-----------------------------------------------
Annual Report July 31, 1999
-----------------------------------------------
O P P E N H E I M E R
Money Market
Fund, Inc.
[Photo of Checkbook Register]
[OppenheimerFunds Logo]
OppenheimerFunds(R)
THE RIGHT WAY TO INVEST
<PAGE>
Report highlights
- --------------------------------------------------------------------------------
[Begin: Sidebar Text]
Contents
3 President's Letter
5 An Interview
with Your Fund's Manager
- --------------------------------
8 Financial
Statements
19 Independent
Auditors' Report
- --------------------------------
20 Federal
Income Tax
Information
21 Officers and
Directors
24 Information and Services
[End: Sidebar Text]
o Following the Federal Reserve's short-term interest rate increase in June,
money market yields rose about 10 basis points to reflect the new
environment.
o The current question centers around whether or not we have seen the last
interest rate hike for the year.
o We expect slower growth in
the United States for the
remainder of 1999.
Current Yield
For the 7-Day Period
Ended 7/31/99
Class A
With Without
Compounding(1) Compounding
- -------------------------------
4.48% 4.39%
- -------------------------------
In reviewing performance, please remember that past performance does
not guarantee future results. Yields will fluctuate. An investment in the Fund
is not insured nor guaranteed by the Federal Deposit Insurance Corporation or
any other government agency. Although the Fund seeks to preserve the value of
your investment at $1.00 per share, it is possible to lose money by investing
in the Fund.
1. Compounded yields assume reinvestment of dividends.
2 Oppenheimer Money Market Fund, Inc.
<PAGE>
Dear shareholder,
- --------------------------------------------------------------------------------
[Photo of Bridget A. Macaskill]
Bridget A. Macaskill
President
Oppenheimer
Money Market Fund, Inc.
In many ways, the 1999 investment environment has, so far, unfolded as many
expected it would, producing both attractive opportunities and formidable
challenges for investors.
On the economic front, early worries about the effects of global weakness
in the wake of last year's credit and currency crises have abated. Instead, as
many economies around the world begin to strengthen, concerns now center around
whether the U.S. economy may be growing too quickly. Throughout the year,
consumers in the United States have continued to spend and borrow heavily, more
than offsetting any temporary slowdown in the industrial and export sectors.
The economy's strength has not gone unnoticed by the nation's monetary
policymakers. In an effort to ward off emerging inflationary pressures, the
Federal Reserve Board increased short-term interest rates this past summer.
Market reaction to robust economic growth has been mixed. The U.S. bond
market has generally declined, as fixed income investors became increasingly
concerned about the effects of rising interest rates.
In the stock market, the performance of large-capitalization growth
stocks, which has driven the market's advance over the past few years, has
begun to moderate, and many previously out-of-favor value-oriented, mid-cap and
small-cap stocks have rallied. At the same time, a healthy percentage of
actively managed, diversified portfolios have once again begun to outperform
unmanaged stock indices such as Standard & Poor's 500.
(over, please)
3 Oppenheimer Money Market Fund, Inc,
<PAGE>
At OppenheimerFunds, we applaud the Fed's pre-emptive strike against
inflation. In our view, history has repeatedly demonstrated that most
financial assets do best in a low-inflation environment. What's more, we
believe that the move to higher interest rates should be temporary.
One recent development is quite troublesome to us however: the increasing
popularity of "day trading" among individuals seeking to make fast money in a
volatile stock market. In our opinion, day trading is not investing, it is
gambling. Experience proves that without extensive research and analysis,
attempting to time short-term price swings is a fool's errand. Instead, we
continue to encourage investors to maintain a long-term perspective that is
measured in years, not days.
Finally, while we remain alert to the potential impact of the Y2K issue,
we are encouraged by the progress made in addressing the matter. At
OppenheimerFunds, our shareholder accounting systems are already Y2K compliant,
and we have successfully participated in all required industry-wide tests. We
intend to continue re-testing our systems in order to help further protect
against any potential problems. After all, whether in our computer accounting
systems or the financial markets, managing risk is an important part of what
makes OppenheimerFunds The Right Way to Invest.
Sincerely,
/s/ Bridget A. Macaskill
Bridget A. Macaskill
August 20, 1999
4 Oppenheimer Money Market Fund, Inc.
<PAGE>
An interview with your Fund's manager
- --------------------------------------------------------------------------------
How has the Fund performed over the past year?
Oppenheimer Money Market Fund, Inc., which invests in certificates of deposit,
letters of credit, commercial paper, floating rate notes and other money market
instruments, produced returns that reflected a dramatically changing economic
environment. For the fiscal year that ended July 31, 1999, Oppenheimer Money
Market Fund, Inc. produced a compounded annual yield of 4.63%. Without
compounding, the corresponding yield was 4.52%. The seven-day annualized yields,
with and without compounding, on July 31, 1999, were 4.48% and 4.39%,
respectively.(1) It is important to remember that 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 $1.00 share price in the future.
