-----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, Tnr12xC1h2WsU9NjcO89lNOnMAeNAA0LrFuKQEuwqWeD2vSVebO+ei7zHTmpRC5P MwD0btbl6QzkRAhyixxlBg== 0000935069-02-000428.txt : 20020507 0000935069-02-000428.hdr.sgml : 20020507 ACCESSION NUMBER: 0000935069-02-000428 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20020228 FILED AS OF DATE: 20020507 FILER: COMPANY DATA: COMPANY CONFORMED NAME: RBB FUND INC CENTRAL INDEX KEY: 0000831114 FISCAL YEAR END: 0831 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-05518 FILM NUMBER: 02636481 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 g02-1126.txt BEAR STEARNS MONEY MARKET FAMILY 2002 SAR THE BEAR STEARNS MONEY MARKET FAMILY Semi-Annual Report February 28, 2002 MONEY MARKET FAMILY o Money Market Portfolio o o Municipal Money Market Portfolio o o Government Obligations Money o Market Portfolio (LOGO) BEAR STEARNS [GRAPHIC OMITTED] THE BEAR STEARNS MONEY MARKET 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.) 1 THE BEAR STEARNS MONEY MARKET 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 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 -------------- PAR (000) VALUE ------- ------------- 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 -------------- 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 -------------- See Accompanying Notes to Financial Statements. 2 THE BEAR STEARNS MONEY MARKET FAMILY THE RBB FUND, INC. MONEY MARKET PORTFOLIO STATEMENT OF NET ASSETS (CONTINUED) FEBRUARY 28, 2002 (UNAUDITED) PAR (000) VALUE ------- ------------- 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 -------------- 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 -------------- PAR (000) VALUE ------- ------------- 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 -------------- 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 See Accompanying Notes to Financial Statements. 3 THE BEAR STEARNS MONEY MARKET FAMILY THE RBB FUND, INC. MONEY MARKET PORTFOLIO STATEMENT OF NET ASSETS (CONCLUDED) FEBRUARY 28, 2002 (UNAUDITED) PAR (000) VALUE ------- ------------- REPURCHASE AGREEMENTS--(CONTINUED) 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 -------------- 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 THE BEAR STEARNS MONEY MARKET 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 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 ------------ PAR (000) VALUE ------- ----------- 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 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 See Accompanying Notes to Financial Statements. 5 THE BEAR STEARNS MONEY MARKET FAMILY THE RBB FUND, INC. MUNICIPAL MONEY MARKET PORTFOLIO STATEMENT OF NET ASSETS (CONTINUED) FEBRUARY 28, 2002 (UNAUDITED) PAR (000) VALUE ------- ----------- INDIANA--(CONTINUED) 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 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 ------------ PAR (000) VALUE ------- ----------- 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 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 See Accompanying Notes to Financial Statements. 6 THE BEAR STEARNS MONEY MARKET FAMILY THE RBB FUND, INC. MUNICIPAL MONEY MARKET PORTFOLIO STATEMENT OF NET ASSETS (CONTINUED) FEBRUARY 28, 2002 (UNAUDITED) PAR (000) VALUE ------- ----------- MISSOURI--(CONTINUED) 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 ------------ 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 PAR (000) VALUE ------- ----------- NEW YORK--(CONTINUED) 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 ------------ 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 Trumbull County IDA RB Series 1995 AMT DN (Society National Bank LOC)+ 1.400% 03/07/02 .............................. 1,955 1,955,000 See Accompanying Notes to Financial Statements. 7 THE BEAR STEARNS MONEY MARKET FAMILY THE RBB FUND, INC. MUNICIPAL MONEY MARKET PORTFOLIO STATEMENT OF NET ASSETS (CONTINUED) FEBRUARY 28, 2002 (UNAUDITED) PAR (000) VALUE ------- ----------- OHIO--(CONTINUED) 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 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 ------------ PAR (000) VALUE ------- ----------- 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 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 See Accompanying Notes to Financial Statements. 8 THE BEAR STEARNS MONEY MARKET FAMILY THE RBB FUND, INC. MUNICIPAL MONEY MARKET PORTFOLIO STATEMENT OF NET ASSETS (CONTINUED) FEBRUARY 28, 2002 (UNAUDITED) PAR (000) VALUE ------- ----------- TEXAS--(CONTINUED) 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 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 ------------ PAR (000) VALUE ------- ----------- 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 ------------ 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. 9 THE BEAR STEARNS MONEY MARKET 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. 10 THE BEAR STEARNS MONEY MARKET FAMILY THE RBB FUND, INC. STATEMENTS OF OPERATIONS FOR THE SIX MONTHS ENDED FEBRUARY 28, 2002 (UNAUDITED)
