RBB FUND INC, N-30D, 1995-10-27

RBB FUND INC
N-30D, 1995-10-27

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<PAGE>
IMPORTANT TAX INFORMATION FOR SHAREHOLDERS OF BEA EMERGING MARKETS EQUITY
PORTFOLIO (UNAUDITED)

During the fiscal year ended August 31, 1995, the Emerging Markets Equity
Portfolio distributed $326,109 of foreign source income on which the Portfolio
paid foreign taxes of $155,707. This information is being furnished to you
pursuant to notice requirements of Sections 853(a) and 855(d) of the Internal
Revenue Code, as amended, and the Treasury Regulations thereunder.

IMPORTANT TAX INFORMATION FOR CORPORATE SHAREHOLDERS OF BEA U.S. CORE EQUITY
PORTFOLIO (UNAUDITED)

The percentage of dividends from net investment income declared in the year
ended August 31, 1995, which qualify for the corporate dividends received
deduction is 82.9%.

IMPORTANT TAX INFORMATION FOR SHAREHOLDERS OF BEA MUNICIPAL BOND PORTFOLIO
(UNAUDITED)

In the twelve months ended August 31, 1995 (the end of the Fund's fiscal
year), 99% of the dividends paid by the Fund were exempt-interest dividends for
purposes of federal income taxes and free from such taxes. In addition, none of
such dividends was attributable to interest on private activity bonds which must
be included in federal alternative minimum taxable income for purposes of
determining liability for federal alternative minimum tax.

In January 1996, you will be furnished with a schedule showing the yearly
percentage breakdown by State or U.S. possession of the source of interest
earned by the Fund in 1995. It is suggested that you consult your tax adviser
concerning the applicability of State and local taxes to dividends paid by the
Fund during the year.

IMPORTANT TAX INFORMATION FOR SHAREHOLDERS (UNAUDITED)

During the year ended August 31, 1995, the BEA Funds declared the following
dividends from realized capital gains:

<TABLE>
<CAPTION>
SHORT-TERM LONG-TERM
CAPITAL GAIN, CAPITAL GAIN,
PER SHARE PER SHARE
------------- -------------
<S> <C> <C>
BEA International Equity Portfolio............................................. $ .39 $ .41
BEA Emerging Markets Equity Portfolio.......................................... .68 .24
BEA Municipal Bond Fund Portfolio.............................................. -- .05
</TABLE>
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
PORTFOLIO MANAGER'S LETTER
AUGUST 31, 1995
BEA INTERNATIONAL EQUITY PORTFOLIO
October 18, 1995
Dear Shareholders:

We are pleased to report the performance returns of the BEA International
Equity Portfolio for the year ended August 31, 1995. For the year, the
Portfolio's return was -8.06%, while the MSCI EAFE Index returned 0.80%. For the
six months ended August 31, 1995, the Portfolio increased 11.70%, while the
index increased by 9.51%. Since its inception of October 1, 1992, the Portfolio
has earned 31.11% versus an index return of 45.22%.

ECONOMIC OVERVIEW

During the calendar quarter ended September 30, 1995, the most dominant
factor in the performance of the international equity markets was the dramatic
volatility of exchange rates. Viewed in local currency terms, the MSCI EAFE
Index produced a return of over 11% for the quarter, currency movements --
almost entirely the 13.9% depreciation of the yen versus the dollar -- reduced
that return by more than half for the U.S. dollar investor. A brief comment
about recent events in the foreign exchange market is therefore appropriate,
before we discuss developments in the international equity markets themselves.

In the past few months, the world's major central banks have made concerted
efforts to boost the value of the U.S. dollar against the yen and key European
currencies. They have done so out of concern that the weak dollar -- which
reached historic low points earlier this year -- was choking off growth in
Europe and contributing to serious financial instability in Japan. Indeed, fears
of a run on Japanese banks began to surface in late June and early July as
persistent weakness in Japan's stock market coincided with declining confidence
in Japanese banks at home and abroad. The bottom line: reflating the
deflation-prone Japanese economy -- and pumping up its financial markets -- have
become key priorities for global policymakers.

The problem in Japan's case is that the usual remedy for deflation -- i.e.
lower interest rates -- has not worked, because Japan's banks are still
struggling to cope with the after-effects of at least $500 billion of bad loans
made during the real-estate mania of the late 1980s. Even with short-term
interest rates now below 1% in Japan, banks are still not anxious to lend, while
consumers and businesses in Japan are equally wary about borrowing. The
excessively strong yen adds insult to injury by destroying Japan's export
competitiveness at the same time that its domestic economy has stagnated. The
only way out of this quagmire appears to be a stronger dollar and weaker yen,
boosting Japan's export prospects and corporate profits. Japan's deflationary
spiral is currently the most urgent problem facing the global financial system
and demands immediate attention.

In short, it appears that the dollar may have posted a multi-year low
earlier this year when it dipped below 80 yen and 1.35 Deutschemarks. In view of
global policymakers' current concerns, we would not be surprised to see the
dollar move a bit higher over the next 6-to-12 months to levels like 110 yen and
1.60 Deutschemarks. That would still represent a weak dollar from a long-term
perspective. But a dollar recovery of that magnitude, if sustained, would have
important implications for the relative performance of international financial
markets as well as for various sectors within those markets. Our expectation of
a stronger dollar will be increasingly reflected in the portfolio's investments,
as we will discuss later in this letter.

MARKET COMMENTARY AND PORTFOLIO REVIEW

In the context of a declining yen, the Japanese equity market produced very
strong performance in local currency terms, rising by 21.5%. (This translated
into a U.S. dollar return of only 4.5%.) It was the decline in the value of the
yen, in fact, that acted as the primary trigger for Japan's equity rally. The
dollar had begun creeping upward in mid-April, but did not gain sufficient
momentum to calm Japanese equity investors until the second week of July. As the
dollar began to rally more dramatically, the market began to feel convinced that
the

2
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
PORTFOLIO MANAGER'S LETTER--(CONTINUED)
AUGUST 31, 1995
yen had finally topped out. With the yen seemingly likely to fall back still
further, Japanese stocks suddenly appeared to investors to have gotten
relatively cheap. This triggered a wave of buying, both by local investors and
- -- most significantly -- by Europeans taking profits in the U.S and reallocating
those assets into the Japanese market.

Despite this market's strong local currency performance, we are not sanguine
on its medium-term prospects. The Japanese economy remains troubled: growth is
stagnant, the banking system is overloaded with bad loans, and companies are
bloated with superfluous employees. It is increasingly our view that corporate
profits in Japan will not truly recover until (or unless) Japanese society
undergoes a meaningful restructuring. We have been disappointed that significant
political reforms have still not come, despite the well-publicized travails of
the Liberal Democratic Party, and it has come to seem that there are no
institutions within the country that are likely to push those reforms. More
importantly, Japanese society since at least the Second World War has been a
sort of "corporate welfare state," where companies -- rather than the government
- -- are the source of a broad range of social welfare benefits, including an
informal "life employment" system that is still largely intact. These benefits
come, of course, at the cost of corporate profits. In our view, the real buy
signal for Japanese equities would be an announcement by Nissan (or any other
megacorporation) that it is cutting 20,000 jobs, through layoffs rather than
simple attrition. No doubt, this would be followed by a rash of similar moves by
other companies that were unwilling to be the first to break tradition. The
social impact would be dramatic and negative, but the long-term impact on
profitability would be equally dramatic, and very positive. Unfortunately, as of
now we see few signs that this is likely, and we consequently have moved during
the quarter to reduce our already significantly underweight position in Japanese
equities.

In the European markets, meanwhile, we still do not see any particularly
exciting values, and we therefore continue to be underweight in the region.
Europe, of course, does not have the same kind of acute financial problems
currently faced by Japan, but its growth prospects have been seriously crimped
by dollar weakness in recent years. That has left Europe with anemic employment
growth and mounting social and budgetary problems, which may be eased somewhat
by a stronger dollar and better export growth. During the quarter, therefore,
the Bundesbank cut key German interest rates by a half point following very
visible intervention to push the dollar higher in foreign exchange markets.

Among the region's major markets, we remain most positive on France, where
we currently maintain a position in line with the index weighting. In our view,
both France and Germany (where the portfolio is still modestly underweight) are
showing positive signs of success in fighting inflation, and economic growth
prospects are reasonably good as well -- we anticipate earnings growth in the
major European economies of between 2 and 3 percent over the next year or two.
At present, cheaper equity valuations in France are balanced by somewhat
superior growth prospects in Germany, which appears to us to be more fully
valued. In the U.K., valuations are reasonable: hence the modest increase in our
allocation during the quarter. Earnings growth, however, remains sluggish, and
in view of political uncertainty -- the Major government appears increasingly
rudderless -- we remain underweight. Overall, we maintain the view that long-
term fundamental growth will be higher in the emerging markets than in Europe,
and we therefore continue to underweight Europe in order to overweight emerging
economies.

Performance in the emerging equity markets varied widely during the past few
months, and was driven by local events as much as by broad global or regional
trends. During the calendar quarter ended September 30, 1995, Brazil, Korea, and
Mexico all produced significantly positive returns, while their neighbors Chile
and Thailand were down sharply. In a normal market environment, returns of the
emerging markets have tended to show extremely low inter-market correlations.
While correlations tend to rise significantly during major market dislocations,
the broad divergence of emerging market returns during the past few months is a
sign that the "tequila effect" is gradually becoming a less dominant factor. In
a context of broad dispersion of country returns within regions, Latin America
generally outperformed the Asian markets, which saw an overall decline of 4.5%.

We are quite positive on the outlook for the emerging markets over the next
few months. While Latin America as a whole continues to feel some negative
economic effects of Mexico's troubles, we believe that current asset prices
reflect every bit of the bad news and none of

3
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
PORTFOLIO MANAGER'S LETTER--(CONTINUED)
AUGUST 31, 1995
the good. The persistent and exaggerated pessimism of investors in Argentina,
for example, is at odds with the substantial gains being made in that economy.
Similarly, in light of the tremendous progress being made in Brazil, it again
seems that the market would be significantly higher were it not for the hangover
from the "tequila effect."

In addition, Latin American policy makers -- in Mexico, of course, but also
throughout the region -- seem to have taken the recent crisis as the warning
sign which in fact it was. While great progress has been made in recent years,
several key areas of reform have still not really been addressed. In recent
months, we have begun to see governments begin to tackle the thornier and more
difficult problems that have acted as roadblocks to economic progress. Finally,
for example, policy makers have begun implementing the social security and
pension reforms necessary to boost domestic savings rates. Similarly, there has
been widespread recognition of the need to boost export performance, in order to
generate valuable foreign exchange reserves. A key element of this has been a
renewed awareness of the need to increase labor productivity, and at the same
time reduce employers' costs. We also anticipate renewed measures to reduce
bureaucracy and deregulation, primarily through the privatization process. This
will be particularly evident this year in Argentina, and next year in Mexico and
Brazil -- where a series of far-reaching privatizations are the key to the
ultimate transition of that economy.

The Asian markets, meanwhile, tend to be less dependent on foreign
investors, although domestic investors in the region remain subdued by their
experiences since early 1994 and have so far failed to rekindle much enthusiasm
for their own markets. Economic growth remains significantly above that
experienced in other parts of the world, however, and has shown few signs of any
slowdown. In South Korea, Malaysia, Thailand and Singapore, economic growth in
1995 will exceed 8%; all but the last will in fact show faster growth in 1995
than last year. The only major problems for the region relate to the momentum of
economic growth which has built up in recent years fostering inflationary
pressure and a rising current account deficit in certain countries.

Looking in general terms at the likely trend in Asian markets during the
next few months, it is clear that while market valuations are not stretched,
neither are they cheap by historic standards. While bullish on the emerging
markets in general, therefore, we currently maintain an overweight position in
Latin America, where equity valuations remain suppressed relative to the Asian
markets. Overall, with interest rates coming down in virtually all major
markets, liquidity appears to be returning to the capital markets. This is good
news for emerging market investors, as perhaps the most important factor in the
performance of emerging equity markets is the availability of investment capital
on the world market.

CURRENCY HEDGING

While we have never ruled out the possibility of currency hedging, until
recently we had perceived structural imbalances in place in the capital markets
that were creating a bias toward a weaker dollar. Hence, hedging did not make
sense to us.

Developments in recent weeks, however, have led us to conclude that we may
be seeing a reversal of those structural factors, as discussed in the "Economic
Overview" above. It seems clear that Japan intends to try to rescue its economy
by weakening its own currency. The rest of the world might normally not be
inclined to go along with this strategy. In this case, however, the fragility of
Japan's financial system, which is burdened by a huge mountain of bad loans, has
tipped the balance. The U.S. and the other G-7 nations appear to have concluded
that it is in their interests as well to allow the dollar to strengthen, so as
to avert a crisis in the Japanese financial system, and by extension the
world's.

In light of these developments, we have decided to implement a strategy that
will protect our portfolios from continued dollar strength, while minimizing our
losses in the event that the dollar turns around and weakens. Using a
combination of currency options and forward contracts, we have hedged the Fund's
exposure to the yen and to Continental European currencies. In total, this hedge
impacts approximately 40% of the portfolio's foreign currency exposure. As you
may know, BEA manages approximately $2.5 billion in currency hedging assets
through our derivatives group, led by Jeff Geller, Executive Director. Jeff has
been with BEA for 17 years, and was a pioneer in the development of hedging
strategies in the early 1980s.

4
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
PORTFOLIO MANAGER'S LETTER--(CONTINUED)
AUGUST 31, 1995

Through the use of options, we are able to significantly reduce the
potential opportunity cost of hedging, which can be unlimited in a hedge
constructed solely through currency forwards. Due to the nature of options, our
hedge is structured so that if the dollar continues to strengthen (thus hurting
the dollar-based returns on foreign assets), our level of protection will
automatically rise. Conversely, if the dollar weakens (which would boost the
returns on foreign currencies), our level of participation in these currency
returns automatically increases. In other words, this hedge is an expression of
our view that the dollar will strengthen in the medium term, however, its
structure provides significant protection from the possibility that our view is
incorrect. The cost of the option contracts was significantly reduced through
the partial use of forward contracts, which currently benefit favorable interest
rate differentials.

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

Sincerely yours,

BEA International Equities Team

Emilio Bassini, Executive Director
Steve Bleiberg, Senior Vice President
Bill Sterling, Managing Director
Stephen Swift, Managing Director
Richard Watt, Senior Vice President

5
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
PORTFOLIO MANAGER'S LETTER--(CONCLUDED)
AUGUST 31, 1995

BEA INTERNATIONAL EQUITY PORTFOLIO

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

<TABLE>
<S> <C>
AVERAGE ANNUAL TOTAL RETURN
One Year (8.96)%
From Inception 9.37%
</TABLE>

EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC

<TABLE>
<CAPTION>
BEA INTERNATIONAL EQUITY
PORTFOLIO MORGAN STANLEY COMPOSITE INDEX EAFE
<S> <C> <C>
10/1/92 10,000 10,000
11/30/92 9,685 9,571
2/28/93 9,906 9,918
5/31/93 11,218 12,062
8/31/93 12,159 12,962
11/30/93 12,120 11,928
2/28/94 13,783 13,841
5/31/94 12,999 13,735
8/31/94 13,891 14,405
11/30/94 13,080 13,732
2/28/95 11,435 13,258
5/31/95 12,500 14,451
8/31/95 12,648 14,517
</TABLE>

Note: Past performance is not predictive of future performance. Average Annual
Total Returns are net of 1.00% redemption fees.

6
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
PORTFOLIO MANAGER'S LETTER
AUGUST 31, 1995
BEA EMERGING MARKETS EQUITY PORTFOLIO
October 18, 1995
Dear Shareholders:

This letter reports the performance returns of the BEA Emerging Markets
Equity Portfolio for the year ended August 31, 1995. For the year, the Portfolio
return was -24.42%, while the MSCI Emerging Markets Free Index return was
- -16.40%. For the six months ended August 31, 1995, the Portfolio returned
10.99%, versus the index, which returned 10.88%. Since the inception of the
Portfolio on February 1, 1993 it has returned 25.89% versus an index return of
52.64%.

MARKET/PORTFOLIO COMMENTARY

Performance in the emerging equity markets varied widely during the calendar
quarter ended September 30, 1995, and was driven by local events as much as by
broad global or regional trends. This is, in our view, an indication of reviving
health in these markets, marking the end of the Mexican peso crisis as a
significant global problem. In a normal market environment, returns of the
emerging markets have tended to show extremely low inter-market correlations. As
in the developed markets, these correlations tend to rise significantly during
major market dislocations, as markets move downward in virtual lockstep. The
obvious examples of this effect are October 1987 for the developed markets and
December 1994 in the emerging markets. The broad divergence of emerging market
returns during the past few months, then, is a positive sign that the "tequila
effect" is becoming a less important issue.

During the most recent calendar quarter, Brazil, Korea, and Mexico all
produced significantly positive returns, while their neighbors Chile and
Thailand were down sharply. Overall, Latin America was the strongest region,
with the MSCI Latin America Free index producing a positive return of 3.4%, the
counterpart index for the Asian markets, meanwhile, declined by 4.5%. At the
same time, some of the "miscellaneous" emerging markets, particularly Israel and
South Africa, produced solid positive returns. Of course, from a somewhat
long-term perspective, the emerging markets in general remain a disappointment
in 1995. The Asian markets are down by over 3.0% for the year to date, while
Latin America remains in the hole dug by the Mexican crisis of December 1994,
with an overall return of -9.6%. Among the Latin American markets, only Peru has
a positive return for the year to date.

We are, however, quite positive on the short term outlook for the emerging
markets. While Latin America as a whole continues to feel the negative economic
effects of Mexico's troubles, we believe that current asset prices reflect every
bit of the bad news and none of the good. The persistent and exaggerated
pessimism of investors in Argentina, for example, is at odds with the
substantial gains being made in that economy. Similarly, in light of the
tremendous progress being made in Brazil, it again seems that the market would
be significantly higher were it not for the hangover from the "tequila effect."

In addition, Latin American policy makers -- in Mexico, of course, but also
in nations throughout the region -- seem to have taken the recent crisis as the
warning sign which in fact it was. While great progress has been made in recent
years, several key areas of reform have still not really been addressed. In
recent months, we have begun to see governments begin to tackle the thornier and
more difficult problems that have acted as roadblocks to economic progress.
Finally, for example, policy makers have begun implementing the social security
and pension reforms necessary to boost domestic savings rates. Similarly, there
has been widespread recognition of the need to boost export performance, in
order to generate valuable foreign exchange reserves. A key element of this has
been a renewed awareness of the need to increase labor productivity, and at the
same time reduce employers' costs. We also anticipate renewed measures to reduce
bureaucracy and deregulation, primarily through the privatization process. This
will be particularly evident this year in Argentina, and next year in Mexico and
Brazil -- where a series of far-reaching privatizations are the key to the
ultimate transition of that economy.

The Asian markets, meanwhile, tend to be less dependent on foreign investors
- -- indeed, some of the biggest regional markets, including Korea and India, put
tight restrictions on foreign investment. Nevertheless, in many countries
domestic investors remain subdued by their experiences since early 1994 and have
so far failed to rekindle much enthusiasm for their own markets. The importance
of foreign

7
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
PORTFOLIO MANAGER'S LETTER--(CONTINUED)
AUGUST 31, 1995
investors has thus increased during the past two years, and their attitudes
towards risk has led to a more cautious approach in the Asian region as a whole.
The Asian economic growth rate remains significantly above that experienced in
other parts of the world, however. Even in the subdued global economy of 1995,
regional economies have shown few signs of any slowdown. In South Korea,
Malaysia, Thailand and Singapore, economic growth in 1995 will exceed 8.0%; all
but the last will in fact show faster growth in 1995 than last year.

The only major problems for the region relate to the momentum of economic
growth which has built up in recent years fostering inflationary pressure and a
rising current account deficit in certain countries. Looking in general terms at
the likely trend in Asian markets during the next few months, it is clear that
while market valuations are not stretched, neither are they cheap by historic
standards. While bullish on the emerging markets in general, therefore, we
currently maintain an overweight position in Latin America, where equity
valuations remain suppressed relative to the Asian markets.

The portfolio's modest outperformance of the MSCI Emerging Markets Free
Index during the second half of the year was largely the result of top-down
factors, consistent with our strategy in these markets. Most important to the
portfolio's return were our overweight positions, relative to the index
weightings, in Brazil, Mexico, and Hong Kong, all of which outperformed the
broad index by a significant margin, and our underweightings in the Philippines
and Turkey (where we maintain a zero weighting). Our continued underweighting in
South Africa, a market that now accounts for 14.80% of the benchmark, was a
negative factor for portfolio performance, as was our overweighting in Chile.

In summary, with interest rates coming down in virtually all major markets,
liquidity appears to be returning to the capital markets. This is good news for
emerging market investors, as perhaps the most important factor in the
performance of emerging equity markets is the availability of investment capital
on the world market. We are very sanguine about prospects for the remainder of
the year and for 1996.

As developments occur in the emerging markets or at BEA that we believe
would be of interest to you, we will be sure to keep you up to date. Meanwhile,
if you have questions, please feel free to call upon us at any time.

Sincerely yours,

BEA Emerging Markets Equities Team

Emilio Bassini, Executive Director
Stephen M. Swift, Managing Director
Richard Watt, Senior Vice President

8
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
PORTFOLIO MANAGER'S LETTER--(CONCLUDED)
AUGUST 31, 1995
BEA EMERGING MARKETS EQUITY PORTFOLIO

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

<TABLE>
<S> <C>
AVERAGE ANNUAL TOTAL RETURN
One Year (25.58)%
From Inception 8.70%
</TABLE>

EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC

<TABLE>
<CAPTION>
BEA EMERGING MARKETS EQUITY MORGAN STANLEY COMPOSITE INDEXFREE EMERGING
PORTFOLIO MARKETS
<S> <C> <C>
2/1/93 10,000 10,000
2/28/93 10,027 10,159
5/31/93 10,815 10,923
8/31/93 12,377 12,443
11/30/93 14,653 14,648
2/28/94 17,078 17,058
5/31/94 14,839 15,724
8/31/94 16,832 18,257
11/30/94 15,879 17,189
2/28/95 11,460 13,765
5/31/95 12,677 15,243
8/31/95 12,526 15,263
</TABLE>

Note: Past performance is not predictive of future performance. Average Annual
Total Returns are net of 1.50% redemption fees.

9
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
PORTFOLIO MANAGER'S LETTER
AUGUST 31, 1995
BEA U.S. CORE EQUITY PORTFOLIO
October 13, 1995
Dear Shareholders:

This letter reports the performance returns of the BEA U.S. Core Equity
Portfolio for the year ended August 31, 1995. The net asset value (NAV) of the
Portfolio as of August 31, 1995, was $17.86, compared to an NAV of $15.29 at
February 28, 1995. The Portfolio began operations on September 1, 1994 with an
NAV of $15.00. For the year, the Portfolio's return was 19.75%. In comparison,
the S&P 500 Index had a return of 21.50% and a broader measure of the market,
the Wilshire 5000 Index, returned 22.00% during the same period. For the six
months ended August 31, 1995, the Portfolio returned 16.80%, matching the S&P
500 return of 16.80%, while the Wilshire 5000 Index returned 18.00%.

The tone of the U.S. equity market has markedly changed during the past few
months, beginning with a brief correction that occurred in July. That brief but
sharp downturn in the market was led (as was the bull market of the entire first
half of the year) by the technology sector. Microsoft, in the midst of its
Windows 95 publicity blitz, was a market leader in both directions. As the
leading force in this sector and one of the country's great companies, Microsoft
is in fact not a particularly great value by our measures -- it is currently
valued at about 10 times revenues, a ratio seldom seen and almost never
sustained in this market. Because this pushed other technology stocks to
similarly inflated valuations, we have largely avoided this sector. In addition,
both in technology and in the market in general, the first half rally was also
dominated by the largest companies -- the dozen or so firms at the top of the
S&P 500 outperformed the index in general by a substantial margin.

During the calendar quarter ended September 30, 1995, all this appears to
have changed. First of all, market leadership has clearly moved down the
capitalization scale, as mid-size and smaller companies begin to play catch up.
For example, the Dow Jones Industrial Average, dominated by the largest
companies, was outperformed by the S&P 500, a broader index with a large number
of mid-cap names, which was in turn outpaced by the leading index of
small-capitalization stocks, the Russell 2000. Clearly, the broadening of the
bull market, of which we began to see indications during the second quarter, has
become more well established.

At the same time, technology issues are no longer leading the way. As you
know, we have been largely out of this sector during 1995 (with the exception of
Intel), and have therefore suffered a degree of opportunity cost. While growth
in the technology sector has been impressive, it can also be quite volatile, and
few if any technology companies can meet the valuation tests that are an
important focus of our investment process. In any case, it is our view that the
strong run of technology is now over, for the moment at least. The death knell,
we believe, was the strong rally in the U.S. dollar that occurred during the
quarter. The long dollar decline that we witnessed over the past five years,
which culminated in a collapse from 100 to 80 yen during the first four months
of 1995, was a godsend for U.S. technology producers, making their products far
more competitive in the global marketplace and thereby boosting export earnings
substantially. Now that the value of the dollar has returned to the 100 yen
level, and is likely to move up somewhat further over the next several months,
this sector (as well as other major exporters) should feel a negative impact on
their earnings.

