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
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(Name and address of agent for service)
Registrant's telephone number, including area code: (303) 768-3200
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Date of fiscal year end: July 31
-------
Date of reporting period: 01/31/2008
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ITEM 1. REPORTS TO STOCKHOLDERS.
JANUARY 31, 2008
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Management
Oppenheimer Commentaries
Money Market and
Fund, Inc. Semiannual
Report
- --------------------------------------------------------------------------------
MANAGEMENT COMMENTARIES
An Interview with Your Fund's Managers
SEMIANNUAL REPORT [GRAPHIC]
Listing of Investments
Financial Statements
"WE CURRENTLY INTEND TO MAINTAIN THE FUND'S STRINGENT CREDIT QUALITY
STANDARDS AND A SLIGHTLY LONGER-THAN-AVERAGE EFFECTIVE DURATION. IN OUR
JUDGMENT, MAINTAINING A CONSERVATIVE APPROACH IS KEY TO PRESERVING CAPITAL
UNDER VOLATILE MARKET CONDITIONS."
[LOGO] OPPENHEIMERFUNDS(R)
The Right Way to Invest
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, 2008.
ACTUAL EXPENSES. The first section of the table provides information about
actual account values and actual expenses. You may use the information in this
section 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 first section
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 second section of the table
provides 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 for each class before expenses, which is
not the 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 front-end
or 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
9 | OPPENHEIMER MONEY MARKET FUND, INC.
FUND EXPENSES Continued
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the Statement of Additional Information). Therefore, the "hypothetical" section
of the table is 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
ACTUAL AUGUST 1, 2007 JANUARY 31, 2008 JANUARY 31, 2008
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Class A $1,000.00 $1,024.00 $3.07
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Class Y 1,000.00 1,024.70 2.25
HYPOTHETICAL
(5% return before expenses)
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Class A 1,000.00 1,022.18 3.06
- --------------------------------------------------------------------------------
Class Y 1,000.00 1,022.99 2.25
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 0.60%
- ---------------------------
Class Y 0.44
The expense ratios reflect reduction to custodian expenses. The "Financial
Highlights" tables in the Fund's financial statements, included in this report,
also show the gross expense ratios, without such waivers or reimbursements and
reduction to custodian expenses, if applicable.
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10 | OPPENHEIMER MONEY MARKET FUND, INC.
STATEMENT OF INVESTMENTS January 31, 2008 / Unaudited
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PRINCIPAL
AMOUNT VALUE
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CERTIFICATES OF DEPOSIT--18.3%
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Barclays Bank plc,
New York:
4.38%, 4/8/08 $ 4,000,000 $ 4,000,000
4.87%, 4/24/08 30,000,000 30,000,000
5.16%, 4/2/08 15,000,000 15,000,000
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BNP Paribas,
New York:
5%, 3/13/08 15,000,000 15,000,000
4.56%, 4/2/08 40,000,000 40,000,000
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Citibank NA,
5.15%, 2/29/08 23,800,000 23,800,000
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Deutsche Bank,
New York,
3.80%, 4/17/08 10,000,000 10,000,000
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Fortis SA/NV,
New York,
3.20%, 4/25/08 18,500,000 18,500,000
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Governor & Co. of
the Bank of Ireland,
Stamford, CT:
3.84%, 4/18/08 14,000,000 14,000,000
5.15%, 2/29/08 12,000,000 12,000,000
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HSBC Bank USA, NA:
4.23%, 4/10/08 12,000,000 12,000,683
4.85%, 2/13/08 20,000,000 20,000,000
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JPMorgan Chase
Bank, NA,
