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
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(Address of principal executive offices) (Zip code)
Robert G. Zack, Esq.
OppenheimerFunds, Inc.
TWO WORLD FINANCIAL CENTER, NEW YORK, NEW YORK 10281-1008
---------------------------------------------------------
(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: JANUARY 31, 2007
----------------
ITEM 1. REPORTS TO STOCKHOLDERS.
NOTES
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AN INVESTMENT IN THE FUND IS NOT INSURED OR GUARANTEED BY THE FEDERAL DEPOSIT
INSURANCE CORPORATION OR ANY OTHER GOVERNMENT AGENCY. ALTHOUGH THE FUND SEEKS TO
PRESERVE THE VALUE OF YOUR INVESTMENT AT $1.00 PER SHARE, IT IS POSSIBLE TO LOSE
MONEY BY INVESTING IN THE FUND.
THE FUND'S INVESTMENT STRATEGY, ALLOCATIONS, AND FOCUS CAN CHANGE OVER TIME. THE
MENTION OF SPECIFIC FUND HOLDINGS DOES NOT CONSTITUTE A RECOMMENDATION BY
OPPENHEIMERFUNDS, INC.
INVESTORS SHOULD CONSIDER THE FUND'S INVESTMENT OBJECTIVES, RISKS, AND OTHER
CHARGES AND EXPENSES CAREFULLY BEFORE INVESTING. THE FUND'S PROSPECTUS CONTAINS
THIS AND OTHER INFORMATION ABOUT THE FUND, AND MAY BE OBTAINED BY ASKING YOUR
FINANCIAL ADVISOR, CALLING US AT 1.800.525.7048 OR VISITING OUR WEBSITE AT
WWW.OPPENHEIMERFUNDS.COM. READ THE PROSPECTUS CAREFULLY BEFORE INVESTING.
8 | OPPENHEIMER MONEY MARKET FUND, INC.
FUND EXPENSES
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FUND EXPENSES. As a shareholder of the Fund, you incur two types of costs: (1)
transaction costs, which may include contingent deferred sales charges on
redemptions; and (2) ongoing costs, including management fees; distribution and
service fees; and other Fund expenses. These examples are intended to help you
understand your ongoing costs (in dollars) of investing in the Fund and to
compare these costs with the ongoing costs of?investing in other mutual funds.
The examples are based on an investment of $1,000.00 invested at the beginning
of the period and held for the entire 6-month period ended January 31, 2007.
ACTUAL EXPENSES. The "actual" lines of the table provide information about
actual account values and actual expenses. You may use the information on this
line for the class of shares you hold, together with the amount you invested, to
estimate the expense that you paid over the period. Simply divide your account
value by $1,000.00 (for example, an $8,600.00 account value divided by $1,000.00
= 8.60), then multiply the result by the number in the "actual" line under the
heading entitled "Expenses Paid During Period" to estimate the expenses you paid
on your account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES. The "hypothetical" lines of the
table provide information about hypothetical account values and hypothetical
expenses based on the Fund's actual expense ratio for each class of shares, and
an assumed rate of return of 5% per year before expenses, which is?not the
Fund's actual return. The hypothetical account values and expenses may not be
used to estimate the actual ending account balance or expenses you paid for the
period. You may use this information to compare the ongoing costs of investing
in the Fund and other funds. To do so, compare this 5% hypothetical example for
the class of shares you hold with the 5% hypothetical examples that appear in
the shareholder reports of?the other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs, such as
contingent deferred sales charges (loads), or a $12.00 fee imposed annually on
accounts valued at less than $500.00 (subject to exceptions described in the
Statement
9 | OPPENHEIMER MONEY MARKET FUND, INC.
FUND EXPENSES
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of Additional Information). Therefore, the "hypothetical" lines of the table are
useful in comparing ongoing costs only, and will not help you determine the
relative total costs of owning different funds. In addition, if these
transactional costs were included, your costs would have been higher.
- --------------------------------------------------------------------------------
BEGINNING ENDING EXPENSES
ACCOUNT ACCOUNT PAID DURING
VALUE VALUE 6 MONTHS ENDED
(8/1/06) (1/31/07) JANUARY 31, 2007
- --------------------------------------------------------------------------------
Class A Actual $1,000.00 $1,024.30 $3.37
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Class A Hypothetical 1,000.00 1,021.88 3.37
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Class Y Actual 1,000.00 1,025.40 2.20
- --------------------------------------------------------------------------------
Class Y Hypothetical 1,000.00 1,023.04 2.19
Hypothetical assumes 5% annual return before expenses.
Expenses are equal to the Fund's annualized expense ratio for that class,
multiplied by the average account value over the period, multiplied by 184/365
(to reflect the one-half year period). Those annualized expense ratios based on
the 6-month period ended January 31, 2007 are as follows:
CLASS EXPENSE RATIOS
- ----------------------------
Class A 0.66%
- ----------------------------
Class Y 0.43
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10 | OPPENHEIMER MONEY MARKET FUND, INC.
