============================================================
- ------------------------------------------------------------
THE BEDFORD FAMILY
MONEY MARKET PORTFOLIO
- ------------------------------------------------------------
MUNICIPAL
MONEY MARKET PORTFOLIO
- ------------------------------------------------------------
GOVERNMENT OBLIGATIONS
MONEY MARKET PORTFOLIO
SEMI-ANNUAL REPORT
FEBRUARY 28, 1997
- ------------------------------------------------------------
============================================================
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
SEMI-ANNUAL INVESTMENT ADVISER'S REPORT
Economic activity continued its sawtooth pattern in the second half of 1996
by dipping sharply in the third quarter but recovering strongly in the last
three months. Fourth quarter GDP was initially reported at 4.7%, led by gains in
industrial production, capacity utilization and housing. The pace of new job
creation also continued strong and market sentiment began to focus on the
possibility that wage pressures might raise inflation. For the year, both the
consumer and producer price indices showed gains of about 3%, however, the core
rates, excluding the more volatile food and energy components were less
troubling. The Federal Reserve maintained a close watch over the markets and was
often thought to be on the verge of tightening monetary policy. This increased
the volatility of short-term rates during the period, but no change in monetary
policy was effected. The Fed's strongest impact on the markets was in early
December when the chairman spoke of the "irrational exuberance" that existed and
warned investors of sudden changes in fortune. The markets weakened for a short
while, but by the middle of February, the Dow Jones Industrial Average, for
example, had another added 600 points to its upward climb.
Short-term taxable interest rates continued to trade off of the 5.25%
federal funds rate, but near-term fluctuations were volatile and the yield curve
took on varying degrees of positive slope depending on the perceived timing of a
Fed tightening. As also usually happens, year-end pressures pushed yields on one
and two-month obligations to temporary highs, as issuers tried to induce
investors to put money into early 1997. This increase in rates provided
opportunity for the funds to enhance portfolio yields by extending that portion
of their cash that was not needed to provide year-end liquidity. The effect of
these actions late in the year was a gradual lengthening in the funds' average
weighted maturities to a 40-day target for the government portfolio and a 55-day
target for the money market portfolio.
Yields in the tax-exempt market were a function of supply and demand during
the year. With Fed policy on hold, most municipal funds were defensive,
preferring shorter maturities in anticipation of higher rates in the future.
Short-term tax-free yields did rise in the third quarter as new issuance from
states and local governments caused inventory to swell. After-tax yields rose to
attractive levels and tax-free funds tended to extend their maturities by buying
beyond the first two months of the year when short-term yields are typically
low. New York City was a large participant in the second half of 1996, issuing
$800 million in tax anticipation notes in August and $1.6 billion revenue
anticipation notes in October. Overall, tax-exempt money market funds
experienced record growth during the last year, closing February at about $147
billion, as reported in IBC'S MONEY FUND REPORT, versus $135 billion a year ago.
Looking ahead, the course of monetary policy will be closely watched and
hotly debated. Chairman Greenspan has already warned the markets about a
"preemptive strike" on interest rates to prevent a rekindling of inflation. The
economy appears to be expanding at a 2.5-3.0% pace and inflation continues to
hover around 3.0%. In this environment, short-term rates could well remain at
current levels for some time, however, there is a clear bias, on the part of the
Fed, to tighten monetary policy.
PNC Institutional Management Corporation
(Please dial toll-free 800-533-7719 for questions regarding
your account or contact your broker.)
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS
FEBRUARY 28, 1997
(UNAUDITED)
PAR
(000) VALUE
-------- --------------
AGENCY OBLIGATIONS--3.9%
Federal Home Loan Bank Discount
Notes
5.300% 03/03/97 ............. $ 75,000 $ 74,977,917
--------------
Student Loan Marketing Association(DAGGER)
5.330% 03/04/97 ............. 10,000 10,000,000
5.340% 03/04/97 ............. 10,000 10,000,000
--------------
20,000,000
--------------
TOTAL AGENCY OBLIGATIONS
(Cost $94,977,917) ...... 94,977,917
--------------
CERTIFICATES OF DEPOSIT--34.2%
BANK NOTES--12.2%
Bankers Trust Co.
5.530% 08/01/97 ............. 50,000 50,002,068
Chase Manhattan Bank-Delaware
5.550% 07/15/97 ............. 50,000 50,000,000
5.530% 07/28/97 ............. 50,000 50,000,000
First National Bank of Boston
5.500% 03/17/97 ............. 25,000 25,000,000
5.600% 04/01/97 ............. 25,000 25,000,000
5.460% 08/06/97 ............. 50,000 50,000,000
Mellon Bank N.A.
6.030% 09/23/97 ............. 25,000 25,017,286
Wilmington Trust Co.
5.400% 03/24/97 ............. 25,000 25,000,000
--------------
300,019,354
--------------
YANKEE DOLLAR CERTIFICATES OF DEPOSIT--22.0%
Bank of Tokyo-Mitsubishi
5.580% 04/30/97 ............. 50,000 50,000,000
5.540% 06/11/97 ............. 20,000 20,001,804
Banque Nationale de Paris
5.370% 05/14/97 ............. 50,000 50,003,657
Industrial Bank of Japan
5.500% 04/16/97 ............. 50,000 50,000,000
Royal Bank of Canada
5.320% 03/03/97(DAGGER) ..... 25,000 24,980,486
5.510% 04/30/97 ............. 74,000 74,008,032
Sanwa Bank Ltd Japan
5.450% 03/06/97 ............. 50,000 50,000,138
PAR
(000) VALUE
-------- --------------
YANKEE DOLLAR CERTIFICATES OF DEPOSIT--(CONTINUED)
Societe Generale
5.600% 04/07/97 ............. $ 25,000 $ 25,000,000
5.780% 08/20/97 ............. 21,000 21,006,543
5.600% 09/19/97 ............. 50,000 50,000,000
5.770% 01/09/98 ............. 25,000 24,991,763
Sumitomo Bank
5.500% 04/14/97 ............. 25,000 25,000,000
Svenska Handelsbanken Inc.
5.350% 05/27/97 ............. 25,000 25,000,000
5.360% 05/27/97 ............. 25,000 24,999,404
Swedbank
5.630% 03/25/97 ............. 25,000 25,000,162
--------------
539,991,989
--------------
TOTAL CERTIFICATES OF DEPOSIT
(Cost $840,011,343) ..... 840,011,343
--------------
COMMERCIAL PAPER--38.5%
ASSET BACKED SECURITIES--9.6%
Asset Securitization Co-Op Corp.
5.310% 03/11/97 ............. 50,000 49,926,250
5.305% 03/12/97 ............. 50,000 49,918,951
Corporate Receivables Corp.
5.300% 04/07/97 ............. 25,000 24,863,819
Cxc, Inc.
5.350% 03/20/97 ............. 40,000 39,887,056
Sigma Finance, Inc.
5.410% 03/03/97 ............. 50,870 50,854,711
5.370% 04/04/97 ............. 20,000 19,898,567
--------------
235,349,354
--------------
BANKS--3.6%
ABN-AMRO N.A. Finance Inc.
5.275% 06/09/97 ............. 25,000 24,633,681
Morgan (J.P.) & Co.
5.360% 07/17/97 ............. 25,000 24,486,333
Swedbank Inc.
5.400% 07/07/97 ............. 40,000 39,232,000
--------------
88,352,014
--------------
FINANCE LESSORS--2.0%
General Electric Capital Corp.
5.340% 04/28/97 ............. 50,000 49,569,833
--------------
See Accompanying Notes to Financial Statements.
2
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS (CONTINUED)
FEBRUARY 28,1997
(UNAUDITED)
PAR
(000) VALUE
-------- -------------
FINANCE SERVICES--6.3%
Countrywide Funding Corp.
5.350% 03/20/97 ............. $ 50,000 $ 49,858,819
Dakota Certificates Program
5.300% 05/12/97 ............. 30,000 29,682,000
5.330% 05/15/97 ............. 26,500 26,205,740
5.300% 05/20/97 ............. 50,000 49,411,111
-------------
155,157,670
-------------
GLASS, GLASSWARE, PRESSED OR BLOWN--2.0%
Newell Co.
5.330% 03/06/97 ............. 50,000 49,962,986
-------------
HOUSEHOLD AUDIO & VIDEO EQUIPMENT--1.1%
Toshiba International Finance (UK)
PLC
5.360% 03/24/97 ............. 26,700 26,608,567
-------------
PERSONAL CREDIT INSTITUTIONS--3.0%
General Motors Acceptance Corp.
5.500% 03/03/97 ............. 35,000 34,989,306
5.390% 06/30/97 ............. 40,000 39,275,344
-------------
74,264,650
-------------
SECURITY BROKERS & DEALERS--7.1%
Lehman Brothers Holdings Inc.
5.420% 03/17/97 ............. 50,000 49,879,556
Merrill Lynch & Co.
5.300% 08/14/97 ............. 50,000 48,778,056
Morgan Stanley Group, Inc.
5.450% 03/24/97 ............. 25,000 24,912,951
Nomura Holding America, Inc.
5.350% 03/10/97 ............. 25,000 24,966,562
5.370% 05/14/97 ............. 25,000 24,724,042
-------------
173,261,167
-------------
SERVICES - AUTO RENT & LEASE--2.0%
PHH Corp.
5.280% 04/21/97 ............. 50,000 49,626,000
-------------
PAR
(000) VALUE
-------- -------------
TELEPHONE COMMUNICATIONS--1.8%
MCI Communications Corp.
5.320% 04/30/97 ............. $ 20,000 $ 19,822,667
5.470% 04/30/97 ............. 25,000 24,772,083
-------------
44,594,750
-------------
TOTAL COMMERCIAL PAPER
(Cost $946,746,991) ..... 946,746,991
-------------
CORPORATE OBLIGATIONS--8.3%
FINANCE LESSORS--1.4%
IBM Credit Corp.
5.740% 08/14/97 ............. 15,000 15,012,217
5.700% 10/27/97 ............. 20,000 19,996,338
-------------
35,008,555
-------------
PERSONAL CREDIT INSTITUTIONS--1.2%
General Motors Acceptance Corp.
7.900% 03/12/97 ............. 14,750 14,761,470
5.625% 10/30/97 ............. 15,000 14,994,092
-------------
29,755,562
-------------
SECURITY BROKERS & DEALERS--5.7%
Bear Stearns Companies, Inc.
