-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, NOb+uaaxR7VHOjszojjzCBFqSUDmbIXw9WVjKGdah+WodUYZ0Um7GoWNUp9oXDpG dZ1guN/N1coUMzxVgsuuBw== 0000935069-96-000064.txt : 19960506 0000935069-96-000064.hdr.sgml : 19960506 ACCESSION NUMBER: 0000935069-96-000064 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19960229 FILED AS OF DATE: 19960503 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: 96555973 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 THE ROBERTSON STEPHENS SEMI-ANNUAL REPORT ================================= ROBERTSON STEPHENS MONEY MARKET PORTFOLIO Semi-Annual Report February 29, 1996 ================================= THE SANSOM STREET FAMILY THE RBB FUND, INC. SEMI-ANNUAL INVESTMENT ADVISER'S REPORT Investor sentiment reversed course during the last few months of 1995. In the second half of the year, investors believed that the Federal Reserve had successfully engineered a "soft landing" and expected President Clinton and Congress to agree on a plan that would balance the federal budget by 2002. As 1996 began, however, fears of recession began to re-emerge and the budget negotiations, which had become very intense in December and January, all but disappeared as politics and state primaries took center stage. The lack of economic data due to the recently ended federal government shutdown has added to the difficulty of assessing the current economic environment.It is clear, however, that the economy is not robust. While retail sales over the past three months suggest that real consumer spending should be growing at a 2.0-2.5% rate, the manufacturing economy continues to be weak, as evidenced by the National Association of Purchasing Managers' reading below 50. But even this indicator has stabilized, suggesting that inventory reduction programs have run their course. Nonetheless, business confidence remains high and firms continue to invest in producer durable goods such as computers and machine tools. Available evidence further points to continued strength in exports, which are benefitting from the earlier low level of the dollar and the high quality of U.S.-produced goods. The federal government remains the weak link in a modest growth forecast and the budget impasse only exacerbates the effect on U.S. output as the government buys fewer goods and services. The nation's weak economic conditions fostered a declining interest rate environment for the six-month period ended February 29, 1996. During this period, the Federal Reserve reduced the federal funds rate to 5.25% from 5.75% and the discount rate to 5.00% from 5.25%. Volatile market conditions dramatically altered the shape of the yield curve (3-months to 30-years) from a spread of 117 points on September 1, 1995 to a steepening bias of 145 basis points on February 29, 1996. As the treasury market rallied, lowering the yield on the long bond to 6%, yield spreads on mortgages widened initially but by February 29, spreads narrowed below their six-month averages. Overall, this sector underperformed as prepayments and duration concerns increased selling pressure. The corporate sector realized excellent returns as heavy investor demand absorbed all new issuance plus strengthening credit quality forced yield spreads to tighten considerably. Taking all the sources of final demand together, modest economic growth is still the most likely forecast -- 2.5% real GDP growth in 1996, with the first half of the year being relatively weak and the second half of the year strengthening. Even this modest growth is going to require some help from the Fed. The Fed's two federal funds rate cuts of 25 basis points each in 1995 were not enough. With the dramatic fall in long-term interest rates, the flattening of the yield curve through 1995 is a threat to the economy and raises the specter of recession. Some steepening is necessary, which would indicate the addition of liquidity to the system. We expect that steepening to come from a combination of lower short-term interest rates and slightly higher long-term rates. Tax-exempt money market funds experienced record growth during the six months ended February 29, 1996. Assets hit new all-time highs in each month and ended the period at $134.7 billion, up $19.6 billion or 17% from last year. This surge in assets can