THE BEDFORD FAMILY
THE RBB FUND, INC.
ANNUAL INVESTMENT ADVISER'S REPORT
Economic growth continued to slow during the second quarter as the impact
from the interest rate rise during 1994 worked its way through the system. The
most recent revision to second quarter real GDP growth was 1.1%, a dramatic
change from the 5.1% experienced in the fourth quarter of 1994 and the 2.7% in
the first quarter of the year.
While the Fed is concerned about the deceleration in growth, they cannot
overlook the 100 basis point decline in interest rates at the front end of the
yield curve that has occurred in 1995 and the possibility that it has
re-stimulated the economy. A reacceleration in consumer spending could
significantly reduce inventories and lead to a resumption in manufacturing
activity. In fact, there are several indications that economic growth may be
rekindling. Factory orders, durable goods orders, retail sales and housing all
rebounded in mid-summer. Existing home sales rose 4.7% while new home sales
jumped 19.9%, the largest increase since January 1992. Lastly, consumer
confidence remains relatively high, buoyed by a soaring stock market.
The year-long rise in short-term interest rates ended in July, when the Fed
lowered the federal funds rate from 6% to 5.75%. This reversal in monetary
policy was widely anticipated and represented the Fed's belief that
"inflationary pressures have receded enough to accommodate a modest adjustment
in monetary conditions." The Fed's move also helped to flatten the short end of
the yield curve, correcting a sharply inverted position where one day
investments offered the highest yields at 6%, while six-month investments were
sometimes lower by 50 basis points or more. The Fed did not ease policy again at
its August meeting, and it's uncertain that they will do so in September. The
Fund's taxable money market portfolio extended their maturities this year to be
positioned for declining short-term interest rates.
Although the technical factors that shape the rate cycle in the short-term
municipal money market remained largely in place, there were a number of issues
over the last year that created a higher than usual degree of uncertainty during
this period. The significant issues included the potential for imposition of new
regulations by the Securities and Exchange Commission, speculation about the
possibility of a flat tax, national sales tax, or other major changes in the tax
code, and, of course, the Orange County, California debacle. All of these
factors tended to argue in favor of increased caution on the part of portfolio
managers. In terms of portfolio strategy, this translated into an emphasis on
shorter average weighted maturities. In addition, underlying and reinforcing
this cautious policy was a string of interest rate increases by the Federal
Reserve that offered little incentive to extend maturities. Currently, as the
economic indicators have turned more mixed, the extent and direction of future
Fed policy moves has become the subject of much debate in the marketplace.
Average maturities of money market funds have been increasing recently, but it
remains to be seen whether or not the Federal Reserve has successfully
engineered a soft landing for the economy.
As the year enters its final quarter, the outlook for the economy is
improving and inflation remains subdued. A return to a long-term growth rate of
2.5%, coupled with low inflation pressures, should give the Fed enough comfort
to ease policy again before the end of the year.
PNC Institutional Management Corporation
(Please dial toll-free 800-533-7719 for questions
regarding your account or contact your broker.)
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
To the Shareholders and Board of Directors of The RBB Fund, Inc.:
We have audited the accompanying statements of net assets of the Money Market,
Municipal Money Market and Government Obligations Money Market Portfolios of The
RBB Fund, Inc., as of August 31, 1995, and the related statements of operations
for the year then ended, the statements of changes in net assets for each of the
two years in the period then ended, and the financial highlights for each of the
periods presented. These financial statements and financial highlights are the
responsibility of the Fund's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of investments held as of
August 31, 1995, by correspondence with the custodian and brokers. An audit also
includes assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of the
Money Market, Municipal Money Market and Government Obligations Money Market
Portfolios of The RBB Fund, Inc. as of August 31, 1995, the results of their
operations for the year then ended, the changes in their net assets for each of
the two years in the period then ended, and their financial highlights for each
of the periods presented, in conformity with generally accepted accounting
principles.
COOPERS & LYBRAND L.L.P.
2400 Eleven Penn Center
Philadelphia, Pennsylvania
October 16, 1995
2
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS
AUGUST 31, 1995
<TABLE>
<CAPTION>
Par
(000) Value
------------ --------------
<S> <C> <C>
AGENCY OBLIGATIONS--4.4%
Student Loan Marketing Association
Variable Rate Notes (DAGGER)
5.650% 09/05/1995 .......................... $ 25,000 $ 25,000,000
5.690% 09/05/1995 .......................... 20,000 20,000,000
5.700% 09/05/1995 .......................... 10,000 10,000,000
5.710% 09/05/1995 .......................... 25,000 24,989,366
-------------
TOTAL AGENCY OBLIGATIONS
(Cost $79,989,366) ..................... 79,989,366
-------------
BANK NOTES--6.9%
Huntington National Bank of Ohio
(Huntington Bankshare Inc.)
5.760% 11/02/1995 .......................... 25,000 24,999,961
First National Bank of Boston
5.750% 11/01/1995 .......................... 30,000 30,000,000
5.630% 01/08/1996 .......................... 50,000 50,000,000
Mellon Bank
6.220% 11/01/1995 .......................... 19,500 19,500,320
-------------
TOTAL BANK NOTES
(Cost $124,500,281) .................... 124,500,281
-------------
CERTIFICATES OF DEPOSIT--7.5%
Yankee Certificates of Deposit--7.5%
ABN-Amro Bank NV
5.660% 10/11/1995 .......................... 25,000 24,842,778
Commerzbank
7.320% 01/24/1996 .......................... 13,000 13,034,170
Credit Suisse
5.630% 12/11/1995 .......................... 50,000 50,000,000
Societe Generale
5.770% 01/08/1996 .......................... 25,000 25,000,000
Westpac Banking Corp.
5.850% 06/04/1996 .......................... 25,000 25,000,000
-------------
137,876,948
-------------
TOTAL CERTIFICATES OF DEPOSIT
(Cost $137,876,948) .................... 137,876,948
-------------
COMMERCIAL PAPER--32.4%
Agricultural Services--0.8%
Golden Peanut Company
5.600% 11/08/1995 .......................... 15,000 14,841,333
-------------
</TABLE>
<TABLE>
<CAPTION>
Par
(000) Value
------------- --------------
<S> <C> <C>
Automobiles--0.3%
Ford Motor Credit Corp.
6.070% 01/08/1996 .......................... $ 5,000 $ 4,891,246
-------------
Banks--4.1%
Abbey National North America Corp.
5.620% 10/03/1995 .......................... 25,000 24,875,111
Amro N.A. Finance, Inc.
5.520% 10/02/1995 .......................... 20,000 19,904,933
6.160% 01/02/1996 .......................... 10,000 9,789,533
National City Corp.
6.180% 10/02/1995 .......................... 20,000 19,893,567
-------------
74,463,144
-------------
Books Publishing & Printing--1.2%
McGraw Hill, Inc.
5.900% 12/05/1995 .......................... 22,500 22,149,688
-------------
Chemicals & Allied Products--0.8%
U.S. Borax & Chemical Co.
5.620% 10/10/1995 .......................... 15,600 15,505,022
-------------
Finance Services--0.3%
American Express Credit Corp.
6.050% 10/30/1995 .......................... 5,000 4,950,424
-------------
Food & Kindred Products--0.2%
McCormick & Company
5.910% 09/21/1995 .......................... 4,000 3,986,867
-------------
Glass, Glassware, Pressed or Blown--0.5%
Newell Co.
5.980% 10/10/1995 .......................... 10,000 9,935,217
-------------
Guided Missiles & Space Vehicles--2.2%
Rockwell International Corp.
6.150% 09/06/1995 .......................... 40,000 39,965,833
-------------
Natural Gas Transmission--1.4%
Southern California Gas
5.560% 05/03/1996 .......................... 26,155 25,165,324
-------------
Newspaper: Publishing & Printing--0.5%
Dow Jones and Company, Inc.
5.600% 11/10/1995 .......................... 10,000 9,891,111
-------------
</TABLE>
See Accompanying Notes to Financial Statements.
3
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS (CONTINUED)
AUGUST 31, 1995
<TABLE>
<CAPTION>
Par
(000) Value
------------- --------------
<S> <C> <C>
Personal Credit Institutions--6.0%
BMW U.S. Capital Corp.
5.720% 10/23/1995 .......................... $ 50,000 $ 49,586,889
5.700% 11/01/1995 .......................... 25,000 24,758,542
5.750% 11/21/1995 .......................... 15,000 14,805,937
Toyota Motor Credit Corp.
6.120% 12/29/1995 .......................... 20,000 19,595,400
-------------
108,746,768
-------------
Pharmaceutical Preparations--5.1%
American Home Products Corp.
5.730% 11/10/1995 .......................... 33,500 33,126,754
5.740% 09/14/1995 .......................... 22,000 21,954,399
5.740% 09/18/1995 .......................... 14,800 14,759,884
Glaxo Wellcome PLC
5.710% 11/22/1995 .......................... 23,000 22,700,859
-------------
92,541,896
-------------
Plastic Mail, Synthetic Resin/rubber--3.5%
du Pont (E.I.) de Nemours & Co.
6.040% 10/03/1995 .......................... 20,000 19,892,622
6.070% 01/10/1996 .......................... 20,000 19,558,239
5.580% 07/18/1996 .......................... 25,000 23,756,125
-------------
63,206,986
-------------
Retail Department Stores--0.6%
St. Michael Finance Ltd.
5.630% 02/28/1996 .......................... 11,194 10,878,889
-------------
Security Brokers & Dealers--1.3%
Merrill Lynch & Co.
5.920% 02/02/1996 .......................... 25,000 24,366,889
-------------
Short-Term Business Credit Institutions--3.6%
Corporate Asset Funding, Inc.
6.060% 11/06/1995 .......................... 10,000 9,888,900
CXC, Inc.
6.080% 10/17/1995 .......................... 5,200 5,159,602
McKena Triangle National Corp.
5.710% 11/20/1995 .......................... 20,000 19,746,222
Sears Roebuck Acceptance Corp.
6.200% 09/11/1995 .......................... 30,000 29,948,333
-------------
64,743,057
-------------
TOTAL COMMERCIAL PAPER
(Cost $590,229,694) .................... 590,229,694
-------------
</TABLE>
<TABLE>
<CAPTION>
Par
(000) Value
------------- --------------
<S> <C> <C>
MUNICIPAL BONDS--6.4%
California--1.2%
Adventist Health Systems West Series
1988 (First Interstate Bank of
California LOC) (DAGGER)
5.900% 09/06/1995 .......................... $ 13,225 $ 13,225,000
San Bernardino County Certificate of
Participation County Center
Refinancing Project, Series 1995 (DAGGER)
5.850% 09/07/1995 .......................... 8,100 8,100,000
-------------
21,325,000
-------------
Georgia--0.1%
Richmond County IDA (Monsanto
County Project) VRDN (DAGGER)
6.270% 06/01/1996 .......................... 1,300 1,300,000
-------------
Illinois--1.0%
Baylis Group Partnership Weekly
Demand Taxable Bond Series
1992 (Societe Genrale LOC) (DAGGER)
6.050% 09/06/1995 .......................... 600 600,000
Barton Healthcare Taxable Revenue
Bonds Series 1995 (American
National Bank LOC) (DAGGER)
5.900% 09/06/1995 .......................... 13,200 13,200,000
Illinois Health Facilities Authority
Convertible VRDN (The Streeterville
Corp. Project) Series 1993-B (First
National Bank of Chicago LOC) (DAGGER)
5.900% 09/06/1995 .......................... 4,400 4,400,000
-------------
18,200,000
-------------
Kentucky--0.2%
Boone County Taxable IDR Refunding
Bonds (Square D Company Project)
Series 1994-B (Credit Lyonnais
LOC) VRDN (DAGGER)
5.850% 09/06/1995 .......................... 4,200 4,200,000
-------------
</TABLE>
See Accompanying Notes to Financial Statements.