5.290% 03/11/97 ............. 20,000 20,000,000
5.405% 03/24/97(DAGGER) ..... 50,000 50,000,000
5.860% 01/20/98 ............. 20,000 20,000,000
Lehman Brothers Holdings, Inc.(DAGGER)
5.600% 03/06/97 ............. 50,000 50,000,000
-------------
140,000,000
-------------
TOTAL CORPORATE
OBLIGATIONS
(Cost $204,764,117) ..... 204,764,117
-------------
MUNICIPAL BONDS--5.3%
CALIFORNIA--0.5%
Adventist Health Systems West
Series 1988(DAGGER)
5.500% 03/05/97 ............. 12,425 12,425,000
-------------
FLORIDA--0.1%
Coral Springs, Florida Industrial
Development Revenue(DOUBLE DAGGER)
5.400% 03/05/97 ............. 2,900 2,900,000
-------------
See Accompanying Notes to Financial Statements.
3
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS (CONTINUED)
FEBRUARY 28, 1997
(UNAUDITED)
PAR
(000) VALUE
-------- -------------
GEORGIA--0.4%
De Kalb County Georgia Development
Authority Series 1995 B (Emory
University Project)(DOUBLE DAGGER)
5.400% 02/28/97 ............. $ 9,840 $ 9,840,000
-------------
ILLINOIS--0.7%
Barton Healthcare Taxable Revenue
Bonds Series 1995(DAGGER)
5.450% 03/05/97 ............. 12,155 12,155,000
Baylis Group Partnership Weekly
Demand Taxable Bond Series 1992(DOUBLE DAGGER)
5.600% 03/05/97 ............. 600 600,000
Illinois Health Facilities Authority
Convertible/ VRDN RB
(The Streeterville Corp. Project)
Series 1993-B(DOUBLE DAGGER)
5.450% 03/05/97 ............. 4,400 4,400,000
-------------
17,155,000
-------------
INDIANA--0.3%
Bremen, Inc. Taxable Adjustable Rate
Note Series 1996 B (Cleveland)
5.540% 03/05/97 ............. 6,000 6,000,000
-------------
KENTUCKY--0.2%
Boone County Taxable IDR Refunding
Bonds (Square D Company Project)
Series 1994-B VRDN(DAGGER)
5.450% 03/05/97 ............. 4,200 4,200,000
-------------
MINNESOTA--0.2%
Fairview Hospital And Healthcare
Services Taxable ADJ Convertible
Extendable Securities Series 1994
(MBIA-INS.) VRDN(DAGGER)
5.500% 03/06/97 ............. 4,900 4,900,000
-------------
MISSISSIPPI--1.3%
Hinds County, Mississippi
IDRB VRDN(DAGGER)
5.400% 03/05/97 ............. 3,315 3,315,000
PAR
(000) VALUE
-------- -------------
MISSISSIPPI--(CONTINUED)
Mississippi Business Finance Corp.
IDR (Dana Lighting Project)
Series 1995, Orlando
5.400% 03/07/97 ............. $ 6,700 $ 6,700,000
Mississippi Business Finance Corp.
Taxable IDR Series 1994 (Bryan
Foods, Inc. Project) VRDN(DAGGER)
5.450% 03/05/97 ............. 14,000 14,000,000
Mississippi Business Finance Corp.
Taxable IDR Series 1995
5.400% 03/07/97 ............. 7,800 7,800,000
-------------
31,815,000
-------------
NEW YORK--0.5%
Health Insurance Plan of Greater NY
adj/Convertible Extendable
Securities Series 1990 VRDN(DAGGER)
5.400% 03/05/97 ............. 5,500 5,500,000
Health Insurance Plan of Greater NY
adj/Convertible Extendable
Securities VRDN(DAGGER)
5.400% 03/05/97 ............. 6,800 6,800,000
-------------
12,300,000
-------------
NORTH CAROLINA--0.5%
City of Asheville North Carolina
Tax Corp.
5.350% 03/05/97 ............. 12,700 12,700,000
Community Health Systems, Inc.
Taxable First Union National Bank
of North Carolina Series 1991-A(DAGGER)
5.650% 03/05/97 ............. 400 400,000
-------------
13,100,000
-------------
TEXAS--0.6%
South Central Texas Industrial
Development Corp. Taxable IDR
(Rohr Industries Project)
Series 1990 VRDN(DAGGER)
5.450% 03/05/97 ............. 14,800 14,800,000
-------------
TOTAL MUNICIPAL BONDS
(Cost $129,435,000) ..... 129,435,000
-------------
See Accompanying Notes to Financial Statements.
4
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS (CONCLUDED)
FEBRUARY 28, 1997
(UNAUDITED)
PAR
(000) VALUE
-------- --------------
TIME DEPOSITS--5.4%
Bank of Tokyo-Mitsubishi
5.313% 03/07/97 ............. $ 50,000 $ 50,000,000
First Union National Bank of NC
5.438% 03/03/97 ............. 81,900 81,900,000
--------------
TOTAL TIME DEPOSITS
(Cost $131,900,000) ..... 131,900,000
--------------
REPURCHASE AGREEMENTS--4.1%
J. P. Morgan Securities
(Agreement dated 02/28/97 to
be repurchased at 100,044,583,
collateralized by $78,387,000
U.S. Treasury Bond 10.375% due
11/15/12. Market value of
collateral is $102,001,084.)
5.350% 03/03/97 ............. 100,000 100,000,000
--------------
TOTAL REPURCHASE
AGREEMENTS
(Cost $100,000,000) ..... 100,000,000
--------------
TOTAL INVESTMENTS AT VALUE--99.7%
(Cost $2,447,835,368*) ...... 2,447,835,368
OTHER ASSETS IN EXCESS
OF LIABILITIES--0.3% ........ 7,752,170
VALUE
--------------
NET ASSETS (Applicable to
1,250,395,889 Bedford shares,
276,583 Cash Preservation shares,
662,915,523 Janney Montgomery
Scott shares, 542,045,165
Sansom Street shares and 800
other shares)-- 100.0% ...... $2,455,587,538
==============
NET ASSET VALUE, offering and
redemption price per share
($2,455,587,538 (DIVIDE)
2,455,633,960) .............. $1.00
=====
* Also cost for Federal income tax purposes.
(DAGGER) Variable Rate Obligations -- The interest rate shown is the rate as of
February 28, 1997 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.
(DOUBLE DAGGER) Put Bonds -- Maturity date is the put date.
INVESTMENT ABBREVIATIONS
VRDN .............................................. Variable Rate Demand Note
LOC ........................................................... Letter of Credit
IDR ............................................. Industrial Development Revenue
See Accompanying Notes to Financial Statements.
5
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
MONEY MARKET PORTFOLIO
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED
FEBRUARY 28, 1997 (UNAUDITED)
INVESTMENT INCOME
Interest ................................ $63,652,960
-----------
EXPENSES
Investment advisory fees ................ 4,223,251
Distribution fees ....................... 5,122,193
Service organization fees ............... 243,692
Directors' fees ......................... 25,579
Custodian fees .......................... 187,903
Transfer agent fees ..................... 1,705,771
Legal fees .............................. 52,110
Audit fees .............................. 28,583
Registration fees ....................... 274,999
Insurance expense ....................... 23,132
Printing fees ........................... 191,494
Miscellaneous ........................... --
-----------
12,078,707
Less fees waived ........................ (1,835,454)
Less expense reimbursement by advisor ... (235,953)
-----------
Total expenses ....................... 10,007,300
-----------
Net investment income ...................... 53,645,660
-----------
Realized loss on investments ............... (12,909)
-----------
Net increase in net assets resulting
from operations ......................... $53,632,751
===========
STATEMENT OF CHANGES IN NET ASSETS
FOR THE FOR THE
SIX MONTHS ENDED YEAR ENDED
FEBRUARY 28, 1997 AUGUST 31, 1996
----------------- ---------------
(UNAUDITED)
Increase (decrease) in net assets:
Operations:
Net investment income .....$ 53,645,660 $ 100,027,983
Net loss on investments ... (12,909) (12,987)
-------------- --------------
Net increase in net assets
resulting from
operations .............. 53,632,751 100,014,996
-------------- --------------
Dividends to shareholders from
net investment income:
Bedford shares ($.0226 and
$.0469, respectively,
per share) .............. (26,644,363) (49,874,649)
Cash Preservation shares
($.0229 and $.0471,
respectively, per
share) .................. (4,493) (10,092)
Janney Montgomery Scott
shares ($.0224 and
$.0465, respectively,
per share) .............. (13,747,392) (24,434,566)
RBB shares ($.0218 and
$.0465, respectively,
per share) .............. (1,286) (2,630)
Sansom Street shares ($.0250
and $.0518, respectively,
per share) .............. (13,248,126) (25,706,046)
-------------- --------------
Total dividends to
shareholders .......... (53,645,660) (100,027,983)
-------------- --------------
Net capital share
transactions .............. 259,777,009 374,464,737
-------------- --------------
Total increase in net
assets .................... 259,764,100 374,451,750
Net Assets:
Beginning of period ....... 2,195,823,438 1,821,371,688
-------------- --------------
End of period .............$2,455,587,538 $2,195,823,438
============== ==============
See Accompanying Notes to Financial Statements.
