-----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, IJ+1yEgsCGcseVyd9uusvjOZyAjDKGVE3ZTiIn8U05BtRbNDzIe4g6be59ei+gLN q72kzq1nZ5mBhcONazVT6w== 0000935069-95-000058.txt : 19951101 0000935069-95-000058.hdr.sgml : 19951101 ACCESSION NUMBER: 0000935069-95-000058 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19950831 FILED AS OF DATE: 19951031 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: RBB FUND INC CENTRAL INDEX KEY: 0000831114 STANDARD INDUSTRIAL CLASSIFICATION: [] FISCAL YEAR END: 0831 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-05518 FILM NUMBER: 95586038 BUSINESS ADDRESS: STREET 1: 400 BELLEVUE PKWY STE 100 CITY: WILMINGTON STATE: DE ZIP: 19809 BUSINESS PHONE: 3027911791 MAIL ADDRESS: STREET 1: 103 BELLEVUE PKWY STREET 2: SUITE 152 CITY: WILMINGTON STATE: DE ZIP: 19809 FORMER COMPANY: FORMER CONFORMED NAME: FUND INC /DE/ DATE OF NAME CHANGE: 19600201 N-30D 1 THE BEDFORD FAMILY THE RBB FUND, INC. ANNUAL INVESTMENT ADVISER'S REPORT Economic growth continued to slow during the second quarter as the impact from the interest rate rise during 1994 worked its way through the system. The most recent revision to second quarter real GDP growth was 1.1%, a dramatic change from the 5.1% experienced in the fourth quarter of 1994 and the 2.7% in the first quarter of the year. While the Fed is concerned about the deceleration in growth, they cannot overlook the 100 basis point decline in interest rates at the front end of the yield curve that has occurred in 1995 and the possibility that it has re-stimulated the economy. A reacceleration in consumer spending could significantly reduce inventories and lead to a resumption in manufacturing activity. In fact, there are several indications that economic growth may be rekindling. Factory orders, durable goods orders, retail sales and housing all rebounded in mid-summer. Existing home sales rose 4.7% while new home sales jumped 19.9%, the largest increase since January 1992. Lastly, consumer confidence remains relatively high, buoyed by a soaring stock market. The year-long rise in short-term interest rates ended in July, when the Fed lowered the federal funds rate from 6% to 5.75%. This reversal in monetary policy was widely anticipated and represented the Fed's belief that "inflationary pressures have receded enough to accommodate a modest adjustment in monetary conditions." The Fed's move also helped to flatten the short end of the yield curve, correcting a sharply inverted position where one day investments offered the highest yields at 6%, while six-month investments were sometimes lower by 50 basis points or more. The Fed did not ease policy again at its August meeting, and it's uncertain that they will do so in September. The Fund's taxable money market portfolio extended their maturities this year to be positioned for declining short-term interest rates. Although the technical factors that shape the rate cycle in the short-term municipal money market remained largely in place, there were a number of issues over the last year that created a higher than usual degree of uncertainty during this period. The significant issues included the potential for imposition of new regulations by the Securities and Exchange Commission, speculation about the possibility of a flat tax, national sales tax, or other major changes in the tax code, and, of course, the Orange County, California debacle. All of these factors tended to argue in favor of increased caution on the part of portfolio managers. In terms of portfolio strategy, this translated into an emphasis on shorter average weighted maturities. In addition, underlying and reinforcing this cautious policy was a string of interest rate increases by the Federal Reserve that offered little incentive to extend maturities. Currently, as the economic indicators have turned more mixed, the extent and direction of future Fed policy moves has become the subject of much debate in the marketplace. Average maturities of money market funds have been increasing recently, but it remains to be seen whether or not the Federal Reserve has successfully engineered a soft landing for the economy. As the year enters its final quarter, the outlook for the economy is improving and inflation remains subdued. A return to a long-term growth rate of 2.5%, coupled with low inflation pressures, should give the Fed enough comfort to ease policy again before the end of the year. PNC Institutional Management Corporation (Please dial toll-free 800-533-7719 for questions regarding your account or contact your broker.) REPORT OF INDEPENDENT ACCOUNTANTS To the Shareholders and Board of Directors of The RBB Fund, Inc.: We have audited the accompanying statements of net assets of the Money Market, Municipal Money Market and Government Obligations Money Market Portfolios of The RBB Fund, Inc., as of August 31, 1995, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the periods presented. These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of investments held as of August 31, 1995, by correspondence with the custodian and brokers. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Money Market, Municipal Money Market and Government Obligations Money Market Portfolios of The RBB Fund, Inc. as of August 31, 1995, the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended, and their financial highlights for each of the periods presented, in conformity with generally accepted accounting principles. COOPERS & LYBRAND L.L.P. 2400 Eleven Penn Center Philadelphia, Pennsylvania October 16, 1995 2 THE BEDFORD FAMILY THE RBB FUND, INC. MONEY MARKET PORTFOLIO STATEMENT OF NET ASSETS AUGUST 31, 1995
Par (000) Value ------------ -------------- AGENCY OBLIGATIONS--4.4% Student Loan Marketing Association Variable Rate Notes (DAGGER) 5.650% 09/05/1995 .......................... $ 25,000 $ 25,000,000 5.690% 09/05/1995 .......................... 20,000 20,000,000 5.700% 09/05/1995 .......................... 10,000 10,000,000 5.710% 09/05/1995 .......................... 25,000 24,989,366 ------------- TOTAL AGENCY OBLIGATIONS (Cost $79,989,366) ..................... 79,989,366 ------------- BANK NOTES--6.9% Huntington National Bank of Ohio (Huntington Bankshare Inc.) 5.760% 11/02/1995 .......................... 25,000 24,999,961 First National Bank of Boston 5.750% 11/01/1995 .......................... 30,000 30,000,000 5.630% 01/08/1996 .......................... 50,000 50,000,000 Mellon Bank 6.220% 11/01/1995 .......................... 19,500 19,500,320 ------------- TOTAL BANK NOTES (Cost $124,500,281) .................... 124,500,281 ------------- CERTIFICATES OF DEPOSIT--7.5% Yankee Certificates of Deposit--7.5% ABN-Amro Bank NV 5.660% 10/11/1995 .......................... 25,000 24,842,778 Commerzbank 7.320% 01/24/1996 .......................... 13,000 13,034,170 Credit Suisse 5.630% 12/11/1995 .......................... 50,000 50,000,000 Societe Generale 5.770% 01/08/1996 .......................... 25,000 25,000,000 Westpac Banking Corp. 5.850% 06/04/1996 .......................... 25,000 25,000,000 ------------- 137,876,948 ------------- TOTAL CERTIFICATES OF DEPOSIT (Cost $137,876,948) .................... 137,876,948 ------------- COMMERCIAL PAPER--32.4% Agricultural Services--0.8% Golden Peanut Company 5.600% 11/08/1995 .......................... 15,000 14,841,333 -------------
Par (000) Value ------------- -------------- Automobiles--0.3% Ford Motor Credit Corp. 6.070% 01/08/1996 .......................... $ 5,000 $ 4,891,246 ------------- Banks--4.1% Abbey National North America Corp. 5.620% 10/03/1995 .......................... 25,000 24,875,111 Amro N.A. Finance, Inc. 5.520% 10/02/1995 .......................... 20,000 19,904,933 6.160% 01/02/1996 .......................... 10,000 9,789,533 National City Corp. 6.180% 10/02/1995 .......................... 20,000 19,893,567 ------------- 74,463,144 ------------- Books Publishing & Printing--1.2% McGraw Hill, Inc. 5.900% 12/05/1995 .......................... 22,500 22,149,688 ------------- Chemicals & Allied Products--0.8% U.S. Borax & Chemical Co. 5.620% 10/10/1995 .......................... 15,600 15,505,022 ------------- Finance Services--0.3% American Express Credit Corp. 6.050% 10/30/1995 .......................... 5,000 4,950,424 ------------- Food & Kindred Products--0.2% McCormick & Company 5.910% 09/21/1995 .......................... 4,000 3,986,867 ------------- Glass, Glassware, Pressed or Blown--0.5% Newell Co. 5.980% 10/10/1995 .......................... 10,000 9,935,217 ------------- Guided Missiles & Space Vehicles--2.2% Rockwell International Corp. 6.150% 09/06/1995 .......................... 40,000 39,965,833 ------------- Natural Gas Transmission--1.4% Southern California Gas 5.560% 05/03/1996 .......................... 26,155 25,165,324 ------------- Newspaper: Publishing & Printing--0.5% Dow Jones and Company, Inc. 5.600% 11/10/1995 .......................... 10,000 9,891,111 -------------
See Accompanying Notes to Financial Statements. 3 THE BEDFORD FAMILY THE RBB FUND, INC. MONEY MARKET PORTFOLIO STATEMENT OF NET ASSETS (CONTINUED) AUGUST 31, 1995
Par (000) Value ------------- -------------- Personal Credit Institutions--6.0% BMW U.S. Capital Corp. 5.720% 10/23/1995 .......................... $ 50,000 $ 49,586,889 5.700% 11/01/1995 .......................... 25,000 24,758,542 5.750% 11/21/1995 .......................... 15,000 14,805,937 Toyota Motor Credit Corp. 6.120% 12/29/1995 .......................... 20,000 19,595,400 ------------- 108,746,768 ------------- Pharmaceutical Preparations--5.1% American Home Products Corp. 5.730% 11/10/1995 .......................... 33,500 33,126,754 5.740% 09/14/1995 .......................... 22,000 21,954,399 5.740% 09/18/1995 .......................... 14,800 14,759,884 Glaxo Wellcome PLC 5.710% 11/22/1995 .......................... 23,000 22,700,859 ------------- 92,541,896 ------------- Plastic Mail, Synthetic Resin/rubber--3.5% du Pont (E.I.) de Nemours & Co. 6.040% 10/03/1995 .......................... 20,000 19,892,622 6.070% 01/10/1996 .......................... 20,000 19,558,239 5.580% 07/18/1996 .......................... 25,000 23,756,125 ------------- 63,206,986 ------------- Retail Department Stores--0.6% St. Michael Finance Ltd. 5.630% 02/28/1996 .......................... 11,194 10,878,889 ------------- Security Brokers & Dealers--1.3% Merrill Lynch & Co. 5.920% 02/02/1996 .......................... 25,000 24,366,889 ------------- Short-Term Business Credit Institutions--3.6% Corporate Asset Funding, Inc. 6.060% 11/06/1995 .......................... 10,000 9,888,900 CXC, Inc. 6.080% 10/17/1995 .......................... 5,200 5,159,602 McKena Triangle National Corp. 5.710% 11/20/1995 .......................... 20,000 19,746,222 Sears Roebuck Acceptance Corp. 6.200% 09/11/1995 .......................... 30,000 29,948,333 ------------- 64,743,057 ------------- TOTAL COMMERCIAL PAPER (Cost $590,229,694) .................... 590,229,694 -------------