GOVERNMENT MUNICIPAL OBLIGATIONS MONEY MARKET MONEY MARKET MONEY MARKET PORTFOLIO PORTFOLIO PORTFOLIO ------------ ------------ ----------- 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 =========== ========== ==========
See Accompanying Notes to Financial Statements. 11 THE BEAR STEARNS MONEY MARKET FAMILY THE RBB FUND, INC. STATEMENTS OF CHANGES IN NET ASSETS
MUNICIPAL MONEY MONEY MARKET PORTFOLIO MARKET PORTFOLIO ----------------------------------- ----------------------------------- FOR THE FOR THE FOR THE FOR THE SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED FEBRUARY 28, 2002 AUGUST 31, 2001 FEBRUARY 28, 2002 AUGUST 31, 2001 ----------------- --------------- ----------------- --------------- (UNAUDITED) (UNAUDITED) 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 ============== ============== ============ ============
GOVERNMENT OBLIGATIONS MONEY MARKET PORTFOLIO ----------------------------------- FOR THE FOR THE SIX MONTHS ENDED YEAR ENDED FEBRUARY 28, 2002 AUGUST 31, 2001 ----------------- --------------- (UNAUDITED) 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 ============ ============
See Accompanying Notes to Financial Statements. 12 THE BEAR STEARNS MONEY MARKET FAMILY THE RBB FUND, INC. FINANCIAL HIGHLIGHTS (a) (FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
MONEY MARKET PORTFOLIO MUNICIPAL MONEY MARKET PORTFOLIO ---------------------- -------------------------------- FOR THE PERIOD FOR THE PERIOD NOVEMBER 28, 2001 TO NOVEMBER 28, 2001 TO FEBRUARY 28, 2002(b) FEBRUARY 28, 2002(b) -------------------- -------------------- (UNAUDITED) (UNAUDITED) Net asset value, beginning of period ......................... $ 1.00 $ 1.00 -------- -------- Income from investment operations: Net investment income ...................................... 0.0035 0.0022 -------- -------- Total net income from investment operations ............... 0.0035 0.0022 -------- -------- Less distributions Dividends (from net investment income) ..................... (0.0035) (0.0022) -------- -------- Total distributions ....................................... (0.0035) (0.0022) -------- -------- Net asset value, end of period ............................... $ 1.00 $ 1.00 ======== ======== Total Return ............................................... .35%(c) .22%(c) Ratios /Supplemental Data Net assets, end of period (000) ............................ $62 $37 Ratios of expenses to average net assets ................... .52%(d)(e) .50%(d)(e) Ratios of net investment income to average net assets ...... .65%(e) .44%(e) (a) Financial Highlights relate solely to the Bear Stearns Class of shares within each portfolio. (b) On November 28, 2001, the Bear Stearns class began operations. (c) Non-Annualized. (d) 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 .59% for the period ended February 28, 2002. For the Municipal Money Market Portfolio, the ratios of expenses to average net assets would have been .50% for the period ended February 28, 2002. (e) Annualized.
See Accompanying Notes to Financial Statements. 13 THE BEAR STEARNS MONEY MARKET FAMILY THE RBB FUND, INC. FINANCIAL HIGHLIGHTS (a) (FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
GOVERNMENT OBLIGATIONS MONEY MARKET PORTFOLIO --------------------------------------------- FOR THE PERIOD NOVEMBER 28, 2001 TO FEBRUARY 28, 2002(b) -------------------- (UNAUDITED) Net asset value, beginning of period ......................... $ 1.00 -------- Income from investment operations: Net investment income ...................................... 0.0032 -------- Total net income from investment operations ............ 0.0032 -------- Less distributions Dividends (from net investment income) ..................... (0.0032) -------- Total distributions .................................... (0.0032) -------- Net asset value, end of period ............................... $ 1.00 ======== Total Return ................................................. .31%(c) Ratios /Supplemental Data Net assets, end of period (000) ............................ $8 Ratios of expenses to average net assets ................... .40%(d)(e) Ratios of net investment income to average net assets ...... .67% (a) Financial Highlights relate solely to the Bear Stearns Class of shares within each portfolio. (b) On November 28, 2001, the Bear Stearns class began operations. (c) Non-Annualized. (d) 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 .40% for the period ended February 28, 2002. (e) Annualized.