6
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
MUNICIPAL MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS
FEBRUARY 28, 1997
(UNAUDITED)
PAR
(000) VALUE
-------- -------------
MUNICIPAL BONDS--99.6%
ALABAMA--2.4%
Alabama Housing Finance Authority
Multifamily Housing Refunding RB
(Heatherbrooke Project) / DN
[A-1+](DAGGER)
3.350% 03/07/97 ............... $ 9,900 $ 9,900,000
Livingston IDA USA Project DN /
[A-1+, VMIG-1](DAGGER)
3.750% 03/07/97 ............... 1,000 1,000,000
------------
10,900,000
------------
ALASKA--1.4%
Alaska Industrial Development &
Export Authority RB Series 1984-5
DN [A-1](DAGGER)
3.400% 03/07/97 ............... 2,045 2,045,000
Valdez Marine Terminal RB TECP
(ARCO Transportation Alaska,
Inc. Project) [A-1, VMIG-1]
3.400% 03/06/97 ............... 4,300 4,300,000
------------
6,345,000
------------
ARIZONA--1.7%
Flagstaff IDA DN / [A-1](DAGGER)
3.400% 03/07/97 ............... 7,755 7,755,000
------------
ARKANSAS--0.4%
Arkansas Development Authority
Health Care Facility (Sisters of Mercy)
DN / [A-1+, VMIG-1](DAGGER)
3.250% 03/07/97 ............... 1,700 1,700,000
------------
CALIFORNIA--7.0%
California PCR DN / [A-1+](DAGGER)
3.150% 03/30/97 ............... 800 800,000
Los Angeles County Certificates of
Participation (Los Angeles County
Museum of Art Project)
[A-1+, VMIG-1]
3.250% 03/07/97 ............... 1,000 1,000,000
Los Angeles County Series 1996 A
TRAN [SP-1+, MIG]
4.500% 06/30/97 ............... 10,315 10,337,665
Oakland DN(DAGGER)
3.650% 03/07/97 ............... 8,000 8,000,000
PAR
(000) VALUE
-------- -------------
CALIFORNIA--(CONTINUED)
San Bernardino County TRAN
[SP-1+, MIG-1]
4.500% 06/30/97 ............... $ 5,000 $ 5,009,972
State of California 1996-97 RAN
[SP-1+, MIG]
4.500% 06/30/97 ............... 7,000 7,011,827
------------
32,159,464
------------
COLORADO--2.4%
Colorado Health Facilities Authority
Hospital RB MB (Bounder
Community Hospital Projects)
Series 1989 C [A-1+, VMIG-1](DOUBLE DAGGER)
3.300% 03/07/97 ............... 3,400 3,400,000
Colorado State General Fund Revenue
Series 1996 A TRAN [SP-1+, MIG1]
4.500% 06/27/97 ............... 5,000 5,010,112
Moffat County Pollution Control
RB DN [A-1+, P-1](DAGGER)
3.300% 03/07/97 ............... 2,400 2,400,000
------------
10,810,112
------------
CONNECTICUT--0.7%
Connecticut State of Special
Assessment Unemployment
Compensation Advance Fund Revenue
(Connecticut Unemployment
Project) Series 1993 C MB
(FGIC Insurance) [A-1+,
VMIG-1](DOUBLE DAGGER)
3.900% 07/01/97 ............... 3,000 3,000,000
------------
DELAWARE--0.7%
The Delaware Economic Development
Authority Gas Facilities (Delmarva
Power & Light Project) Series 1993 C
(Delmarva Power & Light Corporate
Obligation) RB DN [VMIG-1](DAGGER)
3.400% 03/07/97 ............... 3,000 3,000,000
------------
DISTRICT OF COLUMBIA--0.3%
District of Columbia [A-1+,
VMIG-1](DOUBLE DAGGER)
3.550% 03/01/97 ............... 1,600 1,600,000
------------
See Accompanying Notes to Financial Statements.
7
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
MUNICIPAL MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS (CONTINUED)
FEBRUARY 28, 1997
(UNAUDITED)
PAR
(000) VALUE
-------- -------------
FLORIDA--1.6%
Dade County Multifamily Housing
Refunding RB (Star Creek
Apartments-3) DN [A-1, A-](DAGGER)
3.350% 03/07/97 ............... $ 1,150 $ 1,150,000
Miami Health Facilities Authority
(Miami Jewish Home For The
Aged Inc Project) / [A-1+,
VMIG-1](DOUBLE DAGGER)
3.350% 03/07/97 ............... 6,000 6,000,000
------------
7,150,000
------------
GEORGIA--4.3%
Atlanta Urban Residential Finance
Authority RB DN (Residential
Construction - Summerhill
Project) [A-1](DAGGER)
3.350% 03/07/97 ............... 2,200 2,200,000
Brunswick and Glynn Development
Authority Sewage Facility RB DN
(Georgia-Pacific Corp. Project)
Series 1996 (Aa2)(DAGGER)
3.450% 03/07/97 ............... 5,000 5,000,000
Carrollton Payroll Development
Authority Certificates RAN (Aa3)
3.450% 03/07/97 ............... 6,000 6,000,000
Forsyth County IDA RB (American
Boa, Inc. Project) DN (Aaa)(DAGGER)
3.350% 03/07/97 ............... 3,000 3,000,000
Fulton County IDR DN (Charles J.
Mackarich Project) (Aa2)(DAGGER)
3.450% 03/07/97 ............... 3,500 3,500,000
------------
19,700,000
------------
ILLINOIS--11.9%
Chicago G.O. Tender Notes
Series 1992B [A-1+, VMIG-1]
DN(DAGGER)
3.300% 03/07/97 ............... 4,800 4,800,000
Chicago O'Hare Airport System
RB [A-1+, VMIG-1]
3.350% 03/07/97 ............... 3,400 3,400,000
Health Facility Authority DN (Central
Health Care and Northwest
Community Hospital)
Series C DN [VMIG-1](DAGGER)
3.350% 03/07/97 ............... 1,545 1,545,000
PAR
(000) VALUE
-------- -------------
ILLINOIS--(CONTINUED)
Illinois Development Finance
Authority DN [A-1+](DAGGER)
3.350% 03/07/97 ............... $ 8,000 $ 8,000,000
Illinois Development Finance
Authority (CHS Acquisition Corp.
Project) DN [A-1+](DAGGER)
3.500% 03/07/97 ............... 5,035 5,035,000
Illinois Development Financing
Authority PCR (Illinois Power Co.
Project) Series 1987 D DN [A-1](DAGGER)
3.550% 03/07/97 ............... 900 900,000
Illinois Education Facility Authority
(Museum of Science and Industry)
DN / (Northern Trust) (FGIC)
[VMIG-1, Aaa](DAGGER)
3.250% 03/07/97 ............... 3,400 3,400,000
Illinois Health Facilities Authority
(Revolving Fund Pooled Financing
Program Project) Series 1985 C DN
[A-1, VMIG-1](DAGGER)
3.250% 03/07/97 ............... 12,000 12,000,000
Illinois Health Facility Authority (Carle
Foundation Project) DN [VMIG-1](DAGGER)
3.350% 03/07/97 ............... 2,600 2,600,000
Illinois Health Facility Authority RB
(Evanston Hospital Corp.)
Series A DN [A-1+, VMIG-1](DAGGER)
3.850% 10/15/97 ............... 3,000 3,000,000
Illinois Housing Development Finance
Authority RB (Homeownership
Mortgage Bonds) [A-1+, VMIG-1](DOUBLE DAGGER)
3.700% 12/18/97 ............... 4,000 4,000,000
O'Hare International Airport Special
Facility RB DN [A-1+, VMIG-1](DAGGER)
3.450% 03/07/97 ............... 5,700 5,700,000
------------
54,380,000
------------
INDIANA--11.5%
Bremen IDA RB Series 1996 A
(Universal Bearings, Inc. Project
Private Placement) DN(DAGGER)
3.450% 03/07/97 ............... 5,000 5,000,000
See Accompanying Notes to Financial Statements.
8
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
MUNICIPAL MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS (CONTINUED)
FEBRUARY 28, 1997
(UNAUDITED)
PAR
(000) VALUE
-------- -------------
INDIANA--(CONTINUED)
Hamilton County Hospital Authority
RB (Daughters of Charity)
Series 1983 DN [A-1+, VMIG-1](DAGGER)
3.350% 03/07/97 ............... $ 7,600 $ 7,600,000
Indiana Development Finance
Authority IDA RB DN (Enterprise
Center I Project) [A-1+](DAGGER)
3.500% 03/07/97 ............... 2,900 2,900,000
Indiana Development Finance Authority
IDA RB DN (Enterprise Center II,
Project) [A-1+](DAGGER)
3.500% 03/07/97 ............... 5,000 5,000,000
Indiana Development Finance Authority
IDA RB DN (Enterprise Center III
Project) [A-1+](DAGGER)
3.500% 03/07/97 ............... 4,500 4,500,000
Indiana Development Finance Authority
IDA RB DN (Enterprise Center IV
Project) [A-1+](DAGGER)
3.500% 03/07/97 ............... 2,600 2,600,000
Indiana Development Finance Authority
Solid Waste Disposal RB
Series 1990 A, (Pure Air on the
Lake Project) [A-1+, P-1](DOUBLE DAGGER)
3.550% 06/27/97 ............... 10,000 10,000,000
La Porte County Economic
Development RB DN (Pedcor
Investments - Woodland
Crossing) [VMIG-1, Aaa] TECP
3.450% 03/07/97 ............... 2,000 2,000,000
Orleans Economic Development RB
for (Almana Limited Liability Co.
Project) Series 1995 DN(DAGGER)
3.500% 03/07/97 ............... 5,400 5,400,000
Portage Economic Development
RB DN (Breckenridge Apartments
Project) [A-1, A](DAGGER)
3.400% 03/07/97 ............... 4,650 4,650,000
Tippecanoe County Economic
Development RB DN Series 1991
(Consolidated Industries Corp.
Project) [VMIG1, A1](DAGGER)
3.450% 03/07/97 ............... 3,000 3,000,000
------------
52,650,000
------------
PAR
(000) VALUE
-------- -------------
IOWA--2.7%
Iowa Finance Authority IDA RB DN
(Sauer-Sundstrand Co. Project)
[P-1](DAGGER)
3.400% 03/07/97 ............... $ 4,000 $ 4,000,000
Iowa Finance Authority IDA RB DN
(Dixie Bedding Co. Project)
Series 1995 [VMIG1, Aa2](DAGGER)
3.450% 03/07/97 ............... 3,000 3,000,000
Louisa County PCR (Iowa-Illinois Gas
and Electric Co. Project)
Series 1986 A DN [A-1+, VMIG-1](DAGGER)
3.350% 03/07/97 ............... 5,600 5,600,000
------------
12,600,000
------------
KANSAS--1.6%
Lawrence County Project IDA RB
Series A RAM Co. Project
[A-1+, VMIG-1](DOUBLE DAGGER)
3.450% 03/06/97 ............... 2,125 2,125,000
Shawnee IDA RB (Thrall Enterprises,
Inc. Project) DN [A-1+](DAGGER)
3.500% 03/07/97 ............... 5,400 5,400,000
------------
7,525,000
------------
KENTUCKY--4.6%
Hopkinsville IDA RB Douglas Autotech
Corp. Project Series 1995 DN
[A-1, P-1](DAGGER)
3.750% 03/07/97 ............... 7,700 7,700,000
Hopkinsville RB (American Precision
Machinery) Series 1990 DN
[P-1, Aa2](DAGGER)
3.550% 03/07/97 ............... 3,600 3,600,000
Maysville Solid Waste Disposal
Facilities RB MB [A-1,
P-1](DOUBLE DAGGER)
3.600% 04/15/97 ............... 10,000 10,000,000
------------
21,300,000
------------
LOUISIANA--1.4%
East Baton Rouge (Parish Pacific Corp.
Project) DN [A-1](DAGGER)
3.650% 03/07/97 ............... 6,500 6,500,000
------------
See Accompanying Notes to Financial Statements.
