================================================================================
THE SANSOM
STREET
FAMILY
MONEY MARKET PORTFOLIO
Semi-Annual Report
February 29, 2000
================================================================================
<PAGE>
THE SANSOM STREET FAMILY
THE RBB FUND, INC.
SEMI-ANNUAL INVESTMENT ADVISER'S REPORT
Money market activity was dominated by three key issues in the six-month
period ended February 2000; the economy, Federal Reserve policy and Y2K issues.
The U.S. economy, fueled by extraordinary consumer demand, broke a record for
peacetime expansion, as gross domestic product (GDP) surged 5.8% in the fourth
quarter and recorded an annual growth rate in excess of 4% for the third year in
a row. In the eyes of the Federal Reserve, however, the exuberance of the
economy was a clear sign of trouble ahead. With GDP running well above their
non-inflationary threshold, higher wages and prices were the expected
consequence. The Fed's response was to tighten monetary policy three times
during the last six months, raising the federal funds rate by 75 basis points to
6.00% by mid-March. Further increases are expected at the Fed's May and June
meetings. The final factor was the concern surrounding Y2K, the perceived date
change threat to global computer networks. During the third and fourth quarters,
the money market portfolios focused on maintaining additional liquidity through
year-end to accommodate any unanticipated withdrawals as a result of Y2K. With
the transition to year 2000 now passed, we can report that neither the
portfolios nor any of our portfolio management systems experienced any problems.
Y2K was, in short, a non-event.
Short-term interest rates rose in the second half of 1999 and early 2000 as
the Fed tightened monetary policy to thwart inflationary pressures. The current
federal funds rate of 6.00% represents an increase of 1.25% since last June. The
increase in rates also led to a steeper yield curve, as the anticipation of
further Fed moves escalated. At the same time, an interesting anomaly occurred
in January 2000 maturities during the third and fourth quarters. The concern
over Y2K problems and the related build up in market wide liquidity in December
precipitated a dramatic yield pick up in January 2000 maturities. Spreads
widened to over 100 basis points as issuers tried to entice investors into the
year 2000. This yield disparity provided a significant opportunity for the money
market portfolios to add incremental yield, even as most assets were invested
shorter than December 31. In January and February, most of the investments were
targeted to the April-May period, as the three-month sector offered the best
returns. Average weighted maturities ranged between 35-45 days.
BlackRock Institutional Management Corporation
(Please dial toll-free 800-430-9618 for questions regarding
your account or contact your broker.)
<PAGE>
THE SANSOM STREET FAMILY
THE RBB FUND, INC.
MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS
FEBRUARY 29, 2000
(UNAUDITED)
PAR
(000) VALUE
---------- --------------
CERTIFICATES OF DEPOSIT--6.5%
DOMESTIC CERTIFICATES OF DEPOSIT--2.4%
First National Bank of Chicago
6.060% 08/14/00 ............................ $15,000 $ 14,996,617
Key Bank N.A.
5.705% 07/12/00 ............................ 10,000 9,999,476
Wilmington Trust Co.
6.050% 04/14/00 ............................ 25,000 25,000,000
6.000% 05/18/00 ............................ 12,100 12,100,000
--------------
62,096,093
--------------
YANKEE DOLLAR CERTIFICATES OF DEPOSIT--4.1%
Canadian Imperial Bank of Commerce
5.180% 03/15/00 ............................ 29,700 29,699,985
5.180% 03/16/00 ............................ 25,000 24,999,703
National Westminster Bank
5.280% 04/03/00 ............................ 25,000 24,999,516
Svenska Handelsbanken, Inc.
