- --------------------------------------------------------------------------------
Semiannual Report January 31, 1998
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OPPENHEIMER
Money Market
Fund, Inc.
[GRAPHIC OMITTED]
[LOGO]
OppenheimerFunds(SM)
THE RIGHT WAY TO INVEST
<PAGE>
Contents
3 President's Letter
4 An Interview
with the Fund's
Manager
7 Statement of
Investments
13 Statement of
Assets and
Liabilities
14 Statement of
Operations
15 Statements of
Changes in
Net Assets
16 Financial Highlights
17 Notes to Financial
Statements
19 Officers and
Directors
20 Information and
Services
Report highlights
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o The U.S. economy is the envy of the world. Inflation is virtually nonexistent,
long-term interest rates have fallen below six percent, the federal budget is
nearly balanced, unemployment is under five percent, and economic growth remains
strong.--Carol Wolf, Fund Manager
- ----------------------------------
Current Yield
- ----------------------------------
For the 7-Day Period Ended
1/31/98
With Without
Compounding(1) Compounding
- ----------------------------------
5.18% 5.05%
- ----------------------------------
In reviewing performance, please remember that past performance does not
guarantee future results. Yields will fluctuate.
An investment in a money market fund is neither insured nor guaranteed by the
U.S. government and there can be no assurance that the fund will be able to
maintain a stable net asset value of $1.00 per share.
(1.) Compounded yields assume reinvestment of dividends.
2 Oppenheimer Money Market Fund, Inc.
<PAGE>
Dear shareholder,
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[PHOTO]
Bridget A. Macaskill
President
Oppenheimer
Money Market Fund, Inc.
These have been very positive times for many American investors. The U.S.
economy has continued to grow at a moderate pace, unemployment has fallen to its
lowest level in 30 years and inflation has also fallen to a record low. In fact,
long-term interest rates have fallen to their lowest level since the government
began issuing 30-year Treasury bonds in 1977.
What benefits does this provide to the average American? First, when
unemployment levels are low, many individuals tend to feel a greater sense of
job security and can command higher wages because there are fewer unemployed
workers vying for their jobs. Second, many homeowners are opting to refinance
their existing home mortgage loans and take advantage of lower financing rates.
And third, because wages are increasing faster than the rate of inflation, a
paycheck may stretch further and investors, as consumers, are able to enjoy a
higher level of disposable income. This extra income can be put to use in many
ways, including allocating more money to investment opportunities.
Some industry analysts have tempered such positive news by suggesting that
if the rate of inflation falls any lower, it might actually trigger a period of
deflation, where we see the prices of American goods and services decline. While
lower prices may sound like positive news, in reality it isn't: When prices fall
too low, it erodes the value of those goods to the producer. That is, when
economic conditions force a decrease in the price of goods, companies have to
sell more of those items in order to make the same amount of profit, which
translates into greater difficulties for corporations to improve their bottom
lines.
At OppenheimerFunds, we do not believe we will see a period of deflation
in the United States. The fundamental factors that have driven the U.S. market
still appear to be in place: an economy that's in its eighth year of expansion
with moderate growth, low unemployment, virtually no inflation and low interest
rates. However, because of economic uncertainties in other parts of the world,
particularly Asia, we expect to see slower growth for stocks in 1998 and a year
in which double-digit returns from the equity markets are unlikely. It's also
possible that we may see investors favor the fixed, more secure interest
payments offered from the bond markets.
In closing, we'd like to reassure you that as professional money managers,
we continue to keep a watchful eye on these situations and are closely
monitoring your fund's investments. In times like these, your financial advisor
can be of invaluable assistance to you in helping review your financial plan and
guide your investments accordingly.
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.
/s/ Bridget A. Macaskill
Bridget A. Macaskill
February 23, 1998
3 Oppenheimer Money Market Fund, Inc.
<PAGE>
An interview with your Fund's manager
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How has the Fund performed over the past six months?
Oppenheimer Money Market Fund, Inc. has maintained a stable share price of $1.00
per share, while continuing to provide a steady stream of monthly income. In
general, U.S. money market instruments continued to offer investors
characteristically high levels of security and liquidity, providing a safe haven
in the face of world stock market volatility during the past few months. For the
7-day period ending January 31, 1998, the Fund's compounded current yield was
5.18%. Without compounding, the corresponding yield was 5.05%.(1)
What factors have affected the Fund's performance?
