=================================
ROBERTSON
STEPHENS
MONEY MARKET PORTFOLIO
Semi-Annual Report
February 29, 1996
=================================
<PAGE>
THE SANSOM STREET FAMILY
THE RBB FUND, INC.
SEMI-ANNUAL INVESTMENT ADVISER'S REPORT
Investor sentiment reversed course during the last few months of 1995. In
the second half of the year, investors believed that the Federal Reserve had
successfully engineered a "soft landing" and expected President Clinton and
Congress to agree on a plan that would balance the federal budget by 2002. As
1996 began, however, fears of recession began to re-emerge and the budget
negotiations, which had become very intense in December and January, all but
disappeared as politics and state primaries took center stage.
The lack of economic data due to the recently ended federal government
shutdown has added to the difficulty of assessing the current economic
environment.It is clear, however, that the economy is not robust. While retail
sales over the past three months suggest that real consumer spending should be
growing at a 2.0-2.5% rate, the manufacturing economy continues to be weak, as
evidenced by the National Association of Purchasing Managers' reading below 50.
But even this indicator has stabilized, suggesting that inventory reduction
programs have run their course. Nonetheless, business confidence remains high
and firms continue to invest in producer durable goods such as computers and
machine tools. Available evidence further points to continued strength in
exports, which are benefitting from the earlier low level of the dollar and the
high quality of U.S.-produced goods. The federal government remains the weak
link in a modest growth forecast and the budget impasse only exacerbates the
effect on U.S. output as the government buys fewer goods and services.
The nation's weak economic conditions fostered a declining interest rate
environment for the six-month period ended February 29, 1996. During this
period, the Federal Reserve reduced the federal funds rate to 5.25% from 5.75%
and the discount rate to 5.00% from 5.25%. Volatile market conditions
dramatically altered the shape of the yield curve (3-months to 30-years) from a
spread of 117 points on September 1, 1995 to a steepening bias of 145 basis
points on February 29, 1996. As the treasury market rallied, lowering the yield
on the long bond to 6%, yield spreads on mortgages widened initially but by
February 29, spreads narrowed below their six-month averages. Overall, this
sector underperformed as prepayments and duration concerns increased selling
pressure. The corporate sector realized excellent returns as heavy investor
demand absorbed all new issuance plus strengthening credit quality forced yield
spreads to tighten considerably.
Taking all the sources of final demand together, modest economic growth is
still the most likely forecast -- 2.5% real GDP growth in 1996, with the first
half of the year being relatively weak and the second half of the year
strengthening. Even this modest growth is going to require some help from the
Fed. The Fed's two federal funds rate cuts of 25 basis points each in 1995 were
not enough. With the dramatic fall in long-term interest rates, the flattening
of the yield curve through 1995 is a threat to the economy and raises the
specter of recession. Some steepening is necessary, which would indicate the
addition of liquidity to the system. We expect that steepening to come from a
combination of lower short-term interest rates and slightly higher long-term
rates.
Tax-exempt money market funds experienced record growth during the six
months ended February 29, 1996. Assets hit new all-time highs in each month and
ended the period at $134.7 billion, up $19.6 billion or 17% from last year. This
surge in assets can be attributed to uncertainty over changes to the tax code
and flat tax proposals, the Washington budget impasse, new T+3 settlement rule
changes and an inverted yield curve.
Investor concerns about credit quality created enormous demand for high
quality paper during the period. The pressure on the Japanese banking system, as
well as the ratings downgrades on several Japanese banks, widened the spreads
between Japanese letters of credit and European or domestic letters of credit to
over 30 basis points.
Tax-free money fund yields trended upwards in the fourth quarter as supply
increased. Yields hit a six-month peak at year-end due to seasonal window
dressing pressures. Weaker than expected economic reports and a lack of supply
caused yields to decline early in the new year.
PNC Institutional Management Corporation
(Please dial toll-free 800-430-9618 for questions
regarding your account or contact your broker.)
<PAGE>
THE SANSOM STREET FAMILY
THE RBB FUND, INC.
MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS
FEBRUARY 29, 1996
(UNAUDITED)
PAR
(000) VALUE
------------ ------------
AGENCY OBLIGATIONS--2.5%
Student Loan Marketing Association
5.180% 03/05/96 ............................. $ 20,000 $ 20,000,000
5.190% 03/05/96 ............................. 10,000 10,000,000
5.200% 03/05/96 ............................. 25,000 24,991,857
------------
TOTAL AGENCY OBLIGATIONS
(Cost $54,991,857) ...................... 54,991,857
------------
CERTIFICATES OF DEPOSIT--8.0%
DOMESTIC CERTIFICATES OF DEPOSIT--1.4%
Society Nat Bank-Cleveland
6.400% 04/25/96 ............................. 10,000 10,012,889
Chase Manhattan Bank
USA N.A. [A-1]
5.400% 06/13/96 ............................. 20,000 20,000,000
------------
30,012,889
------------
YANKEE DOLLAR CERTIFICATES OF DEPOSIT--6.6%
Deutsche Bank
5.420% 04/05/96 ............................. 25,000 24,999,902
Societe Generale
5.450% 04/04/96 ............................. 70,000 70,000,000
5.720% 03/01/96 ............................. 25,000 25,000,000
Westpac Banking Corp.
