-----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, DKkedWxqSrhK/ycCizdsp3GXHgc9+q6Z3I9DdIfIisSZ/7YBZs6BaFd1hiVw94bo 3wk6/MDNqbYmKjMAK/ioIA== 0000935069-01-500109.txt : 20010507 0000935069-01-500109.hdr.sgml : 20010507 ACCESSION NUMBER: 0000935069-01-500109 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20010228 FILED AS OF DATE: 20010504 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: 1622054 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 w01-0367.txt BEDFORD MUNICIPAL MONEY MARKET SEMI ANNUAL 2001 ================================================================================ THE BEDFORD MUNICIPAL MONEY MARKET PORTFOLIO MUNICIPAL MONEY MARKET PORTFOLIO -------------------------------------------- ================================================================================ SEMI-ANNUAL REPORT FEBRUARY 28, 2001 THE BEDFORD FAMILY THE RBB FUND, INC. SEMI-ANNUAL INVESTMENT ADVISER'S REPORT The impact of the Federal Reserve's restrictive monetary policy became evident in the second half of 2000 as the nation's gross domestic product (GDP) decelerated to 2.2% in the third quarter and to just 1% in the fourth quarter. This marked a sharp slowdown from the 5.2% rate of growth in the first half of 2000. Consumer spending, which accounts for two thirds of GDP, led the slowdown as the year ended. Consumer confidence also weakened in reaction to the spike in energy prices earlier in the year and the extent of the decline in stock market valuations. Finally, corporate profits also deteriorated over the course of the year and earnings short-falls and warning announcements became the norm, well into the first quarter of 2001. The municipal money markets saw yields decline over the last two quarters, in tandem with the Fed's rate cuts. Supply and demand also had a strong impact on tax-exempt yields. The fourth quarter of 2000, for example, experienced some of the highest yields of the year as dealer inventories were cleared out before year-end. Assets continued to pour into tax-exempt money funds during the period as the stock market sell-off pumped new cash into the market. Credit quality also became a growing concern during the last six months. The problems with certain California utilities and the health of the Japanese banking system were two widely publicized issues that helped reiterate the importance of high quality investments. RBB Municipal Money Market Portfolio ended February with a 33-day average weighted maturity and assets of $145 million. BlackRock Institutional Management Corporation (Please dial toll-free 800-430-9618 for questions regarding your account or contact your broker.) THE BEDFORD FAMILY THE RBB FUND, INC. MUNICIPAL MONEY MARKET PORTFOLIO STATEMENT OF NET ASSETS FEBRUARY 28, 2001 (UNAUDITED) PAR (000) VALUE ------ ------------ MUNICIPAL BONDS--99.1% ALABAMA--3.7% Columbia IDA PCR RB AMT Series 1998 DN (South Trust Bank LOC)+ 3.250% 03/01/01 ............................. $3,700 $ 3,700,000 Tuscaloosa County IDA RB Series DN AMT 2000 A (SouthTrust Bank LOC)+ 3.720% 03/07/01 ............................. 1,640 1,640,000 ------------ 5,340,000 ------------ FLORIDA--1.4% Putnam County Development Authority PCR RB (National Rural Utilities Co-op Seminole Electric Project) Series H 1984 MB++ 4.150% 03/15/01 ............................. 2,000 2,000,000 ------------ GEORGIA--4.3% Atlanta Water & Wastewater RB Municipal Trust Certificate Series ZTC-4 MB++ 4.400% 05/01/01 ............................. 3,205 3,205,000 Forsyth County Development Authority DN (SunTrust Bank LOC)+ 3.500% 03/07/01 ............................. 3,000 3,000,000 ------------ 6,205,000 ------------ HAWAII--1.4% Hawaii State Housing Finance & Development Corporation Rental Housing System RB DN Series 1990 B (Ind. Bank of Japan LOC)+ 4.000% 03/07/01 ............................. 