The Fund's performance is being driven by economic conditions and interest rate
changes in the United States and around the world. Money market yields are
generally linked to interest rates on relatively short-term corporate debt. As
these short-term interest rates rise, money market investors enjoy higher rates
of return. Although long-term and short-term interest rates typically move in
the same direction, recent global economic factors have driven short-term rates
higher while long-term rates have fallen.
The main reason is that Japanese companies, the world's second largest issuer of
short-term debt, continue to experience financial difficulties. Because
investors perceive a lowered credit quality there, issuers have been required to
pay higher interest rates to compensate for the additional risk. To compete,
American issuers in both the government and corporate sectors have raised rates
on short-term instruments. As a result, despite a drop in long-term rates
arising from increased global demand for U.S. Treasury bonds, U.S. money market
yields have actually been rising recently, generating slightly higher rates of
return.
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"We don't use predictions of future interest rates to set our investment
strategy."
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4 Oppenheimer Money Market Fund, Inc.
<PAGE>
How have you positioned the Fund to deal with economic conditions and trends?
We don't use predictions of future interest rates to set our investment
strategy. Instead, we "ladder" the portfolio, with some securities maturing in a
few days, some maturing in a month, some maturing in two months and so on. With
a relatively broad maturity spectrum, the portfolio is widely diversified and
able to take advantage of a variety of mar ket conditions. This diversification
is intended to enable the Fund to provide a combination of liquidity and safety
of principal during times of volatility in other markets.
What is your outlook for the future?
All things considered, the U.S. economy is the envy of the world. Inflation is
virtually nonexistent, long-term interest rates have fallen below six percent,
the federal budget is nearly balanced, unemployment is under five percent, and
economic growth continues strong. Even the devaluation of Asia's currencies and
the uncertain business environment in that region may have the beneficial effect
of preventing our economy from overheating.
Today's U.S. blue chip corporations offer a wide selection of commercial
paper and short-term notes that are currently paying attractive yields. At the
same time, with the current backdrop of heightened credit concerns, our strategy
remains constant: to invest in securities that do not present significant credit
risk. We believe our disciplined approach can help continue to reward investors
with a competitive income stream and safety of principal...and continue to make
Oppenheimer Money Market Fund, Inc. part of The Right Way to Invest.
(1.) Compounded yields assume reinvestment of dividends.
5 Oppenheimer Money Market Fund, Inc.
<PAGE>
Financials
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6 Oppenheimer Money Market Fund, Inc.
<PAGE>
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Statement of Investments January 31, 1998 (Unaudited)
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<TABLE>
<CAPTION>
Face Value
Amount See Note 1
==============================================================================================
<S> <C> <C>
Certificates of Deposit--1.3%
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Deutsche Bank AG, 5.65%, 1/22/99 $ 10,000,000 $ 10,000,000
- ----------------------------------------------------------------------------------------------
Societe Generale, 6.35%, 4/15/98 5,000,000 5,004,464
------------
Total Certificates of Deposit 15,004,464
==============================================================================================
Direct Bank Obligations--5.1%
- ----------------------------------------------------------------------------------------------
Abbey National North America Corp.:
5.55%, 2/25/98 10,000,000 9,963,000
5.55%, 3/3/98 5,000,000 4,976,875
