================================================================================
KENNEDY CABOT
[LOGO OMITTED]
SEMI-ANNUAL
REPORT FOR
THE BEDFORD SHARES
MONEY MARKET PORTFOLIO
- --------------------------------------------------------------------------------
MUNICIPAL MONEY MARKET PORTFOLIO
- --------------------------------------------------------------------------------
GOVERNMENT OBLIGATIONS
MONEY MARKET PORTFOLIO
FEBRUARY 28, 1998
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<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
SEMI-ANNUAL INVESTMENT ADVISER'S REPORT
Market participants were pleasantly surprised last year as the stock market
again racked up double digit gains, the bond market saw long-term interest rates
fall to near record lows and money market fund assets grew by 20% to over $1
trillion. Early in 1997, these robust results were not widely expected. The
nation's economy was expanding at almost a 5% pace and higher prices for goods
and services were clearly anticipated. The Federal Reserve seemed biased towards
tightening monetary policy, in what they suggested would be a preemptive move
against future inflationary pressures. On March 25, the Fed raised short-term
rates by 25 basis points to 5.50% and with the benefit of perfect hindsight,
their action clearly achieved the desired results. The economy slowed to a 3.1%
pace in the third quarter and 3.9% in the fourth quarter, while inflation fell
to its lowest level in a decade. Wholesale prices, in fact, actually declined
1.2% in 1997, while consumer prices rose only 1.7%. As the year came to an end,
the financial crisis among the Asian economies became a significant influencer
of global economics and the direction of interest rates. U.S. fixed income
securities did well, as a flight to quality and safety unfolded. In January, the
30-year treasury bond fell to a record low of 5.70%. Sentiment towards monetary
policy also shifted, given Mr. Greenspan's comments about deflation, and some
Fed watchers even began to talk about the possibility of an easing of monetary
policy.
Short-term taxable interest rates traded in a narrow range in 1997, as the
Federal Reserve made only one change to monetary policy. Early in the year, the
yield curve inside of one year was positively sloped, reflecting the widely held
view that the Fed would tighten monetary policy. While overnight rates held near
5.50%, one-year maturities reached a peak near 6.25%. This scenario encouraged
the funds to extend portfolio maturities to the 50-60 day range. The second half
of the year, however, was a different story. Low inflation and the concerns over
the Asian crisis precipitated a significant flattening of the money market yield
curve. The 50-75 basis point spread available earlier in the year declined to
10-15 basis points in the fourth and early first quarters. The Treasury market
experienced an even more dramatic shift, as the yield curve inverted. Portfolio
maturities were shortened in this environment, with particular focus given to
issuer credit quality and the deteriorating Asian economies.
At the end of February, assets in the Money Market Portfolio stood at
$3,013,021,180, increasing from $2,700,025,629 last August.
Tax-exempt yields showed continued volatility during the latter half of
1997 as seasonal pressures and supply and demand factors dominated the market.
Quarter-end window dressing pressures forced variable rate yields higher on a
temporary basis, while the payments of quarterly Treasury bond coupon interest
supplied cash to the market, driving yields down. Corporations were also active
participants in the tax-free money markets, purchasing municipals when they were
attractive on an after-tax basis, and liquidating them when tax-free rates
declined.
Investment strategy during the period emphasized a laddered maturity
approach, in anticipation of seasonal fund asset volatility. Variable rate
demand notes generally comprised 55-65% of the Fund's two tax-free portfolios,
as these securities offered liquidity to meet fund activity while also providing
attractive yields. During the six months ended February 28, yields on variable
rate securities ranged from a high of 4.12% on December 24, 1997 to a low of
2.81% on February 11, 1998. General market note purchases increased during the
period as supply grew and yields increased. Due to an unchanged Fed policy
during the last six months of the year, notes traded in a narrow range of 35
basis points, between 3.51% and 3.86%.
At the end of February, total net assets in the Municipal Money Market
Portfolio were $320,583,285. The investment strategy for the fund emphasized
liquidity in anticipation of expected redemptions this spring. The average
weighted maturities of Municipal Money Market Portfolio, therefore, have been
shorter than the index and at the end of the period stood at 36 and 18 days,
respectively.
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, 1998
(UNAUDITED)
PAR
(000) VALUE
-------- ------------
AGENCY OBLIGATIONS--0.7%
Student Loan Marketing Association(DAGGER)
5.718% 03/03/98 ........................ $ 10,000 $ 10,000,000
5.728% 03/03/98 ........................ 10,000 10,000,000
------------
TOTAL AGENCY OBLIGATIONS
(Cost $20,000,000) ................. 20,000,000
------------
CERTIFICATES OF DEPOSIT--17.4%
BANK NOTES--3.3%
First National Bank of Boston
5.700% 04/06/98 ........................ 25,000 25,000,000
5.800% 04/27/98 ........................ 75,000 75,000,000
------------
100,000,000
------------
BANKS--2.2%
Banque Paribas
5.530% 05/04/98 ........................ 25,000 24,998,560
Credit Suisse
6.240% 04/08/98 ........................ 40,000 40,007,055
------------
65,005,615
------------
DOMESTIC CERTIFICATES OF DEPOSIT--5.0%
Bankers Trust Co.
5.980% 06/19/98 ........................ 50,000 49,997,155
5.820% 07/31/98 ........................ 25,000 24,997,025
5.880% 08/11/98 ........................ 25,000 24,996,796
Chase Manhattan Bank-Delaware
5.710% 03/09/98 ........................ 50,000 50,000,000
------------
149,990,976
------------
YANKEE DOLLAR CERTIFICATES OF DEPOSIT--6.9%
Banque Nationale de Paris
5.860% 08/10/98 ........................ 25,000 24,993,635
Banque Paribas
5.560% 05/26/98 ........................ 25,000 25,000,000
Canadian Imperial Bank of Commerce
5.660% 02/26/99 ........................ 40,000 39,980,989
Deutsche Bank
6.000% 03/25/98 ........................ 50,000 50,005,942
Royal Bank of Canada
6.200% 04/06/98 ........................ 19,000 19,002,366
5.940% 06/25/98 ........................ 25,000 24,995,439
PAR
(000) VALUE
-------- ------------
YANKEE DOLLAR CERTIFICATES OF DEPOSIT--(CONTINUED)
Societe Generale
5.780% 10/08/98 ............................ $ 125,000 $ 24,974,541
------------
208,952,912
------------
TOTAL CERTIFICATES OF DEPOSIT
(Cost $523,949,503) .................... 523,949,503
------------
COMMERCIAL PAPER--51.1%
ASSET BACKED SECURITIES--7.8%
CXC, Inc.
5.470% 04/01/98 ............................ 50,000 49,764,486
5.470% 04/20/98 ............................ 50,000 49,620,139
Receivables Capital Corp.
5.500% 04/06/98 ............................ 45,082 44,834,049
Windmill Funding
5.520% 03/02/98 ............................ 50,000 49,992,333
5.550% 04/24/98 ............................ 40,517 40,179,696
------------
234,390,703
------------
BANKS--8.7%
AB Spintab Swedmortgage
5.740% 04/07/98 ............................ 50,000 49,705,028
5.740% 04/15/98 ............................ 30,000 29,784,750
5.470% 05/12/98 ............................ 25,000 24,726,500
5.450% 06/09/98 ............................ 30,000 29,545,833
AMRO N.A. Finance Inc.
5.560% 05/01/98 ............................ 50,000 49,528,944
Unifunding Inc.
5.570% 03/03/98 ............................ 30,000 29,990,717
5.630% 04/22/98 ............................ 50,000 49,593,389
------------
262,875,161
------------
BUSINESS CREDIT INSTITUTIONS--1.8%
Enterprise Funding Corp.
5.570% 04/06/98 ............................ 38,728 38,512,285
5.480% 04/14/98 ............................ 17,179 17,063,939
------------
55,576,224
------------
CONGLOMERATES--1.6%
BTR Dunlop Finance Inc. PLC
5.450% 05/14/98 ............................ 50,000 49,439,861
------------
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, 1998
(UNAUDITED)
PAR
(000) VALUE
-------- ------------
FINANCE LESSORS--3.3%
General Electric Capital Corp.
5.450% 06/11/98 ............................. $100,000 $ 98,455,833
------------
FINANCE SERVICES--4.2%
Barton Capital Corp.
5.540% 04/06/98 ............................. 32,517 32,336,856
5.490% 04/14/98 ............................. 45,000 44,698,050
Old Line Funding Corp.
5.520% 03/09/98 ............................. 50,000 49,938,667
------------
126,973,573
------------
FOOD & KINDRED PRODUCTS--2.7%
Diageo Capital PLC
5.450% 05/11/98 ............................. 25,000 24,731,285
5.470% 04/29/98 ............................. 25,000 24,775,882
Grand Metropolitan Capital Corp.
5.620% 04/15/98 ............................. 33,000 32,768,175
------------
82,275,342
------------
HOUSEHOLD AUDIO & VIDEO EQUIPMENT--0.8%
Toshiba America, Inc.
5.470% 05/15/98 ............................. 25,000 24,715,104
------------
MISCELLANEOUS BUSINESS CREDIT INSTITUTIONS--1.7%
Unifunding Inc.
