RBB LOGO
GRAPHIC OMITTED
FAMILY OF MUTUAL FUNDS
A TRADITION OF BUILDING WEALTH
Government Securities Portfolio,
Money Market Portfolio,
Municipal Money Market Portfolio
Semi-Annual Report
February 29, 1996
<PAGE>
THE RBB FAMILY
THE RBB FUND, INC.
SEMI-ANNUAL INVESTMENT ADVISER'S REPORT
Investor sentiment reversed course during the last few months of 1995. In
the second half of the year, investors believed that the Federal Reserve had
successfully engineered a "soft landing" and expected President Clinton and
Congress to agree on a plan that would balance the federal budget by 2002. As
1996 began, however, fears of recession began to re-emerge and the budget
negotiations, which had become very intense in December and January, all but
disappeared as politics and state primaries took center stage.
The lack of economic data due to the recently ended federal government
shutdown has added to the difficulty of assessing the current economic
environment.It is clear, however, that the economy is not robust. While retail
sales over the past three months suggest that real consumer spending should be
growing at a 2.0-2.5% rate, the manufacturing economy continues to be weak, as
evidenced by the National Association of Purchasing Managers' reading below 50.
But even this indicator has stabilized, suggesting that inventory reduction
programs have run their course. Nonetheless, business confidence remains high
and firms continue to invest in producer durable goods such as computers and
machine tools. Available evidence further points to continued strength in
exports, which are benefitting from the earlier low level of the dollar and the
high quality of U.S.-produced goods. The federal government remains the weak
link in a modest growth forecast and the budget impasse only exacerbates the
effect on U.S. output as the government buys fewer goods and services.
The nation's weak economic conditions fostered a declining interest rate
environment for the six-month period ended February 29, 1996. During this
period, the Federal Reserve reduced the federal funds rate to 5.25% from 5.75%
and the discount rate to 5.00% from 5.25%. Volatile market conditions
dramatically altered the shape of the yield curve (3-months to 30-years) from a
spread of 117 points on September 1, 1995 to a steepening bias of 145 basis
points on February 29, 1996. As the treasury market rallied, lowering the yield
on the long bond to 6%, yield spreads on mortgages widened initially but by
February 29, spreads narrowed below their six-month averages. Overall, this
sector underperformed as prepayments and duration concerns increased selling
pressure. The corporate sector realized excellent returns as heavy investor
demand absorbed all new issuance plus strengthening credit quality forced yield
spreads to tighten considerably.
Taking all the sources of final demand together, modest economic growth is
still the most likely forecast -- 2.5% real GDP growth in 1996, with the first
half of the year being relatively weak and the second half of the year
strengthening. Even this modest growth is going to require some help from the
Fed. The Fed's two federal funds rate cuts of 25 basis points each in 1995 were
not enough. With the dramatic fall in long-term interest rates, the flattening
of the yield curve through 1995 is a threat to the economy and raises the
specter of recession. Some steepening is necessary, which would indicate the
addition of liquidity to the system. We expect that steepening to come from a
combination of lower short-term interest rates and slightly higher long-term
rates.
Tax-exempt money market funds experienced record growth during the six
months ended February 29, 1996. Assets hit new all-time highs in each month and
ended the period at $134.7 billion, up $19.6 billion or 17% from last year. This
surge in assets can be attributed to uncertainty over changes to the tax code
and flat tax proposals, the Washington budget impasse, new T+3 settlement rule
changes and an inverted yield curve.
Investor concerns about credit quality created enormous demand for high
quality paper during the period. The pressure on the Japanese banking system, as
well as the ratings downgrades on several Japanese banks, widened the spreads
between Japanese letters of credit and European or domestic letters of credit to
over 30 basis points.
Tax-free money fund yields trended upwards in the fourth quarter as supply
increased. Yields hit a six-month peak at year-end due to seasonal window
dressing pressures. Weaker than expected economic reports and a lack of supply
caused yields to decline early in the new year.
PNC Institutional Management Corporation
(Please dial toll-free 800-430-9618 for questions
regarding your account or contact your broker.)
<PAGE>
THE RBB FAMILY
THE RBB FUND, INC.
GOVERNMENT SECURITIES PORTFOLIO
STATEMENT OF NET ASSETS
FEBRUARY 29, 1996
(UNAUDITED)
PAR
(000) VALUE
---------- ----------
AGENCY OBLIGATIONS--29.5%
FEDERAL HOME LOAN BANK--2.6%
6.500% 11/29/05 ................. $ 250 $ 250,062
----------
250,062
----------
FEDERAL HOME LOAN MORTGAGE CORP--2.6%
7.188% 09/15/99 ................. 250 254,368
----------
254,368
----------
FEDERAL NATIONAL MORTGAGE ASSOCIATION--24.3%
5.375% 01/13/98 ................. 250 248,473
7.050% 12/10/98 ................. 250 259,752
6.750% 08/24/00 ................. 250 253,830
8.250% 12/18/00 ................. 1,000 1,099,430
6.850% 04/05/04 ................. 250 259,075
7.700% 08/10/04 ................. 250 260,585
----------
2,381,145
----------
TOTAL AGENCY OBLIGATIONS
(Cost $2,790,215) ........... 2,885,575
----------
MORTGAGED BACKED SECURITIES--4.2%
9.000% 08/24/00 ................. 392 413,560
----------
TOTAL MORTGAGED BACKED SECURITIES
(Cost $388,801) ............. 413,560
----------
UNITED STATES TREASURY OBLIGATIONS--65.3%
U.S. TREASURY BONDS--50.7%
8.875% 02/15/19 ................. 1,000 1,262,790
8.500% 02/15/20 ................. 2,000 2,440,180
8.750% 08/15/20 ................. 1,000 1,253,390
----------
4,956,360
----------
U.S. TREASURY NOTES--14.6%
6.125% 05/31/97 ................. 900 908,667
7.000% 04/15/99 ................. 250 260,092
6.875% 07/31/99 ................. 250 259,850
----------
1,428,609
----------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $5,412,750) ........... 6,384,969
----------
VALUE
----------
TOTAL INVESTMENTS--99.0%
(Cost $8,591,766*) .............. $9,684,104
OTHER ASSETS IN EXCESS
OF LIABILITIES--1.0% ............ 96,425
----------
NET ASSETS (Applicable to 1,025,397
RBB shares)--100.0% ............. $9,780,529
==========
NET ASSET VALUE AND REDEMPTION
PRICE PER SHARE
($9,780,529 (DIVIDE) 1,025,397) .. $9.54
=====
OFFERING PRICE PER SHARE
($9.54 (DIVIDE) .9525) .......... $10.02
======
* Also cost for Federal income tax purposes. The gross apprecia-
tion (depreciation) on a tax basis is as follows:
Gross Appreciation ......... $1,097,165
Gross Depreciation ......... (4,827)
----------
Net Appreciation ........... $1,092,338
==========
See Accompanying Notes to Financial Statements.
2
<PAGE>
THE RBB FAMILY
THE RBB FUND, INC.