Par (000) Value ------------- -------------- MUNICIPAL BONDS--6.4% California--1.2% Adventist Health Systems West Series 1988 (First Interstate Bank of California LOC) (DAGGER) 5.900% 09/06/1995 .......................... $ 13,225 $ 13,225,000 San Bernardino County Certificate of Participation County Center Refinancing Project, Series 1995 (DAGGER) 5.850% 09/07/1995 .......................... 8,100 8,100,000 ------------- 21,325,000 ------------- Georgia--0.1% Richmond County IDA (Monsanto County Project) VRDN (DAGGER) 6.270% 06/01/1996 .......................... 1,300 1,300,000 ------------- Illinois--1.0% Baylis Group Partnership Weekly Demand Taxable Bond Series 1992 (Societe Genrale LOC) (DAGGER) 6.050% 09/06/1995 .......................... 600 600,000 Barton Healthcare Taxable Revenue Bonds Series 1995 (American National Bank LOC) (DAGGER) 5.900% 09/06/1995 .......................... 13,200 13,200,000 Illinois Health Facilities Authority Convertible VRDN (The Streeterville Corp. Project) Series 1993-B (First National Bank of Chicago LOC) (DAGGER) 5.900% 09/06/1995 .......................... 4,400 4,400,000 ------------- 18,200,000 ------------- Kentucky--0.2% Boone County Taxable IDR Refunding Bonds (Square D Company Project) Series 1994-B (Credit Lyonnais LOC) VRDN (DAGGER) 5.850% 09/06/1995 .......................... 4,200 4,200,000 -------------
See Accompanying Notes to Financial Statements. 4 THE BEDFORD FAMILY THE RBB FUND, INC. MONEY MARKET PORTFOLIO STATEMENT OF NET ASSETS (CONTINUED) AUGUST 31, 1995
Par (000) Value ------------- -------------- Minnesota--0.3% Fairview Hospital and Healthcare Services Taxable Adjustable Convertible Extendable Securities Series 1994 (MBIA Insured) VRDN (DAGGER) 5.900% 09/07/1995 .......................... $ 5,200 $ 5,200,000 ------------- Mississippi--1.1% Hinds County IDR Bonds VRDN (DAGGER) 5.950% 09/06/1995 .......................... 1,500 1,500,000 5.950% 09/06/1995 .......................... 2,410 2,410,000 Mississippi Business Finance Corp. Taxable IDR Bonds VRDN (DAGGER) 5.950% 09/07/1995 .......................... 2,500 2,500,000 Mississippi Business Finance Corp. Taxable IDR Bonds (Bryan Foods Project) Series 1994 (Sara Lee Corporation Guaranty) VRDN (DAGGER) 5.850% 09/06/1995 .......................... 14,000 14,000,000 ------------- 20,410,000 ------------- New York--0.9% Health Insurance Plan of Greater New York Adjustable/Convertible Extendable Securities 1990 B-1 (Morgan Guaranty Trust Co. LOC) VRDN (DAGGER) 5.850% 09/06/1995 .......................... 6,800 6,800,000 Health Insurance Plan of Greater New York Adjustable/Convertible Extendable Securities VRDN (DAGGER) 5.850% 09/06/1995 .......................... 5,500 5,500,000 New York City (DAGGER) 6.020% 11/21/1995 .......................... 5,000 5,000,000 ------------- 17,300,000 ------------- North Carolina--0.8% Community Health Systems, Inc. Taxable First National Bank of North Carolina Series 1991-A (DAGGER) 6.050% 09/06/1995 .......................... 400 400,000 City of Asheville, North Carolina Tax Corp. (DAGGER) 5.850% 09/06/1995 .......................... 13,500 13,500,000 ------------- 13,900,000 -------------
Par (000) Value ------------- -------------- Texas--0.8% South Central Texas Industrial Development Corp. Taxable IDR Bonds (Rohr Industries Project) Series 1990 (Citibank N.A. LOC) (DAGGER) 5.900% 09/06/1995 .......................... $ 14,800 $ 14,800,000 ------------- TOTAL MUNICIPAL BONDS (Cost $116,635,000) .................... 116,635,000 ------------- TIME DEPOSITS--4.1% Z-Laenderbank, Bank of Austria AG 5.750% 09/01/1995 .......................... 50,000 50,000,000 Huntington National Bank of Ohio 5.770% 09/08/1995 .......................... 25,000 25,000,000 ------------- TOTAL TIME DEPOSITS (Cost $75,000,000) ..................... 75,000,000 ------------- CORPORATE OBLIGATIONS--24.1% Automobiles--0.2% American Honda Corp. (DAGGER) 5.975% 11/09/1995 .......................... 4,500 4,497,522 ------------- Banks--5.7% Boatman's Bankshares of South Missouri (DAGGER) 5.934% 11/14/1995 .......................... 5,000 5,000,000 First Union National Bank of North Carolina (DAGGER) 5.590% 09/01/1995 .......................... 40,000 40,000,000 Morgan Guaranty Trust (DAGGER) 5.920% 09/01/1995 .......................... 50,000 49,971,598 Society Corporation 4.755% 03/11/1996 .......................... 3,300 3,271,557 Comerica Bank (DAGGER) 5.610% 09/05/1995 .......................... 5,000 4,998,980 ------------- 103,242,135 ------------- Finance Lessors--3.0% IBM Credit Corp. (DAGGER) 5.770% 09/01/1995 .......................... 5,000 4,999,736 IBM Credit Corp. 5.880% 08/08/1996 .......................... 25,000 24,997,898 6.000% 08/28/1996 .......................... 25,000 24,998,022 ------------- 54,995,656 -------------
See Accompanying Notes to Financial Statements. 5 THE BEDFORD FAMILY THE RBB FUND, INC. MONEY MARKET PORTFOLIO STATEMENT OF NET ASSETS (CONTINUED) AUGUST 31, 1995
Par (000) Value ------------- -------------- Natural Gas Transmisson--0.3% Southern California Gas 5.050% 09/01/1995 .......................... $ 5,000 $ 5,000,000 ------------- Personal Credit Institutions--1.3% Associates Corporation of North America 8.750% 02/01/1996 .......................... 4,500 4,547,190 General Motors Acceptance Corp. 8.750% 02/01/1996 .......................... 5,000 5,041,587 5.950% 02/23/1996 .......................... 3,700 3,686,341 8.250% 08/01/1996 .......................... 5,000 5,104,080 General Motors Acceptance Corp. (DAGGER) 6.175% 09/01/1995 .......................... 5,000 4,997,915 ------------- 23,377,113 ------------- Security Brokers & Dealers--13.6% Bear Stearns & Co., Inc. (DAGGER) 5.920% 09/01/1995 .......................... 20,000 20,000,000 5.950% 09/01/1995 .......................... 50,000 50,000,000 Goldman Sachs Group, LP (DAGGER) 6.188% 09/06/1995 .......................... 53,000 53,000,000 Lehman Brothers Holdings, Inc. (DAGGER) 6.025% 09/07/1995 .......................... 50,000 50,000,000 Merrill Lynch & Co. 4.750% 06/24/1996 .......................... 9,135 9,050,470 Merrill Lynch & Co. (DAGGER) 6.100% 09/01/1995 .......................... 20,000 20,002,991 Merrill Lynch & Co. 6.440% 05/15/1996 .......................... 15,000 15,000,000 6.050% 08/19/1996 .......................... 15,000 15,000,000 Morgan Stanley Group (DAGGER) 5.975% 01/03/1996 .......................... 15,000 15,000,000 ------------- 247,053,461 ------------- TOTAL CORPORATE OBLIGATIONS (Cost $438,165,887) .................... 438,165,887 -------------
Par (000) Value ------------- -------------- REPURCHASE AGREEMENTS--14.0% Goldman Sachs & Co. 5.850% 09/01/1995 .......................... $ 75,000 $ 75,000,000 (Agreement dated 08/31/95 to be repurchased at $75,012,188, collateralized by $81,381,406 Federal National Mortgage Assoc. 6.31% due 04/01/34. Market value of collateral is $77,250,000). Goldman Sachs & Co. 5.950% 09/01/1995 .......................... 25,000 25,000,000 (Agreement dated 08/31/95 to be repurchased at $25,004,132, collateralized by $23,072,000 U.S. Treasury Notes 7.875% to 8.75% due 04/15/98 to 08/15/00. Market value of collateral is $25,500,530). Morgan Stanley & Co. 5.875% 09/01/1995 .......................... 150,000 150,000,000 (Agreement dated 08/31/95 to be repurchased at $150,024,479, collateralized by $72,370,070 Federal National Mortgage Assoc. 6.50% to 7.50% due 5/25/08 to 3/25/24 and $117,471,933 Federal Home Loan Mortgage Corp. 0.00% to 12.50% due 6/15/00 to 3/15/24. Market value of collateral is $153,773,069). PaineWebber Incorporated 5.875% 09/01/1995 .......................... 4,900 4,900,000 (Agreement dated 08/31/95 to be repurchased at $4,900,800, collateralized by $10,655,000 Federal National Mortgage Assoc. Strip due 04/01/24. Market value of collateral is $5,047,523). ------------- TOTAL REPURCHASE AGREEMENTS (Cost $254,900,000) .................... 254,900,000 -------------
See Accompanying Notes to Financial Statements. 6 THE BEDFORD FAMILY THE RBB FUND, INC. MONEY MARKET PORTFOLIO STATEMENT OF NET ASSETS (CONCLUDED) AUGUST 31, 1995
Value -------------- TOTAL INVESTMENTS AT VALUE--99.8% (Cost $1,817,297,176*) ................... $1,817,297,176 OTHER ASSETS IN EXCESS OF LIABILITIES--0.2% ..................... 4,074,512 -------------- NET ASSETS (Applicable to 935,832,262 Bedford shares, 235,665 Cash Preservation shares, 443,649,097 Janney Montgomery Scott shares, 55,401 RBB shares, 441,618,989 Sansom Street shares and 800 other shares)--100.0% ............ $1,821,371,688 ============== NET ASSET VALUE, offering and redemption price per share ($1,821,371,688 / 1,821,392,214).......... $1.00 ===== * Also cost for Federal income tax purposes. (DAGGER) Variable Rate Obligations -- The interest rate shown is the rate as of August 31, 1995 and the maturity date shown is the longer of the next interest rate readjustment date or the date the principal amount shown can be recovered through demand. INVESTMENT ABBREVIATIONS VRDN ..................................................Variable Rate Demand Note LOC ............................................................Letter of Credit IDR...............................................Industrial Development Revenue
See Accompanying Notes to Financial Statements. 7 THE BEDFORD FAMILY THE RBB FUND, INC. MONEY MARKET PORTFOLIO
STATEMENT OF OPERATIONS FOR THE YEAR ENDED AUGUST 31, 1995 INVESTMENT INCOME Interest ............................ $ 75,047,617 ------------ EXPENSES Investment advisory fees ............ 4,864,529 Distribution fees ................... 5,212,833 Service organization fees ........... 391,361 Directors' fees ..................... 11,538 Custodian fees ...................... 219,718 Transfer agent fees ................. 1,536,138 Legal fees .......................... 66,236 Audit fees .......................... 73,717 Registration fees ................... 165,999 Insurance expense ................... 37,784 Printing expense .................... 236,808 Miscellaneous ....................... 70 ------------ 12,816,731 Less fees waived .................... (2,670,396) Less expense reimbursement by advisor (12,047) ------------ TOTAL EXPENSES ................... 10,134,288 ------------ NET INVESTMENT INCOME .................. 64,913,329 ------------ REALIZED LOSS ON INVESTMENTS ........... (18,463) ------------ NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS ..................... $ 64,894,866 ============
