<PAGE>
----------------------------------
Semiannual Report January 31, 1999
----------------------------------
O P P E N H E I M E R
Money Market
Fund, Inc.
[GRAPHIC]
[LOGO]
OppenheimerFunds(R)
THE RIGHT WAY TO INVEST
<PAGE>
Contents
3 President's Letter
4 An Interview
with Your Fund's
Manager
9 Financial
Statements
21 Officers and
Directors
24 Information and
Services
Report highlights
- ----
- ----------------------------------------------------------------------------
o High-quality money market instruments that carried only slightly higher credit
risk offered very attractive yields compared to Treasury bills, over the last
six months.
o Although the Fed's three successive rate cuts in the fall were able to
stimulate economic growth here in America, much of Europe is sluggish while most
of Asia remains in a recession.
Current Yield
For the 7-Day Period
Ended 1/31/99
Class A
With Without
Compounding1 Compounding
- ----------------------------
4.55% 4.45%
- ----------------------------
In reviewing performance, please remember that past performance does not
guarantee future results. Yields will fluctuate. An investment in the Fund is
not insured or 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>
[PHOTO]
Bridget A. Macaskill
President
Oppenheimer
Money Market Fund, Inc.
Dear shareholder,
- --------------------------------------------------------------------------------
Contrary to what many analysts had expected, the U.S. economy appears to have
picked up steam over the past few months. The fourth quarter of 1998 posted the
fastest rate of economic growth in two years, and early indications suggest that
the first quarter of 1999 may follow suit.
With respect to the U.S. bond market, stronger than expected economic
growth has triggered concerns that the Federal Reserve may raise key interest
rates to forestall an acceleration of inflation. As a result, yields of longer
term taxable bonds have risen from their October 1998 lows, when investors had
bid up prices during the global "flight to quality." At the same time,
tax-exempt bond prices and yields have remained relatively stable.
In the U.S. stock market, it might appear at first glance that prices are
rising as rapidly as the economy is growing. However, a closer look reveals
that, with the exception of large-cap growth companies and the technology
industry, most stock prices remained relatively flat. What's more, the disparity
in valuations between large companies, which have led the market's advance, and
smaller ones, which have lagged, has become historically wide.
What do these observations mean for your investments? In our view,
actively managed portfolios that are closely monitored by expert money managers
are likely to provide better returns than passive index investing in 1999.
That's because selectivity is expected to be more critical to performance than
it has been over the past few years. In a potentially overvalued stock market
and rising interest-rate environment, the ability to identify the most promising
securities could become paramount.
Even though many equity investors may be tempted to jump aboard the
technology bandwagon, we suggest a more prudent course: broad diversification
beyond any single asset class, industry, capitalization range or geographic
region. We believe that the risks of this investment environment require
consideration of a broad range of investments and markets, including bonds. That
way, if one market experiences setbacks, one or more of the others may help
cushion the effects on your overall portfolio.
No matter what the financial markets have in store, we resolve to continue
working with your financial advisor to keep you apprised of potential risks and
opportunities. Providing you with the market information, professionally managed
investments and other resources you need to achieve your financial goals is an
important part of our enduring commitment to you as The Right Way to Invest.
Sincerely,
/s/ Bridget A. Macaskill
Bridget A. Macaskill
February 22, 1999
3 Oppenheimer Money Market Fund, Inc.
<PAGE>
An interview with your Fund's manager
- --------------------------------------------------------------------------------
How has the Fund performed over the past six months?
Despite much uncertainty in the global financial markets over the period, for
the six months that ended January 31, 1999, Oppenheimer Money Market Fund, Inc.
maintained a stable share price of $1.00 per share, while continuing to provide
its investors with a steady stream of income. For the seven-day period ending
January 31, 1999, the Fund's compounded current yield was 4.55%. Without
compounding, the corresponding yield was 4.45%.1
Has the volatile global economy affected the Fund?
When international markets become unsteady, investors around the world often
look to U.S. government securities for safety and security, bypassing
high-quality money market instruments such as short-term borrowings issued by
blue chip corporations. That clearly took place in the latter half of 1998, as
Asia's financial crisis continued to form a backdrop to the global economy. At
various times during the year, demand for Treasury bills surged, boosting prices
and reducing yields, particularly in late summer as Russia's economy weakened.
