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.
Two World Financial Center, New York, New York 10281-1008
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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, 2003 - January 31, 2004
ITEM 1. REPORTS TO STOCKHOLDERS.
STATEMENT OF INVESTMENTS January 31, 2004 / Unaudited
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PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- --------------------------------------------------------
CERTIFICATES OF DEPOSIT--9.8%
- --------------------------------------------------------
DOMESTIC CERTIFICATES OF DEPOSIT--1.7%
Citibank NA, 1.09%,
2/6/04 $10,000,000 $ 10,000,000
- --------------------------------------------------------
National Bank
of Commerce,
Tennessee:
1.105%, 6/14/04 1 10,000,000 9,999,632
1.12%, 5/12/04 1 10,000,000 10,000,000
---------------
29,999,632
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YANKEE CERTIFICATES OF DEPOSIT--8.1%
Bank of Montreal,
Chicago, 1.105%,
3/31/04 10,000,000 10,000,000
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Canadian Imperial
Bank of Commerce,
New York:
1.03%, 3/19/04 20,000,000 20,000,000
1.09%, 3/5/04 7,000,000 7,000,000
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Credit Lyonnais,
New York, 1.10%,
3/1/04 13,700,000 13,699,945
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Lloyds TSB Bank
plc, New York:
1.09%, 2/17/04 7,000,000 7,000,031
1.13%, 7/6/04 15,000,000 15,001,277
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Royal Bank of
Scotland, New York,
1.125%, 7/8/04 15,000,000 15,000,000
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Svenska
Handelsbanken
NY, 1.125%, 7/14/04 8,000,000 8,000,000
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Swedbank AB,
New York Branch,
1.125%, 7/12/04 25,000,000 25,000,000
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UBS AG Stamford
CT, 1.065%, 4/6/04 25,000,000 25,000,225
---------------
145,701,478
---------------
Total Certificates of Deposit
(Cost $175,701,110) 175,701,110
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
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DIRECT BANK OBLIGATIONS--19.7%
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AB SPINTAB:
1.10%, 4/13/04 $15,000,000 $ 14,967,000
1.11%, 2/23/04 11,000,000 10,992,538
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BNP Paribas
Finance, Inc.,
1.09%, 2/13/04 34,500,000 34,487,465
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Credit Lyonnais
North America, Inc.:
1.08%, 2/3/04 15,000,000 14,999,100
1.08%, 2/5/04 10,000,000 9,998,789
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Danske Corp.,
Series A:
1.035%, 4/6/04 15,000,000 14,971,969
1.085%, 3/18/04 10,000,000 9,986,136
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Deutsche Bank
Financial LLC,
1.12%, 7/12/04 25,000,000 24,874,000
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Governor & Co. of
the Bank of Ireland:
1.035%, 4/16/04 2 10,000,000 9,978,438
1.04%, 4/21/04 2 15,000,000 14,965,333
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HBOS Treasury
Services:
1.09%, 2/9/04 20,000,000 19,995,156
1.11%, 2/3/04 15,000,000 14,999,075
1.115%, 4/7/04 11,000,000 10,977,514
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LaSalle Bank NA,
1.10%, 2/19/04 7,000,000 7,000,000
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National Australia
Funding (Delaware),
Inc., 1.075%,
2/10/04 10,000,000 9,997,313
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Nationwide Building
Society:
1.09%, 2/26/04 12,200,000 12,190,765
1.09%, 3/9/04 10,000,000 9,988,797
1.13%, 7/7/04 10,000,000 9,950,719
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Rabobank USA
Financial Corp.,
1.10%, 4/22/04 5,100,000 5,087,378
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Societe Generale
North America:
1.075%, 4/26/04 45,000,000 44,885,781
1.105%, 2/2/04 5,400,000 5,399,834
8 | OPPENHEIMER MONEY MARKET FUND, INC.
