[GRAPHICOMITTED]
MORGAN KEEGAN
MOR
ACCOUNT
ANNUAL REPORT FOR
BEDFORD SHARES
AUGUST 31, 1999
MONEY MARKET PORTFOLIO
MUNICIPAL MONEY MARKET PORTFOLIO
GOVERNMENT OBLIGATIONS MONEY MARKET PORTFOLIO
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
ANNUAL INVESTMENT ADVISER'S REPORT
One year ago, economic and financial crises around the world threatened the
continuation of the eight-year expansion of the U.S. economy. With the
assistance, however, of lower interest rates, low inflation and a consumer
driven spending spree, the U.S. economy moved ahead at a brisk pace through
August of 1999. First quarter gross domestic product (GDP) grew by 4.5%, and
while the second quarter slipped to 1.6%, estimates for the third quarter range
as high as 5%. During the same period, price and wage pressures remained tame.
The GDP deflator reported a 1.4% increase through the first half of the year,
and consumer and wholesale prices for August showed moderate 2.3% increases on a
year-over-year basis. Energy costs, in particular, accounted for most of the
increases in CPI and PPI, as the price of oil reached $25 a barrel.
With the threat of global turmoil behind them, the Federal Reserve began to
rescind its three monetary policy easings effected last fall. Twice in the last
three months, the Fed raised short-term interest rates by a quarter point. The
current federal funds rate of 5.25% should, according to the Fed, "markedly
diminish the risk of rising inflation."
The Fed's tightenings had an immediate impact on the taxable money markets.
Overnight rates increased commensurate with the Fed's moves, while longer-dated
securities with maturities out to one year experienced larger gains. The result
was a steeper yield curve with yields on one-year obligations exceeding 6%. The
Y2K factor also came into play this year. Investments into January, 2000 often
carried incentives of 40-50 basis points versus December, 1999 maturities, as
investors sought extra liquidity for year-end uncertainties. The U.S. Treasury
and agency yield curves also steepened and the spreads widened between the two
sectors. The Money Market and Government Obligations portfolios maintained
moderately extended maturities for most of the year as the market tended to
overvalue the magnitude of future Fed tightenings. This allowed the portfolios
to maintain a longer positioning, even in an environment of rising rates. On
August 31, the Money Market Portfolio and the Government Obligations Money
Market Portfolio had assets of $2,739,120,332 and $482,396,209, respectively.
The municipal money markets also experienced the effects of the Fed's
efforts to slow the economy to a more sustainable pace. One-year municipal notes
rose to a 3.65% yield at the end of August versus yields under 3% early in 1999.
Variable rate obligations, with one and seven-day puts used for liquidity,
continued their pattern of trading in a range between 3-4% for most of the year.
Strong investor demand easily absorbed all new issuance during the period. While
total municipal money fund assets declined slightly to $193 billion on August
31, that was up from $175 billion a year ago. On August 31, assets in the
Municipal Money Market Portfolio stood at $265,031,464 .
The Fund, like any business, could be affected if the computer systems on
which it relies do not properly process information beginning on January 1,
2000. While year 2000 issues could have a negative effect on the Fund, the
Fund's investment adviser is currently working to avoid such problems. The
Fund's investment adviser is also working with other systems providers and
vendors servicing the Portfolios to determine their systems' ability to handle
Year 2000 problems. There is no guarantee, however, that systems will work
properly on or after January 1, 2000. Year 2000 problems may also hurt issuers
whose securities the Fund holds or securities markets generally.
BlackRock Institutional Management Corporation
(Please dial toll-free 800-677-6310 for
questions regarding your account or contact
your broker.)
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
To the Shareholders and Board of Directors of The RBB Fund,Inc.:
In our opinion, the accompanying statements of net assets, and the related
statements of operations and changes in net assets, and the financial highlights
present fairly, in all material respects, the financial position of Money
Market, Government Obligations Money Market and Municipal Money Market
Portfolios, seperately managed portfolios of The RBBFund, Inc. (the "Fund") at
August 31, 1999, the results of their operations for the year then ended, the
changes in their net assets for each of the two years in the period then ended,
and the financial highlights for each of the periods presented, in conformity
with generally accepted accounting principles. These financial statements and
financial highlights (hereafter referred to as "financial statements") are the
responsibility of the Fund's management; our responsibility is to express an
opinion on these financial statements based on our audits.We conducted our
audits of these financial statements in accordance with generally accepted
auditing standards which require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audits, which included confirmation of securities at August 31, 1999 by
correspondence with the custodian and brokers, provides a reasonable basis for
the opinion expressed above.
PricewaterhouseCoopersLLP
2400 Eleven Penn Center
Philadelphia,Pennsylvania
October 15, 1999
2
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS
AUGUST 31, 1999
PAR
(000) VALUE
-------- --------------
CERTIFICATES OF DEPOSIT--14.6%
DOMESTIC CERTIFICATES OF DEPOSIT--7.1%
First National Bank of Chicago
5.230% 10/20/99 ....................... $ 60,000 $ 60,001,246
6.060% 08/14/00 ....................... 15,000 14,992,908
4.980% 01/06/00 ....................... 50,000 49,996,642
Key Bank N.A.
5.705% 07/12/00 ....................... 10,000 9,998,760
Wilmington Trust Co.
5.060% 10/20/99 ....................... 25,000 25,000,000
5.530% 01/12/00 ....................... 20,000 20,000,000
5.070% 01/14/00 ....................... 14,400 14,400,000
--------------
194,389,556
--------------
YANKEE DOLLAR CERTIFICATES OF DEPOSIT--7.5%
Canadian Imperial Bank of Commerce
5.025% 01/27/00 ....................... 30,000 29,999,413
5.120% 02/23/00 ....................... 22,300 22,294,773
5.180% 03/15/00 ....................... 29,700 29,699,785
5.180% 03/16/00 ....................... 25,000 24,996,102
National Westminster Bank
4.980% 01/10/00 ....................... 15,000 14,998,961
5.280% 04/03/00 ....................... 25,000 24,996,849
Svenska Handelsbanken, Inc.
5.178% 03/16/00 ....................... 25,000 24,993,829
Toronto Dominion NY
5.000% 01/05/00 ....................... 15,000 14,999,500
5.100% 02/22/00 ....................... 20,000 19,996,325
--------------
206,975,537
--------------
TOTAL CERTIFICATES OF DEPOSIT
(Cost $401,364,726) ............... 401,365,093
--------------
COMMERCIAL PAPER--56.6%
AGRICULTURAL SERVICES--2.1%
Cargill Global Funding PLC 4-2
5.420% 01/19/00 ....................... 25,000 24,473,056
5.420% 01/28/00 ....................... 35,000 34,214,853
--------------
58,687,909
--------------
PAR
(000) VALUE
-------- --------------
AIRCRAFT ENGINES & PARTS--3.8%
Allied Signal, Inc. 4-2
4.920% 09/10/99 ....................... $ 25,000 $ 24,969,250
5.200% 10/08/99 ....................... 35,000 34,812,944
5.250% 02/15/00 ....................... 25,000 24,391,146
5.250% 02/28/00 ....................... 20,000 19,475,000
--------------
103,648,340
--------------
ASSET BACKED SECURITIES--19.8%
Barton Capital Corp. 4-2
5.140% 09/10/99 ....................... 66,110 66,025,049
Delaware Funding Corp. 4-2
5.120% 09/10/99 ....................... 61,700 61,621,024
Enterprise Funding Corp. 4-2
5.270% 09/20/99 ....................... 10,750 10,720,100
5.230% 10/13/99 ....................... 5,616 5,581,733
Moriarty L.L.C. 4-2
5.300% 09/07/99 ....................... 20,000 19,982,333
5.330% 10/25/99 ....................... 60,000 59,520,300
Moriarty Ltd. 4-2
5.140% 09/15/99 ....................... 40,000 39,920,044
5.180% 10/12/99 ....................... 20,000 19,882,011
Sigma Finance, Inc. 4-2
5.210% 10/28/99 ....................... 25,000 24,793,771
5.410% 11/04/99 ....................... 28,256 27,984,240
5.400% 11/08/99 ....................... 25,000 24,745,000
5.410% 11/15/99 ....................... 61,700 61,004,590
Trident Capital Finance, Inc. 4-2
5.170% 09/14/99 ....................... 75,000 74,859,979
Triple A-1 Funding 4-2
5.180% 09/20/99 ....................... 46,796 46,668,065
--------------
543,308,239
--------------
BANKS--9.0%
AB Spin Tab Swedmortgage 3-A-3
4.880% 09/07/99 ....................... 49,500 49,459,740
5.350% 11/10/99 ....................... 55,000 54,427,847
Abbey National North America 3-A-3
4.920% 01/31/00 ....................... 24,000 23,501,440
4.910% 02/01/00 ....................... 25,000 24,478,313
J.P. Morgan & Co. 3-A-3
4.830% 09/27/99 ....................... 25,000 24,912,792
See Accompanying Notes to Financial Statements.