2,000 2,000,000 ------------ ILLINOIS--14.1% Addison, Village Of, Dupage County, IDA RB AMT (General Binding Corp. Project) 1988 DN (ABN AMRO Bank LOC)+ 3.550% 03/07/01 ............................. 1,450 1,450,000 Chicago O'Hare International Airport RB AMT DN Series ZTC 8+ 3.670% 03/07/01 ............................. 4,980 4,980,000 PAR (000) VALUE ------ ------------ ILLINOIS--(CONTINUED) Chicago Skyway Toll Bridge RB Municipal Trust Certificate ZTC 3 DN (Ambac Insurance, ZCM Matched Funding)+ 3.570% 03/07/01 ............................. $1,665 $ 1,665,000 Chicago, City Of, IDA RB AMT (Goose Island Beer O. Project) DN (ABN AMRO Bank LOC)+ 3.870% 03/07/01 ............................. 1,900 1,900,000 East Dundee, Kane and Cook Counties, IDA RB AMT (Otto Engine Project) (ABN AMRO Bank LOC) DN+ 3.600% 03/07/01 ............................. 900 900,000 Illinois Development Finance Authority PCR RB (Illinois Power Company Project) (ABN AMRO Bank LOC) MB++ 3.300% 04/17/01 ............................. 2,000 2,000,000 Illinois Development Finance Authority Multifamily RB DN P Floats Pt-515 (Merrill Lynch & Co. Inc. LOC)+ 3.870% 03/07/01 ............................. 1,500 1,500,000 Illinois Health Facilities Authority Revolving Fund Pooled Financing Program (The University of Chicago Project) MB++ 4.350% 03/07/01 ............................. 4,100 4,100,000 Illinois Metropolitan Pier Expo Authority Eagle Tax-Exempt Trust Series 20001306 DN (FGIC Insurance)+ 3.570% 03/07/01 ............................. 1,000 1,000,000 Illinois State Sales Tax RB Series O (Escrowed To Maturity in U.S. Treasuries) MB++ 6.000% 02/28/01 ............................. 1,000 1,004,646 ------------ 20,499,646 ------------ INDIANA--5.9% Bremen IDA RB Series 1996 A (Universal Bearings, Inc. Project Private Placement) DN (Keybank LOC)+ 3.800% 03/07/01 ............................. 3,100 3,100,000 Indiana Development Finance Authority IDA RB (Enterprise Center II Project) DN (Bank One Illinois Key Bank LOC)+ 3.400% 03/07/01 ............................. 3,000 3,000,000 See Accompanying Notes to Financial Statements. 2 THE BEDFORD FAMILY THE RBB FUND, INC. MUNICIPAL MONEY MARKET PORTFOLIO STATEMENT OF NET ASSETS (CONTINUED) FEBRUARY 28, 2001 (UNAUDITED) PAR (000) VALUE ------ ------------ INDIANA--(CONTINUED) Indiana State Development Finance Authority Economic Development AMT RB DN (Saroyan Hardwoods Inc. Project) (Bank One Funding Corp. LOC)+ 3.750% 03/07/01 ............................. $1,400 $ 1,400,000 Indiana State Educational Facilities Authority BAN Series 2000B 4.850% 05/03/01 ............................. 1,000 1,000,584 ------------ 8,500,584 ------------ KENTUCKY--6.1% Henderson Industrial Building RB AMT (Shamrock Technologies) 1997 DN (First Union National Bank LOC)+ 3.750% 03/07/01 ............................. 2,581 2,581,000 Jefferson County (Atlas Manufacturing Industrial Building) RB AMT Series 1999 DN (Bank One Kentucky LOC)+ 3.750% 03/07/01 ............................. 4,200 4,200,000 Kentucky Interlocal School Transportation Association TRAN Series 2000 5.000% 06/29/01 ............................. 2,000 2,003,776 ------------ 8,784,776 ------------ MARYLAND--2.1% Maryland State Economic Development Corp. RB AMT (John Schmitz & Sons Inc. Project) DN (Allfirst Bank LOC)+ 3.670% 03/07/01 ............................. 3,000 3,000,000 ------------ MASSACHUSETTS--2.6% Freetown Lakeville School District BAN Series 2001 3.500% 07/06/01 ............................. 3,000 3,001,489 Massachusetts State Health & Educational Facilities Authority RB Berklee College of Music DN (SBPA Credit Suisse LOC)+ 2.900% 03/07/01 ............................. 