5.178% 03/16/00 ............................ 25,000 24,999,530
--------------
104,698,734
--------------
TOTAL CERTIFICATES OF DEPOSIT
(Cost $166,794,827) .................... 166,794,827
--------------
COMMERCIAL PAPER--58.5%
AIRCRAFT PARTS & AUXILIARY EQUIPMENT, NEC--0.4%
Textron Financial, 3-A-3
5.920% 05/02/00 ............................ 10,000 9,898,044
--------------
ASSET BACKED SECURITIES--10.4%
Emerald Certificates Program
(MBNA 99-K), 4-2
5.840% 03/16/00 ............................ 11,000 10,973,233
5.920% 04/07/00 ............................ 34,000 33,793,129
Enterprise Funding Corp., 4-2
5.900% 03/16/00 ............................ 5,547 5,533,364
Fairway Finance Ltd., 4-2
5.900% 04/17/00 ............................ 10,000 9,922,972
Grand Funding Corp., 4-2
5.780% 03/01/00 ............................ 9,500 9,500,000
5.780% 03/06/00 ............................ 25,000 24,979,931
5.870% 04/24/00 ............................ 28,700 28,447,296
Moriarty LLC, 4-2
5.870% 04/06/00 ............................ 50,000 49,706,500
5.870% 04/10/00 ............................ 40,000 39,739,111
5.900% 04/25/00 ............................ 35,000 34,684,514
PAR
(000) VALUE
---------- --------------
ASSET BACKED SECURITIES--(CONTINUED)
Special Purpose Accounts
Receivable Cooperative Corp., 4-2
5.970% 05/15/00 ............................ $17,000 $ 16,788,562
--------------
264,068,612
--------------
BANKS--5.6%
AB Spintab, 3-A-3
5.870% 04/20/00 ............................ 17,500 17,357,326
ING Bank (Internationale Nederlanden
Bank NV), 3-A-3
5.880% 03/06/00 ............................ 25,000 24,979,583
Swedbank, 3-A-3
5.850% 04/11/00 ............................ 100,000 99,333,750
--------------
141,670,659
--------------
COMMUNICATION EQUIPMENT NEC--1.0%
Alcatel Alsthom Inc., 3-A-3
5.430% 03/13/00 ............................ 25,000 24,954,750
--------------
HOSPITAL & MEDICAL SERVICE PLANS--0.5%
United Healthcare Corp., 4-2
5.900% 04/03/00 ............................ 13,000 12,929,692
--------------
LIFE INSURANCE--5.5%
Aetna Services Inc., 3-A-3
5.850% 03/24/00 ............................ 11,000 10,958,887
5.870% 03/27/00 ............................ 20,000 19,915,211
5.900% 04/03/00 ............................ 40,000 39,783,667
5.900% 04/11/00 ............................ 24,700 24,534,030
Aon Corp., 3-A-3
5.830% 03/06/00 ............................ 9,496 9,488,311
5.840% 03/14/00 ............................ 35,000 34,926,189
--------------
139,606,295
--------------
MISC INDUSTRIAL & COMMERCIAL MACHINERY--1.2%
Invensys, 4-2
5.920% 05/04/00 ............................ 30,000 29,684,267
--------------
MOTOR VEHICLE PARTS & ACCESSORIES--1.1%
Eaton Corp., 4-2
5.950% 05/09/00 ............................ 29,000 28,669,279
--------------
See Accompanying Notes to Financial Statements.
2
<PAGE>
THE SANSOM STREET FAMILY
THE RBB FUND, INC.
MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS (CONTINUED)
FEBRUARY 29, 2000
(UNAUDITED)
PAR
(000) VALUE
---------- --------------
NATURAL GAS TRANS. & DISTR.--1.4%
Consolidated Natural Gas Co., 3-A-3
5.850% 03/20/00 ........................... $18,296 $ 18,239,511
Duke Capital Corp., 4-2
5.870% 04/13/00 ........................... 17,000 16,880,806
--------------
35,120,317
--------------
PETROLEUM REFINING--4.4%
Repsol International Finance BV, 3-A-3
5.870% 03/14/00 ........................... 13,000 12,972,444
5.920% 04/17/00 ........................... 17,500 17,364,744
5.940% 04/18/00 ........................... 13,500 13,393,080
6.000% 05/09/00 ........................... 9,000 8,896,500
6.000% 05/11/00 ........................... 25,000 24,704,167
6.000% 05/16/00 ........................... 10,000 9,873,333
6.000% 05/17/00 ........................... 25,000 24,679,167
--------------
111,883,435
--------------
SECURITY BROKERS & DEALERS--3.1%
Morgan Stanley Dean Witter, 3-A-3
5.850% 04/12/00 ........................... 80,000 79,454,000
--------------
SHORT-TERM BUSINESS CREDIT INSTITUTIONS--17.0%
Associates First Capital BV, 3-A-3
5.900% 05/03/00 ........................... 39,500 39,092,162
5.910% 05/08/00 ........................... 15,000 14,832,550
5.930% 05/25/00 ........................... 25,000 24,649,965
5.940% 06/01/00 ........................... 25,000 24,620,500
Finova Capital Corp., 3-A-3
5.800% 03/01/00 ........................... 19,400 19,400,000
5.800% 03/03/00 ........................... 14,800 14,795,231
5.900% 04/03/00 ........................... 20,000 19,891,833
6.000% 05/30/00 ........................... 30,000 29,550,000
General Electric Capital Corp., 3-A-3
5.890% 04/21/00 ........................... 20,000 19,833,117
Heller Financial, Inc., 3-A-3
5.800% 03/21/00 ........................... 20,000 19,935,556
5.900% 04/13/00 ........................... 35,000 34,753,347
5.920% 04/19/00 ........................... 35,000 34,717,978
5.920% 04/20/00 ........................... 30,000 29,753,333
Sears Roebuck Acceptance Corp., 3-A-3
5.900% 04/13/00 ........................... 15,000 14,894,292
5.900% 04/17/00 ........................... 45,000 44,653,375
6.000% 05/11/00 ........................... 50,000 49,408,333
--------------
434,781,572
--------------
PAR
(000) VALUE
---------- -------------
TELEPHONE COMMUNICATIONS--7.0%
British Telecommunication, 3-A-3
5.890% 05/04/00 ........................... $50,000 $ 49,476,444
MCI Worldcom 4-2
5.920% 04/17/00 ........................... 25,000 24,806,778
5.920% 04/18/00 ........................... 50,000 49,605,333
5.920% 04/19/00 ........................... 43,000 42,653,516
5.920% 04/20/00 ........................... 12,000 11,901,333
--------------
178,443,404
--------------
TOTAL COMMERCIAL PAPER
(Cost $1,491,164,326) ................. 1,491,164,326
--------------
MUNICIPAL BONDS--2.8%
FLORIDA--0.1%
Coral Springs, VRDN IDR (Alliance
Corp.) (Suntrust Bank, Central FL)
Series 1995+
5.900% 03/01/00 ........................... 2,300 2,300,000
--------------
GEORGIA--0.4%
De Kalb County , Development
Authority VRDN Series 1995 B
(Emory University Project)+
5.800% 03/07/00 ........................... 9,280 9,280,000
--------------
ILLINOIS--0.2%
Illinois Health Facilities Authority
VRDN (The Streeterville Corp.
