==================================
THE BEDFORD FAMILY
MONEY MARKET PORTFOLIO
- ----------------------------------
MUNICIPAL
MONEY MARKET PORTFOLIO
- ----------------------------------
GOVERNMENT OBLIGATIONS
MONEY MARKET PORTFOLIO
- ----------------------------------
SEMI-ANNUAL REPORT
FEBRUARY 29, 2000
==================================
<PAGE>
THE BEDFORD 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.
During the final few months of last year, yields on municipal money market
securities, in conjunction with several FOMC rate hikes, rose approximately 75
basis points to 3.80% on December 31, 1999. The rise in rates was slow and
steady during the period, with a final 30 basis point spike occurring in the
last week of December as dealers, fearful of carrying inventory over the Y2K
year-end, raised rates to attract crossover taxable buyers. As Y2K quickly
passed and early January bond coupon payments flooded the market, dealers took
the opportunity to adjust yields downward concomitant with an increase in demand
and a decrease in supply of municipal securities. This supply/demand pressure
continued into February and by the end of the month, yields offered by dealers
on variable rate demand notes had fallen 60 basis points from year-end 1999 to
an average of 3.20%. Supply pressures should begin to abate as the April 15 tax
payment date approaches and municipal money market funds experience what is
typically their largest redemptions of the year.
BlackRock Institutional Management Corporation
(Please dial toll-free 800-677-6310 for questions regarding
your account or contact your broker.)
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS
FEBRUARY 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 BEDFORD 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 BEDFORD 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 BEDFORD FAMILY
THE RBB FUND, INC.
MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS (CONCLUDED)
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 BEDFORD FAMILY
THE RBB FUND, INC.
MUNICIPAL MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS
FEBRUARY 29, 2000
(UNAUDITED)
PAR
(000) VALUE
---------- -------------
MUNICIPAL BONDS--99.2%
ALABAMA--0.1%
Montgomery Special Care Facilities
Financing Authority RB 1985
Series A DN (AMBAC Insurance)+
3.950% 03/07/00 ...................... $ 370 $ 370,000
------------
ARKANSAS--0.7%
Chandler IDA
RB Series 2000 DN
(Key Corp. Bank N.A. LOC)+
4.100% 03/07/00 ...................... 1,625 1,625,000
------------
CALIFORNIA--2.0%
California Higher Education Student
Loan RB Series D-2 MB (Dresdner
Bank LOC)++
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 1,002,886
------------
CONNECTICUT--1.1%
Connecticut Special Assessment
Unemployment Compensation
Advance Fund (Connecticut
Unemployment Project)
Series1993 C MB (FGIC Insurance)++
3.380% 07/01/00 ...................... 2,700 2,700,000
------------
FLORIDA--1.6%
Greater Orlando Airport Authority
TECP AMT (Morgan Guaranty
Trust LOC)
3.800% 05/17/00 ...................... 4,000 4,000,000
------------
GEORGIA--1.4%
McDuffie County, Development
Authority of, Waste Disposal RB
(Temple-Inland Forest Products
Corporation) TECP 1998
4.550% 03/13/00 ...................... 2,500 2,500,000
PAR
(000) VALUE
---------- -------------
GEORGIA--(CONTINUED)
Monroe County Development Authority
PCR RB (Oglethorpe Power-
Scherer-B) DN (Ambac Insurance)+
3.850% 03/07/00 ...................... $ 1,000 $ 1,000,000
------------
3,500,000
------------
HAWAII--1.0%
Hawaii State Department of Budget &
Finance (Palama Meat Co. Project)
DN (Bank of Hawaii LOC)+
4.250% 03/07/00 ...................... 2,500 2,500,000
------------
ILLINOIS--10.0%
Addison, Village Of, Dupage County,
Industrial Revenue Refunding Bonds
(General Binding Corp. Project)
1988 DN (ABN AMRO Bank LOC)+
4.320% 03/07/00 ...................... 1,600 1,600,000
Chicago Gas Supply RB (Peoples Gas
Light & Coke Co. Project)
1993B MB++
4.050% 12/01/00 ...................... 5,575 5,575,000
Chicago, City Of, IDA RB (Goose
Island Beer O. Project) DN (ABN
Amro Bank LOC)+
4.250% 03/07/00 ...................... 2,000 2,000,000
East Dundee, Kane and Cook Counties,
IDA RB (Otto Engine Project)/
(Lasalle National Bank LOC) DN+
3.950% 03/07/00 ...................... 950 950,000
Illinois Development Finance Authority
PCR RB (Illinois Power Company
Project) (ABN-AMRO Bank LOC) TECP
4.050% 08/17/00 ...................... 2,000 2,000,000
Illinois Educational Facilities Authority
RB (National Louis University)
Series 1999A DN (Banc One LOC)+
3.900% 03/07/00 ...................... 1,200 1,200,000
Illinois Health Facilities Authority
Revolving Fund Pooled Financing
Program (The University of Chicago
Project) MB++
3.750% 03/30/00 ...................... 4,000 4,000,000
See Accompanying Notes to Financial Statements.