5.480% 03/09/98 ............................. 50,000 49,939,111
------------
MOTOR VEHICLES & CAR BODIES--2.5%
Daimler-Benz North America Corp.
5.480% 03/06/98 ............................. 75,000 74,942,917
------------
SECURITY BROKERS & DEALERS--7.6%
Lehman Brothers Holdings Inc.
5.520% 03/18/98 ............................. 50,000 49,869,667
Merrill Lynch & Co. Canandian DCP
5.610% 03/04/98 ............................. 50,000 49,976,625
Morgan Stanley Group, Inc.
5.430% 04/09/98 ............................. 50,000 49,705,875
Lehman Brothers Holdings Inc.
5.520% 05/28/98 ............................. 40,000 39,460,267
Morgan Stanley Group, Inc.
5.400% 07/23/98 ............................. 40,000 39,136,000
------------
228,148,434
------------
PAR
(000) VALUE
-------- --------------
SHORT-TERM BUSINESS CREDIT INSTITUTIONS--4.3%
Asset Securitization Coop Corp.
5.550% 04/06/98 .......................... $ 50,000 $ 49,722,500
Delaware Funding Corp.
5.570% 03/16/98 .......................... 30,523 30,452,161
Sears Roebuck Acceptance Corp.
5.460% 05/19/98 .......................... 50,000 49,400,917
--------------
129,575,578
--------------
WHOLESALE - MISCELLANEOUS DURABLE GOODS--2.5%
Mitsubishi International Corp.
5.510% 05/28/98 .......................... 25,000 24,663,278
5.560% 04/28/98 .......................... 25,000 24,776,055
5.560% 04/30/98 .......................... 25,000 24,768,333
--------------
74,207,666
--------------
WHOLESALE GROCERIES & RELATED GOODS--1.6%
Mitsubishi International Corp.
5.510% 05/29/98 .......................... 50,000 49,318,903
--------------
TOTAL COMMERCIAL PAPER
(Cost $1,540,834,410) ................ 1,540,834,410
--------------
MUNICIPAL BONDS--2.7%
FLORIDA--0.1%
Coral Springs,VRDN IDR (Suntrust)(DAGGER)
5.600% 03/04/98 .......................... 2,700 2,700,000
--------------
GEORGIA--0.3%
De Kalb County Development
Authority VRDN Series 1995 B
(Emory University Project)(DAGGER)
5.600% 02/28/98 .......................... 9,485 9,485,000
--------------
ILLINOIS--0.2%
Illinois Health Facilities Authority
Convertible/ VRDN Revenue Bond
(The Streeterville Corp. Project)
Series 1993-B(DAGGER)
5.700% 03/04/98 .......................... 4,400 4,400,000
--------------
INDIANA--0.2%
Bremen, Inc. TARN VRDN Series
1996 B (Society National Bank,
Cleveland)(DAGGER)
5.610% 03/05/98 .......................... 4,400 4,400,000
--------------
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, 1998
(UNAUDITED)
PAR
(000) VALUE
-------- ------------
KENTUCKY--0.1%
Boone County Taxable IDR Refunding
Bonds VRDN (Square D Company
Project) Series 1994-B(DAGGER)
5.700% 03/04/98 ....................... $ 4,200 $ 4,200,000
-----------
MISSISSIPPI--0.9%
Hinds County, IDR Revenue Bond
VRDN Series 1992(DAGGER)
5.600% 03/04/98 ....................... 1,860 1,860,000
Mississippi Business Finance Corp.
IDR Revenue Bond VRDN (Dana
Lighting Project) Series 1995(DAGGER)
5.600% 03/07/98 ....................... 6,100 6,100,000
Mississippi Business Finance Corp.
Taxable IDR Revenue Bond VRDN
(Bryan Foods, Inc. Project)
Series 1994(DAGGER)
5.700% 03/04/98 ....................... 14,000 14,000,000
Mississippi Business Finance Corp.
Taxable IDR Revenue Bond VRDN
Series 1995(DAGGER)
5.600% 03/07/98 ....................... 7,000 7,000,000
-----------
28,960,000
-----------
NORTH CAROLINA--0.4%
City of Asheville Tax Corp. VRDN(DAGGER)
5.650% 03/04/98 ....................... 11,700 11,700,000
-----------
TEXAS--0.5%
South Central Texas Industrial
Development Corp. Taxable IDR
Revenue Bond VRDN (Rohr
Industries Project Series 1990)(DAGGER)
5.700% 03/04/98 ....................... 14,800 14,800,000
-----------
TOTAL MUNICIPAL BONDS
(Cost $80,645,000) ................ 80,645,000
-----------
PAR
(000) VALUE
-------- ------------
MEDIUM TERM NOTES--15.2%
BANKS--3.3%
Skandinaviska Enskilda Banken
Funding Inc.(DAGGER)
5.550% 03/12/98 ................... $ 50,000 $ 49,974,367
Skandinaviska Enskilda(DAGGER)
5.610% 02/25/99 ................... 50,000 49,981,031
------------
99,955,398
------------
FINANCE SERVICES--6.1%
General American Life(DAGGER)
5.820% 03/02/98 ................... 50,000 50,000,000
SMM Trust 1997-A(DAGGER)
5.906% 03/23/98 ................... 20,000 20,000,000
SMM Trust 1997-L(DAGGER)
5.625% 03/29/98 ................... 13,200 13,200,000
SMM Trust 1997-X(DAGGER)
5.625% 03/12/98 ................... 100,000 100,000,000
------------
183,200,000
------------
SECURITY BROKERS & DEALERS--4.8%
Bear Stearns Companies, Inc.(DAGGER)
5.601% 03/06/98 ................... 25,000 25,000,000
5.595% 03/24/98 ................... 40,000 40,000,000
5.605% 03/26/98 ................... 30,000 30,000,000
Lehman Brothers Holdings, Inc.(DAGGER)
5.958% 03/05/98 ................... 50,000 50,000,000
------------
145,000,000
------------
SERVICES - AUTO RENT & LEASE--1.0%
PHH Corp(DAGGER)
5.565% 03/13/98 ................... 30,000 29,991,082
------------
TOTAL MEDIUM TERM NOTES
(Cost $458,146,480) ........... 458,146,480
------------
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, 1998
(UNAUDITED)
PAR
(000) VALUE
-------- ------------
REPURCHASE AGREEMENTS--12.4%
Goldman Sachs & Co.
(Agreement dated 02/27/98 to be
repurchased at $100,047,083,
collateralized by $85,579,720
Federal Home Loan Mortgage
Corporation due 09/15/04 to
11/15/23 and $63,500,000 Federal
National Mortgage Association
due 04/25/23. Market value of
collateral is $103,000,000.)
5.650% 03/02/98 ......................... $100,000 $ 100,000,000
Lehman Government Securities Inc.
(Agreement dated 02/27/98 to be
repurchased at $100,045,000,
collateralized by $71,305,000
Federal Home Loan Mortgage
Corporation due 10/15/22 to
01/15/26 and $62,778,948 Federal
National Mortgage Association
due 10/25/08 to 10/25/22. Market
value of collateral is
$103,003,354.)
5.400% 03/02/98 ......................... 100,000 100,000,000
Swiss Bank Corp.
(Agreement dated 02/27/98 to be
repurchased at $75,034,625 and
$100,047,333, respectively,
collateralized by $77,625,000
Government National Mortgage
Association due 10/20/27 and
$102,914,000 Federal National
Mortgage Association due 01/01/28.
Market value of collateral is
$184,783,604.)
5.540% 03/02/98 .......................... 75,000 75,000,000
5.680% 03/02/98 .......................... 100,000 100,000,000
------------
TOTAL REPURCHASE
AGREEMENTS
(Cost $375,000,000) .................. 375,000,000
------------
TOTAL INVESTMENTS--99.5%
(Cost $2,998,575,393) .................... 2,998,575,393
VALUE
--------------
OTHER ASSETS IN EXCESS
OF LIABILITIES--0.5% ..................... $ 14,445,787
--------------
NET ASSETS (Applicable to
1,504,186,443 Bedford shares,
198,797 Cash Preservation shares,
822,075,114 Janney Montgomery
Scott shares, 686,561,111
Sansom Street shares
and 800 other shares)--100.0% ............ $3,013,021,180
==============
NET ASSET VALUE, Offering and
Redemption Price Per Share
($3,013,021,180 (DIVIDE) 3,013,022,265) .. $1.00
=====
* Also cost for Federal income tax purposes.
(DAGGER) Variable Rate Obligations -- The interest rate shown is the rate as of
February 28, 1998 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.
MUNICIPAL MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS
FEBRUARY 28, 1998
(UNAUDITED)
PAR
(000) VALUE
-------- ------------
MUNICIPAL BONDS--99.7%
ALABAMA--3.2%
Birmingham-Baptist Medical Centers
Special Care Facilities Financing
Authority RB (Senior Living
Communities, Inc. Project) DN(DAGGER)
3.500% 03/07/98 ..................... $5,530 $ 5,530,000
Montgomery Special Care Facilities
Financing Authority RB 1985
Series A DN(DAGGER)
3.400% 03/07/98 ..................... 2,570 2,570,000
Montgomery Special Care Facilities
Financing Authority RB 1985
Series G DN(DAGGER)
3.400% 03/07/98 ..................... 1,075 1,075,000
Montgomery Special Care Facilities
Hospital Authority RB 1985
Series D DN(DAGGER)
3.400% 03/07/98 ..................... 1,000 1,000,000
-----------
10,175,000
-----------
ALASKA--1.3%
Valdez Marine Terminal (ARCO
Transportation Alaska, Inc.
