<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
PORTFOLIO MANAGER'S LETTER
FEBRUARY 29, 1996
BEA INTERNATIONAL EQUITY PORTFOLIO
April 16, 1996
Dear Shareholders:
We are pleased to report on the results of the BEA International Equity
Portfolio (the "Portfolio") for the six-months ended February 29, 1996.
At February 29, 1996, the Portfolio's net asset value (NAV) was $19.20
compared to $18.24 at August 31, 1995. As a result, the Portfolio's total return
(assuming reinvestment of dividends) was 5.66%, compared with 7.04% for the MSCI
EAFE Index. For the quarter ended February 29, 1996, the Portfolio's return was
7.42% compared to 4.89% for the Index.
PORTFOLIO REVIEW
There were several key factors which helped bolster the Portfolio's
performance during the quarter ended February 29, 1996. These included the
Portfolio's underweight exposure to the Japanese market, which barely advanced
during the quarter; its overweight position in Latin America and Asian markets
which handily outperformed the EAFE Index; the Portfolio's currency hedge with
respect to French, German, Japanese and Swiss currencies which weakened during
the quarter, and a favorable stock selection in Europe, Latin America and
Developed Asia (EAFE Asia).
There were, however, some factors which hurt the Portfolio's performance
relative to the Index including the Portfolio's underweight exposure to European
equity markets, which outperformed the EAFE index by a relatively narrow margin
during the quarter, unfavorable stock selection in Japan and emerging Asian
markets, and a modest negative currency return in Latin America and other
emerging markets, notably South Africa.
CURRENT OUTLOOK AND STRATEGY
We believe that the global interest rate environment remains benign for
global equity markets in general and the emerging markets in particular. Market
participants have become increasingly concerned about the possibility of
interest rate hikes by the Fed later this year, but such fears appear
exaggerated. Overseas, we anticipate further easing by European central banks
and several more quarters of low interest rates in Japan.
In view of the sharp rise in emerging markets in the first quarter,
valuations have become less compelling relative to the EAFE markets, though they
remain attractive by historical standards. Accordingly we are making the several
adjustments to our portfolios. These include cutting our exposure to emerging
markets from roughly 30% to 25% based on modest reductions to Argentina, Chile
and Israel. We are increasing our exposure to European equity markets which we
think are attractively valued and will benefit from further monetary easing. In
addition, we remain significantly under-exposed to the Japanese market, which
remains unattractive on most valuation criteria, despite a positive liquidity
backdrop. Finally, we recently have taken profits on our currency hedges against
Japanese and European currencies on the view that the market's expectations for
continued strength of the U.S. currency are overdone, that the current U.S.
account problems persist, and that U.S. policy makers will not want to encourage
excessive dollar strength.
1
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
PORTFOLIO MANAGER'S LETTER--(CONTINUED)
FEBRUARY 29, 1996
As developments occur in the 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
any questions, please feel free to call us at any time.
Sincerely yours,
BEA International Equities Management Team
William P. Sterling, Managing Director
Emilio Bassini, Executive Director
Stephen M. Swift, Managing Director
Richard Watt, Senior Vice President
Steven D. Bleiberg, Senior Vice President
Stephen R. Waite, Vice President
Ian Borsook, Vice President
2
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
PORTFOLIO MANAGER'S LETTER--(CONCLUDED)
FEBRUARY 29, 1996
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 16.85%
From Inception 9.70%
</TABLE>
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
MORGAN STANLEY
<S> <C> <C>
BEA
International Composite Index
Dates Equity Portfolio EAFE
10/01/92 $10,000 $10,000
11/30/92 $9,685 $9,571
02/28/93 $9,906 $9,918
05/31/93 $11,218 $12,062
08/31/93 $12,159 $12,962
11/30/93 $12,120 $11,928
02/28/94 $13,783 $13,841
05/31/94 $12,999 $13,735
08/31/94 $13,891 $14,405
11/30/94 $13,080 $13,732
02/28/95 $11,435 $13,258
05/31/95 $12,500 $14,451
08/31/95 $12,773 $14,517
11/30/95 $12,564 $14,815
02/29/96 $13,363 $15,539
</TABLE>
Note: Past performance is not predictive of future performance. Average Annual
Total Returns are net of 1.00% redemption fees.
3
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
PORTFOLIO MANAGER'S LETTER
FEBRUARY 29, 1996
BEA EMERGING MARKETS EQUITY PORTFOLIO
April 23, 1996
Dear Shareholders:
We are pleased to report on the results of the BEA Emerging Markets Equity
Portfolio (the "Portfolio") for the six-months ended February 29, 1996.
At February 29, 1996, the net asset value (NAV) of the Portfolio was $17.99
compared to an NAV of $17.67 at August 31, 1995. As a result, the Portfolio's
total return (assuming reinvestment of dividends) was 2.14%. In comparison, the
MSCI Emerging Markets Free Index gained 3.48% during the same period.
During the past few months, there were several important influences on the
emerging markets. These included concerns over the future direction of global
monetary policy: in particular, unexpected evidence of more robust activity in
the U.S. In addition, there were a number of specific political developments
within several emerging countries which resulted in significant levels of market
volatility. These included the hostile stance adopted by China toward Taiwan,
worries over the re-election chances for Boris Yeltsin in Russia, and political
tensions in both Argentina and Brazil.
PORTFOLIO REVIEW
Substantial changes were implemented recently to the Portfolio which
resulted in a markedly different structure at both the regional and country
level. These were motivated principally by a desire to lock in gains achieved in
the Latin-American markets. As a result, the weighting in Latin American markets
was reduced sharply, from a substantial overweighting to a broadly neutral
stance relative to the benchmark. Positions in Argentina, which had appreciated
significantly since early December, and Chile were reduced, while the weighting
in Brazil was increased.
The Portfolio's exposure to Asian markets was sharply increased, reversing
an underweight stance that had been in place for some time. In particular, we
substantially increased the Portfolio's exposure to Malaysia and Indonesia, and
while also adding to India, Singapore and Thailand. In addition, fresh funds
were allocated to South Africa, particularly towards commodity stocks which we
believe will prove to be a rewarding strategy.
More recently, there have been several factors which have had a positive
impact on the Portfolio's performance relative to the MSCI Emerging Markets Free
Index. These include our overweight stance in Brazil, which outperformed the
benchmark, and superior stock selection within that market. This was mainly due
to our increased exposure to companies partially owned by the state (primarily
electric and telephone utilities) which we perceived would benefit enormously
from a combination of privatization and tariff reforms. In addition, our
decision to bias holdings toward domestic demand-sensitive stocks in Mexico paid
off handsomely, while still maintaining a neutral weighting to that of the
benchmark.
Other factors which helped enhance performance include the Portfolio's
exposure to Hong Kong, a non benchmark market, our stock selection in Israel and
particularly Thailand, where we maintained an overweight position in the banking
sector; and finally a positive contribution from currencies across the
portfolio.
There were also a few policies which were not so successful. These include
our underweight position in Malaysia which we believed was appropriate due to
high valuations and modest earnings prospects; our decision to be out of Turkey
completely, based upon concerns
4
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
PORTFOLIO MANAGER'S LETTER--(CONTINUED)
FEBRUARY 29, 1996
over political developments and what we considered to be major structural
problems in the local economy; and our underweighting in Indonesia. This stemmed
mainly from our decision not to participate in a successful new listing of the
local telecommunications company, which subsequently performed very well.
CURRENT OUTLOOK AND STRATEGY
Turning finally to the near term prospects for emerging markets, it is clear
that certain influences will be crucial: global liquidity conditions are likely
to remain a key determinant of market performance. Our central view is that,
despite the current concern stemming from recent data reported in the U.S., we
expect a continuation of monetary easing around the world. This remains a very
positive background. We believe that the Latin-American markets are the likely
to be the main beneficiaries of such a trend. Despite this, we are concerned
that the recovery from the Mexican peso debacle remains delicate and could be
vulnerable to any adverse developments.
Elsewhere, we see some easing of previous tensions stemming from China's
stance on Taiwan. With elections out of the way, relations should improve. This
should be good news for Taiwan, Hong Kong and other Asian markets. In addition,
we see some merit in South African equities, particularly the commodity stocks,
which are major beneficiaries of recent weakness in the Rand. They should also
benefit as world economic activity increases through 1997.
Finally, sentiment appears to be improving towards emerging markets, and
with valuations still low relative to expected growth rates, we anticipate that
investment flows should continue to increase during the coming quarter.
As developments occur in the 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 us at any time.
Sincerely yours,
BEA International Equities Management Team
William P. Sterling, Managing Director
Emilio Bassini, Executive Director
Stephen M. Swift, Managing Director
Richard Watt, Senior Vice President
Steven D. Bleiberg, Senior Vice President
Stephen R. Waite, Vice President
Ian Borsook, Vice President
5
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
PORTFOLIO MANAGER'S LETTER--(CONCLUDED)
FEBRUARY 29, 1996
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 11.63%
From Inception 7.99%
</TABLE>
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
MORGAN STANLEY
<S> <C> <C>
BEA Emerging Markets Composite Index-Free
Dates Equity Portfolio Emerging Markets
02/01/93 $10,000 $10,000
02/28/93 $10,027 $10,159
05/31/93 $10,815 $10,923
08/31/93 $12,377 $12,443
11/30/93 $14,653 $14,648
02/28/94 $17,078 $17,058
05/31/94 $14,839 $15,724
08/31/94 $16,832 $18,257
11/30/94 $15,879 $17,189
02/28/95 $11,460 $13,765
05/31/95 $12,677 $15,243
08/31/95 $12,720 $15,263
11/30/95 $11,835 $14,349
02/29/96 $12,797 $15,795
</TABLE>
Note: Past performance is not predictive of future performance. Average Annual
Total Returns are net of 1.50% redemption fees.
6
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
PORTFOLIO MANAGER'S LETTER
FEBRUARY 29, 1996
BEA U.S. CORE EQUITY PORTFOLIO
April 23, 1996
Dear Shareholders:
We are pleased to report on the results of the BEA U.S. Core Equity
Portfolio (the "Portfolio") for the six-months ended February 29, 1996.
At February 29, 1996, the net asset value (NAV) of the Portfolio was $18.86
compared to an NAV of $17.86 at August 31, 1995. As a result, the Portfolio's
total return (assuming reinvestment of dividends and distributions) was 16.41%.
In comparison, the S&P 500 Index gained 15.30% and the Wilshire 5000 Index,
which provides a broader measure of the market, gained 13.75% during the same
period. Since the Portfolio's inception, its total return (assuming reinvestment
of dividends and distributions) was 39.40%, the S&P 500 Index gained 40.08%, and
the Wilshire 5000 Index gained 38.72%.
The U.S. stock market continued to rally during the first quarter of 1996.
Remarkably, the S&P 500 has not had a significantly negative month since
November of 1994, and the market is now up by nearly 50% since the beginning of
1995. So far in 1996, too, we have seen 24 days in which the Dow moved by 50
points or more (compared with 28 such days in all of 1995). During the first
quarter, the market has been more volatile than at any other time in the last
four years. Nonetheless, this increase in volatility is not an aberration, but a
return in the direction of the historical norm: the first half of the 1990s were
characterized by abnormally-low market volatility.
By some measures -- particularly the price-to-book ratio -- the U.S. market
is now quite richly valued. However, we continue to believe that the fundamental
picture for U.S. equities remains generally positive. However, a series of
surprisingly positive economic statistics -- which culminated in the strong job
creation numbers released early in March (and again at the beginning of April)--
have sparked significant changes in investor sentiment. Whereas the consensus
scenario only a couple of months ago was one of slow growth and declining short
rates, many investors are now perceiving quite the opposite. The consensus now
appears to see strong growth in the U.S., with potential hints (read that,
rising fears) of inflationary pressures. Out of this revised view comes an
expectation of no further easing moves from the Federal Reserve; on the
contrary, the bond market is now pricing in monetary tightening in the remainder
of the year. The effect on the equity market has largely been to perpetuate the
recent rise we have seen in short-term price volatility.
We believe that the market consensus is overestimating the recovery of
economic activity in the U.S. Despite the recent employment numbers, overall the
statistics remain ambiguous, and we believe that the economy remains sluggish.
While the market's expectation of flat interest rates is perhaps a
self-fulfilling prophecy in the short term -- the Fed is now unlikely to ease
during the next few months -- we believe that the economy's persistent weakness
will become apparent by mid-year, leading to further rate reductions during the
second half. During the next few quarters, earnings are likely to provide
surprises on the downside, as the market learns the hard way that economic
activity is still generally weak. In this scenario, cyclical stocks -- which
have recently marched back into the market's favor -- will feel downward
pressure, and interest rate-sensitive sectors and growth stocks will move back
into favor.
Most importantly, a continued slow-growth environment will keep the pressure
on American companies to eliminate excess jobs, shed unprofitable businesses,
and make strategic acquisitions. We will continue to pursue the identification
of such "restructuring" stories, as well as on companies actively pursuing
global unit growth, i.e., firms that have worldwide opportunities to get
business. We remain underweight, meanwhile, in the technology sector. While this
has cost us a bit of performance over the past year or so, we continue to feel
that valuations in this sector are dramatically stretched. We believe that our
underweight technology exposure positions us well for the remainder of 1996. We
have also hedged our bets slightly in commodities by holding a position of
approximately 13% in oil and oil reserve companies. This helped bolster the
first quarter returns.
7
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
PORTFOLIO MANAGER'S LETTER--(CONTINUED)
FEBRUARY 29, 1996
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 & Executive Director
John B. Hurford, Managing Director
Todd M. Rice, Vice President
James A. Abate, Senior Portfolio Manager
Christopher C. Thompson, Vice President
William B. Sterling, Managing Director
Ian Borsook, Vice President
Stephen R. Waite, Vice President
8
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
PORTFOLIO MANAGER'S LETTER--(CONCLUDED)
FEBRUARY 29, 1996
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
One Year 35.98%
From Inception 39.40%
</TABLE>
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
S & P 500
<S> <C> <C>
BEA U.S. Core Weighted Yield
Equity
Dates Portfolio Average Index
09/01/94 $10,000 $10,000
11/30/94 $9,553 $9,615
02/28/95 $10,251 $10,398
05/31/95 $11,103 $11,455
08/31/95 $11,975 $12,149
11/30/95 $12,746 $13,168
02/29/96 $13,940 $14,007
</TABLE>
Note: Past performance is not predictive of future performance.
9
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
PORTFOLIO MANAGER'S LETTER
FEBRUARY 29, 1996
BEA U.S. CORE FIXED INCOME PORTFOLIO
April 23, 1996
Dear Shareholders:
We are pleased to report on the results of the BEA U.S. Core Fixed Income
Portfolio (the "Portfolio") for the six-months ended February 29, 1996.
At February 29, 1996, the net asset value (NAV) of the Portfolio was $15.38
compared to an NAV of $15.42 at August 31, 1995. As a result, the Portfolio's
total return (assuming reinvestment of dividends and distributions) was 4.62%.
In comparison, the Lehman Brothers Aggregate Index gained 4.12% during the same
period. Since the Portfolio's inception, its total return (assuming reinvestment
of dividends and distributions) was 15.91% compared to 17.15% for the Index. ,
MARKET COMMENTARY
The U.S. bond market -- largely followed by the rest of the world -- behaved
so far this year much as it did in the first quarter of 1994. That year, the
U.S. government long-term bond posted its worst losses since 1927 as inflation
fears surged and central banks around the world boosted interest rates
aggressively. The yield on the 30-year U.S. Treasury bond soared from below 6%
to over 8% as bond prices plummeted. Fortunately, most of the bond-market losses
of 1994 were reversed in 1995 as global growth slowed and inflation fears eased.
Since mid-February this year, bond yields in the U.S. have shot up from just
under 6% to around 6.7% (and in early April, to nearly 7%). Disappointment about
U.S. budget cutting efforts and a sharp change in investor sentiment toward a
strong economy scenario have been key factors behind the bond market setback.
Many investors are now wary that we are poised for a repeat of 1994. As a
result, the market is no longer discounting two 25 basis point U.S. rate
reductions over the next few months; instead, current prices reflect an
expectation for some tightening. We think that the consensus is off the mark.
While economic activity may indeed have picked up to some extent -- and we
believe that even this has been somewhat overstated -- inflation is, to our
mind, not a meaningful threat at this point. If anything, we think the risks are
that the economy could be weaker rather than stronger in the second half of the
year.
The fact is that the Fed tightened monetary policy drastically in 1994 and
early 1995 when it doubled the level of short-term interest rates from 3% to 6%.
It has since cut interest rates by a paltry 0.75%, which is unlikely to undo in
a short period of time the negative effects of the previous round of rate hikes.
By many measures, the Fed's monetary policy is still moderately restrictive. We
believe that bonds are likely to rally significantly later in the year as market
participants move back toward a scenario of further Fed easing.
PORTFOLIO/PERFORMANCE REVIEW
Mortgages were the best-performing fixed income sector over the past quarter
posting a return of -0.44% while corporates lagged at -2.58%. Mortgage
securities are at historically cheap levels, while corporate bond spreads remain
extremely tight, and have been steady for nearly two years.
BEA's stance in the corporate sector remains defensive, in light of several
indications that growth in corporate profits may be fading. We are now in the
sixty-first month of the current business expansion; the average period of
expansion in the postwar era has lasted only fifty months. Corporate profits
peaked relative to economic growth during the second quarter of 1995, while the
ratio of rating agency upgrades to downgrades also peaked last year.
In the mortgage sector, we are currently emphasizing discount coupons,
because prepayment protection in these issues is particularly undervalued.
Call-protected Commercial Mortgage-Backed Securities also offer excellent value
relative to corporates.
10
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
PORTFOLIO MANAGER'S LETTER--(CONTINUED)
FEBRUARY 29, 1996
Looking forward, our mortgage overweighting strategy should benefit when
nervous buyers return to this undervalued sector. Our primary concerns for the
next three to six months are focused on the potential for continued negative
surprises, in light of the recent backup in interest rates. This could result in
a continued increase in interest rate volatility, and consequently lower
liquidity. Our current modest weighting in below investment grade bonds (and in
corporates in general) reflects this higher probability, and leaves the
portfolio with "dry powder" should opportunities arise.
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
Misia Dudley, Senior Vice President
William P. Sterling, Managing Director
Mark K. Silverstein, Senior Vice President
Robert W. Justich, Senior Vice President
Marianne Rossi, Senior Vice President
Ian Borsook, Vice President
Stephen R. Waite, Vice President
11
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
PORTFOLIO MANAGER'S LETTER--(CONCLUDED)
FEBRUARY 29, 1996
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 13.59%
From Inception 15.91%
</TABLE>
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
BEA U.S. Core Fixed Lehman Brothers
<S> <C> <C>
Dates Income Portfolio Aggregate Index
04/01/94 $10,000 $10,000
05/31/94 $9,913 $9,999
08/31/94 $10,017 $10,188
11/30/94 $9,812 $10,007
02/28/95 $10,204 $10,520
05/31/95 $10,864 $11,148
08/31/95 $11,078 $11,342
11/30/95 $11,475 $11,775
02/29/96 $11,590 $11,809
</TABLE>
Note: Past performance is not predictive of future performance.
12
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
PORTFOLIO MANAGER'S LETTER
FEBRUARY 29, 1996
BEA GLOBAL FIXED INCOME PORTFOLIO
April 23, 1996
Dear Shareholders:
We are pleased to report on the results of the BEA Global Fixed Income
Portfolio (the "Portfolio") for the six-months ended February 29, 1996.
At February 29, 1996, the net asset value (NAV) of the Portfolio was $15.76
compared to an NAV of $15.67 at August 31, 1995. As a result, the Portfolio's
total return (assuming reinvestment of dividends and distributions) was 5.39%.
In comparison, the J.P. Morgan Global Government Bond Index (unhedged) gained
4.00% during the same period. Since the Portfolio's inception, its total return
(assuming reinvestment of dividends and distributions) was 16.68% compared to
19.57% for the Index.
The strong bond markets we enjoyed during 1995 continued in January, but did
not hold into February and March, as most of the major markets -- and the
emerging markets as well --turned downward. The key to changing investor
sentiment was the U.S. interest rate environment, and investor concerns as to
whether or not additional monetary easing is on the horizon. As a result, the
U.S. bond market -- largely followed by the rest of the world -- behaved so far
this year much as it did in the first quarter of 1994. That year, the U.S.
government long-term bond posted its worst losses since 1927 as inflation fears
surged and central banks around the world boosted interest rates aggressively.
The yield on the 30-year U.S. Treasury bond soared from under 6% to over 8% as
bond prices plummeted. Fortunately, most of the bond-market losses of 1994 were
reversed in 1995 as global growth slowed and inflation fears eased.
Since mid-February this year, bond yields in the U.S. have shot up from just
below 6% to around 6.7% (and in early April, to nearly 7%). Disappointment about
U.S. budget cutting efforts and a sharp change in investor sentiment toward a
strong economic scenario have been key factors behind the bond market setback.
Many investors are now wary that we are poised for a repeat of 1994. As a
result, the market is no longer discounting two 25 basis point U.S. rate
reductions over the next few months; instead, current prices reflect an
expectation for some tightening. We think that this consensus is off the mark.
While economic activity may indeed have picked up to some extent -- and we
believe that even this has been somewhat overstated -- inflation is, to our
mind, not a meaningful threat at this point. If anything, we think the risks are
that the economy could be weaker rather than stronger in the second half of the
year.
The fact is that the Fed tightened monetary policy drastically in 1994 and
early 1995 when it doubled the level of short-term interest rates from 3% to 6%.
It has since cut interest rates by a paltry 0.75%, which is unlikely to undo in
a short period of time the negative effects of the previous round of rate hikes.
By many measures, the Fed's monetary policy is still moderately restrictive. We
believe that bonds are likely to rally significantly later in the year as market
participants move back toward a scenario of further Fed easing.
We continue to be bullish on the higher-quality European markets, where
sluggish economic growth should lead to continued declining rates, independent
of whatever occurs with U.S. rates. Early in the year, for example, German bond
prices reflected an expectation of 10 basis points of easing in 1996, while at
quarter-end the German market is now pricing in monetary tightening in the
second or third quarter. Even more than in the U.S., we believe that this is
overly pessimistic, and that German rates will come down later in the year....In
our view, therefore, German bonds (and thus bonds in the other major European
markets) are cheap, and we are
gradually adding to our holdings in these markets. Meanwhile, it remains our
view that the high-yielding European markets (Italy, Spain, Sweden, etc.) are
becoming rich, and we continue to gravitate toward higher-quality European
markets. The emerging debt markets should also fare well in an environment of
expanding global liquidity during the remainder of 1996.
The portfolio's currency position remains essentially unchanged, although
with the recent renewal of U.S. dollar appreciation (up to 107.5 yen at
month-end) we think that the dollar's rally may well have run its course for the
time being.
13
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
PORTFOLIO MANAGER'S LETTER--(CONTINUED)
FEBRUARY 29, 1996
As developments occur in the global 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
Misia Dudley, Senior Vice President
William P. Sterling, Managing Director
Mark K. Silverstein, Senior Vice President
Robert W. Justich, Senior Vice President
Marianne Rossi, Senior Vice President
Ian Borsook, Vice President
Stephen R. Waite, Vice President
14
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
PORTFOLIO MANAGER'S LETTER--(CONCLUDED)
FEBRUARY 29, 1996
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 13.58%
From Inception 16.68%
</TABLE>
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
JP MORGAN
<S> <C> <C>
BEA Global Fixed Global Govt.
