THE RBB FAMILY
The RBB Fund, Inc.
[Logo]
Tax-Free Portfolio,
Government Securities Portfolio,
Money Market Portfolio,
Municipal Money Market Portfolio
Semi-Annual Report
February 28, 1995
<PAGE>
THE RBB FAMILY
The RBB Fund, Inc.
Semi-Annual Investment Adviser's Report
Last year, the fixed income markets were hard hit by rising interest
rates and derivative-related losses. The first quarter of 1995 got off to an
inauspicious start with another increase in short-term interest rates, the
financial crisis in Mexico, and the decline in the dollar. One area that
does appear to be experiencing a trend change is the pace of business
activity. In the fourth quarter of last year, the economy grew by a revised
4.6%, pushing the annual rate to 4.0%, the strongest showing in ten years.
Estimates for the first quarter average around 3%, based on signs of lower
consumer spending, declining auto sales and a softer housing market. In
recent congressional testimony, Fed Chairman Greenspan indicated that the
FOMC expects the economy to expand at a 2%-3% rate in 1995. Greenspan even
used the word "ease" in his recent testimony, causing the markets to rally
strongly, but temporarily, on the belief that the year long rise in interest
rates was about over.
The Fed also has reason to be pleased with the inflation numbers. The
fourth quarter GDP report revealed prices advanced only 1.3%, versus 1.9% in
the previous quarter. For the year, consumer prices were up 2.7%, exactly
the same as in 1993. The FOMC is estimating that consumer prices will
average 3.0%-3.5% in 1995.
Short-term interest rates continued their upward climb during the last
two quarters. The Federal Reserve tightened policy twice, in November and
February, for a total of 125 basis points, bringing the federal funds rate
to 6.00%. Fourth quarter economic reports continued to suggest that business
was expanding, and that further Fed action was likely in the new year. On
February 1st, the FOMC voted to increase the federal funds target and
discount rate 50 basis points to 6.00% and 5.25%, respectively. Although
this was the first interest rate hike of 1995, market expectations that it
would also be the last ignited a strong rally that flattened the yield
curve. Three and six-month Treasury bill yields fell to 5.83% and 6.11%,
respectively, while three and six-month LIBORs decreased to 6.19% and 6.38%,
respectively.
The big story in the municipal market was Orange County's bankruptcy
filing in December. This action shocked the short-term tax-free markets,
causing yields to rise by more than 50 basis points. In the wake of Orange
County, there have been reports of other derivative-related losses in
Florida and Wisconsin, but the markets have calmed down considerably from
year-end levels. The start of the new year saw the expected increase in
short-term tax-free assets from bond coupon payments and called bonds.
Increased demand for liquid, short-term investments, due to anticipation of
another rate increase by the Fed also contributed to the inflow of money
into short-term tax-exempts. By mid-January, some tax-free yields had fallen
to below 2.00%. This technical condition reversed itself by late January,
and the boost in the federal funds rate to 6.00% on February 1st helped to
push yields even higher. By the end of February, tax-free yields had
recovered to the 4% range.
The last few months also saw a decrease in long-term rates as economic
activity started to show signs of slowing. The two-year Treasury began the
period at 7.69% and steadily declined to 6.76% by February 28th. The
intermediate sector experienced a similar decline in rates with the
five-year decreasing from 7.83% at the end of December to 7.04% by the end
of the period. Longer yields followed a similar pattern with the 30-year
bond, which began the period at 7.88% and ended February at 7.44%.
In the corporate bond market, the spread widening which occurred during
the fourth quarter reversed itself during the first two months of 1995. Bank
bonds, which suffered the most spread widening late last year, tightened
early in 1995 as rates stabilized and then declined. Yankee corporate
spreads experienced some volatility during the period as Canadian budget
concerns initially pushed the entire sector wider. As the details of some
provincial budgets became public, spreads in the sector narrowed.
<PAGE>1
As municipal supply dwindled, yields in the tax-exempt bond market
declined in the fourth quarter despite the Orange County disaster and
further evidence of a robust economy. The Bond Buyer Index (BBI) fell 19
basis points to 6.71%, while the Revenue Index (RBI) fell 21 basis points to
6.97%. For the full year, a total of $163.1 billion of new bonds were sold,
down 44% from the record $291.9 billion sold in 1993. Yields continued to
decline in the new year as some evidence of a slowing economy coupled with
scant supply coaxed investors from the sidelines. By February, yields
declined to levels not seen since March, 1994. The Producer Price Index,
retail sales, housing starts, and industrial production all posted lower
than expected results. In addition, lack of supply further enhanced the
municipal market's posture. The BBI declined 38 basis points to 6.11%, while
the RBI declined 44 basis points to 6.34%. New issuance totalled $6.5
billion for the month, down 16.6% from the $7.8 billion sold in January, and
the lowest monthly volume since April 1988.
PNC Institutional Management Corporation
(For questions regarding your account, please contact
your broker or Counsellors Securities Inc., the Fund's
distributor by calling toll-free 800-888-9723.)
<PAGE>2
The RBB Family
The RBB Fund, Inc.
Tax-Free Portfolio
Statement of Net Assets
February 28, 1995
(Unaudited)
<TABLE>
<CAPTION>
Par
(000) Value
------ ------------
<S> <C> <C>
Arizona--2.2%
Phoenix GO Bond (AA+)
6.38% 07/01/2013 $100 $ 101,875
-----------
Georgia--8.6%
Georgia Municipal Electric Authority/
(FGIC Insurance) (AAA)
6.13% 01/01/2014 200 200,000
Gwinnett County GO Bonds (AA)
6.00% 01/01/2010 200 202,000
-----------
402,000
-----------
Kansas--4.3%
Kansas Department of Transportation
Series A (AA)
6.00% 09/01/2012 200 200,750
-----------
Kentucky--7.0%
Jefferson County PCR RB (Louisville
Gas and Electric Co.) Project A (AA)
7.45% 06/15/2015 300 325,500
-----------
Maryland--27.7%
Baltimore Maryland Consolidated Public
Improvement MB Series 1991C (AAA)
7.50% 10/15/2009 400 469,500
Baltimore Maryland Port Facility RB
Consolidated Coal Sales
Series 1984A (AA)
6.50% 10/01/2011 300 310,875
Maryland State Health & Higher
Education Authority RB (Johns
Hopkins Hospital) (AA-)
5.60% 07/01/2009 200 191,000
Montgomery County Parking RB
(Silver Spring Group)/
(FGIC Insurance) (AAA)
6.25% 06/01/2007 300 316,875
-----------
1,288,250
-----------
New Jersey--9.2%
New Jersey State Turnpike Authority
RB Refunding Series 1991 /
(MBIA Insurance) (AAA)
6.50% 01/01/2016 $400 $ 427,500
-----------
New Mexico--5.3%
New Mexico State University (AA)
5.70% 04/01/2009 250 245,625
-----------
North Carolina--4.3%
North Carolina Municipal Power
Agency Catawba Electric RB /
(MBIA Insurance) (AAA)
6.00% 01/01/2010 200 202,750
-----------
Ohio--6.3%
Ohio State University General
Receipt Bonds (AA-)
5.75% 12/01/2009 300 292,125
-----------
South Carolina--4.4%
Spartanburg Water Systems
Improvement RB (AA-)
6.20% 06/01/2009 200 204,500
-----------
Utah--1.2%
Intermountain Power Agency Utah
Power Supply RB Series B (AA)
7.63% 07/01/2008 50 53,813
-----------
Virginia--18.2%
Richmond MB (AA)
5.50% 01/15/2013 300 280,500
Roanoke County GO Bonds (AA)
5.55% 06/01/2008 200 194,250
Virginia State Transportation
Board (AA)
5.25% 05/15/2012 400 370,500
-----------
845,250
-----------
<PAGE>3
TOTAL INVESTMENTS AT VALUE -- 98.7%
(Cost $4,498,182*) $4,589,938
OTHER ASSETS IN EXCESS
OF LIABILITIES--1.3% 62,187
-----------
NET ASSETS (Applicable to
459,266 RBB shares) -- 100.0% 4,652,125
===========
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE
($4,652,125 / 459,266) $10.13
======
<FN>
* Also cost for Federal income tax purposes. The gross appreciation (depreciation) on a tax
basis is as follows:
Gross Appreciation $154,342
Gross Depreciation (62,586)
--------
Net Appreciation $ 91,756
========
The Moody's Investors Sevice, Inc. and Standard & Poor's Corporation's ratings indicated are
the most recent ratings available at February 28, 1995.
</FN>
</TABLE>
See Accompanying Notes to Financial Statements.
<PAGE>4
The RBB Family
The RBB Fund, Inc.
Tax-Free Portfolio
<TABLE>
<CAPTION>
Statement of Operations
For the Six Months Ended
February 28, 1995
(Unaudited)
<S> <C>
Investment Income
Interest $149,231
--------
Expenses
Investment advisory fees 11,912
Distribution fees 9,047
Custodian fees 6,075
Transfer agent fees 6,885
Registration fees 5,966
Printing expense 4,120
Other expenses 2,282
--------
46,287
Less fees waived (17,972)
Less expense reimbursement by advisor (17,350
--------
TOTAL EXPENSES 10,965
--------
NET INVESTMENT INCOME 138,266
--------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS
Amortized market discount 625
Net realized loss on investments (25,750)
Increase in net unrealized appreciation
on investments 10,837
--------
NET LOSS ON INVESTMENTS (14,288)
--------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS $123,978
========
</TABLE>
<TABLE>
<CAPTION>
Statement of Changes in Net Assets
For the For the
Six Months Ended Year Ended
February 28, 1995 August 31, 1994
----------------- ---------------
(Unaudited)
<S> <C> <C>
Decrease in net assets:
Operations:
Net investment income $ 138,266 $ 328,396
Net loss on investments (14,288) (334,661)
----------- -----------
Net increase (decrease) in
net assets resulting
from operations 123,978 (6,265)
----------- -----------
Distributions to shareholders:
Dividends to shareholders from
net investment income:
RBB shares ($.2814 and
$.6092, respectively,
per share) (138,266) (332,187)
Distributions to shareholders in
excess of net investment
income ($.0246 and $.0135,
respectively, per share) (10,399) (7,110)
Distributions to shareholders from
net realized capital gains:
RBB shares ($.2662 and
$.4886, respectively,
per share) (127,332) (276,466)
----------- -----------
Total distributions
to shareholders (275,997) (615,763)
----------- -----------
Net capital share transactions (660,815) (544,098)
----------- -----------
Total decrease in
net assets (812,834) (1,166,126)
Net Assets:
Beginning of period 5,464,959 6,631,085
----------- -----------
End of period $4,652,125 $5,464,959
=========== ===========
</TABLE>
See Accompanying Notes to Financial Statements.