Project) Series 1993-B (First
National Bank of Chicago)+
5.950% 03/01/00 ........................... 4,400 4,400,000
--------------
INDIANA--0.1%
Bremen, IDR Bond VRDN
Series 1996 B (Society National
Bank, Cleveland)+
6.140% 03/02/00 ........................... 2,075 2,075,000
--------------
KENTUCKY--0.2%
Boone County, Taxable IDR Refunding
Bonds VRDN (Square D Company
Project) Series 1994-B (Societe
Generale)+
5.950% 03/01/00 ........................... 4,200 4,200,000
--------------
See Accompanying Notes to Financial Statements.
3
<PAGE>
THE SANSOM STREET FAMILY
THE RBB FUND, INC.
MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS (CONTINUED)
FEBRUARY 29, 2000
(UNAUDITED)
PAR
(000) VALUE
---------- -------------
MISSISSIPPI--1.0%
Mississippi Business Finance Corp.
IDR Bond VRDN Dana Lighting Inc.
(Suntrust Bank, Central FL)
Series 1995+
5.900% 03/07/00 ............................ $ 5,600 $ 5,600,000
Mississippi Business Finance Corp.
IDR Bond VRDN (Bryan Foods, Inc.
Project) (Sara Lee Corp.)
Series 1994+
5.950% 03/01/00 ............................ 14,000 14,000,000
Mississippi Business Finance Corp.
IDR Bond VRDN (Choctaw Foods
Inc.Project) Series 1995 (Rabobank
Nederland)+
5.900% 03/07/00 ............................ 5,100 5,100,000
--------------
24,700,000
--------------
NORTH CAROLINA--0.3%
City of Asheville VRDN (Wachovia
Bank)+
5.850% 03/01/00 ............................ 8,900 8,900,000
--------------
TEXAS--0.6%
South Central Texas Industrial
Development Corp. Taxable IDR
Revenue Bond VRDN (Rohr
Industries Project) Series 1990
(NBD Bank)+
5.950% 03/01/00 ............................ 14,800 14,800,000
--------------
TOTAL MUNICIPAL BONDS
(Cost $70,655,000) ..................... 70,655,000
--------------
VARIABLE RATE OBLIGATIONS--25.4%
AIRCRAFT PARTS & AUXILIARY EQUIPMENT, NEC--1.2%
Textron Financial Corp.+
6.098% 05/02/00 ............................ 30,000 30,000,000
--------------
BANKS--17.7%
AB Spintab Corp.+
6.040% 04/25/00 ............................ 25,000 24,987,975
Bayerische Hypo-Und Vereinsbank+
5.799% 03/14/00 ............................ 74,500 74,494,626
5.795% 03/15/00 ............................ 50,000 49,991,848
PAR
(000) VALUE
---------- --------------
BANKS--(CONTINUED)
Bayerische Landesbank Girozentrale+
5.798% 03/28/00 ............................ $25,000 $ 24,987,829
Key Bank N.A.+
6.031% 03/14/00 ............................ 35,000 34,994,069
6.190% 05/25/00 ............................ 50,000 50,000,000
SMM Trust 1999-A+
6.150% 04/13/00 ............................ 10,000 10,000,000
SMM Trust 1999-B+
6.181% 03/15/00 ............................ 80,000 80,000,000
SMM Trust 1999-E+
6.021% 04/05/00 ............................ 37,500 37,500,000
Westdeutsche Landesbank
Girozentrale+
5.799% 03/27/00 ............................ 15,000 14,992,719
Westpac Banking Corp.+
5.959% 03/06/00 ............................ 50,000 49,983,651
--------------
451,932,717
--------------
PERSONAL CREDIT INSTITUTIONS--6.5%
American Honda Finance Corp.+
6.020% 04/18/00 ............................ 24,800 24,797,858
6.080% 05/04/00 ............................ 10,000 9,997,835
6.068% 05/08/00 ............................ 30,000 29,992,223
6.060% 05/24/00 ............................ 44,600 44,598,013
General Motors Acceptance Corp.+
5.995% 04/20/00 ............................ 24,500 24,494,380
Main Place Real Estate Investment+
6.210% 04/25/00 ............................ 32,000 32,014,311
--------------
165,894,620
--------------
TOTAL VARIABLE RATE OBLIGATIONS
(Cost $647,827,337) .................... 647,827,337
--------------
See Accompanying Notes to Financial Statements.
