<PAGE> 1
[PHOTO]
OPPENHEIMER MONEY MARKET FUND, INC.
Semiannual Report January 31, 1997
"I want
to know my
money will
be there
when
I need it."
[OPPENHEIMERFUNDS LOGO]
<PAGE> 2
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 1/31/97 was 4.84% with compounding
and 4.73% without compounding.(2)
Compounded annualized yield for the six months ended 1/31/97 was 4.84%.
The corresponding yield without compounding was 4.73%.
OUTLOOK
"Unless we begin to see clear evidence of a slowdown in the economy, relative to
last year, we will maintain a fairly short average maturity. Given this outlook
for the fixed income market, we expect to continue to provide investors with a
competitive income stream and safety of principal."
Carol Wolf, Portfolio Manager
January 31, 1997
Past performance does not guarantee future results. Yields will fluctuate.
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 net
asset value of $1.00 per share.
2. Compounded yields assume reinvestment of dividends.
2 Oppenheimer Money Market Fund, Inc.
<PAGE> 3
[PHOTO]
Bridget A. Macaskill
President
Oppenheimer Money
Market Fund, Inc.
DEAR SHAREHOLDER,
It's true that the stock market of 1996 received virtually all the recognition
this past year. While excitement during the second half of the year revolved
around equities, the bond market was experiencing a quiet, yet solid, rebound.
The first half of last year was difficult for most fixed income investors,
as concerns about inflation led to rising long-term interest rates. But as we
moved through the third and fourth quarters, interest rates declined,
ultimately resulting in a bond market rally. By any standards, 1996 was quite a
year.
For example, in October, when the economy was characterized by a firm
dollar, low inflation and slow growth, the Federal Reserve responded by
maintaining its hands-off approach to interest rates. It appeared that earlier
concerns about rapid inflationary growth had been overblown, and soon
afterwards, interest rates fell. With continued sustainable non-inflationary
growth around 2% to 2.5%, long-term rates at their lowest levels since April,
and no raises expected from the Federal Reserve, the economy now seems to have
settled into a comfortable pattern of neither too little nor too much growth.
Moving ahead to 1997, President Clinton has pledged to focus on balancing
the federal budget during his second term. In fact, politicians from every camp
are discussing their intent to reduce the budget, perhaps with a balanced
budget amendment. Such a move would prove beneficial for the fixed income
market.
Throughout much of the world, interest rates declined in 1996. Despite
these foreign declines, long-term United States bond rates have increased 100
basis points since this time last year. Real interest rates around the world
are currently averaging over 5%--very attractive by historical standards if, in
fact, inflation remains low. However, foreign investors have long been
significant players in the U.S. market. And, as the U.S. dollar strengthened
against foreign currencies in 1996, the flow of funds into the United States
has increased. Foreign investments also rose because overseas bond markets
continued to offer smaller yields, and the U.S. trade deficit provided foreign
central banks with dollars they were compelled to invest. Currently, the United
States appears to lead foreign bond markets and, in 1997, is expected to offer
attractive investments.
All things considered, investors still like money market funds. That's
because despite the lackluster yield performance of money market funds in 1996,
they offer liquidity and relatively low risk.
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
February 24, 1997
3 Oppenheimer Money Market Fund, Inc.
<PAGE> 4
CAROL WOLF
Portfolio Manager
Q + A
HOW HAS THE FUND PERFORMED OVER THE PAST SIX MONTHS?
The fixed income market, over the past six months, has maintained its steady,
upward pace and as a result, Oppenheimer Money Market Fund, Inc. performed
well. Our strategy involved positioning our investments in securities that
offered competitive yields and relatively steady prices. This enabled us to
successfully provide investors with a competitive level of income, while
maintaining a constant share price.
WHAT INVESTMENTS HAVE HAD A POSITIVE EFFECT ON THE PORTFOLIO?
