Annual Report July 31, 1997
OPPENHEIMER
Money Market
Fund, Inc.
[LOGO] Oppenheimer Funds(TM)
THE RIGHT WAY TO INVEST
<PAGE>
Contents
3 President's Letter
4 An Interview with the Fund's Managers
7 Statement of Investments
12 Statement of Assets & Liabilities
13 Statement of Operations
14 Statements of Changes in Net Assets
15 Financial Highlights
16 Notes to Financial Statements
19 Independent Auditors' Report
20 Federal Income Tax Information
21 Officers & Directors
24 Information & Services
Report highlights
o Oppenheimer Money Market Fund, Inc. is for investors seeking maximum
current income consistent with stability of principal.
o "Now, rather than chasing the market, the Fund has settled into a more
comfortable pace." -- Carol Wolf, Portfolio Manager
7-day Annualized Yield(2)
For the Period Ended 7/31/97
With Without
Compounding(1) Compounding
4.99% 4.87%
12-month Annualized Yield(2)
For the Period Ended 7/31/97
With Without
Compounding(1) Compounding
4.84% 4.73%
Past performance does not guarantee future results. Yields will fluctuate.
1. Compounded yields assume reinvestment of dividends.
2. As of 6/30/97, the Fund's 7-day annualized yields were 5.07% with compounding
and 4.95% without compounding. Compounded annualized yields for the 12 months
ended 6/30/97 was 4.82%. The corresponding yield without compounding was 4.71%.
2 Oppenheimer Money Market Fund, Inc.
<PAGE>
[PHOTO OMITTED]
Bridget A. Macaskill
President
Oppenheimer
Money Market Fund, Inc.
Dear shareholder,
I'd like to welcome you to the premier issue of our newly redesigned shareholder
reports. As you can see, we've changed the format to allow easier access to the
information you need to monitor your investments. On the following pages, your
portfolio team discuss their current investment thinking, your Fund's
strategies, and performance. Before these commentaries, I'd like to share a few
global observations.
As we consider the world's financial markets over the past twelve months,
some global trends emerge. For example, inflation has hit its lowest level in
three decades worldwide, which has helped spur many bullish financial markets.
The United States has been a beneficiary of this low-inflation environment, as
well as of a strong dollar, robust corporate earnings and a healthy economy.
However, many financial analysts are now concerned that the United States has
reached a point in the business cycle where earnings could decline because
companies are unable to further reduce costs.
On the other hand, a wave of corporate restructuring throughout Europe has
resulted in some exciting changes and opportunities. Because a similar
restructuring took place in the United States ten years ago, European companies
have been able to enjoy the benefit of hindsight by following our footsteps.
Latin America, too, has begun to shift its economies more toward the U.S.
capitalist model and has reported positive earnings growth along the way.
With major changes occurring in today's economies around the globe, it's
more important than ever to maintain a diversified portfolio across different
countries and market sectors. Now is the time to speak to your financial adviser
to ensure that your assets are allocated properly, so you have the opportunity
to benefit from investments in both domestic and international funds. It's
important to remember that investing abroad can involve greater risk and
expenses--including political and economic uncertainties--and should be
undertaken with a long-term approach in mind.
To keep in touch with our views on the markets, visit our website,
www.oppenheimerfunds.com, where you can access your account information and fund
performance data, 24 hours a day. The site also features prospectuses, timely
market updates and insightful commentaries. Our new shareholder reports and
presence on the Internet are just two examples of our commitment to keeping you
well informed.
Thank you for your confidence in OppenheimerFunds, The Right Way to
Invest. We look forward to helping you reach your investment goals in the
future.
Sincerely,
/s/ Bridget A. Macaskill
- ------------------------
Bridget A. Macaskill
August 21, 1997
3 Oppenheimer Money Market Fund, Inc.
<PAGE>
"By 'laddering'
our maturities
across the
board..."
An interview with your Fund's managers
How has the Fund performed over the past year?
Oppenheimer Money Market Fund, Inc. has performed very well during the period.
The Fund has maintained a stable share price of $1.00 per share, while providing
a steady stream of monthly income.