6
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
MUNICIPAL MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS (CONTINUED)
FEBRUARY 29, 2000
(UNAUDITED)
PAR
(000) VALUE
---------- -------------
ILLINOIS--(CONTINUED)
Illinois Health Facility Authority RB MB
(Evanston Hospital Corp.) Series A++
3.550% 07/31/00 ..................... $ 6,000 $ 6,000,000
Plainfield, Village of, IDA RB
Series 1997 (Plainfield Moldings,
Inc. Project) DN (Algemene LOC)+
3.950% 03/07/00 ..................... 1,260 1,260,000
------------
24,585,000
------------
INDIANA--4.0%
Indiana Development Finance Authority
IDA RB (Enterprise Center II Project)
DN (LOC Society National Bank
Cleveland)+
3.950% 03/07/00 ..................... 2,000 2,000,000
Indiana Development Finance Authority
IDA RB (Enterprise Center IV Project)
DN (LOC Society National Bank
Cleveland)+
3.950% 03/07/00 ..................... 2,600 2,600,000
Indiana Development Finance Authority
Pollution Control Refunding RB
(Southern Indiana Gas and Electric
Co.) Series 1998A MB++
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)+
4.000% 03/07/00 ..................... 1,550 1,550,000
Portage Economic Development RB
(Breckenridge Apartments Project)
DN (Comerica Bank Detroit LOC)+
4.100% 03/07/00 ..................... 800 800,000
------------
9,850,000
------------
KANSAS--0.7%
Wyandotte County, Kansas City
Municipal GO Notes Series 9
4.300% 02/01/01 ..................... 1,663 1,663,000
------------
PAR
(000) VALUE
---------- -------------
KENTUCKY--2.0%
Henderson Industrial Building RB
(Shamrock Technologies) 1997 DN
(First Union National Bank LOC)+
4.050% 03/07/00 ..................... $ 2,961 $ 2,961,000
Pulaski County Solid Waste Disposal
Facilities PCR RB (East Kentucky
Power) Series B MB++
4.050% 08/15/00 ..................... 2,000 2,000,000
------------
4,961,000
------------
MARYLAND--6.2%
Anne Arundel County (Westdeutsche
Landesbank Gironzentrale LOC)
TECP
3.700% 05/11/00 ..................... 2,000 2,000,000
Maryland Health & Higher Education
Facilities Authority RB (Johns
Hopkins Hospital Project) DN
(Bank America LOC)+
3.850% 03/07/00 ..................... 7,000 7,000,000
Maryland State Stadium Authority
Sports Facilities DN+
3.950% 03/07/00 ..................... 6,400 6,400,000
------------
15,400,000
------------
MASSACHUSETTS--1.2%
Whiteman-Hanson Regional School
District BAN
3.500% 03/24/00 ..................... 2,000 2,000,364
3.740% 07/07/00 ..................... 1,000 1,000,808
------------
3,001,172
------------
MICHIGAN--3.8%
Benton Harbor Area School District BAN
4.000% 08/31/00 ..................... 1,000 1,001,449
Michigan State Strategic Fund Limited
Obligation RB (Dawnbreakers LLC
Project) DN (Banc One N.A. LOC)+
4.100% 03/07/00 ..................... 4,855 4,855,000
Pinckney Community Schools
GO Notes
4.250% 06/30/00 ..................... 1,000 1,000,962
See Accompanying Notes to Financial Statements.
7
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
MUNICIPAL MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS (CONTINUED)
FEBRUARY 29, 2000
(UNAUDITED)
PAR
(000) VALUE
---------- -------------
MICHIGAN--(CONTINUED)
Swartz Creek Community Schools
State Aid Anticipation Notes GO
Notes MB++
3.600% 05/17/00 ..................... $ 2,500 $ 2,501,013
------------
9,358,424
------------
MINNESOTA--0.8%
Minneapolis GO Series 1998B DN
(Bayerische Landesbank
Girozentrale LOC)+
3.750% 03/07/00 ..................... 1,885 1,885,000
------------
MISSOURI--0.1%
Kansas City IDA RB (Mid-America
Health Services, Inc. Project)
Series 1984 DN (Bank of New
York LOC)+
4.000% 03/07/00 ..................... 200 200,000
------------
NEBRASKA--1.5%
Lancaster County Industrial
Development RB (Sun-Husker
Foods, Inc. Project) DN (Bank of
Tokyo LOC)+
4.350% 03/07/00 ..................... 3,800 3,800,000
------------
NEW HAMPSHIRE--1.2%
New Hampshire State Business
Finance Authority (New England
Power) TECP
3.700% 04/24/00 ..................... 3,000 3,000,000
------------
NEW JERSEY--3.2%
Carlstadt County BAN
3.350% 03/29/00 ..................... 1,000 1,000,148
Cedar Grove Township GO
Series 1999 BAN
3.500% 03/07/00 ..................... 2,292 2,292,145
Essex County Improvement Authority
BAN (MIG)
3.500% 03/31/00 ..................... 2,000 2,000,556
Hillside Township BAN
3.625% 03/08/00 ..................... 2,210 2,210,194
PAR
(000) VALUE
---------- -------------
NEW JERSEY--(CONTINUED)
New Jersey Economic Development
Authority RB (J. Jams Realty Co.)
DN (First Union National Bank LOC)+
3.900% 03/07/00 ..................... $ 460 $ 460,000
------------
7,963,043
------------
NEW MEXICO--0.4%
New Mexio State TRAN
4.500% 06/30/00 ..................... 1,000 1,002,103
------------
NEW YORK--12.9%
City of New York Transitional Finance
Authority Series 1999B-1 DN
(Morgan Guaranty Trust LOC)+
3.750% 03/07/00 ..................... 3,200 3,200,000
Long Island Power Authority DN
(MBIA Insurance LOC)+
3.800% 03/07/00 ..................... 800 800,000
Long Island Power Authority Electric
System Subordinated RB DN
(Bayerische Landesbank
Girozentrale LOC) DN+
3.850% 03/07/00 ..................... 700 700,000
New York City GO (Morgan Guaranty
LOC) DN+
3.800% 03/07/00 ..................... 350 350,000
New York City GO Bonds DN
(Morgan Guaranty LOC)+
3.800% 03/07/00 ..................... 300 300,000
New York City GO DN (Bayerische
Landesbank Girozentrale LOC)+
3.750% 03/07/00 ..................... 2,300 2,300,000
New York State Dormitory Authority
Reserves DN /(MBIA INSURANCE)+
3.750% 03/07/00 ..................... 10,000 10,000,000
New York State Housing Finance
Agency (Liberty View Apartments)
Series 1997A DN (Federal National
Mortgage Association LOC)+
3.700% 03/07/00 ..................... 6,400 6,400,000
See Accompanying Notes to Financial Statements.
8
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
MUNICIPAL MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS (CONTINUED)
FEBRUARY 29, 2000
(UNAUDITED)
PAR
(000) VALUE
---------- -------------
NEW YORK--(CONTINUED)
New York State Housing Finance
Agency Union Square South
Housing RB 1996 Series A DN
(Bayerische Landesbank
Girozentrale LOC)+
3.700% 03/07/00 ..................... $ 7,500 $ 7,500,000
Port Authority of New York & New
Jersey Versatile Structure
Obligations DN (Bayerische
Landesbank Girozentrale LOC)+
3.750% 03/01/00 ..................... 400 400,000
------------
31,950,000
------------
NORTH CAROLINA--11.8%
Buncombe County Industrial Facilities
and Pollution Control Financing
Authority RB (Lustar Dyeing, Inc.