Dates Income Portfolio Bond Index (Unhedged)
06/28/94 $10,000 $10,000
07/31/94 $10,027 $10,115
08/31/94 $10,001 $10,089
11/30/94 $10,045 $10,161
02/28/95 $10,274 $10,659
05/31/95 $11,156 $11,696
08/31/95 $11,072 $11,496
11/30/95 $11,574 $12,003
02/29/96 $11,668 $11,957
</TABLE>
Note: Past performance is not predictive of future performance.
15
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
PORTFOLIO MANAGER'S LETTER
FEBRUARY 29, 1996
BEA HIGH YIELD PORTFOLIO
April 11, 1996
Dear Shareholders:
We are pleased to report on the results of the BEA High Yield Portfolio (the
"Portfolio") for the six-months ended February 29, 1996.
At February 29, 1996, the net asset value of (NAV) of the Portfolio was
$16.39 compared to an NAV of $15.72 at August 31, 1995. As a result, the
Portfolio's total return (assuming reinvestment of dividends) was 9.85%. In
comparison, the CS First Boston High Yield Index gained 6.60% during the same
period. Since the Portfolio's inception, its total return (assuming reinvestment
of dividends) was 36.72% compared to 35.16% for the Index.
MARKET REVIEW
During the first quarter of 1996, the high yield market, as measured by the
CS First Boston High Yield Index, posted positive performance of 2.16% as new
cash buyers continued to enter the market and high yield spreads tightened
slightly versus treasuries as interest rates rose. The market's positive
performance was driven by gains in the CCC-rated sector followed by the B and
BB-rated issues as the deferred interest sector outperformed the cash pay
sector. During the quarter, the high yield market outperformed the investment
grade market, which declined 1.75% according to the Salomon Brothers Broad
Index, but underperformed the emerging markets, which was up 4.46% according to
the Salomon Brothers Brady Bond Index, and the equity market, which saw the S&P
500 rise 5.37%.
All industry sectors had positive performance in the quarter except for
Airlines, which reported a decline of 1.66% and Conglomerates, which was down
0.61%. Airlines poor performance was driven by the industry's higher-rated
securities, which followed treasuries and underperformed for the quarter. The
best performing industry sector Gaming, which returned 7.62%, was led by
positive news regarding Atlantic City casinos and Harrahs Jazz, based in New
Orleans. We have started to see interest in previously out of favor industries,
including restaurants and retailing.
During the first quarter, high yield mutual fund investors continued to
enter the market, with AMG Data Services reporting inflows of $2.85 billion. The
high yield new issue market was very active during the first quarter of 1996
with $18.4 billion of new deals priced versus $5.6 billion priced in the first
quarter of 1995. The average market-weighted new issue offer yield was 10.87% at
the end of the first quarter of 1996 versus 10.94% at the end of the first
quarter of 1995 and for the year 1995 averaged 10.93%.
PERFORMANCE REVIEW
More recently, the BEA High Yield Portfolio returned 4.43% for the quarter
ended March 31, 1996, outperforming the CS First Boston High Yield Index, which
returned 2.16%, by 227 basis points. The largest positive influence on the
Portfolio in the quarter was our overweighting of the gaming industry, which had
the largest industry total return of 7.62%. The industry's positive performance
was driven by continued better-than-expected results from Atlantic City casinos,
the announced Trump new issue that will refinance Trump existing debt in Taj and
Plaza, which will be taken out at premiums well above par, and the increase in
the bonds of Harrahs Jazz, after several companies have discussed the
possibility of taking over the project, which is currently in bankruptcy
proceedings.
STRATEGY
We expect the high yield market to track the directional movements of the
debt and equity markets in 1996. We also expect the market to continue to be
volatile on an individual credit basis as bonds react quickly to news releases,
particularly those of the negative variety. The
16
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
PORTFOLIO MANAGER'S LETTER--(CONTINUED)
FEBRUARY 29, 1996
strong cash flows we have witnessed in the high yield market over the last year
have now become more uncertain as treasury yields have taken on increased
volatility as fear of inflation has been rising. We will be watching carefully
to see how high-yield investors react to higher rates.
We expect the second quarter to remain busy on the new issue front following
a very well received calendar in the first quarter. However, with rates at
higher levels, there is a risk that the new issues will reprice the secondary
market. We expect secondary trading to remain brisk as investors reposition
portfolios to make room for new issues.
Our long-term outlook continues to be positive for the credit fundamentals
of many high-yield issuers. We remain positive on selected gaming companies
particularly in Atlantic City and Las Vegas, on industry sectors such as health
care and cable where we have seen continued merger activity, on many sectors of
the telecommunications industry, which along with the cable and broadcasting
sectors should benefit over the near-term from the recently signed
Telecommunications Bill, and on certain cyclical sectors. Our strategy continues
to be focused on opportunistically investing in companies that we believe offer
operating performance improvement and deleveraging potential over the longer
term.
As you may be aware, as of January 1, 1996, the BEA Strategic Fixed Income
Portfolio became the BEA High Yield Portfolio, investing in the high-yield
market. Unlike the BEA Strategic Fixed Income Portfolio, the BEA High Yield
Portfolio will not focus on the emerging markets. All of the emerging markets
bonds that were held in the portfolio have been sold, except for one bond that
we continue to own.
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 any 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
Misia Dudley, Senior Vice President
William P. Sterling, Managing Director
Mark K. Silverstein, Senior Vice President
Robert W. Justich, Senior Vice President
Marianne Rossi, Senior Vice President
Ian Borsook, Vice President
Stephen R. Waite, Vice President
17
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
PORTFOLIO MANAGER'S LETTER--(CONCLUDED)
FEBRUARY 29, 1996
BEA HIGH YIELD PORTFOLIO
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN THE BEA HIGH YIELD
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 24.57%
From Inception 10.98%
</TABLE>
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
First Boston
BEA High High
<S> <C> <C>
Yield
Dates Portfolio Yield Index
03/01/93 $10,000 $10,000
05/31/93 $10,607 $10,419
08/31/93 $11,294 $10,809
11/30/93 $11,872 $11,209
02/28/94 $12,128 $11,570
05/31/94 $11,484 $11,143
08/31/94 $11,539 $11,201
11/30/94 $11,449 $11,123
02/28/95 $10,961 $11,638
05/31/95 $12,010 $12,370
08/31/95 $12,439 $12,680
11/30/95 $12,784 $13,029
02/29/96 $13,665 $13,516
</TABLE>
Note: Past performance is not predictive of future performance.
18
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
PORTFOLIO MANAGER'S LETTER
FEBRUARY 29, 1996
BEA MUNICIPAL BOND FUND PORTFOLIO
April 23, 1996
Dear Shareholders:
We are pleased to report on the results of the BEA Municipal Bond Fund
Portfolio for six-months ended February 29, 1996.
At February 29, 1996, the net asset value (NAV) of the Portfolio was $15.11,
compared to $15.46 at August 31, 1995. As a result, the Portfolio's total return
(assuming reinvestment of dividends and distributions) was 3.03%. In comparison,
the Lehman Bros. Municipal Bond Index gained 4.86% during the same period. Since
the Portfolio's inception on June 20, 1994, its total return (assuming
reinvestment of dividends and distributions) was 12.16% compared to 14.99% for
the Index.
MARKET COMMENTARY
The U.S. bond market -- largely followed by the rest of the world -- behaved
so far this year much as it did in the first quarter of 1994. That year, the
U.S. government long-term bond posted its worst losses since 1927 as inflation
fears surged and central banks around the world boosted interest rates
aggressively. The yield on the 30-year U.S. Treasury bond soared from under 6%
to over 8% as bond prices plummeted. Fortunately, most of the bond-market losses
of 1994 were reversed in 1995 as global growth slowed and inflation fears eased.
Since mid-February this year, bond yields in the U.S. have shot up from just
under 6% to around 6.7% (and in early April, to nearly 7%). Disappointment about
U.S. budget cutting efforts and a sharp change in investor sentiment toward a
strong economy scenario have been key factors behind the bond market setback.
Many investors are now wary that we are poised for a repeat of 1994. As a
result, the market is no longer discounting two 25 basis point U.S. rate
reductions over the next few months; instead, current prices reflect an
expectation for some tightening. We think that the consensus is off the mark.
While economic activity may indeed have picked up to some extent -- and we
believe that even this has been somewhat overstated -- inflation is, to our
mind, not a meaningful threat at this point. If anything, we think the risks are
that the economy could be weaker rather than stronger in the second half of the
year.
The fact is that the Fed tightened monetary policy drastically in 1994 and
early 1995 when it doubled the level of short-term interest rates from 3% to 6%.
It has since cut interest rates by a paltry 0.75%, which is unlikely to undo in
a short period of time the negative effects of the previous round of rate hikes.
By many measures, the Fed's monetary policy is still moderately restrictive. We
believe that bonds are likely to rally significantly later in the year as market
participants move back toward a scenario of further Fed easing.
Talk of tax reform and large supply haunted the municipal bond market for
most of the first quarter. New issues totalled $39 billion, compared to $29
billion in the first quarter of 1995. The two largest issues that came to market
were $1.2 billion of New York City General Obligations and $1.1 billion of
Puerto Rico Highway Revenue Bonds. The NYC deal was not well received and had
trouble clearing the market, rising by 20 basis points after issue. The Puerto
Rico deal was better received, in an otherwise choppy market. By the end of
March, Municipal yields reached 6.10%.
19
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
PORTFOLIO MANAGER'S LETTER--(CONTINUED)
FEBRUARY 29, 1996
During the most recent quarter, we maintained a portfolio duration
marginally longer then the market due to our constructive view on interest
rates. Municipals remain attractively priced relative to taxable bonds. The
taxable equivalent yield for a long, AA-rated Revenue bond of 6.00% is 9.25%.
As developments occur in the municipal 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 any 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
Misia Dudley, Senior Vice President
William P. Sterling, Managing Director
Mark K. Silverstein, Senior Vice President
Robert W. Justich, Senior Vice President
Marianne Rossi, Senior Vice President
Ian Borsook, Vice President
Stephen R. Waite, Vice President
20
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
PORTFOLIO MANAGER'S LETTER--(CONCLUDED)
FEBRUARY 29, 1996
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 BOND 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 8.35%
From Inception 12.16%
</TABLE>
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
<TABLE>
<CAPTION>
BEA Municipal Lehman Brothers
<S> <C> <C>
Bond Fund
Dates Portfolio Municipal Bond Index
06/20/94 $10,000 $10,000
07/31/94 $10,040 $10,038
08/31/94 $10,040 $10,073
11/30/94 $9,647 $9,571
02/28/95 $10,350 $10,354
05/31/95 $10,846 $10,820
08/31/95 $10,886 $10,965
11/30/95 $11,193 $11,079
02/29/96 $11,216 $11,498
</TABLE>
Note: Past performance is not predictive of future performance.
21
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC
BEA INTERNATIONAL EQUITY PORTFOLIO
STATEMENT OF NET ASSETS
February 29, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
NUMBER
OF SHARES VALUE
----------- ------------
<S> <C> <C>
COMMON AND CONVERTIBLE STOCKS, WARRANTS AND RIGHTS -- 95.3%
ARGENTINA -- 3.1%
Bagley S.A................................. 168 $ 333
Banco de Galicia y Buenos Aires S.A. ADR... 206,516 4,724,053
Banco de Galicia y Buenos Aires S.A. Class
B........................................ 195,608 1,105,683
Banco Frances del Rio
de la Plata S.A.......................... 132,020 1,122,675
Banco Frances del Rio
de la Plata S.A. ADR..................... 116,394 3,026,244
Buenos Aires Embotelladora S.A. ADR Class
B........................................ 14,900 247,713
Perez Companc S.A. Class B................. 900,723 4,487,620
Quilmes Industrial S.A. ADR................ 109,140 2,051,832
Sodigas del Sur S.A.+...................... 55 742,112
Sodigas Pampeana S.A.+..................... 55 841,061
Telecom Argentina Stet-France S.A. ADR..... 46,900 2,028,425
Telecom Argentina Stet-France S.A. Class
B........................................ 274,620 1,181,398
Telefonica de Argentina S.A. ADR........... 117,788 3,076,787
------------
24,635,936
------------
AUSTRALIA -- 2.0%
Boral Ltd.................................. 1,566,781 4,226,589
CRA Ltd.................................... 224,000 3,432,175
CRA Ltd. New E/95.......................... 16,800 252,149
News Corp. Ltd............................. 41,250 234,533
News Corp. Ltd. ADR........................ 100,600 2,276,075
News Corp. Ltd. Pfd........................ 20,625 104,027
News Corp. Ltd. Pfd. ADR................... 50,200 1,004,000
WMC Ltd.................................... 604,600 3,885,717
------------
15,415,265
------------
BRAZIL -- 4.3%
Banco Bradesco S.A. PN..................... 444,800,475 5,037,608
Banco Bradesco S.A. PN Receipt Shares...... 14,027,581 158,870
Brasmotor S.A. PN.......................... 8,008,000 2,106,726
<CAPTION>
NUMBER
OF SHARES VALUE
----------- ------------
<S> <C> <C>
BRAZIL -- (CONTINUED)
Centrais Eletricas Brasileiras S.A. ON..... 63,836 $ 17,637
Centrais Eletricas Brasileiras S.A. PN
ADR**.................................... 33,000 480,876
Centrais Eletricas Brasileiras S.A. PN
Class B.................................. 6,767,060 1,883,367
Cia. Cervejaria Brahma PN Warrants Expire
1996**................................... 369,916 107,086
Cia. Energetica de Minas Gerais ADR........ 1,513 41,467
Cia. Paulista de Forca e Luz ON............ 57,856,260 3,270,392
Cia. Tecidos Norte de Minas Gerais PN...... 7,273,000 2,881,053
Cia. Vale do Rio Doce ADR.................. 132,600 5,385,947
Lojas Americanas S.A. PN................... 91,966,786 4,679,739
Multibras S.A. Eletrodomesticos PN......... 2,050,100 1,978,258
Telecomunicacoes de Sao Paulo S.A. PN...... 35,357,000 5,853,927
------------
33,882,953
------------
CANADA -- 0.5%
Magna International, Inc. Class A.......... 91,700 3,633,613
------------
CHILE -- 1.8%
Chilectra S.A. 144A ADR****................ 62,850 3,254,122
Embotelladora Andina S.A. ADR.............. 92,400 3,326,400
Empresa Nacional de Electricidad S.A.
ADR...................................... 237,000 4,740,000
Enersis S.A. ADR........................... 113,400 3,217,725
------------
14,538,247
------------
DENMARK -- 1.2%
Tele Danmark A/S ADS....................... 222,100 6,551,950
Unidanmark A/S 144A****.................... 56,690 2,764,636
------------
9,316,586
------------
FINLAND -- 1.0%
Kymmene OY................................. 106,300 2,948,358
Nokia Corp. ADR............................ 25,700 896,287
Nokia Corp. Class A........................ 109,496 3,760,099
------------
7,604,744
------------
</TABLE>
See Accompanying Notes to Financial Statements.
22
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC
BEA INTERNATIONAL EQUITY PORTFOLIO
STATEMENT OF NET ASSETS (CONTINUED)
FEBRUARY 29, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
NUMBER
OF SHARES VALUE
----------- ------------
<S> <C> <C>
FRANCE -- 7.4%
Accor...................................... 28,470 $ 4,010,814
Alcatel Alsthom Compagnie Generale
D'Electricite............................ 43,638 3,871,294
AXA S.A.................................... 59,542 3,847,936
Bertrand Faure............................. 123,462 4,039,621
Carrefour Super Marche..................... 10,176 6,871,092
Credit Local de France..................... 89,381 7,099,332
Ecco S.A................................... 21,957 4,478,709
Groupe Danone.............................. 4 640
Legrand.................................... 10,464 1,876,951
Louis Vitton Moet Hennesey................. 23,230 5,291,488
Michelin Class B........................... 38,625 1,730,530
Pinault Printemps S.A...................... 19,054 4,517,943
Technip S.A................................ 78,120 6,541,260
Valeo S.A.................................. 71,735 3,956,968
------------
58,134,578
------------
GERMANY -- 3.5%
Commerzbank AG............................. 8,450 1,940,051
Degussa CN................................. 10,650 3,836,174
Deutsche Bank AG........................... 73,790 3,721,626
Hoechst AG................................. 18,445 5,822,095
Man AG..................................... 13,160 3,742,095
SAP AG..................................... 5,850 906,551
SAP AG 144A ADR****........................ 65,900 3,449,074
Volkswagen AG.............................. 11,621 4,427,048
------------
27,844,714
------------
HONG KONG -- 5.7%
Cheung Kong Holdings Ltd................... 811,300 5,641,024
Hang Seng Bank Ltd......................... 693,000 6,813,102
HKR International Ltd...................... 3,769,800 4,218,251
Hong Kong and China Gas.................... 2,150,000 4,213,560
HSBC Holdings PLC.......................... 488,508 7,835,945
New World Development Company.............. 919,000 4,481,825
New World Infrastructure................... 1,625 3,500
Sun Hung Kai Properties Ltd................ 541,200 4,830,643
Swire Pacific Ltd. Class A................. 775,500 6,771,480
------------
44,809,330
------------
<CAPTION>
NUMBER
OF SHARES VALUE
----------- ------------
<S> <C> <C>
INDIA -- 0.7%
India Liberalisation Fund Class A
144A**/****.............................. 276,532 $ 2,043,572
Indian Opportunity Fund Ltd.**............. 320,156 3,246,381
Morgan Stanley India Investment Fund,
Inc...................................... 1,500 15,750
------------
5,305,703
------------
INDONESIA*** -- 0.3%
Matahari Putra Prima, PT................... 799,750 1,727,322
PT Kabelindo Murni......................... 1,162,000 414,103
------------
2,141,425
------------
ISRAEL -- 2.0%
ECI Telecom Ltd............................ 117,320 2,991,660
Geotek Communications, Inc.**.............. 73,800 710,325
Geotek Communications, Inc. Series M
Cumulative Convertible Pfd.+............. 600 6,577,652
Koor Industries Ltd. ADR**................. 123,100 2,462,000
Teva Pharmaceutical Industries Ltd. ADR.... 73,040 3,158,980
------------
15,900,617
------------
ITALY -- 1.3%
Edison S.p.A............................... 778,000 3,914,497
Telecom Italia Mobile S.p.A.**............. 776,384 1,424,352
Telecom Italia Mobile Non-Convertible
Savings Shares**......................... 1,442,650 1,613,039
Telecom Italia Non-Convertible Savings
Shares................................... 1,442,650 1,988,487
Telecom Italia S.p.A....................... 776,384 1,299,627
------------
10,240,002
------------
JAPAN -- 19.4%
Aida Engineering Ltd....................... 83,000 707,207
Aisin Seiki Company Ltd.................... 67,000 969,535
Amano Corp................................. 63,000 785,701
Aoki International Company Ltd............. 37,000 781,988
Aoyama Trading Company..................... 84,000 2,367,098
Bank of Tokyo Ltd.......................... 172,000 2,636,329
Brother Industries Ltd..................... 220,000 1,225,248
</TABLE>
See Accompanying Notes to Financial Statements.
23
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC
BEA INTERNATIONAL EQUITY PORTFOLIO
STATEMENT OF NET ASSETS (CONTINUED)
FEBRUARY 29, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
NUMBER
OF SHARES VALUE
----------- ------------
<S> <C> <C>
JAPAN -- (CONTINUED)
Chudenko Corp.............................. 19,000 $ 660,225
Dai Nippon Printing Company................ 252,000 4,342,346
Dai-Ichi Kangyo Bank Ltd................... 244,000 4,576,161
Daicel Chemical Industries................. 179,000 1,048,029
Daido Steel Company Ltd.................... 182,000 930,446
Daiichi Pharmaceutical Company Ltd......... 233,000 3,593,488
Daiwa Securities Company Ltd............... 121,000 1,704,874
Fuji Photo Film Company Ltd................ 136,000 3,858,340
Fujitsu Ltd................................ 291,000 2,992,003
Higo Bank.................................. 56,000 453,161
Hitachi Cable.............................. 164,000 1,252,171
Hitachi Ltd................................ 553,000 5,580,541
Industrial Bank of Japan Ltd............... 189,000 4,804,170
Kikkoman................................... 184,800 1,333,572
Kirin Brewery Company Ltd.................. 144,000 1,672,506
Komatsu Ltd................................ 445,000 3,850,962
Kuraray Corp............................... 149,000 1,574,543
Kureha Chemical Industry Company........... 154,000 750,647
Kyocera Corp............................... 30,000 2,056,359
Kyudenko Company Ltd....................... 57,000 732,578
Kyushu Electric Power...................... 145,100 3,342,936
Makita Electric Works...................... 91,000 1,394,802
Marubeni Corp.............................. 723,000 3,916,479
Marui Company Ltd.......................... 141,000 2,711,538
Maruichi Steel Tube........................ 52,000 990,099
Matsushita Electric Works.................. 144,000 1,549,124
Mitsubishi Estate Company Ltd.............. 176,000 2,144,707
Mitsubishi Gas and Chemical Company........ 155,000 730,436
Mitsubishi Steel Manufacturing**........... 166,000 892,898
Mitsubishi Trust and Banking Corp.......... 108,000 1,665,651
Murata Manufacturing Company Ltd........... 57,000 1,877,570
New Oji Paper Company Ltd.................. 170,000 1,548,839
Nichicon................................... 168,000 2,335,110
Nippon Meat Packers........................ 135,000 1,979,246
Nippon Oil Company......................... 588,000 3,537,852
Nisshin Steel Company Ltd.................. 425,000 1,707,445
<CAPTION>
NUMBER
OF SHARES VALUE
----------- ------------
<S> <C> <C>
JAPAN -- (CONTINUED)
Nitto Denko Corp........................... 231,000 $ 3,496,668
Nomura Securities Company Ltd.............. 180,000 3,701,447
Sakura Bank Ltd............................ 277,000 3,006,283
Sanwa Bank................................. 273,000 5,016,089
Sanwa Shutter Corp......................... 100,000 815,880
Seino Transportation Company Ltd........... 94,000 1,566,070
Sekisui House Ltd.......................... 360,000 4,489,718
Sharp Corp................................. 347,000 5,417,746
Shimachu................................... 27,000 783,987
Stanley Electric Company Ltd............... 145,000 993,907
Sumitomo Bank Ltd.......................... 259,000 4,931,455
Suzuki Motor Company Ltd................... 249,000 2,915,746
Taiyo Yuden Company Ltd.................... 78,000 787,129
Tohoku Electric Power Company.............. 148,200 3,470,792
Tokai Bank Ltd............................. 175,000 2,332,445
Tokio Marine and Fire Insurance Company.... 188,000 2,273,039
Tokyo Style Corp. Ltd...................... 86,000 1,359,101
Toyo Ink Manufacturing..................... 160,000 846,915
Toyota Motor Corp.......................... 315,000 6,807,407
UNY Company Ltd............................ 102,000 1,893,564
Yamanouchi Pharmaceutical.................. 138,000 3,087,395
Yamato Transport Company Ltd............... 233,000 2,617,479
------------
152,175,222
------------
MALAYSIA -- 2.9%
Diversified Resources Berhad............... 1,539,000 4,650,824
Genting Berhad............................. 428,000 3,829,827
Malayan Banking Berhad..................... 493,000 4,508,202
Petronas Gas Berhad International.......... 1,147,000 4,456,554
Renong Berhad Holding Company.............. 983,000 1,566,319
United Engineers (Malaysia) Bhd............ 560,000 3,604,396
------------
22,616,122
------------
MEXICO -- 2.3%
Apasco, S.A. de C.V........................ 251,929 1,094,120
Coca-Cola Femsa S.A. de C.V. ADR........... 2,000 44,250
Corporacion GEO S.A. de C.V. Class B**..... 687,700 2,232,088
</TABLE>
See Accompanying Notes to Financial Statements.