STATEMENT OF CHANGES IN NET ASSETS For the For the Year Ended Year Ended August 31, 1995 August 31, 1994 --------------- --------------- Increase in net assets: Operations: Net investment income ...... $ 64,913,329 $ 32,169,184 Net loss on investments .... (18,463) (2,062) --------------- --------------- Net increase in net assets resulting from operations 64,894,866 32,167,122 --------------- --------------- Distributions to shareholders: Dividends to shareholders from net investment income: Bedford shares ($.0486 and $.0278, respectively, per share) ............... (38,765,552) (21,525,364) Cash Preservation shares ($.0487 and $.0278, respectively, per share) . (11,336) (26,296) Janney Montgomery Scott shares ($.0112 per share for 1995) ................ (4,784,092) -- RBB shares ($.0482 and $.0273, respectively, per share) ............... (2,530) (1,576) Sansom Street shares ($.0543 and $.0334, respectively, per share) ............... (21,349,819) (10,615,948) Distributions to shareholders from net realized short-term gains: Bedford shares ............. -- (48,280) Cash Preservation shares ... -- (40) Janney Montgomery Scott shares ................... -- -- RBB shares ................. -- (5) Sansom Street shares ....... -- (15,323) --------------- --------------- Total distributions to shareholders ........... (64,913,329) (32,232,832) --------------- --------------- Net capital share transactions ............... 736,630,198 110,590,287 --------------- --------------- Total increase in net assets .. 736,611,735 110,524,577 Net Assets: Beginning of Year .......... 1,084,759,953 974,235,376 --------------- --------------- End of year ................ $ 1,821,371,688 $ 1,084,759,953 =============== ===============
See Accompanying Notes to Financial Statements. 8 THE BEDFORD FAMILY THE RBB FUND, INC. MUNICIPAL MONEY MARKET PORTFOLIO STATEMENT OF NET ASSETS AUGUST 31, 1995
Par (000) Value ------------- -------------- ALABAMA--2.6% Columbia Industrial Development Board (Alabama Power Company (Project) Series 1995 A DN (DAGGER) [A-1] 3.300% 09/01/1995 .......................... $ 2,000 $ 2,000,000 Demopolis DN / (Banque Nationale de Paris LOC) (DAGGER) [A-1+] 3.850% 09/07/1995 .......................... 3,000 3,000,000 Health Care Authority of the City of Huntsville Health Care Facilities Revenue 1994-b DN / (MBIA Insurance) (DAGGER) [A-1+] 3.400% 09/07/1995 .......................... 5,000 5,000,000 Livingston IDR Toin Corp USA Project DN / (Industrial Bank of Japan LOC) (DAGGER) [A-1+] 4.000% 09/07/1995 .......................... 1,000 1,000,000 ------------- 11,000,000 ------------- ALASKA--0.8% Alaska Housing Finance Corp. .................. Governmental Purpose Bonds 1994 Series A DN / (Westdeutsche Landesbank Girozentrale LOC) (DAGGER) [A-1+] 3.550% 09/07/1995 .......................... 1,300 1,300,000 Alaska Industrial Development and Export Authority Comp IBD Current Refunding Bonds Series 1984-5 (Bank of America LOC) DN (DAGGER) [A-1] 3.850% 09/07/1995 .......................... 2,100 2,100,000 ------------- 3,400,000 ------------- ARIZONA--5.4% Apache County IDA Bonds DN / (Barclays Bank LOC) (DAGGER) [A-1+] 3.625% 09/06/1995 .......................... 10,000 10,000,000 Flagstaff IDA DN / (FGIC Insurance) (DAGGER) [A-1] 3.800% 09/07/1995 .......................... 5,855 5,855,000
Par (000) Value ------------- -------------- ARIZONA--(continued) Maricopa County Pollution Control Corporation PCR Refunding Bonds Arizona Public Service Co. DN / (Toronto Dominion LOC) (DAGGER) [A-1+] 3.300% 09/01/1995 .......................... $ 1,600 $ 1,600,000 Phoenix City DN / (Canadian Imperial Bank LOC) (DAGGER) [A-1+] 3.400% 09/07/1995 .......................... 2,650 2,650,000 Pima County IDA RB DN / (Barclays Bank LOC) (DAGGER) [A-1+] 3.625% 09/07/1995 .......................... 2,900 2,900,000 ------------- 23,005,000 ------------- ARKANSAS--1.5% Arkansas Development Finance Authority Revenue Bonds DN / (FGIC Insurance) (DAGGER) [A-1+] 3.600% 09/07/1995 .......................... 2,900 2,900,000 City of Hope Arkansas MB (DOUBLE DAGGER) [A-1] 3.950% 10/27/1995 .......................... 2,400 2,400,000 Warren Park Solid Waste DN / (Credit Suisse LOC) (DAGGER) [A-1+] 3.700% 09/07/1995 .......................... 1,000 1,000,000 ------------- 6,300,000 ------------- CALIFORNIA--1.1% City of Loma Linda Medical Center Project Series A Hospital RB DN / (Ind. Bank of Japan LOC) (DAGGER) [A-1] 3.750% 09/01/1995 .......................... 700 700,000 Los Angeles County California TRAN (Bank of America LOC) [SP-1] 4.500% 07/01/1996 .......................... 2,500 2,513,989 Southern California Public Power Authority Transmission Project RB 1991 Subordinated Refunding Series DN / (AMBAC Insurance) (DAGGER) [A-1+] 3.150% 09/07/1995 .......................... 1,500 1,500,000 ------------- 4,713,989 -------------
See Accompanying Notes to Financial Statements. 9 THE BEDFORD FAMILY THE RBB FUND, INC. MUNICIPAL MONEY MARKET PORTFOLIO STATEMENT OF NET ASSETS (CONTINUED) AUGUST 31, 1995
Par (000) Value ------------- -------------- COLORADO--2.8% Colorado Health Care Facilities Authority (Sisters of Charity) DN (DAGGER) [A-1+] 3.550% 09/07/1995 .......................... $ 7,300 $ 7,300,000 City and County of Denver Airport System Subordinate RB MB/ (Sumitomo Bank LOC) (DOUBLE DAGGER) [VMIG] 3.900% 09/21/1995 .......................... 1,000 1,000,000 Moffat County DN (DAGGER) [A-1+] 3.600% 09/07/1995 .......................... 3,400 3,400,000 ------------- 11,700,000 ------------- CONNECTICUT--0.2% Connecticut Housing Mortgage Finance Program Series E MB (DOUBLE DAGGER) [VMIG1, A-1+] 4.400% 11/15/1995 .......................... 800 800,000 ------------- DELAWARE--0.7% The Delaware Economic Development Authority Gas Facilities Refunding RB DN (Delmarva Power & Light Project) Series 1993-C (Delmarva Power & Light Corporate Obligor) (DAGGER) [VMIG1] 3.800% 09/07/1995 .......................... 3,000 3,000,000 ------------- FLORIDA--3.1% Alachua County Health Facility RB (North Florida Retirement Village) Series 1991 DN / (Kredietbank LOC) (DAGGER) [A-1] 3.600% 09/07/1995 .......................... 1,500 1,500,000 Broward County Variable Rate Demand IDA RB (Allied Signal Inc. Project) Series 1992 (Allied Signal Corporate Obligor) DN (DAGGER) [A-1] 3.700% 09/07/1995 .......................... 400 400,000 Florida Housing Finance Agency DN / (Wells Fargo Bank LOC) (DAGGER) [A-1] 3.800% 09/30/1995 .......................... 3,000 3,000,000 Greater Orlando Aviation Airport Authority Facilities TECP Series B (DOUBLE DAGGER) [P-1, A-1] 3.750% 09/29/1995 .......................... 7,500 7,500,000
Par (000) Value ------------- -------------- FLORIDA--(continued) Jacksonville Florida MB (DOUBLE DAGGER) 8.875% 10/01/1995 .......................... $ 700 $ 716,461 ------------- 13,116,461 ------------- GEORGIA--4.5% Burke County Development Authority PCR Bonds (Georgia Power Company Plant Vogtle Projection) DN (DAGGER) [A-1] 3.300% 09/01/1995 .......................... 1,900 1,900,000 Burke County Development Authority PCR DN (DAGGER) [A-10] 3.600% 09/01/1995 .......................... 2,800 2,800,000 Dekalb County Development Authority (Metro Atlanta YMCA Project) DN / (Wachovia LOC) (DAGGER) [A-1+] 3.400% 09/07/1995 .......................... 4,105 4,105,000 Forsyth County IDA RB DN (American Boa Inc. Project) (DAGGER) 3.900% 09/07/1995 .......................... 2,000 2,000,000 Fulco Hospital Authority Revenue Anticipation Certificates MB / (Barclays Bank LOC) (DOUBLE DAGGER) 9.300% 10/01/1995 .......................... 700 716,695 Fulton County Development Authority (Metro Atlanta YMCA Project) DN / (Wachovia LOC) (DAGGER) [A-1+] 3.400% 09/07/1995 .......................... 3,290 3,290,000 Georgia Municipal Association Pooled Bonds DN / (Credit Suisse LOC) (DAGGER) [A1+] 3.600% 09/07/1995 .......................... 3,098 3,097,945 Monroe County Development Authority PCR DN (DAGGER) [A-1] 3.300% 09/01/1995 .......................... 1,200 1,200,000 ------------- 19,109,640 ------------- HAWAII--0.3% City and County of Honolulu TECP Line of Credit CIBC MB (DOUBLE DAGGER) [A-1+] 3.900% 10/31/1995 .......................... 1,500 1,500,000 -------------
See Accompanying Notes to Financial Statements. 10 THE BEDFORD FAMILY THE RBB FUND, INC. MUNICIPAL MONEY MARKET PORTFOLIO STATEMENT OF NET ASSETS (CONTINUED) AUGUST 31, 1995
Par (000) Value ------------- -------------- ILLINOIS--12.3% Chicago O'Hare International Airport Special Facility RB DN / (Society General LOC ) (DAGGER) [A-1+] 3.650% 09/07/1995 .......................... $ 5,800 $ 5,800,000 City of Chicago GO Tender Notes DN / (Society General LOC) (DAGGER) [A-1+] 3.600% 09/07/1995 .......................... 1,000 1,000,000 Educational Facility Authority DN (Illinois Institute of Technology) Series A (DAGGER) [MIG1] 3.600% 09/07/1995 .......................... 10,200 10,200,000 Health Facility Authority DN (Central Health Care And Northwest Community Hospital) / (Sumitomo Bank LOC) (DAGGER) [MIG] 3.550% 09/07/1995 .......................... 1,545 1,545,000 Illinois Development Facility Harris DN / (FNMA LOC) (DAGGER) [A-1+] 3.700% 09/07/1995 .......................... 12,300 12,300,000 Illinois Development Finance Authority (CHS Acquisition Corp. Project) DN / (ABM-AMRO BANK N.V. LOC) (DAGGER) [A-1+] 4.000% 09/07/1995 .......................... 5,035 5,035,000 Illinois Development Finance Authority PCR DN (Commonwealth Edison CO Project) Series 94C / (ABM-AMRO Bank N.V. LOC) (DAGGER) [A-1+] 3.550% 09/07/1995 .......................... 7,000 7,000,000 Illinois Educational Facilities Authority RB DN (DAGGER) [A-1] 3.700% 09/07/1995 .......................... 8,000 8,000,000 Illinois Health Facilities MB/(First National Bank of Chicago LOC (DOUBLE DAGGER) 4.000% 02/01/1996 .......................... 1,000 1,000,000 ------------ 51,880,000 ------------ INDIANA--2.5% Indiana Bond Bank MB (DOUBLE DAGGER) 3.995% 09/07/1995 .......................... 3,500 3,500,000 Indiana Housing Finance Authority Series 1994C MB (DOUBLE DAGGER) 4.000% 07/01/1996 .......................... 1,500 1,500,000
