- --------------------------------------------------------------------------------
BRADFORD
GOVERNMENT
OBLIGATIONS
MONEY MARKET
PORTFOLIO
[GRAPHIC OMITTED]
J.C. Bradford & Co.
Member New York Stock Exchange Inc.
Annual Report
August 31, 1996
<PAGE>
BRADFORD GOVERNMENT OBLIGATIONS MONEY MARKET SHARES
THE RBB FUND, INC.
ANNUAL INVESTMENT ADVISER'S REPORT
Although this summer's weather remained on the cool side, the debate over
Federal Reserve monetary policy became quite heated as the year progressed. By
early July, a majority of Fed watchers were convinced that a rise in short-term
interest rates was imminent, and pointed to July's strong employment report as
evidence. The only question seemed to be the size and timing of the Fed's move.
Would the Fed wait until its August meeting, or would they immediately raise the
funds rate 25 or 50 basis points? Certainly, they pointed out, the jump in
nonfarm payroll (+700,000 jobs) and the spike in hourly earnings (+9 cents) was
cause for immediate action by the Fed to curb the economy and prevent a
rekindling of inflation. However, as has often happened this year, economic
reports that seemed to suggest either a business expansion or a slowdown were
followed quite closely by reports that suggested otherwise. It seemed that after
the winter's government shut downs and snowstorms, the predictability of
economic numbers became a lost art in 1996.
This same type of reversal of expectations occurred again in July following
the strong jobs report. Within only a few weeks, signs of slower economic
activity had tempered the certainty of a rate hike, and by the time Alan
Greenspan spoke at his Humphrey-Hawkins testimony, he speculated that, "looking
forward, there are a number of reasons to expect demands to moderate and
economic activity to settle back toward a more sustainable pace in the months
ahead." The Federal Reserve's forecast for growth is 2.5%-2.75% this year,
falling to 1.75%-2.25% next year; while inflation should average about
3.0%-3.25% this year, and 2.75%-3.0% next year. Greenspan's remarks were very
well received by the markets, and stocks and bonds rose sharply into early
August. In addition, the expectation of higher short-term interest rates eased
considerably, and by the time the Fed met on August 20, there was almost no one
in the "tighter" camp.
Short-term taxable interest rates have held steady at 5.25% (federal funds
rate) for the last two quarters. The Federal Reserve's last move was on January
31, when they eased monetary policy to encourage economic growth, following news
of a very weak fourth quarter 1995. At that time, market sentiment was biased
towards additional easings of monetary policy and the short-term yield curve
offered no incentive to extend. By mid-April, however, strong jobs reports
worried the markets that the Fed would not only stop easing but might consider
tightening. In response, the yield curve turned positive and rewarded longer
average maturities with yield pick ups of 20-30 basis points. The Money Market
and Government portfolios took advantage of this opportunity by moving their
maturities to the 50-60 day range. For much of the last two quarters,
investments of 3-12 months have outyielded overnight rates by 25-50 basis
points.
As always, all the Fund's portfolios emphasized high quality securities and
highly liquid structures, in addition to providing competitive daily returns.
Our credit research department employs fifteen professionals to approve and
monitor the creditworthiness of every issue/issuer in which the portfolios
invest. Finally, as of the date of this report, there are a number of proposed
amendments to Rule 2a-7, the regulations which govern money market funds.The
anticipated effective date of October 3 has been postponed by the SEC. We are
following the situation closely and will be reporting to you in the future about
the substance and timing of those changes.
PNC Institutional Management Corporation
(Please dial toll-free 800-533-7719 for questions regarding
your account or contact your broker.)