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
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DIRECT BANK OBLIGATIONS Continued
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Stadshypotek
Delaware, Inc.:
1.03%, 3/26/04 2 $10,000,000 $ 9,984,550
1.11%, 3/8/04 2 10,000,000 9,988,900
1.11%, 4/13/04 2 15,300,000 15,266,034
1.13%, 4/5/04 2 5,000,000 4,989,956
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Toronto Dominion
Holdings, Inc.,
1.09%, 2/5/04 3,390,000 3,389,589
---------------
Total Direct Bank Obligations
(Cost $354,312,129) 354,312,129
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LETTERS OF CREDIT--0.6%
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Chase Manhattan Bank,
guaranteeing commercial
paper of NATC
California LLC,
1.05%, 4/22/04
(Cost $9,976,375) 10,000,000 9,976,375
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SHORT-TERM NOTES--63.7%
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ASSET-BACKED--22.0%
Crown Point Capital Co.:
1.12%, 2/6/04 2 15,000,000 14,997,646
1.14%, 3/4/04 2 5,000,000 4,994,933
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Eiffel Funding LLC:
1.05%, 4/7/04 2 15,000,000 14,971,125
1.05%, 4/22/04 2 10,550,000 10,525,076
1.05%, 4/23/04 2 16,000,000 15,961,733
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FCAR Owner Trust I:
1.11%, 2/12/04 10,000,000 9,996,608
1.13%, 4/8/04 14,000,000 13,970,557
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Galaxy Funding, Inc.:
1.11%, 4/14/04 2 25,000,000 24,943,729
1.12%, 3/3/04 2 10,000,000 9,990,356
1.12%, 4/16/04 20,000,000 19,953,333
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GOVCO, Inc.:
1.05%, 4/23/04 2 8,943,000 8,921,611
1.10%, 2/11/04 2 12,500,000 12,496,181
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Grampian Funding
LLC, 1.11%,
4/14/04 2 28,200,000 28,136,527
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- --------------------------------------------------------
ASSET-BACKED Continued
Lexington Parker
Capital Co. LLC:
1.05%, 4/14/04 2 $12,500,000 $ 12,473,385
1.12%, 2/11/04 2 5,000,000 4,998,444
1.13%, 2/5/04 2 10,000,000 9,998,744
1.16%, 8/3/04 2 15,000,000 14,912,033
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Neptune Funding
Corp.:
1.07%, 4/28/04 2 27,000,000 26,929,361
1.09%, 4/22/04 2 7,000,000 6,982,833
1.13%, 3/10/04 2 3,000,000 2,996,422
1.15%, 2/9/04 2 15,000,000 14,996,167
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Perry Global Funding
LLC, Series A:
1.13%, 2/11/04 2 11,300,000 11,296,453
1.13%, 3/4/04 2 5,000,000 4,994,978
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Preferred Receivables
Funding Corp.,
1.13%, 3/10/04 2 7,400,000 7,391,173
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Scaldis Capital LLC:
1.05%, 4/15/04 2 10,000,000 9,978,417
1.05%, 4/30/04 2 17,000,000 16,955,871
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Victory Receivables
Corp.:
1.05%, 3/3/04 2 10,000,000 9,990,958
1.07%, 4/12/04 2 10,072,000 10,050,745
1.07%, 4/15/04 2 15,000,000 14,967,008
1.15%, 2/10/04 2 17,750,000 17,744,897
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Windmill Funding
Corp., 1.10%,
2/4/04 2 8,300,000 8,299,239
---------------
395,816,543
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CAPITAL MARKETS--13.6%
Banc of America
Securities LLC,
1.18%, 2/1/04 1 50,000,000 50,000,000
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Bear Stearns Cos., Inc.:
1.03%, 3/25/04 15,000,000 14,977,254
1.06%, 4/2/04 15,000,000 14,973,058
- --------------------------------------------------------
Citigroup Global
Markets Holdings,
Inc.:
1.04%, 5/13/04 5,000,000 4,985,267
1.08%, 2/4/04 20,000,000 19,998,200
9 | OPPENHEIMER MONEY MARKET FUND, INC.