5.850% 06/04/96 ............................. 25,000 25,000,000
------------
144,999,902
------------
TOTAL CERTIFICATES OF DEPOSIT
(Cost $175,012,791) ..................... 175,012,791
------------
BANK NOTES--2.3%
First National Bank of Boston
5.400% 05/07/96 ............................. 25,000 25,000,000
LaSalle National Bank
5.160% 05/06/96 ............................. 25,000 25,000,000
------------
TOTAL BANK NOTES
(Cost $50,000,000) ...................... 50,000,000
------------
COMMERCIAL PAPER--50.4%
BANKS--8.5%
Lehman Brothers Holdings Inc.
5.710% 03/07/96 ............................. 25,000 24,976,208
National City Corp.
5.450% 04/01/96 ............................. 30,000 29,859,208
PAR
(000) VALUE
------------ ------------
BANKS--(CONTINUED)
National & Provincial Building Society
5.670% 03/04/96 ........................... $ 35,000 $ 34,983,463
NationsBank Corp.
5.370% 04/12/96 ........................... 40,000 39,749,400
Svenska Handelsbanken Inc.
5.130% 05/06/96 ........................... 40,000 39,623,800
Chemical Banking Corp.
5.610% 03/15/96 ........................... 15,000 14,967,275
------------
184,159,354
------------
FINANCE LESSORS--2.3%
General Electric Capital Corp.
5.600% 03/28/96 ........................... 50,000 49,790,000
------------
FINANCE SERVICES--5.9%
Countrywide Funding Corp.
5.150% 05/09/96 ........................... 50,000 49,506,458
Whirlpool Financial Corp.
5.120% 05/10/96 ........................... 30,000 29,701,334
5.100% 05/14/96 ........................... 50,000 49,475,833
------------
128,683,625
------------
GLASS, GLASSWARE, PRESSED OR BLOWN--1.1%
Newell Co.
5.250% 03/18/96 ........................... 25,000 24,938,021
------------
HOUSEHOLD APPLIANCES--1.0%
Whirlpool Corp.
5.100% 05/14/96 ........................... 22,000 21,769,367
------------
NATURAL GAS TRANSMISSION--1.2%
Southern California Gas
5.560% 05/03/96 ........................... 26,155 25,900,512
------------
PERSONAL CREDIT INSTITUTIONS--6.0%
BMW US Capital Corp.
5.670% 03/01/96 ........................... 25,000 25,000,000
5.270% 03/21/96 ........................... 50,000 49,853,611
General Motors Acceptance Corp.
5.620% 03/25/96 ........................... 15,000 14,943,800
Associates Corp. of North America
5.150% 06/17/96 ........................... 42,000 41,351,100
------------
131,148,511
------------
2
<PAGE>
THE SANSOM STREET FAMILY
THE RBB FUND, INC.
MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS (CONTINUED)
FEBRUARY 29, 1996
(UNAUDITED)
PAR
(000) VALUE
---------- ------------
PHARMACEUTICAL PREPARATIONS--2.6%
American Home Products Corp.
5.110% 05/10/96 ........................... $ 25,000 $ 24,751,597
Glaxo Wellcome PLC
5.140% 05/10/96 ........................... 32,000 31,680,178
--------------
56,431,775
--------------
PLASTIC MAIL, SYNTHETIC RESIN/
RUBBER CELLULOSE - NO GLASS--1.1%
Du Pont (E.I.) de Nemours & Co.
5.580% 07/18/96 ........................... 25,000 24,461,375
--------------
SECURITY BROKERS & DEALERS--5.7%
Bear Stearns & Co., Inc.
5.550% 07/22/96 ........................... 10,000 9,779,542
Goldman Sachs Group L.P.
5.600% 04/09/96 ........................... 40,000 39,757,333
Morgan Stanley Group, Inc.
5.380% 04/08/96 ........................... 75,000 74,574,083
--------------
124,110,958
--------------
SHORT-TERM BUSINESS CREDIT INSTITUTIONS--13.8%
American Express Credit Corp.
5.390% 04/30/96 ........................... 50,000 49,550,833
CXC, Inc.
5.600% 03/05/96 ........................... 25,000 24,984,444
5.130% 06/07/96 ........................... 25,000 24,650,875
Corporate Asset Funding, Inc.
5.330% 04/29/96 ........................... 40,000 39,650,589
Corporate Receivables Corp.
5.320% 04/12/96 ........................... 50,000 49,689,666
5.150% 05/08/96 ........................... 48,000 47,533,067
Sears Roebuck Acceptance Corp.
