-----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, Wk1h6NIo0HuUOwNMiHkLR0RjRDVqJx5aP7+TSxtIueBZ2WixagHjoALh5OFHmXDD X91U3aT7mTvOE+6PqawIKw== 0000935069-97-000180.txt : 19971106 0000935069-97-000180.hdr.sgml : 19971106 ACCESSION NUMBER: 0000935069-97-000180 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19970831 FILED AS OF DATE: 19971105 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: SEC FILE NUMBER: 811-05518 FILM NUMBER: 97708078 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 JANNEY MONTGOMERY SCOTT ANNUAL REPORT ================================================================================ ESTABLISHED 1832 JMS INC. [LOGO OMITTED] THE JANNEY MONTGOMERY SCOTT MONEY FUNDS MONEY MARKET PORTFOLIO - -------------------------------------------------------------------------------- MUNICIPAL MONEY MARKET PORTFOLIO - -------------------------------------------------------------------------------- GOVERNMENT OBLIGATIONS MONEY MARKET PORTFOLIO - -------------------------------------------------------------------------------- NEW YORK MUNICIPAL MONEY MARKET PORTFOLIO ANNUAL REPORT AUGUST 31, 1997 ================================================================================ THE JANNEY MONTGOMERY SCOTT MONEY FUNDS THE RBB FUND, INC. ANNUAL INVESTMENT ADVISER'S REPORT For much of the past year, economic activity grew progressively stronger and only the good behavior of inflation kept money market yields from an appreciable rise. In last year's final two quarters and through 1997's first quarter, the nation's gross domestic product rose from a rate of 2.1% to 4.9%, led by healthy gains in employment and wages. This strong momentum put pressure on the Federal Reserve to raise short-term interest rates, particularly early this year. The Fed's only move, however, was in March when it increased the federal funds rated from 5.25% to 5.50%. The Fed likened its move to buying insurance against the possible need for larger moves at a later date. The reaction to the tighter monetary policy was quite severe, with both the stock and bond markets experiencing sharp declines in April. In the months following the Fed's move, economic activity began to show signs of slowing and the money market yield curve, which reached its steepest slope in March, began to flatten. One-year yields, for example, which peaked at 6.30% fell below 6.00% over the next few months, while the one- to three-month sector held steady in a 5.50-5.65% range. One interesting anomaly was the U.S. Treasury market where yields on three-, six-, and twelve-month bills traded well below other money market rates. With the huge amount of cash in the market, the three-month Treasury bill yielded as low as 4.90% in the second quarter, while overnight rates remained at 5.50%. By the end of August, the three-month Treasury bill had recovered somewhat, but was still 30 basis points below the federal funds rate. This dichotomy in market yields generally kept the duration of the government portfolio shorter than the prime portfolio, as it carried more overnight investments for both yield and liquidity. In contrast, the prime portfolio was more attracted to the 3-month and 1-year sectors to pick up incremental yield during those occasions when the curve steepened. Early in the year, a lack of supply and a renewed belief in a Federal Reserve tightening kept municipal yields at historically expensive levels. Variable rate demand securities maintained strong interest from investors in anticipation of higher short-term interest rates and in preparation for April's income tax payments. Total tax-exempt money fund assets reached new all-time highs in each of the first four months of the year. Tax-free variable rate yields rose in volatile trading during the second quarter and returns offered taxable equivalent yields that were 50 basis points above taxable securities. Substantial cash inflows in mid-summer from coupon payments and crossover buyers caused daily reset demand notes to drop approximately 170 basis points, while weekly reset demand notes fell 70 basis points. By the end of August, total tax-free money market fund assets, as measured by "IBC's MONEY FUND REPORT," climbed to an all-time high of over $154 billion. Interest rate volatility and a flat yield curve allowed RBB Municipal and RBB New York Municipal Money Funds to maintain shorter average weighted maturities than their "IBC MONEY FUND REPORT" peer groups. For the year ended August, assets in RBB Municipal rose from $421 million to $488 million, while RBB New York increased from $88 million to $110 million. PNC Institutional Management Corporation (Please dial toll-free 800-677-6310 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, Government Obligations Money Market and New York Municipal Money Market Portfolios of the RBB Fund, Inc., as of August 31, 1997 and the related statement of operations for the year then ended, the statement 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 owned by the custodian as of August 31, 1997. 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, Government Obligations Money Market and New York Municipal Money Market Portfolios of the RBB Fund, Inc., as of August 31, 1997 and 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 17, 1997 2 THE JANNEY MONTGOMERY SCOTT MONEY FUNDS THE RBB FUND, INC. MONEY MARKET PORTFOLIO STATEMENT OF NET ASSETS AUGUST 31, 1997 PAR (000) VALUE -------- ------------ AGENCY OBLIGATIONS--10.0% Student Loan Marketing Association(DAGGER) 5.450% 09/02/97 ......................... $ 10,000 $ 10,000,000 5.460% 09/02/97 ......................... 10,000 10,000,000 Student Loan Marketing Assocation Discount Notes 5.500% 09/02/97 ......................... 250,000 249,961,806 ------------ TOTAL AGENCY OBLIGATIONS (Cost $269,961,806) ................. 269,961,806 ------------ CERTIFICATES OF DEPOSIT--32.8% BANK NOTES--4.6% First National Bank of Boston 5.625% 10/08/97 ......................... 50,000 50,000,000 5.600% 11/19/97 ......................... 75,000 75,000,000 ------------ 125,000,000 ------------ DOMESTIC CERTIFICATES OF DEPOSIT--5.6% Bankers Trust Co. 5.980% 06/19/98 ......................... 50,000 49,992,390 5.820% 07/31/98 ......................... 25,000 24,993,453 5.880% 08/11/98 ......................... 25,000 24,993,238 Mellon Bank N.A. 6.030% 09/23/97 ......................... 25,000 25,001,846 Wilmington Trust Co. 5.920% 11/06/97 ......................... 25,000 25,000,000 ------------ 149,980,927 ------------ YANKEE DOLLAR CERTIFICATES OF DEPOSIT--22.6% Banque Nationale de Paris 5.860% 08/10/98 ......................... 25,000 24,986,523 Caisse Nationale de Credit Agricole 5.640% 10/07/97 ......................... 50,000 50,001,479 Credit Suisse 6.240% 04/08/98 ......................... 40,000 40,040,657 Deutsche Bank 6.000% 03/25/98 ......................... 50,000 50,050,753 6.200% 04/08/98 ......................... 25,000 25,015,286 Industrial Bank of Japan 5.730% 10/10/97 ......................... 50,000 50,000,000 5.680% 10/24/97 ......................... 25,000 25,000,637 Rabobank Nederland 5.710% 02/17/98 ......................... 50,000 50,002,280 PAR (000) VALUE -------- ------------ YANKEE DOLLAR CERTIFICATES OF DEPOSIT--(CONTINUED) Royal Bank of Canada 5.670% 09/02/97(DAGGER) ............. $ 25,000 $ 24,994,403 6.200% 04/06/98 ..................... 19,000 19,014,263 5.940% 06/25/98 ..................... 25,000 24,988,323 Sanwa Bank 5.780% 09/17/97 ..................... 50,000 50,000,637 Societe Generale 5.600% 09/19/97 ..................... 50,000 50,000,000 5.630% 12/31/97 ..................... 25,000 24,999,544 5.770% 01/09/98 ..................... 25,000 24,996,590 Sumitomo Bank 5.640% 10/20/97 ..................... 50,000 50,000,000 Swedbank 5.630% 11/20/97 ..................... 25,000 25,000,548 ------------ 609,091,923 ------------ TOTAL CERTIFICATES OF DEPOSIT (Cost $884,072,850) ............. 884,072,850 ------------ COMMERCIAL PAPER--40.5% ASSET BACKED SECURITIES--4.1% Beta Finance Inc. 5.620% 09/26/97 ..................... 15,000 14,941,458 Countrywide Funding Corp. 5.590% 09/15/97 ..................... 60,000 59,869,567 5.570% 09/30/97 ..................... 35,000 34,842,957 ------------ 109,653,982 ------------ BANKS--7.3% AB Spintab Swedmortgage 5.520% 11/06/97 ..................... 50,000 49,494,000 AMRO N.A. Finance Inc. 5.560% 05/01/98 ..................... 50,000 48,131,222 Unifunding Inc. 5.540% 10/07/97 ..................... 50,000 49,723,000 5.520% 10/30/97 ..................... 50,000 49,547,667 ------------ 196,895,889 ------------ FINANCE SERVICES--4.2% SMM Trust 1997-L(DAGGER) 5.633% 09/29/97 ..................... 13,200 13,200,000 SMM Trust 1997-W(DAGGER) 5.645% 09/16/97 ..................... 100,000 100,000,000 ------------ 113,200,000 ------------ See Accompanying Notes to Financial Statements. 3 THE JANNEY MONTGOMERY SCOTT MONEY FUNDS THE RBB FUND, INC. MONEY MARKET PORTFOLIO STATEMENT OF NET ASSETS (CONTINUED) AUGUST 31, 1997 PAR (000) VALUE -------- ------------ MOTOR VEHICLES & CAR BODIES--3.7% BMW US Capital Corp. 5.550% 10/08/97 ........................... $ 50,000 $ 49,714,792 Daimler-Benz North America Corp. 5.600% 09/25/97 ........................... 50,000 49,813,333 -------------- 99,528,125 -------------- PERSONAL CREDIT INSTITUTIONS--1.8% General Motors Acceptance Corp. 5.750% 11/17/97 ........................... 50,000 49,385,069 -------------- PETROLEUM REFINING--0.9% Repsol International Finance B.V. 5.510% 01/26/98 ........................... 25,000 24,437,521 -------------- SECURITY BROKERS & DEALERS--11.2% Bear Stearns Companies, Inc.(DAGGER) 5.609% 09/08/97 ........................... 25,000 25,000,000 5.659% 09/22/97 ........................... 50,000 50,000,000 5.605% 09/26/97 ........................... 30,000 30,000,000 Lehman Brothers Holdings, Inc.(DAGGER) 5.913% 09/06/97 ........................... 50,000 50,000,000 Merrill Lynch & Co. 5.570% 12/12/97 ........................... 40,000 39,368,733 5.530% 02/24/98 ........................... 40,000 38,918,578 Nomura Holding America Inc. 5.740% 09/08/97 ........................... 