be attributed to uncertainty over changes to the tax code and flat tax proposals, the Washington budget impasse, new T+3 settlement rule changes and an inverted yield curve. Investor concerns about credit quality created enormous demand for high quality paper during the period. The pressure on the Japanese banking system, as well as the ratings downgrades on several Japanese banks, widened the spreads between Japanese letters of credit and European or domestic letters of credit to over 30 basis points. Tax-free money fund yields trended upwards in the fourth quarter as supply increased. Yields hit a six-month peak at year-end due to seasonal window dressing pressures. Weaker than expected economic reports and a lack of supply caused yields to decline early in the new year. PNC Institutional Management Corporation (Please dial toll-free 800-430-9618 for questions regarding your account or contact your broker.) THE SANSOM STREET FAMILY THE RBB FUND, INC. MONEY MARKET PORTFOLIO STATEMENT OF NET ASSETS FEBRUARY 29, 1996 (UNAUDITED) PAR (000) VALUE ------------ ------------ AGENCY OBLIGATIONS--2.5% Student Loan Marketing Association 5.180% 03/05/96 ............................. $ 20,000 $ 20,000,000 5.190% 03/05/96 ............................. 10,000 10,000,000 5.200% 03/05/96 ............................. 25,000 24,991,857 ------------ TOTAL AGENCY OBLIGATIONS (Cost $54,991,857) ...................... 54,991,857 ------------ CERTIFICATES OF DEPOSIT--8.0% DOMESTIC CERTIFICATES OF DEPOSIT--1.4% Society Nat Bank-Cleveland 6.400% 04/25/96 ............................. 10,000 10,012,889 Chase Manhattan Bank USA N.A. [A-1] 5.400% 06/13/96 ............................. 20,000 20,000,000 ------------ 30,012,889 ------------ YANKEE DOLLAR CERTIFICATES OF DEPOSIT--6.6% Deutsche Bank 5.420% 04/05/96 ............................. 25,000 24,999,902 Societe Generale 5.450% 04/04/96 ............................. 70,000 70,000,000 5.720% 03/01/96 ............................. 25,000 25,000,000 Westpac Banking Corp. 5.850% 06/04/96 ............................. 25,000 25,000,000 ------------ 144,999,902 ------------ TOTAL CERTIFICATES OF DEPOSIT (Cost $175,012,791) ..................... 175,012,791 ------------ BANK NOTES--2.3% First National Bank of Boston 5.400% 05/07/96 ............................. 25,000 25,000,000 LaSalle National Bank 5.160% 05/06/96 ............................. 25,000 25,000,000 ------------ TOTAL BANK NOTES (Cost $50,000,000) ...................... 50,000,000 ------------ COMMERCIAL PAPER--50.4% BANKS--8.5% Lehman Brothers Holdings Inc. 5.710% 03/07/96 ............................. 25,000 24,976,208 National City Corp. 5.450% 04/01/96 ............................. 30,000 29,859,208 PAR (000) VALUE ------------ ------------ BANKS--(CONTINUED) National & Provincial Building Society 5.670% 03/04/96 ........................... $ 35,000 $ 34,983,463 NationsBank Corp. 5.370% 04/12/96 ........................... 40,000 39,749,400 Svenska Handelsbanken Inc. 5.130% 05/06/96 ........................... 40,000 39,623,800 Chemical Banking Corp. 5.610% 03/15/96 ........................... 15,000 14,967,275 ------------ 184,159,354 ------------ FINANCE LESSORS--2.3% General Electric Capital Corp. 5.600% 03/28/96 ........................... 50,000 49,790,000 ------------ FINANCE SERVICES--5.9% Countrywide Funding Corp. 5.150% 05/09/96 ........................... 50,000 49,506,458 Whirlpool Financial Corp. 5.120% 05/10/96 ........................... 30,000 29,701,334 5.100% 05/14/96 ........................... 50,000 49,475,833 ------------ 128,683,625 ------------ GLASS, GLASSWARE, PRESSED OR BLOWN--1.1% Newell Co. 5.250% 03/18/96 ........................... 25,000 24,938,021 ------------ HOUSEHOLD APPLIANCES--1.0% Whirlpool Corp. 5.100% 05/14/96 ........................... 22,000 21,769,367 ------------ NATURAL GAS TRANSMISSION--1.2% Southern California Gas 5.560% 05/03/96 ........................... 26,155 25,900,512 ------------ PERSONAL CREDIT INSTITUTIONS--6.0% BMW US Capital Corp. 5.670% 03/01/96 ........................... 25,000 25,000,000 5.270% 03/21/96 ........................... 50,000 49,853,611 General Motors Acceptance Corp. 5.620% 03/25/96 ........................... 15,000 14,943,800 Associates Corp. of North America 5.150% 06/17/96 ........................... 