NICHOLAS MONEY MARKET FUND, INC.
February 29, 1996
Report to Shareholders:
Money market fund yields remained relatively stable
during 1995 after significant increases in 1994. During the
first half of 1995, yields continued to rise as a result of
the Federal Reserve's (Fed) inflation fighting efforts. The
Fed raised a key interest rate, the federal funds rate, in
early February by .25% to 6.00%. This move had a direct
impact on short-term rates. However, early in the second
half of the year, short-term rates declined as the Fed
reduced the federal funds rate by .25% to 5.75% in an
attempt to revive the economy. Rates remained reasonably
flat until late December when the Fed again reduced the
federal funds rate by .25% to 5.50%, stating that inflation
had been somewhat lower then anticipated.
Nicholas Money Market Fund's weighted average maturity
at year-end was 21 days. The Fund's investments continue to
be high quality, short-term corporate obligations, mainly
commercial paper. Management's commitment to low operating
costs helps to enhance the yield to investors.
Yields As Of Yields As Of
12/31/94 12/31/95
------------ ------------
Current 7-Day* 5.55% 5.39%
Effective 7-Day* 5.71% 5.53%
Current one year 3.84% 5.50%
Effective one year 3.90% 5.64%
*The current yield represents the annualized net investment
income per share for the stated time periods. The effective
yield assumes compounding. All performance data is
historical and does not represent future results.
Subsequent to year-end the Fed voted to cut the target
for federal funds rate to 5.25% in their continued attempt
to stimulate the economy while holding down inflation.
Management would like to thank our shareholders for
their continued support.
Sincerely,
/s/ Albert O. Nicholas
Albert O. Nicholas
President
<PAGE>
STATEMENT OF NET ASSETS
December 31, 1995
<TABLE>
<CAPTION>
YIELD TO AMORTIZED
PRINCIPAL MATURITY MATURITY COST
AMOUNT DATE (NOTE 1 (B)) (NOTE 1 (A))
- ----------- --------- ------------ ------------
<S> <C> <C> <C>
COMMERCIAL PAPER - 87.9%
$2,000,000 Bear Stearns Companies Inc. (The) 01/02/96 5.86% $ 2,000,000
2,425,000 CS First Boston Inc. 01/03/96 5.89% 2,424,611
1,700,000 Rexam plc 01/03/96 5.91% 1,699,726
2,744,000 LOCAP, Inc. 01/04/96 6.02% 2,743,100
2,000,000 Rexam plc 01/04/96 5.91% 1,999,355
3,775,000 Chrysler Financial Corporation 01/05/96 5.87% 3,773,191
1,775,000 Mosinee Paper Corporation 01/05/96 6.03% 1,774,127
1,925,000 Rexam plc 01/05/96 5.94% 1,924,065
2,875,000 Fleetwood Credit Corporation 01/08/96 5.89% 2,872,245
2,525,000 Fleetwood Credit Corporation 01/08/96 5.90% 2,522,572
1,600,000 American Honda Finance Corporation 01/09/96 5.90% 1,598,205
1,625,000 Mosinee Paper Corporation 01/09/96 6.07% 1,623,120
2,725,000 CS First Boston Inc. 01/10/96 5.89% 2,721,512
3,575,000 American Honda Finance Corporation 01/11/96 5.90% 3,569,843
2,650,000 Ford Motor Credit Company 01/12/96 5.87% 2,645,767
2,900,000 Sears Roebuck Acceptance Corporation 01/12/96 5.87% 2,895,368
2,900,000 Dresser Industries, Inc. 01/16/96 5.86% 2,893,515
3,400,000 Marshall & Ilsley Corporation 01/16/96 5.87% 3,392,397
1,825,000 Chrysler Financial Corporation 01/17/96 5.93% 1,820,582
2,000,000 Dover Corp. 01/17/96 5.85% 1,995,217