24
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC
BEA INTERNATIONAL EQUITY PORTFOLIO
STATEMENT OF NET ASSETS (CONTINUED)
FEBRUARY 29, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
NUMBER
OF SHARES VALUE
----------- ------------
<S> <C> <C>
MEXICO -- (CONTINUED)
Corporacion Industrial SanLuis S.A. de C.V.
CPO...................................... 644,694 $ 3,007,442
Grupo Carso S.A. de C.V. Class A1**........ 932,580 5,894,494
Grupo Elektra S.A. de C.V. CPO............. 275,100 1,617,704
Grupo Modelo S.A. de C.V. Class C.......... 344,600 1,516,965
Telefonos de Mexico S.A. de C.V.
Unsponsored ADR.......................... 4,700 7,050
Tubos de Acero de Mexico S.A.**............ 251,700 1,852,194
Tubos de Acero de Mexico S.A. ADR**........ 150,600 1,091,850
------------
18,358,157
------------
NETHERLANDS -- 1.6%
DSM NV CN.................................. 46,700 4,366,952
Koninklijke PTT Nederland NV 144A****...... 107,860 4,331,964
Philips Electronics NV..................... 78,325 3,259,972
Philips Electronics NV ADR................. 10,600 438,579
------------
12,397,467
------------
PHILIPPINES -- 0.4%
Philippine Long Distance Telephone Company
ADR...................................... 56,750 3,355,344
------------
PORTUGAL -- 0.3%
Portugal Telecom S.A. Register**........... 110,300 2,559,567
------------
PUERTO RICO -- 0.5%
Cellular Communications of Puerto Rico,
Inc. ADR**............................... 140,200 3,662,725
------------
RUSSIA -- 0.3%
Petersburg Long Distance, Inc.**........... 209,800 1,101,450
Templeton Russia Fund, Inc................. 105,300 1,395,225
------------
2,496,675
------------
SINGAPORE -- 3.5%
DBS Land Ltd............................... 504,000 1,981,441
Keppel Corp. Ltd........................... 333,000 3,373,167
<CAPTION>
NUMBER
OF SHARES VALUE
----------- ------------
<S> <C> <C>
SINGAPORE -- (CONTINUED)
Overseas-Chinese Banking Corp. Ltd.***..... 446,000 $ 6,192,250
Singapore Press Holdings***................ 371,800 7,506,056
United Overseas Bank Ltd.***............... 523,680 5,601,451
Wing Tai Holdings.......................... 1,250,000 3,010,555
------------
27,664,920
------------
SOUTH AFRICA -- 2.4%
Amalgamated Banks of South Africa Ltd...... 634,000 3,563,178
Anglo American Industrial Corp. Ltd........ 84,600 3,847,442
De Beers Centenary Linked UT............... 67,300 2,138,992
De Beers Consolidated Mines ADR............ 67,000 2,135,625
Gencor Ltd................................. 975,200 3,628,651
South African Breweries Ltd................ 87,500 3,052,326
South African Breweries Ltd. ADR........... 24,027 838,158
------------
19,204,372
------------
SOUTH KOREA -- 1.6%
Korea Fund, Inc............................ 576,325 12,751,191
------------
SPAIN -- 1.6%
Banco Intercontinental Espanol............. 36,800 3,955,390
Banco Popular.............................. 21,500 3,918,094
Repsol S.A................................. 4,100 149,766
Repsol S.A. ADR............................ 131,300 4,759,625
------------
12,782,875
------------
SWEDEN -- 3.8%
Astra AB Fria Class A...................... 180,920 8,314,831
Astra AB Fria Class B...................... 12,000 549,724
Autoliv AB................................. 75,400 3,610,597
Ericsson Telephone Company ADR Class B..... 285,560 6,246,625
Hennes & Mauritz Fria Class B.............. 80,304 5,333,599
Pharmacia & Upjohn, Inc.................... 128,700 5,389,313
------------
29,444,689
------------
SWITZERLAND -- 3.6%
BBC Brown Boveri AG........................ 5,806 6,953,641
</TABLE>
See Accompanying Notes to Financial Statements.
25
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC
BEA INTERNATIONAL EQUITY PORTFOLIO
STATEMENT OF NET ASSETS (CONTINUED)
FEBRUARY 29, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
NUMBER
OF SHARES VALUE
----------- ------------
<S> <C> <C>
SWITZERLAND -- (CONTINUED)
Ciba Geigy AG Registered................... 4,784 $ 4,273,281
Roche Holding AG........................... 765 5,946,456
Schweiz Bankgesellschaft B................. 3,927 4,100,587
Swiss Reinsurance Company Registered....... 6,900 7,193,495
------------
28,467,460
------------
THAILAND*** -- 3.5%
Advanced Information Services Public
Company Ltd.............................. 230,200 4,307,086
Finance One Public Company Ltd............. 375,600 2,766,162
Krung Thai Bank Public Company Ltd......... 1,454,270 6,889,257
Phatra Thanakit Public Company Ltd......... 430,900 4,151,186
Siam Cement Company Ltd.................... 86,200 4,502,166
Thai Farmers Bank Public Company Ltd....... 434,100 4,631,322
------------
27,247,179
------------
UNITED KINGDOM -- 12.8%
Abbey National PLC......................... 780,385 6,856,478
Airtours PLC............................... 729,820 5,053,741
British Airport Authority PLC.............. 776,601 5,794,096
British Sky Broadcasting Group PLC ADR**... 238,300 8,578,800
De la Rue PLC.............................. 240,604 2,736,895
Flextech PLC**............................. 474,092 3,813,122
General Cable PLC**........................ 1,283,400 3,578,427
General Cable PLC ADR**.................... 363,300 5,086,200
House of Fraser PLC........................ 2,238,900 6,105,391
International Cabletel, Inc.**............. 195,842 4,896,050
Reuters Holdings PLC ADR Class B........... 132,300 8,533,350
Reuters Holdings PLC Class B............... 405,320 4,346,652
Standard Chartered Bank PLC................ 1,086,069 10,548,855
Unilever PLC............................... 231,000 4,271,476
Vodafone Group PLC......................... 1,309,333 4,643,655
Vodafone Group PLC ADR..................... 4,000 141,500
Wassall PLC................................ 1,661,792 6,670,167
<CAPTION>
NUMBER
OF SHARES VALUE
----------- ------------
<S> <C> <C>
UNITED KINGDOM -- (CONTINUED)
WPP Group PLC.............................. 3,024,551 $ 8,386,838
WPP Group PLC ADR.......................... 16,440 452,100
------------
100,493,793
------------
TOTAL COMMON AND CONVERTIBLE STOCKS,
WARRANTS AND RIGHTS (Cost
$669,705,833)........................... 749,081,471
------------
<CAPTION>
PAR
(000)
-----------
<S> <C> <C>
FOREIGN BOND**** -- 0.4%
SOUTH AFRICA -- 0.4%
Sappi BVI Finance Ltd. Convertible 144A
7.50% 08/01/02 .......................... $ 3,470 3,279,209
------------
TOTAL FOREIGN BOND (Cost $3,470,053)..... 3,279,209
------------
<CAPTION>
NUMBER
OF SHARES
(000)
-----------
<S> <C> <C>
PUT OPTIONS -- 0.2%
FRANCE -- 0.0%
French Francs 5.2271 Strike 03/26/96....... 193,400 13,098
------------
GERMANY -- 0.0%
German Deutschemarks 1.5031 Strike
03/26/96................................. 128,500 213,639
------------
JAPAN -- 0.2%
Japanese Yen 104.58 Strike 03/26/96........ 12,453,800 1,451,627
------------
SWITZERLAND -- 0.0%
Swiss Francs .825696 Strike 03/26/96....... 12,700 64,323
------------
TOTAL PUT OPTIONS (Cost $4,213,626)...... 1,742,687
------------
</TABLE>
See Accompanying Notes to Financial Statements.
26
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC
BEA INTERNATIONAL EQUITY PORTFOLIO
STATEMENT OF NET ASSETS (CONCLUDED)
FEBRUARY 29, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
PAR
(000) VALUE
----------- ------------
SHORT-TERM INVESTMENT -- 3.8%
<S> <C> <C>
BBH Grand Cayman U.S. Dollar Time Deposit
4.8125% 03/01/96......................... $ 29,350 $ 29,350,000
------------
TOTAL SHORT-TERM INVESTMENT
(Cost $29,350,000)...................... 29,350,000
------------
TOTAL INVESTMENTS AT VALUE -- 99.7%
(Cost $706,739,512*).................................. $783,453,367
OTHER ASSETS IN EXCESS
OF LIABILITIES -- 0.3%................................ 2,477,785
------------
NET ASSETS (APPLICABLE TO
40,938,295 BEA Shares) -- 100.0%...................... $785,931,152
------------
------------
NET ASSET VALUE AND OFFERING
PRICE PER SHARE
($785,931,152 DIVIDED BY 40,938,295)................. $19.20
------------
------------
REDEMPTION PRICE PER SHARE
($19.20 X .9900)...................................... $19.01
------------
------------
</TABLE>
* Cost for Federal income tax purposes at February 29, 1996 is $707,016,217.
The gross appreciation (depreciation) on a tax basis is as follows:
<TABLE>
<S> <C>
Gross Appreciation.......... $ 105,702,342
Gross Depreciation.......... (29,265,192)
---------------
Net Appreciation............ $ 76,437,150
---------------
---------------
</TABLE>
** Non-income producing securities.
*** Denotes foreign shares.
****Certain conditions for public sales may exist.
+ Not readily marketable securities.
INVESTMENT ABBREVIATIONS
<TABLE>
<S> <C>
ADR........................... American Depository Receipts
ADS........................... American Depository Shares
GDR........................... Global Depository Receipts
GDS........................... Global Depository Shares
</TABLE>
See Accompanying Notes to Financial Statements.
27
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
INTERNATIONAL EQUITY PORTFOLIO
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED
FEBRUARY 29, 1996
(UNAUDITED)
<TABLE>
<S> <C>
INVESTMENT INCOME
Dividends.................................. $ 4,285,531
Interest................................... 937,739
Foreign taxes withheld..................... (386,226)
--------------
TOTAL INVESTMENT INCOME.................. 4,837,044
--------------
EXPENSES
Investment advisory fees................... 2,997,649
Administration service fees................ 562,059
Administration fees........................ 468,383
Custodian fees............................. 442,479
Audit fees................................. 36,664
Registration fees.......................... 18,073
Legal fees................................. 17,616
Printing fees.............................. 15,096
Transfer agent fees........................ 12,297
Insurance expense.......................... 9,817
Miscellaneous fees......................... 8,333
Organization expense....................... 5,303
Directors fees............................. 5,097
--------------
TOTAL EXPENSES........................... 4,598,866
--------------
NET INVESTMENT INCOME........................ 238,178
--------------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS AND FOREIGN CURRENCY
TRANSACTIONS:
Net realized loss from:
Security transactions.................... (941,093)
Foreign exchange transactions............ (902,142)
--------------
(1,843,235)
--------------
Net unrealized appreciation from:
Investments.............................. 40,446,889
Translation of assets and liabilities in
foreign currencies...................... 1,068,211
--------------
41,515,100
--------------
NET GAIN ON INVESTMENTS AND FOREIGN CURRENCY
TRANSACTIONS................................ 39,671,865
--------------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS.................................. $ 39,910,043
--------------
--------------
</TABLE>
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE
SIX MONTHS FOR THE
ENDED YEAR ENDED
FEBRUARY AUGUST
29,1996 31,1995
------------- -------------
(UNAUDITED)
<S> <C> <C>
Increase in net assets:
Operations:
Net investment income...................... $ 238,178 $ 2,606,678
Net gain (loss) on investments and foreign
currency transactions..................... 39,671,865 (67,759,705)
------------- -------------
Net increase (decrease) in net assets
resulting from operations................. 39,910,043 (65,153,027)
------------- -------------
Distributions to shareholders:
Dividends to shareholders from net investment
income:
BEA shares ($.07 and $.00, respectively,
per share)................................ (2,649,123) --
Distributions to shareholders from net
realized capital gains:
BEA shares ($.00 and $.80, respectively,
per share)................................ -- (32,112,690)
------------- -------------
Total distributions to shareholders........ (2,649,123) (32,112,690)
------------- -------------
Net capital share transactions............... (24,584,398) 103,330,556
------------- -------------
Total increase in net assets................. 12,676,522 6,064,839
Net Assets:
Beginning of period........................ 773,254,630 767,189,791
------------- -------------
End of period.............................. $785,931,152 $773,254,630
------------- -------------
------------- -------------
</TABLE>
See Accompanying Notes to Financial Statements.
28
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
BEA EMERGING MARKETS EQUITY PORTFOLIO
STATEMENT OF NET ASSETS
FEBRUARY 29, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
NUMBER
OF SHARES VALUE
----------- ------------
<S> <C> <C>
COMMON STOCK, WARRANTS AND RIGHTS -- 94.9%
ARGENTINA -- 5.7%
Astra Cia. Argentina de Petroleo S.A....... 29,080 $ 50,040
Bagley S.A................................. 6,150 12,182
Banco de Galicia y Buenos Aires S.A. ADR... 28,632 654,957
Banco de Galicia y Buenos Aires S.A. Class
B........................................ 67,763 383,033
Banco Frances del Rio de la Plata S.A...... 81,426 692,433
Buenos Aires Embotelladora S.A. ADR Class
B........................................ 13,390 222,609
Inversiones y Representaciones S.A. Class
B**...................................... 333,250 900,180
Perez Companc S.A. Class B................. 363,870 1,812,889
Quilmes Industrial S.A. ADR................ 39,715 746,642
Telecom Argentina Stet-France S.A. ADR..... 13,500 583,875
Telecom Argentina Stet-France S.A. Class
B........................................ 139,450 599,905
Telefonica de Argentina S.A. ADR........... 43,572 1,138,319
------------
7,797,064
------------
BRAZIL -- 15.2%
Banco Bradesco S.A. PN..................... 198,514,366 2,248,284
Banco Bradesco S.A. PN Receipt Shares...... 4,641,665 52,569
Banco do Brasil S.A. PN.................... 11,957,000 166,390
Centrais Eletricas Brasileiras S.A. ON..... 4,041,781 1,116,673
Centrais Eletricas de Santa Catarina S.A.
PN Class B............................... 772,000 486,176
Cia. Cervejaria Brahma PN.................. 1,442,789 652,149
<CAPTION>
NUMBER
OF SHARES VALUE
----------- ------------
<S> <C> <C>
BRAZIL -- (CONTINUED)
Cia. Cervejaria Brahma PN Warrants Expire
1996**................................... 182,777 $ 52,912
Cia. Energetica de Minas Gerais ADR........ 35,673 977,690
Cia. Energetica de Minas Gerais PN......... 4,249,989 107,923
Cia. Energetica de Minas Gerais 144A
ADS****.................................. 20,783 569,600
Cia. Paulista de Forca e Luz ON............ 13,382,220 756,445
Cia. Siderurgica Nacional S.A. ADR......... 9,700 271,862
Cia. Siderurgica Nacional S.A. ON.......... 5,092,700 136,564
Cia. Tecidos Norte de Minas Gerais PN...... 2,562,000 1,014,885
Cia. Vale do Rio Doce ADR.................. 31,100 1,263,220
Cia. Vale do Rio Doce PN................... 525,500 81,667
Investimentos Itau S.A. PN................. 1,603,700 1,026,238
Lojas Americanas S.A. ADR**................ 1,100 27,590
Lojas Americanas S.A. PN................... 42,436,000 1,034,499
Metalurgica e Schultz S.A. PN.............. 1,600,000 43,880
Multibras S.A. Eletrodomesticos PN......... 581,000 560,640
Petroleo Brasileiro S.A. PN................ 9,189,666 1,022,111
Refrigeracao Parana S.A. PN................ 523,223,000 1,381,798
Santista Alimentos S.A.**.................. 666,500 893,631
Serrana S.A. PN............................ 145,200 63,419
Tec Toy Industria de Brinquedos PN**....... 430,000 249
Telecomunicacoes de Minas Gerais PN Class
B........................................ 20,800,000 1,394,468
Telecomunicacoes de Sao Paulo S.A. PN...... 3,861,928 639,405
</TABLE>
See Accompanying Notes to Financial Statements.
29
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
BEA EMERGING MARKETS EQUITY PORTFOLIO
STATEMENT OF NET ASSETS (CONTINUED)
FEBRUARY 29, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
NUMBER
OF SHARES VALUE
----------- ------------
<S> <C> <C>
BRAZIL -- (CONTINUED)
Telecomunicacoes do Parana S.A. PN......... 1,510,000 $ 567,496
Telecomunicacoes do Rio de Janeiro S.A.
ON....................................... 2,260,000 173,293
Telecomunicacoes do Rio de Janeiro S.A.
PN....................................... 17,320,000 1,259,636
Usinas Siderurgicas de Minas Gerais S.A.
PN....................................... 641,822,395 697,562
------------
20,740,924
------------
CHILE -- 4.6%
Chilectra S.A. 144A ADR****................ 29,200 1,511,859
Embotelladora Andina S.A. ADR.............. 34,200 1,231,200
Empresa Nacional de Electricidad S.A.
ADR...................................... 109,500 2,190,000
Enersis S.A. ADR........................... 45,000 1,276,875
------------
6,209,934
------------
COLOMBIA -- 1.3%
Banco Industrial Colombiano S.A. ADR....... 16,700 304,775
Carrulla & Cia S.A. Rule 144A ADR****...... 34,500 310,500
Cementos Diamante S.A. 144A ADS****........ 34,300 737,450
Cementos Paz del Rio, S.A. 144A ADR****.... 31,600 460,317
------------
1,813,042
------------
ECUADOR -- 0.3%
Cemento Nacional Ecuador GDR............... 2,896 460,464
------------
HONG KONG -- 6.3%
Cheung Kong Holdings Ltd................... 147,000 1,022,101
Consolidated Electric Power Asia........... 533,600 983,623
<CAPTION>
NUMBER
OF SHARES VALUE
----------- ------------
<S> <C> <C>
HONG KONG -- (CONTINUED)
Hang Seng Bank Ltd......................... 96,000 $ 943,806
HKR International Ltd...................... 1,153,600 1,290,831
HSBC Holdings PLC.......................... 66,831 1,072,007
Sun Hung Kai Properties Ltd................ 90,000 803,322
Swire Pacific Ltd. Class A................. 106,500 929,932
Wharf (Holdings) Ltd....................... 383,000 1,483,862
------------
8,529,484
------------
INDIA -- 3.3%
Arvind Mills Ltd. 144A GDS**/****.......... 16,000 51,680
Hindalco Industries 144A GDR****........... 17,900 642,073
India Fund Class B......................... 510,670 934,904
India Liberalisation Fund Class A
144A**/****.............................. 74,000 546,860
Indian Opportunity Fund Ltd.**............. 79,020 801,263
Morgan Stanley India Investment Fund,
Inc...................................... 105,200 1,104,600
Reliance Industries Ltd. 144A ADR****...... 32,500 451,750
------------
4,533,130
------------
INDONESIA*** -- 2.9%
Bank Internasional Indonesia, PT........... 321,000 1,348,477
Kalbe Farma, PT............................ 172,000 562,808
Matahari Putra Prima, PT................... 525,250 1,134,449
PT Hanjaya Mandala Sampoerna............... 82,500 900,729
PT Kabelindo Murni......................... 26,000 9,266
------------
3,955,729
------------
ISRAEL -- 3.1%
ECI Telecom Ltd............................ 25,040 638,520
Elscint Ltd. ADR........................... 69,250 173,125
</TABLE>
See Accompanying Notes to Financial Statements.
30
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
BEA EMERGING MARKETS EQUITY PORTFOLIO
STATEMENT OF NET ASSETS (CONTINUED)
FEBRUARY 29, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
NUMBER
OF SHARES VALUE
----------- ------------
<S> <C> <C>
ISRAEL -- (CONTINUED)
Geotek Communications, Inc.**.............. 154,800 $ 1,489,950
Koor Industries Ltd. ADR**................. 29,800 596,000
Tecnomatix Technologies**.................. 36,200 511,325
Teva Pharmaceutical Industries Ltd. ADR.... 18,230 788,448
------------
4,197,368
------------
MALAYSIA -- 10.3%
Berjaya Group Berhad....................... 500 324
Diversified Resources Berhad............... 71,000 214,560
Genting Berhad............................. 367,500 3,288,462
Malayan Banking Berhad..................... 451,500 4,128,709
Malaysian Resources Corp. Berhad........... 414,000 1,031,750
Petronas Gas Berhad International.......... 187,000 726,570
Renong Berhad Holding Company.............. 515,000 820,604
Technology Resources Industries Berhad**... 488,000 1,522,606
Time Engineering Berhad.................... 391,000 874,686
United Engineers (Malaysia) Bhd............ 129,000 830,298
YTL Corp. Berhad........................... 133,500 628,728
------------
14,067,297
------------
MEXICO -- 7.3%
Apasco, S.A. de C.V........................ 150,240 652,488
Coca-Cola Femsa S.A. de C.V. ADR........... 830 18,364
Corporacion GEO S.A. de C.V. Class B**..... 120,280 390,396
Corporacion GEO S.A. de C.V. 144A ADR Class
B**/****................................. 38,100 495,986
Corporacion Industrial SanLuis S.A. de C.V.
CPO...................................... 384,574 1,794,008
<CAPTION>
NUMBER
OF SHARES VALUE
----------- ------------
<S> <C> <C>
MEXICO -- (CONTINUED)
Fomento Economico Mexicano S.A. de C.V.
Class B.................................. 107,650 $ 270,186
Grupo Carso S.A. de C.V. Class A1**........ 200,860 1,269,566
Grupo Elektra S.A. de C.V. CPO............. 210,000 1,234,888
Grupo Modelo S.A. de C.V. Class C.......... 270,000 1,188,568
Kimberly Clark de Mexico S.A. de C.V. Class
A........................................ 39,270 657,940
Panamerican Beverages, Inc. Class A........ 28,400 1,150,200
Tubos de Acero de Mexico S.A.**............ 69,800 513,640
Tubos de Acero de Mexico S.A. ADR**........ 45,000 326,250
------------
9,962,480
------------
PHILIPPINES -- 2.0%
Ayala Corp. Class B........................ 1,036,600 1,428,152
Philippine Long Distance Telephone Company
ADR...................................... 21,700 1,283,012
------------
2,711,164
------------
PORTUGAL -- 1.5%
Portugal Telecom S.A. ADR**................ 17,300 397,900
Portugal Telecom S.A. Register**........... 27,000 626,549
Sonae Industria e Investimentos S.A........ 42,050 946,848
------------
1,971,297
------------
PUERTO RICO -- 0.6%
Cellular Communications of Puerto Rico,
Inc. ADR**............................... 30,700 802,038
------------
</TABLE>
See Accompanying Notes to Financial Statements.