5.620% 03/04/96 ........................... 25,000 24,988,292
5.620% 03/08/96 ........................... 40,000 39,956,289
--------------
301,004,055
--------------
TELEPHONE COMMUNICATIONS--1.2%
GTE Corp.
5.300% 03/12/96 ........................... 25,000 24,959,514
--------------
TOTAL COMMERCIAL PAPER
(Cost $1,097,357,067) ................. 1,097,357,067
--------------
PAR
(000) VALUE
-------- ------------
MUNICIPAL BONDS--5.4%
CALIFORNIA--1.0%
Adventist Health Systems West Series
1988 (First Interstate Bank of
California LOC)(DAGGER)
5.450% 03/06/96 ............................. $12,925 $12,925,000
San Bernardino County California
Certificate of Participation County
Center Refinancing Project,
Series 1995(DAGGER)
5.350% 03/07/96 ............................. 7,900 7,900,000
-----------
20,825,000
-----------
GEORGIA--0.1%
Richmond County Georgia IDA
(Monsanto Co. Project) VRDN(DAGGER)
6.270% 06/01/96 ............................. 1,300 1,300,000
-----------
ILLINOIS--0.8%
Barton Healthcare Taxable Revenue
Bonds Series 1995 VRDN (American
Nation Bank LOC)(DAGGER)
5.450% 03/06/96 ............................. 12,875 12,875,000
Baylis Group Partnership Weekly
Demand Taxable Bond Series 1992
VRDN (Societe Generale LOC)(DAGGER)
5.600% 03/06/96 ............................. 600 600,000
Illinois Health Facilities Authority
Convertible/ VRDN
(The Streeterville Corp. Project)
Series 1993-B (First National
Bank of Chicago LOC)(DAGGER)
5.400% 03/06/96 ............................. 4,400 4,400,000
-----------
17,875,000
-----------
KENTUCKY--0.2%
Boone County Taxable IDR Refunding
Bonds (Square D Company Project)
Series 1994-B (Credit Lyonnais LOC)
VRDN(DAGGER)
5.400% 03/06/96 ............................. 4,200 4,200,000
-----------
See Accompanying Notes to Financial Statements.
3
<PAGE>
THE SANSOM STREET FAMILY
THE RBB FUND, INC.
MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS (CONTINUED)
FEBRUARY 29, 1996
(UNAUDITED)
PAR
(000) VALUE
-------- ------------
MINNESOTA--0.2%
Fairview Hospital And Healthcare
Services Taxable ADJ Convertible
Extendable Securities Series 1994
(MBIA Insured) VRDN(DAGGER)
5.350% 03/07/96 ............................. $ 5,100 $ 5,100,000
-----------
MISSISSIPPI--1.0%
Hinds County, Mississippi
IDRB VRDN(DAGGER)
5.450% 03/06/96 ............................. 3,690 3,690,000
Mississippi Business Finance Corp.
Taxable IDR Bonds (Bryan Foods, Inc.
Project) Series 1994 (Sara Lee
Corporation Guaranty) VRDN(DAGGER)
5.350% 03/06/96 ............................. 14,000 14,000,000
Mississippi Business Finance Corp.
Taxable IDRB VRDN(DAGGER)
5.450% 03/07/96 ............................. 3,500 3,500,000
-----------
21,190,000
-----------
NEW YORK--0.8%
Health Insurance Plan of Greater NY
ADJ/Convertible Extendable Securities
Series 1990 B-1 (Morgan Guaranty
Trust Co. LOC) VRDN(DAGGER)
5.400% 03/06/96 ............................. 5,500 5,500,000
Health Insurance Plan of Greater NY
ADJ/Convertible Extendable Securities
VRDN(DAGGER)
5.400% 03/06/96 ............................. 6,800 6,800,000
New York City
5.340% 08/21/96 ............................. 5,000 5,000,000
-----------
17,300,000
-----------
NORTH CAROLINA--0.6%
Community Health Systems, Inc. Taxable
First National Bank of North Carolina
Series 1991-A(DAGGER)
5.650% 03/06/96 ............................. 400 400,000
City of Ashville North Carolina
Tax Corp.(DAGGER)
5.350% 03/06/96 ............................. 13,500 13,500,000
-----------
13,900,000
-----------
PAR
(000) VALUE
-------- ------------
TEXAS--0.7%
South Central Texas Industrial
Development Corp. Taxable IDR Bonds
(Rohr Industries Project) Series 1990
(Citibank N.A. LOC) VRDN(DAGGER)
5.450% 03/06/96 ........................... $14,800 $ 14,800,000
------------
TOTAL MUNICIPAL BONDS
(Cost $116,490,000) ................... 116,490,000
------------
REVENUE ANTICIPATION NOTES--0.5%
MANDATORY PUT BONDS--0.5%
De Kalb County Georgia Development
Authority (Emory U.)(DAGGER)
5.400% 03/06/96 ........................... 10,100 10,100,000
------------
TOTAL REVENUE ANTICIPATION NOTES
(Cost $10,100,000) .................... 10,100,000
------------
CORPORATE OBLIGATIONS--22.1%
BANKS--6.7%
Citicorp
9.390% 05/29/96 ........................... 5,000 5,040,993
First Union National Bank of North
Carolina(DAGGER)
5.310% 03/01/96 ........................... 40,000 40,000,000
Morgan Guaranty Trust(DAGGER)
6.200% 03/01/96 ........................... 50,000 49,988,381
Norwest Corp.(DAGGER)
5.310% 03/28/96 ........................... 50,000 50,000,000
------------
145,029,374
------------
FINANCE LESSORS--2.3%
IBM Credit Corp.