What economic factors impacted the portfolio?
The fiscal year that ended July 31, 1999, encompassed two very different
economic pictures. The first picture included the fear of global recession and
deflation, which began with the Asian financial crisis in 1997 and intensified
in the summer of 1998. The crisis then spread to Russia, which was forced to
devalue its currency. These circumstances combined to produce a surge in demand
for the safety and liquidity of U.S. government securities.
1. Compounded yields assume reinvestment of dividends. Past performance is not
indicative of future results.
5 Oppenheimer Money Market Fund, Inc.
<PAGE>
An interview with your Fund's manager
- --------------------------------------------------------------------------------
[Begin: Sidebar Text]
"We weren't
surprised when
the Fed raised
the Fed Funds rate
this summer.
However, now
the question
to ask is
whether or not
the Fed
will continue
to raise rates."
[End: Sidebar Text]
The Federal Reserve Board (the Fed) lowered short-term interest rates last fall
to keep the U.S. economy from submitting to the crisis. (A lower interest-rate
environment typically stimulates the economy because it makes it more cost-
effective for companies to borrow money to finance their operations.) Central
banks in Europe, Asia and Latin America followed suit, and a recession was
prevented in much of the world.
The second picture began to form in early 1999. While the rest of the
world struggled to generate economic growth, the U.S. economy remained strong.
However, too much economic growth can lead to inflation. So, with the Asian
economic crisis receding into the background and oil prices rebounding,
inflation fears were rekindled, leading the Fed to raise short-term interest
rates in June. Money market yields rose about 10 basis points to reflect the new
environment.
How did you manage the Fund in this environment?
Our investment strategy for the Fund is to manage maturity by "laddering" the
portfolio, rather than trying to predict interest rates. That is, we diversify
the Fund by investing in securities that span a wide array of maturities. If
interest rates follow their current trend and continue to rise, then we own a
significant number of securities that mature quickly, which would enable us to
quickly reinvest at higher prevailing rates. If interest rates fall, then we
also own a significant number of securities offering higher yields.
6 Oppenheimer Money Market Fund, Inc.
<PAGE>
Has concern surrounding the Y2K issue affected your investment strategy?
Yes. Many well-known companies have issued short-term debt, known as commercial
paper, that comes due in early January 2000. Because of the uncertainty
surrounding potential Y2K computer problems, the yields these securities offer
are unusually high. However, we believe that these securities entail greater
risk since computer problems could delay payment for investors. Instead, we have
opted to invest in commercial paper that matures later in January. We believe
that this decision is the prudent way to manage the Fund through this transition
period.
What is your outlook for the economy and for the Fund?
We remain cautiously optimistic about the economy. Not many people were
surprised when the Fed raised the Fed Funds rate this summer. However, the
current question centers around whether or not the Fed will continue to raise
rates. Of course, any future action by the Fed will depend upon the strength of
the U.S. economy. With that said, we expect somewhat slower growth for the
remainder of 1999, due to a strong U.S. dollar, higher oil prices, and
eventually, an increase in the U.S. savings rate.
As always, we intend to continue monitoring the economic environment
carefully and will modify portfolio holdings accordingly. We believe that these
risk-averse strategies make Oppenheimer Money Market Fund, Inc.
an important part of The Right Way to Invest.
7 Oppenheimer Money Market Fund, Inc.
<PAGE>
- --------------------------------------------------------------------------------
Statement of Investments July 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Face Value
Amount See Note 1
<S> <C> <C>
======================================================================================
Direct Bank Obligations--1.0%
- --------------------------------------------------------------------------------------
Credit Suisse First Boston, 4.83%, 8/23/99-10/12/99(1) $15,000,000 $ 14,888,642
======================================================================================
Letters of Credit--6.7%
- --------------------------------------------------------------------------------------
Bank One, Indiana, guaranteeing commercial paper of
Primex Funding Corp., 5.27%, 8/2/99(2)(3) 4,250,000 4,250,000
- --------------------------------------------------------------------------------------
Barclays Bank plc, guaranteeing commercial paper of
Nacional Financiera SNC:
4.84%, 8/16/99 5,000,000 4,989,916
4.97%, 11/18/99 15,000,000 14,774,279
- --------------------------------------------------------------------------------------
Barclays Bank plc, guaranteeing commercial paper of
United Mexican States, 4.97%, 11/17/99 38,000,000 37,430,180
- --------------------------------------------------------------------------------------
Credit Suisse First Boston, guaranteeing commercial
paper of Credit Suisse First Boston International
(Guernsey) Ltd.:
4.75%, 8/5/99 5,000,000 4,997,361
4.87%, 9/16/99 12,000,000 11,925,327
5.43%, 1/26/00 10,000,000 9,731,517
- --------------------------------------------------------------------------------------
Credit Suisse First Boston, guaranteeing commercial
paper of Daewoo International (America) Corp.,
4.98%, 9/23/99 13,000,000 12,904,688
------------
Total Letters of Credit 101,003,268
======================================================================================
Short-Term Notes--91.9%
- --------------------------------------------------------------------------------------
Asset-Backed--19.5%
Asset Backed Capital Finance, Inc.:
4.82%, 10/8/99(1) 10,000,000 9,908,956
4.88%, 8/25/99(1) 11,500,000 11,462,587
- --------------------------------------------------------------------------------------
Asset Securitization Cooperative, 5.25%, 8/27/99(1) 25,000,000 24,905,208
- --------------------------------------------------------------------------------------
Atlantis One Funding Corp.