To meet the portfolio's objective of preserving capital, while capturing the
highest possible yield, our assets are invested in lowrisk, shortterm
securities. These include commercial paper obligations, letters of credit and
floating-rate securities. While these are generally conservative investments,
we were able to further enhance the portfolio's performance when the market
fluctuated throughout the year.
For example, when interest rates began to rise early last year, we
invested in securities that had shorter maturity dates. Because shorter
maturities have to be replaced by new issues more frequently, this positioning
helped us maintain a competitive yield during the past year. As our holdings
matured, interest rates were rising, and the Fund benefited from replacing
maturing securities with new ones that offered high yields.(1)
AN INTERVIEW WITH YOUR FUND'S MANAGERS.
WERE THERE ANY NEGATIVE FACTORS THAT HURT PERFORMANCE?
No. Because we had anticipated higher interest rates and positioned our
investments in securities that offered competitive yields and relative price
stability, the Fund was able to successfully meet its objectives.
WHAT AREAS OF THE MARKET ARE YOU CURRENTLY TARGETING?
As always, we continue to focus on offering competitive yields, while watching
interest rates carefully. Given the current reports of stronger-than-expected
economic growth, we believe it is unlikely that we'll see further interest-rate
cuts in the near future. On the other hand, we also don't believe the economy
is robust enough to expect further rate increases. So, although we saw market
fluctuations throughout 1996, we're maintaining our focus on shorter maturities
and keeping a watchful eye for ways to increase yield.
WHAT IS YOUR OUTLOOK FOR THE FUND?
This type of fund is one of the few investments that benefits from higher
interest rates. Because we must invest in securities that have short
maturities, the yields paid are directly related to the prevailing interest
rates. And, even though current interest rates were lower in the beginning of
1997 than they were six months ago, we remain positive that they should work in
our favor in 1997. Unless we begin to see clear evidence of a slowdown in the
economy, relative to last year, we will maintain a fairly short average
maturity. Given this outlook for the fixed income market, we expect to continue
to provide investors with a competitive income stream and safety of principal.
1. The Fund's portfolio is subject to change.
4 Oppenheimer Money Market Fund, Inc.
<PAGE> 5
STATEMENT OF INVESTMENTS January 31, 1997 (Unaudited)
<TABLE>
<CAPTION>
FACE VALUE
AMOUNT SEE NOTE 1
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
DIRECT BANK OBLIGATIONS--4.1%
- -----------------------------------------------------------------------------------------------------------------------------------
Abbey National North America Corp., 5.35%, 3/10/97 $ 5,000,000 $ 4,972,507
----------------------------------------------------------------------------------------------------------------------------
Bankers Trust Co., New York, 5.35%, 11/26/97(1) 5,000,000 4,997,191
----------------------------------------------------------------------------------------------------------------------------
CoreStates Bank, N.V., 5.365%, 12/18/97(1) 5,000,000 4,997,511
----------------------------------------------------------------------------------------------------------------------------
First National Bank of Boston:
5.47%, 4/3/97 10,000,000 10,000,000
5.43%, 2/6/97 5,000,000 4,996,229
----------------------------------------------------------------------------------------------------------------------------
National Westminster Bank of Canada, 5.40%, 7/15/97 10,000,000 9,754,000
--------------
Total Direct Bank Obligations (Cost $39,717,438) 39,717,438