25,000 24,972,097 5.640% 11/12/97 ........................... 20,000 19,774,400 5.630% 11/26/97 ........................... 25,000 24,663,764 -------------- 302,697,572 -------------- SERVICES - AUTO RENT & LEASE--3.6% PHH Corp. 5.640% 09/02/97 ........................... 73,000 72,988,563 5.540% 10/09/97 ........................... 25,000 24,853,806 -------------- 97,842,369 -------------- SHORT-TERM BUSINESS CREDIT INSTITUTIONS--3.7% Heller Financial Inc. 5.625% 09/05/97 ........................... 100,000 99,937,500 -------------- TOTAL COMMERCIAL PAPER (Cost $1,093,578,027) ................. 1,093,578,027 -------------- PAR (000) VALUE -------- ------------ CORPORATE OBLIGATIONS--2.0% FINANCE LESSORS--0.7% IBM Credit Corp. 5.700% 10/27/97 ....................... $ 20,000 $19,999,145 ----------- PERSONAL CREDIT INSTITUTIONS--0.6% General Motors Acceptance Corp. 5.625% 10/30/97 ....................... 15,000 14,998,566 ----------- SECURITY BROKERS & DEALERS--0.7% Bear Stearns Companies, Inc. 5.860% 01/20/98 ....................... 20,000 20,000,000 ----------- TOTAL CORPORATE OBLIGATIONS (Cost $54,997,711) ................ 54,997,711 ----------- MUNICIPAL BONDS--3.1% FLORIDA--0.1% Coral Springs, IDR(DOUBLE DAGGER) 5.600% 09/03/97 ....................... 2,700 2,700,000 ----------- GEORGIA--0.4% De Kalb County Development Authority Series 1995 B (Emory University Project)(DOUBLE DAGGER) 5.600% 08/31/97 ....................... 9,840 9,840,000 ----------- ILLINOIS--0.2% Illinois Health Facilities Authority Convertible/ VRDN Revenue Bond (The Streeterville Corp. Project) Series 1993-B(DOUBLE DAGGER) 5.700% 09/03/97 ....................... 4,400 4,400,000 ----------- INDIANA--0.2% Bremen, Inc. TARN Series 1996-B 5.610% 09/04/97 ....................... 5,200 5,200,000 ----------- KENTUCKY--0.2% Boone County Taxable IDR Refunding Bonds (Square D Company Project) Series 1994-B VRDN(DAGGER) 5.700% 09/03/97 ....................... 4,200 4,200,000 ----------- See Accompanying Notes to Financial Statements. 4 THE JANNEY MONTGOMERY SCOTT MONEY FUNDS THE RBB FUND, INC. MONEY MARKET PORTFOLIO STATEMENT OF NET ASSETS (CONCLUDED) AUGUST 31, 1997 PAR (000) VALUE -------- ----------- MISSISSIPPI--1.1% Hinds County, IDR Revenue Bond VRDN Series 1987(DAGGER) 5.600% 09/03/97 ....................... $ 1,200 $ 1,200,000 Hinds County, IDR Revenue Bond VRDN Series 1992(DAGGER) 5.600% 09/03/97 ....................... 1,860 1,860,000 Mississippi Business Finance Corp. IDR Revenue Bond (Dana Lighting Project) Series 1995(DAGGER) 5.600% 09/07/97 ....................... 6,400 6,400,000 Mississippi Business Finance Corp. Taxable IDR Revenue Bond (Bryan Foods, Inc. Project) Series 1994(DAGGER) 5.700% 09/03/97 ....................... 14,000 14,000,000 Mississippi Business Finance Corp. Taxable IDR Revenue Bond Series 1995(DAGGER) 5.600% 09/07/97 ....................... 7,000 7,000,000 ----------- 30,460,000 ----------- NORTH CAROLINA--0.4% City of Asheville Tax Corp.(DAGGER) 5.650% 09/03/97 ....................... 11,700 11,700,000 ----------- TEXAS--0.5% South Central Texas Industrial Development Corp. Taxable IDR Revenue Bond (Rohr Industries Project Series 1990 VRDN(DAGGER) 5.700% 09/03/97 ....................... 14,800 14,800,000 ----------- TOTAL MUNICIPAL BONDS (Cost $83,300,000) ................ 83,300,000 ----------- PAR (000) VALUE -------- -------------- TIME DEPOSITS--11.3% First Union National Bank of North Carolina 5.438% 09/02/97 ................... $ 45,100 $ 45,100,000 5.500% 09/02/97 ................... 50,000 50,000,000 General American Life 5.870% 09/30/97 ................... 50,000 50,000,000 Union Bank of Switzerland 5.625% 09/04/97 ................... 100,000 100,000,000 Wells Fargo Bank, N.A. 5.500% 09/02/97 ................... 60,000 60,000,000 -------------- TOTAL TIME DEPOSITS (Cost $305,100,000) ........... 305,100,000 -------------- TOTAL INVESTMENTS AT VALUE--99.7% (Cost $2,691,010,394*) ............ 2,691,010,394 OTHER ASSETS IN EXCESS OF LIABILITIES--0.3% ................. 9,015,235 -------------- NET ASSETS (Applicable to 1,392,910,207 Bedford shares, 242,215 Cash Preservation shares, 736,852,298 Janney Montgomery Scott shares, 570,031,293 Sansom Street shares and 800 other shares)--100.0% ..... $2,700,025,629 ============== NET ASSET VALUE, Offering and Redemption Price Per Share ($2,700,025,629 (DIVIDE) 2,700,036,813) .................... $1.00 ===== * Also cost for Federal income tax purposes. (DAGGER) Variable Rate Obligations -- The interest rate shown is the rate as of August 31, 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 put date. INVESTMENT ABBREVIATIONS VRDN ............................................... Variable Rate Demand Note LOC ......................................................... Letter of Credit IDR ........................................... Industrial Development Revenue TARN ......................................... Taxable Adjustable Revenue Note See Accompanying Notes to Financial Statements. 5 THE JANNEY MONTGOMERY SCOTT MONEY FUNDS THE RBB FUND, INC. MUNICIPAL MONEY MARKET PORTFOLIO STATEMENT OF NET ASSETS AUGUST 31, 1997 PAR (000) VALUE -------- ------------ MUNICIPAL BONDS--99.5% ALABAMA--1.0% Montgomery Special Care Facilities Financing Authority RB DN 1985 Series A(DAGGER) 3.350% 09/07/97 ......................... $ 2,570 $ 2,570,000 Montgomery Special Care Facilities Financing Authority RB DN 1985 Series G(DAGGER) 3.350% 09/07/97 ......................... 1,075 1,075,000 Montgomery Special Care Facilities Hospital Authority RB DN 1985 Series D(DAGGER) 3.350% 09/07/97 ......................... 1,000 1,000,000 ----------- 4,645,000 ----------- ALASKA--1.3% Alaska Export and IDA RB Series 1984-5 DN(DAGGER) 3.350% 09/07/97 ......................... 1,990 1,990,000 Valdez Marine Terminal TECP (ARCO Transportation Alaska, Inc. Project) 3.750% 09/08/97 ......................... 4,300 4,300,000 ----------- 6,290,000 ----------- ARIZONA--1.1% Maricopa County PCR RB Arizona Public Service Co. DN(DAGGER) 3.700% 09/01/97 ......................... 2,000 2,000,000 Pima County IDA (Tuscon Electric Power Co. Project) Series 1983A DN(DAGGER) 3.350% 09/07/97 ......................... 3,500 3,500,000 ----------- 5,500,000 ----------- CALIFORNIA--8.6% California Higher Education Student Loan RB DN Series D-2(DAGGER) 4.000% 07/01/98 ......................... 4,000 4,000,000 Los Angeles County Series A TAN 4.500% 06/30/98 ......................... 28,000 28,144,960 PAR (000) VALUE -------- ------------ CALIFORNIA--(CONTINUED) Oakland CTFS Partnership Capital Equipment Project DN(DAGGER) 3.300% 09/07/97 ....................... $ 9,800 $ 9,800,000 ----------- 41,944,960 ----------- COLORADO--1.5% Moffat County PCR RB DN(DAGGER) 3.300% 09/07/97 ....................... 2,400 2,400,000 Colorado State General Fund TRAN Series A 4.500% 06/26/98 ....................... 5,000 5,025,537 ----------- 7,425,537 ----------- CONNECTICUT--0.6% Connecticut Special Assessment Unemployment Compensation Advance Fund (Connecticut Unemployment Project) Series 1993 C MB 3.900% 07/01/98(DOUBLE DAGGER) ........ 3,000 3,000,000 ----------- DELAWARE--0.6% The Delaware Economic Development Authority Gas Facilities (Delmarva Power & Light Project) Series 1993 C RB DN(DAGGER) 3.350% 09/07/97 ....................... 3,000 3,000,000 ----------- FLORIDA--1.5% Florida State Housing Finance Agency RB for Carlton Project DN, Series E(DAGGER) 3.300% 09/07/97 ....................... 1,500 1,500,000 Miami Health Facilities Authority DN (Jewish Home For The Aged Project)(DAGGER) 3.400% 09/07/97 ....................... 6,000 6,000,000 ----------- 7,500,000 ----------- See Accompanying Notes to Financial Statements. 6 THE JANNEY MONTGOMERY SCOTT MONEY FUNDS THE RBB FUND, INC. MUNICIPAL MONEY MARKET PORTFOLIO STATEMENT OF NET ASSETS (CONTINUED) AUGUST 31, 1997 PAR (000) VALUE -------- ----------- GEORGIA--4.4% Brunswick and Glynn IDA Sewage Facility RB DN (Georgia-Pacific Corp. Project) Series 1996(DAGGER) 3.500% 09/07/97 ........................... $ 5,000 $ 5,000,000 Burke County PCR RB MB (Oglethorpe Power Company)(DOUBLE DAGGER) 3.600% 12/01/97 ........................... 2,000 2,000,000 Carrollton Payroll Development Authority Certificates RAN(DAGGER) 3.500% 09/07/97 ........................... 6,125 6,125,000 Forsyth County IDA RB (American Boa, Inc. Project) DN(DAGGER) 3.400% 09/07/97 ........................... 3,000 3,000,000 Fulton County IDA RB DN (Charles J. Mackarich Project)(DAGGER) 3.500% 09/07/97 ........................... 3,500 3,500,000 Winder-Barrow Industrial Building Authority DN (Georgia Barrow Property Project)(DAGGER) 3.500% 09/07/97 ........................... 1,650 1,650,000 ----------- 21,275,000 ----------- HAWAII--0.7% Hawaii Department of Budget and Finance MB(DOUBLE DAGGER) 3.800% 09/09/97 ........................... 2,210 2,210,000 Hawaii Department of Budget and Finance TECP(DOUBLE DAGGER) 3.750% 10/09/97 ........................... 1,000 1,000,000 ----------- 3,210,000 ----------- ILLINOIS--11.7% Chicago O'Hare International Airport Special Facility RB DN(DAGGER) 3.400% 09/07/97 ........................... 5,700 5,700,000 Illinois Development Finance Authority (CHS Acquisition Corp. Project) DN(DAGGER) 3.650% 09/07/97 ........................... 5,035 5,035,000 Illinois Development Finance Authority Environmental Facilities RB DN (Citizens Utility Company, Project)(DAGGER) 3.400% 09/07/97 ........................... 6,000 6,000,000 PAR (000) VALUE -------- ----------- ILLINOIS--(CONTINUED) Illinois Development Finance Authority PCR RB DN (Commonwealth Edison Co. Project)(DAGGER) 3.350% 09/07/97 ........................... $12,200 $12,200,000 Illinois Development Financing Authority PCR (Illinois Power Co. Project) Series 1987 D DN(DAGGER) 3.500% 09/07/97 ........................... 900 900,000 Illinois Educational Facilities Authority RB (Field Museum of Natural History Project) Series 1985 DN(DAGGER) 3.350% 09/07/97 ........................... 2,000 2,000,000 Illinois Educational Facilities Authority University Polled Financing DN(DAGGER) 3.350% 09/07/97 ........................... 