- --------------------------------------------------------------------------------
BRADFORD
MUNICIPAL
MONEY MARKET
PORTFOLIO
J.C. BRADFORD & CO. (LOGO)
[GRAPHIC OMITTED]
MEMBER NEW YORK STOCK EXCHANGE INC.
Semi-Annual Report
February 29, 1996
<PAGE>
BRADFORD MUNICIPAL MONEY MARKET SHARES
THE RBB FUND, INC.
SEMI-ANNUAL INVESTMENT ADVISOR'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 MUNICIPAL MONEY MARKET SHARES
THE RBB FUND, INC.
MUNICIPAL MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS
FEBRUARY 29, 1996
(UNAUDITED)
PAR
(000) VALUE
------- -----------
ALABAMA--1.3%
Alabama Special Care Facilities
Authority St. Vincent's Daughters
of Charity MB(DOUBLE DAGGER)
4.000% 11/01/96 ................................. $ 1,735 $ 1,739,127
Demopolis DN / (Banque Nationale de
Paris LOC) [A-1+]
3.550% 03/07/96 ................................. 3,000 3,000,000
Livingston IDR Toin Corp USA Project
DN / (Ind. Bank of Japan LOC) [A-1+]
3.900% 03/07/96 ................................. 1,000 1,000,000
-----------
5,739,127
-----------
ALASKA--0.5%
Alaska Industrial Development and
Export Authority VR RB Series 1984-5
(LOC Bank of America) DN(DAGGER) [A-1]
3.550% 03/07/96 ................................. 2,100 2,100,000
-----------
ARIZONA--2.8%
Flagstaff IDA DN / (FGIC Insurance)(DAGGER) [A-1]
3.300% 03/07/96 ................................. 7,755 7,755,000
Phoenix Civic Improvement Corp Excise
Tax Revenues DN Series 1995 /
(Hessen LOC) [A-1+]
3.400% 03/07/96 ................................. 5,000 5,000,000
-----------
12,755,000
-----------
ARKANSAS--0.3%
Arkansas State Development Authority
Health Care Facility Sisters of Mercy
Series AMB / (ABM-Amro Bank N.V.
LOC)(DOUBLE DAGGER) [A-1+]
3.250% 03/07/96 ................................. 1,200 1,200,000
-----------
CALIFORNIA--10.0%
Los Angeles County California TRAN /
(Bank of America LOC) [SP-1]
4.500% 07/01/96 ................................. 6,500 6,513,741
Los Angeles County Metropolitan
Transportation Authority General
RB DN(DAGGER) [A-1+]
2.900% 03/07/96 ................................. 600 600,000
PAR
(000) VALUE
------- -----------
CALIFORNIA--(CONTINUED)
Oakland DN(DAGGER)
3.400% 03/07/96 ................................. $ 6,600 $ 6,600,000
Southeast Resource Recovery Facility
Authority Lease RB DN(DAGGER) [A-1]
3.300% 03/07/96 ................................. 24,300 24,300,000
Washington Township Hospital District
Alemeda County DN / (Ind. Bank of
Japan LOC)(DAGGER)
3.450% 03/07/96 ................................. 7,400 7,400,000
-----------
45,413,741
-----------
COLORADO--0.6%
Colorado Health Facilities Authority
Hospital RB MB (Bounder Community
Hospital Projects) Series 1989 C /
(RABO Bank Nederland LOC)(DOUBLE DAGGER) [A-1+]
3.250% 03/07/96 ................................. 400 400,000
Moffat County DN(DAGGER) [A-1+]
3.300% 03/07/96 ................................. 2,400 2,400,000
-----------
2,800,000
-----------
DELAWARE--0.7%
The Delaware Economic Development
Authority Gas Facilities Refunding
(Delmarva Power & Light Project)
Series 1993-C RB DN(DAGGER) [MIG]
3.500% 03/07/96 ................................. 3,000 3,000,000
-----------
FLORIDA--0.9%
Dade County HFA Miami Children's
Hospital Project DN /
(AMBAC Insurance)(DAGGER)
3.050% 03/07/96 ................................. 1,200 1,200,000
Florida Housing Finance Agency DN /
(Wells Fargo Bank LOC)(DAGGER) [A-1]
3.550% 03/30/96 ................................. 3,000 3,000,000
-----------
4,200,000
-----------
GEORGIA--5.4%
Burke County PCRB Georgia Power
Company Vogtle Project 2ND
Series DN(DAGGER) [A-1]
3.400% 03/01/96 ................................. 3,100 3,100,000
See Accompanying Notes to Financial Statements.
2
<PAGE>
BRADFORD MUNICIPAL MONEY MARKET SHARES
THE RBB FUND, INC.