5.880% 08/08/96 ........................... 25,000 24,999,017
6.000% 08/28/96 ........................... 25,000 24,999,016
------------
49,998,033
------------
MAJOR REGIONAL BANK--0.2%
Society Corp.
4.755% 03/11/96 ........................... 3,300 3,298,487
------------
See Accompanying Notes to Financial Statements.
4
<PAGE>
THE SANSOM STREET FAMILY
THE RBB FUND, INC.
MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS (CONTINUED)
FEBRUARY 29, 1996
(UNAUDITED)
PAR
(000) VALUE
-------- ------------
PERSONAL CREDIT INSTITUTIONS--1.1%
General Motors Acceptance Corp.
6.460% 03/01/96(DAGGER) ..................... $ 5,000 $ 4,998,402
8.250% 08/01/96 ............................. 5,000 5,047,535
7.900% 03/12/97 ............................. 14,750 15,142,055
------------
25,187,992
------------
SECURITY BROKERS & DEALERS--10.8%
Bear Stearns & Co., Inc.(DAGGER)
5.610% 03/01/96 ............................. 20,000 20,000,000
5.640% 03/01/96 ............................. 50,000 50,000,000
Goldman Sachs Group, LP(DAGGER)
5.440% 05/06/96 ............................. 53,000 53,000,000
Lehman Brothers Holdings Inc.(DAGGER)
5.910% 03/06/96 ............................. 50,000 50,000,000
Merrill Lynch & Co.
6.440% 05/15/96 ............................. 15,000 15,000,000
4.750% 06/24/96 ............................. 9,135 9,102,270
6.050% 08/19/96 ............................. 15,000 15,000,000
5.120% 02/27/97 ............................. 25,000 24,995,041
------------
237,097,311
------------
SERVICES-EQUIPMENT RENTING & LEASING--1.0%
International Lease and Finance Corp.
6.630% 06/01/96 ............................. 15,000 15,036,250
4.750% 07/15/96 ............................. 6,000 5,984,509
------------
21,020,759
------------
TOTAL CORPORATE OBLIGATIONS
(Cost $481,631,956) ..................... 481,631,956
------------
TIME DEPOSITS--2.8%
Bank of Hawaii
5.690% 03/01/96 ............................. 50,000 50,000,000
First Union National Bank
5.750% 03/01/96 ............................. 11,300 11,300,000
------------
TOTAL TIME DEPOSITS
(Cost $61,300,000) ...................... 61,300,000
------------
PAR
(000) VALUE
-------- ------------
REPURCHASE AGREEMENTS--6.4%
Goldman Sachs & Co. (Agreement
dated 02/29/96 to be repurchased at
$100,015,139, collateralized by
$54,773,415 Federal National
Mortgage Assoc.6.361% due
11/01/32 and $54,484,920
Federal Mortgage Assoc. Collateral
8.375% due 10/01/24. Market value
of collateral is $102,433,103)
5.450% 03/01/96 ................... $100,000 $100,000,000
Morgan Stanley & Co. (Agreement
dated 02/29/96 to be repurchased
at $40,006,055, collateralized by
$48,127,005 Federal National
Mortgage Assoc. Sinking Fund Notes
5.50% to 9.00% due 02/01/01 to
01/01/15. Market value of
collateral is $40,749,363)
5.450% 03/01/96 ................... 40,000 40,000,000
-------------
TOTAL REPURCHASE AGREEMENTS
(Cost $140,000,000) ........... 140,000,000
-------------
See Accompanying Notes to Financial Statements.
5
<PAGE>
THE SANSOM STREET FAMILY
THE RBB FUND, INC.
MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS (CONCLUDED)
FEBRUARY 29, 1996
(UNAUDITED)
VALUE
--------------
TOTAL INVESTMENTS AT VALUE--100.4%
(Cost $2,186,883,671*) ................... $2,186,883,671
LIABILITIES IN EXCESS
OF OTHER ASSETS--(0.4%) .................. (8,847,207)
--------------
NETASSETS (Applicable to
1,112,410,124 Bedford shares,
232,617 Cash Preservation shares,
528,881,063 Janney Montgomery
Scott shares, 57,931 RBB shares,
536,478,247 Sansom Street shares
and 800 other shares)--100.0% ............ $2,178,036,464
==============
NET ASSET VALUE, offering and
redemption price per share
($2,178,036,464 (DIVIDE) 2,178,060,782) .. $1.00
=====
* Also cost for Federal income tax purposes.