9
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
MUNICIPAL MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS (CONTINUED)
FEBRUARY 28, 1997
(UNAUDITED)
PAR
(000) VALUE
-------- -------------
MARYLAND--1.7%
Howard County Bluffs at Clary's Forest
Apartment Facility Series 1995 DN
[A-1](DAGGER)
3.450% 03/07/97 ............... $ 5,735 $ 5,735,000
Maryland Industrial Development
Financing Authority Economic
Development Revenue
Biological Inc. [A-1]
3.600% 03/07/97 ............... 2,000 2,000,000
------------
7,735,000
------------
MICHIGAN--1.4%
Detroit Water Supply System DN
[A-1+, VMIG-1](DAGGER)
3.300% 03/07/97 ............... 2,000 2,000,000
Michigan State Strategic Fund Limited
Obligation RB DN [A-1](DAGGER)
3.450% 03/07/97 ............... 1,500 1,500,000
Northville IDA (Thrifty Northville
Project) Series 1984 DN [P-1](DAGGER)
3.425% 03/07/97 ............... 1,000 1,000,000
Wayne Charter County Michigan
Airport RB Series B [A-1+, VMIG-1]
3.400% 03/07/97 ............... 2,000 2,000,000
------------
6,500,000
------------
MISSOURI--5.8%
City of Berkeley IDA RB Exempt Facility
DN (St. Louis Air Cargo Services,
Inc. Project) [A-1](DAGGER)
3.600% 03/07/97 ............... 5,300 5,300,000
City of Kansas IDA RB (Mid-America
Health Services, Inc. Project)
Series 1984 DN [A-1](DAGGER)
3.500% 03/07/97 ............... 1,100 1,100,000
Forsyth PCR (Portland General
Electric) (Mitsub) (VMIG-1)
DN(DAGGER)
3.500% 03/07/97 ............... 2,500 2,500,000
Kansas City IDA Demand Exempt
Facility RB (K.C. Air Cargo Services,
Inc. Project) DN [A-1](DAGGER)
3.600% 03/07/97 ............... 7,500 7,500,000
PAR
(000) VALUE
-------- -------------
MISSOURI--(CONTINUED)
Missouri Higher Education Student
Loan Authority RB DN
[VMIG-1](DAGGER)
3.400% 03/07/97 ............... $10,000 $ 10,000,000
------------
26,400,000
------------
NEBRASKA--0.8%
Lancaster Sun-Husker Foods, Inc.
Project DN [A-1+](DAGGER)
3.750% 03/07/97 ............... 3,800 3,800,000
------------
NEVADA--0.4%
Clark County Airport System
Subordinate Lien RB DN
Series 1995 A-2 [A-1+,
VMIG-1](DAGGER)
3.400% 03/07/97 ............... 1,680 1,680,000
------------
NEW HAMPSHIRE--3.2%
New Hampshire State Housing
Finance Authority Multifamily RB
Countryside Project DN [VMIG-1](DAGGER)
3.400% 03/07/97 ............... 14,505 14,505,000
------------
NEW YORK--1.5%
New York State Environmental Quality
G.O. Series 97 A MB [A-1+, P-1] TECP
3.400% 05/16/97 ............... 5,000 5,000,000
Triborough Bridge and Tunnel
Authority DN / (FGIC Insurance)
[A-1+, VMIG-1](DAGGER)
3.200% 03/07/97 ............... 1,700 1,700,000
------------
6,700,000
------------
NORTH CAROLINA--3.7%
Charlotte Airport Revenue
Refunding Series 1993 A
DN / (MBIA Insurance) [A-1+,
VMIG-1](DAGGER)
3.250% 03/07/97 ............... 3,200 3,200,000
Mecklenburg County Industrial Facility
and Pollution Control Financing
Authority (Edgecomb Metals Co.
Project) Series 1984 DN(DAGGER)
3.250% 03/07/97 ............... 300 300,000
See Accompanying Notes to Financial Statements.
10
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
MUNICIPAL MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS (CONTINUED)
FEBRUARY 28, 1997
(UNAUDITED)
PAR
(000) VALUE
-------- -------------
NORTH CAROLINA--(CONTINUED)
North Carolina Educational Facilities
Finance Agency RB (The Bowman
Gray School of Medicine Project)
Series 1996 DN [VMIG-1](DAGGER)
3.300% 03/07/97 ............... $ 2,500 $ 2,500,000
North Carolina Health Care DN
Series 1985 / (MBIA Insurance)
[A-1+](DAGGER)
3.500% 03/07/97 ............... 6,400 6,400,000
North Carolina Medical Care
Commission Hospital RB DN
(Moses H. Cone Memorial Hospital
Project) [A-1+](DAGGER)
3.300% 03/07/97 ............... 1,700 1,700,000
Wake County Industrial Facility and
Pollution Control Financing Authority
(Carolina Power & Light Co.)
Series 1985 A DN [A-1+, P-1](DAGGER)
3.300% 03/07/97 ............... 1,200 1,200,000
Wake County Industrial Facility PCR
DN (Carolina Power and Light)
Series B [A1+](DAGGER)
3.500% 03/07/97 ............... 1,500 1,500,000
------------
16,800,000
------------
NORTH DAKOTA--0.8%
North Dakota Housing Finance Agency
Housing Finance Program Bonds
Home Mortgage Finance Program
DN/ (FGIC Insurance) [VMIG1, Aaa](DAGGER)
3.850% 04/03/97 ............... 3,500 3,500,000
------------
OHIO--0.7%
Columbus G.O. RB Series 1996 DN
[A-1+, VMIG-1](DAGGER)
3.200% 03/07/97 ............... 3,000 3,000,000
------------
OKLAHOMA--0.4%
Oklahoma Development Finance
Authority Shawnee Funding Limited
DN [A-1+, AA-](DAGGER)
3.450% 03/07/97 ............... 2,000 2,000,000
------------
PAR
(000) VALUE
-------- -------------
PUERTO RICO--0.2%
Puerto Rico Highway and
Transportation Authority
Series 1993x DN [A-1+,
VMIG-1](DAGGER)
2.950% 03/07/97 ............... $ 900 $ 900,000
------------
SOUTH CAROLINA--2.6%
Berkeley County Industrial
Development RB (Nucor Corp.
Project) [A-1+, P-1](DAGGER)
3.450% 03/07/97 ............... 12,000 12,000,000
------------
TENNESSEE--3.0%
Memphis General Improvement DN
[A-1+, VMIG-1](DAGGER)
3.400% 03/07/97 ............... 4,400 4,400,000
Montgomery County Public Building
Authority County Loan Pool G.O.
DN [A-1](DAGGER)
3.300% 03/07/97 ............... 2,400 2,400,000
Oak Ridge Municipal Solid Waste
Disposal Facility Bonds
Series 1996 M4 Environmental
Project DN [VMIG1, Aa3](DAGGER)
3.450% 03/07/97 ............... 5,100 5,100,000
Tennessee State Housing Development
Authority Homeownership
Program Bonds (Escrowed In
U.S. Treasuries) [A-1+,
VMIG1](DOUBLE DAGGER)
3.750% 07/01/97 ............... 2,000 2,000,000
------------
13,900,000
------------
TEXAS--2.8%
San Antonio Housing Finance Corp.
(Wellington Place Apartments)
Series 1995 A DN [A-1+](DAGGER)
3.400% 03/07/97 ............... 5,945 5,945,000
State of Texas Series 1996 TRAN
[SP-1+, MIG1]
4.750% 08/29/97 ............... 7,000 7,026,509
------------
12,971,509
------------
See Accompanying Notes to Financial Statements.
11
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
MUNICIPAL MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS (CONTINUED)
FEBRUARY 28, 1997
(UNAUDITED)
PAR
(000) VALUE
-------- -------------
UTAH--1.0%
Intermountain Power Agency Power
Supply Refunding RB
Series 1985 E (Spa-Bank of America)
MB [A-1, VMIG-1](DOUBLE DAGGER)
3.930% 06/16/97 ............... $ 2,000 $ 2,000,000
Salt Lake Airport RB DN
[A-1+, VMIG-1](DAGGER)
3.350% 03/07/97 ............... 1,500 1,500,000
Utah State Board of Regents Student
Loan Revenue Series C RB DN
[A-1+, VMIG-1](DAGGER)
3.400% 03/07/97 ............... 900 900,000
------------
4,400,000
------------
VIRGINIA--4.4%
Alexandria IDA Adjustable Tender
Resource Recovery (Alexandria/
Arlington Waste-to-Energy Facility)
Series 1986 A DN [VMIG-1](DAGGER)
3.550% 03/01/97 ............... 200 200,000
Capital Region Airport Commission
(Richmond International Airport
Project) Series 1995 B DN (AMBAC
Insurance) [A-1+, VMIG-1](DAGGER)
3.150% 03/07/97 ............... 1,700 1,700,000
Capital Region Airport Commission
(Richmond International Airport
Project) Series 1995 C DN / (AMBAC
Insurance ) [VMIG-1, AAA](DAGGER)
3.300% 03/07/97 ............... 2,500 2,500,000
Culpepper Town IDA Residential Care
Facility RB DN [A-1](DAGGER)
3.300% 03/07/97 ............... 1,470 1,470,000
Hampton Redevelopment & Housing
Authority Multi-Family Housing
(Avalon at Hampton)
Series 1996 MB [A-1+](DOUBLE DAGGER)
3.250% 03/07/97 ............... 1,500 1,500,000
Louisa County IDA Pooled Financing
Series 1995 DN [A-1](DAGGER)
3.300% 03/07/97 ............... 1,000 1,000,000
Lynchburg IDA Hospital RB DN [A-1](DAGGER)
3.350% 03/07/97 ............... 600 600,000
PAR
(000) VALUE
-------- -------------
VIRGINIA--(CONTINUED)
Lynchburg Hospital RB Federal
Housing Authority Mid-Atlantic
Series 1985 E DN / (AMBAC
Insurance ) [A-1, AAA](DAGGER)
3.350% 03/07/97 ............... $ 1,800 $ 1,800,000
Lynchburg IDA Hospital Facilities
(Mid-Atlantic States Capital Asset
Finance Project) Series 1985 C
DN / (AMBAC Insurance)
[A-1+, VMIG-1](DAGGER)
3.350% 03/07/97 ............... 800 800,000
Lynchburg IDA Hospital RB DN /
(AMBAC Insurance) [A-1, Aaa](DAGGER)
3.350% 03/07/97 ............... 700 700,000
Metropolitan Washington D.C. Airports
Authority, VA Passenger Facility
[A-1](DOUBLE DAGGER)
3.500% 04/07/97 ............... 2,000 2,000,000
Peninsula Ports IDA RB (Allied Signal,
Inc. Project) Series 1993 (Allied
Signal Corp. Obligation) DN [A-1](DAGGER)
3.450% 03/07/97 ............... 1,000 1,000,000
Prince William County Virginia
Industrial Development Authority
(Colonial Investments Facility
Project) Series 1996 [A-1](DAGGER)
3.550% 03/07/97 ............... 2,000 2,000,000
Roanoke IDA (Carillon Health System)
Series 1995 C DN [A-1](DAGGER)
3.200% 03/07/97 ............... 1,300 1,300,000
Roanoke IDA (Carillon Health System)
Series 1995 D DN [A-1+](DAGGER)
3.250% 03/07/97 ............... 1,800 1,800,000
------------
20,370,000
------------
WASHINGTON--3.5%
Everett, Washington IDRB Series 96
Partners Trust/Synsdor Project
[Aa3](DAGGER)
3.450% 03/07/97 ............... 5,500 5,500,000
Pierce County, WA Educational
Development Authority RB
Series 1996 (Flex-A-Lite
Consolidated Project) DN
[P-1, Aa3](DAGGER)
3.350% 03/07/97 ............... 3,000 3,000,000
See Accompanying Notes to Financial Statements.
