CASH PRESERVATION
PORTFOLIOS
[graphic omitted]
MONEY MARKET PORTFOLIO
AND
MUNICIPAL MONEY MARKET
PORTFOLIO
Semi-Annual Report
February 28, 1999
<PAGE>
CASH PRESERVATION FAMILY
THE RBB FUND, INC.
SEMI-ANNUAL INVESTMENT ADVISER'S REPORT
United States government securities were a clear beneficiary of the global
financial turbulence that dominated the markets in the second half of 1998.
Propelled by a strong flight to safety, yields on short-term treasury and agency
obligations fell sharply. Three-month treasury bill yields, for example,
declined to as low as 3.65% in October, a drop of over 100 basis points in less
than six months. The reasons for such a strong rally were many. The financial
crisis that started a year ago in Asia spread to South America, Latin America
and Russia where a devaluation and default made the situation appear
particularly ominous. The rescue of a large U.S. based hedge fund in September
also weighed heavily on investor confidence. As the threat of economic recession
reaching the United States mounted, the Federal Reserve began an aggressive
campaign to add liquidity to the financial system. Between September 29 and
November 17, the Fed eased monetary policy three times, taking the federal funds
rate down to 4.75%. Encouraged by similar moves by other central banks, the
financial markets regained some measure of confidence by year-end. Treasury bill
yields rose to 4.5% and equity markets staged strong recoveries.
In addition to the strong rally in U.S. treasury obligations, the money
markets witnessed a flattening of the yield curve as sentiment shifted towards
an accommodative Fed that was willing to lower short-term interest rates to
protect U.S. economic interests. In response, the Money Market Portfolio sought
to maintain moderately extended portfolio maturities to cushion their yields
against the likelihood of still lower rates. Additionally, portfolio credit
quality was given significant emphasis as both foreign and domestic bank and
financial service companies came under intense ratings scrutiny. During the
final quarter of the year, we restricted quite a few bank and broker credits
from our list of approved securities. As of February 28, the Money Market
Portfolio had assets of $2,430,807,411.
In the short-term tax-exempt market, yields also trended lower, due in part
to the easing by the Fed but also due to generally lower new issue supply. As
rates declined, municipal issuers opted to switch from short-term money market
securities to longer-term debt issuance. The combination of lower supply and
increased demand, as municipal money market fund assets grew, dropped the
one-year Bond Buyer Note Index to 2.95%, versus 3.75% a year ago. The municipal
yield curve was frequently inverted during the period, and the Municipal Money
Market Portfolio maintained a high level of daily and weekly variable rate
demand notes to preserve yield and liquidity. At the end of February, the
Municipal Money Market Portfolio had assets of $272,481,826.
BlackRock Institutional Management Corporation
(Please dial toll-free800-430-9618 for questions regarding
your account or contact your broker.)
<PAGE>
CASH PRESERVATION FAMILY
THE RBB FUND, INC.
MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS
FEBRUARY 28, 1999
(UNAUDITED)
PAR
(000) VALUE
------- ------------
CERTIFICATES OF DEPOSIT--13.9%
DOMESTIC CERTIFICATES OF DEPOSIT--5.2%
First National Bank of Chicago
4.975% 06/07/99 ............................ $ 25,000 $ 25,001,367
4.980% 01/06/00 ............................ 50,000 49,991,778
First Tennessee Bank N.A
4.900% 04/19/99 ............................ 50,000 50,000,000
------------
124,993,145
------------
YANKEE DOLLAR CERTIFICATES OF DEPOSIT--8.7%
Canadian Imperial Bank of Commerce
5.025% 01/27/00 ............................ 30,000 29,998,684
5.120% 02/23/00 ............................ 22,300 22,289,278
Credit Communal de Belgique
5.750% 04/01/99 ............................ 30,000 29,998,777
National Westminster Bank
4.980% 01/10/00 ............................ 15,000 14,997,502
Rabobank Nederland
5.660% 07/06/99 ............................ 10,000 10,020,543
Svenska Handelsbanken Inc.
5.720% 03/31/99 ............................ 25,000 24,998,819
Toronto Dominion NY
5.000% 01/05/00 ............................ 15,000 14,998,771
5.100% 02/22/00 ............................ 20,000 19,992,439
Westpac Banking Corp.
5.730% 04/16/99 ............................ 45,000 44,998,370
------------
212,293,183
------------
TOTAL CERTIFICATES OF DEPOSIT
(Cost $337,286,328) .................... 337,286,328
------------
COMMERCIAL PAPER--58.1%
AIRCRAFT ENGINES & PARTS--4.0%
Allied Signal Inc. 4-2
4.810% 04/30/99 ............................ 48,000 47,615,200
4.830% 05/28/99 ............................ 25,000 24,704,833
4.920% 09/10/99 ............................ 25,000 24,340,583
------------
96,660,616
------------
PAR
(000) VALUE
-------- ------------
ASSET BACKED SECURITIES--17.5%
Barton Capital Corp. 4-2
4.870% 03/12/99 ............................ $ 75,211 $ 75,099,082
4.850% 04/19/99 ............................ 24,944 24,779,335
CXC Inc. 4-2
4.870% 03/16/99 ............................ 20,080 20,039,254
4.850% 04/12/99 ............................ 40,000 39,773,667
Dakota Certificates 4-2
4.880% 03/04/99 ............................ 40,000 39,983,733
4.840% 05/04/99 ............................ 50,000 49,569,778
4.830% 05/21/99 ............................ 25,000 24,728,312
Enterprise Funding Corp. 4-2
4.850% 05/25/99 ............................ 15,753 15,572,606
4.870% 05/25/99 ............................ 12,000 11,862,017
Quincy Cap Corp. 4-2
4.860% 03/12/99 ............................ 27,947 27,905,499
Triple A-1 Funding 4-2
4.860% 04/23/99 ............................ 55,291 54,895,393
Windmill Funding 4-2
4.850% 03/09/99 ............................ 40,000 39,956,889
------------
424,165,565
------------
BANKS--7.7%
AB Spin Tab Swedmortgage 3-A-3
5.170% 03/03/99 ............................ 30,000 29,991,383
5.510% 03/04/99 ............................ 25,000 24,988,521
5.060% 04/16/99 ............................ 40,000 39,741,378
4.910% 06/28/99 ............................ 50,000 49,188,486
4.840% 08/16/99 ............................ 20,000 19,548,267
Bank of America FSB 3-A-3
4.830% 07/27/99 ............................ 25,000 24,503,583
------------
187,961,618
------------
BUSINESS CREDIT INSTITUTIONS--2.1%
General Electric Capital Corp.
4.940% 03/16/99 ............................ 50,000 49,897,083
------------
COMMUNICATION EQUIPMENT NEC--1.6%
Alcatel Alsthom Inc. 3-A-3
4.900% 06/08/99 ............................ 40,000 39,461,000
------------
See Accompanying Notes to Financial Statements.
2
<PAGE>
CASH PRESERVATION FAMILY
THE RBB FUND, INC.
MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS (CONTINUED)
FEBRUARY 28, 1999
(UNAUDITED)
PAR
(000) VALUE
--------- ------------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT--0.4%
General Electric Co. 3-A-3
4.820% 06/03/99 .............................. $ 9,969 $ 9,843,535
--------------
LIFE INSURANCE--1.0%
Prudential Funding Corp. 3-A-3
4.760% 07/15/99 .............................. 25,000 24,550,444
--------------
MOTOR VEHICLES & CAR BODIES--0.6%
Daimler-Benz North America 3-A-3
5.060% 04/05/99 .............................. 15,000 14,926,208
--------------
NEWSPAPER: PUBLISHING & PRINTING--5.5%
Knight-Ridder Inc.-DCP 3-A-3
5.200% 03/18/99 .............................. 30,000 29,926,333
4.780% 06/14/99 .............................. 20,000 19,721,167
5.000% 06/14/99 .............................. 15,000 14,781,250
Knight-Ridder Inc.-DCP 4-2
5.200% 03/18/99 .............................. 20,000 19,950,889
5.200% 04/14/99 .............................. 50,000 49,682,222
--------------
134,061,861
--------------
PERSONAL CREDIT INSTITUTIONS--3.1%
General Motors Acceptance Corp.