42,000 41,351,100 ------------ 131,148,511 ------------ 2 THE SANSOM STREET FAMILY THE RBB FUND, INC. MONEY MARKET PORTFOLIO STATEMENT OF NET ASSETS (CONTINUED) FEBRUARY 29, 1996 (UNAUDITED) PAR (000) VALUE ---------- ------------ PHARMACEUTICAL PREPARATIONS--2.6% American Home Products Corp. 5.110% 05/10/96 ........................... $ 25,000 $ 24,751,597 Glaxo Wellcome PLC 5.140% 05/10/96 ........................... 32,000 31,680,178 -------------- 56,431,775 -------------- PLASTIC MAIL, SYNTHETIC RESIN/ RUBBER CELLULOSE - NO GLASS--1.1% Du Pont (E.I.) de Nemours & Co. 5.580% 07/18/96 ........................... 25,000 24,461,375 -------------- SECURITY BROKERS & DEALERS--5.7% Bear Stearns & Co., Inc. 5.550% 07/22/96 ........................... 10,000 9,779,542 Goldman Sachs Group L.P. 5.600% 04/09/96 ........................... 40,000 39,757,333 Morgan Stanley Group, Inc. 5.380% 04/08/96 ........................... 75,000 74,574,083 -------------- 124,110,958 -------------- SHORT-TERM BUSINESS CREDIT INSTITUTIONS--13.8% American Express Credit Corp. 5.390% 04/30/96 ........................... 50,000 49,550,833 CXC, Inc. 5.600% 03/05/96 ........................... 25,000 24,984,444 5.130% 06/07/96 ........................... 25,000 24,650,875 Corporate Asset Funding, Inc. 5.330% 04/29/96 ........................... 40,000 39,650,589 Corporate Receivables Corp. 5.320% 04/12/96 ........................... 50,000 49,689,666 5.150% 05/08/96 ........................... 48,000 47,533,067 Sears Roebuck Acceptance Corp. 5.620% 03/04/96 ........................... 25,000 24,988,292 5.620% 03/08/96 ........................... 40,000 39,956,289 -------------- 301,004,055 -------------- TELEPHONE COMMUNICATIONS--1.2% GTE Corp. 5.300% 03/12/96 ........................... 25,000 24,959,514 -------------- TOTAL COMMERCIAL PAPER (Cost $1,097,357,067) ................. 1,097,357,067 -------------- PAR (000) VALUE -------- ------------ MUNICIPAL BONDS--5.4% CALIFORNIA--1.0% Adventist Health Systems West Series 1988 (First Interstate Bank of California LOC)(DAGGER) 5.450% 03/06/96 ............................. $12,925 $12,925,000 San Bernardino County California Certificate of Participation County Center Refinancing Project, Series 1995(DAGGER) 5.350% 03/07/96 ............................. 7,900 7,900,000 ----------- 20,825,000 ----------- GEORGIA--0.1% Richmond County Georgia IDA (Monsanto Co. Project) VRDN(DAGGER) 6.270% 06/01/96 ............................. 1,300 1,300,000 ----------- ILLINOIS--0.8% Barton Healthcare Taxable Revenue Bonds Series 1995 VRDN (American Nation Bank LOC)(DAGGER) 5.450% 03/06/96 ............................. 12,875 12,875,000 Baylis Group Partnership Weekly Demand Taxable Bond Series 1992 VRDN (Societe Generale LOC)(DAGGER) 5.600% 03/06/96 ............................. 600 600,000 Illinois Health Facilities Authority Convertible/ VRDN (The Streeterville Corp. Project) Series 1993-B (First National Bank of Chicago LOC)(DAGGER) 5.400% 03/06/96 ............................. 4,400 4,400,000 ----------- 17,875,000 ----------- KENTUCKY--0.2% Boone County Taxable IDR Refunding Bonds (Square D Company Project) Series 1994-B (Credit Lyonnais LOC) VRDN(DAGGER) 5.400% 03/06/96 ............................. 4,200 4,200,000 ----------- See Accompanying Notes to Financial Statements. 3 THE SANSOM STREET FAMILY THE RBB FUND, INC. MONEY MARKET PORTFOLIO STATEMENT OF NET ASSETS (CONTINUED) FEBRUARY 29, 1996 (UNAUDITED) PAR (000) VALUE -------- ------------ MINNESOTA--0.2% Fairview Hospital And Healthcare Services Taxable ADJ Convertible Extendable Securities Series 1994 (MBIA Insured) VRDN(DAGGER) 5.350% 03/07/96 ............................. $ 5,100 $ 5,100,000 ----------- MISSISSIPPI--1.0% Hinds County, Mississippi IDRB VRDN(DAGGER) 5.450% 03/06/96 ............................. 3,690 3,690,000 Mississippi Business Finance Corp. Taxable IDR Bonds (Bryan Foods, Inc. Project) Series 1994 (Sara Lee Corporation Guaranty) VRDN(DAGGER) 5.350% 03/06/96 ............................. 14,000 14,000,000 Mississippi Business Finance Corp. Taxable IDRB VRDN(DAGGER) 5.450% 03/07/96 ............................. 