STATEMENT OF INVESTMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- --------------------------------------------------------
CAPITAL MARKETS Continued
Goldman Sachs
Group, Inc.:
1.15%, 6/25/04 $10,000,000 $ 10,000,000
1.17%, 2/9/04 3 8,100,000 8,100,000
1.18%, 7/2/04 3 15,000,000 15,000,000
1.24%, 4/28/04 3 5,000,000 5,000,000
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Lehman Brothers,
Inc., 1.13%,
12/15/04 1 25,000,000 25,000,000
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Morgan Stanley,
1%, 8/27/04 1 26,100,000 26,100,000
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Wachovia Securities
LLC, 1.28%,
3/26/04 1 50,000,000 50,000,000
----------------
244,133,779
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COMMERCIAL BANKS--0.4%
J.P. Morgan Chase
& Co., 1.08%,
2/11/04 7,300,000 7,297,810
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COMMERCIAL FINANCE--4.1%
Caterpillar, Inc.,
1.22%, 4/14/04 1 15,500,000 15,520,752
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Countrywide Home
Loans, 1.05%,
2/2/04 53,000,000 52,998,454
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Private Export
Funding Corp.,
1.07%, 3/25/04 2 5,000,000 4,992,124
----------------
73,511,330
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CONSUMER FINANCE--0.6%
American Express
Credit Corp., Series B,
1.22%, 12/16/04 1 10,000,000 10,013,038
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DIVERSIFIED FINANCIAL SERVICES--1.9%
GE Capital
International
Funding, Inc.,
Series A,
1.04%, 4/28/04 2 10,000,000 9,974,867
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General Electric
Capital Corp.,
1.12%, 4/7/04 15,000,000 14,970,025
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- --------------------------------------------------------
DIVERSIFIED FINANCIAL SERVICES Continued
General Electric
Capital Services,
1.04%, 4/29/04 $10,000,000 $ 9,974,578
----------------
34,919,470
- --------------------------------------------------------
INSURANCE--7.2%
Jackson National
Life Insurance Co.:
1.13%, 7/30/04 1 2,000,000 2,000,000
1.18%, 3/1/04 1 30,000,000 30,000,000
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Metropolitan Life
Global Funding I,
Series 2003-5, 1.11%,
2/17/04 1,3 18,000,000 18,000,000
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Pacific Life
Insurance Co.,
1.14%, 2/2/04 1,3 20,000,000 20,000,000
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Prudential Insurance
Co. of America,
1.16%, 4/1/04 1 25,000,000 25,000,000
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Security Life of
Denver Insurance
Co., 1.22%,
10/27/04 1 25,000,000 25,000,000
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United of Omaha
Life Insurance Co.,
1.22%, 2/2/04 1,3 10,000,000 10,000,000
----------------
130,000,000
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LEASING & FACTORING--1.1%
American Honda
Finance Corp.:
1.13%, 2/4/04 1,4 10,000,000 10,000,000
1.29%, 4/13/04 1,4 10,000,000 10,003,377
----------------
20,003,377
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OIL & GAS--0.4%
Shell Finance UK
plc, 1.09%, 3/18/04 7,000,000 6,990,251
- --------------------------------------------------------
PERSONAL PRODUCTS--0.4%
Procter & Gamble
Co., 1.06%, 2/2/04 2 7,000,000 6,999,794
10 | OPPENHEIMER MONEY MARKET FUND, INC.
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- --------------------------------------------------------
PHARMACEUTICALS--0.4%
Alcon Capital Corp.,
1.08%, 2/18/04 2 $7,000,000 $ 6,996,430
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SPECIAL PURPOSE FINANCIAL--11.6%
Cooperative Assn. of
Tractor Dealers, Inc.,
Series A:
1.17%, 7/2/04 5,000,000 4,975,300
1.20%, 4/23/04 5,000,000 4,986,333
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Cooperative Assn.