4
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS (CONTINUED)
AUGUST 31, 1995
<TABLE>
<CAPTION>
Par
(000) Value
------------- --------------
<S> <C> <C>
Minnesota--0.3%
Fairview Hospital and Healthcare
Services Taxable Adjustable
Convertible Extendable Securities
Series 1994 (MBIA Insured) VRDN (DAGGER)
5.900% 09/07/1995 .......................... $ 5,200 $ 5,200,000
-------------
Mississippi--1.1%
Hinds County IDR Bonds VRDN (DAGGER)
5.950% 09/06/1995 .......................... 1,500 1,500,000
5.950% 09/06/1995 .......................... 2,410 2,410,000
Mississippi Business Finance Corp.
Taxable IDR Bonds VRDN (DAGGER)
5.950% 09/07/1995 .......................... 2,500 2,500,000
Mississippi Business Finance Corp.
Taxable IDR Bonds (Bryan Foods
Project) Series 1994 (Sara Lee
Corporation Guaranty) VRDN (DAGGER)
5.850% 09/06/1995 .......................... 14,000 14,000,000
-------------
20,410,000
-------------
New York--0.9%
Health Insurance Plan of Greater
New York Adjustable/Convertible
Extendable Securities 1990 B-1
(Morgan Guaranty Trust Co. LOC)
VRDN (DAGGER)
5.850% 09/06/1995 .......................... 6,800 6,800,000
Health Insurance Plan of Greater
New York Adjustable/Convertible
Extendable Securities VRDN (DAGGER)
5.850% 09/06/1995 .......................... 5,500 5,500,000
New York City (DAGGER)
6.020% 11/21/1995 .......................... 5,000 5,000,000
-------------
17,300,000
-------------
North Carolina--0.8%
Community Health Systems, Inc.
Taxable First National Bank of
North Carolina Series 1991-A (DAGGER)
6.050% 09/06/1995 .......................... 400 400,000
City of Asheville, North Carolina
Tax Corp. (DAGGER)
5.850% 09/06/1995 .......................... 13,500 13,500,000
-------------
13,900,000
-------------
</TABLE>
<TABLE>
<CAPTION>
Par
(000) Value
------------- --------------
<S> <C> <C>
Texas--0.8%
South Central Texas Industrial
Development Corp. Taxable IDR
Bonds (Rohr Industries Project)
Series 1990 (Citibank N.A. LOC) (DAGGER)
5.900% 09/06/1995 .......................... $ 14,800 $ 14,800,000
-------------
TOTAL MUNICIPAL BONDS
(Cost $116,635,000) .................... 116,635,000
-------------
TIME DEPOSITS--4.1%
Z-Laenderbank, Bank of Austria AG
5.750% 09/01/1995 .......................... 50,000 50,000,000
Huntington National Bank of Ohio
5.770% 09/08/1995 .......................... 25,000 25,000,000
-------------
TOTAL TIME DEPOSITS
(Cost $75,000,000) ..................... 75,000,000
-------------
CORPORATE OBLIGATIONS--24.1%
Automobiles--0.2%
American Honda Corp. (DAGGER)
5.975% 11/09/1995 .......................... 4,500 4,497,522
-------------
Banks--5.7%
Boatman's Bankshares of
South Missouri (DAGGER)
5.934% 11/14/1995 .......................... 5,000 5,000,000
First Union National Bank of
North Carolina (DAGGER)
5.590% 09/01/1995 .......................... 40,000 40,000,000
Morgan Guaranty Trust (DAGGER)
5.920% 09/01/1995 .......................... 50,000 49,971,598
Society Corporation
4.755% 03/11/1996 .......................... 3,300 3,271,557
Comerica Bank (DAGGER)
5.610% 09/05/1995 .......................... 5,000 4,998,980
-------------
103,242,135
-------------
Finance Lessors--3.0%
IBM Credit Corp. (DAGGER)
5.770% 09/01/1995 .......................... 5,000 4,999,736
IBM Credit Corp.
5.880% 08/08/1996 .......................... 25,000 24,997,898
6.000% 08/28/1996 .......................... 25,000 24,998,022
-------------
54,995,656
-------------
</TABLE>
See Accompanying Notes to Financial Statements.
5
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS (CONTINUED)
AUGUST 31, 1995
<TABLE>
<CAPTION>
Par
(000) Value
------------- --------------
<S> <C> <C>
Natural Gas Transmisson--0.3%
Southern California Gas
5.050% 09/01/1995 .......................... $ 5,000 $ 5,000,000
-------------
Personal Credit Institutions--1.3%
Associates Corporation of
North America
8.750% 02/01/1996 .......................... 4,500 4,547,190
General Motors Acceptance Corp.
8.750% 02/01/1996 .......................... 5,000 5,041,587
5.950% 02/23/1996 .......................... 3,700 3,686,341
8.250% 08/01/1996 .......................... 5,000 5,104,080
General Motors Acceptance Corp. (DAGGER)
6.175% 09/01/1995 .......................... 5,000 4,997,915
-------------
23,377,113
-------------
Security Brokers & Dealers--13.6%
Bear Stearns & Co., Inc. (DAGGER)
5.920% 09/01/1995 .......................... 20,000 20,000,000
5.950% 09/01/1995 .......................... 50,000 50,000,000
Goldman Sachs Group, LP (DAGGER)
6.188% 09/06/1995 .......................... 53,000 53,000,000
Lehman Brothers Holdings, Inc. (DAGGER)
6.025% 09/07/1995 .......................... 50,000 50,000,000
Merrill Lynch & Co.
4.750% 06/24/1996 .......................... 9,135 9,050,470
Merrill Lynch & Co. (DAGGER)
6.100% 09/01/1995 .......................... 20,000 20,002,991
Merrill Lynch & Co.
6.440% 05/15/1996 .......................... 15,000 15,000,000
6.050% 08/19/1996 .......................... 15,000 15,000,000
Morgan Stanley Group (DAGGER)
5.975% 01/03/1996 .......................... 15,000 15,000,000
-------------
247,053,461
-------------
TOTAL CORPORATE OBLIGATIONS
(Cost $438,165,887) .................... 438,165,887
-------------
</TABLE>
<TABLE>
<CAPTION>
Par
(000) Value
------------- --------------
<S> <C> <C>
REPURCHASE AGREEMENTS--14.0%
Goldman Sachs & Co.
5.850% 09/01/1995 .......................... $ 75,000 $ 75,000,000
(Agreement dated 08/31/95 to
be repurchased at $75,012,188,
collateralized by $81,381,406
Federal National Mortgage Assoc.
6.31% due 04/01/34. Market
value of collateral is $77,250,000).
Goldman Sachs & Co.
5.950% 09/01/1995 .......................... 25,000 25,000,000
(Agreement dated 08/31/95 to be
repurchased at $25,004,132,
collateralized by $23,072,000
U.S. Treasury Notes 7.875%
to 8.75% due 04/15/98 to
08/15/00. Market value of
collateral is $25,500,530).
Morgan Stanley & Co.
5.875% 09/01/1995 .......................... 150,000 150,000,000
(Agreement dated 08/31/95 to be
repurchased at $150,024,479,
collateralized by $72,370,070
Federal National Mortgage Assoc.
6.50% to 7.50% due 5/25/08 to
3/25/24 and $117,471,933
Federal Home Loan Mortgage
Corp. 0.00% to 12.50% due
6/15/00 to 3/15/24. Market
value of collateral is
$153,773,069).
PaineWebber Incorporated
5.875% 09/01/1995 .......................... 4,900 4,900,000
(Agreement dated 08/31/95 to be
repurchased at $4,900,800,
collateralized by $10,655,000
Federal National Mortgage Assoc.
Strip due 04/01/24. Market value
of collateral is $5,047,523).
-------------
TOTAL REPURCHASE AGREEMENTS
(Cost $254,900,000) .................... 254,900,000
-------------
</TABLE>
See Accompanying Notes to Financial Statements.
6
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS (CONCLUDED)
AUGUST 31, 1995
<TABLE>
<CAPTION>
Value
--------------
<S> <C>
TOTAL INVESTMENTS AT VALUE--99.8%
(Cost $1,817,297,176*) ................... $1,817,297,176
OTHER ASSETS IN EXCESS
OF LIABILITIES--0.2% ..................... 4,074,512
--------------
NET ASSETS (Applicable to 935,832,262 Bedford
shares, 235,665 Cash Preservation
shares, 443,649,097 Janney Montgomery
Scott shares, 55,401 RBB shares,
441,618,989 Sansom Street shares
and 800 other shares)--100.0% ............ $1,821,371,688
==============
NET ASSET VALUE, offering and
redemption price per share
($1,821,371,688 / 1,821,392,214).......... $1.00
=====
<FN>
* Also cost for Federal income tax purposes.
(DAGGER) Variable Rate Obligations -- The interest rate shown is the rate as
of August 31, 1995 and the maturity date shown is the longer of the
next interest rate readjustment date or the date the principal amount
shown can be recovered through demand.
INVESTMENT ABBREVIATIONS
VRDN ..................................................Variable Rate Demand Note
LOC ............................................................Letter of Credit
IDR...............................................Industrial Development Revenue
</FN>
</TABLE>
See Accompanying Notes to Financial Statements.
7
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
MONEY MARKET PORTFOLIO
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED
AUGUST 31, 1995
<S> <C>
INVESTMENT INCOME
Interest ............................ $ 75,047,617
------------
EXPENSES
Investment advisory fees ............ 4,864,529
Distribution fees ................... 5,212,833
Service organization fees ........... 391,361
Directors' fees ..................... 11,538
Custodian fees ...................... 219,718
Transfer agent fees ................. 1,536,138
Legal fees .......................... 66,236
Audit fees .......................... 73,717
Registration fees ................... 165,999
Insurance expense ................... 37,784
Printing expense .................... 236,808
Miscellaneous ....................... 70
------------
12,816,731
Less fees waived .................... (2,670,396)
Less expense reimbursement by advisor (12,047)
------------
TOTAL EXPENSES ................... 10,134,288
------------
NET INVESTMENT INCOME .................. 64,913,329
------------
REALIZED LOSS ON INVESTMENTS ........... (18,463)
------------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS ..................... $ 64,894,866
============
</TABLE>
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN NET ASSETS
For the For the
Year Ended Year Ended
August 31, 1995 August 31, 1994
--------------- ---------------
<S> <C> <C>
Increase in net assets:
Operations:
Net investment income ...... $ 64,913,329 $ 32,169,184
Net loss on investments .... (18,463) (2,062)
--------------- ---------------
Net increase in net assets
resulting from operations 64,894,866 32,167,122
--------------- ---------------
Distributions to shareholders:
Dividends to shareholders from
net investment income:
Bedford shares ($.0486 and
$.0278, respectively,
per share) ............... (38,765,552) (21,525,364)
Cash Preservation shares
($.0487 and $.0278,
respectively, per share) . (11,336) (26,296)
Janney Montgomery Scott
shares ($.0112 per share
for 1995) ................ (4,784,092) --
RBB shares ($.0482 and
$.0273, respectively,
per share) ............... (2,530) (1,576)
Sansom Street shares ($.0543
and $.0334, respectively,
per share) ............... (21,349,819) (10,615,948)
Distributions to shareholders
from net realized
short-term gains:
Bedford shares ............. -- (48,280)
Cash Preservation shares ... -- (40)
Janney Montgomery Scott
shares ................... -- --
RBB shares ................. -- (5)
Sansom Street shares ....... -- (15,323)
--------------- ---------------
Total distributions to
shareholders ........... (64,913,329) (32,232,832)
--------------- ---------------
Net capital share
transactions ............... 736,630,198 110,590,287
--------------- ---------------
Total increase in net assets .. 736,611,735 110,524,577
Net Assets:
Beginning of Year .......... 1,084,759,953 974,235,376
--------------- ---------------
End of year ................ $ 1,821,371,688 $ 1,084,759,953
=============== ===============
</TABLE>
See Accompanying Notes to Financial Statements.
