UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number 811-2454
OPPENHEIMER MONEY MARKET FUND, INC.
(Exact name of registrant as specified in charter)
6803 SOUTH TUCSON WAY, CENTENNIAL, COLORADO 80112-3924
(Address of principal executive offices)
(Zip code)
Robert G. Zack, Esq.
OppenheimerFunds, Inc.
498 Seventh Avenue, New York, New York 10018
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(Name and address of agent for service)
Registrant's telephone number, including area code: (303) 768-3200
--------------
Date of fiscal year end: July 31
Date of reporting period: August 1, 2002 - July 31, 2003
ITEM 1. REPORTS TO STOCKHOLDERS.
STATEMENT OF INVESTMENTS July 31, 2003
Principal Value
Amount See Note 1
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Certificates of Deposit--8.6%
- --------------------------------------------------------------------------------
Domestic Certificates of Deposit--4.1%
Bank of New York,
1.29%, 8/21/03 $15,000,000 $ 15,000,165
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Citibank NA,
1.055%, 10/30/03 25,000,000 25,000,000
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National Bank of
Commerce,
Tennessee:
1.225%, 6/14/04 1 10,000,000 9,998,991
1.256%, 5/12/04 1 10,000,000 10,000,000
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Wells Fargo Bank NA,
1.04%, 10/27/03 20,000,000 19,999,275
---------------
79,998,431
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Yankee Certificates of Deposit--4.5%
BNP Paribas,
Chicago,
1.22%, 8/25/03 20,000,000 20,000,000
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Canadian Imperial
Bank of Commerce,
New York:
1.22%, 8/14/03 20,000,000 20,000,000
1.23%, 8/7/03 15,000,000 15,000,000
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Royal Bank of
Scotland, New York,
1.05%, 8/13/03 15,000,000 15,000,000
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Svenska
Handelsbanken,
New York,
1.17%, 10/3/03 18,000,000 18,000,000
--------------
88,000,000
--------------
Total Certificates of
Deposit (Cost $167,998,431) 167,998,431
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Direct Bank Obligations--18.8%
AB SPINTAB:
0.935%, 10/27/03 13,400,000 13,369,722
0.99%, 8/26/03 5,000,000 4,996,597
1.21%, 8/14/03 17,000,000 16,992,547
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Bank of New York,
1.87%, 8/5/03 10,000,000 10,000,655
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Bank One NA:
1.17%, 11/6/03 12,500,000 12,500,979
1.25%, 8/15/03 10,000,000 9,999,981
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Barclays US
Funding Corp.,
1.145%, 11/19/03 13,500,000 13,452,769
Principal Value
Amount See Note 1
- --------------------------------------------------------------------------------
Direct Bank Obligations Continued
BNP Paribas
Finance, Inc.,
1.03%, 11/14/03 $ 15,000,000 $ 14,954,937
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Credit Lyonnais
North America, Inc.:
1.245%, 10/10/03 20,000,000 19,951,584
1.265%, 10/9/03 18,500,000 18,455,145
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Danske Corp.,
Series A:
1.21%, 8/18/03 15,000,000 14,991,429
1.21%, 8/20/03 15,000,000 14,990,342
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Governor & Co.
of the Bank
of Ireland:
1.15%, 11/17/03 2 15,000,000 14,948,250
1.205%, 8/28/03 2 10,000,000 9,990,962
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HBOS Treasury
Services:
1.03%, 10/6/03 10,500,000 10,480,172
1.035%, 10/3/03 20,000,000 19,963,775
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NATC
California LLC,
1.05%, 10/21/03 10,000,000 9,976,375
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Nationwide
Building Society,
1.03%, 9/15/03 19,000,000 18,975,537
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Nordea North
America, Inc.:
1.03%, 10/17/03 10,000,000 9,977,969
1.04%, 10/21/03 10,000,000 9,976,600
1.23%, 8/4/03 25,000,000 24,997,438
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Societe General
North America:
1.02%, 9/3/03 15,000,000 14,985,975
1.17%, 10/1/03 15,000,000 14,970,263
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Svenska
Handelsbanken, Inc.,
Series S,
1.27%, 8/12/03 9,000,000 8,996,508
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Wells Fargo Bank NA:
1.04%, 8/26/03 25,000,000 24,999,997
1.22%, 8/15/03 10,000,000 10,000,000
-------------
Total Direct Bank
Obligations (Cost $367,896,508) 367,896,508
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Short-Term Notes--59.1%
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Asset-Backed--16.6%
Atlantic Asset
Securitization Corp.,
1.08%, 8/18/03 2 13,819,000 13,811,952
6 | OPPENHEIMER MONEY MARKET FUND, INC.