4.83%, 9/24/99(1) 20,000,000 19,855,100
4.93%, 11/18/99(1) 15,000,000 14,776,096
- --------------------------------------------------------------------------------------
Beta Finance, Inc.:
4.84%, 8/17/99(1) 10,000,000 9,978,489
4.87%, 8/24/99(1) 5,000,000 4,984,443
- --------------------------------------------------------------------------------------
Cooperative Assn. of Tractor Dealers, Inc.:
Series A, 4.84%, 10/4/99 10,000,000 9,913,956
Series A, 4.87%, 9/15/99 10,300,000 10,237,299
- --------------------------------------------------------------------------------------
Corporate Asset Funding Co., Inc., 5.11%, 9/20/99(1) 5,000,000 4,964,514
- --------------------------------------------------------------------------------------
Eureka Securitization, Inc.:
5.15%, 9/20/99(1) 10,000,000 9,928,472
5.16%, 10/18/99(1) 15,000,000 14,832,300
- --------------------------------------------------------------------------------------
Falcon Asset Securitization Corp., 5.13%, 8/19/99(1) 33,500,000 33,414,072
8 Oppenheimer Money Market Fund, Inc.
<PAGE>
- --------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------
Face Value
Amount See Note 1
- --------------------------------------------------------------------------------------
Asset-Backed (continued)
Moat Funding LLC:
5%, 8/30/99(1) $12,500,000 $ 12,449,653
5.18%, 8/23/99(1) 15,000,000 14,952,517
5.22%, 10/1/99(1) 15,000,000 14,867,325
- --------------------------------------------------------------------------------------
Park Avenue Receivables Corp., 5.33%, 9/9/99(1) 10,000,000 9,942,258
- --------------------------------------------------------------------------------------
Preferred Receivables Funding Corp.:
4.82%, 10/20/99(1) 10,000,000 9,892,889
5.15%, 10/28/99(1) 10,000,000 9,874,111
5.17%, 10/5/99(1) 10,910,000 10,808,158
- --------------------------------------------------------------------------------------
Sigma Finance, Inc.:
4.77%, 8/2/99(1) 18,500,000 18,497,549
4.86%, 9/27/99(1) 10,000,000 9,923,050
------------
290,369,002
- --------------------------------------------------------------------------------------
Bank Holding Companies--1.9%
BankAmerica Corp., 4.83%, 11/19/99 18,000,000 17,734,350
- --------------------------------------------------------------------------------------
Fleet Financial Group, Inc.:
7.25%, 9/1/99 6,000,000 6,009,999
7.625%, 12/1/99 5,000,000 5,042,053
------------
28,786,402
- --------------------------------------------------------------------------------------
Beverages--3.1%
Coca-Cola Enterprises, Inc.:
4.85%, 8/25/99(1) 10,000,000 9,967,667
5.17%, 10/21/99(1) 17,000,000 16,802,247
5.47%, 1/28/00(1) 20,000,000 19,453,000
------------
46,222,914
- --------------------------------------------------------------------------------------
Broker/Dealers--13.2%
Bear Stearns Cos., Inc.:
4.85%, 11/22/99 10,000,000 9,847,764
5.154%, 8/3/99(3) 12,500,000 12,500,000
5.185%, 8/12/99(3) 15,000,000 15,000,000
5.378%, 8/18/99(3) 5,000,000 5,000,000
5.45%, 2/7/00 20,000,000 19,424,722
- --------------------------------------------------------------------------------------
Goldman Sachs Group LP, 5.20%, 11/24/99 15,000,000 14,750,833
- --------------------------------------------------------------------------------------
Morgan Stanley Dean Witter & Co., 5.125%, 9/13/99(3) 50,000,000 50,000,000
- --------------------------------------------------------------------------------------
Morgan Stanley Group, Inc., 5.244%, 8/15/99(3) 7,000,000 7,000,000
- --------------------------------------------------------------------------------------
NationsBanc Montgomery Securities LLC, 5.325%, 8/2/99(3) 50,000,000 50,000,000
- --------------------------------------------------------------------------------------