Project) Series 1998 DN (First
Union National Bank LOC)+
4.050% 03/07/00 ..................... 2,500 2,500,000
Charlotte-Mecklenburg Hospital
Authority RB (Health Care System
Project) Series 1996B DN (Bank of
America LOC)+
3.800% 03/07/00 ..................... 3,400 3,400,000
Greensboro (Combined Enterprise
Systems) DN /(Bank Of America
LOC)+
3.900% 03/07/00 ..................... 2,975 2,975,000
Guilford County Industrial Facilities
and Pollution Control Financing
Authority IDA RB (U.S. Label Corp.
Project) Series 1995 DN (Wachovia
Bank LOC)+
4.000% 03/07/00 ..................... 700 700,000
Lee County Industrial Facilities and
Pollution Control Financing
Authority RB (Var-Arden Corp
Project) Series 1999 DN (Comerica
Bank Detroit LOC)+
4.100% 03/07/00 ..................... 3,300 3,300,000
North Carolina Educational Facilities
Financing Agency DN+
3.900% 03/07/00 ..................... 8,100 8,100,000
PAR
(000) VALUE
---------- -------------
NORTH CAROLINA--(CONTINUED)
North Carolina Health Care Series
1985 DN (MBIA Insurance)+
3.750% 03/07/00 ............................... $ 600 $ 600,000
North Carolina Medical Care
Commission Hospital RB (Duke
University Hospital Project)
Series 1985B DN+
3.800% 03/07/00 ............................... 2,000 2,000,000
North Carolina Medical Care
Commission Hospital RB (Luthern
Retirement Project) Series 1999 DN
(Bank America LOC)+
3.900% 03/07/00 ............................... 400 400,000
North Carolina Medical Care
Community Hospital Lincoln Health
System DN (NationsBank LOC)+
3.900% 03/07/00 ............................... 3,100 3,100,000
Wake County Industrial Facility PCR
RB (Carolina Power & Light Co.)
Series 1985 A DN (Credit Suisse
LOC)+
3.800% 03/07/00 ............................... 2,000 2,000,000
------------
29,075,000
------------
NORTH DAKOTA--0.4%
North Dakota State Housing Finance
Authority Home Mortgage RB
Series C MB (FGIC Insurance)++
3.200% 04/01/00 ............................... 1,000 1,000,000
------------
OHIO--3.1%
Allen City BAN
3.350% 04/13/00 ............................... 2,000 2,000,341
Butler County BAN
4.180% 03/15/00 ............................... 1,000 1,000,181
Cuyahoga County RB (The Cleveland
Clinic) Series D DN (Bank America
N.A. LOC)+
3.850% 03/07/00 ............................... 300 300,000
Mansfield City School District BAN
4.400% 07/18/00 ............................... 1,000 1,001,668
See Accompanying Notes to Financial Statements.
9
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
MUNICIPAL MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS (CONTINUED)
FEBRUARY 29, 2000
(UNAUDITED)
PAR
(000) VALUE
---------- -------------
OHIO--(CONTINUED)
Montgomery County Healthcare
Facilities RB Series 1998 DN
(National City Bank of Cleveland
LOC)+
3.950% 03/07/00 ............................... $ 570 $ 570,000
Toledo BAN
4.200% 05/18/00 ............................... 1,000 1,000,980
Union Township GO Notes
3.770% 05/26/00 ............................... 1,850 1,851,973
------------
7,725,143
------------
OKLAHOMA--2.0%
Oklahoma County Finance Authority
IDA RB (Southwest Electric Co.
Project) Series 1998 DN (Bank
One of Milwaukee LOC)+
4.000% 03/07/00 ............................... 2,865 2,865,000
Oklahoma Development Finance
Authority (Shawnee Funding
Limited) DN (Bank of Nova Scotia
LOC)+
4.050% 03/07/00 ............................... 2,000 2,000,000
------------
4,865,000
------------
PUERTO RICO--0.8%
Puerto Rico Electric Power Authority
DN (Societe Generale LOC)+
3.000% 03/07/00 ............................... 1,900 1,900,000
------------
SOUTH CAROLINA--2.7%
Berkeley County IDA RB (Nucor Corp.
Guarantee Project) Series 1995 DN+
4.000% 03/07/00 ............................... 2,300 2,300,000
Chesterfield County IDA RB (Culp,
Inc.) DN (Wachovia LOC)+
4.050% 03/07/00 ............................... 2,300 2,300,000
Marlboro County, IDA RB (Reliance
Trading Corp. of America Project)
1997 DN (ABN AMRO Bank LOC)+
3.950% 03/07/00 ............................... 1,100 1,100,000
PAR
(000) VALUE
---------- -------------
SOUTH CAROLINA--(CONTINUED)
South Carolina Jobs Economic
Development Authority RB (Tate
Metalworks, Inc. Project) 1998 DN
(Wachovia LOC)+
4.050% 03/07/00 ............................... $ 1,000 $ 1,000,000
------------
6,700,000
------------
TENNESSEE--2.4%
Morristown IDA (Petoskey Plastic
Project) DN (Comerica Bank LOC)+
4.200% 03/07/00 ............................... 6,000 6,000,000
------------
TEXAS--7.9%
Austin Airport System Revenue
Financial Sevices Department -
Merlots Series J First Union 2A-7
Merlots Series 2000 J (MBIA
Insurance LOC) DN+
4.050% 03/07/00 ............................... 1,000 1,000,000
Brazos River Harbor Navigational
District TECP
3.900% 06/09/00 ............................... 9,980 9,980,000
Denton IDA (Hartzell Manufacturing
Inc. Project) DN (National City
Bank of Cleveland LOC)+
4.300% 03/07/00 ............................... 1,300 1,300,000
Texas State TRAN
4.500% 08/31/00 ............................... 7,300 7,326,116
------------
19,606,116
------------
VIRGINIA--5.9%
Capital Region Airport Commission
(Richmond International Airport
Project) Series 1995 C DN
(AMBAC Insurance)+
3.900% 03/07/00 ............................... 565 565,000
Metropolitan Washington DC Airport
Authority TECP
3.750% 04/17/00 ............................... 14,000 14,000,000
------------
14,565,000
------------
See Accompanying Notes to Financial Statements
10
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
MUNICIPAL MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS (CONCLUDED)
FEBRUARY 29, 2000
(UNAUDITED)
PAR
(000) VALUE
---------- -------------
WASHINGTON--0.8%
Washington State DN+
3.960% 03/07/00 ............................... $ 2,000 $ 2,000,000
------------
WISCONSIN--5.0%
Franklin, City Of, IDA RB Series 1998
(All Glass Aquarium Co., Inc.
