RBB FUND INC, N-30D, 1995-04-28

RBB FUND INC
N-30D, 1995-04-28

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<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
PORTFOLIO MANAGER'S LETTER
FEBRUARY 28, 1995
BEA INTERNATIONAL EQUITY PORTFOLIO
April 19, 1995
Dear Shareholder:

We are pleased to report on the performance of the BEA International Equity
Portfolio for the six months ended February 28, 1995. The net asset value (NAV)
of the Portfolio as of February 28, 1995 was $16.46, compared to an NAV of
$20.73 at August 31, 1994. As a result, the Portfolio's total return (assuming
reinvestment of distributions of $.6558 per share) for the six-month period
declined 17.69%. In comparison, the MSCI EAFE Index declined 7.95% during the
same period. Since the inception of the Portfolio on October 1, 1992, its total
return (assuming reinvestment of dividends and distributions) has increased
17.41% versus 32.61% for the index during the same period.

MARKET COMMENTARY

During the first quarter of 1995, the predominant characteristic of the
global capital marketplace appeared at times to be its unpredictability. Over
the past few months, newspapers have seemed to contain new doses of bad news
virtually every week. The destructive and tragic earthquake in one of Japan's
most important cities; the sudden collapse of the venerable Barings investment
bank due to trading losses; the dramatic decline in the value of the U.S.
dollar; and the ongoing deterioration of the Mexican economy and Latin American
markets in general -- all of these combined to paint a picture of chaos and
dissolution.

It is our view, however, that things are not nearly so bad as they have
seemed. While the past three months have been difficult ones in several markets
- -- particularly in Latin American and in Japan -- there have also been several
bright spots, and it appears to us that skies are beginning to clear even in the
more troubled markets. As we enter the second quarter, we believe that the
outlook is a relatively benign one. As we have often argued, bad news and
pessimistic moods often conceal exciting investment opportunities. The long-term
investor who keeps his wits about him is well-positioned to reap the benefits.

It is perhaps worthwhile in this context to briefly discuss the actual
market effects of the seemingly cataclysmic events of the last three months. In
almost every case, the capital markets have displayed unexpected adaptability
and flexibility, taking only hours or days to shake off what initially appeared
to be shattering blows. Even in the situations where the impact of bad news has
been more significant -- the Mexican debacle and the collapse of the dollar --
we believe that markets are now beginning to show signs of recovery from what
will, in historical terms, appear to be overreactions of relatively brief
duration.

The Kobe earthquake, which rocked western Japan early on the morning of
January 17th, caused massive loss of life and property damage in the billions of
dollars. On a short-term basis at least, this changed the Japanese economic
picture. The quake caused severe damage to crucial segments of Japan's
transportation infrastructure; Kobe is the country's second largest seaport, and
is an important hub for freight transport not only to and from Japan but
throughout the northern Pacific region. In addition, the damaged region is an
important center for road and rail transport within Japan, as it lies at the
nexus of the eastern and western regions of the country. Without doubt, the
quake resulted in a minor interruption in Japan's burgeoning economic recovery,
although the economy has displayed impressive flexibility in adapting to changed
conditions. The Japanese equity market, meanwhile, dropped sharply in the
immediate aftermath of the earthquake, but within a week had returned to its
previous level (from where it resumed the more gradual decline that we have seen
throughout the quarter).

The shocking collapse of Barings had a similar, extremely limited effect
upon the global markets. Because the trading strategy that blew up in the face
of Barings' "rogue trader" involved futures on the Japanese stock index, the
impact of the scandal was most powerfully felt in the Japanese market, which
experienced a burst of short-term volatility, which was largely technical in
nature. Nothing about this scandal or its aftermath had any meaning at all for
the fundamentals of Japan's economy. Rather, the market sold off (it was down by
3.8% on the day after the Barings news broke) as a result of investor concerns
about negative market impact as Barings' multi-billion dollar futures positions
were unwound. Once again, the market quickly put this crisis behind it, and the
Japanese market returned to more normal levels of volatility and to its
medium-term pattern of gradual decline.

1
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
PORTFOLIO MANAGER'S LETTER--(CONTINUED)
FEBRUARY 28, 1995

The dramatic moves we saw during the quarter in the value of the U.S. dollar
against other major currencies is an issue of greater long-term concern. Since
the beginning of the year, only a handful of currencies have weakened against
the U.S. dollar -- and with the exception of the Italian lira and Australian
dollar all of those were emerging market currencies. The Yen, the Swiss franc,
and the currencies of the Deutschemark bloc all strengthened by between 10% and
16% against the U.S. unit during the quarter. As our readers are well aware, the
cycle of U.S. dollar weakness has been longer and deeper than virtually anyone
anticipated. It was only the middle of last year, after all, that the dollar
first slid below the 100 yen level, a barrier that at the time appeared to have
a great psychological significance for the foreign exchange market. In the first
two months of 1995, the dollar continued to decline against the Yen and
Deutschemark, but at a relatively leisurely pace. During the week of February
27th, however, it went into a freefall, each day hitting new historical lows.
From an opening rate of just over 96 Yen to the dollar, the U.S. unit found no
support in the market until it had fallen by week-end to under 90.5, and it
hovered just under 90 Yen for the next couple of weeks.

Toward the end of March, however, the market was taken by surprise as the
German central bank announced a half-point reduction in two key short-term
interest rates. Their purpose, it seems clear, was to reduce the attractiveness
of the Deutschemark to investors and shore up the value of the U.S. dollar. The
reaction of investors to this unexpected move was mixed. To some, the weaker
mark would provide a much-needed boost to the German economy, while others sold
on the fear the Bundesbank's new policy signified a relaxation of its
traditionally strong anti-inflation stance. The foreign exchange market,
meanwhile, has not responded as the Bundesbank hoped. While the dollar did spike
briefly in the immediate aftermath of the announcement, within hours speculation
began to focus on the Japanese and U.S. central banks. On the last day of the
month, Japan disappointed investors by failing to follow the German lead, and
indications were that the Federal Reserve was not likely to raise U.S. rates
either. At the close of March, therefore, the U.S. dollar was in collapse once
again, falling below the 85 Yen level at the time of writing.

The wild volatility of the global foreign exchange market is, we believe, a
product more of speculative currency trading than of economic fundamentals or
world trade flows. So far -- to a certain extent, at least -- investors seem to
agree with this view. Most striking has been the continued optimism of the U.S.
equity market. In Japan, on the other hand, the market has taken a less
optimistic tone. Investors there remain concerned that the unexpected and
unprecedented strength of the Yen will place a significant level of pressure on
the Japanese economic recovery. Lost amidst this wave of bearishness is the fact
that the Japanese recession is now clearly over, the economy continues to grow
at a slow but steady pace, interest rates have declined by approximately 1% so
far in 1995, and none of Japan's difficulties this year have caused any
appreciable deterioration of the economic fundamentals. At the same time,
continued political gridlock, an overly regulated economy, and the strength of
the Yen do inject some risk into a generally positive scenario. In sum, however,
our view on Japan is positive: while underweight relative to the EAFE Index, our
allocation is high in the context of BEA's historical allocations to the
Japanese market.

For some time, we have not seen any particularly compelling values among the
European markets, and we are underweight in every major country but France.
While Europe has now emerged from its long recession, we believe that it is in
for a period of slow and unexciting growth. The U.K. was the only market in
Europe to finish the first quarter with a positive return. In general, the
U.K.'s generally strong performance reflects investor approval of the Major
government's anti-inflationary stance. We are not bullish on the prospects of
this market in the medium to long term, however, as it appears likely to us that
political pressures will cause the government's current fiscal discipline to
dissipate in relatively short order. The German market, on the other hand, may
finally be on the verge of recovery from a year-long slump. While valuations
remain fairly full and the strong Deutschemark remains a potential crimp on
exports, we believe that the recent surprise reduction in short-term interest
rates may provide the necessary spark for accelerated earnings growth.

The most momentous crisis of 1995 has been the collapse of the Mexican peso,
and its wide-ranging repercussions throughout the emerging markets. In our last
letter to you, at the beginning of the year, we outlined the development of the
Mexican crisis in some detail. As you know, in the months since the situation
got significantly worse before, in the second half of March, beginning to show
signs of getting

2
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
PORTFOLIO MANAGER'S LETTER--(CONTINUED)
FEBRUARY 28, 1995
better. When we last reported to you, it appeared that Mexico's market was
showing signs of stabilizing in the wake of President Clinton's $52 billion
international credit package to save the Mexican economy. The basic framework of
this package was structured during the last few days of January, as the value of
the peso continued to plummet and the Mexican government appeared to be on the
verge of default. Much of the month of February, however, was taken up with the
details of the plan, and a final agreement was reached between U.S. Treasury
Secretary Robert Rubin and Mexican Finance Minister Guillermo Ortiz only at the
end of the month. Already in the immediate aftermath of the agreement we have
seen Mexican interest rates soar to nearly 100%. The strong Mexican equity
market during the second half of March (in fact, Mexican stocks were among the
best performing in the world -- in local currency terms -- last month) seems to
signify a growing investor confidence in the Zedillo administration's economic
stabilization plan. While many questions remain open -- particularly Mexico's
ability to steady its economy in the context of free-floating peso -- some
investors appear to believe that equity valuations are now attractive despite
Mexico's poor economic prognosis (a painful recession combined with high
inflation) for the remainder of 1995.

The impact of this crisis upon the rest of Latin America has been profound.
Argentina and Brazil have had particular problems: foreign investors account for
a large portion of the trading in each market, and both economies bear a certain
similarity -- if only superficially -- with that of Mexico. Argentina has
suffered particularly from comparisons with Mexico, and rumors of imminent
default or devaluation have periodically swirled through the market. We believe
strongly that Argentina is not another Mexico, and the performance of the
Argentine market during March is particularly encouraging in this regard. After
stock indices hit four-year lows early in the month, the market has rebounded by
nearly 50%, on the back of rising confidence in the government's efforts to
shield the economy from Mexican fallout. Brazil, at the same time, has taken
steps indicating that the government is willing to risk some short-term increase
in inflation in exchange for bringing down the current account deficit. We
continue to expect Brazil to be the market in which we will make the most money
- -- worldwide -- over the next five years.

The immediate effects of the peso's collapse hit markets far beyond Mexico's
Latin American neighbors. Last December and into January, virtually all emerging
markets declined sharply as liquidity evaporated from the marketplace in a
general flight to quality. During February, however, we began to see a
significant divergence of returns between markets in Latin America -- which
continued to suffer -- and the Asian markets, which recovered strongly. Most
Asian stock markets gained back much or all of their January losses. Hong Kong
and Malaysia (two of the Fund's largest positions in the region) were the
leaders for the quarter. Looking forward, within the region we are particularly
bullish on Hong Kong, a market that we believe is very attractively valued at
present. We believe that Hong Kong has set off on what could be an extended
rally, in the wake of a dramatic year-long decline.

PERFORMANCE REPORT

The first quarter was another disappointing period for us in the
international equity markets. As you know, BEA takes a top-down approach to
international equity management. Generally, therefore, the majority of our
value-added has historically been derived at the country allocation level. We
base this approach upon the observation that, in the medium to long term, the
variability of returns among countries is more significant, as well as more
exploitable, than that among stocks within a single country.

Consistent with BEA's investment strategy, our underperformance during the
first quarter of 1995 can be attributed almost entirely to top-down factors,
particularly to our significant diversification of the Fund into the emerging
markets. This strategy has been very successful for BEA's clients over the past
several years, but since early 1994 has been an overall detriment to our
performance.

While our commitment to the emerging markets clearly cost us significantly
in the Fund's returns, we believe strongly that this strategic bet will be a key
to long-term outperformance for our clients. Despite the dizzying levels of
volatility that we have seen in the emerging markets over the past several
months, we believe that these markets remain an extremely attractive long-term
investment. While the economic fundamentals have changed in certain markets --
most notably in Mexico -- much of the selling pressure that has driven

3
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
PORTFOLIO MANAGER'S LETTER--(CONTINUED)
FEBRUARY 28, 1995
markets down has borne little relationship to economic reality. We believe that,
over the medium to long term, the emerging equity markets will continue to
outperform the developed markets by a substantial margin throughout the 1990s.
This projection is based on both macroeconomic and capital markets factors. We
expect the growth rate of developing economies to continue to outpace that of
the developed countries, and we believe that high economic growth has and will
continue to correlate with relatively high equity market returns.

Despite a preponderance of negative news in the past several months, we
believe that international investment opportunities for the remainder of 1995
are as attractive as they have been for some time. We encourage investors to
maintain a long-term perspective, as we do. It has been our observation that
markets driven down by excessive pessimism (even panic) are the markets that
often present the most compelling values.

ORGANIZATIONAL DEVELOPMENTS

During the first quarter of 1995, there have been several positive
developments at BEA, on which we would like to bring you up to date. In the
international equity area, early this year Margaret Kendall decided to leave BEA
in order to pursue other opportunities. We are pleased to announce that
portfolio management in the Pacific Rim markets has been taken over by Steven
Swift, who joins BEA with the title of Managing Director. Steven has focused on
the emerging markets of Southeast Asia and the Pacific Rim for more than 20
years. Prior to joining BEA, he spent three years at Credit Suisse Asset
Management in London, where he was Head of Global Equities and portfolio manager
for the CS Tiger Fund, one of the largest and most successful mutual funds
specializing in Southeast Asian equities. For the previous 15 years, he was with
Wardley Investment Services, a Hong Kong-based subsidiary of the Hong Kong and
Shanghai Bank, where he was a Managing Director for regional funds. In 1990, he
was nominated as "The Leading Global Money Manager" in a survey by Barrons.
Steven brings to BEA an unparalleled depth and breadth of knowledge and
experience in the markets of Southeast Asia and the Pacific Rim, and we are very
excited to have him aboard.

Also during the first quarter, BEA announced that our firm will be
integrating the U.S. operations of CS First Boston Investment Management, a move
that will significantly expand the size and scope of BEA's fixed income
management activities. While this will have no impact upon the personnel or
investment strategy for international equity accounts, we believe that it is a
very positive step forward in our development as a multi-product,
globally-oriented investment management business.

In conclusion, we very much appreciate the trust that our clients have
placed in us, and we greatly value our relationship with you. Again, if you have
questions or concerns that were not addressed in this letter, please feel free
to be in touch with us at any time.

Sincerely yours,

BEA International Equities Team

Emilio Bassini, Managing Director
Piers Playfair, Managing Director
Steven D. Bleiberg, Vice President
Steven Swift, Managing Director

4
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
PORTFOLIO MANAGER'S LETTER--(CONTINUED)
FEBRUARY 28, 1995

BEA INTERNATIONAL EQUITY PORTFOLIO

COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN THE BEA INTERNATIONAL
EQUITY PORTFOLIO AND THE MORGAN STANLEY
COMPOSITE INDEX EAFE FROM INCEPTION 10/1/92 AND AT EACH QUARTER END.

<TABLE>
<S> <C>
AVERAGE ANNUAL TOTAL RETURN
One Year (17.85)%
From Inception 6.44%
</TABLE>

EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC

Note: Past performance is not predictive of future performance.

5
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
PORTFOLIO MANAGER'S LETTER--(CONTINUED)
FEBRUARY 28, 1995
BEA EMERGING MARKETS EQUITY PORTFOLIO
April 19, 1995
Dear Shareholder:

We are pleased to report on the performance of the BEA Emerging Markets
Equity Portfolio for the six months ended February 28, 1995. The net asset value
(NAV) of the Portfolio as of February 28, 1995 was $15.92 compared to an NAV of
$24.58 at August 31, 1994. As a result, the Portfolio's total return (assuming
reinvestment of dividends and distributions of $.9911 per share) for the
six-month period declined 31.91%. In comparison, the MSCI Emerging Markets Free
Index declined 24.61% during the same period. Since the inception of the
Portfolio on February 1, 1993, its total return (assuming reinvestment of
dividends and distributions) increased 13.47% versus 37.65% for the index during
the same period.

MARKET COMMENTARY

The dominant factor in the performance of emerging equity markets worldwide
so far 1995 has been the collapse of the Mexican peso, and its wide-ranging
repercussions. In our last letter to you, at the beginning of the year, we
outlined the development of the Mexican crisis in some detail. As you know, in
the months since, the situation got significantly worse before, in the second
half of March, beginning to show signs of getting better. When we last reported
to you, it appeared that Mexico's market was showing signs of stabilizing in the
wake of President Clinton's $52 billion international credit package to save the
Mexican economy. The basic framework of this package was structured during the
last few days of January, as the value of the peso continued to plummet and the
Mexican government appeared to be on the verge of default. Much of the month of
February, however, was taken up with the details of the plan, and a final
agreement was reached between U.S. Treasury Secretary Robert Rubin and Mexican
Finance Minister Guillermo Ortiz only at the end of the month. In the end, the
Mexicans were compelled to hand over to the U.S. substantial control over the
future direction of their economy. Perhaps the most important provision, from an
economic point of view, was the requirement that the Mexicans maintain --
whatever the cost -- an extraordinarily tight monetary policy in order to limit
the inflationary effects of the peso crisis. In the aftermath of the agreement
we have seen Mexican interest rates soar to nearly 100%.

It appears the finalization of this rescue package may have signaled a turn
in the right direction, but it is clearly only a beginning. The Mexican
financial markets are still in the grips of a two-headed crisis -- a lack of
investor confidence in the consistency and competence of government policy, and
worries over the economic impact of the crisis. The strong equity market during
the second half of March (in fact, Mexican stocks were among the best performing
in the world -- in local currency terms -- last month) seems to signify a
growing investor confidence in the Zedillo administration's economic
stabilization plan. While many questions remain open -- particularly Mexico's
ability to steady its economy in the context of free-floating peso -- some
investors appear to believe that equity valuations are now attractive despite
Mexico's poor economic prognosis (a painful recession combined with high
inflation) for the remainder of 1995. Meanwhile, the freakish political events
we have witnessed in recent weeks -- the pseudo-exile of former President
Salinas following the arrest of his brother in a political assassination plot
which was in turn allegedly covered up by the victim's own brother, who was the
government's chief investigator -- have, if anything, redounded to the political
benefit of President Zedillo. Zedillo has effectively used this political crisis
to solidify his image as a reformer seeking to uncover and eliminate PRI
corruption whatever the cost.

The impact of this crisis upon the rest of Latin America has been profound.
The extent to which markets have declined in sympathy to Mexico's has largely
depended upon two variables, which, as it turns out, often go hand in hand. The
first is the importance, within each market, of foreign investors, which depends
upon both the domestic savings rate and the restrictions imposed upon foreign
investment. As Mexico's troubles have sucked liquidity out of the emerging
markets, the BOLSAS that are dominated by foreigners feel substantially more
selling pressure than those where domestic investors control the preponderance
of shares. The second factor is the country's similarity, in economic terms, to
Mexico. Of the major regional markets, the chief beneficiary of this calculus
has been Chile, where the savings rate is

6
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
PORTFOLIO MANAGER'S LETTER-- (CONTINUED)
FEBRUARY 28, 1995
high, foreign investment is strictly regulated, the currency is fairly valued,
the current account balance is healthy, and economic reform has been a sterling
success. As a result, Chilean equities have seen relatively little diminution of
value since last December 19th. In contrast, Argentina and Brazil have problems,
in varying degrees, with both variables. Foreign investors account for a large
portion of the trading in each market, and both economies bear a certain
similarity -- if only superficially -- with that of Mexico. Argentina has
suffered particularly from comparisons with Mexico, and rumors of imminent
default or devaluation periodically swirled through the market during the first
quarter.

We believe strongly that Argentina is not another Mexico, and the
performance of the Argentine market during March is particularly encouraging in
this regard. After stock indices hit four-year lows early in the month, by
quarter-end the market has rebounded by approximately 45%, on the back of rising
confidence in the government's efforts to shield the economy from Mexican
fallout. Most important was an agreement with the IMF to provide $2.8 billion in
new credits, which effectively removed the shadow of potential devaluation, and
a strong program to shore up the ailing banking system. Brazil, at the same
time, has taken steps indicating that the government is willing to risk some
short-term increase in inflation in exchange for bringing down the current
account deficit. We continue to expect Brazil to be the market in which we will
make the most money -- worldwide -- over the next five years. In the short term,
however, we are concerned that we have not seen much progress in the
implementation of Mr. Cardoso's campaign promises on constitutional reforms. The
market has clearly reacted adversely to this. Foreign investors, we believe, are
waiting to see substantial progress before becoming buyers of Brazil. Until this
happens, the market is likely to have lackluster performance.

Prospects for the Hong Kong market (and, to some extent, other markets in
the region) hinge on three factors: sentiment in the local property market, U.S.
interest rates, and political and economic developments in China. The property
market (in which we have not had a substantial position in the Fund) appears
finally to have bottomed out. Any short-term fears of rates continuing to rise
in the U.S. will likely cause a near-term hiccup, which would probably subside
in the medium term. However, a more stable interest rate environment or lower
interest rates in the future would provide a significant benefit to earnings
growth in Hong Kong. Additionally, the likely strengthening of the U.S. dollar
over the next 18 to 36 months should benefit Hong Kong's economy. The political
risks in China -- with Deng's death expected in the not-too-distant future --
are well known. For some time, market performance throughout the entire region
has been stunted to some extent by concerns over the economic effects of a power
struggle in the Chinese leadership. At current valuations, however, we believe
that the overall picture is an appealing one for the long-term investor: we
believe that it is and will remain in China's interest to maintain the viability
of Hong Kong as a gateway to its capital-starved economy.

The rest of the region remains primarily a story of dramatic and continuing
economic growth. In general, economies in Asia are well-managed, are growing at
a steady rate, and continue to produce strong and consistent earnings growth.
While there exist certain risks to this scenario -- either a resumption of
rising U.S. rates or an economic slowdown in the U.S. would reduce our growth
expectations for the Asian economies -- we believe that the picture is a
generally positive one. Within the region, our overweight positions currently
are in Hong Kong and Singapore.

7
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
PORTFOLIO MANAGER'S LETTER-- (CONTINUED)
FEBRUARY 28, 1995

PERFORMANCE REPORT

The first quarter was another disappointing period for us in the emerging
equity markets. As you know, BEA takes a top-down approach. Generally,
therefore, the majority of our value-added has historically been derived at the
country allocation level. We base this approach upon the observation that, in
the medium to long term, the variability of returns among countries is more
significant, as well as more exploitable, than that among stocks within a single
country.

Consistent with BEA's investment strategy, our underperformance during the
first quarter of 1995 can largely be attributed to top-down factors,
particularly to our overweight positions in Mexico and Brazil. In each of those
countries, the local index lost a third or more of its value during the course
of the quarter; this had a significant impact upon the performance of the Fund.

The Fund's performance relative to its benchmark was also hurt by the strong
performance during the quarter of the South African market, in which we do not
currently maintain a position. South Africa, which was incorporated in the MSCI
Emerging Markets Free Index as of March 1995, now has an index weighting of more
than 16%, making it second in size only to Malaysia. BEA has followed this
market for the past several years. The head of our International Research group
is a South African national who has made two research oriented trips to the
country since February 1994, at which time we began to be in close touch with a
wide variety of analysts and brokers regarding the South African market. In our
portfolios, we do not limit our investment universe to markets included in the
benchmark. Therefore, South Africa's previous exclusion from the MSCI Emerging
Markets Free Index did not lead BEA to stay out of the country as a matter of
policy. Over the past couple of years, we have at times taken a small amount of
South African exposure, particularly in gold-related stocks. Similarly, its
inclusion in the index as of 1995 has not caused us to blindly invest there.

Because country allocation in a portfolio is essentially a zero-sum game, we
focus on countries that we feel provide the greatest investment opportunities.
It is our belief that the South African economy needs restructuring. The economy
is still tightly regulated, exchange controls are still in effect, and many
inefficient industries are artificially supported by tariffs or other government
programs. In addition, the equity market is highly concentrated, relatively
illiquid, tightly held and characterized by a complex network of corporate
cross-holdings. In short, our view is that South Africa will take a step or two
backward before it becomes an attractive market for investing. As we expected,
however, the inclusion of this market in the major emerging market index caused
a large temporary flow of investment capital into the country, as fund managers
bid up prices in an attempt to get index-level exposure at any cost. South
Africa's positive return of 3.8% for the quarter put it among the
best-performing emerging markets, and our avoidance of this market contributed
significantly to our underperformance.

In summary, despite the dizzying levels of volatility that we have seen in
the emerging markets over the past several months, we believe that these markets
remain an extremely attractive long-term investment. While the economic
fundamentals have changed in certain markets -- most notably in Mexico -- much
of the selling pressure that has driven markets down has borne little
relationship to economic reality. We believe that, over the medium to long term,
the emerging equity markets will continue to outperform the developed markets by
a substantial margin throughout the 1990s. This projection is based on both
macroeconomic and capital markets factors. We expect the growth rate of
developing economies to continue to outpace that of the developed countries, and
believe that high economic growth has and will continue to correlate with
relatively high equity market returns.

Despite a preponderance of negative news in the past several months, we
believe that investment opportunities for the remainder of 1995 are as
attractive as they have been for some time. We encourage investors to maintain a
long-term perspective, as we do. It has been our observation that markets driven
down by excessive pessimism (even panic) are the markets that often present the
most compelling values.

8
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
PORTFOLIO MANAGER'S LETTER-- (CONTINUED)
FEBRUARY 28, 1995

ORGANIZATIONAL DEVELOPMENTS

Sincerely yours,

BEA International Equities Team

Emilio Bassini, Managing Director
Piers Playfair, Managing Director
Steven D. Bleiberg, Vice President
Steven Swift, Managing Director

9
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
PORTFOLIO MANAGER'S LETTER-- (CONTINUED)
FEBRUARY 28, 1995

BEA EMERGING MARKETS EQUITY PORTFOLIO

COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN THE BEA EMERGING MARKETS
EQUITY PORTFOLIO AND THE MORGAN
STANLEY COMPOSITE INDEX-FREE EMERGING MARKETS FROM INCEPTION 2/1/93 AND AT EACH
QUARTER END.

<TABLE>
<S> <C>
AVERAGE ANNUAL TOTAL RETURN
One Year (33.90)%
From Inception 5.50%
</TABLE>

EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC

Note: Past performance is not predictive of future performance.

10
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
PORTFOLIO MANAGER'S LETTER--(CONTINUED)
FEBRUARY 28, 1995
BEA U.S. CORE FIXED INCOME PORTFOLIO
April 18, 1995

Dear Shareholder:

We are pleased to report on the performance of the BEA U.S. Core Fixed
Income Portfolio for the six months ended February 28, 1995. The net asset value
(NAV) of the Portfolio as of February 28, 1995 was $14.57, compared to an NAV of
$14.77 at August 31, 1994. As a result, the Portfolio's total return (assuming
reinvestment of dividends of $.4615 per share) for the period increased 1.87%.
In comparison, the Lehman Brothers Aggregate Index gained 3.26% during the same
period. Since the inception of the Portfolio on April 1, 1994, its total return
(assuming reinvestment of dividends) has increased 2.04% versus 5.00% for the
index during the same period.

