------------------------
[Oppenheimer Logo]
OppenheimerFunds Distributor, Inc.
P.O. Box 5270
Denver, CO 80217-5270
- --------------
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