[photo of waterfall]
Semiannual Report January 31, 2000
Oppenheimer
Money Market Fund, Inc.
[logo] OppenheimerFunds(R)
The Right Way to Invest
<PAGE>
REPORT HIGHLIGHTS
Money market returns were generally higher than the yields reported one year
ago, primarily because of higher short-term interest rates during the reporting
period.
Consistent with maintaining liquidity and preserving capital, we generally found
the most attractive yields in high-quality asset-backed commercial paper.
Current Yield
For the 7-Day Period Ended 1/31/00*
Class A
With Without
Compounding Compounding
- -------------------------
5.39% 5.25%
CONTENTS
1 President's Letter
3 An Interview
with Your Fund's
Manager
7 Financial
Statements
19 Officers and Directors
20 OppenheimerFunds
Family
- ------------------------
Not FDIC Insured.
No Bank Guarantee.
May Lose Value.
- ------------------------
* See page 5 for further details.
<PAGE>
PRESIDENT'S LETTER
[Macaskill photo]
Bridget A. Macaskill
President
Oppenheimer
Money Market
Fund, Inc.
Dear shareholder,
Whenever a new year begins--let alone a new decade or century--it makes sense to
pause a moment to assess where we've been and where we're going.
In retrospect, U.S. stocks and bonds in 1999 were subject to sudden and
substantial swings in investor sentiment because of economic uncertainty. When
the year began, investors were concerned that growth in the United States might
slow in response to economic weakness overseas. At mid-year, investors were
concerned that the economy was too strong, potentially rekindling inflationary
pressures. Yet, by year end, it became clearer that while the U.S. economy grew
robustly in 1999, inflation remained at low levels. Indeed, investors appeared
more comfortable with the economy after the Federal Reserve Board demonstrated
its inflation-fighting resolve by raising interest rates three times between
June and November.
As is normal in a rising-interest-rate environment, bond prices generally
declined in 1999, led lower by U.S. Treasury bonds. In the stock market, while
most major indices advanced, strong performance was mostly limited to a handful
of large-capitalization growth companies, principally in the technology arena.
Smaller and value-oriented stocks provided particularly lackluster returns, and
overall, foreign stocks outperformed U.S. stocks in 1999.
Looking forward, we expect the U.S. economy to remain on a
moderate-growth, low-inflation course. As recent revisions of 1999's economic
statistics demonstrated, the economy has defied many analysts' forecasts by
growing at a strong rate, which should be positive for the bond market.
Similarly, positive economic forces could help the stock market's performance
broaden to include value-oriented and smaller stocks.
We see particularly compelling opportunities outside of the U.S. market.
Many foreign stocks also ended 1999 more attractively valued than large-cap U.S.
stocks, and economic trends in overseas markets could lead to higher stock
prices. In Europe, corporate restructuring has just begun, giving
1 | OPPENHEIMER MONEY MARKET FUND, INC.
<PAGE>
PRESIDENT'S LETTER
companies there the same potential for cost-cutting and productivity
improvements that U.S. companies enjoyed 10 years ago. In Japan and Asia,
economic recovery is expected to gain strength, which could allow stocks to
rally from relatively low levels.
Another 1999 trend that should remain in force in 2000 is the growth of
businesses related to the Internet. The rise of e-commerce has been good for
consumers and the economy because of greater price competition, which has helped
keep inflation under control. The Internet has also been good for investors, as
even companies with no earnings have seen their stock prices soar. Clearly,
while the Internet is here to stay, not all "dot-com" companies will survive,
and many of these high-flying Internet stocks will eventually--and perhaps very
suddenly--return to more reasonable levels. The long-term winners are most
likely to be companies that support the Internet's growth with content or
infrastructure.
What else is in store for investors in 2000? While we do not have an
infallible crystal ball, we believe that in almost any investment environment,
consistent success stems from an unwavering focus on fundamental investment
principles such as maintaining a long-term perspective, using diversification to
manage risk and availing oneself of the services of a knowledgeable financial
advisor. Indeed, these principles serve as the foundation for every investment
we offer, helping to make OppenheimerFunds The Right Way to Invest in 2000 and
beyond.