MUNICIPAL MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS (CONTINUED)
FEBRUARY 29, 1996
(UNAUDITED)
PAR
(000) VALUE
------- -----------
GEORGIA--(CONTINUED)
Carrollton Payroll Development
Authority RAN Certificates
3.450% 03/07/96 ............................. $ 6,000 $ 6,000,000
Forsyth County IDRB for American
BOA, Inc. Project DN(DAGGER)
3.350% 03/07/96 ............................. 2,000 2,000,000
Monroe County Development Authority
PCR RB DN (Georgia Power Co.
Plant Scherer Project)
First Series 1995(DAGGER) [A-1]
3.400% 03/01/96 ............................. 13,300 13,300,000
-----------
24,400,000
-----------
ILLINOIS--7.1%
Chicago O'Hare International Airport
Special Facility RB DN /
(Society General LOC)(DAGGER) [A-1+]
3.350% 03/07/96 ............................. 5,800 5,800,000
Illinois Development Finance Authority
CHS Acquisition Corp Project DN /
(ABM-AMRO Bank N.V. LOC)(DAGGER) [A-1+]
3.550% 03/07/96 ............................. 5,035 5,035,000
Illinois Development Facility Harris
DN / (FNMA LOC)(DAGGER) [A-1+]
3.350% 03/07/96 ............................. 7,000 7,000,000
Illinois Educational Facilities Authority
RB DN / (Sanwa Bank LOC)(DAGGER) [A-1+]
3.250% 03/07/96 ............................. 2,700 2,700,000
Illinois Educational Facilities Authority
RB DN(DAGGER) [A-1]
3.600% 03/07/96 ............................. 8,000 8,000,000
Health Facility Authority DN (Central
Health Care And Northwest
Community Hospital) / (Sumitomo
Bank LOC)(DAGGER) [MIG]
3.400% 03/07/96 ............................. 1,545 1,545,000
Illinois Housing Development
Authority Series C-2 /(Societe
Generale LOC) MB(DOUBLE DAGGER) [MIG]
3.450% 09/03/96 ............................. 2,200 2,200,000
-----------
32,280,000
-----------
PAR
(000) VALUE
------- -----------
INDIANA--6.9%
Evansville Hospital Authority Hospital
Revenue Daughters of Charity
St. Mary's Medical Center of
Evansville DN(DAGGER) [A-1+]
3.200% 03/07/96 ................................. $ 5,400 $ 5,400,000
Indiana Health Facility Authority
Daughters of Charity for
St. Mary's Med DN(DAGGER)
4.000% 11/01/96 ................................. 840 841,998
Indiana Development Finance Authority
Solid Waste Disposal RB Pure Air
On The Lake, L. P. Project /
(Fuji Bank LOC)(DOUBLE DAGGER) [MIG]
3.950% 03/01/96 ................................. 10,000 10,000,000
Indiana Development Finance
Authority DN(DAGGER) / (Societe Generale LOC)
3.650% 03/07/96 ................................. 5,000 5,000,000
Indiana Housing Finance Authority
Series 1994 C MB(DOUBLE DAGGER)
4.000% 07/01/96 ................................. 1,500 1,500,000
Orleans Economic Development RB
for Almana Ltd. Liability Co. Project
Series 95 DN(DAGGER)
3.500% 03/07/96 ................................. 5,400 5,400,000
Tippecanoe DN /
(Bank of New York LOC)(DAGGER)
3.400% 03/07/96 ................................. 3,000 3,000,000
-----------
31,141,998
-----------
IOWA--0.9%
Iowa Finance Authority Tax-Exempt
Adjustable Mode IDA RB DN
(Dixie Bedding Co Project)
Series 95 / (Wachovia LOC)(DAGGER)
3.450% 03/07/96 ................................. 3,000 3,000,000
Osceola IDA RB (Babson Brothers
Co. Projects) Series 1986
DN / (Bank Of New York LOC)(DAGGER) [MIG]
3.450% 03/07/96 ................................. 1,100 1,100,000
-----------
4,100,000
-----------
See Accompanying Notes to Financial Statements.
3
<PAGE>
BRADFORD MUNICIPAL MONEY MARKET SHARES
THE RBB FUND, INC.