STATEMENT OF INVESTMENTS January 31, 2007 / Unaudited
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PRINCIPAL VALUE
AMOUNT SEE NOTE 1
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CERTIFICATES OF DEPOSIT--16.4%
- --------------------------------------------------------------------------------
Barclays Bank plc,
New York:
5.32%, 2/15/07 $ 10,000,000 $ 10,000,000
5.32%, 4/9/07 10,000,000 10,000,000
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BNP Paribas,
New York:
5.271%, 7/2/07 1 20,000,000 19,997,888
5.32%, 2/12/07 40,000,000 40,000,000
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Calyon, New York,
5.266%, 7/2/07 1 35,000,000 34,994,022
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Citibank NA:
5.31%, 4/24/07 15,000,000 15,000,000
5.32%, 2/8/07 15,000,000 15,000,000
5.325%, 3/28/07 15,000,000 15,000,000
5.33%, 3/27/07 15,500,000 15,500,000
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Deutsche Bank,
New York, 5.40%,
12/12/07 15,000,000 15,000,000
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Lloyds TSB Bank plc,
New York, 5.29%,
3/2/07 5,000,000 5,000,000
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Rabobank Nederland
NV, 5.29%, 3/5/07 20,000,000 19,999,519
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Royal Bank of
Canada, New York,
5.30%, 2/5/07 25,000,000 25,000,000
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Svenska
Handelsbanken
NY:
5.315%, 4/30/07 13,000,000 13,000,157
5.32%, 3/19/07 15,000,000 15,000,000
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Toronto Dominion
Bank, New York,
5.623%, 2/21/07 14,000,000 14,001,348
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Washington Mutual
Bank FA:
5.32%, 2/15/07 5,500,000 5,500,000
5.33%, 3/19/07 13,000,000 13,000,000
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Total Certificates of Deposit
(Cost $300,992,934) 300,992,934
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DIRECT BANK OBLIGATIONS--23.6%
- --------------------------------------------------------------------------------
Bank of America NA,
5.32%, 2/16/07 3,000,000 3,000,000
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
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DIRECT BANK OBLIGATIONS Continued
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Barclays Bank plc,
New York,
5.315%, 4/23/07 $ 23,000,000 $ 23,000,000
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Deutsche Bank
Financial LLC,
5.27%, 2/7/07 27,000,000 26,976,285
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Dexia Delaware LLC,
5.24%, 5/2/07 10,000,000 9,869,000
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DnB NOR Bank ASA,
5.27%, 3/26/07 11,200,000 11,113,104
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Governor & Co. of
the Bank of Ireland:
5.24%, 3/1/07 2 10,500,000 10,457,207
5.24%, 4/25/07 2 12,000,000 11,855,027
5.245%, 5/1/07 2 20,000,000 19,740,664
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HBOS Treasury
Services:
5.205%, 2/12/07 25,000,000 24,960,240
5.24%, 4/16/07 15,000,000 14,838,433
5.245%, 2/1/07 3,500,000 3,500,000
5.25%, 2/14/07 15,000,000 14,971,563
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Nationwide
Building Society:
5.21%, 4/13/07 2 8,200,000 8,115,743
5.22%, 3/12/07 2 15,000,000 14,915,175
5.23%, 2/12/07 2 16,000,000 15,974,431
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Nordea North
America, Inc.,
5.25%, 3/26/07 21,800,000 21,631,504
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Rabobank USA
Financial Corp.,
5.25%, 2/26/07 15,000,000 14,945,313
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Societe Generale
North America:
5.16%, 4/5/07 20,000,000 19,819,400
5.19%, 3/6/07 7,000,000 6,966,698
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St. George Bank Ltd.:
5.24%, 4/30/07 2 15,000,000 14,807,867
5.25%, 3/13/07 2 28,000,000 27,836,667
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Stadshypotek
Delaware, Inc.,
5.30%, 2/2/07 2 24,500,000 24,496,393
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Swedbank Mortgage
AB, 5.24%, 5/2/07 13,200,000 13,027,080
11 | OPPENHEIMER MONEY MARKET FUND, INC.
STATEMENT OF INVESTMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
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DIRECT BANK OBLIGATIONS Continued
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UBS Finance
(Delaware) LLC:
5.24%, 5/2/07 $ 20,000,000 $ 19,738,050
5.25%, 3/2/07 25,000,000 24,894,271
5.26%, 2/7/07 10,000,000 9,991,233
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Westpac Banking
Corp.:
5.24%, 4/24/07 2 8,000,000 7,904,516
5.25%, 3/29/07 2 14,400,000 14,282,400
----------------
Total Direct Bank Obligations
(Cost $433,628,264) 433,628,264
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LETTERS OF CREDIT--1.7%
- --------------------------------------------------------------------------------
Fortis Bank SA/NV,
guaranteeing
commercial paper
of ICICI Bank Ltd.,
5.27%, 2/9/07 15,000,000 14,982,422
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Suntrust Bank,
guaranteeing
commercial paper of
NATC California LLC:
5.27%, 4/12/07 12,500,000 12,371,910
5.27%, 4/13/07 4,500,000 4,453,229
----------------
Total Letters of Credit
(Cost $31,807,561) 31,807,561
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SHORT-TERM NOTES--60.4%
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ASSET-BACKED SECURITIES--18.4%
Amsterdam Funding Corp.:
5.26%, 2/9/07 2 5,000,000 4,994,156
5.26%, 2/14/07 2 23,900,000 23,854,603
5.27%, 2/16/07 2 18,800,000 18,758,718
5.27%, 2/20/07 2 2,000,000 1,994,437
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Barton Capital Corp.,
5.27%, 2/6/07 2 18,000,000 17,986,825
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Capital Auto
Receivables Asset
Trust 2006-SN1A,
Automobile Asset-
Backed Securities,
Series 2006-SN1A,
5.32%, 9/20/07 1 9,349,232 9,349,232
- --------------------------------------------------------------------------------
Chesham Finance
LLC, 5.28%, 2/20/07 15,000,000 14,958,200
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- --------------------------------------------------------------------------------
ASSET-BACKED SECURITIES Continued
- --------------------------------------------------------------------------------
Concord
Minutemen Capital
Co. LLC, 5.27%,
2/1/07 2 $ 13,000,000 $ 13,000,000
- --------------------------------------------------------------------------------
Crown Point Capital
Co., 5.27%, 2/2/07 2 2,000,000 1,999,707
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FCAR Owner Trust II:
5.26%, 4/27/07 30,000,000 29,627,417
5.275%, 3/23/07 11,500,000 11,415,747
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Gemini Securitization
Corp., 5.28%, 2/8/07 2 5,845,000 5,838,999
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GOVCO, Inc., 5.26%,
2/5/07 2 10,000,000 9,994,156
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Legacy Capital LLC:
5.23%, 4/16/07 25,000,000 24,731,236
5.28%, 2/15/07 15,000,000 14,969,200
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Lexington Parker
Capital Co. LLC,
5.27%, 2/20/07 2 27,490,000 27,413,540
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New Center Asset
Trust, 5.27%, 2/1/07 31,500,000 31,500,000
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Perry Global Funding
LLC, Series A, 5.25%,
3/12/07 2 11,700,000 11,633,456
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Solitaire Funding LLC:
5.26%, 2/23/07 2 12,500,000 12,459,819
5.27%, 2/27/07 2 25,000,000 24,904,847
5.28%, 2/16/07 2 18,000,000 17,960,400
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Windmill Funding
Corp., 5.245%, 3/2/07 2 9,000,000 8,961,974
----------------
338,306,669
- --------------------------------------------------------------------------------
BEVERAGES--0.4%
Beverage South LLC,
Series 2004,
5.32%, 2/1/07 1 6,900,000 6,900,000
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CAPITAL MARKETS--7.0%
Banc of America
Securities LLC,
5.30%, 1/31/07 1 50,000,000 50,000,000
- --------------------------------------------------------------------------------
Bear Stearns Cos., Inc.,
5.24%, 4/19/07 35,000,000 34,607,728
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Goldman Sachs
Group, Inc.,
5.37%, 4/6/07 1,3 15,000,000 15,000,000
12 | OPPENHEIMER MONEY MARKET FUND, INC.