3,500 3,500,000 ----------- 21,190,000 ----------- NEW YORK--0.8% Health Insurance Plan of Greater NY ADJ/Convertible Extendable Securities Series 1990 B-1 (Morgan Guaranty Trust Co. LOC) VRDN(DAGGER) 5.400% 03/06/96 ............................. 5,500 5,500,000 Health Insurance Plan of Greater NY ADJ/Convertible Extendable Securities VRDN(DAGGER) 5.400% 03/06/96 ............................. 6,800 6,800,000 New York City 5.340% 08/21/96 ............................. 5,000 5,000,000 ----------- 17,300,000 ----------- NORTH CAROLINA--0.6% Community Health Systems, Inc. Taxable First National Bank of North Carolina Series 1991-A(DAGGER) 5.650% 03/06/96 ............................. 400 400,000 City of Ashville North Carolina Tax Corp.(DAGGER) 5.350% 03/06/96 ............................. 13,500 13,500,000 ----------- 13,900,000 ----------- PAR (000) VALUE -------- ------------ TEXAS--0.7% South Central Texas Industrial Development Corp. Taxable IDR Bonds (Rohr Industries Project) Series 1990 (Citibank N.A. LOC) VRDN(DAGGER) 5.450% 03/06/96 ........................... $14,800 $ 14,800,000 ------------ TOTAL MUNICIPAL BONDS (Cost $116,490,000) ................... 116,490,000 ------------ REVENUE ANTICIPATION NOTES--0.5% MANDATORY PUT BONDS--0.5% De Kalb County Georgia Development Authority (Emory U.)(DAGGER) 5.400% 03/06/96 ........................... 10,100 10,100,000 ------------ TOTAL REVENUE ANTICIPATION NOTES (Cost $10,100,000) .................... 10,100,000 ------------ CORPORATE OBLIGATIONS--22.1% BANKS--6.7% Citicorp 9.390% 05/29/96 ........................... 5,000 5,040,993 First Union National Bank of North Carolina(DAGGER) 5.310% 03/01/96 ........................... 40,000 40,000,000 Morgan Guaranty Trust(DAGGER) 6.200% 03/01/96 ........................... 50,000 49,988,381 Norwest Corp.(DAGGER) 5.310% 03/28/96 ........................... 50,000 50,000,000 ------------ 145,029,374 ------------ FINANCE LESSORS--2.3% IBM Credit Corp. 5.880% 08/08/96 ........................... 25,000 24,999,017 6.000% 08/28/96 ........................... 25,000 24,999,016 ------------ 49,998,033 ------------ MAJOR REGIONAL BANK--0.2% Society Corp. 4.755% 03/11/96 ........................... 3,300 3,298,487 ------------ See Accompanying Notes to Financial Statements. 4 THE SANSOM STREET FAMILY THE RBB FUND, INC. MONEY MARKET PORTFOLIO STATEMENT OF NET ASSETS (CONTINUED) FEBRUARY 29, 1996 (UNAUDITED) PAR (000) VALUE -------- ------------ PERSONAL CREDIT INSTITUTIONS--1.1% General Motors Acceptance Corp. 6.460% 03/01/96(DAGGER) ..................... $ 5,000 $ 4,998,402 8.250% 08/01/96 ............................. 5,000 5,047,535 7.900% 03/12/97 ............................. 14,750 15,142,055 ------------ 25,187,992 ------------ SECURITY BROKERS & DEALERS--10.8% Bear Stearns & Co., Inc.(DAGGER) 5.610% 03/01/96 ............................. 20,000 20,000,000 5.640% 03/01/96 ............................. 50,000 50,000,000 Goldman Sachs Group, LP(DAGGER) 5.440% 05/06/96 ............................. 53,000 53,000,000 Lehman Brothers Holdings Inc.(DAGGER) 5.910% 03/06/96 ............................. 50,000 50,000,000 Merrill Lynch & Co. 6.440% 05/15/96 ............................. 15,000 15,000,000 4.750% 06/24/96 ............................. 9,135 9,102,270 6.050% 08/19/96 ............................. 15,000 15,000,000 5.120% 02/27/97 ............................. 25,000 24,995,041 ------------ 237,097,311 ------------ SERVICES-EQUIPMENT RENTING & LEASING--1.0% International Lease and Finance Corp. 6.630% 06/01/96 ............................. 15,000 15,036,250 4.750% 07/15/96 ............................. 6,000 5,984,509 ------------ 21,020,759 ------------ TOTAL CORPORATE OBLIGATIONS (Cost $481,631,956) ..................... 481,631,956 ------------ TIME DEPOSITS--2.8% Bank of Hawaii 5.690% 03/01/96 ............................. 50,000 50,000,000 First Union National Bank 5.750% 03/01/96 ............................. 11,300 11,300,000 ------------ TOTAL TIME DEPOSITS (Cost $61,300,000) ...................... 