Sincerely,
/S/ Bridget A. Macaskill
Bridget A. Macaskill
February 22, 2000
These general market views represent opinions of OppenheimerFunds, Inc. and
are not intended to predict or depict performance of any particular fund.
Specific discussion, as it applies to your Fund, is contained in the pages that
follow.
2 | OPPENHEIMER MONEY MARKET FUND, INC.
<PAGE>
AN INTERVIEW WITH YOUR FUND'S MANAGER
Q How has the Fund performed over the past six months?
A. Over the six-month period that ended January 31, 2000, 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 that ended January 31, 2000, the Fund's compounded current
yield was 5.39%. Without compounding, the corresponding yield was 5.25%.(1)
These returns were generally higher than the yields reported one year ago,
primarily because of higher short-term interest rates during the reporting
period.
How did the robust U.S. economy affect interest rates?
When the reporting period began, the Federal Reserve had just initiated the
first interest-rate increases of 1999. The rate hike was a pre-emptive response
to concerns that stronger than expected economic growth might rekindle
long-dormant inflationary pressures. These concerns were fueled by positive
economic news from overseas, where the worst of the economic malaise appeared to
be over for Japan, Asia and Latin America, and within the United States, where
unemployment reached historical lows and consumers appeared to be spending more
than they were earning. The Federal Reserve Board subsequently raised interest
rates twice more during the summer and fall, effectively offsetting all of
1998's rate cuts.
1. See page 5 for further details.
3 | OPPENHEIMER MONEY MARKET FUND, INC.
<PAGE>
AN INTERVIEW WITH YOUR FUND'S MANAGER
Did Y2K influence the money markets at all?
Yes. The money markets were affected by Y2K-related worries. Although the
investment community's consensus opinion appeared to be that the U.S. financial
system was prepared for the advent of the year 2000, many issuers decided to
play it safe by issuing securities that generally featured maturity dates in
January and February of 2000. This reduced the need for the issuers to return to
the marketplace close to year-end 1999. However, because so many issuers came to
market at the same time, they were compelled to increase their securities'
yields in order to attract investor interest. Money market fund shareholders
generally benefited from these higher yields.
How did you manage the Fund in such an environment?
Under these market conditions, we focused primarily on enhancing the Fund's
yield in a way that was consistent with maintaining liquidity and preserving
capital. We generally found the most attractive yields in high-quality
asset-backed commercial paper. The asset-backed commercial paper market has
grown tremendously over the past several years, but we have invested only in
highly liquid securities from seasoned issuers who have passed our rigorous
credit analysis. We also found attractive income opportunities in commercial
paper issued by financial companies, such as high-quality insurers and banks. On
the other hand, we found few opportunities in U.S. Treasury bills, which were in
relatively short supply because of the federal budget surplus.
What is your outlook over the coming months?
We expect the U.S. economy to remain strong over the next several months, which
may prompt the Federal Reserve Board to increase interest rates further.
Regardless of the direction of interest rates over the coming months, we will
continue to search for attractive yield while prudently keeping your objectives
of safety and liquidity first in mind. This is part of our commitment to keep
Oppenheimer Money Market Fund, Inc. an important part of The Right Way to
Invest.
[callout]
"We generally found the most attractive yields in high-quality asset-backed
commercial paper."
4 | OPPENHEIMER MONEY MARKET FUND, INC.
<PAGE>
NOTES
In reviewing performance and rankings, 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.
Compounded yields assume reinvestment of dividends.
5 | OPPENHEIMER MONEY MARKET FUND, INC.
<PAGE>
Financials
6 | OPPENHEIMER MONEY MARKET FUND, INC.