1. Compounded yields assume reinvestment of dividends. Past performance is not
indicative of future results.
4 Oppenheimer Money Market Fund, Inc.
<PAGE>
After Russia defaulted on much of its debt and allowed its currency to fall
sharply in value, emerging markets around the world were suddenly perceived as
extremely risky. Even high-quality U.S. corporate debt seemed less attractive
because of the slight credit risk involved. To attract new investors,
corporations had to offer yields considerably higher than risk-free U.S.
Treasury securities.
As a result, high-quality money market instruments that carried only
slightly higher credit risk offered very attractive yields compared to Treasury
bills. That's one reason why the Fund, which invests in a mixture of
certificates of deposit, letters of credit, commercial paper and other money
market instruments, was able to offer relatively healthy returns.
How have you positioned the portfolio in light of this global activity?
In the fall, the Fed cut short-term interest rates three times to stimulate the
economy, and dozens of central banks around the world followed suit. The result
of this concerted action was a major rally in stock markets, as well as a likely
continuation of moderate economic growth, at least in the United States.
5 Oppenheimer Money Market Fund, Inc.
<PAGE>
An interview with your Fund's manager
- --------------------------------------------------------------------------------
Although the Fed was able to stimulate economic growth here in America, much of
Europe is sluggish while most of Asia remains in a recession. As of January 31,
1999, inflation throughout the world remains extremely low by historical
standards. Unless the U.S. economy accelerates, interest rates are likely to
decline further, and so, we have extended the maturity of the portfolio to take
advantage of these rates. As interest rates decline, a portfolio of longer
maturity securities yielding higher rates translates into higher yields for our
investors.
Last but not least, we continue to be especially diligent in our analysis
of credit quality. During the period, we discontinued our investment in
securities issued by certain multinational banks with heavy exposure to Asia.
Have any other factors affected the way you manage the portfolio?
We've recently begun to focus on the "millennium problem," which may render many
computer systems unable to recognize the year 2000 when it arrives. In
particular, we're evaluating prospective investments based on how the issuers
position themselves for any potential exposure to this problem.
6 Oppenheimer Money Market Fund, Inc.
<PAGE>
What is your outlook for the future?
As we move further into the year, our economic analysis calls for slower
economic growth, low inflation and modestly lower interest rates in the latter
part of 1999, all of which should help the performance of the overall bond
market. As money-market investors, we keenly follow the actions of the Federal
Reserve Board, which determines short-term interest rates for member banks.
While we have taken steps to protect the portfolio from additional interest rate
cuts, we believe that the buoyant U.S. stock market combined with strong
consumer spending will keep the Fed fairly inactive over the near term.
Although we will continue to search for yield, your objectives of safety,
liquidity and attractive yield will always come first. This is part of our
commitment to keep Oppenheimer Money Market Fund, Inc. an important element of
The Right Way to Invest.
7 Oppenheimer Money Market Fund, Inc.
<PAGE>
Financials
- --------------------------------------------------------------------------------