Project) TECP
3.900% 03/09/98 ..................... 4,300 4,300,000
-----------
ARIZONA--3.4%
Salt River Arizona Project Agricultural
Improvement and Power
District TECP
3.750% 03/27/98 ..................... 11,000 11,000,000
-----------
CALIFORNIA--10.0%
California Higher Education Student
Loan RB DN Series D-2(DAGGER)
4.000% 07/01/98 ..................... 4,000 4,000,000
Los Angeles County Series A TAN
4.500% 06/30/98 ..................... 28,000 28,058,080
-----------
32,058,080
-----------
COLORADO--1.6%
Colorado State General Fund
Series A TRAN
4.500% 06/26/98 ..................... 5,000 5,010,026
-----------
PAR
(000) VALUE
------- ------------
CONNECTICUT--0.9%
Connecticut Special Assessment
Unemployment Compensation
Advance Fund (Connecticut
Unemployment Project)
Series 1993 C MB(DOUBLE DAGGER)
3.900% 07/01/98 .................... $3,000 $ 3,000,000
-----------
DELAWARE--0.9%
The Delaware Economic Development
Authority Gas Facilities (Delmarva
Power & Light Project)
Series 1993 C RB DN(DAGGER)
3.550% 03/07/98 .................... 3,000 3,000,000
-----------
GEORGIA--5.7%
Brunswick and Glynn IDA Sewage
Facility RB (Georgia-Pacific Corp.
Project) DN Series 1996(DAGGER)
3.600% 03/07/98 .................... 5,000 5,000,000
Forsyth County IDA RB (American
Boa, Inc. Project) DN(DAGGER)
3.600% 03/07/98 .................... 3,000 3,000,000
Fulton County IDA RB (Charles J.
Mackarich Project) DN(DAGGER)
3.600% 03/07/98 .................... 3,500 3,500,000
Savannah Economic Development
Authority RB (Georgia Kaolin
Inc) DN(DAGGER)
3.550% 03/07/98 .................... 5,000 5,000,000
Winder-Barrow Industrial Building
Authority (Georgia Barrow
Property Project) DN(DAGGER)
3.600% 03/07/98 .................... 1,650 1,650,000
-----------
18,150,000
-----------
ILLINOIS--10.1%
Chicago, Illinois Tender
Notes MB(DOUBLE DAGGER)
3.550% 02/04/99 .................... 2,000 2,000,000
Illinois Educational Facility Authority
(College of Optometry)
Series 83 DN(DAGGER)
4.000% 03/07/98 .................... 5,300 5,300,000
Illinois Development Finance Authority
(CHS Acquisition Corp. Project)
DN(DAGGER)
3.500% 03/07/98 .................... 5,035 5,035,000
See Accompanying Notes to Financial Statements.
6
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
MUNICIPAL MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS (CONTINUED)
FEBRUARY 28, 1998
(UNAUDITED)
PAR
(000) VALUE
-------- ------------
ILLINOIS--(CONTINUED)
Illinois Development Finance Authority
Environmental Facilities RB
(Citizens Utility Co., Project)
DN(DAGGER)
3.600% 03/07/98 ................... $6,000 $ 6,000,000
Illinois Development Financing
Authority PCR (Illinois Power Co.
Project) Series 1987 D DN(DAGGER)
3.850% 03/07/98 ................... 900 900,000
Illinois Health Facilities Authority
Revolving Fund Pooled Financing
Program (The University of Chicago
Project) TECP
3.750% 05/27/98 ................... 8,000 8,000,000
Illinois Health Facility Authority
(Evanston Hospital Corp. Project)
Series 1996 MB(DOUBLE DAGGER)
3.900% 07/31/98 ................... 5,000 5,000,000
-----------
32,235,000
-----------
INDIANA--11.5%
Bremen IDA RB Series 1996 A
(Universal Bearings, Inc. Project
Private Placement) DN +
3.700% 03/07/98 ................... 5,000 5,000,000
Fort Wayne PCR Bonds (General
Motors Corp. Project)
Series 1985 DN(DAGGER)
3.700% 03/07/98 ................... 2,300 2,300,000
Indiana Development Finance
Authority IDA RB (Enterprise
Center I Project) DN(DAGGER)
3.650% 03/07/98 ................... 2,900 2,900,000
Indiana Development Finance
Authority IDA RB (Enterprise
Center II Project) DN(DAGGER)
3.650% 03/07/98 ................... 5,000 5,000,000
Indiana Development Finance
Authority IDA RB (Enterprise
Center III Project) DN(DAGGER)
3.650% 03/07/98 ................... 4,500 4,500,000
Indiana Development Finance
Authority IDA RB (Enterprise
Center IV Project) DN(DAGGER)
3.650% 03/07/98 ................... 2,600 2,600,000
PAR
(000) VALUE
------- ------------
INDIANA--(CONTINUED)
Indiana Development Finance
Authority IDA RB (Enterprise
Center VI Project) DN(DAGGER)
3.650% 03/07/98 ................ $4,900 $ 4,900,000
La Porte County Economic
Development RB (Pedcor
Investments - Woodland
Crossing) DN(DAGGER)
3.500% 03/07/98 ................ 2,000 2,000,000
Portage Economic Development RB
(Breckenridge Apartments
Project) DN(DAGGER)
3.600% 03/07/98 ................ 4,650 4,650,000
Tippecanoe County DN(DAGGER)
3.600% 03/07/98 ................ 3,000 3,000,000
-----------
36,850,000
-----------
IOWA--1.9%
Iowa Finance Authority IDA RB
(Dixie Bedding Co. Project)
Series 1995 DN(DAGGER)
3.600% 03/07/98 ................ 3,000 3,000,000
Polk County Health Facilities
Authority
(Catholic Health Initiatives
Series 1997 B) DN(DAGGER)
3.450% 03/07/98 ................ 3,000 3,000,000
-----------
6,000,000
-----------
KANSAS--3.8%
Kansas State Department of
Transportation Highway RB
Series B DN(DAGGER)
3.350% 03/07/98 ................ 5,000 5,000,000
Lawrence County Project IDA RB
Series A DN(DAGGER)
3.600% 03/05/98 ................ 2,025 2,025,000
Shawnee IDA RB (Thrall Enterprises,
Inc. Project) DN(DAGGER)
3.500% 03/07/98 ................ 5,100 5,100,000
-----------
12,125,000
-----------
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, 1998
(UNAUDITED)
PAR
(000) VALUE
------- ------------
KENTUCKY--4.8%
Hopkinsville IDA RB (Douglas
Autotech Corp. Project)
Series 1995 DN(DAGGER)
4.300% 03/07/98 ........................ $7,700 $ 7,700,000
Maysville Solid Waste Disposal
Facilities RB (Inland Container Corp.
Project) Series 1992 TECP
3.700% 05/13/98 ........................ 2,800 2,800,000
3.800% 05/20/98 ........................ 5,000 5,000,000
-----------
15,500,000
-----------
LOUISIANA--2.0%
East Baton Rouge (Resource Recovery
Improvements Parish Pacific Corp.
Project) DN(DAGGER)
4.400% 03/07/98 ........................ 6,500 6,500,000
-----------
MASSACHUSETTS--2.5%
Massachusetts Education Financing
RB Series 1997E DN(DAGGER)
3.550% 03/07/98 ........................ 8,000 8,000,000
-----------
MISSOURI--6.7%
Berkeley IDA RB (St. Louis Air Cargo
Services, Inc. Project) DN(DAGGER)
4.000% 03/07/98 ........................ 12,900 12,900,000
Kansas City IDA Facility RB (K.C. Air
Cargo Services, Inc. Project) DN(DAGGER)
4.000% 03/07/98 ........................ 7,400 7,400,000
Kansas City IDA RB (Mid-America
Health Services, Inc. Project)
Series 1984 DN(DAGGER)
3.700% 03/07/98 ........................ 1,100 1,100,000
-----------
21,400,000
-----------
NEBRASKA--1.2%
Lancaster (Sun-Husker Foods, Inc.
