-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, LTU6kpEGQ7Nl+kiayZtGpBIGITkCKlpy+CtMM+/B+10m7tvtJoJYMigYiL1bWQiX asub9IzKSwBWNGIrvXHApw== 0000935069-95-000018.txt : 19950502 0000935069-95-000018.hdr.sgml : 19950502 ACCESSION NUMBER: 0000935069-95-000018 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19950228 FILED AS OF DATE: 19950501 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: RBB FUND INC CENTRAL INDEX KEY: 0000831114 STANDARD INDUSTRIAL CLASSIFICATION: [] FISCAL YEAR END: 0831 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-05518 FILM NUMBER: 95533284 BUSINESS ADDRESS: STREET 1: 400 BELLEVUE PKWY STE 100 CITY: WILMINGTON STATE: DE ZIP: 19809 BUSINESS PHONE: 3027911791 MAIL ADDRESS: STREET 1: 103 BELLEVUE PKWY STREET 2: SUITE 152 CITY: WILMINGTON STATE: DE ZIP: 19809 FORMER COMPANY: FORMER CONFORMED NAME: FUND INC /DE/ DATE OF NAME CHANGE: 19600201 N-30D 1 BRADFORD GOVERNMENT OBLIGATIONS MONEY MARKET PORTFOLIO [Logo] Semi-Annual Report February 28, 1995 Bradford Government Obligations Money Market Shares The RBB Fund, Inc. Semi-Annual Investment Adviser's Report Last year, the fixed income markets were hard hit by rising interest rates and derivative-related losses. The first quarter of 1995 got off to an inauspicious start with another increase in short-term interest rates, the financial crisis in Mexico, and the decline in the dollar. One area that does appear to be experiencing a trend change is the pace of business activity. In the fourth quarter of last year, the economy grew by a revised 4.6%, pushing the annual rate to 4.0%, the strongest showing in ten years. Estimates for the first quarter average around 3%, based on signs of lower consumer spending, declining auto sales and a softer housing market. In recent congressional testimony, Fed Chairman Greenspan indicated that the FOMC expects the economy to expand at a 2%-3% rate in 1995. Greenspan even used the word "ease" in his recent testimony, causing the markets to rally strongly, but temporarily, on the belief that the year long rise in interest rates was about over. The Fed also has reason to be pleased with the inflation numbers. The fourth quarter GDP report revealed prices advanced only 1.3%, versus 1.9% in the previous quarter. For the year, consumer prices were up 2.7%, exactly the same as in 1993. The FOMC is estimating that consumer prices will average 3.0%-3.5% in 1995. Short-term interest rates continued their upward climb during the last two quarters. The Federal Reserve tightened policy twice, in November and February, for a total of 125 basis points, bringing the federal funds rate to 6.00%. Fourth quarter economic reports continued to suggest that business was expanding, and that further Fed action was likely in the new year. On February 1st, the FOMC voted to increase the federal funds target and discount rate 50 basis points to 6.00% and 5.25%, respectively. Although this was the first interest rate hike of 1995, market expectations that it would also be the last ignited a strong rally that flattened the yield curve. Three and six-month Treasury bill yields fell to 5.83% and 6.11%, respectively, while three and six-month LIBORs decreased to 6.19% and 6.38%, respectively. PNC Institutional Management Corporation (Please dial toll-free 800-533-7719 for questions regarding your account or contact your broker.) 1 Bradford Government Obligations Money Market Shares The RBB Fund, Inc. Government Obligations Money Market Portfolio Statement of Net Assets February 28, 1995 (Unaudited)
Par (000) Value ---------- -------------- Agency Obligations--79.8% Federal Farm Credit Bank Discount Notes 4.93% 03/01/1995 $10,000 $ 10,000,000 4.94% 03/06/1995 6,000 5,995,883 5.30% 03/21/1995 3,000 2,991,167 6.00% 04/06/1995 6,360 6,321,840 5.57% 04/19/1995 5,000 4,962,093 5.84% 05/17/1995 5,000 4,937,544 Federal Home Loan Bank Floating Rate Notes (dagger) 6.03% 03/01/1995 10,000 9,997,672 6.09% 05/02/1995 10,000 9,993,540 Federal Home Loan Bank Notes 6.79% 02/15/1996 5,000 5,004,993 Federal Home Loan Mortgage Corp. Discount Notes 5.88% 03/13/1995 15,000 14,970,625 Federal National Mortgage Association Discount Notes 6.41% 06/12/1995 5,000 4,908,301 Federal National Mortgage Association Floating Rate Notes (dagger) 6.18% 03/07/1995 10,000 10,000,000 Student Loan Marketing Association Floating Rate Notes (dagger) 6.21% 03/07/1995 10,000 10,002,482 6.26% 03/07/1995 10,000 10,006,284 6.17% 03/07/1995 15,000 15,000,000 6.10% 03/07/1995 9,000 8,997,904 6.11% 03/07/1995 5,000 5,000,000 Tennessee Valley Authority Discount Notes 5.92% 04/05/1995 12,000 11,930,933 ------------- TOTAL AGENCY OBLIGATIONS (Cost $151,021,261) 151,021,261 ------------- Repurchase Agreements--20.0% Lehman Government Securities Inc. 6.13% 03/01/1995 $17,967 $ 17,967,000 (Agreement dated 02/28/95 to be repurchased at $17,970,059, collateralized by $20,502,815 Government National Mortgage Assoc. 