<DOCUMENT>
<TYPE>N-30D
<SEQUENCE>1
<FILENAME>g02-0147.txt
<DESCRIPTION>RBB -- THE BEDFORD FAMILY 2002 SAR
<TEXT>
================================================================================
THE BEDFORD FAMILY
MONEY MARKET PORTFOLIO
--------------------------------------------------------------------------------
MUNICIPAL
MONEY MARKET PORTFOLIO
--------------------------------------------------------------------------------
GOVERNMENT OBLIGATIONS
MONEY MARKET PORTFOLIO
--------------------------------------------------------------------------------
SEMI-ANNUAL REPORT
FEBRUARY 28, 2002
================================================================================
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
SEMI-ANNUAL INVESTMENT ADVISER'S REPORT
FEBRUARY 28, 2002
(UNAUDITED)
U.S. gross domestic product declined 1.3% in the third quarter of 2001, as
the September 11 tragedy exacerbated an already weak economy. Manufacturing was
the most troubled sector last year, with an average monthly index reading of
43.9, a 19-year low. Rising unemployment was also a problem, as almost one
million jobs were lost in the wake of September 11. As was the case earlier in
2001, the consumer's appetite to spend remained the one bright spot. In an
attempt to restore economic vitality, the Federal Reserve maintained a year-long
policy of monetary ease. In 2001, the Fed reduced the federal funds rate eleven
times, lowering the target rate from 6.50% to 1.75%, a forty year low. The Fed's
actions were made easier by the continued good news on inflation. For the year,
producer prices actually declined 1.8%, while consumer prices rose a mild 1.6%,
helped by lower energy costs. Yields on money market securities moved lower in
tandem with the Fed's rate cuts. Since the last easing in December 2001
overnight yields have traded near the federal funds rate of 1.75%, while
one-year yields rose to 2.3% at year-end and to 2.45% by the end of February.
The steepening of the money market yield curve in early 2002 reflected the
growing sentiment in the market that an imminent economic recovery would cause
rates to move higher in the second half of 2002.
The decline in short-term taxable money market rates led the RBB Money
Market Fund and the RBB Government Money Market Fund to maintain extended
average weighted maturities of 50-60 days for most of the last two quarters.
Expectations of redemptions in March, however, led the two funds to shorten
maturities to 37 days and 20 days, respectively, by the end of February. Credit
quality also remained a key factor in managing the funds. Certain taxable
commercial paper programs were avoided and with narrow yield spreads between
commercial paper and government obligations, the funds increased holdings of the
latter. On February 28, 2002, assets were $1.169 billion in RBB Money Market and
$157.23 million in RBB Government.
Short-term municipal yields also declined during the last six months,
generally paralleling the drop in taxable rates. However, the after-tax yield on
municipals rose relative to taxables, increasing the attractiveness of
municipals and the RBB Municipal Money Market Fund. RBB Municipal maintained a
60-day average weighted maturity for much of the period in an effort to maintain
yield and lower reinvestment risk. The maturity was shortened to 40 days at the
end of February, as RBB Municipal positioned for asset declines in March. The
Fund ended February with assets of $147.5 million.
BlackRock Institutional Management Corporation
(Please dial toll-free 800-430-9618 for questions regarding
your account or contact your broker.)
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS
FEBRUARY 28, 2002
(UNAUDITED)
PAR
(000) VALUE
------- -------------
CERTIFICATES OF DEPOSIT--14.0%
DOMESTIC CERTIFICATES OF DEPOSIT--9.0%
HSBC Bank USA
1.810% 05/13/02 .............................. $40,000 $ 40,000,000
Washington Mutual Bank
1.900% 03/18/02 .............................. 65,000 65,000,000
--------------
105,000,000
--------------
EURODOLLAR CERTIFICATES OF DEPOSIT--1.3%
Credit Agricole Indosuez Yankee
3.625% 09/06/02 .............................. 15,000 14,999,240
--------------
YANKEE DOLLAR CERTIFICATES OF DEPOSIT--3.7%
Canadian Imperial Bank of Commerce
4.270% 04/23/02 .............................. 10,000 9,999,993
4.295% 04/23/02 .............................. 10,000 9,999,859
Royal Bank of Canada
4.028% 07/15/02 .............................. 13,000 12,999,882
3.805% 07/26/02 .............................. 6,000 5,999,295
Toronto-Dominion Bank (The)
4.045% 07/30/02 .............................. 5,000 4,997,884
--------------
43,996,913
--------------
TOTAL CERTIFICATES OF DEPOSIT
(Cost $163,996,153) ...................... 163,996,153
--------------
COMMERCIAL PAPER--46.6%
ASSET BACKED SECURITIES--22.7%
Concord Minutemen Capital Co.
1.800% 04/19/02 .............................. 24,177 24,117,766
Crown Point Capital Co.
1.800% 04/18/02 .............................. 13,813 13,779,849
1.900% 04/19/02 .............................. 43,439 43,326,662
Edison Asset Securitization LLC
1.680% 03/22/02 .............................. 30,000 29,970,600
Emerald Corp.
1.850% 05/01/02 .............................. 28,511 28,421,626
Fairway Finance Corp.
1.820% 03/08/02 .............................. 20,851 20,843,621
Fcar Owner Trust II
1.790% 03/08/02 .............................. 25,000 24,991,299
PAR
(000) VALUE
------- -------------
ASSET BACKED SECURITIES--(CONTINUED)
Liberty Lighthouse Capital Co.
1.840% 03/07/02 .............................. $25,157 $ 25,149,285
Pennine Funding LLC
1.800% 03/25/02 .............................. 55,000 54,934,000
--------------
265,534,708
--------------
BANKS--8.7%
AB Spintab
1.820% 03/07/02 .............................. 50,000 49,984,833
Depfa-Finance N.V
1.810% 03/11/02 .............................. 16,500 16,491,704
1.830% 05/14/02 .............................. 35,000 34,868,342
--------------
101,344,879
--------------
FINANCE SERVICES--3.3%
Credit Suisse First Boston USA, Inc.
1.630% 04/15/02 .............................. 38,580 38,501,393
--------------
LIFE INSURANCE--2.1%
ZCM Matched Funding Corp.
2.000% 03/04/02 .............................. 25,000 24,995,833
--------------
PERSONAL CREDIT INSTITUTIONS--4.8%
Countrywide Home Loans, Inc.
1.870% 03/27/02 .............................. 30,000 29,959,483
1.870% 03/28/02 .............................. 15,000 14,978,962
1.900% 04/02/02 .............................. 11,130 11,111,203
--------------
56,049,648
--------------
PHARMACEUTICAL PREPARATIONS--0.8%
American Home Products Corp.
1.890% 04/05/02 .............................. 9,000 8,983,463
--------------
SHORT-TERM BUSINESS CREDIT INSTITUTIONS--4.2%
General Electric Capital Corp.
2.000% 05/06/02 .............................. 50,000 49,816,667
--------------
TOTAL COMMERCIAL PAPER
(Cost $545,226,591) ...................... 545,226,591
--------------
See Accompanying Notes to Financial Statements.
2
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS (CONTINUED)
FEBRUARY 28, 2002
(UNAUDITED)
PAR
(000) VALUE
------- -------------
MUNICIPAL BONDS--7.4%
CALIFORNIA--3.7%
California Housing Finance Agency
Home Mortgage VRDN RB
Series 1999 (Commerzbank LOC)+
1.850% 03/06/02 .............................. $42,915 $ 42,915,000
--------------
FLORIDA--0.1%
Coral Springs VRDN IDR (Alliance
Corp.) (Suntrust Bank,
Central FL LOC) Series 1995+
1.950% 03/06/02 .............................. 1,700 1,700,000
--------------
GEORGIA--0.7%
De Kalb County Development
Authority VRDN (Emory
University Project)
Series 1995 B+
1.900% 03/06/02 .............................. 8,370 8,370,000
--------------
INDIANA--0.1%
Bremen IDR Bond VRDN (Universal
Bearing, Inc. Project) Series 1996 B
(Society National Bank,
Cleveland LOC)+
2.100% 03/07/02 .............................. 725 725,000
--------------
KENTUCKY--0.4%
Boone County Taxable IDR Refunding
Bonds VRDN (Square D Company
Project) Series 1994-B (Societe
Generale LOC)+
2.000% 03/06/02 .............................. 4,200 4,200,000
--------------
MISSISSIPPI--0.8%
Mississippi Business Finance Corp.