3
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS (CONTINUED)
AUGUST 31, 1999
PAR
(000) VALUE
-------- --------------
BANKS--(CONTINUED)
San Paolo U.S. Financial Inc. 3-A-3
4.950% 11/17/99 ....................... $ 20,000 $ 19,788,250
Santander Finance, Inc. 3-A-3
5.180% 10/18/99 ....................... 50,000 49,661,861
--------------
246,230,243
--------------
COMMUNICATION EQUIPMENT NEC--0.9%
Alcatel Alsthom Inc. 3-A-3
5.430% 03/13/00 ....................... 25,000 24,268,458
--------------
ELECTRONIC & OTHER ELECTRICAL EQUIPMENT--0.7%
General Electric Co. 3-A-3
5.110% 09/08/99 ....................... 18,000 17,982,115
--------------
MOTOR VEHICLES PARTS & ACCESSORIES--1.8%
Eaton Corp. 4-2
5.180% 10/04/99 ....................... 50,000 49,762,583
--------------
NEWSPAPER: PUBLISHING & PRINTING--2.2%
Knight-Ridder, Inc. 3-A-3
4.810% 09/10/99 ....................... 10,000 9,987,975
5.280% 09/24/99 ....................... 49,500 49,333,020
--------------
59,320,995
--------------
PERSONAL CREDIT INSTITUTIONS--1.8%
Associates First Capital Corp. 3-A-3
5.180% 10/19/99 ....................... 50,000 49,654,667
------------
RETAIL - DEPARTMENT STORES--2.2%
St. Michael Finance Ltd. 3-A-3
5.270% 10/12/99 ....................... 61,355 60,986,751
------------
SERVICES-EQUIPMENT RENTING & LEASING--0.9%
HD Real Estate Funding Corp. 4-2
5.720% 02/07/00 ....................... 25,000 24,368,417
------------
SHORT-TERM BUSINESS CREDIT INSTITUTIONS--11.4%
Associates First Capital Corp. 3-A-3
5.150% 10/18/99 ....................... 43,600 43,306,850
Finova Capital Corp. 3-A-3
5.100% 09/10/99 ....................... 55,000 54,929,875
5.350% 10/08/99 ....................... 40,000 39,780,056
PAR
(000) VALUE
-------- --------------
SHORT-TERM BUSINESS CREDIT INSTITUTIONS--(CONTINUED)
General Electric Capital International
3-A-3
5.240% 09/17/99 ....................... $ 75,000 $ 74,825,333
Heller Financial, Inc. 3-A-3
5.200% 09/02/99 ....................... 25,000 24,996,389
5.250% 09/13/99 ....................... 25,000 24,956,250
5.220% 09/16/99 ....................... 50,000 49,891,250
--------------
312,686,003
--------------
TOTAL COMMERCIAL PAPER
(Cost $1,550,904,720) ............. 1,550,904,720
--------------
MUNICIPAL BONDS--2.6%
FLORIDA--0.1%
Coral Springs, VRDN IDR (Suntrust)(DAGGER)
5.400% 09/01/99 ....................... 2,300 2,300,000
--------------
GEORGIA--0.3%
De Kalb County Development
Authority VRDN Series 1995 B
(Emory University Project)(DAGGER)
5.350% 09/07/99 ....................... 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)
5.350% 09/01/99 ....................... 4,400 4,400,000
------------
INDIANA--0.1%
Bremen, Inc. TARN VRDN
Series 1996 B (Society National
Bank, Cleveland)(DAGGER)
5.400% 09/02/99 ....................... 2,390 2,390,000
------------
KENTUCKY--0.2%
Boone County Taxable IDR Refunding
Bonds VRDN (Square D Company
Project) Series 1994-B (Credit
Lyonnais)(DAGGER)
5.350% 09/01/99 ....................... 4,200 4,200,000
------------
See Accompanying Notes to Financial Statements.
4
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS (CONTINUED)
AUGUST 31, 1999
PAR
(000) VALUE
-------- --------------
MISSISSIPPI--0.9%
Mississippi Business Finance Corp.
IDR Revenue Bond VRDN (Dana
Lighting Project) Series 1995
Sun Bank, N.A., Orlando(DAGGER)
5.400% 09/07/99 ........................... $ 5,400 $ 5,400,000
Mississippi Business Finance Corp.
Taxable IDR Revenue Bond VRDN
(Sun Bank, N.A., Orlando)
Series 1995(DAGGER)
5.400% 09/07/99 ........................... 5,600 5,600,000
Mississippi Business Finance Corp.
Taxable IDR Revenue Bond VRDN
(Bryan Foods, Inc. Project)
Series1994(DAGGER)
5.350% 09/01/99 ........................... 14,000 14,000,000
--------------
25,000,000
--------------
NORTH CAROLINA--0.3%
City of Asheville Tax Corp. VRDN(DAGGER)
5.350% 09/01/99 ........................... 8,900 8,900,000
--------------
TEXAS--0.5%
South Central Texas Industrial
Development Corp. Taxable IDR
Revenue Bond VRDN (Rohr
Industries Project) Series 1990
(Citibank N.A.)(DAGGER)
5.350% 09/01/99 ........................... 14,800 14,800,000
--------------
TOTAL MUNICIPAL BONDS
(Cost $71,475,000) .................... 71,475,000
--------------
VARIABLE RATE OBLIGATIONS--21.6%
ASSET BACKED SECURITIES--5.6%
Asset Securitization Corp.(DAGGER)
5.473% 09/27/99 ........................... 35,000 34,996,596
SMM Trust 1998-B(DAGGER)
5.204% 09/15/99 ........................... 80,000 80,000,000
SMM Trust 1999-E(DAGGER)
5.323% 10/05/99 ........................... 37,500 37,500,000
--------------
152,496,596
--------------
PAR
(000) VALUE
-------- --------------
BANKS--9.5%
Bayerische Hypo-Und Vereinsbank(DAGGER)
5.186% 09/14/99 ........................... $ 74,500 $ 74,472,398
5.186% 09/15/99 ........................... 50,000 49,972,065
Key Bank N.A.(DAGGER)
5.035% 09/14/99 ........................... 35,000 34,983,788
5.576% 11/26/99 ........................... 50,000 50,000,000
Royal Bank of Canada(DAGGER)
5.156% 09/14/99 ........................... 50,000 49,998,753
--------------
259,427,004
--------------
PERSONAL CREDIT INSTITUTIONS--5.6%
American Honda Finance Corp.(DAGGER)
5.293% 11/04/99 ........................... 10,000 9,995,308
5.340% 11/08/99 ........................... 30,000 29,983,321
5.535% 11/17/99 ........................... 30,000 30,001,938
5.430% 11/24/99 ........................... 44,600 44,593,706
5.486% 11/26/99 ........................... 15,000 14,998,545
General Motors Acceptance Corp.(DAGGER)
5.270% 10/20/99 ........................... 24,500 24,487,125
--------------
154,059,943
--------------
SECURITY BROKERS & DEALERS--0.9%
Morgan Stanley Dean Witter & Co.(DAGGER)
5.260% 10/14/99 ........................... 25,000 25,000,000
--------------
TOTAL VARIABLE RATE OBLIGATIONS
(Cost $590,983,543) ................... 590,983,543
--------------
MEDIUM TERM NOTES--0.3%
SECURITY BROKERS & DEALERS--0.3%
Goldman Sachs Group LP
5.280% 02/24/00 ........................... 7,500 7,499,928
--------------
TOTAL MEDIUM TERM NOTES
(Cost $7,499,928) ..................... 7,499,928
--------------
TIME DEPOSITS--3.7%
Bank Brussels Lambert
5.656% 09/01/99 ........................... 100,000 100,000,000
--------------
TOTAL TIME DEPOSITS
(Cost $100,000,000) ................... 100,000,000
--------------
See Accompanying Notes to Financial Statements.
5
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS (CONCLUDED)
AUGUST 31, 1999
PAR
(000) VALUE
-------- --------------
REPURCHASE AGREEMENTS--0.3%
J.P. Morgan Securities Inc.
(Agreement dated 08/31/99 to
be repurchased at $9,401,449
collateralized by $10,760,754
par Government National
Mortgage Association at rates
of 6.00% and 6.50% due 08/15/29
and 09/20/28. Market Value
of collateral is $9,682,001.)
5.550% 09/01/99 ........................... $ 9,400 $ 9,400,000
--------------
TOTAL REPURCHASE AGREEMENTS
(Cost $9,400,000) ..................... 9,400,000
--------------
TOTAL INVESTMENTS AT VALUE--99.7%
(Cost $2,731,628,284*) .................... 2,731,628,284
--------------
OTHER ASSETS IN EXCESS
OF LIABILITIES--0.3% ...................... 7,492,047
--------------
NET ASSETS (Applicable to
360,146,407 Bedford shares,
130,925 Cash Preservation
shares, 1,088,418,203
Janney Montgomery Scott
shares, 841,894,150 Sansom
Street shares, 230,052,052
Select Shares, 218,533,823
Principal Shares, and 800
other shares)--100% ....................... $2,739,120,331
==============
NET ASSET VALUE, Offering and
redemption price per share
($2,739,120,331 (DIVIDE) 2,739,176,360) $1.00
=====
* Also cost for Federal income tax purposes.
(DAGGER) Variable Rate Obligations -- The rate shown is the rate as of August
31, 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
IDR ..............................................Industrial Development Revenue
TARN ...............................................Taxable Adjustable Rate Note
See Accompanying Notes to Financial Statements.
6
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
MUNICIPAL MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS
AUGUST 31, 1999
PAR
(000) VALUE
-------- --------------
MUNICIPAL BONDS--102.2%
ALABAMA--0.9%
Montgomery Special Care Facilities
Financing Authority RB 1985
Series A DN (AMBAC Insurance)(DAGGER)
3.350% 09/07/99 ........................... $ 2,270 $ 2,270,000
--------------
ALASKA--0.1%
Valdez, Marine Terminal RB (Exxon
Pipeline Co. Project) DN(DAGGER)
2.950% 09/01/99 ........................... 300 300,000
--------------
CALIFORNIA--1.9%
California Higher Education Student
Loan RB Series D-2 MB (Dresdner
Bank LOC)(DOUBLE DAGGER)
3.500% 04/01/00 ........................... 5,000 5,000,000
--------------
COLORADO--0.4%
Douglas County School District TAN
4.500% 06/30/00 ........................... 1,000 1,007,227
--------------
CONNECTICUT--1.0%
Connecticut Special Assessment
Unemployment Compensation
Advance Fund (Connecticut
Unemployment Project) Series
1993 C MB (FGIC Insurance)(DOUBLE DAGGER)
3.380% 01/01/00 ........................... 2,700 2,700,000
--------------
FLORIDA--1.9%
Greater Orlando Aviation Authority
Airport Facilities Subordinated
Series A TECP (Morgan Guaranty
Trust LOC)(DOUBLE DAGGER)
3.540% 12/15/99 ........................... 5,104 5,104,000
--------------
GEORGIA--8.9%
Bulloch County, Development
Authority of, Tax-Exempt Adjustable
Mode IDA RB (Gold Kist Inc.
Project) DN (Wachovia LOC)(DAGGER)
3.350% 09/07/99 ........................... 5,700 5,700,000
Burke County Development Authority
PCR RB (Oglethorpe Power
Corporation Vogtle) MB(DOUBLE DAGGER)
3.450% 11/28/99 ........................... 3,600 3,600,000
PAR
(000) VALUE
-------- --------------
GEORGIA--(CONTINUED)
Burke County Development Authority
RB (Oglethorpe Power Corp. Vogtle
Project) Series 1996 MB(DOUBLE DAGGER)
3.350% 11/01/99 ........................... $ 4,000 $ 4,000,000
Gulf Coast IDA Solid Waste Disposal
Facility Citgo Project Series 1994
DN (Wachovia LOC)(DAGGER)
3.100% 09/01/99 ........................... 2,100 2,100,000
McDuffie County, Development
Authority of, Waste Disposal RB
(Temple-Inland Forest Products
Corporation) TECP 1998
4.050% 10/21/99 ........................... 2,500 2,500,000
Monroe County Development Authority
PCR RB (Oglethorpe Power
Corporation, Scherer Project) MB(DOUBLE DAGGER)
3.450% 11/28/99 ........................... 5,615 5,615,000
--------------
23,515,000
--------------
ILLINOIS--9.8%
Addison, Village Of, Dupage County,
Industrial Revenue Refunding
Bonds (General Binding Corp.