12
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
MUNICIPAL MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS (CONCLUDED)
FEBRUARY 28, 1997
(UNAUDITED)
PAR
(000) VALUE
-------- -------------
WASHINGTON--(CONTINUED)
Port of Seattle IDA DN (Alaska Airlines
Project) [A-1](DAGGER)
3.350% 03/07/97 ............... $ 4,280 $ 4,280,000
Washington State G.O. Bonds DN
[A-1+, VMIG-1](DAGGER)
3.250% 03/07/97 ............... 400 400,000
Yakima County Public Corp. DN
Foods Project) [Aa3](DAGGER)
3.450% 03/07/97 ............... 3,000 3,000,000
------------
16,180,000
------------
WEST VIRGINIA--1.9%
Marshall County IDA US/Canada
Project DN [A-1+](DAGGER)
3.450% 03/07/97 ............... 3,500 3,500,000
Grant County West Virginia Solid
Waste Disposal Revenue Bonds
Series 96 S Virginia Electric &
Power Co. Project
[VMIG-1](DOUBLE DAGGER)
3.700% 05/29/97 ............... 5,000 5,000,000
------------
8,500,000
------------
WISCONSIN--3.2%
Carlton Wisconsin DN [P-1](DAGGER)
3.450% 03/07/97 ............... 4,800 4,800,000
Wisconsin Health & Education Facilities
Authority Daughters of Charity
Health Center [VMIG-1]
3.350% 03/07/97 ............... 10,000 10,000,000
------------
14,800,000
------------
TOTAL INVESTMENTS AT VALUE--99.6%
(Cost $455,716,085*) .......... 455,716,085
OTHER ASSETS IN EXCESS
OF LIABILITIES -- 0.4% ........ 1,867,381
------------
VALUE
-------------
NET ASSETS (Applicable to
198,704,009 Bedford Shares,
155,499,701 Bradford Shares,
84,233 Cash Preservation Shares,
103,362,447 Janney Montgomery
Scott Shares, and 800 other
shares) -- 100.0% ............. $457,583,466
============
NET ASSET VALUE, offering and
redemption price per share
($457,583,466 (DIVIDE)
457,651,190) .................. $1.00
=====
* Also cost for Federal income tax purposes.
(DAGGER) Variable Rate Demand Notes -- The interest rate shown is the rate as of
February 28, 1997 and the maturity shown is the longer of the next interest
readjustment date or the date the principal amount shown can be recovered
through demand.
(DOUBLE DAGGER) Put Bonds -- Maturity date is the put date.
The Moody's Investor Service, Inc. and Standard and Poor's Ratings Group's
ratings indicated are the most recent ratings available at February 28, 1997.
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.
13
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
MUNICIPAL MONEY MARKET PORTFOLIO
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED
FEBRUARY 28, 1997 (UNAUDITED)
INVESTMENT INCOME
Interest ................................. $7,829,369
----------
EXPENSES
Investment advisory fees ................. 712,521
Administration fees ...................... 216,844
Distribution fees ........................ 1,254,504
Directors' fees .......................... 4,829
Custodian fees ........................... 46,297
Transfer agent fees ...................... 93,296
Legal fees ............................... 9,828
Audit fees ............................... 5,415
Registration fees ........................ 120,000
Insurance expense ........................ 4,351
Printing expense ......................... 43,109
----------
2,510,994
Less fees waived ......................... (680,636)
Less expense reimbursement by advisor .... (7,855)
----------
Total expenses ........................ 1,822,503
----------
Net investment income ....................... 6,006,866
----------
Net increase in net assets resulting
from operations .......................... $6,006,866
==========
STATEMENT OF CHANGES IN NET ASSETS
FOR THE FOR THE
SIX MONTHS ENDED YEAR ENDED
FEBRUARY 28, 1997 AUGUST 31, 1996
----------------- ---------------
(UNAUDITED)
Increase (decrease) in net assets:
Operations:
Net investment income ........ $ 6,006,866 $ 12,196,171
Net loss on investments ...... -- (674)
------------ ------------
Net increase in net assets
resulting from
operations ................. 6,006,866 12,195,497
------------ ------------
Dividends to shareholders from
net investment income:
Bedford shares ($.0138 and
$.0288, respectively,
per share) ................. (2,749,570) (5,960,711)
Bradford shares ($.0138 and
$.0288, respectively,
per share) ................. (1,905,053) (3,611,114)
Cash Preservation shares
($.0131 and $.0288,
respectively, per share) ... (1,184) (3,746)
Janney Montgomery Scott
shares ($.0138 and $.0278,
respectively, per share) ... (1,351,010) (2,620,457)
RBB shares ($.0127 and
$.0272, respectively,
per share) ................. (49) (143)
------------ ------------
Total dividends to
shareholders ............. (6,006,866) (12,196,171)
------------ ------------
Net capital share
transactions ................. 36,695,120 (1,864,843)
------------ ------------
Total increase (decrease) in
net assets ................... 36,695,120 (1,865,517)
Net Assets:
Beginning of period .......... 420,888,346 422,753,863
------------ ------------
End of period ................ $457,583,466 $420,888,346
============ ============
See Accompanying Notes to Financial Statements.
14
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
GOVERNMENT OBLIGATIONS MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS
FEBRUARY 28, 1997
(UNAUDITED)
PAR
(000) VALUE
-------- -------------
AGENCY OBLIGATIONS--69.7%
FEDERAL FARM CREDIT BANK--8.1%
4.950% 03/03/97 ............... $ 7,000 $ 6,999,812
5.400% 04/01/97 ............... 30,000 29,996,651
5.510% 01/02/98 ............... 10,000 9,985,383
------------
46,981,846
------------
FEDERAL HOME LOAN BANK--3.6%
7.070% 03/03/97 ............... 6,500 6,500,565
5.200% 10/27/97 ............... 15,000 14,480,000
------------
20,980,565
------------
FEDERAL HOME LOAN MORTGAGE CORPORATION--18.1%
5.190% 03/18/97 ............... 23,000 22,943,631
5.230% 04/07/97 ............... 20,000 19,892,494
5.160% 05/12/97 ............... 15,000 14,845,200
5.160% 05/14/97 ............... 8,350 8,261,434
5.160% 05/20/97 ............... 20,000 19,770,667
5.260% 07/15/97 ............... 10,000 9,801,289
5.520% 11/06/97 ............... 9,000 8,994,457
------------
104,509,172
------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION--25.3%
5.230% 03/04/97(DAGGER) ....... 10,000 10,000,000
5.340% 03/04/97(DAGGER) ....... 10,000 9,997,287
5.313% 03/06/97(DAGGER) ....... 20,000 19,999,793
5.309% 03/17/97(DAGGER) ....... 20,000 19,997,973
5.278% 03/30/97(DAGGER) ....... 10,000 9,994,823
5.240% 04/10/97 ............... 9,875 9,817,506
5.170% 04/16/97 ............... 20,000 19,867,878
5.245% 04/18/97 ............... 10,000 9,930,067
5.240% 07/11/97 ............... 24,075 23,612,439
6.020% 09/05/97 ............... 3,000 3,006,740
5.600% 01/16/98 ............... 10,000 9,989,886
------------
146,214,392
------------
STUDENT LOAN MARKETING ASSOCIATION(DAGGER)--14.6%
5.320% 03/04/97(DAGGER) ....... 5,000 4,999,672
5.320% 03/04/97(DAGGER) ....... 20,000 19,993,340
5.330% 03/04/97(DAGGER) ....... 9,000 8,999,076
5.340% 03/04/97(DAGGER) ....... 5,000 5,000,000
PAR
(000) VALUE
-------- -------------
STUDENT LOAN MARKETING ASSOCIATION(DAGGER)--(CONTINUED)
5.340% 03/04/97(DAGGER) ....... $30,000 $ 30,000,000
5.360% 03/04/97(DAGGER) ....... 15,000 14,998,207
------------
83,990,295
------------
TOTAL AGENCY OBLIGATIONS
(Cost $402,676,270) ....... 402,676,270
------------
UNITED STATES TREASURY OBLIGATIONS--2.6%
U.S. TREASURY NOTES--2.6%
6.875% 03/31/97 ............... 5,000 5,005,375
6.500% 04/30/97 ............... 10,000 10,012,695
------------
TOTAL U. S. TREASURY
OBLIGATIONS
(Cost $15,018,070) ........ 15,018,070
------------
REPURCHASE AGREEMENTS--27.3%
Donaldson, Lufkin & Jenrette
(Agreement dated 02/28/97
to be repurchased at
$100,045,250, collateralized
by $306,970,150 Federal
National Mortgage
Association due 01/01/12.
Market value of collateral
is $103,007,239.)
5.430% 03/03/97 ............... 100,000 100,000,000
Goldman Sachs & Co.
(Agreement dated 02/28/97
to be repurchased at
$37,216,585, collateralized
by $38,805,000 U.S.
Treasury Bond 6.625%
due 02/15/27. Market
value of collateral is
$37,944,776.)
5.350% 03/03/97 ................ 37,200 37,200,000
Lehman Government Securities Inc.
(Agreement dated 02/28/97
to be repurchased at
$20,109,109, collateralized
by $114,075,000 Strip of
Principal due 08/15/21.
Market value of collateral is
$20,502,700.)
5.438% 03/03/97 ................ 20,100 20,100,000
------------
TOTAL REPURCHASE AGREEMENTS
(Cost $157,300,000) ........ 157,300,000
------------
See Accompanying Notes to Financial Statements.
15
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
GOVERNMENT OBLIGATIONS MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS (CONCLUDED)
FEBRUARY 28, 1997
(UNAUDITED)
VALUE
-------------
TOTAL INVESTMENTS AT VALUE--99.6%
(Cost $574,994,340*) ................. $574,994,340
OTHER ASSETS IN EXCESS
OF LIABILITIES -- 0.4% ............... 2,319,057
------------
NET ASSETS (Applicable to
191,007,843 Bedford shares,
46,301,694 Bradford
shares, 340,009,863
Janney Montgomery Scott
shares and 800
other shares) -- 100.0% .............. $577,313,397
============
NET ASSET VALUE, offering and
redemption price per share
($577,313,397 (DIVIDE) 577,320,200) .. $1.00
=====
* Also cost for Federal income tax purposes.
