-----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, MGVHreioJui5wLoyt5Y0jWXoF3m41yOEyluLq8oI2uriO60PLHTqBKZ4mwOyJ0E1 ryL4ahX0V8geiDYN4iJbiA== 0000935069-00-000235.txt : 20000510 0000935069-00-000235.hdr.sgml : 20000510 ACCESSION NUMBER: 0000935069-00-000235 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20000229 FILED AS OF DATE: 20000509 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: 622542 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 MORGAN KEEGAN MOR SEMI-ANNUAL REPORT [GRAPHIC OMITTED] MORGAN KEEGAN MOR ACCOUNT SEMI-ANNUAL REPORT FOR BEDFORD SHARES FEBRUARY 29, 2000 MONEY MARKET PORTFOLIO MUNICIPAL MONEY MARKET PORTFOLIO GOVERNMENT OBLIGATIONS MONEY MARKET PORTFOLIO THE BEDFORD FAMILY THE RBB FUND, INC. SEMI-ANNUAL INVESTMENT ADVISER'S REPORT Money market activity was dominated by three key issues in the six-month period ended February 2000; the economy, Federal Reserve policy and Y2K issues. The U.S. economy, fueled by extraordinary consumer demand, broke a record for peacetime expansion, as gross domestic product (GDP) surged 5.8% in the fourth quarter and recorded an annual growth rate in excess of 4% for the third year in a row. In the eyes of the Federal Reserve, however, the exuberance of the economy was a clear sign of trouble ahead. With GDP running well above their non-inflationary threshold, higher wages and prices were the expected consequence. The Fed's response was to tighten monetary policy three times during the last six months, raising the federal funds rate by 75 basis points to 6.00% by mid-March. Further increases are expected at the Fed's May and June meetings. The final factor was the concern surrounding Y2K, the perceived date change threat to global computer networks. During the third and fourth quarters, the money market portfolios focused on maintaining additional liquidity through year-end to accommodate any unanticipated withdrawals as a result of Y2K. With the transition to year 2000 now passed, we can report that neither the portfolios nor any of our portfolio management systems experienced any problems. Y2K was, in short, a non-event. Short-term interest rates rose in the second half of 1999 and early 2000 as the Fed tightened monetary policy to thwart inflationary pressures. The current federal funds rate of 6.00% represents an increase of 1.25% since last June. The increase in rates also led to a steeper yield curve, as the anticipation of further Fed moves escalated. At the same time, an interesting anomaly occurred in January 2000 maturities during the third and fourth quarters. The concern over Y2K problems and the related build up in market wide liquidity in December precipitated a dramatic yield pick up in January 2000 maturities. Spreads widened to over 100 basis points as issuers tried to entice investors into the year 2000. This yield disparity provided a significant opportunity for the money market portfolios to add incremental yield, even as most assets were invested shorter than December 31. In January and February, most of the investments were targeted to the April-May period, as the three-month sector offered the best returns. Average weighted maturities ranged between 35-45 days. During the final few months of last year, yields on municipal money market securities, in conjunction with several FOMC rate hikes, rose approximately 75 basis points to 3.80% on December 31, 1999. The rise in rates was slow and steady during the period, with a final 30 basis point spike occurring in the last week of December as dealers, fearful of carrying inventory over the Y2K year-end, raised rates to attract crossover taxable buyers. As Y2K quickly passed and early January bond coupon payments flooded the market, dealers took the opportunity to adjust yields downward concomitant with an increase in demand and a decrease in supply of municipal securities. This supply/demand pressure continued into February and by the end of the month, yields offered by dealers on variable rate demand notes had fallen 60 basis points from year-end 1999 to an average of 3.20%. Supply pressures should begin to abate as the April 15 tax payment date approaches and municipal money market funds experience what is typically their largest redemptions of the year. BlackRock Institutional Management Corporation (Please dial toll-free 800-677-6310 for questions regarding your account or contact your broker.) THE BEDFORD FAMILY THE RBB FUND, INC. MONEY MARKET PORTFOLIO STATEMENT OF NET ASSETS FEBRUARY 29, 2000 (UNAUDITED) PAR (000) VALUE ---------- -------------- CERTIFICATES OF DEPOSIT--6.5% DOMESTIC CERTIFICATES OF DEPOSIT--2.4% First National Bank of Chicago 6.060% 08/14/00 ............................ $15,000 $ 14,996,617 Key Bank N.A. 5.705% 07/12/00 ............................ 10,000 9,999,476 Wilmington Trust Co. 6.050% 04/14/00 ............................ 25,000 25,000,000 6.000% 05/18/00 ............................ 12,100 12,100,000 -------------- 62,096,093 -------------- YANKEE DOLLAR CERTIFICATES OF DEPOSIT--4.1% Canadian Imperial Bank of Commerce 5.180% 03/15/00 ............................ 29,700 29,699,985 5.180% 03/16/00 ............................ 25,000 24,999,703 National Westminster Bank 5.280% 04/03/00 ............................ 25,000 24,999,516 Svenska Handelsbanken, Inc. 5.178% 03/16/00 ............................ 25,000 24,999,530 -------------- 104,698,734 -------------- TOTAL CERTIFICATES OF DEPOSIT (Cost $166,794,827) .................... 166,794,827 -------------- COMMERCIAL PAPER--58.5% AIRCRAFT PARTS & AUXILIARY EQUIPMENT, NEC--0.4% Textron Financial, 3-A-3 5.920% 05/02/00 ............................ 10,000 9,898,044 -------------- ASSET BACKED SECURITIES--10.4% Emerald Certificates Program (MBNA 99-K), 4-2 5.840% 03/16/00 ............................ 11,000 10,973,233 5.920% 04/07/00 ............................ 34,000 33,793,129 Enterprise Funding Corp., 4-2 5.900% 03/16/00 ............................ 5,547 5,533,364 Fairway Finance Ltd., 4-2 5.900% 04/17/00 ............................ 10,000 9,922,972 Grand Funding Corp., 4-2 5.780% 03/01/00 ............................ 9,500 9,500,000 5.780% 03/06/00 ............................ 25,000 24,979,931 5.870% 04/24/00 ............................ 28,700 28,447,296 Moriarty LLC, 4-2 5.870% 04/06/00 ............................ 50,000 49,706,500 5.870% 04/10/00 ............................ 40,000 39,739,111 5.900% 04/25/00 ............................ 35,000 34,684,514 PAR (000) VALUE ---------- -------------- ASSET BACKED SECURITIES--(CONTINUED) Special Purpose Accounts Receivable Cooperative Corp., 4-2 5.970% 05/15/00 ............................ $17,000 $ 16,788,562 -------------- 264,068,612 -------------- BANKS--5.6% AB Spintab, 3-A-3 5.870% 04/20/00 ............................ 17,500 17,357,326 ING Bank (Internationale Nederlanden Bank NV), 3-A-3 5.880% 03/06/00 ............................ 25,000 24,979,583 Swedbank, 3-A-3 5.850% 04/11/00 ............................ 100,000 99,333,750 -------------- 141,670,659 -------------- COMMUNICATION EQUIPMENT NEC--1.0% Alcatel Alsthom Inc., 3-A-3 5.430% 03/13/00 ............................ 25,000 24,954,750 -------------- HOSPITAL & MEDICAL SERVICE PLANS--0.5% United Healthcare Corp., 4-2 5.900% 04/03/00 ............................ 13,000 12,929,692 -------------- LIFE INSURANCE--5.5% Aetna Services Inc., 3-A-3 5.850% 03/24/00 ............................ 11,000 10,958,887 5.870% 03/27/00 ............................ 20,000 19,915,211 5.900% 04/03/00 ............................ 40,000 39,783,667 5.900% 04/11/00 ............................ 24,700 24,534,030 Aon Corp., 3-A-3 5.830% 03/06/00 ............................ 9,496 9,488,311 5.840% 03/14/00 ............................ 35,000 34,926,189 -------------- 139,606,295 -------------- MISC INDUSTRIAL & COMMERCIAL MACHINERY--1.2% Invensys, 4-2 5.920% 05/04/00 ............................ 30,000 29,684,267 -------------- MOTOR VEHICLE PARTS & ACCESSORIES--1.1% Eaton Corp., 4-2 5.950% 05/09/00 ............................ 29,000 28,669,279 -------------- See Accompanying Notes to Financial Statements. 2 THE BEDFORD FAMILY THE RBB FUND, INC. MONEY MARKET PORTFOLIO STATEMENT OF NET ASSETS (CONTINUED) FEBRUARY 29, 2000 (UNAUDITED) PAR (000) VALUE ---------- -------------- NATURAL GAS TRANS. & DISTR.--1.4% Consolidated Natural Gas Co., 3-A-3 5.850% 03/20/00 ........................... $18,296 $ 18,239,511 Duke Capital Corp., 4-2 5.870% 04/13/00 ........................... 17,000 16,880,806 -------------- 35,120,317 -------------- PETROLEUM REFINING--4.4% Repsol International Finance BV, 3-A-3 5.870% 03/14/00 ........................... 13,000 12,972,444 5.920% 04/17/00 ........................... 17,500 17,364,744 5.940% 04/18/00 ........................... 13,500 13,393,080 6.000% 05/09/00 ........................... 9,000 8,896,500 6.000% 05/11/00 ........................... 25,000 24,704,167 6.000% 05/16/00 ........................... 10,000 9,873,333 6.000% 05/17/00 ........................... 25,000 24,679,167 -------------- 111,883,435 -------------- SECURITY BROKERS & DEALERS--3.1% Morgan Stanley Dean Witter, 3-A-3 5.850% 04/12/00 ........................... 80,000 79,454,000 -------------- SHORT-TERM BUSINESS CREDIT INSTITUTIONS--17.0% Associates First Capital BV, 3-A-3 5.900% 05/03/00 ........................... 39,500 39,092,162 5.910% 05/08/00 ........................... 15,000 14,832,550 5.930% 05/25/00 ........................... 25,000 24,649,965 5.940% 06/01/00 ........................... 25,000 24,620,500 Finova Capital Corp., 3-A-3 5.800% 03/01/00 ........................... 19,400 19,400,000 5.800% 03/03/00 ........................... 14,800 14,795,231 5.900% 04/03/00 ........................... 20,000 19,891,833 6.000% 05/30/00 ........................... 30,000 29,550,000 General Electric Capital Corp., 3-A-3 5.890% 04/21/00 ........................... 20,000 19,833,117 Heller Financial, Inc., 3-A-3 5.800% 03/21/00 ........................... 20,000 19,935,556 5.900% 04/13/00 ........................... 35,000 34,753,347 5.920% 04/19/00 ........................... 35,000 34,717,978 5.920% 04/20/00 ........................... 