8 Oppenheimer Money Market Fund, Inc.
<PAGE>
- --------------------------------------------------------------------------------
Statement of Investments January 31, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Face Value
Amount See Note 1
===============================================================================================
<S> <C> <C>
Certificates of Deposit--0.3%
- -----------------------------------------------------------------------------------------------
Societe Generale, 5.80%, 3/31/99 $ 5,000,000 $ 5,000,234
===============================================================================================
Direct Bank Obligations--1.7%
- -----------------------------------------------------------------------------------------------
Abbey National North America Corp., 5.50%, 2/4/99 15,000,000 14,993,125
- -----------------------------------------------------------------------------------------------
Societe Generale, 4.987%, 2/1/99(1) 8,000,000 7,997,959
--------------
Total Direct Bank Obligations 22,991,084
===============================================================================================
Letters of Credit--5.4%
- -----------------------------------------------------------------------------------------------
ABN Amro Bank NV, guaranteeing commercial paper of
Formosa Plastics Corp., Series A, 5.02%, 6/7/99 15,000,000 14,736,450
- -----------------------------------------------------------------------------------------------
Bank One, Indiana, guaranteeing commercial paper of Primex
Funding Corp., 4.91%, 2/1/99 (1)(2) 4,500,000 4,500,000
- -----------------------------------------------------------------------------------------------
Barclays Bank plc, guaranteeing commercial paper of:
Banca Serfin SA, Institucion de Bance Multiple Grupo
Financiero Serfin, Nassau Branch, 5.42%, 5/26/99 10,500,000 10,319,785
Banco de Credito Nacional SA, Series A, 4.85%, 6/23/99 9,000,000 8,827,825
Nacional Financiera SNC, 4.90%, 5/20/99 12,885,000 12,693,658
Nacional Financiera SNC, 5.47%, 2/17/99 5,000,000 4,987,844
Petroleo Brasileiro SA, Series C, 5.05%, 3/30/99 7,000,000 6,944,029
- -----------------------------------------------------------------------------------------------
Bayerische Vereinsbank AG, guaranteeing commercial paper
of Garanti Funding Corp., Series A, 5.10%, 4/29/99 7,250,000 7,160,644
- -----------------------------------------------------------------------------------------------
Credit Suisse, guaranteeing commercial paper of
Daewoo International (America) Corp., 5%, 6/4/99 5,000,000 4,916,292
--------------
Total Letters of Credit 75,086,527
===============================================================================================
Short-Term Notes--92.4%
- -----------------------------------------------------------------------------------------------
Asset-Backed--9.3%
Asset Backed Capital Finance, Inc., 5.505%, 2/1/99(3) 10,000,000 10,000,000
- -----------------------------------------------------------------------------------------------
Atlantis One Funding Corp., 5.17%, 4/28/99(3) 6,500,000 6,419,721
- -----------------------------------------------------------------------------------------------
Beta Finance, Inc., 5.26%, 3/9/99(3) 5,300,000 5,272,122
- -----------------------------------------------------------------------------------------------
Cooperative Assn. of Tractor Dealers, Inc.:
Series A, 4.85%, 6/29/99 10,000,000 9,800,611
Series B, 5.50%, 2/3/99 7,400,000 7,397,739
</TABLE>
9 Oppenheimer Money Market Fund, Inc.
<PAGE>
- --------------------------------------------------------------------------------
Statement of Investments (Unaudited) (Continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Face Value
Amount See Note 1
- -----------------------------------------------------------------------------------------------
<S> <C> <C>
Asset-Backed (continued)
Enterprise Funding Corp., 5.01%, 6/4/99(3) $ 10,000,000 $ 9,828,825
- -----------------------------------------------------------------------------------------------
Preferred Receivables Funding Corp.:
4.93%, 6/21/99(3) 5,000,000 4,904,139
4.95%, 6/14/99(3) 13,990,000 13,734,158
5.07%, 4/19/99(3) 10,000,000 9,891,558
5.49%, 2/1/99(3) 10,535,000 10,535,000
- -----------------------------------------------------------------------------------------------
Sigma Finance, Inc.:
4.77%, 8/2/99(3) 18,500,000 18,053,873
4.78%, 7/30/99(3) 7,500,000 7,322,119
5.03%, 4/7/99(3) 5,000,000 4,954,590
5.50%, 2/12/99(3) 10,000,000 9,983,194
--------------
128,097,649
- -----------------------------------------------------------------------------------------------
Automotive--3.6%
BMW US Capital Corp., 4.83%, 2/1/99 48,900,000 48,900,000
- -----------------------------------------------------------------------------------------------
Bank Holding Companies--8.6%
Bank One Corp., 5.09%, 3/26/99 10,000,000 9,925,064
- -----------------------------------------------------------------------------------------------
Bankers Trust Co., New York:
5%, 6/28/99-7/19/99 25,000,000 24,431,250
5.05%, 6/2/99-6/9/99 40,000,000 39,301,417
- -----------------------------------------------------------------------------------------------
Chase Manhattan Corp., 10.375%, 3/15/99 4,883,000 4,910,191
- -----------------------------------------------------------------------------------------------
Fleet Financial Group, Inc.:
7.25%, 9/1/99 6,000,000 6,068,380
7.625%, 12/1/99 5,000,000 5,104,443
- -----------------------------------------------------------------------------------------------
J.P. Morgan & Co., Inc.:
4.75%, 7/26/99 10,000,000 9,769,097
4.79%, 7/21/99 20,000,000 19,547,611
--------------
119,057,453
- -----------------------------------------------------------------------------------------------
Beverages--3.5%
Coca-Cola Enterprises, Inc.:
4.86%, 4/29/99(3) 25,000,000 24,706,375
5.01%, 5/21/99(3) 5,000,000 4,924,154
5.11%, 3/4/99(3) 8,000,000 7,964,798
5.30%, 3/5/99(3) 10,000,000 9,952,889
--------------
47,548,216
</TABLE>
10 Oppenheimer Money Market Fund, Inc.
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Face Value
Amount See Note 1
- -----------------------------------------------------------------------------------------------
<S> <C> <C>
Broker/Dealers--17.1%
Bear Stearns Cos., Inc.:
5.032%, 4/9/99(1) $ 10,000,000 $ 10,000,000
5.047%, 2/1/99(1) 12,500,000 12,500,000
5.749%, 2/19/99(1) 5,000,000 5,000,000
- -----------------------------------------------------------------------------------------------
Credit Suisse First Boston International (Guernsey) Ltd.,
4.75%, 8/5/99 5,000,000 4,877,951
- -----------------------------------------------------------------------------------------------
Credit Suisse First Boston, 5.05%, 4/8/99(3) 5,000,000 4,953,708
- -----------------------------------------------------------------------------------------------
Goldman Sachs Group, LP:
5%, 4/20/99 10,000,000 9,891,667
5.10%, 3/22/99 15,000,000 14,895,875
- -----------------------------------------------------------------------------------------------
Merrill Lynch & Co., Inc.:
5.27%, 3/12/99 15,000,000 14,914,363
5.51%, 2/12/99 7,500,000 7,487,373
6.28%, 6/25/99 4,260,000 4,279,210
- -----------------------------------------------------------------------------------------------
Morgan Stanley Dean Witter & Co., 4.813%, 2/1/99(1) 50,000,000 50,000,000
- -----------------------------------------------------------------------------------------------
Morgan Stanley Dean Witter & Co., 5.788%, 3/15/99(1) 7,000,000 7,000,000
- -----------------------------------------------------------------------------------------------
NationsBank Corp., 5.012%, 2/1/99(1) 50,000,000 50,000,000
- -----------------------------------------------------------------------------------------------
Salomon Smith Barney Holdings, Inc.:
4.81%, 4/1/99 15,000,000 14,881,754
5.15%, 2/18/99 5,000,000 4,987,840
5.47%, 2/12/99 20,000,000 19,967,794
--------------
235,637,535
- -----------------------------------------------------------------------------------------------
Chemicals--0.7%
Monsanto Co., 4.77%, 6/29/99(3) 10,000,000 9,803,900
- -----------------------------------------------------------------------------------------------
Computer Software/Services--1.8%
First Data Corp., 4.75%, 8/3/99 25,000,000 24,396,354
- -----------------------------------------------------------------------------------------------
Commercial Finance--16.6%
CIT Group Holdings, Inc.:
4.75%, 7/28/99 20,000,000 19,532,917
5.04%, 3/19/99 10,000,000 9,937,389
5.07%, 3/25/99 20,000,000 19,853,533
- -----------------------------------------------------------------------------------------------
Countrywide Home Loans:
5.25%, 2/27/99(1) 13,800,000 13,800,000
5.31%, 4/14/99(1) 10,000,000 10,000,000
</TABLE>
11 Oppenheimer Money Market Fund, Inc.
<PAGE>
- --------------------------------------------------------------------------------
Statement of Investments (Unaudited) (Continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Face Value
Amount See Note 1
- -----------------------------------------------------------------------------------------------
<S> <C> <C>
Commercial Finance (continued)
FINOVA Capital Corp.:
4.87%, 5/3/99 $ 7,000,000 $ 6,913,828
5.30%, 3/4/99 7,000,000 6,968,053
5.33%, 2/26/99 6,850,000 6,824,646
5.33%, 4/16/99 10,000,000 9,890,439
5.47%, 3/5/99 3,500,000 3,482,982
6.06%, 10/8/99 6,500,000 6,533,727
- -----------------------------------------------------------------------------------------------
Heller Financial, Inc.:
5.15%, 5/3/99 20,000,000 19,739,639
5.20%, 5/13/99 10,000,000 9,854,111
5.289%, 3/8/99(1) 8,500,000 8,500,000
- -----------------------------------------------------------------------------------------------
Homeside Lending, Inc.:
4.96%, 5/24/99 5,000,000 4,922,844
5%, 7/15/99 25,000,000 24,445,361
- -----------------------------------------------------------------------------------------------
Safeco Credit Co.:
4.85%, 5/20/99 30,000,000 29,563,950
4.95%, 6/21/99 7,700,000 7,553,272
- -----------------------------------------------------------------------------------------------
TransAmerica Finance Corp., 5.11%, 3/1/99 10,000,000 9,960,256
--------------
228,276,947
- -----------------------------------------------------------------------------------------------
Consumer Finance--1.3%
Sears Roebuck Acceptance Corp., 5.43%, 2/26/99 18,000,000 17,932,125
- -----------------------------------------------------------------------------------------------
Diversified Financial--8.3%
Associates Corp. of North America, 4.90%, 3/24/99 10,000,000 9,930,583
- -----------------------------------------------------------------------------------------------
Ford Motor Credit Co., 5.50%, 2/22/99(1) 5,000,000 5,000,816
- -----------------------------------------------------------------------------------------------
General Motors Acceptance Corp.:
5.50%, 2/19/99 13,500,000 13,462,875
5.505%, 2/1/99 5,000,000 5,000,000
6.125%, 7/8/99 18,500,000 18,579,610
- -----------------------------------------------------------------------------------------------
Household Finance Corp.:
4.839%, 3/1/99(1) 5,000,000 4,999,471
5.157%, 2/1/99 25,000,000 25,000,000
5.438%, 3/9/99(1) 5,000,000 5,000,000
- -----------------------------------------------------------------------------------------------
Household International, Inc.:
5.21%, 2/3/99(3) 18,000,000 17,994,790
5.25%, 3/18/99(3) 10,000,000 9,934,375
--------------
114,902,520
</TABLE>
12 Oppenheimer Money Market Fund, Inc.
<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Face Value
Amount See Note 1
- -----------------------------------------------------------------------------------------------
<S> <C> <C>
Industrial Services--2.9%
Atlas Copco AB:
4.80%, 8/12/99(3) $ 10,000,000 $ 9,744,000
5.27%, 4/21/99(3) 17,000,000 16,803,400
5.36%, 2/19/99(3) 7,000,000 6,981,240
5.40%, 2/26/99(3) 7,000,000 6,973,750
--------------
40,502,390
- -----------------------------------------------------------------------------------------------
Insurance--13.9%
AIG Life Insurance Co., 5.077%, 2/1/99(1)(2) 20,000,000 20,000,000
- -----------------------------------------------------------------------------------------------
First All America Financial, 5.077%, 2/1/99(1) 20,000,000 20,000,000
- -----------------------------------------------------------------------------------------------
General American Life Insurance Co., 5.775%, 2/1/99(1) 45,000,000 45,000,000
- -----------------------------------------------------------------------------------------------
Jackson National Life Insurance Co., 5.09%, 2/1/99(1) 35,000,000 35,000,000
- -----------------------------------------------------------------------------------------------
Principal Mutual Life Insurance Co., 5.107%, 2/1/99(1)(2) 5,000,000 5,000,000
- -----------------------------------------------------------------------------------------------
Protective Life Insurance Co., 5.107%, 2/1/99(1) 15,000,000 15,000,000
- -----------------------------------------------------------------------------------------------
Security Benefit Life Insurance Co., 5.107%, 2/1/99(1) 35,000,000 35,000,000
- -----------------------------------------------------------------------------------------------
TransAmerica Life Insurance & Annuity Co., 5.077%, 2/1/99(1) 7,000,000 7,000,000
- -----------------------------------------------------------------------------------------------
Travelers Insurance Co., 5.649%, 2/1/99(1)(2) 10,000,000 10,000,000
--------------
192,000,000
- -----------------------------------------------------------------------------------------------
Leasing & Factoring--1.1%
American Honda Finance Corp., 5.028%, 2/9/99(1)(4) 15,000,000 14,999,865
- -----------------------------------------------------------------------------------------------
Oil: Domestic--2.5%
Fina Oil & Chemical Co.:
4.94%, 6/17/99(3) 25,000,000 24,533,444
5.50%, 2/22/99(3) 10,000,000 9,967,916
--------------
34,501,360
- -----------------------------------------------------------------------------------------------
Special Purpose Financial--1.2%
RACERS, Series 1998-MM-3-5, 5.077%, 2/1/99(1)(2) 10,000,000 10,000,000
SMM Trust, 4.939%, 3/1/99(1)(2) 7,000,000 7,000,000
--------------
17,000,000
--------------
Total Short-Term Notes 1,273,556,314
- -----------------------------------------------------------------------------------------------
Total Investments, at Value 99.8% 1,376,634,159
- -----------------------------------------------------------------------------------------------