2,000 2,000,000 Illinois Health Facility Authority RB DN (Evanston Hospital Corp.) Series A(DOUBLE DAGGER) 3.850% 10/15/97 ........................... 3,000 3,000,000 Illinois Housing Development Finance Authority RB DN (Homeownership Mortgage Bonds)(DOUBLE DAGGER) 3.700% 12/18/97 ........................... 4,000 4,000,000 Illinois Health Facility Authority (Evanston Hospital Corp. Project) Series 1996 MB(DOUBLE DAGGER) 3.900% 07/31/98 ........................... 5,000 5,000,000 Illinois, University Of, The Board of Trustees Health Services Facilities System RB DN (A-1+, VMIG-1)(DAGGER) 3.300% 09/07/97 ........................... 7,600 7,600,000 Mundelein Industrial RB 1200 Town Line Road DN(DAGGER) 3.350% 09/07/97 ........................... 1,000 1,000,000 Village of Oak Forest DN (Homewood Pool) 3.350% 09/07/97 ........................... 2,600 2,600,000 ----------- 57,035,000 ----------- See Accompanying Notes to Financial Statements. 7 THE JANNEY MONTGOMERY SCOTT MONEY FUNDS THE RBB FUND, INC. MUNICIPAL MONEY MARKET PORTFOLIO STATEMENT OF NET ASSETS (CONTINUED) AUGUST 31, 1997 PAR (000) VALUE -------- ----------- INDIANA--8.2% Bremen IDA RB Series 1996 A (Universal Bearings, Inc. Project Private Placement) DN(DAGGER) 3.750% 09/07/97 ....................... $ 5,000 $ 5,000,000 Indiana Development Finance Authority IDA RB DN (Enterprise Center I Project)(DAGGER) 3.650% 09/07/97 ....................... 2,900 2,900,000 Indiana Development Finance Authority IDA RB DN (Enterprise Center II Project)(DAGGER) 3.650% 09/07/97 ....................... 5,000 5,000,000 Indiana Development Finance Authority IDA RB DN (Enterprise Center III Project)(DAGGER) 3.650% 09/07/97 ....................... 4,500 4,500,000 Indiana Development Finance Authority IDA RB DN (Enterprise Center IV Project)(DAGGER) 3.650% 09/07/97 ....................... 2,600 2,600,000 Indiana Development Finance Authority IDA RB DN (Enterprise Center VI Project)(DAGGER) 3.650% 09/07/97 ....................... 4,900 4,900,000 La Porte County Economic Development RB DN (Pedcor Investments - Woodland Crossing)(DAGGER) 3.450% 09/07/97 ....................... 2,000 2,000,000 Orleans Economic Development (Almana Limited Liability Co. Project) Series 1995 DN(DAGGER) 3.500% 09/07/97 ....................... 5,200 5,200,000 Portage Economic Development RB DN (Breckenridge Apartments Project)(DAGGER) 3.550% 09/07/97 ....................... 4,650 4,650,000 Tippecanoe County DN(DAGGER) 3.600% 09/07/97 ....................... 3,000 3,000,000 ----------- 39,750,000 ----------- PAR (000) VALUE -------- ----------- IOWA--1.4% Iowa Finance Authority IDA RB DN (Dixie Bedding Co. Project) Series 1995(DAGGER) 3.500% 09/07/97 ........................... $ 3,000 $ 3,000,000 Iowa Finance Authority IDA RB DN (Sauer-Sundstrand Co. Project)(DAGGER) 3.450% 09/07/97 ........................... 4,000 4,000,000 ----------- 7,000,000 ----------- KANSAS--2.8% Burlington PCR RB DN (Kansas City Power & Light) Series 1985B(DAGGER) 3.900% 10/10/97 ........................... 5,900 5,900,000 Lawrence County Project IDA RB DN Series A(DOUBLE DAGGER) 3.500% 09/04/97 ........................... 2,125 2,125,000 Shawnee IDA RB DN (Thrall Enterprises, Inc. Project)(DAGGER) 3.650% 09/07/97 ........................... 5,400 5,400,000 ----------- 13,425,000 ----------- KENTUCKY--3.2% Hopkinsville IDA RB (Douglas Autotech Corp. Project) Series 1995 DN(DAGGER) 3.650% 09/07/97 ........................... 7,700 7,700,000 Maysville Solid Waste Disposal Facilities RB (Inland Container Corp. Project) Series 1992 MB(DOUBLE DAGGER) 3.900% 09/12/97 ........................... 2,800 2,800,000 4.000% 01/23/98 ........................... 5,000 5,000,000 ----------- 15,500,000 ----------- LOUISIANA--1.3% East Baton Rouge (Resource Recovery Improvements Parish Pacific Corp. Project) DN(DAGGER) 3.700% 09/07/97 ........................... 6,500 6,500,000 ----------- See Accompanying Notes to Financial Statements. 8 THE JANNEY MONTGOMERY SCOTT MONEY FUNDS THE RBB FUND, INC. MUNICIPAL MONEY MARKET PORTFOLIO STATEMENT OF NET ASSETS (CONTINUED) AUGUST 31, 1997 PAR (000) VALUE -------- ----------- MARYLAND--3.6% Howard County Bluffs at Clary's Forest Apartment Facility Series 1995 DN(DAGGER) 3.550% 09/07/97 ........................... $ 5,735 $ 5,735,000 Maryland State Health & Higher Education Authority Doctors Community Hospital Issue DN(DAGGER) 3.490% 09/07/97 ........................... 7,800 7,800,000 University of Maryland RB Equipment Loan Program Series A DN(DAGGER) 3.300% 09/07/97 ........................... 3,900 3,900,000 ----------- 17,435,000 ----------- MASSACHUSETTS--0.4% Massachusetts Health and Education Facility Authority Capital Asset Program DN(DAGGER) 3.100% 09/07/97 ........................... 2,100 2,100,000 ----------- MICHIGAN--0.7% Michigan Strategic Fund Limited Obligation RB DN(DAGGER) 3.500% 09/07/97 ........................... 1,500 1,500,000 Wayne County Charter Airport RB DN Series B 3.400% 09/07/97 ........................... 2,000 2,000,000 ----------- 3,500,000 ----------- MISSOURI--3.6% Berkeley IDA RB DN (St. Louis Air Cargo Services, Inc. Project)(DAGGER) 3.600% 09/07/97 ........................... 5,225 5,225,000 Health and Education Facility Authority DN (Washington University)(DAGGER) 3.350% 09/07/97 ........................... 4,000 4,000,000 Kansas City IDA Facility RB (K.C. Air Cargo Services, Inc. Project) DN(DAGGER) 3.600% 09/07/97 ........................... 7,500 7,500,000 Kansas City IDA RB (Mid-America Health Services, Inc. Project) Series 1984 DN(DAGGER) 3.500% 09/07/97 ........................... 1,100 1,100,000 ----------- 17,825,000 ----------- PAR (000) VALUE ------- ----------- NEBRASKA--0.8% Lancaster (Sun-Husker Foods, Inc. Project) DN(DAGGER) 3.650% 09/07/97 ....................... $ 3,800 $ 3,800,000 ----------- NEVADA--1.1% Clark County Airport System Subordinate Lien RB DN Series 1995 A-1(DAGGER) 3.250% 09/07/97 ....................... 4,425 4,425,000 Clark County Airport System Subordinate Lien RB DN Series 1995 A-2(DAGGER) 3.450% 09/07/97 ....................... 880 880,000 ----------- 5,305,000 ----------- NEW HAMPSHIRE--2.9% New Hampshire Housing Finance Authority Multifamily RB (Countryside Project) DN(DAGGER) 3.350% 09/07/97 ....................... 14,405 14,405,000 ----------- NEW YORK--0.5% Triborough Bridge and Tunnel Authority DN(DAGGER) 3.150% 09/07/97 ....................... 2,300 2,300,000 ----------- NORTH CAROLINA--5.9% Charlotte Airport Refunding RB Series 1997A DN(DAGGER) 3.350% 09/07/97 ....................... 4,000 4,000,000 Mecklenburg County G.O. Series 1996C DN(DAGGER) 3.300% 09/07/97 ....................... 6,000 6,000,000 Mecklenburg County IDA and PCR (Edgecomb Metals Co. Project) Series 1984 DN(DAGGER) 3.350% 09/07/97 ....................... 3,800 3,800,000 North Carolina Health Care DN Series 1985(DAGGER) 3.550% 09/07/97 ....................... 1,100 1,100,000 North Carolina Medical Care Commission (Moses H. Cone Memorial Hospital Project) Series 1995 DN(DAGGER) 3.350% 09/07/97 ....................... 4,600 4,600,000 See Accompanying Notes to Financial Statements. 9 THE JANNEY MONTGOMERY SCOTT MONEY FUNDS THE RBB FUND, INC. MUNICIPAL MONEY MARKET PORTFOLIO STATEMENT OF NET ASSETS (CONTINUED) AUGUST 31, 1997 PAR (000) VALUE -------- ----------- NORTH CAROLINA--(CONTINUED) North Carolina Medical Care Community Hospital Lincoln Health System DN(DAGGER) 3.400% 09/07/97 ......................... $ 4,500 $ 4,500,000 Wake County Industrial Facility PCR DN (Carolina Power & Light Co.) Series B(DAGGER) 3.450% 09/07/97 ......................... 3,900 3,900,000 Wake County Industrial Facility PCR DN (Carolina Power & Light Co.) Series C(DAGGER) 3.450% 09/07/97 ......................... 700 700,000 ----------- 28,600,000 ----------- OHIO--2.9% Franklin County Hospital Facilities Refunding and Improvement RB DN (U.S. Health Corp. of Columbus(DAGGER) 3.350% 09/07/97 ......................... 1,900 1,900,000 Green County G.O. BAN 4.000% 03/26/98 ......................... 3,700 3,703,981 4.500% 05/07/98 ......................... 5,000 5,014,676 Mahoning County DN (Youngstown Iron & Metal Inc. Project)(DAGGER) 3.550% 09/07/97 ......................... 2,140 2,140,000 Scioto County VHA Central Inc. (Hospital Improvements Project) Series D DN(DAGGER) 3.350% 09/07/97 ......................... 1,655 1,655,000 ----------- 14,413,657 ----------- OKLAHOMA--0.4% Oklahoma Development Finance Authority (Shawnee Funding Limited) DN(DAGGER) 3.500% 09/07/97 ......................... 2,000 2,000,000 ----------- PENNSYLVANIA--2.3% Allegheny County PCR TECP Kansas City Power and Light 3.900% 10/10/97 ......................... 2,100 2,100,000 PAR (000) VALUE -------- ----------- PENNSYLVANIA--(CONTINUED) Bedford County IDA RB (Sepa, Inc. Facility Project) Series 1985 DN(DAGGER) 3.600% 09/07/97 ........................... $ 2,000 $ 2,000,000 Sayre Health Care Facilities Authority RB (VHA Capital Financing Project) Series 1985F DN(DAGGER) 3.300% 09/07/97 ........................... 2,200 2,200,000 Sayre Health Care Facility Authority (VHA Capital Financing Project) Series 1985 I DN(DAGGER) 3.300% 09/07/97 ........................... 300 300,000 Washington County Authority Lease Series 1985 DN(DAGGER) 3.300% 09/07/97 ........................... 4,600 4,600,000 ----------- 11,200,000 ----------- SOUTH DAKOTA--0.1% Lawrence County PCR RB (Homestate Mining Company Project) Series 1983 DN(DAGGER) 3.550% 09/07/97 ........................... 600 600,000 ----------- TENNESSEE--3.9% Clarksville Public Building Authority of Adjustable Rate Pooled Financing RB MB (Tennessee Municipal Bond Fund)(DOUBLE DAGGER) 3.400% 09/07/97 ........................... 4,800 4,800,000 Memphis General Improvement Refunding RB DN(DAGGER) 3.350% 09/07/97 ........................... 1,800 1,800,000 Metropolitan Nashville Airport Improvement DN(DAGGER) 3.350% 09/07/97 ........................... 2,770 2,770,000 Montgomery County Public Building Authority Loan Pool G.O. DN(DAGGER) 3.400% 09/07/97 ........................... 