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<SEC-DOCUMENT>0000935069-97-000189.txt : 19971106
<SEC-HEADER>0000935069-97-000189.hdr.sgml : 19971106
ACCESSION NUMBER: 0000935069-97-000189
CONFORMED SUBMISSION TYPE: N-30D
PUBLIC DOCUMENT COUNT: 1
CONFORMED PERIOD OF REPORT: 19970831
FILED AS OF DATE: 19971105
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:
SEC FILE NUMBER: 811-05518
FILM NUMBER: 97708100
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
</SEC-HEADER>
<DOCUMENT>
<TYPE>N-30D
<SEQUENCE>1
<DESCRIPTION>BRADFORD GOV'T. OBLIGATIONS MM 1997 ANNUAL REPORT
<TEXT>
----------------------
BRADFORD
GOVERNMENT
OBLIGATIONS
MONEY MARKET
PORTFOLIO
J.C. Bradford & Co.
MEMBER NEW YORK STOCK EXCHANGE INC.
[Logo Omitted]
Annual Report
August 31, 1997
<PAGE>
BRADFORD GOVERNMENT OBLIGATIONS MONEY MARKET SHARES
THE RBB FUND, INC.
ANNUAL INVESTMENT ADVISER'S REPORT
For much of the past year, economic activity grew progressively stronger
and only the good behavior of inflation kept money market yields from an
appreciable rise. In last year's final two quarters and through 1997's first
quarter, the nation's gross domestic product rose from a rate of 2.1% to 4.9%,
led by healthy gains in employment and wages. This strong momentum put pressure
on the Federal Reserve to raise short-term interest rates, particularly early
this year. The Fed's only move, however, was in March when it increased the
federal funds rated from 5.25% to 5.50%. The Fed likened its move to buying
insurance against the possible need for larger moves at a later date. The
reaction to the tighter monetary policy was quite severe, with both the stock
and bond markets experiencing sharp declines in April.
In the months following the Fed's move, economic activity began to show
signs of slowing and the money market yield curve, which reached its steepest
slope in March, began to flatten. One-year yields, for example, which peaked at
6.30% fell below 6.00% over the next few months, while the one- to three-month
sector held steady in a 5.50-5.65% range. One interesting anomaly was the U.S.
Treasury market where yields on three-, six-, and twelve-month bills traded well
below other money market rates. With the huge amount of cash in the market, the
three-month Treasury bill yielded as low as 4.90% in the second quarter, while
overnight rates remained at 5.50%. By the end of August, the three-month
Treasury bill had recovered somewhat, but was still 30 basis points below the
federal funds rate. This dichotomy in market yields generally kept the duration
of the government portfolio shorter than the prime portfolio, as it carried more
overnight investments for both yield and liquidity. In contrast, the prime
portfolio was more attracted to the 3-month and 1-year sectors to pick up
incremental yield during those occasions when the curve steepened.
PNC Institutional Management Corporation
(Please dial toll-free 800-533-7719 for questions regarding
your account or contact your broker.)
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
To the Shareholders and Board of Directors of The RBB Fund, Inc.:
We have audited the accompanying statements of net assets of the Government
Obligations Money Market Portfolio of the RBB Fund, Inc., as of August 31, 1997
and the related statements of operations for the year then ended, the statement
of changes in net assets for each of the two years in the period then ended, and
the financial highlights for each of the periods presented. These financial
statements and financial highlights are the responsibility of the Fund's
management. Our responsibility is to express an opinion on these financial
statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements.Our procedures included confirmation of investments owned as of
August 31, 1997, by correspondence with the custodian. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of the
Government Obligations Money Market Portfolio of the RBB Fund, Inc., as of
August 31, 1997 and the results of their operations for the year then ended, the
changes in their net assets for each of the two years in the period then ended,
and their financial highlights for each of the periods presented, in conformity
with generally accepted accounting principles.
COOPERS & LYBRAND L.L.P.
2400 Eleven Penn Center
Philadelphia, Pennsylvania
October 17, 1997
2
<PAGE>
BRADFORD GOVERNMENT OBLIGATIONS MONEY MARKET SHARES
THE RBB FUND, INC.