4
<PAGE>
THE SANSOM STREET FAMILY
THE RBB FUND, INC.
MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS (CONTINUED)
FEBRUARY 29, 2000
(UNAUDITED)
PAR
(000) VALUE
---------- -------------
MEDIUM TERM NOTES--2.9%
PERSONAL CREDIT INSTITUTIONS--0.0%
General Motors Acceptance Corp.
6.650% 05/24/00 ............................ $ 200 $ 200,195
--------------
SECURITY BROKERS & DEALERS--2.9%
Goldman Sachs Group, Inc.
5.990% 04/17/00 ............................ 25,000 25,000,000
6.090% 05/08/00 ............................ 25,000 25,000,000
6.100% 05/10/00 ............................ 25,000 25,000,000
--------------
75,000,000
--------------
TOTAL MEDIUM TERM NOTES
(Cost $75,200,195) ..................... 75,200,195
--------------
TIME DEPOSITS--3.5%
Norwest Bank Minnesota NA
5.875% 03/01/00 ............................ 89,600 89,600,000
--------------
TOTAL TIME DEPOSITS ......................
(Cost $89,600,000) 89,600,000
--------------
TOTAL INVESTMENTS AT VALUE--99.6%
(Cost $2,541,241,685*) ..................... 2,541,241,685
--------------
OTHER ASSETS IN EXCESS
OF LIABILITIES--0.4% ....................... 9,249,508
--------------
NET ASSETS (Applicable to 442,170,092
Bedford shares, 237,516 Cash Preservation
shares, 1,231,157,266 Janney Montgomery
Scott shares, 245,338,916 Sansom Street
shares, 402,058,124 Select shares,
229,585,110 Principal shares,
and 800 other shares)--100% ................ $2,550,491,193
==============
NET ASSET VALUE, Offering and
redemption price per share
($2,550,491,193 / 2,550,547,824) ........... $1.00
=====
* Also cost for Federal income tax purposes.
+ Variable Rate Obigations -- The interest rate shown is the rate as of
February 29, 2000 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
BV ...................................................... Besloten Vennootschap
IDR ............................................ Industrial Development Revenue
NA ....................................................... National Association
NEC .................................................. Not Elsewhere Classified
TARN ............................................. Taxable Adjustable Rate Note
VRDN ................................................ Variable Rate Demand Note
NV ....................................................... Naambze Vennootschap
See Accompanying Notes to Financial Statements.
5
<PAGE>
THE SANSOM STREET FAMILY
THE RBB FUND, INC.
MONEY MARKET PORTFOLIO
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED FEBRUARY 29, 2000 (UNAUDITED)
Investment Income
Interest .............................................. $83,785,587
-----------
Expenses
Distribution fees ..................................... 5,228,683
Investment Advisory fees .............................. 5,310,677
Administration fees ................................... --
Transfer Agent fees ................................... 225,049
Service organization fees ............................. 284,235
Printing fees ......................................... 273,934
Custodian fees ........................................ 214,102
Legal fees ............................................ 73,444
Registration fees ..................................... 45,000
Audit fees ............................................ 80,076
Director's fees ....................................... 65,456
Insurance expense ..................................... 10,988
Miscellaneous ......................................... --
-----------
11,811,644
Less fees waived ...................................... (707,606)
Less expense reimbursement by advisor ................. (157,665)
-----------
Total expenses ................................... 10,946,373
-----------
Net Investment Income .................................... 72,839,214
-----------
Net realized gain/(loss) on investments .................. (602)
-----------
Net increase in net assets resulting from operations ..... $72,838,612
===========
See Accompanying Notes to Financial Statements.
6
<PAGE>
THE SANSOM STREET FAMILY
THE RBB FUND, INC.