2,400 2,400,000 Oak Ridge Solid Waste Disposal Facility MB Series 1996 M4 (Environmental Project)(DOUBLE DAGGER) 3.500% 09/07/97 ........................... 5,100 5,100,000 See Accompanying Notes to Financial Statements. 10 THE JANNEY MONTGOMERY SCOTT MONEY FUNDS THE RBB FUND, INC. MUNICIPAL MONEY MARKET PORTFOLIO STATEMENT OF NET ASSETS (CONTINUED) AUGUST 31, 1997 PAR (000) VALUE -------- ----------- TENNESSEE--(CONTINUED) Tennessee Housing Development Authority (Single Family Program) MB (Escrowed In U.S. Treasuries)(DOUBLE DAGGER) 3.750% 02/19/98 ............................... $ 2,000 $ 2,000,000 ----------- 18,870,000 ----------- TEXAS--5.2% Denton IDA DN Hartzell Manufacturing Inc Project(DAGGER) 3.650% 09/07/97 ............................... 1,300 1,300,000 Mckinney City IDA RB DN (Delta Dailyfood Texas Inc., Project)(DAGGER) 3.500% 09/07/97 ............................... 7,500 7,500,000 South Texas Higher Education Authority Student Loan RB DN(DAGGER) 3.350% 09/07/97 ............................... 16,700 16,700,000 ----------- 25,500,000 ----------- UTAH--5.8% Intermountain Power Authority Supply Series 1985 F MB(DOUBLE DAGGER) 3.500% 09/15/97 ............................... 3,500 3,500,000 Salt Lake Airport RB DN(DAGGER) 3.300% 09/07/97 ............................... 900 900,000 Salt Lake City Flexible Rate RB DN (Pooled Hospital Financing Program)(DAGGER) 3.300% 09/07/97 ............................... 800 800,000 Utah County Environmental Improvement RB DN (USX Corp. Project)(DAGGER) 3.750% 01/15/98 ............................... 4,200 4,200,000 Utah State G.O. Highway TECP Notes Series 97B 3.800% 10/07/97 ............................... 11,000 11,000,000 Utah University Auxiliary and Campus Facilities Series 97 A RB DN(DAGGER) 3.450% 09/07/97 ............................... 8,000 8,000,000 ----------- 28,400,000 ----------- VIRGINIA--5.4% Capital Region Airport Commission (Richmond International Airport Project) Series 1995 C DN(DAGGER) 3.400% 09/07/97 ............................... 4,400 4,400,000 PAR (000) VALUE -------- ----------- VIRGINIA--(CONTINUED) Culpepper IDA Residential Care Facility RB DN(DAGGER) 3.400% 09/07/97 ............................... $ 1,470 $ 1,470,000 Louisa County IDA Pooled Financing Series 1995 DN(DAGGER) 3.400% 09/07/97 ............................... 1,000 1,000,000 Lynchburg IDA Hospital Facilities (Mid-Atlantic States Capital Asset Finance Project) Series 1985 G DN 3.350% 09/07/97 ............................... 2,800 2,800,000 Lynchburg IDA Hospital Facilities RB (VHA Mid-Atlantic States Capital Asset Finance Program) Series 1985B DN(DAGGER) 3.350% 09/07/97 ............................... 1,200 1,200,000 Metropolitan Washington D.C. Airports Authority Passenger Facility TECP 3.700% 09/26/97 ............................... 2,000 2,000,000 Peninsula Ports IDA RB (Allied Signal, Inc. Project) Series 1993 (Allied Signal Corp. Obligation) DN(DAGGER) 3.500% 09/07/97 ............................... 1,000 1,000,000 Roanoke City IDA Refunding Bonds DN (Cooper Industries, Inc. Project)(DAGGER) 3.500% 09/07/97 ............................... 10,000 10,000,000 Roanoke IDA Hospital RB (Carillon Health System Project) Series 1995D DN(DAGGER) 3.250% 09/07/97 ............................... 2,500 2,500,000 ----------- 26,370,000 ----------- WASHINGTON--0.4% Washington G.O. Bonds DN(DAGGER) 3.250% 09/07/97 ............................... 2,100 2,100,000 ----------- WEST VIRGINIA--0.7% Marshall County IDA (US/Canada Project) DN(DAGGER) 3.500% 09/07/97 ............................... 3,500 3,500,000 ----------- See Accompanying Notes to Financial Statements. 11 THE JANNEY MONTGOMERY SCOTT MONEY FUNDS THE RBB FUND, INC. MUNICIPAL MONEY MARKET PORTFOLIO STATEMENT OF NET ASSETS (CONCLUDED) AUGUST 31, 1997 PAR (000) VALUE -------- ----------- WISCONSIN--2.6% Wisconsin University Hospitals and Clinics Authority RB Series 1997 DN(DAGGER) 3.300% 09/07/97 ....................... $12,500 $ 12,500,000 ------------ WYOMING--0.4% Lincoln County PCR RB DN (Pacificorp Project)(DAGGER) 3.700% 09/07/97 ....................... 1,900 1,900,000 ------------ TOTAL INVESTMENTS AT VALUE--99.5% (Cost $485,624,154*) .................. 485,624,154 OTHER ASSETS IN EXCESS OF LIABILITIES--0.5% .................. 2,421,661 ------------ NET ASSETS (Applicable to 213,100,752 Bedford shares, 166,093,827 Bradford shares 96,943 Cash Preservation shares 108,825,135 Janney Montgomery Scott shares, and 800 other shares)--100.0% . $488,045,815 ============ NET ASSET VALUE, Offering and redemption price per share ($488,045,815 (DIVIDE) 488,117,457) ... $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, 1997 and the maturity 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 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. 12 THE JANNEY MONTGOMERY SCOTT MONEY FUNDS THE RBB FUND, INC. GOVERNMENT OBLIGATIONS MONEY MARKET PORTFOLIO STATEMENT OF NET ASSETS AUGUST 31, 1997 PAR (000) VALUE -------- ------------ AGENCY OBLIGATIONS--59.0% FEDERAL FARM CREDIT BANK--1.6% 5.510% 01/02/98 ............................... $10,000 $ 9,994,144 ------------ FEDERAL HOME LOAN BANK--3.4% 6.080% 04/16/98 ............................... 21,000 21,006,876 ------------ FEDERAL HOME LOAN MORTGAGE CORPORATION--25.9% 5.500% 09/02/97 ............................... 45,000 44,993,125 5.400% 09/11/97 ............................... 8,030 8,017,955 5.410% 09/11/97 ............................... 26,970 26,929,470 5.430% 09/22/97 ............................... 50,000 49,841,625 5.520% 11/06/97 ............................... 9,000 8,998,537 5.713% 03/13/98 ............................... 20,000 19,987,681 ------------ 158,768,393 ------------ FEDERAL NATIONAL MORTGAGE ASSOCIATION--20.8% 5.350% 09/02/97 ............................... 10,000 10,000,000 6.020% 09/05/97 ............................... 3,000 3,000,143 5.463% 09/12/97 ............................... 10,000 9,999,876 5.465% 09/30/97 ............................... 10,000 9,998,262 5.440% 12/15/97 ............................... 30,000 29,524,000 5.600% 01/16/98 ............................... 10,000 9,995,684 5.710% 03/18/98 ............................... 25,000 24,996,101 5.890% 05/21/98 ............................... 10,000 10,007,684 5.840% 06/18/98 ............................... 20,000 19,994,844 ------------ 127,516,594 ------------ STUDENT LOAN MARKETING ASSOCIATION(DAGGER) --6.3% 5.440% 09/02/97 ............................... 20,000 19,998,165 5.450% 09/02/97 ............................... 9,000 8,999,371 5.460% 09/02/97 ............................... 5,000 5,000,000 5.470% 09/02/97 ............................... 5,000 4,999,934 ------------ 38,997,470 ------------ WORLD BANK DISCOUNT NOTES--1.0% 5.410% 09/23/97 ............................... 6,100 6,079,833 ------------ TOTAL AGENCY OBLIGATIONS (Cost $362,363,310) ....................... 362,363,310 ------------ PAR (000) VALUE -------- ----------- REPURCHASE AGREEMENTS--40.7% Donaldson, Lufkin & Jenrette (Agreement dated 08/29/97 to be repurchased at $100,362,688, collateralized by $108,750,000 Federal Home Loan Mortgage Association 6.50% to 7.00% due 04/15/21 to 05/15/24. Market value of collateral is $103,313,588.) 5.625% 09/02/97 ............................... $ 100,300 $ 100,300,000 Greenwich Capital Markets Inc. (Agreement dated 08/29/97 to be repurchased at $100,062,444, collateralized by $265,604,910 Federal National Mortgage Association Strips Due 03/01/22 to 07/01/27. Market value of collateral is $103,001,687.) 5.620% 09/02/97 ............................... 100,000 100,000,000 Merrill Lynch (Agreement dated 08/29/97 to be repurchased at $50,030,722, collateralized by $172,262,022 Federal National Mortgage Association Strips Due 02/01/23 to 07/01/27. Market value of collateral is $51,500,518.) 5.530% 10/17/97 ............................... 50,000 50,000,000 ------------ TOTAL REPURCHASE AGREEMENTS (Cost $250,300,000) ....................... 250,300,000 ------------ See Accompanying Notes to Financial Statements. 13 THE JANNEY MONTGOMERY SCOTT MONEY FUNDS THE RBB FUND, INC. GOVERNMENT OBLIGATIONS MONEY MARKET PORTFOLIO STATEMENT OF NET ASSETS (CONCLUDED) AUGUST 31, 1997 VALUE ---------- TOTAL INVESTMENTS AT VALUE--99.7% (Cost $612,663,310*) ............................... $612,663,310 OTHER ASSETS IN EXCESS OF LIABILITIES--0.3% ............................... 1,568,901 ------------ NET ASSETS (Applicable to 209,685,630 Bedford shares, 51,608,040 Bradford shares, 352,951,307 Janney Montgomery Scott shares and 800 other shares)--100.0% .............................. $614,232,211 ============ NET ASSET VALUE, Offering and redemption price per share ($614,232,211 (DIVIDE) 614,245,777) ................ $1.00 ===== * Also cost for Federal income tax purposes. (DAGGER) Variable Rate Obligations -- The interest rate is the rate as of August 31, 1997 and the maturity date shown is the longer of the next interest readjustment date or the date the principal amount shown can be recovered through demand. See Accompanying Notes to Financial Statements. 14 THE JANNEY MONTGOMERY SCOTT MONEY FUNDS THE RBB FUND, INC. NEW YORK MUNICIPAL MONEY MARKET PORTFOLIO STATEMENT OF NET ASSETS AUGUST 31, 1997 PAR (000) VALUE -------- ----------- MUNICIPAL BONDS--99.6% NEW YORK--95.7% Alden, Town of, Erie County BAN for Water System 4.125% 03/26/98 ........................... $ 1,750 $1,753,090 Caledonia-Mumford Central School District BAN 4.250% 06/18/98 ........................... 3,000 3,008,063 Chautauqua County IDA (The Red Wing Company, Inc.) Series 1985 DN(DAGGER) 3.350% 09/04/97 ........................... 2,000 2,000,000 Clarence County Central School District TAN 1997 4.250% 06/30/98 ............................. 2,300 2,306,721 Colonie, Town of, Albany County Series 1996 D BAN 4.000% 11/25/97 ............................. 2,480 2,482,085 Elmira, City of, Chemung County BAN 1997 4.250% 06/30/98 ............................. 1,500 1,504,169 Geneva, City of, BAN 1997 4.250% 06/05/98 ............................. 2,072 2,075,882 Metropolitan Transportation Authority Commuter Facility Series 1991 DN(DAGGER) 3.350% 09/07/97 ............................. 