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- --------------------------------------------------------------------------------
CAPITAL MARKETS Continued
Lehman Brothers,
Inc., 5.50%, 1/31/07 1 $ 4,000,000 $ 4,000,000
- --------------------------------------------------------------------------------
Merrill Lynch & Co.,
Inc., Series C, 5.48%,
8/27/07 1 10,000,000 10,007,989
- --------------------------------------------------------------------------------
Morgan Stanley,
5.25%, 3/23/07 15,000,000 14,890,625
----------------
128,506,342
- --------------------------------------------------------------------------------
COMMERCIAL BANKS--3.9%
Bank of America Corp.:
5.25%, 3/15/07 10,000,000 9,938,750
5.25%, 4/2/07 29,000,000 28,746,250
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HSBC USA, Inc.,
5.25%, 4/3/07 10,000,000 9,911,042
- --------------------------------------------------------------------------------
Marshall & Ilsley Corp.,
5.30%, 2/14/07 14,400,000 14,372,440
- --------------------------------------------------------------------------------
Wachovia Corp.,
5.428%, 2/6/07 9,000,000 9,000,123
----------------
71,968,605
- --------------------------------------------------------------------------------
COMMERCIAL FINANCE--2.6%
Caterpillar Financial
Services Corp.,
Series F, 5.386%,
2/12/07 5,000,000 5,000,098
- --------------------------------------------------------------------------------
Countrywide
Financial Corp.:
5.28%, 2/28/07 30,000,000 29,881,200
5.30%, 2/1/07 13,700,000 13,700,000
----------------
48,581,298
- --------------------------------------------------------------------------------
CONSTRUCTION MATERIALS--0.3%
Mississippi Business
Finance Corp. Revenue
Bonds, Shuqualak
Lumber Project,
Series 2003, 5.32%,
2/1/07 1 1,600,000 1,600,000
- --------------------------------------------------------------------------------
Warrior Roofing
Manufacturing of
Georgia LLC, Series
2004, 5.37%, 2/1/07 1 3,400,000 3,400,000
----------------
5,000,000
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- --------------------------------------------------------------------------------
DIVERSIFIED FINANCIAL SERVICES--1.6%
- --------------------------------------------------------------------------------
Greenwich Capital
Holdings, Inc.,
5.525%, 2/15/07 1 $ 20,000,000 $ 20,000,000
- --------------------------------------------------------------------------------
HSBC Finance Corp.,
5.24%, 3/9/07 10,000,000 9,947,600
----------------
29,947,600
- --------------------------------------------------------------------------------
ELECTRIC UTILITIES--0.2%
AL Incentives Finance
Authority Special
Obligation Bonds,
Series 1999-C, 5.32%,
2/1/07 1 2,815,000 2,815,000
- --------------------------------------------------------------------------------
ENERGY EQUIPMENT & SERVICES--0.1%
Mississippi Business
Finance Corp.
Revenue Bonds,
Signal International
LLC Project, Series
2004A, 5.32%, 2/1/07 1 1,000,000 1,000,000
- --------------------------------------------------------------------------------
Mississippi Business
Finance Corp.
Revenue Bonds, Signal
International LLC
Project, Series 2004C,
5.32%, 2/1/07 1 1,100,000 1,100,000
----------------
2,100,000
- --------------------------------------------------------------------------------
FOOD PRODUCTS--0.2%
Beaver Cnty., UT
Environmental Facility
Revenue Bonds, BEST
Bio Fuels LLC Project,
Series 2003B, 3.96%,
2/1/07 1 3,465,000 3,465,000
- --------------------------------------------------------------------------------
INSURANCE--3.6%
ING America
Insurance Holdings,
Inc., 5.24%, 4/23/07 8,500,000 8,399,785
- --------------------------------------------------------------------------------
Jackson National Life
Global Funding,
Series 2004-6, 5.39%,
2/15/07 1,3 17,500,000 17,500,000
13 | OPPENHEIMER MONEY MARKET FUND, INC.
STATEMENT OF INVESTMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- --------------------------------------------------------------------------------
INSURANCE Continued
Metropolitan Life
Global Funding I,
Series 2003-5, 5.41%,
2/15/07 1,3 $ 18,000,000 $ 18,000,000
- --------------------------------------------------------------------------------
Prudential Insurance
Co. of America,
5.356%, 2/1/07 1 22,000,000 22,000,000
----------------
65,899,785
- --------------------------------------------------------------------------------
LEASING & FACTORING--5.3%
American Honda
Finance Corp.:
5.323%, 12/6/07 1,4 25,000,000 25,000,000
5.336%, 9/26/07 1,4 7,500,000 7,500,000
5.345%, 8/8/07 1,4 10,000,000 10,000,000
- --------------------------------------------------------------------------------
Toyota Motor
Credit Corp.:
5.245%, 2/9/07 48,000,000 47,944,053
5.25%, 3/29/07 7,600,000 7,537,933
----------------
97,981,986
- --------------------------------------------------------------------------------
METALS & MINING--0.3%
AL Industrial
Development
Authority Revenue
Bonds, Simcala, Inc.
Project, Series 1995,
5.32%, 2/1/07 1 5,350,000 5,350,000
- --------------------------------------------------------------------------------
PERSONAL PRODUCTS--5.8%
Procter & Gamble Co.
International Funding:
5.25%, 2/22/07 2 22,000,000 21,932,625
5.25%, 2/26/07 2 15,000,000 14,945,313
5.28%, 2/9/07 2 18,800,000 18,777,941
- --------------------------------------------------------------------------------
Reckitt Benckiser plc:
5.25%, 4/26/07 2 26,000,000 25,681,500
5.27%, 3/19/07 2 10,000,000 9,932,661
5.27%, 3/20/07 2 15,500,000 15,393,356
----------------
106,663,396
PRINCIPAL VALUE
AMOUNT SEE NOTE 1
- --------------------------------------------------------------------------------
SPECIAL PURPOSE FINANCIAL--10.7%
Cooperative Assn. of
Tractor Dealers, Inc.,
Series B:
5.28%, 2/7/07 $ 3,018,000 $ 3,015,344
5.28%, 3/2/07 7,052,000 7,022,005
5.28%, 3/26/07 18,553,000 18,408,781
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K2 (USA) LLC,
5.26%, 3/8/07 6,800,000 6,765,226
- --------------------------------------------------------------------------------
LINKS Finance LLC,
5.32%, 12/20/07 1,4 5,000,000 4,999,134
- --------------------------------------------------------------------------------
Parkland (USA) LLC,
5.326%, 12/12/07 1,4 4,000,000 3,999,312
- --------------------------------------------------------------------------------
Premier Asset
Collateralized
Entity LLC,
5.30%, 9/17/07 1,4 15,000,000 15,000,000
- --------------------------------------------------------------------------------
Premier Asset
Collateralized
Entity LLC 1,
5.28%, 3/27/07 4 33,000,000 32,738,640
- --------------------------------------------------------------------------------
RACERS Trust,
Series 2004-6-MM,
5.34%, 2/22/07 1 15,000,000 15,000,000
- --------------------------------------------------------------------------------
Sigma Finance, Inc.,
5.25%, 2/22/07 27,000,000 26,917,309
- --------------------------------------------------------------------------------
Union Hamilton
Special Purpose
Funding LLC,
5.363%, 3/28/07 1,4 13,000,000 13,000,000
- --------------------------------------------------------------------------------
ZAIS Levered Loan
Fund Ltd. CLO,
Series 2006-1A,
Cl. 1, 5.43%, 3/1/07 1,3 50,000,000 50,000,000
----------------
196,865,751
----------------
Total Short-Term Notes
(Cost $1,110,351,432) 1,110,351,432
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS,
AT VALUE
(COST $1,876,780,191) 102.1% 1,876,780,191
- --------------------------------------------------------------------------------
LIABILITIES IN EXCESS
OF OTHER ASSETS (2.1) (38,893,681)
--------------------------------
NET ASSETS 100.0% $ 1,837,886,510
================================
14 | OPPENHEIMER MONEY MARKET FUND, INC.