<PAGE>5
The RBB Family
The RBB Fund, Inc.
Government Securities Portfolio
Statement of Assets and Liabilities
February 28, 1995
(Unaudited)
<TABLE>
<S> <C>
Assets:
Investments at value (Cost $50,193,282) $49,920,766
Cash 65,299
Interest receivable 405,481
Prepaid expenses 35,238
Investments sold unsettled 3,302,638
-----------
Total Assets 53,729,422
-----------
Liabilities:
Accrued Liabilities 363,829
-----------
NET ASSETS (Applicable to 5,589,475
RBB shares) $53,365,593
===========
NET ASSET VALUE AND REDEMPTION PRICE
PER SHARE ($53,365,593 / 5,589,475) $ 9.55
======
OFFERING PRICE PER SHARE
($9.55 / .9525) $10.03
======
</TABLE>
See Accompanying Notes to Financial Statements.
<PAGE>6
The RBB Family
The RBB Fund, Inc.
Government Securities Portfolio
Schedule of Investments
February 28, 1995
(Unaudited)
<TABLE>
<CAPTION>
Par
(000) Value
--------- -------------
<S> <C> <C>
AGENCY OBLIGATIONS--11.2%
Federal Home Loan Bank
7.90% 12/20/1996 $ 1,000 $ 1,011,470
------------
Federal Home Loan Mortgage Corp.
4.75% 02/02/1999 1,000 942,670
------------
Federal Farm Credit Bank
Agency Notes
6.05% 04/03/1995 1,000 1,000,030
------------
Federal National Mortgage
Association
8.25% 12/18/2000 1,000 1,045,030
7.90% 04/10/2002 1,000 1,004,710
7.80% 06/10/2002 1,000 1,000,910
------------
3,050,650
------------
TOTAL AGENCY OBLIGATIONS
(Cost $6,006,680) 6,004,820
------------
MORTGAGE BACKED OBLIGATIONS -- 8.7%
Government National Mortgage Association
11.00% 03/01/1996 123 130,523
9.50% 02/25/1998 379 401,456
7.00% 05/01/2000 843 818,339
9.00% 08/24/2000 428 444,284
7.00% 11/26/2000 951 923,021
9.75% 02/25/2004 1,630 1,695,158
7.82% 02/25/2022 218 214,504
------------
TOTAL MORTGAGE BACKED OBLIGATIONS
(Cost $4,601,573) 4,627,285
------------
United States Treasury Obligations -- 39.5%
U. S. Treasury Bonds
8.88% 02/15/2019 1,000 1,138,320
8.50% 02/15/2020 2,000 2,199,800
8.75% 08/15/2020 2,000 2,257,079
------------
5,595,199
------------
U. S. Treasury Notes
8.50% 05/15/1995 1,750 1,758,312
8.50% 11/15/1995 2,000 2,027,540
8.00% 10/15/1996 2,000 2,039,640
7.50% 11/15/2001 1,000 1,018,720
7.50% 05/15/2002 1,000 1,020,370
6.25% 02/15/2003 4,000 3,770,680
5.75% 08/15/2003 2,000 1,816,480
7.63% 02/15/2007 1,000 1,010,880
7.88% 11/15/2007 1,000 1,030,840
------------
15,493,462
------------
TOTAL U. S. TREASURY OBLIGATIONS
(Cost $21,385,029) 21,088,661
------------
Repurchase Agreements--34.1%
Donaldson, Lufkin & Jenrette
6.05% 03/01/1995 18,200 18,200,000
(Agreement dated 02/28/95 to be
repurchased at $18,203,059,
collateralized by $16,467,000
U.S. Treasury Bonds 8.75%
due 08/15/20. Market value of
collateral is $18,572,224.)
------------
TOTAL REPURCHASE AGREEMENTS
(Cost $18,200,000) 18,200,000
------------
TOTAL INVESTMENTS AT VALUE -- 93.5%
(Cost $50,193,282*) 49,920,766
OTHER ASSETS IN EXCESS
OF LIABILITIES -- 6.5% 3,444,827
------------
NET ASSETS -- 100.0% $53,365,593
============
<FN>
* Also cost for Federal income tax purposes. The gross appreciation (depreciation)
on a tax basis is as follows:
Gross Appreciation $ 803,741
Gross Depreciation (1,076,257)
------------
Net Depreciation $ (272,516)
============
</FN>
</TABLE>
See Accompanying Notes to Financial Statements.
<PAGE>7
The RBB Family
The RBB Fund, Inc.
Government Securities Portfolio
<TABLE>
<CAPTION>
Statement of Operations
For the Six Months Ended
February 28, 1995
(Unaudited)
<S> <C>
Investment Income
Interest $1,924,709
----------
Expenses
Investment advisory fees 105,439
Administration fees 26,360
Distribution fees 105,439
Custodian fees 8,963
Transfer agent fees 12,450
Registration fees 4,500
Organization expense 20,042
Printing expenses 13,930
Other expenses 5,056
----------
302,179
Less fees waived (117,706)
----------
TOTAL EXPENSES 184,473
----------
NET INVESTMENT INCOME 1,740,236
----------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS
Net realized loss on investments (1,653,486)
Decrease in net unrealized depreciation
on investments 1,237,488
----------
NET LOSS ON INVESTMENTS (415,998)
----------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS $1,324,238
==========
</TABLE>
<TABLE>
<CAPTION>
Statement of Changes in Net Assets
For the For the
Six Months Ended Year Ended
February 28, 1995 August 31, 1994
----------------- ---------------
(Unaudited)
<S> <C> <C>
Increase (decrease) in
net assets:
Operations:
Net investment income $ 1,740,236 $ 3,347,279
Net loss on investments (415,998) (5,131,789)
------------ ------------
Net increase (decrease) in
net assets resulting
from operations 1,324,238 (1,784,510)
------------ ------------
Distributions to shareholders:
Dividends to shareholders from
net investment income:
RBB shares ($.3087 and
$.5901, respectively,
per share) (1,740,236) (3,330,364)
Distributions to shareholders in
excess of net investment
income ($.0753 and $.0235,
respectively, per share) (418,341) (133,248)
Distributions to shareholders
from capital:
RBB shares ($.1544
per share for 1994) -- (869,154)
------------ ------------
Total distributions to
shareholders (2,158,577) (4,332,766)
------------ ------------
Net capital share transactions (738,345) 24,759,719
------------ ------------
Total increase (decrease) in
net assets (1,572,684) 18,642,443
Net Assets:
Beginning of period 54,938,277 36,295,834
------------ ------------
End of period $53,365,593 $54,938,277
============ ============
</TABLE>
See Accompanying Notes to Financial Statements.
<PAGE>8
The RBB Family
The RBB Fund, Inc.
Money Market Portfolio
Statement of Net Assets
February 28, 1995
(Unaudited)
<TABLE>
<CAPTION>
Par
(000) Value
---------- ------------
<S> <C> <C>
Agency Obligations--10.3%
Federal National Mortgage Association
Discount Notes -- 3.4%
5.37% 03/22/1995 $ 15,000 $ 14,953,013
5.40% 03/22/1995 15,000 14,952,750
5.53% 04/05/1995 10,000 9,946,236
-------------
39,851,999
-------------
Student Loan Marketing Association
Variable Rate Notes (dagger) -- 6.9%
6.06% 03/07/1995 25,000 25,000,000
6.10% 03/07/1995 20,000 20,000,000
6.11% 03/07/1995 10,000 10,000,000
6.12% 03/07/1995 25,000 24,986,848
-------------
79,986,848
-------------
TOTAL AGENCY OBLIGATIONS
(Cost $119,838,847) 119,838,847
-------------
Certificates of Deposit--15.1%
Domestic Certificates of Deposit--1.7%
NationsBank North Carolina
5.35% 06/07/1995 5,000 4,999,938
Northern Trust Bank
5.25% 06/16/1995 15,000 14,997,054
-------------
19,996,992
-------------
Yankee Certificates of Deposit--13.4%
Fuji Bank
6.03% 03/27/1995 50,000 50,000,000
Industrial Bank of Japan
6.28% 04/28/1995 25,000 25,000,397
Mitsubishi Bank
6.41% 05/23/1995 30,000 30,004,588
Sumitomo Bank
6.27% 04/28/1995 25,000 25,000,000
Svenska Handelsbanken, Inc.
6.25% 04/28/1995 25,000 25,000,000
-------------
155,004,985
-------------
TOTAL CERTIFICATES OF DEPOSIT
(Cost $175,001,977) 175,001,977
-------------
Commercial Paper--24.3%
Asset Backed Securities--4.2%
Beta Finance, Inc.
5.43% 03/08/1995 15,000 14,984,163
5.20% 03/13/1995 15,000 14,974,000
5.30% 03/14/1995 10,000 9,980,861
5.30% 03/20/1995 9,000 8,974,825
-------------
48,913,849
-------------
Banks--5.5%
Abbey National North America Corp.
