[GRAPHIC OMITTED]
BOSTON PARTNERS ASSET MANAGEMENT, L.P.
--------------------------------------
BOSTON PARTNERS
LARGE CAP
VALUE FUND
Semi-Annual Report
February 28, 1997
<PAGE>
BOSTON PARTNERS LARGE CAP VALUE FUND
PORTFOLIO MANAGER'S LETTER
March 17, 1997
Dear Shareholders:
We are pleased to provide the inaugural report on the results of the Boston
Partners Large Cap Value Fund for the period ended February 28, 1997. Our
objective in each letter will be to update you on the results of the Fund, the
market, and the economy over the past period and to present our insights as to
what you can expect in the future.
At February 28, 1997, the Fund's Net Asset Value (NAV) was $10.62 compared
to $10.00 at inception on January 2, 1997. Therefore, the portfolio's total
return was 6.20%, compared with 7.08% for the S&P 500 Index.
PORTFOLIO REVIEW
The first two months of 1997 saw the equities markets move significantly
higher, although a pullback in the latter part of February tempered overall
gains. The sharp advance in stock prices was dominated by large capitalization
stocks, as the large capitalization indices such as the S&P 500 and the Dow
Jones Industrial Average soundly outperformed most mid-cap and small-cap
indices. Even among large capitalization stocks the advance had been very
narrow, creating a difficult environment for active managers to outperform the
S&P 500. Stocks characterized by high price to earnings and price to book
ratios, like Coca-Cola, Unilever N.V. and Nationsbank led the surge for the S&P
500. These overpriced stocks did not meet our stock selection criteria, and
therefore the Fund lagged the market's advance.
The Financial Services sector has been a strong performing sector as
investors have responded to strong earnings reports, attractive valuations, and
further consolidation in the banking, insurance and brokerage industries. The
Fund has been close to its 25% maximum position in the Financial Services
sector, which has had a positive effect on performance. Among the better
performing stocks in this sector were Student Loan Marketing Association,
Republic New York Corporation, and H.F. Ahmanson.
Also making a very positive contribution to the Fund's performance in
January and February were the tobacco stocks, as investors focused less on the
legal and regulatory risks facing these companies and more on their inexpensive
valuations and very strong earnings and cash flow dynamics. The shares of Philip
Morris (which is among the largest holdings in the Fund) increased by 19.69%
during the period.
CURRENT OUTLOOK
We believe that by most valuation measures, the stock market looks
expensive. According to recent history, though, over-valuation alone has rarely
triggered a bear market. Declining markets are usually triggered by events such
as rising interest rates, deteriorating profits, etc., in conjunction with
overextended prices.
The "bottom-up" consensus earnings estimate for the S&P 500 currently calls
for a 14% increase in 1997 earnings versus 1996. We believe there is a strong
probability that these estimates are too high. Therefore, we expect to see an
increasing number of companies that report disappointing results in 1997. The
recent pattern of such reports has seen the market inflict a serious penalty on
the stocks of companies reporting earnings shortfalls.
<PAGE>
STRATEGY
Our strategy for the coming months includes three tactics:
(BULLET) Avoid overpriced stocks, regardless of how strong their
fundamentals look;
(BULLET) Avoid stocks with overly optimistic earnings estimates for
1997
(BULLET) Focus on stocks selling at low multiples of earnings, book
value, sales, etc., whose earnings prospects are likely to
be enhanced by: 1. Share Repurchases 2. Debt Paydown 3.
Acquisitions and Divestitures 4. Restructuring
Best Regards,
Mr. Mark Donovan, CFA Ms. Wayne Steele Sharp, CFA
Principal and Portfolio Manager Principal and Portfolio Manager
Boston Partners Asset Management, L.P. Boston Partners Asset Management, L.P.
2
<PAGE>
BOSTON PARTNERS LARGE CAP VALUE FUND
OF THE RBB FUND, INC.