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
To the Shareholders and Board of Directors of The RBB Fund, Inc.:
We have audited the accompanying statements of net assets of the Government
Obligations Money Market Portfolio of The RBB Fund, Inc., as of August 31, 1996,
and the related statements of operations for the year then ended, the statement
of changes in net assets for each of the two years in the period then ended, and
the financial highlights for each of the periods presented. These financial
statements and financial highlights are the responsibility of the Fund's
management. Our responsibility is to express an opinion on these financial
statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of investments held by the
custodian and brokers as of August 31, 1996. An audit also includes assessing
the accounting principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation. We believe that
our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of the
Government Obligations Money Market Portfolio of The RBB Fund, Inc. as of August
31, 1996 and the results of its operations for the year then ended, the changes
in its net assets for each of the two years in the period then ended, and its
financial highlights for each of the periods presented, in conformity with
generally accepted accounting principles.
COOPERS & LYBRAND L.L.P.
2400 Eleven Penn Center
Philadelphia, Pennsylvania
October 15, 1996
2
<PAGE>
BRADFORD GOVERNMENT OBLIGATIONS MONEY MARKET SHARES
THE RBB FUND, INC.
GOVERNMENT OBLIGATIONS MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS
AUGUST 31, 1996
PAR
(000) VALUE
-------- ------------
AGENCY OBLIGATIONS--53.8%
FEDERAL FARM CREDIT BANK--8.1%
5.120% 09/04/96(DAGGER) ..................... $ 15,000 $ 14,998,280
5.400% 04/01/97 ............................. 30,000 29,977,099
------------
44,975,379
------------
FEDERAL HOME LOAN BANK--8.1%
5.277% 09/02/96(DAGGER) ..................... 20,000 19,998,784
5.238% 09/20/96(DAGGER) ..................... 15,000 14,999,434
5.560% 10/25/96 ............................. 10,000 9,997,291
------------
44,995,509
------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION--28.6%
5.370% 09/03/96(DAGGER) ..................... 10,000 10,000,000
5.410% 09/03/96(DAGGER) ..................... 10,000 9,994,465
5.465% 09/03/96(DAGGER) ..................... 10,000 9,999,787
5.348% 09/06/96(DAGGER) ..................... 20,000 19,992,305
5.337% 09/17/96(DAGGER) ..................... 20,000 19,990,167
5.310% 10/18/96 ............................. 15,000 14,996,237
5.320% 11/21/96(DAGGER) ..................... 25,000 24,992,910
5.270% 11/26/96 ............................. 20,000 19,748,211
5.530% 01/10/97 ............................. 15,000 14,698,154
5.240% 01/15/97 ............................. 15,000 14,703,067
------------
159,115,303
------------
STUDENT LOAN MARKETING ASSOCIATION(DAGGER)--9.0%
5.400% 09/03/96 ............................. 9,000 8,998,786
5.410% 09/03/96 ............................. 5,000 5,000,000
5.420% 09/03/96 ............................. 5,000 4,999,414
5.460% 09/03/96 ............................. 15,000 14,996,128
5.585% 09/03/96 ............................. 3,850 3,851,055
5.610% 09/03/96 ............................. 12,100 12,105,327
------------
49,950,710
------------
TOTAL AGENCY OBLIGATIONS
(Cost $299,036,901) ..................... 299,036,901
------------
PAR
(000) VALUE
------- ------------
U. S. TREASURY OBLIGATIONS--7.2%
U.S. TREASURY NOTES--7.2%
6.875% 02/28/97 ...................... $20,000 $ 20,159,607
6.875% 03/31/97 ...................... 10,000 10,075,608
6.500% 04/30/97 ...................... 10,000 10,050,993
------------
TOTAL U. S. TREASURY
OBLIGATIONS
(Cost $40,286,208) ............... 40,286,208
------------
REPURCHASE AGREEMENTS--38.5%
Aubrey G. Lanston & Co. Inc.
5.200% 09/03/96 ...................... 92,000 92,000,000
(Agreement dated 08/30/96 to be
repurchased at $92,053,156,
collateralized by $44,562,500
U.S. Treasury Bond 6.25% due
08/15/23 and collateralized by
$47,439,700 U.S. Treasury
Notes 7.75% to 8.50% due
12/31/99 to 11/15/00. Market
value of collateral is $92,002,200.)