MONEY MARKET PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS
FOR THE FOR THE
SIX MONTHS ENDED YEAR ENDED
FEBRUARY 29, 2000 AUGUST 31, 1999
----------------- ---------------
(UNAUDITED)
Increase (decrease) in assets:
Operations:
Net investment income ................... $ 72,839,214 $ 115,658,458
Net gain (loss) on
investments ........................... (602) 72,320
-------------- --------------
Net increase in net assets
resulting from operations ............. 72,838,612 115,730,778
-------------- --------------
Distributions to shareholders:
Dividends to shareholders from
Net Investment Income:
Bedford shares ........................ (9,490,228) (28,089,918)
Cash Preservation shares .............. (3,610) (7,069)
Janney Montgomery Scott
shares .............................. (26,738,928) (43,156,041)
Principal shares ...................... (5,268,052) (2,455,484)
Sansom Street shares .................. (22,195,668) (36,008,586)
Select shares ......................... (9,142,728) (5,941,360)
-------------- --------------
(72,839,214) (115,658,458)
Dividends to shareholders from
Net Realized Short-Term Gains
in excess of Net Investment
Income:
Bedford shares ........................ -- (2,671)
Cash Preservation shares .............. -- (1)
Janney Montgomery Scott
shares .............................. -- (2,921)
Sansom Street shares .................. -- (2,010)
Select shares ......................... -- (102)
-------------- --------------
-- (7,705)
Total Dividends to
shareholders ...................... (72,839,214) (115,666,163)
-------------- --------------
Net capital share
transactions (Note 3) ................... (188,628,536) 423,497,416
-------------- --------------
Total increase/(decrease) in
net assets .............................. (188,629,138) 423,562,031
Net Assets:
Beginning of period ..................... 2,739,120,331 2,315,558,300
-------------- --------------
End of period ........................... $2,550,491,193 $2,739,120,331
============== ==============
See Accompanying Notes to Financial Statements.
7
<PAGE>
THE SANSOM STREET FAMILY
THE RBB FUND, INC.
FINANCIAL HIGHLIGHTS (c)
(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 29, 2000 AUGUST 31, 1999 AUGUST 31, 1998 AUGUST 31, 1997 AUGUST 31, 1996
----------------- --------------- --------------- --------------- ---------------
(UNAUDITED)
<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 ................... 0.0259 0.0473 0.0520 0.0510 0.0518
-------- -------- -------- -------- --------
Total from investment operations ...... 0.0259 0.0473 0.0520 0.0510 0.0518
-------- -------- -------- -------- --------
Less distributions
Dividends (from net investment income) .. (0.0259) (0.0473) (0.0520) (0.0510) (0.0518)
-------- -------- -------- -------- --------
Total distributions ................... (0.0259) (0.0473) (0.0520) (0.0510) (0.0518)
-------- -------- -------- -------- --------
Net asset value, end of year or period ..... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ========
Total Return ............................... 2.59%(d) 4.83% 5.34% 5.22% 5.30%
Ratios/Supplemental Data
Net assets, end of period ............. $245,332 $841,881 $684,066 $570,018 $524,359
Ratios of expenses to average net assets .49%(a)(b) .49%(a) .49%(a) .49%(a) .48%(a)
Ratios of net investment income to
average net assets .................... 5.22%(b) 4.73% 5.20% 5.10% 5.18%
<FN>
(a) Without the waiver of advisory fees and reimbursement of certain operating
expenses, the ratios of expenses to average net assets for the Money Market
Portfolio would have been .55% for the six months ended February 29, 2000,
.62%, .62%, .64% and .65% for the years ended August 31, 1999, 1998, 1997
and 1996, respectively.
(b) Annualized.
(c) Financial highlights relate solely to the Sansom Street Class of shares
within the portfolio.
(d) Non-Annualized.
</FN>
</TABLE>
See Accompanying Notes to Financial Statements.
8
<PAGE>
THE SANSOM STREET FAMILY
THE RBB FUND, INC.
NOTES TO FINANCIAL STATEMENTS
FEBRUARY 29, 2000
(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 20.03 billion shares are currently classified into ninety-nine classes.
Each class represents an interest in one of seventeen investment portfolios of
the Fund. The classes have been grouped into fifteen separate "families", ten of
which have begun investment operations: the Sansom Street Family, the Principal
Family, the Janney Montgomery Scott Family, the Bedford Family, the Cash
Preservation Family, the Select Family, the n/i Family, the Boston Partners
Family, the Bogle Family and the Schneider Family. The Sansom Street Family
represents interests in one portfolio, which is 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 principles.
D) FEDERAL INCOME TAXES -- No provision is made for Federal taxes.
It is the Fund's intention to have each portfolio continue to qualify for
and elect the tax treatment applicable to regulated investment companies
under the Internal Revenue Code and make the requisite distributions to its
shareholders which will be sufficient to relieve it from Federal income and
excise taxes.