1997 has been a good year for the Fund. That's because, by "laddering" our
maturities across the board, we had money working at all different levels during
the Federal Open Market Committee (FOMC) meetings. We also picked up yield
through longer-term investments that benefited from the stabilization in
interest rates.
By extending maturities to approach the average maturity of other money
funds with the same objectives as ours, we've positioned the Fund more
conservatively. In March 1997, our average maturity was 40 days. But, as of July
31, 1997, our average maturity rose to the mid-50s. This new posture remains in
line with the Fund's strategy to achieve the highest possible yields, without
sacrificing safety or liquidity.
What factors have had a positive effect on the portfolio?
When the Fed raised interest rates on March 25,1997, the Fund was using a
"barbell" strategy that involved keeping money "up front" by primarily investing
in short, average- maturity instruments, while allocating some money to longer
maturities in pursuit of higher yields. Since we had a lot of cash to reinvest
from the short maturities, we took advantage of the rate hike by purchasing
six-month maturities that evenly structured our maturities across the board.
4 Oppenheimer Money Market Fund, Inc.
<PAGE>
"...the Fund
had money
working at all
different levels."
Did anything negatively impact performance?
High valuations and uncertainty in the stock market during the first half of
1997 made some investors jittery. This resulted in a surplus of money flowing
out of the stock market and into cash funds--all of which was vying for the same
pool of short commercial paper. The increased demand drove bond prices up, which
in turn lowered potential yields.
What areas of the market are you currently targeting?
The portfolio invests primarily in commercial paper, which are short-term notes
issued by a corporation, bank or trust. Our strategy is to invest in the
securities that represent minimal credit risk. Through our independent credit
analysis--identifying and investing in securities that are improving credits--we
are able to add value, which translates into additional yield.
What is your outlook for the Fund?
Barring further Fed actions, the Fund has settled into a more comfortable pace
for the second half of 1997. Rather than chasing the market, we've settled into
a better rhythm of taking advantage of market developments within the Fund's
strategy. However, if we see signs in the market and economy that are likely to
prompt the Fed to hike interest rates, we would shorten the portfolio's
maturity--which would enable us to reinvest quickly at higher yields.
5 Oppenheimer Money Market Fund, Inc.
<PAGE>
Financials
6 Oppenheimer Money Market Fund, Inc.
<PAGE>
Statement of Investments July 31, 1997
Face Value
Amount See Note 1
================================================================================
Bankers' Acceptances-1.5%
- --------------------------------------------------------------------------------
BankBoston, N.A.:
5.60%, 10/24/97 $ 5,000,000 $ 4,934,667
5.60%, 12/12/97 5,000,000 4,896,555
5.67%, 12/8/97 5,710,000 5,593,987
----------
Total Bankers' Acceptances 15,425,209
================================================================================
Certificates of Deposit-1.9%
- --------------------------------------------------------------------------------
Societe Generale:
5.65%, 11/14/97 4,000,000 3,934,083
5.68%, 8/21/97 5,000,000 4,999,985
5.72%, 10/21/97 10,000,000 9,992,626
----------
Total Certificates of Deposit 18,926,694
================================================================================
Direct Bank Obligations-3.9%
- --------------------------------------------------------------------------------
Abbey National North America Corp., 5.54%, 1/23/98 10,000,000 9,730,695
- --------------------------------------------------------------------------------
BankBoston, N.A., 5.69%, 9/8/97 5,000,000 5,000,000
- --------------------------------------------------------------------------------
Bankers Trust Co., New York:
5.60%, 11/20/97(1) 5,000,000 4,998,897
5.71%, 4/15/98(1) 10,000,000 10,000,000
- --------------------------------------------------------------------------------
CoreStates Bank, N.V., 5.596%, 12/18/97(1) 5,000,000 4,998,919