- ----------------------------------------------------------------------------------------------
Bank of Scotland Treasury Services, 5.52%, 2/2/98 15,000,000 14,997,700
- ----------------------------------------------------------------------------------------------
Bankers Trust Co., New York, 5.71%, 4/15/98(1) 10,000,000 10,000,000
- ----------------------------------------------------------------------------------------------
FCC National Bank, 5.62%, 2/20/98(1) 5,000,000 4,999,872
- ----------------------------------------------------------------------------------------------
National Westminster Bank of Canada, 5.59%, 4/30/98 15,000,000 14,795,107
------------
Total Direct Bank Obligations 59,732,554
==============================================================================================
Letters of Credit--14.9%
- ----------------------------------------------------------------------------------------------
Bank of America, guaranteeing commercial paper of:
Formosa Plastics Corp., USA, Series B, 5.55%, 3/19/98 20,000,000 19,858,167
Formosa Plastics Corp., USA, Series B, 5.55%, 5/5/98 14,000,000 13,799,275
- ----------------------------------------------------------------------------------------------
Bank One Indiana, guaranteeing commercial paper of
Primex Funding Corp., 5.56%, 2/2/98(1)(2) 5,000,000 5,000,000
- ----------------------------------------------------------------------------------------------
Barclays Bank PLC, guaranteeing commercial paper of:
Banco Bradesco SA, Grand Cayman Branch, Series A, 5.56%, 3/3/98 10,000,000 9,953,667
Banco Bradesco SA, Grand Cayman Branch, Series A, 5.72%, 6/17/98 5,000,000 4,891,956
Banco de Credito Nacional SA, Series A, 5.40%, 7/6/98 5,000,000 4,883,750
Banco Nacional de Mexico SA, Series B, 5.38%, 7/20/98 10,000,000 9,747,439
Banco Real SA, Grand Cayman Branch, Series A, 5.63%, 4/20/98 5,000,000 4,939,008
Petroleo Brasiliero SA Petrobras II, Series D, 5.55%, 3/30/98 5,000,000 4,956,062
Petroleo Brasiliero SA Petrobras, Series A, 5.69%, 5/15/98 6,000,000 5,902,322
- ----------------------------------------------------------------------------------------------
Bayerische Vereinsche AG, guaranteeing commercial paper of
Garanti Funding Corp. II, Series B, 5.38%, 7/14/98 5,000,000 4,878,203
- ----------------------------------------------------------------------------------------------
Credit Suisse, guaranteeing commercial paper of:
CEMEX, SA de C.V., Series B, 5.45%, 5/2/98 10,000,000 9,824,389
Daewoo International Corp., 5.55%, 3/27/98 7,600,000 7,536,535
Daewoo International Corp., 5.63%, 4/22/98 5,000,000 4,937,444
Minmetals Capitals & Securities, Inc., 5.41%, 7/23/98 10,000,000 9,741,522
Minmetals Capitals & Securities, Inc., 5.57%, 3/4/98 5,000,000 4,976,018
PEMEX Capital, Inc., Series A, 5.68%, 6/4/98 18,600,000 18,244,202
- ----------------------------------------------------------------------------------------------
Societe Generale, guaranteeing commercial paper of:
Nacional Financiera SNC, Series A, 5.54%, 2/18/98 6,000,000 5,984,247
Nacional Financiera SNC, Series A, 5.675%, 5/14/98 17,000,000 16,726,654
Nacional Financiera SNC, Series B, 5.535%, 2/17/98 8,000,000 7,980,320
------------
Total Letters of Credit 174,761,180
</TABLE>
7 Oppenheimer Money Market Fund, Inc.
<PAGE>
- --------------------------------------------------------------------------------
Statement of Investments (Unaudited) (Continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Face Value
Amount See Note 1
==============================================================================================
<S> <C> <C>
Short-Term Notes--76.5%
- ----------------------------------------------------------------------------------------------
Automotive--3.5% BMW US Capital Corp.:
5.41%, 4/24/98 $ 5,000,000 $ 4,938,272
5.57%, 4/14/98 5,000,000 4,944,300
5.64%, 2/2/98 30,700,000 30,695,203
------------
40,577,775
- ----------------------------------------------------------------------------------------------
Bank Holding Companies--1.5%
NationsBank Corp.:
5.39%, 7/30/98 5,000,000 4,865,999
6.056%, 5/26/98(1) 12,000,000 12,012,066
------------
16,878,065
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Banks--0.4%
First Chicago Financial Corp., 5.66%, 5/28/98 5,000,000 4,908,811