3.25%, 4/23/08 26,000,000 26,000,000
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Lloyds TSB Bank plc,
New York:
4.79%, 2/14/08 12,000,000 12,000,000
4.80%, 2/1/08 25,000,000 25,000,000
5.45%, 3/10/08 20,000,000 20,000,000
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Royal Bank of Canada,
New York,
4.81%, 2/8/08 38,000,000 38,000,000
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Royal Bank of
Scotland,
New York,
5.44%, 3/13/08 14,500,000 14,500,000
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Skandinaviska Enskilda
Banken, New York:
3.885%, 4/15/08 18,500,000 18,500,000
5.155%, 2/29/08 19,000,000 19,000,073
PRINCIPAL
AMOUNT VALUE
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CERTIFICATES OF DEPOSIT Continued
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Toronto Dominion
Bank,
New York:
4.60%, 4/3/08 $ 9,000,000 $ 9,000,000
4.87%, 2/27/08 10,000,000 10,000,000
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UBS AG, Stamford,
CT:
5%, 3/6/08 15,000,000 15,000,000
5.455%, 3/7/08 5,000,000 5,000,000
5.48%, 3/7/08 5,000,000 5,000,000
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Total Certificates of Deposit
(Cost $431,300,756) 431,300,756
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DIRECT BANK OBLIGATIONS--23.5%
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Bank of America NA,
5.275%, 2/15/08 10,500,000 10,500,000
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Barclays US
Funding LLC:
4.77%, 2/26/08 5,000,000 4,983,438
5.31%, 3/10/08 20,000,000 19,887,900
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Danske Corp.:
4.82%, 2/4/08 1 10,000,000 9,995,983
5.38%, 3/6/08 1 40,000,000 39,796,756
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Dexia Delaware LLC,
5%, 2/22/08 17,000,000 16,950,417
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DnB NOR Bank ASA:
3.35%, 4/8/08 6,300,000 6,260,721
3.86%, 5/13/08 15,000,000 14,835,950
4.54%, 4/4/08 11,500,000 11,408,633
4.83%, 3/25/08 1 5,000,000 4,964,446
4.90%, 3/14/08 1 22,000,000 21,874,233
4.94%, 2/20/08 9,400,000 9,375,492
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Governor & Co. of
the Bank of Ireland,
4.94%, 2/19/08 1 30,000,000 29,925,900
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HSBC USA, Inc.,
4.74%, 2/29/08 14,600,000 14,539,077
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Nordea North
America, Inc.,
3.01%, 4/25/08 25,000,000 24,824,417
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Rabobank USA
Financial Corp.:
3.05%, 3/4/08 10,000,000 9,972,889
3.47%, 2/1/08 22,000,000 22,000,000
11 | OPPENHEIMER MONEY MARKET FUND, INC.
STATEMENT OF INVESTMENTS Unaudited / Continued
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PRINCIPAL
AMOUNT VALUE
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DIRECT BANK OBLIGATIONS Continued
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Royal Bank of
Scotland plc,
3.944%, 7/21/08 2,3 $ 15,000,000 $ 15,005,464
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Scotiabanc, Inc.,
4.05%, 4/11/08 1 52,000,000 51,570,394
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Skandinaviska Enskilda
Banken AB:
3.82%, 4/15/08 1 8,000,000 7,937,182
5.15%, 2/8/08 1 7,500,000 7,492,490
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Societe Generale
North America, Inc.:
3.765%, 4/23/08 15,000,000 14,871,363
3.87%, 4/17/08 33,000,000 32,730,390
4.57%, 4/3/08 5,000,000 4,960,647
4.77%, 2/4/08 15,000,000 14,994,063
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Stadshypotek
Delaware, Inc.:
4.40%, 4/9/08 1 20,000,000 19,833,778
5.015%, 2/28/08 1 24,000,000 23,909,730
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Swedbank AB,
4.90%, 2/1/08 2,900,000 2,900,000
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Swedbank
Mortgage AB:
5%, 2/25/08 12,000,000 11,960,000
5%, 3/14/08 24,000,000 23,860,000
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UBS Finance
(Delaware) LLC:
4.385%, 4/3/08 18,000,000 17,864,065
5.32%, 3/13/08 2,880,000 2,862,550
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Wells Fargo Bank NA,
3.88%, 2/22/08 30,000,000 30,000,000
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Total Direct Bank Obligations