(DAGGER) Variable Rate Obligations -- The interest rate shown is the rate as of
February 29, 1996 and the maturity date shown is the longer of the next
interest rate readjustment date or the date the principal amount shown
can be recovered through demand.
INVESTMENT ABBREVIATIONS
VRDN ..................................................Variable Rate Demand Note
LOC ............................................................Letter of Credit
IDR ..............................................Industrial Development Revenue
See Accompanying Notes to Financial Statements.
6
<PAGE>
THE SANSOM STREET FAMILY
THE RBB FUND, INC.
MONEY MARKET PORTFOLIO
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED
FEBRUARY 29, 1996 (UNAUDITED)
INVESTMENT INCOME
Interest .............................................. $ 56,387,329
------------
EXPENSES
Investment advisory fees .............................. 3,571,794
Distribution fees ..................................... 4,341,873
Service organization fees ............................. 207,199
Directors' fees ....................................... 12,755
Custodian fees ........................................ 157,654
Transfer agent fees ................................... 1,376,180
Legal fees ............................................ 34,361
Audit fees ............................................ 33,544
Registration fees ..................................... 195,499
Insurance expense ..................................... 24,026
Printing expense ...................................... 213,857
Miscellaneous ......................................... 957
------------
10,169,699
Less fees waived ...................................... (1,766,060)
Less expense reimbursement by advisor ................. (7,804)
------------
TOTAL EXPENSES ..................................... 8,395,835
------------
NET INVESTMENT INCOME .................................... 47,991,494
------------
REALIZED LOSS ON INVESTMENTS ............................. (3,792)
------------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS ....................................... $ 47,987,702
============
STATEMENT OF CHANGES IN NET ASSETS
FOR THE FOR THE
SIX MONTHS ENDED YEAR ENDED
FEBRUARY 29, 1996 AUGUST 31, 1995
------------------ ----------------
(UNAUDITED)
Increase (decrease) in net assets:
Operations:
Net investment income ............... $ 47,991,494 $ 64,913,329
Net loss on investments ............. (3,792) (18,463)
-------------- --------------
Net increase in net assets
resulting from operations 47,987,702 64,894,866
-------------- --------------
Distributions to shareholders:
Dividends to shareholders from
net investment income:
Bedford shares ($.0242 and
$.0486, respectively,
per share) ......................... (24,450,386) (38,765,552)
Cash Preservation shares
($.0243 and $.0487,
respectively, per share) .......... (5,156) (11,336)
Janney Montgomery Scott
shares ($.0240 and $.0112,
respectively, per share) .......... (11,766,024) (4,784,092)
RBB shares ($.0240 and
$.0482, respectively,
per share) ........................ (1,329) (2,530)
Sansom Street shares ($.0266
and $.0543, respectively,
per share) ........................ (11,768,599) (21,349,819)
-------------- --------------
Total distributions to
shareholders .................... (47,991,494) (64,913,329)
-------------- --------------
Net capital share
transactions ........................ 356,668,568 736,630,198
-------------- --------------
Total increase in net assets ........... 356,664,776 736,611,735
Net Assets:
Beginning of period ................. 1,821,371,688 1,084,759,953
-------------- --------------
End of period ....................... $2,178,036,464 $1,821,371,688
============== ==============
See Accompanying Notes to Financial Statements.
7
<PAGE>
THE SANSOM STREET FAMILY
THE RBB FUND, INC.
FINANCIAL HIGHLIGHTS (B)
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
MONEY MARKET PORTFOLIO
---------------------------------------------------------------------------------------------
FOR THE SIX FOR THE FOR THE FOR THE FOR THE FOR THE
MONTHS ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
FEBRUARY 29, AUGUST 31, AUGUST 31, AUGUST 31, AUGUST 31, AUGUST 31,
1996 1995 1994 1993 1992 1991
---------------- -------------- -------------- -------------- -------------- --------------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning
of period ..................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------------ ------------ ------------ ------------ ------------ ------------
Income from investment
operations:
Net investment income .......... 0.0266 0.0543 0.0334 0.0304 0.0435 0.0684
Net gains on securities
(both realized and
unrealized) ................... -- -- -- -- .0007 --
------------ ------------ ------------ ------------ ------------ ------------
Total from investment
operations ............... 0.0266 0.0543 0.0334 0.0304 0.0442 0.0684
------------ ------------ ------------ ------------ ------------ ------------
Less distributions:
Dividends (from net
investment income) .......... (0.0266) (0.0543) (0.0334) (0.0304) (0.0435) (0.0684)
Distributions (from
capital gains) .............. -- -- -- -- (0.0007) --
------------ ------------ ------------ ------------ ------------ ------------
Total distributions ......... (0.0266) (0.0543) (0.0334) (0.0304) (0.0442) (0.0684)
------------ ------------ ------------ ------------ ------------ ------------
Net asset value, end
of period ..................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
============ ============ ============ ============ ============ ============
Total Return ..................... 5.49%(c) 5.57% 3.39% 3.08% 4.51% 7.06%
Ratios/Supplemental Data
Net assets, end of period ...... $536,472,125 $441,613,801 $373,745,178 $190,794,098 $228,078,764 $138,417,995
Ratios of expenses to
average net assets .......... .48%(a)(c) .39%(a) .39%(a) .34%(a) .35%(a) .37%(a)
Ratios of net investment income
to average net assets ......... 5.34%(c) 5.43% 3.34% 3.04% 4.35% 6.84%
<FN>
(a) Without the waiver of advisory fees and without the reimbursement of
certain operating expenses, the ratios of expenses to average net assets
for the Money Market Portfolio would have been .64% annualized for the six
months ended February 29, 1996, .59%, .60%, .60%, .61% and .61% for the
years ended August 31, 1995, 1994, 1993, 1992 and 1991, respectively.