Salomon Smith Barney Holdings, Inc., 5.50%, 2/8/00 15,000,000 14,562,292
------------
198,085,611
9 Oppenheimer Money Market Fund, Inc.
<PAGE>
- --------------------------------------------------------------------------------------
Statement of Investments (Continued)
- --------------------------------------------------------------------------------------
Face Value
Amount See Note 1
- --------------------------------------------------------------------------------------
Chemicals--3.3%
Henkel Corp.:
4.83%, 11/10/99(1) $13,000,000 $ 12,823,839
4.88%, 8/27/99(1) 5,000,000 4,982,378
- --------------------------------------------------------------------------------------
Monsanto Co.:
4.75%, 8/3/99(1) 15,000,000 14,996,042
4.83%, 8/19/99 16,000,000 15,961,360
------------
48,763,619
- --------------------------------------------------------------------------------------
Computer Software--1.7%
First Data Corp., 4.75%, 8/3/99 25,000,000 24,993,403
- --------------------------------------------------------------------------------------
Commercial Finance--12.2%
Countrywide Home Loans:
5.042%, 8/30/99(3) 13,800,000 13,800,000
5.13%, 8/19/99 25,500,000 25,434,592
5.56%, 10/14/99(3) 10,000,000 10,000,000
- --------------------------------------------------------------------------------------
FINOVA Capital Corp.:
4.875%, 10/22/99 8,000,000 7,911,076
4.91%, 11/10/99 15,000,000 14,793,371
4.98%, 9/9/99 6,000,000 5,967,630
5%, 9/15/99 7,500,000 7,453,125
6.06%, 10/8/99 6,500,000 6,509,210
- --------------------------------------------------------------------------------------
Heller Financial, Inc.:
4.89%, 9/23/99 20,000,000 19,856,017
5.149%, 9/9/99(3) 8,500,000 8,500,000
5.271%, 9/1/99(3) 10,000,000 10,006,850
- --------------------------------------------------------------------------------------
Homeside Lending, Inc., 5.12%, 8/27/99 11,777,000 11,733,451
- --------------------------------------------------------------------------------------
Safeco Credit Co.:
5.16%, 9/17/99 15,000,000 14,898,754
5.20%, 10/5/99 11,000,000 10,896,722
5.22%, 10/27/99 15,000,000 14,810,775
------------
182,571,573
- --------------------------------------------------------------------------------------
Diversified Financial--5.0%
Associates Corp. of North America, 7.90%, 10/26/99 7,500,000 7,549,484
- --------------------------------------------------------------------------------------
General Electric Capital Corp.:
4.83%, 10/22/99 10,000,000 9,889,983
5.13%, 8/2/99 48,100,000 48,093,146
- --------------------------------------------------------------------------------------
Prudential Funding Corp., 4.82%, 11/4/99 10,000,000 9,872,806
------------
75,405,419
10 Oppenheimer Money Market Fund, Inc.
<PAGE>
- --------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------
Face Value
Amount See Note 1
- --------------------------------------------------------------------------------------
Diversified Media--2.4%
Omnicom Finance, Inc.:
5.10%, 8/27/99(1) $ 5,000,000 $ 4,981,583
5.14%, 8/17/99(1) 4,200,000 4,190,405
5.16%, 9/24/99(1) 5,000,000 4,961,300
5.17%, 9/9/99(1) 7,000,000 6,960,794
5.22%, 10/15/99(1) 15,000,000 14,836,875
------------
35,930,957
- --------------------------------------------------------------------------------------
Industrial Services--1.3%
Atlas Copco AB:
4.80%, 8/12/99(1) 10,000,000 9,985,333
4.89%, 11/9/99(1) 10,000,000 9,864,167
------------
19,849,500
- --------------------------------------------------------------------------------------
Insurance--15.2%
Aegon Funding Corp., 5.19%, 11/22/99 15,000,000 14,755,637
- --------------------------------------------------------------------------------------
AIG Life Insurance Co., 5.22%, 8/2/99(2)(3) 20,000,000 20,000,000
- --------------------------------------------------------------------------------------
First All America Financial, 5.23%, 8/2/99(3) 20,000,000 20,000,000
- --------------------------------------------------------------------------------------
General American Life Insurance Co., 5.24%, 8/2/99(2)(3) 45,000,000 45,000,000
- --------------------------------------------------------------------------------------
Jackson National Life Insurance Co., 5.23%, 8/2/99(3) 35,000,000 35,000,000
- --------------------------------------------------------------------------------------
Principal Mutual Life Insurance Co., 5.25%, 8/2/99(2)(3) 5,000,000 5,000,000
- --------------------------------------------------------------------------------------
Protective Life Insurance Co., 5.27%, 8/2/99(3) 35,000,000 35,000,000
- --------------------------------------------------------------------------------------
Safeco Corp., 5.22%, 10/18/99 7,500,000 7,415,175
- --------------------------------------------------------------------------------------
Security Benefit Life Insurance Co., 5.27%, 8/2/99 35,000,000 35,000,000
- --------------------------------------------------------------------------------------
Travelers Insurance Co., 5.23%, 8/2/99(2)(3) 10,000,000 10,000,000
------------
227,170,812
- --------------------------------------------------------------------------------------
Leasing & Factoring--2.3%
American Honda Finance Corp., 5.09%, 8/24/99 35,000,000 34,885,288
- --------------------------------------------------------------------------------------
Manufacturing--2.9%
Eaton Corp.:
4.83%, 11/4/99 20,000,000 19,744,556
4.99%, 9/17/99 23,000,000 22,850,161
------------
42,594,717
- --------------------------------------------------------------------------------------