8
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
MUNICIPAL MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS
AUGUST 31, 1995
<TABLE>
<CAPTION>
Par
(000) Value
------------- --------------
<S> <C> <C>
ALABAMA--2.6%
Columbia Industrial Development
Board (Alabama Power Company
(Project) Series 1995 A DN (DAGGER) [A-1]
3.300% 09/01/1995 .......................... $ 2,000 $ 2,000,000
Demopolis DN / (Banque Nationale
de Paris LOC) (DAGGER) [A-1+]
3.850% 09/07/1995 .......................... 3,000 3,000,000
Health Care Authority of the City of
Huntsville Health Care Facilities
Revenue 1994-b DN / (MBIA
Insurance) (DAGGER) [A-1+]
3.400% 09/07/1995 .......................... 5,000 5,000,000
Livingston IDR Toin Corp USA
Project DN / (Industrial Bank of
Japan LOC) (DAGGER) [A-1+]
4.000% 09/07/1995 .......................... 1,000 1,000,000
-------------
11,000,000
-------------
ALASKA--0.8%
Alaska Housing Finance Corp. ..................
Governmental Purpose Bonds 1994
Series A DN / (Westdeutsche
Landesbank Girozentrale LOC) (DAGGER)
[A-1+]
3.550% 09/07/1995 .......................... 1,300 1,300,000
Alaska Industrial Development and
Export Authority Comp IBD Current
Refunding Bonds Series 1984-5
(Bank of America LOC) DN (DAGGER) [A-1]
3.850% 09/07/1995 .......................... 2,100 2,100,000
-------------
3,400,000
-------------
ARIZONA--5.4%
Apache County IDA Bonds DN /
(Barclays Bank LOC) (DAGGER) [A-1+]
3.625% 09/06/1995 .......................... 10,000 10,000,000
Flagstaff IDA DN / (FGIC Insurance) (DAGGER)
[A-1]
3.800% 09/07/1995 .......................... 5,855 5,855,000
</TABLE>
<TABLE>
<CAPTION>
Par
(000) Value
------------- --------------
<S> <C> <C>
ARIZONA--(continued)
Maricopa County Pollution Control
Corporation PCR Refunding Bonds
Arizona Public Service Co. DN /
(Toronto Dominion LOC) (DAGGER) [A-1+]
3.300% 09/01/1995 .......................... $ 1,600 $ 1,600,000
Phoenix City DN / (Canadian Imperial
Bank LOC) (DAGGER) [A-1+]
3.400% 09/07/1995 .......................... 2,650 2,650,000
Pima County IDA RB DN / (Barclays
Bank LOC) (DAGGER) [A-1+]
3.625% 09/07/1995 .......................... 2,900 2,900,000
-------------
23,005,000
-------------
ARKANSAS--1.5%
Arkansas Development Finance
Authority Revenue Bonds DN /
(FGIC Insurance) (DAGGER) [A-1+]
3.600% 09/07/1995 .......................... 2,900 2,900,000
City of Hope Arkansas MB (DOUBLE DAGGER) [A-1]
3.950% 10/27/1995 .......................... 2,400 2,400,000
Warren Park Solid Waste DN /
(Credit Suisse LOC) (DAGGER) [A-1+]
3.700% 09/07/1995 .......................... 1,000 1,000,000
-------------
6,300,000
-------------
CALIFORNIA--1.1%
City of Loma Linda Medical Center
Project Series A Hospital RB DN /
(Ind. Bank of Japan LOC) (DAGGER) [A-1]
3.750% 09/01/1995 .......................... 700 700,000
Los Angeles County California TRAN
(Bank of America LOC) [SP-1]
4.500% 07/01/1996 .......................... 2,500 2,513,989
Southern California Public Power
Authority Transmission Project RB
1991 Subordinated Refunding Series
DN / (AMBAC Insurance) (DAGGER) [A-1+]
3.150% 09/07/1995 .......................... 1,500 1,500,000
-------------
4,713,989
-------------
</TABLE>
See Accompanying Notes to Financial Statements.
9
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
MUNICIPAL MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS (CONTINUED)
AUGUST 31, 1995
<TABLE>
<CAPTION>
Par
(000) Value
------------- --------------
<S> <C> <C>
COLORADO--2.8%
Colorado Health Care Facilities
Authority (Sisters of Charity)
DN (DAGGER) [A-1+]
3.550% 09/07/1995 .......................... $ 7,300 $ 7,300,000
City and County of Denver Airport
System Subordinate RB MB/
(Sumitomo Bank LOC) (DOUBLE DAGGER) [VMIG]
3.900% 09/21/1995 .......................... 1,000 1,000,000
Moffat County DN (DAGGER) [A-1+]
3.600% 09/07/1995 .......................... 3,400 3,400,000
-------------
11,700,000
-------------
CONNECTICUT--0.2%
Connecticut Housing Mortgage
Finance Program Series E MB (DOUBLE DAGGER)
[VMIG1, A-1+]
4.400% 11/15/1995 .......................... 800 800,000
-------------
DELAWARE--0.7%
The Delaware Economic Development
Authority Gas Facilities Refunding
RB DN (Delmarva Power & Light
Project) Series 1993-C (Delmarva
Power & Light Corporate Obligor) (DAGGER)
[VMIG1]
3.800% 09/07/1995 .......................... 3,000 3,000,000
-------------
FLORIDA--3.1%
Alachua County Health Facility RB
(North Florida Retirement Village)
Series 1991 DN / (Kredietbank
LOC) (DAGGER) [A-1]
3.600% 09/07/1995 .......................... 1,500 1,500,000
Broward County Variable Rate Demand
IDA RB (Allied Signal Inc. Project)
Series 1992 (Allied Signal Corporate
Obligor) DN (DAGGER) [A-1]
3.700% 09/07/1995 .......................... 400 400,000
Florida Housing Finance Agency DN /
(Wells Fargo Bank LOC) (DAGGER) [A-1]
3.800% 09/30/1995 .......................... 3,000 3,000,000
Greater Orlando Aviation Airport
Authority Facilities TECP Series B
(DOUBLE DAGGER) [P-1, A-1]
3.750% 09/29/1995 .......................... 7,500 7,500,000
</TABLE>
<TABLE>
<CAPTION>
Par
(000) Value
------------- --------------
<S> <C> <C>
FLORIDA--(continued)
Jacksonville Florida MB (DOUBLE DAGGER)
8.875% 10/01/1995 .......................... $ 700 $ 716,461
-------------
13,116,461
-------------
GEORGIA--4.5%
Burke County Development Authority
PCR Bonds (Georgia Power Company
Plant Vogtle Projection) DN (DAGGER) [A-1]
3.300% 09/01/1995 .......................... 1,900 1,900,000
Burke County Development Authority
PCR DN (DAGGER) [A-10]
3.600% 09/01/1995 .......................... 2,800 2,800,000
Dekalb County Development Authority
(Metro Atlanta YMCA Project) DN /
(Wachovia LOC) (DAGGER) [A-1+]
3.400% 09/07/1995 .......................... 4,105 4,105,000
Forsyth County IDA RB DN
(American Boa Inc. Project) (DAGGER)
3.900% 09/07/1995 .......................... 2,000 2,000,000
Fulco Hospital Authority Revenue
Anticipation Certificates MB /
(Barclays Bank LOC) (DOUBLE DAGGER)
9.300% 10/01/1995 .......................... 700 716,695
Fulton County Development Authority
(Metro Atlanta YMCA Project) DN /
(Wachovia LOC) (DAGGER) [A-1+]
3.400% 09/07/1995 .......................... 3,290 3,290,000
Georgia Municipal Association Pooled
Bonds DN / (Credit Suisse LOC) (DAGGER)
[A1+]
3.600% 09/07/1995 .......................... 3,098 3,097,945
Monroe County Development
Authority PCR DN (DAGGER) [A-1]
3.300% 09/01/1995 .......................... 1,200 1,200,000
-------------
19,109,640
-------------
HAWAII--0.3%
City and County of Honolulu TECP
Line of Credit CIBC MB (DOUBLE DAGGER) [A-1+]
3.900% 10/31/1995 .......................... 1,500 1,500,000
-------------
</TABLE>
See Accompanying Notes to Financial Statements.
10
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
MUNICIPAL MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS (CONTINUED)
AUGUST 31, 1995
<TABLE>
<CAPTION>
Par
(000) Value
------------- --------------
<S> <C> <C>
ILLINOIS--12.3%
Chicago O'Hare International Airport
Special Facility RB DN / (Society
General LOC ) (DAGGER) [A-1+]
3.650% 09/07/1995 .......................... $ 5,800 $ 5,800,000
City of Chicago GO Tender Notes DN /
(Society General LOC) (DAGGER) [A-1+]
3.600% 09/07/1995 .......................... 1,000 1,000,000
Educational Facility Authority DN
(Illinois Institute of Technology)
Series A (DAGGER) [MIG1]
3.600% 09/07/1995 .......................... 10,200 10,200,000
Health Facility Authority DN (Central
Health Care And Northwest
Community Hospital) / (Sumitomo
Bank LOC) (DAGGER) [MIG]
3.550% 09/07/1995 .......................... 1,545 1,545,000
Illinois Development Facility Harris DN /
(FNMA LOC) (DAGGER) [A-1+]
3.700% 09/07/1995 .......................... 12,300 12,300,000
Illinois Development Finance Authority
(CHS Acquisition Corp. Project)
DN / (ABM-AMRO BANK N.V. LOC) (DAGGER)
[A-1+]
4.000% 09/07/1995 .......................... 5,035 5,035,000
Illinois Development Finance Authority
PCR DN (Commonwealth Edison CO
Project) Series 94C / (ABM-AMRO
Bank N.V. LOC) (DAGGER) [A-1+]
3.550% 09/07/1995 .......................... 7,000 7,000,000
Illinois Educational Facilities Authority
RB DN (DAGGER) [A-1]
3.700% 09/07/1995 .......................... 8,000 8,000,000
Illinois Health Facilities MB/(First
National Bank of Chicago LOC (DOUBLE DAGGER)
4.000% 02/01/1996 .......................... 1,000 1,000,000
------------
51,880,000
------------
INDIANA--2.5%
Indiana Bond Bank MB (DOUBLE DAGGER)
3.995% 09/07/1995 .......................... 3,500 3,500,000
Indiana Housing Finance Authority
Series 1994C MB (DOUBLE DAGGER)
4.000% 07/01/1996 .......................... 1,500 1,500,000
</TABLE>
<TABLE>
<CAPTION>
Par
(000) Value
------------- --------------
<S> <C> <C>
INDIANA--(continued)
Orleans Economic Development RB
(Almana Ltd Liabilty Co. Project)
Series 95 DN (DAGGER)
3.950% 09/07/1995 .......................... $ 5,400 $ 5,400,000
------------
10,400,000
------------
IOWA--3.7%
Council Bluffs City PCR RB DN
(Iowa-Illinois Gas and Electric
Company Project) Series 1995
3.600% (DAGGER) 09/07/1995 ................. 11,650 11,650,000
Iowa Finance Authority Tax-Exempt
Adjustable Mode IDA RB DN (Dixie
Bedding Co. Project) Series 95 /
(Wachovia LOC) (DAGGER) [AA2]
3.875% 09/07/1995 .......................... 3,000 3,000,000
Osceola IDA RB (Babson Brothers Co.