Project) 1988 DN (ABN AMRO
Bank N.V. LOC)(DAGGER)
3.650% 09/07/99 ........................... 1,600 1,600,000
Chicago Gas Supply RB (Peoples Gas
Light & Coke Co. Project) 1993B MB(DOUBLE DAGGER)
3.200% 12/01/99 ........................... 5,575 5,575,000
Chicago, City Of, IDA RB (Goose
Island Beer O. Project) DN
(ABN Amro Bank LOC)(DAGGER)
3.750% 09/07/99 ........................... 2,100 2,100,000
East Dundee, Kane and Cook Counties,
IDA RB (Otto Engine Project)/
(Lasalle National Bank LOC) DN(DAGGER)
3.370% 09/07/99 ........................... 950 950,000
Illinois Development Finance Authority
PCR RB (Illinois Power Company
Project) (ABN-AMRO Bank N.V.
LOC) TECP(DOUBLE DAGGER)
3.650% 02/22/00 ........................... 2,000 2,000,000
See Accompanying Notes to Financial Statements.
7
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
MUNICIPAL MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS (CONTINUED)
AUGUST 31, 1999
PAR
(000) VALUE
-------- ------------
ILLINOIS--(CONTINUED)
Illinois Health Facilites Authority TECP
(Children's Memorial Hospital)
Series A (First National Bank
Chicago LOC)(DOUBLE DAGGER)
3.500% 11/30/99 ........................... $ 2,000 $ 2,000,000
Illinois Health Facilities Authority
Revolving Fund Pooled Financing
Program (The University of Chicago
Project) MB(DOUBLE DAGGER)
3.200% 10/05/99 ........................... 4,000 4,000,000
Illinois Health Facility Authority RB MB
(Evanston Hospital Corp.) Series A(DOUBLE DAGGER)
3.550% 07/31/00 ........................... 6,000 6,000,000
Lake County IDA RB (Northpoint
Project) AMT DN (Banc One N.A.
LOC)(DAGGER)
3.350% 09/07/99 ........................... 500 500,000
Plainfield, Village of, IDA RB Series
1997 (Plainfield Moldings, Inc.
Project) DN (Algemene LOC)(DAGGER)
3.370% 09/07/99 ........................... 1,275 1,275,000
------------
26,000,000
------------
INDIANA--11.3%
Bremen IDA RB Series 1996 A
(Universal Bearings, Inc. Project
Private Placement) DN (Society
National Bank of Cleveland LOC)(DAGGER)
3.450% 09/07/99 ........................... 5,000 5,000,000
Crawfordsville Industrial Economic
Development RB (Pedcor
Investments-Shady Knoll
Apartments Project) DN (Federal
Home Loan Bank LOC)(DAGGER)
3.350% 09/07/99 ........................... 3,365 3,365,000
Indiana Development Finance
Authority IDA RB (Enterprise
Center I Project) DN (LOC Society
National Bank Cleveland)(DAGGER)
3.370% 09/07/99 ........................... 2,900 2,900,000
Indiana Development Finance
Authority IDA RB (Enterprise
Center II Project) DN (LOC Society
National Bank Cleveland)(DAGGER)
3.370% 09/07/99 ........................... 2,000 2,000,000
PAR
(000) VALUE
-------- ------------
INDIANA--(CONTINUED)
Indiana Development Finance
Authority IDA RB (Enterprise Center
IV Project) DN (LOC Society
National Bank Cleveland)(DAGGER)
3.370% 09/07/99 ........................... $ 2,600 $ 2,600,000
Indiana Development Finance
Authority IDA RB (Enterprise
Center VI Project) DN (ABN Amro
Bank LOC)(DAGGER)
3.370% 09/07/99 ........................... 4,900 4,900,000
Indiana Development Finance
Authority Pollution Control
Refunding RB (Southern Indiana
Gas and Electric Co.)
Series 1998A MB(DOUBLE DAGGER)
3.000% 03/01/00 ........................... 2,900 2,900,000
Indiana State Development Finance
Authority Economic Development
RB DN (Saroyan Hardwoods Inc.
Project) (Banc One Funding
Corp. LOC)(DAGGER)
3.420% 09/07/99 ........................... 1,700 1,700,000
Portage Economic Development RB
(Breckenridge Apartments Project)
DN (Comerica Bank Detroit LOC)(DAGGER)
3.500% 09/07/99 ........................... 4,650 4,650,000
------------
30,015,000
------------
IOWA--1.9%
Iowa Finance Authority RB
(Northcrest Inc. Project) DN
(Norwest Bank LOC)(DAGGER)
3.400% 09/07/99 ........................... 5,145 5,145,000
------------
KANSAS--1.2%
Wyandotte County Kansas City
Municipal G.O. Notes Series AAAA
3.300% 02/01/00 ........................... 2,096 2,096,147
Wyandotte County Kansas City
Municipal G.O. Notes Series YYY
3.300% 02/01/00 ........................... 1,020 1,020,194
------------
3,116,341
------------
See Accompanying Notes to Financial Statements.
8
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
MUNICIPAL MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS (CONTINUED)
AUGUST 31, 1999
PAR
(000) VALUE
-------- ------------
KENTUCKY--3.1%
Henderson Industrial Building RB
(Shamrock Technologies) 1997 DN
(First Union National Bank LOC)(DAGGER)
3.400% 09/07/99 ........................... $ 3,151 $ 3,151,000
Kentucky State Housing Corp. RAN
Series C(DOUBLE DAGGER)
3.200% 12/31/99 ........................... 2,000 2,000,000
Pulaski County Solid Waste Disposal
Facilities PCR RB (East Kentucky
Power) Series B MB(DOUBLE DAGGER)
3.550% 02/15/00 ........................... 3,000 3,000,000
------------
8,151,000
------------
MARYLAND--1.2%
Community Development
Administration Multi-Family
Development RB (Avalon Ridge
Apartments) 97 DN (FNMA LOC)(DAGGER)
3.200% 09/07/99 ........................... 3,115 3,115,000
------------
MASSACHUSETTS--1.5%
Commonwealth of Massachusetts
Federal Highway Grant Anticipation
Notes 1998 Series A Trust Receipt
DN (National Westminster LOC)(DAGGER)
3.300% 09/01/99 ........................... 900 900,000
Whiteman-Hanson Regional School
District BAN
3.740% 07/07/00 ........................... 1,000 1,001,958
Whiteman-Hanson Regional School
District BAN
3.500% 03/24/00 ........................... 2,000 2,003,244
------------
3,905,202
------------
MICHIGAN--1.3%
Benton Harbor Area School District
BAN
4.000% 08/31/00 ........................... 1,000 1,002,890
Swartz Creek Michigan Community
Schools State Aid Anticipation
Notes G.O. Notes
3.600% 05/17/00 ........................... 2,500 2,503,406
------------
3,506,296
------------
PAR
(000) VALUE
-------- ------------
MINNESOTA--0.1%
Minneapolis G.O. Series 1995B DN
(Bayerische Landesbank
Girozentrale LOC)(DAGGER)
3.150% 09/07/99 ........................... $ 300 $ 300,000
------------
MISSISSIPPI--0.4%
Jackson County, Port Facilities
Revenue Refunding Bonds
(Chevron Corp. USA Income
Project) DN(DAGGER)
2.950% 09/01/99 ........................... 1,100 1,100,000
------------
MISSOURI--0.5%
Kansas City IDA RB (Mid-America
Health Services, Inc. Project)
Series 1984 DN (Bank of
New York LOC)(DAGGER)
3.470% 09/07/99 ........................... 400 400,000
Missouri Health & Educational Facility
Authority Health Facility RB DN
(Sisters of Mercy)(DAGGER)
3.250% 09/07/99 ........................... 1,000 1,000,000
------------
1,400,000
------------
NEBRASKA--1.5%
Lancaster (Sun-Husker Foods, Inc.
Project) DN (Bank of Tokyo LOC)(DAGGER)
4.600% 09/07/99 ........................... 3,800 3,800,000
------------
NEW HAMPSHIRE--1.1%
New Hampshire State Business
Finance Authority PCR RB
(New England Power Co. Project)
Series 1990A TECP
3.400% 10/26/99 ........................... 3,000 3,000,000
------------
NEW JERSEY--3.6%
Carlstadt County BAN
3.350% 03/29/00 ........................... 1,000 1,001,110
Cedar Grove Township G.O.
Series 1999 BAN
3.500% 03/07/00 ........................... 2,292 2,296,557
Essex County Improvement
Authority BAN
3.500% 03/31/00 ........................... 2,000 2,003,927
See Accompanying Notes to Financial Statements.
9
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
MUNICIPAL MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS (CONTINUED)
AUGUST 31, 1999
PAR
(000) VALUE
-------- ------------
NEW JERSEY--(CONTINUED)
Hillside Township BAN
3.625% 03/08/00 ........................... $ 2,210 $ 2,215,250
New Jersey Economic Development
Authority Economic Development
RB (J. Jams Realty Co.) DN
(First Union National Bank LOC)(DAGGER)
3.250% 09/07/99 ........................... 470 470,000
West Deptford G.O. Series 1999 BAN
4.250% 01/18/00 ........................... 1,500 1,503,633
------------
9,490,477
------------
NEW YORK--5.9%
Dormitory Authority - State of New
York DN (Cornell University )(DAGGER)
2.950% 09/01/99 ........................... 4,150 4,150,000
Long Island Power Authority Electric
System Subordinate RB DN
(Credit Suisse LOC)(DAGGER)
2.800% 09/07/99 ........................... 700 700,000
Nassau County Industry Development
Agency (Winthrop University
Hospital Project) DN (Morgan
Guaranty LOC)(DAGGER)
2.950% 09/07/99 ........................... 300 300,000
New York City G.O. DN 1992 Series D
(FGIC Insurance)(DAGGER)
3.000% 09/07/99 ........................... 100 100,000
New York City G.O. Series 1993B DN
(FGIC Insured)(DAGGER)
3.500% 09/01/99 ........................... 700 700,000
New York City G.O. DN (Mitsubishi
Bank LOC) VRDN(DAGGER)
3.150% 09/07/99 ........................... 3,200 3,200,000
New York City Housing Development
Corp. Multi-Family Mortgage RB DN
(Jennings Street) (Fleet National
Bank LOC)(DAGGER)
3.200% 09/07/99 ........................... 400 400,000
New York City, G.O. Bonds DN(DAGGER)
3.500% 09/07/99 ........................... 200 200,000
New York Local Government
Assistance Corp. RB DN(Canadian
Imperial Bank LOC)(DAGGER)
3.100% 09/07/99 ........................... 1,600 1,600,000
PAR
(000) VALUE
-------- ------------
NEW YORK--(CONTINUED)
Niagara County IDA Solid Waste
Disposal RB Series B DN American
Re-Fuel (Wachovia LOC)(DAGGER)
3.300% 09/07/99 ........................... $ 2,500 $ 2,500,000
Oswego, County Of, IDA RB (Crysteel
Manufacturing, Inc. Project) DN
(Key Corp. Bank N.A. LOC)(DAGGER)
3.450% 09/07/99 ........................... 1,700 1,700,000
------------
15,550,000
------------
NORTH CAROLINA--7.5%
Charlotte-Mecklenburg Hospital
Authority Health Care RB DN(DAGGER)
3.200% 09/07/99 ........................... 7,000 7,000,000
Mecklenburg County G.O.