PORTFOLIO OF INVESTMENTS
FEBRUARY 28, 1997
(UNAUDITED)
NUMBER
OF SHARES VALUE
--------- ----------
COMMON STOCK--87.9%
AEROSPACE/DEFENSE--2.8%
Litton Industries, Inc.* .................. 1,780 $ 76,540
Lockheed Martin Corp. ..................... 770 68,145
Northrop Grumman Corp. .................... 925 67,178
----------
211,863
----------
AIR TRANSPORT--1.3%
AMR Corp.* .................................... 830 65,259
Gulfstream Aerospace Corp.* ................... 1,570 34,147
----------
99,406
----------
BANKS & SAVINGS & LOANS--3.1%
Bank of Boston Corp. .......................... 420 31,657
Dime Bancorp, Inc.* .......................... 2,200 38,500
First American Corp. .......................... 320 20,520
Republic New York Corp. ....................... 1,570 145,814
----------
236,491
----------
BUSINESS SERVICES--0.5%
Dun & Bradstreet Corp. ........................ 1,565 38,342
----------
CHEMICALS--1.1%
Agrium, Inc. .................................. 3,880 53,350
Wellman, Inc. ................................. 1,660 29,050
----------
82,400
----------
COMPUTERS--4.3%
Compaq Computer Corp.* ........................ 840 66,570
Komag, Inc.* .................................. 1,000 30,000
Quantum Corp.* ................................ 2,000 79,500
Tandem Computers, Inc.* ....................... 6,400 80,000
Wang Labs, Inc.* .............................. 3,230 70,858
----------
326,928
----------
CONSUMER NON-DURABLES--0.8%
Dial Corp. .................................... 3,760 56,400
----------
CONSUMER PRODUCTS & SERVICES--2.3%
Eastman Kodak Co. ............................. 1,200 107,550
Rite Aid Corp. ................................ 1,630 68,664
----------
176,214
----------
NUMBER
OF SHARES VALUE
--------- ----------
DIVERSIFIED--2.0%
American Brands, Inc. ......................... 630 $ 33,154
Canadian Pacific Ltd. ......................... 1,260 31,185
Cognizant Corp. ............................... 1,365 47,604
Kansas City Southern
Industries, Inc. ............................ 730 38,325
----------
150,268
----------
ELECTRONICS--2.2%
Cirrus Logic Corp.* ........................... 2,200 29,837
National Semiconductor Corp.* ................. 1,680 43,890
VLSI Technology, Inc.* ........................ 4,900 91,569
----------
165,296
----------
ENERGY--2.8%
Calpine Corp.* ................................ 1,780 32,707
CMS Energy Corp. .............................. 1,675 54,856
ENSERCH Corp. ................................. 1,000 21,000
Entergy Corp. ................................. 2,520 66,465
Illinova Corp. ................................ 1,460 36,500
----------
211,528
----------
FINANCIAL SERVICES--9.2%
Ahmanson, (H.F.) & Co. ........................ 950 39,069
AMBAC, Inc. ................................... 528 35,244
Fannie Mae .................................... 1,565 62,600
H & R Block, Inc. ............................. 1,995 58,603
Lehman Brothers Holdings, Inc. ................ 4,510 151,649
St. Paul Companies, Inc. ...................... 500 33,750
Student Loan Marketing
Association ................................. 2,950 312,331
----------
693,246
----------
FOOD & BEVERAGE--0.6%
Chiquita Brands International, Inc. ........... 3,460 46,710
----------
HEALTH CARE--2.8%
Lincare Holdings, Inc.* ....................... 1,675 72,234
Nationwide Health Properties, Inc. ........... 1,250 27,500
Trigon Healthcare, Inc.* ...................... 1,700 30,387
Wellpoint Health Networks, Inc.* .............. 1,885 80,819
----------
210,940
----------
The accompanying notes are an integral part of the financial statements.
3
<PAGE>
BOSTON PARTNERS LARGE CAP VALUE FUND
OF THE RBB FUND, INC.