Project) DN(DAGGER)
4.300% 03/07/98 ........................ 3,800 3,800,000
-----------
PAR
(000) VALUE
------- ------------
NEVADA--0.3%
Clark County Airport System
Subordinate Lien RB DN
Series 1995 A-2(DAGGER)
3.600% 03/07/98 ................... $ 880 $ 880,000
----------
NEW YORK--1.1%
New York State Energy Research and
Development Authority PCR RB
(Niagara Mohawk Power Project)
Series 1985B DN(DAGGER)
3.650% 03/07/98 ................... 3,400 3,400,000
----------
NORTH CAROLINA--6.6%
Gastonia Certificates of Participation
(Equipment Financing Project)
Series 1997 DN(DAGGER)
3.450% 03/07/98 ................... 4,900 4,900,000
North Carolina Education Facilities
Finance Agency RB (Bowman Gray
School of Medicine Project)
Series 1990 DN(DAGGER)
3.400% 03/07/98 ................... 1,500 1,500,000
North Carolina Educational Facilities
Finance Agency (Duke University
Project) DN(DAGGER)
3.050% 03/07/98 ................... 4,000 4,000,000
North Carolina Educational Facilities
Finance Agency RB (Elon College
Project) Series 1997 DN
3.400% 03/07/98 ................... 800 800,000
North Carolina Educational Facilities
Finance Agency RB (Guilford
College) Series 1997 DN(DAGGER)
3.550% 03/07/98 ................... 3,000 3,000,000
North Carolina Educational Facilities
Finance Agency RB (The Bowman
Gray School of Medicine Project)
Series 1996 DN(DAGGER)
3.400% 03/07/98 ................... 500 500,000
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, 1998
(UNAUDITED)
PAR
(000) VALUE
------- ------------
NORTH CAROLINA--(CONTINUED)
North Carolina Medical Care
Commission Hospital RB (Moses
H. Cone Memorial Hospital Project)
Series 1993 DN(DAGGER)
3.400% 03/07/98 ..................... $ 700 $ 700,000
Rockingham County Industrial
Facilities and Finance Authority
PCR RB (Medibeg USA, Inc.)
1997 DN(DAGGER)
3.550% 03/07/98 ..................... 3,000 3,000,000
Wake County Industrial Facilities and
Pollution Control Financing
Authority RB (Carolina Power &
Light Co. Project) Series 1987
DN(DAGGER)
3.850% 03/01/98 ..................... 300 300,000
Wake County Industrial Facility PCR RB
(Carolina Power & Light Co.)
Series C DN(DAGGER)
4.250% 03/07/98 ..................... 2,300 2,300,000
-----------
21,000,000
-----------
OHIO--5.9%
Green County G.O. BAN
4.000% 03/26/98 ..................... 3,700 3,700,483
4.500% 05/07/98 ..................... 5,000 5,003,965
Lorain County (Catholic Healthcare
Partners Project) Hospital Facilities
RB 1997 A TECP
3.450% 03/12/98 ..................... 5,000 5,000,000
Mahoning County (Youngstown Iron
& Metal Inc. Project) DN(DAGGER)
3.600% 03/07/98 ..................... 2,140 2,140,000
Parma City Series 1998 BAN
4.950% 08/05/98 ..................... 3,000 3,016,593
-----------
18,861,041
-----------
OKLAHOMA--0.6%
Oklahoma Development Finance
Authority (Shawnee Funding
Limited) DN(DAGGER)
3.600% 03/07/98 ..................... 2,000 2,000,000
-----------
PAR
(000) VALUE
------- ------------
OREGON--0.9%
Portland Multifamily Housing RB
Village of Lovejoy Fountain DN(DAGGER)
3.550% 03/07/98 ....................... $ 3,000 $ 3,000,000
-----------
PENNSYLVANIA--2.0%
Emmaus General Authority RB Pooled
Loan Series 1989G-2 DN(DAGGER)
3.500% 03/01/98 ....................... 2,000 2,000,000
Philadelphia Hospital & Higher
Educational Facility Authority RB
(Children's Hospital of Philadelphia
Project) Series 1996-A DN(DAGGER)
3.650% 03/01/98 ....................... 3,100 3,100,000
Washington County Authority Lease
Series 1985 DN(DAGGER)
3.600% 03/07/98 ....................... 1,400 1,400,000
-----------
6,500,000
-----------
TENNESSEE--3.9%
Montgomery County Public Building
Authority Pooled Financing RB
(Tennessee County Loan Pool) DN(DAGGER)
3.450% 03/07/98 ....................... 5,100 5,100,000
Montgomery County Public Building
Authority Loan Pool G.O. DN(DAGGER)
3.450% 03/07/98 ....................... 2,400 2,400,000
Oak Ridge Solid Waste Disposal
Facility Series 1996 M4
(Environmental Project) DN(DAGGER)
3.600% 03/07/98 ....................... 5,100 5,100,000
-----------
12,600,000
-----------
TEXAS--4.0%
Angelina and Neches River Authority
Solid Waste Disposal RB (Temple-
Eastex Incorporated Project)
Series 1993 TECP
3.800% 05/18/98 ....................... 7,450 7,450,000
Denton IDA (Hartzell Manufacturing
Inc. Project) DN(DAGGER)
3.750% 03/07/98 ....................... 1,300 1,300,000
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, 1998
(UNAUDITED)
PAR
(000) VALUE
------- ------------
TEXAS--(CONTINUED)
State of Texas TRAN
4.750% 08/31/98 ........................ $ 2,750 $ 2,761,876
Texas State Veterans Housing
Assistance Fund DN(DAGGER)
3.350% 03/07/98 ........................ 1,300 1,300,000
------------
12,811,876
------------
VIRGINIA--2.3%
Capital Region Airport Commission
(Richmond International Airport
Project) Series 1995 C DN(DAGGER)
3.400% 03/07/98 ........................ 4,400 4,400,000
Culpepper IDA Residential Care
Facility RB DN(DAGGER)
3.450% 03/07/98 ........................ 385 385,000
King George County IDA Exempt
Facility RB (Birchwood Power
Partners Project) Series 1996 DN(DAGGER)
3.700% 03/01/98 ........................ 600 600,000
Peninsula Ports Authority of Virginia
Port Facility Refunding RB (Zeigler
Coal Project) Series 1997 DN(DAGGER)
3.700% 03/01/98 ........................ 1,100 1,100,000
Peninsula Ports IDA RB (Allied Signal,
Inc. Project) Series 1993 DN(DAGGER)
3.500% 03/07/98 ........................ 1,000 1,000,000
------------
7,485,000
------------
WISCONSIN--0.6%
Amery IDRB (Plastech Corporation)
Series 1997 DN(DAGGER)
3.750% 03/07/98 ........................ 2,000 2,000,000
------------
TOTAL INVESTMENTS AT VALUE--99.7%
(Cost $319,641,023) .................... 319,641,023
VALUE
------------
OTHER ASSETS IN EXCESS
OF LIABILITIES--0.3% ................... $ 942,262
-----------
NET ASSETS (Applicable to
214,533,310 Bedford shares,
99,373 Cash Preservation
shares, 106,022,956 Janney
Montgomery Scott shares, and
800 other shares)--100.0% ............... $320,583,285
============
NET ASSET VALUE, Offering and
redemption price per share
($320,583,285 (DIVIDE) 320,656,439) .... $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, 1998 and the maturity 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
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.
10
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
GOVERNMENT OBLIGATIONS MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS
FEBRUARY 28, 1998
(UNAUDITED)
PAR
(000) VALUE
------- ------------
AGENCY OBLIGATIONS--46.4%
FEDERAL FARM CREDIT BANK--2.0%
5.450% 03/03/98 ......................... $12,000 $ 11,999,959
------------
FEDERAL HOME LOAN BANK--16.4%
5.405% 03/02/98(DAGGER) ................. 25,000 24,988,527
5.713% 03/13/98 ......................... 20,000 19,999,234
6.080% 04/16/98 ......................... 21,000 21,001,393
5.420% 05/11/98 ......................... 10,000 9,893,106
5.682% 10/16/98 ......................... 15,000 14,993,827
5.555% 02/26/99 ......................... 10,000 10,000,000
------------
100,876,087
------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION--18.2%
5.237% 03/03/98(DAGGER) ................. 10,000 10,000,000
5.669% 03/03/98(DAGGER) ................. 25,000 24,991,069
5.415% 03/17/98(DAGGER) ................. 10,000 9,992,408
5.710% 03/18/98 ......................... 25,000 24,999,665
5.890% 05/21/98 ......................... 10,000 10,002,376
5.840% 06/18/98 ......................... 20,000 19,998,062
5.370% 02/26/99 ......................... 12,000 11,974,505
------------
111,958,085
------------
STUDENT LOAN MARKETING ASSOCIATION--9.8%
5.469% 03/03/98(DAGGER) ................. 9,000 8,999,662
5.479% 03/03/98(DAGGER) ................. 5,000 5,000,000
5.469% 03/07/98(DAGGER) ................. 8,560 8,551,340
5.489% 03/07/98(DAGGER) ................. 18,000 17,968,678
5.790% 09/16/98 ......................... 20,000 19,995,602
------------
60,515,282
------------
TOTAL AGENCY OBLIGATIONS
(Cost $285,349,413) ................. 285,349,413
------------
REPURCHASE AGREEMENTS--52.7%
Greenwich Capital Markets
(Agreement dated 02/27/98 to be
repurchased at $50,023,667.
Collateralized by $51,501,149.
Resolution Trust Company Strips
8.875 to 9.375%. Due 04/15/15 to
04/15/30. Market value of
collateral is $51,501,149.)
5.680% 03/02/98 ......................... 50,000 50,000,000
PAR
(000) VALUE
------- ------------
REPURCHASE AGREEMENTS--(CONTINUED)
Merrill Lynch
(Agreement dated 01/21/98 to be
repurchased at $40,549,000.
Collateralized by $41,203,269.