of Tractor Dealers,
Inc., Series B,
1.13%, 3/8/04 1,000,000 998,870
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K2 (USA) LLC:
1.05%, 7/15/04 1,4 10,000,000 9,998,648
1.11%, 2/17/04 2 19,000,000 18,990,627
1.12%, 3/17/04 2 12,400,000 12,382,640
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LINKS Finance LLC:
1.06%, 9/30/04 1,4 15,000,000 14,998,016
1.06%, 1/21/05 1,4 10,000,000 9,998,065
1.08%, 8/25/04 1,4 10,000,000 9,998,871
1.13%, 10/15/04 1,4 17,500,000 17,500,000
- --------------------------------------------------------
Parkland (USA) LLC:
1.08%, 10/15/04 1 10,000,000 9,999,298
1.08%, 1/14/05 1,4 20,000,000 19,998,093
1.09%, 2/24/04 1,4 20,000,000 20,000,000
- --------------------------------------------------------
Sigma Finance, Inc.:
1.07%, 11/26/04 1,4 11,000,000 10,998,656
1.07%, 12/15/04 1,4 25,000,000 24,996,744
1.09%, 12/6/04 1,4 10,000,000 9,998,321
1.11%, 3/9/04 2 8,400,000 8,390,331
---------------
209,208,813
---------------
Total Short-Term Notes
(Cost $1,145,890,635) 1,145,890,635
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U.S. GOVERNMENT AGENCIES--5.9%
- --------------------------------------------------------
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
1.50%, 3/1/05 10,000,000 10,000,000
4.875%, 4/16/04 4,000,000 4,030,558
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- --------------------------------------------------------
U.S. GOVERNMENT AGENCIES Continued
Federal Home Loan
Mortgage Corp.,
1.65%, 12/30/04 $10,000,000 $ 10,000,000
- --------------------------------------------------------
Federal National
Mortgage Assn.,
1.375%, 2/18/05 13,000,000 13,000,000
- --------------------------------------------------------
FNMA Master
Credit Facility:
1.105%, 2/2/04 20,000,000 19,999,386
1.12%, 3/1/04-5/3/04 23,000,000 22,959,649
---------------
Total U.S. Government Agencies
(Cost $106,989,593) 106,989,593
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TOTAL INVESTMENTS,
AT VALUE
(COST $1,792,869,842) 99.7% 1,792,869,842
- --------------------------------------------------------
OTHER ASSETS
NET OF LIABILITIES 0.3 6,071,178
------------------------
NET ASSETS 100.0% $1,798,941,020
========================
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 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 $485,796,069, or 27.00% 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 or restricted. 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 $168,488,791 or 9.37% of the Fund's net
assets as of January 31, 2004.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
11 | OPPENHEIMER MONEY MARKET FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES Unaudited
- --------------------------------------------------------------------------------
January 31, 2004
- ----------------------------------------------------------------------------------------------
ASSETS
- ----------------------------------------------------------------------------------------------
Investments, at value (cost $1,792,869,842)--see accompanying statement $1,792,869,842
- ----------------------------------------------------------------------------------------------
Cash 9,966,056
- ----------------------------------------------------------------------------------------------
Receivables and other assets:
Shares of capital stock sold 31,099,559
Interest 849,772
Other 122,274
---------------
Total assets 1,834,907,503
- ----------------------------------------------------------------------------------------------
LIABILITIES
- ----------------------------------------------------------------------------------------------
Payables and other liabilities:
Investments purchased 24,912,033
Shares of capital stock redeemed 9,711,162
Directors' compensation 390,926
Transfer and shareholder servicing agent fees 355,897
Shareholder communications 295,833
Dividends 255,828
Other 44,804
---------------
Total liabilities 35,966,483
- ----------------------------------------------------------------------------------------------
NET ASSETS $1,798,941,020
===============
- ----------------------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS
- ----------------------------------------------------------------------------------------------
Par value of shares of capital stock $ 179,887,404
- ----------------------------------------------------------------------------------------------
Additional paid-in capital 1,619,051,641
- ----------------------------------------------------------------------------------------------
Accumulated net realized gain on investments 1,975
---------------
NET ASSETS--applicable to 1,798,874,041 shares of capital stock outstanding $1,798,941,020
===============
- ----------------------------------------------------------------------------------------------
NET ASSET VALUE, REDEMPTION PRICE PER SHARE AND OFFERING PRICE PER SHARE $1.00
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
12 | OPPENHEIMER MONEY MARKET FUND, INC.
