BRADFORD
GOVERNMENT
OBLIGATIONS
MONEY MARKET
PORTFOLIO
J.C. Bradford LOGO
Graphic Omitted
MEMBER NEW YORK STOCK EXCHANGE INC.
Semi-Annual Report
February 29, 1996
<PAGE>
BRADFORD GOVERNMENT OBLIGATIONS MONEY MARKET SHARES
THE RBB FUND, INC.
SEMI-ANNUAL INVESTMENT ADVISER'S REPORT
Investor sentiment reversed course during the last few months of 1995. In
the second half of the year, investors believed that the Federal Reserve had
successfully engineered a "soft landing" and expected President Clinton and
Congress to agree on a plan that would balance the federal budget by 2002. As
1996 began, however, fears of recession began to re-emerge and the budget
negotiations, which had become very intense in December and January, all but
disappeared as politics and state primaries took center stage.
The lack of economic data due to the recently ended federal government
shutdown has added to the difficulty of assessing the current economic
environment.It is clear, however, that the economy is not robust. While retail
sales over the past three months suggest that real consumer spending should be
growing at a 2.0-2.5% rate, the manufacturing economy continues to be weak, as
evidenced by the National Association of Purchasing Managers' reading below 50.
But even this indicator has stabilized, suggesting that inventory reduction
programs have run their course. Nonetheless, business confidence remains high
and firms continue to invest in producer durable goods such as computers and
machine tools. Available evidence further points to continued strength in
exports, which are benefitting from the earlier low level of the dollar and the
high quality of U.S.-produced goods. The federal government remains the weak
link in a modest growth forecast and the budget impasse only exacerbates the
effect on U.S. output as the government buys fewer goods and services.
The nation's weak economic conditions fostered a declining interest rate
environment for the six-month period ended February 29, 1996. During this
period, the Federal Reserve reduced the federal funds rate to 5.25% from 5.75%
and the discount rate to 5.00% from 5.25%. Volatile market conditions
dramatically altered the shape of the yield curve (3-months to 30-years) from a
spread of 117 points on September 1, 1995 to a steepening bias of 145 basis
points on February 29, 1996. As the treasury market rallied, lowering the yield
on the long bond to 6%, yield spreads on mortgages widened initially but by
February 29, spreads narrowed below their six-month averages. Overall, this
sector underperformed as prepayments and duration concerns increased selling
pressure. The corporate sector realized excellent returns as heavy investor
demand absorbed all new issuance plus strengthening credit quality forced yield
spreads to tighten considerably.
Taking all the sources of final demand together, modest economic growth is
still the most likely forecast -- 2.5% real GDP growth in 1996, with the first
half of the year being relatively weak and the second half of the year
strengthening. Even this modest growth is going to require some help from the
Fed. The Fed's two federal funds rate cuts of 25 basis points each in 1995 were
not enough. With the dramatic fall in long-term interest rates, the flattening
of the yield curve through 1995 is a threat to the economy and raises the
specter of recession. Some steepening is necessary, which would indicate the
addition of liquidity to the system. We expect that steepening to come from a
combination of lower short-term interest rates and slightly higher long-term
rates.
Tax-exempt money market funds experienced record growth during the six
months ended February 29, 1996. Assets hit new all-time highs in each month and
ended the period at $134.7 billion, up $19.6 billion or 17% from last year. This
surge in assets can be attributed to uncertainty over changes to the tax code
and flat tax proposals, the Washington budget impasse, new T+3 settlement rule
changes and an inverted yield curve.
Investor concerns about credit quality created enormous demand for high
quality paper during the period. The pressure on the Japanese banking system, as
well as the ratings downgrades on several Japanese banks, widened the spreads
between Japanese letters of credit and European or domestic letters of credit to
over 30 basis points.
Tax-free money fund yields trended upwards in the fourth quarter as supply
increased. Yields hit a six-month peak at year-end due to seasonal window
dressing pressures. Weaker than expected economic reports and a lack of supply
caused yields to decline early in the new year.
PNC Institutional Management Corporation
(Please dial toll-free 800-533-7719 for questions
regarding your account or contact your broker.)
<PAGE>
BRADFORD GOVERNMENT OBLIGATIONS MONEY MARKET SHARES
THE RBB FUND, INC.