700 700,000 ------------ 3,701,489 ------------ PAR (000) VALUE ------ ------------ MICHIGAN--6.4% Michigan State Strategic Fund Saginaw Pro Limited Obligation RB Series 2001 AMT DN (Comerica Bank Detroit LOC)+ 3.850% 03/07/01 ............................. $3,500 $ 3,500,000 Michigan State Strategic Fund Limited AMT DN (Banc One LOC)+ 3.750% 03/07/01 ............................. 1,700 1,700,000 Michigan State Strategic Fund Limited Obligation RB Series 2000 AMT DN (Comerica Bank LOC)+ 3.650% 03/07/01 ............................. 3,000 3,000,000 Oakland County Economic Development Corp. Glass & Mirror Limited Obligation RB Series 2000 AMT DN (Banc One LOC)+ 3.650% 03/07/01 ............................. 1,200 1,200,000 ------------ 9,400,000 ------------ MINNESOTA--1.8% Minneapolis GO Notes DN (Bayerische Landesbank Girozentrale LOC)+ 3.350% 03/07/01 ............................. 300 300,000 Minneapolis GO Bonds Series 2000 A DN (Bayerische Landesbank Girozentrale LOC)+ 3.350% 03/07/01 ............................. 600 600,000 Minneapolis GO Judgment Bonds Series 2000 DN (Bayerische Landesbank Girozentrale LOC)+ 3.350% 03/07/01 ............................. 1,000 1,000,000 Minneapolis GO Bonds Series 1999 (Convention Center Project) DN (Bayerische Hypo-Uno Vereinsbank LOC)+ 3.350% 03/07/01 ............................. 550 550,000 Minneapolis GO Bonds Series 1994 A DN (Bayerische Landesbank Girozentrale LOC)+ 3.350% 03/07/01 ............................. 150 150,000 ------------ 2,600,000 ------------ See Accompanying Notes to Financial Statements. 3 THE BEDFORD FAMILY THE RBB FUND, INC. MUNICIPAL MONEY MARKET PORTFOLIO STATEMENT OF NET ASSETS (CONTINUED) FEBRUARY 28, 2001 (UNAUDITED) PAR (000) VALUE ------ ------------ MISSOURI--1.3% Maries County IDA RB (Kingsford) Tax-Exempt Adjustable Mode Solid Waste Series 1993 DN (Clorox LOC)+ 3.650% 03/07/01 ............................. $1,900 $ 1,900,000 ------------ NEBRASKA--2.6% Lancaster County IDA RB AMT (Sun-Husker Foods, Inc. Project) DN (Bank of Tokyo LOC)+ 6.500% 03/07/01 ............................. 3,800 3,800,000 ------------ NEW JERSEY--0.7% Aberdeen Township BAN 4.900% 08/16/01 ............................. 1,000 1,001,980 ------------ NEW YORK--4.4% New York City Housing Development Corp. Multi-Family Rental Housing RB DN (FNMA LOC)+ 3.000% 03/07/01 ............................. 200 200,000 New York State Housing Finance Agency (750 Sixth Avenue Housing) RB AMT DN Series 1999 A (FNMA LOC)+ 3.050% 03/07/01 ............................. 1,250 1,250,000 New York State Local Government Assistance Corp. RB Series 1991 A (Pre refunded) MB++ 7.125% 03/07/01 ............................. 3,000 3,087,403 Ulster County IDA RB 1998A AMT (Viking Industries, Inc. Project) DN (Key Corp. Bank N.A. LOC)+ 3.460% 03/07/01 ............................. 1,845 1,845,000 ------------ 6,382,403 ------------ NORTH CAROLINA--4.2% Gates County Industrial Facilities PCR RB AMT (Coxe-Lewis Project) DN (First Union National Bank LOC)+ 3.750% 03/07/01 ............................. 1,760 1,760,000 Green County Industrial Facilities PCR RB DN (Wachovia LOC)+ 3.600% 03/07/01 ............................. 500 500,000 PAR (000) VALUE ------ ------------ NORTH CAROLINA--(CONTINUED) Guilford County Industrial Facilities PCR RB DN Series 2000 (Bank of America LOC)+ 3.650% 03/07/01 ............................. $ 800 $ 800,000 Iredell County Industrial Facilities PCR RB (B and B Fabricators Project) Series 1999 DN (Bank America N.A. LOC)+ 3.650% 03/07/01 ............................. 1,000 1,000,000 Lee County Industrial Facilities PCR RB AMT (Var-Arden Corp Project) Series 1999 DN (Comerica Bank Detroit LOC)+ 3.650% 03/07/01 ............................. 200 200,000 Wilkes County Industrial Facilities PCR RB AMT (Schas Circular Industries, Inc. Project) Series 1997A DN (Marine Midland LOC)+ 3.500% 03/07/01 ............................. 1,800 1,800,000 ------------ 6,060,000 ------------ OHIO--10.7% Cuyahoga County (Cleveland Gear) IDA RB AMT DN Series 1998 (Key Corp. Bank N.A. LOC)+ 3.460% 03/07/01 ............................. 