MARKET COMMENTARY

The strong performance of the U.S. bond market during the first quarter has
reinforced our view that the fixed income market environment fundamentally
changed late in 1994. As we discussed in our last report to you, sentiment in
the bond market throughout most of 1994 was characterized by persistent concerns
about U.S. inflation. Despite five short-term interest rate hikes, totaling
1.75%, from February through August, investors remained unpersuaded that he
Federal Reserve and the Clinton Administration possessed either the will or the
capacity effectively to resist inflationary pressures. With each tightening,
therefore, the bond market responded bearishly, ratcheting up long-term interest
rates in tandem with rates at the short end of the yield curve. Volatility in
the foreign exchange market exacerbated the situation, as traders sold U.S.
dollars on their inflation fears, forcing the U.S. and European central banks to
intervene repeatedly in the market to shore up the dollar.

The effect of the Fed's sixth rate hike of 1994, in mid-November, was quite
different, and we believe that it marked a significant change in investor
sentiment. When short-term rates were increased by 3/4 of a point, the largest
single increase since 1981, the capital markets finally reacted as the Fed had
hoped. Short maturity bonds sold off as one would expect. More importantly,
however, longer-term bonds rallied, with the yield on the 30-year bond reverting
to below the 8% level for the first time in several months.

During the first quarter of 1995, this rally continued virtually without
interruption. The Federal Reserve's seventh short-term rate hike in this
year-long cycle came on the first of February. While long-term rates crept up by
a few basis points in the immediate aftermath of the Fed's announcement, the
market's recovery was nearly instantaneous. Within a few days, 30-year rates had
returned to the 7.7% level that they had reached in late January, and yields
then began to move even lower. By quarter-end, U.S. bonds had traded up
significantly, and the yield of the benchmark 30-year Treasury bond had fallen
by nearly 30 additional basis points. At the same time, shorter-term securities
experienced an even more powerful rally. At the time of writing, yields from one
to five years out are all a full point or more below year-end levels. The yield
curve, which earlier in the year was almost perfectly flat from 2 years to 30
years out, thus steepened significantly during February and March, with the
spread between short and long-term instruments expanding to approximately 80
basis points.

The improving tone of the U.S. Bond market appears to be a signal of
increasing investor confidence that inflation will be kept under control, an
impression reinforced by recent PPI and CPI statistics. Economic growth in the
U.S. appears to be slowing, which is generally regarded as good news for the
bond market. What is striking, in this case, is that this is occurring in an
environment where the U.S. stock market is rallying simultaneously -- in the
first quarter, it has been the best equity market anywhere in the world (with
the sole exception of Turkey). This suggests that investors are now buying into
arguments that the U.S. economy will be managed into a "soft landing" -- a
prolonged period of slow and steady growth, avoiding the twin pitfalls of
inflation and recession.

Global bonds (in the developed world, at least) tended to follow the U.S.
market upward during the quarter. As we saw repeatedly during 1994, markets were
characterized by a general flight to quality, a strong flow of assets out of
countries and securities that appear to be riskier (and thus bear higher yields)
into what are perceived to be more secure assets. In Europe, for instance, we
saw a pronounced

11
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
PORTFOLIO MANAGER'S LETTER-- (CONTINUED)
FEBRUARY 28, 1995
decline in the continent's weaker markets, particularly Italy, Spain and Sweden.
In the major markets, however, returns were relatively strong. At quarter-end,
investors were taken by surprise as the German central bank announced a
half-point reduction in two key short-term interest rates in an attempt to rein
in the dramatically rallying Deutschemark.

The movement in the value of the U.S. dollar against other major currencies
has been striking. Since the beginning of the year, only a handful of currencies
have weakened against the U.S. dollar -- and with the exception of the Italian
lira and Australian dollar all of those were emerging market currencies. The
Yen, the Swiss franc, and the currencies of the Deutschemark bloc have all
strengthened by between 11% and 17% against the U.S. unit so far this year. As
you know, the cycle of U.S. dollar weakness has been longer and deeper than
virtually anyone anticipated. It was only the middle of last year, after all,
that the dollar first slid below the 100 yen level, a barrier that at the time
appeared to have a great psychological significance for the foreign exchange
market.

The wild volatility of the currency market is, we believe, a product more of
speculative trading than of economic fundamentals or world trade flows. So
far--to a certain extent, at least--investors seem to agree with this view. Most
striking has been the continued optimism of the U.S. bond and equity markets.
Some analysts have suggested that the collapsing dollar will make the U.S.
capital markets unattractive to the global pool of investment capital, and that
capital flows into the new "safe harbor" currencies of Germany and Japan will
cause the current U.S. "bubble" to burst. This has not occurred, and we do not
in fact anticipate that it will anytime soon. We believe that the strength of
the U.S. markets thus far in 1995 is largely a result of growing investor
confidence that the Federal Reserve's year-long tightening cycle is at or near
its end. So far, at least, it appears that the Fed is not going to be drawn into
supporting the dollar through interest rate policy, a practice that would risk
driving the U.S. economy into recession.

The ongoing economic crisis in Mexico continued to roil the emerging debt
markets during the first quarter. Throughout this crisis, emerging market debt
has displayed significantly higher levels of volatility than in a more normal
environment, and the market has been characterized by a strong preponderance of
sellers over buyers.

During the second half of March, however, we began to see indications that
the market may be turning. The rally, which carried right through to the end of
the month, was largely based upon a series of positive developments in Latin
America, all of which occurred on or around March 10. Together, these events
have done much to calm the crisis of confidence that has dominated Latin
American markets for the past three months. First, in the wake of the
finalization of the $52 billion rescue package by the U.S. and other
international lenders, Mexico announced more details of a new plan for austerity
and economic restructuring. The goal of this program is for Mexico to begin
consuming less and exporting more, so that the economy can live within its means
and reverse the long negative trend in its current account balance. While we
remain concerned that the floating peso will make economic stability extremely
difficult to achieve in the short run, the program appears generally
well-conceived, and the market has so far viewed it in a positive light.

At around the same time, the Argentine and Brazilian governments both took
steps to manage the impact of the Mexican situation on their economies. Both of
these countries--and particularly Argentina--have been vulnerable to speculation
that they could follow Mexico into a downward spiral of devaluation and
potential default. We did not believe that this was likely to occur, and events
in March have bolstered our confidence further. Since the beginning of the
Mexican crisis, the Argentines have taken steps to further dollarize their
economy, restructure the ailing banking system, raise taxes and cut government
spending. Most recently, they successfully concluded arrangements with the
International Monetary Fund and other multilateral organizations for an
additional $5 billion in financing, ensuring that sufficient reserves will be
available to maintain support of the peso. Brazil, meanwhile, announced a
controlled and limited devaluation of the real, along with a series of measures
designed to support the currency within its new trading bonds.

PORTFOLIO REVIEW

The Fund's position in high-grade securities is approximately in line with
that of the market. This reflects a generally defensive posture in light of the
dramatic flight to quality and liquidity that has dominated the market for the
past year or so.

12
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
PORTFOLIO MANAGER'S LETTER-- (CONTINUED)
FEBRUARY 28, 1995

We currently hold a position of approximately 34.8% in mortgage-backed
securities, including an overweight position in 7-year balloon mortgages. We
purchased these securities late in 1994, when the curve was quite steep at the
short end and dramatically flatter when one moves out longer than three years.
Borrowers were therefore not well compensated for taking on the interest rate
risk inherent in balloon mortgages offering interest rates barely below that of
a 30-year fixed-rate loan. A lack of borrowers for this type of mortgage
translates into a shortage of this sort of mortgage-backed security. We
anticipated that investor demand would soon exceed supply, resulting in price
appreciation for these securities. This began to occur during the first quarter,
and this position provided a modest enhancement to the Portfolio's returns.

We are currently underweight in traditional investment grade corporate
bonds, but have a significant position in non-traditional (outside the index)
investment grade ideas. These include a long-standing position in perpetual
floating rate notes issued in U.S. dollars by major European banks. While we
continue to believe that these securities will be long-term outperformers, they
tend to underperform during periods when liquidity is leaving the market. This
occurred during much of 1994, and these holdings continued to contribute modest
underperformance during the first quarter (although they have begun to recover
in early April). We also continue to pursue a municipal bond arbitrage strategy,
designed to benefit from the dramatic underpricing we perceived in this sector
in early 1994. While the technicals did not improve in 1994 as we had expected,
this trade bore fruit during the first quarter of this year, when municipal
bonds outperformed Treasuries by a significant margin. At current levels, we are
now looking to unwind this trade over the next several months. We also were able
to add value during the quarter through opportunistic trading in high-grade
airline bonds, a sector in which we continue to see value.
In the below-investment grade sectors, we have a mildly defensive stance in
U.S. high yield bonds. This sector has had a spectacular run of outperformance
over the past three to four years, and we have concerns that a turn in the
market may be approaching. We therefore have focused largely on higher quality
issuers within the high-yield sector.
The emerging market debt sector, meanwhile, accounts for virtually all of
the Portfolio's underperformance during the quarter. While the events of the
past few months have been jarring for investors in emerging market debt, it is
important to keep several facts in mind. The severe price depreciation that has
affected this entire sector has been largely technical in nature. While the
economic fundamentals have indeed changed significantly in Mexico, the losses in
other markets (in both Latin American and other regions) have been driven by
strong flows of speculative capital out of the market into higher quality
investments. At today's prices, many Brady bonds, as a result, are valued at
only a very small multiple of the value of their U.S. Treasury collateral, which
essentially means that the market is pricing in a default risk that is well
beyond the actual danger of default. By virtually any standard, emerging market
debt instruments are valued very attractively at their current levels.
In summary, looking forward we continue to believe that emerging market debt
and perpetual floating rate notes represent compelling value, and we will
maintain our positions in those areas. Our current weighting in the Government
and Agency sectors is relatively high, and this reflects our desire to maintain
"dry powder" for use should we see weakness in the corporate bond market.
Strategies relating to changes in the shape of the yield curve will continue to
be modest due to the fact that the yield curve is currently consistent with its
historical shape.

ORGANIZATIONAL DEVELOPMENTS

During the first quarter of 1995, there have been several developments at
BEA, on which we would like to bring you up to date. BEA recently announced that
our firm will be integrating the U.S. operations of CS First Boston Investment
Management, a move that will significantly expand the size and scope of our
firm's fixed income management activities. CSFB's recognized strength in high
yield bond management will complement and enhance BEA's existing fixed income
capabilities. The fact that our firms have very similar investment styles and
philosophies will help make the transition a seamless one, and ensure absolute
stability and continuity in the management of our clients' portfolios. A total
of five fixed income professionals are joining BEA from CSFB. The addition of
these highly skilled people will allow us to significantly broaden both the
scope and the depth of our fixed income investment management activities, and
will further BEA's development as a major global asset manager.

13
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
PORTFOLIO MANAGER'S LETTER-- (CONTINUED)
FEBRUARY 28, 1995

As part of this change, Bob Moore, who has been Managing Director of the
Fixed Income Group, has been appointed Head of Fixed Income, filling the
position formerly held by Mark Arnold, who intends to consider other options; a
choice we understand and respect. Mark remains a consultant to BEA, advising on
future directions and helping to ensure a smooth transition, until later in the
year. As you may know, Bob has worked closely with Mark for the past eight years
and is intimately familiar with our product range and investment strategies.
Under Bob's stewardship, the fixed income team will continue to pursue the
investment approach developed at BEA over the past ten years.

Sincerely yours,

BEA Fixed Income Management Team

Robert Moore, Executive Director
Gregg Dillberto, Managing Director
Mark Silverstein, Senior Vice President
Mark Arnold, Special Consultant

BEA U.S. CORE FIXED INCOME PORTFOLIO

COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN THE BEA U.S. CORE FIXED
INCOME PORTFOLIO AND THE LEHMAN
BROTHERS AGGREGATE INDEX FROM INCEPTION 4/1/94 AND AT EACH QUARTER END.

<TABLE>
<S> <C>
AVERAGE ANNUAL TOTAL RETURN
From Inception 2.04%
</TABLE>

EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC

<TABLE>
<CAPTION>
BEA US CORE LEHMAN BROTHERS
<S> <C> <C>
4/1/94 10000 10000
5/31/94 $ 9,913 $ 9,999
8/31/94 10,017 10,188
11/30/94 9,812 10,007
2/28/95 10,204 10,520
</TABLE>

Note: Past performance is not predictive of future performance.

14
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
PORTFOLIO MANAGER'S LETTER--(CONTINUED)
FEBRUARY 28, 1995
BEA GLOBAL FIXED INCOME PORTFOLIO

April 18, 1995

Dear Shareholder:

We are pleased to report on the performance of the BEA Global Fixed Income
Portfolio for the six months ended February 28, 1995. The net asset value (NAV)
of the Portfolio as of February 28, 1995 was $14.99, compared to an NAV of
$15.00 at August 31, 1994. As a result, the Portfolio's total return (assuming
reinvestment of dividends of $.4082 per share) for the period increased 2.72%.
In comparison, the Unhedged JPM Global Government Bond Index gained 5.65% during
the same period. Since the inception of the Portfolio on June 28, 1994, its
total return (assuming reinvestment of dividends) has increased 2.72% versus
6.59% for the index during the same period.

MARKET COMMENTARY

Global bonds (in the developed world, at least) tended to follow the U.S.
market upward during the quarter. The strong performance of the U.S. bond market
during the first quarter has reinforced our view that the fixed income market
environment fundamentally changed late in 1994. During the first quarter of
1995, the bond rally that began in mid-November of last year continued virtually
without interruption. The Federal Reserve's seventh short-term rate hike in this
year-long cycle came on the first of February. While long rates crept up by a
few basis points in the immediate aftermath of the Fed's announcement, the
market's recovery was nearly instantaneous. Within a few days, 30-year rates had
returned to the 7.7% level that they had reached in late January, and yields
then began to move even lower. By quarter-end, U.S. bonds had traded up
significantly, and the yield of the benchmark 30-year Treasury bond had fallen
by nearly 30 additional basis points. At the same time, shorter-term securities
experienced an even more powerful rally. At the time of writing, yields from one
to five years out are all a full point or more below year-end levels. The U.S.
yield curve, which earlier in the year was almost perfectly flat from 2 years to
30 years out, thus steepened significantly during February and March, with the
spread between short and long-term instruments expanding to approximately 80
basis points.

The improving tone of the U.S. bond market appears to be a signal of
increasing investor confidence that inflation will be kept under control, an
impression reinforced by recent PPI and CPI statistics. Economic growth in the
U.S. appears to be slowing, which is generally regarded as good news for the
bond market. What is striking, in this case, is that this is occurring in an
environment where the U.S. stock market is rallying simultaneously -- in the
first quarter, it has been the best equity market anywhere in the world (with
the sole exception of Turkey). This suggests that investors are now buying into
arguments that the U.S. economy will be managed into a "soft landing" -- a
prolonged period of slow and steady growth, avoiding the twin pitfalls of
inflation and recession.

In the global markets, as we saw repeatedly during 1994, markets were
characterized by a general flight to quality, a strong flow of assets out of
countries and securities that appear to be riskier (and thus bear higher yields)
into what are perceived to be more secure assets. In Europe, for instance, we
saw a pronounced decline in the continent's weaker markets, particularly Italy,
Spain and Sweden. We anticipate that the expanded spreads between the higher and
lower quality markets in Europe will begin to narrow to more reasonable levels,
as the liquidity crunch brought on by the Mexican crisis begins to ease. In the
major European markets, meanwhile, returns were relatively strong, following on
the strength of the U.S. market. Canadian bonds were also strong during the
quarter, buoyed by the government's submission of a positive budget. The
Canadian dollar rallied in response, and yield spreads between Canadian and U.S.
bonds narrowed.

At quarter-end, investors were taken by surprise as the German central bank
announced a half-point reduction in two key short-term interest rates in an
attempt to rein in the dramatically rallying Deutschemark. The movement in the
value of the U.S. dollar against other major currencies has been striking. Since
the beginning of the year, only a handful of currencies have weakened against
the U.S. dollar -- and with the exception of the Italian lira and Australian
dollar all of those were emerging market currencies. The Yen, the Swiss franc,
and

15
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
PORTFOLIO MANAGER'S LETTER-- (CONTINUED)
FEBRUARY 28, 1995
the currencies of the Deutschemark bloc have all strengthened by between 11% and
17% against the U.S. unit so far this year. As you know, the cycle of U.S.
dollar weakness has been longer and deeper than virtually anyone anticipated. It
was only the middle of last year, after all, that the dollar first slid below
the 100 yen level, a barrier that at the time appeared to have a great
psychological significance for the foreign exchange market. It is our view that
at present levels the yen is dramatically overvalued vis-a-vis the dollar.

The wild volatility of the currency market is, we believe, a product more of
speculative trading than of economic fundamentals or world trade flows. So far
- -- to a certain extent, at least -- investors seem to agree with this view. Most
striking has been the continued optimism of the U.S. bond and equity markets.
Some analysts have suggested that the collapsing dollar will make the U.S.
capital markets unattractive to the global pool of investment capital, and that
capital flows into the new "safe harbor" currencies of Germany and Japan will
cause the current U.S. "bubble" to burst. This has not occurred, and we do not
in fact anticipate that it will anytime soon. We believe that the strength of
the U.S. markets thus far in 1995 is largely a result of growing investor
confidence that the Federal Reserve's year-long tightening cycle is at or near
its end. So far, at least, it appears that the Fed is not going to be drawn into
supporting the dollar through interest rate policy, a practice that would risk
driving the U.S. economy into recession.

Meanwhile, the ongoing economic crisis in Mexico continued to roil the
emerging debt markets during the first quarter. Throughout this crisis, emerging
market debt has displayed significantly higher levels of volatility than in a
more normal environment, and the market has been characterized by a strong
preponderance of sellers over buyers.

During the second half of March, however, we began to see indications that
the market may be turning. The rally, which carried right through to the end of
the month, was largely based upon a series of positive developments in Latin
America, all of which occurred on or around March 10th. Together, these events
have done much to calm the crisis of confidence that has dominated Latin
American markets for the past three months. First, in the wake of the
finalization of the $52 billion rescue package by the U.S. and other
international lenders, Mexico announced more details of a new plan for austerity
and economic restructuring. The goal of this program is for Mexico to begin
consuming less and exporting more, so that the economy can live within its means
and reverse the long negative trend in its current account balance. While we
remain concerned that the floating peso will make economic stability extremely
difficult to achieve in the short run, the program appears generally
well-conceived, and the market has so far viewed it in a positive light.

At around the same time, the Argentine and Brazilian governments both took
steps to manage the impact of the Mexican situation on their economies. Both of
these countries -- and particularly Argentina -- have been vulnerable to
speculation that they could follow Mexico into a downward spiral of devaluation
and potential default. We did not believe that this was likely to occur, and
events in March have bolstered our confidence further. Since the beginning of
the Mexican crisis, the Argentines have taken steps to further dollarize their
economy, restructure the ailing banking system, raise taxes and cut government
spending. Most recently, they successfully concluded arrangements with the
International Monetary Fund and other multilateral organizations for an
additional $5 billion in financing, ensuring that sufficient reserves will be
available to maintain support of the peso. Brazil, meanwhile, announced a
controlled and limited devaluation of the REAL, along with a series of measures
designed to support the currency within its new trading bands.

PERFORMANCE REPORT

The Portfolio's underperformance during the period is attributable almost
entirely to two factors. The first is our underweight position in the yen and
the major European currencies, relative to the U.S. dollar, in the context of
the dramatic currency moves that occurred during the quarter.

The second factor is our overweight position in the emerging debt markets.
While the events of the past few months have been jarring for investors in
emerging market debt, it is important to keep several facts in mind. The severe
price depreciation that has affected this entire sector has been largely
technical in nature. While the economic fundamentals have indeed changed
significantly in Mexico, the losses in other markets (in both Latin American and
other regions) have been driven by strong flows of speculative capital out of
the market

16
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
PORTFOLIO MANAGER'S LETTER-- (CONTINUED)
FEBRUARY 28, 1995
into higher quality investments. At today's prices, many Brady bonds, as a
result, are valued at only a very small multiple of the value of their U.S.
Treasury collateral, which essentially means that the market is pricing in a
default risk that is well beyond the actual danger of default. By virtually any
standard, emerging market debt instruments are valued very attractively at their
current levels.

ORGANIZATIONAL DEVELOPMENTS

Sincerely yours,

BEA Fixed Income Management Team

Robert Moore, Executive Director
Gregg Diliberto, Managing Director
Mark Silverstein, Senior Vice President
Mark Arnold, Special Consultant

17
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
PORTFOLIO MANAGER'S LETTER-- (CONTINUED)
FEBRUARY 28, 1995

BEA GLOBAL FIXED INCOME PORTFOLIO

COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN THE BEA GLOBAL FIXED
INCOME PORTFOLIO AND THE JP MORGAN
GLOBAL GOVERNMENT BOND INDEX (UNHEDGED) FROM INCEPTION 6/28/94, PERIOD ENDED
7/31/94, AND AT EACH QUARTER END.

<TABLE>
<S> <C>
AVERAGE ANNUAL TOTAL RETURN
From Inception 2.72%
</TABLE>

EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC

<TABLE>
<CAPTION>
BEA GLOBAL JP MORGAN
<S> <C> <C>
6/28/94 $ 10,000 $ 10,000
7/31/94 10,027 10,115
8/31/94 10,001 10,089
11/30/94 10,045 10,161
2/28/95 10,274 10,659
</TABLE>

Note: Past performance is not predictive of future performance.

18
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
PORTFOLIO MANAGER'S LETTER--(CONTINUED)
FEBRUARY 28, 1995
BEA STRATEGIC FIXED INCOME PORTFOLIO

April 19, 1995

Dear Shareholder:

We are pleased to report on the performance of the BEA Strategic Fixed
Income Portfolio for the six-months ended February 28, 1995. The net asset value
(NAV) of the Portfolio as of February 28, 1995 was $14.42, compared to an NAV of
$15.94 at August 31, 1994. As a result, the Portfolio's total return (assuming
reinvestment of dividends of $.75 per share) for the period decreased 5.01%. In
comparison, the First Boston High Yield Index gained 3.91% during the same
period. Since the inception of the Portfolio on March 1, 1993, its total return
(assuming reinvestment of dividends) has increased 9.68% versus 16.37% for the
index during the same period.

The strong performance of the U.S. bond market during the first quarter has
reinforced our view that the domestic fixed income market environment
fundamentally changed late in 1994. As we discussed in our last report to you,
sentiment in the bond market throughout most of 1994 was characterized by
persistent concerns about U.S. inflation. Despite five short-term interest rate
hikes, totaling 1.75%, from February through August, investors remained
unpersuaded that the Federal Reserve and the Clinton Administration possessed
either the will or the capacity effectively to resist inflationary pressures.
With each tightening, therefore, the bond market responded bearishly, ratcheting
up long-term interest rates in tandem with rates at the short end of the yield
curve. The effect of the Fed's sixth rate hike of 1994, in mid-November, was
quite different, and we believe that it marked a significant change in investor
sentiment. When short-term rates were increased by 3/4 of a point, the largest
single increase since 1981, the capital markets finally reacted as the Fed had
hoped. Long-term bonds rallied, with the yield on the 30-year bond reverting to
below the 8% level for the first time in several months.

During the first quarter of 1995, this rally continued virtually without
interruption. The Federal Reserve's seventh short-term rate hike in this
year-long cycle came on the first of February. While long rates crept up by a
few basis points in the immediate aftermath of the Fed's announcement, the
market's recovery was nearly instantaneous. Within a few days, 30-year rates had
returned to the 7.7% level that they had reached in late January, and yields
then began to move even lower. By quarter-end, U.S. bonds had traded up
significantly, and the yield of the benchmark 30-year Treasury bond had fallen
by nearly 30 additional basis points. At the same time, shorter-term securities
experienced an even more powerful rally. At the time of writing, yields from one
to five years out are all a full point or more below year-end levels. The yield
curve, which earlier in the year was almost perfectly flat from 2 years to 30
years out, thus steepened significantly during February and March, with the
spread between short and long-term instruments expanding to approximately 80
basis points.

In the context of this buoyant market, the U.S. high-yield sector continued
its strong performance, producing returns for the quarter in line with those of
the broad fixed income indices. In the Fund's domestic portfolio, we have taken
a mildly defensive stance in high yield bonds. This sector has had a spectacular
run of outperformance over the past three to four years, and we have concerns
that a turn in the market may be approaching. We therefore have focused largely
on higher quality issuers within the high-yield sector.

19
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
PORTFOLIO MANAGER'S LETTER-- (CONTINUED)
FEBRUARY 28, 1995

Our significant diversification of the Fund into the emerging market debt
sector, meanwhile, accounts for virtually all of the Portfolio's
underperformance during the quarter. Throughout the Mexican economic crisis,
emerging market debt has displayed significantly higher levels of volatility
than in a more normal environment, and the market has been characterized by a
strong preponderance of sellers over buyers.

At around the same time, the Argentine and Brazilian governments both took
steps to manage the impact of the Mexican situation on their economies. Both of
these countries -- and particularly Argentina -- have been vulnerable to
speculation that they could follow Mexico into a downward spiral of devaluation
and potential default. We did not believe that this is likely to occur, and
events in March have bolstered our confidence further. Since the beginning of
the Mexican crisis, the Argentines have taken steps to further dollarize their
economy, restructure the ailing banking system, raise taxes and cut government
spending. Most recently, they successfully concluded arrangements with the
International Monetary Fund and other multilateral organizations for an
additional $5 billion in financing, ensuring that sufficient reserves will be
available to maintain support of the peso. Brazil, meanwhile, announced a
controlled and limited devaluation of the REAL, along with a series of measures
designed to support the currency within its new trading bands.

While the events of the past few months have been jarring for investors in
emerging market debt, it is important to keep several facts in mind. The severe
price depreciation that has affected this entire sector has been largely
technical in nature. While the economic fundamentals have indeed changed
significantly in Mexico, the losses in other markets (in both Latin American and
other regions) have been driven by strong flows of speculative capital out of
the market into higher quality investments. At today's prices, many Brady bonds,
as a result, are valued at only a very small multiple of the value of their U.S.
Treasury collateral, which essentially means that the market is pricing in a
default risk that is well beyond the actual danger of default. By virtually any
standard, emerging market debt instruments are valued very attractively at their
current levels.

In summary, looking forward we continue to believe that, over the long term,
diversification of the Portfolio's holdings between the domestic high yield and
emerging market debt sectors will have a strongly positive impact upon our
relative returns. Despite a preponderance of negative news in the past several
months, we believe that investment opportunities for the remainder of 1995 are
as attractive as they have been for some time. We encourage investors to
maintain a long-term perspective, as we do. It has been our observation that
markets driven down by excessive pessimism (even panic) are the markets that
often present the most compelling values.