31
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
BEA EMERGING MARKETS EQUITY PORTFOLIO
STATEMENT OF NET ASSETS (CONTINUED)
FEBRUARY 29, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
NUMBER
OF SHARES VALUE
----------- ------------
<S> <C> <C>
RUSSIA -- 0.8%
Petersburg Long Distance, Inc.**........... 103,700 $ 544,425
Templeton Russia Fund, Inc................. 41,000 543,250
------------
1,087,675
------------
SINGAPORE -- 2.9%
Jardine Matheson Holdings Ltd.............. 128,500 1,028,000
Keppel Corp. Ltd........................... 73,000 739,463
Overseas-Chinese Banking Corp. Ltd.***..... 50,000 694,198
Straits Steamship Land Ltd................. 215,000 737,125
Straits Steamship Land Ltd. Warrants Expire
2001**................................... 53,750 83,384
United Overseas Bank Ltd.***............... 61,280 655,471
------------
3,937,641
------------
SOUTH AFRICA -- 11.9%
Amalgamated Banks of South Africa Ltd...... 113,000 635,078
Anglo American Industrial Corp. Ltd........ 48,900 2,223,876
De Beers Centenary Linked UT............... 33,200 1,055,194
De Beers Consolidated Mines ADR............ 59,700 1,902,938
Gencor Ltd................................. 430,430 1,601,600
Murray and Roberts Holdings................ 130,808 802,762
Nedcor Limited............................. 85,800 1,474,341
Nedcor Limited GDR......................... 29,633 500,053
Nedcor Limited Warrants**.................. 7,300 46,538
Pepkor Ltd................................. 182,000 1,134,561
SA Iron & Steel Industrial Corp. Ltd....... 1,825,464 1,547,163
<CAPTION>
NUMBER
OF SHARES VALUE
----------- ------------
<S> <C> <C>
SOUTH AFRICA -- (CONTINUED)
Samancor Ltd............................... 93,800 $ 1,066,460
Sasol Ltd.................................. 53,250 460,950
South African Breweries Ltd................ 51,600 1,800,000
------------
16,251,514
------------
SOUTH KOREA -- 4.5%
Korea Electric Power ADR New**............. 58,000 1,406,500
Korea Fund, Inc............................ 209,350 4,631,869
------------
6,038,369
------------
THAILAND*** -- 10.4%
Advanced Information Services Public
Company Ltd.............................. 53,700 1,004,737
Bangkok Bank Ltd........................... 152,000 1,984,713
Krung Thai Bank Public Company Ltd......... 612,980 2,903,846
PTT Exploration & Production Public Company
Ltd...................................... 85,600 981,401
Phatra Thanakit Public Company Ltd......... 300,700 2,896,871
Siam Cement Company Ltd.................... 19,800 1,034,140
TelecomAsia Corp. Public Company Ltd.**.... 302,000 865,605
Thai Farmers Bank Public Company Ltd....... 236,900 2,527,436
------------
14,198,749
------------
TOTAL COMMON STOCK,
WARRANTS AND RIGHTS
(Cost $120,030,031).................................. 129,265,363
------------
</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 (CONCLUDED)
FEBRUARY 29, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
PAR
(000) VALUE
----------- ------------
<S> <C> <C>
FOREIGN BONDS**** -- 2.7%
COLOMBIA -- 0.7%
Banco de Colombia Convertible 144A
5.20% 02/01/99........................... $ 1,100 $ 957,000
------------
SOUTH AFRICA -- 2.0%
Ashanti Goldfields Convertible 144A
5.50% 03/15/00........................... 1,400 1,400,000
Sappi BVI Finance Ltd. Convertible 144A
7.50% 08/01/02........................... 1,365 1,289,984
------------
2,689,984
------------
TOTAL FOREIGN BONDS
(Cost $4,003,183)...................................... 3,646,984
------------
SHORT-TERM INVESTMENT -- 7.2%
BBH Grand Cayman U.S. Dollar
Time Deposit
4.8125% 03/01/96......................... 9,790 9,790,000
------------
TOTAL SHORT-TERM INVESTMENT
(Cost $9,790,000)...................................... 9,790,000
------------
<CAPTION>
VALUE
------------
<S> <C> <C>
TOTAL INVESTMENTS AT VALUE -- 104.8%
(Cost $133,823,214*).................................. $142,702,347
LIABILITIES IN EXCESS OF OTHER ASSETS -- (4.8%).........
(6,552,051)
------------
NET ASSETS (APPLICABLE TO 7,567,241 BEA Shares) --
100.0%................................................ $136,150,296
------------
------------
NET ASSET VALUE AND OFFERING PRICE PER SHARE
($136,150,296 DIVIDED BY 7,567,241).................. $17.99
------------
------------
REDEMPTION PRICE PER SHARE
($17.99 X .9850)...................................... $17.72
------------
------------
</TABLE>
* Cost for Federal income tax purposes at February 29, 1996 is $134,751,571.
The gross appreciation (depreciation) on a tax basis is as follows:
<TABLE>
<S> <C>
Gross Appreciation......................... $ 16,309,624
Gross Depreciation......................... $ (8,358,848)
-------------
Net Appreciation........................... $ 7,950,776
-------------
-------------
</TABLE>
** Non-income producing securities.
*** Denotes foreign shares.
**** Certain conditions for public sales may exist.
INVESTMENT ABBREVIATIONS
<TABLE>
<S> <C>
ADR........................... American Depository Receipts
ADS........................... American Depository Shares
GDR........................... Global Depository Receipts
GDS........................... Global Depository Shares
</TABLE>
See Accompanying Notes to Financial Statements.
33
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
BEA EMERGING MARKETS EQUITY PORTFOLIO
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED
FEBRUARY 29, 1996
(UNAUDITED)
<TABLE>
<S> <C>
INVESTMENT INCOME
Dividends............................ $ 1,092,181
Interest............................. 216,806
Foreign taxes withheld............... (95,031)
------------
TOTAL INVESTMENT INCOME............ 1,213,956
------------
EXPENSES
Investment advisory fees............. 628,057
Custodian fees....................... 161,215
Administration service fees.......... 94,209
Administration fees.................. 78,507
Registration fees.................... 16,019
Transfer agent fees.................. 13,655
Miscellaneous fees................... 8,177
Audit fees........................... 6,379
Organization expense................. 5,303
Printing fees........................ 2,755
Legal fees........................... 1,950
Insurance expense.................... 1,541
Directors fees....................... 866
------------
1,018,633
Less fees waived..................... (73,965)
------------
TOTAL EXPENSES..................... 944,668
------------
NET INVESTMENT INCOME.................. 269,288
------------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS AND FOREIGN CURRENCY
TRANSACTIONS:
Net realized gain (loss) from:
Security transactions.............. (10,077,000)
Foreign exchange transactions...... 46,548
------------
(10,030,452)
------------
Net unrealized appreciation from:
Investments........................ 12,370,594
Translation of assets and
liabilities in foreign
currencies........................ 5,480
------------
12,376,074
------------
NET GAIN ON INVESTMENTS AND FOREIGN
CURRENCY TRANSACTIONS................ 2,345,622
------------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS...................... $ 2,614,910
------------
------------
</TABLE>
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE
SIX MONTHS
ENDED FOR THE
FEBRUARY 29, YEAR ENDED
1996 AUGUST 31, 1995
--------------- ---------------
(UNAUDITED)
<S> <C> <C>
Increase (decrease) in net assets:
Operations:
Net investment
income.............. $ 269,288 $ 26,113
Net gain (loss) on
investments and
foreign currency
transactions........ 2,345,622 (32,385,113)
--------------- ---------------
Net increase
(decrease) in net
assets resulting
from operations..... 2,614,910 (32,359,000)
--------------- ---------------
Distribution to
shareholders:
Dividends to
shareholders from net
investment income:
BEA shares ($.05
and $.07,
respectively, per
share)............ (401,495) (394,002)
Distributions to
shareholders from
net realized capital
gains:
BEA shares ($.00
and $.92,
respectively, per
share)............ -- (5,374,023)
--------------- ---------------
Total distributions
to shareholders..... (401,495) (5,768,025)
--------------- ---------------
Net capital share
transactions......... 5,614,318 25,774,209
--------------- ---------------
Total increase
(decrease) in net
assets............... 7,827,733 (12,352,816)
Net Assets:
Beginning of period.. 128,322,563 140,675,379
--------------- ---------------
End of period........ $ 136,150,296 $ 128,322,563
--------------- ---------------
--------------- ---------------
</TABLE>
See Accompanying Notes to Financial Statements.
34
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
BEA U.S. CORE EQUITY PORTFOLIO
STATEMENT OF NET ASSETS
FEBRUARY 29, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
NUMBER
OF SHARES VALUE
------------- -------------
<S> <C> <C>
COMMON AND CONVERTIBLE STOCKS -- 91.4%
AEROSPACE & DEFENSE -- 5.3%
Litton Industries Inc.**................... 7,400 $ 373,700
Lockheed Martin Corp....................... 11,700 892,125
United Technologies
Corporation.............................. 6,000 645,000
Whittaker Corp. **......................... 20,000 490,000
-------------
2,400,825
-------------
BANKING -- 1.8%
Morgan (J.P.) & Co., Inc................... 5,000 409,375
Southern National Corporation.............. 14,600 408,800
-------------
818,175
-------------
BUSINESS SERVICES -- 3.0%
Automatic Data
Processing, Inc.......................... 18,000 697,500
Dun & Bradstreet Corp. (The)............... 10,000 632,500
-------------
1,330,000
-------------
CHEMICALS -- 2.7%
Eastman Kodak Co. 11,000 786,500
The Scotts Company
Class A **............................... 25,000 443,750
-------------
1,230,250
-------------
COMPUTERS, SOFTWARE & SERVICING -- 6.4%
DST Systems, Inc. **....................... 26,400 904,200
Seagate Technology, Inc. **................ 15,000 978,750
Western Digital Corp. **................... 47,000 981,125
-------------
2,864,075
-------------
CONGLOMERATES -- 4.3%
Allied Signal, Inc......................... 16,600 923,375
General Electric Co........................ 13,200 996,600
-------------
1,919,975
-------------
<CAPTION>
NUMBER
OF SHARES VALUE
------------- -------------
<S> <C> <C>
CONSTRUCTION & BUILDING MATERIALS -- 1.5%
USG Corporation **......................... 26,000 $ 689,000
-------------
CONSUMER PRODUCTS -- 2.0%
Colgate-Palmolive Co....................... 6,000 469,500
Newell Co.................................. 15,500 430,125
-------------
899,625
-------------
ELECTRONICS -- 4.1%
Applied Materials, Inc. ** ................ 11,000 393,250
Emerson Electric Co........................ 7,000 545,125
Intel Corp................................. 7,400 435,212
Perkin-Elmer Corporation................... 9,900 455,400
-------------
1,828,987
-------------
ENERGY -- 7.4%
Exxon Corporation.......................... 10,700 850,650
McDermott International, Inc............... 43,000 827,750
Mobil Corporation.......................... 7,000 767,375
Schlumberger, Ltd.......................... 6,030 439,436
Tidewater, Inc............................. 13,000 443,625
-------------
3,328,836
-------------
ENTERTAINMENT -- 3.3%
GTech Holdings Corp. **.................... 32,000 1,040,000
Mattel, Inc................................ 14,000 465,500
-------------
1,505,500
-------------
FINANCIAL SERVICES -- 12.5%
ACE Limited Ordinary Shares ............... 21,500 1,005,125
Astoria Financial Corp..................... 13,000 641,875
Dean Witter Discover & Co.................. 6,800 365,500
EXEL Limited............................... 10,000 697,500
Federal National Mortgage
Association.............................. 32,000 1,012,000
Financial Security Assurance Holdings
Ltd...................................... 16,000 402,000
Mutual Risk Management, Ltd................ 9,700 435,287
Oppenheimer Capital, L.P................... 11,100 313,575
</TABLE>
See Accompanying Notes to Financial Statements.
35
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
BEA U.S. CORE EQUITY PORTFOLIO
STATEMENT OF NET ASSETS (CONTINUED)
FEBRUARY 29, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
NUMBER
OF SHARES VALUE
------------- -------------
<S> <C> <C>
FINANCIAL SERVICES -- (CONTINUED)
Student Loan Marketing
Association.............................. 5,400 $ 446,175
Western National Corp...................... 20,000 312,500
-------------
5,631,537
-------------
FOOD -- 1.9%
Heinz (H.J.) Co............................ 13,200 448,800
Nabisco Holdings Corp...................... 11,700 410,962
-------------
859,762
-------------
HEALTH CARE -- 3.7%
Bard (C.R.), Inc........................... 13,000 466,375
Humana, Inc. **............................ 21,800 534,100
McKesson Corporation....................... 12,400 647,900
-------------
1,648,375
-------------
INDUSTRIAL GOODS & MATERIALS -- 3.3%
Dover Corp................................. 10,000 445,000
Illinois Tool Works, Inc................... 7,000 461,125
Teledyne, Inc.............................. 19,500 548,438
Teledyne, Inc. Preferred
Series E................................. 195 2,925
-------------
1,457,488
-------------
MACHINERY -- 1.1%
Ingersoll-Rand Co.......................... 12,000 490,500
-------------
PACKAGING -- 2.9%
Owens-Illinois, Inc. **.................... 80,000 1,300,000
-------------
PAPER & FOREST PRODUCTS -- 1.0%
Potlatch Corp.............................. 11,000 452,375
-------------
PHARMACEUTICALS -- 6.6%
Barr Laboratories, Inc. **................. 26,300 969,813
Pharmacia & Upjohn, Inc. ***............... 25,500 1,067,813
Smithkline Beecham Plc ADR................. 16,500 903,375
-------------
2,941,001
-------------
<CAPTION>
NUMBER
OF SHARES VALUE
------------- -------------
<S> <C> <C>
PUBLISHING & INFORMATION SERVICES-- 2.0%
Dow Jones & Co., Inc....................... 11,000 $ 429,000
Hollinger International, Inc. ***.......... 46,000 483,000
-------------
912,000
-------------
REAL ESTATE -- 2.0%
Starwood Lodging Trust..................... 14,000 481,250
Trinet Corporate Realty Trust Inc.......... 14,000 406,000
-------------
887,250
-------------
RESTAURANTS, HOTELS & GAMING -- 3.9%
Marriot International, Inc................. 23,800 1,169,175
McDonald's Corporation..................... 12,000 600,000
-------------
1,769,175
-------------
TELECOMMUNICATIONS -- 3.1%
AT&T Corp.................................. 16,000 1,018,000
Sprint Corp................................ 8,800 378,400
-------------
1,396,400
-------------
TOBACCO -- 3.9%
Philip Morris Companies, Inc............... 10,500 1,039,500
Schweitzer-Mauduit
International, Inc. **................... 20,000 709,375
-------------
1,748,875
-------------
TRANSPORTATION -- 1.7%
Canadian National Railway Company.......... 24,400 420,900
Delta Air Lines............................ 4,500 351,000
-------------
771,900
-------------
TOTAL COMMON AND CONVERTIBLE STOCKS
(Cost $35,026,321)..................... 41,081,886
-------------
</TABLE>
See Accompanying Notes to Financial Statements.
36
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
BEA U.S. CORE EQUITY PORTFOLIO
STATEMENT OF NET ASSETS (CONCLUDED)
FEBRUARY 29, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
PAR
(000) VALUE
------------- -------------
<S> <C> <C>
CORPORATE BONDS -- 2.1%
TRANSPORTATION -- 2.1%
Santa Fe Pipeline Holdings Inc.
(Baa3, BBB)
11.00% 08/15/10 $ 720 $ 964,800
-------------
TOTAL CORPORATE BONDS
(Cost $932,500)......................... 964,800
-------------
SHORT-TERM INVESTMENT -- 7.6%
BBH Grand Cayman U.S. Dollar Time Deposit
4.8125% 03/01/96......................... 3,406 3,406,000
-------------
TOTAL SHORT-TERM INVESTMENT
(Cost $3,406,000)....................... 3,406,000
-------------
<CAPTION>
VALUE
-------------
<S> <C> <C>
TOTAL INVESTMENTS AT VALUE -- 101.1%
(COST $39,364,821) *...................................... $ 45,452,686
LIABILITIES IN EXCESS
OF OTHER ASSETS -- (1.1%)................................. (489,029)
-------------
NET ASSETS (APPLICABLE TO 2,383,893 BEA Shares) -- 100.0%...
$ 44,963,657
-------------
-------------
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE PER
SHARE
($44,963,657 DIVIDED BY 2,383,893)....................... $18.86
-------------
-------------
</TABLE>
* Cost for Federal Income Tax Purposes at February 29, 1996 is $39,247,621.
The gross appreciation (depreciation) on a tax basis is as follows:
<TABLE>
<S> <C>
Gross Appreciation......................... $ 6,387,230
Gross Depreciation......................... $ (182,165)
-----------
Net Appreciation........................... $ 6,205,065
-----------
-----------
</TABLE>
** Non-income producing securities.
*** Irregular dividend.
INVESTMENT ABBREVIATIONS
<TABLE>
<S> <C>
American Depository
ADR...................... Receipts
</TABLE>
See Accompanying Notes to Financial Statements.
37
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
BEA U.S. CORE EQUITY
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED
FEBRUARY 29, 1996
(UNAUDITED)
<TABLE>
<S> <C>
INVESTMENT INCOME
Dividends.................................. $ 330,867
Interest................................... 75,243
----------
TOTAL INVESTMENT INCOME.................. 406,110
----------
EXPENSES
Investment advisory fees................... 133,197
Sub-administration service fees............ 26,639
Custodian fees............................. 24,343
Administration fees........................ 22,199
Registration fees.......................... 15,776
Transfer agent fees........................ 10,047
Organization expense....................... 2,590
Printing fees.............................. 1,971
Miscellaneous fees......................... 1,602
Legal fees................................. 1,105
Audit fees................................. 1,105
Insurance expense.......................... 373
Directors fees............................. 172
----------
241,119
Less fees waived........................... (63,523)
----------
TOTAL EXPENSES........................... 177,596
----------
NET INVESTMENT INCOME........................ 228,514
----------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain on investments........... 2,629,615
Net unrealized appreciation on
investments............................... 2,740,775
----------
NET GAIN ON INVESTMENTS...................... 5,370,390
----------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS.................................. $5,598,904
----------
----------
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE
FOR THE PERIOD
SIX MONTHS SEPTEMBER 1,
ENDED 1994(1)
FEBRUARY 29, TO AUGUST 31,
1996 1995
------------- -------------
<S> <C> <C>
(UNAUDITED)
Increase in net assets:
Operations:
Net investment income...................... $ 228,514 $ 351,583
Net gain on investments.................... 5,370,390 4,351,342
------------- -------------
Net increase in net assets resulting from
operations................................ 5,598,904 4,702,925
------------- -------------
Distributions to shareholders:
Dividends to shareholders from net investment
income:
BEA shares ($.02090 and $.08 per share,
respectively)........................... (384,500) (102,838)
Dividends to shareholders from net realized
capital gains:
BEA shares ($1.61 and $.00 per share,
respectively)........................... (2,961,757) --
------------- -------------
Net capital share transactions............... 11,067,234 27,043,539
------------- -------------
Total increase in net assets................. 13,319,881 31,643,626
Net Assets:
Beginning of period........................ 31,643,776 150
------------- -------------
End of period.............................. $ 44,963,657 $ 31,643,776
------------- -------------
------------- -------------
(1) Commencement of Operations.
</TABLE>
See Accompanying Notes to Financial Statements.
38
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
BEA U.S. CORE FIXED INCOME PORTFOLIO
STATEMENT OF NET ASSETS
FEBRUARY 29, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
PAR
(000) VALUE
---------- -------------
<S> <C> <C>
CORPORATE BONDS -- 19.0%
BANKING -- 4.2%
Christiania Bank Og Kreditkasse Perpetual
SubDebentures
(NR, NR)+/+++
6.0625%.................................. $ 440 $ 349,030
Citicorp Medium Term Notes (A2, A)
6.75% 10/15/07........................... 665 660,844
Credit Lyonnais Perpetual Sub
Variable Rate Notes, Rule 144A (Baa2,
NR)****/+/+++
6.875%................................... 360 329,400
Den Norske Bank A/S Perpetual
Subordinated FRN (NR, NR)+++
5.5625%.................................. 10 7,900
Hongkong & Shanghai Banking Corp Ltd.
Perpetual Sub. (Baa, NR)+/+++
6.0625%.................................. 50 40,570
5.5625%.................................. 700 571,130
Lloyds Bank Plc Perpetual Sub.
FRN Series 2 (Aa3, NR)+/+++
5.4375%.................................. 570 475,779
Midland Bank Plc Perpetual
Sub. FRN Series 1
(A1, A-)+/+++
5.8125%.................................. 750 603,300
Midland Bank Plc Perpetual Sub. FRN Series
2
(A1, A-)+/+++
5.75%.................................... 470 380,559
National Westminster Bank Plc
Perpetual Sub. FRN Series B (Aa3,
A+)+/+++
5.3125%.................................. 385 325,614
Santander Financial Euro
Perpetual FRN (A2, NR)+/+++
6.775%................................... 1,000 915,000
Standard Chartered Bank
Perpetual Sub. FRN Series 3
(Baa, NR)+++
5.775%................................... 450 348,255
<CAPTION>
PAR
(000) VALUE
---------- -------------
<S> <C> <C>
BANKING -- (CONTINUED)
Swiss Bank Corp. New York
Subordinated Notes
(Aa2, AA)
6.75% 07/15/05........................... $ 700 $ 706,125
-------------
5,713,506
-------------
CABLE -- 1.3%
Adelphia Communications Corp. Senior Notes
Series B PIK Bonds (B3, B)
9.50% 02/15/04........................... 371 322,433
Falcon Holdings Group L.P. Senior
Subordinated Notes PIK Bonds (NR, NR)
11.00% 09/15/03.......................... 590 589,958
Summit Communications Group, Inc.
Senior Subordinated Notes (Ba3, BB+)
10.50% 04/15/05.......................... 765 848,194
-------------
1,760,585
-------------
CHEMICALS -- 0.2%
UCC Investors Holdings Inc. Subordinated
Discount Notes (B3, B-)++
12.00% 05/01/05.......................... 350 273,875
-------------
CONSTRUCTION & BUILDING MATERIALS -- 0.4%
J.M. Peters Company, Inc.,
Senior Notes (B3, NR)
12.75% 05/01/02.......................... 530 511,450
-------------
CONSUMER PRODUCTS -- 0.4%
Revlon Worldwide Corp. Senior Secured
Debentures, Series B
(B3, B-)
0.00% 03/15/98........................... 625 503,125
-------------
ENERGY -- 0.6%
Mesa, Inc. Secured Discount Notes (Caa,
CCC+)
12.75% 06/30/98.......................... 330 325,050
</TABLE>
See Accompanying Notes to Financial Statements.