Series 1996C DN(DAGGER)
3.200% 09/07/99 ........................... 4,000 4,000,000
North Carolina Health Care
Series 1985 DN (MBIA Insurance)(DAGGER)
3.200% 09/07/99 ........................... 200 200,000
North Carolina Medical Care
Commission (Baptist Hospital
Project) Series 1992B DN(DAGGER)
3.300% 09/07/99 ........................... 700 700,000
Raleigh-Durham Airport Authority
Special Facility Refunding RB
(American Airlines, Inc. Project)
Series 1995B DN (Royal Bank of
Canada LOC)(DAGGER)
3.000% 09/01/99 ........................... 500 500,000
Wake County Industrial Facilities and
Pollution Control Financing
Authority RB (Carolina Power &
Light Co. Project) Series 1987 DN
(First Union Bank LOC)(DAGGER)
3.250% 09/07/99 ........................... 5,700 5,700,000
Wilkes County Industrial Facilities
and Pollution Control Financing
Authority RB (Schas Circular
Industries, Inc. Project) Series
1997A DN (Marine Midland LOC)(DAGGER)
3.400% 09/07/99 ........................... 1,900 1,900,000
------------
20,000,000
------------
See Accompanying Notes to Financial Statements.
10
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
MUNICIPAL MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS (CONTINUED)
AUGUST 31, 1999
PAR
(000) VALUE
-------- ------------
NORTH DAKOTA--0.4%
North Dakota State Housing Finance
Authority Home Mortgage RB
Series C MB (FGIC Insurance LOC)(DOUBLE DAGGER)
3.200% 04/01/00 ........................... $ 1,000 $ 1,000,000
------------
OHIO--3.3%
Allen City BAN
3.350% 04/13/00 ........................... 2,000 2,001,783
Butler County BAN
3.550% 10/21/99 ........................... 1,000 1,000,530
Cuyahoga County RB (The Cleveland
Clinic) Series D DN (Bank America
N.A. LOC)(DAGGER)
3.000% 09/07/99 ........................... 300 300,000
Mahoning County (Youngstown Iron
& Metal Inc. Project) DN (National
City Bank of Cleveland LOC)(DAGGER)
3.500% 09/07/99 ........................... 1,840 1,840,000
Montgomery County Variable Rate
Healthcare Facilities RB Series
1998 DN (National City Bank of
Cleveland LOC)(DAGGER)
3.300% 09/07/99 ........................... 770 770,000
Newark G.O. Series 1999 BAN
3.300% 09/10/99 ........................... 1,000 1,000,060
Union Township G.O. Notes
3.770% 05/26/00 ........................... 1,850 1,856,150
------------
8,768,523
------------
OKLAHOMA--1.8%
Oklahoma County Finance Authority
IDA RB (Southwest Electric Co.
Project) Series 1998 DN (Bank
One of Milwaukee LOC)(DAGGER)
3.420% 09/07/99 ........................... 2,865 2,865,000
Oklahoma Development Finance
Authority (Shawnee Funding
Limited) DN (Bank of Nova Scotia
LOC)(DAGGER)
3.400% 09/07/99 ........................... 2,000 2,000,000
------------
4,865,000
------------
PAR
(000) VALUE
-------- ------------
OREGON--0.6%
Portland Multi-Family Housing RB
Village of Lovejoy Fountain DN
(Key Corp. Bank N.A. LOC)(DAGGER)
3.300% 09/07/99 ........................... $ 1,600 $ 1,600,000
------------
PENNSYLVANIA--1.9%
Pennsylvania Economic Development
Financing Authority RB
(International Business
Systems Project) Series B-4 DN
(First Union National Bank of North
Carolina LOC)(DAGGER)
3.400% 09/07/99 ........................... 5,130 5,130,000
------------
PUERTO RICO--0.7%
Puerto Rico Government Development
Bank Series 1985 DN (Credit
Suisse LOC)(DAGGER)
2.850% 09/07/99 ........................... 1,200 1,200,000
Puerto Rico Industrial, Tourist,
Educational, Medical &
Environmental Control Facilities RB
(Ana G Mendez University System
Project) Series 1998 DN (Banco de
Santander LOC)(DAGGER)
2.900% 09/07/99 ........................... 500 500,000
------------
1,700,000
------------
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--4.9%
Berkeley County IDA RB (Nucor Corp.)
Series 1998 DN(DAGGER)
3.350% 09/07/99 ........................... 2,400 2,400,000
Chesterfield County IDA RB (Culp,
Inc.) DN (Wachovia LOC)(DAGGER)
3.350% 09/07/99 ........................... 4,300 4,300,000
See Accompanying Notes to Financial Statements.
11
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
MUNICIPAL MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS (CONTINUED)
AUGUST 31, 1999
PAR
(000) VALUE
-------- ------------
SOUTH CAROLINA--(CONTINUED)
Marlboro County Solid Waste
Disposal Facilities RB (Willamette
Industries, Inc. Project) DN
(Deutsche Bank LOC)(DAGGER)
3.300% 09/07/99 ........................... $ 1,100 $ 1,100,000
Marlboro County, IDA RB (Reliance
Trading Corp. of America Project)
1997 DN (ABN AMRO Bank N.V.
LOC)(DAGGER)
3.370% 09/07/99 ........................... 1,100 1,100,000
South Carolina Jobs Economic
Development Authority RB (Tate
Metalworks, Inc. Project) 1998 DN
(Wachovia LOC)(DAGGER)
3.350% 09/07/99 ........................... 1,000 1,000,000
South Carolina Jobs Economic
Development Authority (Ellcon
National Inc. Project) Series
1998B DN (First Union National
Bank LOC)(DAGGER)
3.400% 09/07/99 ........................... 3,000 3,000,000
------------
12,900,000
------------
TEXAS--6.5%
Brazos River Harbor Navigation
District of Brazoria County, PCR RB
(The Dow Chemical Co. Project)
1988 TECP
3.400% 10/29/99 ........................... 9,980 9,980,000
Denton IDA (Hartzell Manufacturing
Inc. Project) DN (National City
Bank of Cleveland LOC)(DAGGER)
3.500% 09/07/99 ........................... 1,300 1,300,000
Texas State TRAN
4.500% 08/31/00 ........................... 6,000 6,046,260
------------
17,326,260
------------
UTAH--0.4%
Salt Lake City Flexible Rate RB DN
(Pooled Hospital Financing
Program)(DAGGER)
3.250% 09/07/99 ........................... 1,000 1,000,000
------------
PAR
(000) VALUE
-------- ------------
VIRGINIA--9.0%
Capital Region Airport Commission
(Richmond International Airport
Project) Series 1995 C DN
(AMBAC Insurance LOC)(DAGGER)
3.250% 09/07/99 ........................... $ 5,965 $ 5,965,000
Metropolitan Washington DC Airport
Authority (Bank of America LOC)
TECP
3.400% 09/27/99 ........................... 14,000 14,000,000
Virginia Small Business Financing
Authority (Ennestone Inc.) DN
(Wachovia LOC)(DAGGER)
3.300% 09/07/99 ........................... 4,000 4,000,000
------------
23,965,000
------------
WASHINGTON--0.9%
Grant County, Industrial Development
Corp. of Port District No.1
(Dodson Road Orchards, L.L.C.
Project) 1998 DN (Key Corp. Bank
N.A. LOC)(DAGGER)
3.300% 09/07/99 ........................... 2,405 2,405,000
------------
WISCONSIN--4.2%
Amery IDA RB (Plastech Corp.)
Series 1997 DN (U.S. Bank, N.A.
LOC)(DAGGER)
3.500% 09/07/99 ........................... 2,000 2,000,000
Franklin, City Of, IDA RB Series 1998
(All Glass Aquarium Co., Inc.
Project) DN (Banc One Funding
Corp. LOC)(DAGGER)
3.420% 09/07/99 ........................... 4,390 4,390,000
Mequon, City of, IDA RB (Johnson
Level GRW Investment Project) DN(DAGGER)
3.420% 09/07/99 ........................... 2,345 2,345,000
Wisconsin Rapids City IDA RB (Theile
Kaolin of Wisconsin, Inc. Project)
DN (Sunbank LOC)(DAGGER)
3.400% 09/07/99 ........................... 2,250 2,250,000
------------
10,985,000
------------
TOTAL MUNICIPAL BONDS
(Cost $270,835,326) ................... 270,835,326
------------
See Accompanying Notes to Financial Statements.
12
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
MUNICIPAL MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS (CONCLUDED)
AUGUST 31, 1999
VALUE
------------
TOTAL INVESTMENTS AT VALUE--102.2%
(Cost $270,835,326*) ...................... $270,835,326
------------
OTHER LIABILITIES IN EXCESS
OF ASSETS--(2.2%) ......................... (5,803,862)
------------
NET ASSETS (Applicable to
150,350,026 Bedford shares,
214,372 Cash Preservation
shares, 114,540,864 Janney
Montgomery Scott shares
and 800 other shares)--100% .................. $265,031,464
============
NET ASSET VALUE, Offering and
redemption price per share
($265,031,464 (DIVIDE) 265,106,062) ....... $1.00
=====
* Also cost for Federal income tax purposes.
(DAGGER) Variable Rate Demand Notes -- The rate shown is the rate as of August
31, 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.