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 $478,805,123, or 26.05% of the
Fund's net assets, and have been determined to be liquid pursuant to guidelines
adopted by the Board of Directors.
3. Illiquid security. The aggregate value of illiquid securities as of January
31, 2007 was $100,500,000, which represents 5.47% of the Fund's net assets. See
Note 4 of accompanying Notes.
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 $112,237,086 or 6.11% of the Fund's net
assets as of January 31, 2007.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS
15 | OPPENHEIMER MONEY MARKET FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES Unaudited
- --------------------------------------------------------------------------------
January 31, 2007
- ----------------------------------------------------------------------------------------------------------
ASSETS
- ----------------------------------------------------------------------------------------------------------
Investments, at value (cost $1,876,780,191)--see accompanying statement of investments $ 1,876,780,191
- ----------------------------------------------------------------------------------------------------------
Cash 2,862,537
- ----------------------------------------------------------------------------------------------------------
Receivables and other assets:
Interest 4,395,169
Shares of capital stock sold 1,925,718
Investments sold 5,231
Other 160,445
---------------
Total assets 1,886,129,291
- ----------------------------------------------------------------------------------------------------------
LIABILITIES
- ----------------------------------------------------------------------------------------------------------
Payables and other liabilities:
Investments purchased 32,767,744
Shares of capital stock redeemed 12,150,808
Dividends 2,422,540
Directors' compensation 395,895
Transfer and shareholder servicing agent fees 235,657
Shareholder communications 208,896
Other 61,241
---------------
Total liabilities 48,242,781
- ----------------------------------------------------------------------------------------------------------
NET ASSETS $ 1,837,886,510
===============
- ----------------------------------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS
- ----------------------------------------------------------------------------------------------------------
Par value of shares of capital stock $ 183,780,151
- ----------------------------------------------------------------------------------------------------------
Additional paid-in capital 1,654,106,359
---------------
NET ASSETS $ 1,837,886,510
===============
- ----------------------------------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE
- ----------------------------------------------------------------------------------------------------------
Class A Shares:
Net asset value and redemption price per share (based on net assets of
$1,556,866,147 and 1,556,780,552 shares of capital stock outstanding) $ 1.00
- ----------------------------------------------------------------------------------------------------------
Class Y Shares:
Net asset value, redemption price and offering price per share (based on
net assets of $281,020,363 and 281,020,955 shares of capital stock outstanding) $ 1.00
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
16 | OPPENHEIMER MONEY MARKET FUND, INC.
STATEMENT OF OPERATIONS Unaudited
- --------------------------------------------------------------------------------
For the Six Months Ended January 31, 2007
- --------------------------------------------------------------------------------
INVESTMENT INCOME
- --------------------------------------------------------------------------------
Interest $ 58,417,229
- --------------------------------------------------------------------------------
Other income 165,951
----------------
Total investment income 58,583,180
- --------------------------------------------------------------------------------
EXPENSES
- --------------------------------------------------------------------------------
Management fees 4,433,633
- --------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees:
Class A 1,588,359
Class Y 18,142
- --------------------------------------------------------------------------------
Shareholder communications:
Class A 254,514
Class Y 75
- --------------------------------------------------------------------------------
Directors' compensation 56,732
- --------------------------------------------------------------------------------
Custodian fees and expenses 6,521
- --------------------------------------------------------------------------------
Other 111,032
----------------
Total expenses 6,469,008
Less reduction to custodian expenses (104)
----------------
Net expenses 6,468,904
- --------------------------------------------------------------------------------
NET INVESTMENT INCOME 52,114,276
- --------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 52,114,276
================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
17 | OPPENHEIMER MONEY MARKET FUND, INC.
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
SIX MONTHS YEAR
ENDED ENDED
JANUARY 31, 2007 JULY 31,
(UNAUDITED) 2006
- ----------------------------------------------------------------------------------------------
OPERATIONS
- ----------------------------------------------------------------------------------------------
Net investment income $ 52,114,276 $ 87,243,536
- ----------------------------------------------------------------------------------------------
Net realized gain -- 15,960
-------------------------------------
Net increase in net assets resulting from operations 52,114,276 87,259,496
- ----------------------------------------------------------------------------------------------
DIVIDENDS AND/OR DISTRIBUTIONS TO SHAREHOLDERS
- ----------------------------------------------------------------------------------------------
Dividends from net investment income:
Class A (37,683,084) (71,566,197)
Class Y (14,431,192) (15,732,087)
-------------------------------------
(52,114,276) (87,298,284)
- ----------------------------------------------------------------------------------------------
Distributions from net realized gain:
Class A (12,010) --
Class Y (3,951) --
-------------------------------------
(15,961) --
- ----------------------------------------------------------------------------------------------
CAPITAL STOCK TRANSACTIONS
- ----------------------------------------------------------------------------------------------
Net increase (decrease) in net assets resulting from
capital stock transactions:
Class A (39,942,268) (365,712,571)
Class Y (726,915,231) 982,713,397
-------------------------------------
(766,857,499) 617,000,826
- ----------------------------------------------------------------------------------------------
NET ASSETS
- ----------------------------------------------------------------------------------------------
Total increase (decrease) (766,873,460) 616,962,038
- ----------------------------------------------------------------------------------------------
Beginning of period 2,604,759,970 1,987,797,932
-------------------------------------
End of period $ 1,837,886,510 $ 2,604,759,970
=====================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
18 | OPPENHEIMER MONEY MARKET FUND, INC.