Par (000) Value ------------- -------------- INDIANA--(continued) Orleans Economic Development RB (Almana Ltd Liabilty Co. Project) Series 95 DN (DAGGER) 3.950% 09/07/1995 .......................... $ 5,400 $ 5,400,000 ------------ 10,400,000 ------------ IOWA--3.7% Council Bluffs City PCR RB DN (Iowa-Illinois Gas and Electric Company Project) Series 1995 3.600% (DAGGER) 09/07/1995 ................. 11,650 11,650,000 Iowa Finance Authority Tax-Exempt Adjustable Mode IDA RB DN (Dixie Bedding Co. Project) Series 95 / (Wachovia LOC) (DAGGER) [AA2] 3.875% 09/07/1995 .......................... 3,000 3,000,000 Osceola IDA RB (Babson Brothers Co. Project) Series 1986 (LOC-Bank of New York) DN / (Bank of New York LOC) (DAGGER) [MIG] 3.750% 09/07/1995 .......................... 1,100 1,100,000 ------------ 15,750,000 ------------ KANSAS--1.9% Lawrence IDA RB Series A Ram Co. Project DN / (Wachovia LOC) (DAGGER) 3.875% 09/07/1995 .......................... 2,125 2,125,000 Shawnee IDA RB Thrall Enterprises Inc. Project DN (DAGGER) [A-1+] 3.900%(DAGGER) 09/07/1995 ................. 6,000 6,000,000 ------------ 8,125,000 ------------ KENTUCKY--9.2% Henderson County Solid Waste Disposal RB (Hudson Foods Inc. Project) DN / (Rabo Bank Nederland LOC) (DAGGER) [MIG] 3.700% 09/07/1995 .......................... 10,000 10,000,000 Hopkinsville IDA RB (Douglas Autotech Corp. Project) Series 95 DN / (Ind Bank of Japan LOC) [A-1+] 4.000%(DAGGER) 09/07/1995 .................. 7,700 7,700,000
See Accompanying Notes to Financial Statements. 11 THE BEDFORD FAMILY THE RBB FUND, INC. MUNICIPAL MONEY MARKET PORTFOLIO STATEMENT OF NET ASSETS (CONTINUED) AUGUST 31, 1995
Par (000) Value ------------- -------------- KENTUCKY--(continued) Maysville City Solid Waste Disposal Facilities RB MB (DOUBLE DAGGER) [A-1] 3.650% 10/13/1995 .......................... $ 8,365 $ 8,365,000 3.950% 11/10/1995 .......................... 6,000 6,000,000 Pulaski County Solid Waste Disposal RB National Rural Utilities for East Kentucky Power MB [VMIG, A-1+] 3.900% 02/15/1996 .......................... 6,700 6,700,000 ------------- 38,765,000 ------------- MARYLAND--1.3% Anne Arundel County PCR TECP (DOUBLE DAGGER) [VMIG, A-1] 3.900% 10/13/1995 .......................... 5,380 5,380,000 ------------- MICHIGAN--1.5% Detroit Downtown Development Authority DN (Millender Project) / (Sumitomo Bank LOC) (DAGGER) [VMIG] 3.700% 09/07/1995 .......................... 5,200 5,200,000 Northville IDA DN (Thrifty Northville Project) / (Westpac Banking Corp. LOC) (DAGGER) [P-1] 3.750% 09/07/1995 .......................... 1,000 1,000,000 ------------- 6,200,000 ------------- MISSOURI--0.6% City of Kansas City IDA RB (Mid-America Health Services Inc. Project) Series 1984 DN / (Bank of New York LOC) (DAGGER) [A-1] 3.900% 09/07/1995 .......................... 1,100 1,100,000 Health and Educational Facility Authority School District Advance Funding Program Notes (Kansas City School District Project) Series 1994-F (GIC-Transamerica) MB (DOUBLE DAGGER) [SP1+] 4.500% 09/19/1995 .......................... 1,325 1,325,032 ------------- 2,425,032 ------------- NEBRASKA--0.9% Lancaster (Sun-Husker Foods Inc. Project) DN / (Bank of Tokyo LOC) (DAGGER) [A-1+] 4.000% 09/07/1995 .......................... 3,800 3,800,000 -------------
Par (000) Value ------------- -------------- NEW JERSEY--0.1% New Jersey Natural Gas Co. Project Series B DN / (AMBAC Insurance) (DAGGER) [MIG] 3.150% 09/01/1995 .......................... $ 500 $ 500,000 ------------- NEW HAMPSHIRE--0.2% New Hampshire PCRB (New England Power Co. Project) Series 1990A MB (DOUBLE DAGGER) [A-1] 3.600% 09/08/1995 .......................... 1,050 1,050,000 ------------- NEW YORK--0.8% New York City GO Series B10 DN / (Union Bank of Switzerland LOC) (DAGGER) [A-1+] 3.550% 09/07/1995 .......................... 500 500,000 New York City RANS 1996 MB (DOUBLE DAGGER) 4.500% 04/11/1996 .......................... 2,770 2,779,266 ------------- 3,279,266 ------------- NORTH CAROLINA--4.1% North Carolina Educational Facilities Finance Agency DN (DAGGER) [A-1+] 3.650% 09/07/1995 .......................... 1,100 1,100,000 North Carolina Medical Care (Moses H Cone Memorial Hospital Project) DN (Wachovia LOC) (DAGGER) [A-1+] 3.800% 09/07/1995 .......................... 1,200 1,200,000 Wake County Industrial Facility & Pollution Control Authority DN Series 87 (DAGGER) [P-1] 3.650% 09/01/1995 .......................... 14,900 14,900,000 ------------- 17,200,000 ------------- OHIO--0.6% Toledo Improvement Notes Series 2 MB (DOUBLE DAGGER) 3.890% 05/15/1996 .......................... 2,610 2,610,707 ------------- OKLAHOMA--1.5% Muldrow Public Works Authority IDA RB (Oklahoma Foods Inc. Project) DN / (RABO Bank Nederland LOC) (DAGGER) [A-1+] 4.000% 09/07/1995 .......................... 6,300 6,300,000 -------------
See Accompanying Notes to Financial Statements. 12 THE BEDFORD FAMILY THE RBB FUND, INC. MUNICIPAL MONEY MARKET PORTFOLIO STATEMENT OF NET ASSETS (CONTINUED) AUGUST 31, 1995
Par (000) Value ------------- -------------- PENNSYLVANIA--1.4% Cambria County IDA Resource Recovery RB DN / (Fuji Bank LOC) (DAGGER) [A-1] 3.700% 09/07/1995 .......................... $ 2,000 $ 2,000,000 Carlisle Boro Municipal Authority RB MB (DOUBLE DAGGER) 9.500% 11/01/1995 .......................... 1,500 1,541,683 9.500% 11/01/1995 .......................... 500 506,796 Clinton County IDA Annual Tender Solid Waste Disposal RB (International Paper Co. Project) Series 1992-A (International Paper Corporate Obligation) (DOUBLE DAGGER) 5.200% 01/16/1996 .......................... 2,000 2,000,000 ------------- 6,048,479 ------------- RHODE ISLAND--2.7% Rhode Island Student Loan Series 1 DN / National Westminster LOC) (DAGGER) [A-1+] 3.650% 09/06/1995 .......................... 9,500 9,500,000 Rhode Island Housing & Mortgage Finance Corporation Home Ownership Opportunity Bonds Series 17-C MB [VMIG, A-1+] 4.400% 02/01/1996 .......................... 2,000 2,000,000 ------------- 11,500,000 ------------- SOUTH CAROLINA--1.6% Florence County Hospital RB DN / (FGIC Insurance) (DAGGER) [A-1] 3.600% 09/07/1995 .......................... 6,600 6,600,000 ------------- SOUTH DAKOTA--0.4% Lawrence County Variable/Fixed Rate PCR RB (Homestake Mining Company Project) Series 1983 DN / (Bank of Nova Scotia LOC) (DAGGER) [A-1] 3.600% 09/07/1995 .......................... 1,500 1,500,000 ------------- TENNESSEE--2.1% Hamilton County Tennessee GO Bond MB (DOUBLE DAGGER) 4.300% 10/01/1995 .......................... 1,000 1,000,000
Par (000) Value ------------- -------------- TENNESSEE--(continued) Memphis General Improvement Airport Refunding Bonds Series 95B DN / (Westdeutsche Landesbank Girozentrale LOC) (DAGGER) [A-1+] 3.550% 09/07/1995 .......................... $ 5,600 $ 5,600,000 Montgomery County Public Building Authority Tennessee County Loan Pool GO DN / (NCNB LOC) (DAGGER) [A-1] 3.700% 09/07/1995 .......................... 2,400 2,400,000 ------------- 9,000,000 ------------- TEXAS--17.7% Angelina and Neches River Authority Solid Waste Disposal RB MB (DOUBLE DAGGER) [P-1, A-1] 3.450% 09/08/1995 .......................... 7,300 7,300,000 Brazos Higher Education Authority, Inc. Student Loan RB DN / (Student Loan Marketing Assoc. LOC) (DAGGER) [MIG] 3.550% 09/07/1995 .......................... 9,000 9,000,000 Harris County Health Facility Development Corporation Texas Childrens DN (DAGGER) [MIG] 3.550% 09/07/1995 .......................... 5,000 5,000,000 Houston Water and Sewer System Series A MB (DOUBLE DAGGER) [P-1, A-1+] 4.200% 09/07/1995 .......................... 5,000 5,000,000 North Texas Higher Education Authority Inc. Student Loan Revenue Senior Series 87 DN / (Fuji Bank LOC) (DAGGER) [MIG] 3.700% 09/07/1995 .......................... 13,900 13,900,000 North Texas Higher Education Student Loan Revenue Series A DN (DAGGER) [A-1+] 3.750% 09/07/1995 .......................... 5,000 5,000,000 Panhandle Plains Higher Education Authority Student Loan RB DN / (Student Loan Marketing Assoc LOC) (DAGGER) [MIG] 3.550% 09/07/1995 .......................... 5,700 5,700,000 Sabine River IDA RB Northeast Texas SPA National Rural Utilities MB (DOUBLE DAGGER) [A-1+] 3.800% 02/15/1996 .......................... 2,005 2,005,000
See Accompanying Notes to Financial Statements. 13 THE BEDFORD FAMILY THE RBB FUND, INC. MUNICIPAL MONEY MARKET PORTFOLIO STATEMENT OF NET ASSETS (CONTINUED) AUGUST 31, 1995
Par (000) Value ------------- -------------- TEXAS--(continued) San Antonio Texas Housing Finance Corporation (Wellington Place Apartments) Series 1995A DN (DAGGER) [A-1+] 3.700% 09/07/1995 .......................... $ 3,000 $ 3,000,000 San Antonio Water System Series 92 TECP (Revenue Credit Agreement with Credit Suisse) MB (DOUBLE DAGGER) 4.200% 09/14/1995 .......................... 4,000 4,000,000 Texas University System Board of Regents Permanent University Fund Series B MB (DOUBLE DAGGER) [P-1, A-1+] 3.900% 10/13/1995 .......................... 5,000 5,000,000 Texas Water Development Board 1992A MB (DOUBLE DAGGER) [A-1+] 3.750% 09/07/1995 .......................... 10,000 10,000,000 ------------- 74,905,000 ------------- UTAH--1.9% Intermountain Power Agency MB (DOUBLE DAGGER) [A-1] 3.850% 06/15/1996 .......................... 1,000 1,000,000 Salt Lake Airport Revenue DN (DAGGER) [A-1+] 3.550% 09/07/1995 .......................... 2,600 2,600,000 Utah State Board of Regents Student Loan Revenue Series C Student Loan RB DN / (Dresdner Bank LOC) (DAGGER) [A-1+] 3.750% 09/07/1995 .......................... 3,400 3,400,000 Utah Housing Finance Agency Single Family Mortgage Variable Rate Bonds DN / (Guaranteed Investor Contract LOC) (DAGGER) [MIG] 3.650% 09/07/1995 .......................... 1,100 1,100,000 ------------- 8,100,000 ------------- VIRGINIA--1.0% Culpeper Town IDA Residential Care Facility RB DN / (NCNB LOC) (DAGGER) (A-1] 3.700% 09/07/1995 .......................... 400 400,000 Lynchburg IDA Hospital RB DN (DAGGER) [A-1] 3.550% 09/07/1995 .......................... 400 400,000 Peninsula Ports Authority Variable/Fixed Rate IDA RB DN (Allied Signal Inc. Project) Series 1993 (Allied Signal Corp. Obligation) (DAGGER) [A-1] 3.700% 09/07/1995 .......................... 1,000 1,000,000