Principal Value
Amount See Note 1
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Asset-Backed Continued
Crown Point
Capital Co.:
1%, 12/12/03 2 $ 15,600,000 $ 15,542,367
1.05%, 10/17/03 2 15,000,000 14,966,312
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Fairway Finance Corp.:
1.23%, 8/15/03 2 4,500,000 4,497,847
1.23%, 9/25/03 2 12,769,000 12,745,005
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GOVCO, Inc.:
1.04%, 10/20/03 2 15,000,000 14,965,333
1.20%, 9/15/03 2 3,000,000 2,995,500
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Grampian
Funding LLC:
1.05%, 10/23/03 2 10,000,000 9,975,792
1.08%, 9/4/03 2 28,000,000 27,971,440
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Lexington Parker
Capital Co. LLC:
1.08%, 10/24/03 2 13,553,000 13,518,846
1.23%, 8/21/03 2 15,000,000 14,989,750
1.23%, 9/2/03 2 18,000,000 17,980,320
1.23%, 9/8/03 2 5,900,000 5,893,835
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Neptune Funding Corp.:
1%, 9/30/03 2 6,449,000 6,438,467
1.09%, 9/19/03 2 9,900,000 9,885,312
1.11%, 10/29/03 2 11,300,000 11,268,991
1.23%, 12/3/03 2 3,000,000 2,987,290
1.31%, 8/11/03 2 15,000,000 14,994,542
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New Center
Asset Trust,
1.04%, 10/8/03 5,800,000 5,788,606
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Perry Global
Funding LLC, Series A:
0.95%, 9/25/03 2 29,000,000 28,957,772
1.05%, 10/24/03 2 15,000,000 14,963,250
1.23%, 8/27/03 2 4,000,000 3,996,447
1.26%, 10/14/03 2 10,000,000 9,974,100
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Scaldis Capital LLC:
1.115%, 8/29/03 2 20,000,000 19,982,656
1.24%, 9/16/03 2 11,000,000 10,982,571
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Yorktown
Capital LLC,
1.08%, 8/22/03 2 14,112,000 14,103,109
--------------
324,177,412
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Automobiles--1.3%
BMW US
Capital Corp.,
1.22%, 8/19/03 25,000,000 24,984,750
Principal Value
Amount See Note 1
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Capital Markets--10.5%
Banc of America
Securities LLC,
1.19%, 8/1/03 1 $ 50,000,000 $ 50,000,000
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Bear Stearns
Cos., Inc.,
1.04%, 9/4/03 15,000,000 14,985,267
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Goldman Sachs
Group LP:
1.23%, 11/24/03 5,000,000 5,000,000
1.25%, 11/24/03 3 15,000,000 15,000,000
1.26%, 9/8/03 3 10,000,000 10,000,000
1.28%, 9/10/03 3 9,250,000 9,250,000
1.30%, 10/31/03 3 5,000,000 5,000,000
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Morgan Stanley,
0.875%, 12/2/03 1 47,000,000 47,000,000
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Wachovia
Securities LLC,
1.29%, 3/26/04 1 50,000,000 50,000,000
--------------
206,235,267
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Chemicals--2.8%
BASF AG:
1.23%, 8/7/03 2 15,000,000 14,996,925
1.26%, 8/29/03 2 40,000,000 39,960,800
--------------
54,957,725
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Commercial Banks--1.3%
JPMorgan
Chase Bank,
1.03%, 10/22/03 25,000,000 24,941,347
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Diversified Financial Services--0.8%
General Electric
Capital Corp.,
1.27%, 8/7/03 15,000,000 14,996,825
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Food Products--2.6%
Nestle Capital Corp.:
1.04%, 10/2/03 2 15,000,000 14,973,133
1.04%, 10/28/03 2 25,000,000 24,936,444
1.14%, 9/2/03 2 10,000,000 9,989,867
--------------
49,899,444
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Insurance--7.2%
General Electric
Capital Assurance Co.,
1.17%, 12/1/03 1,3 37,000,000 37,000,000
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Jackson National
Life Insurance Co.:
1.13%, 7/30/04 1 2,000,000 2,000,000
1.29%, 3/1/04 1 30,000,000 30,000,000
7 | OPPENHEIMER MONEY MARKET FUND, INC.