Project) DN (Banc One Funding
Corp. LOC)+
4.000% 03/07/00 ............................... 4,390 4,390,000
Mequon, City of, IDA RB (Johnson
Level GRW Investment Project)
DN (Bank One Fundim Corp. LOC)+
4.000% 03/07/00 ............................... 2,345 2,345,000
Rapids City IDA RB (Theile Kaolin of
Wisconsin, Inc. Project) DN
(Suntrust Bank LOC)+
4.050% 03/07/00 ............................... 2,250 2,250,000
Wisconsin Housing & Economic
Development Authority MB
(Transamerica Life And Annuity
Company)++
4.060% 03/07/00 ............................... 3,300 3,300,000
------------
12,285,000
------------
TOTAL MUNICIPAL BONDS
(Cost $245,037,887) ....................... 245,037,887
------------
TOTAL INVESTMENTS AT VALUE--99.2%
(Cost $245,037,887*) .......................... 245,037,887
------------
OTHER ASSETS IN EXCESS
OF LIABILITIES--0.8% .......................... 1,897,986
------------
NET ASSETS (Applicable to 130,486,325
Bedford shares, 219,708 Cash Preservation
shares, 116,303,638 Janney Montgomery Scott
shares, and 800 other
shares)--100.0% ............................... $246,935,873
============
NET ASSET VALUE, Offering and
redemption price per share
($246,935,873 / 247,010,471) .................. $1.00
=====
* Also cost for Federal income tax purposes.
+ Variable Rate Demand Notes -- The interest rate shown is the rate as of
February 29, 2000 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.
++ Put Bonds -- Maturity date is the put date.
INVESTMENT ABBREVIATIONS
AMT ................................................. Alternative Minimum Tax
BAN .................................................. Bond Anticipation Note
DN .............................................................. Demand Note
GO ...................................................... General Obligations
LOC ........................................................ Letter of Credit
IDA ........................................ Industrial Development Authority
MB ........................................................... Municipal Bond
PCR ............................................... Pollution Control Revenue
RAN ............................................... Revenue Anticipation Note
RAW ........................................... Revenue Anticipation Warrants
RB ............................................................. Revenue Bond
TAN ................................................... Tax Anticipation Note
TECP ............................................ Tax Exempt Commercial Paper
TRAN ...................................... Tax and Revenue Anticipation Note
See Accompanying Notes to Financial Statements.
11
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
GOVERNMENT OBLIGATIONS MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS
FEBRUARY 29, 2000
(UNAUDITED)
PAR
(000) VALUE
---------- -------------
AGENCY OBLIGATIONS--36.5%
FEDERAL HOME LOAN BANK--13.9%
5.160% 03/08/00 ............................... $ 5,000 $ 4,999,522
5.810% 03/17/00 ............................... 5,900 5,884,765
5.810% 03/23/00 ............................... 4,470 4,454,129
5.010% 04/28/00 ............................... 15,000 14,998,693
5.075% 04/28/00 ............................... 9,500 9,489,582
5.560% 05/03/00 ............................... 8,000 7,922,160
5.510% 05/17/00 ............................... 20,000 19,764,294
------------
67,513,145
------------
FEDERAL HOME LOAN MORTGAGE CORPORATION--13.6%
5.765% 05/11/00 ............................... 10,000 9,886,301
5.800% 05/18/00 ............................... 5,000 4,937,167
5.810% 05/18/00 ............................... 10,000 9,874,117
5.835% 05/25/00 ............................... 25,000 24,655,573
5.200% 06/30/00 ............................... 10,000 9,825,222
5.988% 01/16/01 ............................... 7,000 6,626,273
------------
65,804,653
------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION--9.0%
5.060% 03/15/00 ............................... 4,000 3,998,708
5.730% 04/13/00 ............................... 10,000 9,931,558
5.750% 04/27/00 ............................... 20,000 19,817,917
5.460% 06/21/00 ............................... 5,000 4,999,709
5.900% 12/01/00 ............................... 5,000 4,993,178
------------
43,741,070
------------
TOTAL AGENCY OBLIGATIONS
(Cost $177,058,868) ....................... 177,058,868
------------
VARIABLE RATE OBLIGATIONS--29.5%
FEDERAL HOME LOAN BANK--5.2%
5.855% 03/01/00+ .............................. 10,000 9,999,399
5.739% 03/13/00+ .............................. 15,000 14,997,218
------------
24,996,617
------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION--19.2%
5.703% 03/02/00+ .............................. 10,000 9,997,160
5.973% 03/22/00+ .............................. 13,000 12,998,023
5.970% 03/23/00+ .............................. 35,000 34,998,632
5.883% 05/05/00+ .............................. 25,000 24,997,243
5.915% 05/09/00+ .............................. 10,000 9,997,361
------------
92,988,419
------------
PAR
(000) VALUE
---------- -------------
STUDENT LOAN MARKETING ASSOCIATION--3.1%
6.531% 03/07/00+ .............................. $10,000 $ 10,000,000
6.481% 08/03/00+ .............................. 5,000 5,008,163
------------
15,008,163
------------
STUDENT LOAN MARKETING ASSOCIATION MASTER NOTES--2.1%
6.031% 03/07/00+ .............................. 10,000 10,000,000
------------
TOTAL VARIABLE RATE OBLIGATIONS
(Cost $142,993,199) ....................... 142,993,199
------------
REPURCHASE AGREEMENTS--33.7%
Lehman Brothers Inc.
(Agreement dated 02/29/00 to be
repurchased at $33,405,214
collateralized by $29,585,013 par
Federal Converted Gold Bond
Certificates of Participation 6.50%
to 9.50% due 04/01/08 to 12/01/22,
$43,939,499 par Federal Home Loan
Mortgage Corporation Certificates of
Participation 8.50% to 10.00% due
10/01/03 to 10/01/17, $91,742,706 par
Federal National Mortgage Association
Strip 6.00% to 10.50% due 09/01/12 to
07/01/29. Market Value of collateral
is $34,178,505.)
5.620% 03/01/00 ............................... 33,400 33,400,000
Morgan Stanley & Co. Inc.