30,000 29,753,333 Sears Roebuck Acceptance Corp., 3-A-3 5.900% 04/13/00 ........................... 15,000 14,894,292 5.900% 04/17/00 ........................... 45,000 44,653,375 6.000% 05/11/00 ........................... 50,000 49,408,333 -------------- 434,781,572 -------------- PAR (000) VALUE ---------- ------------- TELEPHONE COMMUNICATIONS--7.0% British Telecommunication, 3-A-3 5.890% 05/04/00 ........................... $50,000 $ 49,476,444 MCI Worldcom 4-2 5.920% 04/17/00 ........................... 25,000 24,806,778 5.920% 04/18/00 ........................... 50,000 49,605,333 5.920% 04/19/00 ........................... 43,000 42,653,516 5.920% 04/20/00 ........................... 12,000 11,901,333 -------------- 178,443,404 -------------- TOTAL COMMERCIAL PAPER (Cost $1,491,164,326) ................. 1,491,164,326 -------------- MUNICIPAL BONDS--2.8% FLORIDA--0.1% Coral Springs, VRDN IDR (Alliance Corp.) (Suntrust Bank, Central FL) Series 1995+ 5.900% 03/01/00 ........................... 2,300 2,300,000 -------------- GEORGIA--0.4% De Kalb County , Development Authority VRDN Series 1995 B (Emory University Project)+ 5.800% 03/07/00 ........................... 9,280 9,280,000 -------------- ILLINOIS--0.2% Illinois Health Facilities Authority VRDN (The Streeterville Corp. Project) Series 1993-B (First National Bank of Chicago)+ 5.950% 03/01/00 ........................... 4,400 4,400,000 -------------- INDIANA--0.1% Bremen, IDR Bond VRDN Series 1996 B (Society National Bank, Cleveland)+ 6.140% 03/02/00 ........................... 2,075 2,075,000 -------------- KENTUCKY--0.2% Boone County, Taxable IDR Refunding Bonds VRDN (Square D Company Project) Series 1994-B (Societe Generale)+ 5.950% 03/01/00 ........................... 4,200 4,200,000 -------------- See Accompanying Notes to Financial Statements. 3 THE BEDFORD FAMILY THE RBB FUND, INC. MONEY MARKET PORTFOLIO STATEMENT OF NET ASSETS (CONTINUED) FEBRUARY 29, 2000 (UNAUDITED) PAR (000) VALUE ---------- ------------- MISSISSIPPI--1.0% Mississippi Business Finance Corp. IDR Bond VRDN Dana Lighting Inc. (Suntrust Bank, Central FL) Series 1995+ 5.900% 03/07/00 ............................ $ 5,600 $ 5,600,000 Mississippi Business Finance Corp. IDR Bond VRDN (Bryan Foods, Inc. Project) (Sara Lee Corp.) Series 1994+ 5.950% 03/01/00 ............................ 14,000 14,000,000 Mississippi Business Finance Corp. IDR Bond VRDN (Choctaw Foods Inc.Project) Series 1995 (Rabobank Nederland)+ 5.900% 03/07/00 ............................ 5,100 5,100,000 -------------- 24,700,000 -------------- NORTH CAROLINA--0.3% City of Asheville VRDN (Wachovia Bank)+ 5.850% 03/01/00 ............................ 8,900 8,900,000 -------------- TEXAS--0.6% South Central Texas Industrial Development Corp. Taxable IDR Revenue Bond VRDN (Rohr Industries Project) Series 1990 (NBD Bank)+ 5.950% 03/01/00 ............................ 14,800 14,800,000 -------------- TOTAL MUNICIPAL BONDS (Cost $70,655,000) ..................... 70,655,000 -------------- VARIABLE RATE OBLIGATIONS--25.4% AIRCRAFT PARTS & AUXILIARY EQUIPMENT, NEC--1.2% Textron Financial Corp.+ 6.098% 05/02/00 ............................ 30,000 30,000,000 -------------- BANKS--17.7% AB Spintab Corp.+ 6.040% 04/25/00 ............................ 25,000 24,987,975 Bayerische Hypo-Und Vereinsbank+ 5.799% 03/14/00 ............................ 74,500 74,494,626 5.795% 03/15/00 ............................ 50,000 49,991,848 PAR (000) VALUE ---------- -------------- BANKS--(CONTINUED) Bayerische Landesbank Girozentrale+ 5.798% 03/28/00 ............................ $25,000 $ 24,987,829 Key Bank N.A.+ 6.031% 03/14/00 ............................ 35,000 34,994,069 6.190% 05/25/00 ............................ 50,000 50,000,000 SMM Trust 1999-A+ 6.150% 04/13/00 ............................ 10,000 10,000,000 SMM Trust 1999-B+ 6.181% 03/15/00 ............................ 80,000 80,000,000 SMM Trust 1999-E+ 6.021% 04/05/00 ............................ 37,500 37,500,000 Westdeutsche Landesbank Girozentrale+ 5.799% 03/27/00 ............................ 15,000 14,992,719 Westpac Banking Corp.+ 5.959% 03/06/00 ............................ 50,000 49,983,651 -------------- 451,932,717 -------------- PERSONAL CREDIT INSTITUTIONS--6.5% American Honda Finance Corp.+ 6.020% 04/18/00 ............................ 24,800 24,797,858 6.080% 05/04/00 ............................ 10,000 9,997,835 6.068% 05/08/00 ............................ 30,000 29,992,223 6.060% 05/24/00 ............................ 44,600 44,598,013 General Motors Acceptance Corp.+ 5.995% 04/20/00 ............................ 24,500 24,494,380 Main Place Real Estate Investment+ 6.210% 04/25/00 ............................ 32,000 32,014,311 -------------- 165,894,620 -------------- TOTAL VARIABLE RATE OBLIGATIONS (Cost $647,827,337) .................... 647,827,337 -------------- See Accompanying Notes to Financial Statements. 4 THE BEDFORD FAMILY THE RBB FUND, INC. MONEY MARKET PORTFOLIO STATEMENT OF NET ASSETS (CONCLUDED) FEBRUARY 29, 2000 (UNAUDITED) PAR (000) VALUE ---------- ------------- MEDIUM TERM NOTES--2.9% PERSONAL CREDIT INSTITUTIONS--0.0% General Motors Acceptance Corp. 6.650% 05/24/00 ............................ $ 200 $ 200,195 -------------- SECURITY BROKERS & DEALERS--2.9% Goldman Sachs Group, Inc. 5.990% 04/17/00 ............................ 25,000 25,000,000 6.090% 05/08/00 ............................ 25,000 25,000,000 6.100% 05/10/00 ............................ 25,000 25,000,000 -------------- 75,000,000 -------------- TOTAL MEDIUM TERM NOTES (Cost $75,200,195) ..................... 75,200,195 -------------- TIME DEPOSITS--3.5% Norwest Bank Minnesota NA 5.875% 03/01/00 ............................ 89,600 89,600,000 -------------- TOTAL TIME DEPOSITS ...................... (Cost $89,600,000) 89,600,000 -------------- TOTAL INVESTMENTS AT VALUE--99.6% (Cost $2,541,241,685*) ..................... 2,541,241,685 -------------- OTHER ASSETS IN EXCESS OF LIABILITIES--0.4% ....................... 9,249,508 -------------- NET ASSETS (Applicable to 442,170,092 Bedford shares, 237,516 Cash Preservation shares, 1,231,157,266 Janney Montgomery Scott shares, 245,338,916 Sansom Street shares, 402,058,124 Select shares, 229,585,110 Principal shares, and 800 other shares)--100% ................ $2,550,491,193 ============== NET ASSET VALUE, Offering and redemption price per share ($2,550,491,193 / 2,550,547,824) ........... $1.00 ===== * Also cost for Federal income tax purposes. + Variable Rate Obigations -- The interest rate shown is the rate as of February 29, 2000 and the maturity date shown is the longer of the next interest rate readjustment date or the date the principal amount shown can be recovered through demand. INVESTMENT ABBREVIATIONS BV ...................................................... Besloten Vennootschap IDR ............................................ Industrial Development Revenue NA ....................................................... National Association NEC .................................................. Not Elsewhere Classified TARN ............................................. Taxable Adjustable Rate Note VRDN ................................................ Variable Rate Demand Note NV ....................................................... Naambze Vennootschap See Accompanying Notes to Financial Statements. 5 THE BEDFORD FAMILY THE RBB FUND, INC. MUNICIPAL MONEY MARKET PORTFOLIO STATEMENT OF NET ASSETS FEBRUARY 29, 2000 (UNAUDITED) PAR (000) VALUE ---------- ------------- MUNICIPAL BONDS--99.2% ALABAMA--0.1% Montgomery Special Care Facilities Financing Authority RB 1985 Series A DN (AMBAC Insurance)+ 3.950% 03/07/00 ...................... $ 370 $ 370,000 ------------ ARKANSAS--0.7% Chandler IDA RB Series 2000 DN (Key Corp. Bank N.A. LOC)+ 4.100% 03/07/00 ...................... 1,625 1,625,000 ------------ CALIFORNIA--2.0% California Higher Education Student Loan RB Series D-2 MB (Dresdner Bank LOC)++ 3.500% 04/01/00 ...................... 5,000 5,000,000 ------------ COLORADO--0.4% Douglas County School District TAN 4.500% 06/30/00 ...................... 1,000 1,002,886 ------------ CONNECTICUT--1.1% Connecticut Special Assessment Unemployment Compensation Advance Fund (Connecticut Unemployment Project) Series1993 C MB (FGIC Insurance)++ 3.380% 07/01/00 ...................... 2,700 2,700,000 ------------ FLORIDA--1.6% Greater Orlando Airport Authority TECP AMT (Morgan Guaranty Trust LOC) 3.800% 05/17/00 ...................... 4,000 4,000,000 ------------ GEORGIA--1.4% McDuffie County, Development Authority of, Waste Disposal RB (Temple-Inland Forest Products Corporation) TECP 1998 4.550% 03/13/00 ...................... 2,500 2,500,000 PAR (000) VALUE ---------- ------------- GEORGIA--(CONTINUED) Monroe County Development Authority PCR RB (Oglethorpe Power- Scherer-B) DN (Ambac Insurance)+ 3.850% 03/07/00 ...................... $ 1,000 $ 1,000,000 ------------ 3,500,000 ------------ HAWAII--1.0% Hawaii State Department of Budget & Finance (Palama Meat Co. Project) DN (Bank of Hawaii LOC)+ 4.250% 03/07/00 ...................... 2,500 2,500,000 ------------ ILLINOIS--10.0% Addison, Village Of, Dupage County, Industrial Revenue Refunding Bonds (General Binding Corp. Project) 1988 DN (ABN AMRO Bank LOC)+ 4.320% 03/07/00 ...................... 1,600 1,600,000 Chicago Gas Supply RB (Peoples Gas Light & Coke Co. Project) 1993B MB++ 4.050% 12/01/00 ...................... 5,575 5,575,000 Chicago, City Of, IDA RB (Goose Island Beer O. Project) DN (ABN Amro Bank LOC)+ 4.250% 03/07/00 ...................... 2,000 2,000,000 East Dundee, Kane and Cook Counties, IDA RB (Otto Engine Project)/ (Lasalle National Bank LOC) DN+ 3.950% 03/07/00 ...................... 950 950,000 Illinois Development Finance Authority PCR RB (Illinois Power Company Project) (ABN-AMRO Bank LOC) TECP 4.050% 08/17/00 ...................... 2,000 2,000,000 Illinois Educational Facilities Authority RB (National Louis University) Series 1999A DN (Banc One LOC)+ 3.900% 03/07/00 ...................... 1,200 1,200,000 Illinois Health Facilities Authority Revolving Fund Pooled Financing Program (The University of Chicago Project) MB++ 3.750% 03/30/00 ...................... 4,000 4,000,000 See Accompanying Notes to Financial Statements. 