GOVERNMENT OBLIGATIONS MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS
FEBRUARY 29, 1996
(UNAUDITED)
PAR
(000) VALUE
------- ------------
AGENCY OBLIGATIONS--61.5%
FEDERAL FARM CREDIT BANK--11.2%
5.120% 03/01/96 ............................... $12,980 $ 12,980,000
5.630% 03/01/96 ............................... 10,000 10,000,000
5.470% 03/05/96 ............................... 10,000 9,993,922
5.110% 03/06/96(DAGGER) ....................... 15,000 14,990,167
6.070% 06/03/96 ............................... 10,000 10,005,617
5.600% 07/01/96 ............................... 7,000 6,997,732
------------
64,967,438
------------
FEDERAL HOME LOAN BANK--8.4%
5.250% 03/02/96(DAGGER) ....................... 20,000 19,991,569
5.398% 03/20/96(DAGGER) ....................... 15,000 14,993,950
5.800% 04/29/96 ............................... 4,000 3,961,978
5.560% 10/25/96 ............................... 10,000 9,988,061
------------
48,935,558
------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION--26.4%
6.050% 03/01/96 ............................... 5,000 5,000,000
5.300% 03/01/96(DAGGER) ....................... 5,000 5,000,000
5.425% 03/01/96(DAGGER) ....................... 10,000 9,998,279
4.990% 03/05/96(DAGGER) ....................... 10,000 10,000,000
5.070% 05/21/96(DAGGER) ....................... 25,000 24,985,369
6.480% 03/27/96 ............................... 25,000 25,024,454
5.230% 04/12/96 ............................... 40,000 39,755,467
8.500% 06/10/96 ............................... 2,930 2,955,328
5.590% 06/21/96 ............................... 5,000 4,998,057
5.620% 07/02/96 ............................... 10,000 10,001,180
5.910% 08/19/96 ............................... 15,000 15,020,039
------------
152,738,173
------------
STUDENT LOAN MARKETING ASSOCIATION(DAGGER)--15.5%
5.140% 03/05/96 ............................... 5,000 5,000,974
5.170% 03/05/96 ............................... 26,500 26,497,859
5.180% 03/05/96 ............................... 9,000 8,998,491
5.190% 03/05/96 ............................... 5,000 5,000,000
5.200% 03/05/96 ............................... 5,000 4,999,152
5.210% 03/05/96 ............................... 3,500 3,500,297
5.240% 03/05/96 ............................... 15,000 14,994,013
5.365% 03/05/96 ............................... 3,850 3,853,287
5.390% 03/05/96 ............................... 12,100 12,112,135
6.080% 07/01/96 ............................... 5,000 5,000,000
------------
89,956,208
------------
TOTAL AGENCY OBLIGATIONS
(Cost $356,597,377) ....................... 356,597,377
------------
PAR
(000) VALUE
------- ------------
U.S. TREASURY OBLIGATIONS--2.6%
U.S.TREASURY NOTE--2.6%
6.875% 02/28/97 ........................... $15,000 $ 15,246,199
------------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $15,246,199) .................... 15,246,199
------------
REPURCHASE AGREEMENTS--35.5%
Goldman Sachs & Co. (Agreement dated
02/29/96 to be repurchased at
$80,012,111, collateralized by
$109,021,622 Federal National
Mortgage Assoc. 5.993% to 7.47%
due 02/25/22 to 06/01/30. Market
value of collateral is $81,944,567.)
5.450% 03/01/96 ........................... 80,000 80,000,000
Merrill Lynch (Agreement dated 02/29/96
to be repurchased at $115,061,643,
collateralized by $42,571,653 Federal
National Home Loan ARM 6.00% to
9.00% due 11/1/98 to 8/20/25 and
collateralized by $96,097,954 Federal
Home Loan Mortgage Corp. Strip due
02/01/17 to 01/01/26. Market value
of collateral is $137,291,496.)
5.210% 03/01/96 ........................... 115,000 115,000,000
Paine Webber (Agreement dated
02/29/96 to be repurchased at
$10,501,677 collateralized by
$10,495,000 U.S. Treasury Note
6.25% due 08/31/00. Market
value of collateral is $10,711,512.)