STATEMENT OF INVESTMENTS Continued
Principal Value
Amount See Note 1
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Insurance Continued
MetLife
Funding, Inc.,
1.07%, 11/7/03 $ 15,993,000 $ 15,946,416
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Pacific Life
Insurance Co.,
1.20%, 8/1/03 1,3 20,000,000 20,000,000
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Prudential Insurance
Co. of America,
1.11%, 10/1/03 1 25,000,000 25,000,000
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United of Omaha
Life Insurance Co.,
1.22%, 8/1/03 1,3 10,000,000 10,000,000
--------------
139,946,416
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Leasing & Factoring--3.8%
American Honda
Finance Corp.:
1.239%, 2/4/04 1,4 10,000,000 10,000,000
1.27%, 8/4/03 1,4 25,000,000 25,000,000
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Volkswagen of
America:
1.15%, 9/12/03 2 15,000,000 14,979,875
1.16%, 8/20/03 2 15,000,000 14,990,817
1.24%, 8/1/03 2 10,000,000 10,000,000
--------------
74,970,692
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Oil & Gas--1.3%
Total Capital:
1.265%, 8/6/03 2 15,000,000 14,997,365
1.265%, 8/11/03 2 11,300,000 11,296,029
--------------
26,293,394
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Special Purpose Financial--10.9%
AriesOne
Metafolio Corp.,
1.08%, 8/8/03 2 10,000,000 9,997,900
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Cooperative Assn. of
Tractor Dealers, Inc.,
Series A:
0.95%, 12/19/03 17,000,000 16,937,195
1%, 12/16/03 8,600,000 8,567,272
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Cooperative Assn. of
Tractor Dealers,
Inc., Series B,
1.27%, 8/22/03 11,500,000 11,491,480
Principal Value
Amount See Note 1
- --------------------------------------------------------------------------------
Special Purpose Financial Continued
CORSAIR Trust,
Series 1-1005,
1.339%, 9/17/03 1,4 $ 20,000,000 $ 20,000,000
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Independence
Funding LLC,
1.05%, 8/28/03 4 15,000,000 14,988,188
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Intrepid Funding
Master Trust--
Series 1999A,
1.09%, 8/27/03 4 31,604,000 31,579,121
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K2 (USA) LLC,
1.057%, 7/15/04 1,4 10,000,000 9,997,000
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LINKS Finance LLC,
1.23%, 8/6/03 2 20,000,000 19,996,583
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Parkland (USA) LLC,
1.09%, 2/24/04 1,4 20,000,000 20,000,000
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RACERS, Series
2002-31-C,
1.10%, 9/3/03 1,3 20,000,000 19,973,200
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RACERS, Series
2002-36-C,
1.10%, 10/1/03 1,3 20,000,000 19,971,800
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RACERS, Series
2002-42-C,
1.12%, 11/17/03 1,3 10,000,000 9,985,840
--------------
213,485,579
--------------
Total Short-Term Notes
(Cost $1,154,888,851) 1,154,888,851
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U.S. Government Agencies--11.9%
Federal Home
Loan Bank:
1.07%, 7/14/04 15,000,000 15,000,000
1.23%, 7/6/04 12,000,000 12,000,000
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Federal Home
Loan Mortgage
Corp.:
1.01%, 12/31/03 10,000,000 9,957,355
1.05%, 12/1/03 14,850,000 14,797,159
1.06%, 11/21/03 10,000,000 9,967,022
1.08%, 12/12/03 10,000,000 9,960,100
1.165%, 10/9/03 25,000,000 24,944,417
8 | OPPENHEIMER MONEY MARKET FUND, INC.
Principal Value
Amount See Note 1
- --------------------------------------------------------------------------------
U.S. Government Agencies Continued
Federal National
Mortgage Assn.:
1.03%, 10/22/03 $ 15,000,000 $ 14,964,808
1.035%, 12/29/03 10,000,000 9,957,500
1.08%, 11/19/03 15,000,000 14,947,750
1.085%, 9/3/03 20,000,000 19,979,558
1.14%, 11/26/03 20,000,000 19,925,900
1.16%, 10/8/03 20,000,000 19,956,178
1.25%, 7/7/04 10,000,000 10,000,000
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FNMA Master
Credit Facility:
0.95%, 1/2/04 10,000,000 9,959,361
1.19%, 9/2/03 10,000,000 9,989,422
1.20%, 9/2/03 7,475,000 7,467,027
--------------
Total U.S. Government
Agencies (Cost $233,773,557) 233,773,557
-------------------------------------------------------------------------------
Total Investments,
at Value
(Cost $1,924,557,347) 98.4% 1,924,557,347
- --------------------------------------------------------------------------------
Other Assets
Net of Liabilities 1.6 30,810,178
----------------------
Net Assets 100.0% $1,955,367,525
======================
Footnotes to Statement of Investments
Short-term notes and direct bank obligations are generally traded on a discount
basis; the interest rate shown is the discount rate received by the Fund at the
time of purchase. Other securities normally bear interest at the rates shown.
1. Represents the current interest rate for a variable or increasing rate
security.
2. Security issued in an exempt transaction without registration under the
Securities Act of 1933. Such securities amount to $544,443,756, or 27.84% of
the Fund's net assets, and have been determined to be liquid pursuant
to guidelines adopted by the Board of Directors.
3. Identifies issues considered to be illiquid. See Note 4 of Notes to
Financial Statements.
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 $131,564,309 or 6.73% of the Fund's net
assets as of July 31, 2003.
See accompanying Notes to Financial Statements
9 | OPPENHEIMER MONEY MARKET FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES July 31, 2003
- --------------------------------------------------------------------------------
Assets
Investments, at value (cost $1,924,557,347)--see
accompanying statement $1,924,557,347
- --------------------------------------------------------------------------------
Cash 6,844,756
- --------------------------------------------------------------------------------
Receivables and other assets:
Investments sold 33,000,000
Shares of capital stock sold 4,768,973
Interest 1,409,276
Other 109,893
--------------
Total assets 1,970,690,245
- --------------------------------------------------------------------------------
Liabilities
Payables and other liabilities:
Shares of capital stock redeemed 13,710,848
Transfer and shareholder servicing agent fees 456,735
Shareholder reports 443,933
Directors' compensation 379,324
Dividends 243,908
Other 87,972
--------------
Total liabilities 15,322,720
- --------------------------------------------------------------------------------
Net Assets $1,955,367,525
==============
- --------------------------------------------------------------------------------
Composition of Net Assets
Par value of shares of capital stock $ 195,530,252
- --------------------------------------------------------------------------------
Additional paid-in capital 1,759,837,273
--------------
Net Assets--applicable to 1,955,302,521 shares of
capital stock outstanding $1,955,367,525
==============
- --------------------------------------------------------------------------------
Net Asset Value, Redemption Price Per Share and
Offering Price Per Share $1.00
See accompanying Notes to Financial Statements.