800 800,000 Forest Park BAN Series 2000 5.260% 10/11/01 ............................. 1,200 1,205,708 Indian Hill Village Economic Development RB DN Series 1999 (Fifth Third Bank LOC)+ 3.250% 03/07/01 ............................. 1,000 1,000,000 Jefferson County BAN Series 2000 4.980% 11/15/01 ............................. 2,000 2,002,434 Lebanon BAN Series 2001 Fourth Renewal 3.850% 06/07/01 ............................. 1,000 1,001,000 Nordonia Hills BAN Series A 4.750% 03/20/01 ............................. 1,000 1,000,231 North Olmsted BAN Series 2001 3.750% 07/31/01 ............................. 1,000 1,002,687 Ohio State University TECP Series 1999B 4.100% 04/09/01 ............................. 2,500 2,500,000 See Accompanying Notes to Financial Statements. 4 THE BEDFORD FAMILY THE RBB FUND, INC. MUNICIPAL MONEY MARKET PORTFOLIO STATEMENT OF NET ASSETS (CONTINUED) FEBRUARY 28, 2001 (UNAUDITED) PAR (000) VALUE ------ ------------ OHIO--(CONTINUED) Olmsted Falls BAN Series 2000 4.700% 10/26/01 ............................. $ 650 $ 651,017 Perry County BAN Series 2000 4.750% 04/20/01 ............................. 1,385 1,385,648 Sidney City School District BAN Series 2001 3.920% 08/07/01 ............................. 1,000 1,002,247 Trumbull County IDA RB Series 1995 DN (Society National Bank LOC)+ 3.460% 03/07/01 ............................. 2,030 2,030,000 ------------ 15,580,972 ------------ OKLAHOMA--0.9% Oklahoma County Finance Authority IDA RB AMT (Southwest Electric Co. Project) Series 1998 DN (Bank One Oklahoma LOC)+ 3.750% 03/07/01 ............................. 1,320 1,320,000 ------------ PUERTO RICO--0.1% Puerto Rico Government Development Bank Series 1985 DN (MBIA Insurance; Credit Suisse SBPA)+ 1.900% 03/07/01 ............................. 100 100,000 ------------ SOUTH CAROLINA--1.5% Charleston County GO Bonds Series 2001B MB++ 6.500% 03/07/01 ............................. 1,200 1,233,425 Lexington County School District TAN Series 2000 5.000% 04/12/01 ............................. 1,000 1,000,717 ------------ 2,234,142 ------------ TENNESSEE--5.7% City of Jackson IDA RB (Quadion Corporation Project) AMT DN (Suntrust Bank, N.A. LOC)+ 3.650% 03/07/01 ............................. 2,600 2,600,000 Morristown IDA AMT (Petoskey Plastic Project) DN (Comerica Bank LOC)+ 3.750% 03/07/01 ............................. 5,735 5,735,000 ------------ 8,335,000 ------------ PAR (000) VALUE ------ ------------ TEXAS--10.5% Austin Airport System Revenue Financial Sevices Department AMT First Union 2A-7 Merlots Series 2000 J (MBIA Insurance) DN+ 3.350% 03/07/01 ............................. $3,000 $ 3,000,000 Austin Electric Utility RB DN (Financial Security Assurance LOC)+ 3.560% 03/07/01 ............................. 1,000 1,000,000 Denton IDA AMT (Hartzell Manufacturing Inc. Project) DN (National City Bank of Cleveland LOC)+ 3.800% 03/07/01 ............................. 1,300 1,300,000 Haltom City IDA RB AMT DN 1995 (ABN AMRO LOC)+ 3.280% 03/07/01 ............................. 1,000 1,000,000 Harris County Sub Lien Toll Road Service RB AMT DN Series 1994-C (Morgan Guaranty LOC)+ 3.100% 03/07/01 ............................. 300 300,000 Harris County Toll Road Unlimited Tax RB Series 4F DN (Morgan Guaranty LOC)+ 3.100% 03/07/01 ............................. 200 200,000 Port Arthur Navigation District Environmental Facilities RB (Motiva Enterprises Project) DN+ 3.450% 03/07/01 ............................. 2,500 2,500,000 Texas State Municipal Trust Certification ZTC 5 College Student Loan RB AMT DN Series 2000 (ZCM Matched Funding LOC)+ 3.670% 03/07/01 ............................. 5,990 5,990,000 ------------ 15,290,000 ------------ UTAH--0.6% Salt Lake City Flexible Rate RB DN (Pooled Hospital Financing Program) (West Landesbank LOC)+ 3.150% 03/07/01 ............................. 