2,500,000 Dresser Industries Inc. 01/18/96 5.84% 2,493,644
3,600,000 Newell Co. 01/18/96 5.91% 3,590,720
2,200,000 Mosinee Paper Corporation 01/19/96 6.07% 2,193,819
1,900,000 Deere (John) Capital Corporation 01/22/96 5.87% 1,893,931
2,150,000 Dover Corp. 01/23/96 6.00% 2,142,625
3,075,000 General Electric Capital Corporation 01/24/96 5.91% 3,064,101
2,050,000 General Electric Capital Corporation 01/25/96 5.75% 2,042,613
2,275,000 Sears Roebuck Acceptance Corporation 01/26/96 5.92% 2,266,203
2,150,000 Ford Motor Credit Company 01/29/96 5.73% 2,140,938
2,625,000 Weyerhauser Real Estate Company 01/30/96 5.85% 2,613,322
2,500,000 American General Capital Services, Inc. 01/31/96 5.88% 2,488,400
1,500,000 Mosinee Paper Corporation 02/01/96 5.97% 1,492,688
2,125,000 Deere & Company 02/02/96 5.66% 2,114,844
1,500,000 General Signal Corporation 02/05/96 5.91% 1,491,826
1,125,000 Whirlpool Financial Corp. 02/06/96 5.82% 1,118,766
4,450,000 Frontier Corporation 02/09/96 5.90% 4,422,991
2,000,000 Newell Co. 02/12/96 5.89% 1,986,903
4,160,000 General Signal Corporation 02/13/96 5.78% 4,132,579
3,225,000 Whirlpool Financial Corp. 02/13/96 5.84% 3,203,554
2,600,000 Torchmark Corporation 03/27/96 5.76% 2,565,622
----------
TOTAL COMMERCIAL PAPER 98,348,611
----------
</TABLE>
The accompanying notes to financial statements are an
integral part of this statement.
<PAGE>
STATEMENT OF NET ASSETS (CONTINUED)
December 31, 1995
<TABLE>
<CAPTION>
YIELD TO AMORTIZED
PRINCIPAL MATURITY MATURITY COST
AMOUNT DATE (NOTE 1 (B)) (NOTE 1 (A))
- ----------- --------- ------------ ------------
<S> <C> <C> <C>
VARIABLE RATE SECURITIES _ 12.5%
$5,000,000 Danaher Corporation * 01/09/96 6.15% $ 5,000,000
558 Pitney Bowes Credit Corporation * 01/04/96 5.63% 558
11,622 Southwestern Bell Telephone Company * 01/04/96 5.87% 11,622
4,000,000 General Motors Acceptance Corporation
Medium Term Notes 01/03/96 5.59% 4,000,304
5,000,000 Anchor National Life Funding Agreement** 01/02/96 6.26% 5,000,000
-----------
TOTAL VARIABLE RATE SECURITIES 14,012,484
-----------
TOTAL INVESTMENTS 112,361,095
-----------
LIABILITIES, NET OF CASH AND RECEIVABLES (0.4%) (522,884)
-----------
TOTAL NET ASSETS (Basis of percentages
disclosed above) $111,838,211
-----------
-----------
NET ASSET VALUE PER SHARE ($.0001 par value,
3,000,000,000 shares authorized), offering
price and redemption price ($111,838,211
divided by 111,838,211 shares outstanding) $1.00
-----
-----
</TABLE>
* These securities are subject to a demand feature
as defined by the Securities and Exchange Commission.
** Not readily marketable for a 90 day period.
The accompanying notes to financial statements are an
integral part of this statement.
STATEMENT OF OPERATIONS
For the year ended December 31, 1995
INCOME:
Interest $6,651,885
----------
EXPENSES:
Management fee (Note 2) 330,975
Transfer agent fees 93,405
Registration fees 41,916
Legal fees 29,368
Postage 20,573
Custodian fees 17,069
Audit and tax consulting fees 13,775
Directors' fees 8,250
Printing 6,902
Telephone 2,520
Insurance 1,400
Pricing service fees 1,155
Other operating expenses 861
----------
568,169
----------
Net investment income $6,083,716
----------
----------
The accompanying notes to financial statements are an
integral part of this statement.