6.00% to 9.00% due 10/15/08 to 10/15/34. Market value of collateral is $18,504,966.) Merrill Lynch & Co. 6.15% 03/01/1995 20,000 20,000,000 (Agreement dated 02/28/95 to be repurchased at $20,003,417, collateralized by $36,726,954 Federal National Mortgage Assoc. 5.50% to 10.50% due 12/01/99 to 09/01/28. Market value of collateral is $20,400,346.) ------------- TOTAL REPURCHASE AGREEMENTS (Cost $37,967,000) 37,967,000 ------------- TOTAL INVESTMENTS AT VALUE -- 99.8% (Cost $188,988,261*) 188,988,261 OTHER ASSETS IN EXCESS OF LIABILITIES -- 0.2% 325,290 ------------- NET ASSETS (Applicable to 151,283,654 Bedford Shares, 38,036,313 Bradford Shares and 800 other shares) -- 100.0% $189,313,551 ============= NET ASSET VALUE, offering and redemption price per share ($189,313,551 / 189,320,767) $1.00 ====== * Also cost for Federal income tax purposes. (dagger) Variable Rate Obligations -- The interest rate is the rate as of February 28, 1995 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. 2 Bradford Government Obligations Money Market Shares The RBB Fund, Inc. Government Obligations Money Market Portfolio
Statement of Operations For the Six Months Ended February 28, 1995 (Unaudited) Investment Income Interest $5,432,035 ------------ Expenses Investment advisory fees 450,457 Distribution fees 575,828 Directors' fees 1,007 Custodian fees 23,002 Transfer agent fees 35,100 Legal fees 4,714 Audit fees 5,661 Registration fees 18,561 Amortized expense 1,273 Insurance expense 2,737 Printing expense 21,610 Miscellaneous 10 ------------ 1,139,960 Less fees waived (164,696) ------------ TOTAL EXPENSES 975,264 ------------ NET INVESTMENT INCOME 4,456,771 ------------ REALIZED GAIN ON INVESTMENTS 1,250 ------------ NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $4,458,021 ============
Statement of Changes in Net Assets For the For the Six Months Ended Year Ended February 28, 1995 August 31, 1994 ------------------- ---------------- (Unaudited) Decrease in net assets: Operations: Net investment income $ 4,456,771 $ 6,187,200 Net gain on investments 1,250 23,663 -------------- -------------- Net increase in net assets resulting from operations 4,458,021 6,210,863 -------------- -------------- Dividends to shareholders from net investment income: Bedford shares ($.0222 and $.0270 respectively, per share) (3,535,352) (5,073,158) Bradford shares ($.0222 and $.0270, respectively, per share) (921,419) (1,114,042) -------------- -------------- Total dividends to shareholders (4,456,771) (6,187,200) -------------- -------------- Net capital share transactions (16,838,706) (58,137,875) -------------- -------------- Total decrease in net assets (16,837,456) (58,114,212) Net Assets: Beginning of period 206,151,007 264,265,219 -------------- -------------- End of period $189,313,551 $206,151,007 ============== ==============
See Accompanying Notes to Financial Statements. 3 Bradford Government Obligations Money Market Shares The RBB Fund, Inc. Government Obligations Money Market Portfolio Financial Highlights (c) (For a Share Outstanding Throughout each Period)
For the Period For the For the For the January 10, 1992 Six Months Year Year (Commencement of Ended Ended Ended Operations) to February 28,1995 August 31, 1994 August 31, 1993 August 31, 1992 ----------------- ---------------- ---------------- --------------- (Unaudited) Net asset value, beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 ------------ ------------ ------------ ------------ Income from investment operations: Net investment income 0.0222 0.0270 0.0231 0.0208 Net gains on securities (both realized and unrealized) -- -- -- 0.0009 ------------ ------------ ------------ ------------ Total from investment operations 0.0222 0.0270 0.0231 0.0217 ------------ ------------ ------------ ------------ Less distributions Dividends (from net investment income) (0.0222) (0.0270) (0.0231) (0.0208) Distributions (from capital