GOVERNMENT SECURITIES PORTFOLIO
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED
FEBRUARY 29, 1996 (UNAUDITED)
INVESTMENT INCOME
Interest ................................. $348,871
--------
EXPENSES
Investment advisory fees ................. 20,687
Administration fees ...................... 5,172
Distribution fees ........................ 20,687
Custodian fees ........................... 8,130
Transfer agent fees ...................... 14,429
Registration fees ........................ 5,200
Organization expense ..................... 7,630
Printing expenses ........................ 19,714
Other expenses ........................... 1,922
--------
103,571
Less fees waived ......................... (25,859)
Less reimbursements by advisor ........... (41,428)
--------
TOTAL EXPENSES .............................. 36,284
--------
NET INVESTMENT INCOME ....................... 312,587
--------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS
Net realized gain on investments ...... 240,397
Decrease in net unrealized appreciation
on investments ...................... (134,625)
--------
NET GAIN ON INVESTMENTS .................. 105,772
--------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS .......................... $418,359
========
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 ...... $ 312,587 $ 2,852,634
Net gain on investments .... 105,772 382,436
----------- -----------
Net increase in net assets
resulting from operations 418,359 3,235,070
----------- -----------
Distributions to shareholders:
Dividends to shareholders from
net investment income:
RBB shares ($.3840 and
$.6225, respectively,
per share) ............... (406,244) (2,609,620)
Distributions to shareholders
from capital:
RBB shares ($.1455 per share
for 1995) ............... -- (834,878)
----------- -----------
Total distributions to
shareholders ........... (406,244) (3,444,498)
----------- -----------
Net capital share transactions (745,379) (44,215,056)
----------- -----------
Total decrease in net assets .. (733,264) (44,424,484)
Net Assets:
Beginning of Period ........ 10,513,793 54,938,277
----------- -----------
End of Period .............. $ 9,780,529 $10,513,793
=========== ===========
See Accompanying Notes to Financial Statements.
3
<PAGE>
THE RBB FAMILY
THE RBB FUND, INC.
MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS
FEBRUARY 29, 1996
(UNAUDITED)
PAR
(000) VALUE
------- ------------
AGENCY OBLIGATIONS--2.5%
Student Loan Marketing Association
5.180% 03/05/96 ............... $20,000 $ 20,000,000
5.190% 03/05/96 ............... 10,000 10,000,000
5.200% 03/05/96 ............... 25,000 24,991,857
------------
TOTAL AGENCY OBLIGATIONS
(Cost $54,991,857) ........ 54,991,857
------------
CERTIFICATES OF DEPOSIT--8.0%
DOMESTIC CERTIFICATES OF DEPOSIT--1.4%
Society Nat Bank-Cleveland
6.400% 04/25/96 ............... 10,000 10,012,889
Chase Manhattan Bank
USA N.A. [A-1]
5.400% 06/13/96 ............... 20,000 20,000,000
------------
30,012,889
------------
YANKEE DOLLAR CERTIFICATES OF DEPOSIT--6.6%
Deutsche Bank
5.420% 04/05/96 ............... 25,000 24,999,902
Societe Generale
5.450% 04/04/96 ............... 70,000 70,000,000
5.720% 03/01/96 ............... 25,000 25,000,000
Westpac Banking Corp.
5.850% 06/04/96 ............... 25,000 25,000,000
------------
144,999,902
------------
TOTAL CERTIFICATES OF DEPOSIT
(Cost $175,012,791) .... 175,012,791
------------
BANK NOTES--2.3%
First National Bank of Boston
5.400% 05/07/96 ............... 25,000 25,000,000
LaSalle National Bank
5.160% 05/06/96 ............... 25,000 25,000,000
------------
TOTAL BANK NOTES
(Cost $50,000,000) ........ 50,000,000
------------
COMMERCIAL PAPER--50.4%
BANKS--8.5%
Lehman Brothers Holdings Inc.
5.710% 03/07/96 ............... 25,000 24,976,208
National City Corp.
5.450% 04/01/96 ............... 30,000 29,859,208
PAR
(000) VALUE
--------- ------------
BANKS--(CONTINUED)
National & Provincial Building
Society
5.670% 03/04/96 ............... $35,000 $ 34,983,463
NationsBank Corp.
5.370% 04/12/96 ............... 40,000 39,749,400
Svenska Handelsbanken Inc.
5.130% 05/06/96 ............... 40,000 39,623,800
Chemical Banking Corp.
5.610% 03/15/96 ............... 15,000 14,967,275
------------
184,159,354
------------
FINANCE LESSORS--2.3%
General Electric Capital Corp.
5.600% 03/28/96 ............... 50,000 49,790,000
------------
FINANCE SERVICES--5.9%
Countrywide Funding Corp.
5.150% 05/09/96 ............... 50,000 49,506,458
Whirlpool Financial Corp.
5.120% 05/10/96 ............... 30,000 29,701,334
5.100% 05/14/96 ............... 50,000 49,475,833
------------
128,683,625
------------
GLASS, GLASSWARE, PRESSED OR BLOWN--1.1%
Newell Co.
5.250% 03/18/96 ............... 25,000 24,938,021
------------
HOUSEHOLD APPLIANCES--1.0%
Whirlpool Corp.
5.100% 05/14/96 ............... 22,000 21,769,367
------------
NATURAL GAS TRANSMISSION--1.2%
Southern California Gas
5.560% 05/03/96 ............... 26,155 25,900,512
------------
PERSONAL CREDIT INSTITUTIONS--6.0%
BMW US Capital Corp.
5.670% 03/01/96 ............... 25,000 25,000,000
5.270% 03/21/96 ............... 50,000 49,853,611
General Motors Acceptance Corp.
5.620% 03/25/96 ............... 15,000 14,943,800
Associates Corp. of North America
5.150% 06/17/96 ............... 42,000 41,351,100
------------
131,148,511
------------
See Accompanying Notes to Financial Statements.
4
<PAGE>
THE RBB FAMILY
THE RBB FUND, INC.
MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS (CONTINUED)
FEBRUARY 29, 1996
(UNAUDITED)
PAR
(000) VALUE
------- ------------
PHARMACEUTICAL PREPARATIONS--2.6%
American Home Products Corp.
5.110% 05/10/96 ............... $25,000 $ 24,751,597
Glaxo Wellcome PLC
5.140% 05/10/96 ............... 32,000 31,680,178
-------------
56,431,775
-------------
PLASTIC MAIL, SYNTHETIC RESIN/
RUBBER CELLULOSE - NO GLASS--1.1%
Du Pont (E.I.) de Nemours & Co.
5.580% 07/18/96 ............... 25,000 24,461,375
-------------
SECURITY BROKERS & DEALERS--5.7%
Bear Stearns & Co., Inc.
5.550% 07/22/96 ............... 10,000 9,779,542
Goldman Sachs Group L.P.
5.600% 04/09/96 ............... 40,000 39,757,333
Morgan Stanley Group, Inc.
5.380% 04/08/96 ............... 75,000 74,574,083
-------------
124,110,958
-------------
SHORT-TERM BUSINESS CREDIT INSTITUTIONS--13.8%
American Express Credit Corp.
5.390% 04/30/96 ............... 50,000 49,550,833
CXC, Inc.
5.600% 03/05/96 ............... 25,000 24,984,444
5.130% 06/07/96 ............... 25,000 24,650,875
Corporate Asset Funding, Inc.
5.330% 04/29/96 ............... 40,000 39,650,589
Corporate Receivables Corp.