39
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
BEA U.S. CORE FIXED INCOME PORTFOLIO
STATEMENT OF NET ASSETS (CONTINUED)
FEBRUARY 29, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
PAR
(000) VALUE
---------- -------------
<S> <C> <C>
ENERGY -- (CONTINUED)
PDV America, Inc. Guaranteed Senior Notes
(Baa3, B-)
7.875% 08/01/03.......................... $ 595 $ 543,681
-------------
868,731
-------------
ENTERTAINMENT -- 2.5%
Bally's Casino Holdings Inc. Senior
Discount Notes (B2, B+)
0.00% 06/15/98........................... 450 375,750
Time Warner, Inc. Notes
(Ba1, BBB-)
6.85% 01/15/26........................... 3,080 3,041,500
-------------
3,417,250
-------------
ENVIRONMENTAL SERVICES -- 0.3%
EnviroSource, Inc. Senior Notes (B3, B-)
9.75% 06/15/03........................... 470 430,050
-------------
FINANCIAL SERVICES -- 1.4%
General Motors Acceptance Corp. Medium Term
Notes (A3, A-)
7.25% 7/20/98............................ 145 149,350
7.375% 04/15/99.......................... 1,320 1,369,500
General Motors Acceptance Corp. Notes
(A3,BBB+)
8.625% 06/15/99.......................... 160 172,000
8.40% 10/15/99........................... 200 214,750
-------------
1,905,600
-------------
HEALTH CARE -- 1.0%
Columbia/HCA Health Care Corp. Medium Term
Notes (A3, BBB+)
6.63% 07/15/45........................... 1,330 1,353,275
-------------
INDUSTRIAL GOODS & MATERIALS -- 0.6%
Tenneco, Inc. Debentures (Baa2, BBB-)
7.25% 12/15/25........................... 900 848,250
-------------
METALS & MINING -- 0.6%
Acme Metals Inc. Senior Secured Discount
Notes (B1, B)++
13.50% 08/01/04.......................... 520 451,100
<CAPTION>
PAR
(000) VALUE
---------- -------------
<S> <C> <C>
METALS & MINING -- (CONTINUED)
Armco, Inc. Senior Notes
(C-2, B)
9.375% 11/01/00.......................... $ 400 $ 402,000
-------------
853,100
-------------
PAPER & FOREST PRODUCTS -- 0.8%
Gaylord Container Corp. Senior Subordinated
Debentures (Caa, B-)++
12.75% 05/15/05.......................... 320 332,000
Grupo Industrial Durango S.A. de C.V.
Yankee Notes
(B1, BB-)
12.00% 07/15/01.......................... 260 246,675
P. T. Indah Kiat Pulp & Paper Corp.
Guaranteed Notes, Series B (Ba2, BB)
11.875% 06/15/02......................... 230 240,925
P. T. Indah Kiat Pulp & Paper Corp. Sr.
Secured Debentures
(Ba2, BB)
8.875% 11/01/00.......................... 320 307,200
Stone Container Corp. First Mortgage Notes
(B1, BB-)
10.75% 10/01/02.......................... 20 20,400
-------------
1,147,200
-------------
REAL ESTATE -- 0.7%
Chelsea GCA Realty Inc. Notes (Ba2, BB+)
7.75% 01/26/01........................... 900 901,125
-------------
RETAIL -- 0.2%
Pueblo Xtra International, Inc. Senior
Notes (B2, B-)
9.50% 08/01/03........................... 325 301,844
-------------
TELECOMMUNICATIONS -- 2.0%
BellSouth Telecommunications Debenture Bond
(Aaa, AAA)
5.85% 11/15/45........................... 1,785 1,778,306
Nippon Telephone & Telegraph Corp. Yankee
Notes (Aaa, AAA)
9.50% 07/27/98........................... 50 54,125
</TABLE>
See Accompanying Notes to Financial Statements.
40
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
BEA U.S. CORE FIXED INCOME PORTFOLIO
STATEMENT OF NET ASSETS (CONTINUED)
FEBRUARY 29, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
PAR
(000) VALUE
---------- -------------
<S> <C> <C>
TELECOMMUNICATIONS -- (CONTINUED)
U.S. West Communications Debenture Bond
(Aa3, AA-)
7.20% 11/10/26........................... $ 715 $ 683,719
Videotron Holdings Plc Yankee Senior
Discount Note (B3, B+)++
11.00% 08/15/05.......................... 395 259,713
-------------
2,775,863
-------------
TRANSPORTATION -- 0.3%
Delta Airlines, Inc. Debentures (Ba1, BB)
10.375% 02/01/11......................... 260 311,350
NWA Trust Mezzanine Aircraft Notes Series D
(Ba1, BB+)
13.875% 06/21/08......................... 110 131,175
-------------
442,525
-------------
UTILITIES -- 1.5%
Columbia Gas Systems Inc. Debentures
(Baa3, BBB)***/****
6.39% 11/28/00........................... 91 91,114
6.61% 11/28/02........................... 12 12,090
6.80% 11/28/05........................... 12 11,970
Long Island Lighting Debenture Bond (Ba1,
BB+)
9.00% 11/01/22........................... 1,190 1,155,788
Niagara Mohawk Power Corp. First Mortgage
Bonds (Ba1, BB)
5.875% 09/01/02.......................... 500 443,750
7.375% 08/01/03.......................... 365 339,450
Toledo Edison Co. Debentures (B1, B+)
8.70% 09/01/02........................... 55 49,156
-------------
2,103,318
-------------
TOTAL CORPORATE BONDS
(Cost $25,932,280)..................... 26,110,672
-------------
<CAPTION>
PAR
(000) VALUE
---------- -------------
<S> <C> <C>
FOREIGN GOVERNMENT BONDS -- 4.0%
Federal Republic of Brazil Interest Due
Bonds FRN
(B1, NR)+
6.375% 01/01/01.......................... $ 698 $ 609,005
Republic of Argentina FRB Non-U.S. Tranche
(B1, BB-)
6.8125% 03/31/05......................... 750 535,313
Republic of Bulgaria Discount Bonds Tranche
A (NR, NR)+
6.25% 07/28/24........................... 670 342,956
Republic of Ecuador Step-Up Par Bonds (NR,
NR)
3.25% 02/28/25........................... 1,855 662,003
Republic of Italy Global Unsecured
Debentures (A1, AA)
6.875% 09/27/23.......................... 840 773,850
Republic of Turkey Yankee Notes (Ba3, B+)
9.00% 06/15/99........................... 30 29,625
The Polish People's Republic Discount Bonds
FRN
(Baa3, NR)+
6.875% 10/27/24.......................... 1,000 861,875
United Mexican States Par Bonds Series A
(Ba2, BB)
6.25% 12/31/19........................... 1,000 616,250
United Mexican States Series 144A
Structured Notes (NA, NA)****
0.00% 11/27/96........................... 1,000 1,063,750
-------------
TOTAL FOREIGN GOVERNMENT BONDS
(Cost $5,258,875)...................... 5,494,627
-------------
AGENCY OBLIGATIONS -- 33.0%
FEDERAL HOME LOAN MORTGAGE CORP -- 6.1%
FHLMC
6.00% 11/01/97........................... 441 441,414
6.00% 06/01/99........................... 22 22,032
6.00% 11/01/99........................... 66 66,003
7.00% 08/01/00........................... 121 123,019
6.00% 01/01/01........................... 323 323,430
6.00% 02/01/01........................... 264 264,623
7.00% 04/01/08........................... 34 33,929
7.00% 08/01/10........................... 311 313,724
</TABLE>
See Accompanying Notes to Financial Statements.
41
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
BEA U.S. CORE FIXED INCOME PORTFOLIO
STATEMENT OF NET ASSETS (CONTINUED)
FEBRUARY 29, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
PAR
(000) VALUE
---------- -------------
<S> <C> <C>
FEDERAL HOME LOAN MORTGAGE CORP -- (CONTINUED)
7.00% 09/01/10........................... $ 3,718 $ 3,751,468
7.00% 01/01/11........................... 435 438,714
8.00% 01/01/26........................... 460 472,099
FHLMC (TBA) **
6.00% 12/31/25........................... 275 258,070
8.00% 12/31/25........................... 850 871,516
FHLMC Series 1014 Class E
7.95% 02/15/20........................... 1,040 1,062,288
-------------
8,442,329
-------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION -- 17.1%
FNMA
7.50% 01/01/00........................... 73 75,251
7.50% 04/01/00........................... 758 777,090
6.50% 08/01/00........................... 490 491,991
7.50% 09/01/01........................... 498 510,405
6.00% 10/01/01........................... 1,858 1,836,855
6.50% 11/01/01........................... 492 493,562
7.50% 12/01/01........................... 55 56,268
6.50% 09/01/02........................... 1,682 1,688,660
6.00% 10/01/02........................... 223 220,937
6.50% 11/01/02........................... 437 439,201
10.00% 02/01/05.......................... 83 87,469
6.00% 11/01/10........................... 293 284,740
7.00% 12/01/10........................... 728 734,639
6.00% 01/01/11........................... 1,685 1,638,954
8.00% 01/01/22........................... 266 272,503
8.00% 12/01/22........................... 594 609,435
8.00% 05/01/24........................... 311 319,271
8.00% 06/01/24........................... 410 420,609
8.00% 11/01/24........................... 351 360,452
6.00% 02/01/25........................... 266 250,244
8.00% 06/01/25........................... 45 45,726
7.00% 07/01/25........................... 26 26,024
8.00% 07/01/25........................... 2,290 2,349,632
7.00% 09/01/25........................... 868 857,978
7.00% 10/01/25........................... 108 106,408
7.50% 10/01/25........................... 1,081 1,091,839
7.50% 11/01/25........................... 284 286,322
6.00% 01/01/26........................... 102 96,120
7.50% 01/01/26........................... 511 515,565
6.00% 02/01/26........................... 1,430 1,343,724
7.50% 02/01/26........................... 1,504 1,519,019
<CAPTION>
PAR
(000) VALUE
---------- -------------
<S> <C> <C>
FEDERAL NATIONAL MORTGAGE ASSOCIATION -- (CONTINUED)
8.00% 02/01/26........................... $ 843 $ 864,924
FNMA (TBA)**
7.00% 01/01/11........................... 900 906,469
7.00% 12/31/25........................... 400 394,875
7.50% 12/31/26........................... 675 680,484
FNMA Balloon
7.50% 07/01/00........................... 76 78,407
7.50% 06/01/01........................... 111 114,255
7.50% 09/01/01........................... 546 559,555
FNMA 1991-165 Class M
8.25% 12/25/21........................... 13 13,428
-------------
23,419,290
-------------
GOVERNMENT NATIONAL MORTGAGE ASSOCIATION -- 8.1%
GNMA
8.25% 08/15/04........................... 1 1,335
9.00% 11/15/04........................... 2 2,089
9.00% 12/15/04........................... 1 1,544
8.25% 04/15/06........................... 2 2,537
7.00% 09/01/08........................... 422 428,428
7.00% 11/15/08........................... 399 404,172
7.00% 02/01/09........................... 196 199,053
7.00% 03/15/09........................... 450 456,399
7.00% 04/15/09........................... 431 437,423
7.00% 05/01/09........................... 336 340,698
7.00% 01/15/11........................... 977 990,625
7.00% 02/15/11........................... 650 659,141
13.50% 02/15/14.......................... 1 1,594
9.00% 06/15/16........................... 145 152,421
8.00% 04/15/17........................... 260 267,207
9.00% 10/15/17........................... 607 640,017
8.00% 11/15/17........................... 1,472 1,521,300
9.00% 08/15/21........................... 1,165 1,228,208
8.00% 02/15/22........................... 454 467,276
8.00% 03/15/22........................... 317 325,915
8.00% 05/15/22........................... 14 13,986
8.00% 06/15/22........................... 323 332,842
8.00% 09/15/22........................... 395 406,769
8.00% 11/15/22........................... 681 701,584
GNMA (TBA) **
8.00% 01/15/25........................... 1,080 1,110,375
-------------
11,092,938
-------------
</TABLE>
See Accompanying Notes to Financial Statements.
42
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
BEA U.S. CORE FIXED INCOME PORTFOLIO
STATEMENT OF NET ASSETS (CONTINUED)
FEBRUARY 29, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
PAR
(000) VALUE
---------- -------------
<S> <C> <C>
MISCELLANEOUS -- 1.7%
National Archive Facility Trust COP (Aaa,
AAA)
8.50% 09/01/19........................... $ 527 $ 605,749
Tennessee Valley Authority Debentures (Aaa,
NR)
6.235% 07/15/45.......................... 1,740 1,768,275
-------------
2,374,024
-------------
TOTAL AGENCY OBLIGATIONS
(Cost $45,069,178)..................... 45,328,581
-------------
ASSET-BACKED SECURITIES -- 3.2%
Fleetwood Credit Corporation Grantor Trust
Retail Installment Sale Contract (Aaa,
AAA)
6.75% 03/15/10........................... 102 103,440
Goldome Credit Corporation Home Equity
Trust Series 1990-1 Class A (Aa2, AA)
10.00% 07/15/05.......................... 29 30,384
Green Tree Financial Corporation
Manufactured Housing Contracts Series
1993-4 Class A-2 (Aa, NR)
5.85% 01/15/19........................... 125 124,414
Green Tree Financial Corporation
Manufactured Housing Contracts Series
1995-5 Class A-3 (Aaa, AAA)
6.25% 09/15/26........................... 490 490,888
Green Tree Financial Corporation
Manufactured Housing Contracts Series
1995-6 Class A-2 (Aaa, AAA)
6.40% 11/25/25........................... 1,450 1,457,808
Green Tree Financial Corporation
Manufactured Housing Contracts Series
1995-6 Class A-3 (Aaa, AAA)
6.65% 11/15/25........................... 150 150,552
Green Tree Financial Corporation
Manufactured Housing Contracts Series
1995-7 Class A-2 (Aaa, AAA)
6.15% 11/15/26........................... 195 194,940
<CAPTION>
PAR
(000) VALUE
---------- -------------
<S> <C> <C>
ASSET-BACKED SECURITIES -- (CONTINUED)
Green Tree Financial Corporation
Manufactured Housing Contracts Series
1995-8 Class A-2 (Aaa, AAA)
6.15% 12/15/26........................... $ 165 $ 165,577
Olympic Automobile Receivables Trust Retail
Instrument Sale Contracts Series 1995-C
Class A-2 (Aaa, AAA)
6.20% 01/15/02........................... 1,527 1,534,743
World Omni Automobile Lease Securitization
Trust Retail Closed-End Lease Contracts
Series 1995-A Class A
(Aaa, AAA)
6.05% 11/25/01........................... 145 145,856
-------------
TOTAL ASSET-BACKED SECURITIES
(Cost $4,384,751)...................... 4,398,602
-------------
COLLATERIZED MORTGAGED BACKED SECURITIES -- 4.6%
Asset Securitization Corporation Series
1995-MD4 Class A1 (NR, AAA)
7.10% 08/13/29........................... 120 125,401
Carousel Center Finance Inc. Series 1 Class
C (NR, BBB+)
7.527% 11/15/07.......................... 485 498,404
CBM Funding Corporation Series 1996-1 Class
B
(NR, A)
7.48% 02/01/13........................... 1,200 1,239,000
Collateralized Mortgage Obligation Trust
REMIC Series 54 Class C (Aaa, AAA)
9.25% 11/01/13........................... 3 3,136
Kidder Peabody Acceptance Corporation
Series 1993-C1 Class A-3 (NR, NR)
6.80% 09/01/06........................... 635 647,204
Kidder Peabody Acceptance Corporation
Series 1994-C1 Class B (NR, AA)
6.85% 02/01/06........................... 950 972,711
</TABLE>
See Accompanying Notes to Financial Statements.
43
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
BEA U.S. CORE FIXED INCOME PORTFOLIO
STATEMENT OF NET ASSETS (CONTINUED)
FEBRUARY 29, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
PAR
(000) VALUE
---------- -------------
<S> <C> <C>
COLLATERIZED MORTGAGED BACKED SECURITIES -- (CONTINUED)
PaineWebber Mortgage Acceptance Corp. IV
MultiFamily Series 1995 M1 Class A 144A
(NR, NR)****
6.70% 01/15/07........................... $ 1,440 $ 1,482,469
PaineWebber Mortgage Acceptance Corp. IV
MultiFamily Series 1995 M1 Class D 144A
(NR, NR)****
7.30% 12/15/02........................... 500 505,703
Ryland Acceptance Corporation REMIC Series
85 Class D (Aaa, AAA)
9.25% 04/01/12........................... 6 6,069
Structured Asset Securities Corp. Series
1996-CFL Class A1C
5.944% 02/25/28.......................... 800 804,125
-------------
TOTAL COLLATERALIZED MORTGAGE BACKED
SECURITIES
(Cost $6,193,363)...................... 6,284,222
-------------
MUNICIPAL BONDS -- 1.6%
Intermountain Power Agency Utah Revenue
Series D
5.00% 07/01/21........................... 1,125 1,022,344
Salt River Project Agricultural Improvement
& Power District Revenue Bonds Series B
(Aa, AA)
5.25% 01/01/19........................... 50 47,625
Salt River Project Agricultural Improvement
& Power District Revenue Bonds Series C
(Aa, AA)
5.00% 01/01/13........................... 490 466,725
South Carolina State Public Service
Authority Revenue Bonds Series C (Aaa,
AAA)
5.125% 01/01/21.......................... 40 37,550
<CAPTION>
PAR
(000) VALUE
---------- -------------
<S> <C> <C>
MUNICIPAL BONDS -- (CONTINUED)
South Carolina State Public Service
Authority Revenue Bonds Series C (Aaa,
AAA)
5.00% 01/01/25........................... $ 690 $ 633,075
-------------
TOTAL MUNICIPAL BONDS
(Cost $2,172,099) 2,207,319
-------------
UNITED STATES TREASURY OBLIGATIONS -- 33.5%
U.S. TREASURY BONDS -- 9.6%
7.875% 02/15/21.......................... 9,905 11,385,798
7.125% 02/15/23.......................... 1,600 1,698,784
-------------
13,084,582
-------------
U.S. TREASURY NOTES -- 23.9%
5.375% 05/31/98.......................... 12,100 12,082,455
7.75% 11/30/99........................... 8,575 9,180,308
7.25% 05/15/04........................... 1,200 1,289,496
7.50% 02/15/05........................... 9,440 10,307,151
-------------
32,859,410
-------------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $46,915,080) 45,943,992
-------------
LOAN PARTICIPATION AGREEMENT*** -- 0.2%
BANKS -- 0.2%
Bank of Foreign Economic Affairs of the
USSR (Vnesheconombank Bank Participation
Loan).................................... 1,350 329,464
-------------
TOTAL LOAN PARTICIPATION AGREEMENT
(Cost $272,447) 329,464
-------------
SHORT-TERM INVESTMENT -- 2.7%
BBH Grand Cayman U.S. Dollar Time Deposit
4.8125% 03/01/96......................... 3,731 3,731,000
-------------
TOTAL SHORT-TERM INVESTMENT
(Cost $3,731,000) 3,731,000
-------------
</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 (CONCLUDED)
FEBRUARY 29, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
NUMBER OF
SHARES VALUE
---------- -------------
WARRANTS -- 0.0% ***
<S> <C> <C>
Capital Pacific Holdings Group, Inc.
Warrants Expiring 05/01/02............... 1,817 $ 1,817
-------------
TOTAL WARRANTS
(Cost $1,000).......................... 1,817
-------------
TOTAL INVESTMENTS AT VALUE -- 101.8%
(Cost $139,928,073).................................... $ 139,830,296
INVESTMENT SECURITIES PURCHASED PAYABLE -- (4.3%).......
(5,880,206)
OTHER ASSETS IN EXCESS OF
LIABILITIES -- 2.5%.................................... 3,394,771
-------------
NET ASSETS (APPLICABLE TO $8,929,745 BEA Shares) --
100.0%................................................. $ 137,344,861
-------------
-------------
NET ASSET VALUE, OFFERING PRICE AND
REDEMPTION PRICE PER SHARE
($137,344,861 DIVIDED BY 8,929,745) $15.38
-------------
-------------
</TABLE>
* Cost for Federal Income Tax Purposes at February 29, 1996 is $139,923,637.
The gross appreciation (depreciation) on a tax basis is as follows:
<TABLE>
<S> <C>
Gross Appreciation........................... $1,373,179
Gross Depreciation........................... $(1,466,520)
----------
Net Depreciation............................. $ (93,341)
----------
----------
</TABLE>
** Securities were acquired on a delayed delivery basis.
*** Non-income Producing Securities.
**** Certain conditions for public sales may exist.
+ Variable rate obligations -- The interest rate shown is the rate as of
February 29, 1996.
++ Step Bond -- The interest rate as of February 29, 1996 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 are the most recent ratings available at February 29, 1996 and are
unaudited.
INVESTMENT ABBREVIATIONS
<TABLE>
<S> <C>
COP........................... Certificate 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.
45
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
BEA U.S. CORE FIXED INCOME PORTFOLIO
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED
FEBRUARY 29, 1996
(UNAUDITED)
<TABLE>
<S> <C>
INVESTMENT INCOME
Interest................................... $ 3,670,479
-----------
EXPENSES
Investment advisory fees................... 198,165
Administration service fees................ 79,266
Administration fees........................ 66,055
Custodian fees............................. 27,748
Registration fees.......................... 14,935
Transfer agent fees........................ 9,708
Miscellaneous fees......................... 5,470
Audit fees................................. 3,083
Organization expense....................... 2,057
Legal fees................................. 1,834
Printing fees.............................. 994
Insurance expense.......................... 547
Directors fees............................. 435
-----------
410,297
Less fees waived........................... (146,077)
-----------
TOTAL EXPENSES........................... 264,220
-----------
NET INVESTMENT INCOME........................ 3,406,259
-----------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS AND FOREIGN CURRENCY
TRANSACTIONS:
Net realized gain from:
Security transactions.................... 2,667,783
Foreign exchange transactions............ 8,558
-----------
2,676,341
-----------
Net unrealized depreciation from:
Investments.............................. (2,012,730)
Translation of assets and liabilities in
foreign currencies...................... (6,083)
-----------
(2,018,813)
-----------
NET GAIN ON INVESTMENTS AND FOREIGN CURRENCY
TRANSACTIONS............................... 657,528
-----------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS................................. $ 4,063,787
-----------
-----------
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE
SIX MONTHS FOR THE
ENDED YEAR ENDED
FEBRUARY 29, AUGUST 31,
1996 1995
------------ ------------
(UNAUDITED)
<S> <C> <C>
Increase in net assets:
Operations:
Net investment income...................... $ 3,406,259 $ 4,392,275
Net gain on investments and foreign
currency.................................. 657,528 3,524,378
------------ ------------
Net increase in net assets resulting from
operations................................ 4,063,787 7,916,653
------------ ------------
Distributions to shareholders:
Dividends to shareholders from net investment
income:
BEA shares ($.52 and $.84, respectively,
per share).............................. (3,591,910) (3,353,829)
Distributions to shareholders from net
realized gains:
BEA shares ($.22 and $.00, respectively,
per share).............................. (1,598,598) --
------------ ------------
Total distributions to shareholders.......... (5,190,508) (3,353,829)
------------ ------------
Net capital share transactions............... 39,221,743 64,671,197
------------ ------------
Total increase in net assets................. 38,095,022 69,234,021
Net Assets:
Beginning of period........................ 99,249,839 30,015,818
------------ ------------
End of period.............................. $137,344,861 $99,249,839
------------ ------------
------------ ------------
</TABLE>
See Accompanying Notes to Financial Statements.