(Cost $554,848,368) 554,848,368
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SHORT-TERM NOTES--56.8%
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ASSET-BACKED SECURITIES--24.6%
Amsterdam
Funding Corp.,
3.05%, 4/2/08 1 15,000,000 14,922,479
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Chariot Funding LLC,
3.60%, 2/5/08 2 4,000,000 3,998,400
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Chesham Finance LLC,
4.15%, 2/6/08 7,911,000 7,906,440
PRINCIPAL
AMOUNT VALUE
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ASSET-BACKED SECURITIES Continued
Falcon Asset
Securitization Co. LLC,
3.25%, 4/22/08 $ 7,000,000 $ 6,948,813
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FCAR Owner Trust I:
3.55%, 2/21/08 21,100,000 21,058,386
6%, 3/5/08 13,000,000 12,928,500
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FCAR Owner Trust II:
5.25%, 3/17/08 8,000,000 7,947,500
5.65%, 3/5/08 4,000,000 3,979,283
6%, 2/27/08 24,000,000 23,896,000
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Gemini Securitization
Corp.:
3.20%, 4/29/08 1 15,410,000 15,289,460
5.10%, 2/13/08 1 8,900,000 8,884,870
5.20%, 3/19/08 1 10,000,000 9,932,111
5.30%, 2/21/08 1 10,000,000 9,970,556
5.50%, 3/5/08 1 3,500,000 3,482,354
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Gotham Funding
Corp.:
3.16%, 3/17/08 1 10,000,000 9,960,500
3.33%, 3/4/08 1 37,000,000 36,889,760
5.55%, 2/21/08 1 20,000,000 19,938,333
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Legacy Capital LLC,
3.50%, 4/7/08 40,000,000 39,743,333
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Lexington Parker
Capital Co. LLC:
3.60%, 2/20/08 1 29,600,000 29,543,760
4%, 4/25/08 1 7,500,000 7,430,000
5.15%, 2/6/08 1 17,000,000 16,987,840
5.85%, 3/14/08 1 10,000,000 9,931,750
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Mont Blanc
Capital Corp.,
5.10%, 2/14/08 1 5,000,000 4,990,792
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New Center
Asset Trust:
3.55%, 3/27/08 50,000,000 49,728,819
4.60%, 2/28/08 15,000,000 14,948,250
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Old Line Funding
Corp.:
5.30%, 2/19/08 1 10,000,000 9,973,500
5.45%, 3/6/08 1 25,000,000 24,871,319
- --------------------------------------------------------------------------------
Ranger Funding
Co. LLC:
3.23%, 4/16/08 2 30,000,000 29,798,125
3.28%, 4/25/08 2 16,000,000 15,877,547
3.45%, 4/11/08 2 6,500,000 6,456,396
12 | OPPENHEIMER MONEY MARKET FUND, INC.
PRINCIPAL
AMOUNT VALUE
- --------------------------------------------------------------------------------
ASSET-BACKED SECURITIES Continued
Victory
Receivables Corp.:
4.31%, 4/10/08 1 $ 20,000,000 $ 19,834,783
5.35%, 3/7/08 1 21,170,000 21,059,887
- --------------------------------------------------------------------------------
Windmill Funding
Corp.:
4.22%, 4/4/08 1 11,000,000 10,918,765
4.33%, 2/28/08 1 15,000,000 14,951,288
4.45%, 4/8/08 1 25,000,000 24,792,951
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Yorktown Capital LLC,
4.12%, 4/11/08 1 10,000,000 9,919,889
---------------
579,692,739
- --------------------------------------------------------------------------------
AUTO COMPONENTS--0.3%
Nebar Investments
LLC,
Series 2005,
3.40%, 2/1/08 3 6,500,000 6,500,000
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BEVERAGES--0.3%
Beverage South LLC,
Series 2004,
3.29%, 2/7/08 3 6,725,000 6,725,000
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CAPITAL MARKETS--3.6%
Banc of America
Securities LLC,
3.32%, 2/1/08 3 50,000,000 50,000,000
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Citigroup
Funding, Inc.,
4.879%, 8/13/08 3 15,000,000 15,000,000
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Lehman
Brothers, Inc.,
3.388%, 2/1/08 3 21,000,000 21,000,000
---------------
86,000,000
- --------------------------------------------------------------------------------
COMMERCIAL BANKS--1.1%
JP Morgan Chase
& Co.,
3.05%, 4/24/08 26,000,000 25,817,169
- --------------------------------------------------------------------------------
COMMERCIAL FINANCE--1.0%
Caterpillar Financial
Services Corp.,
Series F,
5.16%, 11/26/08 3 24,000,000 24,000,000
PRINCIPAL
AMOUNT VALUE