- ----------------------------------------------------------------------------------------------
Beverages--3.7%
Coca-Cola Enterprises, Inc.:
5.48%, 4/23/98(2) 10,000,000 9,876,925
5.58%, 4/14/98(2) 9,000,000 8,899,560
5.70%, 3/27/98(2) 10,000,000 9,914,500
5.71%, 4/8/98(2) 5,000,000 4,947,658
5.80%, 4/3/98(2) 10,000,000 9,901,722
------------
43,540,365
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Broker/Dealers--17.4%
Bear Stearns Cos., Inc.:
5.57%, 2/18/98 4,000,000 3,989,479
5.609%, 7/10/98(1) 5,000,000 5,000,000
5.75%, 4/1/98(1) 10,000,000 10,000,000
5.821%, 3/23/98(1) 15,000,000 15,004,251
- ----------------------------------------------------------------------------------------------
Goldman Sachs Group, LP, 5.668%, 10/2/98(1) 5,000,000 5,000,000
- ----------------------------------------------------------------------------------------------
Lehman Brothers Holdings, Inc.:
5.226%, 6/18/98(1) 5,000,000 5,005,937
5.42%, 6/29/98 5,000,000 4,888,589
5.625%, 3/27/98(1) 5,000,000 5,001,473
5.627%, 8/14/98(1) 13,000,000 13,000,000
5.64%, 3/13/98 5,000,000 4,968,667
5.73%, 5/22/98 4,000,000 3,929,967
- ----------------------------------------------------------------------------------------------
Merrill Lynch & Co., Inc.:
5.555%, 7/20/98(1) 5,000,000 5,000,000
5.57%, 2/19/98 5,000,000 4,986,075
5.68%, 3/18/98(1) 5,000,000 4,999,879
5.68%, 9/22/98(1) 10,000,000 9,999,377
5.70%, 4/16/98 10,000,000 9,882,833
</TABLE>
8 Oppenheimer Money Market Fund, Inc.
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Face Value
Amount See Note 1
- ----------------------------------------------------------------------------------------------
<S> <C> <C>
Broker/Dealers (continued)
Morgan Stanley Group, Inc., 5.604%, 3/15/98(1) $ 7,000,000 $ 7,000,000
- ----------------------------------------------------------------------------------------------
Morgan Stanley, Dean Witter, Discover & Co., 6.75%, 3/24/98(1) 35,000,000 35,000,000
- ----------------------------------------------------------------------------------------------
Republic New York Securities Corp., 7%, 4/24/98(1) 12,000,000 12,000,000
- ----------------------------------------------------------------------------------------------
Salomon Smith Barney, Inc.:
5.70%, 4/17/98 5,000,000 4,940,625
5.74%, 5/26/98 5,000,000 4,909,117
5.77%, 3/30/98 5,000,000 4,954,321
5.801%, 11/2/98(1) 10,000,000 10,000,000
5.884%, 10/20/98(1) 12,000,000 12,000,000
6.36%, 4/1/98 2,000,000 2,001,222
------------
203,461,812
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Chemicals--0.4%
Henkel Corp., 5.56%, 3/13/98(2) 5,000,000 4,969,111
- ----------------------------------------------------------------------------------------------
Commercial Finance--7.0%
CIT Group Holdings, Inc., 5.603%, 3/11/98(1) 10,000,000 10,000,000
- ----------------------------------------------------------------------------------------------
FINOVA Capital Corp.:
5.57%, 3/20/98 10,000,000 9,926,367
5.60%, 3/30/98 10,000,000 9,911,333
5.61%, 4/29/98 5,000,000 4,932,212
5.65%, 4/6/98 5,000,000 4,949,778
5.71%, 3/24/98 3,000,000 2,975,732
5.60%, 4/14/98 7,000,000 6,921,600
- ----------------------------------------------------------------------------------------------
Heller Financial, Inc.:
5.62%, 6/19/98 8,000,000 7,827,653
5.65%, 5/27/98 5,000,000 4,909,757
5.70%, 10/16/98(1) 5,000,000 4,999,648
5.90%, 3/30/98 5,000,000 4,953,292
6%, 4/2/98 10,000,000 9,900,000
------------
82,207,372
- ----------------------------------------------------------------------------------------------
Computer Software/Services--0.8%
First Data Corp., 5.67%, 5/19/98 10,000,000 9,831,475
- ----------------------------------------------------------------------------------------------
Consumer Finance--0.4%
Island Finance Puerto Rico, Inc., 5.68%, 3/31/98 5,000,000 4,954,244
- ----------------------------------------------------------------------------------------------
Diversified Financial--5.9%
General Electric Capital Corp.:
5.55%, 2/23/98 7,490,000 7,464,596
5.56%, 3/11/98 5,000,000 4,970,656
5.56%, 3/18/98 5,000,000 4,965,250
5.66%, 4/8/98 5,000,000 4,948,117
- ----------------------------------------------------------------------------------------------