(Agreement dated 02/29/00 to be
repurchased at $100,016,491
collaterlized by $94,470,700 Federal
National Mortgage Association
6.00% and 6.625% due 05/15/08 and
09/15/09, $8,765,512 Federal Home
Loan Mortgage Corp. 6.75% due
09/15/29. Market Value of collateral
is $103,236,212.)
5.937% 03/01/00 ............................... 100,000 100,000,000
See Accompanying Notes to Financial Statements.
12
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
GOVERNMENT OBLIGATIONS MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS (CONCLUDED)
FEBRUARY 29, 2000
(UNAUDITED)
PAR
(000) VALUE
---------- -------------
REPURCHASE AGREEMENTS--(CONTINUED)
Warburg Dillion Read (Agreement dated
02/11/00 to be repurchased at
$10,049,514 collaterlized by
$10,740,000 par Federal National
Mortgage Strip 7.50% due 05/01/18.
Market Value of collateral is
$10,279,389.)
5.750% 03/13/00 ................................. $10,000 $ 10,000,000
Warburg Dillion Read
(Agreement dated 02/14/00 to be
repurchased at $5,074,190
collaterlized by $6,020,000 par
Federal National Mortgage
Association Strip 6.00% due
02/01/29. Market Value of collateral
is $5,140,106.)
5.870% 05/15/00 ................................. 5,000 5,000,000
Warburg Dillion Read (Agreement dated
02/22/00 to be repurchased at
$15,223,125 collaterlized by
$5,085,000 par Federal National
Mortgage Association Conventional
Pooled Loan due 01/01/01, $9,912,327
par Federal Converted Gold Bond
Certificates of Participation 7.00%
due 01/01/11, and $6,055,000 Federal
National Mortgage Association
Conventional Pooled Loan due
01/01/10. Market Value of collateral
is $15,430,439.)
5.950% 05/22/00. ............................... 15,000 15,000,000
------------
TOTAL REPURCHASE AGREEMENTS
(Cost $163,400,000) ......................... 163,400,000
------------
TOTAL INVESTMENTS AT VALUE--99.8%
(Cost $483,452,067*) ............................ 483,452,067
------------
VALUE
------------
OTHER ASSETS IN EXCESS
OF LIABILITIES--0.2% ............................ $ 1,018,764
------------
NET ASSETS (Applicable to 97,094,548
Bedford shares, 387,433,812 Janney
Montgomery Scott shares and 800 other
shares)--100% ................................... $484,470,831
============
NET ASSET VALUE, Offering and
redemption price per share
($484,470,831 / 484,529,160) .................... $1.00
=====
* Also cost for Federal income tax purposes.
+ Variable Rate Obligations -- The interest rate is the rate as of February
29, 2000 and the maturity date shown is the longer of the next interest
readjustment date or the date the principal amount shown can be recovered
through demand.
See Accompanying Notes to Financial Statements.
13
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED FEBRUARY 29, 2000
(UNAUDITED)
<TABLE>
<CAPTION>
GOVERNMENT
MUNICIPAL OBLIGATIONS
MONEY MARKET MONEY MARKET MONEY MARKET
PORTFOLIO PORTFOLIO PORTFOLIO
------------ ------------ ------------
<S> <C> <C> <C>
Investment Income
Interest ........................................... $83,785,587 $4,482,447 $13,372,029
----------- ---------- -----------
Expenses
Distribution fees .................................. 5,228,683 746,306 1,459,407
Investment advisory fees ........................... 5,310,677 434,321 1,034,610
Administration fees ................................ -- 124,384 --
Transfer agent fees ................................ 225,049 64,586 123,203
Service organization fees .......................... 284,235 -- --
Printing fees ...................................... 273,934 32,802 91,694
Custodian fees ..................................... 214,102 28,933 46,102
Legal fees ......................................... 73,444 6,019 9,425
Registration fees .................................. 45,000 23,000 30,000
Audit fees ......................................... 80,076 9,789 14,737
Directors' fees .................................... 65,456 5,778 10,153
Insurance expense .................................. 10,988 1,227 2,213
Miscellaneous ...................................... -- 630 1,296
----------- ---------- -----------
11,811,644 1,477,775 2,822,840
Less fees waived ................................... (707,606) (361,136) (403,120)
Less expense reimbursement by advisor .............. (157,665) (26,002) --
----------- ---------- -----------
Total expenses ................................ 10,946,373 1,090,637 2,419,720
----------- ---------- -----------
Net investment income ................................. 72,839,214 3,391,810 10,952,309
----------- ---------- -----------
Net realized gain (loss) on investments ............... (602) -- (1,087)
----------- ---------- -----------
Net increase in net assets resulting from operations .. $72,838,612 $3,391,810 $10,951,222
=========== ========== ===========
</TABLE>
See Accompanying Notes to Financial Statements.