- --------------------------------------------------------------------------------
CONSTRUCTION MATERIALS--0.2%
Mississippi Business
Finance Corp.,
Industrial Development
Revenue Bonds,
Shuqualak Lumber
Co., Inc. Project,
Series 2003,
3.26%, 9/1/08 3 $ 800,000 $ 800,000
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Warrior Roofing
Manufacturing of
Georgia LLC,
Series 2004,
3.31%, 2/1/08 3 3,070,000 3,070,000
---------------
3,870,000
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CONSUMER FINANCE--1.2%
American Express
Credit Corp.:
3.78%, 3/17/08 21,000,000 20,900,775
4.62%, 2/14/08 8,000,000 7,986,653
---------------
28,887,428
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DIVERSIFIED FINANCIAL SERVICES--2.4%
General Electric
Capital Services,
3.20%, 7/21/08 13,000,000 12,802,400
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General Electric Co.:
3.09%, 2/26/08 20,000,000 19,957,083
3.80%, 3/20/08 25,000,000 24,873,333
---------------
57,632,816
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DIVERSIFIED TELECOMMUNICATION SERVICES--1.9%
AT&T, Inc.,
3.06%, 2/1/08 44,300,000 44,300,000
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Port Authority
Columbiana Cnty., OH,
Series 2006,
3.40%, 12/1/08 3 1,680,000 1,680,000
---------------
45,980,000
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ENERGY EQUIPMENT & SERVICES--0.1%
Mississippi Business Finance Corp.
Revenue Bonds,
Signal International
LLC Project,
Series 2004A,
3.26%, 2/1/08 3 800,000 800,000
13 | OPPENHEIMER MONEY MARKET FUND, INC.
STATEMENT OF INVESTMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
PRINCIPAL
AMOUNT VALUE
- --------------------------------------------------------------------------------
ENERGY EQUIPMENT & SERVICES Continued
Mississippi Business
Finance Corp.
Revenue Bonds,
Signal International
LLC Project,
Series 2004C,
3.26%, 2/1/08 3 $ 900,000 $ 900,000
---------------
1,700,000
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FOOD PRODUCTS--2.5%
Beaver Cnty.,
UT Environmental
Facility, BEST Bio
Fuels LLC Project,
Series 2003B,
3.56%, 2/1/08 3 3,465,000 3,465,000
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Nestle Capital Corp.:
3.84%, 5/9/08 1 45,000,000 44,529,600
5.22%, 3/7/08 1 10,000,000 9,949,250
---------------
57,943,850
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HEALTH CARE EQUIPMENT & SUPPLIES--0.5%
Premier Senior Living
LLC,
Series 2007,
3.30%, 2/1/08 3 2,725,000 2,725,000
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Sprenger Enterprises,
Inc.,
3.56%, 2/1/08 3 8,300,000 8,300,000
---------------
11,025,000
- --------------------------------------------------------------------------------
INSURANCE--6.2%
ING America
Insurance Holdings,
Inc.:
4.10%, 4/11/08 40,000,000 39,681,111
5%, 3/13/08 8,000,000 7,954,444
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Jackson National
Life Global Funding,
Series 2004-6,
4.326%, 2/15/08 3,4 17,500,000 17,500,000
- --------------------------------------------------------------------------------
Jackson National
Life Global Funding,
Series 2008-1,
4.205%, 5/12/08 3,4 34,000,000 34,000,000
- --------------------------------------------------------------------------------
Metropolitan Life
Global Funding I,
Series 2003-5,
4.336%, 9/12/08 3,4 18,000,000 18,000,000
PRINCIPAL
AMOUNT VALUE
- --------------------------------------------------------------------------------
INSURANCE Continued
United of Omaha
Life Insurance Co.,
4.831%, 12/29/08 3,4 $ 30,000,000 $ 30,000,000
---------------
147,135,555
- --------------------------------------------------------------------------------
LEASING & FACTORING--4.0%
American Honda
Finance Corp.:
4.523%, 2/13/08 2,3 15,000,000 15,000,853
4.865%, 8/6/08 2,3 4,000,000 4,000,000
5.049%, 11/20/08 2,3 20,000,000 20,000,000
5.246%, 12/10/08 2,3 20,000,000 20,000,000
- --------------------------------------------------------------------------------
Toyota Motor
Credit Corp.:
3.75%, 5/16/08 21,200,000 20,968,125
4.961%, 9/15/08 3 14,000,000 14,000,000
---------------
93,968,978
- --------------------------------------------------------------------------------
METALS & MINING--0.2%
AL Industrial
Development
Authority Revenue
Bonds, Simcala, Inc.