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
SIX MONTHS YEAR
ENDED ENDED
JANUARY 31, 2007 JULY 31,
CLASS A (UNAUDITED) 2006 2005 2004 2003 2002
- ----------------------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- ----------------------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
- ----------------------------------------------------------------------------------------------------------------------------------
Income from investment operations--net
investment income and net realized gain .02 1 .04 1 .02 1 -- 2 .01 .02
- ----------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions
to shareholders:
Dividends from net investment income (.02) (.04) (.02) -- 2 (.01) (.02)
Distributions from net realized gain -- 2 -- -- -- -- 2 -- 2
----------------------------------------------------------------------------------
Total dividends and/or distributions
to shareholders (.02) (.04) (.02) -- 2 (.01) (.02)
- ----------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
==================================================================================
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN 3 2.43% 3.92% 1.80% 0.43% 0.84% 1.88%
- ----------------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- ----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period
(in thousands) $1,556,867 $1,596,820 $1,962,575 $1,797,049 $1,955,368 $2,093,484
- ----------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $1,567,089 $1,885,665 $1,856,740 $1,808,266 $2,014,466 $2,005,530
- ----------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 4
Net investment income 4.77% 3.79% 1.78% 0.43% 0.83% 1.88%
Total expenses 0.66% 0.62% 0.65% 0.73% 0.72% 0.79%
Expenses after payments and waivers
and reduction to custodian expenses 0.66% 0.62% 0.65% 0.72% 0.72% 0.63%
1. Per share amounts calculated based on the average shares outstanding during
the period.
2. Less than $0.005 per share.
3. 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.
4. Annualized for periods of less than one full year.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
19 | OPPENHEIMER MONEY MARKET FUND, INC.
FINANCIAL HIGHLIGHTS Continued
- --------------------------------------------------------------------------------
SIX MONTHS YEAR
ENDED ENDED
JANUARY 31, 2007 JULY 31,
CLASS Y (UNAUDITED) 2006 2005 1
- ------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- ------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 1.00 $ 1.00 $ 1.00
- ------------------------------------------------------------------------------------------
Income from investment operations--net
investment income and net realized gain 2 .02 .04 .02
- ------------------------------------------------------------------------------------------
Dividends and/or distributions
to shareholders:
Dividends from net investment income (.02) (.04) (.02)
Distributions from net realized gain -- 3 -- --
---------------------------------------
Total dividends and/or distributions
to shareholders (.02) (.04) (.02)
- ------------------------------------------------------------------------------------------
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00
=======================================
- ------------------------------------------------------------------------------------------
TOTAL RETURN 4 2.54% 4.08% 1.85%
- ------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- ------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $281,020 $1,007,940 $ 25,223
- ------------------------------------------------------------------------------------------
Average net assets (in thousands) $574,584 $ 347,670 $ 22,892
- ------------------------------------------------------------------------------------------
Ratios to average net assets: 5
Net investment income 4.98% 4.52% 2.05%
Total expenses 0.43% 6 0.43% 7 0.52% 6
1. For the period from August 27, 2004 (inception of offering) to July 31, 2005.
2. Per share amounts calculated based on the average shares outstanding during
the period.
3. Less than $0.005 per share.
4. 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.
5. Annualized for periods of less than one full year.
6. Reduction to custodian expenses less than 0.01%.
7. Voluntary waiver of transfer agent fees less than 0.01%.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
20 | 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 Fund offers Class A and Class Y shares. Class A shares are sold at
their offering price, which is the net asset value per share without any initial
sales charge. Class Y shares are sold to certain institutional investors without
a front-end sales charge. Both classes of shares have identical rights and
voting privileges with respect to the Fund in general and exclusive voting
rights on matters that affect that class alone. Earnings, net assets and net
asset value per share may differ due to each class having its own expenses, such
as transfer and shareholder servicing agent fees and shareholder communications,
directly attributable to that class.
The following is a summary of significant accounting policies consistently
followed by the Fund.
- --------------------------------------------------------------------------------
SECURITIES VALUATION. As permitted under Rule 2a-7 of the Investment Company Act
of 1940, portfolio securities are valued on the basis of amortized cost, which
approximates market value. If amortized cost is determined not to approximate
market value, the fair value of the portfolio securities will be determined
under procedures approved by the Fund's Board of Directors.
- --------------------------------------------------------------------------------
ALLOCATION OF INCOME, EXPENSES, GAINS AND LOSSES. Income, expenses (other than
those attributable to a specific class), gains and losses are allocated on a
daily basis to each class of shares based upon the relative proportion of net
assets represented by such class. Operating expenses directly attributable to a
specific class are charged against the operations of that class.
- --------------------------------------------------------------------------------
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 to shareholders,
therefore, no federal income or excise tax provision is required.
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.
- --------------------------------------------------------------------------------
DIRECTORS' COMPENSATION. The Fund has adopted an unfunded retirement plan (the
"Plan") for the Fund's independent directors. Benefits are based on years of
service and fees paid to each director during their period of service. The Plan
was frozen with respect to adding new participants effective December 31, 2006
(the "Freeze Date") and existing
21 | OPPENHEIMER MONEY MARKET FUND, INC.
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES Continued
Plan Participants as of the Freeze Date will continue to receive accrued
benefits under the Plan. Active independent directors as of the Freeze Date have
each elected a distribution method with respect to their benefits under the
Plan. During the six months ended January 31, 2007, the Fund's projected benefit
obligations were increased by $31,240 and payments of $28,630 were made to
retired directors, resulting in an accumulated liability of $296,835 as of
January 31, 2007.
The Board of Directors has adopted a compensation deferral 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.
For purposes of determining the amount owed to the Director under the plan,
deferred amounts are treated as though equal dollar amounts had been invested in
shares of the Fund or in other Oppenheimer funds selected by the Director. The
Fund purchases shares of the funds selected for deferral by the Director in
amounts equal to his or her deemed investment, resulting in a Fund asset equal
to the deferred compensation liability. Such assets are included as a component
of "Other" within the asset section of the Statement of Assets and Liabilities.
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 compensation deferral 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 but may be paid at other times to maintain the net asset value per
share at $1.00.