MUNICIPAL MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS (CONTINUED)
FEBRUARY 29, 1996
(UNAUDITED)
PAR
(000) VALUE
------- -----------
KANSAS--1.7%
Lawrence IDRB Series A RAN Co
Project DN / (Wachovia LOC)(DAGGER)
3.450% 03/07/96 ............................... $ 2,125 $ 2,125,000
Shawnee IDRB Thrall Enterprises Inc
Project DN [A-1+]
3.550% 03/07/96 ............................... 5,700 5,700,000
-----------
7,825,000
-----------
KENTUCKY--6.6%
Hopkinsville RB (American Precision
Machinery) Series 1990 DN /
(Mitsubishi Bank LOC)(DAGGER) [MIG]
3.400% 03/07/96 ............................... 3,600 3,600,000
Hopkinsville IDA RB Douglas Autotech
Corp Project Series 95 DN /
(IND. Bank Of Japan LOC)(DAGGER) [A-1+]
3.900% 03/07/96 ............................... 7,700 7,700,000
Louisville Airport DN / (National City
Bank of Cleveland LOC)(DAGGER) [A-1]
3.450% 03/07/96 ............................... 6,000 6,000,000
Maysville, City of Solid Waste Disposal
Facilities RB MB(DOUBLE DAGGER) [A-1]
3.650% 03/27/96 ............................... 12,365 12,365,000
-----------
29,665,000
-----------
LOUISIANA--5.4%
East Baton Rouge Mortgage Finance
Authority MB Single Family Mortgage
Purchase Bonds / (FNMA LOC)(DAGGER) [MIG]
3.400% 10/03/96 ............................... 2,910 2,910,000
East Baton Rouge Parish Pacific Corp
Project DN / (Ind. Bank of
Japan LOC)(DAGGER)
3.650% 03/07/96 ............................... 6,500 6,500,000
Lincoln, Parish of RB DN(DAGGER) [A-1]
3.550% 03/07/96 ............................... 15,000 15,000,000
-----------
24,410,000
-----------
MARYLAND--1.3%
Howard County Bluffs at Clary's Forest
Apartment Facility Series 1995 DN /
(FNB Maryland LOC)(DAGGER) [A-1]
3.450% 03/07/96 ............................... 5,800 5,800,000
-----------
PAR
(000) VALUE
------- -----------
MASSACHUSETTS--3.8%
Massachusetts Bay Transportation
Authority TECP Series C MB
(Westdeutsche Landesbank
Girozentrale LOC)(DOUBLE DAGGER) [A-1+]
3.300% 03/27/96 ................................. $12,500 $12,500,000
Massachusetts Industry Finance
Agency MB(DOUBLE DAGGER)
3.600% 03/15/96 ................................. 4,800 4,800,000
-----------
17,300,000
-----------
MICHIGAN--1.6%
Detroit Downtown Development
Authority DN (Millender Project) /
(Sumitomo Bank LOC)(DAGGER)
3.350% 03/07/96 ................................. 2,400 2,400,000
Michigan State Hospital Finance
Authority Daughters of Charity MB(DOUBLE DAGGER)
4.000% 11/01/96 ................................. 875 877,081
Michigan State Strategic Fund Limited
Obligation RB DN / (Comerica Bank
Detroit LOC)(DAGGER) [A-1]
3.450% 03/07/96 ................................. 2,800 2,800,000
Northville IDA DN (Thrifty Northville
Project) / (Westpac Banking
Corp LOC)(DAGGER) [P-1]
3.350% 03/07/96 ................................. 1,000 1,000,000
-----------
7,077,081
-----------
MISSOURI--3.7%
Forsyth PCR (Portland General Electric)
(Mitsubishi) (VMIG-1,NR) DN /
(Banque Nationale de Paris LOC)(DAGGER)
3.500% 03/01/96 ................................. 3,000 3,000,000
City of Kansas IDA RB (Mid-America
Health Services Inc. Project)
Series 1984 DN / (Bank of
New York LOC)(DAGGER) (A-1) [A-1]
3.550% 03/07/96 ................................. 1,100 1,100,000
Missouri Higher Education DN /
(National Westminster LOC)(DAGGER) [A-1+]
3.400% 03/07/96 ................................. 800 800,000
Missouri State Health & Education
Facilities Authority St. Anthony's
Medical Center Series A DN /
(Mitsubishi Bank LOC)(DAGGER) [A-1+]
3.650% 03/07/96 ................................. 6,000 6,000,000
See Accompanying Notes to Financial Statements.
4
<PAGE>
BRADFORD MUNICIPAL MONEY MARKET SHARES
THE RBB FUND, INC.
MUNICIPAL MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS (CONTINUED)
FEBRUARY 29, 1996
(UNAUDITED)
PAR
(000) VALUE
------- -----------
MISSOURI--(CONTINUED)
Missouri State Health & Education
Facilities Authority St. Anthony's
Medical Center Series C DN /
(Mitsubishi Bank LOC)(DAGGER) [A-1+]
3.650% 03/07/96 ............................. $ 6,000 $ 6,000,000
-----------
16,900,000
-----------
NEBRASKA--0.8%
Lancaster Sun-Husker Foods Inc.
Project DN / (Bank of Tokyo
LOC)(DAGGER) [A-1+]
3.900% 03/07/96 ............................. 3,800 3,800,000
-----------
NEW HAMPSHIRE--5.3%
New Hampshire Housing Finance
Authority Series 1994 1 DN(DAGGER) [MIG]
3.400% 03/07/96 ............................. 5,000 5,000,000
New Hampshire State Development
Authority Solid Waste Disposal
Facility RB United Illuminating Co.