General Electric Capital Services, 5.55%, 3/2/98 10,000,000 9,955,292
</TABLE>
9 Oppenheimer Money Market Fund, Inc.
<PAGE>
- --------------------------------------------------------------------------------
Statement of Investments (Unaudited) (Continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Face Value
Amount See Note 1
- ----------------------------------------------------------------------------------------------
<S> <C> <C>
Diversified Financial (continued)
General Motors Acceptance Corp.:
5.58%, 2/25/98 $ 7,000,000 $ 6,973,960
5.60%, 3/27/98 5,000,000 4,958,300
5.60%, 4/13/98 5,000,000 4,944,679
5.75%, 4/21/98(1) 15,000,000 14,998,336
- ----------------------------------------------------------------------------------------------
Prudential Funding Corp., 5.685%, 5/5/98(1) 5,000,000 4,999,693
------------
69,178,879
- ----------------------------------------------------------------------------------------------
Electronics--0.4%
Avnet, Inc., 5.75%, 3/27/98 5,000,000 4,956,875
- ----------------------------------------------------------------------------------------------
Industrial Services--2.5%
Atlas Copco AB:
5.47%, 4/30/98(2) 3,000,000 2,959,667
5.49%, 4/28/98(2) 6,000,000 5,921,310
5.50%, 4/21/98(2) 8,000,000 7,903,444
5.50%, 4/29/98(2) 8,500,000 8,387,021
5.56%, 3/20/98(2) 4,000,000 3,970,964
------------
29,142,406
- ----------------------------------------------------------------------------------------------
Insurance--8.7%
General American Life Insurance Co., 6.14%, 2/2/98(1) 45,000,000 45,000,000
- ----------------------------------------------------------------------------------------------
Jackson National Life Insurance Co.:
5.743%, 3/1/98(1) 30,000,000 30,000,000
5.743%, 8/1/98(1) 5,000,000 5,000,000
- ----------------------------------------------------------------------------------------------
Principal Mutual Life Insurance Co., 5.753%, 2/2/98(1)(3) 5,000,000 5,000,000
- ----------------------------------------------------------------------------------------------
TransAmerica Life Insurance & Annuity Co., 5.723%, 3/22/98(1) 7,000,000 7,000,000
- ----------------------------------------------------------------------------------------------
Travelers Insurance Co., 5.743%, 10/3/98(1)(3) 10,000,000 10,000,000
------------
102,000,000
- ----------------------------------------------------------------------------------------------
Leasing & Factoring--2.3%
American Honda Finance Corp.:
5.47%, 4/16/98 10,000,000 9,887,561
5.625%, 1/20/99(1)(2) 7,000,000 7,000,000
5.719%, 7/8/98(1)(2) 10,000,000 10,000,000
------------
26,887,561
- ----------------------------------------------------------------------------------------------
Metals/Mining--1.3%
Rio Tinto America, Inc., 5.52%, 2/4/98(2) 15,000,000 14,993,100
- ----------------------------------------------------------------------------------------------