Other Assets Net of Liabilities 0.2 2,140,715
-------------- --------------
Net Assets 100.0% $1,378,774,874
============== ==============
</TABLE>
13 Oppenheimer Money Market Fund, Inc.
<PAGE>
- --------------------------------------------------------------------------------
Statement of Investments (Unaudited) (Continued)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
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, 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.
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 $56,500,000, or 4.10% 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. Security issued in an exempt transaction without registration under the
Securities Act of 1933. Such securities amount to $276,138,038 or 20.03% of the
Fund's net assets, and have been determined to be liquid pursuant to guidelines
adopted by the Board of Directors.
4. Represents securities sold under Rule 144A, which are exempt from
registration under the Securities Act of 1933, as amended. These securities have
been determined to be liquid under guidelines established by the Board of
Directors. These securities amount to $14,999,865 or 1.09% of the Fund's net
assets as of January 31, 1999.
See accompanying Notes to Financial Statements.
14 Oppenheimer Money Market Fund, Inc.
<PAGE>
- --------------------------------------------------------------------------------
Statement of Assets and Liabilities January 31, 1999 (Unaudited)
- --------------------------------------------------------------------------------
<TABLE>
============================================================================================
<S> <C>
Assets
Investments, at value--see accompanying statement $1,376,634,159
- --------------------------------------------------------------------------------------------
Cash 3,392,638
- --------------------------------------------------------------------------------------------
Receivables and other assets:
Shares of capital stock sold 7,608,540
Interest 3,180,383
Other 97,014
--------------
Total assets 1,390,912,734
============================================================================================
Liabilities
(Payables and other liabilities:)
Shares of capital stock redeemed 9,879,355
Dividends 1,152,672
Transfer and shareholder servicing agent fees 529,471
Shareholder reports 276,698
Directors' compensation--Note 1 214,403
Other 85,261
--------------
Total liabilities 12,137,860
============================================================================================
Net Assets $1,378,774,874
==============
============================================================================================
Composition of Net Assets
Par value of shares of capital stock $ 137,888,230
- --------------------------------------------------------------------------------------------
Additional paid-in capital 1,240,844,376
- --------------------------------------------------------------------------------------------
Accumulated net realized gain on investment transactions 42,268
--------------
Net assets--applicable to 1,378,882,383 shares of capital stock outstanding $1,378,774,874
==============
============================================================================================
Net Asset Value, Redemption Price and Offering Price Per Share $1.00
</TABLE>
See accompanying Notes to Financial Statements.
15 Oppenheimer Money Market Fund, Inc.
<PAGE>
- --------------------------------------------------------------------------------
Statement of Operations For the Six Months Ended January 31, 1999 (Unaudited)
- --------------------------------------------------------------------------------
===============================================================================
Investment Income
Interest $ 36,503,352
===============================================================================
Expenses
Management fees--Note 3 2,857,438
- -------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees--Note 3 1,992,206
- -------------------------------------------------------------------------------
Shareholder reports 323,837
- -------------------------------------------------------------------------------
Registration and filing fees 75,061
- -------------------------------------------------------------------------------
Directors' compensation--Note 1 52,964
- -------------------------------------------------------------------------------
Custodian fees and expenses 36,214
- -------------------------------------------------------------------------------
Legal, auditing and other professional fees 26,586
- -------------------------------------------------------------------------------
Other 97,199
------------
Total expenses 5,461,505
Less expenses paid indirectly--Note 3 (14,039)
------------
Net expenses 5,447,466
===============================================================================
Net Investment Income 31,055,886
===============================================================================
Net Realized Gain on Investments 39,312
===============================================================================
Net Increase in Net Assets Resulting from Operations $ 31,095,198
============
See accompanying Notes to Financial Statements.