Project, Series 1995,
3.26%, 2/1/08 3 5,350,000 5,350,000
- --------------------------------------------------------------------------------
MUNICIPAL--1.4%
Avon Garden
Center LLC,
Series 2006,
3.40%, 2/1/08 3 3,915,000 3,915,000
- --------------------------------------------------------------------------------
Black Property
Management LLC,
Series 2006,
3.40%, 2/1/08 3 7,940,000 7,940,000
- --------------------------------------------------------------------------------
Harlan Development
Co. & Scott Pet
Products, Inc.,
Series 2003,
3.40%, 2/1/08 3 9,200,000 9,200,000
- --------------------------------------------------------------------------------
Willow Interests LLC,
Series 2005,
3.40%, 2/1/08 3 11,380,000 11,380,000
---------------
32,435,000
- --------------------------------------------------------------------------------
OIL, GAS & CONSUMABLE FUELS--0.2%
BP Capital Markets
plc,
4.45%, 2/4/08 5,000,000 4,998,146
14 | OPPENHEIMER MONEY MARKET FUND, INC.
PRINCIPAL
AMOUNT VALUE
- --------------------------------------------------------------------------------
PERSONAL PRODUCTS--1.8%
Reckitt Benckiser
Treasury Services plc:
3.30%, 4/22/08 1 $ 29,500,000 $ 29,280,963
3.50%, 3/17/08 1 14,000,000 13,938,750
---------------
43,219,713
- --------------------------------------------------------------------------------
SPECIAL PURPOSE FINANCIAL--3.3%
K2 (USA) LLC,
4.97%, 2/25/08 32,000,000 31,893,974
- --------------------------------------------------------------------------------
LINKS Finance LLC:
4.845%, 8/6/08 3,4 12,000,000 11,998,777
4.849%, 8/15/08 3,4 18,000,000 17,997,115
- --------------------------------------------------------------------------------
Parkland (USA) LLC,
4.035%, 7/16/08 3,4 15,000,000 14,999,322
---------------
76,889,188
---------------
Total Short-Term Notes
(Cost $1,339,770,582) 1,339,770,582
- --------------------------------------------------------------------------------
U.S. GOVERNMENT AGENCIES--0.4%
- --------------------------------------------------------------------------------
Federal Home
Loan Bank,
4.625%, 12/4/08
(Cost $10,000,000) 10,000,000 10,000,000
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS,
AT VALUE
(COST $2,335,919,706) 99.0% 2,335,919,706
- --------------------------------------------------------------------------------
OTHER ASSETS
NET OF LIABILITIES 1.0 23,819,854
------------------------------
NET ASSETS 100.0% $2,359,739,560
==============================
FOOTNOTES TO STATEMENT OF INVESTMENTS
SHORT-TERM NOTES AND DIRECT BANK OBLIGATIONS ARE GENERALLY TRADED ON A DISCOUNT
BASIS; THE INTEREST RATE SHOWN IS THE DISCOUNT RATE RECEIVED BY THE FUND AT THE
TIME OF PURCHASE. OTHER SECURITIES NORMALLY BEAR INTEREST AT THE RATES SHOWN.
1. Security issued in an exempt transaction without registration under the
Securities Act of 1933. Such securities amount to $649,476,402, or 27.52% of the
Fund's net assets, and have been determined to be liquid pursuant to guidelines
adopted by the Board of Directors.
2. 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 $130,136,785 or 5.51% of the Fund's net
assets as of January 31, 2008.
3. Represents the current interest rate for a variable or increasing rate
security.