IDR RB (Dana Lighting Project)
Series 1995 (Suntrust Bank, N.A.,
LOC)+
1.950% 03/06/02 .............................. 4,100 4,100,000
Mississippi Business Finance Corp.
IDR RB VRDN (Dana Lighting Inc.)
Series 1995 (Suntrust Bank,
Central FL LOC)+
1.950% 03/06/02 .............................. 5,100 5,100,000
--------------
9,200,000
--------------
PAR
(000) VALUE
------- -------------
NORTH CAROLINA--0.4%
City of Asheville VRDN (Wachovia
Bank LOC)+
1.850% 03/06/02 .............................. $ 5,000 $ 5,000,000
--------------
TEXAS--1.3%
South Central Texas IDR Corp.
Taxable RB VRDN (Rhor Industries
Project) Series 1990
(NBD Bank N.A. LOC)+
2.000% 03/06/02 .............................. 14,800 14,800,000
--------------
TOTAL MUNICIPAL BONDS
(Cost $86,910,000) ....................... 86,910,000
--------------
VARIABLE RATE OBLIGATIONS--8.2%
BANKS--6.1%
Citigroup Inc.++
1.810% 03/12/02 .............................. 41,000 41,000,000
First Union National Bank++
2.120% 03/06/02 .............................. 18,000 18,026,231
Natexis Banque Populares++
1.800% 03/28/02 .............................. 12,000 11,998,928
--------------
71,025,159
--------------
SECURITY BROKERS & DEALERS--2.1%
Salomon Smith Barney Holdings Inc.++
2.161% 04/01/02 .............................. 25,000 25,036,426
--------------
TOTAL VARIABLE RATE OBLIGATIONS
(Cost $96,061,585) ....................... 96,061,585
--------------
AGENCY OBLIGATIONS--1.9%
Federal Home Loan Mortgage Corporation--0.6%
1.880% 11/07/02 .............................. 7,000 6,908,246
--------------
Federal National Mortgage Association--1.3%
4.210% 03/08/02 .............................. 5,000 4,995,907
6.750% 08/15/02 .............................. 10,000 10,129,467
--------------
15,125,374
--------------
TOTAL AGENCY OBLIGATIONS
(Cost $22,033,620) ....................... 22,033,620
--------------
See Accompanying Notes to Financial Statements.
3
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS (CONCLUDED)
FEBRUARY 28, 2002
(UNAUDITED)
PAR
(000) VALUE
------- -------------
MEDIUM TERM NOTES--6.8%
General Electric Capital Corp.
3.815% 07/30/02 .............................. $10,000 $ 10,000,000
Goldman Sachs Group Inc.
3.740% 04/30/02 .............................. 24,000 24,000,000
3.610% 05/31/02 .............................. 19,000 19,000,000
1.830% 06/17/02 .............................. 19,000 19,000,000
Merrill Lynch & Co. Inc.
4.300% 04/24/02 .............................. 7,000 7,000,000
--------------
TOTAL MEDIUM TERM NOTES
(Cost $79,000,000) ....................... 79,000,000
--------------
GUARANTEED INVESTMENT CONTRACT--3.4%
LIFE INSURANCE--3.4%
Transamerica Life Insurance &
Annuity Co.+
2.221% 03/05/03 .............................. 40,000 40,000,000
--------------
TOTAL GUARANTEED INVESTMENT CONTRACT
(Cost $40,000,000) ....................... 40,000,000
--------------
REPURCHASE AGREEMENTS--11.4%
J.P. Morgan Chase Bank (Agreement
dated 02/28/02 to be repurchased at
$87,004,519 collateralized by
$89,610,077 Federal Gold Strip
Principal due 10/01/27 to 06/01/31
Market Value of collateral is
$87,000,075.)
1.870% 03/01/02 .............................. 87,000 87,000,000
Morgan Stanley & Co. Inc.
(Agreement dated 02/28/02 to be
repurchased at $45,902,423
collateralized by $12,841,415
Federal National Mortgage
Association bonds 7.00% to
6.00% due 07/01/06 to 02/01/32
and Federal Mortgage Association
Corporation collateralized by
$33,218,347 at a rate of 2.32%
due 02/15/30. Market Value of
collateral is $47,441,554.)
1.900% 03/01/02 .............................. 45,900 45,900,000
--------------
TOTAL REPURCHASE AGREEMENTS
(Cost $132,900,000) ...................... 132,900,000
--------------
VALUE
-------------
TOTAL INVESTMENTS AT VALUE--99.7%
(Cost $1,166,127,949*) ....................... $1,166,127,949
--------------
OTHER ASSETS IN EXCESS
OF LIABILITIES--0.3% ......................... 3,389,560
--------------
NET ASSETS--100.0% .............................. $1,169,517,509
==============
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE
($1,169,517,509 (DIVIDE) 1,169,450,429) ...... $1.00
=====
* Also cost for Federal income tax purposes.
+ Variable Rate Demand Note -- The interest rate shown is the rate as of
February 28, 2002 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.
++ Variable Rate Obligations -- The interest rate shown is the rate as of
February 28, 2002 and the maturity date shown is the next interest rate
readjustment date or the maturity date.
INVESTMENT ABBREVIATIONS
IDR ..............................................Industrial Development Revenue
LOC ............................................................Letter of Credit
VRDN ..................................................Variable Rate Demand Note
See Accompanying Notes to Financial Statements.
4
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
MUNICIPAL MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS
FEBRUARY 28, 2002
(UNAUDITED)
PAR
(000) VALUE
------- -----------
MUNICIPAL BONDS--99.3%
ALABAMA--4.0%
Columbia IDA PCR RB Series 1998 DN
(Southtrust Bank LOC)+
1.450% 03/07/02 .............................. $1,800 $ 1,800,000
Columbia IDA PCR RB Series 1999 A
DN (Alabama Power Guarantee)+
1.300% 03/07/02 .............................. 500 500,000
Steele IDA RB Series 2001 AMT DN
(Southtrust Bank LOC)+
1.340% 03/07/02 .............................. 2,000 2,000,000
Tuscaloosa County IDA RB
Series 2000 A AMT DN
(SouthTrust Bank LOC)
1.480% 03/07/02 .............................. 1,585 1,585,000
------------
5,885,000
------------
ARIZONA--2.2%
Arizona State Transportation Board
Excise Tax RB Series 1999
5.000% 07/01/02 .............................. 450 454,720
Maricopa County - Merlot A126 RB
Series 2001 DN (First Union
National Bank of
North Carolina LOC)+
1.350% 03/07/02 .............................. 2,345 2,345,000
Scottsdale GO Bonds
Series E (1994)
5.500% 07/01/02 .............................. 500 509,832
------------
3,309,552
------------
CALIFORNIA--1.4%
California State RAN Series 2001-2002
3.250% 06/28/02 .............................. 2,000 2,007,384
------------
COLORADO--0.1%
Colorado Education and Cultural
Facilities RB Series 1999 DN
1.200% 03/07/02 .............................. 100 100,000
------------
FLORIDA--2.0%
Greater Orlando Aviation Authority -
Cessna Special Purpose Facilities
RB Series 2001 DN+
1.850% 03/06/02 .............................. 1,000 1,000,000
PAR
(000) VALUE
------- -----------
FLORIDA--(CONTINUED)
Putnam County Development Authority
PCR RB (National Rural Utilities
Co-op Seminole Electric Project)
Series H 1984 MB++
2.400% 03/15/02 .............................. $2,000 $ 2,000,000
------------
3,000,000
------------
GEORGIA--0.2%
Chatham County School District GO
Bonds Series 1995 B
5.200% 08/01/02 .............................. 300 303,278
------------
HAWAII--0.7%
Hawaii State Airport Zurich Capital
Markets Receipts, Series ZTC 24 AMT
DN (FGIC, ZCM Matched Funding)+
1.340% 03/07/02 .............................. 1,000 1,000,000
------------
ILLINOIS--12.0%
Addison, Village Of, Dupage County,
IDA RB AMT DN 1988 (General
Binding Corp. Project) (ABN AMRO
Bank LOC)+
1.420% 03/07/02 .............................. 1,300 1,300,000
Chicago O'Hare International Airport
ZTC 26 AMT DN (AMBAC Insurance,
ZCM Matched Funding)+
1.340% 03/07/02 .............................. 2,900 2,900,000
Chicago O'Hare International Airport
ZTC Series 8 AMT DN (AMBAC
Insurance, ZCM Matched Funding)+
1.340% 03/07/02 .............................. 2,000 2,000,000
Chicago, City Of, IDA RB AMT DN
(Goose Island Beer O. Project)
(ABN AMRO Bank LOC)+
1.420% 03/07/02 .............................. 1,700 1,700,000
Illinois Development Finance Authority
Multifamily RB DN P Floats Pt-515
(Merrill Lynch & Co. Inc. LOC)+
1.370% 03/07/02 .............................. 4,700 4,700,000
Illinois Housing Development Finance
Authority - Merlots Series 2000 V DN
(First Union National Bank of
North Carolina LOC)+
1.350% 03/06/02 .............................. 2,875 2,875,000
See Accompanying Notes to Financial Statements.