3-A-3
4.870% 03/01/99 .............................. 75,000 75,000,000
--------------
PETROLEUM REFINING--4.8%
Koch Industries, Inc. 4-2
4.850% 03/04/99 .............................. 1,000 999,596
Repsol International 3-A-3
5.180% 03/15/99 .............................. 33,000 32,933,523
4.880% 06/07/99 .............................. 13,590 13,409,464
4.910% 06/28/99 .............................. 21,000 20,659,164
4.870% 07/15/99 .............................. 50,000 49,080,111
--------------
117,081,858
--------------
SECURITY BROKERS & DEALERS--7.1%
Goldman Sachs Group L.P.
5.230% 03/19/99 .............................. 73,000 72,809,105
Merrill Lynch & Co. Inc. 3-A-3
4.920% 03/05/99 .............................. 25,000 24,986,333
4.900% 05/24/99 .............................. 25,000 24,714,167
Morgan Stanley, Dean, Witter & Co.
4.810% 05/14/99 .............................. 50,000 49,505,639
--------------
172,015,244
--------------
PAR
(000) VALUE
-------- --------------
SHORT-TERM BUSINESS CREDIT INSTITUTIONS--2.1%
Heller Financial Inc. 3-A-3
4.940% 03/24/99 .......................... $ 50,000 $ 49,842,194
--------------
TELEPHONE COMMUNICATIONS--0.6%
BellSouth Telecommunications 3-A-3
4.780% 03/05/99 .......................... 12,568 12,561,325
GTE Funding 3-A-3
4.800% 03/26/99 .......................... 3,100 3,089,667
--------------
15,650,992
--------------
TOTAL COMMERCIAL PAPER
(Cost $1,411,118,218) ................ 1,411,118,218
--------------
MUNICIPAL BONDS--3.1%
FLORIDA--0.1%
Coral Springs,VRDN IDR (Suntrust)(DAGGER)
4.950% 03/03/99 .......................... 2,500 2,500,000
--------------
GEORGIA--0.4%
De Kalb County Development Authority
VRDN Series 1995 B (Emory
University Project)(DAGGER)
4.950% 02/28/99 .......................... 9,485 9,485,000
--------------
ILLINOIS--0.2%
Illinois Health Facilities Authority
Convertible/ VRDN Revenue Bond
(The Streeterville Corp. Project)
Series 1993-B (First National Bank
of Chicago)(DAGGER)
4.950% 03/03/99 .......................... 4,400 4,400,000
--------------
INDIANA--0.1%
Bremen, Inc. VRDN
Series 1996 B (Society National
Bank, Cleveland)(DAGGER)
5.448% 03/04/99 .......................... 2,800 2,800,000
--------------
KENTUCKY--0.2%
Boone County Taxable IDR Refunding
Bonds VRDN (Square D Company
Project) Series 1994-B
(Credit Lyonnais)(DAGGER)
4.950% 03/03/99 .......................... 4,200 4,200,000
--------------
See Accompanying Notes to Financial Statements.
3
<PAGE>
CASH PRESERVATION FAMILY
THE RBB FUND, INC.
MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS (CONTINUED)
FEBRUARY 28, 1999
(UNAUDITED)
PAR
(000) VALUE
--------- ------------
MISSISSIPPI--1.1%
Hinds County, IDR Revenue Bond
VRDN Series 1992(DAGGER)
4.950% 03/03/99 .......................... $ 1,690 $ 1,690,000
Mississippi Business Finance Corp.
IDR Revenue Bond VRDN (Dana
Lighting Project) Series 1995
(Sun Bank, N.A., Orlando)(DAGGER)
4.950% 03/07/99 .......................... 5,600 5,600,000
Mississippi Business Finance Corp.
Taxable IDR Revenue Bond VRDN
(Sun Bank, N.A., Orlando)
Series 1995(DAGGER)
4.950% 03/07/99 .......................... 6,300 6,300,000
Mississippi Business Finance Corp.
Taxable IDR Revenue Bond VRDN
(Bryan Foods, Inc. Project)
Series 1994(DAGGER)
4.950% 03/03/99 .......................... 14,000 14,000,000
--------------
27,590,000
--------------
NORTH CAROLINA--0.4%
City of Asheville Tax Corp. VRDN(DAGGER)
4.950% 03/03/99 .......................... 10,800 10,800,000
--------------
TEXAS--0.6%
South Central Texas Industrial
Development Corp. Taxable IDR
Revenue Bond VRDN (Rohr
Industries Project) Series 1990
(Citibank N.A.)(DAGGER)
4.950% 03/03/99 .......................... 14,800 14,800,000
--------------
TOTAL MUNICIPAL BONDS
(Cost $76,575,000) ................... 76,575,000
--------------
VARIABLE RATE OBLIGATIONS--15.4%
BANKS--6.0%
Istituto Bancario Sao Paolo di Torino(DAGGER)
5.088% 03/08/99 .......................... 25,000 24,995,328
Nations Bank(DAGGER)
5.303% 04/02/99 .......................... 70,000 70,001,937
Royal Bank of Canada(DAGGER)
4.883% 03/14/99 .......................... 50,000 49,981,110
--------------
144,978,375
--------------
PAR
(000) VALUE
-------- --------------
FINANCE SERVICES--2.0%
General American Life(DAGGER)
5.140% 03/01/99 .......................... $ 50,000 $ 50,000,000
--------------
PERSONAL CREDIT INSTITUTIONS--6.4%
American Honda Finance Corp.(DAGGER)
5.219% 03/14/99 .......................... 40,000 40,000,000
5.200% 03/16/99 .......................... 25,000 25,000,000
4.938% 04/28/99 .......................... 35,000 35,000,000
3.085% 05/25/99 .......................... 15,000 14,997,033
General Motors Acceptance Corp.(DAGGER)
4.914% 05/26/99 .......................... 40,000 39,992,275
--------------
154,989,308
--------------
SECURITY BROKERS & DEALERS--1.0%
Bear Stearns Companies, Inc.(DAGGER)
4.905% 03/08/99 .......................... 25,000 25,000,218
--------------
TOTAL VARIABLE RATE OBLIGATIONS
(Cost $374,967,901) .................. 374,967,901
--------------
MEDIUM TERM NOTES--0.3%
SECURITY BROKERS & DEALERS--0.3%
Goldman Sachs Group LP
5.280% 02/24/00 .......................... 7,500 7,499,852
--------------
TOTAL MEDIUM TERM NOTES
(Cost $7,499,852) .................... 7,499,852
--------------
TIME DEPOSITS--3.1%
Bank of Montreal
4.875% 03/01/99 .......................... 75,000 75,000,000
--------------
TOTAL TIME DEPOSITS
(Cost $75,000,000) ................... 75,000,000
--------------
See Accompanying Notes to Financial Statements.
4
<PAGE>
CASH PRESERVATION FAMILY
THE RBB FUND, INC.
MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS (CONCLUDED)
FEBRUARY 28, 1999
(UNAUDITED)
PAR
(000) VALUE
--------- --------------
REPURCHASE AGREEMENTS--5.8
Lehman Brothers
(Agreement dated 02/26/99 to be
repurchased at $141,356,520,
collateralized by $91,564,115
Federal Home Loan Mortgage
Corporation Collateralized Mortgage
Obligation at rates of 6.23% to
6.849% due 04/15/28 to 09/15/28,
$21,738,647 Federal National
Mortgage Association Collateralized
Mortgage Obligation at a rate of
6.50% due 09/25/28, $10,337,915
Federal Home Loan Mortgage
Corporation Collateralized Mortgage
Obligation at a rate of 5.44% due
02/15/28, $21,905,196 Federal
National Mortgage Association
Collateralized Mortgage Obligation
at rates of 6.50% to 7.00% due
09/25/28 to 11/15/28. Market Value
of Collateral is $145,545,873.)