STATEMENT OF OPERATIONS Unaudited
- --------------------------------------------------------------------------------
For the Six Months Ended January 31, 2004
- -----------------------------------------------------------------------------------
INVESTMENT INCOME
- -----------------------------------------------------------------------------------
Interest $10,779,027
- -----------------------------------------------------------------------------------
EXPENSES
- -----------------------------------------------------------------------------------
Management fees 3,948,129
- -----------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees 2,619,665
- -----------------------------------------------------------------------------------
Shareholder communications 197,422
- -----------------------------------------------------------------------------------
Directors' compensation 49,035
- -----------------------------------------------------------------------------------
Custodian fees and expenses 10,758
- -----------------------------------------------------------------------------------
Other 242,034
-----------
Total expenses 7,067,043
Less reduction to custodian expenses (2,760)
Less voluntary waiver of transfer and shareholder servicing agent fees (239,558)
-----------
Net expenses 6,824,725
- -----------------------------------------------------------------------------------
NET INVESTMENT INCOME 3,954,302
- -----------------------------------------------------------------------------------
NET REALIZED GAIN ON INVESTMENTS 1,975
- -----------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 3,956,277
============
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
13 | OPPENHEIMER MONEY MARKET FUND, INC.
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
SIX MONTHS YEAR
ENDED ENDED
JANUARY 31, 2004 JULY 31,
(UNAUDITED) 2003
- ------------------------------------------------------------------------------------------------------
OPERATIONS
- ------------------------------------------------------------------------------------------------------
Net investment income $ 3,954,302 $ 16,705,752
- ------------------------------------------------------------------------------------------------------
Net realized gain 1,975 194,006
--------------------------------
Net increase in net assets resulting from operations 3,956,277 16,899,758
- ------------------------------------------------------------------------------------------------------
DIVIDENDS AND/OR DISTRIBUTIONS TO SHAREHOLDERS
- ------------------------------------------------------------------------------------------------------
Dividends from net investment income (3,954,302) (16,705,752)
- ------------------------------------------------------------------------------------------------------
Distributions from net realized gain -- (183,666)
- ------------------------------------------------------------------------------------------------------
CAPITAL STOCK TRANSACTIONS
- ------------------------------------------------------------------------------------------------------
Net decrease in net assets resulting from capital stock transactions (156,428,480) (138,126,578)
- ------------------------------------------------------------------------------------------------------
NET ASSETS
- ------------------------------------------------------------------------------------------------------
Total decrease (156,426,505) (138,116,238)
- ------------------------------------------------------------------------------------------------------
Beginning of period 1,955,367,525 2,093,483,763
--------------------------------
End of period $1,798,941,020 $1,955,367,525
================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
14 | OPPENHEIMER MONEY MARKET FUND, INC.
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
SIX MONTHS YEAR
ENDED ENDED
JANUARY 31, 2004 JULY 31,
(UNAUDITED) 2003 2002 2001 2000 1999
- --------------------------------------------------------------------------------------------
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 -- 1 .01 .02 .05 .05 .05
- --------------------------------------------------------------------------------------------
Dividends and/or distributions
to shareholders:
Dividends from net investment income -- 1 (.01) (.02) (.05) (.05) (.05)
Distributions from net realized gain -- -- 1 -- 1 -- -- --
-------------------------------------------------
Total dividends and/or distributions
to shareholders -- 1 (.01) (.02) (.05) (.05) (.05)
- --------------------------------------------------------------------------------------------
Net asset value, end of period $1.00 $1.00 $1.00 $1.00 $1.00 $1.00
=================================================
- --------------------------------------------------------------------------------------------
TOTAL RETURN 2 0.21% 0.84% 1.88% 5.32% 5.38% 4.61%
- --------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- --------------------------------------------------------------------------------------------
Net assets, end of period (in millions) $1,799 $1,955 $2,093 $2,128 $1,812 $1,496
- --------------------------------------------------------------------------------------------
Average net assets (in millions) $1,888 $2,014 $2,006 $1,968 $1,712 $1,371
- --------------------------------------------------------------------------------------------
Ratios to average net assets: 3
Net investment income 0.42% 0.83% 1.88% 5.14% 5.27% 4.51%
Total expenses 0.74% 0.72% 0.79% 0.68% 0.78% 0.78%
Expenses after expense reimbursement
or fee waiver and reduction to
custodian expenses 0.72% N/A 4 0.63% N/A 4 N/A 4 N/A 4
<FN>
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. 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%.