5
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
MUNICIPAL MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS (CONTINUED)
FEBRUARY 28, 2002
(UNAUDITED)
PAR
(000) VALUE
------- -----------
ILLINOIS--(CONTINUED)
Illinois State Sales Tax RB ZTC 32
Zurich Capital Markets Trust Receipts,
Series O DN+
1.310% 03/07/02 .............................. $2,000 $ 2,000,000
Libertyville GO Unlimited Series
1992 (AMBAC Insurance LOC)
6.150% 10/15/02 .............................. 250 256,113
------------
17,731,113
------------
INDIANA--4.6%
Bremen IDA RB Series 1996 A AMT DN
(Universal Bearings, Inc. Project
Private Placement) (Keybank LOC)+
1.400% 03/07/02 .............................. 3,100 3,100,000
Greensburg County Schools
2.750% 12/31/02 .............................. 1,000 1,006,555
Indiana Development Finance Authority
Economic Development AMT RB DN
(Saroyan Hardwoods Inc. Project)
(FifthThird Bank LOC)+
1.450% 03/07/02 .............................. 1,250 1,250,000
Indiana State Housing Finance
Authority Single Family Mortgage
RB Series D-2++
1.950% 12/17/02 .............................. 1,000 1,000,000
Indianapolis Indl. Airport Authority
Revenue Refunding RB
Series 1996 A
(FGIC Insurance LOC)
5.000% 07/01/02 .............................. 500 504,534
------------
6,861,089
------------
KANSAS--0.2%
Olathe Water Treatment and Sewer System
Refunding and Improvement RB
Series 1997
4.700% 07/01/02 .............................. 250 252,280
------------
KENTUCKY--5.0%
Calvert City PCR RB Air Product
Series 1993 B DN+
1.790% 03/07/02 .............................. 1,000 1,000,000
PAR
(000) VALUE
------- -----------
KENTUCKY--(CONTINUED)
Green County School District
School Building RB MB (Lease-
Backed) 2001
4.500% 04/01/02 .............................. $ 165 $ 165,136
Henderson Industrial Building RB AMT
DN 1997 (Shamrock Technologies)
(First Union National Bank LOC)+
1.400% 03/07/02 .............................. 2,201 2,201,000
Jefferson County RB Series 1999 A
AMT DN (Atlas Manufacturing
Industrial Building) (Bank One
Kentucky LOC)+
1.450% 03/07/02 .............................. 3,950 3,950,000
------------
7,316,136
------------
LOUISIANA--0.4%
Louisiana Public Facilities Authority
Hospital Refunding RB Series
1992 MB (Financial Security
Assurance LOC)
6.300% 05/15/02 .............................. 535 549,421
------------
MAINE--0.6%
Maine Education Loan Marketing Corp
Student Loan Revenue Refunding
Bonds Series 1992 A-1
6.050% 05/01/02 .............................. 870 876,500
------------
MICHIGAN--8.0%
Detroit Economic Development Corp. -
EH Association Multi-Mode Variable
Rate RB Series 2002+
1.500% 03/07/02 .............................. 2,000 2,000,000
Michigan Municipal Bond Authority
MB Series 2001-A
4.000% 04/11/02 .............................. 3,585 3,588,592
Michigan State Strategic Fund Limited
AMT DN (Kay Screen Printing
Project) (Banc One LOC)+
1.450% 03/07/02 .............................. 1,600 1,600,000
Michigan State Strategic Fund Saginaw
Pro Limited Obligation RB Series
2001 AMT DN (Comerica Bank
Detroit LOC)+
1.350% 03/07/02 .............................. 3,450 3,450,000
See Accompanying Notes to Financial Statements.
6
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
MUNICIPAL MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS (CONTINUED)
FEBRUARY 28, 2002
(UNAUDITED)
PAR
(000) VALUE
------- -----------
MICHIGAN--(CONTINUED)
Oakland County Economic Development
Corp. Glass & Mirror Limited
Obligation RB Series 2000 AMT DN
(Banc One LOC)+
1.350% 03/07/02 .............................. $ 1,200 $ 1,200,000
------------
11,838,592
------------
MINNESOTA--0.1%
Minneapolis Various Purpose GO
Bonds Series 1996 DN (Bayerische
Landesbank Girozentrale LOC)+
1.050% 03/07/02 .............................. 100 100,000
Minneapolis General Obligation
Judgment Bonds Series 2000 DN
(Bayerische Landesbank
Girozentrale LOC)+
1.050% 03/07/02 .............................. 100 100,000
------------
200,000
------------
MISSOURI--3.2%
Bridgeton IDA RB AMT DN (Commerce
Bank, N.A. Gold Dust LLC Project)
(Commerce Bank N.A. LOC)+
1.340% 02/28/02 .............................. 1,225 1,225,000
Missouri State Development Finance
Board Infrastructure Facilities Bond
Series 2001 A
2.300% 04/01/02 .............................. 1,000 1,000,000
St. Charles IDA Variable Rate Land
Development Co. AMT DN
(Commerce Bank, N.A. LOC)+
1.390% 03/07/02 .............................. 2,500 2,500,000
------------
4,725,000
------------
NEVADA--0.9%
Clark County Nevada School District
Municipal Securities Trust
Certificates 901 Bear Stearns
Municipal Trust Receipts,
Series 9013 DN (Financial Security
Assurance LOC)+
1.330% 03/07/02 .............................. 1,280 1,280,000
------------
PAR
(000) VALUE
------- -----------
NEW HAMPSHIRE--0.7%
New Hampshire State Housing Finance
Authority AMT DN - First Union
Merlots Series 2001 A-51 Merlot
2001A-51 (First Union National
Bank LOC)+
1.350% 03/07/02 .............................. $1,000 $ 1,000,000
------------
NEW JERSEY--5.1%
New Jersey Economic Development
Authority - El Dorado Terminals -
Dow Variable Rate Refunding RB
Series 1999 A+
1.600% 03/01/02 .............................. 3,500 3,500,000
New Jersey Economic Development
Authority - United Water Co. Water
Facilities Revenue Refunding
Bonds 1996 Series C DN (Bank of
New York LOC)+
1.450% 03/07/02 .............................. 3,000 3,000,000
New Jersey Education - P Float
PA 827 Merrill Lynch P-Float
Receipts++
2.550% 09/12/02 .............................. 1,000 1,000,000
------------
7,500,000
------------
NEW YORK--2.6%
New York City Transitional Future Tax
Secured Bonds Series 1998 C DN
(Bayerische Landesbank Girozentrale
LOC)+
1.300% 03/07/02 .............................. 400 400,000
New York City Transport Recovery
Notes Series A Fiscal 2002
3.250% 10/02/02 .............................. 1,700 1,710,975
Ulster County IDA RB 1998A AMT DN
(Viking Industries, Inc. Project)
(Key Corp. Bank N.A. LOC)+
1.400% 03/07/02 .............................. 1,725 1,725,000
------------
3,835,975
------------
See Accompanying Notes to Financial Statements.
7
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
MUNICIPAL MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS (CONTINUED)
FEBRUARY 28, 2002
(UNAUDITED)
PAR
(000) VALUE
------- -----------
NORTH CAROLINA--1.2%
Gates County Industrial Facilities PCR
RB AMT DN (Coxe-Lewis Project)
(First Union National Bank LOC)+
1.400% 03/07/02 .............................. $1,540 $ 1,540,000
Lee County Industrial Facilities PCR
RB AMT Series 1999 DN
(Var-Arden Corp Project)
(Comerica Bank Detroit LOC)+
1.350% 03/07/02 .............................. 200 200,000
------------
1,740,000
------------
OHIO--10.2%
American Municipal Power, Inc. BAN
2.850% 08/22/02 .............................. 1,000 1,000,000
American Municipal Power-Ohio, Inc.