gains) -- -- -- (0.0009) ------------ ------------ ------------ ------------ Total distributions (0.0222) (0.0270) (0.0231) (0.0217) ------------ ------------ ------------ ------------ Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 ============ ============ ============ ============ Total Return 4.56%(b) 2.73% 2.33% 3.42%(b) Ratios /Supplemental Data Net assets, end of period $38,034,982 $39,732,414 $50,522,979 $42,476,965 Ratios of expenses to average net assets .975%(a)(b) .975%(a) .975%(a) .975%(a)(b) Ratios of net investment income to average net assets 4.47%(b) 2.70% 2.31% 3.23%(b) (a) Without the waiver of advisory fees and without the reimbursement of certain operating expenses, the ratios of expenses to average net assets would have been 1.14% annualized for the six months ended February 28, 1995, 1.18% and 1.18% for the years ended August 31, 1994 and 1993, respectively, and 1.15% annualized for the period ended 1992. (b) Annualized. (c) Financial Highlights relate solely to the Bradford Class of shares within the portfolio.
See Accompanying Notes to Financial Statements. 4 Bradford Government Obligations Money Market Shares The RBB Fund, Inc. Government Obligations Money Market Portfolio Notes to Financial Statements February 28, 1995 (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 10.7 billion shares are currently classified into sixty-two classes. Each class represents an interest in one of eighteen investment portfolios of the Fund, sixteen of which are currently in operation. The classes have been grouped into sixteen separate "families", eight of which have begun investment operations: the RBB Family, the BEA Family, the Sansom Street Family, the Bedford Family, the Cash Preservation Family, the Laffer/Canto Family, the Warburg Pincus Family and the Bradford Family. The Bradford Government Obligations Money Market Shares represents an interest in the Government Obligations Money Market Portfolio, which is covered by 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. D) FEDERAL INCOME TAXES -- No provision is made for Federal taxes as it is the Fund's intention to have the portfolio to continue to qualify for and elect the tax treatment applicable to regulated investment companies under the Internal Revenue Code and make the requisite distributions to its shareholders which will be sufficient to relieve it from Federal income and excise taxes. E) ORGANIZATION COSTS -- Costs incurred by the Fund in connection with its organization and initial registration and public offering of shares have been deferred by the Fund. Organization costs are being amortized on a straight-line basis for a five-year period which began upon the commencement of the Fund. F) 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. 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. 5 Note 2. Transactions with Affiliates and Related Parties Pursuant to Investment Advisory Agreements, PNC Institutional Management Corporation ("PIMC"), a wholly owned subsidiary of PNC Bank, National Association ("PNC Bank"), serves as investment advisor for the portfolio described herein. PNC Bank serves as the sub-advisor for the Government Obligations Money Market Portfolio. For its advisory services, PIMC is entitled to receive the following fees, computed daily and payable monthly based on the portfolio's average daily net assets: .45% of first $250 million of net assets; .40% of next $250 million of net assets; .35% of net assets in excess of $500 million. PIMC may, at its discretion, voluntarily waive all or any portion of its advisory fee for this portfolio. For each class of shares within this portfolio, the net advisory fee charged to each class is the same on a relative basis. For the six months ended February 28, 1995, advisory fees and waivers for the investment portfolio were as follows: Gross Net Advisory Advisory Fee Waiver Fee -------------- -------------- -------------- $450,457 $(164,696) $285,761 PNC Bank, as sub-advisor, receives a fee directly from PIMC, not the portfolio. In addition, PNC Bank serves as custodian for each of the Fund's portfolios. PFPC Inc. ("PFPC"), an indirect wholly owned subsidiary of PNC Bank Corp., serves as each class's transfer and dividend disbursing agent. For the six months ended February 28, 1995, transfer agency fees for each class of shares within the investment portfolio were as follows: Transfer Agency Fee ------------- Bedford Class $ 29,700 Bradford Class 5,400 ------------- Total $ 35,100 ============= 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, and has entered into Distribution Contracts with Counsellors Securities Inc. ("Counsellors"), which provide for each class to make monthly payments, based on average net assets, to Counsellors of up to .65% on an annualized basis for the Bedford and Bradford Classes and up to .20% on an annualized basis for the Sansom Street Class. 