</FN>
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
15 | OPPENHEIMER MONEY MARKET FUND, INC.
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 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, including any net
realized gain on investments not offset by capital loss carryforwards, if any,
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 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, 2004, the Fund's projected benefit obligations were increased
by $20,533 and payments of $28,366 were made to retired directors, resulting in
an accumulated liability of $361,781 as of January 31, 2004.
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
Oppenheimer funds selected by the Director. 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, if applicable,
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.
16 | OPPENHEIMER MONEY MARKET FUND, INC.
- --------------------------------------------------------------------------------
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.
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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:
SIX MONTHS ENDED JANUARY 31, 2004 YEAR ENDED JULY 31, 2003
SHARES AMOUNT SHARES AMOUNT
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Sold 1,410,123,880 $ 1,410,123,880 3,243,493,493 $ 3,243,493,493
Dividends and/or
distributions
reinvested 3,753,640 3,753,640 16,688,782 16,688,782
Redeemed (1,570,306,000) (1,570,306,000) (3,398,308,853) (3,398,308,853)
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Net decrease (156,428,480) $ (156,428,480) (138,126,578) $ (138,126,578)
====================================================================
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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 aggregate net assets, 0.425%
of the next $500 million of net assets, 0.40% of the next $500 million of net
assets, 0.375% of the next $1.5 billion of net assets, and 0.35% of average
annual net assets in excess of $3.0 billion.
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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 six months ended January 31, 2004,
the Fund paid $2,480,946 to OFS for services to the Fund.
OFS has voluntarily agreed to limit transfer and shareholder servicing agent
fees up to an annual rate of 0.35% of average net assets of the Fund. This
undertaking may be amended or withdrawn at any time.
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4. ILLIQUID SECURITIES
As of January 31, 2004, 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 January
31, 2004 was $76,100,000, which represents 4.23% of the Fund's net assets.
17 | OPPENHEIMER MONEY MARKET FUND, INC.
ITEM 2. CODE OF ETHICS
The registrant has adopted a code of ethics that applies to the
registrant's principal executive officer, principal financial officer, principal
accounting officer or controller or persons performing similar functions.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT
The Board of Trustees 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" Trustee pursuant to
paragraph (a)(2) of Item 3 to Form N-CSR.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES
Not applicable to semiannual reports.
ITEM 5. NOT APPLICABLE
ITEM 6. RESERVED
ITEM 7. NOT APPLICABLE
ITEM 8. NOT APPLICABLE
ITEM 9. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
At a meeting of the Board of Trustees of the registrant held on
February 18, 2004, the Board adopted (1) a policy that, should the Board
determine that a vacancy exists or is likely to exist on the Board, the
Governance Committee of the Board, which is comprised entirely of independent
trustees, shall consider any candidates for Board membership recommended by the
registrant's security holders and (2) a policy that security holders wishing to
submit a nominee for election to the Board may do so by mailing their submission
to the offices of OppenheimerFunds, Inc., Two World Financial Center, 225
Liberty Street - 11th Floor, New York, NY 10281-1008, to the attention of the
Chair of the Governance Committee. Prior to February 18, 2004, the Board did not
have a formalized policy with respect to consideration of security holder
nominees or a procedure by which security holders may make their submissions. In
addition to security holder nominees, the Governance Committee may also consider
nominees recommended by independent Board members or recommended by any other
Board members and is authorized under its Charter, upon Board approval, to
retain an executive search firm to assist in screening potential candidates.
Upon Board approval, the Governance Committee may also obtain legal, financial,
or other external counsel that may be necessary or desirable in the screening
process.
ITEM 10. 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 January 31, 2004,
registrant's principal executive officer and principal financial
officer found registrant's disclosure controls and procedures to
provide reasonable assurances 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 over financial reporting that occurred during the
registrant's last fiscal half-year that has materially affected,
or is reasonably likely to materially affect, the registrant's
internal control over financial reporting.
ITEM 11. EXHIBITS.
(A) EXHIBIT ATTACHED HERETO. (ATTACH CODE OF ETHICS AS EXHIBIT)
(B) EXHIBITS ATTACHED HERETO. (ATTACH CERTIFICATIONS AS EXHIBITS)