5.07% 03/06/1995 5,000 4,996,479
5.07% 03/07/1995 15,000 14,987,325
National City Corporation
5.10% 03/06/1995 5,000 4,996,458
6.07% 06/27/1995 20,000 19,602,077
Republic National Bank of New York
5.36% 03/21/1995 10,000 9,970,222
Toronto Dominion Holdings (USA), Inc.
5.73% 05/02/1995 10,000 9,901,317
-------------
64,453,878
-------------
Finance Lessors--1.7%
General Electric Capital Corp.
5.40% 03/27/1995 20,000 19,922,000
-------------
Glass, Glassware, Pressed or Blown--1.3%
Newell Co.
6.15% 04/27/1995 15,000 14,853,938
-------------
Personal Credit Institutions--4.3%
General Motors Acceptance Corp.
6.15% 03/06/1995 25,000 24,978,645
6.10% 03/08/1995 25,000 24,970,347
-------------
49,948,992
-------------
Pharmaceutical Preparations--4.3%
American Home Products Corporation
6.05% 03/27/1995 30,000 29,868,917
Lilly (Eli) & Co.
6.20% 06/01/1995 20,000 19,683,111
-------------
49,552,028
-------------
<PAGE>9
Short-Term Business Credit Institutions--3.0%
Sears Roebuck Acceptance Corp.
6.24% 06/05/1995 25,000 24,584,000
CXC, Inc.
6.10% 05/08/1995 10,000 9,884,778
-------------
34,468,778
-------------
TOTAL COMMERCIAL PAPER
(Cost $282,113,463) 282,113,463
-------------
Time Deposits--6.5%
Dai-Ichi Kangyo Bank
6.03% 03/07/1995 50,000 50,000,000
Sumitomo Bank
6.00% 03/07/1995 25,000 25,000,000
-------------
TOTAL TIME DEPOSITS
(Cost $75,000,000) 75,000,000
-------------
Corporate Obligations--32.2%
Banks--9.0%
Comerica Bank -Detroit (dagger)
6.02% 03/07/1995 25,000 24,985,649
6.02% 03/07/1995 25,000 24,984,531
First National Bank of Chicago (dagger)
6.14% 03/01/1995 55,000 54,993,068
-------------
104,963,248
-------------
Security Brokers and Dealers--22.1%
Bear Stearns Treasury Rate Note (dagger)
6.12% 03/07/1995 15,000 15,000,000
Bear Stearns & Co., Inc. (dagger)
6.15% 03/07/1995 40,000 40,000,000
Goldman Sachs Group L.P. (dagger)
6.38% 05/10/1995 53,000 53,000,000
J. P. Morgan Securities, Inc. (dagger)
6.18% 03/30/1995 50,000 50,000,000
Lehman Brothers Holdings, Inc. (dagger)
6.53% 03/07/1995 50,000 50,000,000
Morgan Stanley Group (dagger)
6.03% 03/07/1995 33,500 33,499,238
6.23% 07/19/1995 15,000 15,000,000
-------------
256,499,238
-------------
Services-Auto Rent and Lease--1.1%
PHH Corp. (dagger)
6.15% 03/07/1995 12,235 12,235,000
-------------
TOTAL CORPORATE OBLIGATIONS
(Cost $373,697,486) 373,697,486
-------------
Repurchase Agreements--11.3%
J. P. Morgan Securities
6.20% 03/01/1995 25,000 25,000,000
(Agreement dated 02/28/95 to be
repurchased at $25,004,306,
collateralized by $25,469,000
U.S. Treasury Note 6.88% due
02/28/97. Market value of
collateral is $25,500,836.)
Morgan Stanley & Co.
6.15% 03/01/1995 50,000 50,000,000
(Agreement dated 02/28/95 to be
repurchased at $50,008,542,
collateralized by $59,353,089
Federal National Mortgage Assoc.
6.70% to 10.00% due 05/01/06
to 08/01/24. Market value of
collateral is $51,050,908.)
Lehman Government Securities Inc.
6.13% 03/01/1995 55,925 55,925,000
(Agreement dated 02/28/95 to be
repurchased at $55,934,523,
collateralized by $64,229,361
Government National Mortgage
Assoc. 6.00% to 7.00% due
06/15/94 to 12/15/09. Market
value of collateral is $57,596,305.)
-------------
TOTAL REPURCHASE AGREEMENTS
(Cost $130,925,000) 130,925,000
-------------
<PAGE>10
TOTAL INVESTMENTS AT VALUE--99.7%
(Cost $1,156,576,773*) 1,156,576,773
OTHER ASSETS IN EXCESS
OF LIABILITIES--0.3% 3,102,393
-------------
NET ASSETS (Applicable to
754,410,803 Bedford shares,
228,154 Cash Preservation shares,
50,561 RBB shares, 404,990,910
Sansom Street shares and 800
other shares) -- 100.0% $1,159,679,166
==============
NET ASSET Value, offering and
redemption price per share
($1,159,679,166 / 1,159,681,228) $1.00
=====
<FN>
* Also cost for Federal income tax purposes.
(dagger) Variable Rate Obligations -- The interest rate shown is the rate as of February 28, 1995
and the maturity date 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.
<PAGE>11
The RBB Family
The RBB Fund, Inc.
Money Market Portfolio
<TABLE>
<CAPTION>
Statement of Operations
For the Six Months Ended
February 28, 1995
(Unaudited)
<S> <C>
Investment Income
Interest $30,729,257
-----------
Expenses
Investment advisory fees 2,137,724
Distribution fees 2,210,824
Service organization fees 188,498
Directors' fees 5,207
Custodian fees 95,941
Transfer agent fees 646,760
Legal fees 26,203
Audit fees 31,567
Registration fees 48,000
Insurance expense 15,341
Printing fees 148,454
Miscellaneous 98
-----------
5,554,617
Less fees waived (1,291,275)
Less expense reimbursement by advisor (5,505)
-----------
TOTAL EXPENSES 4,257,837
-----------
NET INVESTMENT INCOME 26,471,420
-----------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS $26,471,420
===========
</TABLE>
<TABLE>
<CAPTION>
Statement of Changes in Net Assets
For the For the
Six Months Ended Year Ended
February 28, 1995 August 31, 1994
----------------- ---------------
(Unaudited)
<S> <C> <C>
Increase in net assets:
Operations:
Net investment income $ 26,471,420 $ 32,169,184
Net loss on investments -- (2,062)
-------------- --------------
Net increase in net assets
resulting from operations 26,471,420 32,167,122
-------------- --------------
Distributions to shareholders:
Dividends to shareholders from
net investment income:
Bedford shares ($.0226 and
$.0278, respectively,
per share) (16,791,232) (21,525,364)
Cash Preservation shares
($.0226 and $.0278,
respectively, per share) (5,162) (26,296)
RBB shares ($.0224 and
$.0273, respectively,
per share) (1,097) (1,576)
Sansom Street shares
($.0254 and $.0334,
respectively, per share) (9,673,929) (10,615,948)
Distributions to shareholders
from net realized
short-term gains:
Bedford shares -- (48,280)
Cash Preservation shares -- (40)
RBB shares -- (5)
Sansom Street shares -- (15,323)
-------------- --------------
Total distributions to
shareholders (26,471,420) (32,232,832)
-------------- --------------
Net capital share
transactions 74,919,213 110,590,287
-------------- --------------
Total increase in net assets 74,919,213 110,524,577
Net Assets:
Beginning of period 1,084,759,953 974,235,376
-------------- --------------
End of period $1,159,679,166 $1,084,759,953
============== ==============
</TABLE>
See Accompanying Notes to Financial Statements.
<PAGE>12
The RBB Family
The RBB Fund, Inc.