900 900,000 ------------ See Accompanying Notes to Financial Statements. 5 THE BEDFORD FAMILY THE RBB FUND, INC. MUNICIPAL MONEY MARKET PORTFOLIO STATEMENT OF NET ASSETS (CONCLUDED) FEBRUARY 28, 2001 (UNAUDITED) PAR (000) VALUE ------ ------------ VIRGINIA--3.5% Dinwiddie County IDA RB AMT DN (Chaparrel Facility) Series 1999A (Bank of America LOC)+ 3.250% 03/07/01 ............................. $ 700 $ 700,000 Metro Washington DC Airport Authority AMT TECP 3.250% 07/13/01 ............................. 4,000 4,000,000 Smyth County IDA RB (Summit Properties Project) AMT DN (Fifth Third Bank LOC)+ 3.700% 03/07/01 ............................. 400 400,000 ------------ 5,100,000 ------------ WASHINGTON--0.7% Port Seattle RB Series D MB++ 5.500% 02/01/02 ............................. 1,000 1,019,344 ------------ WISCONSIN--1.2% Beloit School District TRAN Series 2000 4.550% 10/26/01 ............................. 500 500,157 Mequon, City of, IDA RB AMT (Johnson Level GRW Investment Project) DN (Bank One Wisconsin LOC)+ 3.750% 03/07/01 ............................. 1,180 1,180,000 ------------ 1,680,157 ------------ WYOMING--0.7% Wyoming County Development Authority Housing RB 1999 Series 5 MB++ 4.250% 08/01/01 ............................. 1,000 1,000,249 ------------ TOTAL MUNICIPAL BONDS (Cost $143,735,742) ..................... 143,735,742 ------------ TOTAL INVESTMENTS AT VALUE--99.1% (Cost $143,735,742*) ........................ 143,735,742 ------------ OTHER ASSETS IN EXCESS OF LIABILITIES--0.9% ........................ 1,331,693 ------------ NET ASSETS--100.0% ............................. $145,067,435 ============ * Also cost for Federal income tax purposes. + Variable Rate Demand Notes -- The interest rate shown is the rate as of February 28, 2001 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 ZTC ....................................................Zurich Trust Certificate See Accompanying Notes to Financial Statements. 6 THE BEDFORD FAMILY THE RBB FUND, INC. STATEMENT OF OPERATIONS FOR THE SIX MONTHS ENDED FEBRUARY 28, 2001 (UNAUDITED) MUNICIPAL MONEY MARKET PORTFOLIO ------------ Investment Income Interest ............................................ $2,937,745 ---------- Expenses Investment advisory fees ............................ 245,031 Distribution fees ................................... 455,111 Transfer agent fees ................................. 11,085 Printing fees ....................................... 43,314 Custodian fees ...................................... 18,895 Registration fees ................................... 43,450 Legal fees .......................................... 6,882 Directors' fees ..................................... 3,326 Insurance expense ................................... 1,430 Audit fees .......................................... 2,754 Service organization fees ........................... -- Miscellaneous ....................................... 1,014 Administration fees ................................. 70,009 ---------- 902,301 Less fees waived .................................... (257,565) Less expense reimbursement by advisor ............... (14,164) ---------- Total expenses ................................. 630,572 ---------- Net investment income .................................. 2,307,173 ---------- Realized gain (loss) on investments .................... (11,120) ---------- Net increase in net assets resulting from operations ... $2,296,053 ---------- See Accompanying Notes to Financial Statements. 