14
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
MUNICIPAL MONEY
MONEY MARKET PORTFOLIO MARKET PORTFOLIO
---------------------------------- ----------------------------------
FOR THE FOR THE FOR THE FOR THE
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
FEBRUARY 29, 2000 AUGUST 31, 1999 FEBRUARY 29, 2000 AUGUST 31, 1999
----------------- --------------- ----------------- ---------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
Increase (decrease) in net assets:
Operations:
Net investment income ................ $ 72,839,214 $ 115,658,458 $ 3,391,810 $ 6,771,609
Net gain (loss) on investments ....... (602) 72,320 -- --
-------------- -------------- ---------------- --------------
Net increase in net assets
resulting from operations .......... 72,838,612 115,730,778 3,391,810 6,771,609
-------------- -------------- ---------------- --------------
Distributions to shareholders:
Dividends to shareholders from
Net Investment Income:
Bedford shares ..................... (9,490,228) (28,089,918) (1,850,391) (3,903,796)
Cash Preservation shares ........... (3,610) (7,069) (2,870) (4,151)
Janney Montgomery Scott
shares ........................... (26,738,928) (43,156,041) (1,538,549) (2,863,662)
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) (3,391,810) (6,771,609)
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) -- --
Principal shares ................... -- -- -- --
Sansom Street shares ............... -- (2,010) -- --
Select shares ...................... -- (102) -- --
-------------- -------------- ---------------- --------------
-- (7,705) -- --
Total Dividends to
shareholders ................... (72,839,214) (115,666,163) (3,391,810) (6,771,609)
-------------- -------------- ---------------- --------------
Net capital share transactions (Note 3) (188,628,536) 423,497,416 (18,095,591) 19,860,650
-------------- -------------- ---------------- --------------
Total increase/(decrease) in
net assets ........................... (188,629,138) 423,562,031 (18,095,591) 19,860,650
Net Assets:
Beginning of period .................. 2,739,120,331 2,315,558,300 265,031,464 245,170,814
------------- -------------- ---------------- --------------
End of period ........................ $2,550,041,193 $2,739,120,331 $ 246,935,873 $ 265,031,464
============== ============== ================ ==============
</TABLE>
<TABLE>
<CAPTION>
GOVERNMENT OBLIGATIONS
MONEY MARKET PORTFOLIO
---------------------------------
FOR THE FOR THE
SIX MONTHS ENDED YEAR ENDED
FEBRUARY 29, 2000 AUGUST 31, 1999
----------------- ---------------
(UNAUDITED)
<S> <C> <C>
Increase (decrease) in net assets:
Operations:
Net investment income $ 10,952,309 $ 21,447,328
Net gain (loss) on investments (1,087) (37,985)
---------------- --------------
Net increase in net assets
resulting from operations 10,951,222 21,409,343
---------------- --------------
Distributions to shareholders:
Dividends to shareholders from
Net Investment Income:
Bedford shares (2,281,187) (5,251,973)
Cash Preservation shares -- --
Janney Montgomery Scott
shares (8,671,122) (16,195,355)
Principal shares -- --
Sansom Street shares -- --
Select shares -- --
---------------- --------------
(10,952,309) (21,447,328)
Dividends to shareholders from
Net Realized Short-Term Gains in
excess of Net Investment Income:
Bedford shares -- --
Cash Preservation shares -- --
Janney Montgomery Scott
shares -- --
Principal shares -- --
Sansom Street shares -- --
Select shares -- --
---------------- --------------
-- --
Total Dividends to
shareholders (10,952,309) (21,447,328)
---------------- --------------
Net capital share transactions (Note 3) 2,075,709 (25,077,711)
---------------- --------------
Total increase/(decrease) in
net assets 2,074,622 (25,115,696)
Net Assets:
Beginning of period 482,396,209 507,511,905
---------------- --------------
End of period $ 484,470,831 $ 482,396,209
================ ==============
</TABLE>
See Accompanying Notes to Financial Statements.
15
<PAGE>
THE BEDFORD 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, 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 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
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%
</TABLE>
<TABLE>
<CAPTION>
MUNICIPAL MONEY MARKET PORTFOLIO
---------------------------------------------------------------
FOR THE FOR THE FOR THE FOR THE FOR THE
SIX MONTHS YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED
FEBRUARY 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 period ................ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- ------- -------- --------
Income from investment
operations:
Net investment income .... 0.0135 0.0243 0.0286 0.0285 0.0288
-------- -------- ------- -------- --------
Total from investment
operations ......... 0.0135 0.0243 0.0286 0.0285 0.0288
-------- -------- ------- -------- --------
Less distributions
Dividends (from net
investment income) ..... (0.0135) (0.0243) (0.0286) (0.0285) (0.0288)
-------- -------- ------- -------- --------
Total distributions .. (0.0135) (0.0243) (0.0286) (0.0285) (0.0288)
-------- -------- ------- -------- --------
Net asset value, end of
period ................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======= ======== ========
Total Return ............... 1.35%(d) 2.46% 2.97% 2.88% 2.92%
Ratios /Supplemental Data
Net assets, end of
period (000) .......... $130,415 $150,278 $147,633 $213,034 $201,940
Ratios of expenses to
average net assets ..... .89%(a)(b) .89%(a) .89%(a) .85%(a) .84%(a)
Ratios of net investment
income to average
net assets ............. 2.71%(b) 2.43% 2.86% 2.85% 2.88%
</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 1.02% 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. For the Municipal Money Market Portfolio, the ratios of
expenses to average net assets would have been 1.18% for the six months
ended February 29, 2000, 1.15%, 1.15%, 1.14% and 1.12% 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
each portfolio.
(d) Non-Annualized.
See Accompanying Notes to Financial Statements.
16
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
FINANCIAL HIGHLIGHTS (c)
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
GOVERNMENT OBLIGATIONS MONEY MARKET PORTFOLIO
----------------------------------------------------------------
FOR THE FOR THE FOR THE FOR THE FOR THE
SIX MONTHS YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED
FEBRUARY 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 period .................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------- --------
Income from investment
operations:
Net investment income ...... 0.0225 0.0409 0.0464 0.0449 0.0458
-------- -------- -------- -------- --------
Total from investment
operations ........... 0.0225 0.0409 0.0464 0.0449 0.0458
-------- -------- -------- -------- --------
Less distributions
Dividends (from net
investment income) ....... (0.0225) (0.0409) (0.0464) (0.0449) (0.0458)
-------- -------- -------- -------- --------
Total distributions .... (0.0225) (0.0409) (0.0464) (0.0449) (0.0458)
-------- -------- -------- -------- --------
Net asset value,
end of period .............. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ========
Total Return ................. 2.25%(d) 4.17% 4.74% 4.59% 4.68%
Ratios /Supplemental Data
Net assets, end of
period (000) ............. $ 97,097 $113,050 $128,447 $209,715 $192,599
Ratios of expenses to
average net assets ....... .975%(a)(b) .975%(a) .975%(a) .975%(a) .975%(a)
Ratios of net investment
income to average
net assets ............... 4.52%(b) 4.09% 4.63% 4.49% 4.58%
<FN>
(a) Without the waiver of advisory, administration and transfer agent fees and
without the reimbursement of certain operating expenses, the ratios of
expenses to average net assets for the Government Obligations Portfolio
would have been 1.14% for the six months ended February 29, 2000, 1.13%,
1.10%, 1.09% and 1.10% 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 each portfolio.
(d) Non-Annualized.
</FN>
</TABLE>
See Accompanying Notes to Financial Statements.
17
<PAGE>
THE BEDFORD 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 Bedford Family, the Principal
Family, the Sansom Street Family, the Janney Montgomery Scott Family, the Cash
Preservation Family, the Select Family, the n/i Family, the Boston Partners
Family, the Bogle Family and the Schneider Family. The Bedford Family represents
interests in three 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 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.