We believe, however, that the outlook for U.S. stocks remain attractive.
Valuation indicators are somewhat mixed -- dividend yields and price-to-book
ratios make the market appear fully priced, while earnings and cash flow
multiples still reflect fair valuations. In this context, we believe that
demographic factors continue to augur well for all financial assets in the U.S.
In short, we believe that the aging of the baby boomer generation is extremely
good news for the capital markets. Most importantly, perhaps, as the children of
the post-war generation enter their middle years, they move out of the consuming
stage of their economic life cycle (buying houses, cars, university educations,
etc.) and into the savings stage, as quality of life in retirement becomes a
priority. We are already seeing the huge asset flows into stocks, bonds and
mutual funds that are the almost inevitable result of this demographic shift. in
addition, this generation's new emphasis on savings has already begun putting
significant pressure on policy makers to cut taxes and government spending. The
lower interest rates that should result bode well for both equities and bonds.

10
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
PORTFOLIO MANAGER'S LETTER--(CONTINUED)
AUGUST 31, 1995

In the Fund, we continue to pursue the twin themes of corporate
restructuring and global unit growth, and a large proportion of our holdings fit
with these themes. AT&T, for example, is representative of the restructuring
theme. We do not believe that the relatively small positive move in this stock's
price since the startling announcement of a few weeks ago reflects the full
import of the changes ahead. We remain optimistic, and perceive significant
upside potential.

We have recently, with our colleague Bill Sterling's input, added a third
theme, that of the bottoming of the U.S. dollar. The impact of this reversal of
relatively long-term foreign exchange trends is likely to be positive for
financial stocks and negative, as we have said, for exporters, particularly
technology companies. It is worth noting that the Fund's performance in 1995 has
been quite respectable, particularly in light of the underrepresentation of
technology stocks in the portfolio. We believe that the turn in the dollar's
fortunes will hit technology companies particularly hard -- a good deal of their
recent superior price performance has come as a result of a weakening dollar and
the consequently strong export markets. When the correction in technology stocks
occurs -- and we believe it will, and has already begun -- the Portfolio is very
well positioned to outperform the market.

The Fund's sector weightings emphasize Consumer Cyclicals, Finance, Health
Care and Capital Goods. We are underweighted versus the S&P 500 in Food, Capital
Goods and Retail.

At August 31, 1995 the portfolio held 65 securities and tends to be equal
weighted.

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

Sincerely yours,

BEA Domestic Equities Management Team

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

11
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
PORTFOLIO MANAGER'S LETTER--(CONCLUDED)
AUGUST 31, 1995

BEA U.S. CORE EQUITY PORTFOLIO

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

<TABLE>
<S> <C>
AVERAGE ANNUAL TOTAL RETURN
From Inception 19.75%
</TABLE>

EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC

<TABLE>
<CAPTION>
BEA U.S. CORE EQUITY
PORTFOLIO S&P 500 WEIGHTED YIELD AVERAGE INDEX
<S> <C> <C>
9/1/94 10,000 10,000
11/30/94 9,533 9,615
2/28/95 10,251 10,398
5/31/95 11,103 11,455
8/31/95 11,975 12,149
</TABLE>

Note: Past performance is not predictive of future performance.

12
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
PORTFOLIO MANAGER'S LETTER
AUGUST 31, 1995
BEA U.S. CORE FIXED INCOME PORTFOLIO
October 16, 1995
Dear Shareholders:

We are pleased to report on the results of the BEA U.S. Core Fixed Income
Portfolio (the "Portfolio") for the fiscal year ended August 31, 1995.

At August 31, 1995, the Portfolio's net asset value (NAV) was $15.42,
compared to an NAV of $14.77 at August 31, 1994. As a result, the Portfolio's
total return (assuming reinvestment of dividends of $.8415 per share) was
10.60%. In comparison, the Lehman Brothers Aggregate Index gained 11.33% during
the same period. Since the Portfolio's inception on April 1, 1994, its total
return (assuming reinvestment of dividends) was 10.79% compared to 12.51% for
the index.

MARKET COMMENTARY AND PORTFOLIO REVIEW

In an increasingly positive interest rate environment, and in the wake of
very strong performance during the first half of the year, the bond market in
the third quarter was notable mainly for its tranquillity. Quarterly returns for
all of the domestic investment grade sectors were clustered quite close
together, ranging from 1.76% for government bonds to 2.36% for corporates, with
mortgages falling approximately in the middle. High yield bonds were the best
domestic performers during the quarter, returning just over 3.00%; municipals
also performed relatively well. In each of these sectors, the return consisted
almost entirely of coupon; there was little opportunity for significant capital
gain, as spreads were virtually unchanged over the course of the quarter (with
the exception of a modest narrowing in the high-grade corporate sector).

This reflects a degree of settling in, as fixed income investors continue to
perceive a relatively benign investing environment. Recently released economic
statistics have served to reinforce this positive impression, showing continued
slow and steady growth with subdued inflation. The yield curve flattened during
the quarter, as the yield on the benchmark 30-year Treasury bond declined by
about 14 basis points to just under 6.50%, while the yield on the 2-year
Treasury note was unchanged at 5.80%.

Given the improving liquidity picture, we remain underweight in Treasuries
and other government securities, in favor of spread sectors where we can achieve
additional yield. While our exposure to traditional investment grade corporate
bonds remains quite light, we maintain our significant long-term position in
dollar-denominated floating rate issues of major European clearing banks. As
"perpetual" securities, these are bonds of long credit duration, which tend to
outperform during periods of expanding global liquidity. Also within this
sector, we currently hold a variety of BBB-rated issues, mostly concentrated in
cables -- a consolidating industry in which lower-rated companies are gradually
being acquired -- and airlines, where a de-leveraging trend is leading to
significant debt buybacks. At present, the portfolio has a neutral weighting in
the high-grade corporate sector, particularly when looked at in "duration
dollar" terms. Technical measures show this sector to be richly valued at
present; we anticipate that any downticks during the fourth quarter could
present buying opportunities.

At the beginning of the third quarter, we perceived good value in the
mortgage market, as the effects of a continued rally were priced into the
market. As it has turned out thus far, the portfolio benefited from the excess
yield in this sector, but the anticipated capital gains have yet to develop. We
continue to believe that this sector will outperform -- and we maintain a
significantly overweight mortgage position -- as it becomes clear that another
wave of refinancings is not lurking on the horizon. Market conditions are very
positive, because the supply of mortgage securities will decrease as winter
approaches, and demand is strong. The dominant investors in this sector are
money managers, mutual funds, Fannie Mae and Freddie Mac (the latter two
agencies have been steadily increasing the size of their portfolios over the
past year or so). In addition, banks have begun returning to the market as
buyers of mortgage-backed securities, as the demand for business loans has
slowed along with the economy. It should be noted, as well, that we continue to
hold core positions in shorter-maturity mortgages in place of Treasuries, in
order to earn approximately 50 basis points in excess yield.

13
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
PORTFOLIO MANAGER'S LETTER--(CONTINUED)
AUGUST 31, 1995

Our expectation of expanding liquidity and a continuation of the positive
interest rate environment also bodes well for the higher-yielding sectors of the
market, particularly domestic high yield bonds and emerging market debt. It is
interesting that, despite the volatility we have seen in 1995, the incremental
yield over U.S. Treasuries is approximately the same as it was in the beginning
of the year. Thus, although there is the impression of a meaningful rally having
already occurred in emerging market debt, what we have seen so far has really
been the recapture of Mexico-inspired losses that occurred in January and
February. The outperformance of the domestic high yield market can also be
primarily ascribed to that sector's incremental yield. In our view, then, these
sectors that were attractive early in the year remain attractive today -- we
believe that they have a good deal further to run.

In the emerging markets particularly, global liquidity is a crucial factor.
These markets, both in Latin American and other regions, largely depend on
foreign investors for their growth. When liquidity dries up and foreign
investors flee to safer shores, as we saw throughout 1994 and early 1995, the
emerging markets can suffer extremely difficult periods of short-term
volatility. When the money supply is looser, on the other hand, capital is
available to lend to issuers in the emerging markets. More to the point, when
rates in the developed markets trend downward, investors seeking yield
inevitably move increasingly toward higher-yielding markets. We witnessed an
extreme example of this in 1993 in the emerging debt markets. While we do not
expect spreads to compress to the levels seen at year end 1993, it appears that
late 1995 and 1996 will provide a positive environment for higher yielding fixed
income assets like emerging market debt.

Guidelines permitting, we maintain a modest position in this sector,
diversified across a broad range of dollar-denominated debt markets, both in
Latin America and elsewhere. (Positions in Poland and the Philippines were
particularly helpful during the third quarter). This strategy helps us to limit
the portfolio's country-specific risk, while allowing us access to the
attractive valuations now prevalent throughout the emerging debt markets.

SUMMARY

Our overall view on the market is essentially unchanged since our last
report. We continue to expect that liquidity in the market will be sufficient to
favor our broadly diversified portfolio structure. So long as interest rate
volatility continues to moderate, our overweight position in the mortgage sector
should continue to enhance returns. By underweighting traditional corporate
bonds and being extremely selective in our use of below-investment grade issues,
we are able to acquire a degree of "insurance" against the potential for slower
economic growth and the spread widening that could occur as a consequence.

ORGANIZATIONAL DEVELOPMENTS

We continue to enhance our fixed income management team. During the third
quarter, Robert W. Justich joined BEA as a Senior Vice President and portfolio
manager focusing on investment grade corporate bonds. Prior to joining BEA, Bob
worked in credit research and trading at Merrill Lynch, where he was responsible
for the development of Merrill's first proprietary corporate bond trading desk.
He has an MBA in Finance from Rutgers University. Bob contributes additional
depth of insight to BEA's understanding of both the domestic and global bond
markets, and we are very glad to have him aboard.

As developments occur in the fixed income markets or at BEA that we believe
would be of interest to you, we will be sure to keep you up to date. Meanwhile,
if you have questions, please feel free to call upon us at any time.

Sincerely yours,

BEA Fixed Income Management Team

Robert J. Moore, Executive Director
Gregg M. Diliberto, Managing Director
Richard J. Lindquist, CFA, Managing Director
William P. Sterling, Managing Director
Mark K. Silverstein, Senior Vice President
Robert W. Justich, Senior Vice President

14
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
PORTFOLIO MANAGER'S LETTER--(CONCLUDED)
AUGUST 31, 1995

BEA U.S. CORE FIXED INCOME PORTFOLIO

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

<TABLE>
<S> <C>
AVERAGE ANNUAL TOTAL RETURN
One Year 10.60%
From Inception 7.48%
</TABLE>

EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC

<TABLE>
<CAPTION>
BEA U.S. CORE FIXED INCOME
PORTFOLIO LEHMAN BROTHERS AGGREGATE INDEX
<S> <C> <C>
4/1/94 10,000 10,000
5/31/94 9,913 9,999
8/31/94 10,017 10,188
11/30/94 9,812 10,007
2/28/95 10,204 10,520
5/31/95 10,864 11,148
8/31/95 11,078 11,342
</TABLE>

Note: Past performance is not predictive of future performance.

15
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
PORTFOLIO MANAGER'S LETTER
AUGUST 31, 1995
BEA GLOBAL FIXED INCOME PORTFOLIO
October 16, 1995
Dear Shareholders:

We are pleased to report on the results of the BEA Global Fixed Income
Portfolio (the "Portfolio") for the fiscal year ended August 31, 1995.

At August 31, 1995, the Portfolio's net asset value (NAV) was $15.67,
compared to an NAV of $15.00 at August 31, 1994. As a result, the Portfolio's
total return (assuming reinvestment of dividends of $.8782 per share) was
10.72%. In comparison, the J.P. Morgan Global Government Bond Index (Unhedged)
gained 13.96% during the same period. Since the Portfolio's inception on June
28, 1994, its total return (assuming reinvestment of dividends) was 10.72%
compared to 14.97% for the index.

ECONOMIC OVERVIEW

During the third quarter, the most dominant factor in the behavior of the
global bond markets was the dramatic volatility of exchange rates. In the past
few months, the world's major central banks have made concerted efforts to boost
the value of the dollar against the yen and key European currencies. They have
done so out of concern that the weak dollar -- which reached historic low points
earlier this year -- was choking off growth in Europe and contributing to
serious financial instability in Japan. Indeed, fears of a run on Japanese banks
began to surface in late June and early July as persistent weakness in Japan's
stock market coincided with declining confidence in Japanese banks at home and
abroad. The bottom line: reflating the deflation-prone Japanese economy -- and
pumping up its financial markets -- have become key priorities for global
policymakers.

This outlook makes us particularly bullish on the prospects for bonds in the
"dollar-bloc" countries, such as the U.S., Canada and Australia. We believe that
U.S. interest rates are now well past the high point in their current cycle.
Unlike some observers, we anticipate that the Fed is likely to reduce rates
significantly by early in 1996, as an improving fiscal picture (which should
emerge from a contentious budget season this fall) and potential deflation
sparked by the strengthening dollar create mounting pressure to ease.

In addition, we believe that demographic trends also argue in favor of a
long-trend of declining interest rates in the U.S.: the aging of the baby boomer
generation is extremely good news for the capital markets. Most importantly,
perhaps, as the children of the post-war generation enter their middle years,
they move out of the consuming stage of their economic life cycle (buying
houses, cars, university educations, etc.) and into the savings stage, as
quality of life in retirement becomes a priority. We are already seeing the huge
asset flows

16
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
PORTFOLIO MANAGER'S LETTER--(CONTINUED)
AUGUST 31, 1995
into stocks, bonds and mutual funds that are the almost inevitable result of
this demographic shift. In addition, this generation's new emphasis on savings
has already begun putting significant pressure on policy makers to cut taxes and
government spending. The lower interest rates that should result bode well for
not only bonds but equities as well.

MARKET COMMENTARY AND PORTFOLIO REVIEW

In this increasingly positive context, and in the wake of very strong
performance during the first half of the year, the domestic bond market in the
third quarter was notable mainly for its tranquillity. In virtually all market
sectors, returns consisted almost entirely of coupon -- there was little
opportunity for significant capital gain, as spreads were virtually unchanged
over the course of the quarter (with the exception of a modest narrowing in the
high grade corporate sector). This reflects a degree of settling in, as fixed
income investors continue to perceive a relatively benign investing environment.
Recently released economic statistics have served to reinforce this positive
impression, showing continued slow and steady growth with subdued inflation.
Meanwhile, the U.S. yield curve flattened slightly during the quarter, as the
yield on the benchmark 30-year Treasury bond declined by about 14 basis points
to just under 6.5%, while the 2-year Treasury note was unchanged at 5.8%.

During the quarter, we began to make a strategic shift in the Fund's market
allocations. We have for a period of many months maintained an overweight
position in European bond markets, with a particular emphasis on the high-yield
countries. When the dollar rally was at its height, early in September, bonds in
the higher-yielding European markets rallied in tandem, subsiding somewhat in
the second half of the month. The consolidation of a dollar recovery, however,
makes the outlook for European markets significantly less positive. We have
therefore begun scaling back the Fund's European holdings, and building an
overweight position in the U.S. market. The rallying dollar increases the
likelihood of further easing by the Federal Reserve in the remainder of the year
and drastically reduces the threat of inflation: together, these factors bode
well for dollar bonds. Conversely, the decline of the Deutschemark and other
European currencies from their highs earlier this year suggests that inflation
could become an increasing worry in the European economies. The Deutschebank is
quite unlikely to reduce interest rates in the near future, and other European
central banks seldom ease without a lead from Germany.

The Fund remains strongly committed to dollar-bloc currencies, completely
hedging (as we have for some time) our exposure to Japan and partially hedging
our European exposure.

We continue to maintain a significant position in the emerging debt markets,
as an environment of declining U.S. rates and increasing global liquidity is the
most favorable environment for emerging market investments. We are already
seeing liquidity flowing into these markets, with consequently positive effects
on bond prices, and we believe there remains significant upside. It is
interesting that, despite the volatility we have seen in 1995, these sectors
have not yet experienced any significant narrowing of yield spreads. Thus,
although there is perhaps the impression of a meaningful rally having already
occurred in emerging market debt, what we have seen so far has really been the
recapture of Mexico-inspired losses that occurred in January and February.

In the emerging markets, global liquidity is a crucial factor. These
markets, both in Latin American and other regions, largely depend on foreign
investors for their growth. When liquidity dries up and foreign investors flee
to safer shores, as we saw throughout 1994 and early 1995, the emerging markets
can suffer extremely difficult periods of short-term volatility. When the money
supply is looser, on the other hand, capital is available to be lent to issuers
in the emerging markets. More to the point, when rates in the developed markets
trend downward, investors seeking yield inevitably move increasingly toward
higher-yielding markets. We witnessed an extreme example of this in 1993 in the
emerging debt markets. While we do not expect spreads to compress to the levels
seen at year end 1993, it appears that late 1995 and 1996 will provide a
positive environment for higher yielding fixed income assets like emerging
market debt.

The Fund's emerging markets position remains diversified across a broad
range of dollar-denominated debt markets, both in Latin America and elsewhere.
(Positions in Poland and the Philippines were particularly helpful to
performance during the third quarter). This strategy helps us to limit the
portfolio's country-specific risk, while allowing us access to the attractive
valuations now prevalent throughout the emerging debt markets.

17
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
PORTFOLIO MANAGER'S LETTER--(CONTINUED)
AUGUST 31, 1995

ORGANIZATIONAL DEVELOPMENTS

We continue to enhance our fixed income management team. During the third
quarter, Robert W. Justich joined BEA as a Senior Vice President and portfolio
manager focusing on the developed bond markets, and on investment grade
corporate bonds in the U.S. Prior to joining BEA, Bob worked in credit research
and trading at Merrill Lynch, where he was responsible for the development of
Merrill's first proprietary corporate bond trading desk. He has an MBA in
Finance from Rutgers University. Bob contributed additional depth of insight to
BEA's understanding of both the domestic and global bond markets, and we are
very glad to have him aboard.

Sincerely yours,
BEA Fixed Income Management Team

18
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
PORTFOLIO MANAGER'S LETTER--(CONCLUDED)
AUGUST 31, 1995

BEA GLOBAL FIXED INCOME PORTFOLIO

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

<TABLE>
<S> <C>
AVERAGE ANNUAL TOTAL RETURN
One Year 10.72%
From Inception 9.02%
</TABLE>

EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC

<TABLE>
<CAPTION>
BEA GLOBAL FIXED INCOME JP MORGAN GLOBAL GOVT. BOND INDEX
PORTFOLIO (UNHEDGED)
<S> <C> <C>
6/28/94 10,000 10,000
7/31/94 10,027 10,115
8/31/94 10,001 10,089
11/30/94 10,045 10,161
2/28/95 10,274 10,659
5/31/95 11,156 11,696
8/31/95 11,072 11,496
</TABLE>

Note: Past performance is not predictive of future performance.

19
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
PORTFOLIO MANAGER'S LETTER
AUGUST 31, 1995
BEA STRATEGIC FIXED INCOME PORTFOLIO
October 16, 1995
Dear Shareholders:

We are pleased to report on the results of the BEA Strategic Fixed Income
Portfolio (the "Portfolio") for the fiscal year ended August 31, 1995.

At August 31, 1995, the Portfolio's net asset value (NAV) was $15.72,
compared to an NAV of $15.94 at August 31, 1994. As a result, the Portfolio's
total return (assuming reinvestment of dividends of $1.34 per share) was 7.79%.
In comparison, the First Boston High Yield Index gained 13.21% during the same
period. Since the Portfolio's inception on March 31, 1993, its total return
(assuming reinvestment of dividends) was 24.46% compared to 26.80% for the
index.

In an increasingly positive interest rate environment, and in the wake of
very strong performance during the first half of the year, the domestic bond
market in the third quarter was notable mainly for its tranquillity, with all
major market sectors producing returns within a relatively tight band. High
yield bonds were the best domestic performers during the quarter, returning just
over 3.00%. In all sectors, returns consisted almost entirely of coupon -- there
was little opportunity for significant capital gain, as spreads were virtually
unchanged over the course of the quarter.

20
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
PORTFOLIO MANAGER'S LETTER--(CONTINUED)
AUGUST 31, 1995

In the emerging markets particularly, global liquidity is a crucial factor.
These markets, both in Latin American and other regions, largely depend on
foreign investors for their growth. When liquidity dries up and foreign
investors flee to safer shores, as we saw throughout 1994 and early 1995, the
emerging markets can suffer extremely difficult periods of short-term
volatility. When the money supply is looser, on the other hand, capital is
available to be lent to issuers in the emerging markets. More to the point, when
rates in the developed markets trend downward, investors seeking yield
inevitably move increasingly toward higher-yielding markets. We witnessed an
extreme example of this in 1993 in the emerging debt markets. While we do not
expect spreads to compress to the levels seen at year end 1993, it appears that
late 1995 and 1996 will provide a positive environment for higher yielding fixed
income assets like emerging market debt.

In the Fund, our exposure in this sector remains diversified across a broad
range of dollar-denominated debt markets, both in Latin America and elsewhere.
Positions in Poland and the Philippines were particularly helpful to returns
during the third quarter. This strategy helps us to limit the portfolio's
country-specific risk, while allowing us access to the attractive valuations now
prevalent throughout the emerging debt markets.

At BEA, we continue to enhance our fixed income management team. During the
third quarter, Robert W. Justich joined BEA as a Senior Vice President and
portfolio manager focusing on the developed bond markets, and on investment
grade corporate bonds in the U.S. Prior to joining BEA, Bob worked in credit
research and trading at Merrill Lynch, where he was responsible for the
development of Merrill's first proprietary corporate bond trading desk. He has
an MBA in Finance from Rutgers University. Bob contributes additional depth of
insight to BEA's understanding of both the domestic and global bond markets, and
we are very glad to have him aboard.

Sincerely yours,

BEA Fixed Income Management Team

21
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
PORTFOLIO MANAGER'S LETTER--(CONCLUDED)
AUGUST 31, 1995

BEA STRATEGIC FIXED INCOME PORTFOLIO

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

<TABLE>
<S> <C>
AVERAGE ANNUAL TOTAL RETURN
One Year 7.52%
From Inception 9.02%
</TABLE>

EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC

<TABLE>
<CAPTION>
STRATEGIC FIXED INCOME FIRST BOSTON HIGH YIELD
PORTFOLIO INDEX
<S> <C> <C>
3/1/93 10,000 10,000
5/31/93 10,607 10,419
8/31/93 11,294 10,809
11/30/93 11,872 11,209
2/28/94 12,128 11,570
5/31/94 11,484 11,143
8/31/94 11,539 11,201
11/30/94 11,449 11,123
2/28/95 10,961 11,638
5/31/95 12,010 12,370
8/31/95 12,406 12,680
</TABLE>

Note: Past performance is not predictive of future performance. Average Annual
Total Returns are net of 0.25% redemption fees.

22
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
PORTFOLIO MANAGER'S LETTER
AUGUST 31, 1995
BEA MUNICIPAL BOND FUND PORTFOLIO
October 16, 1995
Dear Shareholders:

We are pleased to report on the results of the BEA Municipal Bond Fund
Portfolio (the "Portfolio") for the fiscal year ended August 31, 1995.

At August 31, 1995, the Portfolio's net asset value (NAV) was $15.46,
compared to an NAV of $15.06 at August 31, 1994. As a result, the Portfolio's
total return (assuming reinvestment of dividends and distributions totalling of
$.8123 per share) was 8.42%. In comparison, the Lehman Brothers Municipal Bond
Index gained 8.87% during the same period. Since the Portfolio's inception on
June 20, 1994, its total return (assuming reinvestment of dividends and
distributions) was 8.86% compared to 9.66% for the index.

In an increasingly positive interest rate environment, and in the wake of
very strong performance during the first half of the year, the bond market in
the third quarter was notable mainly for its tranquillity. Quarterly returns
(based on Lehman Brothers bond indices) for all of the taxable sectors were
clustered quite close together, ranging from 1.76% for government bonds to 2.36%
for corporates, with mortgages falling approximately in the middle. High yield
bonds were the best domestic performers during the quarter, returning just over
3.00%. In virtually all sectors, the return consisted almost entirely of coupon
- -- there was little opportunity for significant capital gain, as spreads were
virtually unchanged over the course of the quarter (with the exception of a
modest narrowing in the high grade corporate sector).

Municipal bonds, in this context, modestly outperformed the investment grade
taxable sectors, exceeding the return of corporates by approximately 50 basis
points. This outperformance was a result of the longer duration of the municipal
bond market relative to that of the taxable sectors: in this rallying market,
longer duration securities tended to outperform.