Donaldson, Lufkin & Jenrette
5.310% 09/03/96 ...................... 102,200 102,200,000
(Agreement dated 08/30/96 to be
repurchased at $102,260,298,
collateralized by $110,810,000
Federal Home Loan Mortgage
Corp. due 08/15/26
Market value of collateral is
$105,270,608.)
Morgan Stanley & Co.
5.270% 09/20/96 ...................... 20,000 20,000,000
(Agreement dated 08/22/96 to be
repurchased at 20,084,906,
collateralized by $25,860,948
Federal Home Loan Mortgage
Corp. 0% to 8.00% due 12/01/09 to
06/15/35. Market value of collateral
is $20,405,022.)
------------
TOTAL REPURCHASE AGREEMENTS
(Cost $214,200,000) .............. 214,200,000
------------
See Accompanying Notes to Financial Statements.
3
<PAGE>
BRADFORD GOVERNMENT OBLIGATIONS MONEY MARKET SHARES
THE RBB FUND, INC.
GOVERNMENT OBLIGATIONS MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS (CONCLUDED)
AUGUST 31, 1996
VALUE
------------
TOTAL INVESTMENTS AT VALUE--99.5%
(COST $553,523,109*).................. $553,523,109
OTHER ASSETS IN EXCESS
OF LIABILITIES--0.5%.................. 3,023,896
------------
NET ASSETS (Applicable to
192,603,016 Bedford shares,
57,191,735 Bradford shares,
306,763,729 Janney Montgomery
Scott shares and 800 other
shares)--100%......................... $556,547,005
============
NET ASSET VALUE, offering and
redemption price per share
($556,547,005 (DIVIDE) 556,559,280)... $1.00
=====
* Also cost for Federal income tax purposes.
(DAGGER) Variable Rate Obligations -- The interest rate is the rate as of August
31, 1996 and the maturity date shown is the longer of the next interest
readjustment date or the date the principal amount shown can be
recovered through demand.
See Accompanying Notes to Financial Statements.
4
<PAGE>
BRADFORD GOVERNMENT OBLIGATIONS MONEY MARKET SHARES
THE RBB FUND, INC.
GOVERNMENT OBLIGATIONS MONEY MARKET PORTFOLIO
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED AUGUST 31, 1996
Investment Income
Interest .................................................... $30,707,263
-----------
Expenses
Investment advisory fees .................................... 2,310,433
Distribution fees ........................................... 3,236,194
Directors' fees ............................................. 10,037
Custodian fees .............................................. 102,930
Transfer agent fees ......................................... 610,887
Legal fees .................................................. 20,228
Audit fees .................................................. 16,044
Registration fees ........................................... 134,940
Insurance expense ........................................... 11,658
Printing fees ............................................... 107,852
Miscellaneous ............................................... 499
-----------
6,561,702
Less fees waived ............................................ (671,811)
Less expense reimbursement by advisor ....................... (406,954)
-----------
Total expenses .......................................... 5,482,937
-----------
Net investment income .......................................... 25,224,326
-----------
Realized loss on investments ................................... (10,995)
-----------
Net increase in net assets resulting from operations ........... $25,213,331
===========
See Accompanying Notes to Financial Statements.
5
<PAGE>
BRADFORD GOVERNMENT OBLIGATIONS MONEY MARKET SHARES
THE RBB FUND, INC.