6 THE BEDFORD FAMILY THE RBB FUND, INC. MUNICIPAL MONEY MARKET PORTFOLIO STATEMENT OF NET ASSETS (CONTINUED) FEBRUARY 29, 2000 (UNAUDITED) PAR (000) VALUE ---------- ------------- ILLINOIS--(CONTINUED) Illinois Health Facility Authority RB MB (Evanston Hospital Corp.) Series A++ 3.550% 07/31/00 ..................... $ 6,000 $ 6,000,000 Plainfield, Village of, IDA RB Series 1997 (Plainfield Moldings, Inc. Project) DN (Algemene LOC)+ 3.950% 03/07/00 ..................... 1,260 1,260,000 ------------ 24,585,000 ------------ INDIANA--4.0% Indiana Development Finance Authority IDA RB (Enterprise Center II Project) DN (LOC Society National Bank Cleveland)+ 3.950% 03/07/00 ..................... 2,000 2,000,000 Indiana Development Finance Authority IDA RB (Enterprise Center IV Project) DN (LOC Society National Bank Cleveland)+ 3.950% 03/07/00 ..................... 2,600 2,600,000 Indiana Development Finance Authority Pollution Control Refunding RB (Southern Indiana Gas and Electric Co.) Series 1998A MB++ 3.000% 03/01/00 ..................... 2,900 2,900,000 Indiana State Development Finance Authority Economic Development RB DN (Saroyan Hardwoods Inc. Project) (Banc One Funding Corp. LOC)+ 4.000% 03/07/00 ..................... 1,550 1,550,000 Portage Economic Development RB (Breckenridge Apartments Project) DN (Comerica Bank Detroit LOC)+ 4.100% 03/07/00 ..................... 800 800,000 ------------ 9,850,000 ------------ KANSAS--0.7% Wyandotte County, Kansas City Municipal GO Notes Series 9 4.300% 02/01/01 ..................... 1,663 1,663,000 ------------ PAR (000) VALUE ---------- ------------- KENTUCKY--2.0% Henderson Industrial Building RB (Shamrock Technologies) 1997 DN (First Union National Bank LOC)+ 4.050% 03/07/00 ..................... $ 2,961 $ 2,961,000 Pulaski County Solid Waste Disposal Facilities PCR RB (East Kentucky Power) Series B MB++ 4.050% 08/15/00 ..................... 2,000 2,000,000 ------------ 4,961,000 ------------ MARYLAND--6.2% Anne Arundel County (Westdeutsche Landesbank Gironzentrale LOC) TECP 3.700% 05/11/00 ..................... 2,000 2,000,000 Maryland Health & Higher Education Facilities Authority RB (Johns Hopkins Hospital Project) DN (Bank America LOC)+ 3.850% 03/07/00 ..................... 7,000 7,000,000 Maryland State Stadium Authority Sports Facilities DN+ 3.950% 03/07/00 ..................... 6,400 6,400,000 ------------ 15,400,000 ------------ MASSACHUSETTS--1.2% Whiteman-Hanson Regional School District BAN 3.500% 03/24/00 ..................... 2,000 2,000,364 3.740% 07/07/00 ..................... 1,000 1,000,808 ------------ 3,001,172 ------------ MICHIGAN--3.8% Benton Harbor Area School District BAN 4.000% 08/31/00 ..................... 1,000 1,001,449 Michigan State Strategic Fund Limited Obligation RB (Dawnbreakers LLC Project) DN (Banc One N.A. LOC)+ 4.100% 03/07/00 ..................... 4,855 4,855,000 Pinckney Community Schools GO Notes 4.250% 06/30/00 ..................... 1,000 1,000,962 See Accompanying Notes to Financial Statements. 7 THE BEDFORD FAMILY THE RBB FUND, INC. MUNICIPAL MONEY MARKET PORTFOLIO STATEMENT OF NET ASSETS (CONTINUED) FEBRUARY 29, 2000 (UNAUDITED) PAR (000) VALUE ---------- ------------- MICHIGAN--(CONTINUED) Swartz Creek Community Schools State Aid Anticipation Notes GO Notes MB++ 3.600% 05/17/00 ..................... $ 2,500 $ 2,501,013 ------------ 9,358,424 ------------ MINNESOTA--0.8% Minneapolis GO Series 1998B DN (Bayerische Landesbank Girozentrale LOC)+ 3.750% 03/07/00 ..................... 1,885 1,885,000 ------------ MISSOURI--0.1% Kansas City IDA RB (Mid-America Health Services, Inc. Project) Series 1984 DN (Bank of New York LOC)+ 4.000% 03/07/00 ..................... 200 200,000 ------------ NEBRASKA--1.5% Lancaster County Industrial Development RB (Sun-Husker Foods, Inc. Project) DN (Bank of Tokyo LOC)+ 4.350% 03/07/00 ..................... 3,800 3,800,000 ------------ NEW HAMPSHIRE--1.2% New Hampshire State Business Finance Authority (New England Power) TECP 3.700% 04/24/00 ..................... 3,000 3,000,000 ------------ NEW JERSEY--3.2% Carlstadt County BAN 3.350% 03/29/00 ..................... 1,000 1,000,148 Cedar Grove Township GO Series 1999 BAN 3.500% 03/07/00 ..................... 2,292 2,292,145 Essex County Improvement Authority BAN (MIG) 3.500% 03/31/00 ..................... 2,000 2,000,556 Hillside Township BAN 3.625% 03/08/00 ..................... 2,210 2,210,194 PAR (000) VALUE ---------- ------------- NEW JERSEY--(CONTINUED) New Jersey Economic Development Authority RB (J. Jams Realty Co.) DN (First Union National Bank LOC)+ 3.900% 03/07/00 ..................... $ 460 $ 460,000 ------------ 7,963,043 ------------ NEW MEXICO--0.4% New Mexio State TRAN 4.500% 06/30/00 ..................... 1,000 1,002,103 ------------ NEW YORK--12.9% City of New York Transitional Finance Authority Series 1999B-1 DN (Morgan Guaranty Trust LOC)+ 3.750% 03/07/00 ..................... 3,200 3,200,000 Long Island Power Authority DN (MBIA Insurance LOC)+ 3.800% 03/07/00 ..................... 800 800,000 Long Island Power Authority Electric System Subordinated RB DN (Bayerische Landesbank Girozentrale LOC) DN+ 3.850% 03/07/00 ..................... 700 700,000 New York City GO (Morgan Guaranty LOC) DN+ 3.800% 03/07/00 ..................... 350 350,000 New York City GO Bonds DN (Morgan Guaranty LOC)+ 3.800% 03/07/00 ..................... 300 300,000 New York City GO DN (Bayerische Landesbank Girozentrale LOC)+ 3.750% 03/07/00 ..................... 2,300 2,300,000 New York State Dormitory Authority Reserves DN /(MBIA INSURANCE)+ 3.750% 03/07/00 ..................... 10,000 10,000,000 New York State Housing Finance Agency (Liberty View Apartments) Series 1997A DN (Federal National Mortgage Association LOC)+ 3.700% 03/07/00 ..................... 6,400 6,400,000 See Accompanying Notes to Financial Statements. 8 THE BEDFORD FAMILY THE RBB FUND, INC. MUNICIPAL MONEY MARKET PORTFOLIO STATEMENT OF NET ASSETS (CONTINUED) FEBRUARY 29, 2000 (UNAUDITED) PAR (000) VALUE ---------- ------------- NEW YORK--(CONTINUED) New York State Housing Finance Agency Union Square South Housing RB 1996 Series A DN (Bayerische Landesbank Girozentrale LOC)+ 3.700% 03/07/00 ..................... $ 7,500 $ 7,500,000 Port Authority of New York & New Jersey Versatile Structure Obligations DN (Bayerische Landesbank Girozentrale LOC)+ 3.750% 03/01/00 ..................... 400 400,000 ------------ 31,950,000 ------------ NORTH CAROLINA--11.8% Buncombe County Industrial Facilities and Pollution Control Financing Authority RB (Lustar Dyeing, Inc. Project) Series 1998 DN (First Union National Bank LOC)+ 4.050% 03/07/00 ..................... 2,500 2,500,000 Charlotte-Mecklenburg Hospital Authority RB (Health Care System Project) Series 1996B DN (Bank of America LOC)+ 3.800% 03/07/00 ..................... 3,400 3,400,000 Greensboro (Combined Enterprise Systems) DN /(Bank Of America LOC)+ 3.900% 03/07/00 ..................... 2,975 2,975,000 Guilford County Industrial Facilities and Pollution Control Financing Authority IDA RB (U.S. Label Corp. Project) Series 1995 DN (Wachovia Bank LOC)+ 4.000% 03/07/00 ..................... 700 700,000 Lee County Industrial Facilities and Pollution Control Financing Authority RB (Var-Arden Corp Project) Series 1999 DN (Comerica Bank Detroit LOC)+ 4.100% 03/07/00 ..................... 3,300 3,300,000 North Carolina Educational Facilities Financing Agency DN+ 3.900% 03/07/00 ..................... 8,100 8,100,000 PAR (000) VALUE ---------- ------------- NORTH CAROLINA--(CONTINUED) North Carolina Health Care Series 1985 DN (MBIA Insurance)+ 3.750% 03/07/00 ............................... $ 600 $ 600,000 North Carolina Medical Care Commission Hospital RB (Duke University Hospital Project) Series 1985B DN+ 3.800% 03/07/00 ............................... 2,000 2,000,000 North Carolina Medical Care Commission Hospital RB (Luthern Retirement Project) Series 1999 DN (Bank America LOC)+ 3.900% 03/07/00 ............................... 400 400,000 North Carolina Medical Care Community Hospital Lincoln Health System DN (NationsBank LOC)+ 3.900% 03/07/00 ............................... 3,100 3,100,000 Wake County Industrial Facility PCR RB (Carolina Power & Light Co.) Series 1985 A DN (Credit Suisse LOC)+ 3.800% 03/07/00 ............................... 2,000 2,000,000 ------------ 29,075,000 ------------ NORTH DAKOTA--0.4% North Dakota State Housing Finance Authority Home Mortgage RB Series C MB (FGIC Insurance)++ 3.200% 04/01/00 ............................... 1,000 1,000,000 ------------ OHIO--3.1% Allen City BAN 3.350% 04/13/00 ............................... 2,000 2,000,341 Butler County BAN 4.180% 03/15/00 ............................... 1,000 1,000,181 Cuyahoga County RB (The Cleveland Clinic) Series D DN (Bank America N.A. LOC)+ 3.850% 03/07/00 ............................... 300 300,000 Mansfield City School District BAN 4.400% 07/18/00 ............................... 1,000 1,001,668 See Accompanying Notes to Financial Statements. 9 THE BEDFORD FAMILY THE RBB FUND, INC. MUNICIPAL MONEY MARKET PORTFOLIO STATEMENT OF NET ASSETS (CONTINUED) FEBRUARY 29, 2000 (UNAUDITED) PAR (000) VALUE ---------- ------------- OHIO--(CONTINUED) Montgomery County Healthcare Facilities RB Series 1998 DN (National City Bank of Cleveland LOC)+ 3.950% 03/07/00 ............................... $ 570 $ 570,000 Toledo BAN 4.200% 05/18/00 ............................... 1,000 1,000,980 Union Township GO Notes 3.770% 05/26/00 ............................... 1,850 1,851,973 ------------ 7,725,143 ------------ OKLAHOMA--2.0% Oklahoma County Finance Authority IDA RB (Southwest Electric Co. Project) Series 1998 DN (Bank One of Milwaukee LOC)+ 4.000% 03/07/00 ............................... 2,865 2,865,000 Oklahoma Development Finance Authority (Shawnee Funding Limited) DN (Bank of Nova Scotia LOC)+ 4.050% 03/07/00 ............................... 2,000 2,000,000 ------------ 4,865,000 ------------ PUERTO RICO--0.8% Puerto Rico Electric Power Authority DN (Societe Generale LOC)+ 3.000% 03/07/00 ............................... 1,900 1,900,000 ------------ SOUTH CAROLINA--2.7% Berkeley County IDA RB (Nucor Corp. Guarantee Project) Series 1995 DN+ 4.000% 03/07/00 ............................... 