5.750% 03/01/96 ........................... 10,500 10,500,000
------------
TOTAL REPURCHASE AGREEMENTS
(Cost $205,500,000) ................... 205,500,000
------------
See Accompanying Notes to Financial Statements.
2
<PAGE>
BRADFORD GOVERNMENT OBLIGATIONS MONEY MARKET SHARES
THE RBB FUND, INC.
GOVERNMENT OBLIGATIONS MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS
FEBRUARY 29, 1996
(UNAUDITED)
VALUE
------------
TOTAL INVESTMENTS AT VALUE--99.6%
(Cost $577,343,576*) ................... $577,343,576
OTHER ASSETS IN EXCESS OF
LIABILITIES--0.4% ...................... 2,276,076
------------
NET ASSETS (Applicable to 215,654,678
Bedford shares, 45,996,714 Bradford
shares 317,969,487 Janney
Montgomery Scott shares and 800
other shares)--100.0% .................. $579,619,652
============
NET ASSET VALUE, offering and
redemption price per share
($579,619,652 / 579,621,679) ........... $1.00
=====
* Also cost for Federal income tax purposes.
(DAGGER) Variable Rate Obligations -- The interest rate shown is the rate as of
February 29, 1996 and the maturity date shown is the longer of the next
interest readjustment date or the date the principal amount shown can
be recovered through demand.
See Accompanying Notes to Financial Statements.
3
<PAGE>
BRADFORD GOVERNMENT OBLIGATIONS MONEY MARKET SHARES
THE RBB FUND, INC.
GOVERNMENT OBLIGATIONS MONEY MARKET PORTFOLIO
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED
FEBRUARY 29, 1996 (UNAUDITED)
INVESTMENT INCOME
Interest ................................ $15,155,549
-----------
EXPENSES
Investment advisory fees ................ 1,115,533
Distribution fees ....................... 1,545,867
Directors' fees ......................... 3,484
Custodian fees .......................... 49,775
Transfer agent fees ..................... 329,553
Legal fees .............................. 9,440
Audit fees .............................. 9,018
Registration fees ....................... 51,500
Insurance expense ....................... 6,587
Printing expense ........................ 51,193
Miscellaneous ........................... 260
-----------
3,172,210
Less fees waived ........................ (540,871)
-----------
TOTAL EXPENSES ....................... 2,631,339
-----------
NET INVESTMENT INCOME ...................... 12,524,210
-----------
REALIZED LOSS ON INVESTMENTS ............... (746)
-----------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS ......................... $12,523,464
===========
STATEMENT OF CHANGES IN NET ASSETS
FOR THE FOR THE
SIX MONTHS ENDED YEAR ENDED
FEBRUARY 29, 1996 AUGUST 31, 1995
----------------- ---------------
(UNAUDITED)
Increase (decrease) in net assets:
Operations:
Net investment income ................. $ 12,524,210 $ 12,855,095
Net gain (loss) on
investments ......................... (746) 41,241
------------- -------------
Net increase in net assets
resulting from
operations .......................... 12,523,464 12,896,336
------------- -------------
Dividends to shareholders from
net investment income:
Bedford shares ($.0236 and
$.0475 respectively,
per share) .......................... (4,319,420) (7,551,189)
Bradford shares ($.0236 and
$.0475, respectively,
per share) .......................... (1,121,560) (2,071,772)
Janney Montgomery Scott
shares ($.0234 and $.0109,
respectively, per share) ............ (7,083,230) (3,232,134)
Distributions to shareholders
from net realized
short-term gains:
Bedford shares ........................ (12,697) --
Bradford shares ....................... (3,154) --
Janney Montgomery Scott
shares .............................. (18,204) --
------------- -------------
Total distributions to
shareholders ...................... (12,558,265) (12,855,095)
------------- -------------
Net capital share
transactions .......................... 67,162,097 306,300,108
------------- -------------
Total decrease in net assets ............. 67,127,296 306,341,349
Net Assets:
Beginning of period ................... 512,492,356 206,151,007
------------- -------------
End of period ......................... $ 579,619,652 $ 512,492,356
============= =============
See Accompanying Notes to Financial Statements.
4
<PAGE>
BRADFORD GOVERNMENT OBLIGATIONS MONEY MARKET SHARES
THE RBB FUND, INC.