- --------------------------------------------------------------------------------
FCC National Bank, 5.62%, 2/20/98(1) 5,000,000 4,998,639
----------
Total Direct Bank Obligations 39,727,150
================================================================================
Letters of Credit-7.2%
- --------------------------------------------------------------------------------
ABN Amro Bank, N.V., guaranteeing commercial
paper of Formosa Plastics Corp. USA-Series A:
5.60%, 9/22/97 10,000,000 9,919,111
5.63%, 8/28/97 10,000,000 9,957,775
- --------------------------------------------------------------------------------
Barclays Bank PLC, guaranteeing commercial paper
of Banco Bradesco SA Grand Cayman Branch:
Series A, 5.54%, 12/1/97 4,000,000 3,924,902
Series B, 5.62%, 12/3/97 10,000,000 9,806,422
- --------------------------------------------------------------------------------
Bayerische Vereinsbank AG, guaranteeing
commercial paper of:
Banco Rio de la Plata S.A.-Series A, 5.31%, 8/25/97 5,000,000 4,982,300
Galicia Funding Corp.-Series B, 5.62%, 9/5/97(2) 5,000,000 4,972,681
- --------------------------------------------------------------------------------
Credit Suisse, guaranteeing commercial paper
of: Guangdon Enterprises Ltd., 5.67%, 8/19/97 5,000,000 4,985,825
- --------------------------------------------------------------------------------
Societe Generale, guaranteeing commercial paper of:
Banco Nacionale de Comericio Exterior SNC-Series A,
5.61%, 11/25/97 15,000,000 14,728,850
Nacional Financiera SNC-Series A, 5.75%, 8/18/97 10,000,000 9,972,847
----------
Total Letters of Credit 73,250,713
7 Oppenheimer Money Market Fund, Inc.
<PAGE>
Statement of Investments (Continued)
Face Value
Amount See Note 1
================================================================================
Short-Term Notes-81.5%
- --------------------------------------------------------------------------------
Automotive-2.9%
BMW US Capital Corp.:
5.55%, 10/6/97 $20,000,000 $ 19,796,500
5.60%, 8/20/97 10,000,000 9,970,444
-----------
29,766,944
- --------------------------------------------------------------------------------
Banks-0.5%
Bankers Trust Co., New York, 5.54%, 12/11/97 5,000,000 4,898,433
- --------------------------------------------------------------------------------
Broker/Dealers-19.1%
Bear Stearns Cos., Inc.:
5.54%, 12/19/97 5,000,000 4,892,278
5.60%, 8/20/97 5,000,000 4,985,222
5.62%, 9/11/97 5,000,000 4,967,997
5.668%, 7/10/98(1) 5,000,000 5,000,000
5.75%, 4/1/98(1) 10,000,000 10,000,000
5.872%, 3/23/98(1) 15,000,000 15,019,897
- --------------------------------------------------------------------------------
CS First Boston, Inc.:
5.54%, 1/22/98(2) 5,000,000 4,866,117
5.60%, 10/1/97 10,000,000 9,905,111
- --------------------------------------------------------------------------------
Goldman Sachs Group, L.P., 5.62%, 10/6/97 5,000,000 4,948,483
- --------------------------------------------------------------------------------
Lehman Brothers Holdings, Inc.:
5.56%, 11/14/97 5,000,000 4,918,917
8.26%, 8/29/97 12,500,000 12,565,750
5.62%, 11/21/97 5,000,000 4,912,578
5.63%, 8/22/97 5,000,000 4,983,579
5.64%, 9/10/97 5,000,000 4,968,667
5.771%, 6/18/98(1) 5,000,000 5,013,912
- --------------------------------------------------------------------------------
Merrill Lynch & Co., Inc.:
5.54%, 12/12/97 7,500,000 7,346,219
5.55%, 12/17/97 10,000,000 9,787,250
5.64%, 1/8/98(1) 10,000,000 9,999,145
5.68%, 3/18/98(1) 5,000,000 4,999,387
5.68%, 7/20/98(1) 5,000,000 5,000,000
5.70%, 9/19/97(1) 5,000,000 5,000,000
- --------------------------------------------------------------------------------
Morgan Stanley Group, Inc., 5.91%, 9/16/98(1) 7,000,000 7,000,000
- --------------------------------------------------------------------------------
Morgan Stanley, Dean Witter, Discover & Co.,
5.812%, 3/24/98 30,600,000 30,600,000
- --------------------------------------------------------------------------------
Republic New York Securities Corp., 6.06%, 4/24/98(1) 12,000,000 12,000,000
-----------
193,680,509
- --------------------------------------------------------------------------------
Commercial Finance-11.8%
CIT Group Holdings, Inc., 5.75%, 3/11/98(1) 10,000,000 10,000,000
- --------------------------------------------------------------------------------
Countrywide Home Loans:
5.60%, 8/13/97 10,000,000 9,981,333
5.62%, 8/14/97 5,000,000 4,989,853
8 Oppenheimer Money Market Fund, Inc.
<PAGE>
Face Value
Amount See Note 1
- --------------------------------------------------------------------------------
Commercial Finance (continued)
FINOVA Capital Corp.:
5.57%, 11/10/97 $ 10,000,000 $ 9,843,731
5.60%, 1/5/98 8,000,000 7,804,622
5.55%, 10/16/97 5,265,000 5,203,312
5.61%, 11/21/97 5,000,000 4,912,733
5.63%, 9/25/97 20,000,000 19,828,736
- --------------------------------------------------------------------------------
Heller Financial, Inc.:
5.71%, 10/10/97(1) 5,000,000 4,999,808
5.72%, 8/27/97 5,000,000 4,979,344
5.73%, 9/9/97 5,000,000 4,968,963
5.75%, 12/15/97 15,000,000 14,674,167
5.75%, 9/4/97 10,000,000 9,945,694
5.75%, 9/8/97 3,000,000 2,981,792
5.65%, 12/22/97 5,000,000 4,907,546
-----------
120,021,634
- --------------------------------------------------------------------------------
Consumer Finance-3.4%
Island Finance Puerto Rico, Inc.:
5.53%, 10/27/97 5,000,000 4,933,179
5.54%, 10/29/97 5,000,000 4,931,519
5.55%, 11/5/97 20,000,000 19,704,000
- --------------------------------------------------------------------------------
Sears Roebuck Acceptance Corp., 5.60%, 8/25/97 5,000,000 4,981,333
-----------
34,550,031
- --------------------------------------------------------------------------------
Diversified Financial-11.4%
Associates Corp. of North America, 5.875%, 8/1/97 40,000,000 40,000,000
- --------------------------------------------------------------------------------
General Electric Capital Corp., 5.85%, 8/1/97 41,330,000 41,330,000
- --------------------------------------------------------------------------------
General Motors Acceptance Corp.:
5.56%, 1/26/98 10,000,000 9,725,089
5.73%, 11/18/97 5,000,000 4,913,254
5.75%, 4/21/98(1) 15,000,000 14,994,461
- --------------------------------------------------------------------------------
Prudential Funding Corp., 5.685%, 5/5/98(1) 5,000,000 4,999,084
-----------
115,961,888
- --------------------------------------------------------------------------------
Electronics-2.2%
Avnet, Inc., 5.60%, 10/10/97 5,000,000 4,945,556
- --------------------------------------------------------------------------------
Mitsubishi Electric Finance America, Inc.,
5.65%, 8/27/97(2) 18,000,000 17,926,550
-----------
22,872,106
- --------------------------------------------------------------------------------
Healthcare/Supplies & Services-0.5%
American Home Products Corp., 5.62%, 9/8/97(2) 5,000,000 4,970,339
- --------------------------------------------------------------------------------
Industrial Services-2.5%
Atlas Copco AB, 5.625%, 8/25/97(2) 5,000,000 4,981,250
- --------------------------------------------------------------------------------