2,300 2,300,000 Chesterfield County IDA RB (Culp, Inc.) DN (Wachovia LOC)+ 4.050% 03/07/00 ............................... 2,300 2,300,000 Marlboro County, IDA RB (Reliance Trading Corp. of America Project) 1997 DN (ABN AMRO Bank LOC)+ 3.950% 03/07/00 ............................... 1,100 1,100,000 PAR (000) VALUE ---------- ------------- SOUTH CAROLINA--(CONTINUED) South Carolina Jobs Economic Development Authority RB (Tate Metalworks, Inc. Project) 1998 DN (Wachovia LOC)+ 4.050% 03/07/00 ............................... $ 1,000 $ 1,000,000 ------------ 6,700,000 ------------ TENNESSEE--2.4% Morristown IDA (Petoskey Plastic Project) DN (Comerica Bank LOC)+ 4.200% 03/07/00 ............................... 6,000 6,000,000 ------------ TEXAS--7.9% Austin Airport System Revenue Financial Sevices Department - Merlots Series J First Union 2A-7 Merlots Series 2000 J (MBIA Insurance LOC) DN+ 4.050% 03/07/00 ............................... 1,000 1,000,000 Brazos River Harbor Navigational District TECP 3.900% 06/09/00 ............................... 9,980 9,980,000 Denton IDA (Hartzell Manufacturing Inc. Project) DN (National City Bank of Cleveland LOC)+ 4.300% 03/07/00 ............................... 1,300 1,300,000 Texas State TRAN 4.500% 08/31/00 ............................... 7,300 7,326,116 ------------ 19,606,116 ------------ VIRGINIA--5.9% Capital Region Airport Commission (Richmond International Airport Project) Series 1995 C DN (AMBAC Insurance)+ 3.900% 03/07/00 ............................... 565 565,000 Metropolitan Washington DC Airport Authority TECP 3.750% 04/17/00 ............................... 14,000 14,000,000 ------------ 14,565,000 ------------ See Accompanying Notes to Financial Statements 10 THE BEDFORD FAMILY THE RBB FUND, INC. MUNICIPAL MONEY MARKET PORTFOLIO STATEMENT OF NET ASSETS (CONCLUDED) FEBRUARY 29, 2000 (UNAUDITED) PAR (000) VALUE ---------- ------------- WASHINGTON--0.8% Washington State DN+ 3.960% 03/07/00 ............................... $ 2,000 $ 2,000,000 ------------ WISCONSIN--5.0% Franklin, City Of, IDA RB Series 1998 (All Glass Aquarium Co., Inc. Project) DN (Banc One Funding Corp. LOC)+ 4.000% 03/07/00 ............................... 4,390 4,390,000 Mequon, City of, IDA RB (Johnson Level GRW Investment Project) DN (Bank One Fundim Corp. LOC)+ 4.000% 03/07/00 ............................... 2,345 2,345,000 Rapids City IDA RB (Theile Kaolin of Wisconsin, Inc. Project) DN (Suntrust Bank LOC)+ 4.050% 03/07/00 ............................... 2,250 2,250,000 Wisconsin Housing & Economic Development Authority MB (Transamerica Life And Annuity Company)++ 4.060% 03/07/00 ............................... 3,300 3,300,000 ------------ 12,285,000 ------------ TOTAL MUNICIPAL BONDS (Cost $245,037,887) ....................... 245,037,887 ------------ TOTAL INVESTMENTS AT VALUE--99.2% (Cost $245,037,887*) .......................... 245,037,887 ------------ OTHER ASSETS IN EXCESS OF LIABILITIES--0.8% .......................... 1,897,986 ------------ NET ASSETS (Applicable to 130,486,325 Bedford shares, 219,708 Cash Preservation shares, 116,303,638 Janney Montgomery Scott shares, and 800 other shares)--100.0% ............................... $246,935,873 ============ NET ASSET VALUE, Offering and redemption price per share ($246,935,873 / 247,010,471) .................. $1.00 ===== * Also cost for Federal income tax purposes. + Variable Rate Demand Notes -- The interest rate shown is the rate as of February 29, 2000 and the maturity date shown is the longer of the next interest readjustment date or the date the principal amount shown can be recovered through demand. ++ Put Bonds -- Maturity date is the put date. INVESTMENT ABBREVIATIONS AMT ................................................. Alternative Minimum Tax BAN .................................................. Bond Anticipation Note DN .............................................................. Demand Note GO ...................................................... General Obligations LOC ........................................................ Letter of Credit IDA ........................................ Industrial Development Authority MB ........................................................... Municipal Bond PCR ............................................... Pollution Control Revenue RAN ............................................... Revenue Anticipation Note RAW ........................................... Revenue Anticipation Warrants RB ............................................................. Revenue Bond TAN ................................................... Tax Anticipation Note TECP ............................................ Tax Exempt Commercial Paper TRAN ...................................... Tax and Revenue Anticipation Note See Accompanying Notes to Financial Statements. 11 THE BEDFORD FAMILY THE RBB FUND, INC. GOVERNMENT OBLIGATIONS MONEY MARKET PORTFOLIO STATEMENT OF NET ASSETS FEBRUARY 29, 2000 (UNAUDITED) PAR (000) VALUE ---------- ------------- AGENCY OBLIGATIONS--36.5% FEDERAL HOME LOAN BANK--13.9% 5.160% 03/08/00 ............................... $ 5,000 $ 4,999,522 5.810% 03/17/00 ............................... 5,900 5,884,765 5.810% 03/23/00 ............................... 4,470 4,454,129 5.010% 04/28/00 ............................... 15,000 14,998,693 5.075% 04/28/00 ............................... 9,500 9,489,582 5.560% 05/03/00 ............................... 8,000 7,922,160 5.510% 05/17/00 ............................... 20,000 19,764,294 ------------ 67,513,145 ------------ FEDERAL HOME LOAN MORTGAGE CORPORATION--13.6% 5.765% 05/11/00 ............................... 10,000 9,886,301 5.800% 05/18/00 ............................... 5,000 4,937,167 5.810% 05/18/00 ............................... 10,000 9,874,117 5.835% 05/25/00 ............................... 25,000 24,655,573 5.200% 06/30/00 ............................... 10,000 9,825,222 5.988% 01/16/01 ............................... 7,000 6,626,273 ------------ 65,804,653 ------------ FEDERAL NATIONAL MORTGAGE ASSOCIATION--9.0% 5.060% 03/15/00 ............................... 4,000 3,998,708 5.730% 04/13/00 ............................... 10,000 9,931,558 5.750% 04/27/00 ............................... 20,000 19,817,917 5.460% 06/21/00 ............................... 5,000 4,999,709 5.900% 12/01/00 ............................... 5,000 4,993,178 ------------ 43,741,070 ------------ TOTAL AGENCY OBLIGATIONS (Cost $177,058,868) ....................... 177,058,868 ------------ VARIABLE RATE OBLIGATIONS--29.5% FEDERAL HOME LOAN BANK--5.2% 5.855% 03/01/00+ .............................. 10,000 9,999,399 5.739% 03/13/00+ .............................. 15,000 14,997,218 ------------ 24,996,617 ------------ FEDERAL NATIONAL MORTGAGE ASSOCIATION--19.2% 5.703% 03/02/00+ .............................. 10,000 9,997,160 5.973% 03/22/00+ .............................. 13,000 12,998,023 5.970% 03/23/00+ .............................. 35,000 34,998,632 5.883% 05/05/00+ .............................. 25,000 24,997,243 5.915% 05/09/00+ .............................. 10,000 9,997,361 ------------ 92,988,419 ------------ PAR (000) VALUE ---------- ------------- STUDENT LOAN MARKETING ASSOCIATION--3.1% 6.531% 03/07/00+ .............................. $10,000 $ 10,000,000 6.481% 08/03/00+ .............................. 5,000 5,008,163 ------------ 15,008,163 ------------ STUDENT LOAN MARKETING ASSOCIATION MASTER NOTES--2.1% 6.031% 03/07/00+ .............................. 10,000 10,000,000 ------------ TOTAL VARIABLE RATE OBLIGATIONS (Cost $142,993,199) ....................... 142,993,199 ------------ REPURCHASE AGREEMENTS--33.7% Lehman Brothers Inc. (Agreement dated 02/29/00 to be repurchased at $33,405,214 collateralized by $29,585,013 par Federal Converted Gold Bond Certificates of Participation 6.50% to 9.50% due 04/01/08 to 12/01/22, $43,939,499 par Federal Home Loan Mortgage Corporation Certificates of Participation 8.50% to 10.00% due 10/01/03 to 10/01/17, $91,742,706 par Federal National Mortgage Association Strip 6.00% to 10.50% due 09/01/12 to 07/01/29. Market Value of collateral is $34,178,505.) 5.620% 03/01/00 ............................... 33,400 33,400,000 Morgan Stanley & Co. Inc. (Agreement dated 02/29/00 to be repurchased at $100,016,491 collaterlized by $94,470,700 Federal National Mortgage Association 6.00% and 6.625% due 05/15/08 and 09/15/09, $8,765,512 Federal Home Loan Mortgage Corp. 6.75% due 09/15/29. Market Value of collateral is $103,236,212.) 5.937% 03/01/00 ............................... 100,000 100,000,000 See Accompanying Notes to Financial Statements. 12 THE BEDFORD FAMILY THE RBB FUND, INC. GOVERNMENT OBLIGATIONS MONEY MARKET PORTFOLIO STATEMENT OF NET ASSETS (CONCLUDED) FEBRUARY 29, 2000 (UNAUDITED) PAR (000) VALUE ---------- ------------- REPURCHASE AGREEMENTS--(CONTINUED) Warburg Dillion Read (Agreement dated 02/11/00 to be repurchased at $10,049,514 collaterlized by $10,740,000 par Federal National Mortgage Strip 7.50% due 05/01/18. Market Value of collateral is $10,279,389.) 5.750% 03/13/00 ................................. $10,000 $ 10,000,000 Warburg Dillion Read (Agreement dated 02/14/00 to be repurchased at $5,074,190 collaterlized by $6,020,000 par Federal National Mortgage Association Strip 6.00% due 02/01/29. Market Value of collateral is $5,140,106.) 5.870% 05/15/00 ................................. 5,000 5,000,000 Warburg Dillion Read (Agreement dated 02/22/00 to be repurchased at $15,223,125 collaterlized by $5,085,000 par Federal National Mortgage Association Conventional Pooled Loan due 01/01/01, $9,912,327 par Federal Converted Gold Bond Certificates of Participation 7.00% due 01/01/11, and $6,055,000 Federal National Mortgage Association Conventional Pooled Loan due 01/01/10. Market Value of collateral is $15,430,439.) 5.950% 05/22/00. ............................... 15,000 15,000,000 ------------ TOTAL REPURCHASE AGREEMENTS (Cost $163,400,000) ......................... 163,400,000 ------------ TOTAL INVESTMENTS AT VALUE--99.8% (Cost $483,452,067*) ............................ 483,452,067 ------------ VALUE ------------ OTHER ASSETS IN EXCESS OF LIABILITIES--0.2% ............................ $ 1,018,764 ------------ NET ASSETS (Applicable to 97,094,548 Bedford shares, 387,433,812 Janney Montgomery Scott shares and 800 other shares)--100% ................................... $484,470,831 ============ NET ASSET VALUE, Offering and redemption price per share ($484,470,831 / 484,529,160) .................... $1.00 ===== * Also cost for Federal income tax purposes. + Variable Rate Obligations -- The interest rate is the rate as of February 29, 2000 and the maturity date shown is the longer of the next interest readjustment date or the date the principal amount shown can be recovered through demand. See Accompanying Notes to Financial Statements. 13 THE BEDFORD FAMILY THE RBB FUND, INC. STATEMENTS OF OPERATIONS FOR THE SIX MONTHS ENDED FEBRUARY 29, 2000 (UNAUDITED)