GOVERNMENT OBLIGATIONS MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS
AUGUST 31, 1997
PAR
(000) VALUE
-------- ------------
AGENCY OBLIGATIONS--59.0%
FEDERAL FARM CREDIT BANK--1.6%
5.510% 01/02/98 ............................... $10,000 $ 9,994,144
------------
FEDERAL HOME LOAN BANK--3.4%
6.080% 04/16/98 ............................... 21,000 21,006,876
------------
FEDERAL HOME LOAN MORTGAGE CORPORATION--25.9%
5.500% 09/02/97 ............................... 45,000 44,993,125
5.400% 09/11/97 ............................... 8,030 8,017,955
5.410% 09/11/97 ............................... 26,970 26,929,470
5.430% 09/22/97 ............................... 50,000 49,841,625
5.520% 11/06/97 ............................... 9,000 8,998,537
5.713% 03/13/98 ............................... 20,000 19,987,681
------------
158,768,393
------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION--20.8%
5.350% 09/02/97 ............................... 10,000 10,000,000
6.020% 09/05/97 ............................... 3,000 3,000,143
5.463% 09/12/97 ............................... 10,000 9,999,876
5.465% 09/30/97 ............................... 10,000 9,998,262
5.440% 12/15/97 ............................... 30,000 29,524,000
5.600% 01/16/98 ............................... 10,000 9,995,684
5.710% 03/18/98 ............................... 25,000 24,996,101
5.890% 05/21/98 ............................... 10,000 10,007,684
5.840% 06/18/98 ............................... 20,000 19,994,844
------------
127,516,594
------------
STUDENT LOAN MARKETING ASSOCIATION(DAGGER) --6.3%
5.440% 09/02/97 ............................... 20,000 19,998,165
5.450% 09/02/97 ............................... 9,000 8,999,371
5.460% 09/02/97 ............................... 5,000 5,000,000
5.470% 09/02/97 ............................... 5,000 4,999,934
------------
38,997,470
------------
WORLD BANK DISCOUNT NOTES--1.0%
5.410% 09/23/97 ............................... 6,100 6,079,833
------------
TOTAL AGENCY OBLIGATIONS
(Cost $362,363,310) ....................... 362,363,310
------------
PAR
(000) VALUE
-------- -----------
REPURCHASE AGREEMENTS--40.7%
Donaldson, Lufkin & Jenrette
(Agreement dated 08/29/97 to be
repurchased at $100,362,688,
collateralized by $108,750,000
Federal Home Loan Mortgage
Association 6.50% to 7.00%
due 04/15/21 to 05/15/24.
Market value of collateral is
$103,313,588.)
5.625% 09/02/97 ............................... $ 100,300 $ 100,300,000
Greenwich Capital Markets Inc.
(Agreement dated 08/29/97 to be
repurchased at $100,062,444,
collateralized by $265,604,910
Federal National Mortgage
Association Strips Due 03/01/22 to
07/01/27. Market value of collateral
is $103,001,687.)
5.620% 09/02/97 ............................... 100,000 100,000,000
Merrill Lynch
(Agreement dated 08/29/97 to be
repurchased at $50,030,722,
collateralized by $172,262,022
Federal National Mortgage
Association Strips Due 02/01/23 to
07/01/27. Market value of collateral
is $51,500,518.)
5.530% 10/17/97 ............................... 50,000 50,000,000
------------
TOTAL REPURCHASE AGREEMENTS
(Cost $250,300,000) ....................... 250,300,000
------------
See Accompanying Notes to Financial Statements.
3
<PAGE>
BRADFORD GOVERNMENT OBLIGATIONS MONEY MARKET SHARES
THE RBB FUND, INC.
GOVERNMENT OBLIGATIONS MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS (CONCLUDED)
AUGUST 31, 1997
TOTAL INVESTMENTS AT VALUE--99.7%
(Cost $612,663,310*) ............................... $612,663,310
OTHER ASSETS IN EXCESS
OF LIABILITIES--0.3% ............................... 1,568,901
------------
NET ASSETS (Applicable to
209,685,630 Bedford shares,
51,608,040 Bradford shares,
352,951,307 Janney Montgomery
Scott shares and 800
other shares)--100.0% .............................. $614,232,211
============
NET ASSET VALUE, Offering and
redemption price per share
($614,232,211 (DIVIDE) 614,245,777) ................ $1.00
=====
* Also cost for Federal income tax purposes.