In our view, the municipal market is still attractively valued relative to
taxable bonds of similar maturity, offering yields of about 90% of the yields on
similar taxable bonds. These cheap valuations reflect concerns in the market
about the potential for federal tax reform which could negatively impact the tax
benefits of municipal bond investments. We believe, however, that these concerns
have been more than appropriately priced in to the market: it is inconceivable
to us that any imminent tax reform could produce federal tax rates of under 10%.
As a tax reform package takes shape (or as the tax reform fever begins to
abate), therefore, we anticipate a rally in the muni market to more accurately
reflect the sector's tax-advantaged status. In the current environment, we have
continued to focus our security selection upon issues in high tax states like
New York.

Sincerely yours,

BEA Fixed Income Management Team

23
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
PORTFOLIO MANAGER'S LETTER--(CONCLUDED)
AUGUST 31, 1995

BEA MUNICIPAL BOND FUND PORTFOLIO

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

<TABLE>
<S> <C>
AVERAGE ANNUAL TOTAL RETURN
One Year 8.42%
From Inception 7.28%
</TABLE>

EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC

<TABLE>
<CAPTION>
BEA MUNICIPAL BOND FUND LEHMAN BROTHERS MUNICIPAL BOND
PORTFOLIO INDEX
<S> <C> <C>
6/20/94 10,000 10,000
7/31/94 10,040 10,038
8/31/94 10,040 10,073
11/30/94 9,647 9,571
2/28/95 10,350 10,354
5/31/95 10,846 10,820
8/31/95 10,886 10,965
</TABLE>

Note: Past performance is not predictive of future performance.

24
<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 BEA
International Equity, BEA Emerging Markets Equity, BEA U.S. Core Equity, BEA
U.S. Core Fixed Income, BEA Global Fixed Income, BEA Strategic Fixed Income and
BEA Municipal Bond 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 (or periods) in the two year
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
BEA International Equity, BEA Emerging Markets Equity, BEA U.S. Core Equity, BEA
U.S. Core Fixed Income, BEA Global Fixed Income, BEA Strategic Fixed Income and
BEA Municipal Bond Portfolios of The RBB Fund, Inc., as of August 31, 1995, and
the results of their operations for the year then ended, the changes in their
net assets for each of the years (or periods) in the two year 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

25
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC
BEA INTERNATIONAL EQUITY PORTFOLIO
STATEMENT OF NET ASSETS
AUGUST 31, 1995
<TABLE>
<CAPTION>
NUMBER
OF SHARES VALUE
----------- ------------
<S> <C> <C>
COMMON AND CONVERTIBLE STOCKS, WARRANTS AND RIGHTS -- 93.4%
ARGENTINA -- 1.8%
Bagley y Cia. Ltd.......................... 1,710 $ 3,507
Banco de Galicia y Buenos Aires S.A. de
C.V. Class B............................. 53,000 243,910
Banco Frances del Rio de la Plata.......... 253,916 1,740,108
Buenos Aires Embotelladora S.A. ADR Class
B........................................ 29,400 698,250
Compania Naviera Perez Companc S.A. Class
B........................................ 317,000 1,484,228
Quilmes Industrial S.A. ADR................ 119,040 2,339,136
Sodigas del Sur S.A.+...................... 55 742,112
Sodigas Pampeana S.A.+..................... 55 841,061
Telecom Argentina S.A. ADR................. 28,300 1,231,050
Telecom Argentina S.A.
Class B.................................. 299,520 1,324,474
Telefonica de Argentina ADR................ 81,470 2,016,429
YPF Sociedad Anonima S.A. ADS.............. 79,500 1,401,188
------------
14,065,453
------------
AUSTRALIA -- 0.5%
News Corp. Ltd............................. 45,050 258,618
News Corp. Ltd. ADR........................ 109,600 2,493,400
News Corp. Ltd. Pfd........................ 22,525 116,446
News Corp. Ltd. Pfd. ADR................... 54,800 1,109,700
------------
3,978,164
------------
BRAZIL -- 5.3%
Banco Bradesco S.A. PN..................... 635,847,475 6,129,054
Banco Itau S.A. PN......................... 8,589,000 2,705,411
Brasmotors S.A. PN......................... 10,120,000 2,601,296
Centrais Eletricas Brasileiras S.A. ON..... 9,923,151 2,749,317
Centrais Eletricas Brasileiras S.A. PN..... 7,173,060 1,979,817
Centrais Eletricas Brasileiras S.A. PN
ADR**.................................... 36,000 500,184
Cia. Cervejaria Brahma PN Warrants Expire
1996**................................... 369,916 62,351

<CAPTION>
NUMBER
OF SHARES VALUE
----------- ------------
<S> <C> <C>
BRAZIL -- (CONTINUED)
Cia. Energetica de Minas Gerais ADR........ 1,613 $ 36,147
Cia. Paulista de Forca e Luz ON............ 52,341,260 2,949,968
Cia. Tecidos Norte de Minas Gerais PN...... 7,709,000 2,598,767
Lojas Americanas PN........................ 203,461,786 5,251,318
Multibras Eletrodo S.A. PN................. 2,173,100 2,266,388
Petroleo Brasileiro S.A. PN................ 12,457,733 1,200,824
Telesp PN.................................. 31,057,000 5,103,916
Usinas Siderurgicas de Minas Gerais S.A.
PN....................................... 3,320,798,000 3,393,389
Usinas Siderurgicas de Minas Gerais S.A.
144A ADR................................. 165,500 1,724,675
------------
41,252,822
------------
CANADA -- 0.6%
Magna International, Inc.
Class A.................................. 100,100 4,479,475
------------
CHILE -- 2.7%
Chilectra S.A. 144A ADR.................... 61,750 2,889,715
Compania de Telefonos de Chile S.A. ADR.... 81,470 5,947,310
Embotelladora Andina S.A. ADR.............. 100,800 3,490,200
Empresa Nacional de Electricidad S.A.
ADR...................................... 258,500 5,137,688
Enersis S.A. ADR........................... 126,500 3,209,937
------------
20,674,850
------------
DENMARK -- 1.1%
Tele Danmark A/S ADS....................... 211,700 5,636,512
Unidanmark A/S 144A........................ 61,890 2,825,779
------------
8,462,291
------------
FINLAND -- 1.4%
Kymmene OY................................. 115,900 3,409,756
Nokia Corp. Class A........................ 82,796 5,740,281
Nokia Corp. ADR............................ 27,900 1,935,563
------------
11,085,600
------------
FRANCE -- 6.3%
Alcatel Alsthom Compagnie Generale
D'Electricite............................ 43,338 4,344,791
</TABLE>

See Accompanying Notes to Financial Statements.

26
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC
BEA INTERNATIONAL EQUITY PORTFOLIO
STATEMENT OF NET ASSETS (CONTINUED)
AUGUST 31, 1995
<TABLE>
<CAPTION>
NUMBER
OF SHARES VALUE
----------- ------------
FRANCE -- (CONTINUED)
<S> <C> <C>
Banque Nationale de Paris Ordinary......... 91,127 $ 3,737,377
Bertrand Faure............................. 134,662 5,176,024
Bouygues................................... 36,998 4,500,866
Carrefour Super Marche..................... 14,333 7,999,695
Groupe Danone.............................. 4 656
Legrand.................................... 11,364 1,735,942
Louis Vitton Moet Hennesey................. 23,230 4,179,117
Michelin Class B........................... 94,365 4,094,535
Schneider S.A.............................. 114,140 4,703,820
Technip S.A................................ 74,320 4,762,064
Valeo S.A.................................. 78,235 3,734,112
------------
48,968,999
------------
GERMANY -- 4.2%
Deutsche Bank AG........................... 80,490 3,729,690
Gehe AG.................................... 8,370 3,787,175
Hoechst AG................................. 24,095 5,784,442
Mannesmann AG.............................. 14,503 4,572,768
SAP AG..................................... 6,450 980,136
SAP AG 144A ADR............................ 71,800 3,518,200
Veba AG.................................... 171,800 6,567,618
Volkswagen AG.............................. 12,621 3,861,553
------------
32,801,582
------------
HONG KONG -- 4.8%
Cheung Kong Holdings Ltd................... 860,300 4,267,879
China Light and Power Company Ltd.......... 1,087,500 5,338,802
Guoco Bank Ltd............................. 869,000 4,131,413
HKR International Ltd...................... 3,120,800 2,459,386
HKR International Warrants Due 2000**...... 274,920 56,117
HSBC Holdings PLC.......................... 524,011 7,039,649
New World Development Company.............. 881,000 3,209,638
Sun Hung Kai Properties.................... 574,200 4,172,696
Swire Pacific Ltd. Class A................. 822,500 6,163,038
------------
36,838,618
------------
INDIA -- 0.9%
India Fund Class B......................... 28,233 54,970
<CAPTION>
NUMBER
OF SHARES VALUE
----------- ------------
<S> <C> <C>
INDIA -- (CONTINUED)
India Liberalisation Fund
Class A 144A**........................... 301,632 $ 2,491,480
Indian Opportunity Fund Ltd.**............. 349,156 4,277,160
Morgan Stanley India Investment Fund,
Inc...................................... 1,600 16,600
------------
6,840,210
------------
INDONESIA*** -- 0.3%
PT Kabelindo Murni......................... 1,212,000 561,854
PT Matahari Putra Prima.................... 1,155,750 2,092,086
------------
2,653,940
------------
ISRAEL -- 2.0%
ECI Telecom Ltd............................ 256,020 5,280,413
Geotek Communications, Inc.**.............. 80,500 628,906
Geotek Communications, Inc. Series M
Cumulative Convertible Pfd.+............. 600 5,817,813
Teva Pharmaceutical Industries Ltd. ADR.... 100,840 3,819,315
------------
15,546,447
------------
ITALY -- 0.9%
Industrie Natuzzi SPA ADR.................. 28,200 987,000
Telecom Italia Mobile**.................... 846,884 1,248,561
Telecom Italia Mobile di Risp.**........... 1,573,650 1,576,072
Telecom Italia Non-Convertible di Risp.
SPA...................................... 1,573,650 2,024,579
Telecom Italia SPA......................... 846,884 1,360,645
------------
7,196,857
------------
JAPAN -- 23.8%
Aida Engineering Ltd....................... 90,000 667,519
Amada Company Ltd.......................... 136,000 1,419,130
Aoki International Company Ltd............. 40,000 842,967
Aoyama Trading Company..................... 91,000 2,420,460
Asahi Bank Ltd............................. 296,000 3,088,696
Bank of Tokyo Ltd.......................... 241,000 3,722,864
Brother Industries Ltd..................... 239,000 1,256,737
Chubu Electric Power Company, Inc.......... 1,787 41,681
Citizen Watch Company Ltd.................. 201,000 1,536,031
</TABLE>

See Accompanying Notes to Financial Statements.

27
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC
BEA INTERNATIONAL EQUITY PORTFOLIO
STATEMENT OF NET ASSETS (CONTINUED)
AUGUST 31, 1995
<TABLE>
<CAPTION>
NUMBER
OF SHARES VALUE
----------- ------------
JAPAN -- (CONTINUED)
<S> <C> <C>
Dai Nippon Printing Company................ 274,000 $ 4,344,757
Dai-Ichi Kangyo Bank Ltd................... 364,000 6,293,197
Daicel Chemical Industries................. 195,000 1,065,269
Daiwa Securities Company Ltd............... 168,000 2,113,964
Fuji Bank Ltd.............................. 354,000 7,424,041
Fuji Photo Film Company Ltd................ 384,000 9,624,552
Gakken Company Ltd.**...................... 107,000 698,373
Haseko Corp................................ 173,000 796,419
Hitachi Ltd................................ 931,000 10,190,997
Honda Motor Company........................ 210,000 3,738,107
Industrial Bank of Japan Ltd............... 286,000 8,046,036
Kikkoman................................... 192,000 1,451,540
Kirin Brewery Company Ltd.................. 307,000 3,203,478
Komatsu Ltd................................ 546,000 4,507,642
Konica Corp................................ 255,000 1,820,870
Kumagai-Gumi Ltd........................... 475,000 2,269,309
Kureha Chemical Industry Company........... 238,000 1,049,391
Marudai Food Company Ltd................... 108,000 772,297
Marui Company Ltd.......................... 153,000 2,692,174
Maruichi Steel Tube........................ 58,000 1,062,097
Matsushita Electric Industrial Company..... 620,000 9,704,348
Mitsubishi Estate Company Ltd.............. 235,000 2,764,706
Mitsubishi Gas and Chemical Company........ 169,000 708,849
Mitsubishi Trust and Banking Corp.......... 173,000 2,884,808
Nichicon................................... 144,000 2,062,404
Nippon Meat Packers........................ 147,000 2,030,179
Nippon Oil Company......................... 642,000 3,631,980
Nippon Sheet Glass Company Ltd............. 4,000 18,169
Nisshinbo Industries, Inc.................. 239,000 2,149,166
Nitto Denko Corp........................... 252,000 3,995,908
Nomura Securities Company Ltd.............. 246,000 4,831,918
NSK Ltd.................................... 558,000 3,761,862
Olympus Optical Company.................... 246,000 2,234,762
Sakura Bank Ltd............................ 436,000 4,638,772
Seino Transportation Company Ltd........... 103,000 1,717,545
<CAPTION>
NUMBER
OF SHARES VALUE
----------- ------------
<S> <C> <C>
JAPAN -- (CONTINUED)
Sekisui House Ltd.......................... 429,000 $ 5,398,159
Shimachu................................... 29,000 756,522
Shiseido Company Ltd....................... 506,000 5,280,000
Sumitomo Bank Ltd.......................... 373,000 6,906,701
Taiyo Yuden Company Ltd.................... 85,000 895,652
Takeda Chemical Industries Ltd............. 648,000 8,750,486
Tohoku Electric Power Company.............. 124,700 2,997,903
Tokai Bank Ltd............................. 248,000 2,765,422
Tokio Marine and Fire Insurance Company.... 205,000 2,432,737
Tokyo Style Corp. Ltd...................... 93,000 1,322,455
Toyota Motor Corp.......................... 384,000 7,621,074
Uny Company Ltd............................ 111,000 1,771,458
Yokogawa Electric Corp..................... 168,000 1,581,176
------------
183,775,716
------------
MALAYSIA -- 2.6%
Genting Berhad............................. 454,000 4,022,209
Malayan Banking Berhad..................... 656,000 5,391,060
Renong Berhad Holding Company.............. 2,164,000 4,181,391
Technology Resources Industries Berhad**... 663,300 1,701,792
Telekom Malaysia Berhad.................... 87,000 610,343
United Engineers Malaysia Ltd.............. 594,000 3,976,669
------------
19,883,464
------------
MEXICO -- 4.0%
Cementos Apasco S.A. de C.V................ 274,829 1,207,316
Cifra S.A. de C.V.
Class A.................................. 13,702 17,467
Cifra S.A. de C.V. Class B................. 630,460 803,685
Cifra S.A. de C.V. Class C................. 528,289 632,934
Coca-Cola Femsa S.A. de C.V. ADR........... 68,800 1,591,000
Corporacion Industrial San Luis S.A. de
C.V. CPO................................. 117,199 2,782,072
Grupo Carso S.A. de C.V. Class A1**........ 206,280 1,326,321
Grupo Elektra S.A. de C.V. CPO............. 300,000 1,432,907
</TABLE>

See Accompanying Notes to Financial Statements.

28
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC
BEA INTERNATIONAL EQUITY PORTFOLIO
STATEMENT OF NET ASSETS (CONTINUED)
AUGUST 31, 1995
<TABLE>
<CAPTION>
NUMBER
OF SHARES VALUE
----------- ------------
MEXICO -- (CONTINUED)
<S> <C> <C>
Grupo Embotelladora de Mexico S.A. de C.V.
GDS**.................................... 50 $ 613
Grupo Industrial Alfa S.A. de C.V. Class
A........................................ 352,000 4,863,898
Grupo Mexico S.A. Class B**................ 666,400 3,433,131
Grupo Modelo S.A. de C.V.
Class C.................................. 376,000 1,489,585
Grupo Sidek S.A. de C.V.
Class L**................................ 12,223 13,160
Grupo Televisa S.A. de C.V. CPO
Certificates............................. 53,400 623,569
Grupo Televisa S.A. de C.V. GDS............ 57,860 1,374,175
Kimberly Clark de Mexico
S.A. de C.V. Class A..................... 129,900 1,807,395
Panamerican Beverages, Inc.
Class A.................................. 74,800 2,225,300
Telefonos de Mexico S.A. de C.V. Class A... 221,504 360,917
Telefonos de Mexico S.A. de C.V. Class L... 683,071 1,117,356
Telefonos de Mexico S.A. de C.V. Sponsored
ADR...................................... 25,600 838,400
Telefonos de Mexico S.A. de C.V.
Unsponsored ADR.......................... 4,900 7,963
Tubos de Acero de Mexico S.A.**............ 213,000 1,463,099
Tubos de Acero de Mexico S.A. ADR**........ 157,100 981,875
------------
30,394,138
------------
NETHERLANDS -- 1.8%
Koninklijke Pit Naderland NV 144A.......... 160,960 5,547,983
Philips Electronics NV..................... 180,825 8,112,392
Philips Electronics NV ADR................. 11,500 517,500
------------
14,177,875
------------
<CAPTION>
NUMBER
OF SHARES VALUE
----------- ------------
<S> <C> <C>
NORWAY -- 0.5%
Norsk Hydro A/S............................ 87,200 $ 3,689,100
------------
PAKISTAN -- 0.0%
Nishat Mills............................... 3,450 3,749
Nishat Mills Rights**...................... 517 240
Phillips Electrical Pakistan............... 1,045 5,144
------------
9,133
------------
PHILIPPINES -- 0.5%
Philippine Long Distance Telephone Co.
ADR...................................... 61,950 3,895,112
------------
PUERTO RICO -- 0.6%
Cellular Communications of Puerto Rico Inc.
ADR**.................................... 152,900 4,701,675
------------
RUSSIA -- 0.4%
Petersburg Long Distance, Inc.**........... 228,800 1,630,200
Templeton Russia Fund Inc.**............... 114,900 1,654,560
------------
3,284,760
------------
SINGAPORE -- 2.8%
DBS Land Ltd............................... 393,000 1,128,786
Overseas-Chinese Banking Corp. Ltd.***..... 473,000 5,327,702
Sembawang Corp. Ltd........................ 460,000 2,639,212
Singapore Press Holdings***................ 394,800 5,447,434
United Overseas Bank Ltd.***............... 555,680 4,811,590
Wing Tai Holdings.......................... 1,325,000 2,359,908
------------
21,714,632
------------
SOUTH KOREA -- 1.1%
Korea Fund, Inc............................ 429,825 8,703,956
------------
SPAIN -- 1.1%
Banco Popular.............................. 23,400 3,602,585
Repsol S.A................................. 4,400 138,114
Repsol S.A. ADR............................ 143,100 4,525,538
------------
8,266,237
------------
</TABLE>

See Accompanying Notes to Financial Statements.

29
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC
BEA INTERNATIONAL EQUITY PORTFOLIO
STATEMENT OF NET ASSETS (CONTINUED)
AUGUST 31, 1995
<TABLE>
<CAPTION>
NUMBER
OF SHARES VALUE
----------- ------------
SWEDEN -- 2.9%
<S> <C> <C>
Astra AB Fria Class A...................... 175,520 $ 5,821,160
Astra AB Fria Class B...................... 13,000 422,240
Autoliv AB................................. 82,200 4,967,959
Ericsson Telephone Company ADR Class B..... 281,600 6,019,200
Hennes & Mauritz Fria Class B.............. 80,304 4,765,326
------------
21,995,885
------------
SWITZERLAND -- 1.7%
BBC Brown Boveri AG........................ 5,606 5,915,014
Roche Holding AG........................... 1,030 6,900,299
------------
12,815,313
------------
THAILAND*** -- 3.2%
Advanced Information Services Public
Company Ltd.............................. 204,800 3,165,911
Finance One Public Company Ltd............. 398,000 2,709,652
Krung Thai Bank Public Company Ltd......... 1,541,270 5,987,312
Phatra Thanakit Public Company Ltd......... 375,600 2,978,326
Siam Cement Company Ltd.................... 63,900 4,370,893
Telecomasia Corp. Public Company Ltd.**.... 407,000 1,312,115
Thai Farmers Bank Public Company Ltd....... 460,100 4,495,971
------------
25,020,180
------------
UNITED KINGDOM -- 13.6%
Airtours PLC............................... 796,120 4,545,170
British Airport Authority PLC.............. 847,101 6,768,093
British Sky Broadcasting PLC**............. 226,000 1,192,095
British Sky Broadcasting Group PLC ADR**... 322,200 10,229,850
De la Rue PLC.............................. 449,004 6,074,220
Flextech PLC**............................. 612,610 4,162,766
General Cable PLC**........................ 396,300 5,647,275
<CAPTION>
NUMBER
OF SHARES VALUE
----------- ------------
<S> <C> <C>
UNITED KINGDOM -- (CONTINUED)
House of Fraser PLC........................ 1,787,300 $ 3,798,759
International Cabletel, Inc................ 239,866 6,476,382
Rentokil Group PLC......................... 948,610 4,370,871
Reuters Holdings PLC Class B............... 442,020 3,840,199
Reuters Holdings PLC ADR
Class B.................................. 144,300 7,557,713
Standard Chartered Bank PLC................ 2,089,769 14,005,730
Vodafone Group PLC......................... 1,530,033 6,290,288
Vodafone Group PLC ADR..................... 129,000 5,401,875
Wassall PLC................................ 1,274,192 5,455,917
WPP Group PLC.............................. 3,299,251 8,394,271
WPP Group PLC ADR.......................... 89,800 471,450
------------
104,682,924
------------
TOTAL COMMON AND CONVERTIBLE STOCKS,
WARRANTS AND RIGHTS (Cost
$683,469,877)........................... 721,855,408
------------
<CAPTION>
PAR
(000)
-----------
<S> <C> <C>
FOREIGN BONDS -- 0.7%
HONG KONG -- 0.0%
HKR International Ltd. 6.00% 06/26/00...... HKD 3,608 375,260
------------
SOUTH AFRICA -- 0.7%
Liberty Life Africa Convertible 144A
6.50% 09/30/04........................... $ 1,700 1,938,000
Sappi BVI Finance Ltd.
Convertible 144A
7.50% 08/01/02........................... 3,680 3,781,200
------------
5,719,200
------------
TOTAL FOREIGN BONDS
(Cost $5,736,881)..................... 6,094,460
------------
</TABLE>

See Accompanying Notes to Financial Statements.

30
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC
BEA INTERNATIONAL EQUITY PORTFOLIO
STATEMENT OF NET ASSETS (CONCLUDED)
AUGUST 31, 1995
<TABLE>
<CAPTION>
PAR
(000) VALUE
----------- ------------
U.S. TREASURY OBLIGATIONS -- 3.7%
<S> <C> <C>
U.S. Treasury Bills
5.40% 09/21/95........................... $ 3,000 $ 2,990,886
5.415% 09/21/95.......................... 5,000 4,984,958
5.385% 11/09/95.......................... 15,000 14,845,416
5.415% 11/09/95.......................... 6,000 5,938,166
------------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $28,758,866)...................... 28,759,426
------------
SHORT-TERM INVESTMENT -- 2.2%
BBH Grand Cayman U.S. Dollar
Time Deposit
4.875% 09/01/95.......................... 16,646 16,646,000
------------
TOTAL SHORT-TERM INVESTMENT
(Cost $16,646,000)................................... 16,646,000
------------
TOTAL INVESTMENTS AT VALUE -- 100.0%
(Cost $734,611,624)................................... $773,355,294
LIABILITIES IN EXCESS
OF OTHER ASSETS -- 0.0%............................... (100,664)
------------
NET ASSETS (APPLICABLE to
42,398,465 BEA shares) -- 100.0%...................... $773,254,630
------------
------------

NET ASSET VALUE AND OFFERING
PRICE PER SHARE
($773,254,630 DIVIDED BY 42,398,465)................. $18.24
------------
------------
REDEMPTION PRICE PER SHARE
($18.24 x .9900)...................................... $18.06
------------
------------
</TABLE>

* Cost for Federal income tax purposes at August 31, 1995 is
$735,164,987. The gross appreciation (depreciation) on a tax basis is as
follows:

<TABLE>
<S> <C>
Gross Appreciation.......... $ 82,828,785
Gross Depreciation.......... (44,638,478)
--------------
Net Appreciation............ $ 38,190,307
--------------
--------------
</TABLE>

** Non-income producing securities.
*** Denotes foreign shares.
+ Not readily marketable securities.

INVESTMENT ABBREVIATIONS

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

CURRENCY ABBREVIATIONS

<TABLE>
<S> <C>
HKD........................... Hong Kong Dollars
</TABLE>

See Accompanying Notes to Financial Statements.