(b) Financial highlights relate solely to the Sansom Street Class of shares
within the portfolio.
(c) Annualized.
</FN>
</TABLE>
See Accompanying Notes to Financial Statements.
8
<PAGE>
THE SANSOM STREET FAMILY
THE RBB FUND, INC.
NOTES TO FINANCIAL STATEMENTS
FEBRUARY 29, 1996
(UNAUDITED)
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The RBB Fund, Inc. (the "Fund") is registered under the Investment Company
Act of 1940, as amended, as an open-end management investment company. The Fund
was incorporated in Maryland on February 29, 1988.
The Fund has authorized capital of thirty billion shares of common stock of
which 12.2 billion shares are currently classified into sixty-one classes. Each
class represents an interest in one of seventeen investment portfolios of the
Fund, fifteen of which are currently in operation. The classes have been grouped
into fifteen separate "families", eight of which have begun investment
operations: the RBB Family, the BEA Family, the Sansom Street Family, the
Bedford Family, the Cash Preservation Family, the Janney Montgomery Money Funds,
the Warburg Pincus Family, and the Bradford Family. The Sansom Street Family
represents interests in the Money Market Portfolio, which is covered in this
report.
A) SECURITY VALUATION -- Portfolio securities are valued under the
amortized cost method, which approximates current market value. Under this
method, securities are valued at cost when purchased and thereafter a
constant proportionate amortization of any discount or premium is recorded
until maturity of the security. Regular review and monitoring of the
valuation is performed in an attempt to avoid dilution or other unfair
results to shareholders. The Portfolio seeks to maintain net asset value
per share at $1.00.
B) SECURITY TRANSACTIONS AND INVESTMENT INCOME -- Security
transactions are accounted for on the trade date. The cost of investments
sold is determined by use of the specific identification method for both
financial reporting and income tax purposes. Interest income is recorded on
the accrual basis. Certain expenses, principally distribution, transfer
agency and printing, are class specific expenses and vary by class.
Expenses not directly attributable to a specific portfolio or class are
allocated based on relative net assets of each portfolio and class,
respectively.
C) DISTRIBUTIONS TO SHAREHOLDERS -- Dividends from net investment
income are declared daily and paid monthly. Any net realized capital gains
are distributed at least annually. Income distributions and capital gain
distributions are determined in accordance with income tax regulations
which may differ from generally accepted accounting principles.
D) FEDERAL INCOME TAXES -- No provision is made for Federal taxes
as it is the Fund's intention to have each portfolio continue to qualify
for and elect the tax treatment applicable to regulated investment
companies under the Internal Revenue Code and make the requisite
distributions to its shareholders which will be sufficient to relieve it
from Federal income and excise taxes.
E) REPURCHASE AGREEMENTS -- Money market instruments may be
purchased subject to the seller's agreement to repurchase them at an agreed
upon date and price. The seller will be required on a daily basis to
maintain the value of the securities subject to the agreement at not less
than the repurchase price. The agreements are conditioned upon the
collateral being deposited under the Federal Reserve book-entry system or
with the Fund's custodian or a third party sub-custodian.
F) USE OF ESTIMATES -- The preparation of financial statements in
conformity with generally accepted accounting principles requires
management to make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosure of contingent assets and
liabilities at the date of the financial statements and the reported
amounts of revenues and expenses during the reporting period. Actual
results could differ from those estimates.
9
<PAGE>
THE SANSOM STREET FAMILY
THE RBB FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FEBRUARY 29, 1996
(UNAUDITED)
NOTE 2. TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES
Pursuant to Investment Advisory Agreements, PNC Institutional Management
Corporation ("PIMC"), a wholly owned subsidiary of PNC Asset Management Group,
Inc., which is in turn a wholly-owned subsidiary of PNC Bank, National
Association ("PNC Bank"), serves as investment advisor for the portfolio
described herein. PNC Bank serves as the sub-advisor for the Money Market
Portfolio.