(DAGGER) Variable Rate Obligations -- The interest rate is the rate as of August
31, 1997 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.
4
<PAGE>
BRADFORD GOVERNMENT OBLIGATIONS MONEY MARKET SHARES
THE RBB FUND, INC.
GOVERNMENT OBLIGATIONS MONEY MARKET PORTFOLIO
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED AUGUST 31, 1997
Investment Income
Interest ................................................. $31,972,074
-----------
Expenses
Investment advisory fees ................................. 2,421,186
Distribution fees ........................................ 3,435,186
Directors' fees .......................................... 11,967
Custodian fees ........................................... 107,578
Transfer agent fees ...................................... 535,142
Legal fees ............................................... 25,058
Audit fees ............................................... 14,286
Registration fees ........................................ 189,500
Insurance fees ........................................... 11,609
Printing fees ............................................ 83,824
Miscellaneous fees ....................................... 475
-----------
6,835,811
Less fees waived ......................................... (647,063)
Less expense reimbursement by advisor .................... (404,193)
-----------
Total expenses ...................................... 5,784,555
-----------
Net investment income .................................... 26,187,519
Realized (loss) on investments ........................... (1,291)
-----------
Net increase in net assets resulting from operations ..... $26,186,228
===========
See Accompanying Notes to Financial Statements.
5
<PAGE>
BRADFORD GOVERNMENT OBLIGATIONS MONEY MARKET SHARES
THE RBB FUND, INC.
GOVERNMENT OBLIGATIONS MONEY MARKET PORTFOLIO
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE FOR THE
YEAR ENDED YEAR ENDED
AUGUST 31, 1997 AUGUST 31, 1996
--------------- ---------------
<S> <C> <C>
Increase (decrease) in net assets:
Operations:
Net investment income .......................................................... $ 26,187,519 $ 25,224,326
Net (loss) on investments ...................................................... (1,291) (10,995)
------------ ------------
Net increase in net assets resulting from operations ........................... 26,186,228 25,213,331
------------ ------------
Distributions to shareholders:
Dividends to shareholders from net investment income:
Bedford shares ................................................................. (9,057,728) (8,829,111)
Bradford shares ................................................................ (2,084,419) (2,208,959)
Janney Montgomery Scott shares ................................................. (15,045,372) (14,186,256)
Dividends to shareholders from net realized short-term gains:
Bedford shares ................................................................. -- (12,697)
Bradford shares ................................................................ -- (3,154)
Janney Montgomery Scott shares ................................................. -- (18,204)
------------ ------------
Total dividends to shareholders ............................................ (26,187,519) (25,258,381)
------------ ------------
Net capital share transactions ................................................... 57,686,497 44,099,699
------------ ------------
Total increase in net assets ..................................................... 57,685,206 44,054,649
Net Assets:
Beginning of year .............................................................. 556,547,005 512,492,356
------------ ------------
End of year .................................................................... $614,232,211 $556,547,005
============ ============
</TABLE>
See Accompanying Notes to Financial Statements.
6
<PAGE>
BRADFORD GOVERNMENT OBLIGATIONS MONEY MARKET SHARES
THE RBB FUND, INC.