10 | OPPENHEIMER MONEY MARKET FUND, INC.
STATEMENT OF OPERATIONS For the Year Ended July 31, 2003
- --------------------------------------------------------------------------------
Investment Income
Interest $31,272,795
- --------------------------------------------------------------------------------
Dividends 2,322
------------
Total investment income 31,275,117
- --------------------------------------------------------------------------------
Expenses
Management fees 8,305,548
- --------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees 4,815,052
- --------------------------------------------------------------------------------
Shareholder reports 1,073,616
- --------------------------------------------------------------------------------
Directors' compensation 105,941
- --------------------------------------------------------------------------------
Custodian fees and expenses 25,559
- --------------------------------------------------------------------------------
Other 253,252
------------
Total expenses 14,578,968
Less reduction to custodian expenses (9,603)
------------
Net expenses 14,569,365
- --------------------------------------------------------------------------------
Net Investment Income 16,705,752
- --------------------------------------------------------------------------------
Net Realized Gain on Investments 194,006
- --------------------------------------------------------------------------------
Net Increase in Net Assets Resulting from Operations $16,899,758
============
See accompanying Notes to Financial Statements.
11 | OPPENHEIMER MONEY MARKET FUND, INC.
STATEMENTS OF CHANGES IN NET ASSETS
Year Ended July 31, 2003 2002
- --------------------------------------------------------------------------------------------------
Operations
Net investment income $ 16,705,752 $ 37,733,854
- --------------------------------------------------------------------------------------------------
Net realized gain 194,006 146,424
-----------------------------------
Net increase in net assets resulting
from operations 16,899,758 37,880,278
- --------------------------------------------------------------------------------------------------
Dividends and/or Distributions to Shareholders
Dividends from net investment income (16,705,752) (37,571,861)
- --------------------------------------------------------------------------------------------------
Distributions from net realized gain (183,666) (161,993)
- --------------------------------------------------------------------------------------------------
Capital Stock Transactions
Net decrease in net assets resulting from
capital stock transactions (138,126,578) (34,710,037)
- --------------------------------------------------------------------------------------------------
Net Assets
Total decrease (138,116,238) (34,563,613)
- --------------------------------------------------------------------------------------------------
Beginning of period 2,093,483,763 2,128,047,376
-----------------------------------
End of period $1,955,367,525 $2,093,483,763
===================================
See accompanying Notes to Financial Statements.
12 | OPPENHEIMER MONEY MARKET FUND, INC.
FINANCIAL HIGHLIGHTS
Year Ended July 31 2003 2002 2001 2000 1999
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Per Share Operating Data
Net asset value, beginning of period $1.00 $1.00 $1.00 $1.00 $1.00
- ----------------------------------------------------------------------------------------------------------------------
Income from investment operations--net
investment income and net realized gain .01 .02 .05 .05 .05
- ----------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.01) (.02) (.05) (.05) (.05)
Distributions from net realized gain -- 1 -- 1 -- -- --
------------------------------------------------------------
Total dividends and/or distributions
to shareholders (.01) (.02) (.05) (.05) (.05)
- ----------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $1.00 $1.00 $1.00 $1.00 $1.00
============================================================
- ----------------------------------------------------------------------------------------------------------------------
Total Return 2 0.84% 1.88% 5.32% 5.38% 4.61%
- ----------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
Net assets, end of period (in millions) $1,955 $2,093 $2,128 $1,812 $1,496
- ----------------------------------------------------------------------------------------------------------------------
Average net assets (in millions) $2,014 $2,006 $1,968 $1,712 $1,371
- ----------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment income 0.83% 1.88% 5.14% 5.27% 4.51%
Expenses, gross 0.72% 0.79% 0.68% 0.78% 0.78%
Expenses, net 0.72% 4 0.63% 4,5 0.68% 4 0.78% 4 0.78% 4
1. Less than $0.005 per share.
2. Assumes an initial investment on the business day before the first day of the
fiscal period, with all dividends and distributions 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. Returns do not reflect the deduction of taxes
that a shareholder would pay on Fund distributions or the redemption of Fund
shares.
3. Annualized for periods of less than one full year.
4. Reduction to custodian expenses less than 0.01%.
5. Net of voluntary reimbursement of expenses.
See accompanying Notes to Financial Statements.
13 | OPPENHEIMER MONEY MARKET FUND, INC.
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
1. Significant Accounting Policies
Oppenheimer Money Market Fund, Inc. (the Fund) is registered under the
Investment Company Act of 1940, as amended, as an 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.
- --------------------------------------------------------------------------------
Federal Taxes. The Fund intends to comply with provisions of the Internal
Revenue Code applicable to regulated investment companies and to distribute
substantially all of its investment company taxable income, if any, to
shareholders, therefore, no federal income or excise tax provision is required.