Project) Series 1986 (LOC-Bank of
New York) DN / (Bank of New York
LOC) (DAGGER) [MIG]
3.750% 09/07/1995 .......................... 1,100 1,100,000
------------
15,750,000
------------
KANSAS--1.9%
Lawrence IDA RB Series A Ram Co.
Project DN / (Wachovia LOC) (DAGGER)
3.875% 09/07/1995 .......................... 2,125 2,125,000
Shawnee IDA RB Thrall Enterprises Inc.
Project DN (DAGGER) [A-1+]
3.900%(DAGGER) 09/07/1995 ................. 6,000 6,000,000
------------
8,125,000
------------
KENTUCKY--9.2%
Henderson County Solid Waste
Disposal RB (Hudson Foods Inc.
Project) DN / (Rabo Bank Nederland
LOC) (DAGGER) [MIG]
3.700% 09/07/1995 .......................... 10,000 10,000,000
Hopkinsville IDA RB (Douglas Autotech
Corp. Project) Series 95 DN / (Ind
Bank of Japan LOC) [A-1+]
4.000%(DAGGER) 09/07/1995 .................. 7,700 7,700,000
</TABLE>
See Accompanying Notes to Financial Statements.
11
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
MUNICIPAL MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS (CONTINUED)
AUGUST 31, 1995
<TABLE>
<CAPTION>
Par
(000) Value
------------- --------------
<S> <C> <C>
KENTUCKY--(continued)
Maysville City Solid Waste Disposal
Facilities RB MB (DOUBLE DAGGER) [A-1]
3.650% 10/13/1995 .......................... $ 8,365 $ 8,365,000
3.950% 11/10/1995 .......................... 6,000 6,000,000
Pulaski County Solid Waste Disposal
RB National Rural Utilities for East
Kentucky Power MB [VMIG, A-1+]
3.900% 02/15/1996 .......................... 6,700 6,700,000
-------------
38,765,000
-------------
MARYLAND--1.3%
Anne Arundel County PCR TECP (DOUBLE DAGGER)
[VMIG, A-1]
3.900% 10/13/1995 .......................... 5,380 5,380,000
-------------
MICHIGAN--1.5%
Detroit Downtown Development
Authority DN (Millender Project) /
(Sumitomo Bank LOC) (DAGGER) [VMIG]
3.700% 09/07/1995 .......................... 5,200 5,200,000
Northville IDA DN (Thrifty Northville
Project) / (Westpac Banking Corp.
LOC) (DAGGER) [P-1]
3.750% 09/07/1995 .......................... 1,000 1,000,000
-------------
6,200,000
-------------
MISSOURI--0.6%
City of Kansas City IDA RB
(Mid-America Health Services Inc.
Project) Series 1984 DN / (Bank of
New York LOC) (DAGGER) [A-1]
3.900% 09/07/1995 .......................... 1,100 1,100,000
Health and Educational Facility Authority
School District Advance Funding
Program Notes (Kansas City School
District Project) Series 1994-F
(GIC-Transamerica) MB (DOUBLE DAGGER) [SP1+]
4.500% 09/19/1995 .......................... 1,325 1,325,032
-------------
2,425,032
-------------
NEBRASKA--0.9%
Lancaster (Sun-Husker Foods Inc.
Project) DN / (Bank of Tokyo LOC) (DAGGER)
[A-1+]
4.000% 09/07/1995 .......................... 3,800 3,800,000
-------------
</TABLE>
<TABLE>
<CAPTION>
Par
(000) Value
------------- --------------
<S> <C> <C>
NEW JERSEY--0.1%
New Jersey Natural Gas Co. Project
Series B DN / (AMBAC Insurance) (DAGGER)
[MIG]
3.150% 09/01/1995 .......................... $ 500 $ 500,000
-------------
NEW HAMPSHIRE--0.2%
New Hampshire PCRB (New England
Power Co. Project) Series 1990A MB
(DOUBLE DAGGER) [A-1]
3.600% 09/08/1995 .......................... 1,050 1,050,000
-------------
NEW YORK--0.8%
New York City GO Series B10 DN /
(Union Bank of Switzerland LOC) (DAGGER)
[A-1+]
3.550% 09/07/1995 .......................... 500 500,000
New York City RANS 1996 MB (DOUBLE DAGGER)
4.500% 04/11/1996 .......................... 2,770 2,779,266
-------------
3,279,266
-------------
NORTH CAROLINA--4.1%
North Carolina Educational Facilities
Finance Agency DN (DAGGER) [A-1+]
3.650% 09/07/1995 .......................... 1,100 1,100,000
North Carolina Medical Care (Moses H
Cone Memorial Hospital Project) DN
(Wachovia LOC) (DAGGER) [A-1+]
3.800% 09/07/1995 .......................... 1,200 1,200,000
Wake County Industrial Facility &
Pollution Control Authority DN
Series 87 (DAGGER) [P-1]
3.650% 09/01/1995 .......................... 14,900 14,900,000
-------------
17,200,000
-------------
OHIO--0.6%
Toledo Improvement Notes
Series 2 MB (DOUBLE DAGGER)
3.890% 05/15/1996 .......................... 2,610 2,610,707
-------------
OKLAHOMA--1.5%
Muldrow Public Works Authority IDA
RB (Oklahoma Foods Inc. Project)
DN / (RABO Bank Nederland LOC) (DAGGER)
[A-1+]
4.000% 09/07/1995 .......................... 6,300 6,300,000
-------------
</TABLE>
See Accompanying Notes to Financial Statements.
12
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
MUNICIPAL MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS (CONTINUED)
AUGUST 31, 1995
<TABLE>
<CAPTION>
Par
(000) Value
------------- --------------
<S> <C> <C>
PENNSYLVANIA--1.4%
Cambria County IDA Resource
Recovery RB DN / (Fuji Bank
LOC) (DAGGER) [A-1]
3.700% 09/07/1995 .......................... $ 2,000 $ 2,000,000
Carlisle Boro Municipal Authority
RB MB (DOUBLE DAGGER)
9.500% 11/01/1995 .......................... 1,500 1,541,683
9.500% 11/01/1995 .......................... 500 506,796
Clinton County IDA Annual Tender
Solid Waste Disposal RB
(International Paper Co. Project)
Series 1992-A (International Paper
Corporate Obligation) (DOUBLE DAGGER)
5.200% 01/16/1996 .......................... 2,000 2,000,000
-------------
6,048,479
-------------
RHODE ISLAND--2.7%
Rhode Island Student Loan Series 1
DN / National Westminster LOC) (DAGGER)
[A-1+]
3.650% 09/06/1995 .......................... 9,500 9,500,000
Rhode Island Housing & Mortgage
Finance Corporation Home
Ownership Opportunity Bonds
Series 17-C MB [VMIG, A-1+]
4.400% 02/01/1996 .......................... 2,000 2,000,000
-------------
11,500,000
-------------
SOUTH CAROLINA--1.6%
Florence County Hospital RB DN /
(FGIC Insurance) (DAGGER) [A-1]
3.600% 09/07/1995 .......................... 6,600 6,600,000
-------------
SOUTH DAKOTA--0.4%
Lawrence County Variable/Fixed Rate
PCR RB (Homestake Mining Company
Project) Series 1983 DN / (Bank of
Nova Scotia LOC) (DAGGER) [A-1]
3.600% 09/07/1995 .......................... 1,500 1,500,000
-------------
TENNESSEE--2.1%
Hamilton County Tennessee GO
Bond MB (DOUBLE DAGGER)
4.300% 10/01/1995 .......................... 1,000 1,000,000
</TABLE>
<TABLE>
<CAPTION>
Par
(000) Value
------------- --------------
<S> <C> <C>
TENNESSEE--(continued)
Memphis General Improvement Airport
Refunding Bonds Series 95B DN /
(Westdeutsche Landesbank
Girozentrale LOC) (DAGGER)
[A-1+]
3.550% 09/07/1995 .......................... $ 5,600 $ 5,600,000
Montgomery County Public Building
Authority Tennessee County Loan
Pool GO DN / (NCNB LOC) (DAGGER) [A-1]
3.700% 09/07/1995 .......................... 2,400 2,400,000
-------------
9,000,000
-------------
TEXAS--17.7%
Angelina and Neches River Authority
Solid Waste Disposal RB MB (DOUBLE DAGGER)
[P-1, A-1]
3.450% 09/08/1995 .......................... 7,300 7,300,000
Brazos Higher Education Authority, Inc.
Student Loan RB DN / (Student
Loan Marketing Assoc. LOC) (DAGGER) [MIG]
3.550% 09/07/1995 .......................... 9,000 9,000,000
Harris County Health Facility
Development Corporation Texas
Childrens DN (DAGGER) [MIG]
3.550% 09/07/1995 .......................... 5,000 5,000,000
Houston Water and Sewer System
Series A MB (DOUBLE DAGGER) [P-1, A-1+]
4.200% 09/07/1995 .......................... 5,000 5,000,000
North Texas Higher Education
Authority Inc. Student Loan
Revenue Senior Series 87 DN /
(Fuji Bank LOC) (DAGGER) [MIG]
3.700% 09/07/1995 .......................... 13,900 13,900,000
North Texas Higher Education Student
Loan Revenue Series A DN (DAGGER) [A-1+]
3.750% 09/07/1995 .......................... 5,000 5,000,000
Panhandle Plains Higher Education
Authority Student Loan RB DN /
(Student Loan Marketing Assoc
LOC) (DAGGER) [MIG]
3.550% 09/07/1995 .......................... 5,700 5,700,000
Sabine River IDA RB Northeast Texas
SPA National Rural Utilities MB
(DOUBLE DAGGER) [A-1+]
3.800% 02/15/1996 .......................... 2,005 2,005,000
</TABLE>
See Accompanying Notes to Financial Statements.