Par (000) Value ------------- -------------- VIRGINIA--(continued) Virgina State Housing Authority Commonwealth Mortgage Bonds Subseries B-STEM MB (DOUBLE DAGGER) [VMIG, A-1+] 3.550% 09/12/1995 .......................... $ 2,500 $ 2,500,000 ------------- 4,300,000 ------------- WASHINGTON--1.3% King County GO Bonds MB (DOUBLE DAGGER) [Aa1] 8.000% 12/01/1995 .......................... 670 675,865 Port of Seattle IDA DN (Alaska Airlines Project) / (Bank of America LOC) (DAGGER) [A-1] 4.200% 09/07/1995 .......................... 4,900 4,900,000 ------------- 5,575,865 ------------- WEST VIRGINIA--1.9% Commission of Grant County DN Series 88B / (Bank of America LOC) (DAGGER) [P-1] 3.750% 09/07/1995 .......................... 5,000 5,000,000 Marion County DN / (National Westminster LOC) (DAGGER) [A-1+] 3.800% 09/07/1995 .......................... 1,200 1,200,000 Marion County Solid Waste DN / (National Westminster LOC) (DAGGER) [A-1+] 3.800% 09/07/1995 .......................... 1,800 1,800,000 ------------- 8,000,000 ------------- WISCONSIN--3.2% Racine School District TRAN [SP-1] 4.500% 08/23/1996 .......................... 6,000 6,025,277 Wisconsin Health Facilities Authority Daughters of Charity St. Mary's Hospital RB DN (DAGGER) [MIG] 3.500% 09/07/1995 .......................... 3,850 3,850,000 Wisconsin Housing and Economic Development Authority Home Ownership RB MB (DOUBLE DAGGER) 4.650% 09/01/1995 .......................... 1,000 1,000,587
See Accompanying Notes to Financial Statements. 14 THE BEDFORD FAMILY THE RBB FUND, INC. MUNICIPAL MONEY MARKET PORTFOLIO STATEMENT OF NET ASSETS (CONCLUDED) AUGUST 31, 1995
Par (000) Value ------------- -------------- WISCONSIN--(continued) Wisconsin Housing & Economic Development Authority Home Ownership RB Series 1991-B TOB DN (DAGGER) 4.650% 09/01/1995 .......................... $ 2,500 $ 2,500,300 ------------- 13,376,164 ------------- WYOMING--0.2% City of Green River Variable/Fixed Rate Demand PCR Refunding Bonds (Allied Signal Inc. Project) Series 1994 (Allied Signal Corporate Obligation) DN (DAGGER) [A-1] 3.700% 09/07/1995 .......................... 1,000 1,000,000 ------------- TOTAL INVESTMENTS AT VALUE--99.6% (Cost $421,215,603*) ....................... 421,215,603 OTHER ASSETS IN EXCESS OF LIABILITIES--0.4% ....................... 1,538,260 ------------- NET ASSETS (Applicable to 198,494,293 Bedford shares, 110,935,556 Bradford shares, 161,271 Cash Preservation shares, 113,224,055 Janney Montgomery Scott shares, 4,939 RBB Shares and 800 other shares)--100.0% ...................... $ 422,753,863 ============= NET ASSET VALUE, offering and redemption price per share ($422,753,863 / 422,820,914) ............... $1.00 ===== * Also cost for Federal income tax purposes. (DAGGER) Variable Rate Demand Notes -- The interest rate shown is the rate as of August 31, 1995 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. (DOUBLE DAGGER) Put Bonds -- Maturity date is the put date. The Moody's Investor Service, Inc. and Standard & Poor's Ratings Group's ratings indicated are the most recent ratings available at August 31, 1995. These ratings have not been audited by the Independent Accountants, and, therefore, are not covered by the Report of Independent Accountants. INVESTMENT ABBREVIATIONS 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. 15 THE BEDFORD FAMILY THE RBB FUND, INC. MUNICIPAL MONEY MARKET PORTFOLIO
STATEMENT OF OPERATIONS FOR THE YEAR ENDED AUGUST 31, 1995 INVESTMENT INCOME Interest ............................ $ 12,433,286 ------------ EXPENSES Investment advisory fees ............ 1,109,073 Administration fees ................. 328,023 Distribution fees ................... 1,837,762 Directors' fees ..................... 2,936 Custodian fees ...................... 76,400 Transfer agent fees ................. 215,821 Legal fees .......................... 27,428 Audit fees .......................... 18,863 Registration fees ................... 118,998 Amortization expense ................ 2,726 Insurance expense ................... 9,739 Printing expense .................... 69,197 Miscellaneous ....................... 24 ------------ 3,816,990 Less fees waived .................... (1,063,867) Less expense reimbursement by advisor (11,593) ------------ TOTAL EXPENSES ................... 2,741,530 ------------ NET INVESTMENT INCOME .................. 9,691,756 ------------ REALIZED GAIN ON INVESTMENTS ........... 7,009 ------------ NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS ..................... $ 9,698,765 ============
STATEMENT OF CHANGES IN NET ASSETS For the For the Year Ended Year Ended August 31, 1995 August 31, 1994 ------------- ------------- Increase (decrease) in net assets: Operations: Net Investment Income ...... $ 9,691,756 $ 6,301,720 Net gain (loss) on investments .............. 7,009 (10,833) ------------- ------------- Net increase in net assets resulting from operations ............... 9,698,765 6,290,887 ------------- ------------- Dividends to shareholders from net investment income: Bedford shares ($.0297 and $.0195, respectively, per share) ............... (5,717,451) (4,374,300) Bradford shares ($.0297 and $.0195, respectively, per share) ............... (3,266,535) (1,924,607) Cash Preservation shares ($.0281 and $.0174, respectively, per share) . (5,648) (2,703) Janney Montgomery Scott shares ($.0063 per share for 1995) ................ (701,975) -- RBB shares ($.0279 and $.0172, respectively, per share) ............... (147) (90) Sansom Street shares ($.0185 per share for 1994) ...... -- (20) ------------- ------------- Total dividends to shareholders ........... (9,691,756) (6,301,720) ------------- ------------- Net capital share transactions ............... 140,043,103 (10,002,056) ------------- ------------- Total increase (decrease) in net assets ................. 140,050,112 (10,012,889) Net Assets: Beginning of Year .......... 282,703,751 292,716,640 ------------- ------------- End of year ................ $ 422,753,863 $ 282,703,751 ============= =============
See Accompanying Notes to Financial Statements. 16 THE BEDFORD FAMILY THE RBB FUND, INC. GOVERNMENT OBLIGATIONS MONEY MARKET PORTFOLIO STATEMENT OF NET ASSETS AUGUST 31, 1995
Par (000) Value ------------- ------------- AGENCY OBLIGATIONS--48.5% Federal Farm Credit Bank 6.070% 06/03/1996 .......................... $ 10,000 $ 10,016,493 5.600% 07/01/1996 .......................... 7,000 6,994,348 Federal Home Loan Bank Variable Rate Notes (DAGGER) 5.920% 09/01/1995 .......................... 5,000 4,999,601 5.940% 09/01/1995 .......................... 10,000 9,999,628 5.655% 11/02/1995 .......................... 10,000 9,997,057 Federal Home Loan Bank 5.500% 10/06/1995 .......................... 10,000 9,946,528 9.500% 12/26/1995 .......................... 5,000 5,047,065 6.000% 01/08/1996 .......................... 5,000 4,892,500 5.370% 01/16/1996 .......................... 8,875 8,693,632 6.787% 02/15/1996 .......................... 5,000 5,002,375 6.850% 02/28/1996 .......................... 10,000 10,047,468 5.800% 04/29/1996 .......................... 4,000 3,844,689 Federal Home Loan Mortgage Corp. 5.400% 01/05/1996 .......................... 5,080 4,983,988 5.500% 02/08/1996 .......................... 15,000 14,633,333 Federal National Mortgage Association 5.610% 10/10/1995 .......................... 5,000 4,969,612 5.530% 12/01/1995 .......................... 20,000 19,720,428 6.150% 01/02/1996 .......................... 5,000 4,894,938 5.560% 02/15/1996 .......................... 10,000 9,742,078 5.500% 02/28/1996 .......................... 4,000 3,890,000 5.590% 06/21/1996 .......................... 5,000 4,994,899 5.620% 07/02/1996 .......................... 5,000 4,991,419 Federal National Mortgage Association Variable Rate Notes (DAGGER) 5.580% 09/01/1995 .......................... 5,000 5,000,000 5.580% 09/05/1995 .......................... 10,000 10,000,000 Student Loan Marketing Association Variable Rate Notes (DAGGER) 5.650% 09/05/1995 .......................... 5,000 5,002,242 5.680% 09/05/1995 .......................... 15,000 15,000,000 5.690% 09/05/1995 .......................... 9,000 8,998,199 5.700% 09/05/1995 .......................... 5,000 5,000,000 5.710% 09/05/1995 .......................... 5,000 4,998,892 5.720% 09/05/1995 .......................... 3,500 3,501,470 5.750% 09/05/1995 .......................... 15,000 14,991,922 5.875% 09/05/1995 .......................... 3,850 3,855,494 5.900% 09/05/1995 .......................... 5,000 5,016,077 6.080% 07/01/1996 .......................... 5,000 5,000,000 ------------- TOTAL AGENCY OBLIGATIONS (Cost $248,666,375) .................... 248,666,375 -------------
Par (000) Value ------------- ------------- REPURCHASE AGREEMENTS--51.4% Morgan Stanley & Co. 5.750% 09/08/1995 .......................... $ 100,000 $ 100,000,000 (Agreement dated 08/23/95 to be repurchased at $100,255,556, collateralized by $117,065,920 Federal Home Loan Mortgage Corp. ......... due 01/04/25. Market value of collateral is $102,214,625.) Goldman Sachs & Co. 5.850% 09/01/1995 .......................... 70,000 70,000,000 (Agreement dated 08/31/95 to be repurchased at $70,011,375, collateralized by $73,420,524 Federal National Mortgage Corp. .......... due 01/01/34. Market value of collateral is $72,100,000.) PaineWebber Incorporated 5.875% 09/01/1995 .......................... 93,300 93,300,000 (Agreement dated 08/31/95 to be repurchased at $93,315,226, collateralized by $59,243,863 Federal Home Loan Mortgage Corp. ......... 5.00% to 6.50% due 01/01/09 to 12/01/25, $137,402,251. Federal Home Loan Mortgage Corp. Strip due 02/01/23 to 02/01/24.Market value of collateral is $96,101,852.) ------------- TOTAL REPURCHASE AGREEMENTS (Cost $263,300,000) .................... 263,300,000 ------------- TOTAL INVESTMENTS AT VALUE--99.9% (Cost $511,966,375*) ....................... 511,966,375 OTHER ASSETS IN EXCESS OF LIABILITIES--0.1% ....................... 525,981 ------------- NET ASSETS (Applicable to 163,391,651 Bedford shares, 46,506,635 Bradford shares, 302,560,496 Janney Montgomery Scott shares and 800 other shares)--100.0% $512,492,356 ============= NET ASSET VALUE, offering and redemption price per share ($512,492,356 / 512,459,582) $1.00 ===== * Also cost for Federal income tax purposes. (DAGGER) Variable Rate Obligations -- The interest rate is the rate as of August 31, 1995 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.