Federal National Mortgage
Association Strips 6.5% to 7.00%.
Due 03/31/26 to 11/01/27.
Market value of collateral
is $41,203,269.)
5.490% 04/21/98 ......................... $40,000 $ 40,000,000
Merrill Lynch
(Agreement dated 02/20/98 to be
repurchased at $60,477,516.
Collateralized by $61,801,009.
Federal National Mortgage
Association Strips 6.5 to 7.5%.
Due 06/01/10 to 03/01/26.
Market value of collateral
is $61,801,009.)
5.510% 04/21/98 ......................... 60,000 60,000,000
Morgan Stanley
(Agreement dated 02/27/98 to be
repurchased at $100,047,391.
Collateralized by $100,586,965.
Federal National Mortgage
Association Strips 5.34 to 8%.
Due 02/28/99 to 01/01/28. Market
value of collateral is $77,075,831.
United States Treasury Notes 5.5%.
Market value of collateral is
$103,024,510.)
5.687% 02/27/98 ......................... 100,000 100,000,000
Morgan Stanley
(Agreement dated 02/23/98 to be
repurchased at $20,009,267.
Collateralized by $49,803,000.
Federal National Mortgage
Association Strips 5.5 to 7.298%.
Due 04/01/09 to 10/01/22. Market
value of collateral is $20,528,085.
United States Treasury Note 5.125%.
Due 03/31/98. Market value of
colleratal is $20,601,594.)
5.560% 02/27/98 ......................... 20,000 20,000,000
See Accompanying Notes to Financial Statements.
11
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
GOVERNMENT OBLIGATIONS MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS (CONCLUDED)
FEBRUARY 28, 1998
(UNAUDITED)
PAR
(000) VALUE
------- ------------
Morgan Stanley & Co.
(Agreement dated 01/07/98 to be
repurchased at $40,548,833.
Collateralized by $39,686,017.
Federal Mortgage Corporation 7%.
Due 01/01/28. Market value is
$41,209,803.)
5.550% 04/06/98 .............................. $40,000 $ 40,000,000
Swiss Bank Corp.
(Agreement dated 02/27/98 to be
repurchased at $13,808,326
Collateralized by $13,806,558.
U.S. Treasury Note 6.375%.
Due 03/31/01 to 05/15/20.
Market value of collateral
is $14,078,091.)
5.430% 03/03/98 .............................. 13,800 13,800,000
-------------
TOTAL REPURCHASE AGREEMENTS
(Cost $323,800,000) ...................... 323,800,000
-------------
TOTAL INVESTMENTS AT VALUE--99.1%
(Cost $609,149,413) .......................... 609,149,413
OTHER ASSETS IN EXCESS
OF LIABILITIES--0.9% ......................... 5,654,714
-------------
NET ASSETS (Applicable to
218,724,010 Beford shares,
396,094,280 Janney
Montgomery Scott shares and 800
other shares* )--100.0% ...................... $614,804,127
============
NET ASSET VALUE, offering and
redemption price per share
($614,804,127 (DIVIDE) 614,819,090) .......... $1.00
=====
* Also cost for Federal income tax purposes.
(DAGGER) Variable Rate Obligations -- The interest rate is the rate as of
February 28, 1998 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.
12
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED FEBRUARY 28, 1998
(UNAUDITED)
<TABLE>
<CAPTION>
GOVERNMENT
MUNICIPAL OBLIGATIONS
MONEY MARKET MONEY MARKET MONEY MARKET
PORTFOLIO PORTFOLIO PORTFOLIO
------------ ------------ ------------
<S> <C> <C> <C>
Investment Income
Interest ............................................... $79,170,730 $6,613,612 $16,726,902
----------- ---------- -----------
Expenses
Investment advisory fees ............................... 5,016,420 585,954 1,222,722
Administration fees .................................... -- 174,661 --
Distribution fees ...................................... 6,201,939 1,023,587 1,738,709
Service organization fees .............................. 281,246 -- --
Directors' fees ........................................ 24,442 3,101 5,252
Custodian fees ......................................... 220,426 37,392 54,663
Transfer agent fees .................................... 1,885,453 63,268 315,846
Legal fees ............................................. 52,774 6,699 11,340
Audit fees ............................................. 32,785 4,141 7,044
Registration fees ...................................... 209,692 89,278 84,000
Insurance expense ...................................... 25,693 3,256 5,516
Printing fees .......................................... 264,667 25,995 43,231
Miscellaneous .......................................... 897 341 666
----------- ---------- -----------
14,216,434 2,017,673 3,488,989
Less fees waived ....................................... (1,872,337) (471,601) (332,806)
Less expense reimbursement by advisor .................. (273,085) (7,600) (221,501)
----------- ---------- -----------
Total expenses .................................... 12,071,012 1,538,472 2,934,682
----------- ---------- -----------
Net investment income .................................. 67,099,718 5,075,140 13,792,220
Realized gain (loss) on investments .................... 10,099 (1,512) (1,397)
----------- ---------- -----------
Net increase in net assets resulting from operations ... $67,109,817 $5,073,628 $13,790,823
=========== ========== ===========
</TABLE>
See Accompanying Notes to Financial Statements.
13
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
MUNICIPAL MONEY
MONEY MARKET PORTFOLIO MARKET PORTFOLIO
---------------------------------- ----------------------------------
FOR THE FOR THE FOR THE FOR THE
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
FEBRUARY 28, 1998 AUGUST 31, 1997 FEBRUARY 28, 1998 AUGUST 31, 1997
----------------- --------------- ----------------- ---------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
Increase (decrease) in net assets:
Operations:
Net investment income ................ $ 67,099,718 $ 116,087,132 $ 5,075,140 $ 12,741,126
Net gain (loss) on
investments ........................ 10,099 22,330 (1,512) (3,917)
-------------- -------------- ------------ ------------
Net increase in net assets
resulting from operations .......... 67,109,817 116,109,462 5,073,628 12,737,209
-------------- -------------- ------------ ------------
Distributions to shareholders:
Dividends to shareholders
from net investment income:
Bedford shares ..................... (33,334,065) (56,929,832) (3,069,871) (5,758,068)
Bradford shares .................... -- -- (405,975) (4,148,194)
Cash Preservation shares ........... (5,235) (10,852) (1,397) (2,492)
Janney Montgomery Scott
shares ........................... (18,087,563) (29,943,530) (1,597,897) (2,832,323)
RBB shares ......................... -- (1,286) -- (49)
Sansom Street shares ............... (15,672,855) (29,201,632) -- --
-------------- -------------- ------------ ------------
Total dividends to
shareholders ................... (67,099,718) (116,087,132) (5,075,140) (12,741,126)
-------------- -------------- ------------ ------------
Net capital share transactions ......... 312,985,452 504,179,861 (167,461,018) 67,161,386
-------------- -------------- ------------ ------------
Total increase (decrease)
in net assets ........................ 312,995,551 504,202,191 (167,462,530) 67,157,469
Net Assets:
Beginning of period .................. 2,700,025,629 2,195,823,438 488,045,815 420,888,346
-------------- -------------- ------------ ------------
End of period ........................ $3,013,021,180 $2,700,025,629 $320,583,285 $488,045,815
============== ============== ============ ============
</TABLE>
GOVERNMENT OBLIGATIONS
MONEY MARKET PORTFOLIO
----------------------------------
FOR THE FOR THE
SIX MONTHS ENDED YEAR ENDED
FEBRUARY 28, 1998 AUGUST 31, 1997
----------------- ---------------
(UNAUDITED)
Increase (decrease) in net assets:
Operations:
Net investment income ................ $ 13,792,220 $ 26,187,519
Net gain (loss) on
investments ........................ (1,397) (1,291)
------------ ------------
Net increase in net assets
resulting from operations .......... 13,790,823 26,186,228
------------ ------------
Distributions to shareholders:
Dividends to shareholders
from net investment income:
Bedford shares ..................... (4,960,506) (9,057,728)
Bradford shares .................... (185,038) (2,084,419)
Cash Preservation shares ........... -- --
Janney Montgomery Scott
shares ........................... (8,646,676) (15,045,372)
RBB shares ......................... -- --
Sansom Street shares ............... -- --
------------ ------------
Total dividends to
shareholders ................... (13,792,220) (26,187,519)
------------ ------------
Net capital share transactions ......... 573,313 57,686,497
------------ ------------
Total increase (decrease)
in net assets ........................ 571,916 57,685,206
Net Assets:
Beginning of period .................. 614,232,211 556,547,005
------------ ------------
End of period ........................ $614,804,127 $614,232,211
============ ============
See Accompanying Notes to Financial Statements.