<PAGE>
STATEMENT OF INVESTMENTS January 31, 2000 / Unaudited
<TABLE>
<CAPTION>
Face Value
Amount See Note 1
===================================================================================
<S> <C> <C>
Direct Bank Obligations--3.1%
Deutsche Bank AG:
5.88%, 3/29/00 $25,000,000 $25,001,622
- -----------------------------------------------------------------------------------
U.S. Bank NA Minneapolis:
5.96%, 3/22/00(1) 30,000,000 30,000,000
-----------
Total Direct Bank Obligations 55,001,622
===================================================================================
Letters of Credit--1.3%
Bank of America, guaranteeing commercial paper of
Formosa Plastics Corp., USA, Series II:
5.91%, 5/12/00 23,000,000 22,618,641
- -----------------------------------------------------------------------------------
Bank One Indiana NA, guaranteeing commercial paper
of Primex Funding Corp.:
5.94%, 8/1/07(2,3) 300,000 300,000
-----------
Total Letters of Credit 22,918,641
===================================================================================
Short-Term Notes--96.9%
- -----------------------------------------------------------------------------------
Aerospace/Defense--2.2%
British Aerospace North America, Inc.:
6.14%, 3/8/00-3/10/00(1) 39,641,000 39,390,563
- -----------------------------------------------------------------------------------
Asset-Backed--24.4%
Asset Backed Capital Finance, Inc.:
5.86%, 3/23/00(1) 11,000,000 10,908,682
5.95%, 2/8/00(1) 6,250,000 6,242,769
6.08%, 2/1/00(1) 20,000,000 20,000,000
- -----------------------------------------------------------------------------------
Asset-Securitization Cooperative:
5.82%, 2/23/00-2/24/00(1) 33,000,000 32,881,014
- -----------------------------------------------------------------------------------
Beta Finance, Inc.:
5.80%, 3/14/00(1) 25,000,000 24,830,833
5.82%, 3/20/00(1) 20,000,000 19,845,333
- -----------------------------------------------------------------------------------
Breeds Hill Capital Co. LLC, Series A:
5.91%, 3/16/00(1) 9,600,000 9,530,656
5.93%, 2/11/00(1) 29,770,000 29,720,631
6.18%, 3/6/00(1) 10,000,000 9,941,633
- -----------------------------------------------------------------------------------
CIESCO LP:
6.17%, 2/17/00 35,000,000 34,904,022
- -----------------------------------------------------------------------------------
Falcon Asset Securitization Corp.:
5.65%, 2/10/00(1) 24,530,000 24,495,351
- -----------------------------------------------------------------------------------
Lexington Parker Capital Co. LLC:
5.90%, 4/24/00(1) 14,199,000 14,005,854
5.92%, 3/17/00(1) 7,000,000 6,948,200
6%, 3/2/00(1) 14,700,000 14,626,500
- -----------------------------------------------------------------------------------
Moat Funding LLC:
5.80%, 3/9/00(1) 10,000,000 9,940,389
7 | OPPENHEIMER MONEY MARKET FUND, INC.