61,300,000 ------------ PAR (000) VALUE -------- ------------ REPURCHASE AGREEMENTS--6.4% Goldman Sachs & Co. (Agreement dated 02/29/96 to be repurchased at $100,015,139, collateralized by $54,773,415 Federal National Mortgage Assoc.6.361% due 11/01/32 and $54,484,920 Federal Mortgage Assoc. Collateral 8.375% due 10/01/24. Market value of collateral is $102,433,103) 5.450% 03/01/96 ................... $100,000 $100,000,000 Morgan Stanley & Co. (Agreement dated 02/29/96 to be repurchased at $40,006,055, collateralized by $48,127,005 Federal National Mortgage Assoc. Sinking Fund Notes 5.50% to 9.00% due 02/01/01 to 01/01/15. Market value of collateral is $40,749,363) 5.450% 03/01/96 ................... 40,000 40,000,000 ------------- TOTAL REPURCHASE AGREEMENTS (Cost $140,000,000) ........... 140,000,000 ------------- See Accompanying Notes to Financial Statements. 5 THE SANSOM STREET FAMILY THE RBB FUND, INC. MONEY MARKET PORTFOLIO STATEMENT OF NET ASSETS (CONCLUDED) FEBRUARY 29, 1996 (UNAUDITED) VALUE -------------- TOTAL INVESTMENTS AT VALUE--100.4% (Cost $2,186,883,671*) ................... $2,186,883,671 LIABILITIES IN EXCESS OF OTHER ASSETS--(0.4%) .................. (8,847,207) -------------- NETASSETS (Applicable to 1,112,410,124 Bedford shares, 232,617 Cash Preservation shares, 528,881,063 Janney Montgomery Scott shares, 57,931 RBB shares, 536,478,247 Sansom Street shares and 800 other shares)--100.0% ............ $2,178,036,464 ============== NET ASSET VALUE, offering and redemption price per share ($2,178,036,464 (DIVIDE) 2,178,060,782) .. $1.00 ===== * Also cost for Federal income tax purposes. (DAGGER) Variable Rate Obligations -- The interest rate shown is the rate as of February 29, 1996 and the maturity date shown is the longer of the next interest rate readjustment date or the date the principal amount shown can be recovered through demand. INVESTMENT ABBREVIATIONS VRDN ..................................................Variable Rate Demand Note LOC ............................................................Letter of Credit IDR ..............................................Industrial Development Revenue See Accompanying Notes to Financial Statements. 6 THE SANSOM STREET FAMILY THE RBB FUND, INC. MONEY MARKET PORTFOLIO STATEMENT OF OPERATIONS FOR THE SIX MONTHS ENDED FEBRUARY 29, 1996 (UNAUDITED) INVESTMENT INCOME Interest .............................................. $ 56,387,329 ------------ EXPENSES Investment advisory fees .............................. 3,571,794 Distribution fees ..................................... 4,341,873 Service organization fees ............................. 207,199 Directors' fees ....................................... 12,755 Custodian fees ........................................ 157,654 Transfer agent fees ................................... 1,376,180 Legal fees ............................................ 34,361 Audit fees ............................................ 33,544 Registration fees ..................................... 195,499 Insurance expense ..................................... 24,026 Printing expense ...................................... 213,857 Miscellaneous ......................................... 957 ------------ 10,169,699 Less fees waived ...................................... (1,766,060) Less expense reimbursement by advisor ................. (7,804) ------------ TOTAL EXPENSES ..................................... 8,395,835 ------------ NET INVESTMENT INCOME .................................... 47,991,494 ------------ REALIZED LOSS ON INVESTMENTS ............................. (3,792) ------------ NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS ....................................... $ 47,987,702 ============ STATEMENT OF CHANGES IN NET ASSETS FOR THE FOR THE SIX MONTHS ENDED YEAR ENDED FEBRUARY 29, 1996 AUGUST 31, 1995 ------------------ ---------------- (UNAUDITED) Increase (decrease) in net assets: Operations: Net investment income ............... $ 47,991,494 $ 64,913,329 Net loss on investments ............. (3,792) (18,463) -------------- -------------- Net increase in net assets resulting from operations 47,987,702 64,894,866 -------------- -------------- Distributions to shareholders: Dividends to shareholders from net investment income: Bedford shares ($.0242 and $.0486, respectively, per share) ......................... (24,450,386) (38,765,552) Cash Preservation shares ($.0243 and $.0487, respectively, per share) .......... (5,156) (11,336) Janney Montgomery Scott shares ($.0240 and $.0112, respectively, per share) .......... (11,766,024) (4,784,092) RBB shares ($.0240 and $.0482, respectively, per share) ........................ (1,329) (2,530) Sansom Street shares ($.0266 and $.0543, respectively, per share) ........................ (11,768,599) (21,349,819) -------------- -------------- Total distributions to shareholders .................... (47,991,494) (64,913,329) -------------- -------------- Net capital share transactions ........................ 356,668,568 736,630,198 -------------- -------------- Total increase in net assets ........... 356,664,776 736,611,735 Net Assets: Beginning of period ................. 1,821,371,688 1,084,759,953 -------------- -------------- End of period ....................... $2,178,036,464 $1,821,371,688 ============== ============== See Accompanying Notes to Financial Statements. 7 THE SANSOM STREET FAMILY THE RBB FUND, INC. FINANCIAL HIGHLIGHTS (B) (FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
MONEY MARKET PORTFOLIO --------------------------------------------------------------------------------------------- FOR THE SIX FOR THE FOR THE FOR THE FOR THE FOR THE MONTHS ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED FEBRUARY 29, AUGUST 31, AUGUST 31, AUGUST 31, AUGUST 31, AUGUST 31, 1996 1995 1994 1993 1992 1991 ---------------- -------------- -------------- -------------- -------------- -------------- (UNAUDITED) Net asset value, beginning of period ..................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 ------------ ------------ ------------ ------------ ------------ ------------ Income from investment operations: Net investment income .......... 0.0266 0.0543 0.0334 0.0304 0.0435 0.0684 Net gains on securities (both realized and unrealized) ................... -- -- -- -- .0007 -- ------------ ------------ ------------ ------------ ------------ ------------ Total from investment operations ............... 0.0266 0.0543 0.0334 0.0304 0.0442 0.0684 ------------ ------------ ------------ ------------ ------------ ------------ Less distributions: Dividends (from net investment income) .......... (0.0266) (0.0543) (0.0334) (0.0304) (0.0435) (0.0684) Distributions (from capital gains) .............. -- -- -- -- (0.0007) -- ------------ ------------ ------------ ------------ ------------ ------------ Total distributions ......... (0.0266) (0.0543) (0.0334) (0.0304) (0.0442) (0.0684) ------------ ------------ ------------ ------------ ------------ ------------ Net asset value, end of period ..................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 ============ ============ ============ ============ ============ ============ Total Return ..................... 5.49%(c) 5.57% 3.39% 3.08% 4.51% 7.06% Ratios/Supplemental Data Net assets, end of period ...... $536,472,125 $441,613,801 $373,745,178 $190,794,098 $228,078,764 $138,417,995 Ratios of expenses to average net assets .......... .48%(a)(c) .39%(a) .39%(a) .34%(a) .35%(a) .37%(a) Ratios of net investment income to average net assets ......... 5.34%(c) 5.43% 3.34% 3.04% 4.35% 6.84% (a) Without the waiver of advisory 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 .64% annualized for the six months ended February 29, 1996, .59%, .60%, .60%, .61% and .61% for the years ended August 31, 1995, 1994, 1993, 1992 and 1991, respectively. (b) Financial highlights relate solely to the Sansom Street Class of shares within the portfolio. (c) Annualized.
See Accompanying Notes to Financial Statements. 8 THE SANSOM STREET FAMILY THE RBB FUND, INC. NOTES TO FINANCIAL STATEMENTS FEBRUARY 29, 1996 (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 12.2 billion shares are currently classified into sixty-one classes. Each class represents an interest in one of seventeen investment portfolios of the Fund, fifteen of which are currently in operation. The classes have been grouped into fifteen 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 Janney Montgomery Money Funds, the Warburg Pincus Family, and the Bradford Family. The Sansom Street Family represents interests in the Money Market 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 as 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. 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. 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. 