GOVERNMENT OBLIGATIONS MONEY MARKET PORTFOLIO
FINANCIAL HIGHLIGHTS (C)
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
FOR THE PERIOD
FOR THE FOR THE FOR THE FOR THE JANUARY 10, 1992
SIX MONTHS YEAR YEAR YEAR (COMMENCEMENT OF
ENDED ENDED ENDED ENDED OPERATIONS) TO
FEBRUARY 29, AUGUST 31, AUGUST 31, AUGUST 31, AUGUST 31,
1996 1995 1994 1993 1992
------------ ----------- ----------- ----------- -----------
(UNAUDITED)
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period ................ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
----------- ----------- ----------- ----------- -----------
Income from investment operations:
Net investment income ............................ 0.0236 0.0475 0.0270 0.0231 0.0208
Net gains on securities (both
realized and unrealized) ....................... -- -- -- -- 0.0009
----------- ----------- ----------- ----------- -----------
Total from investment operations ............. 0.0236 0.0475 0.0270 0.0231 0.0217
----------- ----------- ----------- ----------- -----------
Less distributions:
Dividends (from net investment income) ........... (0.0236) (0.0475) (0.0270) (0.0231) (0.0208)
Distributions (from capital gains) ............... -- -- -- -- (0.0009)
----------- ----------- ----------- ----------- -----------
Total distributions .......................... (0.0236) (0.0475) (0.0270) (0.0231) (0.0217)
----------- ----------- ----------- ----------- -----------
Net asset value, end of period ...................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
=========== =========== =========== =========== ===========
Total Return ........................................ 4.84%(b) 4.86% 2.73% 2.33% 3.42%(b)
Ratios/Supplemental Data
Net assets, end of period ........................ $45,996,553 $46,508,798 $39,732,414 $50,522,979 $42,476,965
Ratios of expenses to average net assets ......... .975%(a)(b) .975%(a) .975%(a) .975%(a) .975%(a)(b)
Ratios of net investment income to
average net assets ............................. 4.73%(b) 4.75% 2.70% 2.31% 3.23%(b)
<FN>
(a) Without the waiver of advisory fees and without the reimbursement of certain operating expenses, the ratios of expenses to
average net assets would have been 1.09% annualized for the six months ended February 29, 1996, 1.13%, 1.18% and 1.18% for the
years ended August 31, 1995, 1994, and 1993, respectively and 1.15% annualized for the period end August 31 1992.
(b) Annualized.
(c) Financial Highlights relate soley to the Bradford Class of shares within the portfolio.
</FN>
</TABLE>
See Accompanying Notes to Financial Statements.
5
<PAGE>
BRADFORD GOVERNMENT OBLIGATIONS MONEY MARKET SHARES
THE RBB FUND, INC.
GOVERNMENT OBLIGATIONS MONEY MARKET PORTFOLIO
NOTES TO FINANCIAL STATEMENTS
FEBRUARY 29, 1996
(UNAUDITED)
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The RBB Fund, Inc. (the "Fund") is registered under the Investment Company
Act of 1940, as amended, as an open-end management investment company. The Fund
was incorporated in Maryland on February 29, 1988.
The Fund has authorized capital of thirty billion shares of common stock of
which 12.2 billion shares are currently classified into sixty-one classes. Each
class represents an interest in one of seventeen investment portfolios of the
Fund, fifteen of which are currently in operation. The classes have been grouped
into fifteen separate "families", eight of which have begun investment
operations: the RBB Family, the BEA Family, the Sansom Street Family, the
Bedford Family, the Cash Preservation Family, the Janney Montgomery Scott Money
Funds, the Warburg Pincus Family and the Bradford Family. The Bradford
Government Obligations Money Market Shares represents an interest in the
Government Obligations Money Market Portfolio, which is covered by this report.
A) SECURITY VALUATION -- Portfolio securities are valued under the
amortized cost method, which approximates current market value. Under this
method, securities are valued at cost when purchased and thereafter a
constant proportionate amortization of any discount or premium is recorded
until maturity of the security. Regular review and monitoring of the
valuation is performed in an attempt to avoid dilution or other unfair
results to shareholders. The Portfolio seeks to maintain net asset value
per share at $1.00.