14
<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
SIX MONTHS YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED
FEBRUARY 28, AUGUST 31, AUGUST 31, AUGUST 31, AUGUST 31,
1998 1997 1996 1995 1994
------------ ---------- ---------- ---------- ----------
(UNAUDITED)
<S> <C> <C> <C> <C> <C>
Net asset value,
beginning of period ............... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
---------- ---------- ---------- -------- --------
Income from investment operations:
Net investment income ............. 0.0236 0.0462 0.0469 0.0486 0.0278
---------- ---------- ---------- -------- --------
Total from investment
operations .................. 0.0236 0.0462 0.0469 0.0486 0.0278
---------- ---------- ---------- -------- --------
Less distributions
Dividends (from net investment
income) ......................... (0.0236) (0.0462) (0.0469) (0.0486) (0.0278)
---------- ---------- ---------- -------- --------
Total distributions ........... (0.0236) (0.0462) (0.0469) (0.0486) (0.0278)
---------- ---------- ---------- -------- --------
Net asset value, end of period ...... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========== ========== ========== ======== ========
Total Return ........................ 4.87(c) 4.72% 4.79% 4.97% 2.81%
Ratios /Supplemental Data
Net assets, end of period (000) ... $1,504,190 $1,392,911 $1,109,334 $935,821 $710,737
Ratios of expenses to average
net assets ...................... .97%(a)(c) .97%(a) .97%(a) .96%(a) .95%(a)
Ratios of net investment income
to average net assets ........... 4.76%(c) 4.62% 4.69% 4.86% 2.78%
</TABLE>
<TABLE>
<CAPTION>
MUNICIPAL MONEY MARKET PORTFOLIO
----------------------------------------------------------------
FOR THE FOR THE FOR THE FOR THE FOR THE
SIX MONTHS YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED
FEBRUARY 28, AUGUST 31, AUGUST 31, AUGUST 31, AUGUST 31,
1998 1997 1996 1995 1994
------------ ---------- ---------- ---------- ----------
(UNAUDITED)
<S> <C> <C> <C> <C> <C>
Net asset value,
beginning of period ............... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------- --------
Income from investment operations:
Net investment income ............. 0.0144 0.0285 0.0288 0.0297 0.0195
-------- -------- -------- -------- --------
Total from investment
operations .................. 0.0144 0.0285 0.0288 0.0297 0.0195
-------- -------- -------- -------- --------
Less distributions
Dividends (from net investment
income) ......................... (0.0144) (0.0285) (0.0288) (0.0297) (0.0195)
-------- -------- -------- -------- --------
Total distributions ........... (0.0144) (0.0285) (0.0288) (0.0297) (0.0195)
-------- -------- -------- -------- --------
Net asset value, end of period ...... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ========
Total Return ........................ 2.94(c) 2.88% 2.92% 3.01% 1.97%
Ratios /Supplemental Data
Net assets, end of period (000) ... $214,463 $213,034 $201,940 $198,425 $182,480
Ratios of expenses to average
net assets ...................... .89%(a)(c) .85%(a) .84%(a) .82%(a) .77%(a)
Ratios of net investment income
to average net assets ........... 2.89%(c) 2.85% 2.88% 2.97% 1.95%
<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 1.11%
annualized for the six months ended February 28, 1998, 1.12%, 1.14%, 1.17%
and 1.16% for the years ended August 31, 1997, 1996, 1995 and 1994,
respectively. For the Municipal Money Market Portfolio, the ratios of
expenses to average net assets would have been 1.13% annualized for the six
months ended February 28, 1998, 1.14%, 1.12%, 1.14% and 1.12%, for the
years ended August 31, 1997, 1996, 1995 and 1994, 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.
15
<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
SIX MONTHS YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED
FEBRUARY 28, AUGUST 31, AUGUST 31, AUGUST 31, AUGUST 31,
1998 1997 1996 1995 1994
------------ ---------- ---------- ---------- ----------
(UNAUDITED)
<S> <C> <C> <C> <C> <C>
Net asset value,
beginning of period ................ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------- --------
Income from investment operations:
Net investment income .............. 0.0232 0.0449 0.0458 0.0475 0.0270
-------- -------- -------- -------- --------
Total from investment
operations ................... 0.0232 0.0449 0.0458 0.0475 0.0270
-------- -------- -------- -------- --------
Less distributions
Dividends (from net investment
income) .......................... (0.0232) (0.0449) (0.0458) (0.0475) (0.0270)
-------- -------- -------- -------- --------
Total distributions ............ (0.0232) (0.0449) (0.0458) (0.0475) (0.0270)
-------- -------- -------- -------- --------
Net asset value, end of period ....... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ========
Total Return ......................... 4.77%(c) 4.59% 4.68% 4.86% 2.73%
Ratios /Supplemental Data
Net assets, end of period (000) .... $218,737 $209,715 $192,599 $163,398 $166,418
Ratios of expenses to average
net assets ....................... .975%(a)(c) .975%(a) .975%(a) .975%(a) .975%(a)
Ratios of net investment income
to average net assets ............ 4.67%(c) 4.49% 4.58% 4.75% 2.70%
<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 1.09% annualized for the six months ended
February 28, 1998, 1.09%, 1.10%, 1.13% and 1.17% for the years ended August
31, 1997, 1996, 1995 and 1994 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.
16
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
NOTES TO FINANCIAL STATEMENTS
FEBRUARY 28, 1998
(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 14.03 billion shares are currently classified into eighty-three classes.
Each class represents an interest in one of twenty-three investment portfolios
of the Fund. The classes have been grouped into fifteen separate "families",
eight of which have begun investment operations: the RBB Family, the BEA Family,
the Sansom Street Family, the Bedford Family, the Cash Preservation Family,
Janney Montgomery Scott Money Family, the n/i Family and the Boston Partners
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.
17
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FEBRUARY 28, 1998
(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 Portfolio .35% of first $250 million of net assets;
.30% of next $250 million of net assets;
.25% of net assets in excess of $500 million.
PIMC may, at its discretion, voluntarily waive all or any portion of its
advisory fee for 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, 1998, advisory fees and waivers for
the three investment portfolios were as follows:
GROSS NET
ADVISORY ADVISORY
FEE WAIVER FEE
---------- ------------ ----------
Money Market Portfolio $5,016,420 $(1,867,833) $3,148,587
Municipal Money Market Portfolio 585,954 (467,038) 118,916
Government Obligations Money
Market Portfolio 1,222,722 (332,806) 889,916
The investment advisor has agreed to reimburse each portfolio for the
amount, if any, by which the total operating and management expenses exceed the
cap. For the six months ended February 28, 1998, the reimbursed expenses were
$273,085, $7,600 and $221,501 for the Money Market Portfolio, Municipal Money
Market Portfolio and Government Obligations Money Market Portfolio,
respectively.
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.
*As of March 31, 1998, PNC Institutional Management Corporation has officially
changed their name to BlackRock Institutional Management Corporation.
18
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FEBRUARY 28, 1998
(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, 1998, 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 $ 994,000 $ -- $ 994,000
Cash Preservation Class 4,812 (4,504) 308
Janney Montgomery Scott Class 698,290 -- 698,290
Sansom Street Class 188,351 -- 188,351
---------- ------- ----------
Total Money Market Portfolio $1,885,453 $(4,504) $1,880,949
========== ======= ==========
Municipal Money Market Portfolio
Bedford Class $ 54,000 $ -- $ 54,000
Bradford Class 2,914 -- 2,914
Cash Preservation Class 4,720 (4,563) 157
Janney Montgomery Scott Class 1,634 -- 1,634
---------- ------- ----------
Total Municipal Money Market Portfolio $ 63,268 $(4,563) $ 58,705
========== ======= ==========
Government Obligations Money Market Portfolio
Bedford Class $ 41,846 $ -- $ 41,846
Bradford Class -- -- --
Janney Montgomery Scott Class 274,000 -- 274,000
---------- ------- ----------
Total Government Obligations Money Market Portfolio $ 315,846 -- $ 315,846
========== ======= ==========
</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, 1998, the administration fee for the Municipal Money Market
Portfolio was as follows:
ADMINISTRATION
FEE
--------------
Municipal Money Market Portfolio $174,661
19
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FEBRUARY 28, 1998
(UNAUDITED)
NOTE 2. TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES (CONTINUED)
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 and Janney Montgomery Scott Classes and up to .20% on an annualized
basis for the Sansom Street Class.
For the six months ended February 28, 1998, distribution fees for each
class were as follows:
DISTRIBUTION
FEE
------------
Money Market Portfolio
Bedford Class $3,750,884
Cash Preservation Class 438
Janney Montgomery Scott Class 2,291,871
Sansom Street Class 158,746
-----------
Total Money Market Portfolio $6,201,939
==========
Municipal Money Market Portfolio
Bedford Class $ 612,317
Bradford Class 83,480
Cash Preservation Class 199
Janney Montgomery Scott Class 327,591
-----------
Total Municipal Money Market Portfolio $1,023,587
==========
Government Obligations Money Market Portfolio
Bedford Class $ 598,444
Bradford Class 23,951
Janney Montgomery Scott Class 1,116,314
-----------
Total Government Obligations
Money Market Portfolio $1,738,709
==========
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, 1998, service
organization fees were $281,246 for the Money Market Portfolio.