PHH Corp., 5.618%, 1/27/98(1) 20,000,000 19,996,943
-----------
24,978,193
9 Oppenheimer Money Market Fund, Inc.
<PAGE>
Statement of Investments (Continued)
Face Value
Amount See Note 1
- --------------------------------------------------------------------------------
Insurance-6.1%
General American Life Insurance Co.,
5.89%, 8/1/97(1)(3) $20,000,000 $20,000,000
- --------------------------------------------------------------------------------
Jackson National Life Insurance Co.:
5.71%, 3/1/98(1)(3) 30,000,000 30,000,000
5.71%, 8/1/98(1)(3) 5,000,000 5,000,000
- --------------------------------------------------------------------------------
TransAmerica Life Insurance & Annuity Co.,
5.736%, 3/22/98(1)(3) 7,000,000 7,000,000
----------
62,000,000
- --------------------------------------------------------------------------------
Leasing & Factoring-1.0%
American Honda Finance Corp., 5.75%, 7/8/98(1) 10,000,000 10,000,000
- --------------------------------------------------------------------------------
Nondurable Household Goods-1.0%
Avon Capital Corp., 5.64%, 8/26/97(2) 10,260,000 10,219,815
- --------------------------------------------------------------------------------
Savings & Loans-2.0%
Great Western Bank FSB, 5.63%, 9/10/97 20,000,000 19,874,889
- --------------------------------------------------------------------------------
Special Purpose Financial-16.6%
Asset Backed Capital Finance, Inc.:
5.60%, 11/17/97(2) 5,000,000 4,916,000
5.60%, 12/26/97(1)(3) 6,000,000 5,997,946
5.92%, 3/16/98(1)(3) 5,000,000 4,998,606
- --------------------------------------------------------------------------------
Beta Finance, Inc.:
5.71%, 11/26/97(2) 8,000,000 7,851,540
5.65%, 9/15/97(2) 16,000,000 15,887,000
- --------------------------------------------------------------------------------
Corporate Asset Funding Corp., Inc.,
5.53%, 10/10/97(2) 7,000,000 6,924,731
- --------------------------------------------------------------------------------
CXC, Inc.:
5.54%, 11/17/97(2) 5,000,000 4,916,900
5.62%, 9/3/97(2) 5,000,000 4,974,242
- --------------------------------------------------------------------------------
Enterprise Funding Corp.:
5.56%, 12/19/97(2) 3,924,000 3,839,154
5.58%, 12/29/97(2) 5,121,000 5,001,937
5.62%, 8/25/97(2) 4,996,000 4,977,282
5.65%, 12/10/97(2) 4,584,000 4,489,754
5.54%, 12/15/97(2) 4,000,000 3,916,284
5.66%, 12/8/97(2) 3,846,000 3,767,997
5.67%, 8/18/97(2) 7,000,000 6,981,258
- --------------------------------------------------------------------------------
New Center Asset Trust, 5.55%, 12/29/97 10,000,000 9,768,750
- --------------------------------------------------------------------------------
Preferred Receivables Funding Corp.:
5.55%, 12/30/97 5,975,000 5,835,907
5.60%, 11/18/97 5,900,000 5,799,962
5.62%, 9/11/97 5,200,000 5,166,717
5.65%, 12/15/97 10,500,000 10,277,819
- --------------------------------------------------------------------------------
RACERS Series 1996-MM-12-3, 5.668%,
12/15/97(1)(3) 5,000,000 5,000,000
- --------------------------------------------------------------------------------
Sigma Finance, Inc.:
5.58%, 12/24/97(2) 3,317,000 3,242,450
5.61%, 8/27/97(2) 3,570,000 3,555,510
5.63%, 9/5/97(2) 15,000,000 14,917,896
10 Oppenheimer Money Market Fund, Inc.
<PAGE>
Face Value
Amount See Note 1
- --------------------------------------------------------------------------------
Special Purpose Financial-(continued)
SMM Trust 1996-B, 5.738%, 8/4/97(1)(3) $ 10,000,000 $ 10,000,000
- --------------------------------------------------------------------------------
TIERS Series DCMT 1996-A, 5.698%,
10/15/97(1)(3) 5,000,000 5,000,000
--------------
168,005,642
- --------------------------------------------------------------------------------
Specialty Retailing-0.5%
St. Michael Finance Ltd., guaranteed by
Marks & Spencer PLC, 5.61%, 9/11/97 5,000,000 4,968,054
--------------
Total Short-Term Notes 826,768,477
- --------------------------------------------------------------------------------
U.S. Government Obligations-2.5%
- --------------------------------------------------------------------------------
Federal Home Loan Bank, 5.93%, 8/1/97(1) 15,000,000 15,000,000
- --------------------------------------------------------------------------------
Student Loan Marketing Assn., 5.82%, 1/23/98 10,000,000 9,999,281
--------------
Total U.S. Government Obligations 24,999,281
- --------------------------------------------------------------------------------
Foreign Government Obligations-1.1%
- --------------------------------------------------------------------------------
Westdeutsche Landesbank Girozentrale,
5.58%, 12/22/97 11,500,000 11,245,103
- --------------------------------------------------------------------------------
Total Investments, at Value 99.6% 1,010,342,627
- --------------------------------------------------------------------------------
Other Assets Net of Liabilities 0.4 3,597,530
------------ --------------
Net Assets 100.0% $1,013,940,157
============ ==============
Short-term notes, bankers' acceptances, 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. 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, 1997. This instrument may
also have a demand feature which allows, on up to 30 days' notice, the recovery
of principal at any time, or at specified intervals not exceeding one year.