31
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
INTERNATIONAL EQUITY PORTFOLIO

STATEMENT OF OPERATIONS
FOR THE YEAR ENDED
AUGUST 31, 1995

<TABLE>
<S> <C>
INVESTMENT INCOME
Dividends.................................. $ 12,122,179
Interest................................... 1,221,035
Foreign taxes withheld..................... (1,379,398)
--------------
TOTAL INVESTMENT INCOME.................. 11,963,816
--------------
EXPENSES
Investment advisory fees................... 6,012,837
Administration service fees................ 1,127,321
Custodian fees............................. 1,116,208
Administration fees........................ 939,506
Audit fees................................. 71,767
Registration fees.......................... 65,500
Legal fees................................. 48,460
Insurance expense.......................... 22,167
Transfer agent fees........................ 20,778
Printing fees.............................. 15,263
Miscellaneous fees......................... 12,868
Organization expense....................... 10,636
Directors fees............................. 6,781
--------------
9,470,092
Less fees waived........................... (112,954)
--------------
TOTAL EXPENSES........................... 9,357,138
--------------
NET INVESTMENT INCOME........................ 2,606,678
--------------
REALIZED AND UNREALIZED LOSS ON INVESTMENTS
AND FOREIGN CURRENCY TRANSACTIONS:
Net realized loss from:
Security transactions.................... (47,542,087)
Foreign exchange transactions............ (1,416,894)
--------------
(48,958,981)
--------------
Net unrealized appreciation (depreciation)
from:
Investments.............................. (18,843,388)
Translation of assets and liabilities in
foreign currencies...................... 42,664
--------------
(18,800,724)
--------------
NET LOSS ON INVESTMENTS AND FOREIGN CURRENCY
TRANSACTIONS................................ (67,759,705)
--------------
NET DECREASE IN NET ASSETS RESULTING FROM
OPERATIONS.................................. $ (65,153,027)
--------------
--------------
</TABLE>

STATEMENTS OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
FOR THE FOR THE
YEAR ENDED YEAR ENDED
AUGUST 31, AUGUST 31,
1995 1994
------------- -------------
<S> <C> <C>
Increase (decrease) in net assets:
Operations:
Net investment income...................... $ 2,606,678 $ 1,601,997
Net gain (loss) on investments and foreign
currency.................................. (67,759,705) 60,027,767
------------- -------------
Net increase (decrease) in net assets
resulting from operations............... (65,153,027) 61,629,764
------------- -------------
Distributions to shareholders:
Dividends to shareholders from net investment
income:
BEA shares ($.00 and $.05, respectively,
per share)................................ -- (806,718)
Distributions to shareholders from net
realized capital gains:
BEA shares ($.80 and $.60, respectively,
per share)................................ (32,112,690) (9,939,092)
------------- -------------
Total distributions to shareholders........ (32,112,690) (10,745,810)
------------- -------------
Net capital share transactions............... 103,330,556 447,902,313
------------- -------------
Total increase in net assets................. 6,064,839 498,786,267
Net Assets:
Beginning of year.......................... 767,189,791 268,403,524
------------- -------------
End of year................................ $773,254,630 $767,189,791
------------- -------------
------------- -------------
</TABLE>

See Accompanying Notes to Financial Statements.

32
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC
BEA EMERGING MARKETS EQUITY PORTFOLIO
STATEMENT OF NET ASSETS
August 31, 1995

<TABLE>
<CAPTION>
NUMBER
OF SHARES VALUE
----------- ------------
<S> <C> <C>
COMMON STOCK, WARRANTS AND RIGHTS -- 92.0%
ARGENTINA -- 4.3%
Astra Cia. Argentina de Petro S.A.......... 109,080 $ 189,339
Bagley y Cia. Ltd.......................... 61,335 125,793
Banco de Galicia y Buenos Aires S.A. de
C.V. Class B............................. 43,427 199,854
Banco Frances del Rio de la Plata.......... 63,290 433,732
Buenos Aires Embotelladora S.A. ADR Class
B........................................ 22,100 524,875
Comercial del Plata........................ 34,400 80,532
Compania Naviera Perez Companc S.A. Class
B........................................ 127,009 594,669
Inversiones y Representaciones S.A. Class
B**...................................... 256,824 560,128
Quilmes Industrial S.A. ADR................ 19,315 379,540
Telecom Argentina S.A. ADR................. 24,400 1,061,400
Telecom Argentina S.A. Class B............. 129,600 573,090
Telefonica de Argentina ADR................ 17,032 421,542
YPF Sociedad Anonima S.A. ADS.............. 23,100 407,138
------------
5,551,632
------------
BRAZIL -- 16.6%
Banco Bradesco S.A. PN..................... 83,914,366 808,866
Banco do Brasil PN......................... 22,657,000 362,321
Banco Itau S.A. PN......................... 3,175,000 1,000,079
Centrais Eletricas Brasileiras S.A. ON..... 4,684,781 1,297,969
Centrais Eletricas Brasileiras S.A. PN..... 2,075,729 572,917
Centrais Eletricas de Santa Catarin PN
Class B.................................. 772,000 618,088
Cia. Cervejaria Brahma PN.................. 1,442,789 539,573
Cia. Cervejaria Brahma PN Warrants Due
1996**................................... 182,777 30,808
Cia. Energetica de Minas Gerais
ADR...................................... 21,338 478,185
<CAPTION>
NUMBER
OF SHARES VALUE
----------- ------------
<S> <C> <C>
BRAZIL -- (CONTINUED)
Cia. Energetica de Minas Gerais
PN....................................... 4,249,989 $ 96,260
Cia. Energetica de Minas Gerais
144A ADS................................. 20,783 465,747
Cia. Paulista de Forca e Luz ON............ 13,382,220 754,226
Cia. Siderurgica Nacional S.A. ADR......... 9,700 220,025
Cia. Siderurgica Nacional S.A. ON.......... 4,692,700 104,804
Cia. Tecidos Norte de Minas Gerais PN...... 2,562,000 863,671
Cia. Vale do Rio Doce ADR.................. 1,200 46,114
Cia. Vale do Rio Doce PN................... 3,555,500 546,856
Investimentos Itau PN...................... 1,483,700 973,764
Lojas Americanas PN........................ 42,436,000 1,095,267
Makro Atacadista ON**...................... 381,000 429,465
Makro Atacadista 144A GDR**................ 27,300 300,300
Marco Polo PN Class B**.................... 964,000 171,118
Moinho Santista Industries Gerais PN**..... 145,200 117,781
Multibras Eletrodo S.A. PN................. 581,000 605,942
Petroleo Brasileiro S.A. PN................ 10,189,666 982,201
Petroquimica do Nordest S.A. PN Class A.... 816,000 537,266
Refrigeracao Parana S.A. PN................ 559,223,000 1,360,869
Santista Alimentos S.A.**.................. 666,500 477,451
Souza Cruz ON.............................. 110,600 821,417
Tec Toy Industria de Brinquedos PN.**...... 203,430,000 81,436
Telecomunicacoes Brasileiras S.A. ADR...... 40,800 1,713,642
Telecomunicacoes Brasileiras S.A. PN....... 35,332,405 1,533,521
Telesp PN.................................. 1,455,928 239,268
Usinas Siderurgica de Minas Gerais S.A.
PN....................................... 880,903,000 900,159
Usinas Siderurgica de Minas Gerais S.A.
144A ADR................................. 16,900 176,115
------------
21,323,491
------------
</TABLE>

See Accompanying Notes to Financial Statements.

33
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC
BEA EMERGING MARKETS EQUITY PORTFOLIO
STATEMENT OF NET ASSETS (CONTINUED)
AUGUST 31, 1995
<TABLE>
<CAPTION>
NUMBER
OF SHARES VALUE
----------- ------------
<S> <C> <C>
CHILE -- 6.9%
Chilectra S.A. 144A ADR.................... 27,100 $ 1,268,199
Compania de Telefonos de Chile S.A. ADR.... 29,895 2,182,335
Embotelladora Andina S.A. ADR.............. 32,400 1,121,850
Empresa Nacional de Electricidad S.A.
ADR...................................... 107,200 2,130,600
Enersis S.A. ADR........................... 39,800 1,009,925
Sociedad Quimica y Minera Chile ADR........ 23,650 1,099,725
------------
8,812,634
------------
COLOMBIA -- 0.4%
Cementos Diamante S.A. 144A ADS............ 29,200 525,600
------------
ECUADOR -- 0.5%
Cemento Nacional Ecuador GDR............... 3,296 692,160
------------
HONG KONG -- 4.3%
Cheung Kong Holdings Ltd................... 127,000 630,037
China Light and Power Company Ltd.......... 138,000 677,476
Consolidated Electric Power Asia........... 283,600 584,383
Consolidated Electric Power Asia 144A...... 18,650 382,325
Guoco Bank Ltd............................. 126,000 599,031
HKR International Ltd...................... 499,400 393,559
HKR International Warrants Due 2000**...... 107,880 22,021
HSBC Holdings PLC.......................... 66,831 897,930
Sun Hung Kai Properties.................... 90,000 654,027
Swire Pacific Ltd. Class A................. 89,500 670,628
------------
5,511,417
------------
HUNGARY -- 0.4%
Fotex A.S.................................. 365,600 460,453
------------
INDIA -- 3.4%
Arvind Mills Ltd. 144A GDS**............... 16,000 65,920
Hindalco 144A GDR.......................... 13,400 482,400

<CAPTION>
NUMBER
OF SHARES VALUE
----------- ------------
<S> <C> <C>
INDIA -- (CONTINUED)
India Fund Class B......................... 469,738 $ 914,583
India Liberalisation Fund Class A 144A**... 134,163 1,108,186
Indian Opportunity Fund Ltd.**............. 79,020 967,995
Morgan Stanley India Investment Fund,
Inc...................................... 43,500 451,313
Reliance Industries 144A ADR............... 23,800 452,200
------------
4,442,597
------------
INDONESIA*** -- 2.9%
Bank International Indonesia............... 262,500 944,537
Duta Anggada Realty........................ 410 294
PT Hanjaya Mandala Sampoerna............... 92,500 878,035
PT Kabelindo Murni......................... 418,500 194,007
PT Matahari Putra Prima.................... 488,750 884,713
PT Pakuwon Jati............................ 1,021,000 788,852
------------
3,690,438
------------
ISRAEL -- 2.4%
ECI Telecom Ltd............................ 42,140 869,138
Elscint Ltd. ADR........................... 61,050 167,888
Geotek Communications, Inc.**.............. 141,300 1,103,906
Tecnomatix Technologies**.................. 29,000 304,500
Teva Pharmaceutical Industries
Ltd. ADR................................. 15,430 584,411
------------
3,029,843
------------
MALAYSIA -- 13.0%
Berjaya Group Berhad....................... 2,067,500 1,607,917
Genting Berhad............................. 342,000 3,029,946
Magnum Corp................................ 376,500 762,207
Malayan Banking Berhad..................... 599,500 4,926,739
Malaysia International Shipping***......... 349,333 1,001,295
Renong Berhad Holding Company.............. 830,000 1,603,768
Technology Resources Industries Berhad
**....................................... 488,000 1,252,034
Telekom Malaysia Berhad.................... 39,000 273,602
Time Engineering........................... 391,000 1,348,006
</TABLE>

See Accompanying Notes to Financial Statements.

34
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC
BEA EMERGING MARKETS EQUITY PORTFOLIO
STATEMENT OF NET ASSETS (CONTINUED)
AUGUST 31, 1995
<TABLE>
<CAPTION>
NUMBER
OF SHARES VALUE
----------- ------------
<S> <C> <C>
MALAYSIA -- (CONTINUED)
United Engineers Malaysia Ltd.............. 129,000 $ 863,620
------------
16,669,134
------------
MEXICO -- 11.6%
Cementos Apasco S.A. de C.V................ 150,240 660,000
Cementos Mexicanos S.A. Class B**.......... 164,265 757,036
Cifra S.A. de C.V. Class B................. 54,039 68,887
Cifra S.A. de C.V. Class C................. 614,029 735,658
Coca-Cola Femsa S.A. de C.V.
ADR...................................... 22,330 516,381
Corporacion Geo S.A. de C.V. 144A ADR Class
B**...................................... 38,100 582,435
Corporacion Industrial San Luis
S.A. de C.V. CPO......................... 62,632 1,486,760
Fomento Economico Mexicano S.A. de C.V.
Class B.................................. 107,650 295,092
Grupo Carso S.A. de C.V. Class A1**........ 151,990 977,252
Grupo Elektra S.A. de C.V. CPO............. 214,000 1,022,141
Grupo Embotelladora de Mexico S.A. de C.V.
GDS**.................................... 50 613
Grupo Financiero Banamex Accival S.A. de
C.V. Class B............................. 32,000 65,329
Grupo Financiero Banamex Accival S.A. de
C.V. Class L............................. 335,000 670,000
Grupo Industrial Alfa S.A. de C.V. Class
A........................................ 81,000 1,119,249
Grupo Industrial Bimbo S.A. de C.V. Class
A........................................ 55,199 233,229
Grupo Mexico S.A. Class B**................ 169,700 874,253
Grupo Modelo S.A. de C.V. Class C.......... 288,000 1,140,958
Grupo Situr S.A. de C.V. Class B**......... 421,932 235,904
Grupo Televisa S.A. de C.V. CPO
Certificates............................. 37,300 435,564

<CAPTION>
NUMBER
OF SHARES VALUE
----------- ------------
<S> <C> <C>
MEXICO -- (CONTINUED)
Grupo Televisa S.A. de C.V. GDS............ 11,350 $ 269,562
Kimberly Clark de Mexico S.A. de C.V. Class
A........................................ 39,270 546,392
Panamerican Beverages, Inc. Class A........ 30,200 898,450
Telefonos de Mexico S.A. de C.V. Class A... 103,213 168,175
Telefonos de Mexico S.A. de C.V. Class L... 215,570 352,626
Telefonos de Mexico S.A. de C.V. Sponsored
ADR...................................... 5,730 187,657
Tubos de Acero de Mexico S.A.**............ 51,000 350,319
Tubos de Acero de Mexico S.A. ADR**........ 37,900 236,875
------------
14,886,797
------------
PHILIPPINES -- 1.4%
Ayala Corp. B.............................. 580,600 695,733
Philippine Long Distance Telephone Co.
ADR...................................... 18,500 1,163,191
------------
1,858,924
------------
PORTUGAL -- 1.3%
Modelo Sociedade Gestora de Participacoes
Sociais, S.A............................. 12,335 422,903
Portugal Telecom S.A. ADR**................ 17,300 313,562
Sonae Industria e Investimentos............ 42,050 956,058
------------
1,692,523
------------
PUERTO RICO -- 0.6%
Cellular Communications of Puerto Rico Inc.
ADR.**................................... 25,800 793,350
------------
RUSSIA -- 1.0%
Petersburg Long Distance,
Inc.**................................... 94,100 670,462
Templeton Russia Fund Inc.**............... 41,000 590,400
------------
1,260,862
------------
</TABLE>

See Accompanying Notes to Financial Statements.

35
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC
BEA EMERGING MARKETS EQUITY PORTFOLIO
STATEMENT OF NET ASSETS (CONTINUED)
AUGUST 31, 1995
<TABLE>
<CAPTION>
NUMBER
OF SHARES VALUE
----------- ------------
<S> <C> <C>
SINGAPORE -- 1.7%
Asia Pulp & Paper Company Ltd. ADR**....... 58,700 $ 770,437
Overseas-Chinese Banking Corp. Ltd.***..... 47,000 529,391
Sembawang Corp. Ltd........................ 64,000 367,195
United Overseas Bank Ltd.***............... 58,280 504,642
------------
2,171,665
------------
SOUTH AFRICA -- 5.7%
Anglo American Industrial Corporation
Ltd...................................... 17,100 771,851
De Beers Centenary Linked UT............... 14,900 382,130
De Beers Consolidated Mines ADR............ 59,700 1,533,544
Gencor Ltd................................. 264,230 993,889
Murray & Roberts Holdings.................. 117,800 749,241
Nedcor Ltd................................. 12,900 164,095
Nedcor Ltd. GDR Units**.................... 6,600 341,550
Polifin Ltd................................ 5,925 12,075
SA Iron & Steel Industrial Corporation
Ltd...................................... 1,080,900 1,241,904
Sasol Ltd.................................. 39,500 337,676
South African Breweries Ltd................ 26,500 804,678
------------
7,332,633
------------
SOUTH KOREA -- 3.2%
Korea Fund, Inc............................ 200,175 4,053,544
------------
THAILAND -- 10.4%
Advanced Information Services Public
Company Ltd. (Local)..................... 4,300 66,472

<CAPTION>
NUMBER
OF SHARES VALUE
----------- ------------
<S> <C> <C>
THAILAND -- (CONTINUED)
Advanced Information Services Public
Company Ltd.***.......................... 49,400 $ 763,652
Bangkok Bank Public Company Ltd.***........ 87,400 980,056
Krung Thai Bank Public Company Ltd.
(Local).................................. 51,000 197,097
Krung Thai Bank Public Company Ltd.***..... 561,980 2,183,102
Land and House Public Company Ltd.***...... 29,000 504,045
MDX Company Ltd.***........................ 156,300 344,273
Phatra Thanakit Public Company Ltd.***..... 313,100 2,482,731
Regional Container Lines***................ 5,420 80,312
Sahaviriya Steel
Industry**/***........................... 489,600 980,376
Siam Cement Company Ltd.***................ 19,800 1,354,361
Telecomasia Corp. Public Company
Ltd.**/***............................... 303,600 978,767
Thai Farmers Bank Public Company Ltd.***... 246,100 2,404,822
------------
13,320,066
------------
TOTAL COMMON STOCK,
WARRANTS AND RIGHTS
(Cost $121,218,225).................................. 118,079,763
------------
</TABLE>

See Accompanying Notes to Financial Statements.

36
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC
BEA EMERGING MARKETS EQUITY PORTFOLIO
STATEMENT OF NET ASSETS (CONCLUDED)
AUGUST 31, 1995

<TABLE>
<CAPTION>
PAR
(000) VALUE
----------- ------------
FOREIGN BONDS -- 3.2%
<S> <C> <C>
COLOMBIA -- 0.6%
Banco de Colombia Convertible 144A
5.20% 02/01/99........................... $ 1,100 $ 764,500
------------
HONG KONG -- 0.1%
HKR International Ltd.
6.00% 06/26/00........................... HKD 1,416 147,254
------------
SOUTH AFRICA -- 1.9%
Liberty Life Africa Convertible
6.50% 09/30/04........................... $ 200 228,000
Liberty Life Africa Convertible
144A 6.50% 09/30/04...................... 850 969,000
Sappi BVI Finance Ltd. Convertible 144A
7.50% 08/01/02........................... 1,260 1,294,650
------------
2,491,650
------------
THAILAND -- 0.6%
Bangkok Bank Public Convertible 3.25%
03/03/04................................. 790 760,375
------------
TOTAL FOREIGN BONDS
(Cost $4,516,793)...................................... 4,163,779
------------
SHORT-TERM INVESTMENT -- 5.5%
BBH Grand Cayman U.S Dollar
Time Deposit 4.875% 09/01/95............. 6,998 6,998,000
------------

TOTAL SHORT-TERM INVESTMENT
(Cost $6,998,000)...................................... 6,998,000
------------
VALUE
------------

TOTAL INVESTMENTS AT VALUE -- 100.7%
(Cost $132,733,018*).................................. $129,241,542
LIABILITIES IN EXCESS OF OTHER ASSETS -- (0.7%).........
(918,979)
------------
NET ASSETS (Applicable to 7,260,406 BEA Shares) --
100.0%................................................ $128,322,563
------------
------------
NET ASSET VALUE AND OFFERING PRICE PER SHARE
($128,322,563 DIVIDED BY 7,260,406).................. $17.67
------------
------------
REDEMPTION PRICE PER SHARE
($17.67 x .9850)...................................... $17.40
------------
------------
</TABLE>

* Cost for Federal income tax purposes at August 31, 1995 is $134,128,138. The
gross appreciation (depreciation) on a tax basis is as follows:

<TABLE>
<S> <C>
Gross Appreciation......................... $ 11,645,354
Gross Depreciation......................... (16,531,950)
-------------
Net Depreciation........................... $ (4,886,596)
-------------
-------------
</TABLE>

** Non-income producing securities.
*** Denotes foreign shares.

INVESTMENT ABBREVIATIONS

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

CURRENCY ABBREVIATIONS

<TABLE>
<S> <C>
HKD........................... Hong Kong Dollars
</TABLE>

See Accompanying Notes to Financial Statements.

37
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
BEA EMERGING MARKETS EQUITY PORTFOLIO

STATEMENT OF OPERATIONS
FOR THE YEAR ENDED
AUGUST 31, 1995

<TABLE>
<S> <C>
INVESTMENT INCOME
Dividends............................ $ 1,957,064
Interest............................. 364,052
Foreign taxes withheld............... (369,424)
------------
TOTAL INVESTMENT INCOME............ 1,951,692
------------
EXPENSES
Investment advisory fees............. 1,283,714
Custodian fees....................... 313,760
Administration service fees.......... 192,557
Administration fees.................. 160,467
Registration fees.................... 23,548
Transfer agent fees.................. 22,007
Audit fees........................... 20,425
Miscellaneous fees................... 16,505
Legal fees........................... 11,046
Organization expense................. 10,636
Printing fees........................ 7,121
Insurance expense.................... 3,749
Directors fees....................... 1,167
------------
2,066,702
Less fees waived..................... (141,123)
------------
TOTAL EXPENSES..................... 1,925,579
------------
NET INVESTMENT INCOME.................. 26,113
------------
REALIZED AND UNREALIZED LOSS ON
INVESTMENTS AND FOREIGN CURRENCY
TRANSACTIONS:
Net realized loss from:
Security transactions.............. (13,347,010)
Foreign exchange transactions...... (285,174)
------------
(13,632,184)
------------
Net unrealized depreciation from:
Investments........................ (18,738,223)
Translation of assets and
liabilities in foreign
currencies........................ (14,706)
------------
(18,752,929)
------------
NET LOSS ON INVESTMENTS AND FOREIGN
CURRENCY TRANSACTIONS................ (32,385,113)
------------
NET DECREASE IN NET ASSETS RESULTING
FROM OPERATIONS...................... $(32,359,000)
------------
------------
</TABLE>

STATEMENTS OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
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
(loss)................. $ 26,113 $ (17,188)
Net gain (loss) on
investments and foreign
currency............... (32,385,113) 17,329,056
-------------- --------------
Net increase (decrease)
in net assets resulting
from operations........ (32,359,000) 17,311,868
-------------- --------------
Distribution to
shareholders:
Dividends to shareholders
from net investment
income:
BEA shares ($.07 and
$.09, respectively,
per share)........... (394,002) (291,386)
Distributions to
shareholders from net
realized capital gains:
BEA shares ($.92 and
$.32, respectively,
per share)........... (5,374,023) (1,002,877)
-------------- --------------
Total distributions to
shareholders........... (5,768,025) (1,294,263)
-------------- --------------
Net capital share
transactions............ 25,774,209 102,669,712
-------------- --------------
Total increase (decrease)
in net assets........... (12,352,816) 118,687,317
Net Assets:
Beginning of year....... 140,675,379 21,988,062
-------------- --------------
End of year............. $128,322,563 $140,675,379
-------------- --------------
-------------- --------------
</TABLE>

See Accompanying Notes to Financial Statements.

38
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
BEA U.S. CORE EQUITY PORTFOLIO
STATEMENT OF NET ASSETS
AUGUST 31, 1995
<TABLE>
<CAPTION>
NUMBER
OF SHARES VALUE
------------- -------------
<S> <C> <C>
COMMON AND CONVERTIBLE STOCKS -- 94.6%
AEROSPACE & DEFENSE -- 3.7%
Lockheed Martin Corp....................... 9,600 $ 584,400
United Technologies Corp................... 7,000 583,625
-------------
1,168,025
-------------
BANKS -- 4.1%
Chase Manhattan Corp....................... 8,900 511,750
First Chicago Corp......................... 5,000 316,875
PNC Financial Corp......................... 12,500 328,125
Southern National Corp..................... 5,000 133,750
-------------
1,290,500
-------------
CHEMICALS -- 4.2%
Dow Chemical Co............................ 9,500 703,000
The Scotts Co. Class A**................... 27,700 623,250
-------------
1,326,250
-------------
CONSTRUCTION -- 3.2%
Falcon Building Products, Inc.**........... 35,000 389,375
USG Corp.**................................ 23,000 623,875
-------------
1,013,250
-------------
DRUGS & MEDICAL PRODUCTS -- 2.3%
McKesson Corp.............................. 17,000 739,500
-------------
ELECTRONICS -- 4.8%
General Electric Co........................ 10,500 618,188
Intel Corp................................. 12,000 736,500
Motorola, Inc.............................. 2,300 171,925
-------------
1,526,613
-------------
ENTERTAINMENT -- 2.3%
Gtech Holdings Corp.**..................... 26,000 754,000
-------------
FINANCIAL SERVICES -- 5.1%
Dean Witter Discover & Co.................. 11,656 594,456
Federal National Mortgage
Association.............................. 5,500 524,562
Student Loan Marketing
Association.............................. 9,000 487,125
-------------
1,606,143
-------------

<CAPTION>
NUMBER
OF SHARES VALUE
------------- -------------
<S> <C> <C>
FOOD -- 2.1%
Coca-Cola Co............................... 5,000 $ 321,250
Nabisco Holdings Corp...................... 12,000 343,500
-------------
664,750
-------------
HOSPITAL MANAGEMENT -- 3.0%
Caremark International, Inc................ 29,900 620,425
Horizon CMS Healthcare Corp.**............. 15,000 328,125
-------------
948,550
-------------
HOTELS AND RESTAURANTS -- 2.9%
Marriot International, Inc................. 16,900 599,950
McDonald's Corp............................ 8,500 310,250
-------------
910,200
-------------
INSURANCE -- 6.3%
Exel Limited............................... 5,700 313,500
Mutual Risk Management, Ltd................ 18,000 686,250
TIG Holdings, Inc.......................... 30,588 783,817
Western National Corp...................... 17,200 215,000
-------------
1,998,567
-------------
INSURANCE-PROPERTY/CASUALTY -- 1.2%
Ace Limited Ordinary Shares................ 13,000 399,750
-------------
MANUFACTURING -- 9.1%
Allied-Signal, Inc......................... 12,000 532,500
Eastman Kodak Co........................... 5,500 316,938
Goodyear Tire & Rubber Co.................. 19,600 784,000
Ingersoll Rand Co.......................... 8,000 303,000
Oakley, Inc.**............................. 29,500 947,687
-------------
2,884,125
-------------
METALS -- 0.9%
Aluminum Co. America
(ALCOA).................................. 5,200 297,050
-------------
MINING -- 1.0%
Vulcan Materials Co........................ 6,000 315,750
-------------
OFFICE & BUSINESS EQUIPMENT -- 1.0%
Harris Corp................................ 5,500 316,938
-------------
</TABLE>

See Accompanying Notes to Financial Statements.