See Accompanying Notes to Financial Statements. 17 THE BEDFORD FAMILY THE RBB FUND, INC. GOVERNMENT OBLIGATIONS MONEY MARKET PORTFOLIO
STATEMENT OF OPERATIONS FOR THE YEAR ENDED AUGUST 31, 1995 INVESTMENT INCOME Interest ........................ $ 15,488,988 ------------ EXPENSES Investment advisory fees ........ 1,178,485 Distribution fees ............... 1,542,378 Directors' fees ................. 2,517 Custodian fees .................. 57,563 Transfer agent fees ............. 185,270 Legal fees ...................... 13,894 Audit fees ...................... 15,405 Registration fees ............... 74,318 Start up costs .................. 927 Insurance expense ............... 7,762 Printing expense ................ 52,537 Miscellaneous ................... 331 ------------ 3,131,387 Less fees waived ................ (497,494) ------------ TOTAL EXPENSES ............... 2,633,893 ------------ NET INVESTMENT INCOME .............. 12,855,095 ------------ REALIZED GAIN ON INVESTMENTS ....... 41,241 ------------ NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS ................. $ 12,896,336 ============
STATEMENT OF CHANGES IN NET ASSETS FOR THE FOR THE YEAR ENDED YEAR ENDED AUGUST 31, 1995 AUGUST 31, 1994 ------------- ------------- INCREASE (DECREASE) IN NET ASSETS: Operations: Net investment income ..... $ 12,855,095 $ 6,187,200 Net gain on investments ... 41,241 23,663 ------------- ------------- Net increase in net assets resulting from operations .............. 12,896,336 6,210,863 ------------- ------------- Dividends to shareholders from net investment income: Bedford shares ($.0475 and $.0270 respectively, per share) .............. (7,551,189) (5,073,158) Bradford shares ($.0475 and $.0270, respectively, per share) .............. (2,071,772) (1,114,042) Janney Montgomery Scott shares ($.0109 per share for 1995) ............... (3,232,134) -- ------------- ------------- Total dividends to shareholders .......... (12,855,095) (6,187,200) ------------- ------------- Net capital share transactions .............. 306,300,108 (58,137,875) ------------- ------------- Total increase (decrease) in net assets ................ 306,341,349 (58,114,212) NET ASSETS: Beginning of year ......... 206,151,007 264,265,219 ------------- ------------- End of year ............... $ 512,492,356 $ 206,151,007 ============= =============
See Accompanying Notes to Financial Statements. 18 THE BEDFORD FAMILY THE RBB FUND, INC. FINANCIAL HIGHLIGHTS (B) (FOR A SHARE OUTSTANDING THROUGHOUT EACH YEAR)
Money Market Portfolio ------------------------------------------------------------------------------- For the For the For the For the For the Year Ended Year Ended Year Ended Year Ended Year Ended August 31, 1995 August 31, 1994 August 31, 1993 August 31, 1992 August 31, 1991 --------------- --------------- --------------- --------------- --------------- Net asset value, beginning of year............... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 ------------ ------------ ------------ ------------ ------------ Income from investment operations: Net investment income........... 0.0486 0.0278 0.0243 0.0375 0.0629 Net gains on securities (both realized and unrealized)....... -- -- -- 0.0007 -- ------------ ------------ ------------ ------------ ------------ Total from investment operations.................. 0.0486 0.0278 0.0243 0.0382 0.0629 ------------ ------------ ------------ ------------ ------------ Less distributions Dividends (from net investment income)........................ (0.0486) (0.0278) (0.0243) (0.0375) (0.0629) Distributions (from capital gains)......................... -- -- -- (0.0007) -- ------------ ------------ ------------ ------------ ------------ Total distributions.......... (0.0486) (0.0278) (0.0243) (0.0382) (0.0629) ------------ ------------ ------------ ------------ ------------ Net asset value, end of year ..... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 ============ ============ ============ ============ ============ Total Return...................... 4.97% 2.81% 2.46% 3.89% 6.48% Ratios /Supplemental Data Net assets, end of year......... $935,821,424 $710,737,481 $782,153,438 $736,841,928 $747,530,400 Ratios of expenses to average net assets.................. .96%(a) .95%(a) .95%(a) .95%(a) .92%(a) Ratios of net investment income to average net assets ......... 4.86% 2.78% 2.43% 3.75% 6.29%
Municipal Money Market Portfolio ------------------------------------------------------------------------------- For the For the For the For the For the Year Ended Year Ended Year Ended Year Ended Year Ended August 31, 1995 August 31, 1994 August 31, 1993 August 31, 1992 August 31, 1991 --------------- --------------- --------------- --------------- --------------- Net asset value, beginning of year............... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 ------------ ------------ ------------ ------------ ------------ Income from investment operations: Net investment income........... 0.0297 0.0195 0.0195 0.0287 0.0431 Net gains on securities (both realized and unrealized)....... -- -- -- -- -- ------------ ------------ ------------ ------------ ------------ Total from investment operations.................. 0.0297 0.0195 0.0195 0.0287 0.0431 ------------ ------------ ------------ ------------ ------------ Less distributions Dividends (from net investment income)........................ (0.0297) (0.0195) (0.0195) (0.0287) (0.0431) Distributions (from capital gains)......................... -- -- -- -- -- ------------ ------------ ------------ ------------ ------------ Total distributions.......... (0.0297) (0.0195) (0.0195) (0.0287) (0.0431) ------------ ------------ ------------ ------------ ------------ Net asset value, end of year ..... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 ============ ============ ============ ============ ============ Total Return...................... 3.01% 1.97% 1.96% 2.90% 4.40% Ratios /Supplemental Data Net assets, end of year......... $198,424,813 $182,480,069 $215,577,193 $176,949,886 $215,139,746 Ratios of expenses to average net assets.................. .82%(a) .77%(a) .77%(a) .77%(a) .74%(a) Ratios of net investment income to average net assets ......... 2.97% 1.95% 1.95% 2.87% 4.31% (a) Without the waiver of advisory and administration 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 1.17%, 1.16%, 1.19%, 1.20% and 1.17% for the years ended August 31, 1995, 1994, 1993,1992 and 1991, respectively. For the Municipal Money Market Portfolio, the ratios of expenses to average net assets would have been 1.14%, 1.12%, 1.16%, 1.15% and 1.13% for the years ended August 31, 1995, 1994, 1993, 1992 and 1991, respectively. (b) Financial Highlights relate solely to the Bedford Class of shares within each portfolio.
See Accompanying Notes to Financial Statements. 19 THE BEDFORD FAMILY THE RBB FUND, INC. FINANCIAL HIGHLIGHTS (B) (FOR A SHARE OUTSTANDING THROUGHOUT EACH YEAR)
Government Obligations Money Market Portfolio ------------------------------------------------------------------------------- For the For the For the For the For the Year Ended Year Ended Year Ended Year Ended Year Ended August 31, 1995 August 31, 1994 August 31, 1993 August 31, 1992 August 31, 1991 --------------- --------------- --------------- --------------- --------------- Net asset value, beginning of year........ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 ------------ ------------ ------------ ------------ ------------ Income from investment operations: Net investment income.... .0475 .0270 .0231 .0375 .0604 Net gains on securities.. (both realized and unrealized)............. -- -- -- .0009 -- ------------ ------------ ------------ ------------ ------------ Total from investment operations........... .0475 .0270 .0231 .0384 .0604 ------------ ------------ ------------ ------------ ------------ Less distributions Dividends (from net investment income)...... (.0475) (.0270) (.0231) (.0375) (.0604) Distributions (from capital gains).......... -- -- -- (.0009) -- ------------ ------------ ------------ ------------ ------------ Total distributions.... (.0475) (.0270) (.0231) (.0384) (.0604) ------------ ------------ ------------ ------------ ------------ Net asset value, end of year.............. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 ============ ============ ============ ============ ============ Total Return............... 4.86% 2.73% 2.33% 3.91% 6.21% Ratios /Supplemental Data Net assets, end of year.. $163,397,914 $166,417,793 $213,741,440 $225,100,981 $368,898,941 Ratios of expenses to average net assets...... .975%(a) .975%(a) .975%(a) .975%(a) .95%(a) Ratios of net investment income to average net assets.............. 4.75% 2.70% 2.31% 3.75% 6.04% (a) Without the waiver of advisory 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 1.13%, 1.17%, 1.18%, 1.12% and 1.13% for the years ended August 31, 1995, 1994, 1993, 1992 and 1991, respectively. (b) Financial Highlights relate solely to the Bedford Class of shares within the portfolio.