5.320% 04/12/96 ............... 50,000 49,689,666
5.150% 05/08/96 ............... 48,000 47,533,067
Sears Roebuck Acceptance Corp.
5.620% 03/04/96 ............... 25,000 24,988,292
5.620% 03/08/96 ............... 40,000 39,956,289
-------------
301,004,055
-------------
TELEPHONE COMMUNICATIONS--1.2%
GTE Corp.
5.300% 03/12/96 ............... 25,000 24,959,514
-------------
TOTAL COMMERCIAL PAPER
(Cost $1,097,357,067) ..... 1,097,357,067
-------------
PAR
(000) VALUE
------- ------------
MUNICIPAL BONDS--5.4%
CALIFORNIA--1.0%
Adventist Health Systems West
Series 1988 (First Interstate
Bank of California LOC)(DAGGER)
5.450% 03/06/96 ............... $12,925 $ 12,925,000
San Bernardino County California
Certificate of Participation
County Center Refinancing
Project, Series 1995(DAGGER)
5.350% 03/07/96 ............... 7,900 7,900,000
------------
20,825,000
------------
GEORGIA--0.1%
Richmond County Georgia IDA
(Monsanto Co. Project)
VRDN(DAGGER)
6.270% 06/01/96 ............... 1,300 1,300,000
------------
ILLINOIS--0.8%
Barton Healthcare Taxable Revenue
Bonds Series 1995 VRDN (American
Nation Bank LOC)(DAGGER)
5.450% 03/06/96 ............... 12,875 12,875,000
Baylis Group Partnership Weekly
Demand Taxable Bond Series 1992
VRDN (Societe Generale
LOC)(DAGGER)
5.600% 03/06/96 ............... 600 600,000
Illinois Health Facilities Authority
Convertible/ VRDN
(The Streeterville Corp. Project)
Series 1993-B (First National
Bank of Chicago LOC)(DAGGER)
5.400% 03/06/96 ............... 4,400 4,400,000
------------
17,875,000
------------
KENTUCKY--0.2%
Boone County Taxable IDR Refunding
Bonds (Square D Company Project)
Series 1994-B (Credit Lyonnais
LOC) VRDN(DAGGER)
5.400% 03/06/96 ............... 4,200 4,200,000
------------
See Accompanying Notes to Financial Statements.
5
<PAGE>
THE RBB FAMILY
THE RBB FUND, INC.
MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS (CONTINUED)
FEBRUARY 29, 1996
(UNAUDITED)
PAR
(000) VALUE
------- ------------
MINNESOTA--0.2%
Fairview Hospital And Healthcare
Services Taxable ADJ Convertible
Extendable Securities Series
1994 (MBIA Insured) VRDN(DAGGER)
5.350% 03/07/96 ............... $ 5,100 $ 5,100,000
------------
MISSISSIPPI--1.0%
Hinds County, Mississippi
IDRB VRDN(DAGGER)
5.450% 03/06/96 ............... 3,690 3,690,000
Mississippi Business Finance Corp.
Taxable IDR Bonds (Bryan Foods,
Inc. Project) Series 1994 (Sara
Lee Corporation Guaranty)
VRDN(DAGGER)
5.350% 03/06/96 ............... 14,000 14,000,000
Mississippi Business Finance Corp.
Taxable IDRB VRDN(DAGGER)
5.450% 03/07/96 ............... 3,500 3,500,000
------------
21,190,000
------------
NEW YORK--0.8%
Health Insurance Plan of Greater NY
ADJ/Convertible Extendable
Securities Series 1990 B-1
(Morgan Guaranty Trust Co. LOC)
VRDN(DAGGER)
5.400% 03/06/96 ............... 5,500 5,500,000
Health Insurance Plan of Greater NY
ADJ/Convertible Extendable
Securities VRDN(DAGGER)
5.400% 03/06/96 ............... 6,800 6,800,000
New York City
5.340% 08/21/96 ............... 5,000 5,000,000
------------
17,300,000
------------
NORTH CAROLINA--0.6%
Community Health Systems, Inc.
Taxable First National Bank of
North Carolina Series
1991-A(DAGGER)
5.650% 03/06/96 ............... 400 400,000
City of Ashville North Carolina
Tax Corp.(DAGGER)
5.350% 03/06/96 ............... 13,500 13,500,000
------------
13,900,000
------------
PAR
(000) VALUE
------- ------------
TEXAS--0.7%
South Central Texas Industrial
Development Corp. Taxable IDR
Bonds (Rohr Industries Project)
Series 1990 (Citibank N.A. LOC)
VRDN(DAGGER)
5.450% 03/06/96 ............... $14,800 $ 14,800,000
------------
TOTAL MUNICIPAL BONDS
(Cost $116,490,000) ....... 116,490,000
------------
REVENUE ANTICIPATION NOTES--0.5%
MANDATORY PUT BONDS--0.5%
De Kalb County Georgia Development
Authority (Emory U.)(DAGGER)
5.400% 03/06/96 ............... 10,100 10,100,000
------------
TOTAL REVENUE ANTICIPATION NOTES
(Cost $10,100,000) ........ 10,100,000
------------
CORPORATE OBLIGATIONS--22.1%
BANKS--6.7%
Citicorp
9.390% 05/29/96 ............... 5,000 5,040,993
First Union National Bank of North
Carolina(DAGGER)
5.310% 03/01/96 ............... 40,000 40,000,000
Morgan Guaranty Trust(DAGGER)
6.200% 03/01/96 ............... 50,000 49,988,381
Norwest Corp.(DAGGER)
5.310% 03/28/96 ............... 50,000 50,000,000
------------
145,029,374
------------
FINANCE LESSORS--2.3%
IBM Credit Corp.
5.880% 08/08/96 ............... 25,000 24,999,017
6.000% 08/28/96 ............... 25,000 24,999,016
------------
49,998,033
------------
MAJOR REGIONAL BANK--0.2%
Society Corp.
4.755% 03/11/96 ............... 3,300 3,298,487
------------
See Accompanying Notes to Financial Statements.
6
<PAGE>
THE RBB FAMILY
THE RBB FUND, INC.
MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS (CONTINUED)
FEBRUARY 29, 1996
(UNAUDITED)
PAR
(000) VALUE
------- -----------
PERSONAL CREDIT INSTITUTIONS--1.1%
General Motors Acceptance Corp.
6.460% 03/01/96(DAGGER) ....... $ 5,000 $ 4,998,402
8.250% 08/01/96 ............... 5,000 5,047,535
7.900% 03/12/97 ............... 14,750 15,142,055
------------
25,187,992
------------
SECURITY BROKERS & DEALERS--10.8%
Bear Stearns & Co., Inc.(DAGGER)
5.610% 03/01/96 ............... 20,000 20,000,000
5.640% 03/01/96 ............... 50,000 50,000,000
Goldman Sachs Group, LP(DAGGER)
5.440% 05/06/96 ............... 53,000 53,000,000
Lehman Brothers Holdings
Inc.(DAGGER)
5.910% 03/06/96 ............... 50,000 50,000,000
Merrill Lynch & Co.