GOVERNMENT MUNICIPAL OBLIGATIONS MONEY MARKET MONEY MARKET MONEY MARKET PORTFOLIO PORTFOLIO PORTFOLIO ------------ ------------ ------------ Investment Income Interest ........................................... $83,785,587 $4,482,447 $13,372,029 ----------- ---------- ----------- Expenses Distribution fees .................................. 5,228,683 746,306 1,459,407 Investment advisory fees ........................... 5,310,677 434,321 1,034,610 Administration fees ................................ -- 124,384 -- Transfer agent fees ................................ 225,049 64,586 123,203 Service organization fees .......................... 284,235 -- -- Printing fees ...................................... 273,934 32,802 91,694 Custodian fees ..................................... 214,102 28,933 46,102 Legal fees ......................................... 73,444 6,019 9,425 Registration fees .................................. 45,000 23,000 30,000 Audit fees ......................................... 80,076 9,789 14,737 Directors' fees .................................... 65,456 5,778 10,153 Insurance expense .................................. 10,988 1,227 2,213 Miscellaneous ...................................... -- 630 1,296 ----------- ---------- ----------- 11,811,644 1,477,775 2,822,840 Less fees waived ................................... (707,606) (361,136) (403,120) Less expense reimbursement by advisor .............. (157,665) (26,002) -- ----------- ---------- ----------- Total expenses ................................ 10,946,373 1,090,637 2,419,720 ----------- ---------- ----------- Net investment income ................................. 72,839,214 3,391,810 10,952,309 ----------- ---------- ----------- Net realized gain (loss) on investments ............... (602) -- (1,087) ----------- ---------- ----------- Net increase in net assets resulting from operations .. $72,838,612 $3,391,810 $10,951,222 =========== ========== ===========
See Accompanying Notes to Financial Statements. 14 THE BEDFORD FAMILY THE RBB FUND, INC. STATEMENTS OF CHANGES IN NET ASSETS
MUNICIPAL MONEY MONEY MARKET PORTFOLIO MARKET PORTFOLIO ---------------------------------- ---------------------------------- FOR THE FOR THE FOR THE FOR THE SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED FEBRUARY 29, 2000 AUGUST 31, 1999 FEBRUARY 29, 2000 AUGUST 31, 1999 ----------------- --------------- ----------------- --------------- (UNAUDITED) (UNAUDITED) Increase (decrease) in net assets: Operations: Net investment income ................ $ 72,839,214 $ 115,658,458 $ 3,391,810 $ 6,771,609 Net gain (loss) on investments ....... (602) 72,320 -- -- -------------- -------------- ---------------- -------------- Net increase in net assets resulting from operations .......... 72,838,612 115,730,778 3,391,810 6,771,609 -------------- -------------- ---------------- -------------- Distributions to shareholders: Dividends to shareholders from Net Investment Income: Bedford shares ..................... (9,490,228) (28,089,918) (1,850,391) (3,903,796) Cash Preservation shares ........... (3,610) (7,069) (2,870) (4,151) Janney Montgomery Scott shares ........................... (26,738,928) (43,156,041) (1,538,549) (2,863,662) Principal shares ................... (5,268,052) (2,455,484) -- -- Sansom Street shares ............... (22,195,668) (36,008,586) -- -- Select shares ...................... (9,142,728) (5,941,360) -- -- -------------- -------------- ---------------- -------------- (72,839,214) (115,658,458) (3,391,810) (6,771,609) Dividends to shareholders from Net Realized Short-Term Gains in excess of Net Investment Income: Bedford shares ..................... -- (2,671) -- -- Cash Preservation shares ........... -- (1) -- -- Janney Montgomery Scott shares ........................... -- (2,921) -- -- Principal shares ................... -- -- -- -- Sansom Street shares ............... -- (2,010) -- -- Select shares ...................... -- (102) -- -- -------------- -------------- ---------------- -------------- -- (7,705) -- -- Total Dividends to shareholders ................... (72,839,214) (115,666,163) (3,391,810) (6,771,609) -------------- -------------- ---------------- -------------- Net capital share transactions (Note 3) (188,628,536) 423,497,416 (18,095,591) 19,860,650 -------------- -------------- ---------------- -------------- Total increase/(decrease) in net assets ........................... (188,629,138) 423,562,031 (18,095,591) 19,860,650 Net Assets: Beginning of period .................. 2,739,120,331 2,315,558,300 265,031,464 245,170,814 ------------- -------------- ---------------- -------------- End of period ........................ $2,550,041,193 $2,739,120,331 $ 246,935,873 $ 265,031,464 ============== ============== ================ ==============
GOVERNMENT OBLIGATIONS MONEY MARKET PORTFOLIO --------------------------------- FOR THE FOR THE SIX MONTHS ENDED YEAR ENDED FEBRUARY 29, 2000 AUGUST 31, 1999 ----------------- --------------- (UNAUDITED) Increase (decrease) in net assets: Operations: Net investment income $ 10,952,309 $ 21,447,328 Net gain (loss) on investments (1,087) (37,985) ---------------- -------------- Net increase in net assets resulting from operations 10,951,222 21,409,343 ---------------- -------------- Distributions to shareholders: Dividends to shareholders from Net Investment Income: Bedford shares (2,281,187) (5,251,973) Cash Preservation shares -- -- Janney Montgomery Scott shares (8,671,122) (16,195,355) Principal shares -- -- Sansom Street shares -- -- Select shares -- -- ---------------- -------------- (10,952,309) (21,447,328) Dividends to shareholders from Net Realized Short-Term Gains in excess of Net Investment Income: Bedford shares -- -- Cash Preservation shares -- -- Janney Montgomery Scott shares -- -- Principal shares -- -- Sansom Street shares -- -- Select shares -- -- ---------------- -------------- -- -- Total Dividends to shareholders (10,952,309) (21,447,328) ---------------- -------------- Net capital share transactions (Note 3) 2,075,709 (25,077,711) ---------------- -------------- Total increase/(decrease) in net assets 2,074,622 (25,115,696) Net Assets: Beginning of period 482,396,209 507,511,905 ---------------- -------------- End of period $ 484,470,831 $ 482,396,209 ================ ==============
See Accompanying Notes to Financial Statements. 15 THE BEDFORD FAMILY THE RBB FUND, INC. FINANCIAL HIGHLIGHTS (c) (FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
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) Net asset value, beginning of period ................$ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 ----------- ---------- -------- -------- -------- Income from investment operations: Net investment income .... 0.0237 0.0425 0.0473 0.0462 0.0469 ----------- ---------- -------- -------- -------- Total from investment operations ......... 0.0237 0.0425 0.0473 0.0462 0.0469 ----------- ---------- -------- -------- -------- Less distributions Dividends (from net investment income) ..... (0.0237) (0.0425) (0.0473) (0.0462) (0.0469) ----------- ---------- -------- -------- -------- Total distributions .. (0.0237) (0.0425) (0.0473) (0.0462) (0.0469) ----------- ---------- -------- -------- -------- Net asset value, end of period ...................$ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 =========== ========== ======== ======== ======== Total Return ............... 2.37%(d) 4.34% 4.84% 4.72% 4.79% Ratios /Supplemental Data Net assets, end of period (000) .......... $ 442,146 $ 360,123 $762,739 $1,392,911 $1,109,334 Ratios of expenses to average net assets ..... .97%(a)(b) .97%(a) .97%(a) .97%(a) .97%(a) Ratios of net investment income to average net assets ............. 4.76%(b) 4.25% 4.73% 4.62% 4.69%
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) Net asset value, beginning of period ................ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 -------- -------- ------- -------- -------- Income from investment operations: Net investment income .... 0.0135 0.0243 0.0286 0.0285 0.0288 -------- -------- ------- -------- -------- Total from investment operations ......... 0.0135 0.0243 0.0286 0.0285 0.0288 -------- -------- ------- -------- -------- Less distributions Dividends (from net investment income) ..... (0.0135) (0.0243) (0.0286) (0.0285) (0.0288) -------- -------- ------- -------- -------- Total distributions .. (0.0135) (0.0243) (0.0286) (0.0285) (0.0288) -------- -------- ------- -------- -------- Net asset value, end of period ................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 ======== ======== ======= ======== ======== Total Return ............... 1.35%(d) 2.46% 2.97% 2.88% 2.92% Ratios /Supplemental Data Net assets, end of period (000) .......... $130,415 $150,278 $147,633 $213,034 $201,940 Ratios of expenses to average net assets ..... .89%(a)(b) .89%(a) .89%(a) .85%(a) .84%(a) Ratios of net investment income to average net assets ............. 2.71%(b) 2.43% 2.86% 2.85% 2.88%