See Accompanying Notes to Financial Statements. 20 THE BEDFORD FAMILY THE RBB FUND, INC. NOTES TO FINANCIAL STATEMENTS AUGUST 31, 1995 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 12.2 billion shares are currently classified into sixty-one classes. Each class represents an interest in one of seventeen investment portfolios of the Fund, fifteen of which are currently in operation. The classes have been grouped into fifteen separate "families", eight of which have begun investment operations: the RBB Family, the BEA Family, the Sansom Street Family, the Bedford Family, the Cash Preservation Family, Janney Montgomery Scott Money Funds, the Warburg Pincus Family and the Bradford Family. The Bedford Family represents interests in four portfolios, three of which are covered in this report. A) SECURITY VALUATION -- Portfolio securities are valued under the amortized cost method, which approximates current market value. Under this method, securities are valued at cost when purchased and thereafter a constant proportionate amortization of any discount or premium is recorded until maturity of the security. Regular review and monitoring of the valuation is performed in an attempt to avoid dilution or other unfair results to shareholders. The Fund seeks to maintain net asset value per share at $1.00 for these portfolios. B) SECURITY TRANSACTIONS AND INVESTMENT INCOME -- Security transactions are accounted for on the trade date. The cost of investments sold is determined by use of the specific identification method for both financial reporting and income tax purposes. Interest income is recorded on the accrual basis. Certain expenses, principally distribution, transfer agency and printing, are class specific expenses and vary by class. Expenses not directly attributable to a specific portfolio or class are allocated based on relative net assets of each portfolio and class, respectively. C) DISTRIBUTIONS TO SHAREHOLDERS -- Dividends from net investment income are declared daily and paid monthly. Any net realized capital gains will be distributed at least annually. Income distributions and capital gain distributions are determined in accordance with tax regulations which may differ from generally accepted accounting principals. D) FEDERAL INCOME TAXES -- No provision is made for Federal taxes as 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. 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. 21 THE BEDFORD FAMILY THE RBB FUND, INC. NOTES TO FINANCIAL STATEMENTS (CONTINUED) AUGUST 31, 1995 NOTE 2. TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES Pursuant to Investment Advisory Agreements, PNC Institutional Management Corporation ("PIMC"), a wholly subsidiary of PNC Asset Management Group, Inc., which is in turn a wholly owned subsidiary of PNC Bank, National Association ("PNC Bank"), serves as investment advisor for the three portfolios described herein. PNC Bank serves as the sub-advisor for the Money Market, the Municipal Money Market and the Government Obligations Money Market Portfolios. For its advisory services, PIMC is entitled to receive the following fees, computed daily and payable monthly based on each of the three portfolio's average daily net assets: Portfolio Annual Rate - ------------------------------------- -------------------------------------------- Money Market and Government .45% of first $250 million of net assets; Obligations Money Market Portfolios .40% of next $250 million of net assets; .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.
PIMC 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 year ended August 31, 1995, advisory fees and waivers for the three investment portfolios were as follows:
Gross Net Advisory Advisory Fee Waiver Fee ---------- ------------ ---------- Money Market Portfolio $4,864,529 $(2,589,832) $2,274,697 Municipal Money Market Portfolio 1,109,073 (1,041,321) 67,752 Government Obligations Money Market Portfolio 1,178,485 (398,363) 780,122
PNC Bank, as sub-advisor, receives a fee directly from PIMC, not the portfolios. In addition, PNC Bank serves as custodian for each of the Fund's portfolios. PFPC Inc. ("PFPC"), an indirect wholly owned subsidiary of PNC Bank Corp., serves as each class's transfer and dividend disbursing agent. 22 THE BEDFORD FAMILY THE RBB FUND, INC. NOTES TO FINANCIAL STATEMENTS (CONTINUED) AUGUST 31, 1995 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 year ended August 31, 1995, 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 $1,329,085 $ -- $1,329,085 Cash Preservation Class 8,313 (7,540) 773 Janney Montgomery Scott Class 175,935 (65,014) 110,921 RBB Class 8,210 (8,010) 200 Sansom Street Class 14,595 -- 14,595 ---------- ---------- ---------- Total Money Market Portfolio $1,536,138 $ (80,564) $1,455,574 ========== ========== ========== Municipal Money Market Portfolio Bedford Class $ 96,491 $ -- $ 96,491 Bradford Class 57,980 -- 57,980 Cash Preservation Class 8,669 (7,896) 773 Janney Montgomery Scott Class 44,239 -- 44,239 RBB Class 8,442 (8,417) 25 ---------- ---------- ---------- Total Municipal Money Market Portfolio $ 215,821 $ (16,313) $ 199,508 ========== ========== ========== Government Obligations Money Market Portfolio Bedford Class $ 54,468 $ -- $ 54,468 Bradford Class 21,155 -- 21,155 Janney Montgomery Scott Class 109,647 (99,130) 10,517 ---------- ---------- ---------- Total Government Obligations Money Market Portfolio $ 185,270 $ (99,130) $ 86,140 ========== ========== ==========
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 assets. PFPC may, at its discretion, voluntarily waive all or any portion of its administration fee for the portfolio. For the year ended August 31, 1995, the administration fees and waivers for the Municipal Money Market Portfolio were as follows:
Gross Net Administration Administration Fee Waiver Fee -------------- ---------- -------------- Municipal Money Market Portfolio $ 328,023 $ (6,233) $ 321,790
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, and has entered into Distribution Contracts with Counsellors Securities Inc. ("Counsellors"), which provide for each class to make monthly payments, based on average net assets, to Counsellors of up to .65% on an annualized basis for the Bedford, Bradford, Cash Preservation, Janney Montgomery Scott and RBB Classes and up to .20% on an annualized basis for the Sansom Street Class. 23 THE BEDFORD FAMILY THE RBB FUND, INC. NOTES TO FINANCIAL STATEMENTS (CONTINUED) AUGUST 31, 1995 NOTE 2. TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES (CONTINUED) For the year ended August 31, 1995, distribution fees for each class were as follows: Distribution Fee ------------ Money Market Portfolio Bedford Class $4,414,365 Cash Preservation Class 931 Janney Montgomery Scott Class 569,268 RBB Class 209 Sansom Street Class 228,060 ---------- Total Money Market Portfolio $5,212,833 ========== Municipal Money Market Portfolio Bedford Class $1,088,864 Bradford Class 599,080 Cash Preservation Class 814 Janney Montgomery Scott Class 148,984 RBB Class 20 ---------- Total Municipal Money Market Portfolio $1,837,762 ========== Government Obligations Money Market Portfolio Bedford Class $ 913,275 Bradford Class 234,193 Janney Montgomery Scott Class 394,910 ---------- Total Government Obligations Money Market Portfolio $1,542,378 ========== 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 year ended August 31, 1995, service organization fees were $391,361 for the Money Market Portfolio and $0 for the Municipal Money Market Portfolio. 24 THE BEDFORD FAMILY THE RBB FUND, INC. NOTES TO FINANCIAL STATEMENTS (CONTINUED) AUGUST 31, 1995 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 Year Ended Year Ended Year Ended Year Ended August 31, 1995 August 31, 1994 August 31, 1995 August 31, 1994 --------------- --------------- --------------- --------------- Value Value Value Value --------------- --------------- --------------- --------------- Shares sold: Bedford Class $ 2,966,911,277 $ 2,789,452,640 $ 1,104,088,188 $ 1,292,822,671 Bradford Class -- -- 474,166,249 448,473,166 Cash Preservation Class 84,527 908,824 175,548 271,085 Janney Montgomery Scott Class 855,058,809 -- 208,067,881 -- RBB Class 31,504 43,426 5,004 1,400 Sansom Street Class 1,864,628,110 1,517,145,765 -- 15,321 Shares issued in reinvestment of dividends: Bedford Class 37,681,204 20,973,730 5,576,408 4,271,511 Bradford Class -- -- 3,126,860 1,855,281 Cash Preservation Class 11,226 26,123 5,478 2,566 Janney Montgomery Scott Class 4,534,944 -- 662,565 -- RBB Class 2,500 1,551 146 90 Sansom Street Class 16,689,941 7,714,640 -- 20 Shares repurchased: Bedford Class (2,779,499,052) (2,881,789,878) (1,093,651,142) (1,330,256,087) Bradford Class -- -- (466,448,018) (427,210,857) Cash Preservation Class (91,268) (1,932,859) (220,601) (229,848) Janney Montgomery Scott Class (415,944,656) -- (95,506,391) -- RBB Class (23,917) (57,526) (5,072) (1,902) Sansom Street Class (1,813,444,951) (1,341,896,149) -- (16,473) --------------- --------------- --------------- --------------- NET INCREASE (DECREASE)$ 736,630,198 $ 110,590,287 $ 140,043,103 $ (10,002,056) =============== =============== =============== =============== Bedford Shares authorized 1,500,000,000 1,500,000,000 500,000,000 500,000,000 =============== =============== =============== ===============
25 THE BEDFORD FAMILY THE RBB FUND, INC. NOTES TO FINANCIAL STATEMENTS (CONTINUED) AUGUST 31, 1995 NOTE 3. CAPITAL SHARES (CONTINUED)
Government Obligations Money Market Portfolio --------------------------------------------- For the For the Year Ended Year Ended August 31, 1995 August 31, 1994 --------------- --------------- Value Value --------------- --------------- Shares sold: Bedford Class $ 461,728,190 $ 490,275,372 Bradford Class 192,414,935 160,520,309 Janney Montgomery Scott Class 533,143,649 -- Shares issued in reinvestment of dividends: Bedford Class 7,147,384 4,963,642 Bradford Class 2,029,050 1,078,122 Janney Montgomery Scott Class 3,065,158 -- Shares repurchased: Bedford Class (471,908,601) (542,581,763) Bradford Class (187,671,346) (172,393,557) Janney Montgomery Scott Class (233,648,311) -- ------------- ------------- Net increase (decrease) $ 306,300,108 $ (58,137,875) ============= ============= Bedford Shares authorized 500,000,000 500,000,000 ============= =============
NOTE 4. NET ASSETS At August 31, 1995, net assets consisted of the following:
Government Municipal Obligations Money Market Money Market Money Market Portfolio Portfolio Portfolio --------------- --------------- --------------- Capital paid-in: Bedford Class $ 935,832,262 $ 198,494,293 $ 163,391,651 Bradford Class -- 110,935,556 46,506,635 Cash Preservation Class 235,665 161,271 -- Janney Montgomery Scott Class 443,649,097 113,224,055 302,560,496 RBB Class 55,401 4,939 -- Sansom Street Class 441,618,989 -- -- Other Classes 800 800 800 Accumulated net realized gain (loss) on investments: Bedford Class (10,838) (69,480) 6,263 Bradford Class -- 546 2,163 Cash Preservation Class (2) 6 -- Janney Montgomery Scott Class (4,498) 1,877 24,348 RBB CLASS -- -- -- Sansom Street Class (5,188) -- -- --------------- --------------- --------------- $ 1,821,371,688 $ 422,753,863 $ 512,492,356 =============== =============== ===============