BAN Series 2001
2.250% 12/04/02 .............................. 484 483,500
Butler County BAN Series 2001B
2.970% 06/13/02 .............................. 1,000 1,000,720
Cuyahoga County (Cleveland Gear)
IDA RB Series 1998 AMT DN (Key
Corp. Bank N.A. LOC)+
1.400% 03/06/02 .............................. 1,200 1,200,000
Fairfield County BAN Series 2001+
2.590% 10/10/02 .............................. 1,000 1,002,451
Lucas County Education - Maumee
Valley Economic Development RB
Series 1998 DN
1.270% 03/07/02 .............................. 2,000 2,000,000
Lyndhurst BAN Series 2001
3.600% 03/14/02 .............................. 1,350 1,350,116
Marysville BAN
Series 2001 Renewal
2.340% 11/14/02 .............................. 815 816,519
Marysville Vehicle and Equipment GO
Notes Series 2001
3.660% 03/14/02 .............................. 1,065 1,065,095
Ohio State Water Development Authority
Solid Solid Waste Facilities Revenue
BAN Series 2001A
2.850% 08/01/02 .............................. 2,000 2,000,000
PAR
(000) VALUE
------- -----------
OHIO--(CONTINUED)
Trumbull County IDA RB
Series 1995 AMT DN
(Society National Bank LOC)+
1.400% 03/07/02 .............................. $1,955 $ 1,955,000
Twinsburg BAN Series 2001
3.250% 08/29/02 .............................. 1,000 1,003,098
Warren County Otterbein Home
Health Care Facilities Improvement
RB Series 1998 B DN (Fifth Third
Bank LOC)+
1.300% 03/07/02 .............................. 195 195,185
------------
15,071,684
------------
OKLAHOMA--1.7%
Muskogee Industrial Trust PCR RB
Series 1995 A DN (Oklahoma Gas
and Electric Co. LOC)+
1.700% 03/06/02 .............................. 1,300 1,300,000
Oklahoma County Finance Authority
IDA RB AMT Series 1998 DN
(Southwest Electric Co. Project)
(Bank One Oklahoma LOC)+
1.450% 03/07/02 .............................. 1,250 1,250,000
------------
2,550,000
------------
PENNSYLVANIA--1.9%
Delaware River Port Authority
Pennsylvania & New Jersey Merrill
Lynch Series PA-606 Trust Receipts
DN (Financial Security
Assurance LOC)+
1.050% 03/07/02 .............................. 2,300 2,300,000
Pennsylvania State Higher Educational
Facilities Authority Health Services
RB DN Series 1998 B (Bayerische
Landesbank Girozentrale LOC)+
1.050% 03/06/02 .............................. 500 500,000
------------
2,800,000
------------
SOUTH CAROLINA--2.2%
Greer Combined Utility System RB
BAN Series 2001-A
3.250% 06/03/02 .............................. 1,000 1,001,126
See Accompanying Notes to Financial Statements.
8
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
MUNICIPAL MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS (CONTINUED)
FEBRUARY 28, 2002
(UNAUDITED)
PAR
(000) VALUE
------- -----------
SOUTH CAROLINA--(CONTINUED)
South Carolina State Housing Finance
Aurthority - Arrington Place
Apartments Development Project
Authority Series 2001 DN
(Trust Co. Bank of Atlanta LOC)+
1.350% 03/06/02 .............................. $1,300 $ 1,300,000
Western Regional Sewer Authority
System RB Series 2001 MB
(Financial Security Assurance LOC)
4.000% 03/01/02 .............................. 1,000 1,000,000
------------
3,301,126
------------
TENNESSEE--5.6%
City of Jackson IDA RB AMT DN
(Quadion Corporation Project)
(Suntrust Bank, N.A. LOC)+
1.350% 03/07/02 .............................. 2,200 2,200,000
Morristown IDA AMT DN (Petoskey
Plastic Project) (Comerica
Bank LOC)+
1.450% 03/07/02 .............................. 5,315 5,315,000
Sevier County GO Bonds Series 1996
5.250% 04/01/02 .............................. 750 759,897
------------
8,274,897
------------
TEXAS--14.2%
Austin Airport System Revenue
Financial Services Department AMT
Merlots Series 2000 J DN (MBIA
Insurance, First Union LOC)+
1.350% 03/07/02 .............................. 2,100 2,100,000
Brazos River Harbor Navigation District
Brazoria County RB DN (BASF
Corporation Project)+
1.500% 03/01/02 .............................. 3,500 3,500,000
Corpus Christi GO Bonds Series 1992
(FGIC Insurance LOC)
6.700% 03/01/02 .............................. 975 999,689
Denton IDA AMT DN (Hartzell
Manufacturing Inc. Project)
(National City Bank of
Cleveland LOC)+
1.450% 03/07/02 .............................. 1,300 1,300,000
PAR
(000) VALUE
------- -----------
TEXAS--(CONTINUED)
El Paso Independent School District
GO Bonds Series 1998 (AMBAC
Insurance LOC)
4.750% 08/15/02 .............................. $ 500 $ 505,357
Harris County Toll Road
Revenue Bonds Series 1992
(AMBAC Insurance LOC)
6.500% 08/15/02 .............................. 500 518,889
Hay County (FGIC Insurance LOC)
4.000% 08/15/02 .............................. 815 822,556
Laredo Independent School District
(MBIA Insurance LOC)
3.500% 08/01/02 .............................. 770 775,287
Leander Independent School
District Unlimited Tax School
Building and Refunding
Bonds Series 1998
5.000% 08/15/02 .............................. 500 506,896
Texas State Housing and Community
Affairs Series PT-1347 DN+
1.420% 03/07/02 .............................. 2,000 2,000,000
Texas State Housing & Finance Authority
PT-1280 Community Affairs DN
(Merril Lynch LOC)+
1.420% 03/07/02 .............................. 1,000 1,000,000
Texas State Housing and Community
Affairs Series PT-1350 DN+
1.420% 03/07/02 .............................. 1,740 1,740,000
Texas State Municipal Trust Certification
ZTC 5 College Student Loan RB AMT
DN Series 2000 (ZCM Matched
Funding LOC)+
1.340% 03/07/02 .............................. 3,090 3,090,000
Texas State Tax and RAN
Series 2001A
3.750% 08/29/02 .............................. 2,000 2,011,894
------------
20,870,568
------------
VIRGINIA--0.9%
Dinwiddie County IDA Exempt Facility
RB DN Series 1998 A (Bank of
America LOC)+
1.450% 03/01/02 .............................. 1,200 1,200,000
See Accompanying Notes to Financial Statements.
9
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
MUNICIPAL MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS (CONCLUDED)
FEBRUARY 28, 2002
(UNAUDITED)
PAR
(000) VALUE
------- -----------
VIRGINIA--(CONTINUED)
Dinwiddie County IDR RB - Chaparrel
Facility Series 1999A DN+
1.450% 03/07/02 .............................. $ 100 $ 100,000
Smyth County IDA RB AMT DN
(Summit Properties Project)
(Fifth Third Bank LOC)+
1.350% 03/07/02 .............................. 100 100,000
------------
1,400,000
------------
WISCONSIN--4.9%
Mequon, City of, IDA RB AMT DN
(Johnson Level GRW Investment
Project) (Bank One Wisconsin LOC)+
1.450% 03/07/02 .............................. 1,090 1,090,000
Oak Creek IDA RB Series 2001 AMT
DN (Bank One Wisconsin LOC)+
1.450% 03/07/02 .............................. 1,000 1,000,000
Waukesha School District TRAN
Series 2001
3.000% 08/21/02 .............................. 2,000 2,003,508
Wisconsin State Health & Educational
Facilities Authority RB Series 1992
MB (FGIC Insurance LOC)
6.500% 08/15/02 .............................. 2,000 2,073,204
Wisconsin State GO Bonds
Series 1992 A
6.300% 05/01/02 .............................. 1,000 1,005,135
------------
7,171,847
------------
WYOMING--0.8%
Lincoln County Environmental
Improvement RB
(Pacificorp Project) DN+
2.150% 03/07/02 .............................. 1,200 1,200,000
------------
MULTI-STATE--1.7%
Societe General Pool Trust Series 2001
SG P-13 DN (Societe Generale LOC)+
1.390% 03/07/02 .............................. 2,540 2,540,000
------------
TOTAL MUNICIPAL BONDS
(Cost $146,491,442) ...................... 146,491,442
------------
VALUE
-----------
TOTAL INVESTMENTS AT VALUE--99.3%
(Cost $146,491,442*) ......................... $146,491,442
------------
OTHER ASSETS IN EXCESS
OF LIABILITIES--0.7% ......................... 971,398
------------
NET ASSETS--100.0% .............................. $147,462,840
============
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE
($147,462,840 (DIVIDE) 147,569,595) .......... $1.00
=====
* Also cost for Federal income tax purposes.