E) REPURCHASE AGREEMENTS -- Money market instruments may be
purchased subject to the seller's agreement to repurchase them at an agreed
upon date and price. The seller will be required on a daily basis to
maintain the value of the securities subject to the agreement at not less
than the repurchase price 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.
9
<PAGE>
THE SANSOM STREET FAMILY
THE RBB FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FEBRUARY 29, 2000
(UNAUDITED)
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 Corp. ("BIMC"), an indirect majority-owned subsidiary of The PNC
Financial Services Group, Inc., serves as investment advisor for the portfolio
described herein, and also serves as administrator for the Money Market
Portfolio. For the Money Market Portfolio, BIMC and PFPC, Inc. ("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 portfolio.
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 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.
BIMC may, at its discretion, voluntarily waive all or any portion of its
advisory fee for this portfolio. For each class of shares within the portfolio,
the net advisory fee charged to each class is the same on a relative basis. For
the six months ended February 29, 2000, advisory fees and waivers for the
investment portfolio were as follows:
GROSS NET
ADVISORY ADVISORY
FEE WAIVER FEE
----------- ---------- -------------
Money Market Portfolio $5,310,677 $(707,606) $4,603,071
The investment advisor has agreed to reimburse the portfolio for the
amount, if any, by which the net operating expenses exceed the expense cap. For
the six months ended February 29, 2000 the reimbursed expenses were $157,665 for
the Money Market Portfolio.
10
<PAGE>
THE SANSOM STREET FAMILY
THE RBB FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FEBRUARY 29, 2000
(UNAUDITED)
NOTE 2. TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES (CONTINUED)
In addition, PFPC Trust Co. serves as custodian for the portfolio. PFPC
serves as each class's transfer and dividend disbursing agent. Both PFPC Trust
Co. and PFPC are wholly-owned subsidiaries of PFPC Worldwide Inc., an indirect
majority owned subsidiary of The PNC Financial Services Group, Inc.
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
29, 2000, transfer agency fees and waivers for each class of shares within the
investment portfolio were as follows:
<TABLE>
<CAPTION>
GROSS NET
TRANSFER AGENCY TRANSFER AGENCY
FEE WAIVER FEE
---------------- ---------- --------------------
<S> <C> <C> <C>
Money Market Portfolio
Bedford Class $ -- $ -- $ --
Cash Preservation Class -- -- --
Janney Montgomery Scott Class 213,047 -- 213,047
Principal Class 3,900 -- 3,900
Sansom Street Class 6,702 -- 6,702
Select Class 1,400 -- 1,400
-------- ----- --------
Total Money Market Portfolio $225,049 $ -- $225,049
======== ===== ========
</TABLE>
The Fund, on behalf of each class of shares within the investment
portfolio, 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 six months ended February 29, 2000, distribution fees for each
class were as follows:
DISTRIBUTION
FEE
-------------
Money Market Portfolio
Bedford Class $1,195,289
Cash Preservation Class 301
Janney Montgomery Scott Class 3,394,889
Principal Class 425,466
Sansom Street Class 212,738
----------
Total Money Market Portfolio $5,228,683
==========
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 29, 2000, service
organization fees were $284,235 for the Money Market Portfolio.
11
<PAGE>
THE SANSOM STREET FAMILY
THE RBB FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FEBRUARY 29, 2000
(UNAUDITED)
NOTE 3. CAPITAL SHARES
Transactions in capital shares (at $1 per capital share) for each year were
as follows:
MONEY MARKET PORTFOLIO
----------------------------------
FOR THE FOR THE
SIX MONTHS ENDED YEAR ENDED
FEBRUARY 29, 2000 AUGUST 31, 1999
----------------- ---------------
(UNAUDITED)
VALUE VALUE
----------------- ----------------
Shares sold:
Bedford Class $ 434,830,491 $ 1,676,808,408
Cash Preservation Class 168,234 114,454
Janney Montgomery
Scott Class 2,959,249,169 4,931,373,936
Principal Class 300,341,761 318,334,115
Sansom Street Class 1,562,831,873 2,907,994,377
Select Class 1,740,715,743 1,439,090,920
--------------- ----------------
Total Shares Purchased 6,998,137,271 11,273,716,210
Shares issued in
reinvestment of dividends:
Bedford Class 9,382,916 28,217,868
Cash Preservation Class 3,501 7,224
Janney Montgomery
Scott Class 26,565,909 43,272,113
Principal Class 5,254,007 2,206,341
Sansom Street Class 13,465,885 26,800,967
Select Class -- 347,980
--------------- ----------------
Total Shares Reinvested 54,672,218 100,852,493
Shares repurchased:
Bedford Class (362,189,722) (2,107,674,545)
Cash Preservation Class (65,144) (217,053)
Janney Montgomery
Scott Class (2,843,076,015) (4,790,786,046)
Principal Class (294,544,481) (102,006,633)
Sansom Street Class (2,172,852,992) (2,741,000,161)
Select Class (1,568,709,671) (1,209,386,849)
--------------- ----------------
Total Shares Repurchased (7,241,438,025) (10,951,071,287)
--------------- ----------------
Net increase (decrease) $ (188,628,536) $ 423,497,416
=============== ================