4. Illiquid security. The aggregate value of illiquid securities as of January
31, 2008 was $144,495,214, which represents 6.12% of the Fund's net assets. See
Note 4 of accompanying Notes.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
15 | OPPENHEIMER MONEY MARKET FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES Unaudited
- --------------------------------------------------------------------------------
January 31, 2008
- -----------------------------------------------------------------------------------------------------------
ASSETS
- -----------------------------------------------------------------------------------------------------------
Investments, at value (cost $2,335,919,706)--see accompanying statement of investments $ 2,335,919,706
- -----------------------------------------------------------------------------------------------------------
Cash 2,076,688
- -----------------------------------------------------------------------------------------------------------
Receivables and other assets:
Shares of capital stock sold 33,435,933
Interest 6,236,802
Other 279,536
----------------
Total assets 2,377,948,665
- -----------------------------------------------------------------------------------------------------------
LIABILITIES
- -----------------------------------------------------------------------------------------------------------
Payables and other liabilities:
Shares of capital stock redeemed 14,960,692
Dividends 2,576,094
Directors' compensation 356,040
Transfer and shareholder servicing agent fees 239,925
Shareholder communications 17,277
Other 59,077
----------------
Total liabilities 18,209,105
- -----------------------------------------------------------------------------------------------------------
NET ASSETS $ 2,359,739,560
================
- -----------------------------------------------------------------------------------------------------------
COMPOSITION OF NET ASSETS
- -----------------------------------------------------------------------------------------------------------
Par value of shares of capital stock $ 235,964,439
- -----------------------------------------------------------------------------------------------------------
Additional paid-in capital 2,123,765,561
- -----------------------------------------------------------------------------------------------------------
Accumulated net realized gain on investments 9,560
----------------
NET ASSETS $ 2,359,739,560
================
- -----------------------------------------------------------------------------------------------------------
NET ASSET VALUE PER SHARE
- -----------------------------------------------------------------------------------------------------------
Class A Shares:
Net asset value and redemption price per share (based on net assets of $ 2,119,653,644
and 2,119,558,842 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 $240,085,916 and 240,085,543 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, 2008
- --------------------------------------------------------------------------------
INVESTMENT INCOME
- --------------------------------------------------------------------------------
Interest $ 58,254,126
- --------------------------------------------------------------------------------
Other income 151,159
-------------
Total investment income 58,405,285
- --------------------------------------------------------------------------------
EXPENSES
- --------------------------------------------------------------------------------
Management fees 4,507,643
- --------------------------------------------------------------------------------
Transfer and shareholder servicing agent fees:
Class A 1,626,575
Class Y 25,252
- --------------------------------------------------------------------------------
Shareholder communications:
Class A 52,713
Class Y 136
- --------------------------------------------------------------------------------
Directors' compensation 23,400
- --------------------------------------------------------------------------------
Custodian fees and expenses 5,631
- --------------------------------------------------------------------------------
Other 106,943
-------------
Total expenses 6,348,293
Less reduction to custodian expenses (28)
-------------
Net expenses 6,348,265
- --------------------------------------------------------------------------------
NET INVESTMENT INCOME 52,057,020
- --------------------------------------------------------------------------------
NET REALIZED GAIN ON INVESTMENTS 9,560
- --------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 52,066,580
=============
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, 2008 JULY 31,
(UNAUDITED) 2007
- ---------------------------------------------------------------------------------------------
OPERATIONS
- ---------------------------------------------------------------------------------------------
Net investment income $ 52,057,020 $ 97,413,676
- ---------------------------------------------------------------------------------------------
Net realized gain 9,560 --
------------------------------------
Net increase in net assets resulting from operations 52,066,580 97,413,676
- ---------------------------------------------------------------------------------------------
DIVIDENDS AND/OR DISTRIBUTIONS TO SHAREHOLDERS
- ---------------------------------------------------------------------------------------------
Dividends from net investment income:
Class A (44,817,560) (75,863,733)
Class Y (7,239,460) (21,549,943)
------------------------------------
(52,057,020) (97,413,676)
- ---------------------------------------------------------------------------------------------
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 398,014,002 124,822,632
Class Y (56,866,530) (710,984,113)
------------------------------------
341,147,472 (586,161,481)
- ---------------------------------------------------------------------------------------------
NET ASSETS
- ---------------------------------------------------------------------------------------------
Total increase (decrease) 341,157,032 (586,177,442)
- ---------------------------------------------------------------------------------------------
Beginning of period 2,018,582,528 2,604,759,970
------------------------------------
End of period $ 2,359,739,560 $ 2,018,582,528
====================================
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
18 | OPPENHEIMER MONEY MARKET FUND, INC.