6.440% 05/15/96 ............... 15,000 15,000,000
4.750% 06/24/96 ............... 9,135 9,102,270
6.050% 08/19/96 ............... 15,000 15,000,000
5.120% 02/27/97 ............... 25,000 24,995,041
------------
237,097,311
------------
SERVICES-EQUIPMENT RENTING & LEASING--1.0%
International Lease and Finance
Corp.
6.630% 06/01/96 ............... 15,000 15,036,250
4.750% 07/15/96 ............... 6,000 5,984,509
------------
21,020,759
------------
TOTAL CORPORATE OBLIGATIONS
(Cost $481,631,956) ....... 481,631,956
------------
TIME DEPOSITS--2.8%
Bank of Hawaii
5.690% 03/01/96 ............... 50,000 50,000,000
First Union National Bank
5.750% 03/01/96 ............... 11,300 11,300,000
------------
TOTAL TIME DEPOSITS
(Cost $61,300,000) ........ 61,300,000
------------
PAR
(000) VALUE
-------- ------------
REPURCHASE AGREEMENTS--6.4%
Goldman Sachs & Co. (Agreement
dated 02/29/96 to be repurchased
at $100,015,139, collateralized
by $54,773,415 Federal National
Mortgage Assoc.6.361% due
11/01/32 and $54,484,920
Federal Mortgage Assoc. Collateral
8.375% due 10/01/24. Market value
of collateral is $102,433,103)
5.450% 03/01/96 ............... $100,000 $100,000,000
Morgan Stanley & Co. (Agreement
dated 02/29/96 to be repurchased
at $40,006,055, collateralized by
$48,127,005 Federal National
Mortgage Assoc. Sinking Fund Notes
5.50% to 9.00% due 02/01/01 to
01/01/15. Market value of
collateral is $40,749,363)
5.450% 03/01/96 ............... 40,000 40,000,000
------------
TOTAL REPURCHASE AGREEMENTS
(Cost $140,000,000) ....... 140,000,000
------------
See Accompanying Notes to Financial Statements.
7
<PAGE>
THE RBB FAMILY
THE RBB FUND, INC.
MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS (CONCLUDED)
FEBRUARY 29, 1996
(UNAUDITED)
VALUE
--------------
TOTAL INVESTMENTS AT VALUE--100.4%
(Cost $2,186,883,671*) ............. $2,186,883,671
LIABILITIES IN EXCESS
OF OTHER ASSETS--(0.4%) ............ (8,847,207)
--------------
NET ASSETS (Applicable to
1,112,410,124 Bedford shares,
232,617 Cash Preservation shares,
528,881,063 Janney Montgomery
Scott shares, 57,931 RBB shares,
536,478,247 Sansom Street shares
and 800 other shares)--100.0% ...... $2,178,036,464
==============
NET ASSET VALUE, offering and
redemption price per share
($2,178,036,464 (DIVIDE) 2,178,060,782) $1.00
=====
* Also cost for Federal income tax purposes.
(DAGGER) Variable Rate Obligations -- The interest rate shown is the rate as of
February 29, 1996 and the maturity date shown is the longer of the next
interest rate readjustment date or the date the principal amount shown
can be recovered through demand.
INVESTMENT ABBREVIATIONS
VRDN ..................................................Variable Rate Demand Note
LOC ............................................................Letter of Credit
IDR ..............................................Industrial Development Revenue
See Accompanying Notes to Financial Statements.
8
<PAGE>
THE RBB FAMILY
THE RBB FUND, INC.
MONEY MARKET PORTFOLIO
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED
FEBRUARY 29, 1996 (UNAUDITED)
INVESTMENT INCOME
Interest ................................ $56,387,329
-----------
EXPENSES
Investment advisory fees ................ 3,571,794
Distribution fees ....................... 4,341,873
Service organization fees ............... 207,199
Directors' fees ......................... 12,755
Custodian fees .......................... 157,654
Transfer agent fees ..................... 1,376,180
Legal fees .............................. 34,361
Audit fees .............................. 33,544
Registration fees ....................... 195,499
Insurance expense ....................... 24,026
Printing expense ........................ 213,857
Miscellaneous ........................... 957
-----------
10,169,699
Less fees waived ........................ (1,766,060)
Less expense reimbursement by advisor ... (7,804)
-----------
TOTAL EXPENSES ....................... 8,395,835
-----------
NET INVESTMENT INCOME ...................... 47,991,494
-----------
REALIZED LOSS ON INVESTMENTS ............... (3,792)
-----------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS ......................... $47,987,702
===========
STATEMENT OF CHANGES IN NET ASSETS
FOR THE FOR THE
SIX MONTHS ENDED YEAR ENDED
FEBRUARY 29, 1996 AUGUST 31, 1995
----------------- ---------------
(UNAUDITED)
Increase (decrease) in net assets:
Operations:
Net investment income ............... $ 47,991,494 $ 64,913,329
Net loss on investments ............. (3,792) (18,463)
-------------- --------------
Net increase in net assets
resulting from operations ......... 47,987,702 64,894,866
-------------- --------------
Distributions to shareholders:
Dividends to shareholders from
net investment income:
Bedford shares ($.0242 and
$.0486, respectively,
per share) ........................ (24,450,386) (38,765,552)
Cash Preservation shares
($.0243 and $.0487,
respectively, per share) .......... (5,156) (11,336)
Janney Montgomery Scott
shares ($.0240 and $.0112,
respectively, per share) .......... (11,766,024) (4,784,092)
RBB shares ($.0240 and
$.0482, respectively,
per share) ........................ (1,329) (2,530)
Sansom Street shares ($.0266
and $.0543, respectively,
per share) ........................ (11,768,599) (21,349,819)
-------------- --------------
Total distributions to
shareholders .................... (47,991,494) (64,913,329)
-------------- --------------
Net capital share
transactions ........................ 356,668,568 736,630,198
-------------- --------------
Total increase in net assets ........... 356,664,776 736,611,735
Net Assets:
Beginning of period ................. 1,821,371,688 1,084,759,953
-------------- --------------
End of period ....................... $2,178,036,464 $1,821,371,688
============== ==============
See Accompanying Notes to Financial Statements.
9
<PAGE>
THE RBB FAMILY
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.
10
<PAGE>
THE RBB FAMILY
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.
11
<PAGE>
THE RBB FAMILY
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.
12
<PAGE>
THE RBB FAMILY
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.
13
<PAGE>
THE RBB FAMILY
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.
14
<PAGE>
THE RBB FAMILY
THE RBB FUND, INC.
MUNICIPAL MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS (CONCLUDED)
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.
15
<PAGE>
THE RBB FAMILY
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 FOR THE
SIX MONTHS ENDED YEAR ENDED
FEBRUARY 29, 1996 AUGUST 31, 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.
16
<PAGE>
THE RBB FAMILY
THE RBB FUND, INC.