(DAGGER) Variable Rate Obligations -- The interest rate is the rate as of
February 28, 1997 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.
16
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
GOVERNMENT OBLIGATIONS MONEY MARKET PORTFOLIO
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED
FEBRUARY 28, 1997 (UNAUDITED)
INVESTMENT INCOME
Interest ............................... $15,401,603
-----------
EXPENSES
Investment advisory fees ............... 1,185,738
Distribution fees ...................... 1,676,849
Directors' fees ........................ 6,363
Custodian fees ......................... 52,982
Transfer agent fees .................... 270,566
Legal fees ............................. 12,957
Audit fees ............................. 7,094
Registration fees ...................... 116,000
Insurance expense ...................... 5,741
Printing expense ....................... 48,149
-----------
3,382,439
Less fees waived ....................... (355,487)
Less expense reimbursement by Advisor .. (200,690)
-----------
Total expenses ...................... 2,826,262
-----------
Net investment income ..................... 12,575,341
-----------
Realized gain on investments .............. 5,472
-----------
Net increase in net assets resulting
from operations ........................ $12,580,813
===========
STATEMENT OF CHANGES IN NET ASSETS
FOR THE FOR THE
SIX MONTHS ENDED YEAR ENDED
FEBRUARY 28, 1997 AUGUST 31, 1996
----------------- ---------------
(UNAUDITED)
Increase (decrease) in net assets:
Operations:
Net investment income ....... $ 12,575,341 $ 25,224,326
Net gain (loss) on
investments ............... 5,472 (10,995)
------------ ------------
Net increase in net assets
resulting from
operations ................ 12,580,813 25,213,331
------------ ------------
Distributions to Shareholders:
Dividends to shareholders from
net investment income:
Bedford shares ($.0219 and
$.0458 respectively,
per share) ................ (4,396,015) (8,829,111)
Bradford shares ($.0219 and
$.0458, respectively,
per share) ................ (1,010,118) (2,208,959)
Janney Montgomery Scott
shares ($.0218 and
$.0456, respectively,
per share) ................ (7,169,208) (14,186,256)
Distributions to shareholders
from net realized
short-term gains:
Bedford shares .............. -- (12,697)
Bradford shares ............. -- (3,154)
Janney Montgomery Scott
shares .................... -- (18,204)
------------ ------------
Total distributions to
shareholders ............ (12,575,341) (25,258,381)
------------ ------------
Net capital share
transactions ................ 20,760,920 44,099,699
------------ ------------
Total increase in net assets ... 20,766,392 44,054,649
Net Assets:
Beginning of period ......... 556,547,005 512,492,356
------------ ------------
End of period ............... $577,313,397 $556,547,005
============ ============
See Accompanying Notes to Financial Statements.
17
<PAGE>
THE BEDFORD 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 28, AUGUST 31, AUGUST 31, AUGUST 31, AUGUST 31, AUGUST 31,
1997 1996 1995 1994 1993 1992
------------ ---------- ---------- ----------- ----------- -----------
(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 ............. 0.0226 0.0469 0.0486 0.0278 0.0243 0.0375
Net gains on securities (both
realized and unrealized) ......... -- -- -- -- -- 0.0007
---------- ---------- -------- -------- -------- --------
Total from investment
operations .................... 0.0226 0.0469 0.0486 0.0278 0.0243 0.0382
---------- ---------- -------- -------- -------- --------
Less distributions:
Dividends (from net investment
income) .......................... (0.0226) (0.0469) (0.0486) (0.0278) (0.0243) (0.0375)
Distributions (from capital gains) -- -- -- -- -- (0.0007)
---------- ---------- -------- -------- -------- --------
Total distributions ............ (0.0226) (0.0469) (0.0486) (0.0278) (0.0243) (0.0382)
---------- ---------- -------- -------- -------- --------
Net asset value, end of period ...... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========== ========== ======== ======== ======== ========
Total Return ........................ 4.64%(c) 4.79% 4.97% 2.81% 2.46% 3.89%
Ratios /Supplemental Data
Net assets, end of period (000) ... $1,250,379 $1,109,334 $935,821 $710,737 $782,153 $736,842
Ratios of expenses to average
net assets ....................... .97%(a)(c) .97%(a) .96%(a) .95%(a) .95%(a) .95%(a)
Ratios of net investment income
to average net assets ............ 4.55%(c) 4.69% 4.86% 2.78% 2.43% 3.75%
</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 28, AUGUST 31, AUGUST 31, AUGUST 31, AUGUST 31, AUGUST 31,
1997 1996 1995 1994 1993 1992
------------- ---------- ---------- ---------- ---------- ----------
(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 .............. 0.0138 0.0288 0.0297 0.0195 0.0195 0.0287
Net gains on securities (both
realized and unrealized) .......... -- -- -- -- -- --
-------- -------- -------- -------- -------- --------
Total from investment
operations ..................... 0.0138 0.0288 0.0297 0.0195 0.0195 0.0287
-------- -------- -------- -------- -------- --------
Less distributions:
Dividends (from net investment
income) ........................... (0.0138) (0.0288) (0.0297) (0.0195) (0.0195) (0.0287)
Distributions (from capital gains) . -- -- -- -- -- --
-------- -------- -------- -------- -------- --------
Total distributions ............. (0.0138) (0.0288) (0.0297) (0.0195) (0.0195) (0.0287)
-------- -------- -------- -------- -------- --------
Net asset value, end of period ....... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ======== ========
Total Return ......................... 2.82%(c) 2.92% 3.01% 1.97% 1.96% 2.90%
Ratios /Supplemental Data
Net assets, end of period (000) .... $198,639 $201,940 $198,425 $182,480 $215,577 $176,950
Ratios of expenses to average
net assets ........................ .84%(a)(c) .84%(a) .82%(a) .77%(a) .77%(a) .77%(a)
Ratios of net investment income
to average net assets ............. 2.79%(c) 2.88% 2.97% 1.95% 1.95% 2.87%
<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 28, 1997, 1.14%, 1.17%, 1.16%,
1.19%, and 1.20% for the years ended August 31, 1996, 1995, 1994, 1993, and
1992, respectively. For the Municipal Money Market Portfolio, the ratios of
expenses to average net assets would have been 1.15% annualized for the six
months ended February 28, 1997, 1.12%, 1.14%, 1.12%, 1.16%, and 1.15% for
the years ended August 31, 1996, 1995, 1994, 1993 and 1992, respectively.
(b) Financial Highlights relate solely to the Bedford Class of shares within
each portfolio.
(c) Annualized.
</FN>
</TABLE>
See Accompanying Notes to Financial Statements.
18
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
FINANCIAL HIGHLIGHTS (b)
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
GOVERNMENT OBLIGATIONS 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 28, AUGUST 31, AUGUST 31, AUGUST 31, AUGUST 31, AUGUST 31,
1997 1996 1995 1994 1993 1992
------------ ---------- ---------- ----------- ----------- -----------
(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 .............. 0.0219 0.0458 0.0475 0.0270 0.0231 0.0375
Net gains on securities (both
realized and unrealized) .......... -- -- -- -- -- 0.0009
-------- -------- -------- -------- -------- --------
Total from investment
operations ..................... 0.0219 0.0458 0.0475 0.0270 0.0231 0.0384
-------- -------- -------- -------- -------- --------
Less distributions:
Dividends (from net investment
income) ........................... (0.0219) (0.0458) (0.0475) (0.0270) (0.0231) (0.0375)
Distributions (from
capital gains) .................... -- -- -- -- -- (0.0009)
-------- -------- -------- -------- -------- --------
Total distributions ............ (0.0219) (0.0458) (0.0475) (0.0270) (0.0231) (0.0384)
-------- -------- -------- -------- -------- --------
Net asset value, end of period ....... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ======== ========
Total Return ......................... 4.51%(c) 4.68% 4.86% 2.73% 2.33% 3.91%
Ratios/Supplemental Data:
Net assets, end of period (000) .... $191,039 $192,599 $163,398 $166,418 $213,741 $225,101
Ratios of expenses to average
net assets ........................ .975%(a)(c) .975%(a) .975%(a) .975%(a) .975%(a) .975%(a)
Ratios of net investment income
to average net assets ............. 4.42%(c) 4.58% 4.75% 2.70% 2.31% 3.75%
<FN>
(a) Without the waiver of advisory, distribution and administration 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 1.13% annualized for the six months ended
February 28, 1997, 1.10%, 1.13%, 1.17%, 1.18% and 1.12% for the years ended
August 31, 1996, 1995, 1994, and 1993, respectively and 1.15% annualized
for the period ended August 31, 1992.
(b) Financial Highlights relate solely to the Bedford Class of shares within
each portfolio.
(c) Annualized.
</FN>
</TABLE>
See Accompanying Notes to Financial Statements.
19
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
NOTES TO FINANCIAL STATEMENTS
FEBRUARY 28, 1997
(UNAUDITED)
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The RBB Fund, Inc. (the "Fund") is registered under the Investment Company
Act of 1940, as amended, as an open-end management investment company. The Fund
was incorporated in Maryland on February 29, 1988.
The Fund has authorized capital of thirty billion shares of common stock of
which 13.48 billion shares are currently classified into seventy-seven classes.
Each class represents an interest in one of nineteen investment portfolios of
the Fund. The classes have been grouped into sixteen separate "families," nine
of which have begun investment operations: the RBB Family, the BEA Family, the
Sansom Street Family, the Bedford Family, the Cash Preservation Family, Janney
Montgomery Scott Money Family, the n/i Family, the Boston Partners Family, and
the Bradford Family. The Bedford Family represents interests in four portfolios,
three of which are covered in this report.
A) SECURITY VALUATION -- Portfolio securities are valued under the
amortized cost method, which approximates current market value. Under this
method, securities are valued at cost when purchased and thereafter a
constant proportionate amortization of any discount or premium is recorded
until maturity of the security. Regular review and monitoring of the
valuation is performed in an attempt to avoid dilution or other unfair
results to shareholders. The Fund seeks to maintain net asset value per
share at $1.00 for these portfolios.
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
will be distributed at least annually. Income distributions and capital
gain distributions are determined in accordance with 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 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) REPURCHASE AGREEMENTS -- Money market instruments may be
purchased subject to the seller's agreement to repurchase them at an agreed
upon date and price. The seller will be required on a daily basis to
maintain the value of the securities subject to the agreement at not less
than the repurchase price. The agreements are conditioned upon the
collateral being deposited under the Federal Reserve book-entry system or
with the Fund's custodian or a third party sub-custodian.