Sansom Street Shares authorized 1,500,000,000 1,500,000,000
=============== ================
12
<PAGE>
THE SANSOM STREET FAMILY
THE RBB FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FEBRUARY 29, 2000
(UNAUDITED)
NOTE 4. NET ASSETS
At February 29, 2000, net assets consisted of the following:
MONEY MARKET
PORTFOLIO
--------------
Capital paid-in $2,550,547,824
Accumulated net realized gain (loss) on investments (56,631)
--------------
$2,550,491,193
==============
13
<PAGE>
THE SANSOM STREET FAMILY
THE RBB FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FEBRUARY 29, 2000
(UNAUDITED)
NOTE 5. OTHER FINANCIAL HIGHLIGHTS
The Fund currently offers five other classes of shares representing
interests in the Money Market Portfolio: Bedford, Cash Preservation, Principal,
Janney Montgomery Scott, and Select. Each class is marketed to different types
of investors. Financial Highlights of Cash Preservation Class is not presented
in this report due to its immateriality. Such information is available in the
annual report of the Cash Preservation Family. The financial highlights of
certain of the other classes are as follows:
THE BEDFORD FAMILY (c)
<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 29, 2000 AUGUST 31, 1999 AUGUST 31, 1998 AUGUST 31, 1997 AUGUST 31, 1996
----------------- --------------- --------------- --------------- ---------------
(UNAUDITED)
<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 ....... 0.0237 0.0425 0.0473 0.0462 0.0469
-------- -------- -------- ---------- ----------
Total from investment
operations ............... 0.0237 0.0425 0.0473 0.0462 0.0469
-------- -------- -------- ---------- ----------
Less distributions
Dividends (from net
investment income) ......... (0.0237) (0.0425) (0.0473) (0.0462) (0.0469)
-------- -------- -------- ---------- ----------
Total distributions ........ (0.0237) (0.0425) (0.0473) (0.0462) (0.0469)
-------- -------- -------- ---------- ----------
Net asset value, end of year
or period ................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ========== ==========
Total Return ................ 2.37%(d) 4.34% 4.84% 4.72% 4.79%
Ratios/Supplemental Data
Net assets, end of
period (000) ............... $442,146 $360,123 $762,739 $1,392,911 $1,109,334
Ratios of expenses to average
net assets ................. .97%(a)(b) .97%(a) .97%(a) .97%(a) .97%(a)
Ratios of net investment
income to average
net assets ................. 4.76%(b) 4.25% 4.73% 4.62% 4.69%
<FN>
(a) Without the waiver of advisory and administration fees and without the
reimbursement of certain operating expenses, the ratios of expenses to
average net assets for the Money Market Portfolio would have been 1.02% for
the six months ended February 29, 2000, 1.08%, 1.10%, 1.12% and 1.14% for
the years ended August 31, 1999, 1998, 1997 and 1996, respectively.
(b) Annualized.
(c) Financial Highlights relate solely to the Bedford Class of shares within
the portfolio.
(d) Non-Annualized.
</FN>
</TABLE>
14
<PAGE>
THE SANSOM STREET FAMILY
THE RBB FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FEBRUARY 29, 2000
(UNAUDITED)
NOTE 5. OTHER FINANCIAL HIGHLIGHTS (CONTINUED)
THE JANNEY MONTGOMERY SCOTT MONEY FUNDS (c)
<TABLE>
<CAPTION>
MONEY MARKET PORTFOLIO
----------------------------------------------------------------
FOR THE FOR THE FOR THE FOR THE FOR THE
SIX MONTHS YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED
FEBRUARY 29, AUGUST 31, AUGUST 31, AUGUST 31, AUGUST 31,
2000 1999 1998 1997 1996
------------- ---------- ---------- ---------- ----------
(UNAUDITED)
<S> <C> <C> <C> <C> <C>
Net asset value, beginning
of year or period ........$ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
----------- ---------- -------- -------- --------
Income from investment
operations:
Net investment income .... 0.0235 0.0422 0.0469 0.0459 0.0465
----------- ---------- -------- -------- --------
Total from investment
operations ......... 0.0235 0.0422 0.0469 0.0459 0.0465
----------- ---------- -------- -------- --------
Less distributions
Dividends (from net
investment income) ..... (0.0235) (0.0422) (0.0469) (0.0459) (0.0465)
----------- ---------- -------- -------- --------
Total distributions .. (0.0235) (0.0422) (0.0469) (0.0459) (0.0465)
----------- ---------- -------- -------- --------
Net asset value, end of
year or period ...........$ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
=========== ========== ======== ======== ========
Total Return ............... 2.35%(d) 4.30% 4.81% 4.69% 4.76%
Ratios /Supplemental Data
Net assets, end of year or
period (000) .......... $ 1,231,144 $1,088,405 $904,526 $736,855 $561,865
Ratios of expenses to
average net assets ..... 1.00%(a)(b) 1.00%(a) 1.00%(a) 1.00%(a) 1.00%(a)
Ratios of net investment
income to average
net assets ............. 4.73%(b) 4.22% 4.69% 4.59% 4.65%
<FN>
(a) Without the waiver of advisory fees and the reimbursement of certain
operating expenses, the ratios of expenses to average net assets for the Money
Market Portfolio would have been 1.05% for the six months ended February 29,
2000, 1.19%, 1.21%, 1.22% and 1.23% for the years ended August 31, 1999, 1998,
1997 and 1996, respectively.