GOVERNMENT OBLIGATIONS MONEY MARKET PORTFOLIO
FINANCIAL HIGHLIGHTS (b)
(FOR A SHARE OUTSTANDING THROUGHOUT EACH YEAR)
<TABLE>
<CAPTION>
FOR THE FOR THE FOR THE FOR THE FOR THE
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
AUGUST 31, 1997 AUGUST 31, 1996 AUGUST 31, 1995 AUGUST 31, 1994 AUGUST 31, 1993
--------------- --------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year .......... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
--------- --------- --------- --------- ---------
Income from investment operations:
Net investment income ..................... 0.0449 0.0458 0.0475 0.0270 0.0231
--------- --------- --------- --------- ---------
Total from investment operations ...... 0.0449 0.0458 0.0475 0.0270 0.0231
--------- --------- --------- --------- ---------
Less distributions
Dividends (from net investment income) .... (0.0449) (0.0458) (0.0475) (0.0270) (0.0231)
--------- --------- --------- --------- ---------
Total distributions ................... (0.0449) (0.0458) (0.0475) (0.0270) (0.0231)
--------- --------- --------- --------- ---------
Net asset value, end of year ................ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========= ========= ========= ========= =========
Total Return ................................ 4.59% 4.68% 4.86% 2.73% 2.33%
Ratios /Supplemental Data
Net assets, end of year (000) ............. $ 51,568 $ 57,190 $ 46,509 $ 39,732 $ 50,523
Ratios of expenses to average net assets .. .975%(a) .975%(a) .975%(a) .975%(a) .975%(a)
Ratios of net investment income to
average net assets ...................... 4.49% 4.58% 4.75% 2.70% 2.31%
<FN>
(a) Without the waiver of advisory, distribution and administration fees and
without the reimbursement of certain operating expenses, the ratios of
expenses to average net assets for the Government Obligations Money Market
Portfolio would have been 1.09%, 1.10%, 1.13%, 1.18% and 1.18% for the
years ended August 31, 1997, 1996, 1995, 1994 and 1993, respectively.
(b) Financial Highlights relate solely to the Bradford Class of shares within
each portfolio.
</FN>
</TABLE>
See Accompanying Notes to Financial Statements.
7
<PAGE>
BRADFORD GOVERNMENT OBLIGATIONS MONEY MARKET SHARES
THE RBB FUND, INC.
GOVERNMENT OBLIGATIONS MONEY MARKET PORTFOLIO
NOTES TO FINANCIAL STATEMENTS
AUGUST 31, 1997
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 13.67 billion shares are currently classified into seventy-nine classes.
Each class represents an interest in one of twenty investment portfolios of the
Fund. The classes have been grouped into sixteen separate "families," nine 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 Scott Money Family, the n/i Family, the Boston Partners
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. 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 the 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.
8
<PAGE>
BRADFORD GOVERNMENT OBLIGATIONS MONEY MARKET SHARES
THE RBB FUND, INC.
GOVERNMENT OBLIGATIONS MONEY MARKET PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
AUGUST 31, 1997
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 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 year ended August 31, 1997, advisory fees and waivers for the investment
portfolio were as follows:
GROSS NET
ADVISORY ADVISORY
FEE WAIVER FEE
---------- --------- ----------
$2,421,186 $(647,063) $1,774,123
The investment advisor has agreed to reimburse the portfolio for the
amount, if any, by which the total operating and management expenses exceed the
cap. For the year ended August 31, 1997, the reimbursed expenses were $404.193.
PNC Bank, as sub-advisor, receives a fee directly from PIMC, not the
portfolio. In addition, PNC Bank serves as custodian for this portfolio. PFPC
Inc. ("PFPC"), an indirect wholly owned subsidiary of PNC Bank Corp., serves as
transfer and dividend disbursing agent for each class of the portfolio. For the
year ended August 31, 1997, transfer agency fees for each class of shares within
the investment portfolio were as follows:
TRANSFER AGENCY
FEE
---------------
Bedford Class $ 63,943
Bradford Class 1,475
Janney Montgomery Scott Class 469,724
--------
Total $535,142
========
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
Agreements 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, Janney Montgomery Scott
and Bradford Classes and up to .20% on an annualized basis for the Sansom Street
Class.
9
<PAGE>
BRADFORD GOVERNMENT OBLIGATIONS MONEY MARKET SHARES
THE RBB FUND, INC.
GOVERNMENT OBLIGATIONS MONEY MARKET PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
AUGUST 31, 1997
NOTE 2. TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES (CONTINUED)
For the year ended August 31, 1997, distribution fees for each class were
as follows:
DISTRIBUTION
FEE
------------
Bedford Class $1,136,708
Bradford Class 278,374
Janney Montgomery Scott Class 2,020,104
----------
Total $3,435,186
==========
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 year ended
August 31, 1997.