16 Oppenheimer Money Market Fund, Inc.
<PAGE>
- --------------------------------------------------------------------------------
Statements of Changes in Net Assets
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months Ended
January 31, 1999 Year Ended
(Unaudited) July 31, 1998
=========================================================================================
<S> <C> <C>
Operations
Net investment income $ 31,055,886 $ 54,434,223
- -----------------------------------------------------------------------------------------
Net realized gain 39,312 2,601
--------------- ---------------
Net increase in net assets resulting from operations 31,095,198 54,436,824
=========================================================================================
Dividends and Distributions to Shareholders (31,055,886) (54,434,223)
=========================================================================================
Capital Stock Transactions
Net increase in net assets resulting from
capital stock transactions--Note 2 183,991,583 180,801,221
=========================================================================================
Net Assets
Total increase 184,030,895 180,803,822
- -----------------------------------------------------------------------------------------
Beginning of period 1,194,743,979 1,013,940,157
--------------- ---------------
End of period $ 1,378,774,874 $ 1,194,743,979
=============== ===============
</TABLE>
See accompanying Notes to Financial Statements.
17 Oppenheimer Money Market Fund, Inc.
<PAGE>
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months
Ended Year Ended
January 31, Year Ended July 31, December 31,
1999 (Unaudited) 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 .02 .05 .05 .03 .05 .04
Dividends and distributions
to shareholders (.02) (.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) 2.35% 5.03% 4.83% 2.80% 5.40% 3.76%
==============================================================================================================
Ratios/Supplemental Data
Net assets, end of period
(in millions) $1,379 $1,195 $1,014 $1,102 $818 $929
- --------------------------------------------------------------------------------------------------------------
Average net assets
(in millions) $1,324 $1,114 $1,011 $901 $855 $804
- --------------------------------------------------------------------------------------------------------------
Ratios to average net assets:
Net investment income 4.65%(3) 4.89% 4.73% 4.68%(3) 5.19% 3.79%
Expenses(4) 0.82%(3) 0.87% 0.87% 0.84%(3) 0.90% 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 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.
4. Beginning in fiscal 1995, the expense ratio reflects the effect of expenses
paid indirectly by the Fund. Prior year expenses have not been adjusted.
See accompanying Notes to Financial Statements.
18 Oppenheimer Money Market Fund
<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. 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.
- --------------------------------------------------------------------------------
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' 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 six months
ended January 31, 1999, a provision of $6,606 was made for the Fund's projected
benefit obligations, resulting in an accumulated liability of $205,022 as of
January 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 fees 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 Director 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.
19 Oppenheimer Money Market Fund
<PAGE>
- --------------------------------------------------------------------------------
Notes to Financial Statements (Unaudited) (Continued)
- --------------------------------------------------------------------------------
================================================================================
1. Significant Accounting Policies (continued)
Distributions to Shareholders. The Fund intends to declare dividends from net
investment income each day the New York Stock Exchange is open for business and
pay such dividends monthly. To effect its policy of maintaining a net asset
value of $1.00 per share, the Fund may withhold dividends or make distributions
of net realized gains.
- --------------------------------------------------------------------------------
Other. Investment transactions are accounted for on the date the investments are
purchased or sold (trade date). Realized gains and losses on investments are
determined on an identified cost basis, which is the same basis used for federal
income tax purposes.
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of income and expenses during the reporting
period. Actual results could differ from those estimates.
================================================================================
2. Capital Stock
The Fund has authorized 5 billion shares of $.10 par value capital stock.
Transactions in shares of capital stock were as follows:
<TABLE>
<CAPTION>
Six Months Ended January 31, 1999 Year Ended July 31, 1998
---------------------------------- ----------------------------------
Shares Amount Shares Amount
- -----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Sold 1,700,001,251 $ 1,700,001,251 3,091,391,757 $ 3,091,391,757
Dividends and
distributions reinvested 30,268,626 30,268,626 51,650,982 51,650,982
Redeemed (1,546,278,294) (1,546,278,294) (2,962,241,518) (2,962,241,518)
-------------- --------------- -------------- ---------------
Net increase 183,991,583 $ 183,991,583 180,801,221 $ 180,801,221
============== =============== ============== ===============
</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. The Fund's management fee for the six months ended January
31, 1999 was 0.43 % of the Fund's average annual net assets.