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
SIX MONTHS
ENDED
JANUARY 31, 2008 YEAR ENDED JULY 31,
CLASS A (UNAUDITED) 2007 2006 2005 2004 2003
- ------------------------------------------------------------------------------------------------------------------------------------
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 .02 1 .05 1 .04 1 .02 1 -- 2 .01
Net realized gain (loss) -- 2 -- -- -- -- --
----------------------------------------------------------------------------------
Total from investment operations .02 .05 .04 .02 -- .01
- ------------------------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions
to shareholders:
Dividends from net investment income (.02) (.05) (.04) (.02) -- 2 (.01)
Distributions from net realized gain -- -- 2 -- -- -- -- 2
----------------------------------------------------------------------------------
Total dividends and/or distributions
to shareholders (.02) (.05) (.04) (.02) -- 2 (.01)
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
==================================================================================
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN 3 2.40% 4.87% 3.92% 1.80% 0.43% 0.84%
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $2,119,654 $1,721,631 $1,596,820 $1,962,575 $1,797,049 $1,955,368
- ------------------------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $1,892,417 $1,592,926 $1,885,665 $1,856,740 $1,808,266 $2,014,466
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 4
Net investment income 4.70% 4.76% 3.79% 1.78% 0.43% 0.83%
Total expenses 0.60% 0.65% 0.62% 0.65% 0.73% 0.72%
Expenses after payments, waivers and/or
reimbursements and reduction to
custodian expenses 0.60% 0.65% 0.62% 0.65% 0.72% 0.72%
1. Per share amounts calculated based on the average shares outstanding during
the period.
2. Less than $0.005 per share.
3. Assumes an 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. Sales charges are not reflected in the
total returns. Total returns are not annualized for periods 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 less than one full year.
SEE ACCOMPANYING NOTES TO FINANCIAL STATEMENTS.
19 | OPPENHEIMER MONEY MARKET FUND, INC.
FINANCIAL HIGHLIGHTS Continued
- --------------------------------------------------------------------------------
SIX MONTHS
ENDED
JANUARY 31, 2008 YEAR ENDED JULY 31,
CLASS Y (UNAUDITED) 2007 2006 2005 1
- --------------------------------------------------------------------------------------------------------------------
PER SHARE OPERATING DATA
- --------------------------------------------------------------------------------------------------------------------
Net asset value, beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00
- --------------------------------------------------------------------------------------------------------------------
Income from investment operations
Net investment income 2 .02 .05 .04 .02
Net realized gain (loss) -- 3 -- -- --
-------------------------------------------------------
Total from investment operations .02 .05 .04 .02
- --------------------------------------------------------------------------------------------------------------------
Dividends and/or distributions to shareholders:
Dividends from net investment income (.02) (.05) (.04) (.02)
Distributions from net realized gain -- -- 3 -- --
-------------------------------------------------------
Total dividends and/or distributions to shareholders (.02) (.05) (.04) (.02)
- --------------------------------------------------------------------------------------------------------------------
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00
=======================================================
- --------------------------------------------------------------------------------------------------------------------
TOTAL RETURN 4 2.47% 5.08% 4.08% 1.85%
- --------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------
RATIOS/SUPPLEMENTAL DATA
- --------------------------------------------------------------------------------------------------------------------
Net assets, end of period (in thousands) $ 240,086 $ 296,952 $ 1,007,940 $ 25,223
- --------------------------------------------------------------------------------------------------------------------
Average net assets (in thousands) $ 295,080 $ 433,570 $ 347,670 $ 22,892
- --------------------------------------------------------------------------------------------------------------------
Ratios to average net assets: 5
Net investment income 4.87% 4.97% 4.52% 2.05%
Total expenses 0.44% 6 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 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 less than one full year.
6. Reduction to custodian expenses less than 0.005%.
7. Voluntary waiver of transfer agent fees less than 0.005%.
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 adviser 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. Securities are valued at cost adjusted by the amortization
of discount or premium to maturity (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, 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. The Fund files income tax returns in U.S. federal and applicable state
jurisdictions. The statute of limitations on the Fund's tax return filings
generally remain open for the three preceding fiscal reporting period ends.
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.