39
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
BEA U.S. CORE EQUITY PORTFOLIO
STATEMENT OF NET ASSETS (CONTINUED)
AUGUST 31, 1995
<TABLE>
<CAPTION>
NUMBER
OF SHARES VALUE
------------- -------------
<S> <C> <C>
COMMON AND CONVERTIBLE STOCKS -- (CONTINUED)
OIL & GAS -- 4.4%
Exxon Corp................................. 9,000 $ 618,750
Mobil Corp................................. 3,200 304,800
Texaco, Inc................................ 7,200 466,200
-------------
1,389,750
-------------
OIL EQUIPMENT & SERVICES -- 2.6%
Schlumberger, Ltd.......................... 5,000 322,500
Tidewater, Inc............................. 20,000 495,000
-------------
817,500
-------------
PACKAGING -- 2.2%
Owens-Illinois, Inc.**..................... 50,100 682,612
-------------
PAPER & FOREST PRODUCTS -- 0.5%
Willamette Industries, Inc................. 2,500 171,875
-------------
PHARMACEUTICAL -- 7.6%
Barr Laboratories, Inc.**.................. 28,000 612,500
Pharmacia Aktiebolag ADR***................ 28,900 798,362
Smithkline Beecham PLC ADR................. 15,000 671,250
Warner Lambert Co.......................... 3,500 316,312
-------------
2,398,424
-------------
PRINTING AND PUBLISHING -- 2.1%
Harcourt General, Inc...................... 16,000 666,000
-------------
RADIO & TV BROADCASTING -- 3.4%
CBS, Inc................................... 1,900 151,525
Granite Broadcasting Corp.**............... 10,000 131,250
Granite Broadcasting Corp. Convertible
Preferred................................ 12,200 805,200
-------------
1,087,975
-------------
<CAPTION>
NUMBER
OF SHARES VALUE
------------- -------------
<S> <C> <C>
REAL ESTATE INVESTMENT TRUST -- 2.5%
Starwood Lodging Trust**................... 12,000 $ 319,500
Trinet Corporate Realty Trust.............. 17,000 465,375
-------------
784,875
-------------
RETAIL DEPARTMENT STORES -- 2.2%
Dayton-Hudson Corp......................... 4,200 307,125
Mac Frugals Bargains
Close-Outs, Inc.**....................... 20,000 335,000
Michael Anthony Jewelers, Inc.**........... 15,400 46,200
-------------
688,325
-------------
RETAIL-SPECIALTY -- 1.8%
Cole National Corp.**...................... 20,300 248,675
Mattel, Inc................................ 10,600 307,400
-------------
556,075
-------------
TELECOMMUNICATION -- 5.5%
American Mobile Satellite Corp., Inc.**.... 13,500 364,500
AT&T Corp.................................. 14,000 791,000
MCI Communications Corp.................... 15,000 360,938
Sprint Corp................................ 6,000 213,000
-------------
1,729,438
-------------
TOBACCO -- 2.6%
American Brands, Inc....................... 7,600 319,200
Philip Morris Companies, Inc............... 6,700 499,988
-------------
819,188
-------------
TOTAL COMMON AND CONVERTIBLE STOCKS
(Cost $26,577,908)..................... 29,951,998
-------------
</TABLE>

See Accompanying Notes to Financial Statements.

40
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
BEA U.S. CORE EQUITY PORTFOLIO
STATEMENT OF NET ASSETS (CONCLUDED)
AUGUST 31, 1995
<TABLE>
<CAPTION>
PAR
(000) VALUE
------------- -------------
CORPORATE BONDS -- 2.3%
<S> <C> <C>
FINANCIAL -- 0.0%
Alexander & Alexander
Services Subordinated Debentures CV
Sinking Fund (NR, BB-)
11.00% 04/15/07.......................... $ 10 $ 10,250
-------------
TRANSPORTATION -- 2.3%
Santa Fe Pipeline Holding (Baa3, BBB)
11.00% 08/15/10.......................... 575 718,750
-------------
TOTAL CORPORATE BONDS
(Cost $756,000)......................... 729,000
-------------
SHORT-TERM INVESTMENT -- 2.7%
BBH Grand Cayman U.S. Dollar Time Deposit
4.875% 09/01/95.......................... 839 839,000
-------------
TOTAL SHORT-TERM INVESTMENT
(Cost $839,000)......................... 839,000
-------------

TOTAL INVESTMENTS AT VALUE -- 99.6%
(Cost $28,172,908*)...................... $ 31,519,998

OTHER ASSETS IN EXCESS OF
LIABILITIES -- 0.4%........................ 123,778
-------------
NET ASSETS (Applicable to 1,772,254 BEA
Shares) -- 100.0%.......................... $ 31,643,776
-------------
-------------
NET ASSET VALUE, OFFERING PRICE AND
REDEMPTION PRICE PER SHARE ($31,643,776
DIVIDED BY 1,772,254)..................... $17.86
-------------
-------------
</TABLE>

* Cost for Federal income tax purposes at August 31, 1995 is $28,013,902. The
gross appreciation (depreciation) on a tax basis is as follows:

<TABLE>
<S> <C>
Gross Appreciation......................... $ 3,707,590
Gross Depreciation......................... (201,494)
-----------
Net Appreciation........................... $ 3,506,096
-----------
-----------
</TABLE>

** Non-income producing securities.
*** Irregular dividend.

See Accompanying Notes to Financial Statements.

41
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
BEA U.S. CORE EQUITY

STATEMENT OF OPERATIONS
FOR THE PERIOD SEPTEMBER 1, 1994 (1) TO
AUGUST 31, 1995

<TABLE>
<S> <C>
INVESTMENT INCOME
Dividends.................................. $ 490,351
Interest................................... 82,406
---------
TOTAL INVESTMENT INCOME.................. 572,757
---------
EXPENSES
Investment advisory fees................... 165,881
Custodian fees............................. 41,690
Administration service fees................ 33,176
Registration fees.......................... 29,227
Administration fees........................ 27,647
Transfer agent fees........................ 18,406
Organization expense....................... 5,194
Printing fees.............................. 4,000
Legal fees................................. 3,233
Miscellaneous fees......................... 2,500
Audit fees................................. 2,324
Insurance expense.......................... 750
Directors fees............................. 200
---------
334,228
Less fees waived........................... (113,054)
---------
TOTAL EXPENSES........................... 221,174
---------
NET INVESTMENT INCOME........................ 351,583
---------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain on investments........... 1,004,252
Net unrealized appreciation on
investments............................... 3,347,090
---------
NET GAIN ON INVESTMENTS...................... 4,351,342
---------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS.................................. $4,702,925
---------
---------
(1) Commencement of Operations.
</TABLE>

STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
FOR THE
PERIOD
SEPTEMBER 1,
1994(1)
TO AUGUST 31,
1995
-------------
<S> <C>
Increase in net assets:
Operations:
Net investment income...................... $ 351,583
Net gain on investments.................... 4,351,342
-------------
Net increase in net assets resulting from
operations................................ 4,702,925
-------------
Distributions to shareholders:
Dividends to shareholders from net investment
income:
BEA shares ($.08 per share).............. (102,838)
-------------
Net capital share transactions............... 27,043,539
-------------
Total increase in net assets................. 31,643,626
Net Assets:
Beginning of period........................ 150
-------------
End of period.............................. $ 31,643,776
-------------
-------------
<FN>
(1) Commencement of Operations.
</TABLE>

See Accompanying Notes to Financial Statements.

42
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
BEA U.S. CORE FIXED INCOME PORTFOLIO
STATEMENT OF NET ASSETS
AUGUST 31, 1995
<TABLE>
<CAPTION>
PAR
(000) VALUE
---------- -------------
<S> <C> <C>
CORPORATE BONDS -- 17.4%
AIR TRANSPORT -- 0.3%
Delta Air Lines, Inc. Debentures (Ba1, BB)
10.375% 02/01/11......................... $ 230 $ 269,388
-------------
BANKS -- 4.9%+++
Christiania Bank og Kreditkasse Perpetual
SubDebentures (NR, NR)+
6.4375%.................................. 600 468,000
Credit Lyonnais Perpetual Sub Variable Rate
Note, Rule 144A (Baa2, NR)
7.00%.................................... 360 333,000
Den Norske Bank A/S Perpetual Sub. FRN (NR,
NR)+
6.125%................................... 380 296,704
Hongkong & Shanghai Banking Corp. Ltd.
Perpetual Sub. FRN (NR, NR)+
6.5625% Series 2......................... 50 40,220
6.25% Series 1........................... 590 476,750
Lloyds Bank Plc Perpetual Sub. FRN (A1,
NR)+
6.0625%.................................. 520 438,776
Midland Bank Plc Perpetual Sub. FRN Series
1 (A2, A-)+
6.125%................................... 750 608,363
Midland Bank Plc Perpetual Sub. FRN Series
2 (A2, BBB+)+
6.6875%.................................. 430 348,580
National Westminster Bank Plc Perpetual
Sub. FRN Series B (A1, A+)+
6.8125%.................................. 590 506,486
Santander Financial Euro Perpetual FRN (A2,
NR)+
6.75%.................................... 1,000 890,000

<CAPTION>
PAR
(000) VALUE
---------- -------------
<S> <C> <C>
BANKS -- (CONTINUED)
Standard Chartered Bank Perpetual Sub. FRN
Series 3 (Baa2, NR)+
5.9625%.................................. $ 580 $ 432,361
-------------
4,839,240
-------------
BUILDING & BUILDING MATERIALS -- 0.4%
J.M. Peters Company, Inc., Senior Notes
(B3, NR)
12.75% 05/01/02.......................... 475 427,500
-------------
CHEMICALS -- 0.2%
UCC Investors Holdings Inc. Senior
Subordinated Notes (B3, B-)++
12.00% 05/01/05.......................... 310 230,950
-------------
COMMUNICATIONS & MEDIA -- 1.0%
Adelphia Communications Corp. Senior Notes
Series B PIK Bonds (B3, B)
9.50% 02/15/04........................... 310 262,269
Summit Communications Group Senior
Subordinated Debentures (B3, BB+)
10.50% 04/15/05.......................... 700 744,625
-------------
1,006,894
-------------
CONSUMER SERVICES -- 0.5%
Falcon Holdings Group L.P. Senior
Subordinated Notes PIK Bonds (NR, NR)
11.00% 09/15/03.......................... 486 467,037
-------------
COSMETICS -- 0.3%
Revlon Worldwide Corp. Senior Secured
Debentures, Series B (B3, B-)
0.00% 03/15/98........................... 480 340,800
-------------
</TABLE>

See Accompanying Notes to Financial Statements.

43
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
BEA U.S. CORE FIXED INCOME PORTFOLIO
STATEMENT OF NET ASSETS (CONTINUED)
AUGUST 31, 1995
<TABLE>
<CAPTION>
PAR
(000) VALUE
---------- -------------
ENVIRONMENTAL SERVICES -- 0.4%
<S> <C> <C>
EnviroSource, Inc. Senior Notes (B3, B)
9.75% 06/15/03........................... $ 405 $ 370,575
-------------
FINANCE -- 1.7%
Ford Motor Credit Corp. Medium Term Notes
(A2, A)
4.80% 07/22/96........................... 25 24,718
General Motors Acceptance Corp. Medium Term
Notes (A3, BBB+)
7.25% 07/20/98........................... 145 147,900
7.375% 04/15/99.......................... 1,160 1,187,550
General Motors Acceptance Corp. Notes (A3,
BBB+)....................................
8.625% 06/15/99.......................... 100 106,375
8.40% 10/15/99........................... 200 212,000
-------------
1,678,543
-------------
FINANCIAL SERVICES -- 0.0%
International Lease Finance Corp. Senior
Notes (A2, A+)
6.75% 08/01/97........................... 30 30,263
-------------
GAS UTILITIES -- 0.1%
Columbia Gas System Inc. Debentures (B3,
D)***/****
10.50% 06/01/12.......................... 95 141,194
-------------
HEALTH -- 0.8%
Columbia/HCA Health Care Corp. Medium Term
Notes (A3, BBB+)
6.63% 07/15/45........................... 750 752,813
-------------
INDUSTRIAL, MANUFACTURING & PROCESSING -- 0.7%
Gaylord Container Corp. Senior Subordinated
Debentures (Caa, B-)++
12.75% 05/15/05.......................... 290 290,000
PDV America, Inc. Guaranteed Senior Notes
(Baa3, BB-)
7.875% 08/01/03.......................... 490 447,738
-------------
737,738
-------------
<CAPTION>
PAR
(000) VALUE
---------- -------------
<S> <C> <C>
METALS & MINING -- 0.4%
Acme Metals Inc. Senior Secured Notes (B1,
B)++
13.25% 08/01/04.......................... $ 475 $ 374,063
-------------
PAPER & FOREST PRODUCTS -- 0.7%
Grupo Industrial Durango, S.A. de C.V.
Yankee Notes
(B1, BB-)
12.00% 07/15/01.......................... 230 207,575
P. T. Indah Kiat Pulp & Paper Corp.
Guaranteed Notes Series B (Ba2, BB)
11.875% 06/15/02......................... 230 237,188
P. T. Indah Kiat Pulp & Paper Corp. Rule
144A Debentures (Ba2, BB)
8.875% 11/01/00.......................... 290 266,438
Stone Container Corp. First Mortgage Notes
(B1, B+)
10.75% 10/01/02.......................... 20 20,900
-------------
732,101
-------------
PUBLISHING -- 1.4%
Time Warner Inc. Notes
(Ba1, BBB-)
8.18% 08/15/07........................... 730 744,600
Time Warner, Inc. Debenture (Ba1, BBB-)
9.15% 02/01/23........................... 645 686,119
-------------
1,430,719
-------------
RETAIL -- 0.3%
Pueblo Xtra International, Inc. Senior
Notes (B2, B-)
9.50% 08/01/03........................... 285 273,600
-------------
STEEL -- 0.2%
Armco, Inc. Senior Notes
(B2, B)
9.375% 11/01/00.......................... 180 178,425
-------------
</TABLE>

See Accompanying Notes to Financial Statements.

44
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
BEA U.S. CORE FIXED INCOME PORTFOLIO
STATEMENT OF NET ASSETS (CONTINUED)
AUGUST 31, 1995
<TABLE>
<CAPTION>
PAR
(000) VALUE
---------- -------------
TELEPHONE -- 1.6%
<S> <C> <C>
New York Telephone Company Debentures (A2,
A)
7.00% 08/15/25........................... $ 800 $ 752,000
Nippon Telephone & Telegraph Corp. Notes
(Aaa, AAA)
9.50% 07/27/98........................... 50 54,250
Pacific Bell Telephone & Telegraph
Debentures (Aa3, AA-)
7.50% 02/01/33........................... 750 741,563
-------------
1,547,813
-------------
TELEVISION -- 0.8%
Turner Broadcasting System, Inc. Senior
Notes (Ba2, BB+)
7.40% 02/01/04........................... 615 588,863
Videotron Holdings Yankee Senior Discount
Notes (B3, B+)++
11.00% 08/15/05.......................... 360 211,500
-------------
800,363
-------------
TRANSPORTATION -- 0.1%
NWA Trust Subordinated Notes Series D (NR,
NR)
13.875% 06/21/08......................... 110 125,400
-------------
UTILITIES -- 0.6%
Long Island Lighting Debentures (Ba1, BB+)
6.25% 07/15/01........................... 260 242,775
8.90% 07/15/19........................... 330 317,213
-------------
559,988
-------------
TOTAL CORPORATE BONDS
(Cost $17,070,529)..................... 17,315,407
-------------
FOREIGN GOVERNMENT BONDS -- 3.9%
Central Bank of Argentina Series 89B Bonex
(B1, BB-)+
5.9375% 12/28/99......................... 110 64,449
<CAPTION>
PAR
(000) VALUE
---------- -------------
<S> <C> <C>
FOREIGN GOVERNMENT BONDS -- (CONTINUED)
Central Bank of the Philippines Par Bonds
Step-Up Coupon, Series B (NR, NR)+
5.75% 12/01/17........................... $ 500 $ 368,438
Federal Republic of Brazil Interest Due
Bonds FRN (B1, NR)+
6.6875% 01/01/01......................... 1,188 981,914
Republic of Argentina (B2, BB-)
7.3125% 03/31/05......................... 500 305,625
Republic of Argentina Step-Up Par Bonds
Series L
(B2, BB-)+
5.00% 03/31/23........................... 500 236,250
Republic of Bulgaria Discount Bonds Tranche
A (NR, NR)+
6.75% 07/28/24........................... 600 300,375
Republic of Ecuador Step-Up Par Bonds (NR,
NR)
3.00% 02/28/25........................... 1,650 534,188
Republic of Italy Global Bond (A1, AA)
6.875% 09/27/23.......................... 855 770,569
Republic of Turkey Yankee Notes (Ba3, B+)
9.00% 06/15/99........................... 30 29,175
The Polish People's Republic Discount Bonds
FRN
(NR, NR)+
7.125% 10/27/24.......................... 425 323,797
-------------
TOTAL FOREIGN GOVERNMENT BONDS
(Cost $3,847,051)...................... 3,914,780
-------------
AGENCY OBLIGATIONS -- 36.0%
FEDERAL HOME LOAN MORTGAGE CORPORATION
FHLMC -- 5.1%
6.00% 05/01/99........................... 412 408,746
6.00% 06/01/99........................... 24 23,907
6.00% 11/01/99........................... 74 73,586
</TABLE>

See Accompanying Notes to Financial Statements.

45
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
BEA U.S. CORE FIXED INCOME PORTFOLIO
STATEMENT OF NET ASSETS (CONTINUED)
AUGUST 31, 1995
<TABLE>
<CAPTION>
PAR
(000) VALUE
---------- -------------
FEDERAL HOME LOAN MORTGAGE CORPORATION -- (CONTINUED)
<S> <C> <C>
7.00% 08/01/00........................... $ 133 $ 134,052
FHLMC 15 Year Gold Balloon TBA**
7.00% 12/15/10........................... 4,350 4,362,234
-------------
5,002,525
-------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION -- 19.7%
FNMA
7.50% 01/01/00........................... 81 82,395
7.50% 09/01/01........................... 838 853,695
7.50% 09/01/01........................... 549 559,506
6.00% 10/01/01........................... 1,725 1,688,970
6.50% 11/01/01........................... 528 525,507
7.50% 12/01/22........................... 73 74,759
8.00% 12/01/22........................... 629 642,352
6.00% 12/01/23........................... 273 256,088
6.00% 01/01/24........................... 723 678,521
6.00% 04/01/24........................... 324 303,872
8.00% 05/01/24........................... 313 319,505
8.00% 06/01/24........................... 413 421,765
8.00% 11/01/24........................... 874 892,393
6.00% 02/01/25........................... 3,021 2,835,403
8.00% 06/01/25........................... 50 51,038
7.00% 07/01/25........................... 27 26,763
8.00% 07/01/25........................... 5,056 5,164,909
8.00% 08/01/25........................... 172 175,879
7.00% 09/01/25........................... 873 857,650
FNMA (TBA)**
6.50% 01/15/02........................... 1,925 1,914,172
FNMA Balloon
7.50% 07/01/00........................... 85 86,804
7.50% 06/01/01........................... 119 121,549
7.50% 09/01/01........................... 572 583,257
FNMA 1991-165 Class M
8.25% 12/25/21........................... 13 13,390
FNMA 1994-3 Class SA
3.2742% 01/25/24......................... 801 419,097
-------------
19,549,239
-------------
<CAPTION>
PAR
(000) VALUE
---------- -------------
<S> <C> <C>
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION -- 9.1%
GNMA
8.25% 08/15/04........................... $ 1 $ 1,444
9.00% 11/15/04........................... 2 2,249
9.00% 12/15/04........................... 2 1,888
8.25% 04/15/06........................... 3 3,042
7.00% 09/01/08........................... 476 479,125
7.00% 11/15/08........................... 446 448,934
6.00% 01/15/09........................... 497 483,160
7.00% 02/01/09........................... 211 212,095
7.00% 03/15/09........................... 469 471,726
6.00% 04/15/09........................... 342 331,802
7.00% 04/15/09........................... 442 444,264
7.00% 05/01/09........................... 361 362,696
6.00% 05/15/09........................... 278 270,047
13.05% 07/15/14.......................... 1 1,603
9.00% 08/15/21........................... 1,299 1,365,212
8.00% 02/15/22........................... 465 476,857
8.00% 03/15/22........................... 319 327,135
8.00% 05/15/22........................... 14 14,676
8.00% 06/15/22........................... 362 371,925
8.00% 09/15/22........................... 484 497,292
8.00% 11/15/22........................... 432 443,077
8.00% 09/15/23........................... 339 348,393
8.00% 08/15/24........................... 480 492,593
8.00% 11/15/24........................... 25 25,712
8.00% 03/15/25........................... 25 25,633
8.00% 07/15/23........................... 1,086 1,114,850
-------------
9,017,430
-------------
MISCELLANEOUS -- 2.1%
Hydro-Quebec Guaranteed Debentures (A2, A+)
13.25% 10/15/10.......................... 100 105,250
National Archive Facility Trust COP (Aaa,
AAA)
8.50% 09/01/19........................... 408 463,409
Tennessee Valley Authority Debentures (NR,
NR)
6.235% 07/15/45.......................... 1,550 1,553,875
-------------
2,122,534
-------------
</TABLE>

See Accompanying Notes to Financial Statements.

46
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
BEA U.S. CORE FIXED INCOME PORTFOLIO
STATEMENT OF NET ASSETS (CONTINUED)
AUGUST 31, 1995
<TABLE>
<CAPTION>
PAR
(000) VALUE
---------- -------------
MISCELLANEOUS -- (CONTINUED)
<S> <C> <C>
TOTAL AGENCY OBLIGATIONS
(Cost $34,887,855)..................... $ 35,691,728
-------------
ASSET-BACKED SECURITIES -- 1.9%
Goldome Credit Corp. Home Equity Trust
Series 1990-1, Class A (Aa2, AA)
10.00% 07/15/15.......................... $ 17 18,129
Green Tree Financial Corporation
Manufactured Housing Contract Series
1995-5 Class A-3 (Aaa, AAA)
6.25% 10/15/25........................... 390 384,624
Green Tree Financial Corporation
Manufactured Housing Contract Series
1995-6 Class A-2
6.40% 08/15/25........................... 1,450 1,443,823
-------------
TOTAL ASSET-BACKED SECURITIES
(Cost $1,848,229)...................... 1,846,576
-------------
COLLATERALIZED MORTGAGED BACKED SECURITIES -- 0.0%
Collateralized Mortgage Obligation Trust
REMIC Series 54-C (Aaa, AAA)
9.25% 11/01/13........................... 3 3,767
Ryland Acceptance Corp. REMIC Series 1985,
Class D (Aaa, AAA)
9.25% 04/01/12........................... 8 8,105
-------------
TOTAL COLLATERALIZED MORTAGAGE BACKED
SECURITIES
(Cost $11,819) 11,872
-------------
<CAPTION>
PAR
(000) VALUE
---------- -------------
<S> <C> <C>
MUNICIPAL BONDS -- 1.9%
New York State Local Assistance Corp.
Revenue Bonds Series C (A, A)
5.50% 04/01/18........................... $ 950 $ 891,813
Salt River Project Agricultural Improvement
& Power District Revenue Bonds Series C
(Aa, AA)
5.00% 01/01/13........................... 490 450,188
South Carolina State Public Service
Authority Revenue Bonds Series C (Aaa,
AAA)
5.00% 01/01/25........................... 650 566,313
-------------
TOTAL MUNICIPAL BONDS
(Cost $1,918,488) 1,908,314
-------------
UNITED STATES TREASURY OBLIGATIONS -- 39.3%
U.S. TREASURY BILLS -- 5.0%
5.36% 10/12/95........................... 5,000 4,969,478
-------------
U.S. TREASURY BONDS -- 16.5%
11.625% 11/15/04......................... 1,600 2,181,216
10.75% 08/15/05.......................... 5,600 7,372,904
7.875% 02/15/21.......................... 4,570 5,178,677
7.125% 02/15/23.......................... 1,600 1,674,448
-------------
16,407,245
-------------
U.S. TREASURY NOTES -- 17.4%
6.00% 12/31/97........................... 2,600 2,608,684
7.25% 02/15/98........................... 3,000 3,091,890
5.375% 05/31/98.......................... 4,350 4,290,188
6.75% 05/31/99........................... 5,550 5,681,645
7.75% 11/30/99........................... 125 132,789
7.50% 11/15/01........................... 225 240,325
6.25% 02/15/03........................... 1,185 1,184,241
-------------
17,229,762
-------------
U.S. TREASURY STRIP NOTES -- 0.4%
11/15/04..................................... 780 433,641
-------------
</TABLE>

See Accompanying Notes to Financial Statements.