GOVERNMENT OBLIGATIONS MONEY MARKET PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS
FOR THE FOR THE
YEAR ENDED YEAR ENDED
AUGUST 31, 1996 AUGUST 31, 1995
--------------- ---------------
Increase (decrease)
in net assets:
Operations:
Net investment income ..................... $ 25,224,326 $ 12,855,095
Net gain (loss)
on investments .......................... (10,995) 41,241
------------ ------------
Net increase in net assets
resulting from operations ............... 25,213,331 12,896,336
------------ ------------
Distributions to shareholders:
Dividends to shareholders from
net investment income:
Bedford shares .......................... (8,829,111) (7,551,189)
Bradford Shares ......................... (2,208,959) (2,071,772)
Janney Montgomery Scott shares .......... (14,186,256) (3,232,134)
Dividends to shareholders from net
realized short-term gains:
Bedford shares .......................... (12,697) --
Bradford shares ......................... (3,154) --
Janney Montgomery Scott shares .......... (18,204) --
------------ ------------
Total distributions
to shareholders ..................... (25,258,381) (12,855,095)
------------ ------------
Net capital share transactions .............. 44,099,699 306,300,108
------------ ------------
Total increase in net assets ................ 44,054,649 306,341,349
Net Assets:
Beginning of year ......................... 512,492,356 206,151,007
------------ ------------
End of year ............................... $556,547,005 $512,492,356
============ ============
See Accompanying Notes to Financial Statements.
6
<PAGE>
BRADFORD GOVERNMENT OBLIGATIONS MONEY MARKET SHARES
THE RBB FUND, INC.
GOVERNMENT OBLIGATIONS MONEY MARKET PORTFOLIO
FINANCIAL HIGHLIGHTS (c)
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
FOR THE PERIOD
JANUARY 10, 1992
FOR THE FOR THE FOR THE FOR THE (COMMENCEMENT OF
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED OPERATIONS) TO
AUGUST 31, 1996 AUGUST 31, 1995 AUGUST 31, 1994 AUGUST 31, 1993 AUGUST 31, 1992
--------------- --------------- --------------- --------------- ---------------
<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 ................... 0.0458 0.0475 0.0270 0.0231 0.0208
Net gains on securities (both realized
and unrealized) ....................... -- -- -- -- 0.0009
-------- -------- -------- -------- --------
Total from investment operations .......... 0.0458 0.0475 0.0270 0.0231 0.0217
-------- -------- -------- -------- --------
Less distributions
Dividends (from net investment income) .. (0.0458) (0.0475) (0.0270) (0.0231) (0.0208)
Distributions (from capital gains) -- -- -- -- (0.0009)
-------- -------- -------- -------- --------
Total distributions ................... (0.0458) (0.0475) (0.0270) (0.0231) (0.0217)
-------- -------- -------- -------- --------
Net asset value, end of period ............ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ========
Total Return .............................. 4.68% 4.86% 2.73% 2.33% 3.42%(b)
Ratios /Supplemental Data
Net assets, end of period ............... $ 57,190 $ 46,509 $ 39,732 $ 50,523 $ 42,477
Ratios of expenses to average
net assets ............................ .975%(a) .975%(a) .975%(a) .975%(a) .975%(a)(b)
Ratios of net investment income
to average net assets ................. 4.58% 4.75% 2.70% 2.31% 3.23%(b)
<FN>
(a) Without the waiver of advisory fees and without the reimbursement of
certain operating expenses, the ratios of expenses to average net assets
would have been 1.10%, 1.13%, 1.18% and 1.18% for the years ended August
31, 1996, 1995, 1994 and 1993, respectively and 1.15% annualized for the
period end August 31, 1992.
(b) Annualized.
(c) Financial Highlights relate soley to the Bradford Class of shares within
the portfolio.
</FN>
</TABLE>
See Accompanying Notes to Financial Statements.
7
<PAGE>
BRADFORD GOVERNMENT OBLIGATIONS MONEY MARKET SHARES
THE RBB FUND, INC.
GOVERNMENT OBLIGATIONS MONEY MARKET PORTFOLIO
NOTES TO FINANCIAL STATEMENTS
AUGUST 31, 1996
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 12.35 billion shares are currently classified into sixty-six classes. Each
class represents an interest in one of seventeen investment portfolios of the
Fund. 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 Family, the n/i Family and the Bradford Family.