Municipal Money Market Portfolio
Statement of Net Assets
February 28, 1995
(Unaudited)
<TABLE>
<CAPTION>
Par
(000) Value
---------- ----------------
<S> <C> <C>
Alabama--3.0%
Demopolis DN / (Banque Nationale
de Paris LOC) (dagger) (A-1+)
4.25% 03/07/1995 $ 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+)
4.10% 03/02/1995 5,000 5,000,000
Livingston IDR (Toin Corp USA Project )
DN / (Industrial Bank of Japan LOC) (dagger)
(A-1+)
4.45% 03/07/1995 1,000 1,000,000
--------------
9,000,000
--------------
Alaska--0.4%
Alaska Housing Finance Corp
Governmental Purpose Bonds
1994 Series A DN / (Westdeutsche
Landesbank Gironzentrale LOC) (dagger)
(A-1+)
4.10% 03/07/1995 1,300 1,300,000
--------------
Arizona--8.2%
Apache County DN / (Chemical
Bank LOC) (dagger) (A-1+)
4.25% 03/01/1995 1,000 1,000,000
Apache County IDA DN /
(Barclays Bank LOC) (dagger) (A-1+)
4.20% 03/01/1995 4,400 4,400,000
Apache County RB Series 85 A
Tucson Electric Power Co
Project Springville Project DN /
(Barclays Bank LOC) (dagger) (A-1+)
4.10% 03/01/1995 2,200 2,200,000
Flagstaff IDA DN / (FGIC Insurance) (dagger)
(A-1+)
4.15% 03/07/1995 5,855 5,855,000
Maricopa County Pollution Control
Corporation Arizona Public Service
Co. DN / (Morgan Guaranty LOC) (dagger)
(A-1+)
3.85% 03/01/1995 1,000 1,000,000
Phoenix City DN / (Canadian
Imperial Bank LOC) (dagger) (A-1+)
3.90% 03/07/1995 1,550 1,550,000
Arizona--(continued)
Pima County IDA IDR Bonds DN /
(Society General LOC) (dagger) (A-1+)
4.10% 03/01/1995 9,100 9,100,000
--------------
25,105,000
--------------
Arkansas--3.0%
Arkansas Development Finance
Authority Revenue Bonds DN /
(FGIC Insurance) (dagger) (A-1+)
4.00% 03/02/1995 2,900 2,900,000
Hope Arkansas MB (double dagger) (A-1+)
4.25% 04/12/1995 2,400 2,400,000
4.20% 04/06/1995 3,000 3,000,000
Warren Park Solid Waste DN /
(Credit Suisse LOC) (dagger) (A-1+)
4.10% 03/07/1995 1,000 1,000,000
--------------
9,300,000
--------------
California--10.4%
California Higher Education Loan
Authority Student Loan Revenue
Refunding Series 1987A /
(National Westminster LOC) (double dagger)
(VMIG1)
3.60% 03/07/1995 3,000 3,000,000
California Pollution Control Financing
Authority RB MB / (Sumitomo
Bank LOC) (double dagger) (A-1+)
3.85% 03/16/1995 2,600 2,600,000
Los Angeles Transportation MB (double dagger)
(SP-1+)
4.50% 06/30/1995 4,000 4,008,297
Los Angeles County Unified School
District TRAN (SP-1+)
4.50% 07/10/1995 4,000 4,012,463
4.50% 07/10/1995 5,000 5,016,446
Santa Clara TRAN (SP-1+)
4.25% 07/07/1995 5,000 5,013,044
State of California 1994-95 RAN
Series B (A-1)
4.41% 03/30/1995 8,000 8,000,000
--------------
31,650,250
--------------
<PAGE>13
Colorado--3.7%
Colorado Student Obligation Bond
Authority DN / (Sumitomo
Bank LOC) (dagger) (VMIG1)
4.05% 03/01/1995 7,790 7,790,000
Moffat County DN (dagger) (A-1+)
4.15% 03/07/1995 3,400 3,400,000
--------------
11,190,000
--------------
Connecticut--0.2%
Connecticut Housing Finance Authority
Series E MB (double dagger) (A-1+)
4.40% 11/15/1995 800 800,000
--------------
Delaware--4.5%
Economic Development Authority DN
(Hospital Billing and Collection)
Series B / (Industrial Bank of Japan
LOC) (dagger) (A-1+)
4.25% 03/07/1995 13,700 13,700,000
--------------
District of Columbia--1.6%
District of Columbia Hospital for
Women Series 88A DN /
(Mitsubishi Bank LOC) (dagger) (VMIG1)
4.10% 03/07/1995 2,900 2,900,000
District of Columbia Catholic
University of America DN /
(Sanwa Bank LOC) (dagger) (VMIG1)
4.10% 03/07/1995 1,900 1,900,000
--------------
4,800,000
--------------
Florida--3.3%
Dade County Solid Waste Industrial
Development RB Series A DN /
(Banque Nationale de Paris LOC) (dagger)
(VMIG1)
4.20% 03/07/1995 7,000 7,000,000
Florida Housing Finance Agency DN /
(Wells Fargo Bank LOC) (double dagger) (A-1)
3.85% 03/30/1995 3,000 3,000,000
--------------
10,000,000
--------------
Georgia--1.0%
Fulco Hospital Authority Revenue
Anticipation Certificates MB /
(Fuji Bank LOC)(double dagger) (A-1)
4.25% 04/06/1995 1,555 1,555,000
Georgia Municipal Association
Pooled Bonds DN / (Credit Suisse
LOC) (dagger) (A-1+)
4.00% 03/07/1995 1,400 1,400,000
--------------
2,955,000
--------------
Illinois--9.6%
City of Chicago GO DN / (Sanwa
Bank LOC) (dagger) (A-1+)
4.00% 03/07/1995 15,640 15,640,000
City of Chicago DN (O'Hare
International Airport) Series 88A /
(Sanwa Bank LOC) (dagger) (A-1+)
4.25% 03/07/1995 600 600,000
Chicago O'Hare International Airport
Special Facility RB DN / (Society
General LOC ) (dagger) (A-1+)
4.20% 03/07/1995 5,800 5,800,000
Health Facility Authority DN (Central
Health Care and Northwest
Community Hospital) /
(Sumitomo Bank LOC) (dagger) (A-1+)
4.00% 03/07/1995 1,545 1,545,000
Illinois Health Facilities Authority
Revenues DN (The Streeterville
Corp.) / (FNB Chicago LOC) (dagger) (A-1+)
4.15% 03/07/1995 2,100 2,100,000
Illinois Health Facility Highland Park
Hospital Series 1991A MB /
(FGIC Insurance) (double dagger) (VMIG1)
3.75% 06/01/1995 3,500 3,500,000
--------------
29,185,000
--------------
Indiana--4.3%
Indiana Development Finance Authority
Solid Waste Disposal RB MB /
(Fuji Bank LOC) (double dagger) (A-1+)
4.30% 04/07/1995 1,000 1,000,000
4.20% 04/07/1995 3,550 3,550,000
<PAGE>14
Indiana--(continued)
Indiana State Housing Finance
Authority Series C MB (double dagger) (VMIG1)
4.40% 07/03/1995 3,625 3,625,000
Petersburg Solid Waste Disposal
Revenue Bonds (Indiana Power
and Light Co. Project) Series A
DN (dagger) (A-1+)
4.10% 03/07/1995 5,000 5,000,000
--------------
13,175,000
--------------
Kansas--0.7%
Lawrence Industrial Development RB
Series A (Ram Co. Project) DN /
(Wachovia LOC) (dagger) (A-1+)
4.00% 03/01/1995 2,125 2,125,000
--------------
Kentucky--1.9%
Maysville Solid Waste Disposal
Facilities RB MB (double dagger) (A-1)
4.40% 04/07/1995 2,865 2,865,000
Ohio County PCR DN (Big Rivers) /
(Bank of New York LOC) (dagger) (A-1+)
3.85% 03/07/1995 3,000 3,000,000
--------------
5,865,000
--------------
Louisiana--1.8%
New Orleans Exhibition Hall Authority
Special Tax Bonds Series 1989 B
DN / (Sanwa Bank LOC) (dagger) (VMIG1)
4.05% 03/07/1995 400 400,000
Plaquemines Port Harbor and
Terminal (District of Marine
Terminal Facilities) Revenue
Refunding Bonds Series A MB/
(Morgan Guaranty LOC) (double dagger) (P-1)
3.40% 03/15/1995 4,000 4,000,000
Plaquemines Port Harbor and
Terminal (District of Marine
Terminal Facilities) Revenue
Refunding Bonds MB/ (Morgan
Guaranty LOC) (double dagger) (P-1)
4.10% 03/16/1995 1,000 1,000,000
--------------
5,400,000
--------------
Maine--2.5%
Jay Maine for International
Paper MB (double dagger)
3.95% 06/01/1995 7,500 7,500,000
--------------
Maryland--1.1%
City Council of Baltimore IDA (Capital
Acquisition Program) Series 86 DN /
(Dai-Ichi Kangyo LOC) (dagger) (A-1+)
4.10% 03/07/1995 3,500 3,500,000
--------------
Massachusetts--0.4%
Massachusetts Industrial Finance
Agency PCR Refunding Bonds
(New England Power Company
Project) Series 1992 MB (double dagger) (P-1)
4.10% 03/07/1995 1,200 1,200,000
--------------
Michigan--0.7%
Detroit Downtown Development
Authority DN (Millender Project) /
(Sumitomo Bank LOC)(dagger) (A-1+)
4.10% 03/07/1995 1,000 1,000,000
Northville IDA DN (Thrifty Northville
Project) / (Westpac Banking Corp.
LOC) (dagger) (P-1)
4.38% 03/07/1995 1,000 1,000,000
--------------
2,000,000
--------------
Missouri--1.9%
Missouri Higher Education Student
Loan Authority DN /
(Dai-Ichi Kangyo LOC) (dagger) (A-1)
4.25% 03/07/1995 3,700 3,700,000
Missouri Higher Education DN /
(National Westminster LOC) (dagger) (A-1+)
4.25% 03/07/1995 2,200 2,200,000
--------------
5,900,000
--------------
Nebraska--1.9%
Lancaster Nebraska Sun-Husker
Foods Inc. Project DN /
(Bank of Tokyo LOC) (dagger) (A-1+)
4.30% 03/07/1995 3,800 3,800,000
<PAGE>15
Nebraska--(continued)
Nebraska Investment Finance
Authority Multifamily DN
(Applecreek Associates) /
(Citibank LOC) (dagger) (A-1)
4.05% 03/30/1995 1,900 1,900,000
--------------
5,700,000
--------------
Nevada--0.4%
Clark County Nevada IDR Nevada
Cogeneration Association DN /
(Swiss Bank LOC) (dagger) (A-1)
3.85% 03/07/1995 1,200 1,200,000
--------------
New Hampshire--2.0%
New Hampshire Housing Finance
Authority Series 1994 1 DN (dagger) (VMIG1)
4.15% 03/07/1995 6,000 6,000,000
--------------
Pennsylvania--1.3%
Commonwealth of Pennsylvania TAN (SP-1+)
4.75% 06/30/1995 2,000 2,005,156
4.75% 06/30/1995 2,000 2,004,830
--------------
4,009,986
--------------
Puerto Rico--2.1%
Puerto Rico Government Development
Bank 85 DN / (Credit Suisse LOC) (dagger) (A-1+)
3.90% 03/07/1995 6,300 6,300,000
--------------
Rhode Island--3.1%
Rhode Island Student Loan
Series 1 DN / National Westminster
LOC) (dagger) (A-1+)
4.15% 03/01/1995 9,500 9,500,000
--------------
Texas--14.7%
Harris County Texas Toll Road
Unlimited Tax Revenue Bonds
Series 4F DN (dagger) (A-1+)
4.05% 03/07/1995 1,000 1,000,000
North Texas Higher Education
Authority, Inc. Student Loan
Revenue Senior Series 87 DN /
(Fuji Bank LOC) (dagger) (VMIG1)
4.25% 03/07/1995 13,900 13,900,000
Texas--(continued)
North Texas Higher Education Student
Loan Revenue Series A DN (dagger) (A-1+)
4.10% 03/07/1995 5,000 5,000,000
Red River Authority of Texas
(Southwestern Public Service
Company Project) DN / (Union
Bank of Swizerland LOC) (dagger) (A-1+)
4.00% 03/07/1995 2,000 2,000,000
Panhandle Plains Higher Education
Authority Student Loan Revenue
Bonds Series A MB / (Student Loan
Marketing Assoc. LOC) (double dagger) (VMIG1)
3.35% 03/31/1995 1,500 1,500,000
Harris County Health Facilities Corp.
