-----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, ObLwczxihpayJDTZ9Qj0FS9GQW07Q2frHofNKXltreXXkrpCRk6Vw2amtcP1kurR TVT5lR9cPOfykzFvFTPJqQ== 0000935069-97-000061.txt : 19970507 0000935069-97-000061.hdr.sgml : 19970507 ACCESSION NUMBER: 0000935069-97-000061 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19970228 FILED AS OF DATE: 19970506 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: 97596286 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 CASH PRESERVATION SEMI ANNUAL REPORT CASH PRESERVATION PORTFOLIOS [GRAPHIC OMITTED] MONEY MARKET PORTFOLIO AND MUNICIPAL MONEY MARKET PORTFOLIO Semi-Annual Report February 28, 1997 CASH PRESERVATION FAMILY THE RBB FUND, INC. SEMI-ANNUAL INVESTMENT ADVISER'S REPORT Economic activity continued its sawtooth pattern in the second half of 1996 by dipping sharply in the third quarter but recovering strongly in the last three months. Fourth quarter GDP was initially reported at 4.7%, led by gains in industrial production, capacity utilization and housing. The pace of new job creation also continued strong and market sentiment began to focus on the possibility that wage pressures might raise inflation. For the year, both the consumer and producer price indices showed gains of about 3%, however, the core rates, excluding the more volatile food and energy components were less troubling. The Federal Reserve maintained a close watch over the markets and was often thought to be on the verge of tightening monetary policy. This increased the volatility of short-term rates during the period, but no change in monetary policy was effected. The Fed's strongest impact on the markets was in early December when the chairman spoke of the "irrational exuberance" that existed and warned investors of sudden changes in fortune. The markets weakened for a short while, but by the middle of February, the Dow Jones Industrial Average, for example, had another added 600 points to its upward climb. Short-term taxable interest rates continued to trade off of the 5.25% federal funds rate, but near-term fluctuations were volatile and the yield curve took on varying degrees of positive slope depending on the perceived timing of a Fed tightening. As also usually happens, year-end pressures pushed yields on one and two-month obligations to temporary highs, as issuers tried to induce investors to put money into early 1997. This increase in rates provided opportunity for the funds to enhance portfolio yields by extending that portion of their cash that was not needed to provide year-end liquidity. The effect of these actions late in the year was a gradual lengthening in the funds' average weighted maturities to a 40-day target for the government portfolio and a 55-day target for the money market portfolio. Yields in the tax-exempt market were a function of supply and demand during the year. With Fed policy on hold, most municipal funds were defensive, preferring shorter maturities in anticipation of higher rates in the future. Short-term tax-free yields did rise in the third quarter as new issuance from states and local governments caused inventory to swell. After-tax yields rose to attractive levels and tax-free funds tended to extend their maturities by buying beyond the first two months of the year when short-term yields are typically low. New York City was a large participant in the second half of 1996, issuing $800 million in tax anticipation notes in August and $1.6 billion revenue anticipation notes in October. Overall, tax-exempt money market funds experienced record growth during the last year, closing February at about $147 billion, as reported in IBC'S MONEY FUND REPORT, versus $135 billion a year ago. Looking ahead, the course of monetary policy will be closely watched and hotly debated. Chairman Greenspan has already warned the markets about a "preemptive strike" on interest rates to prevent a rekindling of inflation. The economy appears to be expanding at a 2.5-3.0% pace and inflation continues to hover around 3.0%. In this environment, short-term rates could well remain at current levels for some time, however, there is a clear bias, on the part of the Fed, to tighten monetary policy. PNC Institutional Management Corporation (Please dial toll-free 800-430-9618 for questions regarding your account or contact your broker.) CASH PRESERVATION FAMILY THE RBB FUND, INC. MONEY MARKET PORTFOLIO STATEMENT OF NET ASSETS FEBRUARY 28, 1997 (UNAUDITED) PAR (000) VALUE -------- -------------- AGENCY OBLIGATIONS--3.9% Federal Home Loan Bank Discount Notes 5.300% 03/03/97 ............. $ 75,000 $ 74,977,917 -------------- Student Loan Marketing Association(DAGGER) 5.330% 03/04/97 ............. 10,000 10,000,000 5.340% 03/04/97 ............. 10,000 10,000,000 -------------- 20,000,000 -------------- TOTAL AGENCY OBLIGATIONS (Cost $94,977,917) ...... 94,977,917 -------------- CERTIFICATES OF DEPOSIT--34.2% BANK NOTES--12.2% Bankers Trust Co. 5.530% 08/01/97 ............. 50,000 50,002,068 Chase Manhattan Bank-Delaware 5.550% 07/15/97 ............. 50,000 50,000,000 5.530% 07/28/97 ............. 50,000 50,000,000 First National Bank of Boston 5.500% 03/17/97 ............. 25,000 25,000,000 5.600% 04/01/97 ............. 25,000 25,000,000 5.460% 08/06/97 ............. 50,000 50,000,000 Mellon Bank N.A. 6.030% 09/23/97 ............. 25,000 25,017,286 Wilmington Trust Co. 5.400% 03/24/97 ............. 25,000 25,000,000 -------------- 300,019,354 -------------- YANKEE DOLLAR CERTIFICATES OF DEPOSIT--22.0% Bank of Tokyo-Mitsubishi 5.580% 04/30/97 ............. 50,000 50,000,000 5.540% 06/11/97 ............. 20,000 20,001,804 Banque Nationale de Paris 5.370% 05/14/97 ............. 50,000 50,003,657 Industrial Bank of Japan 5.500% 04/16/97 ............. 50,000 50,000,000 Royal Bank of Canada 5.320% 03/03/97(DAGGER) ..... 25,000 24,980,486 5.510% 04/30/97 ............. 74,000 74,008,032 Sanwa Bank Ltd Japan 5.450% 03/06/97 ............. 50,000 50,000,138 PAR (000) VALUE -------- -------------- YANKEE DOLLAR CERTIFICATES OF DEPOSIT--(CONTINUED) Societe Generale 5.600% 04/07/97 ............. $ 25,000 $ 25,000,000 5.780% 08/20/97 ............. 21,000 21,006,543 5.600% 09/19/97 ............. 50,000 50,000,000 5.770% 01/09/98 ............. 25,000 24,991,763 Sumitomo Bank 5.500% 04/14/97 ............. 25,000 25,000,000 Svenska Handelsbanken Inc. 5.350% 05/27/97 ............. 25,000 25,000,000 5.360% 05/27/97 ............. 25,000 24,999,404 Swedbank 5.630% 03/25/97 ............. 25,000 25,000,162 -------------- 539,991,989 -------------- TOTAL CERTIFICATES OF DEPOSIT (Cost $840,011,343) ..... 840,011,343 -------------- COMMERCIAL PAPER--38.5% ASSET BACKED SECURITIES--9.6% Asset Securitization Co-Op Corp. 5.310% 03/11/97 ............. 50,000 49,926,250 5.305% 03/12/97 ............. 50,000 49,918,951 Corporate Receivables Corp. 5.300% 04/07/97 ............. 25,000 24,863,819 Cxc, Inc. 5.350% 03/20/97 ............. 40,000 39,887,056 Sigma Finance, Inc. 5.410% 03/03/97 ............. 50,870 50,854,711 5.370% 04/04/97 ............. 20,000 19,898,567 -------------- 235,349,354 -------------- BANKS--3.6% ABN-AMRO N.A. Finance Inc. 5.275% 06/09/97 ............. 25,000 24,633,681 Morgan (J.P.) & Co. 5.360% 07/17/97 ............. 25,000 24,486,333 Swedbank Inc. 5.400% 07/07/97 ............. 40,000 39,232,000 -------------- 88,352,014 -------------- FINANCE LESSORS--2.0% General Electric Capital Corp. 5.340% 04/28/97 ............. 50,000 49,569,833 -------------- See Accompanying Notes to Financial Statements. 