<PAGE>
STATEMENT OF INVESTMENTS Unaudited / Continued
Face Value
Amount See Note 1
- -----------------------------------------------------------------------------------
Asset-Backed Continued
Moriarty Ltd.:
5.88%, 4/25/00-4/27/00(1) $30,000,000 $ 29,584,153
- -----------------------------------------------------------------------------------
Park Avenue Receivables Corp.:
5.92%, 2/14/00(1) 11,000,000 10,976,484
- -----------------------------------------------------------------------------------
Preferred Receivables Funding Corp.:
5.83%, 3/23/00(1) 27,000,000 26,777,003
5.85%, 2/8/00(1) 10,000,000 9,988,625
- -----------------------------------------------------------------------------------
Sigma Finance, Inc.:
5.87%, 2/22/00-4/10/00(1) 32,000,000 31,835,640
5.95%, 3/29/00(1) 10,000,000 9,905,792
- -----------------------------------------------------------------------------------
Variable Funding Capital Corp.:
5.68%, 2/18/00(1) 25,000,000 24,932,944
5.75%, 3/3/00(1) 16,000,000 15,920,778
------------
428,743,286
- -----------------------------------------------------------------------------------
Banks--4.2%
Banc One Financial Corp.:
5.77%, 3/10/00(1) 20,000,000 19,878,189
- -----------------------------------------------------------------------------------
Credit Suisse First Boston, Inc.:
5.61%, 2/11/00(1) 15,000,000 14,976,625
5.79%, 2/8/00(1) 15,000,000 14,983,113
- -----------------------------------------------------------------------------------
Keycorp:
5.97%, 2/3/00 10,000,000 9,996,683
5.98%, 3/31/00 15,000,000 14,852,992
------------
74,687,602
- -----------------------------------------------------------------------------------
Broker/Dealers--15.9%
Banc of America Securities LLC:
6.013%, 2/1/00(2) 50,000,000 50,000,000
- -----------------------------------------------------------------------------------
Bear Stearns Cos., Inc.:
5.45%, 2/7/00 20,000,000 19,981,833
5.781%, 2/14/00(2) 15,000,000 15,000,000
5.95%, 3/21/00 15,000,000 14,878,521
- -----------------------------------------------------------------------------------
Goldman Sachs Group LP:
5.95%, 3/9/00 20,000,000 19,877,694
8 | OPPENHEIMER MONEY MARKET FUND, INC.
<PAGE>
Face Value
Amount See Note 1
- -----------------------------------------------------------------------------------
Broker/Dealers Continued
Goldman Sachs Group LP Promissory Note:
6.01%, 3/27/00(3) $20,000,000 $ 20,000,000
- -----------------------------------------------------------------------------------
Merrill Lynch & Co., Inc.:
5.85%, 2/7/00-3/15/00 48,000,000 47,863,013
- -----------------------------------------------------------------------------------
Morgan Stanley, Dean Witter & Co.:
5.812%, 6/8/00(2) 50,000,000 50,000,000
5.79%, 2/28/00 20,000,000 19,913,150
- -----------------------------------------------------------------------------------
Morgan Stanley, Dean Witter & Co., Series C:
6.221%, 3/15/01(2) 7,000,000 7,000,000
- -----------------------------------------------------------------------------------
Salomon Smith Barney Holdings, Inc.:
5.50%, 2/8/00 15,000,000 14,983,958
------------
279,498,169
- -----------------------------------------------------------------------------------
Building Materials--2.0%
Compagnie de Saint-Gobain:
5.80%, 3/27/00(1) 35,000,000 34,689,861
- -----------------------------------------------------------------------------------
Chemicals--0.8%
Henkel Corp.:
5.72%, 3/13/00(1) 14,000,000 13,908,798
- -----------------------------------------------------------------------------------
Commercial Finance--10.2%
Caterpillar Financial Services Corp.:
6.10%, 4/3/00 15,000,000 14,842,417
- -----------------------------------------------------------------------------------
CIT Group, Inc.:
5.84%, 4/26/00 15,000,000 14,793,167
5.92%, 3/24/00 25,000,000 24,786,222
- -----------------------------------------------------------------------------------
Countrywide Home Loans:
5.67%, 2/9/00 25,000,000 24,968,500
6.20%, 2/16/00 7,000,000 6,983,375
6.60%, 2/4/00 10,000,000 9,994,500
- -----------------------------------------------------------------------------------
Heller Financial, Inc.:
5.90%, 3/2/00 7,500,000 7,463,125
6.10%, 2/18/00 15,000,000 14,956,792
- -----------------------------------------------------------------------------------
Heller Financial, Inc., Series H:
6.33%, 3/1/00(2) 10,000,000 10,002,718
- -----------------------------------------------------------------------------------
Homeside Lending, Inc.:
5.83%, 2/16/00 30,000,000 29,927,125
5.86%, 2/3/00 20,000,000 19,993,456
------------
178,711,397
9 | OPPENHEIMER MONEY MARKET FUND, INC.