13
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
MUNICIPAL MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS (CONTINUED)
AUGUST 31, 1995
<TABLE>
<CAPTION>
Par
(000) Value
------------- --------------
<S> <C> <C>
TEXAS--(continued)
San Antonio Texas Housing Finance
Corporation (Wellington Place
Apartments) Series 1995A DN (DAGGER)
[A-1+]
3.700% 09/07/1995 .......................... $ 3,000 $ 3,000,000
San Antonio Water System Series 92
TECP (Revenue Credit Agreement
with Credit Suisse) MB (DOUBLE DAGGER)
4.200% 09/14/1995 .......................... 4,000 4,000,000
Texas University System Board of
Regents Permanent University
Fund Series B MB (DOUBLE DAGGER) [P-1, A-1+]
3.900% 10/13/1995 .......................... 5,000 5,000,000
Texas Water Development Board
1992A MB (DOUBLE DAGGER) [A-1+]
3.750% 09/07/1995 .......................... 10,000 10,000,000
-------------
74,905,000
-------------
UTAH--1.9%
Intermountain Power Agency MB (DOUBLE DAGGER)
[A-1]
3.850% 06/15/1996 .......................... 1,000 1,000,000
Salt Lake Airport Revenue DN (DAGGER) [A-1+]
3.550% 09/07/1995 .......................... 2,600 2,600,000
Utah State Board of Regents Student
Loan Revenue Series C Student
Loan RB DN / (Dresdner Bank
LOC) (DAGGER) [A-1+]
3.750% 09/07/1995 .......................... 3,400 3,400,000
Utah Housing Finance Agency Single
Family Mortgage Variable Rate
Bonds DN / (Guaranteed Investor
Contract LOC) (DAGGER) [MIG]
3.650% 09/07/1995 .......................... 1,100 1,100,000
-------------
8,100,000
-------------
VIRGINIA--1.0%
Culpeper Town IDA Residential Care Facility RB
DN / (NCNB LOC) (DAGGER) (A-1]
3.700% 09/07/1995 .......................... 400 400,000
Lynchburg IDA Hospital RB DN (DAGGER) [A-1]
3.550% 09/07/1995 .......................... 400 400,000
Peninsula Ports Authority Variable/Fixed
Rate IDA RB DN (Allied Signal Inc.
Project) Series 1993 (Allied Signal
Corp. Obligation) (DAGGER) [A-1]
3.700% 09/07/1995 .......................... 1,000 1,000,000
</TABLE>
<TABLE>
<CAPTION>
Par
(000) Value
------------- --------------
<S> <C> <C>
VIRGINIA--(continued)
Virgina State Housing Authority
Commonwealth Mortgage Bonds
Subseries B-STEM MB (DOUBLE DAGGER)
[VMIG, A-1+]
3.550% 09/12/1995 .......................... $ 2,500 $ 2,500,000
-------------
4,300,000
-------------
WASHINGTON--1.3%
King County GO Bonds MB (DOUBLE DAGGER) [Aa1]
8.000% 12/01/1995 .......................... 670 675,865
Port of Seattle IDA DN (Alaska
Airlines Project) / (Bank of America
LOC) (DAGGER) [A-1]
4.200% 09/07/1995 .......................... 4,900 4,900,000
-------------
5,575,865
-------------
WEST VIRGINIA--1.9%
Commission of Grant County DN
Series 88B / (Bank of America
LOC) (DAGGER) [P-1]
3.750% 09/07/1995 .......................... 5,000 5,000,000
Marion County DN / (National
Westminster LOC) (DAGGER) [A-1+]
3.800% 09/07/1995 .......................... 1,200 1,200,000
Marion County Solid Waste DN /
(National Westminster LOC) (DAGGER)
[A-1+]
3.800% 09/07/1995 .......................... 1,800 1,800,000
-------------
8,000,000
-------------
WISCONSIN--3.2%
Racine School District TRAN [SP-1]
4.500% 08/23/1996 .......................... 6,000 6,025,277
Wisconsin Health Facilities Authority
Daughters of Charity St. Mary's
Hospital RB DN (DAGGER) [MIG]
3.500% 09/07/1995 .......................... 3,850 3,850,000
Wisconsin Housing and Economic
Development Authority Home
Ownership RB MB (DOUBLE DAGGER)
4.650% 09/01/1995 .......................... 1,000 1,000,587
</TABLE>
See Accompanying Notes to Financial Statements.
14
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
MUNICIPAL MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS (CONCLUDED)
AUGUST 31, 1995
<TABLE>
<CAPTION>
Par
(000) Value
------------- --------------
<S> <C> <C>
WISCONSIN--(continued)
Wisconsin Housing & Economic
Development Authority Home
Ownership RB Series 1991-B
TOB DN (DAGGER)
4.650% 09/01/1995 .......................... $ 2,500 $ 2,500,300
-------------
13,376,164
-------------
WYOMING--0.2%
City of Green River Variable/Fixed Rate
Demand PCR Refunding Bonds
(Allied Signal Inc. Project) Series
1994 (Allied Signal Corporate
Obligation) DN (DAGGER) [A-1]
3.700% 09/07/1995 .......................... 1,000 1,000,000
-------------
TOTAL INVESTMENTS AT VALUE--99.6%
(Cost $421,215,603*) ....................... 421,215,603
OTHER ASSETS IN EXCESS
OF LIABILITIES--0.4% ....................... 1,538,260
-------------
NET ASSETS (Applicable to 198,494,293
Bedford shares, 110,935,556
Bradford shares, 161,271 Cash
Preservation shares, 113,224,055
Janney Montgomery Scott shares,
4,939 RBB Shares and 800
other shares)--100.0% ...................... $ 422,753,863
=============
NET ASSET VALUE, offering and
redemption price per share
($422,753,863 / 422,820,914) ............... $1.00
=====
<FN>
* Also cost for Federal income tax purposes.
(DAGGER) Variable Rate Demand Notes -- The interest rate shown is
the rate as of August 31, 1995 and the maturity shown is the
longer of the next interest readjustment date or the date the
principal amount shown can be recovered through demand.
(DOUBLE DAGGER) Put Bonds -- Maturity date is the put date.
The Moody's Investor Service, Inc. and Standard & Poor's Ratings Group's ratings
indicated are the most recent ratings available at August 31, 1995. These
ratings have not been audited by the Independent Accountants, and, therefore,
are not covered by the Report of Independent Accountants.
INVESTMENT ABBREVIATIONS
BAN ......................................................Bond Anticipation Note
DN .................................................................Demand Note
GO .........................................................General Obligations
LOC ............................................................Letter of Credit
IDA ............................................Industrial Development Authority
MB ..............................................................Municipal Bond
PCR ...................................................Pollution Control Revenue
RAN ...................................................Revenue Anticipation Note
RAW ...............................................Revenue Anticipation Warrants
RB ................................................................Revenue Bond
TAN .......................................................Tax Anticipation Note
TECP.................................................Tax Exempt Commercial Paper
TRAN...........................................Tax and Revenue Anticipation Note
</FN>
</TABLE>
See Accompanying Notes to Financial Statements.
15
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
MUNICIPAL MONEY MARKET PORTFOLIO
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED
AUGUST 31, 1995
<S> <C>
INVESTMENT INCOME
Interest ............................ $ 12,433,286
------------
EXPENSES
Investment advisory fees ............ 1,109,073
Administration fees ................. 328,023
Distribution fees ................... 1,837,762
Directors' fees ..................... 2,936
Custodian fees ...................... 76,400
Transfer agent fees ................. 215,821
Legal fees .......................... 27,428
Audit fees .......................... 18,863
Registration fees ................... 118,998
Amortization expense ................ 2,726
Insurance expense ................... 9,739
Printing expense .................... 69,197
Miscellaneous ....................... 24
------------
3,816,990
Less fees waived .................... (1,063,867)
Less expense reimbursement by advisor (11,593)
------------
TOTAL EXPENSES ................... 2,741,530
------------
NET INVESTMENT INCOME .................. 9,691,756
------------
REALIZED GAIN ON INVESTMENTS ........... 7,009
------------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS ..................... $ 9,698,765
============
</TABLE>
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN NET ASSETS
For the For the
Year Ended Year Ended
August 31, 1995 August 31, 1994
------------- -------------
<S> <C> <C>
Increase (decrease) in net assets:
Operations:
Net Investment Income ...... $ 9,691,756 $ 6,301,720
Net gain (loss) on
investments .............. 7,009 (10,833)
------------- -------------
Net increase in net assets
resulting from
operations ............... 9,698,765 6,290,887
------------- -------------
Dividends to shareholders from
net investment income:
Bedford shares ($.0297 and
$.0195, respectively,
per share) ............... (5,717,451) (4,374,300)
Bradford shares ($.0297 and
$.0195, respectively,
per share) ............... (3,266,535) (1,924,607)
Cash Preservation shares
($.0281 and $.0174,
respectively, per share) . (5,648) (2,703)
Janney Montgomery Scott
shares ($.0063 per share
for 1995) ................ (701,975) --
RBB shares ($.0279 and
$.0172, respectively,
per share) ............... (147) (90)
Sansom Street shares ($.0185
per share for 1994) ...... -- (20)
------------- -------------
Total dividends to
shareholders ........... (9,691,756) (6,301,720)
------------- -------------
Net capital share
transactions ............... 140,043,103 (10,002,056)
------------- -------------
Total increase (decrease) in
net assets ................. 140,050,112 (10,012,889)
Net Assets:
Beginning of Year .......... 282,703,751 292,716,640
------------- -------------
End of year ................ $ 422,753,863 $ 282,703,751
============= =============
</TABLE>
See Accompanying Notes to Financial Statements.
16
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
GOVERNMENT OBLIGATIONS MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS
AUGUST 31, 1995
<TABLE>
<CAPTION>
Par
(000) Value
------------- -------------
<S> <C> <C>
AGENCY OBLIGATIONS--48.5%
Federal Farm Credit Bank
6.070% 06/03/1996 .......................... $ 10,000 $ 10,016,493
5.600% 07/01/1996 .......................... 7,000 6,994,348
Federal Home Loan Bank Variable
Rate Notes (DAGGER)
5.920% 09/01/1995 .......................... 5,000 4,999,601
5.940% 09/01/1995 .......................... 10,000 9,999,628
5.655% 11/02/1995 .......................... 10,000 9,997,057
Federal Home Loan Bank
5.500% 10/06/1995 .......................... 10,000 9,946,528
9.500% 12/26/1995 .......................... 5,000 5,047,065
6.000% 01/08/1996 .......................... 5,000 4,892,500
5.370% 01/16/1996 .......................... 8,875 8,693,632
6.787% 02/15/1996 .......................... 5,000 5,002,375
6.850% 02/28/1996 .......................... 10,000 10,047,468
5.800% 04/29/1996 .......................... 4,000 3,844,689
Federal Home Loan Mortgage Corp.
5.400% 01/05/1996 .......................... 5,080 4,983,988
5.500% 02/08/1996 .......................... 15,000 14,633,333
Federal National Mortgage Association
5.610% 10/10/1995 .......................... 5,000 4,969,612
5.530% 12/01/1995 .......................... 20,000 19,720,428
6.150% 01/02/1996 .......................... 5,000 4,894,938
5.560% 02/15/1996 .......................... 10,000 9,742,078
5.500% 02/28/1996 .......................... 4,000 3,890,000
5.590% 06/21/1996 .......................... 5,000 4,994,899
5.620% 07/02/1996 .......................... 5,000 4,991,419
Federal National Mortgage Association
Variable Rate Notes (DAGGER)
5.580% 09/01/1995 .......................... 5,000 5,000,000
5.580% 09/05/1995 .......................... 10,000 10,000,000
Student Loan Marketing Association
Variable Rate Notes (DAGGER)
5.650% 09/05/1995 .......................... 5,000 5,002,242
5.680% 09/05/1995 .......................... 15,000 15,000,000
5.690% 09/05/1995 .......................... 9,000 8,998,199
5.700% 09/05/1995 .......................... 5,000 5,000,000
5.710% 09/05/1995 .......................... 5,000 4,998,892
5.720% 09/05/1995 .......................... 3,500 3,501,470
5.750% 09/05/1995 .......................... 15,000 14,991,922
5.875% 09/05/1995 .......................... 3,850 3,855,494
5.900% 09/05/1995 .......................... 5,000 5,016,077
6.080% 07/01/1996 .......................... 5,000 5,000,000
-------------
TOTAL AGENCY OBLIGATIONS
(Cost $248,666,375) .................... 248,666,375
-------------
</TABLE>
<TABLE>
<CAPTION>
Par
(000) Value
------------- -------------
<S> <C> <C>
REPURCHASE AGREEMENTS--51.4%
Morgan Stanley & Co.