13,000 13,000,000 Montgomery Town IDA DN(DAGGER) 3.600% 09/15/97 ............................. 1,300 1,300,000 New Paltz Central School District BAN 4.125% 06/15/98 ............................. 3,000 3,005,336 New York City Eagle Tax Exempt DN (Escrowed to Maturity in U.S. Treasuries)(DAGGER) 3.410% 09/04/97 ............................. 1,000 1,000,000 New York City G.O. 1995 Series F-4 DN(DAGGER) 3.250% 09/07/97 ............................. 1,000 1,000,000 New York City G.O. Bonds DN(DAGGER) 3.250% 09/07/97 ............................. 3,800 3,800,000 New York City G.O. Bonds DN(DAGGER) 3.250% 09/07/97 ............................. 3,600 3,600,000 New York City G.O. Bonds DN Series D(DAGGER) 3.350% 09/07/97 ............................. 1,200 1,200,000 PAR (000) VALUE -------- ---------- NEW YORK--(CONTINUED) New York City G.O. Bonds Fiscal 1995 Series F-3 DN(DAGGER) 3.250% 09/07/97 ............................. $ 800 $ 800,000 New York City G.O. Bonds Series 1993 Subseries A-10 DN(DAGGER) 3.750% 09/01/97 ............................. 200 200,000 New York City G.O. Bonds TECP(DOUBLE DAGGER) 3.650% 09/11/97 ............................. 4,300 4,300,000 New York City G.O. Series B TECP 3.750% 11/14/97 ............................. 2,000 2,000,000 New York City G.O. Series B-9 1995 TECP 3.750% 09/17/97 ............................. 2,000 2,000,000 New York City G.O. Series H-3 TECP 3.750% 09/17/97 ............................. 2,100 2,100,000 New York City G.O. TECP 3.600% 09/11/97 ............................. 2,500 2,500,000 New York City IDA Laguardia Airport DN(DAGGER) 3.250% 09/07/97 ............................. 1,000 1,000,000 New York City IDA RB DN (Field Hotel Project) (JFK Airport)(DAGGER) 3.250% 09/07/97 ............................. 600 600,000 New York City IDA RB DN Series V (Premier Sleep Project)(DAGGER) 3.350% 09/07/97 ............................. 950 950,000 New York City IDA RB DN Series X (Spreading Machine Exchange Project)(DAGGER) 3.350% 09/07/97 ............................. 750 750,000 New York City Municipal Water Finance Authority Series 3 TECP 3.800% 11/06/97 ............................. 4,200 4,200,000 New York City, G.O. Bonds DN(DAGGER) 3.750% 09/01/97 ............................. 100 100,000 New York Local Government Assistance Bonds DN(DAGGER) 3.150% 09/07/97 ............................. 4,100 4,100,000 New York Local Government Assistance Bonds DN(DAGGER) 3.200% 09/07/97 ............................. 100 100,000 New York Local Government DN(DAGGER) 3.200% 09/07/97 ............................. 300 300,000 See Accompanying Notes to Financial Statements. 15 THE JANNEY MONTGOMERY SCOTT MONEY FUNDS THE RBB FUND, INC. NEW YORK MUNICIPAL MONEY MARKET PORTFOLIO STATEMENT OF NET ASSETS (CONTINUED) AUGUST 31, 1997 PAR (000) VALUE -------- ---------- NEW YORK--(CONTINUED) New York State Dormitory Authority RB DN (Beverwyck Inc.)(DAGGER) 3.250% 09/03/97 ................................. $ 1,840 $1,840,000 New York State Energy Research & Development Authority Electric Facilities RB 1995 Series A DN (Long Island Lighting Company Project)(DAGGER) 3.400% 09/07/97 ................................. 2,000 2,000,000 New York State Energy Research & Development Authority PCR RB DN(DAGGER) 3.500% 09/07/97 ................................. 3,500 3,500,000 New York State Energy Research & Development Authority PCR RB MB(DOUBLE DAGGER) 3.600% 03/01/98 ................................. 1,500 1,500,000 New York State Energy Research & Development Authority Series 1987 B PCR (Niagara Mohawk) DN(DAGGER) 3.750% 09/01/97 ................................. 500 500,000 New York State Energy Research & Development Electric Facilities RB DN 1993 Series B (Long Island Lighting Co. Project)(DAGGER) 3.300% 09/07/97 ................................. 500 500,000 New York State Energy Research and Development (Niagara Mohawk) Series 1988A DN(DAGGER) 3.750% 09/01/97 ................................. 800 800,000 New York State Energy Research and Development Authority New York State Electric & Gas Series 1985-A(DOUBLE DAGGER) 3.650% 03/15/98 ................................. 3,000 3,000,000 New York State Housing Finance Agency (Normandie Court I Project) Series 1991 DN(DAGGER) 3.150% 09/07/97 ................................. 1,200 1,200,000 New York State Housing Finance Agency DN Series A (Mount Sinai School Of Medicine)(DAGGER) 3.400% 09/03/97 ................................. 1,000 1,000,000 PAR (000) VALUE -------- ---------- NEW YORK--(CONTINUED) New York State Housing Finance Agency Multi-Family Mortgage RB DN (Pleasant Creek Meadows Project)(DAGGER) 3.300% 09/07/97 ............................. $ 400 $ 400,000 New York State Housing Finance Agency Union Square South Housing RB 1996 Series A DN(DAGGER) 3.250% 09/07/97 ............................. 2,000 2,000,000 New York State Housing Finance Authority RB DN (250 West 50th Street Project) Series A(DAGGER) 3.300% 09/07/97 ............................. 3,000 3,000,000 New York State Job Development Authority DN Series 1984 D1 to D9(DAGGER) 3.950% 09/02/97 ............................. 55 55,000 New York State Job Development Authority DN Special Purpose Bonds Series 1984 G1 to G55(DAGGER) 3.950% 09/02/97 ............................. 120 120,000 New York State Job Development Authority DN Special Purpose Series 1986 A1 to A14(DAGGER) 4.050% 09/07/97 ............................. 460 460,000 New York State Job Development Authority DN Special Purpose Series C(DAGGER) 3.800% 09/02/97 ............................. 785 785,000 New York State Power MB(DOUBLE DAGGER) 3.500% 09/01/97 ............................. 1,500 1,500,000 New York State Thruway Authority General RB DN(DAGGER) 3.700% 09/07/97 ............................. 400 400,000 Onondaga County IDA RB DN (General Super Plating Co., Inc. Project)(DAGGER) 3.750% 09/07/97 ............................. 1,300 1,300,000 Port Authority of New York & New Jersey Versatile Structure Obligations DN(DAGGER) 3.600% 09/01/97 ............................. 1,800 1,800,000 See Accompanying Notes to Financial Statements. 16 THE JANNEY MONTGOMERY SCOTT MONEY FUNDS THE RBB FUND, INC. NEW YORK MUNICIPAL MONEY MARKET PORTFOLIO STATEMENT OF NET ASSETS (CONCLUDED) AUGUST 31, 1997 PAR (000) VALUE -------- ------------ NEW YORK--(CONTINUED) Saint Lawrence County IDA Environmental Improvement RB DN (Reynolds Metals Co.)(DAGGER) 3.200% 09/07/97 ........................... $ 1,600 $ 1,600,000 Smithtown Central School District TAN 4.100% 06/29/98 ........................... 1,000 1,001,573 Southeast, Town of, BAN 1997 4.250% 03/27/98 ........................... 1,810 1,814,937 Suffolk County IDA DN (Nissequogue Cogen) Series 1994(DAGGER) 3.300% 09/03/97 ........................... 3,600 3,600,000 Trust for Cultural Resources Bond (Carnegie Hall) Series 1990 DN(DAGGER) 3.200% 09/07/97 ........................... 100 100,000 ------------ 104,811,856 ------------ PUERTO RICO--3.9% Puerto Rico Government Development Bank 85 DN(DAGGER) 2.900% 09/03/97 ........................... 4,200 4,200,000 Puerto Rico Highway and Transportation Authority Series 1993x DN(DAGGER) 2.900% 09/07/97 ........................... 100 100,000 ------------ 4,300,000 ------------ VALUE ---------- TOTAL INVESTMENTS AT VALUE--99.6% (Cost $109,111,856*) ...................... $109,111,856 OTHER ASSETS IN EXCESS OF LIABILITIES--0.4% ...................... 476,271 ------------ NET ASSETS (Applicable to 79,156,885 Bedford shares, 30,443,053 Janney Montgomery Scott shares and 800 other shares)--100.0% ..................... $109,588,127 ============ NET ASSET VALUE, Offering and redemption price per share ($109,588,127 (DIVIDE) 109,600,738) ....... $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, 1997 and the maturity date shown is the longer of the next 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 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 RB ............................................................... Revenue Bond TAN ...................................................... Tax Anticipation Note TECP ............................................... Tax Exempt Commercial Paper TRAN ......................................... Tax and Revenue Anticipation Note See Accompanying Notes to Financial Statements. 17 THE JANNEY MONTGOMERY SCOTT MONEY FUNDS THE RBB FUND, INC. STATEMENTS OF OPERATIONS FOR THE YEAR ENDED AUGUST 31, 1997
GOVERNMENT NEW YORK MUNICIPAL OBLIGATIONS MUNICIPAL MONEY MARKET MONEY MARKET MONEY MARKET MONEY MARKET PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO ------------ ----------- ----------- ---------- Investment Income Interest ........................................... $137,348,046 $16,569,667 $31,972,074 $3,526,188 ------------ ----------- ----------- ---------- Expenses Investment advisory fees ........................... 8,969,561 1,470,648 2,421,186 346,748 Administration fees ................................ -- 448,548 -- 99,071 Distribution fees .................................. 10,841,715 2,606,546 3,435,186 541,772 Service organization fees .......................... 535,524 -- -- -- Directors' fees .................................... 49,983 9,175 11,967 2,013 Custodian fees ..................................... 396,951 94,626 107,578 29,453 Transfer agent fees ................................ 3,318,408 143,001 535,142 63,046 Legal fees ......................................... 104,755 19,208 25,058 4,218 Audit fees ......................................... 59,877 10,991 14,286 2,421 Registration fees .................................. 532,500 240,000 189,500 18,000 Insurance fees ..................................... 48,679 8,899 11,609 1,968 Printing fees ...................................... 489,378 71,800 83,824 6,874 Miscellaneous fees ................................. -- -- 475 282 ------------ ----------- ----------- ---------- 25,347,331 5,123,442 6,835,811 1,115,866 Less fees waived ................................... (3,616,431) (1,279,980) (647,063) (324,917) Less expense reimbursement by advisor .............. (469,986) (14,921) (404,193) -- ------------ ----------- ----------- ---------- Total expenses ................................ 21,260,914 3,828,541 5,784,555 790,949 ------------ ----------- ----------- ---------- Net investment income .............................. 116,087,132 12,741,126 26,187,519 2,735,239 Realized gain (loss) on investments ................ 22,330 (3,917) (1,291) -- ------------ ----------- ----------- ---------- Net increase in net assets resulting from operations $116,109,462 $12,737,209 $26,186,228 $2,735,239 ============ =========== =========== ==========