INVESTMENT ABBREVIATIONS
BAN ......................................................Bond Anticipation Note
DN ..................................................................Demand Note
GO ..........................................................General Obligations
LOC ............................................................Letter of Credit
IDA ............................................Industrial Development Authority
MB ...............................................................Municipal Bond
PCR ...................................................Pollution Control Revenue
RAN ...................................................Revenue Anticipation Note
RAW ...............................................Revenue Anticipation Warrants
RB .................................................................Revenue Bond
TAN .......................................................Tax Anticipation Note
TECP ................................................Tax Exempt Commercial Paper
TRAN ..........................................Tax and Revenue Anticipation Note
See Accompanying Notes to Financial Statements.
13
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
GOVERNMENT OBLIGATIONS MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS
AUGUST 31, 1999
PAR
(000) VALUE
-------- ------------
AGENCY OBLIGATIONS--40.2%
FEDERAL AGRICULTURAL MORTGAGE CORP.--4.1%
5.050% 10/04/99 ........................... $ 11,000 $ 10,949,079
5.070% 10/05/99 ........................... 9,000 8,956,905
------------
19,905,984
------------
FEDERAL FARM CREDIT BANK--3.1%
4.760% 01/18/00 ........................... 15,000 14,993,785
------------
FEDERAL HOME LOAN BANK--10.3%
4.900% 01/14/00 ........................... 10,000 9,999,422
4.850% 01/27/00 ........................... 10,000 10,000,000
5.035% 02/25/00 ........................... 10,000 9,997,139
5.160% 03/08/00 ........................... 5,000 4,987,100
5.010% 04/28/00 ........................... 15,000 14,994,590
------------
49,978,251
------------
FEDERAL HOME LOAN MORTGAGE CORPORATION--4.0%
5.450% 03/30/00 ........................... 10,000 9,680,569
5.200% 06/30/00 ........................... 10,000 9,562,333
------------
19,242,902
------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION--18.7%
4.880% 09/01/99 ........................... 10,000 10,000,000
4.900% 09/01/99 ........................... 10,000 10,000,000
6.000% 09/02/99 ........................... 5,000 5,000,115
4.890% 09/03/99 ........................... 15,000 14,995,925
4.930% 09/10/99 ........................... 15,000 14,981,513
4.700% 10/15/99 ........................... 15,000 14,913,833
4.860% 02/10/00 ........................... 15,000 14,994,874
5.460% 06/21/00 ........................... 5,000 4,999,237
------------
89,885,497
------------
TOTAL AGENCY OBLIGATIONS
(Cost $194,006,419) ................... 194,006,419
------------
VARIABLE RATE OBLIGATIONS--31.7%
FEDERAL HOME LOAN BANK--6.2%
5.370% 09/01/99(DAGGER) ................... 20,000 19,998,547
5.415% 09/01/99(DAGGER) ................... 10,000 9,996,913
------------
29,995,460
------------
FEDERAL HOME LOAN MORTGAGE CORPORATION--6.2%
5.084% 09/20/99(DAGGER) ................... 30,000 29,982,951
------------
PAR
(000) VALUE
-------- ------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION--19.3%
4.997% 09/02/99(DAGGER) ................... $ 10,000 $ 9,993,803
4.975% 09/22/99(DAGGER) ................... 13,000 12,994,840
4.974% 09/23/99(DAGGER) ................... 35,000 34,987,320
5.155% 11/05/99(DAGGER) ................... 25,000 24,989,523
5.188% 11/09/99(DAGGER) ................... 10,000 9,994,377
------------
92,959,863
------------
TOTAL VARIABLE RATE OBLIGATIONS
(Cost $152,938,274) ................... 152,938,274
------------
REPURCHASE AGREEMENTS--27.9%
Greenwich Capital Markets, Inc.
(Agreement dated 08/31/99 to be
repurchased at $25,003,792
collateralized by $1,487,164
Federal Farm Credit Bank 5.25%
due 05/01/02, $1,599,763 Federal
National Mortgage Association
due 09/06/00, $4,838,054 Federal
National Mortgage Association
Medium Term Note 5.41% due 12/15/03,
and $17,826,735 Federal Home
Loan Bank 5.125% to 7.05% due
02/26/02 to 09/02/08. Market Value
of collateral is $25,751,716.)
5.460% 09/01/99 ........................... 25,000 25,000,000
Morgan Stanley & Co. Incorporated
(Agreement dated 08/31/99 to be
repurchased at $100,016,743
collateralized by $19,133,459
Federal National Mortgage
Association 6.00% and 6.49% due
05/19/03 and 02/20/08, $83,883,787
Federal Home Loan Mortgage Corp.
5.85% due 02/24/00 and 04/30/04.
Market Value of collateral is
$103,017,246.)
5.563% 09/01/99 ........................... 100,000 100,000,000
See Accompanying Notes to Financial Statements.
14
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
GOVERNMENT OBLIGATIONS MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS (CONCLUDED)
AUGUST 31, 1999
PAR
(000) VALUE
-------- ------------
REPURCHASE AGREEMENTS--(CONTINUED)
Warburg Dillon Read LLC
(Agreement dated 08/31/99 to be
repurchased at $9,701,481
collateralized by $9,206,287 par U.S.
Treasury Note 7.25% due 05/15/16,
and $688,354 U.S. Government
Strip Principal par 8.75% due 05/15/20.
Market Value of collateral is $9,716,722.)
5.500% 09/01/99 ........................... $ 9,700 $ 9,700,000
------------
TOTAL REPURCHASE AGREEMENTS
(Cost $134,700,000) ................... 134,700,000
------------
TOTAL INVESTMENTS AT VALUE--99.8%
(Cost $481,644,693*) ...................... 481,644,693
------------
OTHER ASSETS IN EXCESS
OF LIABILITIES--0.2% ...................... 751,516
------------
NET ASSETS (Applicable to
113,047,390 Bedford shares,
369,405,261 Janney
Montgomery Scott shares and 800
other shares)--100.0% ..................... $482,396,209
============
NET ASSET VALUE, Offering and
redemption price per share
($482,396,209 (DIVIDE) 482,453,451) $1.00
=====
* Also cost for Federal income tax purposes.
(DAGGER) Variable Rate Obligations -- The interest rate is the rate as of August
31, 1999 and the maturity date shown is the date the principal amount
shown can be recovered through demand or put.
See Accompanying Notes to Financial Statements.
15
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
MONEY MARKET PORTFOLIO
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED AUGUST 31, 1999
<TABLE>
<CAPTION>
GOVERNMENT
MUNICIPAL OBLIGATIONS
MONEY MARKET MONEY MARKET MONEY MARKET
PORTFOLIO PORTFOLIO PORTFOLIO
------------ ------------ ------------
<S> <C> <C> <C>
Investment Income
Interest ........................... $136,764,907 $9,200,933 $26,687,494
------------ ---------- -----------
Expenses
Distribution fees ............... 10,596,485 1,650,584 3,169,960
Investment advisory fees ........ 9,552,406 955,350 2,219,677
Transfer agent fees ............. 2,501,558 106,450 531,967
Service organization fees ....... 572,331 -- --
Printing fees ................... 545,693 50,127 118,606
Custodian fees .................. 417,907 59,688 101,289
Legal fees ...................... 240,567 12,290 35,531
Registration fees ............... 225,000 108,000 72,000
Audit fees ...................... 142,476 19,958 29,138
Directors' fees ................. 71,775 6,936 10,298
Insurance expense ............... 33,113 3,217 6,035
SEC fees ........................ 2,611 1,869 280
Miscellaneous ................... 326 4,072 --
Administration fees ............. -- 276,787 --
------------ ---------- -----------
24,902,248 3,255,328 6,294,781
Less fees waived and reimbursed . (3,795,799) (826,004) (1,054,615)
------------ ---------- -----------
Total expenses ............. 21,106,449 2,429,324 5,240,166
------------ ---------- -----------
Net investment income .............. 115,658,458 6,771,609 21,447,328
------------ ---------- -----------
Realized gain (loss) on investments 72,320 -- (37,985)
------------ ---------- -----------
Net increase in net assets resulting
from operations $115,730,778 $6,771,609 $21,409,343
============ ========== ===========
</TABLE>
See Accompanying Notes to Financial Statements.
16
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
MUNICIPAL MONEY
MONEY MARKET PORTFOLIO MARKET PORTFOLIO
-------------------------------- --------------------------------
FOR THE FOR THE FOR THE FOR THE
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
AUGUST 31, 1999 AUGUST 31, 1998 AUGUST 31, 1999 AUGUST 31, 1998
--------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C>
Increase (decrease)
in net assets:
Operations:
Net investment income ......... $ 115,658,458 $ 127,866,778 $ 6,771,609 $ 9,017,840
Net gain (loss) on
investments ................. 72,320 (95,478) -- (3,055)
-------------- -------------- ------------ ------------
Net increase in net
assets resulting
from operations ............. 115,730,778 127,771,300 6,771,609 9,014,785
-------------- -------------- ------------ ------------
Distributions to
shareholders:
Dividends to
shareholders from
net investment income:
Bedford shares .............. (28,089,918) (56,898,248) (3,903,796) (5,548,854)
Bradford shares ............. -- -- -- (405,975)
Cash Preservation shares .... (7,069) (10,274) (4,151) (2,738)
Janney Montgomery Scott
shares .................... (43,156,041) (38,111,646) (2,863,662) (3,060,273)
Principal shares ............ (2,455,484) -- -- --
Sansom Street shares ........ (36,008,586) (32,846,610) -- --
Select shares ............... (5,941,360) -- -- --
-------------- -------------- ------------ ------------
(115,658,458) (127,866,778) (6,771,609) (9,017,840)
Distribution in excess
of net investment income:
Bedford shares .............. (2,671) (7,165) -- --
Cash Preservation shares .... (1) (1) -- --
Janney Montgomery Scott
shares .................... (2,921) (3,979) -- --
Sansom Street shares ........ (2,010) (2,838) -- --
Select shares ............... (102) -- -- --
-------------- -------------- ------------ ------------
(7,705) (13,983)
Total dividends to
shareholders ............ (115,666,163) (127,880,761) (6,771,609) (9,017,840)
-------------- -------------- ------------ ------------
Net capital share transactions .. 423,497,416 (384,357,868) 19,860,650 (242,871,947)
-------------- -------------- ------------ ------------
Total increase/(decrease) in
net assets .................... 423,562,031 (384,467,329) 19,860,650 (242,875,001)
Net Assets:
Beginning of year ............. 2,315,558,300 2,700,025,629 245,170,814 488,045,815
-------------- -------------- ------------ ------------
End of year ................... $2,739,120,331 $2,315,558,300 $265,031,464 $245,170,814
============== ============== ============ ============
</TABLE>
<TABLE>
<CAPTION>
Government Obligations
MONEY MARKET PORTFOLIO
--------------------------------
FOR THE FOR THE
YEAR ENDED YEAR ENDED
AUGUST 31, 1999 AUGUST 31, 1998
--------------- ---------------
<S> <C> <C>
Increase (decrease)
in net assets:
Operations:
Net investment income ......... $ 21,447,328 $ 26,408,463
Net gain (loss) on
investments ................. (37,985) (5,792)
------------ -------------
Net increase in net
assets resulting
from operations ............. 21,409,343 26,402,671
------------ -------------
Distributions to
shareholders:
Dividends to
shareholders from
net investment income:
Bedford shares .............. (5,251,973) (8,627,495)
Bradford shares ............. -- (184,938)
Cash Preservation shares .... -- --
Janney Montgomery Scott
shares .................... (16,195,355) (17,595,930)
Principal shares ............ -- --
Sansom Street shares ........ -- --
Select shares ............... -- --
------------ -------------
(21,447,328) (26,408,363)
Distribution in excess
of net investment income:
Bedford shares .............. -- --
Cash Preservation shares .... -- --
Janney Montgomery Scott
shares .................... -- --
Sansom Street shares ........ -- --
Select shares ............... -- --
------------ -------------
-- --
Total dividends to
shareholders ............ (21,447,328) (26,408,363)
------------ -------------
Net capital share transactions .. (25,077,711) (106,714,614)
------------ -------------
Total increase/(decrease) in
net assets .................... (25,115,696) (106,720,306)
Net Assets:
Beginning of year ............. 507,511,905 614,232,211
------------ -------------
End of year ................... $482,396,209 $ 507,511,905
============ =============
</TABLE>
See Accompanying Notes to Financial Statements.