FINANCIAL HIGHLIGHTS
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
GOVERNMENT SECURITIES PORTFOLIO
--------------------------------------------------------------------------------------------
FOR THE PERIOD
AUGUST 1, 1991
FOR THE SIX FOR THE FOR THE FOR THE FOR THE (COMMENCEMENT
MONTHS ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED OF OPERATIONS)
FEBRUARY 29, AUGUST 31, AUGUST 31, AUGUST 31, AUGUST 31, TO AUGUST 31,
1996 1995 1994 1993 1992 1991
------------ ----------- ----------- ----------- ----------- ---------------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period. $ 9.54 $ 9.69 $ 10.73 $ 10.46 $ 10.12 $ 10.00
---------- ----------- ----------- ----------- ----------- -----------
Income from investment operations:
Net investment income................ 0.2994 0.6460 0.5931 0.7080 0.8002 0.0737
Net gains (losses) on securities
(both realized and unrealized)..... 0.0846 (0.0280) (0.8651) 0.3300 0.3408 0.1213
---------- ----------- ----------- ----------- ----------- -----------
Total from investment operations.... 0.3840 0.6180 (0.2720) 1.0380 1.1410 0.1950
---------- ----------- ----------- ----------- ----------- -----------
Less distributions:
Dividends (from net investment income) (0.3840) (0.6225) (0.5901) (0.7080) (0.8010) (0.0750)
Distributions (from excess net
investment income)................. -- -- (0.0235) -- -- --
Return of capital.................... -- (0.1455) (0.1544) (0.0600) -- --
---------- ----------- ----------- ----------- ----------- -----------
Total distributions................. (0.3840) (0.7680) (0.7680) (0.7680) (0.8010) (0.0750)
---------- ----------- ----------- ----------- ----------- -----------
Net asset value, end of period......... $ 9.54 $ 9.54 $ 9.69 $ 10.73 $ 10.46 $ 10.12
========== =========== =========== =========== =========== ===========
Total return........................... 4.00%(c)(d) 6.72%(d) (2.60%)(d) 10.36%(d) 11.73%(d) 1.95%(c)(d)
Ratios/Supplemental Data
Net assets, end of period............ $9,780,529 $10,513,793 $54,938,277 $36,295,834 $25,603,528 $28,225,227
Ratios of expenses to average
net assets .70%(a)(b) .72%(a) .64%(a) .66%(a) .83%(a) 1.10%(a)(b)
Ratios of net investment income
to average net assets.............. 6.05%(b) 6.59% 5.86% 6.70% 7.81% 8.50%(b)
Portfolio turnover rate.............. 13%(c) 86% 65% 47% 21% 3%(c)
<FN>
(a) Without the waiver of advisory, administration and custody fees and without the reimbursement of certain operating expenses, the
ratios of expenses to average net assets for the Government Securities Portfolio would have been 2.00% for the six months ended
February 29, 1996, 1.22%, 1.10%, 1.22% and 1.22% for the years ended August 31, 1995, 1994, 1993 and 1992, respectively, and
1.28% annualized for the period ended August 31, 1991.
(b) Annualized.
(c) Not annualized.
(d) Sales load not reflected in total return.
</FN>
</TABLE>
See Accompanying Notes to Financial Statements.
17
<PAGE>
THE RBB FAMILY
THE RBB FUND, INC.
FINANCIAL HIGHLIGHTS (b)
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
MONEY MARKET PORTFOLIO
-----------------------------------------------------------------------------
FOR THE FOR THE FOR THE FOR THE FOR THE FOR THE
SIX MONTHS YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED 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 .................. 0.0240 0.0482 0.0273 0.0238 0.0370 0.0621
Net gains on securities (both
realized and unrealized) .............. -- -- -- -- 0.0007 --
-------- -------- -------- -------- -------- --------
Total from investment
operations .......................... 0.0240 0.0482 0.0273 0.0238 0.0377 0.0621
-------- -------- -------- -------- -------- --------
Less distributions:
Dividends (from net
investment income)..................... (0.0240) (0.0482) (0.0273) (0.0238) (0.0370) (0.0621)
Distributions (from
capital gains)......................... -- -- -- -- (0.0007) --
-------- -------- -------- -------- -------- --------
Total distributions.................... (0.0240) (0.0482) (0.0273) (0.0238) (0.0377) (0.0621)
-------- -------- -------- -------- -------- --------
Net Asset Value, End of Period ........... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ======== ========
Total Return.............................. 4.94%(c) 4.93% 2.76% 2.41% 3.84% 6.40%
Ratios/Supplemental Data
Net assets, end of period............... $ 57,931 $ 55,401 $ 45,314 $ 57,866 $ 74,176 $108,525
Ratios of expenses to average
net assets............................. 1.00%(a)(c) 1.00%(a) 1.00%(a) 1.00%(a) 1.00%(a) 1.00%(a)
Ratios of net investment
income to average
net assets............................. 4.82%(c) 4.82% 2.73% 2.38% 3.70% 6.21%
</TABLE>
<TABLE>
<CAPTION>
MUNICIPAL MONEY MARKET PORTFOLIO
-----------------------------------------------------------------------------
FOR THE FOR THE FOR THE FOR THE FOR THE FOR THE
SIX MONTHS YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED 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 .................. 0.0142 0.0279 0.0172 0.0172 0.0264 0.0406
Net gains on securities (both
realized and unrealized) .............. -- -- -- -- -- --
-------- ------- ------- ------- ------- -------
Total from investment
operations .......................... 0.0142 0.0279 0.0172 0.0172 0.0264 0.0406
-------- ------- ------- ------- ------- -------
Less distributions:
Dividends (from net
investment income)..................... (0.0142) (0.0279) (0.0172) (0.0172) (0.0264) (0.0406)
Distributions (from
capital gains)......................... -- -- -- -- --
-------- ------- ------- ------- ------- -------
Total distributions.................... (0.0142) (0.0279) (0.0172) (0.0172) (0.0264) (0.0406)
-------- ------- ------- ------- ------- -------
Net Asset Value, End of Period ........... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======= ======= ======= ======= =======
Total Return.............................. 2.89%(c) 2.82% 1.73% 1.73% 2.67% 4.14%
Ratios/Supplemental Data
Net assets, end of period............... $ 5,044 $ 4,939 $ 4,861 $ 5,273 $ 4,166 $ 2,192
Ratios of expenses to average
net assets............................. 1.00%(a)(c) 1.00%(a) 1.00%(a) 1.00%(a) 1.00%(a) .99%(a)
Ratios of net investment
income to average
net assets............................. 2.84%(c) 2.79% 1.72% 1.72% 2.64% 4.06%
<FN>
(a) Without the waiver of advisory, administration and transfer agency fees and without the reimbursement of certain operating
expenses, the ratios of expenses to average net assets for the Money Market Portfolio would have been 18.78% annualized for the
six months ended February 29, 1996, 17.57%, 14.62%, 10.62%, 4.81% and 6.48% for the years ended August 31, 1995, 1994, 1993,
1992 and 1991, respectively. For the Municipal Money Market Portfolio, the ratios of expenses to average net assets would have
been 197.95% annualized for the six months ended February 29, 1996, 162.20%, 154.22%, 191.54%, 250.95% and 131.15% for the years
ended August 31, 1995, 1994, 1993, 1992 and 1991, respectively.
(b) Financial Highlights relate solely to the RBB Class of shares within each portfolio.
(c) Annualized.
</FN>
</TABLE>
See Accompanying Notes to Financial Statements.
18
<PAGE>
THE RBB 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, three of which are included in these financial
statements.
The Fund has authorized capital of thirty billion shares of common stock of
which 12.2 billion are currently classified into sixty-one classes. Each class
represents an interest in one of seventeen investment portfolios of the Fund,
fifteen of which are currently in operation. The classes have been grouped into
fifteen separate "families", eight of which have begun investment operations:
the 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 RBB Family represents
interests in three portfolios, which are covered in this report.
