===============================================
THE BEDFORD MUNICIPAL
MONEY MARKET
PORTFOLIO
MUNICIPAL
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.
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.
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.
2
<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.
3
<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.
4
<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.
5
<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
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
---------- -------------
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.
7
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED FEBRUARY 29, 2000
(UNAUDITED)
MUNICIPAL
MONEY MARKET
PORTFOLIO
------------
Investment Income
Interest .............................................. $4,482,447
----------
Expenses
Distribution fees ..................................... 746,306
Investment Advisory fees .............................. 434,321
Administration fees ................................... 124,384
Transfer Agent fees ................................... 64,586
Service organization fees ............................. --
Printing fees ......................................... 32,802
Custodian fees ........................................ 28,933
Legal fees ............................................ 6,019
Registration fees ..................................... 23,000
Audit fees ............................................ 9,789
Director's fees ....................................... 5,778
Insurance expense ..................................... 1,227
Miscellaneous ......................................... 630
----------
1,477,775
Less fees waived ...................................... (361,136)
Less expense reimbursement by advisor ................. (26,002)
----------
Total expenses ................................... 1,090,637
----------
Net Investment Income .................................... 3,391,810
----------
Net realized gain/(loss) on investments .................. --
----------
Net increase in net assets resulting from operations ..... $3,391,810
==========
See Accompanying Notes to Financial Statements.
8
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
STATEMENTS OF CHANGES IN NET ASSETS
MUNICIPAL MONEY
MARKET PORTFOLIO
-----------------------------------
FOR THE FOR THE
SIX MONTHS ENDED YEAR ENDED
FEBRUARY 29, 2000 AUGUST 31, 1999
------------------ ---------------
(UNAUDITED)
Increase/(decrease) in assets:
Operations:
Net investment income ......... $ 3,391,810 $ 6,771,609
Net realized gain (loss) on
investments ................. -- --
------------ ------------
Net increase in net assets
resulting from operations ... 3,391,810 6,771,609
------------ ------------
Distributions to shareholders:
Dividends to shareholders from
Net Investment Income:
Bedford shares .............. (1,850,391) (3,903,796)
Cash Preservation shares .... (2,870) (4,151)
Janney Montgomery Scott
shares .................... (1,538,549) (2,863,662)
------------ ------------
Total Dividends to
shareholders ............ (3,391,810) (6,771,609)
------------ ------------
Net capital share
transactions (Note 3) ......... (18,095,591) 19,860,650
------------ ------------
Total increase (decrease) in
net assets .................... (18,095,591) 19,860,650
Net Assets:
Beginning of period ........... 265,031,464 245,170,814
------------ ------------
End of period ................. $246,935,873 $265,031,464
============ ============
See Accompanying Notes to Financial Statements.
9
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
FINANCIAL HIGHLIGHTS (C)
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<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, 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 ....... 0.0135 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 year
or 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%
<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, 1.15%,
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.
</FN>
</TABLE>
See Accompanying Notes to Financial Statements.
10
<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 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.
See Accompanying Notes to Financial Statements.
11
<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 portfolio
described herein.
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:
<TABLE>
<CAPTION>
PORTFOLIO ANNUAL RATE
------------------------------ -------------------------------------------
<S> <C>
Municipal Money Market Portfolio .35% of first $250 million of net assets;
.30% of next $250 million of net assets;
.25% of net assets in excess of $500 million.
</TABLE>
BIMC may, at its discretion, voluntarily waive all or any portion of its
advisory fee for 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:
<TABLE>
<CAPTION>
GROSS NET
ADVISORY ADVISORY
FEE WAIVER FEE
--------- ----------- ---------
<S> <C> <C> <C>
Municipal Money Market Portfolio $434,321 $(358,156) $76,165
</TABLE>
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 $26,002 for
the Municipal Money Market Portfolio.
12
<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 the portfolio. PFPC
Inc. ("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>
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
======= ======= =======
</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>
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, and Janney
Montgomery Scott Class.
For the six months ended February 29, 2000, distribution fees for each
class were as follows:
DISTRIBUTION
FEE
------------
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
========
13
<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:
MUNICIPAL 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 ................ $ 131,724,543 $ 471,166,299
Cash Preservation Class ...... 32,443 178,689
Janney Montgomery
Scott Class ................ 225,816,326 445,130,179
Principal Class .............. -- --
Sansom Street Class .......... -- --
Select Class ................. -- --
------------- -------------
Total Shares Purchased ...... 357,573,312 916,475,167
Shares issued in
reinvestment of dividends:
Bedford Class ................ 1,855,138 3,895,215
Cash Preservation Class ...... 2,822 3,980
Janney Montgomery
Scott Class ................ 1,534,459 2,871,349
Principal Class .............. -- --
Sansom Street Class .......... -- --
Select Class ................. -- --
------------- -------------
Total Shares Reinvested ..... 3,392,419 6,770,544
Shares repurchased:
Bedford Class ................ (153,443,382) (472,416,562)
Cash Preservation Class ...... (29,929) (60,295)
Janney Montgomery
Scott Class ................ (225,588,011) (430,908,204)
Principal Class .............. -- --
Sansom Street Class .......... -- --
Select Class ................. -- --
------------- -------------
Total Shares Repurchased .... (379,061,322) (903,385,061)
------------- -------------
Net increase (decrease) ......... $ (18,095,591) $ 19,860,650
============= =============
Bedford Shares authorized ....... 500,000,000 500,000,000
============= =============
14
<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:
MUNICIPAL
MONEY MARKET
PORTFOLIO
------------
Capital paid-in $246,954,810
Accumulated net realized gain (loss) on investments (18,937)
------------
$246,935,873
============
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.
The Municipal Money Market Portfolio had $55,760 of capital loss carryover
that expired in 1999.
15
<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 two other classes of shares representing interest
in the Municipal Money Market Portfolio: Janney Montgomery Scott and Cash
Preservation. 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
Preservations Family. The financial highlights of the Janney Montgomery Scott
class is as follows:
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) 2.49% 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 Municiapl 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, respectivley.
(b) Annualized.
(c) Financial Highlights relate solely to the Bedford Class of shares within
each portfolio.
(d) Non-Annualized.
</FN>
</TABLE>
16
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