Maturity date shown represents effective maturity based on variable rate and, if
applicable, demand feature.
(2) Security issued in an exempt transaction without registration under the
Securities Act of 1933. Such securities amount to $148,096,687, or 14.61% of the
Fund's net assets, and have been determined to be liquid pursuant to guidelines
adopted by the Board of Directors.
(3) Represents a restricted security which is considered illiquid, by virtue of
the absence of a readily available market or because of legal or contractual
restrictions on resale. Such securities amount to $92,996,552 or 9.17% of the
Fund's net assets. The Fund may not invest more than 10% of its net assets
(determined at the time of purchase) in illiquid securities.
See accompanying Notes to Financial Statements.
11 Oppenheimer Money Market Fund, Inc.
<PAGE>
Statement of Assets and Liabilities July 31, 1997
================================================================================
Assets
Investments, at value-see accompanying statement $1,010,342,627
- --------------------------------------------------------------------------------
Cash 1,427,959
- --------------------------------------------------------------------------------
Receivables:
Shares of capital stock sold 7,179,054
Interest 3,447,613
- --------------------------------------------------------------------------------
Other 24,118
-------------
Total assets 1,022,421,371
================================================================================
Liabilities
Payables and other liabilities:
Shares of capital stock redeemed 6,464,907
Dividends 1,424,437
Shareholder reports 225,900
Transfer and shareholder servicing agent fees 168,352
Directors' fees-Note 1 158,041
Other 39,577
------------
Total liabilities 8,481,214
================================================================================
Net Assets $1,013,940,157
=============
================================================================================
Composition of Net Assets
Par value of shares of capital stock $ 101,408,958
- --------------------------------------------------------------------------------
Additional paid-in capital 912,530,844
- --------------------------------------------------------------------------------
Accumulated net realized gain on investment transactions 355
-------------
Net assets-applicable to 1,014,089,579 shares of
capital stock outstanding $1,013,940,157
=============
================================================================================
Net Asset Value, Redemption Price and Offering Price Per Share $ 1.00
See accompanying Notes to Financial Statements.
12 Oppenheimer Money Market Fund, Inc.
<PAGE>
Statement of Operations For the Year Ended July 31, 1997
================================================================================
Investment Income
Interest $56,673,423
================================================================================
Expenses
Management fees-Note 3 4,413,500
- --------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees-Note 3 3,390,471
- --------------------------------------------------------------------------------
Shareholder reports 703,512
- --------------------------------------------------------------------------------
Registration and filing fees 131,307
- --------------------------------------------------------------------------------
Custodian fees and expenses 83,341
- --------------------------------------------------------------------------------
Legal and auditing fees 41,356
- --------------------------------------------------------------------------------
Insurance expenses 7,457
- --------------------------------------------------------------------------------
Other 76,401
-----------
Total expenses 8,847,345
================================================================================
Net Investment Income 47,826,078
================================================================================
Net Realized Gain on Investments 16,805
================================================================================
Net Increase in Net Assets Resulting from Operations $47,842,883
==========
See accompanying Notes to Financial Statements.