47
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
BEA U.S. CORE FIXED INCOME PORTFOLIO
STATEMENT OF NET ASSETS (CONCLUDED)
AUGUST 31, 1995
<TABLE>
<CAPTION>
PAR
(000) VALUE
---------- -------------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $38,223,479) $ 39,040,126
<S> <C> <C>
-------------
LOAN PARTICIPATION AGREEMENTS *** -- 0.3%
BANKS -- 0.3%
Bank of Foreign Economic Affairs of the
USSR (Vnesheconombank Bank Participation
Loan).................................... $ 1,350 267,930
-------------
TOTAL LOAN PARTICIPATION AGREEMENTS
(Cost $272,447) 267,930
-------------
SHORT-TERM INVESTMENT -- 4.9%
BBH Grand Cayman U.S. Dollar Time Deposit
4.875% 09/01/95.......................... 4,835 4,835,000
-------------
TOTAL SHORT-TERM INVESTMENT
(Cost $4,835,000) 4,835,000
-------------
<CAPTION>
NUMBER OF
SHARES
----------
<S> <C> <C>
WARRANTS *** -- 0.0%
J.M. Peters Company, Inc. Warrants Expiring
05/01/02................................. 1,817 909
-------------
TOTAL WARRANTS
(Cost $1,000) 909
-------------
TOTAL INVESTMENTS AT VALUE -- 105.6%
(Cost $102,915,897).................................... 104,832,642
INVESTMENT SECURITIES PURCHASED
PAYABLE -- (8.0%).......................... (7,932,468)
OTHER ASSETS IN EXCESS OF LIABILITIES --
2.4%....................................... 2,349,665
-------------
NET ASSETS (Applicable to 6,438,315 BEA Shares) --
100.0%................................................. $ 99,249,839
-------------
-------------
<CAPTION>
VALUE
-------------
<S> <C> <C>
NET ASSET VALUE, OFFERING PRICE AND
REDEMPTION PRICE PER SHARE
($99,249,839 DIVIDED BY 6,438,315) $15.42
-------------
-------------
</TABLE>

* Cost for Federal income tax purposes at August 31, 1995 is $102,933,859.
The gross appreciation (depreciation) on a tax basis is as follows:

<TABLE>
<S> <C>
Gross Appreciation........................... $2,151,794
Gross Depreciation........................... (253,011)
----------
Net Appreciation............................. $1,898,783
----------
----------
</TABLE>

** Securities were acquired on a delayed delivery basis.

*** Non-income producing securities.

**** Securites currently in default.
+ Variable Rate Obligations -- The interest rate shown is the rate as of
August 31, 1995.

++ Step Bonds -- The interest rate as of August 31, 1995 is 0% and will reset
to interest rate shown at a future date.

+++ Securities have no stated final maturity date.

The Moody's Investors Service, Inc. and Standard & Poor's Corporations ratings
indicated the most recent ratings available at August 31, 1995 and are
unaudited.

INVESTMENT ABBREVIATIONS

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

See Accompanying Notes to Financial Statements.

48
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
BEA U.S. CORE FIXED INCOME PORTFOLIO

STATEMENT OF OPERATIONS
FOR THE YEAR ENDED
AUGUST 31, 1995

<TABLE>
<S> <C>
INVESTMENT INCOME
Interest................................... $ 4,731,575
-----------
EXPENSES
Investment advisory fees................... 254,475
Administration service fees................ 101,790
Administration fees........................ 84,825
Custodian fees............................. 54,084
Registration fees.......................... 29,693
Transfer agent fees........................ 19,852
Audit fees................................. 7,700
Printing fees.............................. 5,476
Miscellaneous fees......................... 5,000
Legal fees................................. 3,930
Organization expense....................... 3,880
Insurance expense.......................... 1,100
Directors fees............................. 800
-----------
572,605
Less fees waived........................... (233,305)
-----------
TOTAL EXPENSES........................... 339,300
-----------
NET INVESTMENT INCOME........................ 4,392,275
-----------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS AND FOREIGN CURRENCY
TRANSACTIONS:
Net realized gain (loss) from:
Security transactions.................... 1,136,894
Foreign exchange transactions............ (17,441)
-----------
1,119,453
-----------
Net unrealized appreciation from:
Investments.............................. 2,393,992
Translation of assets and liabilities in
foreign currencies...................... 10,933
-----------
2,404,925
-----------
NET GAIN ON INVESTMENTS AND FOREIGN CURRENCY
TRANSACTIONS............................... 3,524,378
-----------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS................................. $ 7,916,653
-----------
-----------
</TABLE>

STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
FOR THE
PERIOD
FOR THE APRIL 1,
YEAR ENDED 1994(1)
AUGUST 31, TO AUGUST
1995 31, 1994
------------ ------------

<S> <C> <C>
Increase (decrease) in net assets:
Operations:
Net investment income...................... $ 4,392,275 $ 859,203
Net gain (loss) on investments and foreign
currency.................................. 3,524,378 (854,633)
------------ ------------
Net increase in net assets resulting from
operations................................ 7,916,653 4,570
------------ ------------
Distributions to shareholders:
Dividends to shareholders from net investment
income:
BEA shares ($.84 and $.25, respectively,
per share).............................. (3,353,829) (491,074)
------------ ------------
Net capital share transactions............... 64,671,197 30,502,172
------------ ------------
Total increase in net assets................. 69,234,021 30,015,668
------------ ------------
Net Assets:
Beginning of year.......................... 30,015,818 150
------------ ------------
End of year................................ $99,249,839 $30,015,818
------------ ------------
------------ ------------

<FN>

(1) Commencement of Operations.
</TABLE>

See Accompanying Notes to Financial Statements.

49
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
BEA GLOBAL FIXED INCOME PORTFOLIO
STATEMENT OF NET ASSETS
AUGUST 31, 1995
<TABLE>
<CAPTION>
PAR
(000) VALUE
------------- -------------
<S> <C> <C> <C>
INTERNATIONAL BONDS -- 56.0%
ARGENTINA -- 1.6%
Republic of Argentina FRB
(B2, BB-)
7.3125% 03/31/05.................... $ 500 $ 305,625
-------------
AUSTRALIA -- 3.9%
Queensland Treasury Corp. Global Bonds
(NR, NR) 8.00% 07/14/99............. AUD 630 468,615
Treasury Corporation of Victoria
Global Bonds (Aa2, AA) 8.25%
10/15/03............................ 420 297,442
-------------
766,057
-------------
BRAZIL -- 3.1%
Companhia Petroleo Ipiranga Notes,
Step-Up Coupon (NR, NR)
8.625% 02/25/02..................... $ 285 272,175
Federal Republic of Brazil
Capitalization Bonds
(NR, NR)
8.00% 04/15/14...................... 260 129,187
Federal Republic of Brazil Interest
Due Bonds FRN
(B1, NR)+
6.875% 01/01/01..................... 238 196,383
-------------
597,745
-------------
BULGARIA -- 0.6%
Republic of Bulgaria Discount Bonds
Tranche A (NR, NR)+
6.75% 07/28/24...................... 250 125,156
-------------
CANADA -- 2.9%
Government of Canada Debentures (NR,
NR)
8.75% 12/01/05...................... CND 725 567,951
-------------

<CAPTION>
PAR
(000) VALUE
------------- -------------
<S> <C> <C> <C>
DENMARK -- 0.8%
Kingdom of Denmark Government Bonds
(NR, NR)
8.00% 03/15/06...................... $ 915 $ 158,657
-------------
FRANCE -- 6.2%
Republic of France Treasury
Bonds-O.A.T.
(Aaa, NR)
7.25 04/25/05....................... FF 6,050 1,210,671
-------------
GERMANY -- 9.7%
Federal Republic of Germany Eurobonds
(Aaa, NR) 7.25% 10/21/02............ DEM 2,680 1,903,850
-------------
INDONESIA -- 0.9%
P.T. Indah Kiat Pulp & Paper Corp.
Rule 144A Debentures (Ba2, BB)
8.875% 11/01/00..................... $ 200 183,750
-------------
ITALY -- 2.5%
Republic of Italy Bonds (A1, NR)
9.00% 10/01/03...................... ITL 900,000 483,823
-------------
MOROCCO -- 1.6%
The Kingdom of Morocco, Tranche A Bank
Participation Loan (NR, NR)+
6.6875% 01/01/09.................... $ 500 306,562
-------------
POLAND -- 1.3%
The Polish People's Republic Discount
Bonds FRN (NR, NR)+
7.125% 10/27/24..................... 345 262,847
-------------
RUSSIA** -- 0.4%
Bank of Foreign Economic Affairs of the
USSR (Vneshekonombank Bank Participation
Loan)..................................... 450 89,310
-------------
</TABLE>

See Accompanying Notes to Financial Statements.

50
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
BEA GLOBAL FIXED INCOME PORTFOLIO
STATEMENT OF NET ASSETS (CONTINUED)
AUGUST 31, 1995
<TABLE>
<CAPTION>
PAR
(000) VALUE
------------- -------------
INTERNATIONAL BONDS -- (CONTINUED)
<S> <C> <C> <C>
SPAIN -- 3.0%
Kingdom of Spain Debentures (NR, NR)
10.25% 11/30/98..................... ESP 74,000 $ 587,047
-------------
SUPRANATIONAL -- 9.5%
International Bank For Reconstruction
& Development Eurobonds (Aaa, AAA)
5.25% 03/20/02...................... JPY 161,000 1,868,382
-------------
SWEDEN -- 2.0%
Nordic Investment Bank Global Notes
(Aaa, AAA) 6.25% 02/08/99........... SEK 3,210 392,353
-------------
TURKEY -- 0.1%
Republic of Turkey Yankee Notes (Ba3,
B+)
9.00% 06/15/99...................... $ 25 24,312
-------------
UNITED KINGDOM -- 4.6%
U.K. Treasury Eurobonds (Aaa, NR)
8.50% 07/16/07...................... GBP 563 896,912
-------------
VENEZUELA -- 1.3%
Republic of Venezuela Debt Conversion
Bonds Series DL (Ba2, NR)+
6.8125% 12/18/07.................... $ 500 247,188
-------------
TOTAL INTERNATIONAL BONDS
(Cost $10,849,904)........................ 10,978,198
-------------
UNIITED STATES TREASURY OBLIGATIONS -- 29.3%
U.S. TREASURY BONDS -- 24.2%
11.62% 11/15/04....................... 480 654,365
<CAPTION>
PAR
(000) VALUE
------------- -------------
<S> <C> <C> <C>
U.S. TREASURY BONDS -- (CONTINUED)
10.75% 08/15/05....................... 2,690 3,541,627
7.875% 02/15/21....................... $ 480 $ 543,931
-------------
4,739,923
-------------
U.S. TREASURY STRIP NOTES -- 0.7%
11/15/04.............................. 240 133,428
-------------
U.S. TREASURY NOTES -- 4.4%
5.375% 05/31/98....................... 155 152,869
6.25% 02/15/03........................ 700 699,559
-------------
852,428
-------------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $5,596,809).................... 5,725,779
-------------
SHORT-TERM INVESTMENT -- 11.4%
BBH Grand Cayman U.S. Dollar Time
Deposit
4.875% 09/01/95...................... 2,221 2,221,000
-------------
TOTAL SHORT-TERM
INVESTMENT
(Cost $2,221,000).................... 2,221,000
-------------
TOTAL INVESTMENTS AT VALUE
(Cost $18,667,713*) -- 96.7%............. $ 18,924,977
OTHER ASSETS IN EXCESS OF LIABILITIES --
3.3%..................................... 639,850
-------------
NET ASSETS (Applicable to 1,248,179
BEA Shares) -- 100.0%.................... $ 19,564,827
-------------
-------------
NET ASSET VALUE, OFFERING PRICE AND
REDEMPTION PRICE PER SHARE
($19,564,827 DIVIDED BY 1,248,179)...... $ 15.67
-------------
-------------
</TABLE>

See Accompanying Notes to Financial Statements.

51
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
BEA GLOBAL FIXED INCOME PORTFOLIO
STATEMENT OF NET ASSETS (CONCLUDED)
AUGUST 31, 1995

* Also cost for Federal income tax
purposes at August 31, 1995. The
gross appreciation on a tax basis
is as follows:

<TABLE>
<S> <C>
Gross Appreciation....................... $ 471,375
Gross Depreciation....................... (214,111)
----------
Net Appreciation......................... $ 257,264
----------
----------
</TABLE>

** Non-Income Producing.

+ Variable Rate Obligations -- The
interest rate shown is the rate as
of August 31, 1995.

The Moody's Investors Service, Inc.
and Standard & Poor's Corporation's
ratings indicated are the most recent
ratings available at August 31,1995
and are unaudited.

CURRENCY ABBREVIATIONS

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

See Accompanying Notes to Financial Statements.

52
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
BEA GLOBAL FIXED INCOME PORTFOLIO

STATEMENT OF OPERATIONS
FOR THE YEAR ENDED
AUGUST 31, 1995

<TABLE>
<S> <C>
INVESTMENT INCOME
Interest................................... $1,402,027
----------
EXPENSES
Investment advisory fees................... 87,472
Custodian fees............................. 39,041
Administration service fees................ 26,242
Administration fees........................ 21,868
Transfer agent fees........................ 19,546
Registration fees.......................... 13,953
Organization expense....................... 5,682
Miscellaneous fees......................... 4,267
Printing fees.............................. 3,499
Audit fees................................. 3,000
Legal fees................................. 2,408
Insurance expense.......................... 350
Directors fees............................. 301
----------
227,629
Less fees waived........................... (93,925)
Less expense reimbursement................. (2,497)
----------
TOTAL EXPENSES........................... 131,207
----------
NET INVESTMENT INCOME........................ 1,270,820
----------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENT AND FOREIGN CURRENCY
TRANSACTIONS:
Net realized gain (loss) from:
Security transactions.................... 188,940
Foreign exchange transactions............ (23,628)
----------
165,312
----------
Net unrealized appreciation from:
Investments.............................. 315,935
Translation of assets and liabilities in
foreign currencies...................... 85,307
----------
401,242
----------
NET GAIN ON INVESTMENTS AND FOREIGN CURRENCY
TRANSACTIONS............................... 566,554
----------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS................................. $1,837,374
----------
----------
</TABLE>

STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
FOR THE
PERIOD
FOR THE JUNE 28,
YEAR ENDED 1994(1)
AUGUST 31, TO AUGUST
1995 31, 1994
------------ -----------
<S> <C> <C>
Increase (decrease) in net assets:
Operations:
Net investment income...................... $ 1,270,820 $ 63,522
Net gain (loss) on investments and foreign
currency transactions..................... 566,554 (63,312)
------------ -----------
Net increase in net assets resulting from
operations................................ 1,837,374 210
------------ -----------
Distributions to shareholders:
Dividends to shareholders from net investment
income:
BEA shares ($.88 per share).............. (924,756) --
------------ -----------
Net capital share transactions............... 12,351,849 6,300,000
------------ -----------
Total increase in net assets................. 13,264,467 6,300,210
Net Assets:
Beginning of year.......................... 6,300,360 150
------------ -----------
End of year................................ $19,564,827 $6,300,360
------------ -----------
------------ -----------

<FN>

(1) Commencement of Operations.
</TABLE>

See Accompanying Notes to Financial Statements.

53
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
BEA STRATEGIC FIXED INCOME PORTFOLIO
STATEMENT OF NET ASSETS
AUGUST 31, 1995
<TABLE>
<CAPTION>
PAR
(000) VALUE
------------ -------------
<S> <C> <C>
CORPORATE BONDS -- 62.6%
BANKS AND SAVINGS & LOANS -- 0.5%
Banco Nacional de Desenvolvimento Economico
e Social Notes (NR, NR)
6.00% 09/15/96........................... $ 810 $ 781,264
-------------
BUILDING & BUILDING MATERIALS -- 2.1%
J.M. Peters Company, Inc. Senior Notes (B3,
NR)
12.75% 05/01/02.......................... 3,600 3,240,000
-------------
COMMUNICATIONS & MEDIA -- 2.9%
Adelphia Communications Corp. Senior Notes,
Series B PIK Bonds (B3, B)
9.50% 02/15/04........................... 5,292 4,478,010
-------------
CONSUMER SERVICES -- 2.1%
Falcon Holdings Group L.P. Senior
Subordinated Notes PIK Bonds (NR, NR)
11.00% 09/15/03.......................... 3,421 3,288,436
-------------
COSMETICS -- 2.1%
Revlon Worldwide Corp. Senior Secured
Debentures, Series B (B3, B-)
0.00% 03/15/98........................... 4,400 3,124,000
-------------
ELECTRIC UTILITIES -- 4.0%
Cleveland Electric Illuminating Company 1st
Mortgage Bonds (Ba2, BB)
9.50% 05/15/05........................... 3,700 3,769,375
Midland Funding Corp. I
Lease-Backed Certificates, Series C-91
(Ba3, BB-)
10.33% 07/23/02.......................... 2,276 2,353,267
-------------
6,122,642
-------------

<CAPTION>
PAR
(000) VALUE
------------ -------------
<S> <C> <C>
ENVIRONMENTAL SERVICES -- 1.9%
EnviroSource, Inc. Senior Notes (B3, B)
9.75% 06/15/03........................... $ 3,155 $ 2,886,825
-------------
FINANCIAL SERVICES -- 1.5%
Fifth Mexican Acceptance Corp. Rule 144A
Notes Tranche A (NR, NR)*
8.00% 12/15/98........................... 5,040 2,268,000
-------------
FOOD & BEVERAGES -- 2.7%
Fresh del Monte Produce Yankee Senior Notes
(B3, CCC+)
10.00% 05/01/03.......................... 5,135 4,217,119
-------------
GAS UTILITIES -- 4.8%
Columbia Gas System, Inc. Debentures (B3,
D)**/*** 10.50% 06/01/12................. 4,445 6,606,381
Columbia Gas System, Inc. Medium Term Notes
(B3, D)**/***
9.07% 01/12/00........................... 350 512,313
9.25% 09/30/04........................... 135 199,294
-------------
7,317,988
-------------
HEALTH CARE -- 2.3%
General Medical Corp. Subordinated
Debentures, Series A PIK Bonds (B3, B-)
12.125% 08/15/05......................... 3,493 3,601,783
-------------
</TABLE>

See Accompanying Notes to Financial Statements.

54
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
BEA STRATEGIC FIXED INCOME PORTFOLIO
STATEMENT OF NET ASSETS (CONTINUED)
AUGUST 31, 1995
<TABLE>
<CAPTION>
PAR
(000) VALUE
------------ -------------
INDUSTRIAL, MANUFACTURING & PROCESSING -- 16.6%
<S> <C> <C>
Arcadian Partners, L.P. Senior Notes,
Series B (B2, BB-)
10.75% 05/01/05.......................... $ 5,330 $ 5,603,163
Bell Cablemedia PLC Yankee Discount Bonds
(B2, B+)++
11.95% 07/15/04.......................... 5,350 3,477,500
Bombril S.A. Notes, Series XW (NR, NR)
8.00% 08/26/98........................... 3,350 2,872,625
Companhia Petroleo Ipiranga Notes Step-Up
Coupon (NR, NR)
8.625% 02/25/02.......................... 850 811,750
Companhia Petroleo Ipiranga Rule 144A Notes
(NR, NR)
8.625% 02/25/02.......................... 2,740 2,616,700
Crown Packaging Holdings Senior
Subordinated Notes, Series B (Caa, NR)++
12.25% 11/01/03.......................... 3,800 1,790,750
Essar Gujarat Rule 144A Debenture FRN (NR,
NR)+
8.40% 07/15/99........................... 1,250 1,243,250
Exide Corp. Senior Subordinated Debentures
(B2, B+)++
12.25% 12/15/04.......................... 2,750 2,244,688
Gaylord Container Corp. Senior
Subordinated Debentures
(Caa, B-)++
12.75% 05/15/05.......................... 4,680 4,680,000
Grupo Mexicano de Desarrollo
Rule 144A Notes (B3, NR)
8.25% 02/17/01........................... 410 200,900
-------------
25,541,326
-------------
METALS & MINING -- 3.4%
Acme Metals Inc.
Secured Notes (B1, B)++
13.50% 08/01/04.......................... 6,725 5,295,938
-------------
<CAPTION>
PAR
(000) VALUE
------------ -------------
<S> <C> <C>
PAPER & FOREST PRODUCTS -- 9.4%
Grupo Industrial Durango, S.A. de C.V.
Yankee Notes (B1, BB-)
12.00% 07/15/01.......................... $ 3,450 $ 3,113,625
P.T. Indah Kiat Pulp & Paper Corp.
Debentures (Ba2, BB)
8.875% 11/01/00.......................... 630 578,807
P.T. Indah Kiat Pulp & Paper Corp.
Guaranteed Notes, Series B (Ba2, BB)
11.875% 06/15/02......................... 1,150 1,185,938
P.T. Indah Kiat Pulp & Paper Corp. Rule
144A Debentures (Ba2, BB)
8.875% 11/01/00.......................... 2,625 2,411,719
Stone Container Corp. Senior Notes (B1, B+)
9.875% 02/01/01.......................... 3,080 3,056,900
Stone Container Corp. Subordinated
Debentures (B3, B)
12.125% 09/15/01......................... 3,975 4,054,500
-------------
14,401,489
-------------
RETAIL -- 0.7%
Pueblo Xtra International, Inc. Senior
Notes (B2, B-)
9.50% 08/01/03........................... 1,060 1,017,600
-------------
STEEL -- 0.0%
Armco, Inc. Senior Notes (B2, B)
9.375% 11/01/00.......................... 70 69,388
-------------
TELECOMMUNICATIONS & EQUIPMENT -- 2.2%
Cablevision Industries Corp.,
Senior Debentures Series B (B1, BB-)
9.25% 04/01/08........................... 3,245 3,378,856
-------------
TRANSPORTATION -- 3.4%
NWA Trust Subordinated Notes, Series D (NR,
NR)
13.875% 06/21/08......................... 4,540 5,175,600
-------------
</TABLE>

See Accompanying Notes to Financial Statements.

55
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
BEA STRATEGIC FIXED INCOME PORTFOLIO
STATEMENT OF NET ASSETS (CONTINUED)
AUGUST 31, 1995
<TABLE>
<CAPTION>
PAR
(000) VALUE
------------ -------------
TOTAL CORPORATE BONDS (Cost $97,754,220)... $ 96,206,264
<S> <C> <C>
-------------
FOREIGN GOVERNMENT BONDS -- 22.0%
Central Bank of Nigeria Par Bonds (NR, NR)+
6.25% 11/15/20........................... $ 6,500 2,843,750
Central Bank of the Philippines Par Bonds
Step-Up Coupon, Series B (NR, NR)+
5.75% 12/01/17........................... 6,500 4,789,688
Federal Republic of Brazil Capitalization
Bonds (NR, NR)
8.00% 04/15/14........................... 3,120 1,550,250
Federal Republic of Brazil Interest Due
Bonds FRN (B1, NR)
6.6875% 01/01/01......................... 6,650 5,498,719
Republic of Argentina FRB (B2, BB)+
7.3125% 03/31/05......................... 4,500 2,750,625
Republic of Argentina Step-Up Par Bonds
Series L (B2, BB-)+
5.00% 03/31/23........................... 3,500 1,653,750
Republic of Bulgaria Discount Bonds,
Tranche A (NR, NR)+
6.75% 0728/24............................ 5,250 2,628,281
Republic of Ecuador Discount Bonds FRN (NR,
NR)
6.8125% 02/28/25......................... 4,150 2,062,031
Republic of Turkey Yankee Notes (Ba3, B+)
9.00% 06/15/99........................... 1,515 1,473,338
Republic of Venezuela Debt Conversion Bonds
Series DL (Ba2, NR)+
6.8125% 12/18/07......................... 6,250 3,089,844
<CAPTION>
PAR
(000) VALUE
------------ -------------
<S> <C> <C>
FOREIGN GOVERNMENT BONDS -- (CONTINUED)
The Polish People's Republic Discount Bonds
FRN (NR, NR)+
7.125% 10/27/24.......................... $ 3,825 $ 2,914,172
United Mexican States Par Bonds, Series B
(Ba3, BB)
6.25% 12/31/19........................... 750 455,156
United Mexican States Rule 144A Debentures
FRN (Ba2, BB)
11.1875% 07/21/97........................ 2,040 2,083,350
-------------
TOTAL FOREIGN
GOVERNMENT BONDS
(Cost $35,596,846)........................ 33,792,954
-------------
LOAN PARTICIPATION AGREEMENTS -- 3.9%
The Kingdom of Morocco Tranche A Bank
Participation Loan (NR, NR)+
6.6875% 01/01/09......................... 6,000 3,678,750
Bank of Foreign Economic Affairs of the
USSR (Vneshekonombank Bank Participation
Loan)**................................... 8,000 2,377,500
-------------
TOTAL LOAN PARTICIPATION AGREEMENTS
(Cost $6,718,565)......................... 6,056,250
-------------
UNITED STATES TREASURY OBLIGATIONS -- 9.4%
U.S. TREASURY BILLS -- 1.3%
5.41% 09/21/95............................. 2,000 1,993,989
-------------
</TABLE>

See Accompanying Notes to Financial Statements.