<PAGE>
STATEMENT OF INVESTMENTS Unaudited / Continued
Face Value
Amount See Note 1
- -----------------------------------------------------------------------------------
Consumer Finance--3.3%
American Express Credit Corp.:
5.60%, 2/4/00 $34,000,000 $ 33,984,133
- -----------------------------------------------------------------------------------
American General Finance Corp.:
5.82%, 3/3/00 25,000,000 24,874,708
------------
58,858,841
- -----------------------------------------------------------------------------------
Diversified Financial--7.1%
Ford Motor Credit Co.:
5.58%, 2/22/00 20,000,000 19,933,967
- -----------------------------------------------------------------------------------
General Electric Capital Corp.:
5.90%, 3/13/00 15,000,000 14,899,208
- -----------------------------------------------------------------------------------
General Electric Capital Services:
5.83%, 3/16/00 40,000,000 39,714,978
5.90%, 3/10/00 10,000,000 9,937,722
- -----------------------------------------------------------------------------------
National Rural Utilities Cooperative Finance Corp.:
5.72%, 3/21/00 10,000,000 9,922,145
5.80%, 4/4/00 20,000,000 19,797,000
6%, 3/28/00 10,000,000 9,906,667
------------
124,111,687
- -----------------------------------------------------------------------------------
Diversified Media--1.7%
Omnicom Finance, Inc.:
5.68%, 2/4/00(1) 5,000,000 4,997,633
5.72%, 2/7/00(1) 5,000,000 4,995,233
5.85%, 2/14/00(1) 20,000,000 19,957,750
------------
29,950,616
- -----------------------------------------------------------------------------------
Electrical Equipment--2.5%
Xerox Capital (Europe) plc:
5.84%, 2/1/00 43,650,000 43,650,000
- -----------------------------------------------------------------------------------
Electric Utilities--1.9%
Edison International:
5.72%, 3/13/00(1) 18,000,000 17,882,740
5.89%, 4/17/00(1) 16,000,000 15,801,049
------------
33,683,789
10 | OPPENHEIMER MONEY MARKET FUND, INC.
<PAGE>
Face Value
Amount See Note 1
- -----------------------------------------------------------------------------------
Gas Utilities--1.2%
Centrica plc:
5.90%, 4/26/00(1) $20,815,000 $ 20,525,036
- -----------------------------------------------------------------------------------
Insurance--7.7%
AIG Life Insurance Co.:
5.828%, 2/1/00(2,3) 20,000,000 20,000,000
- -----------------------------------------------------------------------------------
Jackson National Life Insurance Co.:
5.83%, 8/1/00(2) 2,000,000 2,000,000
5.83%, 2/1/00(2) 30,000,000 30,000,000
- -----------------------------------------------------------------------------------
Metropolitan Life Insurance Co.:
6.077%, 2/1/00(2) 33,000,000 33,000,000
- -----------------------------------------------------------------------------------
Protective Life Insurance Co.:
5.857%, 2/1/00(2) 15,000,000 15,000,000
- -----------------------------------------------------------------------------------
Prudential Insurance Co. of America:
6.04%, 4/3/00(2) 25,000,000 25,000,000
- -----------------------------------------------------------------------------------
Travelers Insurance Co.:
5.848%, 10/5/00(2,3) 10,000,000 10,000,000
------------
135,000,000
- -----------------------------------------------------------------------------------
Leasing & Factoring--1.7%
American Honda Finance Corp.:
5.803%, 2/16/00(2,4) 20,000,000 19,997,886
5.84%, 4/19/00 10,000,000 9,873,467
------------
29,871,353
- -----------------------------------------------------------------------------------
Metals/Mining--0.8%
Alcoa, Inc.:
5.88%, 4/26/00 14,196,000 13,998,912
- -----------------------------------------------------------------------------------
Oil: Domestic--1.1%
Motiva Enterprises LLC:
5.72%, 3/22/00-3/24/00 20,000,000 19,837,934
- -----------------------------------------------------------------------------------
Photography--1.2%
Eastman Kodak Co.:
5.90%, 4/20/00 21,000,000 20,728,108
- -----------------------------------------------------------------------------------
Special Purpose Financial--4.8%
Intrepid Funding Master Trust, Series 1999A:
6.05%, 2/2/00(4) 25,000,000 24,995,799
- -----------------------------------------------------------------------------------
KZH-KMS Corp.:
5.83%, 3/29/00(1) 20,000,000 19,815,383
5.86%, 4/6/00(1) 9,000,000 8,904,775
- -----------------------------------------------------------------------------------
SMM Trust, Series 1999-B:
6.181%, 3/15/00(2,3) 30,000,000 30,000,000
------------
83,715,957
11 | OPPENHEIMER MONEY MARKET FUND, INC.