Nondurable Household Goods--3.0%
Newell Co., 5.65%, 2/2/98(2) 35,000,000 34,994,507
</TABLE>
10 Oppenheimer Money Market Fund, Inc.
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Face Value
Amount See Note 1
- ----------------------------------------------------------------------------------------------
<S> <C> <C>
Oil-Integrated--1.2%
Fina Oil & Chemical Co.:
5.70%, 4/10/98(2) $ 5,000,000 $ 4,946,167
5.78%, 3/26/98(2) 9,000,000 8,923,415
------------
13,869,582
- ----------------------------------------------------------------------------------------------
Special Purpose Financial--16.1%
Asset Backed Capital Finance, Inc.:
5.58%, 2/2/98(2) 2,700,000 2,699,581
5.60%, 2/9/98(2) 8,000,000 7,990,044
5.60%, 4/1/98(2) 5,400,000 5,349,201
5.72%, 3/16/98(1)(3) 5,000,000 4,999,736
5.73%, 11/23/98(1)(3) 6,000,000 6,000,000
- ----------------------------------------------------------------------------------------------
Beta Finance, Inc.:
5.54%, 2/17/98(2) 5,000,000 4,987,689
5.54%, 2/25/98(2) 7,000,000 6,974,147
5.55%, 2/27/98(2) 8,000,000 7,967,876
5.56%, 3/12/98(2) 10,000,000 9,939,550
5.56%, 3/16/98(2) 5,000,000 4,966,794
5.56%, 3/3/98(2) 10,000,000 9,953,667
5.57%, 4/29/98(2) 4,000,000 3,946,157
- ----------------------------------------------------------------------------------------------
Cooperative Assn. of Tractor Dealers, Series A:
5.47%, 4/20/98 6,300,000 6,225,334
5.59%, 4/9/98 6,200,000 6,135,498
5.95%, 2/20/98 5,000,000 4,984,299
- ----------------------------------------------------------------------------------------------
Corporate Asset Funding Co., Inc., 5.65%, 2/2/98(2) 11,500,000 11,498,195
- ----------------------------------------------------------------------------------------------
CXC, Inc.:
5.43%, 5/22/98(2) 5,000,000 4,917,042
5.57%, 3/16/98(2) 5,000,000 4,966,735
5.68%, 3/26/98(2) 5,000,000 4,958,189
5.69%, 4/29/98(2) 10,000,000 9,866,358
- ----------------------------------------------------------------------------------------------
Enterprise Funding Corp.:
5.54%, 2/17/98(2) 7,000,000 6,982,764
5.56%, 2/9/98(2) 5,116,000 5,109,679
5.70%, 6/26/98(2) 5,128,000 5,010,270
- ----------------------------------------------------------------------------------------------
Preferred Receivables Funding Corp.:
5.55%, 2/17/98(2) 6,000,000 5,985,200
5.55%, 7/6/98(2) 5,450,000 5,319,768
5.56%, 2/23/98(2) 5,000,000 4,983,011
5.72%, 5/13/98(2) 5,450,000 5,362,540
- ----------------------------------------------------------------------------------------------
Sigma Finance, Inc.:
5.58%, 2/25/98(2) 5,000,000 4,981,400
5.58%, 3/19/98(2) 11,500,000 11,418,005
5.58%, 4/14/98(2) 3,500,000 3,460,940
------------
187,939,669
------------
Total Short-Term Notes 895,291,609
</TABLE>
11 Oppenheimer Money Market Fund, Inc.
<PAGE>
- --------------------------------------------------------------------------------
Statement of Investments (Unaudited) (Continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Face Value
Amount See Note 1
==============================================================================================
<S> <C> <C>
Foreign Government Obligations--1.3%
- -----------------------------------------------------------------------------------------------
Finnish Export Credit Ltd.:
5.55%, 7/15/98 $ 10,000,000 $ 9,747,167
5.56%, 7/7/98 5,000,000 4,879,533
--------------
Total Foreign Government Obligations 14,626,700
- -----------------------------------------------------------------------------------------------
Total Investments, at Value 99.1% 1,159,416,507
- -----------------------------------------------------------------------------------------------
Other Assets Net of Liabilities 0.9 10,194,606
------------ --------------
Net Assets 100.0% $1,169,611,113
============ ==============
</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, 1998. 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 exempt transaction without registration under the
Securities Act of 1933. Such securities amount to $323,103,873, or 27.62% 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 $25,999,736, or 2.22% 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.
12 Oppenheimer Money Market Fund, Inc.
<PAGE>
- --------------------------------------------------------------------------------
Statement of Assets and Liabilities January 31, 1998 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
==============================================================================================
<S> <C>
Assets
Investments, at value--see accompanying statement $1,159,416,507
- ----------------------------------------------------------------------------------------------
Cash 2,732,600
- ----------------------------------------------------------------------------------------------
Receivables:
Shares of capital stock sold 65,413,435
Interest 1,673,577
- ----------------------------------------------------------------------------------------------
Other 21,537
--------------
Total assets 1,229,257,656
==============================================================================================
Liabilities
Payables and other liabilities:
Shares of capital stock redeemed 56,912,946
Dividends 1,801,511
Transfer and shareholder servicing agent fees 460,238
Shareholder reports 209,990
Directors' fees--Note 1 188,826
Other 73,032
--------------
Total liabilities 59,646,543
==============================================================================================
Net Assets $1,169,611,113
==============
==============================================================================================
Composition of Net Assets
Par value of shares of capital stock $ 116,976,009
- ----------------------------------------------------------------------------------------------
Additional paid-in capital 1,052,634,300
- ----------------------------------------------------------------------------------------------
Accumulated net realized gain on investment transactions 804
--------------
Net assets--applicable to 1,169,760,086 shares of capital stock outstanding $1,169,611,113
==============
==============================================================================================
Net Asset Value, Redemption Price and Offering Price Per Share $1.00
</TABLE>
See accompanying Notes to Financial Statements.