For its advisory services, PIMC is entitled to receive the following fees,
computed daily and payable monthly based on the portfolio's average daily net
assets:
.45% of first $250 million of net assets;
.40% of next $250 million of net assets;
.35% of net assets in excess of $500 million.
PIMC may, at its discretion, voluntarily waive all or any portion of its
advisory fee for this portfolio. For each class of shares within a respective
portfolio, the net advisory fee charged to each class is the same on a relative
basis. For the six months ended February 29, 1996, advisory fees and waivers for
the investment portfolio were as follows:
GROSS NET
ADVISORY ADVISORY
FEE WAIVER FEE
------------ ------------ ------------
$3,571,794 $(1,589,182) $1,982,612
PNC Bank, as sub-advisor, receives a fee directly from PIMC, not the
portfolio. In addition, PNC Bank serves as custodian for the Fund's portfolios.
PFPC Inc. ("PFPC"), an indirect wholly owned subsidiary of PNC Bank Corp.,
serves as each class's transfer and dividend disbursing agent.
PFPC may, at its discretion, voluntarily waive all or any portion of its
transfer agency fee for any class of shares. For the six months ended February
29, 1996, transfer agency fees and waivers for each class of shares within the
investment portfolio were as follows:
GROSS NET
TRANSFER AGENCY TRANSFER AGENCY
FEE WAIVER FEE
---------------- ------------- ---------------
Bedford Class $ 760,533 $ -- $ 760,533
Cash Preservation Class 4,608 (4,307) 301
Janney Montgomery Scott Class 481,520 (168,268) 313,252
RBB Class 4,400 (4,303) 97
Sansom Street Class 125,119 -- 125,119
----------- ----------- ------------
Total $1,376,180 $(176,878) $1,199,302
=========== =========== ============
The Fund, on behalf of each class of shares within this investment
portfolio, has adopted Distribution Plans pursuant to Rule 12b-1 under the
Investment Company Act of 1940, as amended, and has entered into Distribution
Contracts with Counsellors Securities Inc. ("Counsellors") which provide for
each class to make monthly payments, based on average net assets, to Counsellors
of up to .65% on an annualized basis for the Bedford, Cash Preservation, Janney
Montgomery Scott and RBB Classes and up to .20% on an annualized basis for the
Sansom Street Class.
10
<PAGE>
THE SANSOM STREET FAMILY
THE RBB FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FEBRUARY 29, 1996
(UNAUDITED)
NOTE 2. TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES (CONTINUED)
For the six months ended February 29, 1996, distribution fees for each
class were as follows:
DISTRIBUTION
FEE
----------
Bedford Class $2,730,852
Cash Preservation Class 422
Janney Montgomery Scott Class 1,463,057
RBB Class 110
Sansom Street Class 147,432
----------
Total $4,341,873
==========
The Fund has entered into service agreements with banks affiliated with PNC
Bank who render support services to customers who are the beneficial owners of
the Sansom Street Class in consideration of the payment of .10% of the daily net
asset value of such shares. For the six months ended February 29, 1996 service
organization fees were $207,199 for the Money Market Portfolio.
NOTE 3. CAPITAL SHARES
Transactions in capital shares (at $1.00 per capital share) for each period
were as follows:
FOR THE FOR THE
SIX MONTHS ENDED YEAR ENDED
FEBRUARY 29, 1996 AUGUST 31, 1995
------------------- -------------------
(UNAUDITED)
VALUE VALUE
---------------- ----------------
Shares sold:
Shares sold:
Bedford Class $1,912,107,897 $2,966,911,277
Bradford Class -- --
Cash Preservation Class 76,761 84,527
Janney Montgomery Scott Class 1,126,947,114 855,058,809
RBB Class 6,693 31,504
Sansom Street Class 946,518,676 1,864,628,110
Shares issued in reinvestment of
dividends:
Bedford Class 24,390,767 37,681,204
Bradford Class -- --
Cash Preservation Class 5,178 11,226
Janney Montgomery Scott Class 11,597,010 4,534,944
RBB Class 1,340 2,500
Sansom Street Class 8,591,868 16,689,941
Shares repurchased:
Bedford Class (1,759,920,802) (2,779,499,052)
Bradford Class -- --
Cash Preservation Class (84,987) (91,268)
Janney Montgomery Scott Class (1,053,312,158) (415,944,656)
RBB Class (5,503) (23,917)
Sansom Street Class (860,251,286) (1,813,444,951)
-------------- --------------
Net increase (decrease) $ 356,668,568 $ 736,630,198
============== ==============
Sansom Street Shares authorized 1,000,000,000 1,000,000,000
============== ==============
11
<PAGE>
THE SANSOM STREET FAMILY
THE RBB FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FEBRUARY 29, 1996
(UNAUDITED)
NOTE 4. NET ASSETS
At February 29, 1996, net assets consisted of the following: (Unaudited)
Capital paid-in:
Bedford Class $1,112,410,124
Cash Preservation Class 232,617
Janney Montgomery Scott Class 528,881,063