Project A MB / (Barclays Bank
LOC)(DOUBLE DAGGER) [MIG]
3.850% 03/01/96 ............................. 4,350 4,350,000
New Hampshire State Housing Finance
Authority Multifamily RB Countryside
L.P. Project DN / (General Electric
Capital Corp. LOC)(DAGGER) [MIG]
3.400% 03/07/96 ............................. 14,700 14,700,000
-----------
24,050,000
-----------
NEW YORK--5.1%
New York City RAN Series 1996-A
4.500% 04/11/96 ............................. 2,770 2,771,704
New York City RAN Series B / (Multiple
Credit Enhancements) [SP-1]
4.750% 06/28/96 ............................. 18,500 18,575,819
Triborough Bridge and Tunnel Authority
DN / (FGIC Insurance)(DAGGER) [A-1+]
3.250% 03/07/96 ............................. 1,700 1,700,000
-----------
23,047,523
-----------
PAR
(000) VALUE
------- -----------
NORTH CAROLINA--0.1%
North Carolina Medical Care
Commission Hospital RB DN
(Moses H. Cone Memorial Hospital
Project)(DAGGER) [A-1+]
3.250% 03/07/96 ............................. $ 600 $ 600,000
-----------
OHIO--0.8%
Clermont County RB (Mercy Health
Systems) Series 1994B DN(DAGGER) [A-1]
3.350% 03/07/96 ............................. 1,000 1,000,000
Toledo Improvement Notes Series
2 MB(DOUBLE DAGGER)
3.890% 05/15/96 ............................. 2,610 2,610,206
-----------
3,610,206
-----------
PENNSYLVANIA--0.2%
Sayre County Health Care Facilities
Authority D (Capital Financing
Program) Series K DN(DAGGER)
3.100% 03/07/96 ............................. 900 900,000
-----------
RHODE ISLAND--2.5%
Rhode Island Housing & Mortgage
Finance Corp Convertible Home
Ownership Opportunity Bonds
Series 19D MB / (Societe Generale
LOC)(DOUBLE DAGGER) [A-1+]
3.550% 01/30/97 ............................. 2,000 2,000,000
Rhode Island Student Loan Series 1
DN / (National Westminster
LOC)(DAGGER) [A-1+]
3.300% 03/06/96 ............................. 9,500 9,500,000
-----------
11,500,000
-----------
SOUTH CAROLINA--0.8%
York County PCR RB Duke Power Co.
Project MB(DOUBLE DAGGER) [A-1+]
3.350% 04/12/96 ............................. 3,500 3,500,000
-----------
See Accompanying Notes to Financial Statements.
5
<PAGE>
BRADFORD MUNICIPAL MONEY MARKET SHARES
THE RBB FUND, INC.
MUNICIPAL MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS (CONTINUED)
FEBRUARY 29, 1996
(UNAUDITED)
PAR
(000) VALUE
------- -----------
TENNESSEE--1.9%
Montgomery County Public Building
Authority County Loan Pool
GO DN / (NCNB LOC)(DAGGER) [A-1]
3.400% 03/07/96 ................................. $ 2,400 $ 2,400,000
Oak Ridge Municipal Solid Waste
Disposal Facility Bonds Series 1996
M4 Environmental L.P. Project DN /
(Sunbank LOC)(DAGGER)
3.450% 03/07/96 ................................. 6,000 6,000,000
-----------
8,400,000
-----------
TEXAS--10.5%
Angelina and Neches River Authority
Solid Waste Disposal RB MB(DOUBLE DAGGER) [A-1]
3.550% 03/22/96 ................................. 7,300 7,300,000
Brazos Higher Education Authority, Inc.
Student Loan RB DN / (Student Loan
Marketing Assoc. LOC)(DAGGER) [MIG]
3.200% 03/07/96 ................................. 9,000 9,000,000
Brazos River, TX Harbor [A-1]
3.350% 04/04/96 ................................. 2,500 2,500,000
Harris County Health Facility
Development Corp Texas Childrens'
DN [MIG]
3.300% 03/07/96 ................................. 2,200 2,200,000
Houston Water and Sewer TECP Notes
Series A Revolving Credit Agreement
With West Deutsche Landesbank
and Swiss [A-1]
3.150% 03/15/96 ................................. 4,000 4,000,000
San Antonio Housing Finance Corp.