+ Variable Rate Demand Notes -- The interest rate shown is the rate as of
February 28, 2002 and the maturity 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.
10
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
GOVERNMENT OBLIGATIONS MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS
FEBRUARY 28, 2002
(UNAUDITED)
PAR
(000) VALUE
------- -----------
AGENCY OBLIGATIONS--45.1%
FEDERAL HOME LOAN BANK--25.4%
1.755%, 03/27/02 ............................. $40,000 $ 39,949,300
------------
FEDERAL HOME LOAN MORTGAGE CORPORATION--12.7%
1.700%, 04/25/02 ............................. 10,000 9,974,028
1.740%, 05/09/02 ............................. 10,000 9,966,650
------------
19,940,678
------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION--7.0%
5.375%, 03/08/02 ............................. 11,000 11,007,535
------------
TOTAL AGENCY OBLIGATIONS
(Cost $70,897,513) ....................... 70,897,513
------------
VARIABLE RATE OBLIGATIONS--9.5%
FEDERAL FARM CREDIT BANK--3.2%
1.680%, 04/11/02+ ............................ 5,000 5,000,000
------------
FEDERAL HOME LOAN BANK--3.2%
1.735%, 08/20/02 ............................. 5,000 4,999,471
------------
FEDERAL NATIONAL MORTGAGE ASSOCIATION--3.1%
1.740%, 12/05/02 ............................. 5,000 4,998,847
------------
TOTAL VARIABLE RATE OBLIGATIONS
(Cost $14,998,318) ....................... 14,998,318
------------
U.S. TREASURY OBLIGATIONS--12.7%
U.S. Treasury Bill
1.745% 03/28/02 .............................. 20,000 19,973,825
------------
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $19,973,825) ....................... 19,973,825
------------
PAR
(000) VALUE
------- -----------
REPURCHASE AGREEMENTS--39.8%
Goldman Sachs & Co. .............................
(Agreement dated 02/28/02 to be
repurchased at $32,501,697
collateralized by $32,500,001
Federal National Mortgage
Association Collateralized Mortgage
Obligation at a rate of 7.00% due
09/01/31. Market Value of
collateral is $33,475,001.)
1.880% 03/01/02 .............................. $32,500 $ 32,500,000
Morgan Stanley & Co., Inc
(Agreement dated 02/28/02 to be
repurchased at $30,001,583
collateralized by $30,095,255
Federal National Mortgage
Association bonds 5.50% to 6.50%
due 11/01/07 to 01/01/24
Market Value of collateral is
$30,998,112.)
1.900% 03/01/02 .............................. 30,000 30,000,000
------------
TOTAL REPURCHASE AGREEMENTS
(Cost $62,500,000) ....................... 62,500,000
------------
TOTAL INVESTMENTS AT VALUE--107.1%
(Cost $168,369,656*) ......................... 168,369,656
------------
OTHER LIABILITIES IN EXCESS
OF ASSETS--(7.1)% ............................ (11,142,174)
------------
NET ASSETS--100.0% .............................. $157,227,482
============
NET ASSET VALUE, OFFERING AND
REDEMPTION PRICE PER SHARE
($157,227,483 (DIVIDE) 157,145,733) .......... $1.00
=====
* Also cost for Federal income tax purposes.
+ Variable Rate Obligations -- The interest rate is the rate as of February 28,
2002 and the maturity date shown is the longer of the next interest
readjustment date or the maturity date.
See Accompanying Notes to Financial Statements.
11
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED FEBRUARY 28, 2002
(UNAUDITED)
<TABLE>
<CAPTION>
GOVERNMENT
MUNICIPAL OBLIGATIONS
MONEY MARKET MONEY MARKET MONEY MARKET
PORTFOLIO PORTFOLIO PORTFOLIO
------------ ------------ -----------
<S> <C> <C> <C>
Investment Income
Interest ........................................ $17,475,149 $1,649,475 $1,938,471
----------- ---------- ----------
Expenses
Investment advisory fees ........................ 2,368,612 266,755 330,959
Distribution fees ............................... 2,895,545 495,664 478,206
Administration fees ............................. -- 76,216 --
Registration fees ............................... 324,000 75,000 30,500
Printing fees ................................... 199,182 30,388 14,867
Legal fees ...................................... 167,497 8,759 7,329
Custodian fees .................................. 102,025 21,192 18,657
Transfer agent fees ............................. 94,132 6,600 5,200
Audit fees ...................................... 65,989 7,485 7,262
Directors' fees ................................. 47,428 5,818 5,062
Insurance expense ............................... 13,123 2,280 3,495
Miscellaneous ................................... 8,399 1,800 1,351
Service organization fees ....................... 7,288 -- --
----------- ---------- ----------
Total expenses ............................. 6,293,220 997,957 902,888
Less fees waived ................................ (551,376) (280,104) (167,186)
Less expense reimbursement by advisor ........... (517,162) -- --
----------- ---------- ----------
Net expenses ............................... 5,224,682 717,853 735,702
----------- ---------- ----------
Net investment income .............................. 12,250,467 931,622 1,202,769
----------- ---------- ----------
Realized gain on investments ....................... 64,203 5,630 140,593
----------- ---------- ----------
Net increase in net assets resulting from operations $12,314,670 $ 937,252 $1,343,362
=========== ========== ==========
</TABLE>
See Accompanying Notes to Financial Statements.
12
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
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 28, 2002 AUGUST 31, 2001 FEBRUARY 28, 2002 AUGUST 31, 2001
----------------- --------------- ----------------- ---------------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
Increase (decrease) in net assets:
Operations:
Net investment income ................ $ 12,250,467 $ 59,582,670 $ 931,622 $ 4,162,116
Net gain (loss) on investments ....... 64,203 105,064 5,630 (37,788)
-------------- -------------- ------------ ------------
Net increase in net assets
resulting from operations .......... 12,314,670 59,687,734 937,252 4,124,328
-------------- -------------- ------------ ------------
Distributions to shareholders:
Dividends to shareholders from
Net Investment Income:
Bedford shares ..................... (6,139,116) (24,842,700) (931,105) (4,156,763)
Cash Preservation shares ........... (1,776) (13,247) (510) (5,353)
Bear Stearns shares ................ (63) -- (7) --
Principal shares ................... (3,166,897) (12,476,504) -- --
Sansom Street shares ............... (2,942,615) (12,942,542) -- --
Select shares ...................... -- (9,307,677) -- --
-------------- -------------- ------------ ------------
Total Dividends to
shareholders ................... (12,250,467) (59,582,670) (931,622) (4,162,116)
-------------- -------------- ------------ ------------
Net capital share transactions ......... (6,452,037) (228,925,598) (7,875,618) 33,081,455
-------------- -------------- ------------ ------------
Total increase/(decrease) in
net assets ........................... (6,387,834) (228,820,534) (7,869,988) 33,043,667
Net Assets:
Beginning of period .................. 1,175,905,343 1,404,725,877 155,332,828 122,289,161
-------------- -------------- ------------ ------------
End of period ........................ $1,169,517,509 $1,175,905,343 $147,462,840 $155,332,828
============== ============== ============ ============
</TABLE>
<TABLE>
<CAPTION>
GOVERNMENT OBLIGATIONS
MONEY MARKET PORTFOLIO
-----------------------------------
FOR THE FOR THE
SIX MONTHS ENDED YEAR ENDED
FEBRUARY 28, 2002 AUGUST 31, 2001
----------------- ---------------
(UNAUDITED)
<S> <C> <C>
Increase (decrease) in net assets:
Operations:
Net investment income ................ $ 1,202,769 $ 5,099,087
Net gain (loss) on investments ....... 140,593 (826)
------------ ------------
Net increase in net assets
resulting from operations .......... 1,343,362 5,098,261
------------ ------------
Distributions to shareholders:
Dividends to shareholders from
Net Investment Income:
Bedford shares ..................... (1,202,764) (5,099,087)
Cash Preservation shares ........... -- --
Bear Stearns shares ................ (5) --
Principal shares ................... -- --
Sansom Street shares ............... -- --
Select shares ...................... -- --
------------ ------------
Total Dividends to
shareholders ................... (1,202,769) (5,099,087)
------------ ------------
Net capital share transactions ......... 29,281,591 34,006,121
------------ ------------
Total increase/(decrease) in
net assets ........................... 29,422,184 34,005,295
Net Assets:
Beginning of period .................. 127,805,298 93,800,003
------------ ------------
End of period ........................ $157,227,482 $127,805,298
============ ============
</TABLE>
See Accompanying Notes to Financial Statements.