20
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FEBRUARY 28, 1998
(UNAUDITED)
NOTE 3. CAPITAL SHARES
Transactions in capital shares (at $1 per capital share) for each period
were as follows:
<TABLE>
<CAPTION>
MUNICIPAL MONEY MARKET
MONEY MARKET PORTFOLIO PORTFOLIO
---------------------------------- ----------------------------------
FOR THE FOR THE FOR THE FOR THE
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
FEBRUARY 28, 1998 AUGUST 31, 1997 FEBRUARY 28, 1998 AUGUST 31, 1997
----------------- --------------- ----------------- ---------------
(UNAUDITED) (UNAUDITED)
VALUE VALUE VALUE VALUE
--------------- --------------- ------------- ---------------
<S> <C> <C> <C> <C>
Shares sold:
Bedford Class $ 2,522,717,905 $ 4,513,203,668 $ 725,067,290 $ 1,075,834,153
Bradford Class -- -- 59,917,620 586,482,906
Cash Preservation
Class 26,316 175,000 29,952 82,717
Janney Montgomery
Scott Class 1,839,610,433 3,087,651,502 217,468,131 406,706,164
RBB Class -- 4,744 -- 200
Sansom Street Class 1,087,883,963 1,965,226,666 -- --
Shares issued in
reinvestment of
dividends:
Bedford Class 33,898,767 55,886,643 3,104,574 5,696,659
Bradford Class -- -- 427,390 4,016,410
Cash Preservation
Class 5,415 10,748 1,354 2,358
Janney Montgomery
Scott Class 18,501,314 29,670,134 1,639,541 2,820,771
RBB Class -- 1,361 -- 53
Sansom Street Class 11,686,521 20,645,930 -- --
Shares repurchased:
Bedford Class (2,445,340,436) (4,285,531,838) (726,739,306) (1,070,439,669)
Bradford Class -- -- (226,438,837) (553,804,071)
Cash Preservation
Class (75,149) (145,893) (28,876) (103,897)
Janney Montgomery
Scott Class (1,772,888,931) (2,942,342,585) (221,909,851) (390,127,972)
RBB Class -- (67,517) -- (5,396)
Sansom Street Class (983,040,666) (1,940,208,702) -- --
--------------- --------------- ------------- --------------
Net increase (decrease) $ 312,985,452 $ 504,179,861 $(167,461,018) $ 67,161,386
=============== =============== ============= ==============
Bedford Shares
authorized 1,500,000,000 1,500,000,000 500,000,000 500,000,000
=============== =============== ============= ==============
</TABLE>
21
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FEBRUARY 28, 1998
(UNAUDITED)
NOTE 3. CAPITAL SHARES (CONTINUED)
GOVERNMENT OBLIGATIONS
MONEY MARKET PORTFOLIO
----------------------------------
FOR THE FOR THE
SIX MONTHS ENDED YEAR ENDED
FEBRUARY 28, 1998 AUGUST 31, 1997
----------------- ---------------
(UNAUDITED)
VALUE VALUE
------------- --------------
Shares sold:
Bedford Class $ 352,750,273 $ 606,875,958
Bradford Class 14,367,468 171,813,924
Janney Montgomery
Scott Class 708,307,426 1,232,450,606
Shares issued in
reinvestment of
dividends:
Bedford Class 5,062,153 8,971,804
Bradford Class 214,626 2,002,758
Janney Montgomery
Scott Class 8,836,183 14,958,191
Shares repurchased:
Bedford Class (348,774,046) (598,765,148)
Bradford Class (66,190,134) (179,400,377)
Janney Montgomery
Scott Class (674,000,636) (1,201,221,219)
------------- -------------
Net increase $ 573,313 $ 57,686,497
============= =============
Bedford Shares
authorized 500,000,000 500,000,000
============= =============
NOTE 4. NET ASSETS
At February 28, 1998, net assets consisted of the following:
<TABLE>
<CAPTION>
GOVERNMENT
MUNICIPAL OBLIGATIONS
MONEY MARKET MONEY MARKET MONEY MARKET
PORTFOLIO PORTFOLIO PORTFOLIO
------------ ------------ ------------
<S> <C> <C> <C>
Capital paid-in
Bedford Class $1,504,186,443 $214,533,311 $218,724,010
Cash Preservation Class 198,797 99,373 --
Janney Montgomery Scott Class 822,075,114 106,022,955 396,094,280
Sansom Street Class 686,561,111 -- --
Other Classes 800 800 800
Accumulated net realized gain (loss)
on investments
Bedford Class (839) (73,189) (5,673)
Cash Preservation Class -- 3 --
Janney Montgomery Scott Class 1,028 32 (9,290)
Sansom Street Class (1,274) -- --
-------------- ------------ ------------
$3,013,021,180 $320,583,285 $614,804,127
=============== ============ ============
</TABLE>
22
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FEBRUARY 28, 1998
(UNAUDITED)
NOTE 5. OTHER FINANCIAL HIGHLIGHTS
The Fund currently offers three other classes of shares representing
interests in the Money Market Portfolio: Cash Preservation, Janney Montgomery
Scott and Sansom Street. The Fund currently offers two other classes of shares
representing interests in the Municipal Money Market Portfolio: Cash
Preservation and Janney Montgomery Scott. The Fund currently offers one other
class of shares representing an interest in the Government Obligations Money
Market Portfolio: Janney Montgomery Scott. Each class is marketed to different
types of investors. Financial Highlights of the Cash Preservation Class is not
presented in this report due to its immateriality. Such information is available
in the annual report of the Cash Preservation family. The financial highlights
of certain of the other classes are as follows:
BRADFORD GOVERNMENT OBLIGATIONS MONEY MARKET SHARES(c)
<TABLE>
<CAPTION>
FOR THE FOR THE FOR THE FOR THE FOR THE
MONTH YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED
SEPTEMBER 30, 1997 AUGUST 31, 1997 AUGUST 31, 1996 AUGUST 31, 1995 AUGUST 31, 1994
------------------ --------------- --------------- --------------- ---------------
(UNAUDITED)
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period ......... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------- --------
Income from investment operations:
Net investment income ..................... 0.0038 0.0449 0.0458 0.0475 0.0270
-------- -------- -------- -------- --------
Total from investment operations ...... 0.0038 0.0449 0.0458 0.0475 0.0270
-------- -------- -------- -------- --------
Less distributions
Dividends (from net investment income) .... (0.0038) (0.0449) (0.0458) (0.0475) (0.0270)
-------- -------- -------- -------- --------
Total distributions ................... (0.0038) (0.0449) (0.0458) (0.0475) (0.0270)
-------- -------- -------- -------- --------
Net asset value, end of period ............... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ========
Total Return ................................. 4.74%(b) 4.59% 4.68% 4.86% 2.73%
Ratios /Supplemental Data
Net assets, end of period ................. $ 44,931 $ 51,608 $ 57,190 $ 46,509 $ 39,732
Ratios of expenses to average net assets .. .975%(a)(b) .975%(a) .975%(a) .975%(a) .975%(a)
Ratios of net investment income to
average net assets ...................... 4.64%(b) 4.49% 4.58% 4.75% 2.70%
<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 1.08% annualized for the month ended September 30, 1997,
1.09%, 1.10%, 1.13% and 1.18% for the years ended August 31, 1997, 1996,
1995 and 1994, respectively.
(b) Annualized.
(c) On October 1, 1997, the Government Obligation Portfolio's Bradford Class of
44,971,583 shares were liquidated.
</FN>
</TABLE>
23
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FEBRUARY 28, 1998
(UNAUDITED)
NOTE 5. OTHER FINANCIAL HIGHLIGHTS (CONTINUED)
BRADFORD MUNICIPAL MONEY MARKET SHARES(c)
<TABLE>
<CAPTION>
FOR THE FOR THE FOR THE FOR THE FOR THE
MONTH YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED
SEPTEMBER 30, 1997 AUGUST 31, 1997 AUGUST 31, 1996 AUGUST 31, 1995 AUGUST 31, 1994
------------------ --------------- --------------- --------------- ---------------
(UNAUDITED)
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period ........ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------- --------
Income from investment operations:
Net investment income .................... 0.0024 0.0285 0.0288 0.0297 0.0195
-------- -------- -------- -------- --------
Total from investment operations ..... 0.0024 0.0285 0.0288 0.0297 0.0195
-------- -------- -------- -------- --------
Less distributions
Dividends (from net investment income) ... (0.0024) (0.0285) (0.0288) (0.0297) (0.0195)
-------- -------- -------- -------- --------
Total distributions .................. (0.0024) (0.0285) (0.0288) (0.0297) (0.0195)
-------- -------- -------- -------- --------
Net asset value, end of period .............. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ========
Total Return ................................ 2.97%(b) 2.88% 2.92% 3.01% 1.97%
Ratios /Supplemental Data
Net assets, end of period ................ $168,172 $166,089 $129,399 $110,936 $100,089
Ratios of expenses to average net assets . .89%(a)(b) .85%(a) .84%(a) .82%(a) .77%(a)
Ratios of net investment income to
average net assets ..................... 2.92%(b) 2.85% 2.88% 2.97% 1.95%
<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 1.13% annualized for the
month ended September 30, 1997, 1.14%, 1.12%, 1.14% and 1.11% for the years
ended August 31, 1997, 1996, 1995 and 1994, respectively.
(b) Annualized.
(c) On October 1, 1997, the Municipal Money Market Portfolio's Bradford Class
of 168,177,203 shares were liquidated.