PORTFOLIO OF INVESTMENTS (CONTINUED)
FEBRUARY 28, 1997
(UNAUDITED)
NUMBER
OF SHARES VALUE
--------- ----------
INSURANCE--17.1%
Ace, Ltd. ................................... 1,565 $ 101,725
Aetna, Inc. ................................. 940 77,903
Allmerica Financial Corp. ................... 1,980 74,002
CIGNA Corp. ................................. 500 76,438
Everest Re Holdings, Inc. ................... 2,000 63,000
GCR Holdings, Ltd. .......................... 1,560 37,245
General Re Corp. ............................ 400 67,850
Horace Mann Educators Corp. ................. 940 40,303
IPC Holdings Ltd. ........................... 520 12,740
ITT Hartford Group, Inc. .................... 630 47,250
Loews Corp. ................................. 3,250 331,906
NAC Re Corp. ................................ 840 30,870
PartnerRe Ltd. .............................. 1,575 51,975
Travelers Group, Inc. ....................... 3,980 213,428
Western National Corp. ...................... 2,730 62,790
----------
1,289,425
----------
METALS & MINING--2.3%
Allegheny Teledyne, Inc. .................... 4,640 118,320
Inco, Ltd. .................................. 1,600 56,200
----------
174,520
----------
OIL SERVICES--7.6%
British Petroleum Co. PLC ................... 725 95,972
Elf Aquitaine SA ............................ 1,570 75,360
Exxon Corp. ................................. 735 73,408
Mobil Corp. ................................. 733 89,976
Oryx Energy Co.* ............................ 2,800 56,000
Repsol SA ................................... 2,410 91,580
Tosco Corp. ................................. 2,205 61,464
Ultramar Diamond Shamrock Corp. ............. 945 28,823
----------
572,583
----------
PAPER & FOREST PRODUCTS--2.4%
Boise Cascade Corp. ......................... 1,349 44,348
Caraustar Industries, Inc. .................. 1,147 34,123
Champion International Corp. ................ 1,459 64,378
Union Camp Corp. ............................ 730 35,223
----------
178,072
----------
Number
of Shares Value
--------- ----------
PHARMACEUTICALS--2.9%
Bristol-Meyers Squibb Co. ..................... 525 $ 68,513
Glaxo Wellcome PLC ............................ 2,200 74,525
Schering-Plough Corp. ......................... 965 73,943
----------
216,981
----------
REAL ESTATE--3.3%
American General Hospitality Corp. ............ 1,035 28,333
Associated Estates Realty Corp. ............... 530 12,455
Camden Property Trust ......................... 960 26,280
Highwoods Properties, Inc. .................... 210 7,245
Home Properties of New York, Inc. ............. 315 7,718
Liberty Property Trust ........................ 750 17,812
Mid-America Apartment
Communities, Inc. ........................... 1,220 35,380
Oasis Residential, Inc. ....................... 430 9,944
Prentiss Property Trust ....................... 740 19,980
RFS Hotel Investors, Inc. ..................... 2,040 34,680
Summit Properties, Inc. ....................... 840 17,010
Wellsford Residential Property
Trust ....................................... 1,140 33,345
----------
250,182
----------
RETAIL TRADE--0.9%
Wal-Mart Stores, Inc. ......................... 2,700 71,213
----------
TELECOMMUNICATIONS--5.5%
BHC Communications, Inc.* ..................... 310 31,620
Chris-Craft Industries, Inc.* ................. 1,680 69,090
COMSAT Corp. .................................. 2,090 54,863
Sprint Corp. .................................. 3,780 171,990
Telecomunicacoes Brasileiras SA ............... 520 50,440
Telefonos de Mexico SA Class L ................ 1,000 38,875
----------
416,878
----------
TELECOMMUNICATIONS & EQUIPMENT--2.8%
Alcatel Alsthom ADR ........................... 10,120 207,460
----------
TEXTILES & APPAREL--3.0%
Gap, Inc. ..................................... 1,250 41,250
Harcourt General, Inc. ........................ 1,700 80,093
Mercantile Stores Co., Inc. ................... 2,275 109,200
----------
230,543
----------
The accompanying notes are an integral part of the financial statements.
4
<PAGE>
BOSTON PARTNERS LARGE CAP VALUE FUND
OF THE RBB FUND, INC.
PORTFOLIO OF INVESTMENTS (CONCLUDED)
February 28, 1997
(UNAUDITED)
NUMBER
OF SHARES VALUE
--------- ----------
TOBACCO--3.8%
Philip Morris Companies, Inc. ............. 2,100 $ 283,763
----------
TOYS--0.5%
Hasbro, Inc. .............................. 835 35,696
----------
TOTAL COMMON STOCK
(Cost $6,290,429) ....................... 6,633,348
----------
PAR
(000)
-------
REPURCHASE AGREEMENT--2.6%
PNC Capital Markets
(Agreement dated 02/28/97 to be
repurchased at $200,085,
collateralized by $195,000 U.S.