The Bradford Government Obligations Money Market Shares represents an interest
in the Government Obligations Money Market Portfolio, which is covered by this
report.
A) SECURITY VALUATION -- Portfolio securities are valued under the
amortized cost method, which approximates current market value. Under this
method, securities are valued at cost when purchased and thereafter a
constant proportionate amortization of any discount or premium is recorded
until maturity of the security. Regular review and monitoring of the
valuation is performed in an attempt to avoid dilution or other unfair
results to shareholders. The Portfolio seeks to maintain net asset value
per share at $1.00.
B) SECURITY TRANSACTIONS AND INVESTMENT INCOME -- Security
transactions are accounted for on the trade date. The cost of investments
sold is determined by use of the specific identification method for both
financial reporting and income tax purposes. Interest income is recorded on
the accrual basis. Certain expenses, principally distribution, transfer
agency and printing, are class specific expenses and vary by class.
Expenses not directly attributable to a specific portfolio or class are
allocated based on relative net assets of each portfolio and class,
respectively.
C) DISTRIBUTIONS TO SHAREHOLDERS -- Dividends from net investment
income are declared daily and paid monthly. Any net realized capital gains
are distributed at least annually. Income distributions and capital gain
distributions are determined in accordance with income tax regulations
which may differ from generally accepted accounting principles.
D) FEDERAL INCOME TAXES -- No provision is made for Federal taxes
as it is the Fund's intention to have the portfolio continue to qualify for
and elect the tax treatment applicable to regulated investment companies
under the Internal Revenue Code and make the requisite distributions to its
shareholders which will be sufficient to relieve it from Federal income and
excise taxes.
E) REPURCHASE AGREEMENTS -- Money market instruments may be
purchased subject to the seller's agreement to repurchase them at an agreed
upon date and price. The seller will be required on a daily basis to
maintain the value of the securities subject to the agreement at not less
than the repurchase price. The agreements are conditioned upon the
collateral being deposited under the Federal Reserve book-entry system or
with the Fund's custodian or a third party sub-custodian.
F) USE OF ESTIMATES -- The preparation of financial statements in
conformity with generally accepted accounting principles requires
management to make estimates and assumptions that affect the reported
amounts of assets and liabilities 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.
8
<PAGE>
BRADFORD GOVERNMENT OBLIGATIONS MONEY MARKET SHARES
THE RBB FUND, INC.
GOVERNMENT OBLIGATIONS MONEY MARKET PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
AUGUST 31, 1996
NOTE 2. TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES
Pursuant to Investment Advisory Agreements, PNC Institutional Management
Corporation ("PIMC"), a wholly owned subsidiary of PNC Asset Management Group,
Inc., which is in turn a wholly owned subsidiary of PNC Bank, National
Association ("PNC Bank"), serves as investment advisor for the portfolio
described herein. PNC Bank serves as the sub-advisor for the Government
Obligations Money Market Portfolio.
For its advisory services, PIMC is entitled to receive the following fees,
computed daily and payable monthly based on the portfolio's average daily net
assets:
.45% of first $250 million of net assets;
.40% of next $250 million of net assets;
.35% of net assets in excess of $500 million
PIMC may, at its discretion, voluntarily waive all or any portion of its
advisory fee for this portfolio. For each class of shares within this portfolio,
the net advisory fee charged to each class is the same on a relative basis. For
the year ended August 31, 1996, advisory fees and waivers for the investment
portfolio were as follows:
GROSS NET
ADVISORY ADVISORY
FEE WAIVER FEE
------------ ------------ ------------
$2,310,433 $(671,811) $1,638,622
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. For the
year ended August 31, 1996, transfer agency fees for each class of shares within
the investment portfolio were as follows:
TRANSFER AGENCY
FEE
---------------
Bedford Class $ 81,107
Bradford Class 11,935
Janney Montgomery Scott Class 517,845
---------
Total $610,887
=========
The Fund, on behalf of each class of shares within the investment
portfolio, has adopted Distribution Plans pursuant to Rule 12b-1 under the
Investment Company Act of 1940, as amended, and has entered into Distribution
Contracts with Counsellors Securities Inc. ("Counsellors"), which provide for
each class to make monthly payments, based on average net assets, to Counsellors
of up to .65% on an annualized basis for the Bedford, Janney Montgomery Scott
and Bradford Classes and up to .20% on an annualized basis for the Sansom Street
Class.