17
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
FINANCIAL HIGHLIGHTS (B)
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
MONEY MARKET PORTFOLIO
-----------------------------------------------------------------------------------
FOR THE FOR THE FOR THE FOR THE FOR THE
YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED
AUGUST 31, 1999 AUGUST 31, 1998 AUGUST 31, 1997 AUGUST 31, 1996 AUGUST 31, 1995
--------------- --------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C> <C>
Net asset value,
beginning of year $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- ---------- ---------- --------
Income from investment
operations:
Net investment income 0.0425 0.0473 0.0462 0.0469 0.0486
-------- -------- ---------- ---------- --------
Total from investment
operations 0.0425 0.0473 0.0462 0.0469 0.0486
-------- -------- ---------- ---------- --------
Less distributions
Dividends (from net
investment income) (0.0425) (0.0473) (0.0462) (0.0469) (0.0486)
-------- -------- ---------- ---------- --------
Total distributions (0.0425) (0.0473) (0.0462) (0.0469) (0.0486)
-------- -------- ---------- ---------- --------
Net asset value, end of year $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== -------- ---------- ---------- --------
Total Return 4.34% 4.84% 4.72% 4.79% 4.97%
Ratios/Supplemental Data
Net assets, end of
year (000) $360,123 $762,739 $1,392,911 $1,109,334 $935,821
Ratios of expenses to
average net assets .97%(a) .97%(a) .97%(a) .97%(a) .96%(a)
Ratios of net investment
income to average
net assets 4.25% 4.73% 4.62% 4.69% 4.86%
</TABLE>
(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
1.08%, 1.10%, 1.12%, 1.14%, and 1.17%, for the years ended August 31,
1999, 1998, 1997, 1996, and 1995, respectively. For the Municipal
Money Market Portfolio, the ratios of expenses to average net assets
would have been 1.15%, 1.15%, 1.14%, 1.12% and 1.14% for the years
ended August 31, 1999, 1998, 1997, 1996 and 1995, respectively.
(b) Financial Highlights relate solely to the Bedford Class of shares
within each portfolio.
<TABLE>
<CAPTION>
MUNICIPAL MONEY MARKET PORTFOLIO
-----------------------------------------------------------------------------------
FOR THE FOR THE FOR THE FOR THE FOR THE
YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED
AUGUST 31, 1999 AUGUST 31, 1998 AUGUST 31, 1997 AUGUST 31, 1996 AUGUST 31, 1995
--------------- --------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C> <C>
Net asset value,
beginning of year $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------- --------
Income from investment
operations:
Net investment income 0.0243 0.0286 0.0285 0.0288 0.0297
-------- -------- -------- -------- --------
Total from investment
operations 0.0243 0.0286 0.0285 0.0288 0.0297
-------- -------- -------- -------- --------
Less distributions
Dividends (from net
investment income) (0.0243) (0.0286) (0.0285) (0.0288) (0.0297)
-------- -------- -------- -------- --------
Total distributions (0.0243) (0.0286) (0.0285) (0.0288) (0.0297)
-------- -------- -------- -------- --------
Net asset value, end of year $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------- --------
Total Return 2.46% 2.97% 2.88% 2.92% 3.01%
Ratios/Supplemental Data
Net assets, end of
year (000) $150,278 $147,633 $213,034 $201,940 $198,425
Ratios of expenses to
average net assets .89%(a) .89%(a) .85%(a) .84%(a) .82%(a)
Ratios of net investment
income to average
net assets 2.43% 2.86% 2.85% 2.88% 2.97%
</TABLE>
(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 Municipal Money Market Portfolio, the
ratios of expenses to average net assets would have been 1.15%, 1.15%,
1.14%, 1.12%, and 1.14%, for the years ended August 31, 1999, 1998,
1997, 1996, and 1995 respectively. For the Municipal Money Market
Portfolio, the ratios of expenses to average net assets would have
been 1.15%, 1.15%, 1.14%, 1.12% and 1.14% for the years ended August
31, 1999, 1998, 1997, 1996 and 1995, respectively.
(b) Financial Highlights relate solely to the Bedford Class of shares
within each portfolio.
See Accompanying Notes to Financial Statements.
18
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
FINANCIAL HIGHLIGHTS (B)
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
FOR THE FOR THE FOR THE FOR THE FOR THE
YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED
AUGUST 31, 1999 AUGUST 31, 1998 AUGUST 31, 1997 AUGUST 31, 1996 AUGUST 31, 1995
--------------- --------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year .... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------- --------
Income from investment operations:
Net investment income ............... 0.0409 0.0463 0.0449 0.0458 0.0475
-------- -------- -------- -------- --------
Total from investment operations ... 0.0409 0.0463 0.0449 0.0458 0.0475
-------- -------- -------- -------- --------
Less distributions
Dividends (from net
investment income) ............... (0.0409) (0.0463) (0.0449) (0.0458) (0.0475)
-------- -------- -------- -------- --------
Total distributions ................ (0.0409) (0.0463) (0.0449) (0.0458) (0.0475)
-------- -------- -------- -------- --------
Net asset value, end of year .......... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ========
Total Return ....................... 4.17% 4.74% 4.59% 4.68% 4.86%
Ratios/Supplemental Data
Net assets, end of year (000) ....... $113,050 $128,447 $209,715 $192,599 $163,398
Ratios of expenses to average
net assets ....................... .975%(a) .975%(a) .975%(a) .975%(a) .975%(a)
Ratios of net investment income
to average net assets ............ 4.09% 4.63% 4.49% 4.58% 4.75%
</TABLE>
(a) Without the waiver of advisory, distribution and administration fees
and without the reimbursement of certain operating expenses, the ratios
of expenses to average net assets for the Government Obligations Money
Market Portfolio would have been 1.13%, 1.10%, 1.09%, 1.10%, and 1.13%,
for the years ended August 31, 1999, 1998, 1997, 1996 and 1995
respectively.
(b) Financial Highlights relate solely to the Bedford Class of shares
within each portfolio.
See Accompanying Notes to Financial Statements.
19
<PAGE>
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 20.03 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 sixteen separate "families", nine of
which have begun investment operations: the Principal Family, the Select Family,
the Sansom Street Family, the Bedford Family, the Cash Preservation Family, the
Janney Montgomery Scott Family, the n/i numeric investors Family, the Boston
Partners Family and the Schneider Family. The Janney Montgomery Scott Family
represents interests in four 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 Portfolio seeks to maintain net asset value
per share at $1.00.
B) SECURITY TRANSACTIONS AND INVESTMENT INCOME -- Security
transactions are accounted for on the trade date. The cost of investments
sold is determined by use of the specific identification method for both
financial reporting and income tax purposes. Interest income is recorded
on the accrual basis. Certain expenses, principally distribution, transfer
agency and printing, are class specific expenses and vary by class.
Expenses not directly attributable to a specific portfolio or class are
allocated based on relative net assets of each portfolio and class,
respectively.
C) DISTRIBUTIONS TO SHAREHOLDERS -- Dividends from net investment
income are declared daily and paid monthly. Any net realized capital gains
are distributed at least annually. Income distributions and capital gain
distributions are determined in accordance with income tax regulations
which may differ from generally accepted accounting principals.
D) FEDERAL INCOME TAXES -- No provision is made for Federal taxes as
it is the Fund's intention to have each portfolio to 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 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.
20
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
AUGUST 31, 1999
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
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.
NOTE 2. TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES
Pursuant to Investment Advisory Agreements, BlackRock Institutional
Management Corporation ("BIMC"), an indirect majority-owned subsidiary of PNC
Bank, serves as investment adviser to the portfolio described herein, and also
serves as administrator to the Money Market and Government Obligations Money
Market Portfolios. For the Money Market and Government Obligations Money Market
Portfolios, BIMC and PFPC have entered into a delegation agreement, whereas PFPC
has agreed to perform Administration and Accounting services for an annual fee
of .10% of the average net assets of the portfolios.
For its advisory services, BIMC is entitled to receive the following fees,
computed daily and payable monthly based on the 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.
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 year ended August 31, 1999, advisory fees and waivers for the
investment portfolios were as follows:
<TABLE>
<CAPTION>
GROSS NET
ADVISORY ADVISORY
FEE WAIVER FEE
-------------- ------------- ------------
<S> <C> <C> <C>
Money Market Portfolio $9,552,406 $(2,971,645) $6,580,761
Municipal Money Market Portfolio 955,350 (716,746) 238,604
Government Obligations Money Market Portfolio 2,219,677 (833,218) 1,386,459
</TABLE>
The investment advisor has agreed to reimburse each portfolio for the amount, if
any, by which the net operating and management expenses exceed the expense cap.