Expenses include legal fees paid to the company, a partner of which is
secretary of the company.
Expenses include Administrative and 12B-1 fees paid to Counsellors, Inc.
whose secretary is also a director of the company.
NOTE 3. CAPITAL SHARES
Transactions in capital shares (at $1 per capital share) for each year were
as follows:
<TABLE>
<CAPTION>
FOR THE FOR THE
YEAR ENDED YEAR ENDED
AUGUST 31, 1997 AUGUST 31, 1996
--------------- ---------------
VALUE VALUE
--------------- ---------------
<S> <C> <C>
Shares sold:
Bedford Class $ 606,875,958 $ 663,889,198
Bradford Class 171,813,924 180,761,217
Janney Montgomery Scott Class 1,232,450,606 1,160,250,876
Shares issued in reinvestment of dividends:
Bedford Class 8,971,804 8,793,104
Bradford Class 2,002,758 2,158,629
Janney Montgomery Scott Class 14,958,191 14,080,097
Shares repurchased:
Bedford Class (598,765,148) (643,470,937)
Bradford Class (179,400,377) (172,234,746)
Janney Montgomery Scott Class (1,201,221,219) (1,170,127,739)
-------------- --------------
Net increase $ 57,686,497 $ 44,099,699
============== ==============
Bradford Shares authorized 500,000,000 500,000,000
============== ==============
</TABLE>
See Accompanying Notes to Financial Statements.
10
<PAGE>
BRADFORD GOVERNMENT OBLIGATIONS MONEY MARKET SHARES
THE RBB FUND, INC.
GOVERNMENT OBLIGATIONS MONEY MARKET PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
AUGUST 31, 1997
NOTE 4. NET ASSETS
At August 31, 1997, net assets consisted of the following:
Capital paid-in:
Bedford Class $209,685,630
Bradford Class 51,608,040
Janney Montgomery Scott Class 352,951,307
Other Classes 800
Accumulated net realized loss on investments:
Bedford Class (4,689)
Bradford Class (1,369)
Janney Montgomery Scott Class (7,508)
------------
$614,232,211
============
NOTE 5. CAPITAL LOSS CARRYOVERS
At August 31, 1997, capital loss carryovers were available to offset future
realized gains as follows: $13,566 in the Government Obligations Money Market
Portfolio of which $12,275 expires in 2004, and $1,291 expires in 2005.
11
<PAGE>
BRADFORD GOVERNMENT OBLIGATIONS MONEY MARKET SHARES
THE RBB FUND, INC.
GOVERNMENT OBLIGATIONS MONEY MARKET PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
AUGUST 31, 1997
NOTE 6. OTHER FINANCIAL HIGHLIGHTS
The Fund currently offers two other class of shares representing an
interest in the Government Obligations Money Market Portfolio: Bedford and
Janney Montgomery Scott. Each class is marketed to different types of investors.
The financial highlights are as follows:
THE BEDFORD FAMILY
<TABLE>
<CAPTION>
GOVERNMENT OBLIGATIONS MONEY MARKET PORTFOLIO
--------------------------------------------------
FOR THE FOR THE FOR THE
YEAR ENDED YEAR ENDED YEAR ENDED
AUGUST 31, 1997 AUGUST 31, 1996 AUGUST 31, 1995
--------------- --------------- ---------------
<S> <C> <C> <C>
Net asset value, beginning of year ................... $ 1.00 $ 1.00 $ 1.00
-------- -------- --------
Income from investment operations:
Net investment income .............................. 0.0449 0.0458 0.0475
-------- -------- --------
Total from investment operations ................... 0.0449 0.0458 0.0475
-------- -------- --------
Less distributions
Dividends (from net investment income) ............. (0.0449) (0.0458) (0.0475)
-------- -------- --------
Total distributions ............................. (0.0449) (0.0458) (0.0475)
-------- -------- --------
Net asset value, end of year ......................... $ 1.00 $ 1.00 $ 1.00
======== ======== ========
Total Return ......................................... 4.59% 4.68% 4.86%
Ratios /Supplemental Data
Net assets, end of year (000) ...................... $209,715 $192,599 $163,398
Ratios of expenses to average net assets ........... .975%(a) .975%(a) .975%(a)