2 CASH PRESERVATION FAMILY THE RBB FUND, INC. MONEY MARKET PORTFOLIO STATEMENT OF NET ASSETS (CONTINUED) FEBRUARY 28,1997 (UNAUDITED) PAR (000) VALUE -------- ------------- FINANCE SERVICES--6.3% Countrywide Funding Corp. 5.350% 03/20/97 ............. $ 50,000 $ 49,858,819 Dakota Certificates Program 5.300% 05/12/97 ............. 30,000 29,682,000 5.330% 05/15/97 ............. 26,500 26,205,740 5.300% 05/20/97 ............. 50,000 49,411,111 ------------- 155,157,670 ------------- GLASS, GLASSWARE, PRESSED OR BLOWN--2.0% Newell Co. 5.330% 03/06/97 ............. 50,000 49,962,986 ------------- HOUSEHOLD AUDIO & VIDEO EQUIPMENT--1.1% Toshiba International Finance (UK) PLC 5.360% 03/24/97 ............. 26,700 26,608,567 ------------- PERSONAL CREDIT INSTITUTIONS--3.0% General Motors Acceptance Corp. 5.500% 03/03/97 ............. 35,000 34,989,306 5.390% 06/30/97 ............. 40,000 39,275,344 ------------- 74,264,650 ------------- SECURITY BROKERS & DEALERS--7.1% Lehman Brothers Holdings Inc. 5.420% 03/17/97 ............. 50,000 49,879,556 Merrill Lynch & Co. 5.300% 08/14/97 ............. 50,000 48,778,056 Morgan Stanley Group, Inc. 5.450% 03/24/97 ............. 25,000 24,912,951 Nomura Holding America, Inc. 5.350% 03/10/97 ............. 25,000 24,966,562 5.370% 05/14/97 ............. 25,000 24,724,042 ------------- 173,261,167 ------------- SERVICES - AUTO RENT & LEASE--2.0% PHH Corp. 5.280% 04/21/97 ............. 50,000 49,626,000 ------------- PAR (000) VALUE -------- ------------- TELEPHONE COMMUNICATIONS--1.8% MCI Communications Corp. 5.320% 04/30/97 ............. $ 20,000 $ 19,822,667 5.470% 04/30/97 ............. 25,000 24,772,083 ------------- 44,594,750 ------------- TOTAL COMMERCIAL PAPER (Cost $946,746,991) ..... 946,746,991 ------------- CORPORATE OBLIGATIONS--8.3% FINANCE LESSORS--1.4% IBM Credit Corp. 5.740% 08/14/97 ............. 15,000 15,012,217 5.700% 10/27/97 ............. 20,000 19,996,338 ------------- 35,008,555 ------------- PERSONAL CREDIT INSTITUTIONS--1.2% General Motors Acceptance Corp. 7.900% 03/12/97 ............. 14,750 14,761,470 5.625% 10/30/97 ............. 15,000 14,994,092 ------------- 29,755,562 ------------- SECURITY BROKERS & DEALERS--5.7% Bear Stearns Companies, Inc. 5.290% 03/11/97 ............. 20,000 20,000,000 5.405% 03/24/97(DAGGER) ..... 50,000 50,000,000 5.860% 01/20/98 ............. 20,000 20,000,000 Lehman Brothers Holdings, Inc.(DAGGER) 5.600% 03/06/97 ............. 50,000 50,000,000 ------------- 140,000,000 ------------- TOTAL CORPORATE OBLIGATIONS (Cost $204,764,117) ..... 204,764,117 ------------- MUNICIPAL BONDS--5.3% CALIFORNIA--0.5% Adventist Health Systems West Series 1988(DAGGER) 5.500% 03/05/97 ............. 12,425 12,425,000 ------------- FLORIDA--0.1% Coral Springs, Florida Industrial Development Revenue(DOUBLE DAGGER) 5.400% 03/05/97 ............. 2,900 2,900,000 ------------- See Accompanying Notes to Financial Statements. 3 CASH PRESERVATION FAMILY THE RBB FUND, INC. MONEY MARKET PORTFOLIO STATEMENT OF NET ASSETS (CONTINUED) FEBRUARY 28, 1997 (UNAUDITED) PAR (000) VALUE -------- ------------- GEORGIA--0.4% De Kalb County Georgia Development Authority Series 1995 B (Emory University Project)(DOUBLE DAGGER) 5.400% 02/28/97 ............. $ 9,840 $ 9,840,000 ------------- ILLINOIS--0.7% Barton Healthcare Taxable Revenue Bonds Series 1995(DAGGER) 5.450% 03/05/97 ............. 12,155 12,155,000 Baylis Group Partnership Weekly Demand Taxable Bond Series 1992(DOUBLE DAGGER) 5.600% 03/05/97 ............. 600 600,000 Illinois Health Facilities Authority Convertible/ VRDN RB (The Streeterville Corp. Project) Series 1993-B(DOUBLE DAGGER) 5.450% 03/05/97 ............. 4,400 4,400,000 ------------- 17,155,000 ------------- INDIANA--0.3% Bremen, Inc. Taxable Adjustable Rate Note Series 1996 B (Cleveland) 5.540% 03/05/97 ............. 6,000 6,000,000 ------------- KENTUCKY--0.2% Boone County Taxable IDR Refunding Bonds (Square D Company Project) Series 1994-B VRDN(DAGGER) 5.450% 03/05/97 ............. 4,200 4,200,000 ------------- MINNESOTA--0.2% Fairview Hospital And Healthcare Services Taxable ADJ Convertible Extendable Securities Series 1994 (MBIA-INS.) VRDN(DAGGER) 5.500% 03/06/97 ............. 4,900 4,900,000 ------------- MISSISSIPPI--1.3% Hinds County, Mississippi IDRB VRDN(DAGGER) 5.400% 03/05/97 ............. 3,315 3,315,000 PAR (000) VALUE -------- ------------- MISSISSIPPI--(CONTINUED) Mississippi Business Finance Corp. IDR (Dana Lighting Project) Series 1995, Orlando 5.400% 03/07/97 ............. $ 6,700 $ 6,700,000 Mississippi Business Finance Corp. Taxable IDR Series 1994 (Bryan Foods, Inc. Project) VRDN(DAGGER) 5.450% 03/05/97 ............. 14,000 14,000,000 Mississippi Business Finance Corp. Taxable IDR Series 1995 5.400% 03/07/97 ............. 7,800 7,800,000 ------------- 31,815,000 ------------- NEW YORK--0.5% Health Insurance Plan of Greater NY adj/Convertible Extendable Securities Series 1990 VRDN(DAGGER) 5.400% 03/05/97 ............. 5,500 5,500,000 Health Insurance Plan of Greater NY adj/Convertible Extendable Securities VRDN(DAGGER) 5.400% 03/05/97 ............. 6,800 6,800,000 ------------- 12,300,000 ------------- NORTH CAROLINA--0.5% City of Asheville North Carolina Tax Corp. 5.350% 03/05/97 ............. 12,700 12,700,000 Community Health Systems, Inc. Taxable First Union National Bank of North Carolina Series 1991-A(DAGGER) 5.650% 03/05/97 ............. 400 400,000 ------------- 13,100,000 ------------- TEXAS--0.6% South Central Texas Industrial Development Corp. Taxable IDR (Rohr Industries Project) Series 1990 VRDN(DAGGER) 5.450% 03/05/97 ............. 14,800 14,800,000 ------------- TOTAL MUNICIPAL BONDS (Cost $129,435,000) ..... 129,435,000 ------------- See Accompanying Notes to Financial Statements. 4 CASH PRESERVATION FAMILY THE RBB FUND, INC. MONEY MARKET PORTFOLIO STATEMENT OF NET ASSETS (CONCLUDED) FEBRUARY 28, 1997 (UNAUDITED) PAR (000) VALUE -------- -------------- TIME DEPOSITS--5.4% Bank of Tokyo-Mitsubishi 5.313% 03/07/97 ............. $ 50,000 $ 50,000,000 First Union National Bank of NC 5.438% 03/03/97 ............. 81,900 81,900,000 -------------- TOTAL TIME DEPOSITS (Cost $131,900,000) ..... 131,900,000 -------------- REPURCHASE AGREEMENTS--4.1% J. P. Morgan Securities (Agreement dated 02/28/97 to be repurchased at 100,044,583, collateralized by $78,387,000 U.S. Treasury Bond 10.375% due 11/15/12. Market value of collateral is $102,001,084.) 5.350% 03/03/97 ............. 100,000 100,000,000 -------------- TOTAL REPURCHASE AGREEMENTS (Cost $100,000,000) ..... 100,000,000 -------------- TOTAL INVESTMENTS AT VALUE--99.7% (Cost $2,447,835,368*) ...... 2,447,835,368 OTHER ASSETS IN EXCESS OF LIABILITIES--0.3% ........ 7,752,170 VALUE -------------- NET ASSETS (Applicable to 1,250,395,889 Bedford shares, 276,583 Cash Preservation shares, 662,915,523 Janney Montgomery Scott shares, 542,045,165 Sansom Street shares and 800 other shares)-- 100.0% ...... $2,455,587,538 ============== NET ASSET VALUE, offering and redemption price per share ($2,455,587,538 (DIVIDE) 2,455,633,960) .............. $1.00 ===== * Also cost for Federal income tax purposes. (DAGGER) Variable Rate Obligations -- The interest rate shown is the rate as of February 28, 1997 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. (DOUBLE DAGGER) Put Bonds -- Maturity date is the put date. INVESTMENT ABBREVIATIONS VRDN .............................................. Variable Rate Demand Note LOC ........................................................... Letter of Credit IDR ............................................. Industrial Development Revenue See Accompanying Notes to Financial Statements. 5 CASH PRESERVATION FAMILY THE RBB FUND, INC. MONEY MARKET PORTFOLIO STATEMENT OF OPERATIONS FOR THE SIX MONTHS ENDED FEBRUARY 28, 1997 (UNAUDITED) INVESTMENT INCOME Interest ................................ $63,652,960 ----------- EXPENSES Investment advisory fees ................ 4,223,251 Distribution fees ....................... 5,122,193 Service organization fees ............... 243,692 Directors' fees ......................... 25,579 Custodian fees .......................... 187,903 Transfer agent fees ..................... 1,705,771 Legal fees .............................. 52,110 Audit fees .............................. 28,583 Registration fees ....................... 274,999 Insurance expense ....................... 23,132 Printing fees ........................... 191,494 Miscellaneous ........................... -- ----------- 12,078,707 Less fees waived ........................ (1,835,454) Less expense reimbursement by advisor ... (235,953) ----------- Total expenses ....................... 10,007,300 ----------- Net investment income ...................... 53,645,660 ----------- Realized loss on investments ............... (12,909) ----------- Net increase in net assets resulting from operations ......................... $53,632,751 =========== STATEMENT OF CHANGES IN NET ASSETS FOR THE FOR THE SIX MONTHS ENDED YEAR ENDED FEBRUARY 28, 1997 AUGUST 31, 1996 ----------------- --------------- (UNAUDITED) Increase (decrease) in net assets: Operations: Net investment income .....$ 53,645,660 $ 100,027,983 Net loss on investments ... (12,909) (12,987) -------------- -------------- Net increase in net assets resulting from operations .............. 53,632,751 100,014,996 -------------- -------------- Dividends to shareholders from net investment income: Bedford shares ($.0226 and $.0469, respectively, per share) .............. (26,644,363) (49,874,649) Cash Preservation shares ($.0229 and $.0471, respectively, per share) .................. (4,493) (10,092) Janney Montgomery Scott shares ($.0224 and $.0465, respectively, per share) .............. (13,747,392) (24,434,566) RBB shares ($.0218 and $.0465, respectively, per share) .............. (1,286) (2,630) Sansom Street shares ($.0250 and $.0518, respectively, per share) .............. (13,248,126) (25,706,046) -------------- -------------- Total dividends to shareholders .......... (53,645,660) (100,027,983) -------------- -------------- Net capital share transactions .............. 259,777,009 374,464,737 -------------- -------------- Total increase in net assets .................... 259,764,100 374,451,750 Net Assets: Beginning of period ....... 2,195,823,438 1,821,371,688 -------------- -------------- End of period .............$2,455,587,538 $2,195,823,438 ============== ============== See Accompanying Notes to Financial Statements. 6 CASH PRESERVATION FAMILY THE RBB FUND, INC. MUNICIPAL MONEY MARKET PORTFOLIO STATEMENT OF NET ASSETS FEBRUARY 28, 1997 (UNAUDITED) PAR (000) VALUE -------- ------------- MUNICIPAL BONDS--99.6% ALABAMA--2.4% Alabama Housing Finance Authority Multifamily Housing Refunding RB (Heatherbrooke Project) / DN [A-1+](DAGGER) 3.350% 03/07/97 ............... $ 9,900 $ 9,900,000 Livingston IDA USA Project DN / [A-1+, VMIG-1](DAGGER) 3.750% 03/07/97 ............... 1,000 1,000,000 ------------ 10,900,000 ------------ ALASKA--1.4% Alaska Industrial Development & Export Authority RB Series 1984-5 DN [A-1](DAGGER) 3.400% 03/07/97 ............... 2,045 2,045,000 Valdez Marine Terminal RB TECP (ARCO Transportation Alaska, Inc. Project) [A-1, VMIG-1] 3.400% 03/06/97 ............... 4,300 4,300,000 ------------ 6,345,000 ------------ ARIZONA--1.7% Flagstaff IDA DN / [A-1](DAGGER) 3.400% 03/07/97 ............... 7,755 7,755,000 ------------ ARKANSAS--0.4% Arkansas Development Authority Health Care Facility (Sisters of Mercy) DN / [A-1+, VMIG-1](DAGGER) 3.250% 03/07/97 ............... 1,700 1,700,000 ------------ CALIFORNIA--7.0% California PCR DN / [A-1+](DAGGER) 3.150% 03/30/97 ............... 800 800,000 Los Angeles County Certificates of Participation (Los Angeles County Museum of Art Project) [A-1+, VMIG-1] 3.250% 03/07/97 ............... 1,000 1,000,000 Los Angeles County Series 1996 A TRAN [SP-1+, MIG] 4.500% 06/30/97 ............... 10,315 10,337,665 Oakland DN(DAGGER) 3.650% 03/07/97 ............... 8,000 8,000,000 PAR (000) VALUE -------- ------------- CALIFORNIA--(CONTINUED) San Bernardino County TRAN [SP-1+, MIG-1] 4.500% 06/30/97 ............... $ 5,000 $ 5,009,972 State of California 1996-97 RAN [SP-1+, MIG] 4.500% 06/30/97 ............... 7,000 7,011,827 ------------ 32,159,464 ------------ COLORADO--2.4% Colorado Health Facilities Authority Hospital RB MB (Bounder Community Hospital Projects) Series 1989 C [A-1+, VMIG-1](DOUBLE DAGGER) 3.300% 03/07/97 ............... 3,400 3,400,000 Colorado State General Fund Revenue Series 1996 A TRAN [SP-1+, MIG1] 4.500% 06/27/97 ............... 5,000 5,010,112 Moffat County Pollution Control RB DN [A-1+, P-1](DAGGER) 3.300% 03/07/97 ............... 2,400 2,400,000 ------------ 10,810,112 ------------ CONNECTICUT--0.7% Connecticut State of Special Assessment Unemployment Compensation Advance Fund Revenue (Connecticut Unemployment Project) Series 1993 C MB (FGIC Insurance) [A-1+, VMIG-1](DOUBLE DAGGER) 3.900% 07/01/97 ............... 3,000 3,000,000 ------------ DELAWARE--0.7% The Delaware Economic Development Authority Gas Facilities (Delmarva Power & Light Project) Series 1993 C (Delmarva Power & Light Corporate Obligation) RB DN [VMIG-1](DAGGER) 3.400% 03/07/97 ............... 3,000 3,000,000 ------------ DISTRICT OF COLUMBIA--0.3% District of Columbia [A-1+, VMIG-1](DOUBLE DAGGER) 3.550% 03/01/97 ............... 1,600 1,600,000 ------------ See Accompanying Notes to Financial Statements. 7 CASH PRESERVATION FAMILY THE RBB FUND, INC. MUNICIPAL MONEY MARKET PORTFOLIO STATEMENT OF NET ASSETS (CONTINUED) FEBRUARY 28, 1997 (UNAUDITED) PAR (000) VALUE -------- ------------- FLORIDA--1.6% Dade County Multifamily Housing Refunding RB (Star Creek Apartments-3) DN [A-1, A-](DAGGER) 3.350% 03/07/97 ............... $ 1,150 $ 1,150,000 Miami Health Facilities Authority (Miami Jewish Home For The Aged Inc Project) / [A-1+, VMIG-1](DOUBLE DAGGER) 3.350% 03/07/97 ............... 6,000 6,000,000 ------------ 7,150,000 ------------ GEORGIA--4.3% Atlanta Urban Residential Finance Authority RB DN (Residential Construction - Summerhill Project) [A-1](DAGGER) 3.350% 03/07/97 ............... 2,200 2,200,000 Brunswick and Glynn Development Authority Sewage Facility RB DN (Georgia-Pacific Corp. Project) Series 1996 (Aa2)(DAGGER) 3.450% 03/07/97 ............... 5,000 5,000,000 Carrollton Payroll Development Authority Certificates RAN (Aa3) 3.450% 03/07/97 ............... 6,000 6,000,000 Forsyth County IDA RB (American Boa, Inc. Project) DN (Aaa)(DAGGER) 3.350% 03/07/97 ............... 3,000 3,000,000 Fulton County IDR DN (Charles J. Mackarich Project) (Aa2)(DAGGER) 3.450% 03/07/97 ............... 3,500 3,500,000 ------------ 19,700,000 ------------ ILLINOIS--11.9% Chicago G.O. Tender Notes Series 1992B [A-1+, VMIG-1] DN(DAGGER) 3.300% 03/07/97 ............... 4,800 4,800,000 Chicago O'Hare Airport System RB [A-1+, VMIG-1] 3.350% 03/07/97 ............... 3,400 3,400,000 Health Facility Authority DN (Central Health Care and Northwest Community Hospital) Series C DN [VMIG-1](DAGGER) 3.350% 03/07/97 ............... 1,545 1,545,000 PAR (000) VALUE -------- ------------- ILLINOIS--(CONTINUED) Illinois Development Finance Authority DN [A-1+](DAGGER) 3.350% 03/07/97 ............... $ 8,000 $ 8,000,000 Illinois Development Finance Authority (CHS Acquisition Corp. Project) DN [A-1+](DAGGER) 3.500% 03/07/97 ............... 