46
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
BEA GLOBAL FIXED INCOME PORTFOLIO
STATEMENT OF NET ASSETS
FEBRUARY 29, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
PAR
(000) VALUE
------------- -------------
<S> <C> <C> <C>
INTERNATIONAL BONDS -- 63.9%
ARGENTINA -- 1.1%
Republic of Argentina FRB
(B1, BB-)
6.8125% 03/31/05.................... $ 500 $ 356,875
-------------
AUSTRALIA -- 3.1%
Queensland Treasury Corp. Global Bonds
(NR, NR)
8.00% 07/14/99...................... AUD 630 479,838
Treasury Corporation of Victoria
Global Bonds
(Aa2, AA)
8.25% 10/15/03...................... 770 571,884
-------------
1,051,722
-------------
BRAZIL -- 1.9%
Companhia Petroleo Ipiranga Notes,
Step-Up Coupon
(NR, NR)
8.625% 02/25/02..................... $ 285 282,150
Federal Republic of Brazil
Capitalization Bonds
(B1, B+)
8.00% 04/15/14...................... 265 157,675
Federal Republic of Brazil Interest
Due Bonds
FRN Series A (B1, NR)+
6.375% 01/01/01..................... 233 203,002
-------------
642,827
-------------
BULGARIA -- 0.4%
Republic of Bulgaria Discount Bonds
Tranche A
(NR, NR)+
6.25% 07/28/24...................... 250 127,969
-------------
<CAPTION>
PAR
(000) VALUE
------------- -------------
<S> <C> <C> <C>
CANADA -- 4.4%
Export Development Corporation Senior
Unsubordinated Eurobonds
(Aa2, AA+)
7.60% 02/14/01...................... ITL 800,000 $ 469,635
Government of Canada Debentures
(NR, NR)
8.75% 12/01/05...................... CND 1,285 1,014,718
-------------
1,484,353
-------------
FRANCE -- 5.4%
Republic of France Treasury Bonds --
O.A.T.
(Aaa, NR)
7.50% 04/25/05...................... FF 8,700 1,826,555
-------------
GERMANY -- 12.5%
Federal Republic of Germany Eurobonds
(Aaa, NR)
7.25% 10/21/02...................... DEM 5,825 4,239,966
-------------
INDONESIA -- 0.6%
P.T. Indah Kiat Pulp & Paper Corp.
Debentures
(Ba2, BB)
8.875% 11/01/00..................... $ 200 192,000
-------------
ITALY -- 1.5%
Republic of Italy Debentures
(A1, NR)
9.00% 10/01/03...................... ITL 815,000 495,850
-------------
MEXICO -- 0.4%
United Mexican States Par Bonds
Series A (Ba2, BB)
6.25% 12/31/19...................... $ 250 154,063
-------------
</TABLE>
See Accompanying Notes to Financial Statements.
47
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
BEA GLOBAL FIXED INCOME PORTFOLIO
STATEMENT OF NET ASSETS (CONTINUED)
FEBRUARY 29, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
PAR
(000) VALUE
------------- -------------
<S> <C> <C> <C>
MOROCCO -- 1.0%
The Kingdom of Morocco, Tranche A Bank
Participation Loan
(NR, NR)+
6.5935% 05/09/96.................... $ 500 $ 338,438
-------------
NETHERLANDS -- 10.6%
Netherlands Government Bonds
(NR, NR)
9.00% 05/15/00...................... NLG 5,185 3,583,630
-------------
POLAND -- 0.9%
The Polish People's Republic Discount
Bonds FRN
(Baa3, BBB-)+
6.875% 10/27/24..................... $ 345 297,347
-------------
RUSSIA ** -- 0.3%
Bank of Foreign Economic Affairs of
The USSR (Vneshekonombank Bank
Participation Loan)................. 450 109,821
-------------
SPAIN -- 2.9%
Kingdom of Spain Debentures
(NR, NR)
10.25% 1/30/98...................... ESP 99,000 828,747
10.10% 02/28/01..................... 19,800 166,037
-------------
994,784
-------------
SUPRANATIONAL -- 11.5%
International Bank for Reconstruction
& Development Eurobonds
(Aaa, AAA)
5.25% 03/20/02...................... JPY 360,500 3,880,334
-------------
<CAPTION>
PAR
(000) VALUE
------------- -------------
<S> <C> <C> <C>
SWEDEN -- 1.9%
Nordic Investment Bank Global Notes
(Aaa, AAA)
6.25% 02/08/99...................... SEK 4,500 $ 644,625
-------------
TURKEY -- 0.1%
Republic of Turkey Yankee Notes (Ba3,
B+)+
9.00% 06/15/99...................... $ 25 24,688
-------------
UNITED KINGDOM -- 2.6%
U.K. Treasury Gilt Bonds
(Aaa, NR)
8.50% 07/16/07...................... GBP 563 888,391
-------------
VENEZUELA -- 0.8%
Republic of Venezuela Debt Conversion
Bonds Series DL
(Ba2, NR)+
6.5625% 12/18/07.................... $ 500 275,625
-------------
TOTAL INTERNATIONAL BONDS
(Cost $21,339,533)........................ 21,609,863
-------------
UNITED STATES TREASURY OBLIGATIONS -- 25.4%
U.S. TREASURY BONDS -- 1.6%
7.875% 02/15/21....................... 480 551,760
-------------
U.S. TREASURY NOTES -- 23.8%
5.375% 05/31/98....................... 155 154,775
7.25% 05/15/04........................ 1,445 1,552,768
7.50% 02/15/05........................ 5,800 6,332,787
-------------
8,040,330
-------------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $8,794,650).................... 8,592,090
-------------
</TABLE>
See Accompanying Notes to Financial Statements.
48
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
BEA GLOBAL FIXED INCOME PORTFOLIO
STATEMENT OF NET ASSETS (CONCLUDED)
FEBRUARY 29, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
PAR
(000) VALUE
------------- -------------
<S> <C> <C> <C>
SHORT-TERM INVESTMENT -- 8.0%
BBH Grand Cayman U.S. Dollar Time
Deposit
4.8125% 03/01/96..................... $ 2,722 $ 2,722,000
-------------
TOTAL SHORT-TERM INVESTMENT (Cost
$2,722,000).......................... 2,722,000
-------------
TOTAL INVESTMENTS AT VALUE
(Cost $32,856,183) -- 97.3%.............. 32,923,953
OTHER ASSETS IN EXCESS OF LIABILITIES --
2.7%..................................... 897,309
-------------
NET ASSETS (Applicable to 2,146,027
BEA Shares) -- 100.0%.................... $ 33,821,262
-------------
-------------
NET ASSET VALUE, OFFERING PRICE AND
REDEMPTION PRICE PER SHARE
($33,821,262 DIVIDED BY 2,146,027)...... $15.76
-------------
-------------
</TABLE>
* Also Cost for Federal income tax purposes at February 29, 1996. The gross
appreciation (depreciation) on a tax basis is as follows:
<TABLE>
<S> <C>
Gross Appreciation....................... $ 414,877
Gross Depreciation....................... $ (347,107)
----------
Net Appreciation......................... $ 67,770
----------
----------
</TABLE>
** Non-income Producing Securities.
+ Variable Rate Obligations -- The interest rate shown is the rate as of
February 29, 1996.
The Moody's Investors Service, Inc. and Standard & Poor's Corporations ratings
indicated are the most recent ratings available at February 29, 1996 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
ITL....................... Italian Lira
JPY....................... Japanese Yen
NLG....................... Netherlands Guilder
SEK....................... Swedish Krona
</TABLE>
INVESTMENT ABBREVIATIONS
<TABLE>
<S> <C>
FRB....................... Floating Rate Bond
FRN....................... Floating Rate Note
</TABLE>
See Accompanying Notes to Financial Statements.
49
<PAGE>
THE BEA FAMILY
THE RBB FUND INC.
BEA GLOBAL FIXED INCOME PORTFOLIO
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED
FEBRUARY 29, 1996
(UNAUDITED)
<TABLE>
<S> <C>
INVESTMENT INCOME
Interest................................... $ 865,594
----------
EXPENSES
Investment advisory fees................... 64,220
Custodian fees............................. 19,405
Administration service fees................ 19,266
Administration fees........................ 16,055
Registration fees.......................... 11,278
Transfer agent fees........................ 9,459
Organization expense....................... 2,690
Audit fees................................. 1,616
Miscellaneous fees......................... 995
Legal fees................................. 339
Printing fees.............................. 180
Insurance expense.......................... 174
Directors fees............................. 124
----------
145,801
Less fees waived........................... (49,471)
----------
TOTAL EXPENSES........................... 96,330
----------
NET INVESTMENT INCOME........................ 769,264
----------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENT AND FOREIGN CURRENCY
TRANSACTIONS:
Net realized gain from:
Security transactions.................... 382,792
Foreign exchange transactions............ 84,387
----------
467,179
----------
Net unrealized appreciation(depreciation)
from:
Investments.............................. (189,495)
Translation of assets and liabilities in
foreign currencies...................... 59,002
----------
(130,493)
----------
NET GAIN ON INVESTMENTS AND FOREIGN CURRENCY
TRANSACTIONS............................... 336,686
----------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS................................. $1,105,950
----------
----------
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE
SIX MONTHS FOR THE
ENDED YEAR ENDED
FEBRUARY 29, AUGUST 31,
1996 1995
------------ -----------
(UNAUDITED)
<S> <C> <C>
Increase in net assets:
Operations:
Net investment income...................... $ 769,264 $1,270,820
Net gain on investments and foreign
currency transactions..................... 336,686 566,554
------------ -----------
Net increase in net assets resulting from
operations................................ 1,105,950 1,837,374
------------ -----------
Distributions to shareholders:
Dividends to shareholders from net investment
income:
BEA shares ($.59 and $.88, respectively,
per share).............................. (884,936) (924,756)
Distributions to shareholders from net
realized gains:
BEA shares ($.15 and $.00, respectively,
per share).............................. (267,603) --
------------ -----------
Total Distributions to shareholders:......... (1,152,539) (924,756)
------------ -----------
Net capital share transactions............... 14,303,024 12,351,849
------------ -----------
Total increase in net assets................. 14,256,435 13,264,467
Net Assets:
Beginning of period........................ 19,564,827 6,300,360
------------ -----------
End of period.............................. $33,821,262 $19,564,827
------------ -----------
------------ -----------
</TABLE>
See Accompanying Notes to Financial Statements.
50
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC
BEA HIGH YIELD PORTFOLIO
STATEMENT OF NET ASSETS
FEBRUARY 29, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
PAR
(000) VALUE
------------ -------------
<S> <C> <C>
CORPORATE BONDS -- 94.6%
AEROSPACE/DEFENSE -- 1.5%
GPA Delaware, Inc. Guaranteed Notes (Caa,
CCC+)
8.75% 12/15/98........................... $ 1,200 $ 1,194,000
-------------
BROADCASTING -- 8.8%
Allbritton Communications Company Senior
Subordinated Debentures 144A (B3, B-)****
9.75% 11/30/07........................... 1,150 1,125,563
Australis Media Ltd. Yankee Unit (B3, CCC)
0.00% 05/15/03........................... 900 657,000
EchoStar Communications Corp. Gtd. Senior
Discount Notes
(B2, B)+
12.875% 06/01/04......................... 1,100 803,000
Granite Broadcasting Corp. Senior
Subordinated Notes 144A
(NR, B-)****
9.375% 12/01/05.......................... 1,450 1,428,250
NWCG Holding Corp. Senior Discount Notes
Series B
(Caa, B)
0.00% 06/15/99........................... 1,800 1,291,500
Sinclair Broadcast Group Senior
Subordinated Notes (B1, B+)
10.00% 09/30/05.......................... 1,100 1,124,750
Young Broadcasting Inc. Gtd. Senior
Subordinated Notes 144A (B2, B)****
9.00% 01/15/06........................... 750 735,000
-------------
7,165,063
-------------
CABLE -- 18.0%
Adelphia Communications Corp. Senior Notes,
Series B PIK Bonds (B3, B)
9.50% 02/15/04........................... 1,339 1,164,670
<CAPTION>
PAR
(000) VALUE
------------ -------------
<S> <C> <C>
CABLE -- (CONTINUED)
American Telecasting, Inc. Senior Disount
Notes (Caa, CCC+)+
14.50% 06/15/04.......................... $ 1,400 $ 1,053,500
Bell Cablemedia PLC Yankee Discount Bonds
(B2, BB-)+
11.95% 07/15/04.......................... 4,650 3,417,750
Comcast U.K. Cable Partners Ltd. Yankee
Senior Debenture (B2, B)+
11.201% 11/15/07......................... 1,350 810,000
Falcon Holdings Group L.P. Senior
Subordinated Notes PIK Bonds (NR, NR)
11.00% 09/15/03.......................... 3,129 3,129,154
Helicon Group Ltd. Senior Secured Notes,
Series B (B1, B)+
9.00% 11/01/03........................... 850 855,312
Marcus Cable Company Senior Discount Notes
(Caa, B)+
14.25% 12/15/05.......................... 1,450 989,625
People's Choice TV Corp. Units (Caa, CCC+)+
13.125% 06/01/04......................... 950 603,250
Rifkin Acquisition Partners L.P. 144A
Senior Subordinated Notes (B3, B-)****
11.125% 01/15/06......................... 500 512,500
Rogers Communications, Inc. Yankee Senior
Notes
(B2, BB-)
9.125% 01/15/06.......................... 550 554,125
United International Holdings, Inc. Senior
Secured Debentures, Series B (B3, B-)
0.00% 11/15/99........................... 2,400 1,560,000
-------------
14,649,886
-------------
</TABLE>
See Accompanying Notes to Financial Statements.
51
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC
BEA HIGH YIELD PORTFOLIO
STATEMENT OF NET ASSETS (CONTINUED)
FEBRUARY 29, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
PAR
(000) VALUE
------------ -------------
<S> <C> <C>
CHEMICALS -- 0.5%
Harris Chemical North America Senior
Secured Debentures (B2, B+)
10.25% 07/15/01.......................... $ 400 $ 406,000
-------------
CONSTRUCTION & BUILDING MATERIALS -- 2.4%
Associated Materials Inc.
Senior Subordinated Notes
(B3, B-)
11.50% 08/15/03.......................... 750 599,063
Buildings Materials Corp. of American Notes
Series B
(B1, BB)+
11.75% 07/01/04.......................... 900 654,750
G I Holdings Inc. Senior Deferred Notes,
Series B (Ba3, B+)
0.00% 10/01/98........................... 410 330,562
G I Holdings Inc. Senior Notes 144A (NR,
NR)****
10.00% 02/15/06.......................... 389 403,041
-------------
1,987,416
-------------
CONSUMER PRODUCTS -- 4.0%
Doane Products Senior Notes
(B3, B+)
10.625% 03/01/06......................... 600 601,500
Figgie International, Inc. Senior Notes
(B1, BB)
9.875% 10/01/99.......................... 750 753,750
Jordan Industries Senior Notes (B3, B+)
10.375% 08/01/03......................... 450 406,125
Revlon Worldwide Corp. Senior Secured
Discount Notes, Series B (B3, B-)
0.00% 03/15/98........................... 1,900 1,529,500
-------------
3,290,875
-------------
ELECTRONICS -- 1.3%
Unisys Corp. Notes (B1, B+)
15.00% 07/01/97.......................... 1,000 1,047,500
-------------
<CAPTION>
PAR
(000) VALUE
------------ -------------
<S> <C> <C>
ENERGY -- 1.9%
Mesa, Inc. Secured Discount Notes (Caa,
CCC+)
12.75% 06/30/98.......................... $ 1,600 $ 1,576,000
-------------
ENTERTAINMENT -- 12.7%
Bally's Casino Holdings Inc. Senior
Discount Notes (B2, B+)
0.00% 06/15/98........................... 1,500 1,252,500
Casino Magic Finance Corp. First Mortgage
Notes (B1, B+)
11.50% 10/15/01.......................... 1,000 932,500
Coast Hotel & Casino 144A First Mortgage
Notes (B3, B)****
13.00% 12/15/02.......................... 1,000 1,015,000
Courtyard By Marriott Senior Secured Notes
(NR, B-)
10.75% 02/01/08.......................... 650 653,250
GNF Corp. First Mortgage Notes Series B
(B2, BB)
10.625% 04/01/03......................... 1,250 1,251,562
Griffin Gaming & Entertainment, Inc. Senior
Notes (NR, NR)
11.00% 09/15/03.......................... 750 746,250
Stratosphere Corp. First Mortgage Notes
(B2, B)
14.25% 05/15/02.......................... 1,150 1,382,875
Trump Taj Mahal Funding Inc., Units PIK
(Caa, NR)
11.35% 11/15/99.......................... 1,600 1,650,000
Trump's Castle Funding Mortgage (Caa, NR)
11.75% 11/15/03.......................... 1,500 1,428,750
-------------
10,312,687
-------------
FINANCIAL SERVICES -- 2.8%
Fifth Mexican Acceptance Corp. Rule 144A
Notes Tranche A (NR, NR)**/****
8.00% 12/15/98........................... 5,040 2,268,000
-------------
</TABLE>
See Accompanying Notes to Financial Statements.
52
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC
BEA HIGH YIELD PORTFOLIO
STATEMENT OF NET ASSETS (CONTINUED)
FEBRUARY 29, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
PAR
(000) VALUE
------------ -------------
<S> <C> <C>
HEALTH CARE -- 4.3%
General Medical Corp. Subordinated
Debentures, Series A PIK Bonds (Caa, B-)
12.125% 08/15/05......................... $ 3,205 $ 3,133,092
Paracelsus Healthcare Corp. Senior
Subordinated Notes
(B1, B)
9.875% 10/15/03.......................... 400 404,500
-------------
3,537,592
-------------
INDUSTRIAL GOODS & MATERIALS -- 5.1%
Alpine Group, Inc. Senior
Notes Series B (B3, B)
12.25% 07/15/03.......................... 750 738,750
Alvey Systems 144A Senior Subordinated
Notes (B3, B-)****
11.375% 01/31/03......................... 500 521,250
Exide Corp. Senior Subordinated Debentures
(B2, B+)+
12.25% 12/15/04.......................... 2,380 2,002,175
Venture Holdings Trust Gtd. Senior
Subordinated Notes (B3, B)
9.75% 04/01/04........................... 1,000 847,500
-------------
4,109,675
-------------
METALS & MINING -- 2.1%
Acme Metals Inc. Senior Secured Debentures
(B1, B)+
13.50% 08/01/04.......................... 2,000 1,735,000
-------------
OFFICE EQUIPMENT & SUPPLIES -- 0.6%
Knoll Group Inc. 144A Senior Subordinated
Notes (B3, B-)****
10.875% 03/15/06......................... 500 512,500
-------------
<CAPTION>
PAR
(000) VALUE
------------ -------------
<S> <C> <C>
PAPER & FOREST PRODUCTS -- 8.9%
Crown Packaging Holdings Ltd. Senior
Subordinated Discount Notes, Series B
(Caa, NR)+
12.25% 11/01/03.......................... $ 3,300 $ 1,485,000
Gaylord Container Corp. Senior Subordinated
Debentures
(Caa, B-)+
12.75% 05/15/05.......................... 2,650 2,749,375
P.T. Indah Kiat Pulp & Paper Corp.
Guaranteed Notes, Series B
(Ba2, BB)
11.875% 06/15/02......................... 995 1,042,262
P.T. Indah Kiat Pulp & Paper Corp. Sr.
Secured Debentures
(Ba2, BB)
8.875% 11/01/00.......................... 630 604,800
Stone Container Corp. Senior Notes (B1, B+)
9.875% 02/01/01.......................... 1,405 1,359,338
-------------
7,240,775
-------------
RETAIL -- 2.4%
Farm Fresh, Inc. Senior Notes (B2, B-)
12.25% 10/01/00.......................... 1,100 954,250
Jitney-Jungle Stores of America, Inc.
Senior Notes
(B2, B)
12.00% 03/01/06.......................... 1,000 1,000,625
-------------
1,954,875
-------------
TELECOMMUNICATIONS -- 15.6%
American Communication Services Inc. Unit
144A
(NR, NR)****/+
13.00% 11/01/05.......................... 1,500 990,000
Brooks Fiber Properties Inc. Senior
Discount Notes 144A
(NR, NR)****/+
10.875% 03/01/06......................... 2,500 1,487,500
</TABLE>
See Accompanying Notes to Financial Statements.
53
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC
BEA HIGH YIELD PORTFOLIO
STATEMENT OF NET ASSETS (CONTINUED)
FEBRUARY 29, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
PAR
(000) VALUE
------------ -------------
<S> <C> <C>
TELECOMMUNICATIONS -- (CONTINUED)
CS Wireless Systems, Inc. Units 144A (NR,
NR)****/+
11.375% 03/01/06......................... $ 1,700 $ 981,750
Diamond Cable Communication Plc Senior
Discount Notes
(B3, B-)+
11.75% 12/15/05.......................... 1,600 990,000
Geotek Communications, Inc. 144A Senior
Subordinated Convertible Notes (NR,
NR)****
12.00% 02/15/01.......................... 1,600 1,600,000
InterCel, Inc. Units (B2, CCC+)+
12.00% 02/01/06.......................... 1,300 768,625
International Cabletel, Inc. Senior
Deferred Coupon Notes, Series A (B3, B)+
12.75% 04/15/05.......................... 750 495,000
International Cabletel, Inc. 144A Senior
Deferred Coupon Notes, Series A (B3,
B+)****/+
11.50% 02/01/06.......................... 750 450,937
MFS Communications Co., Inc. Senior
Discount Notes (B1, B)+
8.875% 01/15/06.......................... 1,350 880,875
Mobile Telecommunications Technologies
Senior Subordinated Notes (B2, BB-)
13.50% 12/15/02.......................... 1,000 1,085,000
Nextel Communications, Inc. Senior Notes
(B3, CCC-)+
9.75% 08/15/04........................... 2,000 1,185,000
Pagemart Nationwide Senior Discount Notes
(NR, NR)+
15.00% 02/01/05.......................... 1,000 677,500
People's Telephone Co., Inc. Senior Notes
(B2, B-)
12.25% 07/15/02.......................... 450 418,500
<CAPTION>
PAR
(000) VALUE
------------ -------------
<S> <C> <C>
TELECOMMUNICATIONS -- (CONTINUED)
Videotron Holdings Plc Yankee Senior
Discount Notes
(B3, B+)+
11.00% 08/15/05.......................... $ 1,000 $ 657,500
-------------
12,668,187
-------------
TRANSPORTATION -- 1.7%
NWA Trust Mezzanine Aircraft Notes, Series
D (Ba1, BB+)
13.875% 06/21/08......................... 1,140 1,359,450
-------------
TOTAL CORPORATE BONDS
(Cost $77,979,444)........................ 77,015,481
-------------
<CAPTION>
NUMBER
OF SHARES
------------
<S> <C> <C>
PREFERRED STOCK -- 4.8%
PUBLISHING & INFORMATION SERVICES -- 1.3%
K-III Communications 144A****.............. 10,000 1,010,000
-------------
RADIO & TELEVISION MEDIA -- 2.5%
Cablevision Systems 144A****............... 20,000 2,050,000
-------------
UTILITIES -- 1.0%
El Paso Electric Company................... 7,500 783,750
-------------
TOTAL PREFERRED STOCK
(Cost $3,750,000)......................... 3,843,750
-------------
RIGHTS/WARRANTS*** -- 0.1%
CONSTRUCTION & BUILDING MATERIALS -- 0.0%
Capital Pacific Holdings Group, Inc.