(Wellington Place Apartments)
Series 1995 A DN(DAGGER) [A-1+]
3.400% 03/07/96 ................................. 3,000 3,000,000
State of Texas TRAN [SP-1]
4.750% 08/30/96 ................................. 15,000 15,047,150
Texas State VHA
3.900% 11/06/96 ................................. 4,000 4,000,000
Travis County HFA DCHS Bond MB(DOUBLE DAGGER)
4.000% 11/01/96 ................................. 430 431,023
-----------
47,478,173
-----------
PAR
(000) VALUE
------- -----------
UTAH--2.9%
Intermountain Power Agency DN(DAGGER) [A-1]
3.550% 06/15/96 ............................... $ 1,000 $ 1,000,000
Salt Lake Airport RB DN(DAGGER) [A-1+]
3.200% 03/07/96 ............................... 2,600 2,600,000
Utah State Board of Regents Student
Loan Revenue Series C RB DN /
(Dresdner Bank LOC)(DAGGER) [A-1+]
3.400% 03/07/96 ............................... 3,400 3,400,000
Utah State Board of Regents Student
Loan Revenue Series L DN /
(Dresdner Bank LOC)(DAGGER) [A-1+]
3.400% 03/07/96 ............................... 6,000 6,000,000
-----------
13,000,000
-----------
VIRGINIA--3.0%
Alexandria Virginia Redevelopment &
Housing Authority Multi-Family
Housing Series A DN(DAGGER) [A-1]
3.550% 03/07/96 ............................... 7,500 7,500,000
Capital Region Airport Commission
Richmond International Airport
Projects Series 1995-C DN /
(AMBAC Insurance)(DAGGER) [MIG]
3.300% 03/07/96 ............................... 2,500 2,500,000
Culpeper Town IDA Residential Care
Facility RB DN / (NCNB LOC)(DAGGER) [A-1]
3.400% 03/07/96 ............................... 1,500 1,500,000
Fairfax County IDA DN Series 1988c /
(Dai-Ichi Kangyo LOC)(DAGGER) [A1+]
3.500% 03/07/96 ............................... 200 200,000
Lynchburg VR Hospital RB FHA
Midatlantic Series 1985 E DN /
(AMBAC Insurance)(DAGGER) [A-1]
3.250% 03/07/96 ............................... 800 800,000
Peninsula Ports Authority VR IDA RB
(Allied Signal Inc. Project)
Series 1993 (Allied Signal Corp
Obligation) DN(DAGGER) [A-1]
3.400% 03/07/96 ............................... 1,000 1,000,000
-----------
13,500,000
-----------
See Accompanying Notes to Financial Statements.
6
<PAGE>
BRADFORD MUNICIPAL MONEY MARKET SHARES
THE RBB FUND, INC.
MUNICIPAL MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS (CONTINUED)
FEBRUARY 29, 1996
(UNAUDITED)
PAR
(000) VALUE
------- -----------
WASHINGTON--1.0%
Port of Seattle IDA DN
(Alaska Airlines Project) /
(Bank of America LOC)(DAGGER) [A-1]
3.100% 03/07/96 ........................... $ 4,580 $ 4,580,000
------------
WEST VIRGINIA--0.8%
Marshall County Industrial Development
Revenue US/Canada Project DN /
(Harris Trust & Savings
Bank LOC)(DAGGER) [A-1+]
3.450% 03/07/96 ........................... 3,500 3,500,000
------------
WISCONSIN--2.4%
Racine Wisconsin School District
TRAN MB [SP-1]
4.500% 08/23/96 ........................... 6,000 6,012,391
Wisconsin State Operating Notes
Series 1995 TRAN [SP-1]
4.500% 06/17/96 ........................... 5,000 5,015,457
------------
11,027,848
------------
TOTAL INVESTMENTS AT VALUE--99.6%
(Cost $450,600,697*) ...................... 450,600,697
OTHER ASSETS IN EXCESS OF
LIABILITIES--0.4% ......................... 2,015,775
------------
NET ASSETS (Applicable to 225,391,612
Bedford shares, 137,904,692
Bradford shares, 97,170 Cash
Preservation shares, 89,284,879
Janney Montgomery Scott shares,
5,044 RBB shares and 800
other shares)--100.0% ..................... $452,616,472
============
NET ASSET VALUE, offering and
redemption price per share
(452,616,472 (DIVIDE) 452,684,197) ........ $1.00
=====
* Also cost for Federal income tax purposes.
(DAGGER) Variable Rate Demand Notes -- 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 though demand.
(DOUBLE DAGGER) Put Bonds -- Maturity date is the put date.
The Moody's Investor Service, Inc. and Standard & Poor's Ratings Group ratings
indicated are the most recent ratings available at February 29, 1996.
INVESTMENT ABBREVIATIONS
BAN ......................................................Bond Anticipation Note
DN ..................................................................Demand Note
GO ..........................................................General Obligations
LOC ............................................................Letter of Credit
IDA ............................................Industrial Development Authority
MB ...............................................................Municipal Bond
PCR ...................................................Pollution Control Revenue
RAN ...................................................Revenue Anticipation Note
RAW ...............................................Revenue Anticipation Warrants
RB .................................................................Revenue Bond
TAN .......................................................Tax Anticipation Note
TECP ................................................Tax Exempt Commercial Paper
TRAN ..........................................Tax and Revenue Anticipation Note
See Accompanying Notes to Financial Statements.
7
<PAGE>
BRADFORD MUNICIPAL MONEY MARKET SHARES
THE RBB FUND, INC.