Oil: Domestic--0.7%
Fina Oil & Chemical Co., 5.12%, 9/22/99 10,000,000 9,926,044
11 Oppenheimer Money Market Fund, Inc.
<PAGE>
- --------------------------------------------------------------------------------------
Statement of Investments (Continued)
- --------------------------------------------------------------------------------------
Face Value
Amount See Note 1
- --------------------------------------------------------------------------------------
Special Purpose Financial--5.0%
Intrepid Funding Corp.:
4.85%, 8/5/99(1) $12,000,000 $ 11,993,533
4.87%, 10/14/99(1) 15,000,000 14,849,842
- --------------------------------------------------------------------------------------
KZH-KMS Corp., 5.20%, 10/7/99(1) 10,000,000 9,903,222
- --------------------------------------------------------------------------------------
SMM Trust, Series 1999-B, 5.204%, 9/15/99(2)(3) 30,000,000 30,000,000
- --------------------------------------------------------------------------------------
Ullswater Corp., 5.15%, 9/1/99(1) 8,787,000 8,748,032
--------------
75,494,629
- --------------------------------------------------------------------------------------
Telecommunications-Technology--2.2%
GTE Corp., 5.135%, 9/13/99(3) 33,000,000 32,981,659
--------------
Total Short-Term Notes 1,374,031,549
- --------------------------------------------------------------------------------------
Total Investments, at Value 99.6% 1,489,923,459
- --------------------------------------------------------------------------------------
Other Assets Net of Liabilities 0.4 6,522,067
----------- --------------
Net Assets 100.0% $1,496,445,526
=========== ==============
</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. Security issued in an exempt transaction without registration under the
Securities Act of 1933. Such securities amount to $465,406,648 or 31.10% of the
Fund's net assets, and have been determined to be liquid pursuant to guidelines
adopted by the Board of Directors.
2. 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 $114,250,000, or 7.63% 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.
3. Floating or variable rate obligation. The interest rate, which is based on
specific, or an index of, market interest rates, is subject to change
periodically and is the effective rate on July 31, 1999. 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.
See accompanying Notes to Financial Statements.
12 Oppenheimer Money Market Fund, Inc.
<PAGE>
- --------------------------------------------------------------------------------
Statement of Assets and Liabilities July 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
================================================================================
Assets
Investments, at value--see accompanying statement $1,489,923,459
- --------------------------------------------------------------------------------
Cash 2,861,177
- --------------------------------------------------------------------------------
Receivables and other assets:
Shares of capital stock sold 23,507,030
Interest 2,889,221
Other 104,347
--------------
Total assets 1,519,285,234
================================================================================
Liabilities
Payables and other liabilities:
Shares of capital stock redeemed 19,714,989
Dividends 2,233,128
Transfer and shareholder servicing agent fees 388,033
Directors' compensation--Note 1 202,577
Shareholder reports 192,206
Other 108,775
--------------
Total liabilities 22,839,708
================================================================================
Net Assets $1,496,445,526
==============
================================================================================
Composition of Net Assets
Par value of shares of capital stock $ 149,655,296
- --------------------------------------------------------------------------------
Additional paid-in capital 1,346,747,887
- --------------------------------------------------------------------------------
Accumulated net realized gain on investment transactions 42,343
--------------
Net assets--applicable to 1,496,552,960 shares of capital
stock outstanding $1,496,445,526
==============
================================================================================
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 Year Ended July 31, 1999
- -------------------------------------------------------------------------------
<TABLE>
<S> <C>
===============================================================================
Investment Income
Interest $72,492,595
===============================================================================
Expenses
Management fees--Note 3 5,854,320
- -------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees--Note 3 3,718,021
- -------------------------------------------------------------------------------
Shareholder reports 685,401
- -------------------------------------------------------------------------------
Registration and filing fees 109,650
- -------------------------------------------------------------------------------
Directors' compensation--Note 1 78,709
- -------------------------------------------------------------------------------
Legal, auditing and other professional fees 61,976
- -------------------------------------------------------------------------------
Custodian fees and expenses 44,962
- -------------------------------------------------------------------------------
Insurance expenses 16,862
- -------------------------------------------------------------------------------
Other 99,970
-----------
Total expenses 10,669,871
Less expenses paid indirectly--Note 1 (27,285)
-----------
Net expenses 10,642,586
===============================================================================
Net Investment Income 61,850,009
===============================================================================
Net Realized Gain on Investments 39,387
===============================================================================
Net Increase in Net Assets Resulting from Operations $61,889,396
===========
</TABLE>
See accompanying Notes to Financial Statements.