7 THE BEDFORD FAMILY THE RBB FUND, INC. STATEMENTS OF CHANGES IN NET ASSETS MUNICIPAL MONEY MARKET PORTFOLIO ------------------------------------ FOR THE FOR THE SIX MONTHS ENDED YEAR ENDED FEBRUARY 28, 2001 AUGUST 31, 2000 ----------------- --------------- (UNAUDITED) Increase (decrease) in net assets: Operations: Net investment income ............... $ 2,307,173 $ 6,958,598 Net gain (loss) on investments ...... (11,120) -- ------------ ------------- Net increase in net assets resulting from operations ......... 2,296,053 6,958,598 ------------ ------------- Distributions to shareholders: Dividends to shareholders from Net Investment Income: Bedford shares .................... (2,303,985) (3,912,970) Cash Preservation shares .......... (3,188) (6,360) Janney Montgomery Scott shares .... -- (3,039,268) ------------ ------------- Total Dividends to shareholders .................. (2,307,173) (6,958,598) ------------ ------------- Net capital share transactions (Note 3) 22,789,394 (142,742,303) ------------ ------------- Total increase/(decrease) in net assets 22,778,274 (142,742,303) Net Assets: Beginning of period ................. 122,289,161 265,031,464 ------------ ------------- End of period ....................... $145,067,435 $ 122,289,161 ============ ============= See Accompanying Notes to Financial Statements. 8 THE BEDFORD FAMILY THE RBB FUND, INC. FINANCIAL HIGHLIGHTS (a) (FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
MUNICIPAL MONEY MARKET PORTFOLIO ------------------------------------------------------------------ FOR THE FOR THE FOR THE SIX MONTHS YEAR YEAR ENDED ENDED ENDED FEBRUARY 28, AUGUST 31, AUGUST 31, 2001 2000 1999 -------- -------- -------- (UNAUDITED) Net asset value, beginning of year or period .......... $ 1.00 $ 1.00 $ 1.00 -------- -------- -------- Income from investment operations: Net investment income ............................... 0.0164 0.0301 0.0243 -------- -------- -------- Total from investment operations ................... 0.0164 0.0301 0.0243 -------- -------- -------- Less distributions Dividends (from net investment income) .............. (0.0164) (0.0301) (0.0243) -------- -------- -------- Total distributions ................................ (0.0164) (0.0301) (0.0243) -------- -------- -------- Net asset value, end of year or period ................ $ 1.00 $ 1.00 $ 1.00 ======== ======== ======== Total Return ........................................ 1.65(b) 3.05% 2.46% Ratios /Supplemental Data Net assets, end of year or period (000) ............. $144,878 $131,201 $150,278 Ratios of expenses to average net assets ............ .90%(c)(d) .89%(c) .89%(c) Ratios of net investment income to average net assets 3.29%(d) 2.98% 2.43% MUNICIPAL MONEY MARKET PORTFOLIO ---------------------------------- FOR THE FOR THE YEAR YEAR ENDED ENDED AUGUST 31, AUGUST 31, 1998 1997 -------- -------- Net asset value, beginning of year or period .......... $ 1.00 $ 1.00 -------- -------- Income from investment operations: Net investment income ............................... 0.0286 0.0285 -------- -------- Total from investment operations ................... 0.0286 0.0285 -------- -------- Less distributions Dividends (from net investment income) .............. (0.0286) (0.0285) -------- -------- Total distributions ................................ (0.0286) (0.0285) -------- -------- Net asset value, end of year or period ................ $ 1.00 $ 1.00 ======== ======== Total Return ........................................ 2.97% 2.88% Ratios /Supplemental Data Net assets, end of year or period (000) ............. $147,633 $213,034 Ratios of expenses to average net assets ............ .89%(c) .85%(c) Ratios of net investment income to average net assets 2.86% 2.85% (a) Financial Highlights relate solely to the Bedford Class of shares within each portfolio. (b) Non-Annualized. (c) 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 1.26% for the six months ended February 28, 2001, 1.21%, 1.15%, 1.15% and 1.14% for the years ended August 31, 2000, 1999, 1998 and 1997, respectively. (d) Annualized.