A) SECURITY VALUATION -- Government Securities Portfolio:
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. Corporate bonds,
tax-exempt bonds and notes, and government securities are valued on the
basis of quotations provided by an independent pricing service which uses
information with respect to transactions on bonds, quotations from bond
dealers, market transactions in comparable securities and various
relationships between securities in determining value. Short-term
obligations with maturities of 60 days or less are valued at amortized cost
which approximates market value.
Money Market Portfolio and Municipal Money Market Portfolio:
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. These portfolios
seek 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
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.
C) DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS -- Government
Securities Portfolio: Dividends from net investment income from each
portfolio are declared and paid at least monthly. Money Market Portfolio
and Municipal Money Market Portfolio: Dividends from net investment income
are declared daily and paid monthly. For all portfolios, any net realized
capital gains will be 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.
These differences are primarily due to differing treatments of mortgage-
backed securities.
D) FEDERAL INCOME TAXES -- No provision is made for Federal taxes
as it is the Fund's intention to have each portfolio continue to qualify
for and elect the tax treatment applicable to regulated investment
companies under the Internal Revenue Code and make the requisite
distributions to its shareholders which will be sufficient to relieve it
from Federal income and excise taxes.
E) ORGANIZATION COSTS -- Costs incurred by the Fund in connection
with its organization and initial registration and public offering of
shares have been deferred by the Fund. Organization costs are being
amortized on a straight-line basis for a five-year period which began upon
the commencement of operations of the Fund.
19
<PAGE>
THE RBB FAMILY
THE RBB FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FEBRUARY 29, 1996
(UNAUDITED)
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
F) 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.
G) 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.
NOTE 2. TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES
Pursuant to Investment Advisory Agreements, 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 each of the three portfolios
described herein.
For its advisory services, PIMC is entitled to receive the following fees,
computed daily and payable monthly based on a portfolio's average daily net
assets:
<TABLE>
<CAPTION>
PORTFOLIO ANNUAL RATE
---------------------------------- ---------------------------------------------------
<S> <C>
Government Securities Portfolio .40% of first $250 million of net assets;
.35% of next $250 million of net assets;
and .30% of net assets in excess of $500 million.
Money Market Portfolio .45% of first $250 million of net assets;
.40% of next $250 million of net assets;
and .35% of net assets in excess of $500 million.
Municipal Money Market Portfolio .35% of first $250 million of net assets;
.30% of next $250 million of net assets;
and .25% of net assets in excess of $500 million.
</TABLE>
PIMC may, at its discretion, voluntarily waive all or any portion of its
advisory fee for any of the portfolios. For each class of shares within a
respective portfolio, the net advisory fee charged to each class is the same on
a relative basis. For the six months ended February 29, 1996, advisory fees and
waivers for each of the three investment portfolios were as follows:
<TABLE>
<CAPTION>
GROSS NET
ADVISORY ADVISORY
FEE WAIVER FEE
---------- ---------- ----------
<S> <C> <C> <C>
Government Securities Portfolio $ 20,687 $ (20,687) $ --
Money Market Portfolio 3,571,794 (1,589,182) 1,982,612
Municipal Money Market Portfolio 691,055 (585,935) 105,120
</TABLE>
PNC Bank serves as the sub-advisor for the Money Market and Municipal Money
Market Portfolios. The Government Securities Portfolio has no sub-advisor. PNC
Bank, as sub-advisor, receives a fee directly from PIMC, not the portfolios. 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, serves as each
class's transfer and disbursing agent.
20
<PAGE>
THE RBB 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
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
three investment portfolios were as follows:
<TABLE>
<CAPTION>
GROSS NET
TRANSFER AGENCY TRANSFER AGENCY
FEE WAIVER FEE
--------------- -------------- ---------------
<S> <C> <C> <C>
Government Securities Portfolio
RBB Class $ 14,429 $ -- $ 14,429
============ ========== ===========
Money Market Portfolio
Bedford Class $ 760,533 $ -- $ 760,533
Cash Preservation Class 4,608 (4,307) 301
Janney Montgomery
Scott Class 481,520 (168,268) 313,252
RBB Class 4,400 (4,303) 97
Sansom Street Class 125,119 -- 125,119
------------ ---------- -----------
Total Money Market Portfolio $ 1,376,180 $ (176,878) $ 1,199,302
============ ========== ===========
Municipal Money Market Portfolio
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 Municipal Money Market Portfolio $ 111,006 $ (8,877) $ 102,129
============ ========== ===========
</TABLE>
21
<PAGE>
THE RBB FAMILY
THE RBB FUND, INC.
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 Government Securities and
Municipal Money Market Portfolios. The administration fee is computed daily and
payable monthly at the annual rate of .10% of each Portfolio's average daily net
assets. PFPC may, at its discretion, voluntarily waive all or any portion of its
administration fee for the Portfolios. For the six months ended February 29,
1996, administration fees and waivers for the two portfolios were as follows:
<TABLE>
<CAPTION>
GROSS NET
ADMINISTRATION ADMINISTRATION
FEE WAIVER FEE
-------------- -------------- --------------
<S> <C> <C> <C>
Government Securities Portfolio $ 5,172 $ (5,172) $ --
Municipal Money Market Portfolio 209,622 -- 209,622
</TABLE>
The Fund, on behalf of each class of shares within the investment
portfolios, 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 of shares within the three investment portfolios were as follows:
Distribution
Fee
------------
Government Securities Portfolio
RBB Class $ 20,687
===========
MONEY MARKET PORTFOLIO
BEDFORD CLASS $ 2,730,852
CASH PRESERVATION CLASS 422
JANNEY MONTGOMERY SCOTT CLASS 1,463,057
RBB CLASS 110
SANSOM STREET CLASS 147,432
-----------
Total Money Market Portfolio $ 4,341,873
===========
Municipal Money Market Portfolio
Bedford Class $ 554,690
Bradford Class 321,494
Cash Preservation Class 331
Janney Montgomery Scott Class 297,373
RBB Class 10
-----------
Total Municipal Money Market Portfolio $ 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, service
organization fees were $207,199 for the Money Market Portfolio and $0 for the
Municipal Money Market Portfolio.