6 Note 2. Transactions with Affiliates and Related Parties (continued) For the six months ended February 28, 1995, distribution fees for each class were as follows: Distribution Fee -------------- Bedford Class $ 461,453 Bradford Class 114,375 ------------- Total $ 575,828 ============= 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. No such payments were necessary for the six months ended February 28, 1995. Note 3. Capital Shares Transactions in capital shares (at $1 per capital share) for each period were as follows:
For the For the Six Months Ended Year Ended February 28, 1995 August 31, 1994 ---------------- -------------- (Unaudited) Value Value ---------------- -------------- Shares sold: Bedford Class $ 218,457,203 $ 490,275,372 Bradford Class 89,612,948 160,520,309 Shares issued in reinvestment of dividends: Bedford Class 3,225,155 4,963,642 Bradford Class 928,944 1,078,122 Shares repurchased: Bedford Class (236,823,381) (542,581,763) Bradford Class (92,239,575) (172,393,557) -------------- -------------- Net decrease $ (16,838,706) $ (58,137,875) ============== ============== Bradford Shares authorized 500,000,000 500,000,000 ============== ==============
7 Note 4. Net Assets At February 28 1995, net assets consisted of the following: Capital paid-in: Bedford Class $ 151,283,654 Bradford Class 38,036,313 Other Classes 800 Accumulated net realized loss on investments: Bedford Class (5,885) Bradford Class (1,331) ------------- $ 189,313,551 ============= 8 Note 5. Other Financial Highlights The Fund currently offers one other class of shares representing an interest in the Government Obligations Money Market Portfolio: Bedford. Each class is marketed to different types of investors. The financial highlights are as follows:
The Bedford Family Government Obligations Money Market Portfolio -------------------------------------------------------------------------------------- For the For the For the For the For the Six Months Ended Year Ended Year Ended Year Ended Year Ended February 28, 1995 August 31, 1994 August 31, 1993 August 31, 1992 August 31, 1991 ------------------ ---------------- ---------------- ---------------- --------------- (Unaudited) Net asset value, beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 -------------- -------------- -------------- -------------- -------------- Income from investment operations: Net investment income .0222 .0270 .0231 .0375 .0604 Net gains on securities (both realized and unrealized) -- -- -- .0009 -- -------------- -------------- -------------- -------------- -------------- Total from investment operations .0222 .0270 .0231 .0384 .0604 -------------- -------------- -------------- -------------- -------------- Less distributions Dividends (from net investment income) (.0222) (.0270) (.0231) (.0375) (.0604) Distributions (from capital gains) -- -- -- (.0009) -- -------------- -------------- -------------- -------------- -------------- Total distributions (.0222) (.0270) (.0231) (.0384) (.0604) -------------- -------------- -------------- -------------- -------------- Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 ============== ============== ============== ============== ============== Total Return 4.56%(b) 2.73% 2.33% 3.91% 6.21% Ratios /Supplemental Data Net assets, end of period $151,277,769 $166,417,793 $213,741,440 $225,100,981 $368,898,941 Ratios of expenses to average net assets .975%(a)(b) .975%(a) .975%(a) .975%(a) .95%(a) Ratios of net investment income to average net assets 4.47%(b) 2.70% 2.31% 3.75% 6.04% (a) Without the waiver of advisory fees and without the reimbursement of certain operating expenses, the ratios of expenses to average net assets for Government Obligations Money Market Portfolio would have been 1.14% annualized for the six months ended February 28, 1995, 1.17%, 1.18%, 1.12% and 1.13% for the years ended August 31, 1994, 1993, 1992 and 1991, respectively. (b) Annualized.
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