56
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
BEA STRATEGIC FIXED INCOME PORTFOLIO
STATEMENT OF NET ASSETS (CONCLUDED)
AUGUST 31, 1995
<TABLE>
<CAPTION>
PAR
(000) VALUE
------------ -------------
U.S. TREASURY BONDS -- 7.8%
<S> <C> <C>
11.625% 11/15/04........................... $ 950 $ 1,295,097
10.75% 08/15/05............................ 7,700 10,137,743
7.125% 02/15/23............................ 600 627,918
-------------
12,060,758
-------------
U.S. TREASURY NOTES -- 0.1%
6.25 02/15/03.............................. 80 79,950
-------------
U.S. TREASURY STRIP NOTES -- 0.2%
11/15/04................................... 480 266,856
-------------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $13,752,073)....................... 14,401,553
-------------
SHORT-TERM INVESTMENT -- 0.3%
BBH Grand Cayman U.S. Dollar Time Deposit
4.875% 09/01/95........................... 467 467,000
-------------
TOTAL SHORT-TERM
INVESTMENT
(Cost $467,000)........................... 467,000
-------------
<CAPTION>
NUMBER
OF SHARES
------------
<S> <C> <C>
RIGHTS/WARRANTS ** -- 0.1%
J.M. Peters Company, Inc. Warrants
Expiring 05/01/02......................... 28,440 14,220
Uniroyal Technology Warrants Expiring
06/01/03.................................. 43,500 130,500
-------------
TOTAL RIGHTS/WARRANTS (Cost $102,644)...... 144,720
-------------
TOTAL INVESTMENTS AT VALUE
(Cost $154,391,348) -- 98.3%............................. $ 151,068,741
OTHER ASSETS IN EXCESS OF
LIABILITIES -- 1.7%...................................... 2,552,216
-------------
<CAPTION>
VALUE
-------------
<S> <C> <C>
NET ASSETS (Applicable to
9,774,166 BEA Shares) -- 100.0%.......................... $ 153,620,957
-------------
-------------
NET ASSET VALUE AND OFFERING PRICE PER SHARE
($153,620,957 DIVIDED BY 9,774,166)...................... $15.72
-------------
-------------
REDEMPTION PRICE PER SHARE
($15.72 X .9975)......................................... $15.68
-------------
-------------
</TABLE>

* Cost for Federal income tax purposes at August 31, 1995 is $154,659,321. The
gross appreciation (depreciation) on a tax basis is as follows:

<TABLE>
<S> <C>
Gross Appreciation......................... $ 5,105,077
Gross Depreciation......................... (8,695,657)
------------
Net Depreciation........................... $ (3,590,580)
------------
------------
</TABLE>

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

** Non-income Producing Securities.

*** Securities currently in Default

+ Variable Rate Obligations -- The rate shown is the rate as of August 31,
1995.

++ Step Bonds -- The interest rate as of August 31, 1995 is 0% and will reset
to interest rate shown at a future date.

The Moody's Investors Service, Inc. and Standard & Poor's Corporation's ratings
indicated are the most recent ratings available at August 31, 1995 and are
unaudited.

INVESTMENT ABBREVIATIONS

<TABLE>
<S> <C>
FRB....................... Floating Rate Bonds
FRN....................... Floating Rate Notes
PIK....................... Pay in Kind
</TABLE>

See Accompanying Notes to Financial Statements.

57
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
BEA Strategic Fixed Income Portfolio

STATEMENT OF OPERATIONS
FOR THE YEAR ENDED
AUGUST 31, 1995

<TABLE>
<S> <C>
INVESTMENT INCOME
Interest................................... $ 14,842,996
--------------
EXPENSES
Investment advisory fees................... 1,002,002
Administration Service fees................ 214,715
Administration fees........................ 179,304
Custodian fees............................. 35,057
Registration fees.......................... 22,100
Audit fees................................. 21,617
Transfer agent fees........................ 20,899
Printing expense........................... 14,840
Legal fees................................. 11,430
Organization expense....................... 10,636
Insurance expense.......................... 4,236
Miscellaneous fees......................... 1,478
Directors fees............................. 1,289
--------------
1,539,603
Less fees waived........................... (108,172)
--------------
TOTAL EXPENSES........................... 1,431,431
--------------
NET INVESTMENT INCOME........................ 13,411,565
--------------
REALIZED AND UNREALIZED LOSS
ON INVESTMENTS AND FOREIGN
CURRENCY TRANSACTIONS
Net realized loss from:
Security transactions.................... (5,648,311)
Foreign exchange transactions............ (67,803)
--------------
(5,716,114)
--------------
Net unrealized appreciation (depreciation)
from:
Investments.............................. 3,383,850
Translation of assets and liabilities in
foreign currencies...................... (35,172)
--------------
3,348,678
--------------
NET LOSS ON INVESTMENTS AND FOREIGN CURRENCY
TRANSACTIONS................................ (2,367,436)
--------------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS.................................. $ 11,044,129
--------------
--------------
</TABLE>

STATEMENTS OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
FOR THE FOR THE
YEAR ENDED YEAR ENDED
AUGUST 31, AUGUST 31,
1995 1994
-------------- --------------
<S> <C> <C>
Increase (decrease) in net assets:
Operations:
Net investment income...................... $ 13,411,565 $ 9,673,516
Net loss on investments and foreign
currency.................................. (2,367,436) (9,133,121)
-------------- --------------
Net increase in net assets resulting from
operations................................ 11,044,129 540,395
-------------- --------------
Distribution to shareholders:
Dividends to shareholders from net investment
income:
BEA shares ($1.34 and $1.43, respectively,
per share)................................ (12,388,703) (10,126,549)
-------------- --------------
Net capital share transactions............... 11,448,059 54,747,035
-------------- --------------
Total increase in net assets................. 10,103,485 45,160,881
Net Assets:
Beginning of year.......................... 143,517,472 98,356,591
-------------- --------------
End of year................................ $ 153,620,957 $ 143,517,472
-------------- --------------
-------------- --------------
</TABLE>

See Accompanying Notes to Financial Statements.

58
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
BEA MUNICIPAL BOND PORTFOLIO
STATEMENT OF NET ASSETS
AUGUST 31, 1995
<TABLE>
<CAPTION>
PAR
(000) VALUE
------------ -------------
<S> <C> <C>
MUNICIPAL BONDS -- 98.7%
ALABAMA -- 0.8%
Birmingham AL Industrial Water Board
Revenue (NR, AAA)
6.00% 07/01/07........................... $ 75 $ 79,219
Jefferson County AL
Sanitary Sewer Construction RAW (Aaa, NR)
6.75% 03/01/07........................... 270 296,325
-------------
375,544
-------------
ARIZONA -- 3.3%
Salt River AZ Agricultural
Improvement & Power
Distribution Electric System
Revenue (Aa, AA)
5.375% 01/01/11.......................... 600 579,750
5.50% 01/01/25........................... 1,085 1,017,188
-------------
1,596,938
-------------
ARKANSAS -- 0.9%
Greene County AR Residential Housing
Facility Board, Single Family Mortgage
Revenue (MBIA Insured) (Aaa, AAA)
7.40% 09/01/11........................... 365 422,944
-------------
CALIFORNIA -- 8.6%
California State GO (Aaa, AAA)
5.125% 10/01/17.......................... 1,650 1,458,187
Los Angeles CA Department of Water & Power
Water Revenue (Aa, AA)
4.50% 05/15/23........................... 675 525,656
Sacramento CA Municipal
Utilities District Electric Revenue (MBIA
Insured) (Aaa, AAA)
6.20% 08/15/05........................... 100 108,125
San Diego CA Sewer
Revenue Series A (AMBAC Insured) (Aaa,
AAA)
5.00% 05/15/23........................... 1,000 861,250

<CAPTION>
PAR
(000) VALUE
------------ -------------
<S> <C> <C>
CALIFORNIA -- (CONTINUED)
Southern California Public Power Authority
Power Project Revenue Series A (AMBAC
Insured) (Aa, AA-)
5.00% 07/01/17........................... $ 705 $ 607,181
Southern California Public Power Authority
Transmission Project Revenue Series B
(AMBAC Insured) (Aa, AA-)
5.50% 07/01/23........................... 740 670,625
-------------
4,231,024
-------------
COLORADO -- 1.1%
Colorado Springs CO Utility Revenue (Aaa,
AAA)
5.875 11/15/17........................... 525 546,000
-------------
FLORIDA -- 9.5%
Florida State Board of Education Public
Education Capital Outlay GO (Aa, AA)
5.125% 06/01/22.......................... 1,610 1,444,975
Florida State GO (Aa, AA)
5.50% 10/01/08........................... 740 686,350
Jacksonville FL Electric Authority Revenue
(Aaa, AAA)
6.00% 07/01/12........................... 910 982,800
Orlando FL Utilities Commission Water &
Electric Revenue (Aaa, AAA)
6.30% 04/01/07........................... 685 743,225
Tallahassee FL Electric Revenue First Lien
(Aaa, AAA)
6.10% 10/01/06........................... 730 790,225
-------------
4,647,575
-------------
GEORGIA -- 0.9%
DeKalb County GA Water & Sewer Revenue
(Aaa, AAA)
5.25% 10/01/02........................... 430 439,675
-------------
</TABLE>

See Accompanying Notes to Financial Statements.

59
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
BEA MUNICIPAL BOND PORTFOLIO
STATEMENT OF NET ASSETS (CONTINUED)
AUGUST 31, 1995
<TABLE>
<CAPTION>
PAR
(000) VALUE
------------ -------------
ILLINOIS -- 5.9%
<S> <C> <C>
Illinois State Sales Tax Revenue (A1, AAA)
5.75% 06/15/14........................... $ 1,050 $ 1,031,625
5.50% 06/15/18........................... 1,500 1,415,625
Lombard IL Multifamily Housing Revenue
(Clover Creek) (NR, A+)
6.50% 12/15/06........................... 420 425,250
-------------
2,872,500
-------------
INDIANA -- 2.0%
Indianapolis IN Local Public Improvement
Bond Bank Revenue Series 93A
(Aaa, AA+)
6.00% 01/10/18........................... 965 965,000
-------------
KENTUCKY -- 1.0%
Kentucky State Turnpike Authority Resource
Recovery Road Revenue (Aaa, AAA)
6.125% 07/01/07.......................... 480 502,800
-------------
LOUISIANA -- 1.6%
New Orleans LA Home Mortgage Authority SOB
(Aaa, AAA)
6.25% 01/15/11........................... 635 662,781
Shreveport LA Home Mortgage Authority
Single Family Mortgage Revenue (FHA
Insured/VA Gtd. Mtge. Lease) (Aaa, AA)
6.75% 09/01/10........................... 126 137,812
-------------
800,593
-------------
MARYLAND -- 2.0%
Baltimore MD New Public Housing Revenue
(Aaa, AAA)
5.00% 07/01/98........................... 25 25,031
<CAPTION>
PAR
(000) VALUE
------------ -------------
<S> <C> <C>
MARYLAND -- (CONTINUED)
Maryland State Transportation Authority
Project Revenue (Aaa, AAA)
6.80% 07/01/16........................... $ 850 $ 950,937
-------------
975,968
-------------
MASSACHUSETTS -- 0.9%
Massachusetts State Water Resources
Authority General Revenue Series 92A (A,
A)
6.50% 07/15/19........................... 420 455,700
-------------
MISSISSIPPI --- 3.4%
Mississippi State GO (Aaa, AAA)
6.20% 02/01/08........................... 1,550 1,658,500
-------------
NEW YORK -- 30.9%
New York State Dormitory Authority Revenue
(Episcopal Health Services) (GNMA Coll.)
(NR, AAA)
7.55% 08/01/29........................... 1,335 1,443,469
New York State Dormitory Authority Revenue
(Judicial Facilities Lease) (MBIA In-
sured) (Aaa, AAA)
7.375% 07/01/16.......................... 605 718,438
New York State Dormitory Authority Revenue
(State University Educational Facili-
ties) (Baa1, BBB+)**
5.90% 05/15/04........................... 75 47,344
New York State Energy Research &
Development Authority Revenue (A1, NR)
9.00% 08/15/20........................... 900 918,369
New York State Energy Research &
Development Authority Revenue (Brooklyn
Union Gas Co. Project) (A1, A)
9.00% 05/15/96........................... 1,015 1,042,913
</TABLE>

See Accompanying Notes to Financial Statements.

60
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
BEA MUNICIPAL BOND PORTFOLIO
STATEMENT OF NET ASSETS (CONTINUED)
AUGUST 31, 1995
<TABLE>
<CAPTION>
PAR
(000) VALUE
------------ -------------
NEW YORK -- (CONTINUED)
<S> <C> <C>
New York State Housing Finance Agency
Revenue (State University Construction)
(Aaa, AAA)
8.30% 11/01/97........................... $ 565 $ 625,031
New York State Medical Care Facility
Finance Agency Hospital Nursing Home In-
sured Mortgage Revenue (NR, AAA)
5.75% 08/15/19........................... 1,695 1,642,031
5.50% 02/15/22........................... 1,600 1,504,000
10.50% 01/15/24.......................... 900 903,375
New York State Power Authority General
Purpose Electric Revenue (Aaa, AA-)
7.375% 01/01/18.......................... 570 587,813
5.625% 01/01/10.......................... 475 498,156
New York State Power Authority Revenue
Series V (MBIA Insured) (Aaa, AAA)
7.875% 01/01/13.......................... 790 871,962
Rome NY Housing Development Corp. Mortgage
Revenue (ParkDrive Manor) (MBIA Insured)
(Aaa, AAA)
7.00% 01/01/26........................... 410 393,600
Suffolk County NY Water Authority
Waterworks Revenue Series V
(NR, AAA)
6.75% 06/01/12........................... 1,160 1,281,800
Triborough Bridge & Tunnel Authority NY
Revenue
Series L (Aa, A+)
8.125% 06/01/12.......................... 525 570,281
Triborough Bridge & Tunnel Authority NY
Mortgage Recording Tax SOB
(Aaa, AAA)
7.125% 01/01/00.......................... 1,865 2,086,469
-------------
15,135,051
-------------
<CAPTION>
PAR
(000) VALUE
------------ -------------
<S> <C> <C>
NORTH CAROLINA -- 3.5%
North Carolina Municipal Power Agency I,
Catawba Electric Revenue (Aaa, AAA)
10.50% 01/01/10.......................... $ 1,180 $ 1,699,200
-------------
OREGON -- 0.2%
Portland OR Hospital Facilities Authority
Legacy Health Systems Hospital Revenue
Series 91A (AMBAC Insured) (Aaa, AAA)
6.70% 05/01/21........................... 115 123,338
-------------
PUERTO RICO -- 7.3%
Commonwealth of Puerto Rico Aqueduct &
Sewer Authority Revenue (Aaa, AAA)
8.25% 07/01/96........................... 150 155,438
4.50% 07/01/02........................... 158 160,370
Commonwealth of Puerto Rico Aqueduct &
Sewer Authority Revenue (Commonwealth
Guaranteed) (Baa1, A)
7.875% 07/01/17.......................... 1,540 1,707,475
Commonwealth of Puerto Rico GO (Baa1, A)
5.40% 07/01/07........................... 1,310 1,300,175
University of Puerto Rico
Revenue Series L (Aaa, A)
7.75% 06/01/07........................... 225 235,969
-------------
3,559,427
-------------
SOUTH DAKOTA -- 5.9%
Heartland Consumers Power District SD
Electric Revenue (Aaa, AAA)
6.375% 01/01/16.......................... 525 559,781
7.00% 01/01/16........................... 2,035 2,347,881
-------------
2,907,662
-------------
</TABLE>

See Accompanying Notes to Financial Statements.

61
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
BEA MUNICIPAL BOND PORTFOLIO
STATEMENT OF NET ASSETS (CONCLUDED)
AUGUST 31, 1995
<TABLE>
<CAPTION>
PAR
(000) VALUE
------------ -------------
TEXAS -- 5.1%
<S> <C> <C>
Austin TX Utilities Systems Revenue (NR,
NR)
5.375% 05/15/00.......................... $ 415 $ 426,931
Dallas-Fort Worth TX International Airport
Revenue (Baa2, BB+)
7.25% 11/01/30........................... 280 291,900
Houston TX Airport Systems Revenue (Aaa,
AAA)
5.80% 07/01/10........................... 400 415,000
Houston TX Water Systems Revenue (Aaa, AAA)
5.50% 12/01/09........................... 155 156,356
Lower Colorado River Authority Revenue
(Aaa, NR)
9.25% 01/01/05........................... 350 363,125
9.50% 01/01/13........................... 725 752,187
Lower Colorado River Authority Priority
Revenue (Aaa, AAA)
9.375% 01/01/05.......................... 85 88,188
-------------
2,493,687
-------------
UTAH -- 2.0%
Intermountain Power Agency UT Power Supply
Revenue
Series B (Aa, AA-)
6.00% 07/01/21........................... 420 417,375
Utah State School District
Finance Cooperative
Revenue (NR, AA+)
8.375% 08/15/10.......................... 535 585,156
-------------
1,002,531
-------------
VIRGINIA -- 1.9%
Fairfax County VA Redevelopment & Housing
Authority Mortgage Revenue (FHA Insured)
(NR, AAA)
7.10% 04/01/19........................... 830 949,313
-------------
<CAPTION>
PAR
(000) VALUE
------------ -------------
<S> <C> <C>

TOTAL MUNICIPAL BONDS
(Cost 46,365,057)...................... 48,360,970
-------------
SHORT-TERM INVESTMENT -- 0.1%
Smith Barney Tax Free Money Market Fund.... $ 37 $ 36,963
-------------
TOTAL SHORT-TERM INVESTMENT
(Cost $36,963)......................... 36,963
-------------
TOTAL INVESTMENTS AT VALUE -- 98.8%
(Cost $46,402,020*)........................ $ 48,397,933
OTHER ASSETS IN EXCESS OF
LIABILITIES -- 1.2%........................ 579,904
-------------
NET ASSETS (Applicable to 3,168,671 BEA
shares) -- 100.0%.......................... $ 48,977,837
-------------
-------------
NET ASSET VALUE, OFFERING PRICE AND
REDEMPTION PRICE PER SHARE
($48,977,837 DIVIDED BY 3,168,671)........ $15.46
-------------
-------------
</TABLE>

* Cost for Federal income tax purposes at August 31, 1995 is $46,065,541. The
gross appreciation (depreciation) on a tax basis is as follows:

<TABLE>
<S> <C>
Gross Appreciation............ $2,370,727
Gross Depreciation............ (38,335)
----------
Net Appreciation.............. $2,332,392
----------
----------
</TABLE>

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

The Moody's Investors Service, Inc. and Standard & Poor's Corporation's ratings
indicated are the most recent ratings available at August 31, 1995 and are
unaudited.

INVESTMENT ABBREVIATIONS

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

See Accompanying Notes to Financial Statements.

62
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
BEA MUNICIPAL BOND FUND PORTFOLIO

STATEMENT OF OPERATIONS
FOR THE YEAR ENDED
AUGUST 31, 1995

<TABLE>
<S> <C>
INVESTMENT INCOME
Interest................................... $2,750,682
-----------
EXPENSES
Investment advisory fees................... 334,116
Administration service fees................ 71,596
Administration fees........................ 59,664
Registration fees.......................... 22,561
Transfer agent fees........................ 21,143
Custodian fees............................. 17,278
Miscellaneous fees......................... 12,000
Printing fees.............................. 8,499
Audit fees................................. 8,250
Organization expense....................... 7,646
Legal fees................................. 4,100
Insurance expense.......................... 1,100
Directors fees............................. 600
-----------
568,553
Less fees waived........................... (91,244)
-----------
TOTAL EXPENSES........................... 477,309
-----------
NET INVESTMENT INCOME........................ 2,273,373
-----------
REALIZED AND UNREALIZED GAIN(LOSS) ON
INVESTMENTS:
Net realized loss on investments........... (230,566)
Net unrealized appreciation on
investments............................... 2,065,632
-----------
NET GAIN ON INVESTMENTS...................... 1,835,066
-----------
NET INCREASE IN NET ASSETS RESULTING FFROM
OPERATIONS.................................. $4,108,439
-----------
-----------
</TABLE>

STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
FOR THE
PERIOD
FOR THE JUNE 20,
YEAR ENDED 1994(1) TO
AUGUST 31, AUGUST 31,
1995 1994
------------- -------------

<S> <C> <C>
Increase (decrease) in net assets:
Operations:
Net investment income.................... $ 2,273,373 $ 240,189
Net gain(loss) on investments............ 1,835,066 (60,805)
------------- -------------
Net increase in net assets resulting from
operations.............................. 4,108,439 179,384
------------- -------------
Distributions to shareholders:
Dividends to shareholders from net
investment income:
BEA shares ($.76 per share).............. (2,400,128) --
Distributions to shareholders from net
realized capital gains:
BEA shares ($.05 per share)................ (174,436) --
------------- -------------
Total distributions to shareholders........ (2,574,564) --
------------- -------------
Net capital share transactions............... 5,134,026 42,130,402
------------- -------------
Total increase in net assets................. 6,667,901 42,309,786
Net Assets:
Beginning of year.......................... 42,309,936 150
------------- -------------
End of year................................ $ 48,977,837 $ 42,309,936
------------- -------------
------------- -------------

<FN>

(1) Commencement of Operations.
</TABLE>

See Accompanying Notes to Financial Statements.