22
<PAGE>
THE RBB FAMILY
THE RBB FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FEBRUARY 29, 1996
(UNAUDITED)
NOTE 3. PURCHASE AND SALES OF SECURITIES
For the six months ended February 29, 1996, purchases and sales of
investment securities and United States Government Obligations (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>
Government Securities Portfolio $ -- $ -- $1,280,646 $1,790,588
</TABLE>
NOTE 4. CAPITAL SHARES
Transactions in capital shares for each period were as follows:
<TABLE>
<CAPTION>
GOVERNMENT SECURITIES PORTFOLIO
--------------------------------------------------------------
FOR THE FOR THE
SIX MONTHS ENDED YEAR ENDED
FEBRUARY 29, 1996 AUGUST 31, 1995
---------------------------- ----------------------------
(UNAUDITED)
SHARES VALUE SHARES VALUE
----------- ---------- ----------- ------------
<S> <C> <C> <C> <C>
Shares sold:
RBB CLASS 1,094 $ 10,525 9,203 $ 88,182
Shares issued in reinvestment of dividends:
RBB Class 21,106 206,769 78,459 744,477
Shares repurchased:
RBB Class (98,423) (962,673) (4,653,758) (45,047,715)
----------- ---------- ----------- ------------
Net decrease (76,223) $ (745,379) (4,566,096) $(44,215,056)
=========== ========== =========== ============
RBB Shares authorized 100,000,000 100,000,000
=========== ===========
</TABLE>
23
<PAGE>
THE RBB FAMILY
THE RBB FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FEBRUARY 29, 1996
(UNAUDITED)
NOTE 4. CAPITAL SHARES (CONTINUED)
Transactions in capital shares (at $1.00 per capital share) for each period
were as follows:
<TABLE>
<CAPTION>
MONEY MARKET PORTFOLIO MUNICIPAL MONEY MARKET PORTFOLIO
------------------------------------------- ------------------------------------------
FOR THE FOR THE FOR THE FOR THE
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
FEBRUARY 29, 1996 AUGUST 31, 1995 FEBRUARY 29, 1996 AUGUST 31, 1995
------------------------------------------- ----------------- ----------------
(UNAUDITED) (UNAUDITED)
VALUE VALUE VALUE VALUE
----------------- ---------------- ---------------- ----------------
<S> <C> <C> <C> <C>
Shares sold:
Bedford Class $1,912,107,897 $2,966,911,277 $ 528,809,679 $1,104,088,188
Bradford Class -- -- 246,378,318 474,166,249
Cash Preservation Class 76,761 84,527 130,118 175,548
Janney Montgomery
Scott Class 1,126,947,114 855,058,809 217,548,443 208,067,881
RBB Class 6,693 31,504 400 5,004
Sansom Street Class 946,518,676 1,864,628,110 -- --
Shares issued in reinvestment
of dividends:
Bedford Class 24,390,767 37,681,204 2,998,655 5,576,408
Bradford Class -- -- 1,738,434 3,126,860
Cash Preservation Class 5,178 11,226 2,301 5,478
Janney Montgomery
Scott Class 11,597,010 4,534,944 1,418,406 662,565
RBB Class 1,340 2,500 72 146
Sansom Street Class 8,591,868 16,689,941 -- --
Shares repurchased:
Bedford Class (1,759,920,802) (2,779,499,052) (504,911,015) (1,093,651,142)
Bradford Class -- -- (221,147,616) (466,448,018)
Cash Preservation Class (84,987) (91,268) (196,520) (220,601)
Janney Montgomery
Scott Class (1,053,312,158) (415,944,656) (242,906,025) (95,506,391)
RBB Class (5,503) (23,917) (367) (5,072)
Sansom Street Class (860,251,286) (1,813,444,951) -- --
-------------- -------------- ------------- --------------
Net increase $ 356,668,568 $ 736,630,198 $ 29,863,283 $ 140,043,103
============== ============== ============= ==============
RBB Shares authorized 500,000,000 500,000,000 500,000,000 500,000,000
============== ============== ============= ==============
</TABLE>
24
<PAGE>
THE RBB 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>
GOVERNMENT MUNICIPAL
SECURITIES MONEY MARKET MONEY MARKET
PORTFOLIO PORTFOLIO PORTFOLIO
------------- -------------- ------------
<S> <C> <C> <C>
Capital Paid-In:
BEDFORD CLASS -- $1,112,410,124 $225,391,612
Bradford Class -- -- 137,904,692
Cash Preservation Class -- 232,617 97,170
Janney Montgomery Scott Class -- 528,881,063 89,284,879
RBB Class $13,653,694 57,931 5,044
Sansom Street Class -- 536,478,247 --
Other Classes -- 800 800
Undistributed Net Investment Income
Bedford Class -- -- --
Bradford Class -- -- --
Cash Preservation Class -- -- --
Janney Montgomery Scott Class -- -- --
RBB Class 6,814 -- --
Sansom Street Class -- -- --
Accumulated Net Realized Gain (Loss) on Investments
Bedford Class -- (12,775) (69,816)
Bradford Class -- -- 341
Cash Preservation Class -- (2) 6
Janney Montgomery Scott Class -- (5,419) 1,744
RBB Class (4,972,317) -- --
Sansom Street Class -- (6,122) --
Unrealized Appreciation (Depreciation) on Investments
Bedford Class -- -- --
Bradford Class -- -- --
Cash Preservation Class -- -- --
Janney Montgomery Scott Class -- -- --
RBB Class 1,092,338 -- --
Sansom Street Class -- -- --
----------- -------------- ------------
$ 9,780,529 $2,178,036,464 $452,616,472
=========== ============== ============
</TABLE>
25
<PAGE>
THE RBB FAMILY
THE RBB FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FEBRUARY 29, 1996
(UNAUDITED)
NOTE 6. OTHER FINANCIAL HIGHLIGHTS
The Fund currently offers four other classes of shares representing
interests in the Money Market Portfolio: Bedford, Cash Preservation, Janney
Montgomery Scott and Sansom Street. The Fund currently offers four other classes
of shares representing interests in the Municipal Money Market Portfolio:
Bedford, Bradford, Cash Preservation and Janney Montgomery Scott. Each class is
marketed to different types of investors. Financial Highlights of the Cash
Preservation class are not presented in this report due to their immateriality.
Such information is available in the annual reports of the Cash Preservation
family. The financial highlights of certain of the other classes are as follows:
THE BEDFORD FAMILY
<TABLE>
<CAPTION>
MONEY MARKET PORTFOLIO
-----------------------------------------------------------------------------
FOR THE FOR THE FOR THE FOR THE FOR THE FOR THE
SIX MONTHS YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED ENDED
FEBRUARY 29, AUGUST 31, AUGUST 31, AUGUST 31, AUGUST 31, AUGUST 31,
1996 1995 1994 1993 1992 1991
------------ ---------- ---------- ---------- ---------- ----------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period ..... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
---------- -------- -------- -------- -------- --------
Income from investment
operations:
Net investment income .................... 0.0242 0.0486 0.0278 0.0243 0.0375 0.0629
Net gains on securities (both
realized and unrealized) .............. -- -- -- -- 0.0007 --
---------- -------- -------- -------- -------- --------
Total from investment
operations .......................... 0.0242 0.0486 0.0278 0.0243 0.0382 0.0629
---------- -------- -------- -------- -------- --------
Less distributions:
Dividends (from net
investment income) ................... (0.0242) (0.0486) (0.0278) (0.0243) (0.0375) (0.0629
Distributions (from
capital gains) ....................... -- -- -- -- (0.0007) --
---------- -------- -------- -------- -------- --------
Total distributions.................... (0.0242) (0.0486) (0.0278) (0.0243) (0.0382) (0.0629)
---------- -------- -------- -------- -------- --------
Net asset value, end of period ........... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========== ======== ======== ======== ======== ========
Total Return.............................. 4.98%(b) 4.97% 2.81% 2.46% 3.89% 6.48%
Ratios/Supplemental Data
Net assets, end of period (000's) ...... $1,112,397 $935,821 $710,737 $782,153 $736,842 $747,530
Ratios of expenses to average
net assets............................. .97%(a)(b) .96%(a) .95%(a) .95%(a) .95%(a) .92%(a)
Ratios of net investment
income to average
net assets............................. 4.85%(b) 4.86% 2.78% 2.43% 3.75% 6.29%
</TABLE>
<TABLE>
<CAPTION>
MUNICIPAL MONEY MARKET PORTFOLIO
-----------------------------------------------------------------------------
FOR THE FOR THE FOR THE FOR THE FOR THE FOR THE
SIX MONTHS YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED 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 (000's) ...... $225,322 $198,425 $182,480 $215,577 $176,950 $215,140
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 money market portfolio would have been 1.13% annualized for the six months ended
February 29, 1996, 1.17%, 1.16%, 1.19%, 1.20% and 1.17% for the years ended August 31, 1995, 1994, 1993, 1992 and 1991,
respectively. For the Municipal Money Market Portfolio, the ratios of expenses to average net assets would have been 1.12%
annualized for the six months ended February 29, 1996, 1.14%, 1.12%, 1.16%, 1.15% and 1.13% for the years ended August 31, 1995,
1994, 1993, 1992 and 1991, respectively.