13
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
FINANCIAL HIGHLIGHTS (a)
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
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 28, AUGUST 31, AUGUST 31, AUGUST 31, AUGUST 31,
2002 2001 2000 1999 1998
------------ ---------- ---------- ---------- ----------
(UNAUDITED)
<S> <C> <C> <C> <C> <C>
Net asset value,
beginning of period ........ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------- --------
Income from investment
operations:
Net investment income ...... 0.0089 0.0460 0.0512 0.0425 0.0473
-------- -------- -------- -------- --------
Total net income
from investment
operations .............. 0.0089 0.0460 0.0512 0.0425 0.0473
-------- -------- -------- -------- --------
Less distributions
Dividends (from net
investment income) ........ (0.0089) (0.0460) (0.0512) (0.0425) (0.0473)
-------- -------- -------- -------- --------
Total distributions ....... (0.0089) (0.0460) (0.0512) (0.0425) (0.0473)
-------- -------- -------- -------- --------
Net asset value,
end of period .............. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ========
Total Return ............... .89%(b) 4.70% 5.24% 4.34% 4.84%
Ratios /Supplemental Data
Net assets,
end of period (000) ....... $613,286 $676,964 $423,977 $360,123 $762,739
Ratios of expenses to
average net assets ........ 1.00%(c)(d) 1.00%(c) .97%(c) .97%(c) .97%(c)
Ratios of net investment
income to average
net assets ................ 1.81%(d) 4.46% 5.15% 4.25% 4.73%
</TABLE>
<TABLE>
<CAPTION>
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 28, AUGUST 31, AUGUST 31, AUGUST 31, AUGUST 31,
2002 2001 2000 1999 1998
------------ ---------- ---------- ---------- ----------
(UNAUDITED)
<S> <C> <C> <C> <C> <C>
Net asset value,
beginning of period ........ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------- --------
Income from investment
operations:
Net investment income ...... 0.0061 0.0286 0.0301 0.0243 0.0286
-------- -------- -------- -------- --------
Total net income
from investment
operations .............. 0.0061 0.0286 0.0301 0.0243 0.0286
-------- -------- -------- -------- --------
Less distributions
Dividends (from net
investment income) ........ (0.0061) (0.0286) (0.0301) (0.0243) (0.0286)
-------- -------- -------- -------- --------
Total distributions ....... (0.0061) (0.0286) (0.0301) (0.0243) (0.0286)
-------- -------- -------- -------- --------
Net asset value,
end of period .............. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ========
Total Return ............... .61%(b) 2.90% 3.05% 2.46% 2.97%
Ratios /Supplemental Data
Net assets,
end of period (000) ....... $147,463 $155,217 $131,201 $150,278 $147,633
Ratios of expenses to
average net assets ........ .94%(c)(d) .90%(c) .89%(c) .89%(c) .89%(c)
Ratios of net investment
income to average
net assets ................ 1.22%(d) 2.83% 2.98% 2.43% 2.86%
</TABLE>
(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 Money Market Portfolio would have
been 1.21% for the six months ended February 28, 2002, 1.19%, 1.05%, 1.08%
and 1.10% for the years ended August 31, 2001, 2000, 1999 and 1998,
respectively. For the Municipal Money Market Portfolio, the ratios of
expenses to average net assets would have been 1.31% for the six months
ended February 28, 2002, 1.29%, 1.21%, 1.15% and 1.15% for the years ended
August 31, 2001, 2000, 1999 and 1998, respectively.
(d) Annualized.
See Accompanying Notes to Financial Statements.
14
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
FINANCIAL HIGHLIGHTS (a)
(FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
<TABLE>
<CAPTION>
GOVERNMENT OBLIGATIONS MONEY MARKET PORTFOLIO
-----------------------------------------------------------------------
FOR THE FOR THE FOR THE FOR THE
SIX MONTHS YEAR YEAR YEAR
ENDED ENDED ENDED ENDED
FEBRUARY 28, 2002 AUGUST 31, 2001 AUGUST 31, 2000 AUGUST 31, 1999
----------------- --------------- --------------- ---------------
(UNAUDITED)
<S> <C> <C> <C> <C>
Net asset value, beginning of period ................. $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- --------
Income from investment operations:
Net investment income .............................. 0.0083 0.0441 0.0492 0.0409
-------- -------- -------- --------
Total net income from investment operations .... 0.0083 0.0441 0.0492 0.0409
-------- -------- -------- --------
Less distributions
Dividends (from net investment income) ............. (0.0083) (0.0441) (0.0492) (0.0409)
-------- -------- -------- --------
Total distributions ............................ (0.0083) (0.0441) (0.0492) (0.0409)
-------- -------- -------- --------
Net asset value, end of period ....................... $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ========
Total Return ......................................... .32%(b) 4.50% 5.03% 4.17%
Ratios /Supplemental Data
Net assets, end of period (000) .................... $152,227 $127,805 $102,322 $113,050
Ratios of expenses to average net assets ........... 1.00%(c)(d) 1.00%(c) .977%(c) .975%(c)
Ratios of net investment income to average
net assets ....................................... 1.63% 4.27% 4.92% 4.09%
</TABLE>
<TABLE>
<CAPTION>
GOVERNMENT OBLIGATIONS MONEY MARKET PORTFOLIO
---------------------------------------------
FOR THE
YEAR
ENDED
AUGUST 31, 1998
---------------
<S> <C>
Net asset value, beginning of period ............................... $ 1.00
--------
Income from investment operations:
Net investment income ............................................ 0.0464
--------
Total net income from investment operations .................. 0.0464
--------
Less distributions
Dividends (from net investment income) ........................... (0.0464)
--------
Total distributions .......................................... (0.0464)
--------
Net asset value, end of period ..................................... $ 1.00
========
Total Return ....................................................... 4.74%
Ratios /Supplemental Data
Net assets, end of period (000) .................................. $128,447
Ratios of expenses to average net assets ......................... .975%(c)
Ratios of net investment income to average
net assets ..................................................... 4.63%
</TABLE>
(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 Government Obligations Money Market
Portfolio would have been 1.23% for the six months ended February 28, 2002
and 1.22%, 1.12%, 1.13% and 1.10% for the years ended August 31, 2001, 2000,
1999 and 1998, respectively.
(d) Annualized.
See Accompanying Notes to Financial Statements.
15
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
NOTES TO FINANCIAL STATEMENTS
FEBRUARY 28, 2002
(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 20.97 billion shares are currently classified into ninety-four classes.
Each class represents an interest in one of thirteen investment portfolios of
the Fund. The classes have been grouped into fourteen separate "families", nine
of which have begun investment operations: the Bedford Family, the Sansom Street
Family, the Cash Preservation Family, the Principal Family, the Bear Stearns
Money Market Family, the n/i numeric investors 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, 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, INVESTMENT INCOME, AND EXPENSES --
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. Expenses incurred on behalf of a specific class, fund or fund
family are charged directly to the class, fund or fund family (in
proportion to net assets). Expenses incurred for all of the RBB families
(such as director or professional fees) are charged to all funds in
proportion to their net assets of the RBB funds.
C) DISTRIBUTIONS TO SHAREHOLDERS -- Dividends from net investment
income are declared daily, recorded on the ex-date 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 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 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.
16
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FEBRUARY 28, 2002
(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 portfolios
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
--------------------------- ---------------------------------------------
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 28, 2002, advisory fees and waivers for
the investment portfolios were as follows:
<TABLE>
<CAPTION>
GROSS NET
ADVISORY ADVISORY
FEE WAIVER FEE
---------- --------- ----------
<S> <C> <C> <C>
Money Market Portfolio $2,368,612 $(473,276) $1,895,336
Municipal Money Market Portfolio 266,755 (245,437) 21,318
Government Obligations Money Market Portfolio 330,959 (167,186) 163,773
</TABLE>
BIMC 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, wherein PFPC has agreed to perform Administration
and Accounting services for an annual fee of .10% of the average net assets of
the portfolios, paid out of the fee paid to BIMC.