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.
Expenses paid indirectly represent a reduction of custodian fees for
earnings on cash balances maintained by the Fund.
20 Oppenheimer Money Market Fund, Inc.
<PAGE>
- --------------------------------------------------------------------------------
Oppenheimer Money Market Fund, Inc.
- --------------------------------------------------------------------------------
================================================================================
Officers and Directors Leon Levy, Chairman of the Board of Directors
Donald W. Spiro, Vice Chairman of the Board of
Directors
Bridget A. Macaskill, President
Robert G. Galli, Director
Benjamin Lipstein, Director
Elizabeth B. Moynihan, Director
Kenneth A. Randall, Director
Edward V. Regan, Director
Russell S. Reynolds, Jr., Director
Pauline Trigere, Director
Clayton K. Yeutter, Director
Carol E. Wolf, Vice President
Arthur J. Zimmer, 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 LLP
================================================================================
Legal Counsel Gordon Altman Butowsky Weitzen Shalov & Wein
The financial statements included herein have been
taken from the records of the Fund without
examination by the independent auditors. This is a
copy of a report to shareholders of Oppenheimer
Money Market Fund, Inc.
This report must be preceded or accompanied by a
Prospectus of Oppenheimer Money Market Fund, Inc.
For material information concerning the Fund, see
the Prospectus.
Shares of Oppenheimer funds are not deposits or
obligations of any bank, are not guaranteed by any
bank, are not insured by the FDIC or any other
agency, and involve investment risks, including the
possible loss of the principal amount invested.
21 Oppenheimer Money Market Fund, Inc.
<PAGE>
- --------------------------------------------------------------------------------
OppenheimerFunds Family
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
=========================================================================================
Real Asset Funds
- -----------------------------------------------------------------------------------------
Real Asset Fund Gold & Special Minerals Fund
=========================================================================================
Global Stock Funds
- -----------------------------------------------------------------------------------------
<S> <C> <C>
Developing Markets Fund International Growth Fund Quest Global Value Fund
International Small Global Fund Global Growth & Income Fund
Company Fund Europe Fund
=========================================================================================
Stock Funds
- -----------------------------------------------------------------------------------------
Enterprise Fund MidCap Fund Growth Fund
Discovery Fund Capital Appreciation Fund Disciplined Value Fund
Quest Small Cap Value Fund Quest Capital Value Fund Quest Value Fund
Large Cap Growth Fund
=========================================================================================
Stock & Bond Funds
- -----------------------------------------------------------------------------------------
Main Street Growth & Total Return Fund Disciplined Allocation Fund
Income Fund1 Quest Balanced Multiple Strategies Fund
Quest Opportunity Value Fund Convertible Securities Fund
Value Fund Equity Income Fund
=========================================================================================
Taxable Bond Funds
- -----------------------------------------------------------------------------------------
International Bond Fund Champion Income Fund U.S. Government Trust
World Bond Fund Strategic Income Fund Limited-Term Government Fund
High Yield Fund Bond Fund
=========================================================================================
Municipal Bond Funds
- -----------------------------------------------------------------------------------------
California Municipal Fund2 Pennsylvania Municipal Fund2 Rochester Division:
Florida Municipal Fund2 Municipal Bond Fund Rochester Fund Municipals
New Jersey Municipal Fund2 Insured Municipal Fund Limited Term New York
New York Municipal Fund2 Intermediate Municipal Fund Municipal Fund
=========================================================================================
Money Market Funds3
- -----------------------------------------------------------------------------------------
Money Market Fund Cash Reserves
</TABLE>
1. On 12/22/98, the Fund's name was changed from "Main Street Income & Growth
Fund."
2. Available only to investors in certain states.
3. 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 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 or by visiting our website. 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 or website 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. Online
transactions now available
- ----------------------------
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
- ----------------------------
RS0200.001.0199 April 1, 1999
[LOGO] OppenheimerFunds(R)
Distributor, Inc.