14 Oppenheimer Money Market Fund, Inc.
<PAGE>
- --------------------------------------------------------------------------------
Statement of Changes in Net Assets
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year Ended July 31,
1999 1998
<S> <C> <C>
======================================================================================
Operations
Net investment income $ 61,850,009 $ 54,434,223
- --------------------------------------------------------------------------------------
Net realized gain 39,387 2,601
-------------- --------------
Net increase in net assets resulting from operations 61,889,396 54,436,824
======================================================================================
Dividends and/or Distributions to Shareholders (61,850,009) (54,434,223)
======================================================================================
Capital Stock Transactions
Net increase in net assets resulting from
capital stock transactions--Note 2 301,662,160 180,801,221
======================================================================================
Net Assets
Total increase 301,701,547 180,803,822
- --------------------------------------------------------------------------------------
Beginning of period 1,194,743,979 1,013,940,157
-------------- --------------
End of period $1,496,445,526 $1,194,743,979
============== ==============
</TABLE>
See accompanying Notes to Financial Statements.
15 Oppenheimer Money Market Fund, Inc.
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year Ended
Year Ended July 31, December 31,
1999 1998 1997 1996(1) 1995 1994
===============================================================================================
<S> <C> <C> <C> <C> <C> <C>
Per Share Operating Data
Net asset value, beginning of period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
- -------------------------------------------------------------------- --------------------------
Income from investment operations:
Net investment income and
net realized gain .05 .05 .05 .03 .05 .04
Dividends and distributions
to shareholders (.05) (.05) (.05) (.03) (.05) (.04)
- -----------------------------------------------------------------------------------------------
Net asset value, end of period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
====== ====== ====== ====== ===== =====
===============================================================================================
Total Return(2) 4.61% 5.03% 4.83% 2.80% 5.40% 3.76%
===============================================================================================
Ratios/Supplemental Data
Net assets, end of period (in millions) $1,496 $1,195 $1,014 $1,102 $ 818 $ 929
- -----------------------------------------------------------------------------------------------
Average net assets (in millions) $1,371 $1,114 $1,011 $ 901 $ 855 $ 804
- -----------------------------------------------------------------------------------------------
Ratios to average net assets:(3)
Net investment income 4.51% 4.89% 4.73% 4.68% 5.19% 3.79%
Expenses 0.78% 0.87%(4) 0.87%(4) 0.84%(4) 0.90%(4) 0.82%
</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 $1,000 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 for periods of less than one full year.
4. Expense ratio reflects the effect of expenses paid indirectly by the Fund.
See accompanying Notes to Financial Statements.
16 Oppenheimer Money Market Fund, Inc.
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements
- --------------------------------------------------------------------------------
================================================================================
1. Significant Accounting Policies
Oppenheimer Money Market Fund, Inc. (the Fund) is registered under the
Investment Company Act of 1940, as amended, as a diversified, open-end
management investment company. The Fund's investment objective is to seek the
maximum current income that is consistent with stability of principal. The Fund
invests in short-term, high-quality "money market" securities. The Fund's
investment advisor is OppenheimerFunds, Inc. (the Manager). The following is a
summary of significant accounting policies consistently followed by the Fund.
- --------------------------------------------------------------------------------
Securities 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' Compensation. The Fund has adopted a nonfunded retirement plan for
the Fund's independent Directors. Benefits are based on years of service and
fees paid to each director during the years of service. During the year ended
July 31, 1999, a provision of $8,081 was made for the Fund's projected benefit
obligations and payments of $9,700 were made to retired directors, resulting in
an accumulated liability of $196,797 as of July 31, 1999.