The tax components of capital shown in the table below represent distribution
requirements the Fund must satisfy under the income tax regulations, losses the
Fund may be able to offset against income and gains realized in future years
for federal income tax purposes.
Undistributed Net Undistributed Accumulated Loss
Investment Income Long-Term Gain Carryforward
-------------------------------------------------------------------
$664,725 $-- $--
Net investment income (loss) and net realized gain (loss) may differ for
financial statement and tax purposes. The character of dividends and
distributions made during the fiscal year from net investment income or net
realized gains may differ from their ultimate characterization for federal
income tax purposes. Also, due to timing of dividends and distributions, the
fiscal year in which amounts are distributed may differ from the fiscal year in
which the income or net realized gain was recorded by the Fund. Accordingly,
the following amounts have been reclassified for July 31, 2003. Net assets of
the Fund were unaffected by the reclassifications.
To (From) From Net
Ordinary Capital Tax Return Investment
Income (Loss) Gain 1 of Capital Loss
---------------------------------------------------------------------
$-- $10,340 $-- $--
1. $10,340, all of which was long-term capital gains, was distributed in
connection with Fund share redemptions.
The tax character of distributions paid during the years ended July 31, 2003
and July 31, 2002 was as follows:
Year Ended Year Ended
July 31, 2003 July 31, 2002
-----------------------------------------------------------------
Distributions paid from:
Ordinary income $16,705,752 $37,571,861
Long-term capital gain 183,666 161,993
---------------------------------
Total $16,889,418 $37,733,854
=================================
14 | OPPENHEIMER MONEY MARKET FUND, INC.
- --------------------------------------------------------------------------------
Directors' Compensation. The Fund has adopted an unfunded retirement plan for
the Fund's independent directors. Benefits are based on years of service and
fees paid to each director during the years of service. During the year ended
July 31, 2003, the Fund's projected benefit obligations were increased by
$32,053 and payments of $18,460 were made to retired directors, resulting in an
accumulated liability of $369,614 as of July 31, 2003. 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 the annual
compensation they are entitled to receive from the Fund. Under the plan,
deferred amounts are treated as though equal dollar amounts had been invested in
shares of the Fund or are invested in other selected Oppenheimer 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. Amounts will be deferred until distributed in accordance to
the Plan.
- --------------------------------------------------------------------------------
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. Income distributions, if any, are declared
daily and paid monthly. Capital gain distributions, if any, are declared and
paid annually.
- --------------------------------------------------------------------------------
Expense Offset Arrangement. The reduction of custodian fees represents earnings
on cash balances maintained by the Fund.
- --------------------------------------------------------------------------------
Security Transactions. Security transactions are recorded on the trade date.
Realized gains and losses on securities sold are determined on the basis of
identified cost.
- --------------------------------------------------------------------------------
Other. The preparation of financial statements in conformity with accounting
principles generally accepted in the United States of America 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. Shares of Capital Stock
The Fund has authorized five billion shares of $.10 par value capital stock.
Transactions in shares of capital stock were as follows:
Year Ended July 31, 2003 Year Ended July 31, 2002
Shares Amount Shares Amount
- ---------------------------------------------------------------------------------------------------------
Sold 3,243,493,493 $ 3,243,493,493 3,704,652,506 $ 3,704,652,506
Dividends and/or
distributions reinvested 16,688,782 16,688,782 37,188,522 37,188,522
Redeemed (3,398,308,853) (3,398,308,853) (3,776,551,065) (3,776,551,065)
----------------------------------------------------------------------------
Net decrease (138,126,578) $ (138,126,578) (34,710,037) $ (34,710,037)
============================================================================
15 | OPPENHEIMER MONEY MARKET FUND, INC.
NOTES TO FINANCIAL STATEMENTS Continued
- --------------------------------------------------------------------------------
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 at an
annual rate 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. With the addition of a new breakpoint,
effective December 12, 2002, the investment advisory agreement provides for a
fee at an annual rate 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, 0.375%
of the next $1.5 billion and 0.35% of net assets in excess of $3 billion.
- --------------------------------------------------------------------------------
Transfer Agent Fees. OppenheimerFunds Services (OFS), a division of the
Manager, acts as the transfer and shareholder servicing agent for the Fund. The
Fund pays OFS a per account fee. For the year ended July 31, 2003, the Fund
paid $5,180,065 to OFS for services to the Fund.
OFS has voluntarily agreed to limit transfer and shareholder servicing agent
fees for all classes, up to an annual rate of 0.35% of average net assets per
class. This undertaking may be amended or withdrawn at any time.
- --------------------------------------------------------------------------------
4. Illiquid Securities
As of July 31, 2003, investments in securities included issues that are
illiquid. A security may be considered illiquid if it lacks a readily available
market or if its valuation has not changed for a certain period of time. The
Fund intends to invest no more than 10% of its net assets (determined at the
time of purchase and reviewed periodically) in illiquid securities. The
aggregate value of illiquid securities subject to this limitation as of July
31, 2003 was $156,180,840, which represents 7.99% of the Fund's net assets.
16 | OPPENHEIMER MONEY MARKET FUND, INC.