5,035 5,035,000 Illinois Development Financing Authority PCR (Illinois Power Co. Project) Series 1987 D DN [A-1](DAGGER) 3.550% 03/07/97 ............... 900 900,000 Illinois Education Facility Authority (Museum of Science and Industry) DN / (Northern Trust) (FGIC) [VMIG-1, Aaa](DAGGER) 3.250% 03/07/97 ............... 3,400 3,400,000 Illinois Health Facilities Authority (Revolving Fund Pooled Financing Program Project) Series 1985 C DN [A-1, VMIG-1](DAGGER) 3.250% 03/07/97 ............... 12,000 12,000,000 Illinois Health Facility Authority (Carle Foundation Project) DN [VMIG-1](DAGGER) 3.350% 03/07/97 ............... 2,600 2,600,000 Illinois Health Facility Authority RB (Evanston Hospital Corp.) Series A DN [A-1+, VMIG-1](DAGGER) 3.850% 10/15/97 ............... 3,000 3,000,000 Illinois Housing Development Finance Authority RB (Homeownership Mortgage Bonds) [A-1+, VMIG-1](DOUBLE DAGGER) 3.700% 12/18/97 ............... 4,000 4,000,000 O'Hare International Airport Special Facility RB DN [A-1+, VMIG-1](DAGGER) 3.450% 03/07/97 ............... 5,700 5,700,000 ------------ 54,380,000 ------------ INDIANA--11.5% Bremen IDA RB Series 1996 A (Universal Bearings, Inc. Project Private Placement) DN(DAGGER) 3.450% 03/07/97 ............... 5,000 5,000,000 See Accompanying Notes to Financial Statements. 8 CASH PRESERVATION FAMILY THE RBB FUND, INC. MUNICIPAL MONEY MARKET PORTFOLIO STATEMENT OF NET ASSETS (CONTINUED) FEBRUARY 28, 1997 (UNAUDITED) PAR (000) VALUE -------- ------------- INDIANA--(CONTINUED) Hamilton County Hospital Authority RB (Daughters of Charity) Series 1983 DN [A-1+, VMIG-1](DAGGER) 3.350% 03/07/97 ............... $ 7,600 $ 7,600,000 Indiana Development Finance Authority IDA RB DN (Enterprise Center I Project) [A-1+](DAGGER) 3.500% 03/07/97 ............... 2,900 2,900,000 Indiana Development Finance Authority IDA RB DN (Enterprise Center II, Project) [A-1+](DAGGER) 3.500% 03/07/97 ............... 5,000 5,000,000 Indiana Development Finance Authority IDA RB DN (Enterprise Center III Project) [A-1+](DAGGER) 3.500% 03/07/97 ............... 4,500 4,500,000 Indiana Development Finance Authority IDA RB DN (Enterprise Center IV Project) [A-1+](DAGGER) 3.500% 03/07/97 ............... 2,600 2,600,000 Indiana Development Finance Authority Solid Waste Disposal RB Series 1990 A, (Pure Air on the Lake Project) [A-1+, P-1](DOUBLE DAGGER) 3.550% 06/27/97 ............... 10,000 10,000,000 La Porte County Economic Development RB DN (Pedcor Investments - Woodland Crossing) [VMIG-1, Aaa] TECP 3.450% 03/07/97 ............... 2,000 2,000,000 Orleans Economic Development RB for (Almana Limited Liability Co. Project) Series 1995 DN(DAGGER) 3.500% 03/07/97 ............... 5,400 5,400,000 Portage Economic Development RB DN (Breckenridge Apartments Project) [A-1, A](DAGGER) 3.400% 03/07/97 ............... 4,650 4,650,000 Tippecanoe County Economic Development RB DN Series 1991 (Consolidated Industries Corp. Project) [VMIG1, A1](DAGGER) 3.450% 03/07/97 ............... 3,000 3,000,000 ------------ 52,650,000 ------------ PAR (000) VALUE -------- ------------- IOWA--2.7% Iowa Finance Authority IDA RB DN (Sauer-Sundstrand Co. Project) [P-1](DAGGER) 3.400% 03/07/97 ............... $ 4,000 $ 4,000,000 Iowa Finance Authority IDA RB DN (Dixie Bedding Co. Project) Series 1995 [VMIG1, Aa2](DAGGER) 3.450% 03/07/97 ............... 3,000 3,000,000 Louisa County PCR (Iowa-Illinois Gas and Electric Co. Project) Series 1986 A DN [A-1+, VMIG-1](DAGGER) 3.350% 03/07/97 ............... 5,600 5,600,000 ------------ 12,600,000 ------------ KANSAS--1.6% Lawrence County Project IDA RB Series A RAM Co. Project [A-1+, VMIG-1](DOUBLE DAGGER) 3.450% 03/06/97 ............... 2,125 2,125,000 Shawnee IDA RB (Thrall Enterprises, Inc. Project) DN [A-1+](DAGGER) 3.500% 03/07/97 ............... 5,400 5,400,000 ------------ 7,525,000 ------------ KENTUCKY--4.6% Hopkinsville IDA RB Douglas Autotech Corp. Project Series 1995 DN [A-1, P-1](DAGGER) 3.750% 03/07/97 ............... 7,700 7,700,000 Hopkinsville RB (American Precision Machinery) Series 1990 DN [P-1, Aa2](DAGGER) 3.550% 03/07/97 ............... 3,600 3,600,000 Maysville Solid Waste Disposal Facilities RB MB [A-1, P-1](DOUBLE DAGGER) 3.600% 04/15/97 ............... 10,000 10,000,000 ------------ 21,300,000 ------------ LOUISIANA--1.4% East Baton Rouge (Parish Pacific Corp. Project) DN [A-1](DAGGER) 3.650% 03/07/97 ............... 6,500 6,500,000 ------------ See Accompanying Notes to Financial Statements. 9 CASH PRESERVATION FAMILY THE RBB FUND, INC. MUNICIPAL MONEY MARKET PORTFOLIO STATEMENT OF NET ASSETS (CONTINUED) FEBRUARY 28, 1997 (UNAUDITED) PAR (000) VALUE -------- ------------- MARYLAND--1.7% Howard County Bluffs at Clary's Forest Apartment Facility Series 1995 DN [A-1](DAGGER) 3.450% 03/07/97 ............... $ 5,735 $ 5,735,000 Maryland Industrial Development Financing Authority Economic Development Revenue Biological Inc. [A-1] 3.600% 03/07/97 ............... 2,000 2,000,000 ------------ 7,735,000 ------------ MICHIGAN--1.4% Detroit Water Supply System DN [A-1+, VMIG-1](DAGGER) 3.300% 03/07/97 ............... 2,000 2,000,000 Michigan State Strategic Fund Limited Obligation RB DN [A-1](DAGGER) 3.450% 03/07/97 ............... 1,500 1,500,000 Northville IDA (Thrifty Northville Project) Series 1984 DN [P-1](DAGGER) 3.425% 03/07/97 ............... 1,000 1,000,000 Wayne Charter County Michigan Airport RB Series B [A-1+, VMIG-1] 3.400% 03/07/97 ............... 2,000 2,000,000 ------------ 6,500,000 ------------ MISSOURI--5.8% City of Berkeley IDA RB Exempt Facility DN (St. Louis Air Cargo Services, Inc. Project) [A-1](DAGGER) 3.600% 03/07/97 ............... 5,300 5,300,000 City of Kansas IDA RB (Mid-America Health Services, Inc. Project) Series 1984 DN [A-1](DAGGER) 3.500% 03/07/97 ............... 1,100 1,100,000 Forsyth PCR (Portland General Electric) (Mitsub) (VMIG-1) DN(DAGGER) 3.500% 03/07/97 ............... 2,500 2,500,000 Kansas City IDA Demand Exempt Facility RB (K.C. Air Cargo Services, Inc. Project) DN [A-1](DAGGER) 3.600% 03/07/97 ............... 7,500 7,500,000 PAR (000) VALUE -------- ------------- MISSOURI--(CONTINUED) Missouri Higher Education Student Loan Authority RB DN [VMIG-1](DAGGER) 3.400% 03/07/97 ............... $10,000 $ 10,000,000 ------------ 26,400,000 ------------ NEBRASKA--0.8% Lancaster Sun-Husker Foods, Inc. Project DN [A-1+](DAGGER) 3.750% 03/07/97 ............... 3,800 3,800,000 ------------ NEVADA--0.4% Clark County Airport System Subordinate Lien RB DN Series 1995 A-2 [A-1+, VMIG-1](DAGGER) 3.400% 03/07/97 ............... 1,680 1,680,000 ------------ NEW HAMPSHIRE--3.2% New Hampshire State Housing Finance Authority Multifamily RB Countryside Project DN [VMIG-1](DAGGER) 3.400% 03/07/97 ............... 14,505 14,505,000 ------------ NEW YORK--1.5% New York State Environmental Quality G.O. Series 97 A MB [A-1+, P-1] TECP 3.400% 05/16/97 ............... 5,000 5,000,000 Triborough Bridge and Tunnel Authority DN / (FGIC Insurance) [A-1+, VMIG-1](DAGGER) 3.200% 03/07/97 ............... 1,700 1,700,000 ------------ 6,700,000 ------------ NORTH CAROLINA--3.7% Charlotte Airport Revenue Refunding Series 1993 A DN / (MBIA Insurance) [A-1+, VMIG-1](DAGGER) 3.250% 03/07/97 ............... 3,200 3,200,000 Mecklenburg County Industrial Facility and Pollution Control Financing Authority (Edgecomb Metals Co. Project) Series 1984 DN(DAGGER) 3.250% 03/07/97 ............... 300 300,000 See Accompanying Notes to Financial Statements. 