- -----------------------------------------------------------------------------------------------------------------------------------
LETTERS OF CREDIT--8.7%
- ----------------------------------------------------------------------------------------------------------------------------------
Barclays Bank PLC, guaranteeing commercial paper of:
Banco Bradesco S.A., Grand Cayman Branch:
Series A, 5.35%, 4/18/97 5,000,000 4,943,950
Series B, 5.32%, 3/24/97 7,000,000 6,947,243
Series B, 5.32%, 3/24/97 5,000,000 4,962,317
Banco Real S.A., Grand Cayman Branch:
Series A, 5.32%, 4/22/97 5,000,000 4,940,889
Series A, 5.37%, 4/21/97 5,000,000 4,941,079
Petroleo Brasileiro, S.A.-Petrobras:
Series A, 5.31%, 5/7/97 3,200,000 3,155,160
Series B, 5.32%, 6/3/97 15,000,000 14,729,566
---------------------------------------------------------------------------------------------------------------------------
Bayerische Vereinsbank AG, guaranteeing commercial paper of Galicia
Funding Corp.-Series B:
5.38%, 2/28/97(2) 5,000,000 4,979,825
5.41%, 3/5/97(2) 5,000,000 4,975,955
5.45%, 3/4/97(2) 5,000,000 4,976,535
---------------------------------------------------------------------------------------------------------------------------
Credit Suisse, guaranteeing commercial paper of:
Guangdong Enterprises (Holdings) Ltd., 5.48%, 2/11/97 6,000,000 5,990,867
---------------------------------------------------------------------------------------------------------------------------
Dresdner Bank AG, guaranteeing commercial paper of:
Galicia Buenos Aires Funding Corp., 5.32%, 2/18/97(2) 2,800,000 2,792,966
---------------------------------------------------------------------------------------------------------------------------
Societe Generale, guaranteeing commercial paper of:
Girsa Funding Corp., 5.32%, 4/3/97(2) 5,000,000 4,954,928
Nacional Financiera, SNC-Series A, 5.31%, 2/24/97 10,000,000 9,966,075
-------------
Total Letters of Credit (Cost $83,257,355) 83,257,355
- ----------------------------------------------------------------------------------------------------------------------------------
SHORT-TERM NOTES--85.4%
- ----------------------------------------------------------------------------------------------------------------------------------
BANKS--1.5%
Bankers Trust New York Corp.:
5.38%, 6/16/97 5,000,000 4,899,125
5.39%, 7/9/97 4,000,000 3,905,376
---------------------------------------------------------------------------------------------------------------------------
CoreStates Capital Corp., 5.97%, 6/27/97(1) 5,000,000 5,000,000
------------
13,804,501
- ----------------------------------------------------------------------------------------------------------------------------------
BEVERAGES--2.6%
Coca-Cola Enterprises, Inc.:
5.31%, 3/19/97(2) 5,000,000 4,965,692
5.31%, 3/7/97(2) 10,000,000 9,949,661
5.33%, 2/19/97(2) 5,000,000 4,986,675
5.35%, 4/14/97(2) 5,000,000 4,946,500
-------------
24,848,528
</TABLE>
5 Oppenheimer Money Market Fund, Inc.
<PAGE> 6
STATEMENT OF INVESTMENTS (Unaudited) (Continued)
<TABLE>
<CAPTION>
FACE VALUE
AMOUNT SEE NOTE 1
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
BROKER/DEALERS--11.0%
- ----------------------------------------------------------------------------------------------------------------------------------
Credit Suisse First Boston, 5.33%, 2/13/97(2) $10,000,000 $ 9,982,200
---------------------------------------------------------------------------------------------------------------------------
Goldman Sachs Group, L.P.:
5.31%, 3/21/97 10,000,000 9,929,200
5.50%, 4/4/97 5,000,000 4,952,639
---------------------------------------------------------------------------------------------------------------------------
Merrill Lynch & Co., Inc.:
5.32%, 3/3/97 8,000,000 7,964,533
5.35%, 4/11/97 5,000,000 4,948,729
5.35%, 4/24/97 5,000,000 4,939,069
5.39%, 7/18/97 5,000,000 4,874,982
5.45%, 9/19/97(1) 5,000,000 5,000,000
5.452%, 1/8/98(1) 10,000,000 9,998,178