INDEPENDENT AUDITORS' REPORT
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The Board of Directors and Shareholders of
Oppenheimer Money Market Fund, Inc.:
We have audited the accompanying statement of assets and liabilities of
Oppenheimer Money Market Fund, Inc., including the statement of investments, as
of July 31, 2003, and the related statement of operations for the year then
ended, the statements of changes in net assets for each of the two years in the
period then ended, and the financial highlights for each of the five years in
the period then ended. 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 auditing standards generally
accepted in the United States of America. Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the
financial statements and financial highlights are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. Our procedures
included confirmation of securities owned as of July 31, 2003, by
correspondence with the custodian. An audit also includes assessing the
accounting principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation. We believe
that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position of
Oppenheimer Money Market Fund, Inc. as of July 31, 2003, the results of its
operations for the year then ended, the changes in its net assets for each of
the two years in the period then ended, and the financial highlights for each
of the five years in the period then ended, in conformity with accounting
principles generally accepted in the United States of America.
KPMG LLP
Denver, Colorado
August 21, 2003
17 | OPPENHEIMER MONEY MARKET FUND, INC.
FEDERAL INCOME TAX INFORMATION Unaudited
- --------------------------------------------------------------------------------
In early 2004, if applicable, shareholders of record will receive information
regarding all dividends and distributions paid to them by the Fund during
calendar year 2003. Regulations of the U.S. Treasury Department require the
Fund to report this information to the Internal Revenue Service.
None of the dividends paid by the Fund during the year ended July 31, 2003
are eligible for the corporate dividend-received deduction.
The foregoing information is presented to assist shareholders in reporting
distributions received from the Fund to the Internal Revenue Service. Because
of the complexity of the federal regulations which may affect your individual
tax return and the many variations in state and local tax regulations, we
recommend that you consult your tax advisor for specific guidance.
PORTFOLIO PROXY VOTING
POLICIES AND PROCEDURES Unaudited
- --------------------------------------------------------------------------------
The Fund has adopted Portfolio Proxy Voting Policies and Procedures under which
the Fund votes proxies relating to securities ("portfolio proxies") held by the
Fund. A description of the Fund's Portfolio Proxy Voting Policies and
Procedures is available (i) without charge, upon request, by calling the Fund
toll-free at 1.800.225.5677, (ii) on the Fund's website at
www.oppenheimerfunds.com, and (iii) on the SEC's website at www.sec.gov. In
addition, the Fund will be required to file new Form N-PX, with its complete
proxy voting record for the 12 months ended June 30th, no later than August
31st of each year. The first such filing is due no later than August 31, 2004,
for the twelve months ended June 30, 2004. Once filed, the Fund's Form N-PX
filing will be available (i) without charge, upon request, by calling the Fund
toll-free at 1.800.225.5677, and (ii) on the SEC's website at www.sec.gov.
18 | OPPENHEIMER MONEY MARKET FUND, INC.
DIRECTORS AND OFFICERS Unaudited
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Name, Position(s) Held with Principal Occupation(s) During Past 5 Years; Other Trusteeships/Directorships
Fund, Length of Service, Age Held by Director; Number of Portfolios in Fund Complex Currently Overseen by
Director
INDEPENDENT DIRECTORS The address of each Director in the chart below is 6803 S. Tucson Way,
Centennial, CO 80112-3924. Each Director serves for an indefinite term, until
his or her resignation, retirement, death or removal.
Clayton K. Yeutter, Of Counsel (since 1993), Hogan & Hartson (a law firm). Other directorships:
Chairman of the Board of Weyerhaeuser Corp. (since 1999) and Danielson Holding Corp. (since 2002);
Directors (since 2003); formerly a director of Caterpillar, Inc. (1993-December 2002). Oversees 29
Director (since 1991) portfolios in the OppenheimerFunds complex.
Age: 72
Robert G. Galli, A trustee or director of other Oppenheimer funds. Formerly Trustee (May
Director (since 1993) 2000-2002) of Research Foundation of AIMR (investment research, non-profit) and
Age: 69 Vice Chairman (October 1995-December 1997) of OppenheimerFunds, Inc. (the
Manager). Oversees 39 portfolios in the OppenheimerFunds complex.
Phillip A. Griffiths, A director (since 1991) of the Institute for Advanced Study, Princeton, N.J., a
Director (since 1999) director (since 2001) of GSI Lumonics, a trustee (since 1983) of Woodward
Age: 64 Academy, a Senior Advisor (since 2001) of The Andrew W. Mellon Foundation. A
member of: the National Academy of Sciences (since 1979), American Academy of
Arts and Sciences (since 1995), American Philosophical Society (since 1996) and
Council on Foreign Relations (since 2002). Formerly a director of Bankers Trust
New York Corporation (1994-1999). Oversees 29 portfolios in the OppenheimerFunds
complex.
Joel W. Motley, Director (since 2002) Columbia Equity Financial Corp. (privately-held financial
Director (since 2002) adviser); Managing Director (since 2002) Carmona Motley, Inc. (privately-held
Age: 53 financial adviser); Formerly he held the following positions: Managing Director
(January 1998-December 2001), Carmona Motley Hoffman Inc. (privately-held
financial adviser); Managing Director (January 1992-December 1997), Carmona
Motley & Co. (privately-held financial adviser). Oversees 29 portfolios in the
OppenheimerFunds complex.