18
<PAGE>
THE BEDFORD 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 portfolios
described herein, and also serves as administrator for the Money Market and the
Government Obligations Money Market Portfolios. For the Money Market and
Government Obligations Money Market Portfolios, 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 portfolios.
For its advisory services, BIMC is entitled to receive the following fees,
computed daily and payable monthly based on each 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 .35% of first $250 million of net assets;
Portfolio .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 six months ended February 29, 2000, advisory fees and waivers for
the three investment portfolios were as follows:
<TABLE>
<CAPTION>
GROSS NET
ADVISORY ADVISORY
FEE WAIVER FEE
------------ --------- -----------
<S> <C> <C> <C>
Money Market Portfolio $5,310,677 $(707,609) $4,603,068
Municipal Money Market Portfolio 434,321 (358,156) 76,165
Government Obligations Money Market Portfolio 1,034,610 (403,120) 631,490
</TABLE>
The investment advisor has agreed to reimburse each 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 and
$26,002, for the Money Market Portfolio and Municipal Money Market Portfolio,
respectively.
19
<PAGE>
THE BEDFORD 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 each of the Fund's
portfolios. 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
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 $ -- $ -- $ --
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 1,400 -- 1,400
-------- ------- --------
Total Money Market Portfolio $225,049 $ -- $225,049
======== ======= ========
Municipal Money Market Portfolio
Bedford Class $ 32,954 $ -- $ 32,954
Cash Preservation Class 3,371 (2,980) 391
Janney Montgomery Scott Class 28,261 -- 28,261
-------- ------- --------
Total Municipal Money Market Portfolio $ 64,586 $(2,980) $ 61,606
======== ======= ========
Government Obligations Money Market Portfolio
Bedford Class $ 34,094 $ -- $ 34,094
Janney Montgomery Scott Class 89,109 -- 89,109
-------- ------- --------
Total Government Obligations Money Market Portfolio $123,203 $ -- $123,203
======== ======= ========
</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 six months ended February 29, 2000, the administration
fee and waiver for the portfolio were as follows:
<TABLE>
<CAPTION>
GROSS NET
ADMINISTRATION ADMINISTRATION
FEE WAIVER FEE
-------------- ------ --------------
<S> <C> <C> <C>
Municipal Money Market Portfolio $124,384 $ -- $124,384
</TABLE>
20
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FEBRUARY 29, 2000
(UNAUDITED)
NOTE 2. TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES (CONTINUED)
The Fund, on behalf of each class of shares within the three investment
portfolios, has adopted Distribution Plans pursuant to Rule 12b-1 under the
Investment Company Act of 1940, as amended. 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
==========
Municipal Money Market Portfolio
Bedford Class $ 409,741
Cash Preservation Class 436
Janney Montgomery Scott Class 336,129
----------
Total Municipal Money Market Portfolio $ 746,306
==========
Government Obligations Money Market Portfolio
Bedford Class $ 302,977
Janney Montgomery Scott Class 1,156,430
----------
Total Government Obligations Money Market Portfolio $1,459,407
==========
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.
21
<PAGE>
THE BEDFORD 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:
<TABLE>
<CAPTION>
MUNICIPAL MONEY
MONEY MARKET PORTFOLIO MARKET PORTFOLIO
---------------------------------- ----------------------------------
FOR THE FOR THE FOR THE FOR THE
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
FEBRUARY 29, 2000 AUGUST 31, 1999 FEBRUARY 29, 2000 AUGUST 31, 1999
----------------- --------------- ----------------- ---------------
(UNAUDITED) (UNAUDITED)
VALUE VALUE VALUE VALUE
----------------- ---------------- ----------------- ---------------
<S> <C> <C> <C> <C>
Shares sold:
Bedford Class $ 434,830,491 $ 1,676,808,408 $ 131,724,543 $ 471,166,299
Cash Preservation Class 168,234 114,454 32,443 178,689
Janney Montgomery
Scott Class 2,959,249,169 4,931,373,936 225,816,326 445,130,179
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 11,273,716,210 357,573,312 916,475,167
Shares issued in
reinvestment of dividends:
Bedford Class 9,382,916 28,217,868 1,855,138 3,895,215
Cash Preservation Class 3,501 7,224 2,822 3,980
Janney Montgomery
Scott Class 26,565,909 43,272,113 1,534,459 2,871,349
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 3,392,419 6,770,544
Shares repurchased:
Bedford Class (362,189,722) (2,107,674,545) (153,443,382) (472,416,562)
Cash Preservation Class (65,144) (217,053) (29,929) (60,295)
Janney Montgomery
Scott Class (2,843,076,015) (4,790,786,046) (225,588,011) (430,908,204)
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) (379,061,322) (903,385,061)
--------------- ---------------- ------------- -------------
Net increase (decrease) $ (188,628,536) $ 423,497,416 $ (18,095,591) $ 19,860,650
=============== ================ ============= =============
Bedford Shares authorized 1,5000,000,000 1,500,000,000 500,000,000 500,000,000
=============== ================ ============= =============
</TABLE>
22
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FEBRUARY 29, 2000
(UNAUDITED)
NOTE 3. CAPITAL SHARES (CONTINUED)
GOVERNMENT OBLIGATIONS
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 $ 88,788,231 $ 351,502,731
Janney Montgomery
Scott Class 820,165,509 1,424,893,515
------------- ---------------
Total Shares Sold 908,953,740 1,776,396,246
Shares issued in
reinvestment of dividends:
Bedford Class 2,297,170 5,293,048
Janney Montgomery
Scott Class 8,635,361 16,337,605
------------- ---------------
Total Shares Reinvested 10,932,531 21,630,653
Shares repurchased:
Bedford Class (107,038,243) (372,183,308)
Janney Montgomery
Scott Class (810,772,319) (1,450,921,302)
------------- ---------------
Total Shares Repurchased (917,810,562) (1,823,104,610)
------------- ---------------
Net increase (decrease) $ 2,075,709 $ (25,077,711)
============= ===============
Bedford Shares authorized 500,000,000 500,000,000
============= ===============
23
<PAGE>
THE BEDFORD 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:
<TABLE>
<CAPTION>
GOVERNMENT
MUNICIPAL OBLIGATIONS
MONEY MARKET MONEY MARKET MONEY MARKET
PORTFOLIO PORTFOLIO PORTFOLIO
-------------- ------------ ------------
<S> <C> <C> <C>
Capital paid-in $2,550,547,824 $246,954,810 $484,541,710
Accumulated net realized gain (loss) on investments (56,631) (18,937) (70,879)
-------------- ------------ ------------
$2,550,491,193 $246,935,873 $484,470,831
============== ============ ============
</TABLE>
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 $55,760 of capital loss carryover
that expired in 1999.