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
For the years ended December 31, 1995 and 1994
<TABLE>
<CAPTION>
1995 1994
-------------- -------------
<S> <C> <C>
OPERATIONS:
Net investment income $ 6,083,716 $ 4,714,571
DISTRIBUTIONS TO SHAREHOLDERS:
Distributions from net investment income
($0.055 and $0.038 per share, respectively) (6,083,716) (4,714,571)
---------- ----------
Increase in net assets from
investment activities _ _
---------- ----------
CAPITAL SHARE TRANSACTIONS (all at $1.00 per share):
Proceeds from shares issued 125,452,082 116,899,460
Net asset value of shares issued in
distributions from net investment income 5,909,339 3,993,882
Cost of shares redeemed (137,608,434) (125,349,299)
------------ ------------
Decrease in net assets derived
from capital share transactions (6,247,013) (4,455,957)
------------ ------------
Total decrease in net assets (6,247,013) (4,455,957)
------------ ------------
NET ASSETS, at the beginning of the year 118,085,224 122,541,181
------------ ------------
NET ASSETS, at the end of the year $111,838,211 $118,085,224
------------ ------------
------------ ------------
</TABLE>
The accompanying notes to financial statements are an
integral part of these statements.
<PAGE>
FINANCIAL HIGHLIGHTS
(For a share outstanding throughout each year)
<TABLE>
<CAPTION> Year ended December 31,
_____________________________________________________________________
1995 1994 1993 1992 1991 1990 1989 1988**
____ ____ ____ ____ ____ ____ ____ ____
<S> <C> <C> <C> <C> <C> <C> <C> <C>
NET ASSET VALUE,
BEGINNING OF YEAR $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
INCOME FROM
INVESTMENT OPERATIONS:
Net investment income .055 .038 .027 .033 .056 .078 .086 .038
----- ----- ----- ----- ----- ----- ----- -----
LESS DISTRIBUTIONS:
Dividends (from net
investment income) (.055) (.038) (.027) (.033) (.056) (.078) (.086) (.038)
----- ----- ----- ----- ----- ----- ----- -----
NET ASSET VALUE, $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
----- ----- ----- ----- ----- ----- ----- -----
----- ----- ----- ----- ----- ----- ----- -----
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of year
(millions) $111.8 $118.1 $122.5 $138.7 $147.0 $143.9 $90.0 $29.0
Ratio of expenses to
average net assets .51% .53% .54% .54% .52% .53% .72% .73%*
Ratio of net investment income
to average net assets 5.50% 3.83% 2.67% 3.30% 5.61% 7.84% 8.60% 7.57%*
</TABLE>
* Annualized
** For the period from July 1, 1988 (date of initial
public offering) through December 31, 1988.
The accompanying notes to financial statements are an
integral part of these statements.
<PAGE>
NOTES TO FINANCIAL STATEMENTS
December 31, 1995
(1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES -
The Nicholas Money Market Fund, Inc. (the "Fund") is
registered under the Investment Company Act of 1940, as
amended, as an open-end diversified investment company.
The primary objective of the Fund is to achieve as high
a level of current income as is consistent with
preserving capital and providing liquidity. The
following is a summary of significant accounting
policies followed by the Fund.
(a) Securities held by the Fund, which are
purchased at a discount or premium, are valued
on the basis of amortized cost, done on a
straight line method which is not materially
different than the level yield method. Amortized
cost approximates market value and does not take
into account unrealized gains or losses or the
impact of fluctuating interest rates. Variable
rate instruments purchased at par are valued
at cost. Investment transactions are accounted
for on the trade date.