Hospital Revenue Bonds
San Jacinto Series A MB (double dagger)
(VMIG1)
3.90% 03/01/1995 5,000 5,000,000
Brazos River Harbor Navigation
District of Brazoria County
Revenue Bonds MB (double dagger) (P-1)
4.30% 04/11/1995 1,600 1,600,000
Houston Texas GO Commercial Paper
Notes Series A MB / (Toronto
Dominion LOC) (double dagger) (A-1+)
4.10% 03/27/1995 1,400 1,400,000
Angelina and Neches River Authority
Solid Waste Disposal Revenue
Bonds MB (double dagger) (A-1)
4.30% 04/13/1995 1,900 1,900,000
4.20% 04/06/1995 4,600 4,600,000
San Antonio Texas Water System
Commercial Paper Notes
Series 92 MB (double dagger) (A-1)
4.00% 04/13/1995 7,000 7,000,000
--------------
44,900,000
--------------
Utah--3.9%
Intermountain Power Agency
DN (dagger) (A-1)
3.55% 06/15/1995 5,000 5,000,000
Salt Lake Airport Revenue DN (dagger) (A-1)
4.10% 03/07/1995 1,600 1,600,000
<PAGE>16
Utah--(continued)
Utah State Board of Regents Student
Loan Revenue Series C DN /
(Dresdner Bank LOC) (dagger) (A-1+)
4.10% 03/07/1995 3,400 3,400,000
Utah Housing Finance Agency Single
Family Mortgage Variable Rate
Bonds DN / (Guaranteed Investor
Contract LOC) (dagger) (VMIG1)
4.10% 03/07/1995 1,800 1,800,000
--------------
11,800,000
--------------
Virginia--1.0%
Virginia Housing Development
Authority Commonwealth
Mortgage Series I MB (double dagger) (A-1+)
4.20% 05/11/1995 3,000 3,000,000
--------------
Washington--2.6%
Port of Seattle IDA DN (Alaska Airlines
Project) / (Bank of America LOC) (dagger)
4.43% 03/07/1995 4,900 4,900,000
Washington Public Power Supply
System Project No. 3 Refunding
Electric RB DN / (Industrial Bank of
Japan LOC) (dagger) (A-1+)
4.30% 03/07/1995 3,000 3,000,000
--------------
7,900,000
--------------
West Virginia--2.3%
Marion County Solid Waste Disposal
Facility Revenue DN / (National
Westminster LOC) (dagger) (A-1+)
4.30% 03/07/1995 5,800 5,800,000
Marion County DN / (National
Westminster LOC) (dagger) (A-1+)
4.30% 03/07/1995 1,200 1,200,000
--------------
7,000,000
--------------
TOTAL INVESTMENTS AT VALUE--99.5%
(Cost $302,960,236*) 302,960,236
OTHER ASSETS IN EXCESS
OF LIABILITIES--0.5% 1,564,458
--------------
NET ASSETS (Applicable to
193,816,408 Bedford shares,
110,574,496 Bradford shares,
201,837 Cash Preservation shares,
5,013 RBB shares and 800
other shares) -- 100.0% $304,524,694
==============
NET ASSET VALUE, offering and
redemption price per share
($304,524,694 / 304,598,554) $1.00
=====
<FN>
* Also cost for Federal income tax purposes.
(dagger) Variable Rate Demand Notes -- The interest rate shown is the rate as of
February 28, 1995 and the maturity date 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 Investors Service, Inc. and Standard & Poor's Ratings Group, Division of McGraw-Hill, Inc.
ratings indicated are the most recent ratings available at February 28, 1995.
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.
<PAGE>17
The RBB Family
The RBB Fund, Inc.
Municipal Money Market Portfolio
<TABLE>
<CAPTION>
Statement of Operations
For the Six Months Ended
February 28, 1995
(Unaudited)
<S> <C>
Investment Income
Interest $5,250,112
----------
Expenses
Investment advisory fees 500,701
Administration fees 146,237
Distribution fees 834,332
Directors' fees 1,360
Custodian fees 34,984
Transfer agent fees 73,031
Legal fees 7,214
Audit fees 8,327
Registration fees 41,999
Amortization expense 2,726
Insurance expense 4,109
Printing expense 36,670
Miscellaneous 25
----------
1,691,715
Less fees waived (511,991)
Less expense reimbursement by advisor (5,355)
----------
TOTAL EXPENSES 1,174,369
----------
NET INVESTMENT INCOME 4,075,743
----------
REALIZED GAIN ON INVESTMENTS
Amortized market discount 201
----------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS $4,075,944
==========
</TABLE>
<TABLE>
<CAPTION>
Statement of Changes in Net Assets
For the For the
Six Months Ended Year Ended
February 28, 1995 August 31, 1994
------------------ ---------------
(Unaudited)
<S> <C> <C>
Increase (decrease) in
net assets:
Operations:
Net investment income $ 4,075,743 $ 6,301,720
Net gain (loss)
on investments 201 (10,833)
------------ ------------
Net increase in net assets
resulting from
operations 4,075,944 6,290,887
------------ ------------
Dividends to shareholders from
net investment income:
Bedford shares ($.0138 and
$.0195, respectively,
per share) (2,593,176) (4,374,300)
Bradford shares ($.0138 and
$.0195, respectively,
per share) (1,479,555) (1,924,607)
Cash Preservation shares
($.0130 and $.0174,
respectively, per share) (2,949) (2,703)
RBB shares ($.0129 and
$.0172, respectively,
per share) (63) (90)
Sansom Street shares
($.0185 per share
for 1994) -- (20)
------------ ------------
Total dividends to
shareholders (4,075,743) (6,301,720)
------------ ------------
Net capital share
transactions 21,820,742 (10,002,056)
------------ ------------
Total increase (decrease)
in net assets 21,820,943 (10,012,889)
Net Assets:
Beginning of period 282,703,751 292,716,640
------------ ------------
End of period $304,524,694 $282,703,751
============ ============
</TABLE>
See Accompanying Notes to Financial Statements.
<PAGE>18
The RBB Family
The RBB Fund, Inc.
Financial Highlights
(For a Share Outstanding Throughout each Period)
<TABLE>
<CAPTION>
Tax-Free Portfolio
--------------------------------------------------------------------------------------------
For the For the For the For the For the
Six Months Ended Year Ended Year Ended Year Ended Year Ended
February 28, 1995 August 31, 1994 August 31, 1993 August 31, 1992 August 31, 1991
----------------- --------------- --------------- --------------- ---------------
(Unaudited)
<S> <C> <C> <C> <C> <C>
Net Asset Value,
Beginning of Period $ 10.40 $ 11.53 $ 11.04 $ 10.46 $ 10.05
---------- ---------- ---------- ---------- ----------
Income From Investment
Operations
Net Investment Income .2814 .6026 .6385 .6771 .6027
Net Gains (Losses) on
Securities (both realized
and unrealized) .0208 (.6259) .8654 .6145 .4402
---------- ---------- ---------- ---------- ----------
Total From Investment
Operations .3022 (.0233) 1.5039 1.2916 1.0429
---------- ---------- ---------- ---------- ----------
Less Distributions
Dividends (from net
investment income) (.2814) (.6092) (.6725) (.6345) (.6212)
Distributions (from excess
net investment income) (.0246) (.0135) -- -- --
Distributions (from
capital gains) (.2662) (.4886) (.3414) (.0771) (.0117)
---------- ---------- ---------- ---------- ----------
Total Distributions (.5722) (1.1113) (1.0139) (.7116) (.6329)
---------- ---------- ---------- ---------- ----------
Net Asset Value, End
of Period $ 10.13 $ 10.40 $ 11.53 $ 11.04 $ 10.46
=========== ========== ========== ========== ==========
Total Return 3.24%(b)(d) (0.30%)(b) 14.45%(b) 12.77%(b) 10.66%(b)
Ratios/Supplemental Data
Net Assets, End of Period $4,652,125 $5,464,959 $6,631,085 $6,490,832 $8,839,913
Ratios of Expenses to
Average Net Assets .47%(a)(c) .15%(a) .17%(a) .33%(a) .83%(a)
Ratios of Net Investment
Income to Average
Net Assets 5.87%(c) 5.51% 5.71% 6.21% 6.02%
Portfolio Turnover Rate 6%(d) 20% 70% 78% 63%
<FN>
(a) Without the waiver of advisory and custody fees and without the reimbursement of certain operating expenses, the
ratios of expenses to average net assets for the Tax-Free Portfolio would have been 1.96% annualized for the six
months ended February 28, 1995, 1.84%, 1.76%, 1.61% and 3.06% for the years ended August 31, 1994, 1993, 1992, and,
1991, respectively.
(b) Sales load not reflected in total return.
(c) Annualized.
(d) Not annualized.
</FN>
</TABLE>
See Accompanying Notes to Financial Statements.