5.750% 09/08/1995 .......................... $ 100,000 $ 100,000,000
(Agreement dated 08/23/95 to be
repurchased at $100,255,556,
collateralized by $117,065,920
Federal Home Loan Mortgage Corp. .........
due 01/04/25. Market value of
collateral is $102,214,625.)
Goldman Sachs & Co.
5.850% 09/01/1995 .......................... 70,000 70,000,000
(Agreement dated 08/31/95 to be
repurchased at $70,011,375,
collateralized by $73,420,524
Federal National Mortgage Corp. ..........
due 01/01/34. Market value of
collateral is $72,100,000.)
PaineWebber Incorporated
5.875% 09/01/1995 .......................... 93,300 93,300,000
(Agreement dated 08/31/95 to be
repurchased at $93,315,226,
collateralized by $59,243,863
Federal Home Loan Mortgage Corp. .........
5.00% to 6.50% due 01/01/09 to
12/01/25, $137,402,251. Federal
Home Loan Mortgage Corp. Strip
due 02/01/23 to 02/01/24.Market
value of collateral is $96,101,852.)
-------------
TOTAL REPURCHASE AGREEMENTS
(Cost $263,300,000) .................... 263,300,000
-------------
TOTAL INVESTMENTS AT VALUE--99.9%
(Cost $511,966,375*) ....................... 511,966,375
OTHER ASSETS IN EXCESS
OF LIABILITIES--0.1% ....................... 525,981
-------------
NET ASSETS (Applicable to 163,391,651 Bedford
shares, 46,506,635 Bradford shares,
302,560,496 Janney Montgomery Scott shares
and 800 other shares)--100.0% $512,492,356
=============
NET ASSET VALUE, offering and
redemption price per share
($512,492,356 / 512,459,582) $1.00
=====
<FN>
* Also cost for Federal income tax purposes.
(DAGGER) Variable Rate Obligations -- The interest rate is the rate as of August
31, 1995 and the maturity shown is the longer of the next interest
readjustment date or the date the principal amount shown can be
recovered through demand.
</FN>
</TABLE>
See Accompanying Notes to Financial Statements.
17
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
GOVERNMENT OBLIGATIONS MONEY MARKET PORTFOLIO
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED
AUGUST 31, 1995
<S> <C>
INVESTMENT INCOME
Interest ........................ $ 15,488,988
------------
EXPENSES
Investment advisory fees ........ 1,178,485
Distribution fees ............... 1,542,378
Directors' fees ................. 2,517
Custodian fees .................. 57,563
Transfer agent fees ............. 185,270
Legal fees ...................... 13,894
Audit fees ...................... 15,405
Registration fees ............... 74,318
Start up costs .................. 927
Insurance expense ............... 7,762
Printing expense ................ 52,537
Miscellaneous ................... 331
------------
3,131,387
Less fees waived ................ (497,494)
------------
TOTAL EXPENSES ............... 2,633,893
------------
NET INVESTMENT INCOME .............. 12,855,095
------------
REALIZED GAIN ON INVESTMENTS ....... 41,241
------------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS ................. $ 12,896,336
============
</TABLE>
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN NET ASSETS
FOR THE FOR THE
YEAR ENDED YEAR ENDED
AUGUST 31, 1995 AUGUST 31, 1994
------------- -------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
Operations:
Net investment income ..... $ 12,855,095 $ 6,187,200
Net gain on investments ... 41,241 23,663
------------- -------------
Net increase in net assets
resulting from
operations .............. 12,896,336 6,210,863
------------- -------------
Dividends to shareholders from
net investment income:
Bedford shares ($.0475 and
$.0270 respectively,
per share) .............. (7,551,189) (5,073,158)
Bradford shares ($.0475 and
$.0270, respectively,
per share) .............. (2,071,772) (1,114,042)
Janney Montgomery Scott
shares ($.0109 per share
for 1995) ............... (3,232,134) --
------------- -------------
Total dividends to
shareholders .......... (12,855,095) (6,187,200)
------------- -------------
Net capital share
transactions .............. 306,300,108 (58,137,875)
------------- -------------
Total increase (decrease) in
net assets ................ 306,341,349 (58,114,212)
NET ASSETS:
Beginning of year ......... 206,151,007 264,265,219
------------- -------------
End of year ............... $ 512,492,356 $ 206,151,007
============= =============
</TABLE>
See Accompanying Notes to Financial Statements.
18
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
FINANCIAL HIGHLIGHTS (B)
(FOR A SHARE OUTSTANDING THROUGHOUT EACH YEAR)
<TABLE>
<CAPTION>
Money Market Portfolio
-------------------------------------------------------------------------------
For the For the For the For the For the
Year Ended Year Ended Year Ended Year Ended Year Ended
August 31, 1995 August 31, 1994 August 31, 1993 August 31, 1992 August 31, 1991
--------------- --------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C> <C>
Net asset value,
beginning of year............... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------------ ------------ ------------ ------------ ------------
Income from investment operations:
Net investment income........... 0.0486 0.0278 0.0243 0.0375 0.0629
Net gains on securities (both
realized and unrealized)....... -- -- -- 0.0007 --
------------ ------------ ------------ ------------ ------------
Total from investment
operations.................. 0.0486 0.0278 0.0243 0.0382 0.0629
------------ ------------ ------------ ------------ ------------
Less distributions
Dividends (from net investment
income)........................ (0.0486) (0.0278) (0.0243) (0.0375) (0.0629)
Distributions (from capital
gains)......................... -- -- -- (0.0007) --
------------ ------------ ------------ ------------ ------------
Total distributions.......... (0.0486) (0.0278) (0.0243) (0.0382) (0.0629)
------------ ------------ ------------ ------------ ------------
Net asset value, end of year ..... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
============ ============ ============ ============ ============
Total Return...................... 4.97% 2.81% 2.46% 3.89% 6.48%
Ratios /Supplemental Data
Net assets, end of year......... $935,821,424 $710,737,481 $782,153,438 $736,841,928 $747,530,400
Ratios of expenses to average
net assets.................. .96%(a) .95%(a) .95%(a) .95%(a) .92%(a)
Ratios of net investment income
to average net assets ......... 4.86% 2.78% 2.43% 3.75% 6.29%
</TABLE>
<TABLE>
<CAPTION>
Municipal Money Market Portfolio
-------------------------------------------------------------------------------
For the For the For the For the For the
Year Ended Year Ended Year Ended Year Ended Year Ended
August 31, 1995 August 31, 1994 August 31, 1993 August 31, 1992 August 31, 1991
--------------- --------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C> <C>
Net asset value,
beginning of year............... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------------ ------------ ------------ ------------ ------------
Income from investment operations:
Net investment income........... 0.0297 0.0195 0.0195 0.0287 0.0431
Net gains on securities (both
realized and unrealized)....... -- -- -- -- --
------------ ------------ ------------ ------------ ------------
Total from investment
operations.................. 0.0297 0.0195 0.0195 0.0287 0.0431
------------ ------------ ------------ ------------ ------------
Less distributions
Dividends (from net investment
income)........................ (0.0297) (0.0195) (0.0195) (0.0287) (0.0431)
Distributions (from capital
gains)......................... -- -- -- -- --
------------ ------------ ------------ ------------ ------------
Total distributions.......... (0.0297) (0.0195) (0.0195) (0.0287) (0.0431)
------------ ------------ ------------ ------------ ------------
Net asset value, end of year ..... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
============ ============ ============ ============ ============
Total Return...................... 3.01% 1.97% 1.96% 2.90% 4.40%
Ratios /Supplemental Data
Net assets, end of year......... $198,424,813 $182,480,069 $215,577,193 $176,949,886 $215,139,746
Ratios of expenses to average
net assets.................. .82%(a) .77%(a) .77%(a) .77%(a) .74%(a)
Ratios of net investment income
to average net assets ......... 2.97% 1.95% 1.95% 2.87% 4.31%
<FN>
(a) Without the waiver of advisory and administration fees and without the
reimbursement of certain operating expenses, the ratios of expenses to
average net assets for the Money Market Portfolio would have been 1.17%,
1.16%, 1.19%, 1.20% and 1.17% for the years ended August 31, 1995, 1994,
1993,1992 and 1991, respectively. For the Municipal Money Market Portfolio,
the ratios of expenses to average net assets would have been 1.14%, 1.12%,
1.16%, 1.15% and 1.13% for the years ended August 31, 1995, 1994, 1993,
1992 and 1991, respectively.
(b) Financial Highlights relate solely to the Bedford Class of shares within
each portfolio.
</FN>
</TABLE>
See Accompanying Notes to Financial Statements.
19
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
FINANCIAL HIGHLIGHTS (B)
(FOR A SHARE OUTSTANDING THROUGHOUT EACH YEAR)
<TABLE>
<CAPTION>
Government Obligations Money Market Portfolio
-------------------------------------------------------------------------------
For the For the For the For the For the
Year Ended Year Ended Year Ended Year Ended Year Ended
August 31, 1995 August 31, 1994 August 31, 1993 August 31, 1992 August 31, 1991
--------------- --------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C> <C>
Net asset value,
beginning of year........ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------------ ------------ ------------ ------------ ------------
Income from investment
operations:
Net investment income.... .0475 .0270 .0231 .0375 .0604
Net gains on securities..
(both realized and
unrealized)............. -- -- -- .0009 --
------------ ------------ ------------ ------------ ------------
Total from investment
operations........... .0475 .0270 .0231 .0384 .0604
------------ ------------ ------------ ------------ ------------
Less distributions
Dividends (from net
investment income)...... (.0475) (.0270) (.0231) (.0375) (.0604)
Distributions (from
capital gains).......... -- -- -- (.0009) --
------------ ------------ ------------ ------------ ------------
Total distributions.... (.0475) (.0270) (.0231) (.0384) (.0604)
------------ ------------ ------------ ------------ ------------
Net asset value,
end of year.............. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
============ ============ ============ ============ ============
Total Return............... 4.86% 2.73% 2.33% 3.91% 6.21%
Ratios /Supplemental Data
Net assets, end of year.. $163,397,914 $166,417,793 $213,741,440 $225,100,981 $368,898,941
Ratios of expenses to
average net assets...... .975%(a) .975%(a) .975%(a) .975%(a) .95%(a)
Ratios of net investment
income to average
net assets.............. 4.75% 2.70% 2.31% 3.75% 6.04%
<FN>
(a) Without the waiver of advisory fees and without the reimbursement of
certain operating expenses, the ratios of expenses to average net assets
for the Government Obligations Money Market Portfolio would have been
1.13%, 1.17%, 1.18%, 1.12% and 1.13% for the years ended August 31, 1995,
1994, 1993, 1992 and 1991, respectively.
(b) Financial Highlights relate solely to the Bedford Class of shares within
the portfolio.
</FN>
</TABLE>
See Accompanying Notes to Financial Statements.
20
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
NOTES TO FINANCIAL STATEMENTS
AUGUST 31, 1995
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.