The Board of Directors has adopted a deferred compensation plan
for independent Directors that enables Directors to elect to defer receipt of
all or a portion of annual compensation they are entitled to receive from the
Fund. Under the plan, the compensation deferred is periodically adjusted as
though an equivalent amount had been invested for the Directors in shares of one
or more Oppenheimer funds selected by the Director. The amount paid to the
Director under the plan will be determined based upon the performance of the
selected funds. Deferral of Directors' fees under the plan will not affect the
net assets of the Fund, and will not materially affect the Fund's assets,
liabilities or net income per share.
17 Oppenheimer Money Market Fund, Inc.
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements (Continued)
- --------------------------------------------------------------------------------
================================================================================
1. Significant Accounting Policies (continued)
Dividends and Distributions to Shareholders. Dividends and distributions to
shareholders, which are determined in accordance with income tax regulations,
are recorded on the ex-dividend date.
- --------------------------------------------------------------------------------
Expense Offset Arrangements. Expenses paid indirectly represent a reduction of
custodian fees for earnings on cash balances maintained by the Fund.
- --------------------------------------------------------------------------------
Other. Investment transactions are accounted for as of 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 $.10 par value capital stock.
Transactions in shares of capital stock were as follows:
<TABLE>
<CAPTION>
Year Ended July 31, 1999 Year Ended July 31, 1998
------------------------------ --------------------------------
Shares Amount Shares Amount
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------
Sold 3,609,705,072 $ 3,609,705,072 3,091,391,757 $ 3,091,391,757
Dividends and/or
distributions reinvested 58,739,770 58,739,770 51,650,982 51,650,982
Redeemed (3,366,782,682) (3,366,782,682) (2,962,241,518) (2,962,241,518)
-------------- --------------- -------------- ---------------
Net increase 301,662,160 $ 301,662,160 180,801,221 $ 180,801,221
============== =============== ============== ===============
</TABLE>
================================================================================
3. Management Fees and Other Transactions with Affiliates
Management Fees. 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. The Fund's management fee for the year ended July 31, 1999
was 0.43% of the Fund's average annual net assets.
- --------------------------------------------------------------------------------
Transfer Agent Fees. OppenheimerFunds Services (OFS), a division of the Manager,
is the transfer and shareholder servicing agent for the Fund and other
Oppenheimer funds. OFS's total costs of providing such services are allocated
ratably to these funds.
18 Oppenheiner Money Market Fund, Inc
<PAGE>
- --------------------------------------------------------------------------------
Independent Auditors' Report
- --------------------------------------------------------------------------------
================================================================================
The Board of Directors and Shareholders of
Oppenheimer Money Market Fund, Inc.:
We have audited the accompanying statement of assets and liabilities, including
the statement of investments, of Oppenheimer Money Market Fund, Inc. as of July
31, 1999, and the related statement of operations for the year then ended, the
statements of changes in net assets for each of the years in the two-year period
then ended and the financial highlights for each of the years in the three-year
period then ended, the seven-month period ended July 31, 1996, and each of the
years in the two-year period ended December 31, 1995. These financial statements
and financial highlights are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with generally accepted
auditing standards. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements. Our procedures included confirmation of securities
owned as of July 31, 1999, by correspondence with the custodian. An audit also
includes assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights
referred to above present fairly, in all material respects, the financial
position of Oppenheimer Money Market Fund, Inc. as of July 31, 1999, the results
of its operations for the year then ended, the changes in its net assets for
each of the years in the two-year period then ended, and the financial
highlights for each of the years in the three-year period then ended, the
seven-month period ended July 31, 1996, and each of the years in the two-year
period ended December 31, 1995, in conformity with generally accepted accounting
principles.
KPMG LLP
Denver, Colorado
August 20, 1999
19 Oppenheimer Money Market Fund, Inc.
<PAGE>
- --------------------------------------------------------------------------------
Federal Income Tax Information (Unaudited)
- --------------------------------------------------------------------------------
================================================================================
In early 2000, shareholders will receive information regarding all dividends and
distributions paid to them by the Fund during calendar year 1999. Regulations of
the U.S. Treasury Department require the Fund to report this information to the
Internal Revenue Service.
None of the dividends paid by the Fund during the fiscal year
ended July 31, 1999, are eligible for the corporate dividend-received deduction.
The foregoing information is presented to assist shareholders in
reporting distributions received from the Fund to the Internal Revenue Service.
Because of the complexity of the federal regulations which may affect your
individual tax return and the many variations in state and local tax
regulations, we recommend that you consult your tax advisor for specific
guidance.
20 Oppenheimer Money Market Fund, Inc.
<PAGE>
<TABLE>
<S> <C>
- -------------------------------------------------------------------------------------
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
Arthur J. Zimmer, Vice President
Andrew J. Donohue, Secretary
Brian W. Wixted, Treasurer
Robert G. Zack, Assistant Secretary
Robert J. Bishop, Assistant Treasurer
Scott T. Farrar, Assistant Treasurer
=====================================================================================
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 LLP
=====================================================================================
Legal Counsel Mayer, Brown & Platt
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,
are not insured by the FDIC or any other agency, and
involve investment risks, including the possible loss of
the principal amount invested.