- --------------------------------------------------------------------------------
CUSTODIAN FEES. "Custodian fees and expenses" in the Statement of Operations may
include interest expense incurred by the Fund on any cash overdrafts of its
custodian account during the period. Such cash overdrafts may result from the
effects of failed trades in portfolio securities and from cash outflows
resulting from unanticipated shareholder redemption activity. The Fund pays
interest to its custodian on such cash overdrafts, to the extent they are not
offset by positive cash balances maintained by the Fund, at a rate equal to the
Federal Funds Rate plus 0.50%. The "Reduction to custodian expenses" line item,
if applicable, represents earnings on cash balances maintained by the Fund
during the period. Such interest expense and other custodian fees may be paid
with these earnings.
- --------------------------------------------------------------------------------
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.
- --------------------------------------------------------------------------------
INDEMNIFICATIONS. The Fund's organizational documents provide current and former
directors and officers with a limited indemnification against liabilities
arising in connection with the performance of their duties to the Fund. In the
normal course of business, the Fund may also enter into contracts that provide
general indemnifications. The Fund's maximum exposure under these arrangements
is unknown as this would be dependent
22 | OPPENHEIMER MONEY MARKET FUND, INC.
on future claims that may be made against the Fund. The risk of material loss
from such claims is considered remote.
- --------------------------------------------------------------------------------
OTHER. The preparation of financial statements in conformity with U.S. generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of income and expenses during the reporting
period. Actual results could differ from those estimates.
- --------------------------------------------------------------------------------
2. SHARES OF CAPITAL STOCK
The Fund has authorized 7 billion shares of $.10 par value capital stock of each
class. Transactions in shares of capital stock were as follows:
SIX MONTHS ENDED JANUARY 31, 2007 YEAR ENDED JULY 31, 2006
SHARES AMOUNT SHARES AMOUNT
- ---------------------------------------------------------------------------------------------------
CLASS A
Sold 775,565,625 $ 775,565,625 2,183,702,008 $ 2,183,701,983
Dividends and/or
distributions reinvested 36,053,825 36,053,825 69,915,708 69,915,708
Redeemed (851,561,718) (851,561,718) (2,619,350,286) (2,619,330,262)
-----------------------------------------------------------------------
Net decrease (39,942,268) $ (39,942,268) (365,732,570) $ (365,712,571)
=======================================================================
- ---------------------------------------------------------------------------------------------------
CLASS Y
Sold 382,279,623 $ 382,279,623 1,111,138,886 $ 1,111,138,886
Dividends and/or
distributions reinvested 12,786,644 12,786,644 14,748,120 14,748,120
Redeemed (1,121,981,498) (1,121,981,498) (143,173,609) (143,173,609)
-----------------------------------------------------------------------
Net increase (decrease) (726,915,231) $ (726,915,231) 982,713,397 $ 982,713,397
=======================================================================
- --------------------------------------------------------------------------------
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 average net assets as shown in the following table:
FEE SCHEDULE
----------------------------------------
Up to $500 million 0.450%
Next $500 million 0.425
Next $500 million 0.400
Next $1.5 billion 0.375
Over $3 billion 0.350
- --------------------------------------------------------------------------------
TRANSFER AGENT FEES. OppenheimerFunds Services (OFS or the Transfer Agent), 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, 2007, the Fund paid $1,636,035 to OFS for services to the Fund.
23 | OPPENHEIMER MONEY MARKET FUND, INC.
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
3. FEES AND OTHER TRANSACTIONS WITH AFFILIATES Continued
Additionally, Class Y shares are subject to minimum fees of $10,000 per
annum for assets of $10 million or more. The Class Y shares are subject to the
minimum fees in the event that the per account fee does not equal or exceed the
applicable minimum fees. OFS may voluntarily waive the minimum fees.
- --------------------------------------------------------------------------------
SALES CHARGES. Front-end sales charges and contingent deferred sales charges
(CDSC) do not represent expenses of the Fund. They are deducted from the
proceeds of sales of Fund shares prior to investment or from redemption proceeds
prior to remittance, as applicable. The sales charges retained by the
Distributor from the sale of shares and the CDSC retained by the Distributor on
the redemption of shares is shown in the following table for the period
indicated.
CLASS A CONTINGENT DEFERRED SALES
SIX MONTHS ENDED CHARGES RETAINED BY DISTRIBUTOR
- ---------------------------------------------------------------
January 31, 2007 $30,993
- --------------------------------------------------------------------------------
WAIVERS AND REIMBURSEMENTS OF EXPENSES. OFS has voluntarily agreed to limit
transfer and shareholder servicing agent fees to 0.35% for Class A shares and
0.10% for Class Y shares of average annual net assets. This undertaking may be
amended or withdrawn at any time.
- --------------------------------------------------------------------------------
4. ILLIQUID SECURITIES
As of January 31, 2007, 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 will not invest more than 10% of its net assets (determined at the time of
purchase and reviewed periodically) in illiquid securities. Securities that are
illiquid are marked with the applicable footnote on the Statement of
Investments.
- --------------------------------------------------------------------------------
5. RECENT ACCOUNTING PRONOUNCEMENTS
In June 2006, the Financial Accounting Standards Board ("FASB") issued FASB
Interpretation No. 48 ("FIN 48"), ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES.
FIN 48 clarifies the accounting for uncertainty in income taxes recognized in an
enterprise's financial statements in accordance with FASB Statement No. 109,
ACCOUNTING FOR INCOME TAXES. FIN 48 requires the evaluation of tax positions
taken in the course of preparing the Fund's tax returns to determine whether it
is "more-likely-than-not" that tax positions taken in the Fund's tax return will
be ultimately sustained. A tax liability and expense must be recorded in respect
of any tax position that, in Management's judgment, will not be fully realized.
FIN 48 is effective for fiscal years beginning after December 15, 2006. As of
January 31, 2007, the Manager has evaluated the implications of FIN 48 and does
not currently anticipate a material impact to the Fund's financial statements.
The Manager will continue to monitor the Fund's tax positions prospectively for
potential future impacts.
24 | OPPENHEIMER MONEY MARKET FUND, INC.
In September 2006, the FASB issued Statement of Financial Accounting
Standards ("SFAS") No. 157, FAIR VALUE MEASUREMENTS. This standard establishes a
single authoritative definition of fair value, sets out a framework for
measuring fair value and expands disclosures about fair value measurements. SFAS
No. 157 applies to fair value measurements already required or permitted by
existing standards. SFAS No. 157 is effective for financial statements issued
for fiscal years beginning after November 15, 2007, and interim periods within
those fiscal years. As of January 31, 2007, the Manager does not believe the
adoption of SFAS No. 157 will materially impact the financial statement amounts;
however, additional disclosures may be required about the inputs used to develop
the measurements and the effect of certain of the measurements on changes in net
assets for the period.