F) USE OF ESTIMATES -- The preparation of financial statements in
conformity with generally accepted accounting principles requires
management to make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosure of contingent assets and
liabilities at the date of the financial statements and the reported
amounts of revenues and expenses during the reporting period. Actual
results could differ from those estimates.
20
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FEBRUARY 28, 1997
(UNAUDITED)
NOTE 2. TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES
Pursuant to Investment Advisory Agreements, PNC Institutional Management
Corporation ("PIMC"), a wholly 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 three portfolios described
herein. PNC Bank serves as the sub-advisor for the Money Market, the Municipal
Money Market and the Government Obligations Money Market Portfolios.
For its advisory services, PIMC is entitled to receive the following fees,
computed daily and payable monthly based on each of the three portfolio's
average daily net assets:
PORTFOLIO ANNUAL RATE
--------------------------- --------------------------------------------
Money Market and Government .45% of first $250 million of net assets;
Obligations Money Market .40% of next $250 million of net assets;
Portfolios .35% of net assets in excess of $500 million.
Municipal Money Market and .35% of first $250 million of net assets;
New York Municipal Money .30% of next $250 million of net assets;
Market Portfolios .25% of net assets in excess of $500 million.
PIMC may, at its discretion, voluntarily waive all or any portion of its
advisory fee for these 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 28, 1997, advisory fees and waivers for
the three investment portfolios were as follows:
GROSS NET
ADVISORY ADVISORY
FEE WAIVER FEE
---------- ------------ -----------
Money Market Portfolio $4,223,251 $(1,828,828) $2,394,423
Municipal Money Market
Portfolio 712,521 (674,721) 37,800
Government Obligations
Money Market Portfolio 1,185,738 (355,487) 830,251
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
Corp., serves as each class's transfer and dividend disbursing agent.
21
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FEBRUARY 28, 1997
(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
28, 1997, 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>
Money Market Portfolio
Bedford Class $ 910,000 $ -- $ 910,000
Cash Preservation Class 5,504 (2,975) 2,529
Janney Montgomery Scott Class 601,086 -- 601,086
RBB Class 3,750 (3,651) 99
Sansom Street Class 185,431 -- 185,431
---------- ----------- ----------
Total Money Market Portfolio $1,705,771 $ (6,626) $1,699,145
========== =========== ==========
Municipal Money Market Portfolio
Bedford Class $ 55,234 $ -- $ 55,234
Bradford Class 10,114 -- 10,114
Cash Preservation Class 4,500 (4,335) 165
Janney Montgomery Scott Class 21,693 -- 21,693
RBB Class 1,755 (1,580) 175
---------- ----------- ----------
Total Municipal Money Market Portfolio $ 93,296 $ (5,915) $ 87,381
========== =========== ==========
Government Obligations Money Market Portfolio
Bedford Class $ 31,956 $ -- $ 31,956
Bradford Class 1,100 -- 1,100
Janney Montgomery Scott Class 237,510 -- 237,510
---------- ----------- ----------
Total Government Obligations Money
Market Portfolio $ 270,566 -- $ 270,566
========== =========== ==========
</TABLE>
In addition, PFPC serves as administrator for the Municipal Money Market
Portfolio. The administration fee is computed daily and payable monthly at an
annual rate of .10% of the Portfolio's average daily assets. For the six months
ended February 28, 1997, the administration fee for the Municipal Money Market
Portfolio was $216,844.
The Fund, on behalf of each class of shares within the three 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.
22
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FEBRUARY 28, 1997
(UNAUDITED)
NOTE 2. TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES (CONTINUED)
For the six months ended February 28, 1997, distribution fees for each
class were as follows:
DISTRIBUTION
FEE
-----------
Money Market Portfolio
Bedford Class $ 3,125,194
Cash Preservation Class 393
Janney Montgomery Scott Class 1,825,638
RBB Class 114
Sansom Street Class 170,854
-----------
Total Money Market Portfolio $ 5,122,193
===========
Municipal Money Market Portfolio
Bedford Class $ 548,593
Bradford Class 412,774
Cash Preservation Class 179
Janney Montgomery Scott Class 292,950
RBB Class 8
-----------
Total Municipal Money Market Portfolio $ 1,254,504
===========
Government Obligations Money Market Portfolio
Bedford Class $ 559,976
Bradford Class 137,216
Janney Montgomery Scott Class 979,657
-----------
Total Government Obligations Money Market Portfolio $ 1,676,849
===========
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 28, 1997, service
organization fees were $243,692 for the Money Market Portfolio.
23
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FEBRUARY 28, 1997
(UNAUDITED)
NOTE 3. CAPITAL SHARES
Transactions in capital shares (at $1.00 per capital share) for each period
were as follows:
<TABLE>
<CAPTION>
MUNICIPAL MONEY MARKET
MONEY MARKET PORTFOLIO PORTFOLIO
---------------------------------- ----------------------------------
FOR THE FOR THE
SIX MONTHS FOR THE SIX MONTHS FOR THE
ENDED YEAR ENDED ENDED YEAR ENDED
FEBRUARY 28, 1997 AUGUST 31,1996 FEBRUARY 28, 1997 AUGUST 31, 1996
----------------- --------------- ----------------- ---------------
(UNAUDITED) (UNAUDITED)
VALUE VALUE VALUE VALUE
----------------- --------------- ----------------- ---------------
<S> <C> <C> <C> <C>
Shares sold:
Bedford Class $ 2,056,550,608 $ 3,797,592,288 $ 578,025,438 $ 1,022,457,772
Bradford Class -- -- 316,528,520 479,401,891
Cash Preservation Class 127,911 122,344 46,523 171,907
Janney Montgomery
Scott Class 1,459,413,851 2,359,936,867 206,342,738 408,374,271
RBB Class 4,744 584,206 200 69,480
Sansom Street Class 911,854,917 2,191,596,362 -- --
Shares issued in
reinvestment of dividends:
Bedford Class 26,659,535 49,290,088 2,771,563 5,847,767
Bradford Class -- -- 1,877,757 3,506,714
Cash Preservation Class 4,494 10,084 1,151 3,515
Janney Montgomery
Scott Class 13,870,907 24,077,173 1,370,883 2,602,869
RBB Class 1,361 2,625 53 143
Sansom Street Class 9,516,045 18,389,361 -- --
Shares repurchased:
Bedford Class (1,942,165,988) (3,673,362,904) (584,102,601) (1,024,790,222)
Bradford Class -- -- (292,305,157) (464,445,579)
Cash Preservation Class (58,181) (165,733) (79,206) (220,929)
Janney Montgomery
Scott Class (1,372,242,482) (2,265,789,890) (193,777,346) (434,775,023)
RBB Class (67,517) (580,821) (5,396) (69,419)
Sansom Street Class (903,693,196) (2,127,237,313) -- --
--------------- --------------- ------------- ---------------
Net increase (decrease) $ 259,777,009 $ 374,464,737 $ 36,695,120 $ (1,864,843)
=============== =============== ============= ===============
Bedford Shares authorized 1,500,000,000 1,500,000,000 500,000,000 500,000,000
=============== =============== ============= ===============
</TABLE>
24
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FEBRUARY 28, 1997
(UNAUDITED)
NOTE 3. CAPITAL SHARES (CONTINUED)
GOVERNMENT OBLIGATIONS
MONEY MARKET PORTFOLIO
----------------------------------
FOR THE
SIX MONTHS FOR THE
ENDED YEAR ENDED
FEBRUARY 28, 1997 AUGUST 31, 1996
----------------- ---------------
(UNAUDITED)
VALUE VALUE
----------------- ---------------
Shares sold:
Bedford Class $ 270,989,111 $ 663,889,198
Bradford Class 84,417,833 180,761,217
Janney Montgomery
Scott Class 621,135,426 1,160,250,876
Shares issued in
reinvestment of dividends:
Bedford Class 4,438,059 8,793,104
Bradford Class 982,160 2,158,629
Janney Montgomery
Scott Class 7,249,312 14,080,097
Shares repurchased:
Bedford Class (277,022,343) (643,470,937)
Bradford Class (96,290,034) (172,234,746)
Janney Montgomery
Scott Class (595,138,604) (1,170,127,739)
------------- ---------------
Net increase (decrease) $ 20,760,920 $ 44,099,699
============= ===============
Bedford Shares authorized 500,000,000 500,000,000
============= ===============
NOTE 4. NET ASSETS
At February 28, 1997, net assets consisted of the following: (Unaudited)
<TABLE>
<CAPTION>
GOVERNMENT
MUNICIPAL OBLIGATIONS
MONEY MARKET MONEY MARKET MONEY MARKET
PORTFOLIO PORTFOLIO PORTFOLIO
-------------- ------------ ------------
<S> <C> <C> <C>
Capital paid-in
Bedford Class $1,250,395,889 $198,704,009 $191,007,843
Bradford Class -- 155,499,701 46,301,694
Cash Preservation Class 276,583 84,233 --
Janney Montgomery Scott Class 662,915,523 103,362,447 340,009,863
Sansom Street Class 542,045,165 -- --
Other Classes 800 800 800
Accumulated net realized gain (loss)
on investments
Bedford Class (23,975) (69,802) (2,438)
Bradford Class -- 339 (821)
Cash Preservation Class (4) 5 --
Janney Montgomery Scott Class (11,305) 1,734 (3,544)
Sansom Street Class (11,138) -- --
-------------- ------------ ------------
$2,455,587,538 $457,583,466 $577,313,397
============== ============ ============
</TABLE>
25
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FEBRUARY 28, 1997
(UNAUDITED)
NOTE 5. OTHER FINANCIAL HIGHLIGHTS
The Fund currently offers four other classes of shares representing
interests in the Money Market Portfolio: Cash Preservation, Janney Montgomery
Scott, RBB and Sansom Street. The Fund currently offers four other classes of
shares representing interests in the Municipal Money Market Portfolio: Bradford,
Cash Preservation, Janney Montgomery Scott and RBB. The Fund currently offers
two other class of shares representing an interest in the Government Obligations
Money Market Portfolio: Bradford and Janney Montgomery Scott. Each class is
marketed to different types of investors. Financial Highlights of the RBB and
Cash Preservation Classes are not presented in this report due to their
immateriality. Such information is available in the annual reports of each
respective family. The financial highlights of certain of the other classes are
as follows:
BRADFORD GOVERNMENT OBLIGATIONS MONEY MARKET SHARES
<TABLE>
<CAPTION>
FOR THE PERIOD
FOR THE FOR THE FOR THE FOR THE FOR THE JANUARY 10, 1992
SIX MONTHS YEAR YEAR YEAR YEAR COMMENCEMENT OF
ENDED ENDED ENDED ENDED ENDED OPERATIONS) TO
FEBRUARY 28, AUGUST 31, AUGUST 31, AUGUST 31, AUGUST 31, AUGUST 31,
1997 1996 1995 1994 1993 1992
------------ ----------- ----------- ----------- ----------- ----------------
(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 ................. 0.0219 0.0458 0.0475 0.0270 0.0231 0.0208
Net gains on securities
(both realized and unrealized) ...... -- -- -- -- -- 0.0009
-------- -------- -------- -------- -------- --------
Total from investment operations .... 0.0219 0.0458 0.0475 0.0270 0.0231 0.0217
-------- -------- -------- -------- -------- --------
Less distributions
Dividends (from net
investment income) ................... (0.0219) (0.0458) (0.0475) (0.0270) (0.0231) (0.0208)
Distributions (from capital gains) ...... -- -- -- -- -- (0.0009)
-------- -------- -------- -------- -------- --------
Total distributions ................. (0.0219) (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 $ 1.00
======== ======== ======== ======== ======== ========
Total Return ............................ 4.51%(b) 4.68% 4.86% 2.73% 2.33% 3.42%(b)
Ratios /Supplemental Data
Net assets, end of period (000) ....... $46,262 $57,190 $46,509 $39,732 $50,523 $42,477
Ratios of expenses to
average net assets .................. .975%(a)(b) .975%(a) .975%(a) .975%(a) .975%(a) .975%(a)(b)
Ratios of net investment
income to average
net assets .......................... 4.42%(b) 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 1.13% annualized for the six months ended February 28,
1997, 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
ended August 31, 1992.