The Fund has authorized capital of thirty billion shares of common stock of
which 12.2 billion shares are currently classified into sixty-one classes. Each
class represents an interest in one of seventeen investment portfolios of the
Fund, fifteen of which are currently in operation. The classes have been grouped
into fifteen separate "families", eight of which have begun investment
operations: the RBB Family, the BEA Family, the Sansom Street Family, the
Bedford Family, the Cash Preservation Family, Janney Montgomery Scott Money
Funds, the Warburg Pincus Family and the Bradford Family. The Bedford Family
represents interests in four portfolios, three of which are covered in this
report.
A) SECURITY VALUATION -- Portfolio securities are valued under the
amortized cost method, which approximates current market value. Under this
method, securities are valued at cost when purchased and thereafter a
constant proportionate amortization of any discount or premium is recorded
until maturity of the security. Regular review and monitoring of the
valuation is performed in an attempt to avoid dilution or other unfair
results to shareholders. The Fund seeks to maintain net asset value per
share at $1.00 for these portfolios.
B) 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. Certain expenses, principally distribution, transfer
agency 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.
C) DISTRIBUTIONS TO SHAREHOLDERS -- Dividends from net investment
income are declared daily and paid monthly. Any net realized capital gains
will be distributed at least annually. Income distributions and capital
gain distributions are determined in accordance with tax regulations which
may differ from generally accepted accounting principals.
D) FEDERAL INCOME TAXES -- No provision is made for Federal taxes
as it is the Fund's intention to have each portfolio continue to 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.
E) REPURCHASE AGREEMENTS -- Money market instruments may be
purchased subject to the seller's agreement to repurchase them at an agreed
upon date and price. The seller will be required on a daily basis to
maintain the value of the securities subject to the agreement at not less
than the repurchase price. The agreements are conditioned upon the
collateral being deposited under the Federal Reserve book-entry system or
with the Fund's custodian or a third party sub-custodian.
21
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
AUGUST 31, 1995
NOTE 2. TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES
Pursuant to Investment Advisory Agreements, PNC Institutional Management
Corporation ("PIMC"), a wholly subsidiary of PNC Asset Management Group, Inc.,
which is in turn a wholly owned subsidiary of PNC Bank, National Association
("PNC Bank"), serves as investment advisor for the three portfolios described
herein. PNC Bank serves as the sub-advisor for the Money Market, the Municipal
Money Market and the Government Obligations Money Market Portfolios.
For its advisory services, PIMC is entitled to receive the following fees,
computed daily and payable monthly based on each of the three portfolio's
average daily net assets:
<TABLE>
Portfolio Annual Rate
- ------------------------------------- --------------------------------------------
<S> <C>
Money Market and Government .45% of first $250 million of net assets;
Obligations Money Market Portfolios .40% of next $250 million of net assets;
.35% of net assets in excess of $500 million.
Municipal Money Market .35% of first $250 million of net assets;
Portfolio .30% OF NEXT $250 MILLION OF NET ASSETS;
.25% of net assets in excess of $500 million.
</TABLE>
PIMC may, at its discretion, voluntarily waive all or any portion of its
advisory fee for these portfolios. For each class of shares within a respective
portfolio, the net advisory fee charged to each class is the same on a relative
basis. For the year ended August 31, 1995, advisory fees and waivers for the
three investment portfolios were as follows:
<TABLE>
<CAPTION>
Gross Net
Advisory Advisory
Fee Waiver Fee
---------- ------------ ----------
<S> <C> <C> <C>
Money Market Portfolio $4,864,529 $(2,589,832) $2,274,697
Municipal Money Market Portfolio 1,109,073 (1,041,321) 67,752
Government Obligations Money Market Portfolio 1,178,485 (398,363) 780,122
</TABLE>
PNC Bank, as sub-advisor, receives a fee directly from PIMC, not the
portfolios. In addition, PNC Bank serves as custodian for each of the Fund's
portfolios. PFPC Inc. ("PFPC"), an indirect wholly owned subsidiary of PNC Bank
Corp., serves as each class's transfer and dividend disbursing agent.
22
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
AUGUST 31, 1995
NOTE 2. TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES (CONTINUED)
PFPC may, at its discretion, voluntarily waive all or any portion of its
transfer agency fee for any class of shares. For the year ended August 31, 1995,
transfer agency fees and waivers for each class of shares within the three
investment portfolios were as follows:
<TABLE>
<CAPTION>
Gross Net
Transfer Agency Transfer Agency
Fee Waiver Fee
--------------- ----------- --------------
<S> <C> <C> <C>
Money Market Portfolio
Bedford Class $1,329,085 $ -- $1,329,085
Cash Preservation Class 8,313 (7,540) 773
Janney Montgomery Scott Class 175,935 (65,014) 110,921
RBB Class 8,210 (8,010) 200
Sansom Street Class 14,595 -- 14,595
---------- ---------- ----------
Total Money Market Portfolio $1,536,138 $ (80,564) $1,455,574
========== ========== ==========
Municipal Money Market Portfolio
Bedford Class $ 96,491 $ -- $ 96,491
Bradford Class 57,980 -- 57,980
Cash Preservation Class 8,669 (7,896) 773
Janney Montgomery Scott Class 44,239 -- 44,239
RBB Class 8,442 (8,417) 25
---------- ---------- ----------
Total Municipal Money Market Portfolio $ 215,821 $ (16,313) $ 199,508
========== ========== ==========
Government Obligations Money Market Portfolio
Bedford Class $ 54,468 $ -- $ 54,468
Bradford Class 21,155 -- 21,155
Janney Montgomery Scott Class 109,647 (99,130) 10,517
---------- ---------- ----------
Total Government Obligations Money Market Portfolio $ 185,270 $ (99,130) $ 86,140
========== ========== ==========
</TABLE>
In addition, PFPC serves as administrator for the Municipal Money Market
Portfolio. The administration fee is computed daily and payable monthly at an
annual rate of .10% of the Portfolio's average daily assets. PFPC may, at its
discretion, voluntarily waive all or any portion of its administration fee for
the portfolio. For the year ended August 31, 1995, the administration fees and
waivers for the Municipal Money Market Portfolio were as follows:
<TABLE>
<CAPTION>
Gross Net
Administration Administration
Fee Waiver Fee
-------------- ---------- --------------
<S> <C> <C> <C>
Municipal Money Market Portfolio $ 328,023 $ (6,233) $ 321,790
</TABLE>
The Fund, on behalf of each class of shares within the three investment
portfolios, has adopted Distribution Plans pursuant to Rule 12b-1 under the
Investment Company Act of 1940, as amended, and has entered into Distribution
Contracts with Counsellors Securities Inc. ("Counsellors"), which provide for
each class to make monthly payments, based on average net assets, to Counsellors
of up to .65% on an annualized basis for the Bedford, Bradford, Cash
Preservation, Janney Montgomery Scott and RBB Classes and up to .20% on an
annualized basis for the Sansom Street Class.
23
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
AUGUST 31, 1995
NOTE 2. TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES (CONTINUED)
For the year ended August 31, 1995, distribution fees for each class were
as follows:
Distribution
Fee
------------
Money Market Portfolio
Bedford Class $4,414,365
Cash Preservation Class 931
Janney Montgomery Scott Class 569,268
RBB Class 209
Sansom Street Class 228,060
----------
Total Money Market Portfolio $5,212,833
==========
Municipal Money Market Portfolio
Bedford Class $1,088,864
Bradford Class 599,080
Cash Preservation Class 814
Janney Montgomery Scott Class 148,984
RBB Class 20
----------
Total Municipal Money Market Portfolio $1,837,762
==========
Government Obligations Money Market Portfolio
Bedford Class $ 913,275
Bradford Class 234,193
Janney Montgomery Scott Class 394,910
----------
Total Government Obligations Money Market Portfolio $1,542,378
==========
The Fund has entered into service agreements with banks affiliated with PNC
Bank who render support services to customers who are the beneficial owners of
the Sansom Street Class in consideration of the payment of .10% of the daily net
asset value of such shares. For the year ended August 31, 1995, service
organization fees were $391,361 for the Money Market Portfolio and $0 for the
Municipal Money Market Portfolio.
24
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
AUGUST 31, 1995
NOTE 3. CAPITAL SHARES
Transactions in capital shares (at $1 per capital share) for each year were
as follows:
<TABLE>
<CAPTION>
Money Market Portfolio Municipal Money Market Portfolio
---------------------------------- ----------------------------------
For the For the For the For the
Year Ended Year Ended Year Ended Year Ended
August 31, 1995 August 31, 1994 August 31, 1995 August 31, 1994
--------------- --------------- --------------- ---------------
Value Value Value Value
--------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C>
Shares sold:
Bedford Class $ 2,966,911,277 $ 2,789,452,640 $ 1,104,088,188 $ 1,292,822,671
Bradford Class -- -- 474,166,249 448,473,166
Cash Preservation Class 84,527 908,824 175,548 271,085
Janney Montgomery
Scott Class 855,058,809 -- 208,067,881 --
RBB Class 31,504 43,426 5,004 1,400
Sansom Street Class 1,864,628,110 1,517,145,765 -- 15,321
Shares issued in reinvestment of dividends:
Bedford Class 37,681,204 20,973,730 5,576,408 4,271,511
Bradford Class -- -- 3,126,860 1,855,281
Cash Preservation Class 11,226 26,123 5,478 2,566
Janney Montgomery Scott Class 4,534,944 -- 662,565 --
RBB Class 2,500 1,551 146 90
Sansom Street Class 16,689,941 7,714,640 -- 20
Shares repurchased:
Bedford Class (2,779,499,052) (2,881,789,878) (1,093,651,142) (1,330,256,087)
Bradford Class -- -- (466,448,018) (427,210,857)
Cash Preservation Class (91,268) (1,932,859) (220,601) (229,848)
Janney Montgomery
Scott Class (415,944,656) -- (95,506,391) --
RBB Class (23,917) (57,526) (5,072) (1,902)
Sansom Street Class (1,813,444,951) (1,341,896,149) -- (16,473)
--------------- --------------- --------------- ---------------
NET INCREASE (DECREASE)$ 736,630,198 $ 110,590,287 $ 140,043,103 $ (10,002,056)
=============== =============== =============== ===============
Bedford Shares authorized 1,500,000,000 1,500,000,000 500,000,000 500,000,000
=============== =============== =============== ===============
</TABLE>
25
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
AUGUST 31, 1995
NOTE 3. CAPITAL SHARES (CONTINUED)
<TABLE>
<CAPTION>
Government Obligations Money Market Portfolio
---------------------------------------------
For the For the
Year Ended Year Ended
August 31, 1995 August 31, 1994
--------------- ---------------
Value Value
--------------- ---------------
<S> <C> <C>
Shares sold:
Bedford Class $ 461,728,190 $ 490,275,372
Bradford Class 192,414,935 160,520,309
Janney Montgomery Scott Class 533,143,649 --
Shares issued in reinvestment of dividends:
Bedford Class 7,147,384 4,963,642
Bradford Class 2,029,050 1,078,122
Janney Montgomery Scott Class 3,065,158 --
Shares repurchased:
Bedford Class (471,908,601) (542,581,763)
Bradford Class (187,671,346) (172,393,557)
Janney Montgomery Scott Class (233,648,311) --
------------- -------------
Net increase (decrease) $ 306,300,108 $ (58,137,875)
============= =============
Bedford Shares authorized 500,000,000 500,000,000
============= =============
</TABLE>
NOTE 4. NET ASSETS
At August 31, 1995, net assets consisted of the following:
<TABLE>
<CAPTION>
Government
Municipal Obligations
Money Market Money Market Money Market
Portfolio Portfolio Portfolio
--------------- --------------- ---------------
<S> <C> <C> <C>
Capital paid-in:
Bedford Class $ 935,832,262 $ 198,494,293 $ 163,391,651
Bradford Class -- 110,935,556 46,506,635
Cash Preservation Class 235,665 161,271 --
Janney Montgomery Scott Class 443,649,097 113,224,055 302,560,496
RBB Class 55,401 4,939 --
Sansom Street Class 441,618,989 -- --
Other Classes 800 800 800
Accumulated net realized gain (loss) on investments:
Bedford Class (10,838) (69,480) 6,263
Bradford Class -- 546 2,163
Cash Preservation Class (2) 6 --
Janney Montgomery Scott Class (4,498) 1,877 24,348
RBB CLASS -- -- --
Sansom Street Class (5,188) -- --
--------------- --------------- ---------------
$ 1,821,371,688 $ 422,753,863 $ 512,492,356
=============== =============== ===============
</TABLE>
26
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
AUGUST 31, 1995
NOTE 5. CAPITAL LOSS CARRYOVERS
At August 31, 1995, capital loss carryovers were available to offset future
realized gains as follows: $20,526 in the Money Market Portfolio of which $2,062
expires in 2002, $18,464 expires in 2003; and $67,051 in the Municipal Money
Market Portfolio of which $55,760 expires in 1999, $444 expires in 2000, $1,058
expires in 2001 and $9,789 expires in 2002.