9 THE SANSOM STREET FAMILY THE RBB FUND, INC. NOTES TO FINANCIAL STATEMENTS (CONTINUED) FEBRUARY 29, 1996 (UNAUDITED) NOTE 2. TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES Pursuant to Investment Advisory Agreements, PNC Institutional Management Corporation ("PIMC"), a wholly owned subsidiary of PNC Asset Management Group, Inc., which is in turn 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 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 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, 1996, advisory fees and waivers for the investment portfolio were as follows: GROSS NET ADVISORY ADVISORY FEE WAIVER FEE ------------ ------------ ------------ $3,571,794 $(1,589,182) $1,982,612 PNC Bank, as sub-advisor, receives a fee directly from PIMC, not the portfolio. In addition, PNC Bank serves as custodian for 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. 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, 1996, transfer agency fees and waivers for each class of shares within the investment portfolio were as follows: GROSS NET TRANSFER AGENCY TRANSFER AGENCY FEE WAIVER FEE ---------------- ------------- --------------- Bedford Class $ 760,533 $ -- $ 760,533 Cash Preservation Class 4,608 (4,307) 301 Janney Montgomery Scott Class 481,520 (168,268) 313,252 RBB Class 4,400 (4,303) 97 Sansom Street Class 125,119 -- 125,119 ----------- ----------- ------------ Total $1,376,180 $(176,878) $1,199,302 =========== =========== ============ The Fund, on behalf of each class of shares within this 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, Cash Preservation, Janney Montgomery Scott and RBB Classes and up to .20% on an annualized basis for the Sansom Street Class. 10 THE SANSOM STREET FAMILY THE RBB FUND, INC. NOTES TO FINANCIAL STATEMENTS (CONTINUED) FEBRUARY 29, 1996 (UNAUDITED) NOTE 2. TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES (CONTINUED) For the six months ended February 29, 1996, distribution fees for each class were as follows: DISTRIBUTION FEE ---------- Bedford Class $2,730,852 Cash Preservation Class 422 Janney Montgomery Scott Class 1,463,057 RBB Class 110 Sansom Street Class 147,432 ---------- Total $4,341,873 ========== 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, 1996 service organization fees were $207,199 for the Money Market Portfolio. NOTE 3. CAPITAL SHARES Transactions in capital shares (at $1.00 per capital share) for each period were as follows: FOR THE FOR THE SIX MONTHS ENDED YEAR ENDED FEBRUARY 29, 1996 AUGUST 31, 1995 ------------------- ------------------- (UNAUDITED) VALUE VALUE ---------------- ---------------- Shares sold: Shares sold: Bedford Class $1,912,107,897 $2,966,911,277 Bradford Class -- -- Cash Preservation Class 76,761 84,527 Janney Montgomery Scott Class 1,126,947,114 855,058,809 RBB Class 6,693 31,504 Sansom Street Class 946,518,676 1,864,628,110 Shares issued in reinvestment of dividends: Bedford Class 24,390,767 37,681,204 Bradford Class -- -- Cash Preservation Class 5,178 11,226 Janney Montgomery Scott Class 11,597,010 4,534,944 RBB Class 1,340 2,500 Sansom Street Class 8,591,868 16,689,941 Shares repurchased: Bedford Class (1,759,920,802) (2,779,499,052) Bradford Class -- -- Cash Preservation Class (84,987) (91,268) Janney Montgomery Scott Class (1,053,312,158) (415,944,656) RBB Class (5,503) (23,917) Sansom Street Class (860,251,286) (1,813,444,951) -------------- -------------- Net increase (decrease) $ 356,668,568 $ 736,630,198 ============== ============== Sansom Street Shares authorized 1,000,000,000 1,000,000,000 ============== ============== 11 THE SANSOM STREET FAMILY THE RBB FUND, INC. NOTES TO FINANCIAL STATEMENTS (CONTINUED) FEBRUARY 29, 1996 (UNAUDITED) NOTE 4. NET ASSETS At February 29, 1996, net assets consisted of the following: (Unaudited) Capital paid-in: Bedford Class $1,112,410,124 Cash Preservation Class 232,617 Janney Montgomery Scott Class 528,881,063 RBB Class 57,931 Sansom Street Class 536,478,247 Other Classes 800 Accumulated net realized gain loss on investments: Bedford Class (12,775) Cash Preservation Class (2) Janney Montgomery Scott Class (5,419) RBB Class -- Sansom Street Class (6,122) -------------- $2,178,036,464 ============== 12 THE SANSOM STREET FAMILY THE RBB FUND, INC. NOTES TO FINANCIAL STATEMENTS (CONTINUED) FEBRUARY 29, 1996 (UNAUDITED) NOTE 5. OTHER FINANCIAL HIGHLIGHTS The Fund currently offers four other classes of shares representing interest in the Money Market Portfolio: Bedford, Cash Preservation, Janney Montgomery Scott and RBB. Each class is marketed to different types of investors. Financial Highlights of the RBB and Cash Preservation classes are not presented in this report due to their immateriality. Such information is available in the annual reports of each respective family. The financial highlights of certain of the other classes are as follows: THE BEDFORD FAMILY