(b) Annualized.
</FN>
</TABLE>
26
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FEBRUARY 28, 1997
(UNAUDITED)
NOTE 5. OTHER FINANCIAL HIGHLIGHTS (CONTINUED)
BRADFORD MUNICIPAL MONEY MARKET SHARES
<TABLE>
<CAPTION>
FOR THE PERIOD
FOR THE FOR THE FOR THE FOR THE FOR THE JANUARY 10, 1992
SIX MONTHS YEAR YEAR YEAR YEAR COMMENCEMENT OF
ENDED ENDED ENDED ENDED ENDED OPERATIONS) TO
FEBRUARY 28, AUGUST 31, AUGUST 31, AUGUST 31, AUGUST 31, AUGUST 31,
1997 1996 1995 1994 1993 1992
------------ ----------- ----------- ----------- ----------- ----------------
(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............... 0.0138 0.0288 0.0297 0.0195 0.0195 0.0154
-------- -------- -------- -------- -------- --------
Total from investment operations.. 0.0138 0.0288 0.0297 0.0195 0.0195 0.0154
-------- -------- -------- -------- -------- --------
Less distributions
Dividends (from net
investment income) ............... (0.0138) (0.0288) (0.0297) (0.0195) (0.0195) (0.0154)
-------- -------- -------- -------- -------- --------
Total distributions............... (0.0138) (0.0288) (0.0297) (0.0195) (0.0195) (0.0154)
-------- -------- -------- -------- -------- --------
Net asset value, end of period ........... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ======== ========
Total Return ......................... 2.82%(b) 2.92% 3.01% 1.97% 1.96% 2.42%(b)
Ratios /Supplemental Data
Net assets, end of period (000) .... $155,496 $129,399 $110,936 $100,089 $76,975 $69,586
Ratios of expenses to average
net assets ....................... .84%(a)(b) .84%(a) .82%(a) .77%(a) .77%(a) .77%(a)(b)
Ratios of net investment income to
average net assets ............... 2.79%(b) 2.88% 2.97% 1.95% 1.95% 2.40%(b)
<FN>
(a) Without the waiver of advisory, transfer agency and administration fees and
without the reimbursement of certain operating expenses, the ratio of
expenses to average net assets would have been 1.15% annualized for the six
months ended February 28, 1997, 1.12%, 1.14%, 1.11% and 1.16% for the years
ended August 31, 1996, 1995, 1994 and 1993, respectively, and 1.16%
annualized for the period ended August 31, 1992.
(b) Annualized.
</FN>
</TABLE>
27
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FEBRUARY 28, 1997
(UNAUDITED)
NOTE 5. OTHER FINANCIAL HIGHLIGHTS (CONTINUED)
THE JANNEY MONTGOMERY SCOTT FAMILY
<TABLE>
<CAPTION>
MUNICIPAL MONEY
MONEY MARKET PORTFOLIO MARKET PORTFOLIO
------------------------------------------------ -------------------------------------------
FOR THE PERIOD FOR THE PERIOD
FOR THE FOR THE JUNE 12, 1995 FOR THE FOR THE JUNE 12, 1995
SIX MONTHS YEAR (COMMENCEMENT SIX MONTHS YEAR (COMMENCEMENT
ENDED ENDED OF OPERATIONS) ENDED ENDED OF OPERATIONS)
FEBRUARY 28, AUGUST 31, TO AUGUST 31, FEBRUARY 28, AUGUST 31, TO AUGUST 31,
1997 1996 1995 1997 1996 1995
------------ ---------- -------------- ------------ ---------- --------------
(UNAUDITED) (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 ......... 0.0224 0.0465 0.0112 0.0138 0.0278 0.0063
------- ------- ------- ------- ------- -------
Total from investment
operations .............. 0.0224 0.0465 0.0112 0.0138 0.0278 0.0063
------- ------- ------- ------- ------- -------
Less distributions
Dividends (from net
investment income) .......... (0.0224) (0.0465) (0.0112) (0.0138) (0.0278) (0.0063)
------- ------- ------- ------- ------- -------
Total distributions ....... (0.0224) (0.0465) (0.0112) (0.0138) (0.0278) (0.0063)
------- ------- ------- ------- ------- -------
Net asset value,
end of period ............... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======= ======= ======= ======= ======= =======
Total Return .................. 4.62%(b) 4.76% 5.30%(b) 2.82%(b) 2.81% 2.87%(b)
Ratios /Supplemental Data
Net assets, end of
period (000) .............. $662,899 $561,865 $443,645 $103,364 $89,428 $113,226
Ratios of expenses
to average
net assets ................ 1.00%(a)(b) 1.00%(a) 1.00%(a)(b) 0.86%(a)(b) 0.94%(a) 1.00%(a)(b)
Ratios of net investment
income to average
net assets ................ 4.52%(b) 4.65% 5.04%(b) 2.79%(b) 2.78% 2.83%(b)
</TABLE>
GOVERNMENT OBLIGATIONS
MONEY MARKET PORTFOLIO
----------------------------------------------
FOR THE PERIOD
FOR THE FOR THE JUNE 12, 1995
SIX MONTHS YEAR (COMMENCEMENT
ENDED ENDED OF OPERATIONS)
FEBRUARY 28, AUGUST 31, TO AUGUST 31,
1997 1996 1995
------------ ---------- --------------
(UNAUDITED)
Net asset value,
beginning of period ......... $ 1.00 $ 1.00 $ 1.00
------- ------- -------
Income from investment
operations:
Net investment income ......... 0.0218 0.0456 0.0109
------- ------- -------
Total from investment
operations .............. 0.0218 0.0456 0.0109
------- ------- -------
Less distributions
Dividends (from net
investment income) .......... (0.0218) (0.0456) (0.0109)
------- ------- -------
Total distributions ....... (0.0218) (0.0456) (0.0109)
------- ------- -------
Net asset value,
end of period ............... $ 1.00 $ 1.00 $ 1.00
======= ======= =======
Total Return .................. 4.48%(b) 4.66% 5.03%(b)
Ratios /Supplemental Data
Net assets, end of
period (000) .............. $340,012 $306,757 $302,585
Ratios of expenses
to average
net assets ................ 1.00%(a)(b) 1.00%(a) 1.00%(a)(b)
Ratios of net investment
income to average
net assets ................ 4.39%(b) 4.56% 4.91%(b)
(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 1.24% annualized for the six months ended February 28, 1997, and
1.23%, 1.23% for the years ended August 31, 1996 and 1995, respectively.
For the Municipal Money Market Portfolio, the ratio of expenses to average
net assets would have been 1.17% annualized for the six months ended
February 28, 1997, 1.23%, 1.30% for the years ended August 31, 1996 and
1995, respectively. For the Government Obligations Money Market Portfolio,
the ratio of expenses to average net assets would have been 1.25%
annualized for the six months ended February 28, 1997, and 1.25%, 1.28% for
the years ended August 31, 1996 and 1995 respectively.
(b) Annualized.
28 & 29
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONCLUDED)
FEBRUARY 28, 1997
(UNAUDITED)
NOTE 5. OTHER FINANCIAL HIGHLIGHTS (CONTINUED)
THE SANSOM STREET FAMILY
<TABLE>
<CAPTION>
Money Market Portfolio
------------------------------------------------------------------------------
FOR THE
SIX MONTHS FOR THE FOR THE FOR THE FOR THE FOR THE
ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
FEBRUARY 28, AUGUST 31, AUGUST 31, AUGUST 31, AUGUST 31, AUGUST 31,
1997 1996 1995 1994 1993 1992
------------ ---------- ---------- ---------- ---------- ----------
(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 ........................... 0.0250 0.0518 0.0543 0.0334 0.0304 0.0435
Net gains on securities
(both realized and unrealized) ................. -- -- -- -- -- 0.0007
------- ------- ------- ------- ------- -------
Total from investment operations ............. 0.0250 0.0518 0.0543 0.0334 0.0304 0.0442
------- ------- ------- ------- ------- -------
Less distributions
Dividends (from net investment income) .......... (0.0250) (0.0518) (0.0543) (0.0334) (0.0304) (0.0435)
Distributions (from capital gains) .............. -- -- -- -- -- (0.0007)
------- ------- ------- ------- ------- -------
Total distributions .......................... (0.0250) (0.0518) (0.0543) (0.0334) (0.0304) (0.0442)
------- ------- ------- ------- ------- -------
Net asset value, end of period .................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======= ======= ======= ======= ======= =======
Total Return ...................................... 5.15%(b) 5.30% 5.57% 3.39% 3.08% 4.51%
Ratios /Supplemental Data
Net assets, end of period ....................... $542,034 $524,359 $441,614 $373,745 $190,794 $228,079
Ratios of expenses to average net assets ........ .49%(a)(b) .48%(a) .39%(a) .39%(a) .34%(a) .35%(a)
Ratios of net investment income to
average net assets .............................. 5.03%(b) 5.18% 5.43% 3.34% 3.04% 4.35%
<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 Money Market Portfolio would have been .66% for six months ended
February 28, 1997, .65%, .59%, .60%, .60% and .61% for the years ended
August 31, 1996, 1995, 1994, 1993 and 1992 respectively.
(b) Annualized.
</FN>
</TABLE>
30