Treasury Note 7.375% due
11/15/97. Market value of
collateral is $202,096)
5.100% 03/03/97 ......................... 200 200,000
----------
TOTAL REPURCHASE AGREEMENT
(Cost $200,000) ....................... 200,000
----------
SHORT-TERM INVESTMENT--3.5%
Smith Barney Cash Reserve
5.06% 03/03/97 .......................... 268 267,717
----------
TOTAL SHORT-TERM INVESTMENT
(Cost $267,717) ....................... 267,717
----------
TOTAL INVESTMENTS -- 94.0%
(Cost $6,758,146) ......................... $7,101,065
----------
OTHER ASSETS IN EXCESS OF
LIABILITIES -- 6.0% ....................... 449,350
----------
NET ASSETS -- 100.0% ......................... $7,550,415
==========
- -------------
*Non-income producing
The accompanying notes are an integral part of the financial statements.
5
<PAGE>
BOSTON PARTNERS LARGE CAP VALUE FUND
OF THE RBB FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES
FEBRUARY 28, 1997
(UNAUDITED)
ASSETS
Investments, at value (cost - $6,758,146) ................... $7,101,065
Receivable for Fund shares sold ............................. 500,000
Receivable for investments sold ............................. 85,753
Receivable from investment adviser .......................... 12,922
Dividends and interest receivable ........................... 11,615
Prepaid expenses and other assets ........................... 2,765
----------
Total assets .............................................. 7,714,120
----------
LIABILITIES
Payable for investments purchased ............................ 147,097
Accrued expenses and other liabilities ....................... 16,608
----------
Total liabilities .......................................... 163,705
----------
NET ASSETS
Capital stock, $0.001 par value ............................ 711
Paid-in capital ............................................ 7,149,641
Undistributed net investment income ........................ 14,023
Accumulated net realized gain from investments ............. 43,120
Net realized appreciation on investments ................... 342,920
----------
Net assets ............................................... $7,550,415
==========
INSTITUTIONAL CLASS
Net assets ................................................... $7,444,130
Shares outstanding ........................................... 700,715
----------
Net asset value, offering and redemption price per share ..... $ 10.62
==========
INVESTOR CLASS
Net assets ....................................................... $ 106,285
Shares outstanding ............................................... 10,006
----------
Net asset value, offering and redemption price per share ......... $ 10.62
==========
The accompanying notes are an integral part of the financial statements.
6
<PAGE>
BOSTON PARTNERS LARGE CAP VALUE FUND
OF THE RBB FUND, INC.
STATEMENT OF OPERATIONS
FOR THE PERIOD JANUARY 2, 1997* THROUGH FEBRUARY 28, 1997
(UNAUDITED)
INVESTMENT INCOME
Dividends .................................................... $ 18,171
Interest ..................................................... 5,024
--------
23,195
--------
EXPENSES
Advisory fees ................................................. 6,866
Administration fees ........................................... 13,873
Federal and state registration fees ........................... 4,576
Transfer agent fees and expenses .............................. 6,497
Custodian fees and expenses ................................... 3,548
Printing ...................................................... 2,148
Audit and legal fees .......................................... 461
Distribution fees ............................................. 17
Other ......................................................... 1,231
--------
Total expenses before waivers and reimbursements ............ 39,217
Less: waivers and reimbursements ............................ (30,045)
--------
Total expenses after waivers and reimbursements ............. 9,172
--------
Net investment income ......................................... 14,023
--------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS
Net realized gain from investments ........................... 43,120
Net change in unrealized appreciation on investments ......... 342,920
--------
Net realized and unrealized gain from investments ............ 386,040
--------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS ............ $400,063
========
- --------------
*Commencement of operations.
The accompanying notes are an integral part of the financial statements.
7
<PAGE>
BOSTON PARTNERS LARGE CAP VALUE FUND
OF THE RBB FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS
(UNAUDITED)
FOR THE PERIOD
JANUARY 2, 1997* THROUGH
FEBRUARY 28, 1997
------------------------
INCREASE IN NET ASSETS FROM
OPERATIONS
Net investment income ................................ $ 14,023
Net realized gain from investments ................... 43,120
Net change in unrealized appreciation on
investments ........................................ 342,920
----------
Net increase in net assets resulting from
operations ....................................... 400,063
----------
Increase in net assets derived from capital share
transactions ......................................... 7,150,352
----------
Total increase in net assets ........................ 7,550,415
NET ASSETS
Beginning of period .................................. --
----------
End of period ........................................ $7,550,415
==========
- --------------
*Commencement of operations.
The accompanying notes are an integral part of the financial statements.
8
<PAGE>
BOSTON PARTNERS LARGE CAP VALUE FUND
OF THE RBB FUND, INC.