See Accompanying Notes to Financial Statements. 9 THE BEDFORD FAMILY THE RBB FUND, INC. NOTES TO FINANCIAL STATEMENTS FEBRUARY 28, 2001 (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 15.98 billion shares are currently classified into ninety-four classes. Each class represents an interest in one of fourteen investment portfolios of the Fund. The classes have been grouped into thirteen separate "families", eight of which have begun investment operations: the Bedford Family, the Sansom Street Family, the Cash Preservation Family, the Principal Family, the n/i numeric investors Family, the Boston Partners Family, the Bogle Family and the Schneider Family. The Bedford Family represents interests in one portfolio, which is covered in this report. A) SECURITY VALUATION -- Portfolio securities are valued under the amortized cost method, which approximates current market value. Under this method, securities are valued at cost when purchased and thereafter a constant proportionate amortization of any discount or premium is recorded until maturity of the security. Regular review and monitoring of the valuation is performed to ensure that cost continues to approximate market value and 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 accounting principles generally accepted in the United States of America. D) FEDERAL INCOME TAXES -- No provision is made for Federal taxes. It is the Fund's intention to have each portfolio to continue to qualify for and elect the tax treatment applicable to regulated investment companies under the Internal Revenue Code and make the requisite distributions to its shareholders which will be sufficient to relieve it from Federal income and excise taxes. E) 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 fall 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. 10 THE BEDFORD FAMILY THE RBB FUND, INC. NOTES TO FINANCIAL STATEMENTS (CONTINUED) FEBRUARY 28, 2001 (UNAUDITED) NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) F) USE OF ESTIMATES -- The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions. These estimates and assumptions 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 adviser to the portfolio described herein. For its advisory services, BIMC is entitled to receive the following fees, computed daily and payable monthly, and based on the portfolio's average daily net assets: PORTFOLIO ANNUAL RATE ---------------------- --------------------------------------------- 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 this portfolio. For each class of shares within the portfolio, the net advisory fee charged to each class is the same on a relative basis. For the six months ended February 28, 2001, advisory fees and waivers for the investment portfolio were as follows:
GROSS NET ADVISORY ADVISORY FEE WAIVER FEE -------- ---------- -------- Municipal Money Market Portfolio $245,031 $(241,612) $3,419
The investment advisor has agreed to reimburse each portfolio for the amount, if any, by which the total operating and management expenses exceed the cap. For the six months ended February 28, 2001, other expenses reimbursed were $14,164, for the Municipal Money Market Portfolio. In addition, PFPC Trust Co. serves as custodian for each of the Fund's portfolios. PFPC, Inc. ("PFPC") serves as each class's transfer and dividend disbursing agent. Both PFPC Trust Co. and PFPC are wholly owned subsidiaries of PFPC Worldwide Inc., an indirect majority owned subsidiary of The PNC Financial Services Group, Inc. 11 THE BEDFORD FAMILY THE RBB FUND, INC. NOTES TO FINANCIAL STATEMENTS (CONTINUED) FEBRUARY 28, 2001 (UNAUDITED) NOTE 2. TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES (CONTINUED) 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 28, 2001, no fees were waived. Transfer agency fees were as follows:
TRANSFER AGENCY FEE --------------- Municipal Money Market Portfolio Bedford Class $10,704 Cash Preservation Class 381 ------- Total Municipal Money Market Portfolio $11,085 =======