17
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FEBRUARY 28, 2002
(UNAUDITED)
NOTE 2. TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES (CONTINUED)
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, 2002, the
administration fee and waiver for the portfolio were as follows:
<TABLE>
<CAPTION>
GROSS NET
ADMINISTRATION ADMINISTRATION
FEE WAIVER FEE
-------------- -------- --------------
<S> <C> <C> <C>
Municipal Money Market Portfolio $76,216 $(32,107) $44,109
</TABLE>
The investment advisor/administrator may voluntarily waive and/or reimburse
each portfolio for the amount, if any, by which the total operating and
management expenses exceed the expense cap. For the six months ended February
28, 2002, the expense caps were as follows:
<TABLE>
<CAPTION>
PORTFOLIO CLASS OF SHARES EXPENSE CAP
---------- ----------------- -----------
<S> <C> <C>
Money Market Portfolio Bedford 1.00%
Cash Preservation .95
Bear Stearns 1.00
Sansom Street .49
Principal .77
Municipal Money Market Portfolio Bedford 1.00%
Cash Preservation 1.00
Bear Stearns 1.00
Government Obligations Money Market Portfolio Bedford 1.00%
Bear Stearns 1.00
</TABLE>
Effective December 18, 2001, the Municipal Money Market Portfolio expense
caps for the Bedford class and Cash Preservation class changed from .90% to
1.00% and .98% to 1.00%, respectively.
Reimbursed expenses for the six months ended February 28, 2002 were
$517,162 for the Money Market Portfolio.
PFPC Trust Co. serves as custodian for each of the Fund's portfolios. As
compensation for such custodial services, PFPC Trust Co. is entitled to receive
the following fees, computed daily and payable monthly, and based on the
portfolio's average gross assets:
<TABLE>
<CAPTION>
PORTFOLIO ANNUAL RATE
---------------------------- ------------------------------------------------
<S> <C>
Money Market, Government .25% of first $50 million of gross assets;
and Municipal Money Market .02% of next $50 million of gross assets;
Portfolios .015% of gross assets in excess of $100 million.
</TABLE>
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.
18
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FEBRUARY 28, 2002
(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, 2002, transfer agency fees and waivers for each class of shares within the
three investment portfolios were as follows:
<TABLE>
<CAPTION>
GROSS NET
TRANSFER AGENCY TRANSFER AGENCY
FEE WAIVER FEE
---------------- -------- ---------------
<S> <C> <C> <C>
Money Market Portfolio
Bedford Class $71,250 $(71,250) --
Cash Preservation Class 2,950 (2,950) --
Bear Stearns Class -- -- --
Principal Class 3,900 (3,900) --
Sansom Street Class 16,032 -- $16,032
------- -------- -------
Total Money Market Portfolio $94,132 $(78,100) $16,032
======= ======== =======
Municipal Money Market Portfolio
Bedford Class $ 3,900 -- $ 3,900
Cash Preservation Class 2,700 $ (2,560) 140
Bear Stearns Class -- -- --
------- -------- -------
Total Municipal Money Market Portfolio $ 6,600 $ (2,560) $ 4,040
======= ======== =======
Government Obligations Money Market Portfolio
Bedford Class $ 5,200 $ -- $ 5,200
Bear Stearns Class -- -- --
------- -------- -------
Total Government Obligations Money Market Portfolio $ 5,200 $ -- $ 5,200
======= ======== =======
</TABLE>
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 a
Distribution Contract 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 plans provide for each class to make monthly payments, based on average
net assets, to PFPC Distributors of up to .65% on an annualized basis for the
Bedford, Cash Preservation, Principal and Bear Stearns Classes and up to .20% on
an annualized basis for the Sansom Street Class.
19
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FEBRUARY 28, 2002
(UNAUDITED)
NOTE 2. TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES (CONTINUED)
For the six months ended February 28, 2002, distribution fees paid to PFPC
Distributors for each class were as follows:
<TABLE>
<CAPTION>
DISTRIBUTION
FEE
-----------
<S> <C>
Money Market Portfolio
Bedford Class $2,202,999
Cash Preservation Class 379
Bear Stearns Class --
Principal Class 626,239
Sansom Street Class 65,928
----------
Total Money Market Portfolio $2,895,545
==========
Municipal Money Market Portfolio
Bedford Class $ 495,507
Cash Preservation Class 157
Bear Stearns Class --
----------
Total Municipal Money Market Portfolio $ 495,664
==========
Government Obligations Money Market Portfolio
Bedford Class $ 478,206
Bear Stearns Class --
----------
Total Government Obligations Money Market Portfolio $ 478,206
==========
</TABLE>
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 28, 2002, service
organization fees were $7,288 for the Money Market Portfolio.
20
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FEBRUARY 28, 2002
(UNAUDITED)
NOTE 3. CAPITAL SHARES
Transactions in capital shares (at $1 per capital share) for each year were
as follows:
<TABLE>
<CAPTION>
MONEY MARKET PORTFOLIO MUNICIPAL MONEY MARKET PORTFOLIO
----------------------------------- -----------------------------------
FOR THE FOR THE FOR THE FOR THE
SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED
FEBRUARY 28, 2002 AUGUST 31, 2001 FEBRUARY 28, 2002 AUGUST 31, 2001
----------------- --------------- ----------------- ---------------
(UNAUDITED) (UNAUDITED)
VALUE VALUE VALUE VALUE
----------------- --------------- ----------------- ---------------
<S> <C> <C> <C> <C>
Shares sold:
Bedford Class $ 481,665,639 $ 977,375,528 $ 131,466,613 $ 301,784,487
Cash Preservation Class 79,595 239,568 36,910 67,547
Bear Stearns Class** 86,324 -- 39,634 --
Principal Class 322,682,458 574,335,866 -- --
Sansom Street Class 871,323,599 1,562,347,829 -- --
Select Class* -- 947,199,090 -- --
--------------- --------------- ------------- -------------
Total Shares Sold 1,675,837,615 4,061,497,881 131,543,157 301,852,034
Shares issued on reinvestment of dividends:
Bedford Class 6,562,494 25,009,271 982,494 4,192,079
Cash Preservation Class 1,897 13,843 550 5,358
Bear Stearns Class** 50 -- 4 --
Principal Class 3,354,321 12,586,542 -- --
Sansom Street Class 179,751 725,168 -- --
--------------- --------------- ------------- -------------
Total Shares Reinvested 10,098,513 38,334,824 983,048 4,197,437
Shares repurchased:
Bedford Class (551,903,774) (780,367,053) (140,307,755) (272,811,440)
Cash Preservation Class (124,325) (471,279) (91,744) (156,576)
Bear Stearns Class** (24,840) -- (2,324) --
Principal Class (325,439,971) (507,329,527) -- --
Sansom Street Class (814,895,255) (1,688,185,685) -- --
Select Class* -- (1,352,404,759) -- --
--------------- --------------- ------------- -------------
Total Shares Repurchased (1,692,388,165) (4,328,758,303) (140,401,823) (272,968,016)
--------------- --------------- ------------- -------------
Net increase (decrease) $ (6,452,037) $ (228,925,598) $ (7,875,618) $ 33,081,455
=============== =============== ============= =============
Bedford Shares authorized 1,500,000,000 1,500,000,000 500,000,000 500,000,000
=============== =============== ============= =============
<FN>
* The Select Class of shares was liquidated on January 31, 2001.