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Contained below is per share operating performance data for each class of shares
outstanding, total investment return, ratios to average net assets and other
supplemental data for the period. This information has been derived from
information provided in the financial statements.
- --------------------------------------------------------------------------------
FOR THE PERIOD FOR THE PERIOD
JANUARY 2, 1997* JANUARY 16, 1997*
through through
FEBRUARY 28, 1997 FEBRUARY 28, 1997
----------------- -----------------
(UNAUDITED) (UNAUDITED)
INSTITUTIONAL INVESTOR
CLASS CLASS
----------------- -----------------
PER SHARE OPERATING PERFORMANCE**
Net asset value, beginning of period ..... $ 10.00 $ 10.20
------- -------
Net investment income(1) ................. 0.02 0.01
Net realized and unrealized
gain on investments(2) ................. 0.60 0.41
------- -------
Net increase in net assets
resulting from operations .............. 0.62 0.42
------- -------
Net asset value, end of period ........... $ 10.62 $ 10.62
======= =======
Total investment return(3) ............... 6.20% 4.12%
======= =======
RATIOS/SUPPLEMENTAL DATA
Net assets, end of period
(000's omitted) ........................ $ 7,444 $ 106
Ratio of expenses to average
net assets***(1)(4) .................... 1.00% 1.25%
Ratio of net investment income to
average net assets***(1) ............... 1.53% 1.59%
Portfolio turnover rate**** .............. 17.00% 17.00%
Average commission rate per share(5) ..... $0.0363 $0.0363
- -------------
* Commencement of operations.
** Calculated based on shares outstanding on the first and last day of
the respective periods, except for dividends and distributions, if
any, which are based on actual shares outstanding on the dates of
distributions.
*** Annualized.
**** Not annualized.
(1) Reflects waivers and reimbursements.
(2) The amount shown for a share outstanding throughout the period is not
in accord with the change in the aggregate gains and losses in
investments during the period because the timing of sales and
repurchases of Fund shares in relation to fluctuating net asset value
during the period.
(3) Total return is calculated assuming a purchase of shares on the first
day and a sale of shares on the last day of the period reported and
will include reinvestments of dividends and distributions, if any.
Total return is not annualized.
(4) Without the waiver of advisory, administration and transfer agent fees
and without the reimbursement of certain operating expenses, the ratio
of expenses to average net assets annualized for the period ended
February 28, 1997 would have been 3.59% and 3.51% for the
Institutional Class and the Investor Class, respectively.
(5) Computed by dividing the total amount of commissions paid by the total
number of shares purchased and sold during the period subject to such
commissions.
The accompanying notes are an integral part of the financial statements.
9
<PAGE>
BOSTON PARTNERS LARGE CAP VALUE FUND
OF THE RBB FUND, INC.
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
The RBB Fund, Inc. ("RBB") was incorporated under the laws of the State of
Maryland on February 29, 1988 and is registered under the Investment Company Act
of 1940, as amended, (the "Investment Company Act") as an open-end management
investment company. RBB is a "series fund", which is a mutual fund divided into
separate portfolios. The portfolio is treated as a separate entity for certain
matters under the Investment Company Act, and for other purposes, and a
shareholder of one portfolio is not deemed to be a shareholder of any other
portfolio. Currently RBB has nineteen investment portfolios, including the
Boston Partners Family, which consists of Boston Partners Large Cap Value Fund
(the "Fund"). As of the date hereof, the Fund offers three classes of shares,
two of which have commenced operations, the Institutional Class and the Investor
Class.
RBB has authorized capital of thirty billion shares of common stock of
which 13.48 billion are currently classified into seventy-seven classes. Each
class represents an interest in one of nineteen investment portfolios of RBB.
The classes have been grouped into sixteen separate "families", nine of which
have begun investment operations, including the Boston Partners Family, which
commenced investment operations on January 2, 1997.
PORTFOLIO VALUATION -- The net asset value of the Fund is determined as of
4:00 p.m. eastern time on each business day. The Fund's securities are valued at
the last reported sales price on the national securities exchange or national
securities market on which such shares are primarily traded. 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. Securities for which market quotations are not readily available are
valued at fair market value as determined in good faith by or under the
direction of RBB's Board of Directors. With the approval of the RBB's Board of
Directors, the Fund may use a pricing service, bank or broker-dealer experienced
in such matters to value its securities. The preparation of financial statements
requires the use of estimates by management. Short-term obligations with
maturities of 60 days or less are valued at amortized cost which approximates
market value. Expenses and fees, including investment advisory and
administration fees are accrued daily and taken into account for the purpose of
determining the net asset value of the Fund.