ORGANIZATIONAL DEVELOPMENTS

20
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
PORTFOLIO MANAGER'S LETTER-- (CONTINUED)
FEBRUARY 28, 1995
clients' portfolios. A total of five fixed income professionals are joining BEA
from CSFB. The addition of these highly skilled people will allow us to
significantly broaden both the scope and the depth of our fixed income
investment management activities, and will further BEA's development as a major
global asset manager.

Sincerely yours,

BEA Fixed Income Management Team

Robert Moore, Executive Director
Gregg Diliberto, Managing Director
Mark Silverstein, Senior Vice President
Mark Arnold, Special Consultant

21
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
PORTFOLIO MANAGER'S LETTER-- (CONTINUED)
FEBRUARY 28, 1995

BEA STRATEGIC FIXED INCOME PORTFOLIO

COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN THE BEA STRATEGIC FIXED
INCOME PORTFOLIO AND THE FIRST BOSTON
HIGH YIELD INDEX FROM INCEPTION 3/1/93 AND AT EACH QUARTER END.

<TABLE>
<S> <C>
AVERAGE ANNUAL TOTAL RETURN
One Year (9.88)%
From Inception 4.58%
</TABLE>

EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC

<TABLE>
<CAPTION>
BEA FIRST BOSTON
<S> <C> <C>
3/1/93 $ 10,000 $ 10,000
5/31/93 10,607 10,419
8/31/93 11,294 10,809
11/30/93 11,872 11,209
2/28/94 12,128 11,570
5/31/94 11,484 11,143
8/31/94 11,539 11,201
11/30/94 11,449 11,123
2/28/95 10,932 11,638
</TABLE>

Note: Past performance is not predictive of future performance.

22
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
PORTFOLIO MANAGER'S LETTER--(CONTINUED)
FEBRUARY 28, 1995
BEA MUNICIPAL BOND FUND PORTFOLIO
April 18, 1995

Dear Shareholder:

We are pleased to report on the performance of the BEA Municipal Bond Fund
Portfolio for the six months ended February 28, 1995. The net asset value (NAV)
of the Portfolio as of February 28, 1995 was $15.04, compared to an NAV of
$15.06 at August 31, 1994. As a result, the Portfolio's total return (assuming
reinvestment of dividends and distributions totalling $.4628 per share) for the
period increased 3.11%. In comparison, the Lehman Brothers Municipal Bond Index
gained 2.80% during the same period. Since the inception of the Portfolio on
June 20, 1994, its total return (assuming reinvestment of dividends and
distributions) has increased 3.51% versus 3.55% for the index during the same
period.

The strong performance of the U.S. bond market during the first quarter has
reinforced our view that the fixed income market environment fundamentally
changed late in 1994. As we discussed in our last report to you, sentiment in
the bond market throughout most of 1994 was characterized by persistent concerns
about U.S. inflation. Despite five short-term interest rate hikes, totaling
1.75%, from February through August, investors remained unpersuaded that the
Federal Reserve and the Clinton Administration possessed either the will or the
capacity effectively to resist inflationary pressures. With each tightening,
therefore, the bond market responded bearishly, ratcheting up long-term interest
rates in tandem with rates at the short end of the yield curve. Volatility in
the foreign exchange market exacerbated the situation, as traders sold U.S.
dollars on their inflation fears, forcing the U.S. and European central banks to
intervene repeatedly in the market to shore up the dollar.

The effect of the Fed's sixth rate hike of 1994, in mid-November, was quite
different, and we believe that it marked a significant change in investor
sentiment. When short-term rates were increased by 3/4 of a point, the largest
single increase since 1981, the capital markets finally reacted as the Fed had
hoped. Short maturity bonds were sold off as one would expect. More importantly,
however, longer-term bonds rallied, with the yield on the 30-year bond reverting
to below the 8% level for the first time in several months.

During the first quarter of 1995, this rally continued virtually without
interruption. The Federal Reserve's seventh short-term rate hike in this
year-long cycle came on the first of February. While long rates crept up by a
few basis points in the immediate aftermath of the Fed's announcement, the
market's recovery was nearly instantaneous. Within a few days, 30-year rates had
returned to the 7.7% level that they had reached in late January, and yields
then began to move even lower. By quarter-end, U.S. bonds had traded up
significantly, and the yield of the benchmark 30-year Treasury bond had fallen
by nearly 30 additional basis points. At the same time, shorter-term securities
experienced an even more powerful rally. At the time of writing, yields from one
to five years out are all a full point or more below year-end levels. The yield
curve, which earlier in the year was almost perfectly flat from 2 years to 30
years out, thus steepened significantly during February and March, with the
spread between short and long-term instruments expanding to approximately 80
basis points.

In the context of a very strong recovery in the bond market, municipal bonds
significantly outperformed the broad market indices during the first quarter. In
our view, the municipal bond market was for the past two years driven largely by
technical factors. In 1993, the most important factor was a flood of new issues,
as municipalities sought to take on debt while interest rates were at historic
lows. This led to an excess of supply over demand, and consequently low bond
prices. As rates rose sharply during 1994, however, new issuance dried

23
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
PORTFOLIO MANAGER'S LETTER-- (CONTINUED)
FEBRUARY 28, 1995
up, and the market was driven by mutual fund outflows. In the first quarter of
last year, and less dramatically during the following two quarters, funds were
hit by huge redemptions as investors began to fear rising inflation, and the
result was a substantial selloff of municipal bonds. During the fourth quarter,
the weak performance of municipal bonds was the result of the problems in Orange
County, problems which did not have any significant impact upon the municipal
bond market in general. While the technicals did not improve in 1994 as we had
expected, this sector bore fruit during the first quarter of this year, when
municipal bonds outperformed Treasuries by a significant margin.

We remain optimistic for the prospects of municipal bond investments during
the remainder of 1995. Municipal issues continue to offer yields that compete
favorably with taxable bonds of similar credit quality. Investors continue to
recognize that taxable bonds must pay a total return upwards of 10% in order to
compete with the municipal market at current levels, and those yields are simply
not available from high-quality credits.

ORGANIZATIONAL DEVELOPMENTS

Sincerely yours,

BEA Fixed Income Management Team

Robert Moore, Executive Director
Gregg Diliberto, Managing Director
Mark Silverstein, Senior Vice President
Mark Arnold, Special Consultant

24
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
PORTFOLIO MANAGER'S LETTER-- (CONTINUED)
FEBRUARY 28, 1995

BEA MUNICIPAL BOND FUND PORTFOLIO

COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN THE BEA MUNICIPAL BOND
FUND PORTFOLIO AND THE LEHMAN
BROTHERS MUNICIPAL BONDS INDEX FROM INCEPTION 6/20/94, PERIOD ENDED 7/31/94, AND
AT EACH QUARTER END.

<TABLE>
<S> <C>
AVERAGE ANNUAL TOTAL RETURN
From Inception 3.51%
</TABLE>

EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC

<TABLE>
<CAPTION>
BEA MUNI LEHMAN BROTHERS
<S> <C> <C>
6/20/94 10000 10000
7/31/94 $ 10,040 $ 10,038
8/31/94 10,040 10,073
11/30/94 9,647 9,571
2/28/95 10,351 10,354
</TABLE>

Note: Past performance is not predictive of future performance.

25
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
PORTFOLIO MANAGER'S LETTER--(CONTINUED)
FEBRUARY 28, 1995
BEA U.S. CORE EQUITY PORTFOLIO
April 19, 1995

Dear Shareholder:

We are pleased to report on the performance of the BEA U.S. Core Equity
Portfolio for the six months ended February 28, 1995. The net asset value (NAV)
of the Portfolio as of February 28, 1995, was $15.29 compared to an NAV of
$15.00 at its inception on September 1, 1994. As a result, the Portfolio's total
return (assuming the reinvestment of dividends of $.0825 per share) increased
2.52%. In comparison, the S&P 500 Index gained 3.98% during the same period.

Coming into the new year, we took a relatively optimistic tone in our
assessment of prospects for the U.S. equity market during 1995. Although
economic indicators are by no means unambiguous -- and a consensus is still
profoundly lacking among leading market analysts -- events so far this year have
tended to vindicate our bullish view.

The beginning of February brought another increase in U.S. short-term
interest rates, the seventh such rate hike within twelve months. In fact, the
latest move by the Federal Reserve came just three days short of a year after
the rate increase that began the current tightening cycle. In the course of this
one-year period, short-term rates have moved upwards as dramatically as they
ever have in the memory of most investors. Until the last few months,
longer-term rates were increasing at virtually the same pace: the shape of the
yield curve barely changed, as rates increased across the board. Beginning in
November of last year, however, the curve began to show a flattening trend, with
long-term interest rates beginning to decline while short-term rates continued
their ascent. In the wake of the February rate hike, this trend became even more
pronounced. After an initial upward tick in the days following the Fed's
announcement, long-term rates then began to decline, and this continued for
several weeks. Although the curve has steepened somewhat in the past few weeks,
rates across the entire curve are now significantly lower (by up to a full
point) than they were at year-end.

This suggests an increasing confidence among investors that inflation does
not pose a serious threat to the U.S. economy during 1995, and that the Fed's
tightening policy is nearing the end of its cycle. More importantly, perhaps, it
indicates an increasingly widespread belief in a "soft landing" scenario for the
U.S. economy. After an extended period of strong economic growth, as the U.S.
has experienced of late, the major risks are of inflation, or recession, or a
wicked combination of the two. Federal Reserve policy has clearly been keyed
toward fending off inflationary pressures, but the worry has been that the
dramatic rise in rates would apply too strong a brake to economic growth. It now
appears increasingly likely that the U.S. will enjoy at least several more
months of slower but steady growth, before the positive momentum begins to
decelerate.

The dramatic moves we saw during the quarter in the value of the U.S. dollar
against other major currencies is an issue of greater long-term concern. Since
the beginning of the year, only a handful of currencies have weakened against
the U.S. dollar -- and with the exception of the Italian lira and Australian
dollar all of those were emerging market currencies. The Yen, the Swiss franc,
and the currencies of the Deutschemark bloc all strengthened by between 10% and
16% against the U.S. unit during the quarter. This cycle of U.S. dollar weakness
has been longer and deeper than virtually anyone anticipated. It was only the
middle of last year, after all, that the dollar first slid below the 100 yen
level, a barrier that at the time appeared to have a great psychological
significance for the foreign exchange market. In the first two months of 1995,
the dollar continued to decline against the Yen and Deutschemark, but at a
relatively leisurely pace. Late in February, however, it went into a freefall,
each day hitting new historic lows. The dollar fell from 96 to about 90 yen in
the space of one week, and it hovered just under 90 yen for the next couple of
weeks. Toward the end of March, the market was taken by surprise as the German
central bank announced a half-point reduction in two key short-term interest
rates. Their purpose, it seems clear, was to reduce the attractiveness of the
Deutschemark to investors and shore up the value of the U.S. dollar. While the
dollar did spike briefly in the immediate aftermath of the announcement, within
hours speculation began to focus on the Japanese and U.S. central banks. On the
last

26
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
PORTFOLIO MANAGER'S LETTER-- (CONTINUED)
FEBRUARY 28, 1995
day of the quarter, Japan disappointed investors by failing to follow the German
lead, and indications were that the Federal Reserve was not likely to raise U.S.
rates either. At the close of March, therefore, the U.S. dollar was in collapse
once again, falling to about 80 yen at the time of this writing.

The volatility of the global foreign exchange market is, we believe, a
product more of speculative currency trading than of economic fundamentals or
world trade flows. So far -- to a certain extent, at least -- investors seem to
agree with this view. Most striking has been the continued optimism of the U.S.
equity market. Analysts have been divided in assessing the potential impact of
this magnitude of dollar weakness on the U.S. equity market. Some have suggested
that the collapsing dollar will make the U.S. capital markets in general
unattractive to the global pool of investment capital, and that capital flows
into the new "safe harbor" currencies of Germany and Japan will cause the U.S.
equity "bubble" to burst. This has not occurred, and we do not think it likely
anytime soon. We believe that the strength of the U.S. stock market thus far in
1995 -- which has come as a surprise to many analysts, if not to us -- is
largely a result of growing investor confidence that the Federal Reserve's
year-long tightening cycle is at or near its end.

This helps to explain the fact that the U.S. has been the best-performing
equity market in the world thus far in 1995 (with the sole exception of Turkey).
And around the middle of February (depending upon which market index you look
at), U.S. stocks finally reached and exceeded the record highs they had hit just
before the Fed let the ax fall last February 4th. A week or so later, the Dow
Jones Average finally broke past the 4,000 mark.

In the context of this strong up market, the Fund's underperformance of our
benchmark this quarter is largely attributable to our position in medium-size
and smaller capitalization companies, which have performed less well in a price
sense than the S&P 500. (It is worth noting that the Russell 2000, an index of
smaller companies, returned only 4.6% for the quarter.) We should note, however,
that the current weak dollar environment -- for as long as it lasts -- is likely
to be good news for many of the companies in which the Fund has invested. For
some time, we have argued that one of the key areas for earnings growth in the
U.S. market will be companies that concentrate upon expanding their
international exports. The Fund has therefore focused upon several manufacturers
of consumer non-durables, companies that have seen substantial export growth.
Cheap dollars make for cheap (but profitable) exports.

We continue to believe that the approach we take in the management of the
Fund will enable us to outperform the broad market indices. We combine a
top-down focus, on one or two social or macroeconomic themes that we believe
will be driving forces in the economy, with a consistent, and relatively simple,
bottom-up stock selection discipline. Unlike many other managers, we look beyond
a company's accounting statements -- which tend to conceal as much as they
reveal -- in seeking to assess the true value of the total enterprise, and its
quality as a producer of cash flow. In analyzing companies, we look well below
the surface.

As always, we would be pleased to respond to any questions you may have
about the Fund or about the capital markets in general.

Sincerely yours,

BEA Domestic Equity Management Team

William W. Priest, Jr., Chief Executive Officer & Managing Director
John D. Hurford, Managing Director
Albert L. Zesiger, Managing Director
Todd M. Rice, Vice President

27
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
PORTFOLIO MANAGER'S LETTER-- (CONTINUED)
FEBRUARY 28, 1995

BEA U.S. CORE EQUITY PORTFOLIO

COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN THE BEA U.S. CORE EQUITY
PORTFOLIO AND THE S&P 500
WEIGHTED YIELD AVERAGE INDEX FROM INCEPTION 9/1/94 AND AT EACH QUARTER END.

<TABLE>
<S> <C>
AVERAGE ANNUAL TOTAL RETURN
From Inception 2.52%
</TABLE>

EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC

<TABLE>
<CAPTION>
BEA US CORE EQUITY S&P 500
<S> <C> <C>
9/1/94 $ 10,000 $ 10,000
11/30/94 9,553 9,615
2/28/95 10,252 10,398
</TABLE>

Note: Past performance is not predictive of future performance.

28
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
BEA INTERNATIONAL EQUITY PORTFOLIO
STATEMENT OF NET ASSETS
FEBRUARY 28, 1995
(UNAUDITED)
<TABLE>
<CAPTION>
NUMBER
OF SHARES VALUE
----------- ------------
<S> <C> <C>
COMMON STOCK, WARRANTS AND RIGHTS -- 98.3%
ARGENTINA -- 1.3%
Bagley Y Cia Limited....................... 1,710 $ 3,851
Banco Frances del Rio de la Plata.......... 210,116 808,906
Buenos Aires Embotelladora Sponsored ADR... 41,000 1,076,250
Quilmes Industrial ADR, S.A................ 119,040 2,035,587
Sodigas del Sur, S.A.+..................... 55 742,112
Sodigas Pampeana, S.A.+.................... 55 841,061
Telecom Argentina B........................ 299,520 1,033,325
Telefonica de Argentina Sponsored ADR...... 53,470 995,879
Yacimientos Petroliferos Fiscades ADR,
S.A...................................... 61,500 1,168,500
------------
8,705,471
------------
AUSTRALIA -- 0.9%
News Corp. Limited......................... 45,050 200,615
News Corp. Limited ADR..................... 109,600 1,986,500
News Corp. Limited PFD..................... 22,525 89,328
News Corp. Limited PFD ADR................. 54,800 883,650
Western Mining Corp. Holdings Limited...... 609,337 3,266,966
------------
6,427,059
------------
BRAZIL -- 5.3%
Banco Itau PN, S.A.**...................... 8,767,000 2,370,852
Bradesco Banco PN, S.A..................... 816,389,000 6,412,085
Centrais Eletricas Brasileiras ON.......... 9,923,151 2,240,147
Centrais Eletricas Brasileiras PN B
Registered............................... 2,037,060 447,866
Cia Cervejaria Brahma PN Warrants Due
1996**................................... 369,916 34,360
Cia Energetica de Minas Gerais ADR**....... 1,700 33,779
Cia Energetica de Minas Gerais PN.......... 44,521,955 3,585,836
Cia Paulista de Forca E Luz ON**........... 44,202,260 2,208,814
Cia Siderurgica Nacional ADR, S.A.**....... 1,400 36,218
Cia Siderurgica Nacional ON, S.A.**........ 66,649,000 1,724,019

<CAPTION>
NUMBER
OF SHARES VALUE
----------- ------------
<S> <C> <C>
BRAZIL -- (CONTINUED)
Cia Tecidos Norte de Minas PN.............. 10,031,000 $ 2,606,527
Lojas Americanas PN Nonvoting.............. 119,858,786 2,536,694
Multibras Eletrodo PN, S.A................. 2,515,000 2,720,517
Petroleo Brasileiro PN, S.A................ 19,235,733 1,956,594
Telecomunicacoes Brasileiras ON, S.A....... 1,500,000 35,979
Telecomunicacoes Brasileiras PN, S.A....... 44,321,306 1,308,013
Telecomunicacoes Brasileiras Sponsored ADR,
S.A...................................... 97,931 2,839,999
Telecomunicacoes Brasileiras Sponsored 144A
ADR, S.A.**.............................. 1,561 45,269
Usinas Siderurgica Minas Gerais 144A
ADR**.................................... 209,300 2,982,525
Utilidades Domesticas Continental PN
Registered............................... 4,384,023 118,557
------------
36,244,650
------------
CANADA -- 0.9%
Magna International, Inc. Class A.......... 120,000 4,620,000
Petersburg Long Distance Inc**............. 228,800 1,315,600
------------
5,935,600
------------
CHILE -- 1.7%
Chilectra S.A., Sponsored 144A ADR......... 61,750 2,863,348
Compania de Telefonos de Chile Sponsored
ADR, S.A................................. 81,470 4,969,670
Empresa Nacional de Electricidad ADR,
S.A...................................... 155,000 3,526,250
Madeco Sponsored ADR, S.A.................. 100 2,375
------------
11,361,643
------------
DENMARK -- 1.1%
Tele Danmark A/S ADS**..................... 202,700 5,092,838
Unidanmark A/S Ordinary 144A**............. 66,690 2,667,600
------------
7,760,438
------------
FINLAND -- 0.3%
Nokia Corp. PFD Free....................... 13,889 2,080,714
------------
</TABLE>

See Accompanying Notes to Financial Statements.

29
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
BEA INTERNATIONAL EQUITY PORTFOLIO
STATEMENT OF NET ASSETS (CONTINUED)
FEBRUARY 28, 1995
(UNAUDITED)
<TABLE>
<CAPTION>
NUMBER
OF SHARES VALUE
----------- ------------
FRANCE -- 5.7%
<S> <C> <C>
Banque Nationale de Paris Ordinary......... 90,087 $ 3,996,644
Carrefour Super Marche..................... 19,403 7,926,928
EBF S.A.................................... 26,464 4,856,206
Groupe Danone.............................. 3 433
Legrand Ordinary........................... 4,439 5,635,314
Michelin Class B........................... 94,365 3,774,232
Pechiney CI................................ 60,285 4,055,835
Peugeot S.A. Ordinary**.................... 32,665 4,458,951
Technip S.A................................ 15,025 761,798
Valeo S.A.................................. 78,235 3,745,455
------------
39,211,796
------------
GERMANY -- 5.2%
Deutsche Bank AG........................... 10,381 5,125,320
Hoechst AG................................. 24,095 5,360,323
Mannesmann AG.............................. 14,503 4,236,552
Schering AG................................ 10,414 7,996,477
Veba AG.................................... 17,180 6,224,552
Volkswagen AG.............................. 23,970 6,554,618
------------
35,497,842
------------
HONG KONG -- 5.0%
Champion Technology Holdings............... 7,092,328 1,293,517
Cheung Kong Holdings Limited............... 1,704,300 7,429,170
China Light and Power Company Limited...... 1,032,000 5,032,518
Guoco Bank Limited......................... 117,000 453,260
HKR International Limited.................. 280,400 244,820
HSBC Holdings PLC.......................... 670,501 7,046,722
Sun Hung Kai Properties.................... 1,082,200 7,279,058
Swire Pacific Limited Class A.............. 822,500 5,771,650
------------
34,550,715
------------
INDIA -- 1.9%
India Liberalisation Fund A 144A**......... 301,632 2,735,802
India Magnum A Restricted**................ 112,300 5,615,000
Indian Opportunity Fund Limited
Ordinary**............................... 349,155 4,521,557
<CAPTION>
NUMBER
OF SHARES VALUE
----------- ------------
<S> <C> <C>
INDIA -- (CONTINUED)
Morgan Stanley India Investment Fund,
Inc**.................................... 1,600 $ 15,800
------------
12,888,159
------------
INDONESIA -- 1.2%
Bank International Indonesia (Foreign)..... 1,166,900 2,975,174
PT Hanjaya Mandala Sampoerna (Foreign)..... 292,500 1,636,733
PT Kabelindo Murni (Foreign)............... 303,000 957,130
PT Matahari Putra Prima Ordinary Shares
(Foreign)**.............................. 1,695,500 2,830,934
------------
8,399,971
------------
ISRAEL -- 1.3%
ECI Telecom Limited........................ 256,020 3,904,305
Geotek Communications, Inc**............... 375,000 2,625,000
Teva Pharmaceutical Industries Limited
ADR...................................... 100,840 2,615,537
------------
9,144,842
------------
ITALY -- 1.9%
Fiat SPA PFD**............................. 1,652,700 4,157,324
Stet Savings di Risp....................... 959,700 2,209,564
Stet Savings Ordinary...................... 638,600 1,776,988
Telecom Italia Non-Convertible di Risp
SPA...................................... 1,573,650 3,056,246
Telecom Italia SPA......................... 846,884 2,043,882
------------
13,244,004
------------
JAPAN -- 32.5%
Aida Engineering Limited................... 90,000 679,544
Aoki Corp.................................. 471,000 2,585,500
Asahi Bank Limited......................... 362,000 4,236,769
Asahi Breweries Limited.................... 488,000 5,054,376
Asahi Denka Kogyo.......................... 128,000 1,032,750
Asics Corp................................. 276,000 929,052
Bank of Tokyo Limited...................... 324,000 4,765,199
Banyu Pharmaceutical Company............... 89,000 919,958
Brother Industries Limited................. 239,000 1,326,815
</TABLE>

See Accompanying Notes to Financial Statements.

30
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
BEA INTERNATIONAL EQUITY PORTFOLIO
STATEMENT OF NET ASSETS (CONTINUED)
FEBRUARY 28, 1995
(UNAUDITED)
<TABLE>
<CAPTION>
NUMBER
OF SHARES VALUE
----------- ------------
JAPAN -- (CONTINUED)
<S> <C> <C>
Chubu Electric Power Company, Inc.......... 337,200 $ 8,207,354
Dai-Ichi Kangyo Bank Limited............... 337,000 6,073,330
Daiwa Securities Company Limited........... 217,000 2,427,343
Fuji Bank Limited.......................... 348,000 7,497,048
Fuji Photo Film Company Limited............ 384,000 8,232,833
Fujita Corp................................ 664,000 3,562,424
Gakken Company Limited**................... 107,000 775,764
Gunze Limited.............................. 530,000 3,359,503
Hanwa Company Limited**.................... 477,000 1,551,300
Haseko Corp................................ 173,000 922,786
Hazama Corp................................ 127,000 618,229
Hitachi Limited............................ 931,000 8,148,058
Industrial Bank of Japan Limited........... 268,000 6,800,621
Kansai Electric Power Company, Inc......... 240,200 5,547,861
Konica Corp................................ 866,000 5,919,834
Koyo Seiko Company Limited................. 165,000 1,418,436
Kumagai-Gumi Limited....................... 632,000 3,135,453
Kureha Chemical Industry Company........... 457,000 2,144,184
Marudai Food Company Limited............... 188,000 1,269,560
Matsushita Electric Industrial Company..... 574,000 8,323,149
Mitsubishi Electric Corp................... 1,371,000 8,917,535
Mitsubishi Estate Company Limited.......... 235,000 2,373,123
Mitsubishi Trust and Banking Corp.......... 170,000 2,412,222
Nippon Denko Company Limited............... 200,000 714,656
Nippon Oil Company......................... 642,000 3,856,655
Nippon Sheet Glass Company Limited......... 495,000 2,537,804
Nisshinbo Industries, Inc.................. 466,000 4,416,261
Nitto Denko Corp........................... 364,000 5,164,992
Nomura Securities Company Limited.......... 267,000 4,618,229
NSK Limited................................ 528,000 3,253,858
Olympus Optical Company.................... 340,000 3,204,557
Onward Kashiyama Company Limited........... 181,000 2,305,852
Renown, Inc**.............................. 856,000 3,360,166
<CAPTION>
NUMBER
OF SHARES VALUE
----------- ------------
<S> <C> <C>
JAPAN -- (CONTINUED)
Ricoh Company.............................. 1,144,000 $ 9,751,548
Sakura Bank Limited........................ 457,000 5,490,627
Sanyo Electric Company Limited............. 1,748,000 9,106,618
Seino Transportation Company Limited....... 103,000 1,621,543
Sekisui Chemical Company Limited........... 393,000 3,907,613
Sekisui House Limited...................... 429,000 4,843,190
Shiseido Company Limited................... 506,000 5,502,848
Sumitomo Bank Limited...................... 346,000 6,307,198
Takeda Chemical Industries Limited......... 614,000 7,122,527
Tohoku Electric Power Company.............. 124,700 3,035,163
Tokai Bank Limited......................... 321,000 3,690,419
Tokio Marine and Fire Insurance Company.... 388,000 4,058,830
Tokyo Style Corp. Limited.................. 93,000 1,338,892
Tokyu Department Store Company Limited..... 243,000 1,429,560
------------
221,807,519
------------
KOREA -- 1.4%
Korea Fund, Inc............................ 491,000 9,574,500
------------
MALAYSIA -- 2.9%
DCB Holdings Berhad........................ 617,000 1,366,007
Genting Berhad............................. 454,000 3,931,583
Malayan Banking Berhad..................... 656,000 4,344,201
Technology Resources Industries Berhad**... 1,076,300 3,669,205
Telekom Malaysia........................... 581,000 4,075,196
United Engineers Malaysia Limited.......... 488,000 2,715,360
------------
20,101,552
------------
MEXICO -- 3.0%
Cementos Apasco, S.A. de C.V............... 274,829 727,963
Cementos Mexicanos A, S.A.................. 225,091 521,502
Cementos Mexicanos B, S.A.................. 316,683 791,044
Cementos Mexicanos CPO, S.A.**............. 89,725 212,091
Cifra A, S.A. de C.V....................... 13,702 13,782
Cifra B, S.A. de C.V....................... 630,460 665,867
Cifra C, S.A. de C.V....................... 528,289 464,080
</TABLE>

See Accompanying Notes to Financial Statements.