Kenneth A. Randall, A director of Dominion Resources, Inc. (electric utility holding company) and
Director (since 1980) Prime Retail, Inc. (real estate investment trust); formerly a director of
Age: 76 Dominion Energy, Inc. (electric power and oil & gas producer), President and
Chief Executive Officer of The Conference Board, Inc. (international economic
and business research) and a director of Lumbermens Mutual Casualty Company,
American Motorists Insurance Company and American Manufacturers Mutual Insurance
Company. Oversees 29 portfolios in the OppenheimerFunds complex.
Edward V. Regan, President, Baruch College, CUNY; a director of RBAsset (real estate manager); a
Director (since 1993) director of OffitBank; formerly Trustee, Financial Accounting Foundation (FASB
Age: 73 and GASB), Senior Fellow of Jerome Levy Economics Institute, Bard College,
Chairman of Municipal Assistance Corporation for the City of New York, New York
State Comptroller and Trustee of New York State and Local Retirement Fund.
Oversees 29 investment companies in the OppenheimerFunds complex.
Russell S. Reynolds, Jr., Chairman (since 1993) of The Directorship Search Group, Inc. (corporate
Director (since 1989) governance consulting and executive recruiting); a life trustee of International
Age: 71 House (non-profit educational organization), and a trustee (since 1996) of the
Greenwich Historical Society. Oversees 31 portfolios in the OppenheimerFunds
complex.
19 | OPPENHEIMER MONEY MARKET FUND, INC.
DIRECTORS AND OFFICERS Unaudited / Continued
Donald W. Spiro, Chairman Emeritus (since January 1991) of the Manager. Formerly a director
Vice Chairman of the Board (January 1969-August 1999) of the Manager. Oversees 29 portfolios in the
of Directors, Director (since OppenheimerFunds complex.
1985) Age: 77
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INTERESTED The address of Mr. Murphy in the chart below is 498 Seventh Avenue, New York,
DIRECTOR AND OFFICER NY 10018. Mr. Murphy serves for an indefinite term, until his resignation,
death or removal.
John V. Murphy, Chairman, Chief Executive Officer and director (since June 2001) and President
President and Director, (since September 2000) of the Manager; President and a director or trustee of
Director (since 2001) other Oppenheimer funds; President and a director (since July 2001) of
Age: 54 Oppenheimer Acquisition Corp., the Manager's parent holding company, and of
Oppenheimer Partnership Holdings, Inc., a holding company subsidiary of the
Manager; a director (since November 2001) of OppenheimerFunds Distributor, Inc.,
the Fund's distributor; Chairman and a director (since July 2001) of Shareholder
Services, Inc. and of Shareholder Financial Services, Inc., transfer agent
subsidiaries of the Manager; President and a director (since July 2001) of
OppenheimerFunds Legacy Program, a charitable trust program established by the
Manager; a director of the following investment advisory subsidiaries of the
Manager: OFI Institutional Asset Management, Inc. and Centennial Asset
Management Corporation (since November 2001), HarbourView Asset Management
Corporation and OFI Private Investments, Inc. (since July 2001); President
(since November 1, 2001) and a director (since July 2001) of Oppenheimer Real
Asset Management, Inc.; a director (since November 2001) of Trinity Investment
Management Corp. and Tremont Advisers, Inc., investment advisory affiliates of
the Manager; Executive Vice President (since February 1997) of Massachusetts
Mutual Life Insurance Company, the Manager's parent company; a director (since
June 1995) of DLB Acquisition Corporation (a holding company that owns the
shares of David L. Babson & Company, Inc.); formerly, Chief Operating Officer
(from September 2000 to June 2001) of the Manager; President and trustee (from
November 1999 to November 2001) of MML Series Investment Fund and MassMutual
Institutional Funds, open-end investment companies; a director (from September
1999 to August 2000) of C.M. Life Insurance Company; President, Chief Executive
Officer and director (from September 1999 to August 2000) of MML Bay State Life
Insurance Company; a director (from June 1989 to June 1998) of Emerald Isle
Bancorp and Hibernia Savings Bank, a wholly-owned subsidiary of Emerald Isle
Bancorp. Oversees 73 portfolios in the OppenheimerFunds complex.
- --------------------------------------------------------------------------------------------------------------------------------
OFFICERS The address of the Officers in the chart below is as follows: for Mr. Zack, 498
Seventh Avenue, New York, NY 10018, for Messrs. Weiss and Wixted and Ms. Wolf,
6803 S. Tucson Way, Centennial, CO 80112-3924. Each Officer serves for an annual
term or until his or her earlier resignation, death or removal.
Barry D. Weiss, Vice President of the Manager (since July 2001); an officer of 6 portfolios in
Vice President (since 2001) the OppenheimerFunds complex; formerly Assistant Vice President and Senior
Age: 38 Credit Analyst of the Manager (February 2000-June 2001). Prior to joining the
Manager in February 2000, he was Associate Director, Structured Finance, Fitch
IBCA Inc. (April 1998 - February 2000); and News Director, Fitch Investors
Service (September 1996 - April 1998).