13 Oppenheimer Money Market Fund, Inc.
<PAGE>
- -------------------------------------------------------------------------------
Statement of Operations For the Six Months Ended January 31, 1998 (Unaudited)
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
=============================================================================================
<S> <C>
Investment Income
Interest $31,705,588
=============================================================================================
Expenses
Management fees--Note 3 2,373,177
- ---------------------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees--Note 3 1,983,446
- ---------------------------------------------------------------------------------------------
Shareholder reports 233,961
- ---------------------------------------------------------------------------------------------
Custodian fees and expenses 65,061
- ---------------------------------------------------------------------------------------------
Directors' fees and expenses--Note 1 56,036
- ---------------------------------------------------------------------------------------------
Legal and auditing fees 36,394
- ---------------------------------------------------------------------------------------------
Registration and filing fees 24,344
- ---------------------------------------------------------------------------------------------
Insurance expenses 5,479
- ---------------------------------------------------------------------------------------------
Other 33,422
-----------
Total expenses 4,811,320
=============================================================================================
Net Investment Income 26,894,268
=============================================================================================
Net Realized Gain on Investments 449
=============================================================================================
Net Increase in Net Assets Resulting from Operations $26,894,717
===========
</TABLE>
See accompanying Notes to Financial Statements.
14 Oppenheimer Money Market Fund, Inc.
<PAGE>
- --------------------------------------------------------------------------------
Statements of Changes in Net Assets
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months Ended
January 31, 1998 Year Ended
(Unaudited) July 31, 1997
=========================================================================================================
<S> <C> <C>
Operations
Net investment income $ 26,894,268 $ 47,826,078
- ---------------------------------------------------------------------------------------------------------
Net realized gain 449 16,805
- ---------------------------------------------------------------------------------------------------------
Net increase in net assets resulting from operations 26,894,717 47,842,883
=========================================================================================================
Dividends and Distributions to Shareholders (26,894,268) (47,826,078)
=========================================================================================================
Capital Stock Transactions
Net increase (decrease) in net assets resulting from capital
stock transactions--Note 2 155,670,507 (87,656,896)
=========================================================================================================
Net Assets
Total increase (decrease) 155,670,956 (87,640,091)
- ---------------------------------------------------------------------------------------------------------
Beginning of period 1,013,940,157 1,101,580,248
-------------- --------------
End of period $1,169,611,113 $1,013,940,157
============== ==============
</TABLE>
See accompanying Notes to Financial Statements.
15 Oppenheimer Money Market Fund, Inc.
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months
Ended
January 31,
1998 Year Ended July 31, Year Ended December 31,
(Unaudited) 1997 1996(1) 1995 1994 1993 1992
====================================================================================================================
<S> <C> <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 $1.00
- -------------------------------------------------------------------------------------------------------------------
Income from investment operations:
Net investment income and
net realized gain .02 .05 .03 .05 .04 .03 .03
Dividends and distributions
to shareholders (.02) (.05) (.03) (.05) (.04) (.03) (.03)
- -------------------------------------------------------------------------------------------------------------------
Net asset value, end
of period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
===== ===== ===== ===== ===== ===== =====
===================================================================================================================
Total Return(2) 2.52% 4.83% 2.80% 5.40% 3.76% 2.71% 3.47%
===================================================================================================================
Ratios/Supplemental Data:
Net assets, end of period
(in millions) $1,170 $1,014 $1,102 $818 $929 $611 $692
- -------------------------------------------------------------------------------------------------------------------
Average net assets
(in millions) $1,084 $1,011 $901 $855 $804 $653 $811
- -------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income 4.92%(3) 4.73% 4.68%(3) 5.19% 3.79% 2.65% 3.42%
Expenses 0.88%(3) 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.