31
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
BEA INTERNATIONAL EQUITY PORTFOLIO
STATEMENT OF NET ASSETS (CONTINUED)
FEBRUARY 28, 1995
(UNAUDITED)
<TABLE>
<CAPTION>
NUMBER
OF SHARES VALUE
----------- ------------
MEXICO -- (CONTINUED)
<S> <C> <C>
Coca-Cola Femsa ADR, S.A. de C.V........... 68,800 $ 1,032,000
Corporacion Industrial Sanluis A1, S.A. de
C.V...................................... 55,000 460,561
Corporacion Industrial Sanluis A2, S.A. de
C.V...................................... 111,390 896,349
Fomento Economico Mexicano B, S.A. de
C.V...................................... 656,600 935,641
Grupo Carso A1, S.A. de C.V. **............ 206,280 762,527
Grupo Casa Autrey ADR, S.A. de C.V......... 115,000 1,178,750
Grupo Elektra CPO, S.A. de C.V.**.......... 300,000 746,354
Grupo Embotellador de Mexico Sponsored GDS,
S.A. de C.V.**........................... 16,850 113,738
Grupo Financiero Banamex Accival B, S.A. de
C.V...................................... 94,700 80,967
Grupo Financiero Banamex Accival C, S.A. de
C.V...................................... 317,900 271,801
Grupo Financiero Banamex Accival L, S.A. de
C.V...................................... 11,145 9,379
Grupo Industrial Alfa A, S.A. de C.V....... 264,000 1,920,805
Grupo Modelo C, S.A. de C.V................ 94,000 1,144,074
Grupo Sidek A, S.A. de C.V................. 135,200 133,273
Grupo Sidek B, S.A. de C.V................. 977,025 504,482
Grupo Sidek L, S.A. de C.V.**.............. 12,223 10,328
Grupo Sidek L Sponsored ADR, S.A. de
C.V.**................................... 2,300 7,187
Grupo Situr B, S.A. de C.V................. 775,878 291,361
Grupo Televisa CPO Certificates, S.A. de
C.V...................................... 53,400 434,183
Grupo Televisa GDS, S.A. de C.V............ 57,860 954,690
Kimberly Clark de Mexico A, S.A de C.V..... 239,000 1,855,105
Telefonos de Mexico A, S.A. de C.V......... 221,504 308,954
Telefonos de Mexico L, S.A. de C.V......... 683,071 945,879
Telefonos de Mexico Sponsored ADR, S.A. de
C.V...................................... 62,500 1,726,562
<CAPTION>
NUMBER
OF SHARES VALUE
----------- ------------
<S> <C> <C>
MEXICO -- (CONTINUED)
Telefonos de Mexico Unsponsored ADR, S.A.
de C.V................................... 4,900 $ 6,737
Tolmex B2, S.A. de C.V..................... 106,870 338,616
------------
20,466,632
------------
NETHERLANDS -- 2.6%
Fortis Amev NV CVA......................... 84,131 3,753,458
Koninklijke Pit Naderland NV 144A
Ordinary................................. 160,960 5,693,689
Philips Electronics NV ADR................. 20,500 673,938
Philips Electronics NV Bearer.............. 228,545 7,580,868
------------
17,701,953
------------
PAKISTAN -- 0.0%
Nishat Mills............................... 3,000 3,987
Phillips Electrical Pakistan............... 950 5,759
------------
9,746
------------
PANAMA -- 0.3%
Panamerican Beverages, Inc. Class A........ 82,200 2,003,630
------------
PHILIPPINES -- 0.7%
Philippine Long Distance Telephone Company
Sponsored ADR............................ 79,250 4,685,656
------------
PUERTO RICO -- 0.7%
Cellular Communications of Puerto Rico..... 142,900 4,930,050
------------
SINGAPORE -- 2.5%
Overseas-Chinese Banking Corp. Limited
(Foreign)................................ 366,000 3,613,255
Sembawang Corp. Limited Ordinary Shares.... 460,000 3,239,213
Singapore Press Holdings (Foreign)......... 210,000 3,609,941
United Overseas Bank Limited (Foreign)..... 556,400 5,416,113
Wing Tai Holdings.......................... 573,000 909,838
------------
16,788,360
------------
</TABLE>

See Accompanying Notes to Financial Statements.

32
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
BEA INTERNATIONAL EQUITY PORTFOLIO
STATEMENT OF NET ASSETS (CONTINUED)
FEBRUARY 28, 1995
(UNAUDITED)
<TABLE>
<CAPTION>
NUMBER
OF SHARES VALUE
----------- ------------
SPAIN -- 1.0%
<S> <C> <C>
Empresa Nacional de Electricidad, S.A...... 5,770 $ 251,675
Empresa Nacional de Electricidad Sponsored
ADR, S.A................................. 58,000 2,530,250
Repsol, S.A................................ 4,400 125,074
Repsol Sponsored ADR, S.A.................. 143,100 4,096,238
------------
7,003,237
------------
SWEDEN -- 1.0%
Astra AB Fria A............................ 244,020 6,148,860
Astra AB Fria B............................ 13,000 321,379
Ericsson (LM) Telephone Company Class B
ADR...................................... 500 28,437
------------
6,498,676
------------
SWITZERLAND -- 1.6%
BBC Brown Boveri AG........................ 5,606 4,890,775
Roche Holding AG........................... 1,030 5,711,098
------------
10,601,873
------------
THAILAND -- 3.6%
Advanced Information Services Public
Company Limited (Foreign)................ 204,800 2,706,463
Finance One Public Company Limited
(Foreign)................................ 398,000 2,533,602
Krung Thai Bank Public Company Limited
(Foreign)................................ 2,277,700 7,020,308
Phatra Thanakit Public Company Limited
(Foreign)................................ 375,600 2,754,198
Sahaviriya Steel Industry (Local)**........ 872,100 2,424,452
Telecomasia Corp. Public Company Limited
(Foreign)**.............................. 407,000 1,352,840
Thai Farmers Bank Public Company Limited
(Foreign)................................ 460,100 3,818,719
Thai Military Bank Public Company Limited
(Foreign)................................ 648,500 2,142,506
------------
24,753,088
------------
<CAPTION>
NUMBER
OF SHARES VALUE
----------- ------------
<S> <C> <C>
UNITED KINGDOM -- 10.8%
Airtours PLC............................... 777,120 $ 5,157,714
British Airport Authority PLC.............. 813,950 5,608,441
British Sky Broadcasting Group PLC ADR**... 322,200 7,773,075
De la Rue PLC.............................. 430,350 6,980,346
Flextech PLC**............................. 546,610 3,030,406
HSBC Holdings PLC.......................... 6,203 65,094
India Fund B**............................. 28,233 60,150
International Cabletel, Inc.**............. 148,800 4,761,600
Rentokil Group PLC......................... 948,610 3,350,794
Reuters Holdings PLC Class B............... 303,020 2,128,728
Reuters Holdings PLC Class B ADR........... 112,600 4,771,425
Standard Chartered Bank PLC................ 1,640,769 6,549,424
Vodafone Group PLC......................... 1,374,849 4,115,969
Vodafone Group PLC ADR..................... 137,100 4,181,550
Wassall PLC................................ 848,710 3,468,440
Wessex Water PLC........................... 971,320 4,200,299
WPP Group PLC.............................. 4,068,951 7,025,288
WPP Group PLC ADR.......................... 89,800 303,075
------------
73,531,818
------------
TOTAL COMMON STOCKS, WARRANTS AND RIGHTS
(Cost $731,994,858)..................... 671,911,194
------------
<CAPTION>
PAR
(000)
-----------
<S> <C> <C>
FOREIGN BONDS -- 0.3%
Liberty Life Africa Eurodollar Convertible
144A Bond 6.50% 09/30/04................. $ 1,700 1,666,000
------------
TOTAL FOREIGN BONDS
(Cost $1,700,000)....................... 1,666,000
------------
</TABLE>

See Accompanying Notes to Financial Statements.

33
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
BEA INTERNATIONAL EQUITY PORTFOLIO
STATEMENT OF NET ASSETS (CONCLUDED)
FEBRUARY 28, 1995
(UNAUDITED)
<TABLE>
<CAPTION>
PAR
(000) VALUE
----------- ------------
UNITED STATES TREASURY OBLIGATIONS -- 2.2%
<S> <C> <C>
U.S. Treasury Bills
5.47% 03/09/95........................... $ 6,000 $ 5,992,707
5.49% 03/09/95........................... 5,000 4,993,900
5.51% 04/06/95........................... 1,000 994,490
5.69% 04/27/95........................... 3,000 2,972,867
------------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $14,954,069)...................... 14,953,964
------------
SHORT-TERM INVESTMENT -- 0.1%
BBH Grand Cayman U.S. Dollar Time Deposit
5.00% 03/07/95........................... 572 572,000
------------
TOTAL SHORT-TERM INVESTMENT
(Cost $572,000)................................... 572,000
------------
TOTAL INVESTMENTS AT VALUE -- 100.9%
(Cost $749,220,927*).................................... $689,103,158
LIABILITIES IN EXCESS OF OTHER
ASSETS -- (0.9%)........................................ (5,905,600)
------------
NET ASSETS (applicable to
41,502,849 BEA shares) -- 100.0%........................ $683,197,558
------------
------------
VALUE
------------

NET ASSET VALUE AND OFFERING
PRICE PER SHARE
($683,197,558 DIVIDED BY 41,502,849)................... $16.46
------------
------------
REDEMPTION PRICE PER SHARE
($16.46 x .9900)........................................ $16.30
------------
------------
</TABLE>

* Cost for Federal income tax purposes at February 28, 1995 is $750,595,116.
The gross appreciation (depreciation) on a tax basis is as follows:

<TABLE>
<S> <C>
Gross Appreciation.......... $ 34,123,105
Gross Depreciation.......... (95,615,063)
--------------
Net Depreciation............ $ (61,491,958)
--------------
--------------
</TABLE>

** Non-income producing Securities.
+ Not readily marketable securities.

INVESTMENT ABBREVIATIONS

<TABLE>
<S> <C>
ADR........................... American Depository Receipts
ADS........................... American Depository Shares
GDR........................... Global Depository Receipts
GDS........................... Global Depository Shares
</TABLE>

See Accompanying Notes to Financial Statements.

34
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
INTERNATIONAL EQUITY PORTFOLIO

STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED
FEBRUARY 28, 1995
(UNAUDITED)

<TABLE>
<S> <C>
INVESTMENT INCOME
Dividends.................................. $ 3,713,790
Interest................................... 477,483
Foreign taxes withheld..................... (698,110)
--------------
TOTAL INVESTMENT INCOME.................. 3,493,163
--------------
EXPENSES
Investment advisory fees................... 2,977,557
Custodian fees............................. 615,000
Administration service fee................. 558,292
Administration fee......................... 465,243
Registration fees.......................... 49,600
Audit fees................................. 33,826
Legal fees................................. 21,219
Insurance expense.......................... 10,193
Transfer agent fees........................ 8,825
Miscellaneous fees......................... 8,554
Organization expense....................... 5,274
Printing fees.............................. 4,800
Directors fees............................. 3,534
--------------
4,761,917
Less fees waived........................... (109,484)
--------------
TOTAL EXPENSES........................... 4,652,433
--------------
NET INVESTMENT LOSS.......................... (1,159,270)
--------------
REALIZED AND UNREALIZED LOSS ON INVESTMENTS
AND FOREIGN CURRENCY TRANSACTIONS:
Net realized loss from:
Security transactions.................... (25,814,370)
Foreign exchange transactions............ (564,340)
--------------
(26,378,710)
--------------
Net unrealized appreciation (depreciation) from:
Investments.............................. (117,699,063)
Translation of assets and liabilities in
foreign currencies...................... 57,116
--------------
(117,641,947)
--------------
NET LOSS ON INVESTMENTS AND FOREIGN CURRENCY
TRANSACTIONS................................ (144,020,657)
--------------
NET DECREASE IN NET ASSETS RESULTING FROM
OPERATIONS.................................. $ (145,179,927)
--------------
--------------
</TABLE>

STATEMENTS OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
FOR THE
SIX MONTHS FOR THE
ENDED YEAR ENDED
FEBRUARY 28, AUGUST 31,
1995 1994
------------- -------------
<S> <C> <C>
(UNAUDITED)
Increase (decrease) in net assets:
Operations:
Net investment income (loss)............. $ (1,159,270) $ 1,601,997
Net gain (loss) on investments and
foreign currency........................ (144,020,657) 60,027,767
------------- -------------
Net increase (decrease) in net assets
resulting from operations............... (145,179,927) 61,629,764
------------- -------------
Distributions to shareholders:
Dividends to shareholders from net
investment income:
BEA shares ($.05 per share for 1994)..... -- (806,718)
Distributions to shareholders from net
realized capital gains:
BEA shares ($.66 and $.60, respectively,
per share)................................ (25,928,287) (9,939,092)
------------- -------------
Total distributions to shareholders........ (25,928,287) (10,745,810)
------------- -------------
Net capital share transactions............... 87,115,981 447,902,313
------------- -------------
Total increase (decrease) in net assets...... (83,992,233) 498,786,267
Net Assets:
Beginning of period........................ 767,189,791 268,403,524
------------- -------------
End of period.............................. $683,197,558 $767,189,791
------------- -------------
------------- -------------
</TABLE>

See Accompanying Notes to Financial Statements.

35
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC
BEA EMERGING MARKETS EQUITY PORTFOLIO
STATEMENT OF NET ASSETS
FEBRUARY 28, 1995
(UNAUDITED)
<TABLE>
<CAPTION>
NUMBER
OF SHARES VALUE
----------- ------------
<S> <C> <C>
COMMON STOCK, WARRANTS AND RIGHTS -- 93.3%
ARGENTINA -- 3.0%
Astra Cia Argentina de Petro, S.A.......... 76,380 $ 89,360
Bagley Y Cia Limited....................... 49,240 110,784
Banco Frances del Rio de la Plata.......... 54,730 210,700
Banco Galicia.............................. 27,827 60,382
Buenos Aires Embotelladora Sponsored ADR
Class B.................................. 21,600 567,000
Comercial del Plata........................ 113,950 201,681
Comercial del Plata 144A................... 3,340 59,118
Irsa Inversiones
Represen B**............................. 212,324 409,765
Quilmes Industrial ADR, S.A................ 23,615 403,817
Telecom Argentina B........................ 112,630 388,554
Telefonica de Argentina Sponsored ADR...... 15,532 289,283
Yacimientos Petroliferos Fiscades ADR,
S.A...................................... 24,700 469,300
------------
3,259,744
------------
AUSTRIA -- 0.6%
Fotex A.S.................................. 410,000 659,652
------------
BRAZIL -- 17.7%
Banco do Brasil PN Registered.............. 24,480,000 316,614
Banco Itau PN, S.A.**...................... 1,466,000 396,449
Bradesco Banco PN, S.A..................... 77,448,980 608,300
Centrais Eletricas Brasileiras ON.......... 4,684,781 1,057,587
Centrais Eletricas Brasileiras PN B
Registered............................... 8,151,729 1,792,230
Centrais Eletricas de Santa Catarin PN
B**...................................... 746,000 489,439
Cia Cervejaria Brahma PN................... 1,720,908 522,039
Cia Cervejaria Brahma PN Warrants Due
1996**................................... 182,777 16,978
Cia Energetica de Minas Gerais ADR......... 16,500 327,855

<CAPTION>
NUMBER
OF SHARES VALUE
----------- ------------
<S> <C> <C>
BRAZIL -- (CONTINUED)
Cia Energetica de Minas Gerais PN.......... 2,693,915 $ 216,970
Cia Energetica de Minas Gerais 144A
ADS**.................................... 21,900 435,153
Cia Paulista de Forca E Luz ON**........... 16,189,220 808,985
Cia Siderurgica Nacional ADR, S.A.**....... 5,400 139,698
Cia Siderurgica Nacional ON, S.A.**........ 13,393,700 346,457
Cia Tecidos Norte de Minas PN.............. 2,649,000 688,335
Cia Vale do Rio Doce PN.................... 2,964,500 432,214
Investimentos Itau PN...................... 840,700 395,391
Lojas Americanas PN Nonvoting.............. 36,120,000 764,444
Marco Polo PN B**.......................... 1,044,000 195,175
Moinho Santista Industries Gerais PN**..... 149,200 266,648
Multibras Eletrodo PN, S.A................. 595,000 643,621
Petroleo Brasileiro PN, S.A................ 11,341,666 1,153,636
Petroquimica do Nordeste PN A, S.A......... 784,000 663,695
Refrigeracao Parana PN, S.A................ 280,755,000 623,900
Santista Alimentos, S.A.**................. 679,500 1,278,307
Souza Cruz ON Registered................... 117,600 774,321
Tec Toy Industria de Brinquedos PN
Registered**............................. 203,430,000 153,081
Telecomunicacoes Brasileiras PN, S.A....... 74,237,405 2,190,898
Telecomunicacoes Brasileiras Sponsored ADR,
S.A...................................... 22,602 655,458
Telesp PN.................................. 23,928 2,940
Usinas Siderurgica Minas Gerais PN B....... 332,400,000 476,811
Usinas Siderurgica Minas Gerais 144A
ADR**.................................... 25,900 369,075
------------
19,202,704
------------
</TABLE>

See Accompanying Notes to Financial Statements.

36
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC
BEA EMERGING MARKETS EQUITY PORTFOLIO
STATEMENT OF NET ASSETS (CONTINUED)
FEBRUARY 28, 1995
(UNAUDITED)
<TABLE>
<CAPTION>
NUMBER
OF SHARES VALUE
----------- ------------
CANADA -- 0.5%
<S> <C> <C>
Petersburg Long Distance, Inc.**........... 95,100 $ 546,825
------------
CHILE -- 6.0%
Chilectra S.A., Sponsored 144A ADR......... 28,100 1,302,997
Compania Cervecerias Uni ADR............... 13,800 291,525
Compania de Telefonos de Chile Sponsored
ADR, S.A................................. 34,320 2,093,520
Empresa Nacional de Electricidad ADR,
S.A...................................... 44,500 1,012,375
Enersis ADR, S.A........................... 28,900 671,925
Madeco Sponsored ADR, S.A.................. 10,230 242,962
Maderas Y Sinteticos ADR................... 15,300 260,100
Sociedad Quimica Y Minera Chile ADR........ 19,550 618,269
------------
6,493,673
------------
CHINA -- 0.2%
AES China Generating Company Limited A**... 22,700 201,463
------------
ECUADOR -- 0.7%
Cemento Nacional Ecuador GDR............... 2,260 813,600
------------
GREECE -- 0.3%
Aegek S.A.................................. 16,000 310,613
------------
HONG KONG -- 6.0%
Champion Technology Holdings............... 1,016,000 185,301
Cheung Kong Holdings Limited............... 269,000 1,172,591
China Light and Power Company Limited...... 151,500 738,785
China Overseas Land Warrants Due 1995**.... 15,200 619
Consolidated Electric Power Asia........... 343,600 715,556
<CAPTION>
NUMBER
OF SHARES VALUE
----------- ------------
<S> <C> <C>
HONG KONG -- (CONTINUED)
Consolidated Electric Power Asia 144A**.... 22,550 $ 484,825
HKR International Limited.................. 72,200 63,038
HSBC Holdings PLC.......................... 106,000 1,114,022
Sun Hung Kai Properties.................... 163,000 1,096,365
Swire Pacific Limited Class A.............. 133,500 936,797
------------
6,507,899
------------
INDIA -- 6.1%
Arvind Mills Limited 144A GDS.............. 16,000 64,000
Hindalco 144A GDR.......................... 14,500 387,875
India Liberalisation Fund A 144A**......... 134,163 1,216,858
India Magnum A Restricted**................ 60,000 3,000,000
Indian Opportunity Fund Limited
Ordinary**............................... 100,020 1,295,259
Morgan Stanley India Investment Fund,
Inc.**................................... 69,100 682,363
------------
6,646,355
------------
INDONESIA -- 2.4%
Bank International Indonesia (Foreign)..... 275,000 701,151
Duta Anggada Realty (Foreign).............. 410 282
PT Hanjaya Mandala Sampoerna (Foreign)..... 80,000 447,654
PT Kabelindo Murni (Foreign)............... 109,000 344,314
PT Matahari Putra Prima Ordinary Shares
(Foreign)**.............................. 427,000 712,951
PT Pakuwon Jati (Foreign).................. 722,000 447,992
------------
2,654,344
------------
ISRAEL -- 2.2%
ECI Telecom Limited........................ 47,700 727,425
Elscint Limited ADR**...................... 66,350 132,700
Geotek Communications, Inc.**.............. 128,900 902,300
</TABLE>

See Accompanying Notes to Financial Statements.

37
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC
BEA EMERGING MARKETS EQUITY PORTFOLIO
STATEMENT OF NET ASSETS (CONTINUED)
FEBRUARY 28, 1995
(UNAUDITED)
<TABLE>
<CAPTION>
NUMBER
OF SHARES VALUE
----------- ------------
ISRAEL -- (CONTINUED)
<S> <C> <C>
Tecnomatix Technologies**.................. 29,400 $ 154,350
Teva Pharmaceutical Industries Limited
ADR...................................... 17,830 462,466
------------
2,379,241
------------
KOREA -- 3.0%
Korea Fund, Inc............................ 170,300 3,320,850
------------
MALAYSIA -- 16.3%
Berjaya Group.............................. 1,387,000 1,500,047
DCB Holdings Berhad........................ 318,000 704,036
Genting Berhad............................. 319,000 2,762,500
Magnum Corp................................ 316,500 570,494
Malayan Banking Berhad..................... 560,500 3,711,775
Malaysia International Shipping
(Foreign)................................ 317,333 870,427
Perusahaan Sadur Timah..................... 298,000 683,111
Southern Bank Berhad....................... 99,000 171,466
Southern Bank Berhad
New A**.................................. 54,450 94,733
Technology Resources Industries Berhad**... 910,000 3,102,273
Telekom Malaysia........................... 321,000 2,251,528
Time Engineering........................... 348,000 852,273
United Engineers Malaysia Limited.......... 69,000 383,934
------------
17,658,597
------------
MEXICO -- 9.4%
Cementos Apasco, S.A. de C.V............... 146,000 386,722
Cementos Mexicanos A, S.A.................. 31,758 73,578
Cementos Mexicanos B, S.A.................. 197,228 492,657
Cementos Mexicanos CPO, S.A.**............. 13,500 31,911
Cifra B, S.A. de C.V....................... 27,500 29,044
Cifra C, S.A. de C.V....................... 623,029 547,305
Coca-Cola Femsa ADR, S.A. de C.V........... 42,980 644,700
Corporacion Industrial Sanluis A2, S.A. de
C.V...................................... 123,010 989,854
<CAPTION>
NUMBER
OF SHARES VALUE
----------- ------------
<S> <C> <C>
MEXICO -- (CONTINUED)
Fomento Economico Mexicano B, S.A. de
C.V...................................... 235,300 $ 335,298
Grupo Carso A1, S.A. de C.V.**............. 138,390 511,567
Grupo Casa Autrey ADR, S.A. de C.V......... 36,300 372,075
Grupo Elektra CPO, S.A. de C.V.**.......... 154,000 383,128
Grupo Embotellador de Mexico Sponsored GDS,
S.A. de C.V.**........................... 3,750 25,312
Grupo Financiero Banamex Accival B, S.A. de
C.V...................................... 17,000 14,535
Grupo Financiero Banamex Accival C, S.A. de
C.V...................................... 188,440 161,114
Grupo Financiero Banamex Accival L, S.A. de
C.V...................................... 3,667 3,086
Grupo Financiero Bancrecer B, S.A. de
C.V...................................... 40,000 18,776
Grupo Industrial Alfa A, S.A. de C.V....... 62,000 451,098
Grupo Industrial Bimbo A, S.A. de C.V.**... 51,199 187,544
Grupo Iusacell ADR Series D**.............. 2,628 22,995
Grupo Iusacell ADR Series L**.............. 18,182 193,184
Grupo Modelo C, S.A. de C.V................ 60,000 730,260
Grupo Sidek A, S.A. de C.V................. 35,000 34,501
Grupo Sidek B, S.A. de C.V................. 475,471 245,507
Grupo Sidek L Sponsored ADR, S.A. de
C.V.**................................... 5,400 16,875
Grupo Sidek L, S.A. de C.V.**.............. 9,949 8,406
Grupo Situr B, S.A. de C.V................. 431,514 162,044
Grupo Televisa CPO Certificates, S.A. de
C.V...................................... 33,900 275,633
Grupo Televisa GDS, S.A. de C.V............ 13,410 221,265
</TABLE>

See Accompanying Notes to Financial Statements.

38
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC
BEA EMERGING MARKETS EQUITY PORTFOLIO
STATEMENT OF NET ASSETS (CONTINUED)
FEBRUARY 28, 1995
(UNAUDITED)
<TABLE>
<CAPTION>
NUMBER
OF SHARES VALUE
----------- ------------
MEXICO -- (CONTINUED)
<S> <C> <C>
Kimberly Clark de Mexico A, S.A. de C.V.... 79,000 $ 613,194
Sistema Argos B, S.A. de C.V............... 343,800 142,938
Telefonos de Mexico L, S.A. de C.V......... 204,000 282,488
Telefonos de Mexico Nominative A, S.A...... 66,000 92,057
Telefonos de Mexico Sponsored ADR, S.A. de
C.V...................................... 49,680 1,372,410
Tolmex B2, S.A. de C.V..................... 28,100 89,034
------------
10,162,095
------------
PANAMA -- 0.9%
Panamerican Beverages, Inc. Class A........ 41,500 1,011,563
------------
PHILIPPINES -- 1.1%
Philippine Long Distance Telephone Company
Sponsored ADR............................ 20,400 1,206,150
------------
PORTUGAL -- 1.2%
Modelo Sociedade Gestora de Participacoes
Sociais, S.A............................. 11,100 336,230
Sonae Industria E Investimentos............ 40,850 930,202
------------
1,266,432
------------
PUERTO RICO -- 1.1%
Cellular Communications of Puerto Rico..... 34,300 1,183,350
------------
SINGAPORE -- 1.1%
Overseas-Chinese Banking Corp. Limited
(Foreign)................................ 33,000 325,785
Sembawang Corp. Limited Ordinary Shares.... 52,000 366,172
United Overseas Bank Limited (Foreign)..... 47,000 457,508
------------
1,149,465
------------
<CAPTION>
NUMBER
OF SHARES VALUE
----------- ------------
<S> <C> <C>
THAILAND -- 10.9%
Advanced Information Services Public
Company Limited (Foreign)................ 44,700 $ 590,717
Bangkok Bank Public Company Limited
(Foreign)................................ 82,900 714,770
Bangkok First Investment and Trust Public
Company Limited (Foreign)................ 42,700 533,320
Bangkok First Investment and Trust Public
Company Limited (Local).................. 8,000 83,159
Krung Thai Bank Public Company Limited
(Foreign)................................ 515,300 1,588,253
Land and House Public Company Limited
(Foreign)................................ 31,500 558,421
MDX Company Limited (Foreign).............. 170,400 494,311
Phatra Thanakit Public Company Limited
(Foreign)................................ 275,300 2,018,719
Regional Container Lines (Foreign)......... 69,420 1,029,273
Sahaviriya Steel Industry (Local)**........ 277,300 770,898
Siam Cement Company Limited (Foreign)...... 17,000 1,034,247
Telecomasia Corp. Public Company Limited
(Foreign)**.............................. 56,600 188,135
Thai Farmers Bank Public Company Limited
(Foreign)................................ 221,400 1,837,566
Thai Military Bank Public Company Limited
(Foreign)................................ 119,900 396,124
------------
11,837,913
------------
TURKEY -- 0.0%
Turkiye Garanti Bankasi A.S. 144A ADR**.... 3,750 7,500
------------
UNITED KINGDOM -- 2.6%
India Fund B**............................. 469,738 1,000,767
Mauritius Fund Limited**................... 45,100 653,950
</TABLE>

See Accompanying Notes to Financial Statements.