(a) Without the waiver of advisory, administration and transfer agent fees and without the reimbursement of certain operating expenses, the ratios of expenses to average net assets for the Money Market Portfolio would have been 1.02% for the six months ended February 29, 2000, 1.08%, 1.10%, 1.12% and 1.14% for the years ended August 31, 1999, 1998, 1997 and 1996, respectively. For the Municipal Money Market Portfolio, the ratios of expenses to average net assets would have been 1.18% for the six months ended February 29, 2000, 1.15%, 1.15%, 1.14% and 1.12% for the years ended August 31, 1999, 1998, 1997 and 1996, respectively. (b) Annualized. (c) Financial Highlights relate solely to the Bedford Class of shares within each portfolio. (d) Non-Annualized. See Accompanying Notes to Financial Statements. 16 THE BEDFORD FAMILY THE RBB FUND, INC. FINANCIAL HIGHLIGHTS (c) (FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
GOVERNMENT OBLIGATIONS MONEY MARKET PORTFOLIO ---------------------------------------------------------------- FOR THE FOR THE FOR THE FOR THE FOR THE SIX MONTHS YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED FEBRUARY 29, AUGUST 31, AUGUST 31, AUGUST 31, AUGUST 31, 2000 1999 1998 1997 1996 ------------ --------- ---------- ---------- --------- (UNAUDITED) Net asset value, beginning of period .................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 -------- -------- -------- -------- -------- Income from investment operations: Net investment income ...... 0.0225 0.0409 0.0464 0.0449 0.0458 -------- -------- -------- -------- -------- Total from investment operations ........... 0.0225 0.0409 0.0464 0.0449 0.0458 -------- -------- -------- -------- -------- Less distributions Dividends (from net investment income) ....... (0.0225) (0.0409) (0.0464) (0.0449) (0.0458) -------- -------- -------- -------- -------- Total distributions .... (0.0225) (0.0409) (0.0464) (0.0449) (0.0458) -------- -------- -------- -------- -------- Net asset value, end of period .............. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 ======== ======== ======== ======== ======== Total Return ................. 2.25%(d) 4.17% 4.74% 4.59% 4.68% Ratios /Supplemental Data Net assets, end of period (000) ............. $ 97,097 $113,050 $128,447 $209,715 $192,599 Ratios of expenses to average net assets ....... .975%(a)(b) .975%(a) .975%(a) .975%(a) .975%(a) Ratios of net investment income to average net assets ............... 4.52%(b) 4.09% 4.63% 4.49% 4.58% (a) Without the waiver of advisory, administration and transfer agent fees and without the reimbursement of certain operating expenses, the ratios of expenses to average net assets for the Government Obligations Portfolio would have been 1.14% for the six months ended February 29, 2000, 1.13%, 1.10%, 1.09% and 1.10% for the years ended August 31, 1999, 1998, 1997 and 1996, respectively. (b) Annualized (c) Financial Highlights relate solely to the Bedford Class of shares within each portfolio. (d) Non-Annualized.
See Accompanying Notes to Financial Statements. 17 THE BEDFORD FAMILY THE RBB FUND, INC. NOTES TO FINANCIAL STATEMENTS FEBRUARY 29, 2000 (UNAUDITED) NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The RBB Fund, Inc. (the "Fund") is registered under the Investment Company Act of 1940, as amended, as an open-end management investment company. The Fund was incorporated in Maryland on February 29, 1988. The Fund has authorized capital of thirty billion shares of common stock of which 20.03 billion shares are currently classified into ninety-nine classes. Each class represents an interest in one of seventeen investment portfolios of the Fund. The classes have been grouped into fifteen separate "families", ten of which have begun investment operations: the Bedford Family, the Principal Family, the Sansom Street Family, the Janney Montgomery Scott Family, the Cash Preservation Family, the Select Family, the n/i Family, the Boston Partners Family, the Bogle Family and the Schneider Family. The Bedford Family represents interests in three portfolios, which are covered in this report. A) SECURITY VALUATION -- Portfolio securities are valued under the amortized cost method, which approximates current market value. Under this method, securities are valued at cost when purchased and thereafter a constant proportionate amortization of any discount or premium is recorded until maturity of the security. Regular review and monitoring of the valuation is performed in an attempt to avoid dilution or other unfair results to shareholders. The Portfolio seeks to maintain net asset value per share at $1.00. B) SECURITY TRANSACTIONS AND INVESTMENT INCOME -- Security transactions are accounted for on the trade date. The cost of investments sold is determined by use of the specific identification method for both financial reporting and income tax purposes. Interest income is recorded on the accrual basis. Certain expenses, principally distribution, transfer agency and printing, are class specific expenses and vary by class. Expenses not directly attributable to a specific portfolio or class are allocated based on relative net assets of each portfolio and class, respectively. C) DISTRIBUTIONS TO SHAREHOLDERS -- Dividends from net investment income are declared daily and paid monthly. Any net realized capital gains are distributed at least annually. Income distributions and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. D) FEDERAL INCOME TAXES -- No provision is made for Federal taxes. It is the Fund's intention to have each portfolio continue to qualify for and elect the tax treatment applicable to regulated investment companies under the Internal Revenue Code and make the requisite distributions to its shareholders which will be sufficient to relieve it from Federal income and excise taxes. E) REPURCHASE AGREEMENTS -- Money market instruments may be purchased subject to the seller's agreement to repurchase them at an agreed upon date and price. The seller will be required on a daily basis to maintain the value of the securities subject to the agreement at not less than the repurchase price plus accrued interest. If the value of the underlying securities falls below 102% of the value of the purchase price plus accrued interest, the Fund will require the seller to deposit additional collateral by the next Fund business day. In the event that the seller under the agreement defaults on its repurchase obligation or fails to deposit sufficient collateral, the Fund has the contractual right, subject to the requirements of applicable bankruptcy and insolvency laws, to sell the underlying securities and may claim any resulting loss from the seller. The agreements are conditioned upon the collateral being deposited under the Federal Reserve book-entry system or with the Fund's custodian or a third party sub-custodian. 18 THE BEDFORD FAMILY THE RBB FUND, INC. NOTES TO FINANCIAL STATEMENTS (CONTINUED) FEBRUARY 29, 2000 (UNAUDITED) NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) F) USE OF ESTIMATES -- The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. NOTE 2. TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES Pursuant to Investment Advisory Agreements, BlackRock Institutional Management Corp. ("BIMC"), an indirect majority-owned subsidiary of The PNC Financial Services Group, Inc., serves as investment advisor for the portfolios described herein, and also serves as administrator for the Money Market and the Government Obligations Money Market Portfolios. For the Money Market and Government Obligations Money Market Portfolios, BIMC and PFPC, Inc. ("PFPC") have entered into a delegation agreement, whereas PFPC has agreed to perform Administration and Accounting services for an annual fee of .10% of the average net assets of the portfolios. For its advisory services, BIMC is entitled to receive the following fees, computed daily and payable monthly based on each portfolio's average daily net assets: PORTFOLIO ANNUAL RATE ---------------------------- -------------------------------------------- Money Market and Government .45% of first $250 million of net assets; Obligations Money Market .40% of next $250 million of net assets; Portfolios .35% of net assets in excess of $500 million. Municipal Money Market .35% of first $250 million of net assets; Portfolio .30% of next $250 million of net assets; .25% of net assets in excess of $500 million. BIMC may, at its discretion, voluntarily waive all or any portion of its advisory fee for these portfolios. For each class of shares within a respective portfolio, the net advisory fee charged to each class is the same on a relative basis. For the six months ended February 29, 2000, advisory fees and waivers for the three investment portfolios were as follows:
GROSS NET ADVISORY ADVISORY FEE WAIVER FEE ------------ --------- ----------- Money Market Portfolio $5,310,677 $(707,609) $4,603,068 Municipal Money Market Portfolio 434,321 (358,156) 76,165 Government Obligations Money Market Portfolio 1,034,610 (403,120) 631,490
The investment advisor has agreed to reimburse each portfolio for the amount, if any, by which the net operating expenses exceed the expense cap. For the six months ended February 29, 2000 the reimbursed expenses were $157,665 and $26,002, for the Money Market Portfolio and Municipal Money Market Portfolio, respectively. 19 THE BEDFORD FAMILY THE RBB FUND, INC. NOTES TO FINANCIAL STATEMENTS (CONTINUED) FEBRUARY 29, 2000 (UNAUDITED) NOTE 2. TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES (CONTINUED) In addition, PFPC Trust Co. serves as custodian for each of the Fund's portfolios. PFPC serves as each class's transfer and dividend disbursing agent. Both PFPC Trust Co. and PFPC are wholly-owned subsidiaries of PFPC Worldwide Inc., an indirect majority owned subsidiary of The PNC Financial Services Group, Inc. PFPC may, at its discretion, voluntarily waive all or any portion of its transfer agency fee for any class of shares. For the six months ended February 29, 2000, transfer agency fees and waivers for each class of shares within the three investment portfolios were as follows:
GROSS NET TRANSFER AGENCY TRANSFER AGENCY FEE WAIVER FEE --------------- ------------ ----------------- Money Market Portfolio Bedford Class $ -- $ -- $ -- Cash Preservation Class -- -- -- Janney Montgomery Scott Class 213,047 -- 213,047 Principal Class 3,900 -- 3,900 Sansom Street Class 6,702 -- 6,702 Select 1,400 -- 1,400 -------- ------- -------- Total Money Market Portfolio $225,049 $ -- $225,049 ======== ======= ======== Municipal Money Market Portfolio Bedford Class $ 32,954 $ -- $ 32,954 Cash Preservation Class 3,371 (2,980) 391 Janney Montgomery Scott Class 28,261 -- 28,261 -------- ------- -------- Total Municipal Money Market Portfolio $ 64,586 $(2,980) $ 61,606 ======== ======= ======== Government Obligations Money Market Portfolio Bedford Class $ 34,094 $ -- $ 34,094 Janney Montgomery Scott Class 89,109 -- 89,109 -------- ------- -------- Total Government Obligations Money Market Portfolio $123,203 $ -- $123,203 ======== ======= ========