REPURCHASE AGREEMENTS -- The Fund has agreed to purchase securities from
financial institutions subject to the seller's agreement to repurchase them at
an agreed-upon time and price ("repurchase agreements"). The financial
institutions with whom the Fund enters into repurchase agreements are banks and
broker/dealers which Boston Partners Asset Management, L.P. (the Fund's
investment adviser or "Boston Partners") considers creditworthy pursuant to
criteria approved by RBB's Board of Directors. The seller under a repurchase
agreement will be required to maintain the value of the securities as
collateral, subject to the agreement at not less than the repurchase price plus
accrued interest. Boston Partners marks to market daily the value of the
collateral, and, if necessary, requires the seller to maintain additional
securities, to ensure that the value is not less than the repurchase price.
Default by or bankruptcy of the seller would, however, expose the Fund to
possible loss because of adverse market action or delays in connection with the
disposition of the underlying securities.
INVESTMENT TRANSACTIONS AND INVESTMENT INCOME -- 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 in determining realized gains and losses on investments. Interest
income is recorded on the accrual basis. Dividend income is recorded on the
ex-dividend date. The Fund's net investment income (other than distribution
fees) and unrealized and realized gains and losses are allocated daily to each
class of shares based upon the relative proportion of net assets of each class
at the beginning of the day (after adjusting for current capital share activity
of the respective classes).
10
<PAGE>
BOSTON PARTNERS LARGE CAP VALUE FUND
OF THE RBB FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(UNAUDITED)
DIVIDENDS AND DISTRIBUTIONS -- Dividends from net investment income, if
any, will be declared and paid at least annually to shareholders. Distributions
from net realized capital gains, if any, will be distributed at least annually.
Income and capital gain distributions are determined in accordance with U.S.
federal income tax regulations which may differ from generally accepted
accounting principles.
U.S. FEDERAL TAX STATUS -- No provision is made for U.S. federal income
taxes as it is the Fund's intention to qualify for and elect the tax treatment
applicable to regulated investment companies under Subchapter M of the Internal
Revenue Code of 1986, as amended, and make the requisite distributions to its
shareholders which will be sufficient to relieve it from U.S. federal income and
excise taxes.
2. TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES
Boston Partners Asset Management, L.P. serves as the Fund's investment
adviser. For its advisory services, Boston Partners is entitled to receive 0.75%
of the Fund's average daily net assets, computed daily and payable monthly.
The adviser has voluntarily agreed to limit the Fund's total operating
expenses for the current and the following fiscal year to the extent that such
expenses exceeded 1.00% of the Fund's average daily net assets. As necessary,
this limitation is effected in waivers of advisory fees and reimbursements of
expenses exceeding the advisory fee. For the period ended February 28, 1997,
investment advisory fees, waivers and reimbursements of expenses were as
follows:
GROSS NET
ADVISORY ADVISORY EXPENSE
FUND FEES WAIVER FEES REIMBURSEMENT
- ---- -------- -------- -------- -------------
Boston Partners Large Cap Value Fund $6,866 $(6,866) $ -- $12,922
The Fund will not pay Boston Partners at a later time for any amounts it
may waive or any amounts which Boston Partners has assumed.
PFPC Inc. ("PFPC"), an indirect wholly-owned subsidiary of PNC Bank,
National Association, serves as administrator for the Fund. For providing
administrative services PFPC is entitled to receive a monthly fee equal to an
annual rate of 0.125% of the Fund's average daily net assets, subject to a
minimum monthly fee of $6,250 per Fund.
For the period ended February 28, 1997, PFPC, at it's discretion,
voluntarily agreed to waive a portion of it's administration fees for the Fund.