39
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC
BEA EMERGING MARKETS EQUITY PORTFOLIO
STATEMENT OF NET ASSETS (CONCLUDED)
FEBRUARY 28, 1995
(UNAUDITED)
<TABLE>
<CAPTION>
NUMBER
OF SHARES VALUE
----------- ------------
UNITED KINGDOM -- (CONTINUED)
<S> <C> <C>
Reliance Industries 144A ADR**............. 75,300 $ 1,223,625
------------
2,878,342
------------
TOTAL COMMON STOCKS,
WARRANTS AND RIGHTS
(Cost $129,878,303)....................... 101,358,370
------------
<CAPTION>
PAR
(000)
-----------
<S> <C> <C>
FOREIGN BONDS -- 2.4%
Banco de Columbia Convertible 144A Bond
5.20% 02/01/99........................... $ 1,120 974,400
Liberty Life Africa Eurodollar Convertible
144A Bond 6.50% 09/30/04................. 950 931,000
Liberty Life Africa Eurodollar Reg-S
Convertible Bond 6.50% 09/30/04.......... 200 196,000
Teco Electric & Machine Convertible 144A
Bond 2.75% 04/15/04...................... 570 475,950
------------
TOTAL FOREIGN BONDS (Cost $3,056,741)...... 2,577,350
------------
SHORT-TERM INVESTMENT -- 4.7%
BBH Grand Cayman U.S Dollar Time Deposit
5.00% 03/07/95........................... 5,135 5,135,000
------------

TOTAL SHORT-TERM INVESTMENT
(Cost $5,135,000)....................... 5,135,000
------------
<CAPTION>
VALUE
------------
<S> <C> <C>

TOTAL INVESTMENTS AT VALUE -- 100.4%
(Cost $138,070,044*)....................... $109,070,720

LIABILITIES IN EXCESS OF OTHER
ASSETS -- (0.4%)........................... (481,304)
------------
NET ASSETS (Applicable to 6,820,037 BEA
Shares) -- 100.0%......................... $108,589,416
------------
------------
NET ASSET VALUE AND OFFERING PRICE PER SHARE
($108,589,416 DIVIDED BY 6,820,037)....... $15.92
------------
------------
REDEMPTION PRICE PER SHARE ($15.92 x
.9850)..................................... $15.68
------------
------------
</TABLE>

* Cost for Federal income tax purposes at February 28, 1995 is 138,297,594. The
gross appreciation (depreciation) on a tax basis is as follows:

<TABLE>
<S> <C>
Gross Appreciation......................... $ 5,149,086
Gross Depreciation......................... (34,375,960)
-------------
Net Depreciation........................... $ (29,226,874)
-------------
-------------
</TABLE>

** Non-income producing securities.

INVESTMENT ABBREVIATIONS

See Accompanying Notes to Financial Statements.

40
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
BEA EMERGING MARKETS EQUITY PORTFOLIO

<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED
FEBRUARY 28, 1995
(UNAUDITED)

<S> <C>
INVESTMENT INCOME
Dividends.................................. $ 635,454
Interest................................... 112,614
Foreign taxes withheld..................... (205,657)
-------------
TOTAL INVESTMENT INCOME.................. 542,411
-------------
EXPENSES
Investment advisory fees................... 640,986
Custodian fees............................. 189,193
Administration service fee................. 96,148
Administration fee......................... 80,121
Registration fees.......................... 19,548
Audit fees................................. 9,517
Transfer agent fees........................ 9,474
Miscellaneous fees......................... 8,370
Legal fees................................. 6,621
Organization expense....................... 5,274
Printing fees.............................. 4,179
Insurance expense.......................... 1,723
Directors fees............................. 616
-------------
1,071,770
Less fees waived........................... (110,283)
-------------
TOTAL EXPENSES........................... 961,487
-------------
NET INVESTMENT LOSS.......................... (419,076)
-------------
REALIZED AND UNREALIZED LOSS ON INVESTMENTS
AND FOREIGN CURRENCY TRANSACTIONS:
Net realized loss from:
Security transactions.................... (1,817,832)
Foreign exchange transactions............ (113,094)
-------------
(1,930,926)
-------------
Net unrealized depreciation from:
Investments.............................. (44,246,086)
Translation of assets and liabilities in
foreign currencies...................... (19,677)
-------------
(44,265,763)
-------------
NET LOSS ON INVESTMENTS AND FOREIGN CURRENCY
TRANSACTIONS............................... (46,196,689)
-------------
NET DECREASE IN NET ASSETS RESULTING FROM
OPERATIONS................................. $ (46,615,765)
-------------
-------------
</TABLE>

STATEMENTS OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
FOR THE
YEAR ENDED
AUGUST 31,
1994
FOR THE ------------
SIX MONTHS
ENDED
FEBRUARY 28,
1995
------------
(UNAUDITED)
<S> <C> <C>
Increase (decrease) in net assets:
Operations:
Net investment loss...................... $ (419,076) $ (17,188)
Net gain (loss) on investments and
foreign currency........................ (46,196,689) 17,329,056
------------ ------------
Net increase (decrease) in net assets
resulting from operations............... (46,615,765) 17,311,868
------------ ------------
Distribution to shareholders:
Dividends to shareholders from net
investment income:
BEA shares ($.07 and $.09, respectively,
per share).............................. (394,002) (291,386)
Distributions to shareholders from net
realized capital gains:
BEA shares ($.92 and $.32, respectively,
per share).............................. (5,374,023) (1,002,877)
------------ ------------
Total distributions to shareholders........ (5,768,025) (1,294,263)
------------ ------------
Net capital share transactions............... 20,297,827 102,669,712
------------ ------------
Total increase (decrease) in net assets...... (32,085,963) 118,687,317
Net Assets:
Beginning of period........................ 140,675,379 21,988,062
------------ ------------
End of period.............................. $108,589,416 $140,675,379
------------ ------------
------------ ------------
</TABLE>

See Accompanying Notes to Financial Statements.

41
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
BEA U.S. CORE FIXED INCOME PORTFOLIO
STATEMENT OF NET ASSETS
FEBRUARY 28, 1995
(UNAUDITED)
<TABLE>
<CAPTION>
PAR
(000) VALUE
---------- -------------
<S> <C> <C>
CORPORATE BONDS -- 16.9%
AIRLINES -- 0.6%
Delta Air Lines, Inc. Debenture (Ba1, BB)
9.75% 05/15/21........................... $ 350 $ 346,500
-------------
BANKS -- 3.9%
Canada Imperial Bank of Commerce FRN Euro
Debenture (NR, NR)
6.9375% 07/31/49......................... 330 281,045
Christiania Bank og Kreditkasse (NR, NR)+
6.3125% Open............................. 250 193,325
Den Norske Bank Perpetual FRN (NR, NR)+
6.50% Open............................... 340 262,089
Hongkong & Shanghai Banking Corp. Ltd.
Perpetual FRN (NR, NR)+
6.5625% Open............................. 50 39,538
6.75% Open............................... 520 411,320
Lloyds Bank Plc Perpetual FRN (NR, NR)+
6.4375% 11/30/49......................... 320 269,920
Midland Bank Plc Perpetual FRN (A2, BBB+)+
5.75% 09/30/49........................... 410 329,538
National Westminster Bank Plc
(A-1, A+)+
6.8125% Open............................. 270 231,876
Standard Chartered Bank
(Baa3, NR)+
7.025% Open.............................. 400 301,100
-------------
2,319,751
-------------
BUILDING & BUILDING MATERIALS -- 0.9%
JM Peters Co. Inc., Senior Notes (B-, B3)
12.75% 05/01/02.......................... 230 184,000
News America Holdings Inc. Guaranteed
Senior Notes, Inc.
(Ba1, BBB-)
9.25% 02/01/13........................... 345 358,800
-------------
542,800
-------------

<CAPTION>
PAR
(000) VALUE
---------- -------------
<S> <C> <C>
COMMUNICATIONS & MEDIA -- 0.4%
Adelphia Communications Corp.
Senior Notes PIK Bonds (B2, B)
9.50% 02/15/04........................... $ 296 $ 215,982
-------------
CONSUMER SERVICES -- 0.6%
Falcon Holdings Group L.P.
Senior Subordinated Notes
PIK Bonds (NR, NR)
11.00% 09/15/03.......................... 433 373,212
-------------
ENVIRONMENTAL SERVICES -- 0.5%
EnviroSource, Inc. Senior Notes
(B3, B-)
9.75% 06/15/03........................... 360 319,500
-------------
FINANCE -- 2.5%
Ford Motor Credit Corp. Medium Term Notes
(A-2, A)
4.80% 07/22/96........................... 25 24,281
GMAC Medium Term Notes (Baa1, BBB+)
7.25% 07/20/98........................... 1,160 1,142,600
8.625% 06/15/99.......................... 100 102,875
8.40% 10/15/99........................... 200 203,750
-------------
1,473,506
-------------
FINANCIAL SERVICES -- 0.1%
International Lease Finance Corp.
Senior Notes (A2, A+)
6.75% 08/01/97........................... 30 29,588
-------------
GAS UTILITIES -- 0.1%
Columbia Gas Systems Debentures (Caa,
D)***/****
10.50% 06/01/12.......................... 45 59,850
-------------
INDUSTRIAL, MANUFACTURING & PROCESSING -- 1.3%
Arcadian Partners L.P. Senior Notes Series
B (B2, B+)
10.75% 05/01/05.......................... 260 256,100
PDV America, Inc. Guaranteed Senior Notes
(Baa3, BB) 7.875% 08/01/03............... 420 327,600
</TABLE>

See Accompanying Notes to Financial Statements.

42
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
BEA U.S. CORE FIXED INCOME PORTFOLIO
STATEMENT OF NET ASSETS (CONTINUED)
FEBRUARY 28, 1995
(UNAUDITED)
<TABLE>
<CAPTION>
PAR
(000) VALUE
---------- -------------
INDUSTRIAL, MANUFACTURING & PROCESSING -- (CONTINUED)
<S> <C> <C>
Wilrig Yankee Senior Secured Notes (B2, B)
11.25% 03/15/04.......................... $ 215 $ 191,888
-------------
775,588
-------------
PAPER & FOREST PRODUCTS -- 1.3%
Grupo Industrial Durango Yankee Notes (B1,
BB)
12.00% 07/15/01.......................... 210 161,700
P. T. Indah Kiat Pulp & Paper Corp.
Guaranteed Notes (Ba3, BB)
11.875% 06/15/02......................... 230 226,550
P. T. Indah Kiat Pulp & Paper Corp. Notes
144A Senior
Security (Ba3, BB)
8.875% 11/01/00.......................... 155 127,100
Stone Container Corp. First Mortgage Note
(B1, B+)
10.75% 10/01/02.......................... 250 260,000
-------------
775,350
-------------
PUBLISHING -- 0.8%
Time Warner, Inc. Debenture (Ba1, BBB-)
9.15% 02/01/23........................... 480 461,400
-------------
RESTAURANTS -- 0.6%
Flagstar Corp. Subordinated Debentures
(Caa, CCC+)
11.25% 11/01/04.......................... 430 368,725
-------------
RETAIL -- 1.0%
Federated Department Stores Senior Notes
(Ba1, BB)
10.00% 02/15/01.......................... 470 492,325
Pueblo Xtra International, Inc.
Senior Notes (B2, B-)
9.50% 08/01/03........................... 85 70,656
-------------
562,981
-------------
<CAPTION>
PAR
(000) VALUE
---------- -------------
<S> <C> <C>
STEEL -- 0.2%
Armco, Inc. Senior Notes (B1, B)
9.375% 11/01/00.......................... $ 150 $ 137,813
-------------
TELEPHONE -- 0.1%
Nippon Telephone & Telegraph Notes (Aaa,
AAA)
9.50% 07/27/98........................... 50 53,125
-------------
TELEVISION -- 0.8%
Turner Broadcasting Systems
Senior Notes (Ba2, BB+)
7.40% 02/01/04........................... 565 491,550
-------------
UTILITIES -- 1.2%
Korea Electric Power Corp. Debentures (A1,
A+)
7.75% 04/01/13........................... 765 687,544
-------------
TOTAL CORPORATE BONDS
(Cost $10,196,612)..................... 9,994,765
-------------
FOREIGN GOVERNMENT BONDS -- 4.7%
Central Bank of Argentina Series 89B Bonex
(B1, BB-)+
6.875% 12/28/99.......................... 40 20,880
Central Bank of the Philippines Par Bond
Step-Up Coupon Series B (NR, NR)+
5.34% 12/01/17........................... 500 296,875
Republic of Argentina FRB
Non-U.S. Tranche (NR, NR)+
6.50% 03/31/05........................... 750 383,906
Republic of Argentina Step-up Par Bonds Non
U.S. Tranche Series L (B2, NR)+
4.25% 03/31/23........................... 1,000 392,500
Republic of Brazil IDU Notes Non-U.S.
Tranche (NR, NR)+
7.8125% 01/01/01......................... 485 376,178
Republic of Italy Global Bond (A1, AA)
6.875% 09/27/23.......................... 780 632,775
Republic of Turkey Yankee Bonds (Ba3, B+)
9.00% 06/15/99........................... 170 150,663
</TABLE>

See Accompanying Notes to Financial Statements.

43
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
BEA U.S. CORE FIXED INCOME PORTFOLIO
STATEMENT OF NET ASSETS (CONTINUED)
FEBRUARY 28, 1995
(UNAUDITED)
<TABLE>
<CAPTION>
PAR
(000) VALUE
---------- -------------
FOREIGN GOVERNMENT BONDS (CONTINUED)
<S> <C> <C>
Republic of Venezuela Par Bonds
(Ba2, NR)
6.75% 3/31/20............................ $ 500 $ 222,188
The Polish People's Republic Discount Bonds
(NR, NR)+
6.8125% 10/27/24......................... 390 260,081
-------------
TOTAL FOREIGN
GOVERNMENT BONDS
(Cost $3,030,381)...................... 2,736,046
-------------
STRUCTURED NOTES -- 3.7%
Du Pont (E.I.) de Nemours & Co., Medium
Term Notes, Series F (Aa2, AAA)
4.25% 03/17/95........................... 650 606,060
General Mills Inc. Medium Term Notes,
Series D (NR, NR)
4.28% 03/17/95........................... 555 476,412
Toyota Motor Credit Corp. Indexed Medium
Term Notes (Aaa, AAA)
4.25% 03/17/95........................... 1,175 1,087,345
-------------
TOTAL STRUCTURED NOTES
(Cost $2,366,577)...................... 2,169,817
-------------
AGENCY OBLIGATIONS -- 35.2%
FEDERAL HOME LOAN MORTGAGE CORP. -- 0.3%
FHLMC
7.00% 08/01/00........................... 143 140,750
FHLMC 5 Year Gold Balloon (TBA)**
6.00% 01/15/00........................... 25 24,164
-------------
164,914
-------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION -- 19.7%
FNMA
7.50% 04/01/00........................... 904 900,859
6.00% 10/01/01........................... 1,657 1,566,565
7.50% 01/15/02........................... 85 84,734
6.00% 02/01/25........................... 3,077 2,702,151
6.50% 01/15/02 (TBA)**................... 1,810 1,754,003
7.50% 01/01/10 (TBA)**................... 2,450 2,425,500
<CAPTION>
PAR
(000) VALUE
---------- -------------
<S> <C> <C>
FEDERAL NATIONAL MORTGAGE ASSOCIATION -- (CONTINUED)
8.00% 01/15/25 (TBA)**................... $ 1,150 $ 1,143,172
FNMA Balloon
7.50% 07/01/00........................... 91 90,434
7.50% 06/01/01........................... 123 122,421
7.50% 09/01/01........................... 576 573,966
FNMA 1991-165 Class M
8.25% 12/25/21........................... 13 12,900
FNMA 1994-3 Class SA
3.1453% 01/25/24......................... 483 202,698
-------------
11,579,403
-------------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION -- 14.8%
GNMA
8.25% 08/15/04........................... 2 1,767
9.00% 11/15/04........................... 2 2,393
9.00% 12/15/04........................... 2 1,946
8.25% 04/15/06........................... 3 3,091
13.50% 07/15/14.......................... 1 1,606
9.00% 12/15/16........................... 395 410,076
9.00% 10/15/17........................... 561 582,413
7.00% 01/01/10 (TBA)**................... 1,900 1,844,188
6.00% 12/01/10 (TBA)**................... 870 807,197
7.50% 01/15/25 (TBA)**................... 4,045 3,916,066
8.00% 11/15/25 (TBA)**................... 1,160 1,153,475
-------------
8,724,218
-------------
MISCELLANEOUS -- 0.4%
Hydro Quebec Guaranteed Debenture (A1, A+)
13.25% 10/15/10.......................... 100 108,000
National Archive Facility Trust COP (Aaa,
AAA)
8.50% 09/01/19........................... 129 128,858
-------------
236,858
-------------
TOTAL AGENCY OBLIGATIONS
(Cost $20,313,721)..................... 20,705,393
-------------
ASSET-BACKED SECURITIES -- 0.2%
First USA Credit Card Master Trust Series
1994-3 (Aaa, AAA)
6.345% 12/15/99.......................... 80 79,925
</TABLE>

See Accompanying Notes to Financial Statements.

44
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
BEA U.S. CORE FIXED INCOME PORTFOLIO
STATEMENT OF NET ASSETS (CONTINUED)
FEBRUARY 28, 1995
(UNAUDITED)
<TABLE>
<CAPTION>
PAR
(000) VALUE
---------- -------------
ASSET-BACKED SECURITIES -- (CONTINUED)
<S> <C> <C>
Goldome Credit Corp. Home
Equity Trust Series 90-1
(Aa2, AA)
10.00% 07/15/05.......................... $ 15 $ 15,116
-------------
TOTAL ASSET-BACKED
SECURITIES
(Cost $95,134)......................... 95,041
-------------
COLLATERALIZED MORTGAGED BACKED SECURITIES -- 0.0%
Collateralized Mortgage Obligation
Trust Series 54-C (Aaa, AAA)
9.25% 11/01/13........................... 4 4,113
Ryland Acceptance Corp. Series 85D (Aaa,
AAA)
9.25% 04/01/12........................... 8 8,078
-------------
TOTAL COLLATERALIZED MORTGAGE BACKED
SECURITIES
(Cost $12,391)......................... 12,191
-------------
COMMERCIAL PAPER -- 21.7%
BHF Finance Inc. (P-1, A-1)
5.95% 03/17/95........................... 1,600 1,595,769
BMW Capital Corp. (P-1, A-1)
5.97% 03/20/95........................... 1,600 1,594,959
Cargill, Inc. (P-1, A-1)
5.87% 03/17/95........................... 1,600 1,595,826
Colgate-Palmolive Company
(P-1, A-1)
5.93% 03/17/95........................... 1,600 1,595,783
Englehard Corp.
(P-1, A-1)
5.95% 03/15/95........................... 1,600 1,596,298
General Electric Capital Corp. (P-1, A-1)
5.87% 03/16/95........................... 1,600 1,596,087
San Paolo U.S. Financial Co.
(P-1, A-1)
5.93% 03/15/95........................... 1,600 1,596,310
Treasury Corp. of New South Wales (P-1,
A-1)
5.87% 03/17/95........................... 1,600 1,595,826
-------------
<CAPTION>
PAR
(000) VALUE
---------- -------------
<S> <C> <C>
COMMERCIAL PAPER -- (CONTINUED)
TOTAL COMMERCIAL PAPER
(Cost $12,766,858)..................... $ 12,766,858
-------------
MUNICIPAL BONDS -- 1.2%
Birmingham Alabama Industrial
Water Board Revenue (NR, AAA)
6.00% 07/01/07........................... $ 10 10,188
Intermountain Power Agency Revenue (Aa, AA)
5.00% 07/01/23........................... 70 58,800
Los Angeles Department of Water & Power,
Electric Revenue (Aa, AA)
4.50% 05/15/23........................... 15 11,213
New York State Medical Care Facilities
Financial Agency Revenue (Hospital and
Nursing Home) (NR, NR)
5.75% 08/15/19........................... 15 14,138
Orlando Florida Utilities Commission Water
& Electric Revenue BAN (Aa, AA-)
5.00% 10/01/20........................... 10 8,600
Triborough Bridge & Tunnel Authority New
York Mortgage Recording Tax Special
Oblig. Series 89A (Aaa, AAA)
7.125% 01/01/19.......................... 15 16,463
Washington State GO (Aa, AA) 5.50%
05/01/18................................. 650 600,438
-------------
TOTAL MUNICIPAL BONDS
(Cost $667,425)........................ 719,840
-------------
UNITED STATES TREASURY OBLIGATIONS -- 34.6%
U.S. TREASURY BONDS -- 14.1%
11.625% 11/15/04......................... 1,465 1,901,672
10.75% 08/15/05.......................... 595 743,101
8.875% 08/15/17.......................... 2,305 2,621,684
7.875% 02/15/21.......................... 245 871,085
7.125% 02/15/23.......................... 2,260 2,153,689
-------------
8,291,231
-------------
</TABLE>

See Accompanying Notes to Financial Statements.

45
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
BEA U.S. CORE FIXED INCOME PORTFOLIO
STATEMENT OF NET ASSETS (CONCLUDED)
FEBRUARY 28, 1995
(UNAUDITED)
<TABLE>
<CAPTION>
PAR
(000) VALUE
---------- -------------
U.S. TREASURY NOTES -- 19.9%
<S> <C> <C>
7.375% 05/15/96.......................... $ 135 $ 136,265
7.25% 11/15/96........................... 305 307,592
6.00% 02/31/97........................... 3,365 3,290,768
5.375% 05/31/98.......................... 7,730 7,381,834
7.50% 11/15/01........................... 235 239,399
5.75% 08/15/03........................... 375 340,590
-------------
11,696,448
-------------
U.S. TREASURY STRIP NOTES -- 0.6%
0.00% 11/15/04........................... 710 349,093
-------------
TOTAL U.S. TREASURY
OBLIGATIONS
(Cost $20,070,912)..................... 20,336,772
-------------
LOAN PARTICIPATION AGREEMENTS*** -- 0.4%
BANKS -- 0.4%
Vnesheconombank Bank Participation Loan.... 1,350 213,065
-------------
TOTAL LOAN PARTICIPATION AGREEMENTS
(Cost $272,447)........................ 213,065
-------------
SHORT-TERM INVESTMENT -- 3.2%
BBH Grand Cayman U.S. Dollar Time Deposit
5.00% 03/07/95........................... 1,914 1,914,000
-------------
TOTAL SHORT-TERM INVESTMENT
(Cost $1,914,000)...................... 1,914,000
-------------
<CAPTION>
NUMBER OF
SHARES
-----------
<S> <C> <C>
WARRANTS*** -- 0.0%
JM Peters Inc. Warrants
Expiring 05/01/02........................ 1,817 909
-------------
TOTAL WARRANTS
(Cost $1,000).......................... 909
-------------
TOTAL INVESTMENTS AT VALUE (Cost $71,707,458)
-- 121.8%.................................. 71,664,697
<CAPTION>
VALUE
-------------
<S> <C> <C>
INVESTMENTS SECURITIES
PURCHASED PAYABLE -- (24.2%)............... $ (14,233,707)
OTHER ASSETS IN EXCESS OF LIABILITIES --
2.4%....................................... 1,392,322
-------------
NET ASSETS (Applicable to
4,038,565 BEA shares)--100.0%.............. $ 58,823,312
-------------
-------------
NET ASSET VALUE, OFFERING PRICE AND
REDEMPTION PRICE PER SHARE
($58,823,312 DIVIDED BY 4,038,565)........ $14.57
-------------
-------------
</TABLE>

* Cost for Federal income tax purposes at February 28, 1995 is 71,910,681.
The gross appreciation (depreciation) on a tax basis is as follows:

<TABLE>
<S> <C>
Gross Appreciation........................ $ 756,089
Gross Depreciation........................ (1,002,073)
----------
Net Depreciation.......................... $ (245,984)
----------
----------
</TABLE>

** Securities were acquired on a delayed delivery basis.

*** Non-Income Producing.

**** Securities currently in default.

+ Variable Rate Obligations -- The interest rate shown is the rate as of
February 28, 1995.

The Moody's Investors Service, Inc. and Stadard & Poor's Corporation's ratings
indicated are the most recent ratings available at February 28, 1995.

INVESTMENT ABBREVIATIONS

<TABLE>
<S> <C>
BAN........................... Bond Anticipation Notes
COP........................... Certificates of Participation
FRB........................... Floating Rate Bond
FRN........................... Floating Rate Note
GO............................ General Obligation
PIK........................... Pay in Kind
TBA........................... To be Announced
</TABLE>

See Accompanying Notes to Financial Statements.