B) SECURITY TRANSACTIONS AND INVESTMENT INCOME -- Security
transactions are accounted for on the trade date. The cost of investments
sold is determined by use of the specific identification method for both
financial reporting and income tax purposes. Interest income is recorded on
the accrual basis. Certain expenses, principally distribution, transfer
agency and printing, are class specific expenses and vary by class.
Expenses not directly attributable to a specific portfolio or class are
allocated based on relative net assets of each portfolio and class,
respectively.
C) DISTRIBUTIONS TO SHAREHOLDERS -- Dividends from net investment
income are declared daily and paid monthly. Any net realized capital gains
are distributed at least annually. Income distributions and capital gain
distributions are determined in accordance with income tax regulations
which may differ from generally accepted accounting principles.
D) FEDERAL INCOME TAXES -- No provision is made for Federal taxes
as it is the Fund's intention to have the portfolio continue to qualify for
and elect the tax treatment applicable to regulated investment companies
under the Internal Revenue Code and make the requisite distributions to its
shareholders which will be sufficient to relieve it from Federal income and
excise taxes.
E) REPURCHASE AGREEMENTS -- Money market instruments may be
purchased subject to the seller's agreement to repurchase them at an agreed
upon date and price. The seller will be required on a daily basis to
maintain the value of the securities subject to the agreement at not less
than the repurchase price. The agreements are conditioned upon the
collateral being deposited under the Federal Reserve book-entry system or
with the Fund's custodian or a third party sub-custodian.
F) USE OF ESTIMATES -- The preparation of financial statements in
conformity with generally accepted accounting principles requires
management to make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosure of contingent assets and
liabilities at the date of the financial statements and the reported
amounts of revenues and expenses during the reporting period. Actual
results could differ from those estimates.
6
<PAGE>
BRADFORD GOVERNMENT OBLIGATIONS MONEY MARKET SHARES
THE RBB FUND, INC.
GOVERNMENT OBLIGATIONS MONEY MARKET PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FEBRUARY 29, 1996
(UNAUDITED)
NOTE 2. TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES
Pursuant to Investment Advisory Agreements, PNC Institutional Management
Corporation ("PIMC"), a wholly owned subsidiary of PNC Asset Management Group,
Inc., which is in turn a wholly owned subsidiary of PNC Bank, National
Association ("PNC Bank"), serves as investment advisor for the portfolio
described herein. PNC Bank serves as the sub-advisor for the Government
Obligations Money Market Portfolio.
For its advisory services, PIMC is entitled to receive the following fees,
computed daily and payable monthly based on the portfolio's average daily net
assets:
.45% of first $250 million of net assets;
.40% of next $250 million of net assets;
.35% of net assets in excess of $500 million.
PIMC may, at its discretion, voluntarily waive all or any portion of its
advisory fee for this portfolio. For each class of shares within this portfolio,
the net advisory fee charged to each class is the same on a relative basis. For
the six months ended February 29, 1996, advisory fees and waivers for the
investment portfolio were as follows:
GROSS NET
ADVISORY ADVISORY
FEE WAIVER FEE
---------- ---------- --------
$1,115,533 $(317,599) $797,934
PNC Bank, as sub-advisor, receives a fee directly from PIMC, not the
portfolio. In addition, PNC Bank serves as custodian for each of the Fund's
portfolios. PFPC Inc. ("PFPC"), an indirect wholly owned subsidiary of PNC Bank
Corp., serves as each class's transfer and dividend disbursing agent. PFPC may,
at its descretion, voluntarily waive all or any portion of its transfer agency
fees for any class of shares. For the six months ended February 29,1996,
transfer agency fees for each class of shares within the investment portfolio
were as follows:
<TABLE>
<CAPTION>
GROSS NET
TRANSFER AGENCY TRANSFER AGENCY
FEE WAIVER FEE
-------------- ---------- ---------------
<S> <C> <C> <C>
Bedford Class $ 43,073 -- $ 43,073
Bradford Class 13,193 -- 13,193
Janney Montgomery Scott Class 273,287 $(223,272) 50,015
-------- --------- --------
Total $329,553 $(223,272) $106,281
======== ========= ========
</TABLE>
The Fund, on behalf of each class of shares within the investment
portfolio, has adopted Distribution Plans pursuant to Rule 12b-1 under the
Investment Company Act of 1940, as amended, and has entered into Distribution
Contracts with Counsellors Securities Inc. ("Counsellors"), which provide for
each class to make monthly payments, based on average net assets, to Counsellors
of up to .65% on an annualized basis for the Bedford, Janney Montgomery Scott
and Bradford Classes and up to .20% on an annualized basis for the Sansom Street
Class.