10 CASH PRESERVATION FAMILY THE RBB FUND, INC. MUNICIPAL MONEY MARKET PORTFOLIO STATEMENT OF NET ASSETS (CONTINUED) FEBRUARY 28, 1997 (UNAUDITED) PAR (000) VALUE -------- ------------- NORTH CAROLINA--(CONTINUED) North Carolina Educational Facilities Finance Agency RB (The Bowman Gray School of Medicine Project) Series 1996 DN [VMIG-1](DAGGER) 3.300% 03/07/97 ............... $ 2,500 $ 2,500,000 North Carolina Health Care DN Series 1985 / (MBIA Insurance) [A-1+](DAGGER) 3.500% 03/07/97 ............... 6,400 6,400,000 North Carolina Medical Care Commission Hospital RB DN (Moses H. Cone Memorial Hospital Project) [A-1+](DAGGER) 3.300% 03/07/97 ............... 1,700 1,700,000 Wake County Industrial Facility and Pollution Control Financing Authority (Carolina Power & Light Co.) Series 1985 A DN [A-1+, P-1](DAGGER) 3.300% 03/07/97 ............... 1,200 1,200,000 Wake County Industrial Facility PCR DN (Carolina Power and Light) Series B [A1+](DAGGER) 3.500% 03/07/97 ............... 1,500 1,500,000 ------------ 16,800,000 ------------ NORTH DAKOTA--0.8% North Dakota Housing Finance Agency Housing Finance Program Bonds Home Mortgage Finance Program DN/ (FGIC Insurance) [VMIG1, Aaa](DAGGER) 3.850% 04/03/97 ............... 3,500 3,500,000 ------------ OHIO--0.7% Columbus G.O. RB Series 1996 DN [A-1+, VMIG-1](DAGGER) 3.200% 03/07/97 ............... 3,000 3,000,000 ------------ OKLAHOMA--0.4% Oklahoma Development Finance Authority Shawnee Funding Limited DN [A-1+, AA-](DAGGER) 3.450% 03/07/97 ............... 2,000 2,000,000 ------------ PAR (000) VALUE -------- ------------- PUERTO RICO--0.2% Puerto Rico Highway and Transportation Authority Series 1993x DN [A-1+, VMIG-1](DAGGER) 2.950% 03/07/97 ............... $ 900 $ 900,000 ------------ SOUTH CAROLINA--2.6% Berkeley County Industrial Development RB (Nucor Corp. Project) [A-1+, P-1](DAGGER) 3.450% 03/07/97 ............... 12,000 12,000,000 ------------ TENNESSEE--3.0% Memphis General Improvement DN [A-1+, VMIG-1](DAGGER) 3.400% 03/07/97 ............... 4,400 4,400,000 Montgomery County Public Building Authority County Loan Pool G.O. DN [A-1](DAGGER) 3.300% 03/07/97 ............... 2,400 2,400,000 Oak Ridge Municipal Solid Waste Disposal Facility Bonds Series 1996 M4 Environmental Project DN [VMIG1, Aa3](DAGGER) 3.450% 03/07/97 ............... 5,100 5,100,000 Tennessee State Housing Development Authority Homeownership Program Bonds (Escrowed In U.S. Treasuries) [A-1+, VMIG1](DOUBLE DAGGER) 3.750% 07/01/97 ............... 2,000 2,000,000 ------------ 13,900,000 ------------ TEXAS--2.8% San Antonio Housing Finance Corp. (Wellington Place Apartments) Series 1995 A DN [A-1+](DAGGER) 3.400% 03/07/97 ............... 5,945 5,945,000 State of Texas Series 1996 TRAN [SP-1+, MIG1] 4.750% 08/29/97 ............... 7,000 7,026,509 ------------ 12,971,509 ------------ See Accompanying Notes to Financial Statements. 11 CASH PRESERVATION FAMILY THE RBB FUND, INC. MUNICIPAL MONEY MARKET PORTFOLIO STATEMENT OF NET ASSETS (CONTINUED) FEBRUARY 28, 1997 (UNAUDITED) PAR (000) VALUE -------- ------------- UTAH--1.0% Intermountain Power Agency Power Supply Refunding RB Series 1985 E (Spa-Bank of America) MB [A-1, VMIG-1](DOUBLE DAGGER) 3.930% 06/16/97 ............... $ 2,000 $ 2,000,000 Salt Lake Airport RB DN [A-1+, VMIG-1](DAGGER) 3.350% 03/07/97 ............... 1,500 1,500,000 Utah State Board of Regents Student Loan Revenue Series C RB DN [A-1+, VMIG-1](DAGGER) 3.400% 03/07/97 ............... 900 900,000 ------------ 4,400,000 ------------ VIRGINIA--4.4% Alexandria IDA Adjustable Tender Resource Recovery (Alexandria/ Arlington Waste-to-Energy Facility) Series 1986 A DN [VMIG-1](DAGGER) 3.550% 03/01/97 ............... 200 200,000 Capital Region Airport Commission (Richmond International Airport Project) Series 1995 B DN (AMBAC Insurance) [A-1+, VMIG-1](DAGGER) 3.150% 03/07/97 ............... 1,700 1,700,000 Capital Region Airport Commission (Richmond International Airport Project) Series 1995 C DN / (AMBAC Insurance ) [VMIG-1, AAA](DAGGER) 3.300% 03/07/97 ............... 2,500 2,500,000 Culpepper Town IDA Residential Care Facility RB DN [A-1](DAGGER) 3.300% 03/07/97 ............... 1,470 1,470,000 Hampton Redevelopment & Housing Authority Multi-Family Housing (Avalon at Hampton) Series 1996 MB [A-1+](DOUBLE DAGGER) 3.250% 03/07/97 ............... 1,500 1,500,000 Louisa County IDA Pooled Financing Series 1995 DN [A-1](DAGGER) 3.300% 03/07/97 ............... 1,000 1,000,000 Lynchburg IDA Hospital RB DN [A-1](DAGGER) 3.350% 03/07/97 ............... 600 600,000 PAR (000) VALUE -------- ------------- VIRGINIA--(CONTINUED) Lynchburg Hospital RB Federal Housing Authority Mid-Atlantic Series 1985 E DN / (AMBAC Insurance ) [A-1, AAA](DAGGER) 3.350% 03/07/97 ............... $ 1,800 $ 1,800,000 Lynchburg IDA Hospital Facilities (Mid-Atlantic States Capital Asset Finance Project) Series 1985 C DN / (AMBAC Insurance) [A-1+, VMIG-1](DAGGER) 3.350% 03/07/97 ............... 800 800,000 Lynchburg IDA Hospital RB DN / (AMBAC Insurance) [A-1, Aaa](DAGGER) 3.350% 03/07/97 ............... 700 700,000 Metropolitan Washington D.C. Airports Authority, VA Passenger Facility [A-1](DOUBLE DAGGER) 3.500% 04/07/97 ............... 2,000 2,000,000 Peninsula Ports IDA RB (Allied Signal, Inc. Project) Series 1993 (Allied Signal Corp. Obligation) DN [A-1](DAGGER) 3.450% 03/07/97 ............... 1,000 1,000,000 Prince William County Virginia Industrial Development Authority (Colonial Investments Facility Project) Series 1996 [A-1](DAGGER) 3.550% 03/07/97 ............... 2,000 2,000,000 Roanoke IDA (Carillon Health System) Series 1995 C DN [A-1](DAGGER) 3.200% 03/07/97 ............... 1,300 1,300,000 Roanoke IDA (Carillon Health System) Series 1995 D DN [A-1+](DAGGER) 3.250% 03/07/97 ............... 1,800 1,800,000 ------------ 20,370,000 ------------ WASHINGTON--3.5% Everett, Washington IDRB Series 96 Partners Trust/Synsdor Project [Aa3](DAGGER) 3.450% 03/07/97 ............... 5,500 5,500,000 Pierce County, WA Educational Development Authority RB Series 1996 (Flex-A-Lite Consolidated Project) DN [P-1, Aa3](DAGGER) 3.350% 03/07/97 ............... 3,000 3,000,000 See Accompanying Notes to Financial Statements. 12 CASH PRESERVATION FAMILY THE RBB FUND, INC. MUNICIPAL MONEY MARKET PORTFOLIO STATEMENT OF NET ASSETS (CONCLUDED) FEBRUARY 28, 1997 (UNAUDITED) PAR (000) VALUE -------- ------------- WASHINGTON--(CONTINUED) Port of Seattle IDA DN (Alaska Airlines Project) [A-1](DAGGER) 3.350% 03/07/97 ............... $ 4,280 $ 4,280,000 Washington State G.O. Bonds DN [A-1+, VMIG-1](DAGGER) 3.250% 03/07/97 ............... 400 400,000 Yakima County Public Corp. DN Foods Project) [Aa3](DAGGER) 3.450% 03/07/97 ............... 3,000 3,000,000 ------------ 16,180,000 ------------ WEST VIRGINIA--1.9% Marshall County IDA US/Canada Project DN [A-1+](DAGGER) 3.450% 03/07/97 ............... 3,500 3,500,000 Grant County West Virginia Solid Waste Disposal Revenue Bonds Series 96 S Virginia Electric & Power Co. Project [VMIG-1](DOUBLE DAGGER) 3.700% 05/29/97 ............... 5,000 5,000,000 ------------ 8,500,000 ------------ WISCONSIN--3.2% Carlton Wisconsin DN [P-1](DAGGER) 3.450% 03/07/97 ............... 4,800 4,800,000 Wisconsin Health & Education Facilities Authority Daughters of Charity Health Center [VMIG-1] 3.350% 03/07/97 ............... 10,000 10,000,000 ------------ 14,800,000 ------------ TOTAL INVESTMENTS AT VALUE--99.6% (Cost $455,716,085*) .......... 455,716,085 OTHER ASSETS IN EXCESS OF LIABILITIES -- 0.4% ........ 1,867,381 ------------ VALUE ------------- NET ASSETS (Applicable to 198,704,009 Bedford Shares, 155,499,701 Bradford Shares, 84,233 Cash Preservation Shares, 103,362,447 Janney Montgomery Scott Shares, and 800 other shares) -- 100.0% ............. $457,583,466 ============ NET ASSET VALUE, offering and redemption price per share ($457,583,466 (DIVIDE) 457,651,190) .................. $1.00 ===== * Also cost for Federal income tax purposes. (DAGGER) Variable Rate Demand Notes -- The interest rate shown is the rate as of February 28, 1997 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 and Poor's Ratings Group's ratings indicated are the most recent ratings available at February 28, 1997. 