<PAGE>19
<TABLE>
<CAPTION>
Government Securities Portfolio
---------------------------------------------------------------------------------------------
For the Period
August 1, 1991
For the For the For the For the (Commencement
Six Months Ended Year Ended Year Ended Year Ended of Operations) to
February 28, 1995 August 31, 1994 August 31, 1993 August 31, 1992 August 31, 1991
----------------- --------------- --------------- --------------- -----------------
(Unaudited)
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning
of Period $ 9.69 $ 10.73 $ 10.46 $ 10.12 $ 10.00
----------- ----------- ----------- ----------- -----------
Income From Investment
Operations
Net Investment Income .3087 .5931 .7080 .8002 .0737
Net Gains (Losses) on
Securities (both realized
and unrealized) (.0647) (.8651) .3300 .3408 .1213
----------- ----------- ----------- ----------- -----------
Total From Investment
Operations .2440 (.2720) 1.0380 1.1410 .1950
----------- ----------- ----------- ----------- -----------
Less Distributions
Dividends (from net
investment income) (.3087) (.5901) (.7080) (.8010) (.0750)
Distributions (from excess
net investment income) (.0753) (.0235) -- -- --
Return of capital -- (.1544) (.0600) -- --
----------- ----------- ----------- ----------- -----------
Total Distributions (.3840) (.7680) (.7680) (.8010) (.0750)
----------- ----------- ----------- ----------- -----------
Net Asset Value, End of Period $ 9.55 $ 9.69 $ 10.73 $ 10.46 $ 10.12
=========== =========== =========== =========== ===========
Total Return 2.64%(c)(d) (2.60%)(d) 10.36%(d) 11.73%(d) 1.95%(c)(d)
Ratios/Supplemental Data
Net Assets, End of Period $53,365,593 $54,938,277 $36,295,834 $25,603,528 $28,225,227
Ratios of Expenses to
Average Net Assets .74%(a)(b) .64%(a) .66%(a) .83%(a) 1.10%(a)(b)
Ratios of Net Investment
Income to Average
Net Assets 6.96% 5.86% 6.70% 7.81% 8.50%(b)
Portfolio Turnover Rate 19%(c) 65% 47% 21% 3%(c)
<FN>
(a) Without the waiver of advisory, custody and administration fees and without the reimbursement of certain operating
expenses, the ratios of expenses to average net assets for the Government Securities Portfolio would have been 1.21%
annualized for the six months ended February 28, 1995, 1.10%, 1.22% and 1.22% for the years ended August 31, 1994, 1993
and 1992, respectively, and 1.28% annualized for the period ended August 31, 1991.
(b) Annualized
(c) Not Annualized
(d) Sales load not reflected in total return.
</FN>
</TABLE>
See Accompanying Notes to Financial Statements.
<PAGE>20
<TABLE>
<CAPTION>
Money Market Portfolio
---------------------------------------------------------------------------------------------
For the For the For the For the For the
Six Months Ended Year Ended Year Ended Year Ended Year Ended
February 28, 1995 August 31, 1994 August 31, 1993 August 31, 1992 August 31, 1991
------------------ --------------- --------------- --------------- ---------------
(Unaudited)
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning
of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
----------- ----------- ----------- ----------- -----------
Income From Investment
Operations
Net investment income .0224 .0273 .0238 .0370 .0621
Net Gains on Securities
(both realized
and unrealized) -- -- -- .0007 --
----------- ----------- ----------- ----------- -----------
Total From Investment
Operations .0224 .0273 .0238 .0377 .0621
----------- ----------- ----------- ----------- -----------
Less Distributions
Dividends (from net
investment income) (.0224) (.0273) (.0238) (.0370) (.0621)
Distributions (from capital
gains) -- -- -- (.0007) --
----------- ----------- ----------- ----------- -----------
Total Distributions (.0224) (.0273) (.0238) (.0377) (.0621)
----------- ----------- ----------- ----------- -----------
Net Asset Value, End of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
=========== =========== =========== =========== ===========
Total Return 4.60%(c) 2.76% 2.41% 3.84% 6.40%
Ratios/Supplemental Data
Net Assets, End of Period $ 50,561 $ 45,314 $ 57,866 $ 74,176 $ 108,525
Ratios of Expenses to
Average Net Assets 1.00%(a)(c) 1.00%(a) 1.00%(a) 1.00%(a) 1.00%(a)
Ratios of Net Investment
Income to Average
Net Assets 4.51%(c) 2.73% 2.38% 3.70% 6.21%
</TABLE>
<TABLE>
<CAPTION>
Municipal Money Market Portfolio
----------------------------------------------------------------------------------------------
For the For the For the For the For the
Six Months Ended Year Ended Year Ended Year Ended Year Ended
February 28, 1995 August 31, 1994 August 31, 1993 August 31, 1992 August 31, 1991
----------------- --------------- --------------- --------------- ---------------
(Unaudited)
<S> <C> <C> <C> <C> <C>
Net Asset Value, Beginning
of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
----------- ----------- ----------- ----------- -----------
Income From Investment
Operations
Net investment income .0129 .0172 .0172 .0264 .0406
Net Gains on Securities
(both realized
and unrealized) -- -- -- -- --
----------- ----------- ----------- ----------- -----------
Total From Investment
Operations .0129 .0172 .0172 .0264 .0406
----------- ----------- ----------- ----------- -----------
Less Distributions
Dividends (from net
investment income) (.0129) (.0172) (.0172) (.0264) (.0406)
Distributions (from capital
gains) -- -- -- -- --
----------- ----------- ----------- ----------- -----------
Total Distributions (.0129) (.0172) (.0172) (.0264) (.0406)
----------- ----------- ----------- ----------- -----------
Net Asset Value, End of Period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
=========== =========== =========== =========== ===========
Total Return 2.62%(c) 1.73% 1.73% 2.67% 4.14%
Ratios/Supplemental Data
Net Assets, End of Period $ 5,013 $ 4,861 $ 5,273 $ 4,166 $ 2,192
Ratios of Expenses to
Average Net Assets 1.00%(a)(c) 1.00%(a) 1.00%(a) 1.00%(a) .99%(a)
Ratios of Net Investment
Income to Average
Net Assets 2.59%(c) 1.72% 1.72% 2.64% 4.06%
<FN>
(a) Without the waiver of advisory, administration and transfer agency 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
18.55% annualized for the six months ended February 28, 1995, 14.62%, 10.62%, 4.81% and 6.48% for the years ended
August 31, 1994, 1993, 1992 and 1991, respectively. For the Municipal Money Market Portfolio, the ratios of expenses
to average net assets would have been 173.83% annualized for the six months ended February 28, 1995, 154.22%, 191.54%,
250.95% and 131.15% for the years ended August 31, 1994, 1993, 1992 and 1991, respectively.
(b) Financial Highlights relate solely to the RBB Class of shares within each portfolio.
(c) Annualized.
</FN>
</TABLE>
See Accompanying Notes to Financial Statements.
<PAGE>21
The RBB 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 seventeen investment Portfolios, five 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, sixteen of which are currently in operation. The classes have
been grouped into sixteen 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, the Laffer/Canto
Family, the Warburg Pincus Family, and the Bradford Family. The RBB Family
represents interests in four portfolios, which are covered in this report.
A) SECURITY VALUATION -- Tax-Free Portfolio and Government
Securities Portfolio: 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. Corporate bonds, tax-exempt bonds and notes, and
government securities are valued on the basis of quotations provided by
an independent pricing service which uses information with respect to
transactions on bonds, quotations from bond dealers, market
transactions in comparable securities and various relationships between
securities in determining value. Short-term obligations with maturities
of 60 days or less are valued at amortized cost which approximates
market value.
Money Market Portfolio and Municipal Money Market Portfolio:
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. These portfolios seek to maintain net asset value per
share at $1.00.
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 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.
C) DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS -- Tax-Free
Portfolio and Government Securities Portfolio: Dividends from net
investment income from each portfolio are declared and paid at least
monthly. Money Market Portfolio and Municipal Money Market Portfolio:
Dividends from net investment income are declared daily and paid
monthly. For all portfolios, any net realized capital gains will be
distributed at least annually. Income distributions and capital gain
distributions are determined in accordance with income tax regulations
which may differ from generally accepted accounting principals. These
differences are primarily due to differing treatments of
mortgage-backed securities.
D) FEDERAL INCOME TAXES -- No provision is made for Federal taxes
as it is the Fund's intention to have each portfolio to 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.
<PAGE>22
Note 1. Summary of Significant Accounting Policies (continued)
E) ORGANIZATION COSTS -- Costs incurred by the Fund in connection
with its organization and initial registration and public offering of
shares have been deferred by the Fund. Organization costs are being
amortized on a straight-line basis for a five-year period which began
upon the commencement of operations of the Fund.
F) 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.
Note 2. Transactions with Affiliates and Related Parties
Pursuant to Investment Advisory Agreements, PNC Institutional
Management Corp. ("PIMC"), a wholly owned subsidiary of PNC Bank, National
Association ("PNC Bank"), serves as investment advisor for each of the four
portfolios described herein.
For its advisory services, PIMC is entitled to receive the following
fees, computed daily and payable monthly based on a portfolio's average
daily net assets:
<TABLE>
<CAPTION>
Portfolio Annual Rate
-------------------------------- --------------------------------------------------
<S> <C>
Tax-Free Portfolio .50% of first $250 million of net assets;
.45% of next $250 million of net assets;
and .40% of net assets in excess of $500 million.
Government Securities Portfolio .40% of first $250 million of net assets;
.35% of next $250 million of net assets;
and .30% of net assets in excess of $500 million.
Money Market Portfolio .45% of first $250 million of net assets;
.40% of next $250 million of net assets;
and .35% of net assets in excess of $500 million.
Municipal Money Market Portfolio .35% of first $250 million of net assets;
.30% of next $250 million of net assets;
and .25% of net assets in excess of $500 million.