- --------------------------------------------------------------------------------
6. LITIGATION
A consolidated amended complaint was filed as a putative class action against
the Manager and the Transfer Agent and other defendants (including 51 of the
Oppenheimer funds excluding the Fund) in the U.S. District Court for the
Southern District of New York on January 10, 2005 and was amended on March 4,
2005. The complaint alleged, among other things, that the Manager charged
excessive fees for distribution and other costs, and that by permitting and/or
participating in those actions, the Directors/Trustees and the Officers of the
funds breached their fiduciary duties to fund shareholders under the Investment
Company Act of 1940 and at common law. The plaintiffs sought unspecified
damages, an accounting of all fees paid, and an award of attorneys' fees and
litigation expenses.
In response to the defendants' motions to dismiss the suit, seven of the
eight counts in the complaint, including the claims against certain of the
Oppenheimer funds, as nominal defendants, and against certain present and former
Directors, Trustees and Officers of the funds, and the Distributor, as
defendants, were dismissed with prejudice, by court order dated March 10, 2006,
and the remaining count against the Manager and the Transfer Agent was dismissed
with prejudice by court order dated April 5, 2006. The plaintiffs filed an
appeal of those dismissals on May 11, 2006.
The Manager believes that the allegations contained in the complaint are
without merit and that there are substantial grounds to sustain the district
court's rulings. The Manager also believes that it is premature to render any
opinion as to the likelihood of an outcome unfavorable to it, the funds, the
Directors/Trustees or the Officers on the appeal of the decisions of the
district court, and that no estimate can yet be made with any degree of
certainty as to the amount or range of any potential loss.
25 | OPPENHEIMER MONEY MARKET FUND, INC.
PORTFOLIO PROXY VOTING POLICIES AND PROCEDURES;
UPDATES TO STATEMENTS OF INVESTMENTS 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
1.800.525.7048, (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 is required to
file 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 Fund's voting record is
available (i) without charge, upon request, by calling the Fund toll-free
at?1.800.525.7048, and (ii) in the Form N-PX filing on the SEC's website at
www.sec.gov.
The Fund files its complete schedule of portfolio holdings with the SEC
for the first quarter and the third quarter of each fiscal year on Form N-Q. The
Fund's Form N-Q filings are available on the SEC's website at
http://www.sec.gov. Those forms may be reviewed and copied at the SEC's Public
Reference Room in Washington D.C. Information on the operation of the Public
Reference Room may be obtained by calling 1-800-SEC-0330.
26 | OPPENHEIMER MONEY MARKET FUND, INC.
BOARD APPROVAL OF THE FUND'S INVESTMENT
ADVISORY AGREEMENT Unaudited
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Each year, the Board of Directors (the "Board"), including a majority of the
independent Directors, is required to determine whether to renew the Fund's
investment advisory agreement (the "Agreement"). The Investment Company Act of
1940, as amended, requires that the Board request and evaluate, and that the
Manager provide, such information as may be reasonably necessary to evaluate the
terms of the Agreement. The Board employs an independent consultant to prepare a
report that provides information, including comparative information that the
Board requests for that purpose. In addition, the Board receives information
throughout the year regarding Fund services, fees, expenses and performance.
The Manager and the independent consultant provided information to the
Board on the following factors: (i) the nature, quality and extent of the
Manager's services, (ii) the investment performance of the Fund and the Manager,
(iii) the fees and expenses of the Fund, including comparative expense
information, (iv) the profitability of the Manager and its affiliates, including
an analysis of the cost of providing services by the Manager and its affiliates,
(v) the extent to which economies of scale are realized as the Fund grows and
whether fee levels reflect these economies of scale for Fund investors and (vi)
other benefits to the Manager from its relationship with the Fund. The Board was
aware that there are alternatives to retaining the Manager.
NATURE AND EXTENT OF SERVICES. The Board considered information about the
nature and extent of the services provided to the Fund and information regarding
the Manager's key personnel who provide such services. The Manager's duties
include providing the Fund with the services of the portfolio managers and the
Manager's investment team, who provide research, analysis and other advisory
services in regard to the Fund's investments; securities trading services;
oversight of third party service providers; monitoring compliance with
applicable Fund policies and procedures and adherence to the Fund's investment
restrictions. The Manager is responsible for providing certain administrative
services to the Fund as well. Those services include providing and supervising
all administrative and clerical personnel who are necessary in order to provide
effective corporate administration for the Fund; compiling and maintaining
records with respect to the Fund's operations; preparing and filing reports
required by the Securities and Exchange Commission; preparing periodic reports
regarding the operations of the Fund for its shareholders; preparing proxy
materials for shareholder meetings; and preparing the registration statements
required by Federal and state securities laws for the sale of the Fund's shares.
The Manager also provides the Fund with office space, facilities and equipment.
27 | OPPENHEIMER MONEY MARKET FUND, INC.
BOARD APPROVAL OF THE FUND'S INVESTMENT
ADVISORY AGREEMENT Unaudited / Continued
- --------------------------------------------------------------------------------
QUALITY OF SERVICES. The Board also considered the quality of the services
provided and the quality of the Manager's resources that are available to the
Fund. The Board took account of the fact that the Manager has had over forty
years of experience as an investment adviser and that its assets under
management rank it among the top mutual fund managers in the United States. The
Board evaluated the Manager's administrative, accounting, legal and compliance
services, and information the Board has received regarding the experience and
professional qualifications of the Manager's personnel and the size and
functions of its staff. In its evaluation of the quality of the portfolio
management services provided, the Board considered the experience of Barry D.
Weiss and Carol E. Wolf and the Manager's Money Market investment team and
analysts. The Board members also considered their experiences with the Manager
and its officers and other personnel through their service on the boards of the
Fund and other funds advised by the Manager. The Board considered information
regarding the quality of services provided by affiliates of the Manager, which
its members have become knowledgeable about in connection with the renewal of
the Fund's service agreements. In light of the foregoing, the Board concluded
that the Fund benefits from the services provided under the Agreement and from
the Manager's experience, reputation, personnel, operations, and resources.
INVESTMENT PERFORMANCE OF THE MANAGER AND THE FUND. During the year, the
Manager provided information on the investment performance of the Fund and the
Manager at each Board meeting, including comparative performance information.
The Board also reviewed information, prepared by the Manager and by the
independent consultant, comparing the Fund's historical performance to relevant
market indices and to the performance of other retail money market funds advised
by the Manager and by other investment advisers. The Board noted that the Fund's
one-year performance was better than its peer group median, although its
three-year, five-year and ten-year performance were below its peer group median.