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. 13 CASH PRESERVATION FAMILY THE RBB FUND, INC. MUNICIPAL MONEY MARKET PORTFOLIO STATEMENT OF OPERATIONS FOR THE SIX MONTHS ENDED FEBRUARY 28, 1997 (UNAUDITED) INVESTMENT INCOME Interest ................................. $7,829,369 ---------- EXPENSES Investment advisory fees ................. 712,521 Administration fees ...................... 216,844 Distribution fees ........................ 1,254,504 Directors' fees .......................... 4,829 Custodian fees ........................... 46,297 Transfer agent fees ...................... 93,296 Legal fees ............................... 9,828 Audit fees ............................... 5,415 Registration fees ........................ 120,000 Insurance expense ........................ 4,351 Printing expense ......................... 43,109 ---------- 2,510,994 Less fees waived ......................... (680,636) Less expense reimbursement by advisor .... (7,855) ---------- Total expenses ........................ 1,822,503 ---------- Net investment income ....................... 6,006,866 ---------- Net increase in net assets resulting from operations .......................... $6,006,866 ========== STATEMENT OF CHANGES IN NET ASSETS FOR THE FOR THE SIX MONTHS ENDED YEAR ENDED FEBRUARY 28, 1997 AUGUST 31, 1996 ----------------- --------------- (UNAUDITED) Increase (decrease) in net assets: Operations: Net investment income ........ $ 6,006,866 $ 12,196,171 Net loss on investments ...... -- (674) ------------ ------------ Net increase in net assets resulting from operations ................. 6,006,866 12,195,497 ------------ ------------ Dividends to shareholders from net investment income: Bedford shares ($.0138 and $.0288, respectively, per share) ................. (2,749,570) (5,960,711) Bradford shares ($.0138 and $.0288, respectively, per share) ................. (1,905,053) (3,611,114) Cash Preservation shares ($.0131 and $.0288, respectively, per share) ... (1,184) (3,746) Janney Montgomery Scott shares ($.0138 and $.0278, respectively, per share) ... (1,351,010) (2,620,457) RBB shares ($.0127 and $.0272, respectively, per share) ................. (49) (143) ------------ ------------ Total dividends to shareholders ............. (6,006,866) (12,196,171) ------------ ------------ Net capital share transactions ................. 36,695,120 (1,864,843) ------------ ------------ Total increase (decrease) in net assets ................... 36,695,120 (1,865,517) Net Assets: Beginning of period .......... 420,888,346 422,753,863 ------------ ------------ End of period ................ $457,583,466 $420,888,346 ============ ============ See Accompanying Notes to Financial Statements. 14 CASH PRESERVATION FAMILY THE RBB FUND, INC. FINANCIAL HIGHLIGHTS (b) (FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
MONEY MARKET PORTFOLIO -------------------------------------------------------------------------------- FOR THE FOR THE FOR THE FOR THE FOR THE FOR THE SIX MONTHS YEAR YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED ENDED FEBRUARY 28, AUGUST 31, AUGUST 31, AUGUST 31, AUGUST 31, AUGUST 31, 1997 1996 1995 1994 1993 1992 ------------ ----------- ---------- ----------- ----------- ----------- (UNAUDITED) Net asset value, beginning of period ..... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 ------- ------- ------- ------- ------- ------- Income from investment operations: Net investment income .................. 0.0227 0.0471 0.0487 0.0278 0.0243 0.0375 Net gains on securities (both realized and unrealized) .............. -- -- -- -- -- 0.0007 ------- ------- ------- ------- ------- ------- Total from investment operations ......................... 0.0227 0.0471 0.0487 0.0278 0.0243 0.0382 ------- ------- ------- ------- ------- ------- Less distributions: Dividends (from net investment income) ............................... (0.0227) (0.0471) (0.0487) (0.0278) (0.0243) (0.0375) Distributions (from capital gains) ..... -- -- -- -- -- (0.0007) ------- ------- ------- ------- ------- ------- Total distributions ................. (0.0227) (0.0471) (0.0487) (0.0278) (0.0243) (0.0382) ------- ------- ------- ------- ------- ------- Net asset value, end of period ........... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 ======= ======= ======= ======= ======= ======= Total Return ............................. 4.66%(c) 4.81% 4.98% 2.81% 2.46% 3.89% Ratios /Supplemental Data Net assets, end of period (000) ........ $ 277 $ 202 $ 236 $ 231 $ 1,229 $ 1,233 Ratios of expenses to average net assets ............................ .95%(a)(c) .95%(a) .95%(a) .95%(a) .95%(a) .95%(a) Ratios of net investment income to average net assets ................. 4.57%(c) 4.71% 4.87% 2.78% 2.43% 3.75%
MUNICIPAL MONEY MARKET PORTFOLIO ------------------------------------------------------------------------------ FOR THE FOR THE FOR THE FOR THE FOR THE FOR THE SIX MONTHS YEAR YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED ENDED FEBRUARY 28, AUGUST 31, AUGUST 31, AUGUST 31, AUGUST 31, AUGUST 31, 1997 1996 1995 1994 1993 1992 ------------- ---------- ---------- ---------- ---------- ---------- (UNAUDITED) Net asset value, beginning of period ..... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 ------- ------- ------- ------- -------- ------- Income from investment operations: Net investment income .................. 0.0131 0.0274 0.0281 0.0174 0.0174 0.0266 Net gains on securities (both realized and unrealized) .............. -- -- -- -- -- -- ------- ------- ------- ------- -------- ------- Total from investment operations ......................... 0.0131 0.0274 0.0281 0.0174 0.0174 0.0266 ------- ------- ------- ------- -------- ------- Less distributions: Dividends (from net investment income) ............................... (0.0131) (0.0274) (0.0281) (0.0174) (0.0174) (0.0266) Distributions (from capital gains) ..... -- -- -- -- -- -- ------- ------- ------- ------- -------- ------- Total distributions ................. (0.0131) (0.0274) (0.0281) (0.0174) (0.0174) (0.0266) ------- ------- ------- ------- -------- ------- Net asset value, end of period ........... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 ======= ======= ======= ======= ======== ======= Total Return ............................. 2.68%(c) 2.78% 2.84% 1.75% 1.75% 2.69% Ratios /Supplemental Data Net assets, end of period (000) ........ $ 84 $ 116 $ 161 $ 201 $ 157 $ 214 Ratios of expenses to average net assets ............................ .98%(a)(c) .98%(a) .98%(a) .98%(a) .98%(a) .98%(a) Ratios of net investment income to average net assets ................. 2.65%(c) 2.74% 2.81% 1.74% 1.74% 2.66% (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 13.09% annualized for the six months ended February 28, 1997, 12.08%, 9.34%, 2.52%, 2.25%, and 2.30% for the years ended August 31, 1996, 1995, 1994, 1993, and 1992, respectively. For the Municipal Money Market Portfolio, the ratios of expenses to average net assets would have been 27.35% annualized for the six months ended February 28, 1997, 19.20%, 10.80%, 11.52%, 8.95% and 5.91% for the years ended August 31, 1996, 1995, 1994, 1993 and 1992, respectively. (b) Financial Highlights relate solely to the Cash Preservation Class of shares within each portfolio. (c) Annualized.