</TABLE>
<PAGE>23
Note 2. Transactions with Affiliates and Related Parties (continued)
PIMC may, at its discretion, voluntarily waive all or any portion of
its advisory fee for any of the 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 six months ended February 28, 1995,
advisory fees and waivers for each of the four investment portfolios were as
follows:
<TABLE>
<CAPTION>
Gross Net
Advisory Advisory
Fee Waiver Fee
------------- -------------- -----------
<S> <C> <C> <C>
Tax-Free Portfolio $ 11,912 $ (11,912) $ --
Government Securities Portfolio 105,439 (105,439) --
Money Market Portfolio 2,137,724 (1,283,528) 854,196
Municipal Money Market Portfolio 500,701 (497,518) 3,183
</TABLE>
PNC Bank serves as the sub-advisor for the Tax-Free, Money Market and
Municipal Money Market Portfolios. The Government Securities Portfolio has
no sub-advisor. PNC Bank, as sub-advisor, receives a fee directly from PIMC,
not the portfolios.
PNC Bank serves as custodian for each of the Fund's portfolios. PNC
Bank may, at its discretion, voluntarily waive all or any of its fees for
any of the portfolios. For the six months ended February 28, 1995, custody
fees and waivers for each of the four investment portfolios were as follows:
<TABLE>
<CAPTION>
Gross Net
Custody Custody
Fee Waiver Fee
---------- ----------- ---------
<S> <C> <C> <C>
Tax-Free Portfolio $ 6,075 $(6,060) $ 15
Government Securities Portfolio 8,963 (6,533) 2,430
Money Market Portfolio 95,941 -- 95,941
Municipal Money Market Portfolio 34,984 -- 34,984
</TABLE>
PFPC Inc. ("PFPC"), an indirect wholly owned subsidiary of PNC Bank
Corp., serves as each class's transfer and dividend disbursing agent. PFPC
may, at its discretion, voluntarily waive all or any portion of its transfer
agency fee for any class of shares. For the six months ended February 28,
1995, transfer agency fees and waivers for each class of shares within the
four investment portfolios were as follows:
<TABLE>
<CAPTION>
Gross Net
Transfer Agency Transfer Agency
Fee Waiver Fee
----------- ----------- -----------
<S> <C> <C> <C>
Tax-Free Portfolio
RBB Class $ 6,885 $ -- $ 6,885
======= ======= =======
Government Securities Portfolio
RBB Class $12,450 $ -- $12,450
======= ======= =======
</TABLE>
<PAGE>24
Note 2. Transactions with Affiliates and Related Parties (continued)
<TABLE>
<CAPTION>
Gross Net
Transfer Agency Transfer Agency
Fee Waiver Fee
------------- ------------- --------------
<S> <C> <C> <C>
Money Market Portfolio
Bedford Class $634,500 $ -- $634,500
Cash Preservation Class 4,175 (3,767) 408
RBB Class 4,080 (3,980) 100
Sansom Street Class 4,005 -- 4,005
-------- -------- --------
Total Money Market
Portfolio $646,760 $ (7,747) $639,013
======== ======== ========
Municipal Money Market
Portfolio
Bedford Class $ 47,000 $ -- $ 47,000
Bradford Class 17,400 -- 17,400
Cash Preservation Class 4,486 (4,009) 477
RBB Class 4,145 (4,132) 13
-------- -------- --------
Total Municipal Money
Market Portfolio $ 73,031 $ (8,141) $ 64,890
======== ======== ========
</TABLE>
In addition, PFPC serves as administrator for the Government Securities
and Municipal Money Market Portfolios. The administration fee is computed
daily and payable monthly at the annual rate of .10% of each Portfolio's
average daily net assets. PFPC may, at its discretion, voluntarily waive all
or any portion of its administration fee for the Portfolios. For the six
months ended February 28, 1995, administration fees and waivers for the two
portfolios were as follows:
<TABLE>
<CAPTION>
Gross Net
Administration Administration
Fee Waiver Fee
------------ ----------- -----------
<S> <C> <C> <C>
Government Securities Portfolio $ 26,360 $(5,734) $ 20,626
Municipal Money Market Portfolio 146,237 (6,332) 139,905
</TABLE>
The Fund, on behalf of each class of shares within the 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 and RBB Classes and up to .20% on an annualized
basis for the Sansom Street Class.
<PAGE>25
Note 2. Transactions with Affiliates and Related Parties (continued)
For the six months ended February 28, 1995, distribution fees for each class
of shares within the four investment portfolios were as follows:
<TABLE>
<CAPTION>
Distribution
Fee
--------------
<S> <C>
Tax-Free Portfolio
RBB Class $ 9,047
==========
Government Securities Portfolio
RBB Class $ 105,439
==========
Money Market Portfolio
Bedford Class $2,104,457
Cash Preservation Class 456
RBB Class 98
Sansom Street Class 105,813
----------
Total Money Market Portfolio $2,210,824
==========
Municipal Money Market Portfolio
Bedford Class $ 534,028
Bradford Class 299,841
Cash Preservation Class 455
RBB Class 8
----------
Total Municipal Money Market Portfolio $ 834,332
==========
</TABLE>
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 six months ended February
28, 1995, service organization fees were $188,498 for the Money Market
Portfolio and $0 for the Municipal Money Market Portfolio.
Note 3. Purchase and Sales of Securities
For the six months ended February 28, 1995, purchases and sales of
investment securities and United States Government Obligations (other than
short-term investments) were as follows:
<TABLE>
<CAPTION>
Investment Securities U.S. Government Obligations
------------------------- ----------------------------
Purchases Sales Purchases Sales
---------- ------------ ------------ -------------
<S> <C> <C> <C> <C>
Tax-Free Portfolio $300,000 $1,043,188 $ -- $ --
Government Securities Portfolio -- -- 7,976,034 23,807,604
</TABLE>
<PAGE>26
Note 4. Capital Shares
Transactions in capital shares for each period were as follows:
<TABLE>
<CAPTION>
Tax-Free Portfolio
--------------------------------------------------------------
For the For the
Six Months Ended Year Ended
February 28, 1995 August 31, 1994
------------------------------ -----------------------------
(Unaudited)
Shares Value Shares Value
----------- --------------- ------------ --------------
<S> <C> <C> <C> <C>
Shares sold:
Bedford Class -- -- -- --
Cash Preservation Class -- -- -- --
RBB Class 3,321 $ 32,278 4,183 $ 47,154
Sansom Street Class -- -- -- --
Shares issued in reinvestment
of dividends:
Bedford Class -- -- -- --
Cash Preservation Class -- -- -- --
RBB Class 17,815 173,136 37,807 414,727
Sansom Street Class -- -- -- --
Shares repurchased:
Bedford Class -- -- -- --
Cash Preservation Class -- -- -- --
RBB Class (87,402) (866,229) (91,398) (1,005,979)
Sansom Street Class -- -- -- --
---------- ------------ ------------ -------------
Net decrease (66,266) $ (660,815) (49,408) $ (544,098)
=========== ============ =========== =============
RBB Shares authorized 100,000,000 100,000,000
=========== ===========
</TABLE>
<PAGE>27
Note 4. Capital Shares (continued)
Transactions in capital shares for each period were as follows:
<TABLE>
<CAPTION>
Government Securities Portfolio
--------------------------------------------------------------
For the For the
Six Months Ended Year Ended
February 28, 1995 August 31, 1994
---------------------------- ----------------------------
(Unaudited)
Shares Value Shares Value
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Shares sold:
Bedford Class -- -- -- --
Cash Preservation Class -- -- -- --
RBB Class 7,241 $ 69,360 2,535,686 $ 27,294,890
Sansom Street Class -- -- -- --
Shares issued in reinvestment
of dividends:
Bedford Class -- -- -- --
Cash Preservation Class -- -- -- --
RBB Class 43,611 411,435 70,419 711,331
Sansom Street Class -- -- -- --
Shares repurchased:
Bedford Class -- -- -- --
Cash Preservation Class -- -- -- --
RBB Class (129,093) (1,219,140) (319,669) (3,246,502)
Sansom Street Class -- -- -- --
---------- ------------ ----------- -------------
Net increase (decrease) (78,241) $ (738,345) 2,286,436 $ 24,759,719
=========== ============ =========== =============
RBB Shares authorized 100,000,000 100,000,000
=========== ===========
</TABLE>
<PAGE>28
Note 4. Capital Shares (continued)
Transactions in capital shares (at $1 per capital share) for each period
were as follows:
<TABLE>
<CAPTION>
Money Market Portfolio Municipal Money Market Portfolio
------------------------------------- ----------------------------------------
For the For the For the For the
Six Months Ended Year Ended Six Months Ended Year Ended
February 28, 1995 August 31, 1994 February 28, 1995 August 31, 1994
----------------- ---------------- ---------------- -----------------
(Unaudited) (Unaudited)
Value Value Value Value
---------------- ---------------- --------------- -----------------
<S> <C> <C> <C> <C>
Shares sold:
Bedford Class $1,278,459,225 $2,789,452,640 $ 510,733,584 $ 1,292,822,671
Bradford Class -- -- 252,217,555 448,473,166
Cash Preservation Class 46,605 908,824 141,582 271,085
RBB Class 6,975 43,426 1,404 1,400
Sansom Street Class 990,907,295 1,517,145,765 -- 15,321
Shares issued in reinvestment
of dividends:
Bedford Class 16,509,075 20,973,730 2,530,219 4,271,511
Bradford Class -- -- 1,413,860 1,855,281
Cash Preservation Class 5,196 26,123 2,874 2,566
RBB Class 1,096 1,551 62 90
Sansom Street Class 8,071,063 7,714,640 -- 20
Shares repurchased:
Bedford Class (1,251,296,329) (2,881,789,878) (501,928,235) (1,330,256,087)
Bradford Class -- -- (243,147,384) (427,210,857)
Cash Preservation Class (54,828) (1,932,859) (143,465) (229,848)
RBB Class (2,823) (57,526) (1,314) (1,902)
Sansom Street Class (967,733,337) (1,341,896,149) -- (16,473)
-------------- -------------- ------------- ----------------
Net increase (decrease) $ 74,919,213 $ 110,590,287 $ 21,820,742 $ (10,002,056)
============== ============== ============= ================