(b) Annualized.
(c) Financial Highlights relate solely to the Janney Montgomery Scott Class of
shares within the portfolio.
(d) Non-Annualized.
</FN>
</TABLE>
15
<PAGE>
THE SANSOM STREET FAMILY
THE RBB FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FEBRUARY 29, 2000
(UNAUDITED)
NOTE 5. OTHER FINANCIAL HIGHLIGHTS (CONTINUED)
THE SELECT FAMILY (b)
<TABLE>
<CAPTION>
MONEY MARKET PORTFOLIO
----------------------------------------
FOR THE FOR THE PERIOD
SIX MONTHS ENDED DECEMBER 15, 1998
FEBRUARY 29, 2000 TO AUGUST 31, 1999 (c)
----------------- ---------------------
(UNAUDITED)
<S> <C> <C>
Net asset value, beginning of period ...... $ 1.00 $ 1.00
------- -------
Income from investment operations:
Net investment income .................. 0.0272 0.0345
------- -------
Total from investment operations ..... 0.0272 0.0345
------- -------
Less distributions
Dividends (from net investment income).. (0.0272) (0.0345)
------- -------
Total distributions .................. (0.0272) (0.0345)
------- -------
Net asset value, end of period ............ $ 1.00 $ 1.00
======= =======
Total Return .............................. 2.72%(e) 3.50%(e)
Ratios/Supplemental Data
Net assets, end of period .............. $402,050 $230,044
Ratios of expenses to
average net assets .................. .27%(a)(d) .27%(a)(d)
Ratios of net investment income to
average net assets ................... 5.47%(d) 4.82%(d)
<FN>
(a) Without the waiver of advisory and reimbursement of certain operating
expenses, the ratios of expenses to average net assets for the Money Market
Portfolio would have been .40% for the six months ended February 29, 2000
and .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.
</FN>
</TABLE>
16
<PAGE>
THE SANSOM STREET FAMILY
THE RBB FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FEBRUARY 29, 2000
(UNAUDITED)
NOTE 5. OTHER FINANCIAL HIGHLIGHTS (CONTINUED)
THE PRINCIPAL FAMILY (b)
<TABLE>
<CAPTION>
MONEY MARKET PORTFOLIO
-----------------------------------------
FOR THE FOR THE PERIOD
SIX MONTHS ENDED JUNE 1, 1999
FEBRUARY 29, 2000 TO AUGUST 31, 1999 (c)
------------------ ---------------------
(UNAUDITED)
<S> <C> <C>
Net asset value, beginning of period ......... $ 1.00 $ 1.00
--------- ---------
Income from investment operations:
Net investment income ..................... 0.0246 0.0110
--------- ---------
Total from investment operations ........ 0.0246 0.0110
--------- ---------
Less distributions
Dividends (from net investment income) .... (0.0246) (0.0110)
--------- ---------
Total distributions ..................... (0.0246) (0.0110)
--------- ---------
Net asset value, end of period ............... $ 1.00 $ 1.00
========= =========
Total Return ................................. 2.46%(e) 1.10%(e)
Ratios/Supplemental Data
Net assets, end of period ................. $ 229,581 $218,530
Ratios of expenses to average net assets .. .77%(a)(d) .77%(a)(d)
Ratios of net investment income to
average net assets ...................... 4.95%(d) 4.36%(d)
<FN>
(a) Without the waiver of advisory fees and the reimbursement of certain
operating expenses, the ratios of expenses to average net assets for the
Money Market Portfolio would have been .81% for the six months ended
February 29, 2000 and .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.
</FN>
</TABLE>
17
<PAGE>
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