4.800% 03/01/99 ....................... $141,300 $ 141,300,000
--------------
TOTAL REPURCHASE AGREEMENTS
(Cost $141,300,000) ................. 141,300,000
--------------
TOTAL INVESTMENTS AT VALUE--99.7%
(Cost $2,423,747,299*) .................. 2,423,747,299
--------------
VALUE
--------------
OTHER ASSETS IN EXCESS
OF LIABILITIES--0.3% .................... $ 7,060,112
--------------
NET ASSETS (Applicable to 589,664,368
Bedford shares, 158,401 Cash
Preservation shares, 1,034,494,733
Janney Montgomery Scott shares,
776,662,225 Sansom Street shares,
29,824,176 Select shares, and 800
other shares)--100.0% ................... $2,430,807,411
==============
NET ASSET VALUE, Offering and
Redemption Price Per Share
($2,430,807,411 (DIVIDE) 2,430,804,703 .. $1.00
=====
* Also cost for Federal income tax purposes.
(DAGGER) Variable Rate Obligations -- The rate shown is the rate as of February
28, 1999 and the maturity date shown is the longer of the next interest
rate readjustment date or the date the principal amount shown can be
recovered through demand.
INVESTMENT ABBREVIATIONS
VRDN ..................................................Variable Rate Demand Note
LOC ............................................................Letter of Credit
IDR ..............................................Industrial Development Revenue
See Accompanying Notes to Financial Statements.
5
<PAGE>
CASH PRESERVATION FAMILY
THE RBB FUND, INC.
MUNICIPAL MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS
FEBRUARY 28, 1999
(UNAUDITED)
PAR
(000) VALUE
-------- --------------
MUNICIPAL BONDS--99.3%
ARKANSAS--1.2%
Arkansas Development Finance
Authority Single Family Mortgage
RB Mortgage-Backed Securities
Program MB(DOUBLE DAGGER)
3.700% 07/01/99 .......................... $ 3,230 $ 3,230,000
--------------
CALIFORNIA--1.1%
California Higher Education Student
Loan RB DN Series D-2(DOUBLE DAGGER)
3.650% 07/01/99 .......................... 3,000 3,000,000
--------------
CONNECTICUT--1.1%
Connecticut Special Assessment
Unemployment Compensation
Advance Fund (Connecticut
Unemployment Project) Series
1993 C MB(DOUBLE DAGGER)
3.600% 07/01/99 .......................... 3,000 3,000,000
--------------
FLORIDA--4.4%
Orange County, IDA RB (Lake Highland
School Project) DN(DAGGER)
2.900% 03/07/99 .......................... 1,200 1,200,000
Capital Projects Finance Authority
(Florida Hospital Association -
Capital Projects Loan Program)
Series 1998A DN(DAGGER)
3.100% 03/07/99 .......................... 2,500 2,500,000
Flagler County Florida School
District TAN
3.890% 06/30/99 .......................... 3,300 3,301,447
Greater Orlando Airport Authority RB
TECP
3.100% 05/20/99 .......................... 5,104 5,104,000
--------------
12,105,447
--------------
GEORGIA--10.8%
Bulloch County, Development Authority
of, Tax-Exempt Adjustable Mode
IDA RB (Gold Kist Inc. Project) DN(DAGGER)
3.050% 03/07/99 .......................... 5,700 5,700,000
PAR
(000) VALUE
------- --------------
GEORGIA--(CONTINUED)
Burke County Development Authority
PCR RB (Oglethorpe Power
Corporation Vogtle Project) MB(DOUBLE DAGGER)
3.400% 05/27/99 ............................... $ 3,600 $ 3,600,000
Burke County Development Authority
RB (Oglethorpe Power Corp. Vogtle
Project) Series 1996 MB(DOUBLE DAGGER)
3.450% 05/01/99 ............................... 5,000 5,000,000
Forsyth County, Development
Authority of, IDA RB (World Access,
Inc. Project) 1998 DN(DAGGER)
3.100% 03/07/99 ............................... 2,000 2,000,000
McDuffie County, Development
Authority Of, Georgia Waste
Disposal RB (Temple-Inland Forest
Products Corporation) 1998 TECP
3.500% 05/18/99 ............................... 2,500 2,500,000
Monroe County Development Authority
PCR RB (Oglethorpe Power
Corporation, Scherer Project) MB(DOUBLE DAGGER)
3.500% 05/28/99 ............................... 5,615 5,615,000
Savannah Economic Development
Authority RB (Georgia Kaolin Inc.)
DN(DAGGER)
3.050% 03/07/99 ............................... 5,000 5,000,000
--------------
29,415,000
--------------
IDAHO--1.4%
Idaho State TAN
4.500% 06/30/99 ............................... 3,750 3,760,795
--------------
ILLINOIS--13.0%
Addison, Village Of, Dupage County,
Industrial Revenue Refunding Bonds
(General Binding Corp. Project)
1988 DN(DAGGER)
3.220% 03/07/99 ............................... 1,750 1,750,000
Chicago Gas Supply RB (Peoples Gas
Light & Coke Co. Project)
1993B MB(DOUBLE DAGGER)
3.200% 12/01/99 ............................... 5,575 5,575,000
See Accompanying Notes to Financial Statements.
6
<PAGE>
CASH PRESERVATION FAMILY
THE RBB FUND, INC.
MUNICIPAL MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS (CONTINUED)
FEBRUARY 28, 1999
(UNAUDITED)
PAR
(000) VALUE
------- --------------
ILLINOIS--(CONTINUED)
Chicago, City Of, IDA RB (Goose
Island Beer O. Project) DN(DAGGER)
3.350% 03/07/99 ......................... $ 2,100 $ 2,100,000
Chicago, City Of, IDA RB Series 1998
(Zenith Controls Inc. Project) DN(DAGGER)
3.010% 03/07/99 ......................... 5,000 5,000,000
East Dundee, Kane and Cook Counties,
IDA RB (Otto Engine Project) DN(DAGGER)
3.010% 03/07/99 ......................... 1,000 1,000,000
Illinois Health Facilites Authority
(Children's Memorial Hospital)
Series A MB(DOUBLE DAGGER)
2.950% 06/25/99 ......................... 2,000 2,000,000
Illinois Health Facilities Authority
Revolving Fund Pooled Financing
Program (The University of Chicago
Project) TECP
2.950% 05/03/99 ......................... 4,000 4,000,000
Illinois Health Facility Authority RB
(Evanston Hospital Corp. Project)
Series 1996 MB(DOUBLE DAGGER)
3.700% 07/15/99 ......................... 5,000 5,000,000
Illinois Health Facility Authority RB MB
(Evanston Hospital Corp. Project)
Series A(DOUBLE DAGGER)
3.150% 08/02/99 ......................... 5,000 5,000,000
Illinois Housing Development Authority
Community Redevelopment RB
Series 1998 (Howard Theatre
Development) DN(DAGGER)
3.010% 03/07/99 ......................... 2,800 2,800,000
Plainfield, Village of, IDA RB Series
1997 (Plainfield Moldings, Inc.