20 | OPPENHEIMER MONEY MARKET FUND, INC.
Carol E. Wolf, Senior Vice President (since June 2000) of the Manager; an officer of 6
Vice President (since 1988) portfolios in the OppenheimerFunds complex; formerly Vice President of the
Age: 51 Manager (June 1990 - June 2000).
Brian W. Wixted, Senior Vice President and Treasurer (since March 1999) of the Manager; Treasurer
Treasurer (since 1999) (since March 1999) of HarbourView Asset Management Corporation, Shareholder
Age: 43 Services, Inc., Oppenheimer Real Asset Management Corporation, Shareholder
Financial Services, Inc., Oppenheimer Partnership Holdings, Inc., OFI Private
Investments, Inc. (since March 2000), OppenheimerFunds International Ltd. and
OppenheimerFunds plc (offshore fund management subsidiaries of the Manager)
(since May 2000) and OFI Institutional Asset Management, Inc. (since November
2000) (offshore fund management subsidiaries of the Manager); Treasurer and
Chief Financial Officer (since May 2000) of Oppenheimer Trust Company (a trust
company subsidiary of the Manager); Assistant Treasurer (since March 1999) of
Oppenheimer Acquisition Corp. and OppenheimerFunds Legacy Program (since April
2000); formerly Principal and Chief Operating Officer (March 1995-March 1999),
Bankers Trust Company-Mutual Fund Services Division. An officer of 89 portfolios
in the OppenheimerFunds complex.
Robert G. Zack, Senior Vice President (since May 1985) and General Counsel (since February 2002)
Secretary (since 2001) of the Manager; General Counsel and a director (since November 2001) of
Age: 54 OppenheimerFunds Distributor, Inc.; Senior Vice President and General Counsel
(since November 2001) of HarbourView Asset Management Corporation; Vice
President and a director (since November 2000) of Oppenheimer Partnership
Holdings, Inc.; Senior Vice President, General Counsel and a director (since
November 2001) of Shareholder Services, Inc., Shareholder Financial Services,
Inc., OFI Private Investments, Inc., Oppenheimer Trust Company and OFI
Institutional Asset Management, Inc.; General Counsel (since November 2001) of
Centennial Asset Management Corporation; a director (since November 2001) of
Oppenheimer Real Asset Management, Inc.; Assistant Secretary and a director
(since November 2001) of OppenheimerFunds International Ltd.; Vice President
(since November 2001) of OppenheimerFunds Legacy Program; Secretary (since
November 2001) of Oppenheimer Acquisition Corp.; formerly Acting General Counsel
(November 2001-February 2002) and Associate General Counsel (May 1981-October
2001) of the Manager; Assistant Secretary of Shareholder Services, Inc. (May
1985-November 2001), Shareholder Financial Services, Inc. (November
1989-November 2001); OppenheimerFunds International Ltd. and OppenheimerFunds
plc (October 1997-November 2001). An officer of 89 portfolios in the
OppenheimerFunds complex.
The Fund's Statement of Additional Information contains additional information
about the Fund's Directors and is available without charge upon request.
21 | OPPENHEIMER MONEY MARKET FUND, INC.
ITEM 2. CODE OF ETHICS
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT
The Board of Directors of the Fund has determined that Edward V. Regan,
the Chairman of the Board's Audit Committee, possesses the technical attributes
identified in Instruction 2(b) of Item 3 to Form N-CSR to qualify as an "audit
committee financial expert," and has designated Mr. Regan as the Audit
Committee's financial expert. Mr. Regan is an "independent" Director pursuant to
paragraph (a)(2) of Item 3 to Form N-CSR.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES - NOT REQUIRED
ITEM 5. NOT APPLICABLE
ITEM 6. RESERVED
ITEM 7. NOT APPLICABLE
ITEM 8. RESERVED
ITEM 9. CONTROLS AND PROCEDURES
(a) Based on their evaluation of registrant's disclosure controls and
procedures (as defined in rule 30a-2(c) under the Investment Company
Act of 1940 (17 CFR 270.30a-2(c)) as of July 31, 2003, registrant's
principal executive officer and principal financial officer found
registrant's disclosure controls and procedures to be appropriately
designed to ensure that information required to be disclosed by
registrant in the reports that it files under the Securities Exchange
Act of 1934 (a) is accumulated and communicated to registrant's
management, including its principal executive officer and principal
financial officer, to allow timely decisions regarding required
disclosure, and (b) is recorded, processed, summarized and reported,
within the time periods specified in the rules and forms adopted by the
U.S. Securities and Exchange Commission.
(b) There have been no significant changes in registrant's internal
controls or in other factors that could significantly affect
registrant's internal controls subsequent to the date of the most
recent evaluation as indicated, including no significant deficiencies
or material weaknesses that required corrective action.
ITEM 10. EXHIBITS.
(A) EXHIBIT ATTACHED HERETO. (ATTACH CODE OF ETHICS AS EXHIBIT)
(B) EXHIBITS ATTACHED HERETO. (ATTACH CERTIFICATIONS AS EXHIBITS)