(b) Annualized.
</FN>
</TABLE>
26
<PAGE>
THE RBB FAMILY
THE RBB FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FEBRUARY 29, 1996
(UNAUDITED)
NOTE 6. OTHER FINANCIAL HIGHLIGHTS (CONTINUED)
BRADFORD MUNICIPAL MONEY MARKET SHARES
<TABLE>
<CAPTION>
FOR THE FOR THE FOR THE FOR THE FOR THE PERIOD
SIX MONTHS YEAR YEAR YEAR JANUARY 10,1992
ENDED ENDED ENDED ENDED (COMMENCEMENT OF
FEBRUARY 29, AUGUST 31, AUGUST 31, AUGUST 31, OPERATIONS) TO
1996 1995 1994 1993 AUGUST 31, 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.
</FN>
</TABLE>
27
<PAGE>
THE RBB FAMILY
THE RBB FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FEBRUARY 29, 1996
(UNAUDITED)
NOTE 6. OTHER FINANCIAL HIGHLIGHTS (CONTINUED)
THE JANNEY MONTGOMERY SCOTT MONEY FUNDS
<TABLE>
<CAPTION>
MUNICIPAL MONEY
MONEY MARKET PORTFOLIO MARKET PORTFOLIO
----------------------------------- -------------------------------------
FOR THE PERIOD FOR THE PERIOD
FOR THE JUNE 12, 1995 FOR THE JUNE 12, 1995
SIX MONTHS (COMMENCEMENT OF SIX MONTHS (COMMENCEMENT OF
ENDED OPERATIONS) TO ENDED OPERATIONS) TO
FEBRUARY 29, 1996 AUGUST 31, 1995 FEBRUARY 29, 1996 AUGUST 31, 1995
----------------- ----------------- ----------------- ------------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
Net asset value, beginning of period ............ $ 1.00 $ 1.00 $ 1.00 $ 1.00
------------ ------------ ----------- ------------
Income from investment operations:
Net investment income ......................... 0.0240 0.0112 0.0142 0.0063
------------ ------------ ----------- ------------
Total from investment operations ............ 0.0240 0.0112 0.0142 0.0063
------------ ------------ ----------- ------------
Less distributions:
Dividends (from net investment income) ........ (0.0240) (0.0112) (0.0142) (0.0063)
------------ ------------ ----------- ------------
Total distributions ......................... (0.0240) (0.0112) (0.0142) (0.0063)
------------ ------------ ----------- ------------
Net asset value, end of period .................. $ 1.00 $ 1.00 $ 1.00 $ 1.00
============ ============ =========== ============
TOTAL RETURN .................................... 4.94%(b) 5.30%(b) 2.89%(b) 2.87%(b)
Ratios/Supplemental Data
Net assets, end of period ..................... $528,875,644 $443,644,599 $89,286,623 $113,225,932
Ratios of expenses to average net assets ...... 1.00%(a)(b) 1.00%(a)(b) 1.00%(a)(b) 1.00%(a)(b)
Ratios of net investment income to
average net assets .......................... 4.82%(b) 5.04%(b) 2.84%(b) 2.83%(b)
<FN>
(a) Without the waiver of advisory, administration and transfer agent fees and
without the reimbursement of certain operating expenses, the ratios of
expenses to average net assets for the Money Market Portfolio would have
been 1.23% annualized for the six months ended February 29, 1996 and 1.23%
annualized for the period ended August 31, 1995. For the Municipal Money
Market Portfolio, the ratio of expenses to average net assets 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>
28
<PAGE>
THE RBB FAMILY
THE RBB FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONCLUDED)
FEBRUARY 29, 1996
(UNAUDITED)
NOTE 6. OTHER FINANCIAL HIGHLIGHTS (CONTINUED)
THE SANSOM STREET FAMILY
<TABLE>
<CAPTION>
MONEY MARKET PORTFOLIO
---------------------------------------------------------------------------------------
FOR THE SIX FOR THE FOR THE FOR THE FOR THE FOR THE
MONTHS ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
FEBRUARY 29, AUGUST 31, AUGUST 31, AUGUST 31, AUGUST 31, AUGUST 31,
1996 1995 1994 1993 1992 1991
------------ ------------ ------------ ------------ ----------- ------------
(UNAUDITED)
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------------ ------------ ------------ ------------ ------------ ------------
Income from investment operations:
Net investment income.................. 0.0266 0.0543 0.0334 0.0304 0.0435 0.0684
Net gains on securities (both
realized and unrealized)........... -- -- -- -- 0.0007 --
------------ ------------ ------------ ------------ ------------ ------------
Total from investment operations.. 0.0266 0.0543 0.0334 0.0304 0.0442 0.0684
------------ ------------ ------------ ------------ ------------ ------------
Less distributions:
Dividends (from net investment income) (0.0266) (0.0543) (0.0334) (0.0304) (0.0435) (0.0684)
Distributions (from capital gains)... -- -- -- -- (0.0007) --
------------ ------------ ------------ ------------ ------------ ------------
Total distributions............... (0.0266) (0.0543) (0.0334) (0.0304) (0.0442) (0.0684)
------------ ------------ ------------ ------------ ------------ ------------
Net asset value, end of period......... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
============ ============ ============ ============ ============ ============
Total Return........................... 5.49%(b) 5.57% 3.39% 3.08% 4.51% 7.06%
Ratios/Supplemental Data
Net assets, end of period............ $536,472,125 $441,613,801 $373,745,178 $190,794,098 $228,078,764 $138,417,995
Ratios of expenses to average net assets .48%(a)(b) .39%(a) .39%(a) .34%(a) .35%(a) .37%(a)
Ratios of net investment income
to average net assets.............. 5.34%(b) 5.43% 3.34% 3.04% 4.35% 6.84%
<FN>
(a) Without the waiver of advisory and without the reimbursement of certain
operating expenses, the ratios of expenses to average net assets for the
Money Market Portfolio would have been .64% annualized for the six months
ended February 29, 1996, .59%, .60%, .60%, .61% and .61% for the years
ended August 31, 1995, 1994, 1993, 1992 and 1991, respectively.
(b) Annualized.
</FN>
</TABLE>
29
<PAGE>
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