</TABLE>
21 Oppenheimer Money Market Fund, Inc.
<PAGE>
- --------------------------------------------------------------------------------
OppenheimerFunds Family
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
==========================================================================================
Real Asset Funds
- ------------------------------------------------------------------------------------------
Real Asset Fund Gold & Special Minerals Fund
==========================================================================================
Global Stock Funds
- ------------------------------------------------------------------------------------------
Developing Markets Fund International Growth Fund Global Growth & Income Fund
International Small Global Fund Europe Fund
Company Fund Quest Global Value Fund
==========================================================================================
Stock Funds
- ------------------------------------------------------------------------------------------
Enterprise Fund MidCap Fund Growth Fund
Discovery Fund Capital Appreciation Fund Large Cap Growth Fund
Quest Small Cap Value Fund Quest Capital Value Fund Disciplined Value Fund
Quest Value Fund
==========================================================================================
Stock & Bond Funds
- ------------------------------------------------------------------------------------------
Main Street Growth & Total Return Fund Multiple Strategies Fund
Income Fund(1) Quest Balanced Disciplined Allocation Fund
Quest Opportunity Value Fund Convertible Securities Fund
Value Fund Capital Income Fund(2)
==========================================================================================
Taxable Bond Funds
- ------------------------------------------------------------------------------------------
International Bond Fund Champion Income Fund U.S. Government Trust
World Bond Fund Strategic Income Fund Limited-Term GovernmentFund
High Yield Fund Bond Fund
==========================================================================================
Municipal Bond Funds
- ------------------------------------------------------------------------------------------
California Municipal Fund(3) Pennsylvania Municipal Fund(3) Rochester Division:
Florida Municipal Fund(3) Municipal Bond Fund Rochester Fund Municipals
New Jersey Municipal Fund(3) Insured Municipal Fund Limited Term New York
New York Municipal Fund(3) Intermediate Municipal Fund Municipal Fund
==========================================================================================
Money Market Funds(4)
- ------------------------------------------------------------------------------------------
Money Market Fund Cash Reserves
</TABLE>
1. On 12/22/98, the Fund's name was changed from "Oppenheimer Main Street Income
& Growth Fund."
2. On 4/1/99, the Fund's name was changed from "Oppenheimer Equity Income Fund."
3. Available only to investors in certain states.
4. An investment in money market funds is neither insured nor guaranteed by the
Federal Deposit Insurance Corporation or any other government agency. Although
these funds may seek to preserve the value of your investment at $1.00 per
share, it is possible to lose money by investing in these funds.
Oppenheimer funds are distributed by OppenheimerFunds Distributor, Inc., Two
World Trade Center, New York, NY 10048-0203.
(C) Copyright 1999 OppenheimerFunds, Inc. All rights reserved.
22 Oppenheimer Money Market Fund, Inc.
<PAGE>
- --------------------------------------------------------------------------------
Information and Services
- --------------------------------------------------------------------------------
As an Oppenheimer fund shareholder, you can benefit from special services
designed to make investing simple. Whether it's automatic investment plans,
timely market updates, or immediate account access, you can count on us whenever
you need assistance. So call us today, or visit our website--we're here to help.
Internet
24-hr access to account information and transactions
- ----------------------------------------------------
www.oppenheimerfunds.com
- ----------------------------------------------------
General Information
Mon-Fri 8:30am-9pm ET, Sat 10am-4pm ET
- ----------------------------------------------------
1-800-525-7048
- ----------------------------------------------------
Telephone Transactions
Mon-Fri 8:30am-9pm ET, Sat 10am-4pm ET
- ----------------------------------------------------
1-800-852-8457
- ----------------------------------------------------
PhoneLink
24-hr automated information
and automated transactions
- ----------------------------------------------------
1-800-533-3310
- ----------------------------------------------------
Telecommunications Device for the Deaf (TDD)
Mon-Fri 8:30am-6pm ET
- ----------------------------------------------------
1-800-843-4461
- ----------------------------------------------------
OppenheimerFunds Information Hotline
24 hours a day, timely and insightful messages on
the economy and issues that may affect your
investments.
- ----------------------------------------------------
1-800-835-3104
- ----------------------------------------------------
Transfer and Shareholder Servicing Agent
OppenheimerFunds Services,
P.O. Box 5270, Denver, CO 80217-5270
[OppenheimerFunds Logo]
OppenheimerFunds(R)
Distributor, Inc.
RA0200.001.0799 September 29, 1999