See Accompanying Notes to Financial Statements. 18 THE JANNEY MONTGOMERY SCOTT MONEY FUNDS THE RBB FUND, INC. STATEMENTS OF CHANGES IN NET ASSETS
MUNICIPAL MONEY MONEY MARKET PORTFOLIO MARKET PORTFOLIO --------------------------------- --------------------------------- FOR THE FOR THE FOR THE FOR THE YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED AUGUST 31, 1997 AUGUST 31, 1996 AUGUST 31, 1997 AUGUST 31, 1996 --------------- --------------- --------------- --------------- Increase (decrease) in net assets: Operations: Net investment income ................. $ 116,087,132 $ 100,027,983 $ 12,741,126 $ 12,196,171 Net gain (loss) on investments ....................... 22,330 (12,987) (3,917) (674) -------------- -------------- ------------ ------------ Net increase in net assets resulting from operations ......... 16,109,462 100,014,996 12,737,209 12,195,497 -------------- -------------- ------------ ------------ Distributions to shareholders: Dividends to shareholders from net investment income: Bedford shares .................... (56,929,832) (49,874,649) (5,758,068) (5,960,711) Bradford shares ................... -- -- (4,148,194) (3,611,114) Cash Preservation shares .......... (10,852) (10,092) (2,492) (3,746) Janney Montgomery Scott shares .......................... (29,943,530) (24,434,566) (2,832,323) (2,620,457) RBB shares ........................ (1,286) (2,630) (49) (143) Sansom Street shares .............. (29,201,632) (25,706,046) -- -- Dividends to shareholders from net realized short-term gains: Bedford shares .................... -- -- -- -- Bradford shares ................... -- -- -- -- Janney Montgomery Scott shares .................... -- -- -- -- -------------- -------------- ------------ ------------ Total dividends to shareholders ............... (116,087,132) (100,027,983) (12,741,126) (12,196,171) -------------- -------------- ------------ ------------ Net capital share transactions ........................ 504,179,861 374,464,737 67,161,386 (1,864,843) -------------- -------------- ------------ ------------ Total increase in net assets .......... 504,202,191 374,451,750 67,157,469 (1,865,517) Net Assets: Beginning of year ................... 2,195,823,438 1,821,371,688 420,888,346 422,753,863 -------------- -------------- ------------ ------------ End of year ......................... $2,700,025,629 $2,195,823,438 $488,045,815 $420,888,346 ============== ============== ============ ============
GOVERNMENT OBLIGATIONS NEW YORK MUNICIPAL MONEY MARKET PORTFOLIO MONEY MARKET PORTFOLIO --------------------------------- --------------------------------- FOR THE FOR THE FOR THE FOR THE YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED AUGUST 31, 1997 AUGUST 31, 1996 AUGUST 31, 1997 AUGUST 31, 1996 --------------- --------------- --------------- --------------- Increase (decrease) in net assets: Operations: Net investment income ................. $ 26,187,519 $ 25,224,326 $ 2,735,239 $ 2,109,149 Net gain (loss) on investments ....................... (1,291) (10,995) -- (5) ------------ ------------ ------------ ----------- Net increase in net assets resulting from operations ......... 26,186,228 25,213,331 2,735,239 2,109,144 ------------ ------------ ------------ ----------- Distributions to shareholders: Dividends to shareholders from net investment income: Bedford shares .................... (9,057,728) (8,829,111) (1,905,788) (1,686,204) Bradford shares ................... (2,084,419) (2,208,959) -- -- Cash Preservation shares .......... -- -- -- -- Janney Montgomery Scott shares .......................... (15,045,372) (14,186,256) (829,451) (422,945) RBB shares ........................ -- -- -- -- Sansom Street shares .............. -- -- -- -- Dividends to shareholders from net realized short-term gains: Bedford shares .................... -- (12,697) -- -- Bradford shares ................... -- (3,154) -- -- Janney Montgomery Scott shares .................... -- (18,204) -- -- ------------ ------------ ------------ ----------- Total dividends to shareholders ............... (26,187,519) (25,258,381) (2,735,239) (2,109,149) ------------ ------------ ------------ ----------- Net capital share transactions ........................ 57,686,497 44,099,699 21,439,314 13,146,285 ------------ ------------ ------------ ----------- Total increase in net assets .......... 57,685,206 44,054,649 21,439,314 13,146,280 Net Assets: Beginning of year ................... 556,547,005 512,492,356 88,148,813 75,002,533 ------------ ------------ ------------ ----------- End of year ......................... $614,232,211 $556,547,005 $109,588,127 $88,148,813 ============ ============ ============ ===========
See Accompanying Notes to Financial Statements. 19 THE JANNEY MONTGOMERY SCOTT MONEY FUNDS THE RBB FUND, INC. FINANCIAL HIGHLIGHTS (c) (FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
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 YEAR YEAR (COMMENCEMENT YEAR YEAR (COMMENCEMENT ENDED ENDED OF OPERATIONS) TO ENDED ENDED OF OPERATIONS) TO AUGUST 31, 1997 AUGUST 31, 1996 AUGUST 31, 1995 AUGUST 31, 1997 AUGUST 31, 1996 AUGUST 31, 1995 --------------- --------------- ----------------- --------------- --------------- ----------------- Net asset value, beginning of year .......... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 -------- -------- -------- -------- ------- -------- Income from investment operations: Net investment income .... 0.0459 0.0465 0.0112 0.0285 0.0278 0.0063 -------- -------- -------- -------- ------- -------- Total from investment operations ........... 0.0459 0.0465 0.0112 0.0285 0.0278 0.0063 -------- -------- -------- -------- ------- -------- Less distributions Dividends (from net investment income) ....... (0.0459) (0.0465) (0.0112) (0.0285) (0.0278) (0.0063) -------- -------- -------- -------- ------- -------- Total distributions .... (0.0459) (0.0465) (0.0112) (0.0285) (0.0278) (0.0063) -------- -------- -------- -------- ------- -------- Net asset value, end of year . $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 ======== ======== ======== ======== ======= ======== Total Return ................. 4.69% 4.76% 5.30%(b) 2.89% 2.81% 2.87%(b) Ratios /Supplemental Data Net assets, end of year (000) ............... $736,855 $561,865 $443,645 $108,826 $89,428 $113,256 Ratios of expenses to average net assets .... 1.00%(a) 1.00%(a) 1.00%(a)(b) 0.85%(a) 0.94%(a) 1.00%(a)(b) Ratios of net investment income to average net assets ............... 4.59% 4.65% 5.04%(b) 2.85% 2.78% 2.83%(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 1.22%, 1.23% and 1.23% for the years ended August 31, 1997, 1996 and 1995, respectively. For the Municipal Money Market Portfolio, the ratio of expenses to average net assets would have been 1.13%, 1.23% and 1.30% for the years ended August 31, 1997, 1996 and 1995, respectively. (b) Annualized. (c) Financial Highlights relate solely to the Janney Montgomery Scott Class of shares within each portfolio.
See Accompanying Notes to Financial Statements. 20 THE JANNEY MONTGOMERY SCOTT MONEY FUNDS THE RBB FUND, INC. FINANCIAL HIGHLIGHTS (c) (CONTINUED) (FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
GOVERNMENT OBLIGATIONS MONEY MARKET PORTFOLIO NEW YORK MUNICIPAL MONEY MARKET PORTFOLIO --------------------------------------------------- --------------------------------------------------- FOR THE PERIOD FOR THE PERIOD FOR THE FOR THE JUNE 12, 1995 FOR THE FOR THE JUNE 9, 1995 YEAR YEAR (COMMENCEMENT YEAR YEAR (COMMENCEMENT ENDED ENDED OF OPERATIONS) TO ENDED ENDED OF OPERATIONS) TO AUGUST 31, 1997 AUGUST 31, 1996 AUGUST 31, 1995 AUGUST 31, 1997 AUGUST 31, 1996 AUGUST 31, 1995 ---------------- --------------- ----------------- --------------- --------------- ----------------- Net asset value, beginning of year ........ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 -------- -------- -------- -------- -------- -------- Income from investment operations: Net investment income ...... 0.0447 0.0456 0.0109 0.0276 0.0262 0.0062 -------- -------- -------- -------- -------- -------- Total from investment operations ............ 0.0447 0.0456 0.0109 0.0276 0.0262 0.0062 -------- -------- -------- -------- -------- -------- Less distributions Dividends (from net investment income) ..... (0.0447) (0.0456) (0.0109) (0.0276) (0.0262) (0.0062) Total distributions ..... (0.0447) (0.0456) (0.0109) (0.0276) (0.0262) (0.0062) -------- -------- -------- -------- -------- -------- Net asset value, end of year .............. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 ======== ======== ======== ======== ======== ======== Total Return ............... 4.56% 4.66% 5.03%(b) 2.80% 2.65% 2.72%(b) Ratios /Supplemental Data Net assets, end of year (000) ............. $352,950 $306,757 $302,585 $30,442 $20,032 $14,671 Ratios of expenses to average net assets ..... 1.00%(a) 1.00%(a) 1.00%(a)(b) .80%(a) .93%(a) 1.00%(a)(b) Ratios of net investment income to average net assets ............. 4.47% 4.56% 4.91%(b) 2.76% 2.62% 2.68%(b) (a) For the Government Obligations Money Market Portfolio, the ratio of expenses to average net assets would have been 1.23%, 1.25% and 1.28% for years ended August 31, 1997, 1996 and 1995 respectively. For the New York Municipal Money Markey Portfolio, the ratio of expenses to average net assets would have been 1.13%, 1.25% and 1.28% for the years ended August 31, 1997, 1996 and 1995 respectively. (b) Annualized. (c) Financial Highlights relate solely to the Janney Montgomery Scott Class of shares within each portfolio.