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 the Portfolio. For the six months ended February 28, 2001, the administration fee and waiver for the portfolio were as follows:
GROSS NET ADMINISTRATION ADMINISTRATION FEE WAIVER FEE -------------- --------- -------------- Municipal Money Market Portfolio $70,009 $(15,953) $54,056
The Fund on behalf of each class of shares within the investment portfolio, has adopted Distribution Plans pursuant to Rule 12b-1 under the Investment Company Act of 1940, as amended. The Fund has entered into Distribution Contracts with PFPC Distributors Inc. ("PFPC Distributors"). PFPC Distributors is a wholly owned subsidiary of PFPC Worldwide Inc., an indirect majority owned subsidiary of The PNC Financial Services Group, Inc. The contracts provide for each class to make payments, based on average net assets to PFPC Distributors of up to .65% on an annual basis for the Bedford, Cash Preservation, and Principal Classes and up to .20% on an annualized basis for the Sansom Street Class. Prior to January 2, 2001, Provident Distributors, Inc. ("PDI") served as the Fund's distributor pursuant to the same compensation arrangement as PFPC Distributors. For the period September 1, 2000 through January 1, 2001, distribution fees paid to PDI were as follows: DISTRIBUTION FEE ------------ Municipal Money Market Portfolio Bedford Class $296,131 Cash Preservation Class 270 -------- Total Municipal Money Market Portfolio $296,401 ======== 12 THE BEDFORD FAMILY THE RBB FUND, INC. NOTES TO FINANCIAL STATEMENTS (CONTINUED) FEBRUARY 28, 2001 (UNAUDITED) NOTE 2. TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES (CONTINUED) For the period January 2, 2001 through February 28, 2001, distribution fees paid to PFPC Distributors were as follows: DISTRIBUTION FEE ------------ Municipal Money Market Portfolio Bedford Class $158,587 Cash Preservation Class 123 -------- Total Municipal Money Market Portfolio $158,710 ======== NOTE 3. CAPITAL SHARES Transactions in capital shares (at $1 per capital share) for each year were as follows:
MUNICIPAL MONEY MARKET PORTFOLIO -------------------------------------- FOR THE FOR THE SIX MONTHS ENDED YEAR ENDED FEBRUARY 28, 2001 AUGUST 31, 2000 ----------------- --------------- (UNAUDITED) VALUE VALUE ------------- ------------- Shares sold: Bedford Class $ 161,376,135 $ 240,430,505 Cash Preservation Class 43,985 62,468 Janney Montgomery Scott Class* -- 389,880,620 ------------- ------------- Total Shares Sold 161,420,120 630,373,593 Shares issued on reinvestment of dividends: Bedford Class 2,320,124 3,875,706 Cash Preservation Class 3,176 6,129 Janney Montgomery Scott Class* -- 3,013,665 ------------- ------------- Total Shares Reinvested 2,323,300 6,895,500 Shares repurchased: Bedford Class (140,896,786) (272,492,533) Cash Preservation Class (57,240) (83,714) Janney Montgomery Scott Class* -- (507,435,149) ------------- ------------- Total Shares Repurchased (140,954,026) (780,011,396) ------------- ------------- Net increase (decrease) $ 22,789,394 $(142,742,303) ============= ============= Bedford Shares authorized 500,000,000 500,000,000 ============= ============= * The Janney Montgomery Scott Class of shares was liquidated on July 31, 2000.
13 THE BEDFORD FAMILY THE RBB FUND, INC. NOTES TO FINANCIAL STATEMENTS (CONTINUED) FEBRUARY 28, 2001 (UNAUDITED) NOTE 4. NET ASSETS At February 28, 2001, net assets consisted of the following: MUNICIPAL MONEY MARKET PORTFOLIO ------------ Paid-in capital $145,097,048 Accumulated net realized gain/(loss) on investments (29,613) ------------ Total net assets $145,067,435 ============ NOTE 5. CAPITAL LOSS CARRYOVER At August 31, 2000 capital loss carryovers were available to offset future realized gains as follows: $18,493 in the Municipal Money Market Portfolio of which, $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. 14 -----END PRIVACY-ENHANCED MESSAGE-----