7
<PAGE>
BRADFORD GOVERNMENT OBLIGATIONS MONEY MARKET SHARES
THE RBB FUND, INC.
GOVERNMENT OBLIGATIONS MONEY MARKET PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FEBRUARY 29, 1996
(UNAUDITED)
NOTE 2. TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES (CONTINUED)
For the six months ended February 29,1996, distribution fees for each class
were as follows:
DISTRIBUTION
FEE
------------
Bedford Class $ 516,059
Bradford Class 127,915
Janney Montgomery Scott Class 901,893
----------
Total $1,545,867
==========
The Fund has entered into service agreements with banks affiliated with PNC
Bank who render support services to customers who are the beneficial owners of
the Sansom Street Class in consideration of the payment of .10% of the daily net
asset value of such shares. No such payments were necessary for the six months
ended February 29, 1996.
NOTE 3. CAPITAL SHARES
Transactions in capital shares (at $1 per capital share) for each period
were as follows:
<TABLE>
<CAPTION>
FOR THE FOR THE
SIX MONTHS ENDED YEAR ENDED
FEBRUARY 29, 1996 AUGUST 31, 1995
----------------- ---------------
(UNAUDITED)
VALUE VALUE
------------- -------------
<S> <C> <C>
Shares sold:
Bedford Class $ 420,087,621 $ 461,728,190
Bradford Class 84,720,763 192,414,935
Janney Montgomery Scott Class 605,713,061 533,143,649
Shares issued in reinvestment of dividends:
Bedford Class 4,328,433 7,147,384
Bradford Class 1,121,626 2,029,050
Janney Montgomery Scott Class 7,049,583 3,065,158
Shares repurchased:
Bedford Class (372,153,027) (471,908,601)
Bradford Class (86,352,310) (187,671,346)
Janney Montgomery Scott Class (597,353,653) (233,648,311)
------------- -------------
Net increase $ 67,162,097 $ 306,300,108
------------- -------------
Bradford Shares authorized 500,000,000 500,000,000
============= =============
</TABLE>
8
<PAGE>
BRADFORD GOVERNMENT OBLIGATIONS MONEY MARKET SHARES
THE RBB FUND, INC.
GOVERNMENT OBLIGATIONS MONEY MARKET PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FEBRUARY 29, 1996
(UNAUDITED)
NOTE 4. NET ASSETS
At February 29, 1996, net assets consisted of the following: (Unaudited)
Capital paid-in:
Bedford Class $215,654,678
Bradford Class 45,996,714
Janney Montgomery Scott Class 317,969,487
Other Classes 800
Accumulated net realized loss
on investments:
Bedford Class (754)
Bradford Class (161)
Janney Montgomery Scott Class (1,112)
------------
$579,619,652
============
9
<PAGE>
BRADFORD GOVERNMENT OBLIGATIONS MONEY MARKET SHARES
THE RBB FUND, INC.
GOVERNMENT OBLIGATIONS MONEY MARKET PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FEBRUARY 29, 1996
(UNAUDITED)
NOTE 5. OTHER FINANCIAL HIGHLIGHTS
The Fund currently offers two other class of shares representing an
interest in the Government Obligations Money Market Portfolio: Bedford and
Janney Montgomery Scott. Each class is marketed to different types of investors.