See Accompanying Notes to Financial Statements. 21 THE JANNEY MONTGOMERY SCOTT MONEY FUNDS THE RBB FUND, INC. NOTES TO FINANCIAL STATEMENTS AUGUST 31, 1997 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 13.67 billion shares are currently classified into seventy-nine classes. Each class represents an interest in one of twenty 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 Janney Montgomery Scott Money Funds represents interests in four 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 are 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) NEW YORK MUNICIPAL OBLIGATIONS -- Certain New York state and New York City municipal obligations in the New York Municipal Money Market Portfolio may be obligations of issuers which rely in whole or in part on New York state or New York City revenues, real property taxes, revenues from health care institutions, or obligations secured by mortgages on real property. Consequently, the possible effect of economic conditions in New York or of changes in New York regulations on these obligations must be considered. 22 THE JANNEY MONTGOMERY SCOTT MONEY FUNDS THE RBB FUND, INC. NOTES TO FINANCIAL STATEMENTS (CONTINUED) AUGUST 31, 1997 NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) (G) 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. NOTE 2. TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES Pursuant to Investment Advisory Agreements, PNC Institutional Management Corp. ("PIMC"), a wholly-owned subsidiary of PNC Asset Management Group, Inc., which is in turn is a wholly-owned subsidiary of PNC Bank, National Association ("PNC Bank"), serves as investment advisor for the four 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. The New York Municipal Money Market Portfolio has no sub-advisor. For its advisory services, PIMC is entitled to receive the following fees, computed daily and payable monthly based on a portfolio's average daily net assets: PORTFOLIO ANNUAL RATE --------------------------- --------------------------------------------- Money Market and Government .45% of first $250 million of net assets; Obligations Money Market .40% of next $250 million of net assets; Portfolios .35% of net assets in excess of $500 million. Municipal Money Market and .35% of first $250 million of net assets; New York Municipal Money .30% of next $250 million of net assets; Market Portfolios .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, 1997, advisory fees and waivers for the four investment portfolios were as follows:
GROSS NET ADVISORY ADVISORY FEE WAIVER FEE ---------- ------------ ---------- Money Market Portfolio $8,969,561 $(3,603,130) $5,366,431 Municipal Money Market Portfolio 1,470,648 (1,269,553) 201,095 Government Obligations Money Market Portfolio 2,421,186 (647,063) 1,774,123 New York Municipal Money Market Portfolio 346,748 (324,917) 21,831
The investment advisor has agreed to reimburse each portfolio for the amount if any, by which the total operating and management expenses exceed the cap. For the year ended August 31, 1997, the reimbursed expenses were $469,986, $14,921 and $404,193 for the Money Market Portfolio, Municipal Money Market Portfolio and Government Obligations Money Market Portfolio, respectively. 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. 23 THE JANNEY MONTGOMERY SCOTT MONEY FUNDS THE RBB FUND, INC. NOTES TO FINANCIAL STATEMENTS (CONTINUED) AUGUST 31, 1997 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, 1997, transfer agency fees and waivers for each class of shares within the four investment portfolios were as follows:
GROSS NET TRANSFER AGENCY TRANSFER AGENCY FEE WAIVER FEE --------------- -------------- --------------- Money Market Portfolio Bedford Class $1,790,000 $ -- $1,790,000 Cash Preservation Class 10,311 (9,650) 661 Janney Montgomery Scott Class 1,201,086 -- 1,201,086 RBB Class 3,750 (3,651) 99 Sansom Street Class 313,261 -- 313,261 ---------- -------- ---------- Total Money Market Portfolio $3,318,408 $(13,301) $3,305,107 ========== ======== ========== Municipal Money Market Portfolio Bedford Class $ 110,433 $ -- $ 110,433 Bradford Class 7,350 -- 7,350 Cash Preservation Class 8,999 (8,682) 317 Janney Montgomery Scott Class 14,464 -- 14,464 RBB Class 1,755 (1,745) 10 ---------- -------- ---------- Total Municipal Money Market Portfolio $ 143,001 $(10,427) $ 132,574 ========== ======== ========== Government Obligations Money Market Portfolio Bedford Class $ 63,943 $ -- $ 63,943 Bradford Class 1,475 -- 1,475 Janney Montgomery Scott Class 469,724 -- 469,724 ---------- -------- ---------- Total Government Obligations Money Market Portfolio $ 535,142 $ -- $ 535,142 ========== ======== ========== New York Municipal Money Market Portfolio Bedford Class $ 59,116 $ -- $ 59,116 Janney Montgomery Scott Class 3,930 -- 3,930 ---------- -------- ---------- Total New York Municipal Money Market Portfolio $ 63,046 $ -- $ 63,046 ========== ======== ==========
In addition, PFPC serves as administrator for the Municipal Money Market and New York Municipal Money Market Portfolios. 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 year ended August 31, 1997, administration fees and waivers for the two portfolios were as follows: ADMINISTRATION FEE -------------- Municipal Money Market Portfolio $448,548 New York Municipal Money Market Portfolio 99,071 24 THE JANNEY MONTGOMERY SCOTT MONEY FUNDS THE RBB FUND, INC. NOTES TO FINANCIAL STATEMENTS (CONTINUED) AUGUST 31, 1997 NOTE 2. TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES (CONTINUED) The Fund, on behalf of each class of shares within the four 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 year ended August 31, 1997, distribution fees for each class were as follows: DISTRIBUTION FEE ------------- Money Market Portfolio Bedford Class $ 6,570,719 Cash Preservation Class 934 Janney Montgomery Scott Class 3,911,049 RBB Class 114 Sansom Street Class 358,899 ----------- Total Money Market Portfolio $10,841,715 =========== Municipal Money Market Portfolio Bedford Class $ 1,131,857 Bradford Class 876,050 Cash Preservation Class 366 Janney Montgomery Scott Class 598,266 RBB Class 7 ----------- Total Municipal Money Market Portfolio $ 2,606,546 =========== Government Obligations Money Market Portfolio Bedford Class $ 1,136,708 Bradford Class 278,374 Janney Montgomery Scott Class 2,020,104 ----------- Total Government Obligations Money Market Portfolio $ 3,435,186 =========== New York Municipal Money Market Portfolio Bedford Class $ 361,209 Janney Montgomery Scott Class 180,563 ----------- Total New York Municipal Money Market Portfolio $ 541,772 =========== 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, 1997, service organization fees were $535,524 for the Money Market Portfolio. Expenses include legal fees paid to counsel to the company, a partner of which is secretary of the company. Expenses include Administrative and 12B-1 fees paid to Counsellors, Inc. whose secretary is also a director of the company. 25 THE JANNEY MONTGOMERY SCOTT MONEY FUNDS THE RBB FUND, INC. NOTES TO FINANCIAL STATEMENTS (CONTINUED) AUGUST 31, 1997 NOTE 3. CAPITAL SHARES Transactions in capital shares (at $1 per capital share) for each year were as follows:
MUNICIPAL MONEY MARKET MONEY MARKET PORTFOLIO PORTFOLIO ---------------------------------- --------------------------------- FOR THE FOR THE FOR THE FOR THE YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED AUGUST 31, 1997 AUGUST 31, 1996 AUGUST 31, 1997 AUGUST 31, 1996 ---------------- --------------- --------------- --------------- VALUE VALUE VALUE VALUE ---------------- --------------- --------------- --------------- Shares sold: Bedford Class $ 4,513,203,668 $ 3,797,592,288 $ 1,075,834,153 $ 1,022,457,772 Bradford Class -- -- 586,482,906 479,401,891 Cash Preservation Class 175,000 122,344 82,717 171,907 Janney Montgomery Scott Class 3,087,651,502 2,359,936,867 406,706,164 408,374,271 RBB Class 4,744 584,206 200 69,480 Sansom Street Class 1,965,226,666 2,191,596,362 -- -- Shares issued in reinvestment of dividends: Bedford Class 55,886,643 49,290,088 5,696,659 5,847,767 Bradford Class -- -- 4,016,410 3,506,714 Cash Preservation Class 10,748 10,084 2,358 3,515 Janney Montgomery Scott Class 29,670,134 24,077,173 2,820,771 2,602,869 RBB Class 1,361 2,625 53 143 Sansom Street Class 20,645,930 18,389,361 -- -- Shares repurchased: Bedford Class (4,285,531,838) (3,673,362,904) (1,070,439,669) (1,024,790,222) Bradford Class -- -- (553,804,071) (464,445,579) Cash Preservation Class (145,893) (165,733) (103,897) (220,929) Janney Montgomery Scott Class (2,942,342,585) (2,265,789,890) (390,127,972) (434,775,023) RBB Class (67,517) (580,821) (5,396) (69,419) Sansom Street Class (1,940,208,702) (2,127,237,313) -- -- --------------- --------------- --------------- --------------- Net increase (decrease) $ 504,179,861 $ 374,464,737 $ 67,161,386 $ (1,864,843) =============== =============== =============== =============== Janney Montgomery Scott Shares authorized 700,000,000 700,000,000 200,000,000 200,000,000 =============== =============== =============== ===============
GOVERNMENT OBLIGATIONS NEW YORK MUNICIPAL MONEY MARKET PORTFOLIO MONEY MARKET PORTFOLIO --------------------------------- -------------------------------- FOR THE FOR THE FOR THE FOR THE YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED AUGUST 31, 1997 AUGUST 31, 1996 AUGUST 31, 1997 AUGUST 31, 1996 --------------- --------------- --------------- --------------- VALUE VALUE VALUE VALUE --------------- --------------- --------------- --------------- Shares sold: Bedford Class $ 606,875,958 $ 663,889,198 $ 314,988,541 $ 449,311,267 Bradford Class 171,813,924 180,761,217 -- -- Cash Preservation Class -- -- -- -- Janney Montgomery Scott Class 1,232,450,606 1,160,250,876 122,951,798 81,817,923 RBB Class -- -- -- -- Sansom Street Class -- -- -- -- Shares issued in reinvestment of dividends: Bedford Class 8,971,804 8,793,104 1,871,473 1,674,883 Bradford Class 2,002,758 2,158,629 -- -- Cash Preservation Class -- -- -- -- Janney Montgomery Scott Class 14,958,191 14,080,097 821,173 414,118 RBB Class -- -- -- -- Sansom Street Class -- -- -- -- Shares repurchased: Bedford Class (598,765,148) (643,470,937) (305,831,837) (443,200,310) Bradford Class (179,400,377) (172,234,746) -- -- Cash Preservation Class -- -- -- -- Janney Montgomery Scott Class (1,201,221,219) (1,170,127,739) (113,361,834) (76,871,596) RBB Class -- -- -- -- Sansom Street Class -- -- -- -- --------------- --------------- -------------- ------------- Net increase (decrease) $ 57,686,497 $ 44,099,699 $ 21,439,314 $ 13,146,285 =============== =============== ============== ============= Janney Montgomery Scott Shares authorized 500,000,000 500,000,000 100,000,000 100,000,000 =============== =============== ============== =============
26 THE JANNEY MONTGOMERY SCOTT MONEY FUNDS THE RBB FUND, INC. NOTES TO FINANCIAL STATEMENTS (CONTINUED) AUGUST 31, 1997 NOTE 4. NET ASSETS At August 31, 1997, net assets consisted of the following:
GOVERNMENT NEW YORK MUNICIPAL OBLIGATIONS MUNICIPAL MONEY MARKET MONEY MARKET MONEY MARKET MONEY MARKET PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO -------------- ------------ ------------ ------------ Capital paid-in Bedford Class $1,392,910,207 $213,100,752 $209,685,630 $ 79,156,885 Bradford Class -- 166,093,827 51,608,040 -- Cash Preservation Class 242,215 96,943 -- -- Janney Montgomery Scott Class 736,852,298 108,825,135 352,951,307 30,443,053 Sansom Street Class 570,031,293 -- -- -- Other Classes 800 800 800 800 Accumulated net realized gain (loss) on investments Bedford Class (5,881) (71,513) (4,689) (12,592) Bradford Class -- (994) (1,369) -- Cash Preservation Class (1) 4 -- -- Janney Montgomery Scott Class (1,727) 861 (7,508) (19) Sansom Street Class (3,575) -- -- -- -------------- ------------ ------------ ------------ $2,700,025,629 $488,045,815 $614,232,211 $109,588,127 ============== ============ ============ ============