MANAGEMENT FEES AND EXPENSES. The Board reviewed the fees paid to the
Manager and its affiliates and the other expenses borne by the Fund. The Board
also evaluated the comparability of the fees charged and the services provided
to the Fund to the fees and services for other clients or accounts advised by
the Manager. The independent consultant provided comparative data in regard to
the fees and expenses of the Fund, other money market funds with comparable
asset levels and distribution features. The Board noted that the Fund's
contractual and actual management fees and total expenses are higher than its
peer group median.
28 | OPPENHEIMER MONEY MARKET FUND, INC.
ECONOMIES OF SCALE. The Board reviewed the extent to which the Manager may
realize economies of scale in managing and supporting the Fund, the extent to
which those economies of scale benefit the Fund's shareholders and the current
level of Fund assets in relation to the Fund's breakpoint schedule for its
management fees. The Board also noted the Fund's breakpoints, which are intended
to share economies of scale that may exist as the Fund grows with its
shareholders.
BENEFITS TO THE MANAGER. The Board considered information regarding the
Manager's costs in serving as the Fund's investment adviser, including the costs
associated with the personnel and systems necessary to manage the Fund, and
information regarding the Manager's profitability from its relationship with the
Fund. The Board considered that the Manager must be able to pay and retain
experienced professional personnel at competitive rates to provide services to
the Fund and that maintaining the financial viability of the Manager is
important in order for the Manager to continue to provide significant services
to the Fund and its shareholders. In addition to considering the profits
realized by the Manager, the Board considered information regarding the direct
and indirect benefits the Manager receives as a result of its relationship with
the Fund, including compensation paid to the Manager's affiliates for services
provided.
CONCLUSIONS. These factors were also considered by the independent
Directors meeting separately from the full Board, assisted by experienced
counsel to the Fund and the independent Directors. Fund counsel is independent
of the Manager within the meaning and intent of the Securities and Exchange
Commission Rules.
Based on its review of the information it received and its evaluations
described above, the Board, including a majority of the independent Directors,
concluded that the nature, extent and quality of the services provided to the
Fund by the Manager are a benefit to the Fund and in the best interest of the
Fund's shareholders and that the amount and structure of the compensation
received by the Manager and its affiliates are reasonable in relation to the
services provided. Accordingly, the Board elected to continue the Agreement for
another year. In arriving at this decision, the Board did not single out any
factor or factors as being more important than others, but considered all of the
factors together. The Board judged the terms and conditions of the Agreement,
including the management fee, in light of all of the surrounding circumstances.
29 | OPPENHEIMER MONEY MARKET FUND, INC.
ITEM 2. CODE OF ETHICS.
Not applicable to semiannual reports.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable to semiannual reports.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable to semiannual reports.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS
Not applicable.
ITEM 6. SCHEDULE OF INVESTMENTS.
Not applicable.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
THE FUND'S GOVERNANCE COMMITTEE PROVISIONS WITH RESPECT TO NOMINATIONS OF
DIRECTORS/TRUSTEES TO THE RESPECTIVE BOARDS
1. The Fund's Governance Committee (the "Committee") will evaluate potential
Board candidates to assess their qualifications. The Committee shall have
the authority, upon approval of the Board, to retain an executive search
firm to assist in this effort. The Committee may consider recommendations by
business and personal contacts of current Board members and by executive
search firms which the Committee may engage from time to time and may also
consider shareholder recommendations. The Committee may consider the advice
and recommendation of the Funds' investment manager and its affiliates in
making the selection.
2. The Committee shall screen candidates for Board membership. The Committee
has not established specific qualifications that it believes must be met by
a trustee nominee. In evaluating trustee nominees, the Committee considers,
among other things, an individual's background, skills, and experience;
whether the individual is an "interested person" as defined in the
Investment Company Act of 1940; and
whether the individual would be deemed an "audit committee financial expert"
within the meaning of applicable SEC rules. The Committee also considers
whether the individual's background, skills, and experience will complement
the background, skills, and experience of other nominees and will contribute
to the Board. There are no differences in the manner in which the Committee
evaluates nominees for trustees based on whether the nominee is recommended
by a shareholder.
3. The Committee may consider nominations from shareholders for the Board at
such times as the Committee meets to consider new nominees for the Board.
The Committee shall have the sole discretion to determine the candidates to
present to the Board and, in such cases where required, to shareholders.
Recommendations for trustee nominees should, at a minimum, be accompanied by
the following:
o the name, address, and business, educational, and/or other pertinent
background of the person being recommended;
o a statement concerning whether the person is an "interested person" as
defined in the Investment Company Act of 1940;
o any other information that the Funds would be required to include in a
proxy statement concerning the person if he or she was nominated; and
o the name and address of the person submitting the recommendation and, if
that person is a shareholder, the period for which that person held Fund
shares.
The recommendation also can include any additional information which the
person submitting it believes would assist the Committee in evaluating the
recommendation.
4. Shareholders should note that a person who owns securities issued by
Massachusetts Mutual Life Insurance Company (the parent company of the
Funds' investment adviser) would be deemed an "interested person" under the
Investment Company Act of 1940. In addition, certain other relationships
with Massachusetts Mutual Life Insurance Company or its subsidiaries, with
registered broker-dealers, or with the Funds' outside legal counsel may
cause a person to be deemed an "interested person."
5. Before the Committee decides to nominate an individual as a trustee,
Committee members and other directors customarily interview the individual
in person. In addition, the individual customarily is asked to complete a
detailed questionnaire which is designed to elicit information which must be
disclosed under SEC and stock exchange rules and to determine whether the
individual is subject to any statutory disqualification from serving as a
trustee of a registered investment company.
ITEM 11. CONTROLS AND PROCEDURES.
Based on their evaluation of the registrant's disclosure controls and procedures
(as defined in rule 30a-3(c) under the Investment Company Act of 1940 (17 CFR
270.30a-3(c)) as of January 31, 2007, the registrant's principal executive
officer and principal financial officer found the registrant's disclosure
controls and procedures to provide reasonable assurances that information
required to be disclosed by the 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.
There have been no changes in the registrant's internal controls over financial
reporting that occurred during the registrant's second fiscal quarter of the
period covered by this report that have materially affected, or are reasonably
likely to materially affect, the registrant's internal control over financial
reporting.
ITEM 12. EXHIBITS.
(a) (1) Not applicable to semiannual reports.
(2) Exhibits attached hereto.
(3) Not applicable.
(b) Exhibit attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
Oppenheimer Money Market Fund, Inc.
By: /s/ John V. Murphy
---------------------------
John V. Murphy
Principal Executive Officer
Date: March 13, 2007
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By: /s/ John V. Murphy
---------------------------
John V. Murphy
Principal Executive Officer
Date: March 13, 2007
By: /s/ Brian W. Wixted
--------------------------
Brian W. Wixted
Principal Financial Officer
Date: March 13, 2007