21 | OPPENHEIMER MONEY MARKET FUND, INC.
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
1. SIGNIFICANT ACCOUNTING POLICIES
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 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, 2008, the Fund's projected benefit obligations, payments to retired
directors and accumulated liability were as follows:
Projected Benefit Obligations Increased $ 1,208
Payments Made to Retired Directors 30,458
Accumulated Liability as of January 31, 2008 247,129
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 and
may differ from U.S. generally accepted accounting principles, 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
22 | OPPENHEIMER MONEY MARKET FUND, INC.
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 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 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 increases and
decreases in net assets from operations 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.
Transactions in shares of capital stock were as follows:
SIX MONTHS ENDED JANUARY 31, 2008 YEAR ENDED JULY 31, 2007
SHARES AMOUNT SHARES AMOUNT
- --------------------------------------------------------------------------------------------------
CLASS A
Sold 1,377,203,516 $ 1,377,203,516 1,722,135,531 $ 1,722,136,111
Dividends and/or
distributions reinvested 42,283,397 42,283,397 72,988,897 72,988,897
Redeemed (1,021,472,929) (1,021,472,911) (1,670,302,390) (1,670,302,376)
---------------------------------------------------------------------
Net increase 398,013,984 $ 398,014,002 124,822,038 $ 124,822,632
=====================================================================
- --------------------------------------------------------------------------------------------------
CLASS Y
Sold 122,327,879 $ 122,327,879 553,220,043 $ 553,220,043
Dividends and/or
distributions reinvested 6,526,070 6,526,070 18,991,519 18,991,519
Redeemed (185,720,479) (185,720,479) (1,283,195,675) (1,283,195,675)
---------------------------------------------------------------------
Net decrease (56,866,530) $ (56,866,530) (710,984,113) $ (710,984,113)
=====================================================================
23 | OPPENHEIMER MONEY MARKET FUND, INC.
NOTES TO FINANCIAL STATEMENTS Unaudited / Continued
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
3. FEES AND OTHER TRANSACTIONS WITH AFFILIATES
MANAGEMENT FEES. Under the investment advisory agreement, the Fund pays the
Manager a management fee based on the daily net assets of the Fund at an annual
rate 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"), 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, 2008, the
Fund paid $1,672,371 to OFS for services to the Fund.
Additionally, Class Y shares are subject to minimum fees of $10,000
annually 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. Contingent deferred sales charges ("CDSC") do not represent an
expense of the Fund. They are deducted from the proceeds of redemptions of Fund
shares prior to remittance. The CDSC retained by the Distributor on the
redemption of shares is shown in the table below for the period indicated.
CLASS A CONTINGENT DEFERRED SALES
SIX MONTHS ENDED CHARGES RETAINED BY DISTRIBUTOR
- -------------------------------------------------------------
January 31, 2008 $255,476
- --------------------------------------------------------------------------------
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, 2008, investments in securities included issues that are
illiquid. Investments may be illiquid because they do not have an active trading
market, making it difficult to value them or dispose of them promptly at an
acceptable price. 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 an applicable footnote
on the Statement of Investments.
24 | OPPENHEIMER MONEY MARKET FUND, INC.
- --------------------------------------------------------------------------------
5. RECENT ACCOUNTING PRONOUNCEMENT
In September 2006, Financial Accounting Standards Board ("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, 2008, 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.
25 | 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.
26 | OPPENHEIMER MONEY MARKET FUND, INC.
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 Carol E.
Wolf and Barry D. Weiss, the portfolio managers for the Fund, 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 regular quarterly 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
front-end load and no-load money market funds advised by other investment
advisers. The Board noted that the Fund's one-year and three-year performance
were better than its peer group median. However, its five-year performance was
equal to its peer group median and its ten-year performance was 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 considered 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 and other 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.
27 | OPPENHEIMER MONEY MARKET FUND, INC.
BOARD APPROVAL OF THE FUND'S INVESTMENT
ADVISORY AGREEMENT Unaudited / Continued
- --------------------------------------------------------------------------------
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.
28 | 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.
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 to semiannual reports.
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 01/31/2008, 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: 03/11/2008
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: 03/11/2008
By: /s/ Brian W. Wixted
---------------------------
Brian W. Wixted
Principal Financial Officer
Date: 03/11/2008