--------------------------------------------------------------------------------------------------------------------------
Morgan Stanley Group, Inc.:
5.30%, 6/27/97 35,000,000 35,000,000
5.694%, 2/17/98(1) 7,000,000 7,000,000
------------
104,589,530
- ---------------------------------------------------------------------------------------------------------------------------------
BUILDING MATERIALS--0.5%
Compagnie de Saint-Gobain, 5.38%, 4/23/97 5,000,000 4,939,475
- ---------------------------------------------------------------------------------------------------------------------------------
COMMERCIAL FINANCE--17.2%
CIT Group Holdings, Inc.:
5.35%, 5/1/97(1) 5,000,000 4,998,607
5.553%, 3/11/98(1) 10,000,000 10,000,000
5.62%, 2/3/97 30,000,000 29,990,633
--------------------------------------------------------------------------------------------------------------------------
Countrywide Home Loans:
5.34%, 3/3/97 5,000,000 4,977,792
5.35%, 3/26/97 5,000,000 4,960,618
5.36%, 3/5/97 5,000,000 4,976,178
5.37%, 4/30/97 10,000,000 9,868,733
5.42%, 4/4/97 10,000,000 9,906,656
--------------------------------------------------------------------------------------------------------------------------
FINOVA Capital Corp.:
5.37%, 2/24/97 5,000,000 4,982,846
5.38%, 2/14/97 3,000,000 2,994,172
5.40%, 2/18/97 5,000,000 4,987,250
5.40%, 2/27/97 10,000,000 9,961,217
5.43%, 2/26/97 10,000,000 9,962,257
5.47%, 2/13/97 3,000,000 2,994,600
5.49%, 2/5/97 5,000,000 4,996,950
5.60%, 2/10/97 3,000,000 2,995,800
--------------------------------------------------------------------------------------------------------------------------
Heller Financial, Inc.:
5.41%, 3/17/97 15,000,000 14,900,694
5.42%, 2/6/97 5,000,000 4,996,236
5.45%, 3/20/97 5,000,000 4,964,424
5.45%, 3/21/97 5,000,000 4,963,667
5.46%, 10/10/97(1) 5,000,000 4,999,312
5.55%, 6/2/97(1) 5,000,000 4,999,484
------------
163,378,126
- ---------------------------------------------------------------------------------------------------------------------------------
COMPUTER SOFTWARE--0.5%
First Data Corp., 5.37%, 6/10/97 5,0000,000 4,903,787
- ---------------------------------------------------------------------------------------------------------------------------------
CONGLOMERATES--2.2%
Mitsubishi International Corp.:
5.40%, 3/11/97 10,000,000 9,943,000
5.44%, 2/10/97 11,000,000 10,985,040
------------
20,928,040
</TABLE>
6 Oppenheimer Money Market Fund, Inc.
<PAGE> 7
<TABLE>
<CAPTION>
FACE VALUE
AMOUNT SEE NOTE 1
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
CONSUMER FINANCE--2.1%
Island Finance Puerto Rico, Inc.:
5.32%, 2/26/97 $10,000,000 $ 9,963,056
5.44%, 3/20/97 5,000,000 4,964,489
5.46%, 3/13/97 5,400,000 5,367,240
-----------
20,294,785
- ----------------------------------------------------------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL--9.1%
Associates Corp. of North America, 5.625%, 2/3/97 34,807,000 34,796,123
---------------------------------------------------------------------------------------------------------------------------
Ford Motor Credit Co.:
5.55%, 5/12/97(1) 5,000,000 5,000,492
5.687%, 5/27/97(1) 10,000,000 10,004,233
---------------------------------------------------------------------------------------------------------------------------
General Motors Acceptance Corp.:
5.35%, 3/3/97 3,000,000 2,986,625
5.45%, 2/12/97 7,000,000 6,988,343
5.45%, 2/5/97 7,000,000 6,995,761
5.45%, 4/21/97(1) 10,000,000 9,994,876
5.50%, 2/20/97 7,000,000 6,979,681
7.75%, 4/15/97 3,000,000 3,012,461
-----------
86,758,595
- ----------------------------------------------------------------------------------------------------------------------------------
ELECTRONICS--3.2%
Mitsubishi Electric Finance America, Inc.:
5.36%, 2/12/97(2) 5,600,000 5,590,828
5.36%, 4/2/97(2) 5,000,000 4,955,333
5.37%, 4/16/97(2) 5,000,000 4,944,808
5.40%, 3/19/97(2) 15,000,000 14,896,500