NOTE 6. OTHER FINANCIAL HIGHLIGHTS
The Fund currently offers four other classes of shares representing
interests in the Money Market Portfolio: Cash Preservation, Janney Montgomery
Scott, RBB and Sansom Street. The Fund currently offers four other classes of
shares representing interests in the Municipal Money Market Portfolio: Bradford,
Cash Preservation, Janney Montgomery Scott and RBB. The Fund currently offers
two other classes of shares representing an interest in the Government
Obligations Money Market Portfolio: Bradford and Janney Montgomery Scott. Each
class is marketed to different types of investors. Financial Highlights of the
RBB and Cash Preservation Classes are not presented in this report due to their
immateriality. Such information is available in the annual reports of each
respective family. The financial highlights of certain of the other classes are
as follows:
<TABLE>
<CAPTION>
BRADFORD GOVERNMENT OBLIGATIONS MONEY MARKET SHARES
For the Period
For the For the For the January 10, 1992
Year Year Year (Commencement of
Ended Ended Ended Operations) to
August 31, 1995 August 31, 1994 August 31, 1993 August 31, 1992
--------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period .............. $ 1.00 $ 1.00 $ 1.00 $ 1.00
------------ ------------ ------------ -----------
Income from investment operations:
Net investment income ........................... 0.0475 0.0270 0.0231 0.0208
Net gains on securities (both realized
and unrealized)............................... -- -- -- 0.0009
------------ ------------ ------------ -----------
Total from investment operations .............. 0.0475 0.0270 0.0231 0.0217
------------ ------------ ------------ -----------
Less distributions
Dividends (from net investment income) .......... (0.0475) (0.0270) (0.0231) (0.0208)
Distributions (from capital gains) .............. -- -- -- (0.0009)
------------ ------------ ------------ -----------
Total distributions ........................... (0.0475) (0.0270) (0.0231) (0.0217)
------------ ------------ ------------ -----------
Net asset value, end of period .................... $ 1.00 $ 1.00 $ 1.00 $ 1.00
============ ============ ============ ===========
Total Return ...................................... 4.86% 2.73% 2.33% 3.42%(b)
Ratios /Supplemental Data
Net assets, end of period ....................... $ 46,508,798 $ 39,732,414 $ 50,522,979 $42,476,965
Ratios of expenses to average net assets ........ .975%(a) .975%(a) .975%(a) .975%(a)(b)
Ratios of net investment income to average
net asset .................................... 4.75% 2.70% 2.31% 3.23%(b)
<FN>
(a) Without the waiver of advisory fees and without the reimbursement of
certain operating expenses, the ratios of expenses to average net assets
would have been 1.13%, 1.18% and 1.18% for the years ended August 31, 1995,
1994, and 1993, respectively and 1.15% annualized for the period ended
August 31, 1992.
(b) Annualized.
</FN>
</TABLE>
27
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
AUGUST 31, 1995
NOTE 6. OTHER FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
BRADFORD MUNICIPAL MONEY MARKET SHARES
For the Period
For the For the For the January 10, 1992
Year Year Year (Commencement of
Ended Ended Ended Operations) to
August 31, 1995 August 31, 1994 August 31, 1993 August 31, 1992
---------------- ---------------- ---------------- ----------------
<S> <C> <C> <C> <C>
Net asset value, beginning of period ... $ 1.00 $ 1.00 $ 1.00 $ 1.00
---------------- ---------------- ---------------- ----------------
Income from investment operations:
Net investment income ................ 0.0297 0.0195 0.0195 0.0154
---------------- ---------------- ---------------- ----------------
Total from investment operations ... 0.0297 0.0195 0.0195 0.0154
---------------- ---------------- ---------------- ----------------
Less distributions
Dividends (from net investment income) (0.0297) (0.0195) (0.0195) (0.0154)
---------------- ---------------- ---------------- ----------------
Total distributions ................ (0.0297) (0.0195) (0.0195) (0.0154)
---------------- ---------------- ---------------- ----------------
Net asset value, end of period ......... $ 1.00 $ 1.00 $ 1.00 $ 1.00
================ ================ ================ ================
Total Return ........................... 3.01% 1.97% 1.96% 2.42%(b)
Ratios /Supplemental Data
Net assets, end of period ............ $ 110,936,102 $ 100,089,172 $ 76,975,393 $ 69,586,281
Ratios of expenses to average
net assets ........................ .82%(a) .77%(a) .77%(a) .77%(a)(b)
Ratios of net investment income
to average net assets ............. 2.97% 1.95% 1.95% 2.40%(b)
<FN>
(a) Without the waiver of advisory and administration fees and without the
reimbursement of certain operating expenses, the ratios of expenses to
average net assets would have been 1.14%, 1.11% and 1.16% for the years
ended August 31, 1995, 1994 and 1993, respectively, and 1.16% annualized
for the period ended August 31, 1992.
(b) Annualized.
</FN>
</TABLE>
28
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
AUGUST 31, 1995
NOTE 6. OTHER FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
THE JANNEY MONTGOMERY SCOTT FAMILY
Government
Money Market Municipal Money Obligations Money
Portfolio Market Portfolio Market Portfolio
---------------- ---------------- ----------------
For the Period For the Period For the Period
June 12, 1995 June 12, 1995 June 12, 1995
(Commencement of (Commencement of (Commencement of
Operations) to Operations) to Operations) to
August 31, 1995 August 31, 1995 August 31, 1995
--------------- --------------- ---------------
<S> <C> <C> <C>
Net asset value, beginning of period ............. $ 1.00 $ 1.00 $ 1.00
------------ ------------ ------------
Income from investment operations:
Net investment income .......................... 0.0112 0.0063 0.0109
------------ ------------ ------------
Total from investment operations ............. 0.0112 0.0063 0.0109
------------ ------------ ------------
Less distributions
Dividends (from net investment income) ......... (0.0112) (0.0063) (0.0109)
------------ ------------ ------------
Total distributions .......................... (0.0112) (0.0063) (0.0109)
------------ ------------ ------------
Net asset value, end of period ................... $ 1.00 $ 1.00 $ 1.00
============ ============ ============
Total Return ..................................... 5.30%(b) 2.87%(b) 5.03%(b)
Ratios /Supplemental Data
Net assets, end of period ...................... $443,644,599 $113,225,932 $302,584,844
Ratios of expenses to average net assets ....... 1.00%(a)(b) 1.00%(a)(b) 1.00%(a)(b)
Ratios of net investment income to average
net assets .................................. 5.04%(b) 2.83%(b) 4.91%(b)
<FN>
(a) Without the waiver of advisory, administration and transfer agent fees and
without the reimbursement of certain operating expenses, the ratios of
expenses to average net assets for the Money Market Portfolio would have
been 1.23% annualized for the period ended August 31, 1995. For the
Municipal Money Market Portfolio, the ratio of expenses to average net
assets would have been 1.30% annualized for the period ended August 31,
1995. For the Government Obligations Money Market Portfolio, the ratio of
expenses to average net assets would have been 1.28% annualized for the
period ended August 31, 1995. For the New York Municipal Money Market
Portfolio, the ratio of expenses to average net assets would have been
1.41% annualized for the period ended August 31, 1995.
(b) Annualized.
</FN>
</TABLE>
29
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONCLUDED)
AUGUST 31, 1995
NOTE 6. OTHER FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
THE SANSOM STREET FAMILY
Money Market Portfolio
-------------------------------------------------------------------------------------
For the For the For the For the For the
Year Ended Year Ended Year Ended Year Ended Year Ended
August 31, 1995 August 31, 1994 August 31, 1993 August 31, 1992 August 31, 1991
--------------- --------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year ........ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------------- ------------- ------------- ------------- -------------
Income from investment operations:
Net investment income .................... 0.0543 0.0334 0.0304 0.0435 0.0684
Net gains on securities (both realized
and unrealized) ......................... -- -- -- 0.0007 --
------------- ------------- ------------- ------------- -------------
Total from investment operations ...... 0.0543 0.0334 0.0304 0.0442 0.0684
------------- ------------- ------------- ------------- -------------
Less distributions
Dividends (from net investment income) ... (0.0543) (0.0334) (0.0304) (0.0435) (0.0684)
Distributions (from capital gains) ....... -- -- -- (0.0007) --
------------- ------------- ------------- ------------- -------------
Total distributions ................... (0.0543) (0.0334) (0.0304) (0.0442) (0.0684)
------------- ------------- ------------- ------------- -------------
Net asset value, end of year ............... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
============= ============= ============= ============= =============
Total Return ............................... 5.57% 3.39% 3.08% 4.51% 7.06%
Ratios /Supplemental Data
Net assets, end of year .................. $ 441,613,801 $ 373,745,178 $ 190,794,098 $ 228,078,764 $ 138,417,995
Ratios of expenses to average net assets . .39%(a) .39%(a) .34%(a) .35%(a) .37%(a)
Ratios of net investment income to average
net assets .............................. 5.43% 3.34% 3.04% 4.35% 6.84%
<FN>
(a) Without the waiver of advisory fees and without the reimbursement of
certain operating expenses, the ratios of expenses to average net assets
for the Money Market Portfolio would have been .59%, .60%, .60%, .61% and
.61% for the years ended August 31, 1995, 1994, 1993, 1992 and 1991,
respectively.
</FN>
</TABLE>
30
<PAGE>
MORGAN
KEEGAN
ACCESS
ACCOUNT
ANNUAL REPORT
BEDFORD SHARES
AUGUST 31, 1995
MONEY MARKET PORTFOLIO
MUNICIPAL
MONEY MARKET PORTFOLIO
GOVERNMENT OBLIGATIONS
MONEY MARKET PORTFOLIO
<PAGE>
Morgan Keegan & Company, Inc./Morgan Keegan Tower/Fifty Front Street/Memphis,
Tennessee 38103