9
<PAGE>
BRADFORD GOVERNMENT OBLIGATIONS MONEY MARKET SHARES
THE RBB FUND, INC.
GOVERNMENT OBLIGATIONS MONEY MARKET PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
AUGUST 31, 1996
NOTE 2. TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES (CONTINUED)
For the year ended August 31, 1996, distribution fees for each class were
as follows:
DISTRIBUTION
FEE
------------
Bedford Class $1,091,847
Bradford Class 275,120
Janney Montgomery Scott Class 1,869,227
----------
Total $3,236,194
==========
The Fund has entered into service agreements with banks affiliated with PNC
Bank who render support services to customers who are the beneficial owners of
the Sansom Street Class in consideration of the payment of .10% of the daily net
asset value of such shares. No such payments were necessary for the year ended
August 31, 1996.
NOTE 3. CAPITAL SHARES
Transactions in capital shares (at $1 per capital share) for each year were
as follows:
FOR THE FOR THE
YEAR ENDED YEAR ENDED
AUGUST 31, 1996 AUGUST 31, 1995
--------------- ---------------
VALUE VALUE
--------------- ---------------
Shares sold:
Bedford Class $ 663,889,198 $ 461,728,190
Bradford Class 180,761,217 192,414,935
Janney Montgomery Scott Class 1,160,250,876 533,143,649
Shares issued in
reinvestment of dividends:
Bedford Class 8,793,104 7,147,384
Bradford Class 2,158,629 2,029,050
Janney Montgomery Scott Class 14,080,097 3,065,158
Shares repurchased:
Bedford Class (643,470,937) (471,908,601)
Bradford Class (172,234,746) (187,671,346)
Janney Montgomery Scott Class (1,170,127,739) (233,648,311)
------------- -------------
Net increase $ 44,099,699 $ 306,300,108
------------- -------------
Bradford Shares authorized 500,000,000 500,000,000
============= =============
10
<PAGE>
BRADFORD GOVERNMENT OBLIGATIONS MONEY MARKET SHARES
THE RBB FUND, INC.
GOVERNMENT OBLIGATIONS MONEY MARKET PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
AUGUST 31, 1996
NOTE 4. NET ASSETS
At August 31, 1996, net assets consisted of the following:
Capital paid-in:
Bedford Class $ 192,603,016
Bradford Class 57,191,735
Janney Montgomery Scott Class 306,763,729
Other Classes 800
Accumulated net realized loss
on investments:
Bedford Class (4,248)
Bradford Class (1,261)
Janney Montgomery Scott Class (6,766)
-------------
$ 556,547,005
=============
11
<PAGE>
BRADFORD GOVERNMENT OBLIGATIONS MONEY MARKET SHARES
THE RBB FUND, INC.
GOVERNMENT OBLIGATIONS MONEY MARKET PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
AUGUST 31, 1996
NOTE 5. CAPITAL LOSS CARRYOVERS
At August 31, 1996, $12,275 of capital loss carryovers were available to
offset future realized gains which expire in 2004.
NOTE 6. OTHER FINANCIAL HIGHLIGHTS
The Fund currently offers two other class of shares representing an
interest in the Government Obligations Money Market Portfolio: Bedford and
Janney Montgomery Scott. Each class is marketed to different types of investors.