15 CASH PRESERVATION FAMILY THE RBB FUND, INC. NOTES TO FINANCIAL STATEMENTS FEBRUARY 28, 1997 (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 13.48 billion shares are currently classified into seventy-seven classes. Each class represents an interest in one of nineteen investment portfolios of the Fund. The classes have been grouped into sixteen separate "families," nine of which have begun investment operations: the RBB Family, the BEA Family, the Sansom Street Family, the Bedford Family, the Cash Preservation Family, the Janney Montgomery Scott Money Family, the n/i Family, the Boston Partners Family, and the Bradford Family. The Cash Preservation Family represents interests in two portfolios, which are covered in this report. A) SECURITY VALUATION -- Portfolio securities are valued under the amortized cost method, which approximates current market value. Under this method, securities are valued at cost when purchased and thereafter a constant proportionate amortization of any discount or premium is recorded until maturity of the security. Regular review and monitoring of the valuation is performed in an attempt to avoid dilution or other unfair results to shareholders. The 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 income tax regulations which may differ from generally accepted accounting principles. 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. F) USE OF ESTIMATES -- The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. 16 CASH PRESERVATION FAMILY THE RBB FUND, INC. NOTES TO FINANCIAL STATEMENTS (CONTINUED) FEBRUARY 28, 1997 (UNAUDITED) NOTE 2. TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES Pursuant to Investment Advisory Agreements, PNC Institutional Management Corporation ("PIMC"), a wholly owned 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 two portfolios described herein. PNC Bank serves as the sub-advisor for the Money Market and Municipal 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 two portfolios' average daily net assets: PORTFOLIO ANNUAL RATE ----------------------- --------------------------------------------- Money Market Portfolio .45% of first $250 million of net assets; .40% of next $250 million of net assets; .35% of net assets in excess of $500 million. Municipal Money Market Portfolio .35% of first $250 million of net assets; .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 six months ended February 28, 1997, advisory fees and waivers for each of the two investment portfolios were as follows: GROSS NET ADVISORY ADVISORY FEE WAIVER FEE ---------- ----------- ---------- Money Market Portfolio $4,223,251 $(1,828,828) $2,394,423 Municipal Money Market Portfolio 712,521 (674,721) 37,800 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. 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, 1997, transfer agency fees and waivers for each class of shares within the two investment portfolios were as follows: GROSS NET TRANSFER AGENCY TRANSFER AGENCY FEE WAIVER FEE --------------- ------- --------------- Money Market Portfolio Bedford Class $ 910,000 $ -- $ 910,000 Cash Preservation Class 5,504 (2,975) 2,529 Janney Montgomery Scott Class 601,086 -- 601,086 RBB Class 3,750 (3,651) 99 Sansom Street Class 185,431 -- 185,431 ---------- ------- ---------- Total Money Market Portfolio $1,705,771 $(6,626) $1,699,145 ========== ======= ========== 17 CASH PRESERVATION FAMILY THE RBB FUND, INC. NOTES TO FINANCIAL STATEMENTS (CONTINUED) FEBRUARY 28, 1997 (UNAUDITED) NOTE 2. TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES (CONTINUED) GROSS NET TRANSFER AGENCY TRANSFER AGENCY FEE WAIVER FEE --------------- -------- --------------- Municipal Money Market Portfolio Bedford Class $ 55,234 $ -- $ 55,234 Bradford Class 10,114 -- 10,114 Cash Preservation Class 4,500 (4,335) 165 Janney Montgomery Scott Class 21,693 -- 21,693 RBB Class 1,755 (1,580) 175 --------- ------- --------- Total Municipal Money Market Portfolio $ 93,296 $(5,915) $ 87,381 ========= ======= ========= 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 each Portfolio's average daily net assets. For the six months ended February 28, 1997, the administration fee for the Municipal Money Market Portfolio was $216,844. The Fund, on behalf of each class of shares within the two 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. For the six months ended February 28, 1997, distribution fees for each class were as follows: DISTRIBUTION FEE ------------ Money Market Portfolio Bedford Class $3,125,194 Cash Preservation Class 393 Janney Montgomery Scott Class 1,825,638 RBB Class 114 Sansom Street Class 170,854 ---------- Total Money Market Portfolio $5,122,193 ========== Municipal Money Market Portfolio Bedford Class $ 548,593 Bradford Class 412,774 Cash Preservation Class 179 Janney Montgomery Scott Class 292,950 RBB Class 8 ---------- Total Municipal Money Market Portfolio $1,254,504 ========== 18 CASH PRESERVATION FAMILY THE RBB FUND, INC. NOTES TO FINANCIAL STATEMENTS (CONTINUED) FEBRUARY 28, 1997 (UNAUDITED) NOTE 2. TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES (CONTINUED) 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, 1997, service organization fees were $243,692 for the Money Market Portfolio and $0 for the Municipal Money Market Portfolio. NOTE 3. CAPITAL SHARES Transactions in capital shares (at $1.00 per capital share) for each period were as follows:
MUNICIPAL MONEY MARKET MONEY MARKET PORTFOLIO PORTFOLIO ---------------------------------- ---------------------------------- FOR THE FOR THE SIX MONTHS FOR THE SIX MONTHS FOR THE ENDED YEAR ENDED ENDED YEAR ENDED FEBRUARY 28, 1997 AUGUST 31,1996 FEBRUARY 28, 1997 AUGUST 31, 1996 ----------------- --------------- ----------------- --------------- (UNAUDITED) (UNAUDITED) VALUE VALUE VALUE VALUE ----------------- --------------- ----------------- --------------- Shares sold: Bedford Class $ 2,056,550,608 $ 3,797,592,288 $ 578,025,438 $ 1,022,457,772 Bradford Class -- -- 316,528,520 479,401,891 Cash Preservation Class 127,911 122,344 46,523 171,907 Janney Montgomery Scott Class 1,459,413,851 2,359,936,867 206,342,738 408,374,271 RBB Class 4,744 584,206 200 69,480 Sansom Street Class 911,854,917 2,191,596,362 -- -- Shares issued in reinvestment of dividends: Bedford Class 26,659,535 49,290,088 2,771,563 5,847,767 Bradford Class -- -- 1,877,757 3,506,714 Cash Preservation Class 4,494 10,084 1,151 3,515 Janney Montgomery Scott Class 13,870,907 24,077,173 1,370,883 2,602,869 RBB Class 1,361 2,625 53 143 Sansom Street Class 9,516,045 18,389,361 -- -- Shares repurchased: Bedford Class (1,942,165,988) (3,673,362,904) (584,102,601) (1,024,790,222) Bradford Class -- -- (292,305,157) (464,445,579) Cash Preservation Class (58,181) (165,733) (79,206) (220,929) Janney Montgomery Scott Class (1,372,242,482) (2,265,789,890) (193,777,346) (434,775,023) RBB Class (67,517) (580,821) (5,396) (69,419) Sansom Street Class (903,693,196) (2,127,237,313) -- -- --------------- --------------- ------------- --------------- Net increase (decrease) $ 259,777,009 $ 374,464,737 $ 36,695,120 $ (1,864,843) =============== =============== ============= =============== Cash Preservation Shares authorized 500,000,000 500,000,000 500,000,000 500,000,000 =============== =============== ============= ===============
19 CASH PRESERVATION FAMILY THE RBB FUND, INC. NOTES TO FINANCIAL STATEMENTS (CONTINUED) FEBRUARY 28, 1997 (UNAUDITED) NOTE 4. NET ASSETS At February 28, 1997, net assets consisted of the following: MUNICIPAL MONEY MARKET MONEY MARKET PORTFOLIO PORTFOLIO ------------- ------------- Capital paid-in: Bedford Class $1,250,395,889 $198,704,009 Bradford Class -- 155,499,701 Cash Preservation Class 276,583 84,233 Janney Montgomery Scott Class 662,915,523 103,362,447 Sansom Street Class 542,045,165 -- Other Classes 800 800 Accumulated net realized gain (loss) on investments Bedford Class (23,975) (69,802) Bradford Class -- 339 Cash Preservation Class (4) 5 Janney Montgomery Scott Class (11,305) 1,734 Sansom Street Class (11,138) -- -------------- ------------ $2,455,587,538 $457,583,466 ============== ============ 20 CASH PRESERVATION FAMILY THE RBB FUND, INC. NOTES TO FINANCIAL STATEMENTS (CONTINUED) FEBRUARY 28, 1997 (UNAUDITED) NOTE 5. OTHER FINANCIAL HIGHLIGHTS The Fund currently offers four other classes of shares representing interest in the Money Market Portfolio: Bedford, Janney Montgomery Scott, RBB and Sansom Street. The Fund currently offers four other classes of shares representing interest in the Municipal Money Market Portfolio: Bedford, Bradford, Janney Montgomery Scott and RBB. Each class is marketed to different types of investors. Financial Highlights of the RBB class is not presented in this report due to its immateriality. Such information is available in the annual report of the RBB family. The financial highlights of certain of the other classes are as follows: THE BEDFORD FAMILY
MONEY MARKET PORTFOLIO ------------------------------------------------------------------------------ FOR THE FOR THE FOR THE FOR THE FOR THE FOR THE SIX MONTHS YEAR YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED ENDED FEBRUARY 28, AUGUST 31, AUGUST 31, AUGUST 31, AUGUST 31, AUGUST 31, 1997 1996 1995 1994 1993 1992 ------------ ---------- ---------- ----------- ----------- ----------- (UNAUDITED) Net asset value, beginning of period ............... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 ---------- ---------- -------- -------- -------- -------- Income from investment operations: Net investment income ............. 0.0226 0.0469 0.0486 0.0278 0.0243 0.0375 Net gains on securities (both realized and unrealized) ......... -- -- -- -- -- 0.0007 ---------- ---------- -------- -------- -------- -------- Total from investment operations .................... 0.0226 0.0469 0.0486 0.0278 0.0243 0.0382 ---------- ---------- -------- -------- -------- -------- Less distributions: Dividends (from net investment income) .......................... (0.0226) (0.0469) (0.0486) (0.0278) (0.0243) (0.0375) Distributions (from capital gains) -- -- -- -- -- (0.0007) ---------- ---------- -------- -------- -------- -------- Total distributions ............ (0.0226) (0.0469) (0.0486) (0.0278) (0.0243) (0.0382) ---------- ---------- -------- -------- -------- -------- Net asset value, end of period ...... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 ========== ========== ======== ======== ======== ======== Total Return ........................ 4.64%(b) 4.79% 4.97% 2.81% 2.46% 3.89% Ratios /Supplemental Data Net assets, end of period (000) ... $1,250,379 $1,109,334 $935,821 $710,737 $782,153 $736,842 Ratios of expenses to average net assets ....................... .97%(a)(b) .97%(a) .96%(a) .95%(a) .95%(a) .95%(a) Ratios of net investment income to average net assets ............ 4.55%(b) 4.69% 4.86% 2.78% 2.43% 3.75%
MUNICIPAL MONEY MARKET PORTFOLIO --------------------------------------------------------------------------- FOR THE FOR THE FOR THE FOR THE FOR THE FOR THE SIX MONTHS YEAR YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED ENDED FEBRUARY 28, AUGUST 31, AUGUST 31, AUGUST 31, AUGUST 31, AUGUST 31, 1997 1996 1995 1994 1993 1992 ------------- ---------- ---------- ---------- ---------- ---------- (UNAUDITED) Net asset value, beginning of period ................ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 -------- -------- -------- -------- -------- -------- Income from investment operations: Net investment income .............. 0.0138 0.0288 0.0297 0.0195 0.0195 0.0287 Net gains on securities (both realized and unrealized) .......... -- -- -- -- -- -- -------- -------- -------- -------- -------- -------- Total from investment operations ..................... 0.0138 0.0288 0.0297 0.0195 0.0195 0.0287 -------- -------- -------- -------- -------- -------- Less distributions: Dividends (from net investment income) ........................... (0.0138) (0.0288) (0.0297) (0.0195) (0.0195) (0.0287) Distributions (from capital gains) . -- -- -- -- -- -- -------- -------- -------- -------- -------- -------- Total distributions ............. (0.0138) (0.0288) (0.0297) (0.0195) (0.0195) (0.0287) -------- -------- -------- -------- -------- -------- Net asset value, end of period ....... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 ======== ======== ======== ======== ======== ======== Total Return ......................... 2.82%(b) 2.92% 3.01% 1.97% 1.96% 2.90% Ratios /Supplemental Data Net assets, end of period (000) .... $198,639 $201,940 $198,425 $182,480 $215,577 $176,950 Ratios of expenses to average net assets ........................ .84%(a)(b) .84%(a) .82%(a) .77%(a) .77%(a) .77%(a) Ratios of net investment income to average net assets ............. 2.79%(b) 2.88% 2.97% 1.95% 1.95% 2.87% (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 1.13% annualized for the six months ended February 28, 1997, 1.14%, 1.17%, 1.16%, 1.19%, and 1.20% for the years ended August 31, 1996, 1995, 1994, 1993, and 1992, respectively. For the Municipal Money Market Portfolio, the ratios of expenses to average net assets would have been 1.15% annualized for the six months ended February 28, 1997, 1.12%, 1.14%, 1.12%, 1.16%, and 1.15% for the years ended August 31, 1996, 1995, 1994, 1993 and 1992, respectively. (b) Annualized.