13 Oppenheimer Money Market Fund, Inc.
<PAGE>
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
Year Ended
Year Ended July 31, December 31,
1997 1996(1) 1995
=========================================================================================
<S> <C> <C> <C>
Operations
Net investment income $ 47,826,078 $ 24,508,161 $ 44,370,781
- -----------------------------------------------------------------------------------------
Net realized gain (loss) 16,805 (156,737) 639,389
- -----------------------------------------------------------------------------------------
Net increase in net assets
resulting from operations 47,842,883 24,351,424 45,010,170
=========================================================================================
Dividends and Distributions
to Shareholders (47,826,078) (24,508,161) (44,968,631)
=========================================================================================
Capital Stock Transactions
Net increase (decrease) in
net assets resulting from
capital stock transactions-Note 2 (87,656,896) 283,809,275 (111,066,422)
=========================================================================================
Net Assets
Total increase (decrease) (87,640,091) 283,652,538 (111,024,883)
- -----------------------------------------------------------------------------------------
Beginning of period 1,101,580,248 817,927,710 928,952,593
--------------- --------------- -------------
End of period $ 1,013,940,157 $ 1,101,580,248 $ 817,927,710
=============== =============== =============
</TABLE>
1. For the seven months ended July 31, 1996. The Fund changed its fiscal year
end from December 31 to July 31.
See accompanying Notes to Financial Statements.
14 Oppenheimer Money Market Fund, Inc.
<PAGE>
Financial Highlights
<TABLE>
<CAPTION>
Year Ended July 31, Year Ended December 31,
1997 1996(1) 1995 1994 1993 1992
==========================================================================================
<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 .05 .03 .05 .04 .03 .03
Dividends and distributions
to shareholders (.05) (.03) (.05) (.04) (.03) (.03)
- ------------------------------------------------------------------------------------------
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) 4.83% 2.80% 5.40% 3.76% 2.71% 3.47%
==========================================================================================
Ratios/Supplemental Data:
Net assets, end of period
(in millions) $1,014 $1,102 $ 818 $ 929 $ 611 $ 692
- ------------------------------------------------------------------------------------------
Average net assets (in millions) $1,011 $ 901 $ 855 $ 804 $ 653 $ 811
- ------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income 4.73% 4.68%(3) 5.19% 3.79% 2.65% 3.42%
Expenses 0.87% 0.84%(3) 0.90% 0.82% 0.87% 0.88%
</TABLE>
1. For the seven months ended July 31, 1996. 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. Total returns reflect changes
in net investment income only.
3. Annualized.
See accompanying Notes to Financial Statements.
15 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. 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 adviser 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.
- --------------------------------------------------------------------------------
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
July 31, 1997, a credit in the provision of $50,344 was made for the Fund's
projected benefit obligations, and payments of $14,926 were made to retired
directors, resulting in an accumulated liability of $158,000 at July 31, 1997.
- --------------------------------------------------------------------------------
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.
16 Oppenheimer Money Market Fund, Inc.
<PAGE>
================================================================================
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.
================================================================================
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>
Year Ended July 31, 1997 Period Ended July 31, 1996(1) Year Ended December 31, 1995
------------------------------- ------------------------------- --------------------------------
Shares Amount Shares Amount Shares Amount
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Sold 2,384,393,754 $ 2,384,393,754 1,437,146,578 $ 1,437,146,578 1,772,666,521 $ 1,772,666,521
Dividends and
distributions
reinvested 45,124,419 45,124,419 21,997,805 21,997,805 42,507,860 42,507,860
Issued in connection
with the acquisition of
Connecticut Mutual
Liquid Account-
Note 4 -- -- 73,705,405 73,705,405 -- --
Redeemed (2,517,178,069) (2,517,178,069) (1,249,040,513) (1,249,040,513) (1,926,240,803) (1,926,240,803)
-------------- -------------- -------------- -------------- -------------- --------------
Net increase
(decrease) (87,656,896) $ (87,656,896) 283,809,275 $ 283,809,275 (111,066,422) $ (111,066,422)
============== ============== ============== ============== ============== ==============
</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.
17 Oppenheimer Money Market Fund, Inc.
<PAGE>
Notes to Financial Statements-(Continued)
================================================================================
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.