MUNICIPAL MONEY MARKET PORTFOLIO
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED
FEBRUARY 29, 1996 (UNAUDITED)
INVESTMENT INCOME
Interest ................................ $8,047,570
----------
EXPENSES
Investment advisory fees ................ 691,055
Administration fees ..................... 209,622
Distribution fees ....................... 1,173,898
Directors' fees ......................... 2,745
Custodian fees .......................... 43,373
Transfer agent fees ..................... 111,006
Legal fees .............................. 9,557
Audit fees .............................. 7,160
Registration fees ....................... 88,000
Insurance expense ....................... 5,205
Printing expense ........................ 105,517
Miscellaneous ........................... 204
----------
2,447,342
Less fees waived ........................ (594,812)
Less expense reimbursement by advisor ... (7,738)
----------
TOTAL EXPENSES ....................... 1,844,792
----------
NET INVESTMENT INCOME ...................... 6,202,778
----------
REALIZED LOSS ON INVESTMENTS ............... (674)
----------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS ......................... $6,202,104
==========
STATEMENT OF CHANGES IN NET ASSETS
FOR THE SIX FOR THE
MONTHS ENDED YEAR ENDED
FEBRUARY 29, AUGUST 31,
1996 1995
------------ ------------
(UNAUDITED)
Increase (decrease) in net assets:
Operations:
Net investment income ................. $ 6,202,778 $ 9,691,756
Net gain (loss) on
investments ......................... (674) 7,009
------------ ------------
Net increase in net assets
resulting from
operations .......................... 6,202,104 9,698,765
------------ ------------
Dividends to shareholders from
net investment income:
Bedford shares ($.0150 and
$.0297, respectively,
per share) .......................... (3,019,474) (5,717,451)
Bradford shares ($.0150 and
$.0297, respectively,
per share) .......................... (1,768,125) (3,266,535)
Cash Preservation shares
($.0143 and $.0281,
respectively, per share) ............ (2,432) (5,648)
Janney Montgomery Scott
shares ($.0142 and $.0063,
respectively, per share) ............ (1,412,676) (701,975)
RBB shares ($.0142 and
$.0279, respectively,
per share) .......................... (71) (147)
------------ ------------
Total dividends to
shareholders ...................... (6,202,778) (9,691,756)
------------ ------------
Net capital share
transactions .......................... 29,863,283 140,043,103
------------ ------------
Total increase in net assets ............. 29,862,609 140,050,112
Net Assets:
Beginning of period ................... 422,753,863 282,703,751
------------ ------------
End of period ....................... $452,616,472 $422,753,863
============ ============
See Accompanying Notes to Financial Statements.
8
<PAGE>
BRADFORD MUNICIPAL MONEY MARKET SHARES
THE RBB FUND, INC.
MUNICIPAL 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 ........................ 0.0150 0.0297 0.0195 0.0195 0.0154
------------ ------------ ------------ ----------- -----------
Total from investment operations ......... 0.0150 0.0297 0.0195 0.0195 0.0154
------------ ------------ ------------ ----------- -----------
Less distributions:
Dividends (from net investment income) ....... (0.0150) (0.0297) (0.0195) (0.0195) (0.0154)
------------ ------------ ------------ ----------- -----------
Total distributions ...................... (0.0150) (0.0297) (0.0195) (0.0195) (0.0154)
------------ ------------ ------------ ----------- -----------
Net asset value, end of period .................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
============ ============ ============ =========== ===========
Total Return .................................... 3.06%(b) 3.01% 1.97% 1.96% 2.42%(b)
Ratios/Supplemental Data
Net assets, end of period .................... $137,905,033 $110,936,102 $100,089,172 $76,975,393 $69,586,281
Ratios of expenses to average net assets ..... .84%(a)(b) .82%(a) .77%(a) .77%(a) .77%(a)(b)
Ratios of net investment income to
average net assets ......................... 3.00%(b) 2.97% 1.95% 1.95% 2.40%(b)
<FN>
(a) Without the waiver of advisory and administration fees and without the reimbursement of certain operating expenses, the ratios
of expenses to average net assets would have been 1.12% annualized for the six months ended February 29, 1996, 1.14%, 1.11% and
1.16% for the years ended August 31, 1995, 1994 and 1993, respectively, and 1.16% annualized for the period ended August 31,
1992.
(b) Annualized.
(c) Financial Highlights relate solely to the Bradford Class of Shares within the portfolio.
</FN>
</TABLE>
See Accompanying Notes to Financial Statements.
9
<PAGE>
BRADFORD MUNICIPAL MONEY MARKET SHARES
THE RBB FUND, INC.
MUNICIPAL 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
Municipal Money Market Shares represent an interest in the Municipal Money
Market Portfolio, which is covered in this report.
A) SECURITY VALUATION -- Portfolio securities are valued under the
amortized cost method, which approximates current market value. Under this
method, securities are valued at cost when purchased and thereafter a
constant proportionate amortization of any discount or premium is recorded
until maturity of the security. Regular review and monitoring of the
valuation is performed in an attempt to avoid dilution or other unfair
results to shareholders. The Portfolio seeks to maintain net asset value
per share at $1.00.