Project) DN(DAGGER)
3.010% 03/07/99 ......................... 1,300 1,300,000
--------------
35,525,000
--------------
INDIANA--10.0%
Bremen IDA RB Series 1996 A
(Universal Bearings, Inc. Project
Private Placement) DN(DAGGER)
3.050% 03/07/99 ......................... 5,000 5,000,000
PAR
(000) VALUE
-------- --------------
INDIANA--(CONTINUED)
Crawfordsville Industrial Economic
Development RB (Pedcor
Investments-Shady Knoll Apartments
Project) DN(DAGGER)
3.050% 03/07/99 ......................... $ 3,365 $ 3,365,000
Indiana Development Finance
Authority IDA RB (Enterprise
Center I Project) DN(DAGGER)
3.010% 03/07/99 ......................... 2,900 2,900,000
Indiana Development Finance
Authority IDA RB (Enterprise
Center II Project) DN(DAGGER)
3.010% 03/07/99 ......................... 2,000 2,000,000
Indiana Development Finance
Authority IDA RB (Enterprise
Center IV Project) DN(DAGGER)
3.010% 03/07/99 ......................... 2,600 2,600,000
Indiana Development Finance
Authority IDA RB (Enterprise
Center VI Project) DN(DAGGER)
3.010% 03/07/99 ......................... 4,900 4,900,000
Indiana State Development
Finance Authority Economic
Development RB DN (Saroyan
Hardwoods Inc. Project)(DAGGER)
3.050% 03/07/99 ......................... 1,700 1,700,000
Portage Economic Development RB
(Breckenridge Apartments
Project) DN(DAGGER)
3.100% 03/07/99 ......................... 4,650 4,650,000
--------------
27,115,000
--------------
KANSAS--1.1%
Wyandotte County Kansas City
Municipal Temporary Notes
Series AAAA
3.300% 02/01/00 ......................... 2,096 2,096,625
Wyandotte County Kansas City
Municipal Temporary Notes
Series YYY
3.300% 02/01/00 ......................... 1,020 1,020,426
--------------
3,117,051
--------------
See Accompanying Notes to Financial Statements.
7
<PAGE>
CASH PRESERVATION FAMILY
THE RBB FUND, INC.
MUNICIPAL MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS (CONTINUED)
FEBRUARY 28, 199
(UNAUDITED)
PAR
(000) VALUE
-------- --------------
KENTUCKY--5.3%
Henderson Industrial Building RB
(Shamrock Technologies)
1997 DN(DAGGER)
3.050% 03/07/99 ......................... $ 3,341 $ 3,341,000
Kentucky Interlocal School
Transportation Association TRAN
Certificates of Participation
3.900% 06/30/99 ......................... 11,000 11,014,887
--------------
14,355,887
--------------
MARYLAND--1.5%
Maryland State Health & Higher
Educational Authority RB (Doctors
Community Hospital) Series 1997 -
Second Issue DN(DAGGER)
2.890% 03/07/99 ......................... 2,000 2,000,000
Montgomery County Economic
Development RB (Brooke Grove
Foundation Inc. Project) Series
1998 DN(DAGGER)
2.890% 03/07/99 ......................... 2,000 2,000,000
--------------
4,000,000
--------------
MASSACHUSETTS--3.2%
Commonwealth of Massachusetts
Federal Highway Grant Anticipation
Notes 1998 Series A Trust Receipt
DN(DAGGER)
3.000% 03/03/99 ......................... 900 900,000
Massachusetts State Development
Finance Agency RB (Hatfield Inc.
Project) 1998 DN(DAGGER)
2.950% 03/07/99 ......................... 4,000 4,000,000
Whiteman-Hanson Regional School
District BAN
4.000% 07/01/99 ......................... 1,000 1,000,481
Whiteman-Hanson Regional School
District RAN
4.100% 06/30/99 ......................... 2,800 2,803,127
--------------
8,703,608
--------------
PAR
(000) VALUE
------- --------------
MISSOURI--0.1%
Kansas City IDA RB (Mid-America
Health Services, Inc. Project)
Series 1984 DN(DAGGER)
3.150% 03/07/99 .......................... $ 400 $ 400,000
--------------
NEBRASKA--1.4%
Lancaster (Sun-Husker Foods, Inc.
Project) DN(DAGGER)
4.300% 03/07/99 .......................... 3,800 3,800,000
--------------
NEW HAMPSHIRE--1.5%
Dover BAN
4.250% 03/03/99 .......................... 1,000 1,000,057
New Hampshire State Business
Finance Authority PCR RB (New
England Power Co. Project) MB(DOUBLE DAGGER)
3.450% 05/04/99 .......................... 3,000 3,000,000
--------------
4,000,057
--------------
NEW JERSEY--1.3%
New Jersey Economic Development
Authority RB (J. Jams Realty
Co.) DN(DAGGER)
2.850% 03/07/99 ........................... 480 480,000
South Jersey Transportation Authority
RB Series 1998 DN(DAGGER)
2.950% 11/03/99 ........................... 3,000 3,000,000
--------------
3,480,000
--------------
NEW YORK--1.4%
New York City G.O. DN 1992
Series D(DAGGER)
2.750% 03/01/99 ........................... 1,200 1,200,000
New York Housing Development
Corp. Multifamily Rental Housing
RB Related - Carnegie Park DN(DAGGER)
2.700% 03/07/99 ........................... 500 500,000
Niagara County IDA Solid Waste
Disposal RB Series B DN
American Re-Fuel(DAGGER)
2.900% 03/07/99 ........................... 2,000 2,000,000
--------------
3,700,000
--------------
See Accompanying Notes to Financial Statements.
8
<PAGE>
CASH PRESERVATION FAMILY
THE RBB FUND, INC.
MUNICIPAL MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS (CONTINUED)
FEBRUARY 28, 1999
(UNAUDITED)
PAR
(000) VALUE
-------- --------------
NORTH CAROLINA--5.0%
Mecklenburg County G.O.
Series 1996C DN(DAGGER)
2.850% 03/07/99 ......................... $ 6,700 $ 6,700,000
North Carolina Medical Care
Commission Hospital RB Moses
Cone Health System Series 1998
DN(DAGGER)
3.000% 03/07/99 ......................... 6,800 6,800,000
Wake County Industrial Facilities and
Pollution Control Financing
Authority RB (Carolina Power &
Light Co. Project) Series 1987 DN(DAGGER)
3.050% 03/07/99 ......................... 200 200,000
--------------
13,700,000
--------------
OHIO--6.5%
Butler County BAN
3.500% 03/19/99 ......................... 2,000 2,000,392
3.550% 10/21/99 ......................... 1,000 1,002,481
Canfield Local School District BAN
3.800% 04/15/99 ......................... 4,900 4,900,406
Clinton County Hospital RB (Ohio
Hospital Capital, Inc. Pooled
Financing Programs) DN(DAGGER)
3.000% 03/07/99 ......................... 2,000 2,000,000
Mahoning County (Youngstown Iron
& Metal Inc. Project) DN(DAGGER)
3.100% 03/07/99 ......................... 1,940 1,940,000
Montgomery County Variable Rate
Healthcare Facilities RB
Series 1998 DN(DAGGER)
3.000% 03/07/99 ......................... 770 770,000
Ohio State Higher Education Facilities
Community RB Pooled Financing
DN(DAGGER)
3.000% 03/07/99 ......................... 2,635 2,635,000
Trumbull County Health Care Facilities
RB Series 1998 DN(DAGGER)
3.000% 03/07/99 ......................... 2,500 2,500,000
--------------
17,748,279
--------------
Par
(000) Value
-------- --------------
OKLAHOMA--1.8%
Oklahoma County Finance Authority
IDA RB (Southwest Electric Co.
Project) Series 1998 DN(DAGGER)
3.050% 03/07/99 ................................ $ 3,000 $ 3,000,000
Oklahoma Development Finance
Authority (Shawnee Funding
Limited) DN(DAGGER)
3.100% 03/07/99 ................................ 2,000 2,000,000
--------------
5,000,000
--------------
OREGON--0.6%
Portland Multifamily Housing RB
Village of Lovejoy Fountain DN(DAGGER)
3.000% 03/07/99 ................................ 1,600 1,600,000
--------------
RHODE ISLAND--0.6%
Rhode Island Housing and Mortgage
Finance Corp. Homeownership
Opportunity Bonds Series 24-B MB(DOUBLE DAGGER)
3.150% 12/15/99 ................................ 1,700 1,700,000
--------------
SOUTH CAROLINA--7.9%
Berkeley County IDA RB (Nucor Corp.)