** The Bear Stearns Class began operations on November 28, 2001.
</FN>
</TABLE>
21
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FEBRUARY 28, 2002
(UNAUDITED)
NOTE 3. CAPITAL SHARES (CONTINUED)
<TABLE>
<CAPTION>
GOVERNMENT OBLIGATIONS MONEY MARKET PORTFOLIO
---------------------------------------------
FOR THE FOR THE
SIX MONTHS ENDED YEAR ENDED
FEBRUARY 28, 2002 AUGUST 31, 2001
----------------- ---------------
(UNAUDITED)
VALUE VALUE
----------------- ---------------
<S> <C> <C>
Shares sold:
Bedford Class $ 193,369,815 $ 262,525,402
Bear Stearns Class* 10,401 --
------------- -------------
Total Shares Sold 193,380,216 262,525,402
Shares issued on reinvestment of dividends:
Bedford Class 1,287,380 5,144,971
Bear Stearns Class* 4 --
------------- -------------
Total Shares Reinvested 1,287,384 5,144,971
Shares repurchased:
Bedford Class (165,383,876) (233,664,252)
Bear Stearns Class* (2,133) --
------------- -------------
Total Shares Repurchased (165,386,009) (233,664,252)
------------- -------------
Net increase (decrease) $ 29,281,591 $ 34,006,121
============= =============
Bedford Shares authorized 500,000,000 500,000,000
============= =============
<FN>
* The Bear Stearns Class began operations on November 28, 2001.
</FN>
</TABLE>
22
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
FEBRUARY 28, 2002
(UNAUDITED)
NOTE 4. NET ASSETS
At February 28, 2002, net assets consisted of the following:
<TABLE>
<CAPTION>
GOVERNMENT
MUNICIPAL OBLIGATIONS
MONEY MARKET MONEY MARKET MONEY MARKET
PORTFOLIO PORTFOLIO PORTFOLIO
-------------- ------------ ------------
<S> <C> <C> <C>
Paid-in capital $1,169,450,429 $147,192,433 $157,145,833
Accumulated net realized gain/(loss) on investments 67,080 (49,593) 81,649
-------------- ------------ ------------
Total net assets $1,169,517,509 $147,142,840 $157,227,482
============== ============ ============
</TABLE>
NOTE 5. CAPITAL LOSS CARRYOVER
At August 31, 2001 capital loss carryovers were available to offset future
realized gains as follows: $55,223 in the Municipal Money Market Portfolio of
which, $9,789 expires in 2002, $674 expires in 2004, $3,917 expires in 2005,
$3,055 expires in 2006, and $37,788 expires in 2009; $58,944 in the Government
Obligations Money Market Portfolio of which $12,275 expires in 2004, $1,291
expires in 2005, $5,792 expires in 2006, $37,984 expires in 2007, $776 expires
in 2008, and $826 expires in 2009.
The Municipal Money Market Portfolio had $1,058 of capital loss carryover
that expired in 2001, and was reclassified to paid-in capital.
23
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONCLUDED)
FEBRUARY 28, 2002
(UNAUDITED)
NOTE 6. OTHER FINANCIAL HIGHLIGHTS
The Fund currently offers four other classes of shares representing
interest in the Money Market Portfolio: Cash Preservation, Sansom Street,
Principal and Bear Stearns. The Fund currently offers two other classes of
shares representing interest in the Municipal Money Market Portfolio: Cash
Preservation and Bear Stearns. The Fund currently offers one other class of
shares representing interest in the Government Obligations Money Market
Portfolio: Bear Stearns. Each class is marketed to different types of investors.
Financial Highlights of the Cash Preservation class and the Bear Stearns classes
are not represented in this report due to their immateriality. Such information
is available in the annual report of its respective family. The financial
highlights of certain of the other classes are as follows:
THE SANSOM STREET FAMILY (a)
<TABLE>
<CAPTION>
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 28, 2002 AUGUST 31, 2001 AUGUST 31, 2000 AUGUST 31, 1999 AUGUST 31, 1998
----------------- --------------- --------------- --------------- ---------------
(UNAUDITED)
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period .......... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------- --------
Income from investment operations:
Net investment income ...................... 0.0115 0.0511 0.0560 0.0473 0.0520
-------- -------- -------- -------- --------
Total net income from investment
operations ............................. 0.0115 0.0511 0.0560 0.0473 0.0520
-------- -------- -------- -------- --------
Less distributions
Dividends (from net investment income) ..... (0.0115) (0.0511) (0.0560) (0.0473) (0.0520)
-------- -------- -------- -------- --------
Total distributions ...................... (0.0115) (0.0511) (0.0560) (0.0473) (0.0520)
-------- -------- -------- -------- --------
Net asset value, end of period ................ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ======== ========
Total Return .................................. 1.15%(b) 5.23% 5.75% 4.83% 5.34%
Ratios /Supplemental Data
Net assets, end of period (000) ............ $258,268 $201,632 $326,745 $841,887 $684,066
Ratios of expenses to average net assets ... .49%(c)(d) .49%(c) .49%(c) .49%(c) .49%(c)
Ratios of net investment income to
average net assets ....................... 2.30%(d) 5.23% 5.42% 4.73% 5.20%
<FN>
(a) Financial highlights relate solely to the Sansom Street Class of shares within the portfolio.
(b) Non-Annualized.
(c) Without the waiver of advisory fees and reimbursement of certain operating expenses, the ratios of expenses to average net
assets for the Money Market Portfolio would have been .56% for the six months ended February 28, 2002, .61%, .61%, .62% and
.62% for the years ended August 31, 2001, 2000, 1999 and 1998, respectively.
(d) Annualized.
</FN>
</TABLE>
24
<PAGE>
THE BEDFORD FAMILY
THE RBB FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONCLUDED)
FEBRUARY 28, 2002
(UNAUDITED)
NOTE 6. OTHER FINANCIAL HIGHLIGHTS (CONTINUED)
THE PRINCIPAL FAMILY (a)
<TABLE>
<CAPTION>
MONEY MARKET PORTFOLIO
--------------------------------------------------------------------------
FOR THE FOR THE FOR THE
SIX MONTHS YEAR YEAR FOR THE PERIOD
ENDED ENDED ENDED JUNE 1, 1999 TO
FEBRUARY 28, 2002 AUGUST 31, 2001 AUGUST 31, 2000 AUGUST 31, 1999(b)
----------------- --------------- --------------- ------------------
(UNAUDITED)
<S> <C> <C> <C> <C>
Net asset value, beginning of year or period ....... $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- --------
Income from investment operations:
Net investment income ........................... 0.0010 0.0483 0.0532 0.0110
-------- -------- -------- --------
Total net income from investment operations ... 0.0010 0.0483 0.0532 0.0110
-------- -------- -------- --------
Less distributions
Dividends (from net investment income) .......... (0.0010) (0.0483) (0.0532) (0.0110)
-------- -------- -------- --------
Total distributions ........................... (0.0010) (0.0483) (0.0532) (0.0110)
-------- -------- -------- --------
Net asset value, end of year or period ............. $ 1.00 $ 1.00 $ 1.00 $ 1.00
======== ======== ======== ========
Total Return ....................................... .84%(e) 4.94% 5.46% 1.10%(e)
Ratios /Supplemental Data
Net assets, end of period (000) ................. $297,725 $297,115 $217,520 $218,530
Ratios of expenses to average net assets ........ .77%(c)(d) .77%(c) .77%(c) .77%(c)(d)
Ratios of net investment income to
average net assets ............................ 2.02%(d) 4.71% 5.32% 4.36%(d)
<FN>
(a) Financial highlights relate solely to the Principal Family of shares within the portfolio.
(b) On June 1, 1999 the Money Market Portfolio's Principal Class began operations.
(c) Without the waiver of advisory and 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 .94% for the six months ended February
28, 2002, .88%, .85% and .85% for the periods ended August 31, 2001, 2000 and 1999, respectively.
(d) Annualized.
(e) Non-Annualized.
</FN>
</TABLE>
25
<PAGE>
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<PAGE>
[THIS PAGE INTENTIONALLY LEFT BLANK.]
<PAGE>
INVESTMENT ADVISER
BlackRock Institutional Management Corporation
100 Bellevue Parkway
Wilmington, DE 19809
ADMINISTRATOR/TRANSFER AGENT
PFPC Inc.
400 Bellevue Parkway
Wilmington, DE 19809
DISTRIBUTOR
PFPC Distributors, Inc.
3200 Horizon Dr.
King of Prussia, PA 19046
CUSTODIAN
PFPC Trust Company
8800 Tinicum Blvd.
Suite 200
Philadelphia, PA 19153
INDEPENDENT ACCOUNTANTS
PricewaterhouseCoopers LLP
Two Commerce Square, Suite 1700
2001 Market Street
Philadelphia, PA 19103-7042
COUNSEL
Drinker Biddle & Reath LLP
One Logan Square
18th and Cherry Streets
Philadelphia, PA 19103-6996
The financial information included herein is taken from the records of each Fund
without examination by independent accountants who do not express an opinion
thereon.
</TEXT>
</DOCUMENT>