3. Annualized.
See accompanying Notes to Financial Statements.
16 Oppenheimer Money Market Fund, Inc.
<PAGE>
- --------------------------------------------------------------------------------
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 by
investing in "money market" securities meeting specific credit quality
standards. The Fund's investment advisor is OppenheimerFunds, Inc. (the
Manager). The following is a summary of significant accounting policies
consistently followed by the Fund.
- --------------------------------------------------------------------------------
Investment Valuation. Portfolio securities are valued on the basis of amortized
cost, which approximates market value.
- --------------------------------------------------------------------------------
Repurchase Agreements. The Fund requires the custodian to take possession, to
have legally segregated in the Federal Reserve Book Entry System or to have
segregated within the custodian's vault, all securities held as collateral for
repurchase agreements. The market value of the underlying securities is required
to be at least 102% of the resale price at the time of purchase. If the seller
of the agreement defaults and the value of the collateral declines, or if the
seller enters an insolvency proceeding, realization of the value of the
collateral by the Fund may be delayed or limited.
- --------------------------------------------------------------------------------
Federal Taxes. The Fund intends to continue to comply with provisions of the
Internal Revenue Code applicable to regulated investment companies and to
distribute all of its taxable income to shareholders. Therefore, no federal
income or excise tax provision is required.
- --------------------------------------------------------------------------------
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, 1998, a credit in the provision of $25,489 was made for the
Fund's projected benefit obligations resulting in an accumulated liability of
$183,489 at January 31, 1998.
- --------------------------------------------------------------------------------
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.
17 Oppenheimer Money Market Fund, Inc.
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements (Unaudited) (Continued)
- --------------------------------------------------------------------------------
================================================================================
1. Significant Accounting Policies (continued)
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.
================================================================================
2. Capital Stock
The Fund has authorized 5 billion shares of $0.10 par value capital stock.
Transactions in shares of capital stock were as follows:
<TABLE>
<CAPTION>
Six Months Ended January 31, 1998 Year Ended July 31, 1997
--------------------------------- ------------------------------------
Shares Amount Shares Amount
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Sold 1,523,462,137 $ 1,523,462,137 2,384,396,754 $ 2,384,396,754
Dividends and distributions
reinvested 25,335,942 25,335,942 45,124,419 45,124,419
Redeemed (1,393,127,572) (1,393,127,572) (2,517,178,069) (2,517,178,069)
--------------- ---------------- -------------- ----------------
Net increase (decrease) 155,670,507 $ 155,670,507 (87,656,896) $ (87,656,896)
=============== ================ ============== ================
</TABLE>
================================================================================
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% of the first
$500 million of average annual net assets, 0.425% of the next $500 million,
0.40% of the next $500 million, and 0.375% of average annual 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.
18 Oppenheimer Money Market Fund, Inc.
<PAGE>
- --------------------------------------------------------------------------------
Oppenheimer Money Market Fund, Inc.
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
================================================================================
<S> <C>
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 Advisor OppenheimerFunds, Inc.
================================================================================
Distributor OppenheimerFunds Distributor, Inc.
================================================================================
Transfer and Shareholder OppenheimerFunds Services
Servicing Agent
================================================================================
Custodian of Citibank, N.A.
Portfolio Securities
================================================================================
Independent Auditors KPMG Peat Marwick LLP
================================================================================
Legal Counsel Gordon Altman Butowsky Weitzen Shalov & Wein
The financial statements included herein have been taken
from the records of the Fund without examination of 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.
</TABLE>
19 Oppenheimer Money Market Fund, Inc.
<PAGE>
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
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, or visit us at our website at
www.oppenheimerfunds.com--we're here to help.
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
Mon-Fri 8:30am-8pm ET
- --------------------------------------------------------------------------------
1-800-852-8457
- --------------------------------------------------------------------------------
PhoneLink
24-hr automated information
and automated transactions
- --------------------------------------------------------------------------------
1-800-533-3310
- --------------------------------------------------------------------------------
Telecommunication Device
for the Deaf (TDD)
Mon-Fri 8:30am-2pm 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
- --------------------------------------------------------------------------------
RS0200.001.0198 April 1, 1998
[LOGO] OppenheimerFunds(SM)
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