FOR THE SIX FOR THE FOR THE FOR THE FOR THE FOR THE MONTHS ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED FEBRUARY 29, AUGUST 31, AUGUST 31, AUGUST 31, AUGUST 31, AUGUST 31, 1996 1995 1994 1993 1992 1991 -------------- ------------ ------------ ------------ ------------ ----------- (UNAUDITED) Net asset value, beginning of period.. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 ------- ------- ------- ------- ------- ------- Income from investment operations: Net investment income............... 0.0242 0.0486 0.0278 0.0243 0.0375 0.0629 Net gains on securities (both realized and unrealized)..... -- -- -- -- .0007 -- ------- ------- ------- ------- ------- ------- Total from investment operations.. 0.0242 0.0486 0.0278 0.0243 0.0382 0.0629 ------- ------- ------- ------- ------- ------- Less distributions: Dividends (from net investment income)........................... (0.0242) (0.0486) (0.0278) (0.0243) (0.0375) (0.0629) Distributions (from capital gains).. -- -- -- -- (.0007) -- ------- ------- ------- ------- ------- ------- Total distributions.............. (0.0242) (0.0486) (0.0278) (0.0243) (0.0382) (0.0629) ------- ------- ------- ------- ------- ------- Net asset value, end of period........ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 ======= ======= ======= ======= ======= ======= Total Return.......................... 4.98%(b) 4.97% 2.81% 2.46% 3.89% 6.48% Ratios/Supplemental Data Net assets, end of period........... $1,112,397,349 $935,821,424 $710,737,481 $782,153,438 $736,841,928 $747,530,400 Ratios of expenses to average net assets ....................... .97%(a)(b) .96%(a) .95%(a) .95%(a) .95%(a) .92%(a) Ratios of net investment income to average net assets............. 4.85%(b) 4.86% 2.78% 2.43% 3.75% 6.29% (a) Without the waiver of advisory and without the reimbursement of certain operating expenses, the ratios of expenses to average net assets for the Money Market Portfolio would have been 1.13% annualized for the six months ended February 29, 1996, 1.17%, 1.16%, 1.19%, 1.20% and 1.17% for the years ended August 31, 1995, 1994, 1993, 1992 and 1991, respectively. (b) Annualized.
13 THE SANSOM STREET FAMILY THE RBB FUND, INC. NOTES TO FINANCIAL STATEMENTS (CONCLUDED) FEBRUARY 29, 1996 (UNAUDITED) NOTE 5. OTHER FINANCIAL HIGHLIGHTS (CONTINUED) THE JANNEY MONTGOMERY SCOTT MONEY FUNDS FOR THE PERIOD JUNE 12, 1995 FOR THE (COMMENCEMENT OF SIX MONTHS ENDED OPERATIONS) TO FEBRUARY 29, 1996 AUGUST 31, 1995 ----------------- ---------------- (UNAUDITED) Net asset value, beginning of period . $ 1.00 $ 1.00 ----------- ----------- Income from investment operations: Net investment income .............. 0.0240 0.0112 ----------- ----------- Total from investment operations . 0.0240 0.0112 ----------- ----------- Less distributions: Dividends (from net investment income) (0.0240) (0.0112) ----------- ----------- Total distributions .............. (0.0240) (0.0112) ----------- ----------- Net asset value, end of period ....... $ 1.00 $ 1.00 =========== =========== Total Return ......................... 4.94%(b) 5.30%(b) Ratios/Supplemental Data Net assets, end of period .......... $528,875,644 $443,644,599 Ratios of expenses to average net assets ....................... 1.00%(a)(b) 1.00%(a)(b) Ratios of net investment income to average net assets ............... 4.82%(b) 5.04%(b) (a) Without the waiver of advisory and transfer agent fees and without the reimbursement of certain operating expenses, the ratios of expenses to average net assets for the Money Market Portfolio would have been 1.23% annualized for the six months ended February 29, 1996 and 1.23% annualized for the period ended August 31, 1995. (b) Annualized. 14 -----END PRIVACY-ENHANCED MESSAGE-----