</FN>
</TABLE>
24
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FEBRUARY 28, 1998
(UNAUDITED)
NOTE 5. OTHER FINANCIAL HIGHLIGHTS (CONTINUED)
THE JANNEY MONTGOMERY SCOTT FAMILY
<TABLE>
<CAPTION>
MONEY MARKET PORTFOLIO
---------------------------------------------------------------------------
FOR THE PERIOD
FOR THE FOR THE FOR THE JUNE 12, 1995
SIX MONTHS YEAR YEAR (COMMENCEMENT OF
ENDED ENDED ENDED OPERATIONS) TO
FEBRUARY 28, 1998 AUGUST 31, 1997 AUGUST 31, 1996 AUGUST 31, 1995
----------------- --------------- --------------- ----------------
(UNAUDITED)
<S> <C> <C> <C> <C>
Net asset value, beginning of period ......... $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- --------
Income from investment operations:
Net investment income ...................... 0.0235 0.0459 0.0465 0.0112
-------- -------- -------- --------
Total from investment operations ......... 0.0235 0.0459 0.0465 0.0112
-------- -------- -------- --------
Less distributions
Dividends (from net investment income) ..... (0.0235) (0.0459) (0.0465) (0.0112)
-------- -------- -------- --------
Total distributions ...................... (0.0235) (0.0459) (0.0465) (0.0112)
-------- -------- -------- --------
Net asset value, end of period ............... $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ========
Total Return ................................. 4.69%(b) 4.69% 4.76% 5.30%(b)
Ratios /Supplemental Data
Net assets, end of period (000) ............ $822,080 $736,855 $561,865 $443,645
Ratios of expenses to average net assets ... 1.00%(a)(b) 1.00%(a) 1.00%(a) 1.00%(a)(b)
Ratios of net investment income to average
net assets ............................... 4.76%(b) 4.59% 4.65% 5.04%(b)
<FN>
(a) Without the waiver of advisory, administration and transfer agent fees and
without the reimbursement of certain operating expenses, the ratios of
expenses to average net assets for the Money Market Portfolio would have
been 1.21% for the six months ended February 28, 1998, 1.22%, 1.23% and
1.23% for the years ended August 31, 1997, 1996 and 1995, respectively.
(b) Annualized.
</FN>
</TABLE>
25
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONCLUDED)
FEBRUARY 28, 1998
(UNAUDITED)
NOTE 5. OTHER FINANCIAL HIGHLIGHTS (CONTINUED)
THE JANNEY MONTGOMERY SCOTT FAMILY (CONTINUED)
<TABLE>
<CAPTION>
MUNICIPAL MONEY MARKET PORTFOLIO
---------------------------------------------------------------------------
FOR THE PERIOD
FOR THE FOR THE FOR THE JUNE 12, 1995
SIX MONTHS YEAR YEAR (COMMENCEMENT OF
ENDED ENDED ENDED OPERATIONS) TO
FEBRUARY 28, 1998 AUGUST 31, 1997 AUGUST 31, 1996 AUGUST 31, 1995
----------------- --------------- --------------- ---------------
(UNAUDITED)
<S> <C> <C> <C> <C>
Net asset value, beginning of period ......... $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- ------- --------
Income from investment operations:
Net investment income ...................... 0.0145 0.0285 0.0278 0.0063
-------- -------- ------- --------
Total from investment operations ......... 0.0145 0.0285 0.0278 0.0063
-------- -------- ------- --------
Less distributions
Dividends (from net investment income) ..... (0.0145) (0.0285) (0.0278) (0.0063)
-------- -------- ------- --------
Total distributions ...................... (0.0145) (0.0285) (0.0278) (0.0063)
-------- -------- ------- --------
Net asset value, end of period ............... $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======= ========
Total Return ................................. 2.96%(b) 2.89% 2.81% 2.87%(b)
Ratios /Supplemental Data
Net assets, end of period (000) ............ $106,021 $108,826 $89,428 $113,256
Ratios of expenses to average net assets ... 0.86%(a)(b) 0.85%(a) 0.94%(a) 1.00%(a)(b)
Ratios of net investment income to average
net assets ............................... 2.93%(b) 2.85% 2.78% 2.83%(b)
<FN>
(a) Without the waiver of advisory, administration and transfer agent fees and
without the reimbursement of certain operating expenses, the ratios of
expenses to average net assets for the Municipal Money Market Portfolio
would have been 1.13% for the six months ended February 28, 1998, 1.13%,
1.23% and 1.30% for the years ended August 31, 1997, 1996 and 1995,
respectively.
(b) Annualized.
</FN>
</TABLE>
26
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FEBRUARY 28, 1998
(UNAUDITED)
NOTE 5. OTHER FINANCIAL HIGHLIGHTS (CONTINUED)
THE JANNEY MONTGOMERY SCOTT FAMILY (CONTINUED)
<TABLE>
<CAPTION>
GOVERNMENT OBLIGATIONS MONEY MARKET PORTFOLIO
---------------------------------------------------------------------------
FOR THE PERIOD
FOR THE FOR THE FOR THE JUNE 12, 1995
SIX MONTHS YEAR YEAR (COMMENCEMENT OF
ENDED ENDED ENDED OPERATIONS) TO
FEBRUARY 28, 1998 AUGUST 31, 1997 AUGUST 31, 1996 AUGUST 31, 1995
----------------- --------------- --------------- ---------------
(UNAUDITED)
<S> <C> <C> <C> <C>
Net asset value, beginning of period ......... $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- --------
Income from investment operations:
Net investment income ...................... 0.0230 0.0447 0.0456 0.0109
-------- -------- -------- --------
Total from investment operations ......... 0.0230 0.0447 0.0456 0.0109
-------- -------- -------- --------
Less distributions
Dividends (from net investment income) ..... (0.0230) (0.0447) (0.0456) (0.0109)
-------- -------- -------- --------
Total distributions ...................... (0.0230) (0.0447) (0.0456) (0.0109)
-------- -------- -------- --------
Net asset value, end of period ............... $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ========
Total Return ................................. 4.56%(b) 4.56% 4.66% 5.03%(b)
Ratios /Supplemental Data
Net assets, end of period (000) ............ $396,067 $352,950 $306,757 $302,585
Ratios of expenses to average net assets ... 1.00%(a)(b) 1.00%(a) 1.00%(a) 1.00%(a)(b)
Ratios of net investment income to average
net assets ............................... 4.65%(b) 4.47% 4.56% 4.91%(b)
<FN>
(a) Without the waiver of advisory, administration and transfer agent fees and
without the reimbursement of certain operating expenses, the ratios of
expenses to average net assets for the Government Obligations Money Market
Portfolio would have been 1.23% for the six months ended February 28, 1998,
1.23%, 1.25% and 1.28% for the years ended August 31, 1997, 1996 and 1995,
respectively.
(b) Annualized.
</FN>
</TABLE>
27
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FEBRUARY 28, 1998
(UNAUDITED)
NOTE 5. OTHER FINANCIAL HIGHLIGHTS (CONTINUED)
THE SANSOM STREET FAMILY
<TABLE>
<CAPTION>
MONEY MARKET PORTFOLIO
-------------------------------------------------------------------------------------
FOR THE FOR THE FOR THE FOR THE FOR THE
SIX MONTHS YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED
FEBRUARY 28, 1998 AUGUST 31, 1997 AUGUST 31, 1996 AUGUST 31, 1995 AUGUST 31, 1994
----------------- --------------- --------------- --------------- ---------------
(UNAUDITED)
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period ......... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------- --------
Income from investment operations:
Net investment income ..................... 0.0260 0.0510 0.0518 0.0543 0.0334
-------- -------- -------- -------- --------
Total from investment operations ...... 0.0260 0.0510 0.0518 0.0543 0.0334
-------- -------- -------- -------- --------
Less distributions
Dividends (from net investment income) ....... (0.0260) (0.0510) (0.0518) (0.0543) (0.0334)
-------- -------- -------- -------- --------
Total distributions ................... (0.0260) (0.0510) (0.0518) (0.0543) (0.0334)
-------- -------- -------- -------- --------
Net asset value, end of period ............... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ========
Total Return ................................. 5.37%(b) 5.22% 5.30% 5.57% 3.39%
Ratios /Supplemental Data
Net assets, end of period ................. $686,552 $570,018 $524,359 $441,614 $373,745
Ratios of expenses to average net assets .. .49%(a)(b) .49%(a) .48%(a) .39%(a) .39%(a)
Ratios of net investment income to
average net assets ...................... 5.23%(b) 5.10% 5.18% 5.43% 3.34%
<FN>
(a) Without the waiver of advisory 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 .63% for
the six months ended February 28, 1998, .64%, .65%, .59% and .60% for the
years ended August 31, 1997, 1996, 1995 and 1994, respectively.
(b) Annualized.
</FN>
</TABLE>
28
<PAGE>
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<PAGE>
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<PAGE>
================================================================================
INVESTMENT ADVISER
PNC Institutional Management Corporation
Wilmington, Delaware
CUSTODIAN
PNC Bank, National Association
Philadelphia, Pennsylvania
ADMINISTRATOR AND TRANSFER AGENT
PFPC Inc.
Wilmington, Delaware
COUNSEL
Drinker Biddle & Reath LLP
Philadelphia, Pennsylvania
INDEPENDENT ACCOUNTANTS
Coopers & Lybrand L.L.P.
Philadelphia, Pennsylvania
================================================================================