For the period ended February 28, 1997, PFPC's administration fees and related
waivers were as follows:
<TABLE>
<CAPTION>
GROSS PFPC NET PFPC
FUND ADMINISTRATION FEES WAIVERS ADMINISTRATION FEES
- ---- ------------------- ---------- -------------------
<S> <C> <C> <C>
Boston Partners Large Cap Value Fund $12,500 $(6,250) $6,250
</TABLE>
In addition, PFPC serves as the Fund's transfer and disbursing agent. PFPC, at
it's discretion, voluntarily agreed to waive a portion of the transfer agency
fees for the Fund. For the period ended February 28, 1997, transfer agency fees
and waivers were as follows:
<TABLE>
<CAPTION>
GROSS TRANSFER NET TRANSFER
FUND AGENCY FEES WAIVERS AGENCY FEES
- ---- -------------- ---------- ------------------
<S> <C> <C> <C>
Boston Partners Large Cap Value Fund $6,497 $(3,000) $3,497
</TABLE>
11
<PAGE>
BOSTON PARTNERS LARGE CAP VALUE FUND
OF THE RBB FUND, INC.
NOTES TO FINANCIAL STATEMENTS (Concluded)
(UNAUDITED)
Counsellors Funds Services, Inc. ("Counsellors"), a wholly-owned subsidiary
of Warburg, Pincus Counsellors, Inc., provides certain distribution services to
the Fund. As compensation for such distribution services, Counsellors is
entitled to receive a monthly fee equal to an annual rate of 0.15% of the Fund's
average daily net assets.
For the period ended February 28, 1997 Counsellors has, at its discretion,
voluntarily agreed to waive a portion of the distribution fees for the Fund. For
the period ended February 28, 1997, distribution fees and related waivers were
as follows:
GROSS
DISTRIBUTION NET DISTRIBUTION
FUND FEES WAIVERS FEES
- ---- ------------ ---------- -----------------
Boston Partners Large Cap Value Fund $1,373 $(1,007) $366
These fees are computed daily and paid monthly.
3. INVESTMENT IN SECURITIES
For U.S. federal income tax purposes, the costs of securities owned at
February 28, 1997 was $6,758,146. Accordingly, the net unrealized
appreciation/(depreciation) of investments are as follows:
<TABLE>
<CAPTION>
Net Appreciation/
FUND Appreciation Depreciation (Depreciation)
- ---- ------------ ------------ ------------------
<S> <C> <C> <C>
Boston Partners Large Cap Value Fund $434,886 $(91,966) $342,920
</TABLE>
For the period ended February 28, 1997, aggregate purchases and sales of
investment securities (excluding short-term investments) were as follows:
Fund Purchases Sales
- ---- ------------ ------------
Boston Partners Large Cap Value Fund $7,370,137 $1,122,828
4. Capital Share Transactions
As of February 28, 1997 the Fund has 100,000,000 Institutional and
100,000,000 Investor shares of $0.001 par value common stock authorized.
Transactions in capital shares for the period January 2, 1997 (commencement
of operations) through February 28, 1997 were as follows:
Institutional Class Investor Class
------------------------- ------------------------
Shares Amount Shares Amount
-------- ---------- -------- ----------
Sales .................... 700,715 $7,045,432 10,006 $104,920
Repurchases .............. -- -- -- --
-------- ---------- ------ --------
Net increase ............. 700,715 $7,045,432 10,006 $104,920
======== ========== ====== ========
12
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INVESTMENT ADVISOR
Boston Partners Asset Management, L.P.
One Financial Center, 43rd Floor
Boston, MA 02111
ADMINISTRATOR
PFPC Inc.
400 Bellevue Parkway
Wilmington, DE 19809
DISTRIBUTOR
Counsellors Funds Services, Inc
466 Lexington Avenue
New York, NY 10017
CUSTODIAN
PNC Bank, N.A.
200 Stevens Drive
Lester, PA 19113
TRANSFER AGENT
PFPC Inc.
400 Bellevue Parkway
Wilmington, DE 19809
INDEPENDENT ACCOUNTANTS
Coopers & Lybrand, L.L.P.
2400 Eleven Penn Center
Philadelphia, PA 19103
COUNSEL
Drinker Biddle & Reath
1345 Chestnut Street
Philadelphia, PA 19107
The financial information included herein is taken from the records of the Fund
without examination by independent auditors who do not express an opinion
thereon.
This report is submitted for the general information of the shareholders of the
Fund. It is not authorized for the distribution to prospective investors in the
Fund unless it is preceded or accompanied by a current prospectus which includes
details regarding the Fund's objectives, policies and other information. Total
investment return is based on historical results and is not intended to indicate
future performance. The investment return and principal value of an investment
in the Fund will fluctuate, so that an investor's shares, when redeemed, may be
worth more or less than original cost.