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:
GROSS NET ADMINISTRATION ADMINISTRATION FEE WAIVER FEE -------------- ------ -------------- Municipal Money Market Portfolio $124,384 $ -- $124,384
20 THE BEDFORD FAMILY THE RBB FUND, INC. NOTES TO FINANCIAL STATEMENTS (CONTINUED) FEBRUARY 29, 2000 (UNAUDITED) NOTE 2. TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES (CONTINUED) The Fund, on behalf of each class of shares within the three investment portfolios, has adopted Distribution Plans pursuant to Rule 12b-1 under the Investment Company Act of 1940, as amended. The Fund has entered into Distribution Contracts with Provident Distributors Inc. ("PDI"), which provide for each class to make monthly payments, based on average net assets, to PDI of up to .65% on an annualized basis for the Bedford, Cash Preservation, Principal, and Janney Montgomery Scott Classes and up to .20% on an annualized basis for the Sansom Street Class. For the six months ended February 29, 2000, distribution fees for each class were as follows: DISTRIBUTION FEE ------------ Money Market Portfolio Bedford Class $1,195,289 Cash Preservation Class 301 Janney Montgomery Scott Class 3,394,889 Principal Class 425,466 Sansom Street Class 212,738 ---------- Total Money Market Portfolio $5,228,683 ========== Municipal Money Market Portfolio Bedford Class $ 409,741 Cash Preservation Class 436 Janney Montgomery Scott Class 336,129 ---------- Total Municipal Money Market Portfolio $ 746,306 ========== Government Obligations Money Market Portfolio Bedford Class $ 302,977 Janney Montgomery Scott Class 1,156,430 ---------- Total Government Obligations Money Market Portfolio $1,459,407 ========== The Fund has entered into service agreements with banks affiliated with PNC Bank who render support services to customers who are the beneficial owners of the Sansom Street Class in consideration of the payment of .10% of the daily net asset value of such shares. For the six months ended February 29, 2000, service organization fees were $284,235 for the Money Market Portfolio. 21 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 MONEY MARKET PORTFOLIO MARKET PORTFOLIO ---------------------------------- ---------------------------------- FOR THE FOR THE FOR THE FOR THE SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED FEBRUARY 29, 2000 AUGUST 31, 1999 FEBRUARY 29, 2000 AUGUST 31, 1999 ----------------- --------------- ----------------- --------------- (UNAUDITED) (UNAUDITED) VALUE VALUE VALUE VALUE ----------------- ---------------- ----------------- --------------- Shares sold: Bedford Class $ 434,830,491 $ 1,676,808,408 $ 131,724,543 $ 471,166,299 Cash Preservation Class 168,234 114,454 32,443 178,689 Janney Montgomery Scott Class 2,959,249,169 4,931,373,936 225,816,326 445,130,179 Principal Class 300,341,761 318,334,115 -- -- Sansom Street Class 1,562,831,873 2,907,994,377 -- -- Select Class 1,740,715,743 1,439,090,920 -- -- --------------- ---------------- ------------- ------------- Total Shares Purchased 6,998,137,271 11,273,716,210 357,573,312 916,475,167 Shares issued in reinvestment of dividends: Bedford Class 9,382,916 28,217,868 1,855,138 3,895,215 Cash Preservation Class 3,501 7,224 2,822 3,980 Janney Montgomery Scott Class 26,565,909 43,272,113 1,534,459 2,871,349 Principal Class 5,254,007 2,206,341 -- -- Sansom Street Class 13,465,885 26,800,967 -- -- Select Class -- 347,980 -- -- --------------- ---------------- ------------- ------------- Total Shares Reinvested 54,672,218 100,852,493 3,392,419 6,770,544 Shares repurchased: Bedford Class (362,189,722) (2,107,674,545) (153,443,382) (472,416,562) Cash Preservation Class (65,144) (217,053) (29,929) (60,295) Janney Montgomery Scott Class (2,843,076,015) (4,790,786,046) (225,588,011) (430,908,204) Principal Class (294,544,481) (102,006,633) -- -- Sansom Street Class (2,172,852,992) (2,741,000,161) -- -- Select Class (1,568,709,671) (1,209,386,849) -- -- --------------- ---------------- ------------- ------------- Total Shares Repurchased (7,241,438,025) (10,951,071,287) (379,061,322) (903,385,061) --------------- ---------------- ------------- ------------- Net increase (decrease) $ (188,628,536) $ 423,497,416 $ (18,095,591) $ 19,860,650 =============== ================ ============= ============= Bedford Shares authorized 1,5000,000,000 1,500,000,000 500,000,000 500,000,000 =============== ================ ============= =============
22 THE BEDFORD FAMILY THE RBB FUND, INC. NOTES TO FINANCIAL STATEMENTS (CONTINUED) FEBRUARY 29, 2000 (UNAUDITED) NOTE 3. CAPITAL SHARES (CONTINUED) GOVERNMENT OBLIGATIONS MONEY MARKET PORTFOLIO ------------------------------------ FOR THE FOR THE SIX MONTHS ENDED YEAR ENDED FEBRUARY 29, 2000 AUGUST 31, 1999 ---------------- --------------- (UNAUDITED) VALUE VALUE ---------------- --------------- Shares sold: Bedford Class $ 88,788,231 $ 351,502,731 Janney Montgomery Scott Class 820,165,509 1,424,893,515 ------------- --------------- Total Shares Sold 908,953,740 1,776,396,246 Shares issued in reinvestment of dividends: Bedford Class 2,297,170 5,293,048 Janney Montgomery Scott Class 8,635,361 16,337,605 ------------- --------------- Total Shares Reinvested 10,932,531 21,630,653 Shares repurchased: Bedford Class (107,038,243) (372,183,308) Janney Montgomery Scott Class (810,772,319) (1,450,921,302) ------------- --------------- Total Shares Repurchased (917,810,562) (1,823,104,610) ------------- --------------- Net increase (decrease) $ 2,075,709 $ (25,077,711) ============= =============== Bedford Shares authorized 500,000,000 500,000,000 ============= =============== 23 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:
GOVERNMENT MUNICIPAL OBLIGATIONS MONEY MARKET MONEY MARKET MONEY MARKET PORTFOLIO PORTFOLIO PORTFOLIO -------------- ------------ ------------ Capital paid-in $2,550,547,824 $246,954,810 $484,541,710 Accumulated net realized gain (loss) on investments (56,631) (18,937) (70,879) -------------- ------------ ------------ $2,550,491,193 $246,935,873 $484,470,831 ============== ============ ============
NOTE 5. CAPITAL LOSS CARRYOVER At August 31, 1999 capital loss carryovers were available to offset future realized gains as follows: $18,937 in the Municipal Money Market Portfolio of which, $444 expires in 2000, $1,058 expires in 2001, $9,789 expires in 2002, $674 expires in 2004, $3,917 expires in 2005, and $3,055 expires in 2006; $57,342 in the Government Obligations Money Market Portfolio of which $12,275 expires in 2004, $1,291 expires in 2005, $5,792 expires in 2006, and $37,984 expires in 2007. The Municipal Money Market Portfolio had $55,760 of capital loss carryover that expired in 1999. 24 THE BEDFORD FAMILY THE RBB FUND, INC. NOTES TO FINANCIAL STATEMENTS (CONTINUED) FEBRUARY 29, 2000 (UNAUDITED) NOTE 6. OTHER FINANCIAL HIGHLIGHTS The Fund currently offers five other classes of shares representing interests in the Money Market Portfolio: Janney Montgomery Scott, Cash Preservation, Principal, Sansom Street, and Select. The Fund currently offers two other classes of shares representing interests in the Municipal Money Market Portfolio: Janney Montgomery Scott and Cash Preservation. The Fund currently offers one other class of shares representing interests in the Government Obligations Money Market Portfolio: Janney Montgomery Scott. Each class is marketed to different types of investors. Financial Highlights of Cash Preservation Class are not presented in this report due to their immateriality. Such information is available in the annual report of the Cash Preservation Family. The financial highlights of certain of the other classes are as follows: THE JANNEY MONTGOMERY SCOTT FAMILY (c)
MONEY MARKET PORTFOLIO ---------------------------------------------------------------- FOR THE FOR THE FOR THE FOR THE FOR THE SIX MONTHS YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED FEBRUARY 29, AUGUST 31, AUGUST 31, AUGUST 31, AUGUST 31, 2000 1999 1998 1997 1996 ------------- ---------- ---------- ---------- ---------- (UNAUDITED) Net asset value, beginning of year or period ........$ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 ----------- ---------- -------- -------- -------- Income from investment operations: Net investment income .... 0.0235 0.0422 0.0469 0.0459 0.0465 ----------- ---------- -------- -------- -------- Total from investment operations ......... 0.0235 0.0422 0.0469 0.0459 0.0465 ----------- ---------- -------- -------- -------- Less distributions Dividends (from net investment income) ..... (0.0235) (0.0422) (0.0469) (0.0459) (0.0465) ----------- ---------- -------- -------- -------- Total distributions .. (0.0235) (0.0422) (0.0469) (0.0459) (0.0465) ----------- ---------- -------- -------- -------- Net asset value, end of year or period ...........$ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 =========== ========== ======== ======== ======== Total Return ............... 2.35%(d) 4.30% 4.81% 4.69% 4.76% Ratios /Supplemental Data Net assets, end of year or period (000) .......... $ 1,231,144 $1,088,405 $904,526 $736,855 $561,865 Ratios of expenses to average net assets ..... 1.00%(a)(b) 1.00%(a) 1.00%(a) 1.00%(a) 1.00%(a) Ratios of net investment income to average net assets ............. 4.73%(b) 4.22% 4.69% 4.59% 4.65% (a) Without the waiver of advisory, transfer agent fees and reimbursement of certain operating expenses, the ratios of expenses to average net assets for the Money Market Portfolio would have been 1.05% for the six months ended February 29, 2000, 1.19%, 1.21%, 1.22% and 1.23% for the years ended August 31, 1999, 1998, 1997 and 1996, respectively. (b) Annualized. (c) Financial Highlights relate solely to the Janney Montgomery Scott Class of shares within each portfolio. (d) Non-Annualized.