<PAGE>
STATEMENT OF INVESTMENTS Unaudited / Continued
Face Value
Amount See Note 1
- -----------------------------------------------------------------------------------
Telecommunications: Technology--2.2%
GTE Corp.:
5.69%, 2/7/00(1) $ 5,000,000 $ 4,995,258
- -----------------------------------------------------------------------------------
GTE Corp., Series A:
6.155%, 3/13/00(2) 33,000,000 32,992,337
--------------
37,987,595
--------------
Total Short-Term Notes 1,701,549,504
===================================================================================
U.S. Government Agencies--0.9%
Federal Home Loan Mortgage Corp.:
5.66%, 3/7/00 15,000,000 14,917,458
- -----------------------------------------------------------------------------------
Total Investments, at Value 102.2% 1,794,387,225
- -----------------------------------------------------------------------------------
Liabilities in Excess of Other Assets (2.2) (38,140,661)
------------------------------
Net Assets 100.0% $1,756,246,564
==============================
</TABLE>
FOOTNOTES TO STATEMENT OF INVESTMENTS
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 $679,541,270, or 38.69% of the
Fund's net assets, and have been determined to be liquid pursuant to guidelines
adopted by the Board of Directors.
2. Represents the current interest rate for a variable or increasing rate
security.
3. Represents a restricted security that 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 $80,300,000, or 4.57% 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.
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 $44,993,685, or 2.56% of the Fund's net
assets as of January 31, 2000.
See accompanying Notes to Financial Statements.
12 | OPPENHEIMER MONEY MARKET FUND, INC.
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES Unaudited
<TABLE>
<CAPTION>
January 31, 2000
===================================================================================
<S> <C>
Assets
Investments, at value--see accompanying statement $1,794,387,225
- -----------------------------------------------------------------------------------
Cash 3,980,695
- -----------------------------------------------------------------------------------
Receivables and other assets:
Shares of capital stock sold 87,583,715
Interest 2,959,223
Other 69,339
--------------
Total assets 1,888,980,197
===================================================================================
Liabilities
Payables and other liabilities:
Shares of capital stock redeemed 130,008,958
Dividends 1,987,408
Transfer and shareholder servicing agent fees 289,651
Directors' compensation 210,792
Other 236,824
--------------
Total liabilities 132,733,633
===================================================================================
Net Assets $1,756,246,564
==============
===================================================================================
Composition of Net Assets
Par value of shares of capital stock $ 175,635,200
- -----------------------------------------------------------------------------------
Additional paid-in capital 1,580,569,021
- -----------------------------------------------------------------------------------
Accumulated net realized gain on investment transactions 42,343
--------------
Net assets--applicable to 1,756,353,998 shares of capital
stock outstanding $1,756,246,564
==============
===================================================================================
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 Unaudited
<TABLE>
<CAPTION>
For the Six Months Ended January 31, 2000
===================================================================================
<S> <C>
Investment Income
Interest $47,475,145
===================================================================================
Expenses
Management fees 3,501,328
- -----------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees 2,160,538
- -----------------------------------------------------------------------------------
Shareholder reports 318,927
- -----------------------------------------------------------------------------------
Directors' compensation 50,779
- -----------------------------------------------------------------------------------
Custodian fees and expenses 38,191
- -----------------------------------------------------------------------------------
Other 121,610
-----------
Total expenses 6,191,373
Less expenses paid indirectly (7,162)
-----------
Net expenses 6,184,211
===================================================================================
Net Investment Income 41,290,934
===================================================================================
Net Increase in Net Assets Resulting from Operations $41,290,934
===========
</TABLE>
See accompanying Notes to Financial Statements.