B) SECURITY TRANSACTIONS AND INVESTMENT INCOME -- Security
transactions are accounted for on the trade date. The cost of investments
sold is determined by use of the specific identification method for both
financial reporting and income tax purposes. Interest income is recorded on
the accrual basis. Certain expenses, principally distribution, transfer
agency and printing, are class specific expenses and vary by class.
Expenses not directly attributable to a specific portfolio or class are
allocated based on relative net assets of each portfolio and class,
respectively.
C) DISTRIBUTIONS TO SHAREHOLDERS -- Dividends from net investment
income are declared daily and paid monthly. Any net realized capital gains
are distributed at least annually. Income distributions and capital gain
distributions are determined in accordance with income tax regulations
which may differ from generally accepted accounting principles.
D) FEDERAL INCOME TAXES -- No provision is made for Federal taxes
as it is the Fund's intention to have 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) 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.
10
<PAGE>
BRADFORD MUNICIPAL MONEY MARKET SHARES
THE RBB FUND, INC.
MUNICIPAL MONEY MARKET PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FEBRUARY 29, 1996
(UNAUDITED)
NOTE 2. TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES
Pursuant to an Investment Advisory Agreement, PNC Institutional Management
Corp. ("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 Municipal 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:
.35% of first $250 million of net assets;
.30% of next $250 million of net assets;
.25% 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
-------- --------- --------
$691,055 $(585,935) $105,120
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 discretion, voluntarily waive all or any portion of its
transfer agency fee for any class of shares. For the six months ended February
29, 1996, transfer agency fees and waivers for each class of shares within the
investment portfolio were as follows:
<TABLE>
<CAPTION>
GROSS NET
TRANSFER AGENCY TRANSFER AGENCY
FEE WAIVER FEE
--------------- ----------- ---------------
<S> <C> <C> <C>
Bedford Class $ 54,768 $ -- $ 54,768
Bradford Class 11,759 -- 11,759
Cash Preservation Class 4,807 (4,509) 298
Janney Montgomery Scott Class 35,292 -- 35,292
RBB Class 4,380 (4,368) 12
---------- ----------- ----------
Total $ 111,006 $ (8,877) $ 102,129
========== =========== ==========
</TABLE>
11
<PAGE>
BRADFORD MUNICIPAL MONEY MARKET SHARES
THE RBB FUND, INC.
MUNICIPAL MONEY MARKET PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FEBRUARY 29, 1996
(UNAUDITED)
NOTE 2. TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES (CONTINUED)
In addition, PFPC serves as administrator for the Municipal Money Market
Portfolio. The administration fee is computed daily and payable monthly at an
annual rate of .10% of the Portfolio's average daily net assets. For the six
months ended February 29, 1996, administration fee for the portfolio was as
follows:
NET
ADMINISTRATION
FEE
--------------
$209,622
The Fund, on behalf of each class of shares within this 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, Bradford, Cash Preservation, Janney
Montgomery Scott and RBB Classes and up to .20% on an annualized basis for the
Sansom Street Class.
For the six months ended February 29, 1996, distribution fees for each
class were as follows:
DISTRIBUTION
FEE
------------
Bedford Class $ 554,690
Bradford Class 321,494
Cash Preservation Class 331
Janney Montgomery Scott Class 297,373
RBB Class 10
------------
Total $ 1,173,898
============
The Fund has entered into service agreements with banks affiliated with PNC
Bank who render support services to customers who are the beneficial owners of
the Sansom Street Class in consideration of the payment of .10% of the daily net
asset value of such shares. For the six months ended February 29, 1996, there
were no service organization fees for the Municipal Money Market Portfolio.
12
<PAGE>
BRADFORD MUNICIPAL MONEY MARKET SHARES
THE RBB FUND, INC.
MUNICIPAL MONEY MARKET PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FEBRUARY 29, 1996
(UNAUDITED)
NOTE 3. CAPITAL SHARES
Transactions in capital shares (at $1.00 per capital share) for each period
were as follows:
<TABLE>
<CAPTION>
MUNICIPAL MONEY MARKET PORTFOLIO
------------------------------------------
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 $ 528,809,679 $ 1,104,088,188
Bradford Class 246,378,318 474,166,249
Cash Preservation Class 130,118 175,548
Janney Montgomery Scott Class 217,548,443 208,067,881
RBB Class 400 5,004
Shares issued in reinvestment of dividends:
Bedford Class 2,998,655 5,576,408
Bradford Class 1,738,434 3,126,860
Cash Preservation Class 2,301 5,478
Janney Montgomery Scott Class 1,418,406 662,565
RBB Class 72 146
Shares repurchased:
Bedford Class (504,911,015) (1,093,651,142)
Bradford Class (221,147,616) (466,448,018)
Cash Preservation Class (196,520) (220,601)
Janney Montgomery Scott Class (242,906,025) (95,506,391)
RBB Class (367) (5,072)
------------- ---------------
Net increase $ 29,863,283 $ 140,043,103
============= ===============
Bradford Shares authorized 500,000,000 500,000,000
============= ===============
</TABLE>
13
<PAGE>
BRADFORD MUNICIPAL MONEY MARKET SHARES
THE RBB FUND, INC.