Expiring 05/01/02........................ 12,640 12,640
-------------
INDUSTRIAL GOODS & MATERIALS -- 0.1%
Uniroyal Technology Warrants Expiring
06/01/03................................. 43,500 84,280
-------------
TOTAL RIGHTS/WARRANTS
(Cost $93,953)............................ 96,920
-------------
</TABLE>
See Accompanying Notes to Financial Statements.
54
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC
BEA HIGH YIELD PORTFOLIO
STATEMENT OF NET ASSETS (CONCLUDED)
FEBRUARY 29, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
NUMBER
OF SHARES VALUE
------------ -------------
<S> <C> <C>
SHORT-TERM INVESTMENT -- 7.8%
BBH Grand Cayman U.S. Dollar Time Deposit
4.8125% 03/01/96......................... 6,342 $ 6,342,000
-------------
TOTAL SHORT-TERM INVESTMENT
(Cost $6,342,000)........................ 6,342,000
-------------
TOTAL INVESTMENTS AT VALUE
(Cost $88,165,397) -- 107.3%............................. $ 87,298,151
INVESTMENT SECURITIES
PURCHASED PAYABLE -- (7.4%).............................. (6,025,269)
OTHER ASSETS IN EXCESS OF
LIABILITIES -- 0.1%...................................... 99,425
-------------
NET ASSETS (Applicable To
4,964,464 BEA Shares) -- 100.0%.......................... $ 81,372,307
-------------
-------------
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE PER
SHARE ($81,372,307 DIVIDED BY 4,964,464)................. $16.39
-------------
-------------
</TABLE>
* Cost for Federal income tax purposes at February 29, 1996 is $88,401,214.
The gross appreciation (depreciation) on a tax basis is as follows:
<TABLE>
<S> <C>
Gross Appreciation......................... $ 2,171,943
Gross Depreciation......................... (3,275,006)
------------
Net Depreciation........................... $ (1,103,063)
------------
------------
</TABLE>
** Guaranteed by Grupo Sidek, S.A. de C.V. and Grupo Situr, S.A. de C.V.
*** Non-income Producing Securities.
****Certain conditions for public sales may exist.
+ Step-up Bonds -- The interest rate as of February 29, 1996 is 0% and will
reset to interest rate shown at a future date.
The Moody's Investors Service, Inc. and Standard & Poor's Corporations ratings
indicated are the most recent ratings available at February 29, 1996 and are
unaudited.
INVESTMENT ABBREVIATIONS
<TABLE>
<S> <C>
PIK....................... Pay In Kind
</TABLE>
See Accompanying Notes to Financial Statements.
55
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
BEA HIGH YIELD PORTFOLIO
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED
FEBRUARY 29, 1996
(UNAUDITED)
<TABLE>
<S> <C>
INVESTMENT INCOME
Interest................................... $ 5,166,459
--------------
EXPENSES
Investment advisory fees................... 368,240
Administration Service fees................ 78,909
Administration fees........................ 65,757
Registration fees.......................... 15,521
Custodian fees............................. 13,014
Printing expense........................... 10,058
Transfer agent fees........................ 6,315
Organization expense....................... 5,303
Audit fees................................. 4,561
Legal fees................................. 1,878
Insurance expense.......................... 1,545
Directors fees............................. 891
Miscellaneous fees......................... 644
--------------
572,636
Less fees waived........................... (66,428)
--------------
TOTAL EXPENSES........................... 506,208
--------------
NET INVESTMENT INCOME........................ 4,660,251
--------------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain on Investments........... 1,358,206
Net unrealized appreciation on
Investments............................... 2,455,365
--------------
NET GAIN ON INVESTMENTS.................... 3,813,571
--------------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS................................ $ 8,473,822
--------------
--------------
</TABLE>
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE
SIX MONTHS
ENDED FOR THE
FEBRUARY 29, YEAR ENDED
1996 AUGUST 31,1995
-------------- --------------
(UNAUDITED)
<S> <C> <C>
Increase in net assets:
Operations:
Net investment income...................... $ 4,660,251 $ 13,411,565
Net gain(loss) on investments and foreign
currency.................................. 3,813,571 (2,367,436)
-------------- --------------
Net increase in net assets resulting from
operations................................ 8,473,822 11,044,129
-------------- --------------
Distribution to shareholders:
Dividends to shareholders from net investment
income:
BEA shares ($.82 and $1.34, respectively,
per share).............................. (7,041,478) (12,388,703)
-------------- --------------
Net capital share transactions............... (73,680,994) 11,448,059
-------------- --------------
Total increase (decrease) in net assets...... (72,248,650) 10,103,485
Net Assets:
Beginning of period........................ 153,620,957 143,517,472
-------------- --------------
End of period.............................. $ 81,372,307 $ 153,620,957
-------------- --------------
-------------- --------------
</TABLE>
See Accompanying Notes to Financial Statements.
56
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
BEA MUNICIPAL BOND PORTFOLIO
STATEMENT OF NET ASSETS
FEBRUARY 29, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
PAR
(000) VALUE
------------ -------------
<S> <C> <C>
MUNICIPAL BONDS -- 96.7%
CALIFORNIA -- 10.0%
California State GO (Aaa, AAA)
5.125% 10/01/17.......................... $ 825 $ 770,344
Los Angeles CA Department of Water & Power
Water Revenue (Aa, AA)
4.50% 05/15/23........................... 675 569,531
Southern California Public Power Authority
Power Project Revenue Series A (AMBAC
Insured) (A1, AA-)
5.00% 07/01/17........................... 705 637,144
-------------
1,977,019
-------------
COLORADO -- 2.9%
Colorado Springs CO Utility Revenue (Aaa,
AAA)
5.875% 11/15/17.......................... 550 577,500
-------------
FLORIDA -- 10.8%
Florida State GO (Aa, AA)
5.50% 10/01/08........................... 710 687,813
Jacksonville FL Electric Authority Revenue
2nd Installment (Aaa, AAA)
6.00% 07/01/12........................... 610 647,363
Tallahassee FL Electric Revenue First Lien
(Aaa, AAA)
6.10% 10/01/06........................... 730 788,400
-------------
2,123,576
-------------
ILLINOIS -- 3.3%
Illinois State Sales Tax Revenue Series Q
(A1, AAA)
5.75% 06/15/14........................... 650 654,875
-------------
LOUISIANA -- 3.5%
New Orleans LA Home Mortgage Authority SOB
(Aaa, AAA)
6.25% 01/15/11........................... 635 685,800
-------------
<CAPTION>
PAR
(000) VALUE
------------ -------------
<S> <C> <C>
MARYLAND -- 4.9%
Maryland State Transportation Authority
Project Revenue (Aaa, AAA)
6.80% 07/01/16........................... $ 850 $ 966,875
-------------
MISSISSIPPI -- 4.6%
Mississippi State GO
(Aaa, AAA)
6.20% 02/01/08........................... 845 908,375
-------------
NEW YORK -- 27.1%
New York State Dormitory Authority Revenue
(Episcopal Health Services) (GNMA Coll.)
(NR, AAA)
7.55% 08/01/29........................... 420 456,225
New York State Dormitory Authority Revenue
(Judicial Facilities Lease) (MBIA
Insured) (Aaa, AAA)
7.375% 07/01/16.......................... 605 741,881
New York State Medical Care Facility
Finance Agency Hospital & Nursing Home
Insured Mortgage Revenue (NR, AAA)
5.50% 02/15/22........................... 785 758,506
New York State Power Authority Revenue &
General Purpose Electric Revenue Series R
(Aaa, AAA)
7.00% 01/01/10........................... 325 390,813
New York State Power Authority Revenue
Series V (MBIA Insured) (NR, AAA)
7.875% 01/01/98.......................... 790 864,063
New York State Throughway Authority General
Revenue Series B (MBIA Ins.)
5.00% 01/01/20........................... 870 805,837
Suffolk County NY Water Authority
Waterworks Revenue Series V (NR, AAA)
6.75% 06/01/12........................... 580 666,275
</TABLE>
See Accompanying Notes to Financial Statements.
57
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
BEA MUNICIPAL BOND PORTFOLIO
STATEMENT OF NET ASSETS (CONCLUDED)
FEBRUARY 29, 1996
(UNAUDITED)
<TABLE>
<CAPTION>
PAR
(000) VALUE
------------ -------------
<S> <C> <C>
NEW YORK -- (CONTINUED)
Triborough Bridge & Tunnel Authority NY
Mortgage Recording Tax SOB Series A (Aaa,
AAA)
7.125% 01/01/00.......................... $ 600 $ 669,000
-------------
5,352,600
-------------
PUERTO RICO -- 7.5%
Commonwealth of Puerto Rico Aqueduct &
Sewer Authority Revenue Series A
(Commonwealth Guaranteed) (Baa1, A)
7.875% 07/01/98.......................... 530 588,962
Commonwealth of Puerto Rico GO (Baa1, A)
5.40% 07/01/07........................... 730 740,950
Puerto Rico Electric Power Authority
Revenue Series N
(Baa1, A-)
7.125% 07/01/14.......................... 135 146,813
-------------
1,476,725
-------------
SOUTH DAKOTA -- 5.4%
Heartland Consumers Power District SD
Electric Revenue (Aaa, AAA)
7.00% 01/01/16........................... 925 1,055,656
-------------
UTAH -- 6.3%
Intermountain Power Agency UT Power Supply
Revenue Series D (Aa, AA-)
5.00% 07/01/21........................... 715 649,756
Utah State School District Finance
Cooperative Revenue (Capital Imp.
Financing Pool) (NR, AA+)
8.375% 08/15/98.......................... 535 582,481
-------------
1,232,237
-------------
VIRGINIA -- 3.7%
Fairfax County VA Redevelopment & Housing
Authority Mortgage Revenue (FHA Insured)
(NR, AAA)
7.10% 04/01/19........................... 610 731,237
-------------
<CAPTION>
PAR
(000) VALUE
------------ -------------
<S> <C> <C>
VIRGIN ISLANDS -- 3.3%
Virgin Islands Public Finance Authority
Revenue (NR, BBB)
7.70% 10/01/04........................... $ 585 $ 644,963
-------------
WASHINGTON -- 3.4%
Seattle WA Water System Revenue (Aa, AA)
5.25% 12/01/23........................... 710 672,725
-------------
TOTAL MUNICIPAL BONDS
(Cost $17,960,847)...................... 19,060,163
-------------
SHORT-TERM INVESTMENT -- 3.4%
Smith Barney Tax Free Money Market Fund.... 682 682,371
-------------
TOTAL SHORT-TERM INVESTMENT
(Cost $682,371)....................................... 682,371
-------------
TOTAL INVESTMENTS AT VALUE -- 100.1%
(Cost $18,643,218*)........................ $ 19,742,534
LIABILITIES IN EXCESS OF
OTHER ASSETS -- (0.1%)..................... (22,781)
-------------
NET ASSETS (Applicable to 1,305,313 BEA
shares) -- 100.0%.......................... $ 19,719,753
-------------
-------------
NET ASSET VALUE, OFFERING PRICE AND
REDEMPTION PRICE PER SHARE
($19,719,753 DIVIDED BY 1,305,313)........ $15.11
-------------
-------------
</TABLE>
* Cost for Federal income tax purposes at February 29, 1996 is $18,632,154. The
gross appreciation (depreciation) on a tax basis is as follows:
<TABLE>
<S> <C>
Gross Appreciation............ $1,126,550
Gross Depreciation............ (16,170)
----------
Net Appreciation.............. $1,110,380
----------
----------
</TABLE>
The Moody's Investors Service, Inc. and Standard & Poor's Corporations ratings
are the most recent ratings available at February 29, 1996 and are unaudited.
INVESTMENT ABBREVIATIONS
<TABLE>
<S> <C>
GO............................ General Obligations
SOB........................... Special Obligation Bonds
</TABLE>
See Accompanying Notes to Financial Statements.
58
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
BEA MUNICIPAL BOND FUND PORTFOLIO
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED
FEBRUARY 29, 1996
(UNAUDITED)
<TABLE>
<S> <C>
INVESTMENT INCOME
Interest................................... $ 747,989
-----------
EXPENSES
Investment advisory fees................... 93,866
Administration service fees................ 20,114
Registration fees.......................... 16,847
Administration fees........................ 16,762
Custodian fees............................. 10,545
Transfer agent fees........................ 10,009
Miscellaneous fees......................... 5,967
Printing fees.............................. 4,914
Organization expense....................... 3,696
Audit fees................................. 3,232
Legal fees................................. 1,989
Insurance expense.......................... 547
Directors fees............................. 348
-----------
188,836
Less fees waived........................... (54,742)
-----------
TOTAL EXPENSES........................... 134,094
-----------
NET INVESTMENT INCOME........................ 613,895
-----------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS:
Net realized gain on investments........... 891,144
Net unrealized depreciation on
investments............................... (908,225)
-----------
NET LOSS ON INVESTMENTS...................... (17,081)
-----------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS.................................. $ 596,814
-----------
-----------
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE
SIX MONTHS FOR THE
ENDED YEAR ENDED
FEBRUARY 29, AUGUST 31,
1996 1995
------------- -------------
(UNAUDITED)
<S> <C> <C>
Increase (decrease) in net assets:
Operations:
Net investment income.................... $ 613,895 $ 2,273,373
Net gain(loss) on investments............ (17,081) 1,835,066
------------- -------------
Net increase in net assets resulting from
operations.............................. 596,814 4,108,439
------------- -------------
Distributions to shareholders:
Dividends to shareholders from net investment
income:
BEA shares ($.39 and $.76 respectively,
per share).............................. (681,330) (2,400,128)
Distributions to shareholders from net
realized capital gains:
BEA shares ($.43 and $.05 respectively,
per share).............................. (629,414) (174,436)
------------- -------------
Total distributions to shareholders........ (1,310,744) (2,574,564)
------------- -------------
Net capital share transactions............... (28,544,154) 5,134,026
------------- -------------
Total increase (decrease) in net assets...... (29,258,084) 6,667,901
Net Assets:
Beginning of period........................ 48,977,837 42,309,936
------------- -------------
End of period.............................. $ 19,719,753 $ 48,977,837
------------- -------------
------------- -------------
</TABLE>
See Accompanying Notes to Financial Statements.
59
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
BEA INTERNATIONAL EQUITY PORTFOLIO
-----------------------------------------------------------------------------
FOR THE
SIX MONTHS ENDED FOR THE FOR THE FOR THE PERIOD
FEBRUARY 29, 1996 YEAR ENDED YEAR ENDED OCTOBER 1, 1992*
----------------- AUGUST 31, 1995 AUGUST 31, 1994 TO
----------------- ----------------- AUGUST 31, 1993
(UNAUDITED) -----------------
<S> <C> <C> <C> <C>
Net asset value, beginning of
period............................ $ 18.24 $ 20.73 $ 18.73 $ 15.00
----------------- ----------------- ----------------- -----------------
Income from investment operations
Net investment income.......... .01 .06 .05 .04
Net gain (loss) on securities
(both realized and
unrealized)................... 1.02 (1.75) 2.60 3.69
----------------- ----------------- ----------------- -----------------
Total from investment
operations.................... 1.03 (1.69) 2.65 3.73
----------------- ----------------- ----------------- -----------------
Less Distributions
Dividends from net investment
income........................ (.07) -- (.05) --
Distributions from capital
gains......................... -- (.80) (.60) --
----------------- ----------------- ----------------- -----------------
Total distributions............ (.07) (.80) (.65) --
----------------- ----------------- ----------------- -----------------
Net asset value, end of
period........................ $ 19.20 $ 18.24 $ 20.73 $ 18.73
----------------- ----------------- ----------------- -----------------
----------------- ----------------- ----------------- -----------------
Total return....................... 5.66%(c)(d) (8.06%)(d) 14.23%(d) 24.87%(c)(d)
Ratio/Supplemental Data
Net assets, end of period...... $ 785,931,152 $ 773,254,630 $ 767,189,791 $ 268,403,524
Ratio of expenses to average
net assets.................... 1.22%(a)(b) 1.25%(a) 1.25%(a) 1.25%(a)(b)
Ratio of net investment income
to average net assets......... .06%(b) .35% .33% .41%(b)
Portfolio turnover rate........ 41%(c) 78% 104% 106%(c)
Average commission rate........ $.03
</TABLE>
(a) Without the voluntary waiver of advisory fees and administration fees, the
ratios of expenses to average net assets would have been 1.22% annualized,
1.26%, 1.30% and 1.46% annualized for the BEA International Equity
Portfolio.
(b) Annualized.
(c) Not Annualized.
(d) Redemption fees not reflected in total return.
* Commencement of operations.
See Accompanying Notes to Financial Statements.
60
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
BEA EMERGING MARKETS EQUITY PORTFOLIO
---------------------------------------------------------------------
FOR THE
SIX MONTHS FOR THE FOR THE FOR THE PERIOD
ENDED YEAR ENDED YEAR ENDED FEBRUARY 1,
FEBRUARY 29, AUGUST 31, 1995 AUGUST 31, 1994 1993* TO
1996 --------------- --------------- AUGUST 31, 1993
--------------- ---------------
(UNAUDITED)
<S> <C> <C> <C> <C>
Net asset value, beginning of
period............................ $ 17.67 $ 24.58 $ 18.38 $ 15.00
--------------- --------------- --------------- ---------------
Income from investment operations
Net investment income (loss)... .04 .02 (.03) .02
Net gain (loss) on securities
(both realized and
unrealized)................... .33 (5.94) 6.64 3.36
--------------- --------------- --------------- ---------------
Total from investment
operations.................... .37 (5.92) 6.61 3.38
--------------- --------------- --------------- ---------------
Less Distributions
Dividends from net investment
income........................ (.05) (.07) (.09) --
Distributions from capital
gains......................... -- (.92) (.32) --
--------------- --------------- --------------- ---------------
Total distributions............ (.05) (.99) (.41) --
--------------- --------------- --------------- ---------------
Net asset value, end of
period........................ $ 17.99 $ 17.67 $ 24.58 $ 18.38
--------------- --------------- --------------- ---------------
--------------- --------------- --------------- ---------------
Total return....................... 2.14%(c)(d) (24.42%)(d) 35.99%(d) 22.53%(c)(d)
Ratio/Supplemental Data
Net assets, end of period...... $ 136,150,296 $ 128,322,563 $ 140,675,379 $ 21,988,062
Ratio of expenses to average
net assets.................... 1.50%(a)(b) 1.50%(a) 1.50%(a) 1.50%(a)(b)
Ratio of net investment income
(loss) to average net
assets........................ .43%(b) .02% (.02)% .28%(b)
Portfolio turnover rate........ 37%(c) 79% 54% 38%(c)
Average commission rate........ $.02
</TABLE>
(a) Without the voluntary waiver of advisory fees and administration fees and
without the reimburesement of operating expenses the ratios of expenses to
average net assets would have been 1.62% annualized, 1.61%, 2.01% and 3.23%
annualized for the BEA Emerging Markets Equity Portfolio.
(b) Annualized.
(c) Not Annualized.
(d) Redemption fees not reflected in total return.
* Commencement of operations.
See Accompanying Notes to Financial Statements.
61
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
BEA U.S. CORE EQUITY PORTFOLIO BEA U.S. CORE FIXED INCOME PORTFOLIO
--------------------------------- ---------------------------------------------------
FOR THE FOR THE FOR THE PERIOD
SIX MONTHS FOR THE PERIOD SIX MONTHS FOR THE APRIL 1, 1994*
ENDED SEPTEMBER 1, ENDED YEAR ENDED TO
FEBRUARY 29, 1994* TO FEBRUARY 29, AUGUST 31, 1995 AUGUST 31, 1994
1996 AUGUST 31, 1995 1996 --------------- ---------------
--------------- --------------- ---------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of
period $ 17.86 $ 15.00 $ 15.42 $ 14.77 $ 15.00
--------------- --------------- --------------- --------------- ---------------
Income from investment operations
Net investment income.......... .11 .22 .44 .88 .42
Net gain(loss) on securities
(both realized and
unrealized)................... 2.71 2.72 .26 .61 (.40)
--------------- --------------- --------------- --------------- ---------------
Total from investment
operations.................... 2.82 2.94 .70 1.49 .02
--------------- --------------- --------------- --------------- ---------------
Less Distributions
Dividends from net investment
income........................ (.21) (.08) (.52) (.84) (.25)
Distributions from capital
gains......................... (1.61) -- (.22) -- --
--------------- --------------- --------------- --------------- ---------------
Total distributions............ (1.82) (.08) (.74) (.84) (.25)
--------------- --------------- --------------- --------------- ---------------
Net asset value, end of
period........................ $ 18.86 $ 17.86 $ 15.38 $ 15.42 $ 14.77
--------------- --------------- --------------- --------------- ---------------
--------------- --------------- --------------- --------------- ---------------
Total return....................... 16.41%(c) 19.75% 4.62%(c) 10.60% .17%(c)
Ratio/Supplemental Data
Net assets, end of period...... $ 44,963,657 $ 31,643,776 $ 137,344,861 $ 99,249,839 $ 30,015,818
Ratio of expenses to average
net assets.................... 1.00%(a)(b) 1.00%(a) .50%(a)(b) .50%(a) .50%(a)(b)
Ratio of net investment income
to average net assets......... 1.29%(b) 1.59% 6.44%(b) 6.47% 6.04%(b)
Portfolio turnover rate........ 71%(c) 123% 95%(c) 304% 186%(c)
Average commission rate........ $.07
</TABLE>
(a) Without the voluntary waiver of advisory fees and administration fees, the
ratios of expenses to average net assets would have been 1.36% annualized,
and 1.51% for the BEA U.S. Core Equity Portfolio and .78% annualized, .84%
and .99% annualized, for the BEA U.S. Core Fixed Income Portfolio.
(b) Annualized.
(c) Not annualized.
* Commencement of operations
See Accompanying Notes to Financial Statements.
62
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
BEA GLOBAL FIXED INCOME PORTFOLIO
---------------------------------------------------
FOR THE
SIX MONTHS FOR THE FOR THE PERIOD
ENDED YEAR ENDED JUNE 28, 1994*
FEBRUARY 29, AUGUST 31, 1995 TO
1996 --------------- AUGUST 31, 1994
--------------- ---------------
(UNAUDITED)
<S> <C> <C> <C>
Net asset value, beginning of
period............................ $ 15.67 $ 15.00 $ 15.00
--------------- --------------- ---------------
Income from investment operations
Net investment income.......... .39 1.06 .15
Net gain (loss) on securities
(both realized and
unrealized)................... .44 .49 (.15)
--------------- --------------- ---------------
Total from investment
operations.................... .83 1.55 --
--------------- --------------- ---------------
Less Distributions
Dividends from net investment
income........................ (.59) (.88) --
Distributions from capital
gains......................... (.15) -- --
--------------- --------------- ---------------
Total distributions............ (.74) (.88) --
--------------- --------------- ---------------
Net asset value, end of
period........................ $ 15.76 $ 15.67 $ 15.00
--------------- --------------- ---------------
--------------- --------------- ---------------
Total return....................... 5.39%(c) 10.72% 0.00%(c)
Ratio/Supplemental Data
Net assets, end of period.......... $ 33,821,262 $ 19,564,827 $ 6,300,360
Ratio of expenses to average
net assets.................... .75%(a)(b) .75%(a) .75%(a)(b)
Ratio of net investment income
to average net assets......... 5.99%(b) 7.26% 5.64%(b)
Portfolio turnover rate........ 68%(c) 91% 0%(c)
</TABLE>
(a) Without the voluntary waiver of advisory fees and administration fees and
without the reimbursement of operating expenses, the ratios of expenses to
average net assets would have been 1.14% annualized, 1.29% and 1.92%
annualized for the BEA Global Fixed Income Portfolio.