The financial highlights are as follows:
THE BEDFORD FAMILY
<TABLE>
<CAPTION>
GOVERNMENT OBLIGATIONS MONEY MARKET PORTFOLIO
-----------------------------------------------------------------------------------
FOR THE FOR THE FOR THE FOR THE FOR THE
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
AUGUST 31, 1996 AUGUST 31, 1995 AUGUST 31, 1994 AUGUST 31, 1993 AUGUST 31, 1992
--------------- --------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C> <C>
Net asset value,
beginning of year .................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------- --------
Income from investment operations:
Net investment income. ............. 0.0458 0.0475 0.027 0.0231 0.0375
Net gains on securities (both
realized and unrealized) .......... -- -- -- -- 0.0009
-------- -------- -------- -------- --------
Total from investment
operations ..................... 0.0458 0.0475 0.027 0.0231 0.0384
-------- -------- -------- -------- --------
Less distributions
Dividends (from net investment
income) ........................... (0.0458) (0.0475) (0.0270) (0.0231) (0.0375)
Distributions (from capital gains) . -- -- -- -- (0.0009)
-------- -------- -------- -------- --------
Total distributions ............. (0.0458) (0.0475) (0.0270) (0.0231) (0.0384)
-------- -------- -------- -------- --------
Net asset value,
end of year ........................ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ========
Total Return ......................... 4.68% 4.86% 2.73% 2.33% 3.91%
Ratios /Supplemental Data
Net assets, end of year (000)....... $192,599 $163,398 $166,418 $213,741 $225,101
Ratios of expenses to average
net assets ........................ .975%(a) .975%(a) .975%(a) .975%(a) .975%(a)
Ratios of net investment income
to average net assets ............. 4.58% 4.75% 2.70% 2.31% 3.75%
<FN>
(a) Without the waiver of advisory fees and without the reimbursement of
certain operating expenses, the ratios of expenses to average net assets
for the Government Obligations Money Market Portfolio would have been
1.10%, 1.13%, 1.17%, 1.18%, and 1.12% for the years ended and 1992,
respectively.
</FN>
</TABLE>
12
<PAGE>
BRADFORD GOVERNMENT OBLIGATIONS MONEY MARKET SHARES
THE RBB FUND, INC.
GOVERNMENT OBLIGATIONS MONEY MARKET PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (CONCLUDED)
AUGUST 31, 1996
NOTE 6. OTHER FINANCIAL HIGHLIGHTS (CONTINUED)
THE JANNEY MONTGOMERY SCOTT FAMILY
GOVERNMENT OBLIGATIONS
MONEY MARKET PORTFOLIO
---------------------------------
FOR THE PERIOD
JUNE 12, 1995
FOR THE (COMMENCEMENT OF
YEAR ENDED OPERATIONS) TO
AUGUST 31, 1996 AUGUST 31, 1995
--------------- ----------------
Net asset value,
beginning of period .................. $ 1.00 $ 1.00
-------- --------
Income from investment operations:
Net investment income ................ 0.0456 0.0109
-------- --------
Total from investment
operations ....................... 0.0456 0.0109
-------- --------
Less distributions
Dividends (from net
investment income) ................. (0.0456) (0.0109)
-------- --------
Total distributions ................ (0.0456) (0.0109)
-------- --------
Net asset value, end of period .......... $ 1.00 $ 1.00
======== ========
Total Return ........................... 4.66% 5.03%(b)
Ratios /Supplemental Data
Net assets, end of period (000) ...... $306,757 $302,585
Ratios of expenses to average
net assets ......................... 1.00%(a) 1.00%(a)(b)
Ratios of net investment income
to average net assets .............. 4.56% 4.91%(b)
(a) Without the waiver of advisory fees and without the reimbursement of
certain operating expenses, the ratios of expenses to average net assets
for the Government Obligations Money Market Portfolio would have been 1.25%
for the year ended August 31, 1996 and 1.28% annualized for the period
ended August 31, 1995.
(b) Annualized.
13
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