-----------
30,387,469
- ----------------------------------------------------------------------------------------------------------------------------------
HEALTHCARE/SUPPLIES &
SERVICES--1.2%
Columbia/HCA Healthcare Corp.:
5.37%, 4/18/97(2) 7,000,000 6,920,643
5.37%, 5/2/97(2) 5,000,000 4,932,875
-----------
11,853,518
- ----------------------------------------------------------------------------------------------------------------------------------
INDUSTRIAL SERVICES--0.5%
Atlas Copco AB, 5.37%, 3/17/97(2) 5,000,000 4,966,694
- ----------------------------------------------------------------------------------------------------------------------------------
INSURANCE--6.5%
General American Life Insurance Co., 5.87%, 3/3/97(1)(3) 20,000,000 20,000,000
---------------------------------------------------------------------------------------------------------------------------
Jackson National Life Insurance Co.:
5.52%, 3/1/98(1)(3) 30,000,000 30,000,000
5.52%, 8/1/98(1)(3) 5,000,000 5,000,000
---------------------------------------------------------------------------------------------------------------------------
TransAmerica Life Insurance & Annuity Co., 6.082%, 3/22/98(1)(3) 7,000,000 7,000,000
-----------
62,000,000
- ----------------------------------------------------------------------------------------------------------------------------------
MANUFACTURING--0.6%
Rexam PLC, 5.35%, 4/3/97(2) 5,300,000 5,251,954
- ----------------------------------------------------------------------------------------------------------------------------------
OIL-INTEGRATED--3.3%
Repsol International Finance BV:
5.37%, 6/9/97 10,000,000 9,809,067
5.38%, 7/10/97 22,000,000 21,477,243
-----------
31,286,310
</TABLE>
7 Oppenheimer Money Market Fund, Inc.
<PAGE> 8
STATEMENT OF INVESTMENTS (Unaudited) (Continued)
<TABLE>
<CAPTION>
FACE VALUE
AMOUNT SEE NOTE 1
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
SPECIAL PURPOSE
FINANCIAL--22.3%
Asset Backed Capital Finance, Inc.:
5.36%, 2/25/97(2) $ 4,900,000 $ 4,882,491
5.38%, 5/22/97(2) 13,682,000 13,457,083
---------------------------------------------------------------------------------------------------------------------------
Asset Securitization Cooperative Corp.:
5.33%, 3/11/97(2) 5,000,000 4,971,869
5.45%, 3/27/97(2) 19,500,000 19,340,588
---------------------------------------------------------------------------------------------------------------------------
Beta Finance, Inc.:
5.32%, 5/7/97(2) 5,000,000 4,929,806
5.35%, 3/17/97(2) 10,000,000 9,934,611
---------------------------------------------------------------------------------------------------------------------------
CXC, Inc.:
5.32%, 3/12/97(2) 5,000,000 4,971,183
5.34%, 2/18/97(2) 5,000,000 4,987,392
---------------------------------------------------------------------------------------------------------------------------
Enterprise Funding Corp.:
5.32%, 3/10/97(2) 4,466,000 4,441,581
5.34%, 2/26/97(2) 3,961,000 3,946,311
5.36%, 3/25/97(2) 5,000,000 4,961,289
5.37%, 4/10/97(2) 8,040,000 7,958,448
5.37%, 4/29/97(2) 5,000,000 4,935,113
5.375%, 3/13/97(2) 5,429,000 5,396,577
5.38%, 5/2/97(2) 5,031,000 4,963,333
5.40%, 4/14/97(2) 4,949,000 4,895,551
5.40%, 5/19/97(2) 5,000,000 4,919,750
---------------------------------------------------------------------------------------------------------------------------
Falcon Asset Securitization Corp., 5.32%, 2/14/97(2) 10,000,000 9,980,789
---------------------------------------------------------------------------------------------------------------------------
First Deposit Master Trust 1993-3:
5.32%, 2/24/97(2) 10,000,000 9,966,011
5.32%, 2/26/97(2) 9,000,000 8,966,750
5.37%, 4/18/97(2) 5,000,000 4,943,317
---------------------------------------------------------------------------------------------------------------------------
New Center Asset Trust, 5.37%, 4/28/97 5,000,000 4,935,858