Series 1998 DN(DAGGER)
3.050% 03/07/99 ................................ 3,100 3,100,000
Chesterfield County IDA RB (Culp,
Inc.) DN(DAGGER)
3.050% 03/07/99 ................................ 6,000 6,000,000
Marlboro County Solid Waste
Disposal Facilities RB (Willamette
Industries, Inc. Project) DN(DAGGER)
3.050% 03/07/99 ................................ 1,100 1,100,000
Marlboro County, IDA RB (Reliance
Trading Corp. of America Project)
1997 DN(DAGGER)
3.010% 03/07/99 ................................ 1,150 1,150,000
South Carolina Jobs Economic
Development Authority (Ellcon
National Inc. Project) Series 1998B
DN(DAGGER)
3.050% 03/07/99 ................................ 3,000 3,000,000
South Carolina Jobs Economic
Development Authority (YMCA)
1997 DN(DAGGER)
2.950% 03/07/99 ................................ 2,560 2,560,000
See Accompanying Notes to Financial Statements.
9
<PAGE>
CASH PRESERVATION FAMILY
THE RBB FUND, INC.
MUNICIPAL MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS (CONCLUDED)
FEBRUARY 28, 1999
(UNAUDITED)
PAR
(000) VALUE
-------- --------------
SOUTH CAROLINA--(CONTINUED)
South Carolina Jobs Economic
Development Authority RB (Tate
Metalworks, Inc. Project) 1998 DN(DAGGER)
3.050% 03/07/99 ......................... $ 1,000 $ 1,000,000
Williamsburg County, IDA RB
(Peddinghaus Corp. of South
Carolina Project) Series 1997 DN(DAGGER)
3.010% 03/07/99 ......................... 3,500 3,500,000
--------------
21,410,000
--------------
TENNESSEE--1.9%
Oak Ridge Solid Waste Disposal Facility
Series 1996 M4 (Environmental
Project) DN(DAGGER)
3.100% 03/07/99 ......................... 5,100 5,100,000
--------------
TEXAS--4.1%
Brazos River Harbor Navigation
District of Brazoria County PCR RB
(The Dow Chemical Co. Project)
1988 TECP
2.800% 05/03/99 ......................... 9,980 9,980,000
Denton IDA (Hartzell Manufacturing
Inc. Project) DN(DAGGER)
3.250% 03/07/99 ......................... 1,300 1,300,000
--------------
11,280,000
--------------
VIRGINIA--6.1%
Metropolitan Washington D.C. Airports
Authority Flexible Term Revenue
Notes TECP
2.950% 04/23/99 ......................... 5,000 5,000,000
Metropolitan Washington D.C. Airports
Authority, Passenger Facility
Flexible Term Notes TECP
3.000% 04/19/99 ......................... 4,500 4,500,000
Metropolitan Washington D.C. Airports
Authority, Passenger Facility
Flexible Term Notes TECP
3.100% 03/29/99 ......................... 7,000 7,000,000
--------------
16,500,000
--------------
PAR
(000) VALUE
-------- --------------
WASHINGTON--0.9%
Grant County, Industrial Development
Corp. of Port District No.1 (Dodson
Road Orchards, L.L.C. Project)
1998 DN(DAGGER)
3.000% 03/07/99 ......................... $ 2,500 $ 2,500,000
--------------
WISCONSIN--4.1%
Amery IDA RB (Plastech Corp.) Series
1997 DN(DAGGER)
3.250% 03/07/99 ......................... 2,000 2,000,000
Franklin, City Of, IDA RB Series 1998
(All Glass Aquarium Co., Inc.
Project) DN(DAGGER)
3.050% 03/07/99 ......................... 4,500 4,500,000
Mequon, City of, IDA RB (Johnson
Level GRW Investment Project) DN(DAGGER)
3.050% 03/07/99 ......................... 2,500 2,500,000
Wisconsin Rapids City IDA RB (Theile
Kaolin of Wisconsin, Inc. Project)
DN(DAGGER)
3.100% 03/07/99 ......................... 2,250 2,250,000
--------------
11,250,000
--------------
TOTAL MUNICIPAL BONDS
(Cost $270,496,124) ................. 270,496,124
--------------
See Accompanying Notes to Financial Statements.
10
<PAGE>
CASH PRESERVATION FAMILY
THE RBB FUND, INC.
MUNICIPAL MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS (CONCLUDED)
FEBRUARY 28, 1999
(UNAUDITED)
VALUE
-------------
TOTAL INVESTMENTS AT VALUE--99.3%
(Cost $270,496,124*) .................................... $270,496,124
-------------
OTHER ASSETS IN EXCESS
OF LIABILITIES--0.7% .................................... 1,985,702
-------------
NET ASSETS (Applicable to 153,902,250
Bedford shares, 228,816 Cash
Preservation shares, 118,424,557
Janney Montgomery Scott shares and
800 other shares)--100% ................................. $ 272,481,826
=============
NET ASSET VALUE, Offering and
redemption price per share
($272,481,826 (DIVIDE) 272,556,423) ..................... $1.00
=====
* Also cost for Federal income tax purposes.
(DAGGER) Variable Rate Demand Notes -- The rate shown is the rate as of February
28, 1999 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.
(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, 1999.
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.
11
<PAGE>
CASH PRESERVATION FAMILY
THE RBB FUND, INC.
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED FEBRUARY 28, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
MUNICIPAL
MONEY MARKET MONEY MARKET
PORTFOLIO PORTFOLIO
------------ ------------
<S> <C> <C>
Investment Income
Interest .................................................... $67,932,605 $4,722,446
----------- ----------
Expenses
Investment advisory fees .................................... 4,607,483 485,182
Administration fees ......................................... -- 141,069
Distribution fees ........................................... 5,473,879 841,262
Service organization fees ................................... 271,242 --
Directors' fees ............................................. 32,956 3,687
Custodian fees .............................................. 201,254 32,659
Transfer agent fees ......................................... 1,505,760 59,495
Legal fees .................................................. 56,943 6,260
Audit fees .................................................. 66,476 7,970
Registration fees ........................................... 150,000 54,000
Insurance expense ........................................... 21,022 2,354
Printing fees ............................................... 266,257 20,749
SEC fees .................................................... 2,611 1,869
Miscellaneous ............................................... 326 37
----------- ----------
12,656,209 1,656,593
Less fees waived and reimbursements ......................... (2,014,787) (418,057)
----------- ----------
Total expenses ......................................... 10,641,422 1,238,536
----------- ----------
Net investment income .......................................... 57,291,183 3,483,910
----------- ----------
Net realized gain/(loss) on investments ........................ 131,056 --
----------- ----------
Net increase in net assets resulting from operations ........... $57,422,239 $3,483,910
=========== ==========
</TABLE>
See Accompanying Notes to Financial Statements.
12
<PAGE>
CASH PRESERVATION 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, 1999 AUGUST 31, 1998 FEBRUARY 28, 1999 AUGUST 31, 1998
----------------- --------------- ----------------- ---------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
Increase (decrease) in net assets:
Operations:
Net investment income ........................... $ 57,291,183 $ 127,866,778 $ 3,483,910 $ 9,017,840
Net realized gain (loss) on investments ......... 131,056 (95,478) -- (3,055)
-------------- -------------- ------------ ------------
Net increase in net assets resulting
from operations ............................... 57,422,239 127,771,300 3,483,910 9,014,785
-------------- -------------- ------------ ------------
Distributions to shareholders:
Dividends to shareholders from
net investment income:
Bedford shares ................................ (18,350,903) (56,898,248) (2,044,881) (5,548,854)
Bradford shares ............................... -- -- -- (405,975)
Cash Preservation shares ...................... (4,108) (10,274) (1,572) (2,738)
Janney Montgomery Scott shares ................ (21,174,670) (38,111,646) (1,437,457) (3,060,273)
Select shares ................................. (352,247) -- -- --
Sansom Street shares .......................... (17,409,255) (32,846,610) -- --
Dividends to shareholders from
net realized short-term gains:
Bedford shares ................................ (2,671) (7,165) -- --
Bradford shares ............................... -- -- -- --
Cash Preservation shares ...................... (1) (1) -- --
Janney Montgomery Scott shares ................ (2,921) (3,979) -- --
Select shares ................................. (102) -- -- --
Sansom Street shares .......................... (2,010) (2,838) -- --
Total dividends to shareholders ............. (57,298,888) (127,880,761) (3,483,910) (9,017,840)
-------------- -------------- ------------ ------------
Net capital share transactions .................... 115,125,760 (384,357,868) 27,311,012 (242,871,946)
-------------- -------------- ------------ ------------
Total increase (decrease) in net assets ........... 115,249,111 (384,467,329) 27,311,012 (242,875,001)
Net Assets:
Beginning of period ............................. 2,315,558,300 2,700,025,629 245,170,814 488,045,815
-------------- -------------- ------------ ------------
End of period ................................... $2,430,807,411 $2,315,558,300 $272,481,826 $245,170,814
============== ============== ============ ============
</TABLE>
See Accompanying Notes to Financial Statements.