25 THE BEDFORD FAMILY THE RBB FUND, INC. NOTES TO FINANCIAL STATEMENTS (CONTINUED) FEBRUARY 29, 2000 (UNAUDITED) NOTE 6. OTHER FINANCIAL HIGHLIGHTS (CONTINUED) THE JANNEY MONTGOMERY SCOTT FAMILY (c) (CONTINUED)
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) Net asset value, beginning of year or period ........ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 -------- -------- ------- -------- -------- Income from investment operations: Net investment income .... 0.0137 0.0246 0.0290 0.0285 0.0278 -------- -------- ------- -------- -------- Total from investment operations ......... 0.0137 0.0246 0.0290 0.0285 0.0278 -------- -------- ------- -------- -------- Less distributions Dividends (from net investment income) ..... (0.0137) (0.0246) (0.0290) (0.0285) (0.0278) -------- -------- ------- -------- -------- Total distributions .. (0.0137) (0.0246) (0.0290) (0.0285) (0.0278) -------- -------- ------- -------- -------- Net asset value, end of year or period ........... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 ======== ======== ======= ======== ======== Total Return ............... 1.37%(d) 2.94% 2.94% 2.89% 2.81% Ratios /Supplemental Data Net assets, end of year or period (000) .......... $116,301 $114,539 $ 97,445 $108,826 $ 89,428 Ratios of expenses to average net assets ..... 0.86%(a)(b) 0.86%(a) 0.86%(a) 0.85%(a) 0.94%(a) Ratios of net investment income to average net assets ............. 2.75%(b) 2.46% 2.90% 2.85% 2.78% (a) Without the waiver of advisory, administration and transfer agent fees and without the reimbursement of certain operating expenses, the ratios of expenses to average net assets for the Municipal Money Market Portfolio would have been 1.18% for the six months ended February 29, 2000, 1.20%, 1.16%, 1.13% and 1.23% for the years ended August 31, 1999, 1998, 1997 and 1996, respectively. (b) Annualized. (c) Financial Highlights relate solely to the Janney Montgomery Scott Class of shares within each portfolio. (d) Non-Annualized.
26 THE BEDFORD FAMILY THE RBB FUND, INC. NOTES TO FINANCIAL STATEMENTS (CONTINUED) FEBRUARY 29, 2000 (UNAUDITED) NOTE 6. OTHER FINANCIAL HIGHLIGHTS (CONTINUED) THE JANNEY MONTGOMERY SCOTT FAMILY (C) (CONTINUED)
GOVERNMENT OBLIGATIONS MONEY MARKET PORTFOLIO ---------------------------------------------------------------- FOR THE FOR THE FOR THE FOR THE FOR THE SIX MONTHS YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED FEBRUARY 29, AUGUST 31, AUGUST 31, AUGUST 31, AUGUST 31, 2000 1999 1998 1997 1996 ------------ --------- ---------- ---------- --------- (UNAUDITED) Net asset value, beginning of year or period .......... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 -------- -------- -------- -------- -------- Income from investment operations: Net investment income ...... 0.0224 0.0406 0.0460 0.0447 0.0456 -------- -------- -------- -------- -------- Total from investment operations ........... 0.0224 0.0406 0.0460 0.0447 0.0456 -------- -------- -------- -------- -------- Less distributions Dividends (from net investment income) ....... (0.0224) (0.0406) (0.0460) (0.0447) (0.0456) -------- -------- -------- -------- -------- Total distributions .... (0.0224) (0.0406) (0.0460) (0.0447) (0.0456) -------- -------- -------- -------- -------- Net asset value, end of period .............. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 ======== ======== ======== ======== ======== Total Return ................. 2.24%(d) 4.14% 4.71% 4.56% 4.66% Ratios /Supplemental Data Net assets, end of year or period (000) ..... $387,374 $369,346 $379,065 $352,950 $306,757 Ratios of expenses to average net assets ....... 1.00%(a)(b) 1.00%(a) 1.00%(a) 1.00%(a) 1.00%(a) Ratios of net investment income to average net assets ............... 4.50%(b) 4.06% 4.60% 4.47% 4.56% (a) Without the waiver of advisory, transfer agent fees and reimbursement of certain operating expenses, the ratios of expenses to average net assets for the Government Obligations Money Market Portfolio would have been 1.13% for the six months ended February 29, 2000, 1.21%, 1.23%, 1.23% and 1.25% for the years ended August 31, 1999, 1998, 1997 and 1996, respectively. (b) Annualized. (c) Financial Highlights relate solely to the Janney Montgomery Scott Class of shares within each portfolio. (d) Non-Annualized.
27 THE BEDFORD FAMILY THE RBB FUND, INC. NOTES TO FINANCIAL STATEMENTS (CONTINUED) FEBRUARY 29, 2000 (UNAUDITED) NOTE 6. OTHER FINANCIAL HIGHLIGHTS (CONTINUED) THE SANSOM STREET FAMILY (c)
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) Net asset value, beginning of year or period .............. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 -------- -------- -------- -------- -------- Income from investment operations: Net investment income ................... 0.0259 0.0473 0.0520 0.0510 0.0518 -------- -------- -------- -------- -------- Total from investment operations ...... 0.0259 0.0473 0.0520 0.0510 0.0518 -------- -------- -------- -------- -------- Less distributions Dividends (from net investment income) .. (0.0259) (0.0473) (0.0520) (0.0510) (0.0518) -------- -------- -------- -------- -------- Total distributions ................... (0.0259) (0.0473) (0.0520) (0.0510) (0.0518) -------- -------- -------- -------- -------- Net asset value, end of year or period ..... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 ======== ======== ======== ======== ======== Total Return ............................... 2.59%(d) 4.83% 5.34% 5.22% 5.30% Ratios/Supplemental Data Net assets, end of year or period ..... $245,332 $841,887 $684,066 $570,018 $524,359 Ratios of expenses to average net assets .49%(a)(b) .49%(a) .49%(a) .49%(a) .48%(a) Ratios of net investment income to average net assets .................... 5.22%(b) 4.73% 5.20% 5.10% 5.18% (a) Without the waiver of advisory and reimbursement of certain operating expenses, the ratios of expenses to average net assets for the Money Market Portfolio would have been .55% for the six months ended February 29, 2000, .62%, .62%, .64% and .65% for the years ended August 31, 1999, 1998, 1997 and 1996, respectively. (b) Annualized. (c) Financial highlights relate solely to the Sansom Street Class of shares within the portfolio. (d) Non-Annualized.
28 THE BEDFORD FAMILY THE RBB FUND, INC. NOTES TO FINANCIAL STATEMENTS (CONTINUED) FEBRUARY 29, 2000 (UNAUDITED) NOTE 6. OTHER FINANCIAL HIGHLIGHTS (CONTINUED) THE SELECT FAMILY (b)
MONEY MARKET PORTFOLIO ---------------------------------------- FOR THE FOR THE PERIOD SIX MONTHS ENDED DECEMBER 15, 1998 FEBRUARY 29, 2000 TO AUGUST 31, 1999 (c) ----------------- --------------------- (Unaudited) Net asset value, beginning of period ...... $ 1.00 $ 1.00 ------- ------- Income from investment operations: Net investment income .................. 0.0272 0.0345 ------- ------- Total from investment operations ..... 0.0272 0.0345 ------- ------- Less distributions Dividends (from net investment income).. (0.0272) (0.0345) ------- ------- Total distributions .................. (0.0272) (0.0345) ------- ------- Net asset value, end of period ............ $ 1.00 $ 1.00 ======= ======= Total Return .............................. 2.72%(e) 3.50%(e) Ratios/Supplemental Data Net assets, end of period .............. $402,050 $230,044 Ratios of expenses to average net assets .................. .27%(a)(d) .27%(a)(d) Ratios of net investment income to average net assets ................... 5.47%(d) 4.82%(d) (a) Without the waiver of advisory and reimbursement of certain operating expenses, the ratios of expenses to average net assets for the Money Market Portfolio would have been .40% for the six months ended February 29, 2000, and .41% for the period ended August 31, 1999. (b) Financial Highlights relate solely to the Select Class of shares. (c) On December 15, 1998 the Money Market Portfolio's Select Class began operations. (d) Annualized. (e) Non-Annualized.
29 THE BEDFORD FAMILY THE RBB FUND, INC. NOTES TO FINANCIAL STATEMENTS (CONCLUDED) FEBRUARY 29, 2000 (UNAUDITED) NOTE 6. OTHER FINANCIAL HIGHLIGHTS (CONTINUED) THE PRINCIPAL FAMILY (b)
MONEY MARKET PORTFOLIO ----------------------------------------- FOR THE FOR THE PERIOD SIX MONTHS ENDED JUNE 1, 1999 FEBRUARY 29, 2000 TO AUGUST 31, 1999 (c) ------------------ --------------------- (UNAUDITED) Net asset value, beginning of period ......... $ 1.00 $ 1.00 --------- --------- Income from investment operations: Net investment income ..................... 0.0246 0.0110 --------- --------- Total from investment operations ........ 0.0246 0.0110 --------- --------- Less distributions Dividends (from net investment income) .... (0.0246) (0.0110) --------- --------- Total distributions ..................... (0.0246) (0.0110) --------- --------- Net asset value, end of period ............... $ 1.00 $ 1.00 ========= ========= Total Return ................................. 2.46%(e) 1.10%(e) Ratios/Supplemental Data Net assets, end of period ................. $ 229,581 $218,530 Ratios of expenses to average net assets .. .77%(a)(d) .77%(a)(d) Ratios of net investment income to average net assets ...................... 4.95%(d) 4.36%(d) (a) Without the waiver of advisory and reimbursement of certain operating expenses, the ratios of expenses to average net assets for the Money Market Portfolio would have been .81% for the six months ended February 29, 2000, and .85% for the year ended August 31, 1999. (b) Financial highlights relate solely to the Principal Family of shares within the portfolio. (c) On June 1, 1999 the Money Market Portfolio's Principal Class began operations. (d) Annualized. (e) Non-Annualized.
Morgan Keegan & Company, Inc./Morgan Keegan Tower/ Fifty Front Street/Memphis, Tennessee 38103 -----END PRIVACY-ENHANCED MESSAGE-----