---------------------------------------------------------------------------------------------------------------------------
Preferred Receivables Funding Corp., 5.35%, 4/2/97 5,000,000 4,955,417
---------------------------------------------------------------------------------------------------------------------------
RACERS Series 1996-MM-12-3, 5.484%, 12/15/97(1)(3) 5,000,000 5,000,000
---------------------------------------------------------------------------------------------------------------------------
Receivables Capital Corp., 5.70%, 2/6/97(2) 8,190,000 8,183,516
---------------------------------------------------------------------------------------------------------------------------
Sigma Finance, Inc.:
5.31%, 5/19/97(2) 4,000,000 3,936,870
5.32%, 5/6/97(2) 5,000,000 4,930,544
5.33%, 2/3/97(2) 5,000,000 4,998,519
5.37%, 4/15/97(2) 7,900,000 7,813,976
---------------------------------------------------------------------------------------------------------------------------
SMM Trust:
1996-B, 5.55%, 8/4/97(1)(3) 10,000,000 10,000,000
1996-I, 5.488%, 5/29/97(1)(3) 5,000,000 5,000,000
---------------------------------------------------------------------------------------------------------------------------
TIERS Series DCMT 1996-A, 5.514%, 10/15/97(1)(3) 5,000,000 5,000,000
------------
212,504,543
- ----------------------------------------------------------------------------------------------------------------------------------
TELECOMMUNICATIONS-
TECHNOLOGY--1.1%
NYNEX Corp., 5.345%, 3/5/97 10,000,000 9,952,489
-------------
Total Short-Term Notes (Cost $812,648,344) 812,648,344
</TABLE>
8 Oppenheimer Money Market Fund, Inc.
<PAGE> 9
<TABLE>
<CAPTION>
FACE VALUE
AMOUNT SEE NOTE 1
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
U.S. GOVERNMENT AGENCIES--2.6%
---------------------------------------------------------------------------------------------------------------------------
Federal Home Loan Bank, 5.45%, 8/1/97(1) $15,000,000 $ 14,993,438
---------------------------------------------------------------------------------------------------------------------------
Student Loan Marketing Assn., 5.82%, 1/23/98 10,000,000 9,998,537
------------
Total U.S. Government Agencies (Cost $24,991,975) 24,991,975
- ----------------------------------------------------------------------------------------------------------------------------------
FOREIGN GOVERNMENT OBLIGATIONS--3.4%
---------------------------------------------------------------------------------------------------------------------------
Bayerische Landesbank Girozentrale, 5.35%, 7/29/97(1) 10,000,000 10,000,000
---------------------------------------------------------------------------------------------------------------------------
Westdeutsche Landesbank Girozentrale, guaranteeing commercial paper of
Unibanco-Uniao de Bancos Brasileiros S.A.-Grand Cayman:
Series A, 5.37%, 4/7/97 5,000,000 4,951,521
Series A, 5.33%, 6/11/97 12,500,000 12,259,410
Series A, 5.40%, 4/29/97 5,000,000 4,934,750
------------
Total Foreign Government Obligations (Cost $32,145,681) 32,145,681
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENTS, AT VALUE 104.2% 992,760,793
- ----------------------------------------------------------------------------------------------------------------------------------
LIABILITIES IN EXCESS OF OTHER ASSETS (4.2) (40,470,852)
----------- ------------
NET ASSETS 100.0% $952,289,941
=========== ============
</TABLE>
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. 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 January 31, 1997. This
instrument may also have a demand feature which allows the recovery of
principal at any time, or at specified intervals not exceeding one
year, on up to 30 days' notice. Maturity date shown represents
effective maturity based on variable rate and, if applicable, demand
feature.