14 | OPPENHEIMER MONEY MARKET FUND, INC.
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
Six Months Year
Ended Ended
Jan. 31, 2000 July 31,
(Unaudited) 1999
===================================================================================
<S> <C> <C>
Operations
Net investment income $ 41,290,934 $ 61,850,009
- -----------------------------------------------------------------------------------
Net realized gain -- 39,387
------------------------------
Net increase in net assets resulting from operations 41,290,934 61,889,396
===================================================================================
Dividends and/or Distributions to Shareholders (41,290,934) (61,850,009)
===================================================================================
Capital Stock Transactions
Net increase in net assets resulting from
capital stock transactions 259,801,038 301,662,160
===================================================================================
Net Assets
Total increase 259,801,038 301,701,547
- -----------------------------------------------------------------------------------
Beginning of period 1,496,445,526 1,194,743,979
------------------------------
End of period $1,756,246,564 $1,496,445,526
==============================
</TABLE>
See accompanying Notes to Financial Statements.
15 | OPPENHEIMER MONEY MARKET FUND, INC.
<PAGE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
Six Months Year Year
Ended Ended Ended
Jan. 31, 2000 July 31, Dec. 31,
(Unaudited) 1999 1998 1997 1996(1) 1995
==============================================================================================================================
<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 .03 .05 .05 .05 .03 .05
Dividends and/or distributions
to shareholders (.03) (.05) (.05) (.05) (.03) (.05)
----------------------------------------------------------------------------
Net asset value, end of period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
============================================================================
==============================================================================================================================
Total Return(2) 2.51% 4.61% 5.03% 4.83% 2.80% 5.40%
==============================================================================================================================
Ratios/Supplemental Data
Net assets, end of period (in millions) $1,756 $1,496 $1,195 $1,014 $1,102 $818
- ------------------------------------------------------------------------------------------------------------------------------
Average net assets (in millions) $1,655 $1,371 $1,114 $1,011 $ 901 $855
- ------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets:(3)
Net investment income 4.95% 4.51% 4.89% 4.73% 4.68% 5.19%
Expenses 0.74% 0.78% 0.87%(4) 0.87%(4) 0.84%(4) 0.90%(4)
</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 has not been grossed up to reflect the effect of expenses paid
indirectly.
See accompanying Notes to Financial Statements.
16 | OPPENHEIMER MONEY MARKET FUND, INC.
<PAGE>
NOTES TO FINANCIAL STATEMENTS Unaudited
================================================================================
1. Significant Accounting Policies
Oppenheimer Money Market Fund, Inc. (the Fund) is registered under the
Investment Company Act of 1940, as amended, as a diversified, open-end
management investment company. The Fund's investment objective is to seek the
maximum current income that is consistent with stability of principal. 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 an unfunded retirement plan for
the Fund's independent Board of 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, 2000, a provision of $5,048 was made for the Fund's
projected benefit obligations, resulting in an accumulated liability of $201,845
as of January 31, 2000.
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 Board of Directors in shares of one
or more Oppenheimer funds selected by the director. The amount paid to the Board
of Directors 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 investment income per share.
- --------------------------------------------------------------------------------
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.
17 | OPPENHEIMER MONEY MARKET FUND, INC.
<PAGE>
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
================================================================================
1. Significant Accounting Policies Continued
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>
Six Months Ended January 31, 2000 Year Ended July 31, 1999
Shares Amount Shares Amount
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Sold 2,325,115,202 $ 2,325,115,202 3,609,705,072 $ 3,609,705,072
Dividends and/or distributions
reinvested 39,468,657 39,468,657 58,739,770 58,739,770
Redeemed (2,104,782,821) (2,104,782,821) (3,366,782,682) (3,366,782,682)
--------------------------------------------------------------------------
Net increase 259,801,038 $ 259,801,038 301,662,160 $ 301,662,160
==========================================================================
</TABLE>
================================================================================
3. 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 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, 2000, was 0.42% of the
Fund's average annual net assets, annualized for periods of less than one full
year.