24
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FEBRUARY 29, 2000
(UNAUDITED)
NOTE 6. OTHER FINANCIAL HIGHLIGHTS
The Fund currently offers five other classes of shares representing
interests in the Money Market Portfolio: Janney Montgomery Scott, Cash
Preservation, Principal, Sansom Street, and Select. The Fund currently offers
two other classes of shares representing interests in the Municipal Money Market
Portfolio: Janney Montgomery Scott and Cash Preservation. The Fund currently
offers one other class of shares representing interests in the Government
Obligations Money Market Portfolio: Janney Montgomery Scott. Each class is
marketed to different types of investors. Financial Highlights of Cash
Preservation Class are not presented in this report due to their immateriality.
Such information is available in the annual report of the Cash Preservation
Family. The financial highlights of certain of the other classes are as follows:
THE JANNEY MONTGOMERY SCOTT FAMILY (c)
<TABLE>
<CAPTION>
MONEY MARKET PORTFOLIO
----------------------------------------------------------------
FOR THE FOR THE FOR THE FOR THE FOR THE
SIX MONTHS YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED
FEBRUARY 29, AUGUST 31, AUGUST 31, AUGUST 31, AUGUST 31,
2000 1999 1998 1997 1996
------------- ---------- ---------- ---------- ----------
(UNAUDITED)
<S> <C> <C> <C> <C> <C>
Net asset value, beginning
of year or period ........$ 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, transfer agent fees and 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 each portfolio.
(d) Non-Annualized.
</FN>
</TABLE>
25
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FEBRUARY 29, 2000
(UNAUDITED)
NOTE 6. OTHER FINANCIAL HIGHLIGHTS (CONTINUED)
THE JANNEY MONTGOMERY SCOTT FAMILY (c) (CONTINUED)
<TABLE>
<CAPTION>
MUNICIPAL MONEY MARKET PORTFOLIO
---------------------------------------------------------------
FOR THE FOR THE FOR THE FOR THE FOR THE
SIX MONTHS YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED
FEBRUARY 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 .... 0.0137 0.0246 0.0290 0.0285 0.0278
-------- -------- ------- -------- --------
Total from investment
operations ......... 0.0137 0.0246 0.0290 0.0285 0.0278
-------- -------- ------- -------- --------
Less distributions
Dividends (from net
investment income) ..... (0.0137) (0.0246) (0.0290) (0.0285) (0.0278)
-------- -------- ------- -------- --------
Total distributions .. (0.0137) (0.0246) (0.0290) (0.0285) (0.0278)
-------- -------- ------- -------- --------
Net asset value, end of
year or period ........... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======= ======== ========
Total Return ............... 1.37%(d) 2.94% 2.94% 2.89% 2.81%
Ratios /Supplemental Data
Net assets, end of year or
period (000) .......... $116,301 $114,539 $ 97,445 $108,826 $ 89,428
Ratios of expenses to
average net assets ..... 0.86%(a)(b) 0.86%(a) 0.86%(a) 0.85%(a) 0.94%(a)
Ratios of net investment
income to average
net assets ............. 2.75%(b) 2.46% 2.90% 2.85% 2.78%
<FN>
(a) Without the waiver of advisory, administration and transfer agent fees and
without the reimbursement of certain operating expenses, the ratios of
expenses to average net assets for the Municipal Money Market Portfolio
would have been 1.18% for the six months ended February 29, 2000, 1.20%,
1.16%, 1.13% 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 each portfolio.
(d) Non-Annualized.
</FN>
</TABLE>
26
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FEBRUARY 29, 2000
(UNAUDITED)
NOTE 6. OTHER FINANCIAL HIGHLIGHTS (CONTINUED)
THE JANNEY MONTGOMERY SCOTT FAMILY (C) (CONTINUED)
<TABLE>
<CAPTION>
GOVERNMENT OBLIGATIONS
MONEY MARKET PORTFOLIO
----------------------------------------------------------------
FOR THE FOR THE FOR THE FOR THE FOR THE
SIX MONTHS YEAR YEAR YEAR YEAR
ENDED ENDED ENDED ENDED ENDED
FEBRUARY 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 ...... 0.0224 0.0406 0.0460 0.0447 0.0456
-------- -------- -------- -------- --------
Total from investment
operations ........... 0.0224 0.0406 0.0460 0.0447 0.0456
-------- -------- -------- -------- --------
Less distributions
Dividends (from net
investment income) ....... (0.0224) (0.0406) (0.0460) (0.0447) (0.0456)
-------- -------- -------- -------- --------
Total distributions .... (0.0224) (0.0406) (0.0460) (0.0447) (0.0456)
-------- -------- -------- -------- --------
Net asset value,
end of period .............. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ========
Total Return ................. 2.24%(d) 4.14% 4.71% 4.56% 4.66%
Ratios /Supplemental Data
Net assets, end of
year or period (000) ..... $387,374 $369,346 $379,065 $352,950 $306,757
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 ............... 4.50%(b) 4.06% 4.60% 4.47% 4.56%
<FN>
(a) Without the waiver of advisory, transfer agent fees and 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% for
the six months ended February 29, 2000, 1.21%, 1.23%, 1.23% and 1.25% 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 each portfolio.
(d) Non-Annualized.
</FN>
</TABLE>
27
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FEBRUARY 29, 2000
(UNAUDITED)
NOTE 6. OTHER FINANCIAL HIGHLIGHTS (CONTINUED)
THE SANSOM STREET 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 ................... 0.0259 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 year or period ..... $245,332 $841,887 $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 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>
28
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FEBRUARY 29, 2000
(UNAUDITED)
NOTE 6. 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.
(c) On December 15, 1998 the Money Market Portfolio's Select Class began
operations.
(d) Annualized.
(e) Non-Annualized.
</FN>
</TABLE>
29
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONCLUDED)
FEBRUARY 29, 2000
(UNAUDITED)
NOTE 6. 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 and 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 year 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>