2. Restricted securities,including those issued in exempt transactions
without registration under the Securities Act of 1933 (the Act),
amounting to $287,583,840, or 30.20% 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 $87,000,000, or 9.14% 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.
9 Oppenheimer Money Market Fund, Inc.
<PAGE> 10
STATEMENT OF ASSETS AND LIABILITIES January 31, 1997 (Unaudited)
<TABLE>
<S> <C>
- -----------------------------------------------------------------------------------------------------------------------------------
ASSETS
Investments, at value--see accompanying statement $ 992,760,793
---------------------------------------------------------------------------------------------------------------------------
Cash 383,079
---------------------------------------------------------------------------------------------------------------------------
Receivables:
Shares of capital stock sold 6,109,917
Interest 2,011,362
---------------------------------------------------------------------------------------------------------------------------
Other 88,074
--------------
Total assets 1,001,353,225
- -----------------------------------------------------------------------------------------------------------------------------------
LIABILITIES
Payables and other liabilities:
Shares of capital stock redeemed 47,231,858
Dividends 1,470,039
Directors' fees 219,384
Other 142,003
--------------
Total liabilities 49,063,284
- -----------------------------------------------------------------------------------------------------------------------------------
NET ASSETS $ 952,289,941
==============
- -----------------------------------------------------------------------------------------------------------------------------------
COMPOSITION OF
NET ASSETS
Par value of shares of capital stock $ 95,245,333
---------------------------------------------------------------------------------------------------------------------------
Additional paid-in capital 857,058,212
---------------------------------------------------------------------------------------------------------------------------
Accumulated net realized loss on investment transactions (13,604)
--------------
Net assets--applicable to 952,453,333 shares of capital stock outstanding $ 952,289,941
==============
- -----------------------------------------------------------------------------------------------------------------------------------
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> 11
STATEMENT OF OPERATIONS For the Six Months Ended January 31, 1997 (Unaudited)
<TABLE>
<S> <C>
- -----------------------------------------------------------------------------------------------------------------------------------
INVESTMENT INCOME
Interest $27,920,975
----------------------------------------------------------------------------------------------------------------------------
EXPENSES
Management fees--Note 3 2,198,090
----------------------------------------------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees--Note 3 1,711,853
----------------------------------------------------------------------------------------------------------------------------
Shareholder reports 362,477
----------------------------------------------------------------------------------------------------------------------------
Registration and filing fees 61,060
----------------------------------------------------------------------------------------------------------------------------
Custodian fees and expenses 38,869
----------------------------------------------------------------------------------------------------------------------------
Directors' fees and expenses--Note 1 27,963
----------------------------------------------------------------------------------------------------------------------------
Legal and auditing fees 26,352
----------------------------------------------------------------------------------------------------------------------------
Insurance expenses 2,894
----------------------------------------------------------------------------------------------------------------------------
Other 51,474
------------
Total expenses 4,481,032
- -----------------------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME 23,439,943
- -----------------------------------------------------------------------------------------------------------------------------------
NET REALIZED GAIN ON INVESTMENTS 2,835
- -----------------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $23,442,778
===========
</TABLE>
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
SIX MONTHS ENDED PERIOD ENDED YEAR ENDED
JANUARY 31, 1997 JULY 31, DECEMBER 31,
(UNAUDITED) 1996(1) 1995
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
OPERATIONS
Net investment income $ 23,439,943 $ 24,508,161 $ 44,370,781
----------------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) 2,835 (156,737) 639,389
-------------- -------------- -------------