For the year ended August 31, 1999 the reimbursed expenses were $819,409,
$102,998, and $221,397 for the Money Market Portfolio, Municipal Money Market
Portfolio, and Government Obligations Money Market Portfolio, respectively.
In addition, PFPC Trust Co. serves as custodian for each of the Fund's
portfolios. PFPC Inc. ("PFPC") serves as each class's 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.
21
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
AUGUST 31, 1999
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 year ended August 31, 1999,
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 $ 366,050 $ -- $ 366,050
Cash Preservation Class 5,156 (4,745) 411
Janney Montgomery Scott Class 1,679,402 -- 1,679,402
Principal Class 1,950 -- 1,950
Sansom Street Class 444,751 -- 444,751
Select 4,249 -- 4,249
---------- ------- ----------
Total Money Market Portfolio $2,501,558 $(4,745) $2,496,813
========== ======= ==========
Municipal Money Market Portfolio
Bedford Class $ 26,196 $ -- $ 26,196
Cash Preservation Class 6,831 (6,260) 571
Janney Montgomery Scott Class 73,423 -- 73,423
---------- ------- ----------
Total Municipal Money Market Portfolio $ 106,450 $(6,260) $ 100,190
========== ======= ==========
Government Obligations Money Market Portfolio
Bedford Class $ 23,876 $ -- $ 23,876
Janney Montgomery Scott Class 508,091 -- 508,091
---------- ------- ----------
Total Government Obligations Money Market Portfolio $ 531,967 $ -- $ 531,967
========== ======= ==========
</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 net assets. PFPC may, at
its discretion, voluntarily waive all or any portion of its administration fee
for a Portfolio. For the year ended August 31, 1999, administration fee for the
Portfolio was as follows:
ADMINISTRATION
FEE
------------------
Municipal Money Market Portfolio $276,787
22
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
AUGUST 31, 1999
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. 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 PDI of
up to .65% on an annualized basis for the Bedford, Cash Preservation, Principal,
and Janney Montgomery Scott Classes and up to .20% on an annualized basis for
the Sansom Street Class.
For the year ended August 31, 1999, distribution fees for each class were
as follows:
DISTRIBUTION
FEE
--------------
Money Market Portfolio
Bedford Class $ 3,832,958
Cash Preservation Class 657
Janney Montgomery Scott Class 6,150,849
Principal Class 225,438
Sansom Street Class 386,583
-----------
Total Money Market Portfolio $10,596,485
===========
Municipal Money Market Portfolio
Bedford Class $ 951,897
Cash Preservation Class 716
Janney Montgomery Scott Class 697,971
-----------
Total Municipal Money Market Portfolio $ 1,650,584
===========
Government Obligations Money Market Portfolio
Bedford Class $ 778,123
Janney Montgomery Scott Class 2,391,837
-----------
Total Government Obligations Money Market Portfolio $ 3,169,960
===========
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 year ended August 31, 1999 service
organization fees were $572,331 for the Money Market Portfolio.
23
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
AUGUST 31, 1999
NOTE 3. CAPITAL SHARES
Transactions in capital shares (at $1 per capital share) for each year were
as follows:
<TABLE>
<CAPTION>
MUNICIPAL MONEY
MONEY MARKET PORTFOLIO MARKET PORTFOLIO
---------------------------------- ----------------------------------
FOR THE FOR THE FOR THE FOR THE
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
AUGUST 31, 1999 AUGUST 31, 1998 AUGUST 31, 1999 AUGUST 31, 1998
---------------- ---------------- ---------------- ----------------
VALUE VALUE VALUE VALUE
---------------- ---------------- ---------------- ----------------
<S> <C> <C> <C> <C>
Shares sold:
Bedford Class $ 1,676,808,408 $ 4,081,920,081 $ 471,166,299 $ 1,250,832,088
Bradford Class -- -- -- 59,917,620
Cash Preservation Class 114,454 113,319 178,689 65,859
Janney Montgomery
Scott Class 4,931,373,936 3,910,533,620 445,130,179 404,988,148
Principal Class 318,334,115 -- -- --
Sansom Street Class 2,907,994,377 2,296,071,622 -- --
Select Class 1,439,090,920 -- -- --
---------------- ---------------- ------------- ----------------
Total Shares Purchased 11,273,716,210 10,288,638,642 916,475,167 1,715,737,856
Shares issued in
reinvestment of dividends:
Bedford Class 28,217,868 56,201,453 3,895,215 5,440,322
Bradford Class -- -- -- 427,390
Cash Preservation Class 7,224 10,291 3,980 2,591
Janney Montgomery
Scott Class 43,272,113 37,882,680 2,871,349 3,071,524
Principal Class 2,206,341 -- -- --
Sansom Street Class 26,800,967 24,189,907 -- --
Select Class 347,980 -- -- --
---------------- ---------------- ------------- ----------------
Total Shares Reinvested 100,852,493 118,284,331 6,770,544 8,941,827
Shares repurchased:
Bedford Class (2,107,674,545) (4,768,237,063) (472,416,562) (1,321,667,987)
Bradford Class -- -- -- (226,438,837)
Cash Preservation Class (217,053) (139,525) (60,295) (73,397)
Janney Montgomery
Scott Class (4,790,786,046) (3,780,710,398) (430,908,204) (419,437,268)
Principal Class (102,006,633) -- -- --
Sansom Street Class (2,741,000,161) (2,242,193,855) -- --
Select Class (1,209,386,849) -- -- --
---------------- ---------------- ------------- ----------------
Total Shares Repurchased (10,951,071,287) (10,791,280,841) (903,385,061) (1,967,551,630)
---------------- ---------------- ------------- ----------------
Net increase (decrease) $ 423,497,416 $ (384,357,868) $ 19,860,650 $ (242,871,947)
================ ================ ============= ================
Bedford Shares authorized 1,500,000,000 1,500,000,000 500,000,000 500,000,000
================ ================ ============= ================
</TABLE>
24
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
AUGUST 31, 1999
NOTE 3. CAPITAL SHARES (CONTINUED)
<TABLE>
<CAPTION>
GOVERNMENT OBLIGATIONS
MONEY MARKET PORTFOLIO
----------------------------------
FOR THE FOR THE
YEAR ENDED YEAR ENDED
AUGUST 31, 1999 AUGUST 31, 1998
---------------- ----------------
VALUE VALUE
---------------- ----------------
<S> <C> <C>
Shares sold:
Bedford Class $ 351,502,731 $ 570,413,536
Bradford Class -- 14,367,467
Janney Montgomery
Scott Class 1,424,893,515 1,493,397,997
--------------- ---------------
Total Shares Sold 1,776,396,246 2,078,179,000
Shares issued in
reinvestment of dividends:
Bedford Class 5,293,048 8,589,078
Bradford Class -- 214,626
Janney Montgomery
Scott Class 16,337,605 17,567,622
--------------- ---------------
Total Shares Reinvested 21,630,653 26,371,326
Shares repurchased:
Bedford Class (372,183,308) (660,253,321)
Bradford Class -- (66,190,133)
Janney Montgomery
Scott Class (1,450,921,302) (1,484,821,486)
--------------- ---------------
Total Shares Repurchased (1,823,104,610) (2,211,264,940)
--------------- ---------------
Net increase (decrease) $ (25,077,711) $ (106,714,614)
=============== ===============
Bedford Shares authorized 500,000,000 500,000,000
=============== ===============
</TABLE>
25
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
AUGUST 31, 1999
NOTE 4. NET ASSETS
At August 31, 1999, net assets consisted of the following:
GOVERNMENT
MUNICIPAL OBLIGATIONS
MONEY MARKET MONEY MARKET MONEY MARKET
PORTFOLIO PORTFOLIO PORTFOLIO
-------------- ------------ ------------
Capital paid-in $2,739,176,360 $265,050,401 $482,453,551
Accumulated net
realized gain (loss)
on investments (56,029) (18,937) (57,342)
-------------- ------------ ------------
$2,739,120,331 $265,031,464 $482,396,209
============== ============ ============
NOTE 5. CAPITAL LOSS CARRYOVER
At August 31, 1999 capital loss carryovers were available to offset future
realized gains as follows: $18,937 in the Municipal Money Market Portfolio of
which, $444 expires in 2000, $1,058 expires in 2001, $9,789 expires in 2002,
$674 expires in 2004, $3,917 expires in 2005, and $3,055 expires in 2006;
$57,342 in the Government Obligations Money Market Portfolio of which $12,275
expires in 2004, $1,291 expires in 2005, $5,792 expires in 2006, and $37,984
expires in 2007.
The Municipal Money Market Portfolio had $55,760 of capital loss carryover
that expired in 1999.
26
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
AUGUST 31, 1999
NOTE 6. OTHER FINANCIAL HIGHLIGHTS
The Fund currently offers five other classes of shares representing
interest in the Money Market Portfolio: Janney Montgomery Scott, Cash
Preservation, Sansom Street, Select and Principal. The Fund currently offers two
other classes of shares representing interest in the Municipal Money Market
Portfolio: Janney Montgomery Scott and Cash Preservation. The Fund currently
offers one other class of shares representing 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 are not presented in this report due to their immateriality.
Such information is available in the annual report of its respective family. The
financial highlights of certain of the other classes are as follows:
THE JANNEY MONTGOMERY SCOTT FAMILY (C)
<TABLE>
<CAPTION>
MONEY MARKET PORTFOLIO
-----------------------------------------------------------------
FOR THE PERIOD
FOR THE FOR THE FOR THE FOR THE JUNE 12, 1995
YEAR YEAR YEAR YEAR (COMMENCEMENT
ENDED ENDED ENDED ENDED OF OPERATIONS)TO
AUGUST 31, AUGUST 31, AUGUST 31, AUGUST 31, AUGUST 31,
1999 1998 1997 1996 1995
---------- -------- ---------- ---------- ----------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning
of year or period ............. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
---------- -------- -------- -------- ----------
Income from investment
operations:
Net investment income ......... 0.0422 0.0469 0.0459 0.0465 0.0112
---------- -------- -------- -------- ----------
Total from investment
operations .............. 0.0422 0.0469 0.0459 0.0465 0.0112
---------- -------- -------- -------- ----------
Less distributions
Dividends (from net
investment income) .......... (0.0422) (0.0469) (0.0459) (0.0465) (0.0112)
---------- -------- -------- -------- ----------
Total distributions ....... (0.0422) (0.0469) (0.0459) (0.0465) (0.0112)
---------- -------- -------- -------- ----------
Net asset value, end of
year or period ................ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========== ======== ======== ======== ==========
Total Return .................... 4.30% 4.81% 4.69% 4.76% 5.30%(b)
Ratios /Supplemental Data
Net assets, end of year or
period (000) ................ $1,088,405 $904,526 $736,855 $561,865 $443,645
Ratios of expenses to
average net assets .......... 1.00%(a) 1.00%(a) 1.00%(a) 1.00%(a) 1.00%(a)(b)
Ratios of net investment
income to average
net assets .................. 4.22% 4.69% 4.59% 4.65% 5.04%(b)
</TABLE>
(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 1.19%, 1.21%, 1.22%, 1.23% and 1.23% for the years or period
ended August 31, 1999, 1998, 1997, 1996 and 1995, respectively.