The financial highlights are as follows:
THE BEDFORD FAMILY
<TABLE>
<CAPTION>
GOVERNMENT OBLIGATIONS MONEY MARKET PORTFOLIO
----------------------------------------------------------------------------------------
FOR THE SIX FOR THE FOR THE FOR THE FOR THE FOR THE
MONTHS ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
FEBRUARY 29, AUGUST 31, AUGUST 31, AUGUST 31, AUGUST 31, AUGUST 31,
1996 1995 1994 1993 1992 1991
------------ ------------ ------------ ------------ ------------ ------------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
----------- ------------ ------------ ------------ ------------ ------------
Income from investment operations:
Net investment income................ 0.0236 0.0475 0.027 0.0231 0.0375 0.0604
Net gains on securities (both realized
and unrealized).................... -- -- -- -- 0.0009 --
----------- ------------ ------------ ------------ ------------ ------------
Total from investment operations.. 0.0236 0.0475 0.027 0.0231 0.0384 0.0604
----------- ------------ ------------ ------------ ------------ ------------
Less distributions:
Dividends (from net investment income) (0.0236) (0.0475) (0.0270) (0.0231) (0.0375) (0.0604)
Distributions (from capital gains)... -- -- (0.0009) -- --
----------- ------------ ------------ ------------ ------------ ------------
Total distributions............... (0.0236) (0.0475) (0.0270) (0.0231) (0.0384) (0.0604)
----------- ------------ ------------ ------------ ------------ ------------
Net asset value, end of period......... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
=========== ============ ============ ============ ============ ============
Total Return........................... 4.84%(b) 4.86% 2.73% 2.33% 3.91% 6.21%
Ratios/Supplemental Data
Net assets, end of period............ $215,653,924 $163,397,914 $166,417,793 $213,741,440 $225,100,981 $368,898,941
Ratios of expenses to average
net assets ........................ .975%(a)(b) .975%(a) .975%(a) .975%(a) .975%(a) .95%(a)
Ratios of net investment income to
average net assets................. 4.73%(b) 4.75% 2.70% 2.31% 3.75% 6.04%
<FN>
(a) Without the waiver of advisory fees and without the reimbursement of certain operating expenses, the ratios of expenses to
average net assets for the Government Obligations Money Market Portfolio would have been 1.09% annualized for the six months
ended February 29, 1996, 1.13%, 1.17%, 1.18%, 1.12% and 1.13% for the years ended August 31, 1995, 1994, 1993, 1992 and 1991,
respectively.
(b) Annualized.
</FN>
</TABLE>
10
<PAGE>
BRADFORD GOVERNMENT OBLIGATIONS MONEY MARKET SHARES
THE RBB FUND, INC.
GOVERNMENT OBLIGATIONS MONEY MARKET PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (CONCLUDED)
FEBRUARY 29, 1996
(UNAUDITED)
NOTE 5. OTHER FINANCIAL HIGHLIGHTS (CONTINUED)
THE JANNEY MONTGOMERY SCOTT MONEY FUNDS
<TABLE>
<CAPTION>
GOVERNMENT OBLIGATIONS
MONEY MARKET PORTFOLIO
-------------------------------
FOR THE PERIOD
JUNE 12, 1995
FOR THE SIX (COMMENCEMENT OF
MONTHS ENDED OPERATIONS) TO
FEBRUARY 29, AUGUST 31,
1996 1995
------------ ------------
(UNAUDITED)
<S> <C> <C>
Net asset value, beginning of period ................................ $ 1.00 $ 1.00
------------ ------------
Income from investment operations:
Net investment income ............................................. 0.0234 0.0109
------------ ------------
Total from investment operations .................................. 0.0234 0.0109
------------ ------------
Less distributions:
Dividends (from net investment income) ............................ (0.0234) (0.0109)
------------ ------------
Total distributions ............................................. (0.0234) (0.0109)
------------ ------------
Net asset value, end of period ...................................... $ 1.00 $ 1.00
============ ============
Total Return ........................................................ 4.82%(b) 5.03%(b)
Ratios/Supplemental Data
Net assets, end of period ......................................... $317,968,375 $302,584,844
Ratios of expenses to average net assets .......................... 1.00%(a)(b) 1.00%(a)(b)
Ratios of net investment income to average net assets ............. 4.70%(b) 4.91%(b)
<FN>
(a) Without the waiver of advisory and transfer agent fees and without the reimbursement of certain operating expenses, the ratios
of expenses to average net assets for the Government Obligations Money Market Portfolio would have been 1.27% annualized for
the six months ended February 29, 1996 and 1.28% annualized for the period ended August 31, 1995.
(b) Annualized.
</FN>
</TABLE>
11