- --------------------------------------------------------------------------------
Transfer Agent Fees. OppenheimerFunds Services (OFS), a division of the Manager,
is the transfer and shareholder servicing agent for the Fund and for other
Oppenheimer funds. OFS's total costs of providing such services are allocated
ratably to these funds.
18 | OPPENHEIMER MONEY MARKET FUND, INC.
<PAGE>
OPPENHEIMER MONEY MARKET FUND, INC.
<TABLE>
========================================================================================
<S> <C>
Officers and Directors Leon Levy, Chairman of the Board of Directors
Donald W. Spiro, Vice Chairman of the Board of Directors
Bridget A. Macaskill, President
Robert G. Galli, Director
Benjamin Lipstein, Director
Elizabeth B. Moynihan, Director
Kenneth A. Randall, Director
Edward V. Regan, Director
Russell S. Reynolds, Jr., Director
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
The financial statements included herein have been taken from
the records of the Fund without examination of the independent
auditors.
This is a copy of a report to shareholders of Oppenheimer
Money Market Fund, Inc. This report must be preceded or
accompanied by a Prospectus of Oppenheimer Money Market Fund,
Inc. For material information concerning the Fund, see the
Prospectus.
Shares of Oppenheimer funds are not deposits or obligations of
any bank, are not guaranteed by any bank, are not insured by
the FDIC or any other agency, and involve investment risks,
including the possible loss of the principal amount invested.
</TABLE>
19 | OPPENHEIMER MONEY MARKET FUND, INC.
<PAGE>
OPPENHEIMERFUNDS FAMILY
<TABLE>
============================================================================================================
<S> <C> <C>
Global Equity
Developing Markets Fund Global Fund
International Small Company Fund Quest Global Value Fund
Europe Fund Global Growth & Income Fund
International Growth Fund
============================================================================================================
Equity
Stock Stock & Bond
Enterprise Fund(1) Main Street(R) Growth & Income Fund
Discovery Fund Quest Opportunity Value Fund
Main Street(R) Small Cap Fund Total Return Fund
Quest Small Cap Value Fund Quest Balanced Value Fund
MidCap Fund Capital Income Fund(2)
Capital Appreciation Fund Multiple Strategies Fund
Growth Fund Disciplined Allocation Fund
Disciplined Value Fund Convertible Securities Fund
Quest Value Fund
Trinity Growth Fund Specialty
Trinity Core Fund Real Asset Fund
Trinity Value Fund Gold & Special Minerals Fund
============================================================================================================
Fixed Income
Taxable Municipal
International Bond Fund California Municipal Fund(3)
World Bond Fund Main Street(R) California Municipal Fund(3)
High Yield Fund Florida Municipal Fund(3)
Champion Income Fund New Jersey Municipal Fund(3)
Strategic Income Fund New York Municipal Fund(3)
Bond Fund Pennsylvania Municipal Fund(3)
Senior Floating Rate Fund Municipal Bond Fund
U.S. Government Trust Insured Municipal Fund
Limited-Term Government Fund Intermediate Municipal Fund
Rochester Division
Rochester Fund Municipals
Limited Term New York Municipal Fund
============================================================================================================
Money Market(4)
Money Market Fund Cash Reserves
</TABLE>
1. Effective July 1, 1999, this fund is closed to new investors. See prospectus
for details.
2. On 4/1/99, the Fund's name was changed from "Oppenheimer Equity Income Fund."
3. Available to investors only 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 2000 OppenheimerFunds, Inc. All rights reserved.
20 | 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-7pm 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
- --------------------------------------------------------------------------------
RS0200.001.0100 March 31, 2000 [logo] OppenheimerFunds(R)
Distributor, Inc.