Net increase in net assets resulting from operations 23,442,778 24,351,424 45,010,170
- -----------------------------------------------------------------------------------------------------------------------------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS (23,439,943) (24,508,161) (44,968,631)
- -----------------------------------------------------------------------------------------------------------------------------------
CAPITAL STOCK
TRANSACTIONS
Net increase (decrease) in net assets resulting from
capital stock transactions--Note 2 (149,293,142) 283,809,275 (111,066,422)
- -----------------------------------------------------------------------------------------------------------------------------------
NET ASSETS
Total increase (decrease) (149,290,307) 283,652,538 (111,024,883)
----------------------------------------------------------------------------------------------------------------------------
Beginning of period 1,101,580,248 817,927,710 928,952,593
-------------- -------------- -------------
End of period $ 952,289,941 $1,101,580,248 $ 817,927,710
============== ============== =============
</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> 12
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
SIX MONTHS PERIOD
ENDED ENDED
JAN. 31, 1997 JULY 31, YEAR ENDED DECEMBER 31,
(UNAUDITED) 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 (loss) .02 .03 .05 .04 .03 .03
Dividends and distributions
to shareholders (.02) (.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) 2.40% 2.80% 5.40% 3.76% 2.71% 3.47%
----------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(in millions) $952 $1,102 $818 $929 $611 $692
----------------------------------------------------------------------------------------------------------------------------
Average net assets (in millions) $999 $ 901 $855 $804 $653 $811
----------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income 4.67%(3) 4.68%(3) 5.19% 3.79% 2.65% 3.42%
Expenses 0.89%(3) 0.84%(3) 0.90% 0.82% 0.87% 0.88%
</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.
Total returns reflect changes in net investment income only.
3. Annualized.
See accompanying Notes to Financial Statements.
12 Oppenheimer Money Market Fund, Inc.
<PAGE> 13
NOTES TO FINANCIAL STATEMENTS (Unaudited)
- -------------------------------------------------------------------------------
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. 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 six months ended January 31, 1997, a
provision of $1,515 was made for the Fund's projected benefit
obligations, and payments of $8,701 were made to retired directors,
resulting in an accumulated liability of $216,084 at January 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.
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.
13 Oppenheimer Money Market Fund, Inc.
<PAGE> 14
NOTES TO FINANCIAL STATEMENTS (Unaudited) (Continued)
- -------------------------------------------------------------------------------
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>
Six Months Ended January 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 1,040,672,244 $ 1,040,672,244 1,437,146,553 $1,437,146,578 1,772,666,521 $1,772,666,521
Dividends and distributions
reinvested 22,119,136 22,119,136 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 (1,212,084,522) (1,212,084,522) (1,249,040,488) (1,249,040,513) (1,926,240,803) (1,926,240,803)
-------------- --------------- -------------- -------------- -------------- --------------
Net increase (decrease) (149,293,142) $ (149,293,142) 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.
- -------------------------------------------------------------------------------
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, in exchange
for the net assets of $73,705,405 on April 26, 1996. The exchange
qualifies as a tax-free reorganization for federal income tax purposes.
14 Oppenheimer Money Market Fund, Inc.
<PAGE> 15
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 SHAREHOLDER
SERVICING AGENT
OppenheimerFunds Services
- -------------------------------------------------------------------------------
CUSTODIAN OF
PORTFOLIO SECURITIES
Citibank, N.A.
- -------------------------------------------------------------------------------
INDEPENDENT AUDITORS
KPMG Peat Marwick LLP
- -------------------------------------------------------------------------------
LEGAL COUNSEL
Gordon Altman Butowsky Weitzen Shalov & Wein
The financial statements included herein have been taken from the
records of the Fund without examination by the independent auditors.
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.
15 Oppenheimer Money Market Fund, Inc.
<PAGE> 16
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
RS0200.001.0197 March 31, 1997
[PHOTO]
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.
[OPPENHEIMERFUNDS LOGO]
OppenheimerFunds Distributor, Inc.
P.O. Box 5270
Denver, CO 80217-5270
- ------------------
Bulk Rate
U.S. Postage
PAID
Permit No. 469
Denver, CO
- ------------------