21 CASH PRESERVATION FAMILY THE RBB FUND, INC. NOTES TO FINANCIAL STATEMENTS (CONTINUED) FEBRUARY 28, 1997 (UNAUDITED) NOTE 5. OTHER FINANCIAL HIGHLIGHTS (CONTINUED) BRADFORD MUNICIPAL MONEY MARKET SHARES
FOR THE PERIOD FOR THE FOR THE FOR THE FOR THE FOR THE JANUARY 10, 1992 SIX MONTHS YEAR YEAR YEAR YEAR COMMENCEMENT OF ENDED ENDED ENDED ENDED ENDED OPERATIONS) TO FEBRUARY 28, AUGUST 31, AUGUST 31, AUGUST 31, AUGUST 31, AUGUST 31, 1997 1996 1995 1994 1993 1992 ------------ ----------- ----------- ----------- ----------- ---------------- (UNAUDITED) Net asset value, beginning of period ................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 -------- -------- -------- -------- -------- -------- Income from investment operations: Net investment income............... 0.0138 0.0288 0.0297 0.0195 0.0195 0.0154 -------- -------- -------- -------- -------- -------- Total from investment operations.. 0.0138 0.0288 0.0297 0.0195 0.0195 0.0154 -------- -------- -------- -------- -------- -------- Less distributions Dividends (from net investment income) ............... (0.0138) (0.0288) (0.0297) (0.0195) (0.0195) (0.0154) -------- -------- -------- -------- -------- -------- Total distributions............... (0.0138) (0.0288) (0.0297) (0.0195) (0.0195) (0.0154) -------- -------- -------- -------- -------- -------- Net asset value, end of period ........... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 ======== ======== ======== ======== ======== ======== Total Return ......................... 2.82%(b) 2.92% 3.01% 1.97% 1.96% 2.42%(b) Ratios /Supplemental Data Net assets, end of period (000) .... $155,496 $129,399 $110,936 $100,089 $76,975 $69,586 Ratios of expenses to average net assets ....................... .84%(a)(b) .84%(a) .82%(a) .77%(a) .77%(a) .77%(a)(b) Ratios of net investment income to average net assets ............... 2.79%(b) 2.88% 2.97% 1.95% 1.95% 2.40%(b) (a) Without the waiver of advisory, transfer agency and administration fees and without the reimbursement of certain operating expenses, the ratio of expenses to average net assets for the Municipal Money Market Portfolio would have been 1.15% annualized for the six months ended February 28, 1997, 1.12%, 1.14%, 1.11% and 1.16% for the years ended August 31, 1996, 1995, 1994 and 1993, respectively, and 1.16% annualized for the period ended August 31, 1992. (b) Annualized.
22 CASH PRESERVATION FAMILY THE RBB FUND, INC. NOTES TO FINANCIAL STATEMENTS (CONTINUED) FEBRUARY 28, 1997 (UNAUDITED) NOTE 5. OTHER FINANCIAL HIGHLIGHTS (CONTINUED) THE JANNEY MONTGOMERY SCOTT FAMILY
MUNICIPAL MONEY MONEY MARKET PORTFOLIO MARKET PORTFOLIO ------------------------------------------------ ------------------------------------------- FOR THE PERIOD FOR THE PERIOD FOR THE FOR THE JUNE 12, 1995 FOR THE FOR THE JUNE 12, 1995 SIX MONTHS YEAR (COMMENCEMENT SIX MONTHS YEAR (COMMENCEMENT ENDED ENDED OF OPERATIONS) ENDED ENDED OF OPERATIONS) FEBRUARY 28, AUGUST 31, TO AUGUST 31, FEBRUARY 28, AUGUST 31, TO AUGUST 31, 1997 1996 1995 1997 1996 1995 ------------ ---------- -------------- ------------ ---------- -------------- (UNAUDITED) (UNAUDITED) Net asset value, beginning of period ......... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 ------- ------- ------- ------- ------- ------- Income from investment operations: Net investment income ......... 0.0224 0.0465 0.0112 0.0138 0.0278 0.0063 ------- ------- ------- ------- ------- ------- Total from investment operations .............. 0.0224 0.0465 0.0112 0.0138 0.0278 0.0063 ------- ------- ------- ------- ------- ------- Less distributions Dividends (from net investment income) .......... (0.0224) (0.0465) (0.0112) (0.0138) (0.0278) (0.0063) ------- ------- ------- ------- ------- ------- Total distributions ....... (0.0224) (0.0465) (0.0112) (0.0138) (0.0278) (0.0063) ------- ------- ------- ------- ------- ------- Net asset value, end of period ............... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 ======= ======= ======= ======= ======= ======= Total Return .................. 4.62%(b) 4.76% 5.30%(b) 2.82%(b) 2.81% 2.87%(b) Ratios /Supplemental Data Net assets, end of period (000) .............. $662,899 $561,865 $443,645 $103,364 $89,428 $113,226 Ratios of expenses to average net assets ................ 1.00%(a)(b) 1.00%(a) 1.00%(a)(b) 0.86%(a)(b) 0.94%(a) 1.00%(a)(b) Ratios of net investment income to average net assets ................ 4.52%(b) 4.65% 5.04%(b) 2.79%(b) 2.78% 2.83%(b) (a) Without the waiver of advisory, administration and transfer 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 1.24% annualized for the six months ended February 28, 1997, and 1.23%, 1.23% for the years ended August 31, 1996 and 1995, respectively. For the Municipal Money Market Portfolio, the ratios of expenses to average net assets would have been 1.17% annualized for the six months ended February 28, 1997, and 1.23%, 1.30% for the years ended August 31, 1996 and 1995, respectively. (b) Annualized.
23 CASH PRESERVATION FAMILY THE RBB FUND, INC. NOTES TO FINANCIAL STATEMENTS (CONCLUDED) FEBRUARY 28, 1997 (UNAUDITED) NOTE 5. OTHER FINANCIAL HIGHLIGHTS (CONTINUED) THE SANSOM STREET FAMILY
Money Market Portfolio ------------------------------------------------------------------------------ FOR THE SIX MONTHS FOR THE FOR THE FOR THE FOR THE FOR THE ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED FEBRUARY 28, AUGUST 31, AUGUST 31, AUGUST 31, AUGUST 31, AUGUST 31, 1997 1996 1995 1994 1993 1992 ------------ ---------- ---------- ---------- ---------- ---------- (UNAUDITED) Net asset value, beginning of period .............. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 ------- ------- ------- ------- ------- ------- Income from investment operations: Net investment income ........................... 0.0250 0.0518 0.0543 0.0334 0.0304 0.0435 Net gains on securities (both realized and unrealized) ................. -- -- -- -- -- 0.0007 ------- ------- ------- ------- ------- ------- Total from investment operations ............. 0.0250 0.0518 0.0543 0.0334 0.0304 0.0442 ------- ------- ------- ------- ------- ------- Less distributions Dividends (from net investment income) .......... (0.0250) (0.0518) (0.0543) (0.0334) (0.0304) (0.0435) Distributions (from capital gains) .............. -- -- -- -- -- (0.0007) ------- ------- ------- ------- ------- ------- Total distributions .......................... (0.0250) (0.0518) (0.0543) (0.0334) (0.0304) (0.0442) ------- ------- ------- ------- ------- ------- Net asset value, end of period .................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 ======= ======= ======= ======= ======= ======= Total Return ...................................... 5.15%(b) 5.30% 5.57% 3.39% 3.08% 4.51% Ratios /Supplemental Data Net assets, end of period ....................... $542,034 $524,359 $441,614 $373,745 $190,794 $228,079 Ratios of expenses to average net assets ........ .49%(a)(b) .48%(a) .39%(a) .39%(a) .34%(a) .35%(a) Ratios of net investment income to average net assets ............................ 5.03%(b) 5.18% 5.43% 3.34% 3.04% 4.35% (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 .66% for six months ended February 28, 1997, .65%, .59%, .60%, .60% and .61% for the years ended August 31, 1996, 1995, 1994, 1993 and 1992 respectively. (b) Annualized.
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