18 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, 1997, the
related statement of operations for the year then ended, the statements of
changes in net assets for the year then ended, the seven-month period ended July
31, 1996 and the year ended December 31, 1995, and the financial highlights for
the year ended July 31, 1997, the seven-month period ended July 31, 1996 and for
each of the years in the four-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, 1997, 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, 1997, the results
of its operations for the year then ended, the changes in its net assets for the
year then ended, the seven-month period ended July 31, 1996 and the year ended
December 31, 1995, and the financial highlights for the year ended July 31,
1997, the seven-month period ended July 31, 1996 and for each of the years in
the four-year period ended December 31, 1995, in conformity with generally
accepted accounting principles.
KPMG Peat Marwick LLP
Denver, Colorado
August 21, 1997
19 Oppenheimer Money Market Fund, Inc.
<PAGE>
Federal Income Tax Information [ILLEGIBLE]
================================================================================
In early 1998, shareholders will receive information regarding all dividends and
distributions paid to them by the Fund during calendar year 1997. 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, 1997 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 adviser for specific
guidance.
20 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
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 Adviser OppenheimerFunds, Inc.
================================================================================
Distributor OppenheimerFunds Distributor, Inc.
================================================================================
Transfer and OppenheimerFunds Services
Shareholder 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.
21 Oppenheimer Money Market Fund, Inc.
<PAGE>
OppenheimerFunds Family
<TABLE>
<CAPTION>
============================================================================================
<S> <C> <C>
Real Asset Funds
- --------------------------------------------------------------------------------------------
Real Asset Fund Gold & Special Minerals Fund
============================================================================================
Stock Funds
- --------------------------------------------------------------------------------------------
Developing Markets Fund Quest Small Cap Value Fund Global Fund
Enterprise Fund Capital Appreciation Fund(1) Quest Global Value Fund
International Growth Fund Quest Capital Value Fund Disciplined Value Fund
Discovery Fund Growth Fund Quest Value Fund
============================================================================================
Stock & Bond Funds
- --------------------------------------------------------------------------------------------
Main Street Income & Quest Growth & Income Disciplined Allocation Fund
Growth Fund Value Fund Multiple Strategies Fund(2)
Quest Opportunity Value Fund Global Growth & Income Fund Bond Fund for Growth
Total Return Fund Equity Income Fund
============================================================================================
Bond Funds
- --------------------------------------------------------------------------------------------
International Bond Fund Champion Income Fund U.S. Government Trust
High Yield Fund Strategic Income Fund Limited-Term Government Fund
Bond Fund
============================================================================================
Municipal Funds
- --------------------------------------------------------------------------------------------
California Municipal Fund(3) Pennsylvania Municipal Fund(3) Rochester Division:
Florida Municipal Fund(3) Municipal Bond Fund Rochester Fund Municipals
New Jersey Municipal Fund(3) Insured Municipal Fund Limited Term New York
New York Municipal Fund(3) Intermediate Municipal Fund Municipal Fund
============================================================================================
Money Market Funds(4)
- --------------------------------------------------------------------------------------------
Money Market Fund Cash Reserves
============================================================================================
LifeSpan
- --------------------------------------------------------------------------------------------
Growth Fund Balanced Fund Income Fund
</TABLE>
1. On 12/18/96, the Fund's name was changed from "Target Fund."
2. On 3/16/97, the Fund's name was changed from "Asset Allocation Fund."
3. Available only to investors in certain shares.
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 1997 OppenheimerFunds, Inc. All rights reserved.
22 Oppenheimer Money Market Fund, Inc.
<PAGE>
Internet
24-hr access to account information
www.oppenheimerfunds.com
General Information
Mon-Fri 8:30am-9pm ET
Sat 10am-4pm ET
1-800-525-7048
Account Transactions
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Sat 10am-4pm ET
1-800-852-8457
PhoneLink
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OppenheimerFunds
Information Hotline
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affect your investments
1-800-835-3104
Information and services
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
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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, or visit us at our website at www.oppenheimerfunds.com--we're
here to help.
[LOGO] Oppenheimer Funds(TM)
Distributor, Inc.