Ratios of net investment income to average net assets 4.49% 4.58% 4.75%
</TABLE>
<TABLE>
<CAPTION>
---------------------------------
FOR THE FOR THE
YEAR ENDED YEAR ENDED
AUGUST 31, 1994 AUGUST 31, 1993
--------------- ---------------
<S> <C> <C>
Net asset value, beginning of year .................... $ 1.00 $ 1.00
-------- --------
Income from investment operations:
Net investment income ............................... 0.0270 0.0231
-------- --------
Total from investment operations .................... 0.0270 0.0231
-------- --------
Less distributions
Dividends (from net investment income) .............. (0.0270) (0.0231)
-------- --------
Total distributions .............................. (0.0270) (0.0231)
-------- --------
Net asset value, end of year .......................... $ 1.00 $ 1.00
======== ========
Total Return .......................................... 2.73% 2.33%
Ratios /Supplemental Data
Net assets, end of year (000) ....................... $166,418 $213,741
Ratios of expenses to average net assets ............ .975%(a) .975%(a)
Ratios of net investment income to average net assets 2.70% 2.31%
<FN>
(a) Without the waiver of advisory, distribution and administration fees and
without the reimbursement of certain operating expenses, the ratios of
expenses to average net assets for the Government Obligations Money Market
Portfolio would have been 1.09%, 1.10%, 1.13%, 1.17% and 1.18% for the
years ended August 31, 1997, 1996, 1995, 1994 and 1993, respectively.
</FN>
</TABLE>
12
<PAGE>
BRADFORD GOVERNMENT OBLIGATIONS MONEY MARKET SHARES
THE RBB FUND, INC.
GOVERNMENT OBLIGATIONS MONEY MARKET PORTFOLIO
NOTES TO FINANCIAL STATEMENTS (CONCLUDED)
AUGUST 31, 1997
NOTE 6. OTHER FINANCIAL HIGHLIGHTS (CONTINUED)
THE JANNEY MONTGOMERY SCOTT FAMILY
<TABLE>
<CAPTION>
GOVERNMENT OBLIGATIONS
MONEY MARKET PORTFOLIO
----------------------------------------------------
FOR THE PERIOD
FOR THE FOR THE JUNE 12, 1995
YEAR YEAR (COMMENCEMENT
ENDED ENDED OF OPERATIONS) TO
AUGUST 31, 1997 AUGUST 31, 1996 AUGUST 31, 1995
--------------- --------------- -----------------
<S> <C> <C> <C>
Net asset value, beginning of year .................. $ 1.00 $ 1.00 $ 1.00
-------- ------ ------
Income from investment operations:
Net investment income ............................. 0.0447 0.0456 0.0109
-------- ------ ------
Total from investment operations ................ 0.0447 0.0456 0.0109
-------- ------ ------
Less distributions
Dividends (from net investment income) ............ (0.0447) (0.0456) (0.0109)
-------- ------ ------
Total distributions ............................. (0.0447) (0.0456) (0.0109)
-------- ------ ------
Net asset value, end of year ........................ $ 1.00 $ 1.00 $ 1.00
======== ======== ========
Total Return ........................................ 4.56% 4.66% 5.03%(b)
Ratios /Supplemental Data
Net assets, end of year (000) ..................... $352,950 $306,757 $302,585
Ratios of expenses to average net assets .......... 1.00%(a) 1.00%(a) 1.00%(a)(b)
Ratios of net investment income to average net assets 4.47% 4.56% 4.91%(b)
<FN>
(a) Without the waiver of advisory, administration and transfer agent fees and
without the reimbursement of certain operating expenses, the ratios of
expenses to average net assets for the Government Obligations Money Market
Portfolio would have been 1.23%, 1.25% and 1.28% for the years ended August
31, 1997, 1996 and 1995, respectively.
(b) Annualized.
</FN>
</TABLE>
NOTE 7. SUBSEQUENT EVENT:
On October 1, 1997, the Government Obligations Money Market Portfolio
Bradford Class of 168,177,203 shares were liquidated.
13
<PAGE>
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<PAGE>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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