RBB Class 57,931
Sansom Street Class 536,478,247
Other Classes 800
Accumulated net realized gain loss
on investments:
Bedford Class (12,775)
Cash Preservation Class (2)
Janney Montgomery Scott Class (5,419)
RBB Class --
Sansom Street Class (6,122)
--------------
$2,178,036,464
==============
12
<PAGE>
THE SANSOM STREET FAMILY
THE RBB FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FEBRUARY 29, 1996
(UNAUDITED)
NOTE 5. OTHER FINANCIAL HIGHLIGHTS
The Fund currently offers four other classes of shares representing
interest in the Money Market Portfolio: Bedford, Cash Preservation, Janney
Montgomery Scott and RBB. Each class is marketed to different types of
investors. Financial Highlights of the RBB and Cash Preservation classes are not
presented in this report due to their immateriality. Such information is
available in the annual reports of each respective family. The financial
highlights of certain of the other classes are as follows:
THE BEDFORD FAMILY
<TABLE>
<CAPTION>
FOR THE SIX FOR THE FOR THE FOR THE FOR THE FOR THE
MONTHS ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
FEBRUARY 29, AUGUST 31, AUGUST 31, AUGUST 31, AUGUST 31, AUGUST 31,
1996 1995 1994 1993 1992 1991
-------------- ------------ ------------ ------------ ------------ -----------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period.. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------- ------- ------- ------- ------- -------
Income from investment operations:
Net investment income............... 0.0242 0.0486 0.0278 0.0243 0.0375 0.0629
Net gains on securities
(both realized and unrealized)..... -- -- -- -- .0007 --
------- ------- ------- ------- ------- -------
Total from investment operations.. 0.0242 0.0486 0.0278 0.0243 0.0382 0.0629
------- ------- ------- ------- ------- -------
Less distributions:
Dividends (from net investment
income)........................... (0.0242) (0.0486) (0.0278) (0.0243) (0.0375) (0.0629)
Distributions (from capital gains).. -- -- -- -- (.0007) --
------- ------- ------- ------- ------- -------
Total distributions.............. (0.0242) (0.0486) (0.0278) (0.0243) (0.0382) (0.0629)
------- ------- ------- ------- ------- -------
Net asset value, end of period........ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======= ======= ======= ======= ======= =======
Total Return.......................... 4.98%(b) 4.97% 2.81% 2.46% 3.89% 6.48%
Ratios/Supplemental Data
Net assets, end of period........... $1,112,397,349 $935,821,424 $710,737,481 $782,153,438 $736,841,928 $747,530,400
Ratios of expenses to average
net assets ....................... .97%(a)(b) .96%(a) .95%(a) .95%(a) .95%(a) .92%(a)
Ratios of net investment income
to average net assets............. 4.85%(b) 4.86% 2.78% 2.43% 3.75% 6.29%
<FN>
(a) Without the waiver of advisory and without the reimbursement of certain
operating expenses, the ratios of expenses to average net assets for the
Money Market Portfolio would have been 1.13% annualized for the six months
ended February 29, 1996, 1.17%, 1.16%, 1.19%, 1.20% and 1.17% for the years
ended August 31, 1995, 1994, 1993, 1992 and 1991, respectively.
(b) Annualized.
</FN>
</TABLE>
13
<PAGE>
THE SANSOM STREET FAMILY
THE RBB FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONCLUDED)
FEBRUARY 29, 1996
(UNAUDITED)
NOTE 5. OTHER FINANCIAL HIGHLIGHTS (CONTINUED)
THE JANNEY MONTGOMERY SCOTT MONEY FUNDS
FOR THE PERIOD
JUNE 12, 1995
FOR THE (COMMENCEMENT OF
SIX MONTHS ENDED OPERATIONS) TO
FEBRUARY 29, 1996 AUGUST 31, 1995
----------------- ----------------
(UNAUDITED)
Net asset value, beginning of period . $ 1.00 $ 1.00
----------- -----------
Income from investment operations:
Net investment income .............. 0.0240 0.0112
----------- -----------
Total from investment operations . 0.0240 0.0112
----------- -----------
Less distributions:
Dividends (from net investment income) (0.0240) (0.0112)
----------- -----------
Total distributions .............. (0.0240) (0.0112)
----------- -----------
Net asset value, end of period ....... $ 1.00 $ 1.00
=========== ===========
Total Return ......................... 4.94%(b) 5.30%(b)
Ratios/Supplemental Data
Net assets, end of period .......... $528,875,644 $443,644,599
Ratios of expenses to average
net assets ....................... 1.00%(a)(b) 1.00%(a)(b)
Ratios of net investment income to
average net assets ............... 4.82%(b) 5.04%(b)
(a) Without the waiver of advisory and transfer agent fees and without the
reimbursement of certain operating expenses, the ratios of expenses to
average net assets for the Money Market Portfolio would have been 1.23%
annualized for the six months ended February 29, 1996 and 1.23% annualized
for the period ended August 31, 1995.
(b) Annualized.
14