MUNICIPAL 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)
MUNICIPAL
MONEY MARKET
PORTFOLIO
-------------
Capital paid-in
Bedford Class $ 225,391,612
Bradford Class 137,904,692
Cash Preservation Class 97,170
Janney Montgomery Scott Class 89,284,879
RBB Class 5,044
Other Classes 800
Accumulated net realized gain (loss)
on investments
Bedford Class (69,816)
Bradford Class 341
Cash Preservation Class 6
Janney Montgomery Scott Class 1,744
RBB Class --
-------------
$ 452,616,472
=============
14
<PAGE>
BRADFORD MUNICIPAL MONEY MARKET SHARES
THE RBB FUND, INC.
MUNICIPAL MONEY MARKET PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FEBRUARY 29, 1996
(UNAUDITED)
NOTE 5. OTHER FINANCIAL HIGHLIGHTS
The Fund currently offers four other classes of shares representing
interests in the Municipal Money Market Portfolio: Bedford, Cash Preservation,
Janney Montgomery Scott and RBB. Each class is marketed to different types of
investors. Financial Highlights of the RBB and Cash Preservation classes are not
presented in this report due to their immateriality. Such information is
available in the annual reports of each respective family. The financial
highlights of certain of the other classes are as follows:
THE BEDFORD FAMILY
<TABLE>
<CAPTION>
MUNICIPAL 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................ 0.0150 0.0297 0.0195 0.0195 0.0287 0.0431
Net gains on securities (both realized
and unrealized)..................... -- -- -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Total from investment operations.. 0.0150 0.0297 0.0195 0.0195 0.0287 0.0431
------------ ------------ ------------ ------------ ------------ ------------
Less distributions:
Dividends (from net investment income) (0.0150) (0.0297) (0.0195) (0.0195) (0.0287) (0.0431)
Distributions (from capital gains)... -- -- -- -- -- --
------------ ------------ ------------ ------------ ------------ ------------
Total distributions............... (0.0150) (0.0297) (0.0195) (0.0195) (0.0287) (0.0431)
------------ ------------ ------------ ------------ ------------ ------------
Net asset value, end of period......... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
============ ============ ============ ============ ============ ============
Total Return........................... 3.06%(b) 3.01% 1.97% 1.96% 2.90% 4.40%
Ratios/Supplemental Data
Net assets, end of period............ $225,321,796 $198,424,813 $182,480,069 $215,577,193 $176,949,886 $215,139,746
Ratios of expenses to average
net assets ......................... .84%(a)(b) .82%(a) .77%(a) .77%(a) .77%(a) .74%(a)
Ratios of net investment income to
average net assets.................. 3.00%(b) 2.97% 1.95% 1.95% 2.87% 4.31%
<FN>
(a) Without the waiver of advisory and administration fees and without the reimbursement of certain operating expenses, the ratios
of expenses to average net assets for the Municipal Money Market Portfolio would have been 1.12% annualized for the six months
ended February 29, 1996, 1.14%, 1.12%, 1.16%, 1.15% and 1.13% for the years ended August 31, 1995, 1994, 1993, 1992 and 1991,
respectively.
(b) Annualized.
</FN>
</TABLE>
15
<PAGE>
BRADFORD MUNICIPAL MONEY MARKET SHARES
THE RBB FUND, INC.
MUNICIPAL 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>
MUNICIPAL MONEY MARKET PORTFOLIO
----------------------------------------
FOR THE PERIOD
JUNE 12, 1995
FOR THE (COMMENCEMENT OF
SIX MONTHS ENDED OPERATIONS) TO
FEBRUARY 29, 1996 AUGUST 31, 1995
----------- ------------
(UNAUDITED)
<S> <C> <C>
Net asset value, beginning of period $ 1.00 $ 1.00
----------- ------------
Income from investment operations:
Net investment income 0.0142 0.0063
----------- ------------
Total from investment operations 0.0142 0.0063
----------- ------------
Less distributions:
Dividends (from net investment income) (0.0142) (0.0063)
----------- ------------
Total distributions (0.0142) (0.0063)
----------- ------------
Net asset value, end of period $ 1.00 $ 1.00
=========== ============
Total Return 2.89%(b) 2.87%(b)
Ratios/Supplemental Data
Net assets, end of period $89,286,623 $113,225,932
Ratios of expenses to average net assets 1.00%(a)(b) 1.00%(a)(b)
Ratios of net investment income to
average net assets 2.84%(b) 2.83%(b)
<FN>
(a) Without the waiver of advisory and administration fees and without the
reimbursement of certain operating expenses, the ratios of expenses to
average net assets for the Municipal Money Market Portfolio would have been
1.28% annualized for the six months ended February 29, 1996 and 1.30%
annualized for the period ended August 31, 1995.
(b) Annualized.
</FN>
</TABLE>
16
<PAGE>
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