13
<PAGE>
CASH PRESERVATION 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,
1999 1998 1997 1996 1995
------------ ---------- ---------- ---------- ----------
(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 ............................. 0.0220 0.0474 0.0464 0.0471 0.0487
--------- -------- ------- ------- -------
Total from investment operations ................ 0.0220 0.0474 0.0464 0.0471 0.0487
--------- -------- ------- ------- -------
Less distributions
Dividends (from net investment income) ............ (0.0220) (0.0474 (0.0464) (0.0471) (0.0487)
--------- -------- ------- ------- -------
Total distributions ............................. (0.0220) (0.0474 (0.0464) (0.0471) (0.0487)
--------- -------- ------- ------- -------
Net asset value, end of period ...................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========= ======== ======= ======= =======
Total Return ........................................ 4.52%(c) 4.86% 4.74% 4.81% 4.98%
Ratios/Supplemental Data
Net assets, end of period (000) ................... $ 158 $ 226 $ 242 $ 202 $ 236
Ratios of expenses to average net assets .......... .95%(a)(c) .95%(a) .95%(a) .95%(a) .95%(a)
Ratios of net investment income to
average net assets .............................. 4.46%(c) 4.74% 4.64% 4.71% 4.87%
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,
1999 1998 1997 1996 1995
------------ ---------- ---------- ---------- ----------
(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 ............................. 0.0117 0.0274 0.0272 0.0274 0.0281
--------- ------- ------- ------- -------
Total from investment operations ................ 0.0117 0.0274 0.0272 0.0274 0.0281
--------- ------- ------- ------- -------
Less distributions
Dividends (from net investment income) ............ (0.0117) (0.0274) (0.0272) (0.0274) (0.0281)
--------- ------- ------- ------- -------
Total distributions ............................. (0.0117) (0.0274) (0.0272) (0.0274) (0.0281)
--------- ------- ------- ------- -------
Net asset value, end of period ...................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========= ======= ======= ======= =======
Total Return ........................................ 2.39%(c) 2.82% 2.76% 2.78% 2.84%
Ratios/Supplemental Data
Net assets, end of period (000) ................... $ 229 $ 92 $ 97 $ 116 $ 161
Ratios of expenses to average net assets .......... .98%(a)(c) .98%(a) .98%(a) .98%(a) .98%(a)
Ratios of net investment income to
average net assets .............................. 2.31%(c) 2.78% 2.72% 2.74% 2.81%
<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 been 11.07% for the six months ended February 28, 1999, 9.84%, 10.68%,
12.08% and 9.34% for the years ended August 31, 1998, 1997, 1996 and 1995,
respectively. For the Municipal Money Market Portfolio, the ratios of
expenses to average net assets would have been 13.43% for the six months
ended February 28, 1999, 23.15%, 26.58%, 19.20% and 10.80% for the years
ended August 31, 1998, 1997, 1996 and 1995, respectively.
(b) Financial Highlights relate solely to the Cash Preservation Class of shares
within each portfolio.
(c) Annualized.
</FN>
</TABLE>
See Accompanying Notes to Financial Statements.
14
<PAGE>
CASH PRESERVATION FAMILY
THE RBB FUND, INC.
NOTES TO FINANCIAL STATEMENTS
FEBRUARY 28, 1999
(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 19.83 billion shares are currently classified into ninety-seven classes.
Each class represents an interest in one of sixteen investment portfolios of the
Fund. The classes have been grouped into fifteen separate "families", nine of
which have begun investment operations: the RBB Family, the Select Family, the
Sansom Street Family, the Bedford Family, the Cash Preservation Family, the
Janney Montgomery Scott Money Family, the n/i numeric investors Family, the
Schneider Family, and the Boston Partners Family. The Cash Preservation Family
represents interests in two portfolios, 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 among all of the portfolios or classes of the Fund based on
relative net assets of each portfolio.
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 income tax regulations
which may differ from generally accepted accounting principles.
D) FEDERAL INCOME TAXES -- No provision is made for Federal taxes
as it is the Fund's intention to have 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 there repurchase price plus accrued interest. If the value of the
underlying securities falls below 102% of the value of the purchase price
plus accrued interest, the Fund will require the seller to deposit
additional collateral by the next Fund business day. In the event that the
seller under the agreement defaults on its repurchase obligation or fails
to deposit sufficient collateral, the Fund has the contractual right,
subject to the requirements of applicable bankruptcy and insolvency laws,
to sell the underlying securities and may claim any resulting loss from the
seller. 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.
15
<PAGE>
CASH PRESERVATION FAMILY
THE RBB FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FEBRUARY 28, 1999
(UNAUDITED)
NOTE 2. TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES
Pursuant to Investment Advisory Agreements, BlackRock Institutional
Management Corp. ("BIMC"), an indirect majority-owned subsidiary of PNC Bank,
serves as investment advisor for the four portfolios described herein.
For its advisory services, BIMC is entitled to receive the following fees,
computed daily and payable monthly based on each of the two portfolios' average
daily net assets:
<TABLE>
<CAPTION>
PORTFOLIO ANNUAL RATE
-------------------------------- ---------------------------------------------
<S> <C>
Money Market Portfolio .45% of first $250 million of net assets;
.40% of next $250 million of net assets;
.35% of net assets in excess of $500 million.
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.
</TABLE>
BIMC 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, 1999, advisory fees and waivers for
each of the two investment portfolios were as follows:
<TABLE>
<CAPTION>
GROSS NET
ADVISORY ADVISORY
FEE WAIVER FEE
---------- ----------- ----------
<S> <C> <C> <C>
Money Market Portfolio $4,607,483 $(1,724,370) $2,883,113
Municipal Money Market Portfolio 485,182 (344,725) 140,457
</TABLE>
The investment advisor has agreed to reimburse each portfolio for the
amount, if any, by which the total operating and management expenses exceed the
expense cap. For the year six months ended February 28, 1999, the reimbursed
expenses were $286,257 and $69,109 for the Money Market Portfolio and Municipal
Money Market Portfolio, respectively.
In addition, PFPC Trust Company serves as custodian for each of the Fund's
portfolios. PFPC Inc. ("PFPC") serves as each class's transfer and dividend
disbursing agent. Both PFPC Trust Company and PFPC are wholly-owned subsidiaries
of PFPC Worldwide Inc., an indirect majority-owned subsidiary of PNC Bank Corp.