(b) Annualized.
(c) Not annualized.
* Commencement of operations
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 HIGH YIELD PORTFOLIO
---------------------------------------------------------------------
FOR THE
SIX MONTHS FOR THE FOR THE FOR THE PERIOD
ENDED YEAR ENDED YEAR ENDED MARCH 31, 1993*
FEBRUARY 29, AUGUST 31, 1995 AUGUST 31, 1994 TO
1996 --------------- --------------- AUGUST 31, 1993
--------------- ---------------
(UNAUDITED)
<S> <C> <C> <C> <C>
Net asset value, beginning of
period............................ $ 15.72 $ 15.94 $ 16.94 $ 15.00
--------------- --------------- --------------- ---------------
Income from investment operations
Net investment income.......... .69 1.42 1.20 .52
Net gain (loss) on securities
(both realized and
unrealized)................... .80 (.30) (.77) 1.42
--------------- --------------- --------------- ---------------
Total from investment
operations.................... 1.49 1.12 0.43 1.94
--------------- --------------- --------------- ---------------
Less Distributions
Dividends from net investment
income........................ (.82) (1.34) (1.43) --
Distributions from capital
gains......................... -- -- -- --
--------------- --------------- --------------- ---------------
Total distributions............ (.82) (1.34) (1.43) --
--------------- --------------- --------------- ---------------
Net asset value, end of
period........................ $ 16.39 $ 15.72 $ 15.94 $ 16.94
--------------- --------------- --------------- ---------------
--------------- --------------- --------------- ---------------
Total return....................... 9.85%(c) 7.79%(d) 2.24%(d) 12.93%(c)(d)
Ratio/Supplemental Data
Net assets, end of period.......... $ 81,372,307 $ 153,620,957 $ 143,517,472 $ 98,356,591
Ratio of expenses to average
net assets.................... .96%(a)(b) 1.00%(a) 1.00%(a) 1.00%(a)(b)
Ratio of net investment income
to average net assets......... 8.83%(b) 9.37% 7.73% 7.56%(b)
Portfolio turnover rate........ 76%(c) 70% 121% 72%(c)
</TABLE>
(a) Without the waiver of advisory fees and administration fees, the ratios of
expenses to average net assets would have been 1.05% annualized, 1.08%,
1.13% and 1.17% annualized for the BEA High Yield Portfolio.
(b) Annualized.
(c) Not annualized.
(d) Redemption fees not reflected in total return.
* Commencement of operations
See Accompanying Notes to Financial Statements.
64
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
BEA MUNICIPAL BOND FUND PORTFOLIO
---------------------------------------------------
FOR THE
SIX MONTHS FOR THE FOR THE PERIOD
ENDED YEAR ENDED JUNE 20, 1994*
FEBRUARY 29, AUGUST 31, 1995 TO
1996 --------------- AUGUST 31, 1994
--------------- ---------------
(UNAUDITED)
<S> <C> <C> <C>
Net asset value, beginning of
period............................ $ 15.46 $ 15.06 $ 15.00
--------------- --------------- ---------------
Income from investment operations
Net investment income.......... .39 .71 .09
Net gain (loss) on securities
(both realized and
unrealized)................... .08 .50 (.03)
--------------- --------------- ---------------
Total from investment
operations.................... .47 1.21 .06
--------------- --------------- ---------------
Less Distributions
Dividends from net investment
income........................ (.39) (.76) --
Distributions from capital
gains......................... (.43) (.05) --
--------------- --------------- ---------------
Total distributions............ (.82) (.81) --
--------------- --------------- ---------------
Net asset value, end of
period........................ $ 15.11 $ 15.46 $ 15.06
--------------- --------------- ---------------
--------------- --------------- ---------------
Total return....................... 3.03%(c) 8.42% .40%(c)
Ratio/Supplemental Data
Net assets, end of period $ 19,719,753 $ 48,977,837 $ 42,309,936
Ratio of expenses to average
net assets.................... 1.00%(a)(b) 1.00%(a) 1.00%(a)(b)
Ratio of net investment income
to average net assets......... 4.58%(b) 4.76% 3.27%(b)
Portfolio turnover rate........ 17%(c) 25% 9%(c)
</TABLE>
(a) Without the voluntary waiver of advisory fees and administration fees, the
ratios of expenses to average net assets would have been 1.40% annualized,
1.19% and 1.34% annualized for the BEA Municipal Bond Fund Portfolio.
(b) Annualized.
(c) Not annualized.
* Commencement of operations
See Accompanying Notes to Financial Statements.
65
<PAGE>
The BEA 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, 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.
The classes have been grouped into fifteen separate "families", seven of which
have begun investment operations: the BEA Family, the RBB Family, the Sansom
Street Family, the Bedford Family, the Cash Preservation Family, the Janney
Montgomery Scott Money Funds, the Warburg Pincus Family and the Bradford Family.
The BEA Family represents interests in seven portfolios which are covered by
this report.
A) SECURITY VALUATION -- Portfolio securities for which market
quotations are readily available are valued at market value, which is
currently determined using the last reported sales price. If no sales are
reported, as in the case of some securities traded over-the-counter,
portfolio securities are valued at the mean between the last reported bid
and asked prices. All other securities and assets are valued as determined
in good faith by the Board of Directors. Short-term obligations with
maturities of 60 days or less are valued at amortized cost which
approximates market value.
B) FOREIGN CURRENCY TRANSACTIONS -- Transactions denominated in
foreign currencies are recorded in the Portfolio's records at the current
prevailing exchange rates. Asset and liability accounts that are denominated
in a foreign currency are adjusted daily to reflect current exchange rates.
Transaction gains or losses resulting from changes in exchange rates during
the reporting period or upon settlement of the foreign currency transaction
are reported in operations for the current period. it is not practical to
isolate that portion of both realized and unrealized gains and losses on
investments in the statement of operations that result from fluctuations in
foreign currency exchange rates. The Fund reports certain foreign currency
related transactions as components of realized gains for financial reporting
purposes, whereas such components are treated as ordinary income (loss) for
Federal income tax purposes.
C) SECURITY TRANSACTIONS AND INVESTMENT INCOME -- Security
transactions are accounted for on the trade date. The cost of investments
sold is determined by use of the specific identification method for both
financial reporting and income tax purposes. Interest income is recorded on
the accrual basis. Dividends are recorded on the ex-dividend date. Certain
expenses, principally transfer agent and printing, are class specific
expenses and vary by class. Expenses not directly attributable to a specific
portfolio or class are allocated based on relative net assets of each
portfolio and class, respectively.
D) DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS -- Dividends from net
investment income and net realized capital gains will be declared and paid
at least annually. The character of distributions made during the year for
net investment income or net realized gains may differ from their ultimate
characterization for federal income tax purposes due to GAAP/tax differences
in the character of income and expense recognition. These differences are
primarily due to differing treatments for net operating losses,
mortgage-backed securities, passive foreign investment companies, and
forward foreign currency contracts.
E) FEDERAL INCOME TAXES -- No provision is made for Federal taxes as
it is the Fund's intention to have each portfolio qualify for and elect the
tax treatment applicable to regulated investment companies under the
Internal Revenue Code and make the requisite distributions to its
shareholders which will be sufficient to relieve it from Federal income and
excise taxes.
66
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FEBRUARY 29, 1996
(UNAUDITED)
NOTE 1.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
F) OTHER -- Securities denominated in currencies other than U.S.
dollars are subject to changes in value due to fluctuations in exchange
rates.
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 High Yield 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 six months ended February 29,
1996, advisory fees and waivers for each of the seven investment portfolios were
as follows:
<TABLE>
<CAPTION>
GROSS NET
ADVISORY FEE WAIVER ADVISORY FEE
-------------- -------------- --------------
<S> <C> <C> <C>
BEA International Equity Portfolio $ 2,997,649 $ -- $ 2,997,649
BEA Emerging Markets Equity
Portfolio 628,057 -- 628,057
BEA U.S. Core Equity Portfolio 133,197 (43,988) 89,209
BEA U.S. Core Fixed Income
Portfolio 198,165 (58,884) 139,281
BEA Global Fixed Income Portfolio 64,220 (30,847) 33,373
BEA High Yield Portfolio 368,240 (21,259) 346,981
BEA Municipal Bond Fund Portfolio 93,866 (39,992) 53,874
</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.
67
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FEBRUARY 29, 1996
(UNAUDITED)
NOTE 2.TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES (CONTINUED)
PFPC may, at its discretion, voluntarily waive all or any portion of its
administration fee for any of the portfolios. For the six months ended February
29, 1996, 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 $ 468,383 $-- $ 468,383
BEA Emerging Markets Equity Portfolio 78,507 -- 78,507
BEA U.S. Core Equity Portfolio 22,199 -- 22,199
BEA U.S. Core Fixed Income Portfolio 66,055 (21,138) 44,917
BEA Global Fixed Income Portfolio 16,055 (3,211) 12,844
BEA High Yield Portfolio 65,757 (2,657) 63,100
BEA Municipal Bond Fund Portfolio 16,762 -- 16,762
</TABLE>
Counsellors Funds Service, Inc. ("Counsellors Service"), a wholly-owned
subsidiary of Counsellors Securities Inc., serves as administrative services
agent. An administrative service fee is computed daily and payable monthly at an
annual rate of .15% of each portfolio's average daily net assets.
NOTE 3.PURCHASES AND SALES OF SECURITIES
For the six months ended February 29, 1996, 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 $294,785,271 $305,663,205 $ -- $ --
BEA Emerging Markets Equity Portfolio 52,732,541 44,334,424 -- --
BEA U.S. Core Equity Portfolio 30,217,962 24,223,725 -- --
BEA U.S. Core Fixed Income Portfolio 72,771,900 40,344,275 64,467,057 59,481,525
BEA Global Fixed Income Portfolio 11,178,200 729,333 14,796,169 12,156,110
BEA High Yield Portfolio 65,302,873 125,098,193 8,941,087 21,682,861
BEA Municipal Bond Fund Portfolio 3,291,593 33,242,079 891,875 864,022
</TABLE>
For the six months ended February 29, 1996, purchases include $63,758,608,
$6,926,876, $490,927, $12,486,601, and $204,100 of investment securities
received from shareholders in exchange for 3,532,392 shares, 413,792 shares,
26,616 shares, 791,234 shares, and 13,318 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 and BEA Municipal Bond Fund
Portfolio, respectively.
68
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FEBRUARY 29, 1996
(UNAUDITED)
NOTE 4.CAPITAL SHARES
Transactions in capital shares for each period were as follows:
<TABLE>
<CAPTION>
BEA INTERNATIONAL EQUITY BEA EMERGING MARKETS EQUITY
PORTFOLIO PORTFOLIO
------------------------------------------------------ ------------------------------------------------------
FOR THE SIX MONTHS ENDED FOR THE YEAR ENDED FOR THE SIX MONTHS ENDED FOR THE YEAR ENDED
FEBRUARY 29, 1996 AUGUST 31, 1995 FEBRUARY 29, 1996 AUGUST 31, 1995
-------------------------- -------------------------- -------------------------- --------------------------
SHARES VALUE SHARES VALUE SHARES VALUE SHARES VALUE
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Shares sold 6,446,522 $119,192,321 7,555,790 $141,210,504 1,301,974 $ 22,037,770 2,740,756 $ 45,977,774
Shares issued in
reinvestment of
dividends 137,894 2,523,456 1,783,551 31,977,179 19,043 323,157 290,750 5,614,374
Shares
repurchased, net
of redemption
fees (8,044,586) (146,300,175) (3,955,727) (69,857,127) (1,014,182) (16,746,609) (1,493,908) (25,817,939)
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
Net increase
(decrease) (1,460,170) ($24,584,398) 5,383,614 $103,330,556 306,835 $ 5,614,318 1,537,598 $ 25,774,209
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
------------ ------------ ------------ ------------ ------------ ------------ ------------ ------------
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 SIX MONTHS ENDED FOR THE YEAR ENDED FOR THE SIX MONTHS ENDED FOR THE YEAR ENDED
FEBRUARY 29, 1996 AUGUST 31, 1995 FEBRUARY 29, 1996 AUGUST 31, 1995
------------------------ ------------------------ ------------------------ ------------------------
SHARES VALUE SHARES VALUE SHARES VALUE SHARES VALUE
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Shares sold 557,148 $10,246,756 1,883,469 $28,923,460 3,556,108 $55,667,330 4,372,374 $64,282,193
Shares issued in
reinvestment of
dividends 188,415 3,346,258 7,112 102,838 335,097 5,153,730 229,407 3,338,279
Shares repurchased,
net of redemption
fees (133,924) (2,525,780) (118,327) (1,982,759) (1,399,775) (21,599,317) (195,402) (2,949,275)
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
Net increase 611,639 $11,067,234 1,772,254 $27,043,539 2,491,430 $39,221,743 4,406,379 $64,671,197
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
----------- ----------- ----------- ----------- ----------- ----------- ----------- -----------
BEA Shares
Authorized 500,000,000 500,000,000 500,000,000 500,000,000
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
</TABLE>
69
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FEBRUARY 29, 1996
(UNAUDITED)
NOTE 4.CAPITAL SHARES (CONTINUED)
Transactions in capital shares for each period were as follows:
<TABLE>
<CAPTION>
BEA GLOBAL FIXED INCOME BEA HIGH YIELD
PORTFOLIO PORTFOLIO
-------------------------------------------------- ---------------------------------------------------
FOR THE SIX MONTHS ENDED FOR THE YEAR ENDED FOR THE SIX MONTHS ENDED FOR THE YEAR ENDED
FEBRUARY 29, 1996 AUGUST 31, 1995 FEBRUARY 29, 1996 AUGUST 31, 1995
------------------------ ------------------------ ------------------------- ------------------------
SHARES VALUE SHARES VALUE SHARES VALUE SHARES VALUE
----------- ----------- ----------- ----------- ----------- ------------ ----------- -----------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Shares sold 824,398 $13,150,485 766,650 $11,427,093 1,765,333 $ 28,544,659 580,982 $ 8,824,836
Shares issued in
reinvestment of
dividends 73,450 1,152,539 61,519 924,756 439,536 6,854,438 825,245 12,285,993
Shares repurchased,
net of redemption
fees -- -- -- -- (7,014,571) (109,080,091) (632,837) (9,662,770)
----------- ----------- ----------- ----------- ----------- ------------ ----------- -----------
Net increase
(decrease) 897,848 $14,303,024 828,169 $12,351,849 (4,809,702) $(73,680,994) 773,390 $11,448,059
----------- ----------- ----------- ----------- ----------- ------------ ----------- -----------
----------- ----------- ----------- ----------- ----------- ------------ ----------- -----------
BEA Shares
Authorized 500,000,000 500,000,000 500,000,000 500,000,000
----------- ----------- ----------- -----------
----------- ----------- ----------- -----------
</TABLE>
<TABLE>
<CAPTION>
BEA MUNICIPAL BOND
PORTFOLIO
-----------------------------------------------------------
FOR THE SIX MONTHS ENDED FOR THE YEAR ENDED
FEBRUARY 29, 1996 AUGUST 31, 1995
-------------------------------- -------------------------
SHARES VALUE SHARES VALUE
------------ ------------ ------------ -----------
(UNAUDITED)
<S> <C> <C> <C> <C>
Shares sold 98,647 $ 1,512,522 935,296 $13,666,897
Shares issued in reinvestment
of dividends 79,372 1,221,498 123,547 1,831,054
Shares repurchased, net of
redemption fees (2,041,377) (31,278,174) (699,839) (10,363,925)
------------ ------------ ------------ -----------
Net increase (decrease) (1,863,358) $(28,544,154) 359,004 $ 5,134,026
------------ ------------ ------------ -----------
------------ ------------ ------------ -----------
BEA Shares Authorized 500,000,000 500,000,000
------------ ------------
------------ ------------
</TABLE>
70
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FEBRUARY 29, 1996
(UNAUDITED)
NOTE 5.NET ASSETS
At February 29, 1996, net assets consisted of the following (unaudited):
<TABLE>
<CAPTION>
BEA EMERGING BEA U.S.
BEA INTERNATIONAL MARKETS BEA U.S. CORE FIXED BEA GLOBAL BEA HIGH BEA MUNICIPAL
EQUITY EQUITY CORE EQUITY INCOME FIXED INCOME YIELD BOND FUND
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
----------------- ------------ ------------ ------------ ------------ ------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
Capital Paid-In $764,019,348 $152,448,843 $ 36,930,396 $134,395,263 $ 32,955,023 $ 95,739,020 $18,138,426
Accumulated Net
Investment Income
(Loss) (4,633,415) (542,049) 92,759 1,226,860 354,959 916,755 45,999
Accumulated Net
Realized Gain
(Loss) on Security
and Foreign
Exchange
Transactions (53,700,909) (24,641,730) 1,852,637 1,808,534 304,129 (14,416,223) 405,991
Net Unrealized
Appreciation
(Depreciation) on
Investments and
Other 80,246,128 8,885,232 6,087,865 (85,796) 207,151 (867,245) 1,129,337
----------------- ------------ ------------ ------------ ------------ ------------- -------------
$785,931,152 $136,150,296 $ 44,963,657 $137,344,861 $ 33,821,262 $ 81,372,307 $19,719,753
----------------- ------------ ------------ ------------ ------------ ------------- -------------
----------------- ------------ ------------ ------------ ------------ ------------- -------------
</TABLE>
NOTE 6.RESTRICTED SECURITIES
Certain of the BEA International Equity Portfolio's investments are
restricted as to resale and are valued at the direction of the Fund's Board of
Directors in good faith, at fair value, after taking into consideration
appropriate indications of value available. The table below shows the number of
shares held, the acquisition date, value as of February 29, 1996, percentage of
net assets which the securities comprise, aggregate cost and unit value of the
securities.
<TABLE>
<CAPTION>
NUMBER OF ACQUISITION 02/29/96 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 6,577,652 0.8% 6,000,000 10,963
------------- -------------
$ 8,160,825 $ 6,950,076
------------- -------------
------------- -------------
</TABLE>
NOTE 7.FORWARD FOREIGN CURRENCY CONTRACTS
The Funds will generally enter into forward foreign currency exchange
contracts as a way of managing foreign exchange rate risk. A Fund may enter into
these contracts to fix the U.S. dollar value of a security that it has agreed to
buy or sell for the period between the date the trade was entered into and the
date the security is delivered and paid for. A Fund may also use these contracts
to hedge the U.S. dollar value of securities it already owns denominated in
foreign currencies.
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.
71
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FEBRUARY 29, 1996
(UNAUDITED)
NOTE 7.FORWARD FOREIGN CURRENCY CONTRACTS (CONTINUED)
The use of forward foreign currency contracts does not eliminate
fluctuations in the underlying prices of the Fund's Portfolio Securities, but it
does establish a rate of exchange that can be achieved in the future. Although
forward foreign currency contracts limit the risk of loss due to a decline in
the value of the hedged currency, they also limit any potential gain that might
result should the value of the currency increase. In addition, the Funds could
be exposed to risks if the counterparties to the contracts are unable to meet
the terms of their contracts. During the six months ended February 29, 1996, the
BEA International Equity Portfolio, the BEA U.S. Core Fixed Income Portfolio and
the BEA Global Fixed Income Portfolio entered into forward foreign currency
contracts.
The BEA International Equity Portfolio's open Forward Foreign Currency
Contracts at February 29, 1996 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>
German Deutschemarks 03/26/96 32,100,000 $22,739,348 $21,867,677 $ 871,671
French Francs 03/26/96 48,400,000 9,765,152 9,611,655 153,497
Japanese Yen 03/26/96 3,112,600,000 32,049,011 29,718,341 2,330,670
Swiss Francs 03/26/96 3,200,000 2,836,628 2,677,018 159,610
------------ ------------ ---------------
$67,390,139 $63,874,691 $ 3,515,448
------------ ------------ ---------------
------------ ------------ ---------------
</TABLE>
The BEA U.S. Core Fixed Income Portfolio's open Forward Foreign Currency
Contract at February 29, 1996 was 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>
German Deutschemarks 03/15/96 350,000 $243,140 $238,290 $ 4,850
------------ ------------ ---------------
------------ ------------ ---------------
</TABLE>
72
<PAGE>
THE BEA FAMILY
THE RBB FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONCLUDED)
FEBRUARY 29, 1996
(UNAUDITED)
NOTE 7.FORWARD FOREIGN CURRENCY CONTRACTS (CONTINUED)
THE BEA GLOBAL FIXED INCOME PORTFOLIO'S OPEN FORWARD FOREIGN CURRENCY
CONTRACTS AT FEBRUARY 29, 1996 WERE AS FOLLOWS:
<TABLE>
<CAPTION>
UNREALIZED
FOREIGN FOREIGN
FORWARD CURRENCY EXPIRATION CURRENCY CONTRACT CONTRACT EXCHANGE
CONTRACT DATE TO BE SOLD AMOUNT VALUE GAIN/LOSS
- --------------------- --------- -------------- ------------ ------------ ---------------
<S> <C> <C> <C> <C> <C>
Australian Dollars 03/15/96 355,000 $261,990 $271,110 $ (9,120)
Australian Dollars 03/15/96 580,000 425,720 442,941 (17,221)
French Francs 03/15/96 2,900,000 589,431 575,700 13,731
German Deutschemarks 03/15/96 1,300,000 909,091 885,076 24,015
German Deutschemarks 03/15/96 270,000 187,370 183,824 3,546
German Deutschemarks 03/15/96 250,000 173,529 170,207 3,322
German Deutschemarks 03/15/96 1,690,000 1,158,820 1,150,599 8,221
German Deutschemarks 06/17/96 175,000 121,347 119,747 1,600
German Deutschemarks 06/17/96 275,000 190,970 188,174 2,796
Netherlands Guilder 03/15/96 870,000 542,326 529,100 13,226
Netherlands Guilder 03/15/96 1,860,000 1,155,279 1,131,180 24,099
Netherlands Guilder 03/15/96 2,930,000 1,793,145 1,781,913 11,232
Netherlands Guilder 06/17/96 296,000 183,282 181,039 2,243
Netherlands Guilder 06/17/96 315,500 195,950 192,965 2,985
Japanese Yen 03/15/96 80,000,000 800,000 762,885 37,115
Japanese Yen 03/15/96 125,228,000 1,220,029 1,222,763 (2,734)
Japanese Yen 06/17/96 26,000,000 251,147 250,809 338
Canadian Dollars 03/15/96 412,000 299,136 300,264 (1,128)
------------ ------------ ---------------
$10,458,562 $10,340,296 $ 118,266
------------ ------------ ---------------
------------ ------------ ---------------
</TABLE>
<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>
French Francs 03/15/96 1,000,000 199,920 198,517 (1,403)
Great British Pounds 03/15/96 590,000 887,950 903,652 15,702
Italian Lira 03/15/96 628,000,000 389,283 402,461 13,178
------------ ------------ ---------------
$1,477,153 $1,504,630 $ 27,477
------------ ------------ ---------------
------------ ------------ ---------------
</TABLE>
73
<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 High Yield Portfolio,
BEA Municipal Bond Fund Portfolio
Semi-Annual Report
February 29, 1996