46
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
BEA U.S. CORE FIXED INCOME PORTFOLIO

STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED
FEBRUARY 28, 1995
(UNAUDITED)

<TABLE>
<S> <C>
INVESTMENT INCOME
Interest................................... $ 1,885,969
-----------
EXPENSES
Investment advisory fees................... 100,540
Administration service fee................. 40,216
Administration fee......................... 33,513
Custodian fees............................. 24,463
Registration fees.......................... 10,075
Transfer agent fees........................ 9,400
Printing fees.............................. 5,359
Legal fees................................. 3,089
Miscellaneous fees......................... 2,414
Audit fees................................. 2,191
Organization expense....................... 1,801
Insurance expense.......................... 653
Directors fees............................. 296
-----------
234,010
Less fees waived........................... (99,957)
-----------
TOTAL EXPENSES........................... 134,053
-----------
NET INVESTMENT INCOME........................ 1,751,916
-----------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS AND FOREIGN CURRENCY
TRANSACTIONS:..............................
Net realized loss from:
Security transactions.................... (971,953)
Foreign exchange transactions............ (421)
-----------
(972,374)
-----------
Net unrealized appreciation (depreciation)
from:
Investments.............................. 433,475
Translation of assets and liabilities in
foreign currencies...................... (9,592)
-----------
423,883
-----------
NET LOSS ON INVESTMENTS AND FOREIGN CURRENCY
TRANSACTIONS............................... (548,491)
-----------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS................................. $ 1,203,425
-----------
-----------
</TABLE>

STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
FOR THE
PERIOD
APRIL 1,
1994(1)
TO AUGUST
31, 1994
FOR THE ------------
SIX MONTHS
ENDED
FEBRUARY 28,
1995
------------
(UNAUDITED)
<S> <C> <C>
Increase in net assets:
Operations:
Net investment income.................... $ 1,751,916 $ 859,203
Net loss on investments and foreign
currency................................ (548,491) (854,633)
------------ ------------
Net increase in net assets resulting from
operations.............................. 1,203,425 4,570
------------ ------------
Distributions to shareholders:
Dividends to shareholders from net
investment income:
BEA shares ($.46 and $.24, respectively,
per share).............................. (1,467,800) (491,074)
------------ ------------
Net capital share transactions............... 29,071,869 30,502,172
------------ ------------
Total increase in net assets............... 28,807,494 30,015,668
------------ ------------
Net Assets:
Beginning of period........................ 30,015,818 150
------------ ------------
End of period.............................. $58,823,312 $30,015,818
------------ ------------
------------ ------------

<FN>

(1) Commencement of Operations.
</TABLE>

See Accompanying Notes to Financial Statements.

47
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
BEA GLOBAL FIXED INCOME PORTFOLIO
STATEMENT OF NET ASSETS
FEBRUARY 28, 1995
(UNAUDITED)
<TABLE>
<CAPTION>
PAR
(000) VALUE
------------- -------------
<S> <C> <C> <C>
INTERNATIONAL BONDS -- 74.8%
ARGENTINA -- 1.4%
Republic of Argentina FRB Non U.S.
Tranche (NR, NR)+
6.50% 03/31/05...................... $ 500 $ 255,936
-------------
AUSTRALIA -- 3.9%
Queensland Treasury Corp. Global Bonds
(NR, NR) 8.00% 07/14/99............. AUD 630 437,116
Treasury Corporation of Victoria
Global Bonds (Aa3, AA) 8.25%
10/15/03............................ 420 270,049
-------------
707,158
-------------
BRAZIL -- 3.0%
Federal Republic of Brazil
C Bonds, Step-Up Coupon (NR, NR)
8.00% 04/15/14...................... 257 104,756
Federal Republic of Brazil IDU Notes
Non U.S. Tranche (B1, NR)+
7.8125% 01/01/01.................... 243 188,089
Companhia Petroleo Ipiranga Notes,
Step-up Coupon (NR, NR)
8.625% 02/25/02..................... 285 252,225
-------------
545,070
-------------
BULGARIA -- 0.6%
Republic of Bulgaria Discount Bonds
Series A (NR, NR)+
7.5625% 07/28/24.................... 250 108,906
-------------
CANADA -- 4.1%
Government of Canada Bonds (Aa1, NR)
9.25% 12/01/99...................... CND 390 291,905
7.25% 06/01/03...................... 660 439,487
-------------
731,392
-------------

<CAPTION>
PAR
(000) VALUE
------------- -------------
<S> <C> <C> <C>
FRANCE -- 13.7% **
French Treasury Strips
(NR, NR)
6.90% 10/25/97...................... FF $ 4,000 $ 645,476
7.15% 10/25/98...................... 12,300 1,836,605
-------------
2,482,081
-------------
GERMANY -- 11.7%
Federal Republic of Germany Eurobonds
(Aaa, NR) 7.25% 10/21/02............ DEM 3,100 2,124,031
-------------
INDONESIA -- 0.9%
P.T. Indah Kiat Pulp & Paper Corp.
Notes 144A Senior Security (Ba3, BB)
8.875% 11/01/00..................... 200 164,000
-------------
ITALY -- 3.6%
Republic of Italy Bonds (A-1, NR)
9.00% 10/01/03...................... ITL 1,320,000 647,443
-------------
MOROCCO -- 1.7%
The Kingdom of Morocco, Tranche A Bank
Participation Loan (NR, NR)+
7.375% 04/01/95..................... 500 310,937
-------------
NETHERLANDS -- 4.4%
Netherlands Government Bonds (NR, NR)
6.25% 07/15/98...................... NLG 1,320 793,131
-------------
POLAND -- 1.3%
The Polish People's Republic Discount
Bonds (NR, NR)+
6.8125% 10/27/24.................... 345 230,072
-------------
</TABLE>

See Accompanying Notes to Financial Statements.

48
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
BEA GLOBAL FIXED INCOME PORTFOLIO
STATEMENT OF NET ASSETS (CONTINUED)
FEBRUARY 28, 1995
(UNAUDITED)
<TABLE>
<CAPTION>
PAR
(000) VALUE
------------- -------------
INTERNATIONAL BONDS -- (CONTINUED)
<S> <C> <C> <C>
SPAIN -- 3.7%
Kingdom of Spain Eurobonds (NR, NR)
10.25% 11/30/98..................... ESP 90,000 $ 675,529
-------------
SUPRANATIONAL -- 7.9%
International Bond for Reconstruction
& Development Eurobonds (Aaa, AAA)
5.25% 03/20/02...................... JPY 131,000 1,432,282
-------------
SWEDEN -- 4.9%
Nordic Investment Bank Global Notes
(Aaa, AAA) 6.25% 02/08/99........... SEK 3,210 379,564
Swedish Government Bonds (NR, NR)
11.00% 01/21/99..................... 3,700 517,218
-------------
896,782
-------------
TURKEY -- 0.3%
Republic of Turkey Yankee Bonds (Ba3,
B+)
9.00% 06/15/99...................... 55 48,744
-------------
UNITED KINGDOM -- 6.2%
U.K. Treasury Eurobonds (Aaa, NR)
8.50% 07/16/07...................... GBP 720 1,130,144
-------------
UNITED STATES -- 0.3%
Stone Container Corp. First Mortgage
Notes (B1, B+)
10.75% 10/01/02..................... 60 62,400
-------------
VENEZUELA -- 1.2%
Republic of Venezuela Debt Conversion
FRN Bonds Series DL (Ba1, NR)
7.6875% 12/18/07.................... 500 224,063
-------------
TOTAL INTERNATIONAL BONDS
(Cost $13,611,503)........................ 13,570,101
-------------
<CAPTION>
PAR
(000) VALUE
------------- -------------
<S> <C> <C> <C>
UNITED STATES TREASURY OBLIGATIONS -- 14.7%
U.S. TREASURY BONDS -- 13.4%
7.50% 11/15/01........................ $ 830 $ 845,538
5.75% 08/15/03........................ 1,000 908,240
11.625% 11/15/04...................... 480 623,074
7.875% 02/15/21....................... 55 56,698
-------------
2,433,550
-------------
U.S. TREASURY STRIP NOTES -- 0.7%
0.00% 11/15/04........................ 240 118,003
-------------
U.S. TREASURY NOTES -- 0.6%
5.375% 05/31/98....................... 120 114,595
-------------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $2,611,106).................... 2,666,148
-------------
SHORT-TERM INVESTMENT -- 8.9%
BBH Grand Cayman U.S. Dollar Time
Deposit
5.00% 03/07/95....................... 1,623 1,623,000
-------------
TOTAL SHORT-TERM
INVESTMENT
(Cost $1,623,000).................... 1,623,000
-------------
LOAN PARTICIPATION AGREEMENTS*** -- 0.4%
Vneshekonombank Bank Participation Loan....
450 71,022
-------------
TOTAL LOAN PARTICIPATION AGREEMENTS
(Cost $90,816)............................ 71,022
-------------
TOTAL INVESTMENTS AT VALUE
(Cost $17,936,425*) -- 98.8%............. $ 17,930,271
OTHER ASSETS IN EXCESS OF LIABILITIES --
1.2%..................................... 211,449
-------------
NET ASSETS (Applicable to 1,210,620
BEA Shares) -- 100.0%.................... $ 18,141,720
-------------
-------------
NET ASSET VALUE, OFFERING PRICE AND
REDEMPTION PRICE PER SHARE
($18,141,720 DIVIDED BY 1,210,620)...... $14.99
-------------
-------------
</TABLE>

See Accompanying Notes to Financial Statements.

49
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
BEA GLOBAL FIXED INCOME PORTFOLIO
STATEMENT OF NET ASSETS (CONCLUDED)
FEBRUARY 28, 1995
(UNAUDITED)

* Also cost for Federal income tax
purposes at February 28, 1995. The
gross appreciation (depreciation)
on a tax basis is as follows:

<TABLE>
<S> <C>
Gross Appreciation....................... $ 424,146
Gross Depreciation....................... (430,300)
----------
Net Depreciation......................... $ (6,154)
----------
----------
</TABLE>

** Zero Coupon Bonds. Rate Shown is
the effective yield.

*** Non-Income Producing.

+ Variable Rate Obligations -- The
interest rate shown is the rate as
of February 28, 1995.

The Moody's Investors Service, Inc.
and Standard & Poor's Corporation's
ratings indicated are the most recent
ratings available at February 28,1995.

CURRENCY ABBREVIATIONS

<TABLE>
<S> <C>
AUD........................... Australian Dollars
CND........................... Canadian Dollars
DEM........................... German Deutschemarks
ESP........................... Spanish Pesetas
FF............................ French Francs
GBP........................... United Kingdom Pounds
ILT........................... Italian Lira
JPY........................... Japanese Yen
NLG........................... Netherland Guilders
SEK........................... Swedish Krona
</TABLE>

See Accompanying Notes to Financial Statements.

50
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
BEA GLOBAL FIXED INCOME PORTFOLIO

STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED
FEBRUARY 28, 1995
(UNAUDITED)

<TABLE>
<S> <C>
INVESTMENT INCOME
Interest................................... $ 630,277
----------
EXPENSES
Investment advisory fees................... 38,816
Custodian fees............................. 16,123
Administration service fee................. 11,645
Administration fee......................... 9,704
Transfer agent fees........................ 8,536
Registration fees.......................... 7,856
Organization expense....................... 2,963
Printing fees.............................. 2,896
Legal fees................................. 2,224
Miscellaneous fees......................... 1,940
Audit fees................................. 949
Insurance expense.......................... 194
Directors fees............................. 93
----------
103,939
Less fees waived........................... (43,218)
Less expense reimbursement................. (2,497)
----------
TOTAL EXPENSES........................... 58,224
----------
NET INVESTMENT INCOME........................ 572,053
----------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENT AND FOREIGN CURRENCY
TRANSACTIONS:
Net realized gain (loss) from:
Security transactions.................... (130,025)
Foreign exchange transactions............ 26,260
----------
(103,765)
----------
Net unrealized appreciation (depreciation)
from:
Investments.............................. 52,516
Translation of assets and liabilities in
foreign currencies...................... (106,537)
----------
(54,021)
----------
NET LOSS ON INVESTMENTS AND FOREIGN CURRENCY
TRANSACTIONS............................... (157,786)
----------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS................................. $ 414,267
----------
----------
</TABLE>

STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
FOR THE
PERIOD
JUNE 28,
1994(1)
TO AUGUST
31, 1994
FOR THE -----------
SIX MONTHS
ENDED
FEBRUARY 28,
1995
------------
(UNAUDITED)

<S> <C> <C>
Increase in net assets:
Operations:
Net investment income.................... $ 572,053 $ 63,522
Net loss on investments and foreign
currency................................ (157,786) (63,312)
------------ -----------
Net increase in net assets resulting from
operations.............................. 414,267 210
------------ -----------
Distributions to shareholders:
Dividends to shareholders from net
investment income:
BEA shares ($.41 per share).............. (351,383) --
------------ -----------
Net capital share transactions............... 11,778,476 6,300,000
------------ -----------
Total increase in net assets................. 11,841,360 6,300,210
Net Assets:
Beginning of period........................ 6,300,360 150
------------ -----------
End of period.............................. $18,141,720 $6,300,360
------------ -----------
------------ -----------

<FN>

(1) Commencement of Operations.
</TABLE>

See Accompanying Notes to Financial Statements.

51
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
BEA STRATEGIC FIXED INCOME PORTFOLIO
STATEMENT OF NET ASSETS
FEBRUARY 28, 1995
(UNAUDITED)
<TABLE>
<CAPTION>
PAR
(000) VALUE
------------ -------------
<S> <C> <C>
CORPORATE BONDS -- 54.8%
BANKS AND SAVINGS & LOANS -- 0.8%
Banco Nacional de Desenvolvimento Economi-
co e Social Notes (NR, NR)
6.00% 09/15/96........................... $ 1,067 $ 1,016,508
-------------
BUILDING & BUILDING MATERIALS -- 2.1%
JM Peters Co. Inc.,
Senior Notes (B-, B3)
12.75% 05/01/02.......................... 3,600 2,880,000
-------------
CHEMICALS -- 0.9%
UCC Investor Holdings
Subordinated Notes (B3, B-)++
12.00% 05/01/05.......................... 1,700 1,198,500
-------------
COMMUNICATIONS & MEDIA -- 2.7%
Adelphia Communications Corp. Senior Notes
PIK Bonds (B2, B)
9.50% 02/15/04........................... 5,052 3,687,696
-------------
CONSUMER SERVICES -- 2.0%
Falcon Holdings Group L.P. Senior
Subordinated Notes PIK Bonds (NR, NR)
11.00% 09/15/03.......................... 3,159 2,724,903
-------------
ELECTRIC UTILITIES -- 1.8%
Midland Funding Corp. Leased Backed
Certificates (Ba2, BB+)
10.33% 07/23/02.......................... 2,409 2,390,799
-------------
ENVIRONMENTAL SERVICES -- 1.7%
EnviroSource, Inc. Senior Notes (B3, B-)
9.75% 06/15/03........................... 2,635 2,338,562
-------------
FINANCIAL SERVICES -- 1.3%
Fifth Mexican Acceptance Corp. 144A Tranche
A Note (NR, NR)*
8.00% 12/15/98........................... 5,040 1,764,000
-------------
FOOD & BEVERAGES -- 2.4%
Fresh Del Monte Produce Senior Notes (B1,
BB-) 10.00% 05/01/03..................... 5,135 3,183,700
-------------

<CAPTION>
PAR
(000) VALUE
------------ -------------
<S> <C> <C>
GAS UTILITIES -- 4.5%
Columbia Gas Systems Debentures (Caa, D)
**/***
10.50% 06/01/12.......................... $ 4,280 $ 5,692,400
Columbia Gas Systems
Medium Term Notes
(NR, NR)**/***
9.07% 01/12/00........................... 235 236,763
9.25% 09/30/04........................... 135 141,075
-------------
6,070,238
-------------
HEALTH CARE -- 2.4%
General Medical Corp. Subordinated
Debentures PIK Bonds
(B3, B-)
12.125% 08/15/05......................... 3,293 3,161,280
-------------
INDUSTRIAL MANUFACTURING & PROCESSING -- 14.8%
Arcadian Partners L.P. Senior Notes Series
B (B2, B+) 10.75% 05/01/05............... 3,400 3,349,000
Bell Cablemedia Plc Discount Notes (B2,
B+)++
11.95% 07/15/04.......................... 5,350 3,236,750
Bombril S.A. (NR, NR)
8.00% 08/26/98........................... 3,350 2,696,750
Essar Gujarat Floating Ltd. Rate Debenture
Euro 144A
(NR, NR)+
9.40% 07/15/99........................... 1,250 1,237,500
Exide Corp. Senior Subordinated Debentures
(B3, B-)++
12.25% 12/15/04.......................... 2,750 1,993,750
Grupo Mexicano de Desarrollo 144A Notes
(B3, NR)
8.25% 02/17/01........................... 410 145,550
Ipiranga Step-up Bonds -
Euro Companhia Brasileira
Petroleo (NR, NR)
8.625% 02/25/02.......................... 3,590 3,177,150
Southwest Forest Industries Sub Debentures
(B3, B-) 12.125% 09/15/01................ 3,975 4,034,625
-------------
19,871,075
-------------
METALS & MINING -- 3.2%
Acme Metals, Inc. Senior Secured Notes (B1,
B)++
13.50% 08/01/04.......................... 5,800 4,263,000
-------------
</TABLE>

See Accompanying Notes to Financial Statements.

52
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
BEA STRATEGIC FIXED INCOME PORTFOLIO
STATEMENT OF NET ASSETS (CONTINUED)
FEBRUARY 28, 1995
(UNAUDITED)
<TABLE>
<CAPTION>
PAR
(000) VALUE
------------ -------------
PAPER & FOREST PRODUCTS -- 7.5%
<S> <C> <C>
Grupo Industrial Durango Yankee Notes (B1,
BB) 12.00% 07/15/01...................... $ 3,400 $ 2,618,000
P.T. Indah Kiat Pulp & Paper Corp.
Guaranteed Notes (Ba3, BB)
11.875% 06/15/02......................... 1,150 1,132,750
P.T. Indah Kiat Pulp & Paper Corp. Notes
144A Senior Security (Ba3, BB)
8.875% 11/01/00.......................... 3,140 2,574,800
Stone Container Corp. Senior Notes (B1, B+)
9.875% 02/01/01.......................... 3,080 3,018,400
Stone Container Corp. First Mortgage Note
(B1, B+) 10.75% 10/01/02................. 745 774,800
-------------
10,118,750
-------------
RESTAURANTS -- 3.7%
Flagstar Corp. Subordinated Debentures (B2,
B)
11.25% 11/01/04.......................... 5,800 4,973,500
-------------
RETAIL -- 0.6%
Pueblo Xtra International, Inc. Senior
Notes (B2, B-) 9.50% 08/01/03............ 1,000 831,250
-------------
TELECOMMUNICATIONS & EQUIPMENT -- 2.4%
Cablevision Industries Series B Senior
Debentures (B1, B+)
9.25% 04/01/08........................... 3,245 3,188,212
-------------
TOTAL CORPORATE BONDS (Cost $81,671,479)... 73,661,973
-------------
FOREIGN GOVERNMENT BONDS -- 21.8%
Central Bank of Argentina Series 89B Bonex
(B1, BB-)+
6.875% 12/28/99.......................... 65 33,930
Central Bank of Nigeria Par Bond (NR, NR)+
6.25% 11/15/20........................... 6,500 2,539,063
Central Bank of the Philippines Par Bond
Step-Up Coupon Series B (NR, NR)+
5.75% 12/01/17........................... 6,500 3,851,250
<CAPTION>
PAR
(000) VALUE
------------ -------------
<S> <C> <C>
FOREIGN GOVERNMENT BONDS -- (CONTINUED)
Federal Republic of Brazil C Bonds Step-Up
Coupon (NR, NR)
8.00% 04/15/14........................... $ 3,060 $ 1,248,863
Federal Republic of Brazil IDU Notes Non
U.S. Tranche (BI, NR)+
7.8125% 01/01/01......................... 970 752,356
Republic of Argentina FRB Non U.S. Tranche
(NR, NR)+
6.50% 03/31/05........................... 6,250 3,203,125
Republic of Argentina Step-Up Par Bonds Non
U.S. Tranche Series L
(B2, NR)+
4.25% 03/31/23........................... 4,750 1,864,375
Republic of Bulgaria Discount Bonds Series
A (NR, NR)+
7.5625% 07/28/24......................... 5,250 2,287,031
Republic of Turkey Yankee Notes (Ba3, B+)
9.00% 06/15/99........................... 3,050 2,703,063
Republic of Venezuela Debt Conversion FRN
Bonds
Series DL (Ba1, NR)+
7.6875% 12/18/07......................... 9,250 4,145,156
The Kingdom of Morocco, Tranche A Bond
Participation Loan (NR, NR)+
7.375% 01/01/09.......................... 6,000 3,731,250
The Polish People's Republic Discount Bonds
(NR, NR)+
6.8125% 10/27/24......................... 3,725 2,493,422
United Mexican States Par Bond Series B
(Ba3)
6.25% 12/31/19........................... 750 371,250
-------------
TOTAL FOREIGN
GOVERNMENT BONDS (Cost $35,364,353)....... 29,224,134
-------------
LOAN PARTICIPATION AGREEMENT** -- 1.3%
Vneshekonombank Bank
Participation Loan....................... 8,000 1,795,000
-------------
TOTAL LOAN PARTICIPATION AGREEMENT (Cost
$3,115,000)............................... 1,795,000
-------------
</TABLE>

See Accompanying Notes to Financial Statements.

53
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
BEA STRATEGIC FIXED INCOME PORTFOLIO
STATEMENT OF NET ASSETS (CONCLUDED)
FEBRUARY 28, 1995
(UNAUDITED)
<TABLE>
<CAPTION>
PAR
(000) VALUE
------------ -------------
UNITED STATES TREASURY OBLIGATIONS -- 17.5%
U.S. TREASURY BILLS -- 9.6%
5.70% 05/18/95............................. $ 3,000 $ 2,962,343
5.72% 05/25/95............................. 3,000 2,959,150
5.35% 03/09/95............................. 7,000 6,991,494
-------------
12,912,987
-------------
U.S. TREASURY BONDS -- 7.8%
11.625% 11/15/04........................... 950 1,233,166
10.75% 08/15/05............................ 7,375 9,210,711
-------------
10,443,877
-------------
U.S. TREASURY STRIP NOTES -- 0.1%
0.00% 11/15/04............................. 480 236,006
-------------
10,679,883
-------------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $23,157,216)....................... 23,592,870
-------------
SHORT-TERM INVESTMENT -- 2.1%
BBH Grand Cayman U.S.
Dollar Time Deposit
5.00% 03/07/95............................ 2,845 2,845,000
-------------
TOTAL SHORT-TERM
INVESTMENT
(Cost $2,845,000)......................... 2,845,000
-------------
<CAPTION>
NUMBER
OF SHARES
------------
<S> <C> <C>
RIGHTS/WARRANTS ** -- 0.1%
JM Peters, Inc. Warrants
Expiring 05/01/02......................... 28,440 14,220
Uniroyal Technology Warrants Expiring
06/01/03.................................. 43,500 103,312
-------------
TOTAL RIGHTS/WARRANTS (Cost $102,645)...... 117,532
-------------
TOTAL INVESTMENTS AT VALUE
(Cost $146,255,693*) -- 97.6%............................ $ 131,236,509
OTHER ASSETS IN EXCESS OF
LIABILITIES -- 2.4%...................................... 3,213,996
-------------
<CAPTION>
VALUE
-------------
<S> <C> <C>
NET ASSETS (Applicable to
9,322,648 BEA Shares) -- 100.0%.......................... $ 134,450,505
-------------
-------------
NET ASSET VALUE AND OFFERING PRICE PER SHARE
($134,450,505 DIVIDED BY 9,322,648)....... $14.42
-------------
-------------
REDEMPTION PRICE PER SHARE
($14.42 x .9975)........................... $14.38
-------------
-------------
</TABLE>

* Cost for Federal income tax purposes at February 28, 1995, is 146,057,450.
The gross appreciation (depreciation) on a tax basis is as follows:

<TABLE>
<S> <C>
Gross Appreciation......................... $ 2,314,651
Gross Depreciation......................... (17,135,592)
------------
Net Depreciation........................... $(14,820,941)
------------
------------
</TABLE>

* Guaranteed by Grupo Sidek, S.A. de C.V. and Grupo Situr, S.A. de C.V.

** Non-Income Producing

*** Securities Currently in Default

+ Variable Rate Obligations -- The rate shown is the rate as of February 28,
1995.

++ Step Bonds -- The interest rate as of February 28, 1995 is 0% and will reset
to interest rate shown at a future date.

The Moody's Investors Service, Inc. and Standard & Poor's Corporation's ratings
indicated are the most recent ratings available at February 28, 1995.

INVESTMENT ABBREVIATIONS

<TABLE>
<S> <C>
FRB....................... Floating Rate Bonds
PIK....................... Pay in kind
</TABLE>

See Accompanying Notes to Financial Statements.

54
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
BEA STRATEGIC FIXED INCOME PORTFOLIO

STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED
FEBRUARY 28, 1995
(UNAUDITED)

<TABLE>
<S> <C>
INVESTMENT INCOME
Interest................................... $ 7,303,627
--------------
EXPENSES
Investment advisory fees................... 488,279
Administration Service fee................. 104,631
Administration fee......................... 87,193
Custodian fees............................. 24,556
Audit fees................................. 9,904
Transfer agent fees........................ 9,100
Registration fees.......................... 8,100
Legal fees................................. 6,509
Printing expense........................... 6,200
Organization expense....................... 5,274
Insurance expense.......................... 1,920
Miscellaneous fees......................... 1,030
Directors fees............................. 661
--------------
753,357
Less fees waived........................... (55,816)
--------------
TOTAL EXPENSES........................... 697,541
--------------
NET INVESTMENT INCOME........................ 6,606,086
--------------
REALIZED AND UNREALIZED LOSS ON INVESTMENTS
AND FOREIGN CURRENCY TRANSACTIONS:
Net realized loss from:
Security transactions.................... (5,389,970)
Foreign exchange transactions............ (67,803)
--------------
(5,457,773)
--------------
Net unrealized depreciation from:
Investments.............................. (8,312,724)
Translation of assets and liabilities in
foreign currencies...................... (35,172)
--------------
(8,347,896)
--------------
NET LOSS ON INVESTMENTS AND FOREIGN CURRENCY
TRANSACTIONS................................ (13,805,669)
--------------
NET DECREASE IN NET ASSETS RESULTING FROM
OPERATIONS.................................. $ (7,199,583)
--------------
--------------
</TABLE>

STATEMENTS OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
FOR THE
YEAR ENDED
AUGUST 31,
1994
FOR THE --------------
SIX MONTHS
ENDED
FEBRUARY 28,
1995
--------------
(UNAUDITED)
<S> <C> <C>
Increase (decrease) in net assets:
Operations:
Net investment income.................... $ 6,606,086 $ 9,673,516
Net loss on investments and foreign
currency................................ (13,805,669) (9,133,121)
-------------- --------------
Net increase (decrease) in net assets
resulting from operations................. (7,199,583) 540,395
-------------- --------------
Distribution to shareholders:
Dividends to shareholders from net investment
income:
BEA shares ($.75 and $1.43, respectively,
per share)................................ (6,779,854) (10,126,549)
-------------- --------------
Net capital share transactions............... 4,912,470 54,747,035
-------------- --------------
Total increase (decrease) in net assets...... (9,066,967) 45,160,881
Net Assets:
Beginning of period........................ 143,517,472 98,356,591
-------------- --------------
End of period.............................. $ 134,450,505 $ 143,517,472
-------------- --------------
-------------- --------------
</TABLE>

See Accompanying Notes to Financial Statements.