See Accompanying Notes to Financial Statements. 14 THE BEAR STEARNS MONEY MARKET 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. 15 THE BEAR STEARNS MONEY MARKET 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:
GROSS NET ADVISORY ADVISORY FEE WAIVER FEE ---------- --------- ---------- 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
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. 16 THE BEAR STEARNS MONEY MARKET 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:
GROSS NET ADMINISTRATION ADMINISTRATION FEE WAIVER FEE -------------- -------- -------------- Municipal Money Market Portfolio $76,216 $(32,107) $44,109
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:
PORTFOLIO CLASS OF SHARES EXPENSE CAP ---------- ----------------- ----------- 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
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:
PORTFOLIO ANNUAL RATE ---------------------------- ------------------------------------------------ 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.
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. 17 THE BEAR STEARNS MONEY MARKET 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:
GROSS NET TRANSFER AGENCY TRANSFER AGENCY FEE WAIVER FEE ---------------- -------- --------------- 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 ======= ======== =======
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. 18 THE BEAR STEARNS MONEY MARKET 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:
DISTRIBUTION FEE ----------- 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 ==========
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. 19 THE BEAR STEARNS MONEY MARKET 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:
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 ----------------- --------------- ----------------- --------------- 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 =============== =============== ============= ============= * The Select Class of shares was liquidated on January 31, 2001. ** The Bear Stearns Class began operations on November 28, 2001.
20 THE BEAR STEARNS MONEY MARKET FAMILY THE RBB FUND, INC. NOTES TO FINANCIAL STATEMENTS (CONTINUED) FEBRUARY 28, 2002 (UNAUDITED) NOTE 3. CAPITAL SHARES (CONTINUED)
GOVERNMENT OBLIGATIONS MONEY MARKET PORTFOLIO --------------------------------------------- FOR THE FOR THE SIX MONTHS ENDED YEAR ENDED FEBRUARY 28, 2002 AUGUST 31, 2001 ----------------- --------------- (UNAUDITED) VALUE VALUE ----------------- --------------- 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 ============= ============= * The Bear Stearns Class began operations on November 28, 2001.
NOTE 4. NET ASSETS At February 28, 2002, net assets consisted of the following:
GOVERNMENT MUNICIPAL OBLIGATIONS MONEY MARKET MONEY MARKET MONEY MARKET PORTFOLIO PORTFOLIO PORTFOLIO -------------- ------------ ------------ 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 ============== ============ ============
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. 21 THE BEAR STEARNS MONEY MARKET FAMILY THE RBB FUND, INC. NOTES TO FINANCIAL STATEMENTS (CONTINUED) 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 BEDFORD FAMILY (a)
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) 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%
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) 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%
(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. 22 THE BEAR STEARNS MONEY MARKET FAMILY THE RBB FUND, INC. NOTES TO FINANCIAL STATEMENTS (CONTINUED) FEBRUARY 28, 2002 (UNAUDITED) NOTE 6. OTHER FINANCIAL HIGHLIGHTS (CONTINUED)
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) 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%
GOVERNMENT OBLIGATIONS MONEY MARKET PORTFOLIO --------------------------------------------- FOR THE YEAR ENDED AUGUST 31, 1998 --------------- 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%
(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. 23 THE BEAR STEARNS MONEY MARKET FAMILY THE RBB FUND, INC. NOTES TO FINANCIAL STATEMENTS (CONTINUED) FEBRUARY 28, 2002 (UNAUDITED) NOTE 6. OTHER FINANCIAL HIGHLIGHTS (CONTINUED) THE SANSOM STREET FAMILY (a)
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) 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% (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.
24 THE BEAR STEARNS MONEY MARKET FAMILY THE RBB FUND, INC. NOTES TO FINANCIAL STATEMENTS (CONTINUED) FEBRUARY 28, 2002 (UNAUDITED) NOTE 6. OTHER FINANCIAL HIGHLIGHTS (CONTINUED) THE PRINCIPAL FAMILY (a)
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) 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) (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.
25 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. -----END PRIVACY-ENHANCED MESSAGE-----