26 THE BEDFORD FAMILY THE RBB FUND, INC. NOTES TO FINANCIAL STATEMENTS (CONTINUED) AUGUST 31, 1995 NOTE 5. CAPITAL LOSS CARRYOVERS At August 31, 1995, capital loss carryovers were available to offset future realized gains as follows: $20,526 in the Money Market Portfolio of which $2,062 expires in 2002, $18,464 expires in 2003; and $67,051 in the Municipal Money Market Portfolio of which $55,760 expires in 1999, $444 expires in 2000, $1,058 expires in 2001 and $9,789 expires in 2002. NOTE 6. OTHER FINANCIAL HIGHLIGHTS The Fund currently offers four other classes of shares representing interests in the Money Market Portfolio: Cash Preservation, Janney Montgomery Scott, RBB and Sansom Street. The Fund currently offers four other classes of shares representing interests in the Municipal Money Market Portfolio: Bradford, Cash Preservation, Janney Montgomery Scott and RBB. The Fund currently offers two other classes of shares representing an interest in the Government Obligations Money Market Portfolio: Bradford and Janney Montgomery Scott. Each class is marketed to different types of investors. Financial Highlights of the RBB and Cash Preservation Classes are not presented in this report due to their immateriality. Such information is available in the annual reports of each respective family. The financial highlights of certain of the other classes are as follows:
BRADFORD GOVERNMENT OBLIGATIONS MONEY MARKET SHARES For the Period For the For the For the January 10, 1992 Year Year Year (Commencement of Ended Ended Ended Operations) to August 31, 1995 August 31, 1994 August 31, 1993 August 31, 1992 --------------- --------------- --------------- --------------- Net asset value, beginning of period .............. $ 1.00 $ 1.00 $ 1.00 $ 1.00 ------------ ------------ ------------ ----------- Income from investment operations: Net investment income ........................... 0.0475 0.0270 0.0231 0.0208 Net gains on securities (both realized and unrealized)............................... -- -- -- 0.0009 ------------ ------------ ------------ ----------- Total from investment operations .............. 0.0475 0.0270 0.0231 0.0217 ------------ ------------ ------------ ----------- Less distributions Dividends (from net investment income) .......... (0.0475) (0.0270) (0.0231) (0.0208) Distributions (from capital gains) .............. -- -- -- (0.0009) ------------ ------------ ------------ ----------- Total distributions ........................... (0.0475) (0.0270) (0.0231) (0.0217) ------------ ------------ ------------ ----------- Net asset value, end of period .................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 ============ ============ ============ =========== Total Return ...................................... 4.86% 2.73% 2.33% 3.42%(b) Ratios /Supplemental Data Net assets, end of period ....................... $ 46,508,798 $ 39,732,414 $ 50,522,979 $42,476,965 Ratios of expenses to average net assets ........ .975%(a) .975%(a) .975%(a) .975%(a)(b) Ratios of net investment income to average net asset .................................... 4.75% 2.70% 2.31% 3.23%(b) (a) Without the waiver of advisory fees and without the reimbursement of certain operating expenses, the ratios of expenses to average net assets would have been 1.13%, 1.18% and 1.18% for the years ended August 31, 1995, 1994, and 1993, respectively and 1.15% annualized for the period ended August 31, 1992. (b) Annualized.
27 THE BEDFORD FAMILY THE RBB FUND, INC. NOTES TO FINANCIAL STATEMENTS (CONTINUED) AUGUST 31, 1995 NOTE 6. OTHER FINANCIAL HIGHLIGHTS (CONTINUED)
BRADFORD MUNICIPAL MONEY MARKET SHARES For the Period For the For the For the January 10, 1992 Year Year Year (Commencement of Ended Ended Ended Operations) to August 31, 1995 August 31, 1994 August 31, 1993 August 31, 1992 ---------------- ---------------- ---------------- ---------------- Net asset value, beginning of period ... $ 1.00 $ 1.00 $ 1.00 $ 1.00 ---------------- ---------------- ---------------- ---------------- Income from investment operations: Net investment income ................ 0.0297 0.0195 0.0195 0.0154 ---------------- ---------------- ---------------- ---------------- Total from investment operations ... 0.0297 0.0195 0.0195 0.0154 ---------------- ---------------- ---------------- ---------------- Less distributions Dividends (from net investment income) (0.0297) (0.0195) (0.0195) (0.0154) ---------------- ---------------- ---------------- ---------------- Total distributions ................ (0.0297) (0.0195) (0.0195) (0.0154) ---------------- ---------------- ---------------- ---------------- Net asset value, end of period ......... $ 1.00 $ 1.00 $ 1.00 $ 1.00 ================ ================ ================ ================ Total Return ........................... 3.01% 1.97% 1.96% 2.42%(b) Ratios /Supplemental Data Net assets, end of period ............ $ 110,936,102 $ 100,089,172 $ 76,975,393 $ 69,586,281 Ratios of expenses to average net assets ........................ .82%(a) .77%(a) .77%(a) .77%(a)(b) Ratios of net investment income to average net assets ............. 2.97% 1.95% 1.95% 2.40%(b) (a) Without the waiver of advisory and administration fees and without the reimbursement of certain operating expenses, the ratios of expenses to average net assets would have been 1.14%, 1.11% and 1.16% for the years ended August 31, 1995, 1994 and 1993, respectively, and 1.16% annualized for the period ended August 31, 1992. (b) Annualized.
28 THE BEDFORD FAMILY THE RBB FUND, INC. NOTES TO FINANCIAL STATEMENTS (CONTINUED) AUGUST 31, 1995 NOTE 6. OTHER FINANCIAL HIGHLIGHTS (CONTINUED)
THE JANNEY MONTGOMERY SCOTT FAMILY Government Money Market Municipal Money Obligations Money Portfolio Market Portfolio Market Portfolio ---------------- ---------------- ---------------- For the Period For the Period For the Period June 12, 1995 June 12, 1995 June 12, 1995 (Commencement of (Commencement of (Commencement of Operations) to Operations) to Operations) to August 31, 1995 August 31, 1995 August 31, 1995 --------------- --------------- --------------- Net asset value, beginning of period ............. $ 1.00 $ 1.00 $ 1.00 ------------ ------------ ------------ Income from investment operations: Net investment income .......................... 0.0112 0.0063 0.0109 ------------ ------------ ------------ Total from investment operations ............. 0.0112 0.0063 0.0109 ------------ ------------ ------------ Less distributions Dividends (from net investment income) ......... (0.0112) (0.0063) (0.0109) ------------ ------------ ------------ Total distributions .......................... (0.0112) (0.0063) (0.0109) ------------ ------------ ------------ Net asset value, end of period ................... $ 1.00 $ 1.00 $ 1.00 ============ ============ ============ Total Return ..................................... 5.30%(b) 2.87%(b) 5.03%(b) Ratios /Supplemental Data Net assets, end of period ...................... $443,644,599 $113,225,932 $302,584,844 Ratios of expenses to average net assets ....... 1.00%(a)(b) 1.00%(a)(b) 1.00%(a)(b) Ratios of net investment income to average net assets .................................. 5.04%(b) 2.83%(b) 4.91%(b) (a) Without the waiver of advisory, administration and transfer agent fees and without the reimbursement of certain operating expenses, the ratios of expenses to average net assets for the Money Market Portfolio would have been 1.23% annualized for the period ended August 31, 1995. For the Municipal Money Market Portfolio, the ratio of expenses to average net assets would have been 1.30% annualized for the period ended August 31, 1995. For the Government Obligations Money Market Portfolio, the ratio of expenses to average net assets would have been 1.28% annualized for the period ended August 31, 1995. For the New York Municipal Money Market Portfolio, the ratio of expenses to average net assets would have been 1.41% annualized for the period ended August 31, 1995. (b) Annualized.
29 THE BEDFORD FAMILY THE RBB FUND, INC. NOTES TO FINANCIAL STATEMENTS (CONCLUDED) AUGUST 31, 1995 NOTE 6. OTHER FINANCIAL HIGHLIGHTS (CONTINUED)
THE SANSOM STREET FAMILY Money Market Portfolio ------------------------------------------------------------------------------------- For the For the For the For the For the Year Ended Year Ended Year Ended Year Ended Year Ended August 31, 1995 August 31, 1994 August 31, 1993 August 31, 1992 August 31, 1991 --------------- --------------- --------------- --------------- --------------- Net asset value, beginning of year ........ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 ------------- ------------- ------------- ------------- ------------- Income from investment operations: Net investment income .................... 0.0543 0.0334 0.0304 0.0435 0.0684 Net gains on securities (both realized and unrealized) ......................... -- -- -- 0.0007 -- ------------- ------------- ------------- ------------- ------------- Total from investment operations ...... 0.0543 0.0334 0.0304 0.0442 0.0684 ------------- ------------- ------------- ------------- ------------- Less distributions Dividends (from net investment income) ... (0.0543) (0.0334) (0.0304) (0.0435) (0.0684) Distributions (from capital gains) ....... -- -- -- (0.0007) -- ------------- ------------- ------------- ------------- ------------- Total distributions ................... (0.0543) (0.0334) (0.0304) (0.0442) (0.0684) ------------- ------------- ------------- ------------- ------------- Net asset value, end of year ............... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 ============= ============= ============= ============= ============= Total Return ............................... 5.57% 3.39% 3.08% 4.51% 7.06% Ratios /Supplemental Data Net assets, end of year .................. $ 441,613,801 $ 373,745,178 $ 190,794,098 $ 228,078,764 $ 138,417,995 Ratios of expenses to average net assets . .39%(a) .39%(a) .34%(a) .35%(a) .37%(a) Ratios of net investment income to average net assets .............................. 5.43% 3.34% 3.04% 4.35% 6.84% (a) Without the waiver of advisory 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%, .60%, .60%, .61% and .61% for the years ended August 31, 1995, 1994, 1993, 1992 and 1991, respectively.
30 MORGAN KEEGAN ACCESS ACCOUNT ANNUAL REPORT BEDFORD SHARES AUGUST 31, 1995 MONEY MARKET PORTFOLIO MUNICIPAL MONEY MARKET PORTFOLIO GOVERNMENT OBLIGATIONS MONEY MARKET PORTFOLIO Morgan Keegan & Company, Inc./Morgan Keegan Tower/Fifty Front Street/Memphis, Tennessee 38103 -----END PRIVACY-ENHANCED MESSAGE-----