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, 1999, transfer agency fees and waivers for each class of shares within the
two 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 $ 366,050 $ -- $ 366,050
Cash Preservation Class 4,419 (4,161) 258
Janney Montgomery Scott Class 840,000 -- 840,000
Sansom Street Class 295,291 -- 295,291
---------- ------- ----------
Total Money Market Portfolio $1,505,760 $(4,161) $1,501,599
========== ======= ==========
</TABLE>
16
<PAGE>
CASH PRESERVATION FAMILY
THE RBB FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FEBRUARY 28, 1999
(UNAUDITED)
NOTE 2. TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES (CONTINUED)
<TABLE>
<CAPTION>
GROSS NET
TRANSFER AGENCY TRANSFER AGENCY
FEE WAIVER FEE
--------------- ------ ---------------
<S> <C> <C> <C>
Municipal Money Market Portfolio
Bedford Class $ 2,400 $ -- $ 2,400
Cash Preservation Class 4,427 (4,222) 205
Janney Montgomery Scott Class 52,668 -- 52,668
------- ------- -------
Total Municipal Money Market Portfolio $59,495 $(4,222) $55,273
======= ======= =======
</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 each Portfolio's average daily net assets. For the six
months ended February 28, 1999, the administration fee for the Municipal Money
Market Portfolio was as follows:
ADMINISTRATION
FEE
--------------
Municipal Money Market Portfolio $141,069
The Fund, on behalf of each class of shares within the two investment
portfolios, has adopted Distribution Plans pursuant to Rule 12b-1 under the
Investment Company Act of 1940, as amended. The Fund has entered into
Distribution Contracts with Provident Distributors Inc. ("PDI"), 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, 1999, distribution fees for each
class were as follows:
DISTRIBUTION
FEE
------------
Money Market Portfolio
Bedford Class $2,384,887
Cash Preservation Class 368
Janney Montgomery Class 2,906,358
Sansom Street Class 182,266
----------
Total Money Market Portfolio $5,473,879
==========
Municipal Money Market Portfolio
Bedford Class $ 493,703
Cash Preservation Class 272
Janney Montgomery Class 347,287
----------
Total Municipal Money Market Portfolio $ 841,262
==========
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, 1999, service
organization fees were $271,242 for the Money Market Portfolio.
17
<PAGE>
CASH PRESERVATION FAMILY
THE RBB FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FEBRUARY 28, 1999
(UNAUDITED)
NOTE 3. CAPITAL SHARES
Transactions in capital shares (at $1.00 per capital share) for each period
were as follows:
<TABLE>
<CAPTION>
MONEY MARKET PORTFOLIO MUNICIPAL MONEY MARKET PORTFOLIO
---------------------------------- ----------------------------------
FOR THE FOR THE FOR THE FOR THE
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
FEBRUARY 28, 1999 AUGUST 31, 1998 FEBRUARY 28, 1999 AUGUST 31, 1998
----------------- --------------- ----------------- ---------------
(UNAUDITED) (UNAUDITED)
VALUE VALUE VALUE VALUE
----------------- --------------- ----------------- ---------------
<S> <C> <C> <C> <C>
Shares sold:
Bedford Class $ 1,267,431,197 $ 4,081,920,081 $ 354,672,272 $1,250,832,088
Bradford Class -- -- -- 59,917,620
Cash Preservation Class 61,164 113,319 150,238 65,859
Janney Montgomery Scott Class 2,305,678,119 3,910,533,620 228,204,533 404,988,148
Sansom Street Class 1,317,481,175 2,296,071,622 -- --
Select Class 90,525,850 -- -- --
Shares issued in reinvestment of dividends:
Bedford Class 18,390,680 56,201,453 2,067,392 5,440,322
Bradford Class -- -- -- 427,390
Cash Preservation Class 4,289 10,291 1,493 2,591
Janney Montgomery Scott Class 21,655,093 37,882,680 1,465,429 3,071,524
Sansom Street Class 13,647,696 24,189,907 -- --
Select Class 347,981 -- -- --
Shares repurchased:
Bedford Class (1,458,952,186) (4,768,237,064) (350,542,489) (1,321,667,987)
Bradford Class -- -- -- (226,438,837)
Cash Preservation Class (133,353) (139,525) (14,912) (73,397)
Janney Montgomery Scott Class (2,197,396,680) (3,780,710,398) (208,692,944) (419,437,268)
Sansom Street Class (1,202,565,612) (2,242,193,855) -- --
Select Class (61,049,653) -- -- --
--------------- --------------- ------------- --------------
Net increase (decrease) $ 115,125,760 $ (384,357,869) $ 27,311,012 $ (242,871,947)
=============== =============== ============= ==============
Cash Preservations Shares authorized 500,000,000 500,000,000 500,000,000 500,000,000
=============== =============== ============= ==============
</TABLE>
18
<PAGE>
CASH PRESERVATION FAMILY
THE RBB FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FEBRUARY 28, 1999
(UNAUDITED)
NOTE 4. NET ASSETS
At February 28, 1999, net assets consisted of the following:
<TABLE>
<CAPTION>
MUNICIPAL
MONEY MARKET MONEY MARKET
PORTFOLIO PORTFOLIO
-------------- ------------
<S> <C> <C>
Capital paid-in
Bedford Class $ 589,664,368 $153,902,350
Cash Preservation Class 158,401 228,816
Janney Montgomery Scott Class 1,034,494,733 118,424,557
Sansom Street Class 776,662,225 --
Select Class 29,824,176 --
Other Classes 800 800
Accumulated net realized gain (loss) on investments
Bedford Class (12,013) (73,952)
Cash Preservation Class (5) 3
Janney Montgomery Scott Class 8,010 (748)
Sansom Street Class 5,203 --
Select Class 1,513 --
-------------- ------------
$2,430,807,411 $272,481,826
============== ============
</TABLE>
19
<PAGE>
CASH PRESERVATION FAMILY
THE RBB FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FEBRUARY 28, 1999
(UNAUDITED)
NOTE 5. OTHER FINANCIAL HIGHLIGHTS
The Fund currently offers four other classes of shares representing
interest in the Money Market Portfolio:Bedford, Janney Montgomery Scott, Select,
and Sansom Street. The Fund currently offers two other classes of shares
representing interest in the Municipal Money Market Portfolio: Bedford and
Janney Montgomery Scott. Each class is marketed to different types of investors.
The financial highlights of certain of the other classes are as follows:
<TABLE>
<CAPTION>
THE BEDFORD FAMILY (b)
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, 1999 AUGUST 31, 1998 AUGUST 31, 1997 AUGUST 31, 1996 AUGUST 31, 1995
----------------- --------------- --------------- --------------- ---------------
(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 ................... 0.0219 0.0473 0.0462 0.0469 0.0486
--------- -------- ---------- ---------- --------
Total from investment operations ....... 0.0219 0.0473 0.0462 0.0469 0.0486
--------- -------- ---------- ---------- --------
Less distributions
Dividends (from net investment income) .. (0.0219) (0.0473) (0.0462) (0.0469) (0.0486)
--------- -------- ---------- ---------- --------
Total distributions .................... (0.0219) (0.0473) (0.0462) (0.0469) (0.0486)
--------- -------- ---------- ---------- --------
Net asset value, end of period ............ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========= ======== ========== ========== ========
Total Return ........................... 4.50%(c) 4.84% 4.72% 4.79% 4.97%
Ratios /Supplemental Data
Net assets, end of period (000) ......... $ 589,649 $762,739 $1,392,911 $1,109,334 $935,821
Ratios of expenses to average net assets .97%(a)(c) .97%(a) .97%(a) .97%(a) .96%(a)
Ratios of net investment income to
average net assets .................... 4.41%(c) 4.73% 4.62% 4.69% 4.86%
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, 1999 AUGUST 31, 1998 AUGUST 31, 1997 AUGUST 31, 1996 AUGUST 31, 1995
----------------- -------------- --------------- --------------- ---------------
(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 ................... 0.0122 0.0286 0.0285 0.0288 0.0297
--------- -------- -------- -------- --------
Total from investment operations ....... 0.0122 0.0286 0.0285 0.0288 0.0297
--------- -------- -------- -------- --------
Less distributions
Dividends (from net investment income) .. (0.0122) (0.0286) (0.0285) (0.0288) (0.0297)
--------- -------- -------- -------- --------
Total distributions .................... (0.0122) (0.0286) (0.0285) (0.0288) (0.0297)
--------- -------- -------- -------- --------
Net asset value, end of period ............ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========= ======== ======== ======== ========
Total Return ........................... 2.49%(c) 2.97% 2.88% 2.92% 3.01%
Ratios /Supplemental Data
Net assets, end of period (000) ......... $ 153,831 $147,633 $213,034 $201,940 $198,425
Ratios of expenses to average net assets .89%(a)(c) .89%(a) .85%(a) .84%(a) .82%(a)
Ratios of net investment income to
average net assets .................... 2.46%(c) 2.86% 2.85% 2.88% 2.97%
<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% for
the six months ended February 28, 1999, 1.10%, 1.12%, 1.14% and 1.17% for
the years ended August 31, 1998, 1997, 1996 and 1995, respectively. For the
Municipal Money Market Portfolio, the ratios of expenses to average net
assets would have been 1.13% for the six months ended February 28, 1999,
1.15%, 1.14%, 1.12% and 1.14% for the years ended August 31, 1998, 1997,
1996 and 1995, respectively.