55
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
BEA MUNICIPAL BOND PORTFOLIO
STATEMENT OF NET ASSETS
FEBRUARY 28, 1995
(UNAUDITED)
<TABLE>
<CAPTION>
PAR
(000) VALUE
------------ -------------
<S> <C> <C>
MUNICIPAL BONDS -- 93.2%
ALABAMA -- 0.7%
Birmingham AL Industrial Water Board
Authority
Revenue (NR, AAA)
6.00% 07/01/07........................... $ 75 $ 76,312
Jefferson County AL
Sanitation & Sewer RAW
(Aaa, NR)
6.75% 03/01/07........................... 270 286,200
-------------
362,512
-------------
ARIZONA -- 3.1%
Salt River AZ Agricultural
Improvement & Power
Distribution Electric System
Revenue (Aa, AA)
5.375% 01/01/11.......................... 600 557,250
5.50% 01/01/25........................... 1,085 991,419
-------------
1,548,669
-------------
ARKANSAS -- 0.8%
Greene County AR Residential Housing
Facility Board
Revenue (Aaa, AAA)
7.40% 09/01/11........................... 365 409,256
-------------
CALIFORNIA -- 6.7%
California State GO (Aaa, AAA)
5.125% 10/01/17.......................... 1,650 1,425,187
Los Angeles CA Department of Water & Power
Revenue (Aa, AA)
4.50% 05/15/23........................... 675 503,719
Sacramento CA Municipal
Utilities Revenue (MBIA
Insured) (Aaa, AAA)
6.20% 08/15/05........................... 100 105,500
Southern California Public Power Authority
Revenue (AMBAC Insured) (Aa, AA)
5.00% 07/01/17........................... 705 599,250
5.50% 07/01/23........................... 740 666,925
-------------
3,300,581
-------------

<CAPTION>
PAR
(000) VALUE
------------ -------------
<S> <C> <C>
COLORADO -- 3.5%
Colorado Springs CO Utilities Revenue (Aaa,
AAA) 5.875% 11/15/17..................... $ 525 $ 513,187
Lower Colorado River Authority Revenue
(Aaa, AAA)
9.25% 01/01/96........................... 350 370,125
9.375% 01/01/96.......................... 85 89,994
9.50% 01/01/96........................... 725 768,500
-------------
1,741,806
-------------
FLORIDA -- 5.9%
Florida State GO (Aa, AA) 5.50% 10/01/08... 740 678,025
Jacksonville FL Electric Authority Revenue
(Aaa, AAA) 6.00% 07/01/12................ 760 778,050
Orlando FL Utilities Commission Water &
Electric
Revenue (Aaa, AAA)
6.30% 04/01/07........................... 685 717,537
Talahassee FL Electric Revenue First Lien
(Aaa, AAA) 6.10% 10/01/06................ 730 760,112
-------------
2,933,724
-------------
GEORGIA -- 0.9%
DeKalb County GA Water & Sewer Revenue
(Aaa, AAA) 5.25% 10/01/02................ 430 427,850
-------------
ILLINOIS -- 5.7%
Illinois State Sales Tax
Revenue (Aa, AAA)
5.75% 06/15/14........................... 1,050 1,004,062
5.50% 06/15/18.......................... 1,500 1,374,375
Lombard IL Multifamily Housing Revenue
(Clover Creek) (AA-, A)
6.50% 12/15/06........................... 420 426,825
-------------
2,805,262
-------------
</TABLE>

See Accompanying Notes to Financial Statements.

56
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
BEA MUNICIPAL BOND PORTFOLIO
STATEMENT OF NET ASSETS (CONTINUED)
FEBRUARY 28, 1995
(UNAUDITED)
<TABLE>
<CAPTION>
PAR
(000) VALUE
------------ -------------
INDIANA -- 1.9%
<S> <C> <C>
Indianapolis IN Public Improvement Board
Revenue (Aaa, AA+)
6.00% 01/10/18........................... $ 965 $ 954,144
-------------
KENTUCKY -- 1.0%
Kentucky State Turnpike Authority Resource
Recovery Road Revenue (Aaa, AAA)
6.125% 07/01/07.......................... 480 493,800
-------------
LOUISIANA -- 1.6%
New Orleans LA Home Mortgage Authority SOB
(Aaa, AAA)
6.25% 01/15/11........................... 635 631,031
Shreveport LA Home Mortgage Authority
Revenue (Aaa, AAA)
6.75% 09/01/10........................... 126 131,512
-------------
762,543
-------------
MARYLAND -- 1.9%
Baltimore MD New Public Housing Revenue
(Aaa, AAA)
5.00% 06/01/98........................... 25 24,969
Maryland State Transportation Authority
Projects Revenue (Aaa, AAA)
6.80% 07/01/16........................... 850 929,687
-------------
954,656
-------------
MASSACHUSETTS -- 0.9%
Massachusetts State Water Resources
Authority
General Revenue
Series 92A (A, A)
6.50% 07/15/19........................... 420 439,425
-------------
MISSISSIPPI -- 3.3%
Mississippi State GO
(Aaa, AAA)
6.20% 02/01/08........................... 1,550 1,615,875
-------------
<CAPTION>
PAR
(000) VALUE
------------ -------------
<S> <C> <C>
NEW YORK -- 29.0%
Municipal Assistance Corp. for the City of
New York Revenue (Aa, AAA)
8.25% 07/01/96........................... $ 355 $ 378,963
New York City GO (Aaa, AAA)
9.50% 08/15/95........................... 450 469,125
New York State Dormitory Authority Revenue
(MBIA Insured) (Aaa, AAA)
7.375% 07/01/16.......................... 605 679,869
New York State Dormitory Authority Revenue
(State University Athletic Facilities Ed-
ucation) (Baa1, BBB+)**
5.90% 05/15/04........................... 75 43,406
New York State Energy Research &
Development Authority Revenue (Electric
Facilities) (Aa3, A+)
9.00% 08/15/95........................... 900 932,625
New York State Energy Research &
Development Authority Revenue (Gas
Facilities) (A1, A)
9.00% 05/15/95........................... 1,015 1,041,644
New York State Housing Finance Agency
Revenue (State University Construction)
(Aaa, AAA)
8.30% 11/01/97........................... 565 623,619
New York State Medical Care Facility
Financial Agency Revenue (NR, AAA)
5.75% 08/15/19........................... 1,695 1,593,300
New York State Medical Care Facility
Finance Agency Revenue (Aa, A-)
10.50% 01/15/24.......................... 900 911,250
5.50% 02/15/22........................... 1,630 1,487,375
New York State Power Authority Revenue
(Aaa, AAA)
7.375% 01/01/96.......................... 570 594,938
7.875% 01/01/98.......................... 790 851,225
5.625% 01/01/10.......................... 475 474,406
</TABLE>

See Accompanying Notes to Financial Statements.

57
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
BEA MUNICIPAL BOND PORTFOLIO
STATEMENT OF NET ASSETS (CONTINUED)
FEBRUARY 28, 1995
(UNAUDITED)
<TABLE>
<CAPTION>
PAR
(000) VALUE
------------ -------------
NEW YORK -- (CONTINUED)
<S> <C> <C>
Rome NY Housing Development Corp. Mortgage
Revenue (Aaa, AAA)
7.00% 01/01/26........................... $ 410 $ 380,275
Suffolk County NY Water Authority Water
Revenue Series V (NR, NR)
6.75% 06/01/12........................... 1,160 1,244,100
Triborough Bridge & Tunnel Authority New
York Revenue (Aa, A+)
8.125% 01/01/98.......................... 525 572,250
Triborough Bridge & Tunnel Authority New
York SOB (Aaa, AAA)
7.125% 01/01/00.......................... 1,865 2,046,838
-------------
14,325,208
-------------
NORTH CAROLINA -- 3.3%
North Carolina Municipal Power Agency
Revenue (Aaa, AAA)
10.50% 01/01/10.......................... 1,180 1,638,725
-------------
OREGON -- 0.2%
Portland OR Hospital Facilities Authority
Revenue Series 91A (AMBAC Insured) (Aaa,
AAA)
6.70% 05/01/03........................... 115 120,175
-------------
<CAPTION>
PAR
(000) VALUE
------------ -------------
<S> <C> <C>
PUERTO RICO -- 7.0%
Commonwealth of Puerto Rico Aqueduct &
Sewer Authority Revenue (Ba, BB)
7.875% 07/01/98.......................... $ 1,540 $ 1,674,750
Commonwealth of Puerto Rico Aqueduct &
Sewer Authority Revenue (Aaa, AAA)
8.25% 07/01/96........................... 150 157,500
4.50% 07/01/02........................... 178 175,330
Commonwealth of Puerto Rico GO (Baa1, A)
5.40% 07/01/07........................... 1,310 1,228,125
University of Puerto Rico Revenue (A, A)
7.75% 06/01/96........................... 225 237,094
-------------
3,472,799
-------------
SOUTH DAKOTA -- 5.5%
Heartland Consumers Power District South
Dakota Electric Revenue (Aaa, AAA)
6.375% 01/01/16.......................... 455 471,494
7.00% 01/01/16........................... 2,035 2,220,694
-------------
2,692,188
-------------
TEXAS -- 4.5%
Austin TX Utilities Systems Revenue (NR,
NR)
5.375% 05/15/00.......................... 415 417,594
Bexar County TX Hospital Authority Revenue
(Aaa, AAA)
10.625% 07/01/95......................... 900 928,035
Dallas-Fort Worth TX International Airport
Revenue (Baa2, BB+)
7.25% 11/01/30........................... 280 277,900
</TABLE>

See Accompanying Notes to Financial Statements.

58
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
BEA MUNICIPAL BOND PORTFOLIO
STATEMENT OF NET ASSETS (CONCLUDED)
FEBRUARY 28, 1995
(UNAUDITED)
<TABLE>
<CAPTION>
PAR
(000) VALUE
------------ -------------
TEXAS -- (CONTINUED)
<S> <C> <C>
Houston TX Airport Systems Revenue (Aaa,
AAA)
5.80% 07/01/10........................... $ 400 $ 394,500
Houston TX Water Systems Revenue (Aaa, AAA)
5.50% 12/01/09........................... 155 150,156
-------------
2,168,185
-------------
UTAH -- 3.9%
Intermountain Power Agency Power Supply
Revenue Series 85 (Aa, AA)
8.75% 07/01/95........................... 530 548,502
9.20% 07/01/95........................... 360 371,326
6.00% 07/01/21........................... 420 407,925
Utah State School District
Finance Corperative Revenue (NR, AAA)
8.375% 08/15/98.......................... 535 575,794
-------------
1,903,547
-------------
VIRGINIA -- 1.9%
Fairfax County VA Redevelopment & Housing
Authority
Revenue (NR, AAA)
7.10% 04/01/19........................... 830 921,300
-------------
TOTAL MUNICIPAL BONDS
(Cost $45,317,218)..................... 45,992,230
-------------
SHORT-TERM INVESTMENT -- 5.0%
Smith Barney Tax Free Money Market Fund.... 2,460 2,460,379
-------------
TOTAL SHORT-TERM INVESTMENT
(Cost $2,460,379)...................... 2,460,379
-------------
<CAPTION>

VALUE
-------------
<S> <C> <C>
TOTAL INVESTMENTS AT VALUE -- 98.2%
(Cost 47,777,597*)......................... $ 48,452,609
OTHER ASSETS IN EXCESS OF
LIABILITIES -- 1.8%........................ 886,810
-------------
NET ASSETS (Applicable to 3,281,542 BEA
shares) -- 100.0%.......................... $ 49,339,419
-------------
-------------
NET ASSET VALUE, OFFERING PRICE AND
REDEMPTION PRICE PER SHARE
($49,339,419 DIVIDED BY 3,281,542)........ $15.04
-------------
-------------
</TABLE>

* Cost for Federal income tax purposes at February 28, 1995 is 47,429,314. The
gross appreciation (depreciation) on a tax basis is as follows:

<TABLE>
<S> <C>
Gross Appreciation............ $1,203,526
Gross Depreciation............ (180,231)
----------
Net Appreciation.............. $1,023,295
----------
----------
</TABLE>

** Zero Coupon Bonds. Rate shown is the effective yield.

The Moody's Investors Service, Inc. and Standard & Poor's Corporation's ratings
indicated are the most recent ratings available at February 28, 1995.

INVESTMENT ABBREVIATIONS

<TABLE>
<S> <C>
GO............................ General Obligations
RAW........................... Revenue Anticipation Warrant
SOB........................... Special Obligation Bonds
</TABLE>

See Accompanying Notes to Financial Statements.

59
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
BEA MUNICIPAL BOND FUND PORTFOLIO

STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED
FEBRUARY 28, 1995
(UNAUDITED)

<TABLE>
<S> <C>
INVESTMENT INCOME
Interest................................... $1,318,761
-----------
EXPENSES
Investment advisory fees................... 156,032
Administration service fee................. 33,435
Administration fee......................... 27,863
Transfer agent fees........................ 9,184
Custodian fees............................. 9,049
Registration fees.......................... 8,028
Printing fees.............................. 5,762
Organization expense....................... 3,909
Legal fees................................. 2,934
Miscellaneous fees......................... 2,498
Audit fees................................. 2,096
Insurance expense.......................... 566
Directors fees............................. 238
-----------
261,594
Less fees waived........................... (38,692)
-----------
TOTAL EXPENSES........................... 222,902
-----------
NET INVESTMENT INCOME........................ 1,095,859
-----------
REALIZED AND UNREALIZED GAIN(LOSS) ON
INVESTMENTS:
Net realized loss on investments........... (243,592)
Net unrealized appreciation on
investments............................... 725,141
-----------
NET GAIN ON INVESTMENTS...................... 481,549
-----------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS.................................. $1,577,408
-----------
-----------
</TABLE>

STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
FOR THE
PERIOD
JUNE 20, 1994
(1) TO
AUGUST 31,
1994
FOR THE -------------
SIX MONTHS
ENDED
FEBRUARY 28,
1995
-------------
(UNAUDITED)

<S> <C> <C>
Increase (decrease) in net assets:
Operations:
Net investment income.................... $ 1,095,859 $ 240,189
Net gain(loss) on investments............ 481,549 (60,805)
------------- -------------
Net increase in net assets resulting from
operations.............................. 1,577,408 179,384
------------- -------------
Distributions to shareholders:
Dividends to shareholders from net
investment income:
BEA shares ($.41 per share).............. (1,246,618) --
Distributions to shareholders from net
realized capital gains:
BEA shares ($.0532 per share).............. (174,436) --
------------- -------------
Total distributions to shareholders........ (1,421,054) --
------------- -------------
Net capital share transactions............... 6,873,129 42,130,402
------------- -------------
Total increase in net assets................. 7,029,483 42,309,786
Net Assets:
Beginning of period........................ 42,309,936 150
------------- -------------
End of period.............................. $ 49,339,419 $ 42,309,936
------------- -------------
------------- -------------

<FN>

(1) Commencement of Operations.
</TABLE>

See Accompanying Notes to Financial Statements.

60
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
BEA U.S. CORE EQUITY PORTFOLIO
STATEMENT OF NET ASSETS
FEBRUARY 28, 1995
(UNAUDITED)
<TABLE>
<CAPTION>
NUMBER
OF SHARES VALUE
------------- -------------
<S> <C> <C>
COMMON STOCKS -- 97.3%
AEROSPACE -- 5.4%
General Dynamics Corp...................... 14,202 $ 669,269
United Technologies Corp................... 6,500 431,438
-------------
1,100,707
-------------
BUILDING SUPPLIES/HOME IMPROVEMENT -- 2.5%
Vulcan Materials Co........................ 9,500 505,875
-------------
CHEMICALS -- 2.0%
The Scotts Co. Class A**................... 21,800 403,300
-------------
COMMUNICATIONS -- 3.8%
Capital Cities/ABC, Inc.................... 3,220 284,970
Granite Broadcasting Corp. Convertible
Preferred................................ 12,200 488,000
-------------
772,970
-------------
ELECTRONICS -- 4.0%
General Electric Co........................ 8,000 439,000
Litton Industries, Inc.**.................. 10,500 383,250
-------------
822,250
-------------
ENERGY -- 10.0%
Exxon Corp................................. 8,000 512,000
Schlumberger, Ltd.......................... 4,000 227,500
Texaco, Inc................................ 8,500 541,875
Tidewater, Inc............................. 20,000 392,500
Valero Energy Corp. Convertible
Preferred................................ 9,000 371,250
-------------
2,045,125
-------------
ENTERTAINMENT -- 2.2%
Gtech Holdings Corp.**..................... 23,100 459,112
-------------
FINANCIAL SERVICES -- 4.7%
Dean Witter Discover & Co.................. 12,168 491,283
Student Loan Marketing
Association.............................. 12,705 468,497
-------------
959,780
-------------
FOOD -- 7.9%
Coca-Cola Co............................... 9,000 495,000
McDonald's Corp............................ 17,000 565,250

<CAPTION>
NUMBER
OF SHARES VALUE
------------- -------------
<S> <C> <C>
FOOD -- (CONTINUED)

Nabisco Holdings Corp.**................... 20,000 $ 555,000
-------------
1,615,250
-------------
HOTELS -- 1.3%
Marriot International, Inc................. 8,300 257,300
-------------
INSURANCE -- 7.2%
Mutual Risk Management Ltd................. 19,000 551,000
TIG Holdings, Inc.......................... 22,588 468,701
Transnational Re Corp.
Class A**................................ 12,400 248,000
Western National Corp...................... 17,200 204,250
-------------
1,471,951
-------------
LEASING -- 2.3%
Trinet Corporate Realty Trust.............. 17,000 463,250
-------------
MACHINERY (MINING) -- 2.6%
Minerals Technologies, Inc................. 18,095 531,541
-------------
MANUFACTURING -- 5.5%
Allied-Signal, Inc......................... 13,000 494,000
Goodyear Tire & Rubber Co.................. 17,000 626,875
-------------
1,120,875
-------------
PACKAGING -- 0.9%
Owens-Illinois, Inc.**..................... 17,895 187,898
-------------
PAPER -- 7.1%
Mead Corp.................................. 8,000 438,000
Repap Enterprises, Inc.**.................. 65,000 457,031
Scott Paper Co............................. 7,000 554,750
-------------
1,449,781
-------------
PHARMACEUTICAL -- 9.1%
Barr Laboratories, Inc.**.................. 20,000 415,000
Marion Merrell Dow, Inc.................... 40,000 995,000
Smithkline Beecham PLC ADR................. 11,100 431,513
-------------
1,841,513
-------------
PRINTING AND PUBLISHING -- 2.7%
Harcourt General, Inc...................... 14,700 545,737
-------------
RETAIL DEPARTMENT STORES -- 5.0%
Mac Frugals Bargains
Close-Outs, Inc.**....................... 27,672 470,424
</TABLE>

See Accompanying Notes to Financial Statements.

61
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
BEA U.S. CORE EQUITY PORTFOLIO
STATEMENT OF NET ASSETS (CONCLUDED)
FEBRUARY 28, 1995
(UNAUDITED)
<TABLE>
<CAPTION>
NUMBER
OF SHARES VALUE
------------- -------------
COMMON STOCKS -- (CONTINUED)
<S> <C> <C>
RETAIL DEPARTMENT STORES -- (CONTINUED)
Michael Anthony Jewelers, Inc.**........... 15,700 $ 58,875
Wal-Mart Stores, Inc....................... 20,700 491,625
-------------
1,020,924
-------------
RETAIL-SPECIALTY -- 0.8%
Cole National Corporation Class A**........ 20,300 172,550
-------------
UTILITIES -- 7.7%
American Telephone and Telegraph Corp...... 11,000 569,250
Airtouch Communications, Inc.**............ 16,511 449,925
Pacific Telesis Group...................... 8,611 258,330
U S West, Inc.............................. 7,500 290,625
-------------
1,568,130
-------------
WHOLESALE GROCERIES & RELATED -- 2.6%
McKesson Corp.............................. 14,300 527,312
-------------
TOTAL COMMON STOCKS
(Cost $ 19,127,669).................... 19,843,131
-------------
<CAPTION>

PAR
(000) VALUE
------------- -------------
<S> <C> <C>
SHORT-TERM INVESTMENT -- 0.4%
BBH Grand Cayman U.S Dollar Time Deposit
5.00% 03/07/95........................... $ 74 $ 74,000
-------------
TOTAL SHORT-TERM INVESTMENT
(Cost $74,000).......................... 74,000
-------------
TOTAL INVESTMENTS AT VALUE -- 97.7%
(Cost $19,201,669*)...................... $ 19,917,131
OTHER ASSETS IN EXCESS OF
LIABILITIES -- 2.3%........................ 477,107
-------------
NET ASSETS (Applicable to 1,333,430 BEA
shares) -- 100.0%.......................... $ 20,394,238
-------------
-------------
NET ASSET VALUE, OFFERING PRICE AND
REDEMPTION PRICE PER SHARE ($20,394,238
DIVIDED BY 1,333,430)..................... $15.29
-------------
-------------
</TABLE>

* Cost for Federal income tax purposes at February 28, 1995 is $18,546,437. The
gross appreciation (depreciation) on a tax basis is as follows:

<TABLE>
<S> <C>
Gross Appreciation......................... $ 1,961,752
Gross Depreciation......................... (591,058)
-----------
Net Appreciation........................... $ 1,370,694
-----------
-----------
</TABLE>

** Non-income producing securities.

See Accompanying Notes to Financial Statements.

62
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
BEA U.S. CORE EQUITY

STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED
FEBRUARY 28, 1995
(UNAUDITED)

<TABLE>
<S> <C>
INVESTMENT INCOME
Dividends.................................. $ 220,440
Interest................................... 33,376
---------
TOTAL INVESTMENT INCOME.................. 253,816
---------
EXPENSES
Investment advisory fees................... 65,273
Custodian fees 17,370
Administration service fee................. 13,055
Administration fee......................... 10,879
Registration fees.......................... 9,328
Transfer agent fees........................ 8,634
Printing fees.............................. 5,924
Legal fees................................. 2,617
Organization expense....................... 2,576
Miscellaneous fees......................... 1,815
Audit fees................................. 1,234
Insurance expense.......................... 263
Directors fees............................. 80
---------
139,048
Less fees waived........................... (52,017)
---------
TOTAL EXPENSES........................... 87,031
---------
NET INVESTMENT INCOME........................ 166,785
---------
REALIZED AND UNREALIZED GAIN(LOSS) ON
INVESTMENTS:
Net realized loss on investments........... (295,863)
Net unrealized appreciation on
investments............................... 715,462
---------
NET GAIN ON INVESTMENTS...................... 419,599
---------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS.................................. $ 586,384
---------
---------
</TABLE>

STATEMENTS OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
FOR THE
PERIOD
SEPTEMBER 1,
1994(1)
TO FEBRUARY
28, 1995
-------------
(UNAUDITED)
<S> <C>
Increase (decrease) in net assets:
Operations:
Net investment income.................... $ 166,785
Net gain on investments.................. 419,599
-------------
Net increase in net assets resulting from
operations.............................. 586,384
-------------
Distributions to shareholders:
Dividends to shareholders from net
investment income:
BEA shares ($.08 per share).............. (102,838)
-------------
Net capital share transactions............... 19,910,542
-------------
Total increase in net assets................. 20,394,088
Net Assets:
Beginning of period........................ 150
-------------
End of period.............................. $ 20,394,238
-------------
-------------
<FN>
(1) Commencement of Operations.
</TABLE>

See Accompanying Notes to Financial Statements.

63
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)

<TABLE>
<CAPTION>
BEA INTERNATIONAL EQUITY PORTFOLIO BEA EMERGING MARKETS EQUITY PORTFOLIO
------------------------------------- -------------------------------------
FOR THE FOR THE
YEAR ENDED AUGUST YEAR ENDED AUGUST
31, 1994 31, 1994
FOR THE ----------------- FOR THE -----------------
SIX MONTHS ENDED SIX MONTHS ENDED
FEBRUARY 28, 1995 FEBRUARY 28, 1995
----------------- -----------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
Net asset value, beginning of period......... $ 20.73 $ 18.73 $ 24.58 $ 18.38
----------------- ----------------- ----------------- -----------------
Income from investment operations
Net investment income (loss)............. (0.03) 0.05 (0.04) (0.03)
Net gain (loss) on securities (both
realized and unrealized)............... (3.58) 2.60 (7.63) 6.64
----------------- ----------------- ----------------- -----------------
Total from investment operations......... (3.61) 2.65 (7.67) 6.61
----------------- ----------------- ----------------- -----------------
Less Distributions
Dividends from net investment income..... 0.00 (0.05) (0.07) (0.09)
Distributions from capital gains......... (0.66) (0.60) (0.92) (0.32)
----------------- ----------------- ----------------- -----------------
Total distributions...................... (0.66) (0.65) (0.99) (0.41)
----------------- ----------------- ----------------- -----------------
Net asset value, end of period........... $ 16.46 $ 20.73 $ 15.92 $ 24.58
----------------- ----------------- ----------------- -----------------
----------------- ----------------- ----------------- -----------------
Total return................................. (17.69%)(c)(d) 14.23%(d) (31.91%)(c)(d) 35.99%(d)
Ratio/Supplemental Data
Net assets, end of period.................. $683,197,558 $767,189,791 $108,589,416 $140,675,379
Ratio of expenses to average net assets.... 1.25%(a)(b) 1.25%(a) 1.50%(a)(b) 1.50%(a)
Ratio of net investment income (loss) to
average net assets....................... (.31%)(b) 0.33% (.65%)(b) (0.02%)
Portfolio turnover rate.................... 39%(c) 104% 33%(c) 54%

<FN>

(a) Without the waiver of advisory fees and administration fees, the ratios of
expenses to average net assets for the BEA International Equity Portfolio
would have been 1.28% annualized for the six months ended February 28, 1995
and 1.30% or the year ended August 31, 1994. Without the waiver of advisory
fees and administration fees and without the reimbursement of operating
expenses, the ratios of expenses to average net assets for the BEA Emerging
Markets Equity Portfolio would have been 1.67% annualized for the six months
ended February 28, 1995 and 2.01% for the year ended August 31, 1994.
(b) Annualized.
(c) Not annualized.
(d) Redemption fees not reflected in total return.
</TABLE>

See Accompanying Notes to Financial Statements.