(b) Yield to maturity is calculated at date of
purchase for commercial paper. For variable rate
securities, the yield to maturity is calculated
based on the next interest reset date.
(c) The Fund maintains a dollar-weighted average
portfolio maturity of 90 days or less and
purchases investments which have maturities of
397 days or less. As of December 31, 1995, the
Fund's dollar-weighted average portfolio
maturity was 21 days. Days to maturity on
variable rate securities are based on the number
of days until the interest reset date or demand
feature, whichever is longer.
(d) It is the Fund's policy to comply with the
requirements of the Internal Revenue Code
applicable to regulated investment companies,
and to distribute all of its taxable income to
its shareholders. Therefore, no Federal income
tax or excise tax provision is required.
(2) INVESTMENT ADVISER AND MANAGEMENT AGREEMENT -
The Fund has an agreement with Nicholas Company, Inc.
(with whom certain officers and directors of the Fund
are affiliated) to serve as investment adviser and
manager. Under the terms of the agreement, a monthly
fee is paid to the investment adviser at an annual rate
of .30 of 1% of the daily average net asset value of
the Fund. The adviser will reimburse the Fund if total
operating expenses (other than the management fee)
incurred by the Fund exceed .50 of 1% of the average
net assets for the year. At December 31, 1995, the
Fund owed Nicholas Company, Inc. $29,374 for advisory
services.
<PAGE>
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
To the Shareholders and Board of Directors
of Nicholas Money Market Fund, Inc.:
We have audited the accompanying statement of net
assets of NICHOLAS MONEY MARKET FUND, INC. (a Maryland
corporation), as of December 31, 1995, the related statement
of operations for the year then ended, the statements of
changes in net assets for the years ended December 31, 1995
and 1994, and the financial highlights for the periods
presented. These financial statements and financial
highlights are the responsibility of the Fund's management.
Our responsibility is to express an opinion on these
financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with generally
accepted auditing standards. Those standards require that
we plan and perform the audit to obtain reasonable assurance
about whether the financial statements and financial
highlights are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the
amounts and disclosures in the financial statements. Our
procedures included confirmation of securities owned as of
December 31, 1995, by correspondence with the custodian and
brokers. An audit also includes assessing the accounting
principles used and significant estimates made by
management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide
a reasonable basis for our opinion.
In our opinion, the financial statements and financial
highlights referred to above present fairly, in all material
respects, the financial position of Nicholas Money Market
Fund, Inc. as of December 31, 1995, the results of its
operations for the year then ended, the changes in its net
assets for the years ended December 31, 1995 and 1994, and
the financial highlights for the periods presented, in
conformity with generally accepted accounting principles.
ARTHUR ANDERSEN LLP
Milwaukee, Wisconsin,
January 16, 1996.
<PAGE>
Officers and Directors
ALBERT O. NICHOLAS
President, Treasurer and Director
FREDERICK F. HANSEN
Director
JAY H. ROBERTSON
Director
MELVIN L. SCHULTZ
Director
DAVID L. JOHNSON
Executive Vice President
THOMAS J. SAEGER
Executive Vice President and Secretary
JEFFREY T. MAY
Senior Vice President
DAVID O. NICHOLAS
Vice President
LYNN S. NICHOLAS
Vice President
KATHLEEN A. EVANS
Vice President
CANDACE L. LESAK
Vice President
Custodian and Transfer Agent
FIRSTAR TRUST COMPANY
Milwaukee
(414) 276-0535
Counsel
MICHAEL, BEST & FRIEDRICH
Milwaukee
Auditors
ARTHUR ANDERSEN LLP
Milwaukee
This report is submitted for the information of shareholders
of the Fund. It is not authorized for distribution to
prospective investors unless preceded or accompanied by an
effective prospectus.
ANNUAL REPORT
NICHOLAS
MONEY MARKET FUND,
INC.
700 North
Water Street
Milwaukee,
Wisconsin 53202
December 31, 1995