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

<TABLE>
<CAPTION>
BEA INTERNATIONAL EQUITY PORTFOLIO BEA EMERGING MARKETS EQUITY PORTFOLIO
----------------------------------------------------- ------------------------------------------------------
FOR THE FOR THE FOR THE PERIOD FOR THE FOR THE FOR THE PERIOD
YEAR ENDED YEAR ENDED OCTOBER 1, 1992* TO YEAR ENDED YEAR ENDED FEBRUARY 1, 1993* TO
AUGUST 31, 1995 AUGUST 31, 1994 AUGUST 31, 1993 AUGUST 31, 1995 AUGUST 31, 1994 AUGUST 31, 1993
--------------- --------------- ------------------- --------------- --------------- --------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of
period.............. $ 20.73 $ 18.73 $ 15.00 $ 24.58 $ 18.38 $ 15.00
--------------- --------------- ------------------- --------------- --------------- --------------------
Income from
investment
operations
Net investment
income.......... .06 .05 .04 .02 (.03) .02
Net gain (loss)
on securities
(both realized
and
unrealized)..... (1.75) 2.60 3.69 (5.94) 6.64 3.36
--------------- --------------- ------------------- --------------- --------------- --------------------
Total from
investment
operations...... (1.69) 2.65 3.73 (5.92) 6.61 3.38
--------------- --------------- ------------------- --------------- --------------- --------------------
Less Distributions
Dividends from
net investment
income.......... -- (.05) -- (.07) (.09) --
Distributions
from capital
gains........... (.80) (.60) -- (.92) (.32) --
--------------- --------------- ------------------- --------------- --------------- --------------------
Total
distributions... (.80) (.65) -- (.99) (.41) --
--------------- --------------- ------------------- --------------- --------------- --------------------
Net asset value,
end of period... $ 18.24 $ 20.73 $ 18.73 $ 17.67 $ 24.58 $ 18.38
--------------- --------------- ------------------- --------------- --------------- --------------------
--------------- --------------- ------------------- --------------- --------------- --------------------
Total return......... (8.06%)(d) 14.23%(d) 24.87%(c)(d) (24.42%)(d) 35.99%(d) 22.53%(c)(d)
Ratio/Supplemental
Data
Net assets, end
of period....... $773,254,630 $767,189,791 $268,403,524 $128,322,563 $140,675,379 $21,988,062
Ratio of expenses
to average net
assets.......... 1.25%(a) 1.25%(a) 1.25%(a)(b) 1.50%(a) 1.50%(a) 1.50%(a)(b)
Ratio of net
investment
income (loss) to
average net
assets.......... .35% .33% .41%(b) .02% (.02%) .28%(b)
Portfolio
turnover rate... 78% 104% 106%(c) 79% 54% 38%(c)

<FN>

(a) Without the waiver of advisory fees and administration fees, the ratios of
expenses to average net assets for the BEA International Equity Portfolio
would have been 1.26% and 1.30% for the years ended August 31, 1995 and
1994, respectively, and 1.46% annualized for the period ended August 31,
1993. Without the waiver of advisory fees and and administration fees and
without the reimbursement of operating expenses, the ratios of expenses to
average net assets for the BEA Emerging Markets Equity Portfolio would have
been 1.61% and 2.01% for the years ended August 31, 1995 and 1994,
respectively, and 3.23% annualized for the period ended August 31, 1993.
(b) Annualized.
(c) Not Annualized.
(d) Redemption fees not reflected in total return.
* Commencement of operations.
</TABLE>

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

<TABLE>
<CAPTION>
BEA U.S. CORE FIXED INCOME
BEA U.S. CORE PORTFOLIO
EQUITY PORTFOLIO ------------------------------
------------------- FOR THE PERIOD
FOR THE PERIOD FOR THE APRIL 1, 1994*
SEPTEMBER 1, 1994* YEAR ENDED TO
TO AUGUST 31, AUGUST 31,
AUGUST 31, 1995 1995 1994
------------------- -------------- --------------
<S> <C> <C> <C>
Net asset value, beginning of period........................ $ 15.00 $ 14.77 $ 15.00
------------------- -------------- --------------
Income from investment operations
Net investment income................................... .22 .88 .42
Net gain(loss) on securities (both realized and
unrealized)............................................ 2.72 .61 (.40)
------------------- -------------- --------------
Total from investment operations........................ 2.94 1.49 .02
------------------- -------------- --------------
Less Distributions
Dividends from net investment income.................... (.08) (.84) (.25)
Distributions from capital gains........................ -- -- --
------------------- -------------- --------------
Total distributions..................................... (.08) (.84) (.25)
------------------- -------------- --------------
Net asset value, end of period.......................... $ 17.86 $ 15.42 $ 14.77
------------------- -------------- --------------
------------------- -------------- --------------
Total return................................................ 19.75% 10.60% 0.17%(c)
Ratio/Supplemental Data
Net assets, end of period............................... $ 31,643,776 $ 99,249,839 $ 30,015,818
Ratio of expenses to average net assets................. 1.00%(a) 0.50%(a) 0.50%(a)(b)
Ratio of net investment income to average net assets.... 1.59% 6.47% 6.04%(b)
Portfolio turnover rate................................. 123% 304% 186%(c)

<FN>

(a) Without the waiver of advisory fees and administration fees, the ratio of
expenses to average net assets for the BEA U.S. Core Equity Portfolio would
have been 1.51% for the year ended August 31, 1995. Without the waiver of
advisory fees and administration fees, the ratios of expenses to average net
assets for the BEA U.S. Core Fixed Income Portfolio would have been .84% for
the year ended August 31, 1995 and .99% annualized for the period ended
August 31, 1994.

(b) Annualized.

* Commencement of operations
</TABLE>

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

<TABLE>
<CAPTION>
BEA GLOBAL FIXED INCOME
PORTFOLIO BEA STRATEGIC FIXED INCOME PORTFOLIO
------------------------------- -------------------------------------------------
FOR THE FOR THE PERIOD FOR THE FOR THE FOR THE PERIOD
YEAR ENDED JUNE 28, 1994* YEAR ENDED YEAR ENDED MARCH 31, 1993*
AUGUST 31, TO AUGUST 31, AUGUST 31, TO
1995 AUGUST 31, 1994 1995 1994 AUGUST 31, 1993
-------------- --------------- -------------- -------------- -----------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of
period............................... $ 15.00 $ 15.00 $ 15.94 $ 16.94 $ 15.00
-------------- --------------- -------------- -------------- -----------------
Income from investment operations
Net investment income............. 1.06 .15 1.42 1.20 .52
Net gains(losses) on securities
(both realized and unrealized)... .49 (.15) (.30) (.77) 1.42
-------------- --------------- -------------- -------------- -----------------
Total from investment
operations....................... 1.55 -- 1.12 0.43 1.94
-------------- --------------- -------------- -------------- -----------------
Less Distributions
Dividends from net investment
income........................... (.88) -- (1.34) (1.43) --
Distributions from capital
gains............................ -- -- -- -- --
-------------- --------------- -------------- -------------- -----------------
Total distributions............... (.88) -- (1.34) (1.43) --
-------------- --------------- -------------- -------------- -----------------
Net asset value, end of period.... $ 15.67 $ 15.00 $ 15.72 $ 15.94 $ 16.94
-------------- --------------- -------------- -------------- -----------------
-------------- --------------- -------------- -------------- -----------------
Total return.......................... 10.72% 0.00%(c) 7.79%(d) 2.24%(d) 12.93%(c)(d)
Ratio/Supplemental Data
Net assets, end of period......... $ 19,564,827 $ 6,300,360 $153,620,957 $143,517,472 $ 98,356,591
Ratio of expenses to average net
assets........................... 0.75%(a) 0.75%(a)(b) 1.00%(a) 1.00%(a) 1.00%(a)(b)
Ratio of net investment income to
average net assets............... 7.26% 5.64%(b) 9.37% 7.73% 7.56%(b)
Portfolio turnover rate........... 91% 0%(c) 70% 121% 72%(c)
<FN>

(a) Without the waiver of advisory fees and administration fees and without the
reimbursement of operating expenses, the ratios of expenses to average net
assets for the BEA Global Fixed Income Portfolio would have been 1.29% for
the year ended August 31, 1995 and 1.92% annualized for the period ended
August 31, 1994. Without the waiver of advisory fees and administration
fees, the ratios of expenses to average net assets for the BEA Strategic
Fixed Income Portfolio would have been 1.08% and 1.13% for the years ended
August 31, 1995 and 1994, respectively, and 1.17% annualized for the period
ended August 31, 1993.

(b) Annualized.

(d) Redemption fees not reflected in total return.

* Commencement of operations
</TABLE>

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

<TABLE>
<CAPTION>
BEA MUNICIPAL BOND FUND
PORTFOLIO
-------------------------------
FOR THE FOR THE PERIOD
YEAR ENDED JUNE 20, 1994*
AUGUST 31, TO
1995 AUGUST 31, 1994
-------------- ---------------
<S> <C> <C>
Net asset value, beginning of period............................................... $ 15.06 $ 15.00
-------------- ---------------
Income from investment operations
Net investment income.......................................................... .71 .09
Net gains(losses) on securities (both realized and unrealized)................. .50 (.03)
-------------- ---------------
Total from investment operations............................................... 1.21 0.06
-------------- ---------------
Less Distributions
Dividends from net investment income........................................... (.76) --
Distributions from capital gains............................................... (.05) --
-------------- ---------------
Total distributions............................................................ (.81) --
-------------- ---------------
Net asset value, end of period................................................. $ 15.46 $ 15.06
-------------- ---------------
-------------- ---------------
Total return....................................................................... 8.42% 0.40%(c)
Ratio/Supplemental Data
Net assets, end of period...................................................... $ 48,977,837 $ 42,309,936
Ratio of expenses to average net assets........................................ 1.00%(a) 1.00%(a)(b)
Ratio of net investment income (loss) to average net assets.................... 4.76% 3.27%(b)
Portfolio turnover rate........................................................ 25% 9%(c)
<FN>

(a) Without the waiver of advisory fees and administration fees, the ratios of
expenses to average net assets for the BEA Municipal Bond Fund Portfolio
would have been 1.19% for the year ended August 31, 1995 and 1.34%
annualized for the period ended August 31, 1994.

(b) Annualized.

* Commencement of operations
</TABLE>

67
<PAGE>
THE BEA 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, and currently has seventeen
investment Portfolios, seven of which are included in these financial
statements.

The Fund has authorized capital of thirty billion shares of common stock of
which 12.2 billion 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 BEA Family, the RBB Family, the Sansom Street Family, the Bedford Family,
the Cash Preservation Family, the Jamey Montgomery Scott Money Funds, the
Warburg Pincus Family and the Bradford Family. The BEA Family represents
interests in nine portfolios, seven of which are currently in operation and
covered by this report.

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

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

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

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

E) FEDERAL INCOME TAXES -- No provision is made for Federal taxes as
it is the Fund's intention to have each portfolio 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.

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

68
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
AUGUST 31, 1995

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

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

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

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

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

BEA may, at its discretion, voluntarily waive all or any portion of its
advisory fee for either of the portfolios. For the year ended August 31, 1995,
advisory fees and waivers for each of the seven investment portfolios were as
follows:

<TABLE>
<CAPTION>
GROSS NET
ADVISORY FEE WAIVER ADVISORY FEE
-------------- -------------- --------------
<S> <C> <C> <C>
BEA International Equity Portfolio $ 6,012,837 $ 0 $ 6,012,837
BEA Emerging Markets Equity
Portfolio 1,283,714 (33,702) 1,250,012
BEA U.S. Core Equity Portfolio 165,881 (88,725) 77,156
BEA U.S. Core Fixed Income
Portfolio 254,475 (121,336) 133,139
BEA Global Fixed Income Portfolio 87,472 (68,558) 18,914
BEA Strategic Fixed Income
Portfolio 1,002,002 0 1,002,002
BEA Municipal Bond Fund Portfolio 334,116 (38,740) 295,376
</TABLE>

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

69
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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
administration fee for any of the portfolios. For the year ended August 31,
1995, administration fees for each of the seven investment portfolios were as
follows:

<TABLE>
<CAPTION>
GROSS NET
ADMINISTRATION ADMINISTRATION
FEE WAIVER FEE
-------------- --------- ---------------
<S> <C> <C> <C>
BEA International Equity Portfolio $ 939,506 $(31,334) $ 908,172
BEA Emerging Markets Equity Portfolio 160,467 (13,100) 147,367
BEA U.S. Core Equity Portfolio 27,647 -- 27,647
BEA U.S. Core Fixed Income Portfolio 84,825 (27,144) 57,681
BEA Global Fixed Income Portfolio 21,868 (4,374) 17,494
BEA Strategic Fixed Income Portfolio 179,304 (6,060) 173,244
BEA Municipal Bond Fund Portfolio 59,664 -- 59,664
</TABLE>

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

NOTE 3.PURCHASES AND SALES OF SECURITIES
For the year ended August 31, 1995, purchases and sales of investment
Securities (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>
BEA International Equity Portfolio $617,181,288 $573,180,379 $ -- $ --
BEA Emerging Markets Equity Portfolio 114,628,576 97,313,228 -- --
BEA U.S. Core Equity Portfolio 52,780,847 26,487,722 -- --
BEA U.S. Core Fixed Income Portfolio 107,672,185 92,069,914 128,659,829 100,800,133
BEA Global Fixed Income Portfolio 21,535.609 11,718,908 2,527,679 2,086,574
BEA Strategic Fixed Income Portfolio 110,184,261 89,532,851 18,143,359 1,534,174
BEA Municipal Bond Fund Portfolio 18,720,170 10,114,9 -- --
</TABLE>

For the year ended August 31, 1995, purchases include $15,177,455,
$9,617,719, $16,440,611, $15,460,482, $1,845,979, $1,801,901, and $10,370,586 of
investment securities received from shareholders in exchange for 800,255 shares,
568,745 shares, 1,074,769 shares, 1,044,980 shares, 123,891 shares, 128,341
shares, and 713,800 shares sold by the BEA International Equity Portfolio, BEA
Emerging Markets Equity Portfolio, BEA U.S. Core Equity Portfolio, BEA U.S. Core
Fixed Income Portfolio, BEA Global Fixed Income Portfolio, BEA Strategic Fixed
Income Portfolio and BEA Municipal Bond Fund Portfolio, respectively.

70
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
AUGUST 31, 1995

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

<TABLE>
<CAPTION>
BEA INTERNATIONAL EQUITY BEA EMERGING MARKETS EQUITY
PORTFOLIO PORTFOLIO
------------------------------------------------------ ------------------------------------------------------
FOR THE YEAR ENDED FOR THE YEAR ENDED FOR THE YEAR ENDED FOR THE YEAR ENDED
AUGUST 31, 1995 AUGUST 31, 1994 AUGUST 31, 1995 AUGUST 31, 1994
-------------------------- -------------------------- -------------------------- --------------------------
SHARES VALUE SHARES VALUE SHARES VALUE SHARES VALUE
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------

<S> <C> <C> <C> <C> <C> <C> <C> <C>
Shares sold 7,555,790 $141,210,504 24,447,890 $481,771,890 2,740,756 $ 45,977,774 4,675,645 $105,692,908
Shares issued in
reinvestment of
dividends 1,783,551 31,977,179 512,147 10,268,548 290,750 5,614,374 41,695 1,032,357
Shares
repurchased, net
of redemption
fees (3,955,727) (69,857,127) (2,274,120) (44,138,125) (1,493,908) (25,817,939) (190,598) (4,055,553)
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
Net increase 5,383,614 $103,330,556 22,685,917 $447,902,313 1,537,598 $ 25,774,209 4,526,742 $102,669,712
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
BEA Shares
Authorized 500,000,000 500,000,000 500,000,000 500,000,000
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
</TABLE>

<TABLE>
<CAPTION>
BEA U.S. CORE EQUITY BEA U.S. CORE FIXED INCOME
PORTFOLIO PORTFOLIO
-------------------------------- ----------------------------------------------------------
FOR THE PERIOD
SEPTEMBER 1, 1994 FOR THE FOR THE PERIOD APRIL 1, 1994
(COMMENCEMENT OF OPERATIONS) TO YEAR ENDED (COMMENCEMENT OF OPERATIONS) TO
AUGUST 31, 1995 AUGUST 31, 1995 AUGUST 31, 1994
-------------------------------- ------------------------- -------------------------------
<S> <C> <C> <C> <C> <C> <C>
Shares sold 1,883,469 $ 28,923,460 4,372,374 $64,282,193 2,905,078 $43,523,808
Shares issued in reinvestment
of dividends 7,112 102,838 229,407 3,338,279 33,914 491,074
Shares repurchased (118,327) (1,982,759) (195,402) (2,949,275) (907,066) (13,512,710)
------------ ------------ ------------ ----------- ------------ -----------
Net increase 1,772,254 $ 27,043,539 4,406,379 $64,671,197 2,031,926 $30,502,172
------------ ------------ ------------ ----------- ------------ -----------
------------ ------------ ------------ ----------- ------------ -----------
BEA Shares Authorized 500,000,000 500,000,000 500,000,000
------------ ------------ ------------
------------ ------------ ------------
</TABLE>

71
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
AUGUST 31, 1995

NOTE 4.CAPITAL SHARES (CONTINUED)
Transactions in Capital Shares for each period were as follows:
<TABLE>
<CAPTION>
BEA GLOBAL FIXED INCOME BEA STRATEGIC FIXED INCOME
PORTFOLIO PORTFOLIO
------------------------------------------------------------- ----------------------------------------
FOR THE
FOR THE FOR THE PERIOD JUNE 28, 1994 FOR THE YEAR ENDED
YEAR ENDED (COMMENCEMENT OF OPERATIONS) TO YEAR ENDED AUGUST 31,
AUGUST 31, 1995 AUGUST 31, 1994 AUGUST 31, 1995 1994
------------------------- ---------------------------------- -------------------------- ------------

<S> <C> <C> <C> <C> <C> <C> <C>
Shares sold 766,650 $11,427,093 420,000 $ 6,300,000 580,982 $ 8,824,836 2,707,420
Shares issued in
reinvestment of
dividends 61,519 924,756 -- -- 825,245 12,285,993 603,424
Shares repurchased,
net of redemption
fees -- -- -- -- (632,837) (9,662,770) (116,840)
------------ ----------- --------------- --------------- ------------ ------------ ------------
Net increase 828,169 $12,351,849 420,000 $ 6,300,000 773,390 $ 11,448,059 3,194,004
------------ ----------- --------------- --------------- ------------ ------------ ------------
------------ ----------- --------------- --------------- ------------ ------------ ------------
BEA Shares
Authorized 500,000,000 500,000,000 500,000,000 500,000,000
------------ --------------- ------------ ------------
------------ --------------- ------------ ------------

<CAPTION>
<S> <C>
Shares sold $46,530,464
Shares issued in
reinvestment of
dividends 10,123,281
Shares repurchased,
net of redemption
fees (1,906,710)
-----------
Net increase $54,747,035
-----------
-----------
BEA Shares
Authorized
</TABLE>

<TABLE>
<CAPTION>
BEA MUNICIPAL BOND
PORTFOLIO
----------------------------------------------------
FOR THE PERIOD
JUNE 20, 1994
FOR THE (COMMENCEMENT OF
YEAR ENDED OPERATIONS) TO
AUGUST 31, 1995 AUGUST 31, 1994
-------------------------- ------------------------

<S> <C> <C> <C> <C>
Shares sold 935,296 $ 13,666,897 2,820,340 $42,291,402
Shares issued in
reinvestment of
dividends 123,547 1,831,054 -- --
Shares repurchased (699,839) (10,363,925) (10,683) (161,000)
------------ ------------ ----------- -----------
Net increase 359,004 $ 5,134,026 2,809,657 $42,130,402
------------ ------------ ----------- -----------
------------ ------------ ----------- -----------
BEA Shares
Authorized 500,000,000 500,000,000
------------ -----------
------------ -----------
</TABLE>

72
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
AUGUST 31, 1995

NOTE 5.NET ASSETS
At August 31, 1995, net assets consisted of the following:

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

<S> <C> <C> <C> <C> <C> <C> <C>
Capital Paid-In $785,573,566 $146,837,410 $ 25,908,426 $ 95,173,520 $ 18,651,999 $ 169,539,044 $46,989,743
Accumulated Net
Investment Income
(Loss) (1,320,328) (456,390) 248,745 1,399,516 386,244 3,297,982 113,434
Accumulated Net
Realized Gain
(Loss) on Security
and Foreign
Exchange
Transactions (49,729,636) (14,567,615) 2,139,515 743,786 188,940 (15,893,459) (162,902)
Net Unrealized
Appreciation
(Depreciation) on
Investments and
Foreign Currency
Contracts 38,731,028 (3,490,842) 3,347,090 1,933,017 337,644 (3,322,610) 2,037,562
----------------- ------------ ------------ ------------ ------------ ------------- -------------
$773,254,630 $128,322,563 $ 31,643,776 $ 99,249,839 $ 19,564,827 $ 153,620,957 $48,977,837
----------------- ------------ ------------ ------------ ------------ ------------- -------------
----------------- ------------ ------------ ------------ ------------ ------------- -------------
</TABLE>

NOTE 6.RESTRICTED SECURITIES
Certain of the BEA International Equity Portfolio's investments are
restricted as to resale and are valued at the direction of the Fund's Board of
Directors in good faith, at fair value, after taking into consideration
appropriate indications of value available. The table below shows the number of
shares held, the acquisition date, value as of August 31, 1995, percentage of
net assets which the securities comprise, aggregate cost and unit value of the
securities.

<TABLE>
<CAPTION>
NUMBER OF ACQUISITION 08/31/95 PERCENTAGE OF VALUE PER
SHARES DATE FAIR VALUE NET ASSETS SECURITY COST UNIT
------------- ------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
Sodigas Pampeana 55 1/14/93 $ 841,061 0.1% $ 566,038 $15,292
Sodigas del Sur 55 1/14/93 742,112 0.1% 384,038 13,493
Geotek Communications,
Inc. 600 5/26/95 5,817,814 0.8% 6,000,000 9,696
------------- -------------
$ 7,400,987 $ 6,950,076
------------- -------------
------------- -------------
</TABLE>

NOTE 7.CAPITAL LOSS CARRYOVER
At August 31, 1995, capital loss carryovers were available to offset future
realized gains as follows: $15,475,847 in the BEA Strategic Fixed Income
Portfolio of which $10,489,826 expires in 2001 and $4,986,021 expires in 2003.
In addition, deferred post-October 31, 1994 losses were available to offset
future net capital gains through August 31, 1996 as follows: $18,823,744 in the
BEA Emerging Markets Equity Portfolio and $204,088 in the BEA Municipal Bond
Fund Portfolio.

73
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
AUGUST 31, 1995

NOTE 8.FORWARD FOREIGN CURRENCY CONTRACTS
The Funds will generally enter into forward foreign currency exchange
contracts as a way of managing foreign exchange rate risk. A Fund may enter into
these contracts to fix the U.S. dollar value of a security that it has agreed to
buy or sell for the period between the date the trade was entered into and the
date the security is delivered and paid for. A Fund may also use these contracts
to hedge the U.S. dollar value of securities it already owns denominated in
foreign currencies.

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

The use of forward foreign currency contracts does not eliminate
fluctuations in the underlying prices of the Fund's Portfolio Securities, but it
does establish a rate of exchange that can be achieved in the future. Although
forward foreign currency contracts limit the risk of loss due to a decline in
the value of the hedged currency, they also limit any potential gain that might
result should the value of the currency increase. In addition, the Funds could
be exposed to risks if the counterparties to the contracts are unable to meet
the terms of their contracts. During the year ended August 31, 1995, the BEA
U.S. Core Fixed Income Portfolio and the BEA Global Fixed Income Portfolio
entered into forward foreign currency contracts.

The BEA U.S. Core Fixed Income Portfolio's open Forward Foreign Currency
Contract at August 31, 1995 was as follows:

<TABLE>
<CAPTION>
FOREIGN UNREALIZED
CURRENCY FOREIGN
FORWARD CURRENCY EXPIRATION TO BE CONTRACT CONTRACT EXCHANGE
CONTRACT DATE SOLD AMOUNT VALUE GAIN
- --------------------- --------- --------- --------- --------- ---------------
<S> <C> <C> <C> <C> <C>
German Deutschemarks 09/15/95 350,000 $249,670 $238,737 $ 10,933
--------- --------- -------
--------- --------- -------
</TABLE>

The BEA Global Fixed Income Portfolio's open Forward Foreign Currency
Contracts at August 31, 1995 were as follows:

<TABLE>
<CAPTION>
UNREALIZED
FOREIGN FOREIGN
FORWARD CURRENCY EXPIRATION CURRENCY CONTRACT CONTRACT EXCHANGE
CONTRACT DATE TO BE SOLD AMOUNT VALUE GAIN/LOSS
- --------------------- --------- ----------- ----------- ----------- ---------------
<S> <C> <C> <C> <C> <C>
Australian Dollars 09/15/95 580,000 $415,367 $435,566 $ (20,199)
Denmark Krone 12/15/95 525,000 95,229 92,342 2,887
Denmark Krone 12/15/95 1,295,000 238,358 227,777 10,581
French Francs 12/15/95 2,300,000 444,659 456,219 (11,560)
French Francs 12/15/95 7,400,000 1,457,697 1,467,833 (10,136)
German Deutschemarks 09/15/95 1,320,000 941,344 900,379 40,965
Japanese Yen 09/18/95 20,000,000 240,961 205,263 35,698
Japanese Yen 09/18/95 50,000,000 575,771 513,156 62,615
Spanish Pesetas 09/15/95 20,000,000 162,668 159,840 2,828
Swedish Krona 11/15/95 3,900,000 540,780 531,755 9,025
----------- ----------- ---------------
$5,112,834 $4,990,130 $ 122,704
----------- ----------- ---------------
----------- ----------- ---------------
</TABLE>

74
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONCLUDED)
AUGUST 31, 1995

NOTE 8. FORWARD FOREIGN CURRENCY CONTRACTS (CONTINUED)

<TABLE>
<CAPTION>
FOREIGN UNREALIZED
CURRENCY FOREIGN
FORWARD CURRENCY EXPIRATION TO BE CONTRACT CONTRACT EXCHANGE
CONTRACT DATE PURCHASED AMOUNT VALUE GAIN/LOSS
- --------------------- --------- ------------ ----------- ----------- ---------------
<S> <C> <C> <C> <C> <C>
Denmark Krone 12/15/95 950,000 $165,439 $167,095 $ 1,656
French Francs 12/15/95 400,000 78,833 79,342 509
French Francs 12/15/95 1,000,000 197,083 198,356 1,273
French Francs 12/15/95 1,000,000 202,388 198,356 (4,032)
French Francs 12/15/95 8,300,000 1,636,903 1,646,355 9,452
German Deutschemarks 09/15/95 1,050,000 710,900 716,210 5,310
Italian Lira 09/15/95 155,000,000 92,098 95,288 3,190
Japanese Yen 09/18/95 60,000,000 614,754 615,787 1,033
Japanese Yen 09/18/95 70,000,000 776,191 718,419 (57,772)
Swedish Krona 11/15/95 3,200,000 431,162 436,312 5,150
----------- ----------- ---------------
$4,905,751 $4,871,520 $ (34,231)
----------- ----------- ---------------
----------- ----------- ---------------
</TABLE>

75
<PAGE>
--------------------
BEA

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

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

Annual Report
August 31, 1995