RBB Shares authorized 500,000,000 500,000,000 500,000,000 500,000,000
============== ============== ============= ================
</TABLE>
<PAGE>29
Note 5. Net Assets
At February 28, 1995, net assets consisted of the following:
<TABLE>
<CAPTION>
Government Municipal
Tax-Free Securities Money Market Money Market
Portfolio Portfolio Portfolio Portfolio
-------------- -------------- -------------- ---------------
<S> <C> <C> <C> <C>
Capital Paid-In:
Bedford Class -- -- $ 754,410,803 $ 193,816,408
Bradford Class -- -- -- 110,574,496
Cash Preservation Class -- -- 228,154 201,837
RBB Class $ 4,589,222 $ 58,710,661 50,561 5,013
Sansom Street Class -- -- 404,990,910 --
Other Classes -- -- 800 800
Undistributed Net Investment
Income (Loss):
Bedford Class -- -- -- --
Bradford Class -- -- -- --
Cash Preservation Class -- -- -- --
RBB Class (17,509) (551,589) -- --
Sansom Street Class -- -- -- --
Amortized Market Discount:
Bedford Class -- -- -- --
Bradford Class -- -- -- --
Cash Preservation Class -- -- -- --
RBB Class 4,020 -- -- --
Sansom Street Class -- -- -- --
Accumulated Net Realized
Gain (Loss)
on Investments:
Bedford Class -- -- (1,351) (72,643)
Bradford Class -- -- -- (1,220)
Cash Preservation Class -- -- -- 3
RBB Class (15,364) (4,520,963) -- --
Sansom Street Class -- -- (711) --
Unrealized Appreciation
(Depreciation) on
Investments:
Bedford Class -- -- -- --
Bradford Class -- -- -- --
Cash Preservation Class -- -- -- --
RBB Class 91,756 (272,516) -- --
Sansom Street Class -- -- -- --
-------------- -------------- -------------- ---------------
$ 4,652,125 $ 53,365,593 $1,159,679,166 $ 304,524,694
============== ============== ============== ===============
</TABLE>
<PAGE>30
Note 6. Other Financial Highlights
The Fund currently offers three other classes of shares representing
interests in the Money Market Portfolio: Bedford, Cash Preservation and
Sansom Street. The Fund currently offers three other classes of shares
representing interest in the Municipal Money Market Portfolio: Bedford,
Bradford and Cash Preservation. Each class is marketed to different types
of investors. Financial Highlights of the Cash Preservation class is not
presented in this report due to its immateriality. Such information is
available in the annual reports of the Cash Preservation family. The
financial highlights of certain of the other classes are as follows:
<TABLE>
<CAPTION>
The Bedford Family
Money Market Portfolio
---------------------------------------------------------------------------------------------
For the For the For the For the For the
Six Months Ended Year Ended Year Ended Year Ended Year Ended
February 28, 1995 August 31, 1994 August 31, 1993 August 31, 1992 August 31, 1991
----------------- --------------- --------------- --------------- ---------------
(Unaudited)
<S> <C> <C> <C> <C> <C>
Net asset value,
beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
----------- ----------- ----------- ----------- -----------
Income from investment
operations:
Net investment income .0226 .0278 .0243 .0375 .0629
Net gains on securities
(both realized
and unrealized) -- -- -- .0007 --
----------- ----------- ----------- ----------- -----------
Total from investment
operations .0226 .0278 .0243 .0382 .0629
----------- ----------- ----------- ----------- -----------
Less distributions
Dividends (from net
investment income) (.0226) (.0278) (.0243) (.0375) (.0629)
Distributions (from
capital gains) -- -- -- (.0007) --
----------- ----------- ----------- ----------- -----------
Total distributions (.0226) (.0278) (.0243) (.0382) (.0629)
----------- ----------- ----------- ----------- -----------
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
=========== =========== =========== =========== ===========
Total Return 4.65%(b) 2.81% 2.46% 3.89% 6.48%
Ratios /Supplemental Data
Net assets, end of period $754,409,452 $710,737,481 $782,153,438 $736,841,928 $747,530,400
Ratios of expenses to
average net assets .96%(a)(b) .95%(a) .95%(a) .95%(a) .92%(a)
Ratios of net investment
income to average
net assets 4.55%(b) 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
Six Months Ended Year Ended Year Ended Year Ended Year Ended
February 28, 1995 August 31, 1994 August 31, 1993 August 31, 1992 August 31, 1991
----------------- --------------- --------------- --------------- ---------------
(Unaudited)
<S> <C> <C> <C> <C> <C>
Net asset value,
beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
----------- ----------- ----------- ----------- -----------
Income from investment
operations:
Net investment income .0138 .0195 .0195 .0287 .0431
Net gains on securities
(both realized
and unrealized) -- -- -- -- --
----------- ----------- ----------- ----------- -----------
Total from investment
operations .0138 .0195 .0195 .0287 .0431
----------- ----------- ----------- ----------- -----------
Less distributions
Dividends (from net
investment income) (.0138) (.0195) (.0195) (.0287) (.0431)
Distributions (from
capital gains) -- -- -- -- --
----------- ----------- ----------- ----------- -----------
Total distributions (.0138) (.0195) (.0195) (.0287) (.0431)
----------- ----------- ----------- ----------- -----------
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
=========== =========== =========== =========== ===========
Total Return 2.83%(b) 1.97% 1.96% 2.90% 4.40%
Ratios /Supplemental Data
Net assets, end of period $193,743,765 $182,408,069 $215,577,193 $176,949,886 $215,139,746
Ratios of expenses to
average net assets .80%(a)(b) .77%(a) .77%(a) .77%(a) .74%(a)
Ratios of net investment
income to average
net assets 2.79%(b) 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 1.19% annualized for the
six months ended February 28, 1995, 1.16%, 1.19%, 1.20% and 1.17% for the years ended August 31, 1994, 1993, 1992 and
1991, respectively. For the Municipal Money Market Portfolio, the ratios of expenses to average net assets would have
been 1.15% annualized for the six months ended February 28, 1995, 1.12%, 1.16%, 1.15% and 1.13% for the years ended
August 31, 1994, 1993, 1992 and 1991, respectively.
(b) Annualized.
</FN>
</TABLE>
<PAGE>31
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
Six Months Year Year (Commencement of
Ended Ended Ended Operations) to
February 28, 1995 August 31, 1994 August 31, 1993 August 31, 1992
----------------- --------------- --------------- ---------------
(Unaudited)
<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 0.0138 0.0195 0.0195 0.0154
Net gains on securities
(both realized and
unrealized) -- -- -- --
----------- ----------- ----------- -----------
Total from investment
operations 0.0138 0.0195 0.0195 0.0154
----------- ----------- ----------- -----------
Less distributions
Dividends (from net
investment income) (0.0138) (0.0195) (0.0195) (0.0154)
Distributions (from
capital gains) -- -- -- --
----------- ----------- ----------- -----------
Total distributions (0.0138) (0.0195) (0.0195) (0.0154)
----------- ----------- ----------- -----------
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00
=========== =========== =========== ===========
Total Return 2.83%(b) 1.97% 1.96% 2.42%(b)
Ratios /Supplemental Data
Net assets, end of period $110,573,276 $100,089,172 $76,975,393 $69,586,281
Ratios of expenses
to average
net assets 80%(a)(b) .77%(a) .77%(a) .77%(a)(b)
Ratios of net investment
income to average
net assets 2.79%(b) 1.95% 1.95% 2.40%(b)
<FN>
(a) Without the waiver of advisory, transfer agency and administration fees and without the reimbursement
of certain operating expenses, the ratios of expenses to average net assets would have been 1.15%
annualized for the six months ended February 28, 1995, 1.11% and 1.16% for the year ended
August 31, 1994 and 1993 and 1.16% annualized for the period ended August 31, 1992.
(b) Annualized.
</FN>
</TABLE>
<PAGE>32
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
Six Months Ended Year Ended Year Ended Year Ended Year Ended
February 28, 1995 August 31, 1994 August 31, 1993 August 31, 1992 August 31, 1991
----------------- --------------- --------------- --------------- ---------------
(Unaudited)
<S> <C> <C> <C> <C> <C>
Net asset value,
beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
----------- ----------- ----------- ----------- -----------
Income from investment
operations:
Net investment income .0254 .0334 .0304 .0435 .0684
Net gains on securities
(both realized and
unrealized) -- -- -- .0007 --
----------- ----------- ----------- ----------- -----------
Total from investment
operations .0254 .0334 .0304 .0442 .0684
----------- ----------- ----------- ----------- -----------
Less distributions
Dividends (from net
investment income) (.0254) (.0334) (.0304) (.0435) (.0684)
Distributions (from capital
gains) -- -- -- (.0007) --
----------- ----------- ----------- ----------- -----------
Total distributions (.0254) (.0334) (.0304) (.0442) (.0684)
----------- ----------- ----------- ----------- -----------
Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
=========== =========== =========== =========== ===========
Total Return 5.25% 3.39% 3.08% 4.51% 7.06%
Ratios /Supplemental Data
Net assets, end of period $404,990,199 $373,745,178 $190,794,098 $228,078,764 $138,417,995
Ratios of expenses to
average net assets .38%(a)(b) .39%(a) .34%(a) .35%(a) .37%(a)
Ratios of net investment
income to average
net assets 5.13%(b) 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 .61% annualized for the six months ended
February 28, 1995 .60%, .60%, .61% and .61% for the years ended August 31, 1994, 1993, 1992 and 1991, respectively.
(b) Annualized.
</FN>
</TABLE>
<PAGE>33