64
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)

<TABLE>
<CAPTION>
BEA U.S. CORE FIXED INCOME PORTFOLIO BEA GLOBAL FIXED INCOME PORTFOLIO
------------------------------------- -------------------------------------
FOR THE PERIOD FOR THE PERIOD
APRIL 1, 1994* TO JUNE 28, 1994* TO
AUGUST 31, 1994 AUGUST 31, 1994
FOR THE ----------------- FOR THE -----------------
SIX MONTHS ENDED SIX MONTHS ENDED
FEBRUARY 28, 1995 FEBRUARY 28, 1995
----------------- -----------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
Net asset value, beginning of period......... $ 14.77 $ 15.00 $ 15.00 $ 15.00
----------------- ----------------- ----------------- -----------------
Income from investment operations
Net investment income.................... 0.44 0.42 0.49 0.15
Net loss on securities (both realized and
unrealized)............................ (0.18) (0.41) (0.09) (0.15)
----------------- ----------------- ----------------- -----------------
Total from investment operations......... 0.26 0.01 0.40 --
----------------- ----------------- ----------------- -----------------
Less Distributions
Dividends from net investment income..... (0.46) (0.24) (0.41) --
Distributions from capital gains......... -- -- -- --
----------------- ----------------- ----------------- -----------------
Total distributions...................... (0.46) (0.24) (0.41) --
----------------- ----------------- ----------------- -----------------
Net asset value, end of period........... $ 14.57 $ 14.77 $ 14.99 $ 15.00
----------------- ----------------- ----------------- -----------------
----------------- ----------------- ----------------- -----------------
Total return................................. 1.87%(c) 0.17%(c) 2.72%(c) 0.00%(c)
Ratio/Supplemental Data
Net assets, end of period.................. $58,823,312 $30,015,818 $18,141,720 $6,300,360
Ratio of expenses to average net assets.... 0.50%(a)(b) 0.50%(a)(b) 0.75%(a)(b) 0.75%(a)(b)
Ratio of net investment income (loss) to
average net assets....................... 6.53%(b) 6.04%(b) 7.37%(b) 5.64%(b)
Portfolio turnover rate.................... 220%(c) 186%(c) 27%(c) 0%(c)

<FN>

(a) Without the waiver of advisory fees and administration fees, the ratios of
expenses to average net assets for the BEA U.S. Core Fixed Income Portfolio
would have been .87% annualized for the six months ended February 28, 1995
and .99% for the year ended August 31, 1994. Without the waiver of advisory
fees and administration fees and without the reimbursement of operating
expenses, the ratios of expenses to average net assets for the BEA Global
Fixed Income Portfolio would have been 1.34% annualized for the six months
ended February 28, 1995 and 1.92% for the year ended August 31, 1994.
(b) Annualized.
(c) Not annualized.
* Commencement of operations
</TABLE>

See Accompanying Notes to Financial Statements.

65
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)

<TABLE>
<CAPTION>
BEA STRATEGIC FIXED INCOME PORTFOLIO BEA MUNICIPAL BOND FUND PORTFOLIO
------------------------------------- -------------------------------------
FOR THE FOR THE PERIOD
YEAR ENDED JUNE 20, 1994* TO
AUGUST 31, 1994 AUGUST 31, 1994
FOR THE ----------------- FOR THE -----------------
SIX MONTHS ENDED SIX MONTHS ENDED
FEBRUARY 28, 1995 FEBRUARY 28, 1995
----------------- -----------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
Net asset value, beginning of period......... $ 15.94 $ 16.94 $ 15.06 $ 15.00
----------------- ----------------- ----------------- -----------------
Income from investment operations
Net investment income (loss)............. 0.72 1.20 0.35 0.09
Net gain (loss) on securities (both
realized and unrealized)............... (1.49) (0.77) 0.09 (0.03)
----------------- ----------------- ----------------- -----------------
Total from investment operations......... (0.77) 0.43 0.44 0.06
----------------- ----------------- ----------------- -----------------
Less Distributions
Dividends from net investment income..... (0.75) (1.43) (0.41) --
Distributions from capital gains......... -- -- (0.05) --
----------------- ----------------- ----------------- -----------------
Total distributions...................... (0.75) (1.43) (0.46) --
----------------- ----------------- ----------------- -----------------
Net asset value, end of period........... $ 14.42 $ 15.94 $ 15.04 $ 15.06
----------------- ----------------- ----------------- -----------------
----------------- ----------------- ----------------- -----------------
Total return................................. (5.01%)(c)(d) 2.24%(d) 3.11%(c) 0.40%(c)
Ratio/Supplemental Data
Net assets, end of period.................. $134,450,505 $143,517,472 $49,339,419 $42,309,936
Ratio of expenses to average net assets.... 1.00%(a)(b) 1.00%(a) 1.00%(a)(b) 1.00%(a)(b)
Ratio of net investment income (loss) to
average net assets....................... 9.47%(b) 7.73% 4.92%(b) 3.27%(b)
Portfolio turnover rate.................... 49%(c) 121% 23%(c) 9%(c)
<FN>

(a) Without the waiver of advisory fees and administration fees, the ratios of
expenses to average net assets for the BEA Stategic Fixed Income Portfolio
would have been 1.08% annualized for the six months ended February 28, 1995
and 1.13% for the year ended August 31, 1994. Without the waiver of advisory
fees and administration fees, the ratio of expenses to average net assets
for the BEA Municipal Bond Fund Portfolio would have been 1.17% annualized
for the six months ended February 28, 1995 and 1.34% annualized for the year
ended August 31, 1994.
(b) Annualized.
(c) Not annualized.
(d) Redemption fees not reflected in total return.
* Commencement of operations
</TABLE>

See Accompanying Notes to Financial Statements.

66
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)

<TABLE>
<CAPTION>
BEA U.S. CORE
EQUITY PORTFOLIO
-----------------
FOR THE PERIOD
SEPTEMBER 1,
1994* TO
FEBRUARY 28, 1995
-----------------
(UNAUDITED)
<S> <C>
Net asset value, beginning of period...... $ 15.00
-----------------
Income from investment operations
Net investment income................. 0.13
Net gain on securities (both realized
and unrealized)...................... 0.24
-----------------
Total from investment operations...... 0.37
-----------------
Less Distributions
Dividends from net investment
income............................... (0.08)
Distributions from capital gain....... --
-----------------
Total distributions................... (0.08)
-----------------
Net asset value, end of period........ $ 15.29
-----------------
-----------------
Total return.............................. 2.52%(c)
Ratio/Supplemental Data
Net assets, end of period............... $20,394,238
Ratio of expenses to average net
assets................................. 1.00%(a)(b)
Ratio of net investment income to
average net assets..................... 1.92%(b)
Portfolio turnover rate................. 70%(c)
<FN>

(a) Without the waiver of advisory fees and administration fees, the ratios of
expenses to average net assets for the BEA U.S. Core Equity Portfolio would
have been 1.60% annualized for the six months ended February 28, 1995.
(b) Annualized.
(c) Not annualized.
* Commencement of operations
</TABLE>

See Accompanying Notes to Financial Statements.

67
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
NOTES TO FINANCIAL STATEMENTS
FEBRUARY 28, 1995
(UNAUDITED)

NOTE 1.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The RBB Fund, Inc. (the "Fund") is registered under the Investment Company
Act of 1940, as amended, as an open-end management investment company. The Fund
was incorporated in Maryland on February 29, 1988, and currently has sixteen
investment Portfolios, seven of which are included in these financial
statements.

The Fund has authorized capital of thirty billion shares of common stock of
which 10.7 billion are currently classified into sixty-two classes. Each class
represents an interest in one of eighteen investment portfolios of the Fund. The
classes have been grouped into fifteen separate "families", eight of which have
begun investment operations: the BEA Family, the RBB Family, the Sansom Street
Family, the Bedford Family, the Cash Preservation Family, the Laffer/Canto
Family, the Warburg Pincus Family and the Bradford Family. The BEA Family
represents interests in seven portfolios which are covered by this report.

A) SECURITY VALUATION -- Portfolio securities for which market
quotations are readily available are valued at market value, which is
currently determined using the last reported sales price. If no sales are
reported, as in the case of some securities traded over-the-counter,
portfolio securities are valued at the mean between the last reported bid
and asked prices. All other securities and assets are valued as determined
in good faith by the Board of Directors. Short-term obligations with
maturities of 60 days or less are valued at amortized cost which
approximates market value.

B) FOREIGN CURRENCY TRANSACTIONS -- Transactions denominated in
foreign currencies are recorded in the Portfolio's records at the current
prevailing exchange rates. Asset and liability accounts that are denominated
in a foreign currency are adjusted daily to reflect current exchange rates.
Transaction gains or losses resulting from changes in exchange rates during
the reporting period or upon settlement of the foreign currency transaction
are reported in operations for the current period. It is not practical to
isolate that portion of both realized and unrealized gains and losses on
investments in the statement of operations that result from fluctuations in
foreign currency exchange rates. The Fund reports certain foreign currency
related transactions as components of realized gains for financial reporting
purposes, whereas such components are treated as ordinary income (loss) for
Federal income tax purposes.

C) SECURITY TRANSACTIONS AND INVESTMENT INCOME -- Security
transactions are accounted for on the trade date. The cost of investments
sold is determined by use of the specific identification method for both
financial reporting and income tax purposes. Interest income is recorded on
the accrual basis. Dividends are recorded on the ex-dividend date. Certain
expenses, principally transfer agent and printing, are class specific
expenses and vary by class. Expenses not directly attributable to a specific
portfolio or class are allocated based on relative net assets of each
portfolio and class, respectively.

D) DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS -- Dividends from net
investment income and net realized capital gains will be declared and paid
at least annually. The character of distributions made during the year for
net investment income or net realized gains may differ from their ultimate
characterization for federal income tax purposes due to GAAP/tax differences
in the character of income and expense recognition. These differences are
primarily due to differing treatments for net operating losses,
mortgage-backed securities, passive foreign investment companies, and
forward foreign currency contracts.

E) FEDERAL INCOME TAXES -- No provision is made for Federal taxes as
it is the Fund's intention to have each portfolio qualify for and elect the
tax treatment applicable to regulated investment companies under the
Internal Revenue Code and make the requisite distributions to its
shareholders which will be sufficient to relieve it from Federal income and
excise taxes.

F) OTHER -- Securities denominated in currencies other than U.S.
dollars are subject to changes in value due to fluctuations in exchange
rates.

68
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FEBRUARY 28, 1995
(UNAUDITED)

NOTE 1.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Some countries in which the portfolios invest require governmental
approval for the repatriation of investment income, capital or the proceeds
of sales of securities by foreign investors. In addition, if there is a
deterioration in a country's balance of payments or for other reasons, a
country may impose temporary restrictions on foreign capital remittances
abroad.

The securities exchanges of certain foreign markets are substantially
smaller, less liquid and more volatile than the major securities markets in
the United States. Consequently, acquisition and deposition of securities by
the portfolios may be inhibited. In addition, a significant proportion of
the aggregate market value of equity securities listed on the major
securities exchanges in emerging markets are held by a smaller number of
investors. This may limit the number of shares available for acquisition or
disposition by the Fund.

NOTE 2.TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES
Pursuant to Investment Advisory Agreements, BEA Associates ("BEA"), a U.S.
investment advisory firm, serves as investment advisor for each of the seven
portfolios described herein.

For its advisory services, BEA is entitled to receive the following fees,
computed daily and payable monthly on a portfolio's average daily net assets:

<TABLE>
<CAPTION>
PORTFOLIO ANNUAL RATE
- -------------------------------------- --------------------------------------
<S> <C>
BEA International Equity Portfolio 0.80% of average daily net assets
BEA Emerging Markets Equity Portfolio 1.00% of average daily net assets
BEA U.S. Core Fixed Income Portfolio 0.375% of average daily net assets
BEA Global Fixed Income Portfolio 0.50% of average daily net assets
BEA Strategic Fixed Income Portfolio 0.70% of average daily net assets
BEA Municipal Bond Fund Portfolio 0.70% of average daily net assets
BEA U.S. Core Equity Portfolio 0.75% of average daily net assets
</TABLE>

BEA may, at its discretion, voluntarily waive all or any portion of its
advisory fee for either of the portfolios. For the six months ended February 28,
1995, advisory fees and waivers for each of the seven investment portfolios were
as follows:

<TABLE>
<CAPTION>
GROSS NET
ADVISORY FEE WAIVER ADVISORY FEE
-------------- -------------- --------------
<S> <C> <C> <C>
BEA International Equity Portfolio $ 2,977,557 $ -- $ 2,977,557
BEA Emerging Markets Equity
Portfolio 640,986 (33,702) 607,284
BEA U.S. Core Fixed Income
Portfolio 100,540 (55,719) 44,821
BEA Global Fixed Income Portfolio 38,816 (34,358) 4,458
BEA Strategic Fixed Income
Portfolio 488,279 -- 488,279
BEA Municipal Bond Fund Portfolio 156,032 (14,174) 141,858
BEA U.S. Core Equity Portfolio 65,273 (42,444) 22,829
</TABLE>

PFPC Inc. ("PFPC"), an indirect wholly owned subsidiary of PNC Bank Corp.,
serves as each portfolio's transfer and dividend disbursing agent. In addition,
PFPC serves as administrator for each of the seven portfolios. PFPC's
administration fee is computed daily and payable monthly at an annual rate of
.125% of each Portfolio's average daily net assets.

69
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FEBRUARY 28, 1995
(UNAUDITED)

NOTE 2.TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES (CONTINUED)
PFPC may, at its discretion, voluntarily waive all or any portion of its
administration fee for any of the portfolios. For the six months ended February
28, 1995, administration fees for each of the seven investment portfolios were
as follows:

<TABLE>
<CAPTION>
GROSS NET
ADMINISTRATION ADMINISTRATION
FEE WAIVER FEE
-------------- -------- --------------
<S> <C> <C> <C>
BEA International Equity Portfolio $465,243 $(31,334) $433,909
BEA Emerging Markets Equity Portfolio 80,121 (13,100) 67,021
BEA U.S. Core Fixed Income Portfolio 33,513 (10,724) 22,789
BEA Global Fixed Income Portfolio 9,704 (1,941) 7,763
BEA Strategic Fixed Income Portfolio 87,193 (6,060) 81,133
BEA Municipal Bond Fund Portfolio 27,863 -- 27,863
BEA U.S. Core Equity Portfolio 10,879 -- 10,879
</TABLE>

Counsellors Funds Service, Inc. ("Counsellors Service"), a wholly-owned
subsidiary of Counsellors Securities Inc., serves as administrative services
agent. An administrative service fee is computed daily and payable monthly at an
annual rate of .15% of each portfolio's average daily net assets.

NOTE 3.PURCHASES AND SALES OF SECURITIES
For the six months ended February 28, 1995, purchases and sales of
investment securities (other than short-term investments) and United States
Government Obligations were as follows:

<TABLE>
<CAPTION>
INVESTMENT SECURITIES U.S. GOVERNMENT OBLIGATIONS
----------------------------- ---------------------------
PURCHASES SALES PURCHASES SALES
------------- ------------- ------------ ------------
<S> <C> <C> <C> <C>
BEA International Equity Portfolio $353,453,919 $286,690,006 $ -- $ --
BEA Emerging Markets Equity Portfolio 53,725,897 40,766,093 -- --
BEA U.S. Core Fixed Income Portfolio 98,710,277 97,003,958 26,138,121 15,580,303
BEA Global Fixed Income Portfolio 16,508,454 2,756,200 -- 1,084,770
BEA Strategic Fixed Income Portfolio 67,066,241 61,208,969 11,714,087 1,437,305
BEA Municipal Bond Fund Portfolio 14,740,579 8,851,267 -- --
BEA U.S. Core Equity Portfolio 26,948,988 7,525,591 -- --
</TABLE>

For the six months ended February 28, 1995, purchases include $15,177,455,
$4,851,207, $5,441,630, $1,845,979, $10,284,638, and $13,326,685 of investment
securities received from shareholders in exchange for 800,255 shares, 279,931
shares, 380,823 shares, 123,891 shares, 707,868 shares, and 889,491 shares sold
by the BEA International Equity Portfolio, BEA Emerging Markets Equity
Portfolio, BEA U.S. Core Fixed Income Portfolio, BEA Global Fixed Income
Portfolio, BEA Municipal Bond Fund Portfolio, and BEA U.S. Core Equity
Portfolio, respectively.

70
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FEBRUARY 28, 1995
(UNAUDITED)

NOTE 4.CAPITAL SHARES
Transactions in capital shares for each period were as follows:
<TABLE>
<CAPTION>
BEA INTERNATIONAL EQUITY BEA EMERGING MARKETS EQUITY
PORTFOLIO PORTFOLIO
------------------------------------------------------ ------------------------------------------------------
FOR THE SIX MONTHS ENDED FOR THE YEAR ENDED FOR THE SIX MONTHS ENDED FOR THE YEAR ENDED
FEBRUARY 28, 1995 AUGUST 31, 1994 FEBRUARY 28, 1995 AUGUST 31, 1994
-------------------------- -------------------------- -------------------------- --------------------------
SHARES VALUE SHARES VALUE SHARES VALUE SHARES VALUE
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
(UNAUDITED) (UNAUDITED)

<S> <C> <C> <C> <C> <C> <C> <C> <C>
Shares sold 4,403,495 $ 85,157,446 24,447,890 $481,771,890 897,619 $ 16,398,677 4,675,645 $105,692,908
Shares issued
in
reinvestment
of dividends 1,447,841 25,887,403 512,147 10,268,548 290,749 5,614,374 41,695 1,032,357
Shares
repurchased,
net of
redemption
fees (1,363,338) (23,928,868) (2,274,120) (44,138,125) (91,139) (1,715,224) (190,598) (4,055,553)
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
Net increase 4,487,998 $ 87,115,981 22,685,917 $447,902,313 1,097,229 $ 20,297,827 4,526,742 $102,669,712
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
BEA Shares
Authorized 500,000,000 500,000,000 500,000,000 500,000,000
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------

BEA U.S. CORE FIXED INCOME BEA GLOBAL FIXED INCOME
PORTFOLIO PORTFOLIO
------------------------------------------------------ ------------------------------------------------------
FOR THE PERIOD APRIL 1, FOR THE PERIOD JUNE 28,
1994 1994
(COMMENCEMENT OF (COMMENCEMENT OF
FOR THE SIX MONTHS ENDED OPERATIONS) TO FOR THE SIX MONTHS ENDED OPERATIONS) TO
FEBRUARY 28, 1995 AUGUST 31, 1994 FEBRUARY 28, 1995 AUGUST 31, 1994
-------------------------- -------------------------- -------------------------- --------------------------
SHARES VALUE SHARES VALUE SHARES VALUE SHARES VALUE
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C> <C> <C>

Shares sold 1,931,810 $ 28,017,089 2,905,078 $ 43,523,808 766,650 $ 11,427,093 420,000 $ 6,300,000
Shares issued
in
reinvestment
of dividends 103,644 1,467,800 33,914 491,074 23,960 351,383 -- --
Shares
repurchased,
net of
redemption
fees (28,825) (413,020) (907,066) (13,512,710) -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
Net increase 2,006,629 $ 29,071,869 2,031,926 $ 30,502,172 790,610 $ 11,778,476 420,000 $ 6,300,000
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
BEA Shares
Authorized 500,000,000 500,000,000 500,000,000 500,000,000
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
</TABLE>

71
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FEBRUARY 28, 1995
(UNAUDITED)

NOTE 4.CAPITAL SHARES (CONTINUED)
Transactions in capital shares for each period were as follows:

<TABLE>
<CAPTION>
BEA MUNICIPAL BOND
PORTFOLIO
BEA STRATEGIC FIXED INCOME ------------------------------------------------------
PORTFOLIO FOR THE PERIOD JUNE 20,
------------------------------------------------------ 1994
(COMMENCEMENT OF
FOR THE SIX MONTHS ENDED FOR THE YEAR ENDED FOR THE SIX MONTHS ENDED OPERATIONS) TO
FEBRUARY 28, 1995 AUGUST 31, 1994 FEBRUARY 28, 1995 AUGUST 31, 1994
-------------------------- -------------------------- -------------------------- --------------------------
SHARES VALUE SHARES VALUE SHARES VALUE SHARES VALUE
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
(UNAUDITED) (UNAUDITED)

<S> <C> <C> <C> <C> <C> <C> <C> <C>
Shares sold 296,659 $ 4,651,154 2,707,420 $ 46,530,464 790,571 $ 11,473,411 2,820,340 $ 42,291,402
Shares issued
in
reinvestment
of dividends 444,606 6,737,621 603,424 10,123,281 74,392 1,078,530 -- --
Shares
repurchased,
net of
redemption
fees (419,393) (6,476,305) (116,840) (1,906,710) (393,088) (5,678,812) (10,683) (161,000)
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
Net increase 321,872 $ 4,912,470 3,194,004 $ 54,747,035 471,875 $ 6,873,129 2,809,657 $ 42,130,402
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
BEA Shares
Authorized 500,000,000 500,000,000 500,000,000 500,000,000
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
</TABLE>

<TABLE>
<CAPTION>
BEA U.S. CORE EQUITY
PORTFOLIO
--------------------------
FOR THE PERIOD
SEPTEMBER 1, 1994
(COMMENCEMENT OF OPERATIONS) TO
FEBRUARY 28, 1995
--------------------------
SHARES VALUE
------------ ------------
(UNAUDITED)

<S> <C> <C>
Shares sold 1,343,175 $ 20,062,743
Shares issued
in
reinvestment
of dividends 7,112 102,838
Shares
repurchased,
net of
redemption
fees (16,857) (255,039)
------------ ------------
Net increase 1,333,430 $ 19,910,542
------------ ------------
------------ ------------
BEA Shares
Authorized 500,000,000
------------
------------
</TABLE>

72
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FEBRUARY 28, 1995
(UNAUDITED)

NOTE 5.NET ASSETS
At February 28, 1995, net assets consisted of the following (unaudited):

<TABLE>
<CAPTION>
BEA BEA EMERGING
INTERNATIONAL MARKETS BEA U.S. CORE BEA GLOBAL BEA STRATEGIC BEA MUNICIPAL BEA U.S. CORE
EQUITY EQUITY FIXED INCOME FIXED INCOME FIXED INCOME BOND FUND EQUITY
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
------------- ------------- ------------- ------------- ------------- ------------- -------------

<S> <C> <C> <C> <C> <C> <C> <C>
Capital Paid-In $768,080,699 $141,385,906 $ 59,574,192 $ 18,078,626 $148,621,236 $ 48,755,890 $ 19,268,817
Accumulated Net
Investment
Income (Loss) (3,669,382) (875,466) 641,429 284,192 2,374,506 89,429 63,947
Accumulated Net
Realized Loss
on Security
and Foreign
Exchange
Transactions (21,103,564) (2,917,348) (1,344,284) (103,480) (1,526,054) (202,971) 346,012
Net Unrealized
Appreciation
(Depreciation)
on
Investments
and Foreign
Currency
Contracts (60,110,195) (29,003,676) (48,025) (117,618) (15,019,183) 697,071 715,462
------------- ------------- ------------- ------------- ------------- ------------- -------------
$683,197,558 $108,589,416 $ 58,823,312 $ 18,141,720 $134,450,505 $ 49,339,419 $ 20,394,238
------------- ------------- ------------- ------------- ------------- ------------- -------------
------------- ------------- ------------- ------------- ------------- ------------- -------------
</TABLE>

NOTE 6.RESTRICTED SECURITIES
Certain of the BEA International Equity Portfolio's investments are
restricted as to resale and are valued at the direction of the Fund's Board of
Directors in good faith, at fair value, after taking into consideration
appropriate indications of value available. The table below shows the number of
shares held, the acquisition date, value as of February 28, 1995, percentage of
net assets which the securities comprise, aggregate cost and unit value of the
securities.

<TABLE>
<CAPTION>
NUMBER OF ACQUISITION 02/28/95 PERCENTAGE OF VALUE PER
SHARES DATE FAIR VALUE NET ASSETS SECURITY COST UNIT
-------------- ------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
Sodigas Pampeana 55 1/14/93 $ 841,061 0.1% $ 566,038 $15,292
Sodigas del Sur 55 1/14/93 742,112 0.1% 384,038 13,493
------------- -------------
$ 1,583,173 $ 950,076
------------- -------------
------------- -------------
</TABLE>

NOTE 7.FORWARD FOREIGN CURRENCY CONTRACTS
The Funds will generally enter into forward foreign currency exchange
contracts as a way of managing foreign exchange rate risk. A Fund may enter into
these contracts to fix the U.S. dollar value of a security that it has agreed to
buy or sell for the period between the date the trade was entered into and the
date the security is delivered and paid for. A Fund may also use these contracts
to hedge the U.S. dollar value of securities it already owns denominated in
foreign currencies.

73
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONCLUDED)
FEBRUARY 28, 1995
(UNAUDITED)

NOTE 7.FORWARD FOREIGN CURRENCY CONTRACTS (CONTINUED)
Forward foreign currency contracts are valued at the forward rate, and are
marked-to-market daily. The change in market value is recorded by the Fund as an
unrealized gain or loss. When the contract is closed, the Fund records a
realized gain or loss equal to the difference between the value of the contract
at the time it was opened and the value at the time it was closed.

The use of forward foreign currency contracts does not eliminate
fluctuations in the underlying prices of the Fund's Portfolio Securities, but it
does establish a rate of exchange that can be achieved in the future. Although
forward foreign currency contracts limit the risk of loss due to a decline in
the value of the hedged currency, they also limit any potential gain that might
result should the value of the currency increase. In addition, the Funds could
be exposed to risks if the counterparties to the contracts are unable to meet
the terms of their contracts. During the six month period ended February 28,
1995, the BEA Global Fixed Income Portfolio entered into forward foreign
currency contracts.

The BEA Global Fixed Income Portfolio's open Forward Foreign Currency
Contracts at February 28, 1995 were as follows:
<TABLE>
<CAPTION>
UNREALIZED
FOREIGN FOREIGN
FORWARD CURRENCY EXPIRATION CURRENCY CONTRACT CONTRACT EXCHANGE
CONTRACT DATE TO BE SOLD AMOUNT VALUE GAIN/LOSS
- --------------------- --------- ------------ ----------- ----------- ---------------
<S> <C> <C> <C> <C> <C>
Australian Dollars 03/15/95 600,000 $ 463,320 $ 442,674 $ 20,646
Canadian Dollars 03/15/95 250,000 180,086 179,353 733
German Deutschemarks 03/15/95 850,000 542,472 583,711 (41,239)
German Deutschemarks 05/03/95 125,000 82,549 85,975 (3,426)
French Francs 03/15/95 6,800,000 1,258,770 1,325,937 (67,167)
Japanese Yen 03/15/95 12,000,000 121,090 124,502 (3,412)
Spanish Pesetas 03/15/95 17,500,000 131,906 136,981 (5,075)
Swedish Krona 03/15/95 3,200,000 421,402 435,964 (14,562)
----------- ----------- ---------------
$3,201,595 $3,315,097 $ (113,502)
----------- ----------- ---------------
----------- ----------- ---------------

FOREIGN UNREALIZED
CURRENCY FOREIGN
FORWARD CURRENCY EXPIRATION TO BE CONTRACT CONTRACT EXCHANGE
CONTRACT DATE PURCHASED AMOUNT VALUE GAIN/LOSS
- --------------------- --------- ------------ ----------- ----------- ---------------
<S> <C> <C> <C> <C> <C>
Italian Lira 03/15/95 310,000,000 $ 188,238 $ 185,891 $ (2,347)
</TABLE>

74
<PAGE>
--------------------
BEA

--------------------

BEA International Equity Portfolio,
BEA Emerging Markets Equity Portfolio,
BEA U.S. Core Fixed Income Portfolio,
BEA Global Fixed Income Portfolio,
BEA Strategic Fixed Income Portfolio,
BEA Municipal Bond Fund Portfolio,
BEA U.S. Core Equity Portfolio

Semi-Annual Report
February 28, 1995