(b) Financial Highlights relate solely to the Bedford Class of shares within
each portfolio.
(c) Annualized.
</FN>
</TABLE>
20
<PAGE>
CASH PRESERVATION FAMILY
THE RBB FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FEBRUARY 28, 1999
(UNAUDITED)
NOTE 5. OTHER FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
THE JANNEY MONTGOMERY SCOTT FAMILY (c)
MONEY MARKET PORTFOLIO
-------------------------------------------------------------------------------------
FOR THE PERIOD
FOR THE FOR THE FOR THE FOR THE JUNE 12, 1995
SIX MONTHS YEAR YEAR YEAR (COMMENCEMENT OF
ENDED ENDED ENDED ENDED OPERATIONS) TO
FEBRUARY 28, 1999 AUGUST 31, 1998 AUGUST 31, 1997 AUGUST 31, 1996 AUGUST 31, 1995
----------------- --------------- --------------- --------------- ---------------
(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 ....................... 0.0217 0.0469 0.0459 0.0465 0.0112
---------- -------- -------- -------- ----------
Total from investment operations .......... 0.0217 0.0469 0.0459 0.0465 0.0112
---------- -------- -------- -------- ----------
Less distributions
Dividends (from net investment income) ...... (0.0217) (0.0469) (0.0459) (0.0465) (0.0112)
---------- -------- -------- -------- ----------
Total distributions ....................... (0.0217) (0.0469) (0.0459) (0.0465) (0.0112)
---------- -------- -------- -------- ----------
Net asset value, end of period ................ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========== ======== ======== ======== ==========
Total Return .................................. 4.47%(b) 4.81% 4.69% 4.76% 5.30%(b)
Ratios/Supplemental Data
Net assets, end of period (000) ............. $1,034,508 $904,526 $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) 1.00%(a)(b)
Ratios of net investment income to
average net assets ........................ 4.37%(b) 4.69% 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 1.20% for the six months ended February 28, 1999, 1.21%, 1.22%, 1.23%
and 1.23% for the years ended August 31, 1998, 1997, 1996 and 1995,
respectively.
(b) Annualized.
(c) Financial Highlights relate solely to the Janney Montgomery Scott Class of
shares within each portfolio.
</FN>
</TABLE>
21
<PAGE>
CASH PRESERVATION FAMILY
THE RBB FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FEBRUARY 28, 1999
(UNAUDITED)
NOTE 5. OTHER FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
THE JANNEY MONTGOMERY SCOTT FAMILY (c) (CONTINUED)
MUNICIPAL MONEY MARKET PORTFOLIO
-------------------------------------------------------------------------------------
FOR THE PERIOD
FOR THE FOR THE FOR THE FOR THE JUNE 12, 1995
SIX MONTHS YEAR YEAR YEAR (COMMENCEMENT OF
ENDED ENDED ENDED ENDED OPERATIONS) TO
FEBRUARY 28, 1999 AUGUST 31, 1998 AUGUST 31, 1997 AUGUST 31, 1996 AUGUST 31, 1995
----------------- --------------- --------------- --------------- ---------------
(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 ....................... 0.0123 0.0290 0.0285 0.0278 0.0063
---------- ------- -------- ------- --------
Total from investment operations .......... 0.0123 0.0290 0.0285 0.0278 0.0063
---------- ------- -------- ------- --------
Less distributions
Dividends (from net investment income) ...... (0.0123) (0.0290) (0.0285) (0.0278) (0.0063)
---------- ------- -------- ------- --------
Total distributions ....................... (0.0123) (0.0290) (0.0285) (0.0278) (0.0063)
---------- ------- -------- ------- --------
Net asset value, end of period ................ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========== ======= ======== ======= ========
Total Return .................................. 2.51%(b) 2.94% 2.89% 2.81% 2.87%(b)
Ratios/Supplemental Data
Net assets, end of period (000) ............. $118,422 $97,445 $108,826 $89,428 $113,256
Ratios of expenses to average net assets .... 0.86%(a)(b) 0.86%(a) 0.85%(a) 0.94%(a) 1.00%(a)(b)
Ratios of net investment income to
average net assets ........................ 2.48%(b) 2.90% 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, the
ratio of expenses to average net assets would have been 1.22% for the six
months ended February 28, 1999, 1.16%, 1.13%, 1.23% and 1.30% for the years
ended August 31, 1998, 1997, 1996 and 1995, respectively.
(b) Annualized.
(c) Financial Highlights relate solely to the Janney Montgomery Scott Class of
shares within each portfolio.
</FN>
</TABLE>
22
<PAGE>
CASH PRESERVATION FAMILY
THE RBB FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FEBRUARY 28, 1999
(UNAUDITED)
NOTE 5. OTHER FINANCIAL HIGHLIGHTS (CONTINUED)
<TABLE>
<CAPTION>
THE SANSOM STREET FAMILY (b)
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, 1999 AUGUST 31, 1998 AUGUST 31, 1997 AUGUST 31, 1996 AUGUST 31, 1995
----------------- --------------- --------------- --------------- ---------------
(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 ...................... 0.0242 0.0520 0.0510 0.0518 0.0543
-------- -------- -------- -------- --------
Total from investment operations ....... 0.0242 0.0520 0.0510 0.0518 0.0543
-------- -------- -------- -------- --------
Less distributions
Dividends (from net investment income) ........ (0.0242) (0.0520) (0.0510) (0.0518) (0.0543)
-------- -------- -------- -------- --------
Total distributions .................... (0.0242) (0.0520) (0.0510) (0.0518) (0.0543)
-------- -------- -------- -------- --------
Net asset value, end of period ................ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ========
Total Return .................................. 5.00%(c) 5.34% 5.22% 5.30% 5.57%
Ratios/Supplemental Data
Net assets, end of period .................. $776,676 $684,066 $570,018 $524,359 $441,614
Ratios of expenses to average net assets ... .49%(a)(c) .49%(a) .49%(a) .48%(a) .39%(a)
Ratios of net investment income to
average net assets ....................... 4.89%(c) 5.20% 5.10% 5.18% 5.43%
<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, 1999, .62%, .64%, .65% and .59% for the
years ended August 31, 1998, 1997, 1996 and 1995, respectively.
(b) Financial highlights relate soley to the Sansom Street Class of shares
within the portfolio.
(c) Annualized.
</FN>
</TABLE>
23
<PAGE>
CASH PRESERVATION FAMILY
THE RBB FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONCLUDED)
FEBRUARY 28, 1999
(UNAUDITED)
NOTE 5. OTHER FINANCIAL HIGHLIGHTS (CONTINUED)
THE SELECT FAMILY (b) (c)
MONEY MARKET PORTFOLIO
----------------------
FOR THE PERIOD
DECEMBER 15, 1998
TO
FEBRUARY 28, 1999
---------------------
(UNAUDITED)
Net asset value, beginning of period ................... $ 1.00
---------
Income from investment operations:
Net investment income ............................... 0.0103
---------
Total from investment operations .................. 0.0103
---------
Less distributions
Dividends (from net investment income) .............. (0.0103)
---------
Total distributions ............................... (0.0103)
---------
Net asset value, end of period ......................... $ 1.00
=========
Total Return ........................................... 5.06%(d)
Ratios /Supplemental Data
Net assets, end of period ........................... $ 29,824
Ratios of expenses to average net assets ............ .27%(a)(d)
Ratios of net investment income to
average net assets ................................ 4.95%(d)
(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 .46% for
the six months ended February 28, 1999.
(b) Financial highlights relate soley to the Select Class of shares within the
portfolio.
(c) On December 15, 1998 the Money Market Portfolio's Select Class began
operations.
(d) Annualized.
24
<PAGE>
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<PAGE>
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