(b) Annualized.
(c) Financial Highlights relate solely to the Janney Montgomery Scott Class
of shares within each portfolio.
27
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
AUGUST 31, 1999
NOTE 6. OTHER FINANCIAL HIGHLIGHTS (CONTINUED)
THE JANNEY MONTGOMERY SCOTT FAMILY (C) (CONTINUED)
<TABLE>
<CAPTION>
MUNICIPAL MONEY MARKET PORTFOLIO
----------------------------------------------------------------
FOR THE PERIOD
FOR THE FOR THE FOR THE FOR THE JUNE 12, 1995
YEAR YEAR YEAR YEAR (COMMENCEMENT
ENDED ENDED ENDED ENDED OF OPERATIONS) TO
AUGUST 31, AUGUST 31, AUGUST 31, AUGUST 31, AUGUST 31,
1999 1998 1997 1996 1995
---------- ---------- ---------- ---------- -----------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning
of year or period ............. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------- -----------
Income from investment
operations:
Net investment income ......... 0.0246 0.0290 0.0285 0.0278 0.0063
-------- ------- -------- -------- -----------
Total from investment
operations .............. 0.0246 0.0290 0.0285 0.0278 0.0063
-------- ------- -------- -------- -----------
Less distributions
Dividends (from net
investment income) .......... (0.0246) (0.0290) (0.0285) (0.0278) (0.0063)
-------- ------- -------- -------- -----------
Total distributions ....... (0.0246) (0.0290) (0.0285) (0.0278) (0.0063)
-------- ------- -------- -------- -----------
Net asset value, end of
year or period ................ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======= ======== ======== ===========
Total Return .................... 2.49% 2.94% 2.89% 2.81% 2.87%(b)
Ratios /Supplemental Data
Net assets, end of year or
period (000) ................ $114,539 $97,445 $108,826 $ 89,428 $ 113,256
Ratios of expenses to
average net assets .......... 0.86%(a) 0.86%(a) 0.85%(a) 0.94%(a) 1.00%(a)(b)
Ratios of net investment
income to average
net assets .................. 2.46% 2.90% 2.85% 2.78% 2.83%(b)
</TABLE>
(a) For the Municipal Money Market Portfolio, the ratio of expenses to
average net assets would have been 1.20%, 1.16%, 1.13%, 1.23% and
1.30% for the years or periods ended August 31, 1999, 1998, 1997, 1996
and 1995, respectively.
(b) Annualized.
(c) Financial Highlights relate solely to the Janney Montgomery Scott Class
of shares within each portfolio.
28
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
AUGUST 31, 1999
NOTE 6. OTHER FINANCIAL HIGHLIGHTS (CONTINUED)
THE JANNEY MONTGOMERY SCOTT FAMILY (C) (CONTINUED)
<TABLE>
<CAPTION>
GOVERNMENT OBLIGATIONS
MONEY MARKET PORTFOLIO
-----------------------------------------------------------------
FOR THE PERIOD
FOR THE FOR THE FOR THE FOR THE JUNE 12, 1995
YEAR YEAR YEAR YEAR (COMMENCEMENT
ENDED ENDED ENDED ENDED OF OPERATIONS) TO
AUGUST 31, AUGUST 31, AUGUST 31, AUGUST 31, AUGUST 31,
1999 1998 1997 1996 1995
---------- ---------- ---------- ---------- -----------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning
of year or period ............. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------- ----------
Income from investment
operations:
Net investment income ......... 0.0406 0.0460 0.0447 0.0456 0.0109
-------- -------- -------- -------- ----------
Total from investment
operations .............. 0.0406 0.0460 0.0447 0.0456 0.0109
-------- -------- -------- -------- ----------
Less distributions
Dividends (from net
investment income) .......... (0.0406) (0.0460) (0.0447) (0.0456) (0.0109)
-------- -------- -------- -------- ----------
Total distributions ....... (0.0406) (0.0460) (0.0447) (0.0456) (0.0109)
-------- -------- -------- -------- ----------
Net asset value,
end of year or period ......... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ==========
Total Return .................... 4.14% 4.71% 4.56% 4.66% 5.03%(b)
Ratios /Supplemental Data
Net assets, end of
year or period (000) ........ $369,346 $379,065 $352,950 $306,757 $302,585
$14,671
Ratios of expenses to
average net assets .......... 1.00%(a) 1.00%(a) 1.00%(a) 1.00%(a) 1.00%(a)(b)
Ratios of net investment
income to average
net assets .................. 4.06% 4.60% 4.47% 4.56% 4.91%(b)
</TABLE>
(a) Without the waiver of advisory, 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 1.21%, 1.23%, 1.23%, 1.25% and 1.28% for the
years or periods ended August 31, 1999, 1998, 1997, 1996 and 1995
respectively.
(b) Annualized.
(c) Financial Highlights relate solely to the Janney Montgomery Scott Class
of shares within each portfolio.
29
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
AUGUST 31, 1999
NOTE 6. OTHER FINANCIAL HIGHLIGHTS (CONTINUED)
THE SANSOM STREET FAMILY (B)
<TABLE>
<CAPTION>
MONEY MARKET PORTFOLIO
-----------------------------------------------------------------------------------
FOR THE FOR THE FOR THE FOR THE FOR THE
YEAR YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED
AUGUST 31, 1999 AUGUST 31, 1998 AUGUST 31, 1997 AUGUST 31, 1996 AUGUST 31, 1995
--------------- --------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------- --------
Income from investment operations:
Net investment income 0.0473 0.0520 0.0510 0.0518 0.0543
-------- -------- -------- -------- --------
Total from investment operations 0.0473 0.0520 0.0510 0.0518 0.0543
-------- -------- -------- -------- --------
Less distributions
Dividends (from net investment income) (0.0473) (0.0520) (0.0510) (0.0518) (0.0543)
-------- -------- -------- -------- --------
Total distributions (0.0473) (0.0520) (0.0510) (0.0518) (0.0543)
-------- -------- -------- -------- --------
Net asset value, end of year $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ========
Total Return 4.83% 5.34% 5.22% 5.30% 5.57%
Ratios/Supplemental Data
Net assets, end of year $841,887 $684,066 $570,018 $524,359 $441,614
Ratios of expenses to average net assets .49%(a) .49%(a) .49%(a) .48%(a) .39%(a)
Ratios of net investment income to
average net assets 4.73% 5.20% 5.10% 5.18% 5.43%
</TABLE>
(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 .62%,
.62%, .64%, .65%, and .59% for the years ended August 31, 1999, 1998,
1997, 1996 and 1995 respectively.
(b) Financial highlights relate solely to the Sansom Street Class of shares
within the portfolio.
30
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
AUGUST 31, 1999
NOTE 6. OTHER FINANCIAL HIGHLIGHTS (CONTINUED)
THE SELECT FAMILY (B)
MONEY MARKET PORTFOLIO
----------------------
FOR THE PERIOD
DECEMBER 15, 1998
TO AUGUST 31, 1999 (C)
---------------------
Net asset value, beginning of period ................ $ 1.00
--------
Income from investment operations:
Net investment income ............................ 0.0345
--------
Total from investment operations ............... 0.0345
--------
Less distributions
Dividends (from net investment income) ........... (0.0345)
--------
Total distributions ............................ (0.0345)
--------
Net asset value, end of period ...................... $ 1.00
========
Total Return ........................................ 3.50%(e)
Ratios/Supplemental Data
Net assets, end of period ........................ $230,044
Ratios of expenses to average net assets ......... .27%(a)(d)
Ratios of net investment income to
average net assets ............................. 4.82%(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 .41%
for the period ended August 31, 1999.
(b) Financial highlights relate solely 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.
(e) Non-Annualized.
31
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONCLUDED)
AUGUST 31, 1999
NOTE 6. OTHER FINANCIAL HIGHLIGHTS (CONTINUED)
THE PRINCIPAL FAMILY (B)
MONEY MARKET PORTFOLIO
----------------------
FOR THE PERIOD
JUNE 1, 1999 TO
AUGUST 31, 1999 (C)
-------------------
Net asset value, beginning of period $ 1.00
- - ----------
Income from investment operations:
Net investment income 0.0110
--------
Total from investment operations 0.0110
--------
Less distributions
Dividends (from net investment income) (0.0110)
--------
Total distributions (0.0110)
--------
Net asset value, end of period $ 1.00
========
Total Return 1.10%(e)
Ratios/Supplemental Data
Net assets, end of period $218,530
Ratios of expenses to average net assets .77%(a)(d)
Ratios of net investment income to
average net assets 4.36%(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 .85%
for the period ended August 31, 1999.
(b) Financial highlights relate solely to the Principal Family of shares
within the portfolio.
(c) On June 1, 1999 the Money Market Portfolio's Principal Class began
operations.
(d) Annualized.
(e) Non-Annualized.
32
<PAGE>
TAX INFORMATION FOR SHAREHOLDERS
(UNAUDITED)
In the twelve months ended August 31, 1999 (the end of the Fund's fiscal year),
100% of the dividends paid by the Municipal Money Market Portfolio were
exempt-interest dividends for purposes of federal income taxes and free from
such taxes. However, approximately 55% of such dividends was attributable to
interest on private activity bonds which must be included in federal alternative
minimum taxable income for the purpose of determining liability for federal
alternative minimum tax.
In January 2000, you will be furnished with a schedule showing the yearly
percentage breakdown by state or U.S. possession of the source of interest
earned by the Municipal Money Market Portfolio in 1999. It is suggested that you
consult your tax adviser concerning the applicability of state and local taxes
to dividends paid by the Fund during the year.
33
<PAGE>
[THIS PAGE INTENTIONALLY LEFT BLANK.]
<PAGE>
Morgan Keegan & Company, Inc./Morgan Keegan Tower
Fifty Front Street/Memphis, Tennessee 38103
<PAGE>