NOTE 5. CAPITAL LOSS CARRYOVERS At August 31, 1997, capital loss carryovers were available to offset future realized gains as follows: $11,184 in the Money Market Portfolio of which $11,184 expires in 2004; $71,642 in the Municipal Money Market Portfolio of which $55,760 expires in 1999, $444 expires in 2000, $1,058 expires in 2001, $9,789 expires in 2002, $674 expires in 2004, and $3,917 expires in 2005; $13,566 in the Government Obligations Money Market Portfolio of which $12,275 expires in 2004, and $1,291 expires in 2005; and $12,611 in the New York Municipal Money Market Portfolio of which $10,939 expires in 1998, $1,256 expires in 1999, $322 expires in 2002, $89 expires in 2003 and $5 expires in 2004. 27 THE JANNEY MONTGOMERY SCOTT MONEY FUNDS THE RBB FUND, INC. NOTES TO FINANCIAL STATEMENTS (CONTINUED) AUGUST 31, 1997 NOTE 6. OTHER FINANCIAL HIGHLIGHTS The Fund currently offers four other classes of shares representing interests in the Money Market Portfolio: Bedford, Cash Preservation, Bradford and Sansom Street. The Fund currently offers three other classes of shares representing interests in the Municipal Money Market Portfolio: Bedford, Bradford and Cash Preservation. The Fund currently offers two other classes of shares representing interests in the Government Obligations Money Market Portfolio: Bedford and Bradford. The Fund currently offers one other class of shares representing an interest in the New York Municipal Money Market Portfolio: Bedford. Each class is marketed to different types of investors. Financial Highlights of the Cash Preservation Class is not presented in this report due to its immateriality. Such information is available in the annual report of its respective family. The financial highlights of certain of the other classes are as follows: THE BEDFORD FAMILY
MONEY MARKET PORTFOLIO ------------------------------------------------------------- FOR THE FOR THE FOR THE FOR THE FOR THE YEAR YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED AUGUST 31, AUGUST 31, AUGUST 31, AUGUST 31, AUGUST 31, 1997 1996 1995 1994 1993 ---------- ---------- ---------- ---------- ---------- Net asset value, beginning of year ..... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 ---------- ---------- -------- -------- -------- Income from investment operations: Net investment income ................ 0.0462 0.0469 0.0486 0.0278 0.0243 ---------- ---------- -------- -------- -------- Total from investment operations ..................... 0.0462 0.0469 0.0486 0.0278 0.0243 ---------- ---------- -------- -------- -------- Less distributions Dividends (from net investment income) ............................ (0.0462) (0.0469) (0.0486) (0.0278) (0.0243) ---------- ---------- -------- -------- -------- Total distributions .............. (0.0462) (0.0469) (0.0486) (0.0278) (0.0243) ---------- ---------- -------- -------- -------- Net asset value, end of year ........... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 ========== ========== ======== ======== ======== Total Return ........................... 4.72% 4.79% 4.97% 2.81% 2.46% Ratios /Supplemental Data Net assets, end of year (000) ........ $1,392,911 $1,109,334 $935,821 $710,737 $782,153 Ratios of expenses to average net assets ......................... .97%(a) .97%(a) .96%(a) .95%(a) .95%(a) Ratios of net investment income to average net assets ................. 4.62% 4.69% 4.86% 2.78% 2.43%
MUNICIPAL MONEY MARKET PORTFOLIO ----------------------------------------------------------- FOR THE FOR THE FOR THE FOR THE FOR THE YEAR YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED AUGUST 31, AUGUST 31, AUGUST 31, AUGUST 31, AUGUST 31, 1997 1996 1995 1994 1993 ---------- ---------- ---------- ----------- ---------- Net asset value, beginning of year ..... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 -------- -------- -------- -------- -------- Income from investment operations: Net investment income ................ 0.0285 0.0288 0.0297 0.0195 0.0195 -------- -------- -------- -------- -------- Total from investment operations ..................... 0.0285 0.0288 0.0297 0.0195 0.0195 -------- -------- -------- -------- -------- Less distributions Dividends (from net investment income) ............................ (0.0285) (0.0288) (0.0297) (0.0195) (0.0195) -------- -------- -------- -------- -------- Total distributions .............. (0.0285) (0.0288) (0.0297) (0.0195) (0.0195) -------- -------- -------- -------- -------- Net asset value, end of year ........... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 ======== ======== ======== ======== ======== Total Return ........................... 2.88% 2.92% 3.01% 1.97% 1.96% Ratios /Supplemental Data Net assets, end of year (000) ........ $213,034 $201,940 $198,425 $182,480 $215,577 Ratios of expenses to average net assets ......................... .85%(a) .84%(a) .82%(a) .77%(a) .77%(a) Ratios of net investment income to average net assets ................. 2.85% 2.88% 2.97% 1.95% 1.95% (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 1.12%, 1.14%, 1.17%, 1.16% and 1.19% for the years ended August 31, 1997, 1996, 1995, 1994 and 1993, respectively. For the Municipal Money Market Portfolio, the ratios of expenses to average net assets would have been 1.14%, 1.12%, 1.14%, 1.12% and 1.16% for the years ended August 31, 1997, 1996, 1995, 1994 and 1993, respectively.
28 THE JANNEY MONTGOMERY SCOTT MONEY FUNDS THE RBB FUND, INC. NOTES TO FINANCIAL STATEMENTS (CONTINUED) AUGUST 31, 1997 THE BEDFORD FAMILY
GOVERNMENT OBLIGATIONS MONEY MARKET PORTFOLIO ------------------------------------------------------------- FOR THE FOR THE FOR THE FOR THE FOR THE YEAR YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED AUGUST 31, AUGUST 31, AUGUST 31, AUGUST 31, AUGUST 31, 1997 1996 1995 1994 1993 ---------- ---------- ---------- ---------- ---------- Net asset value, beginning of year ..... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 -------- -------- -------- -------- -------- Income from investment operations: Net investment income ................ 0.0449 0.0458 0.0475 0.0270 0.0231 -------- -------- -------- -------- -------- Total from investment operations ..................... 0.0449 0.0458 0.0475 0.0270 0.0231 -------- -------- -------- -------- -------- Less distributions Dividends (from net investment income) ............................ (0.0449) (0.0458) (0.0475) (0.0270) (0.0231) -------- -------- -------- -------- -------- Total distributions .............. (0.0449) (0.0458) (0.0475) (0.0270) (0.0231) -------- -------- -------- -------- -------- Net asset value, end of year ........... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 ======== ======== ======== ======== ======== Total Return ........................... 4.59% 4.68% 4.86% 2.73% 2.33% Ratios /Supplemental Data Net assets, end of year (000) ........ $209,715 $192,599 $163,398 $166,418 $213,741 Ratios of expenses to average net assets ......................... .975%(a) .975%(a) .975%(a) .975%(a) .975%(a) Ratios of net investment income to average net assets ................. 4.49% 4.58% 4.75% 2.70% 2.31%
NEW YORK MUNICIPAL MONEY MARKET PORTFOLIO ----------------------------------------------------------- FOR THE FOR THE FOR THE FOR THE FOR THE YEAR YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED AUGUST 31, AUGUST 31, AUGUST 31, AUGUST 31, AUGUST 31, 1997 1996 1995 1994 1993 ---------- ---------- ---------- ----------- ---------- Net asset value, beginning of year ..... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 ------- ------- -------- -------- ------- Income from investment operations: Net investment income ................ 0.0276 0.0278 0.0290 0.0198 0.0234 ------- ------- -------- -------- ------- Total from investment operations ..................... 0.0276 0.0278 0.0290 0.0198 0.0234 ------- ------- -------- -------- ------- Less distributions Dividends (from net investment income) ............................ (0.0276) (0.0278) (0.0290) (0.0198) (0.0234) ------- -------- -------- -------- ------- Total distributions .............. (0.0276) (0.0278) (0.0290) (0.0198) (0.0234) ------- ------- -------- -------- ------- Net asset value, end of year ........... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 ======= ======= ======== ======= ======= Total Return ........................... 2.80% 2.83% 2.94% 2.00% 2.37% Ratios /Supplemental Data Net assets, end of year (000) ........ $79,146 $68,116 $60,330 $52,222 $55,677 Ratios of expenses to average net assets ......................... .80%(a) .78%(a) .76%(a) .50%(a) .14%(a) Ratios of net investment income to average net assets ................. 2.76% 2.78% 2.90% 1.98% 2.34% (a) Without the waiver of advisory, distribution and administration 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 1.09%, 1.10%, 1.13%, 1.17% and 1.18% for the years ended August 31, 1997, 1996, 1995, 1994 and 1993, respectively. For the New York Municipal Money Market Portfolio, the ratios of expenses to average net assets would have been 1.13%, 1.14%, 1.22%, 1.20% and 1.20% for the years ended August 31, 1997, 1996, 1995, 1994 and 1993, respectively.
29 THE JANNEY MONTGOMERY SCOTT MONEY FUNDS THE RBB FUND, INC. NOTES TO FINANCIAL STATEMENTS (CONTINUED) AUGUST 31, 1997 BRADFORD GOVERNMENT OBLIGATIONS MONEY MARKET SHARES
FOR THE FOR THE FOR THE FOR THE FOR THE YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED AUGUST 31, 1997 AUGUST 31, 1996 AUGUST 31, 1995 AUGUST 31, 1994 AUGUST 31, 1993 --------------- --------------- --------------- --------------- --------------- Net asset value, beginning of year ....... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 --------------- --------------- --------------- --------------- --------------- Income from investment operations: Net investment income .................. 0.0449 0.0458 0.0475 0.0270 0.0231 --------------- --------------- --------------- --------------- --------------- Total from investment operations ... 0.0449 0.0458 0.0475 0.0270 0.0231 --------------- --------------- --------------- --------------- --------------- Less distributions Dividends (from net investment income).. (0.0449) (0.0458) (0.0475) (0.0270) (0.0231) --------------- --------------- --------------- --------------- --------------- Total distributions ................ (0.0449) (0.0458) (0.0475) (0.0270) (0.0231) --------------- --------------- --------------- --------------- --------------- Net asset value, end of year ............. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 =============== =============== =============== =============== =============== Total Return ............................. 4.59% 4.68% 4.86% 2.73% 2.33% Ratios /Supplemental Data Net assets, end of year (000) .......... $51,608 $57,190 $46,509 $39,732 $50,523 Ratios of expenses to average net assets .975%(a) .975%(a) .975%(a) .975%(a) .975%(a) Ratios of net investment income to average net assets ................... 4.49% 4.58% 4.75% 2.70% 2.31% (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 1.09%, 1.10%, 1.13%, 1.18% and 1.18% for the years ended August 31, 1997, 1996, 1995, 1994 and 1993, respectively.
30 THE JANNEY MONTGOMERY SCOTT MONEY FUNDS THE RBB FUND, INC. NOTES TO FINANCIAL STATEMENTS (CONTINUED) AUGUST 31, 1997 NOTE 6. OTHER FINANCIAL HIGHLIGHTS (CONTINUED) BRADFORD MUNICIPAL MONEY MARKET SHARES
FOR THE FOR THE FOR THE FOR THE FOR THE YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED AUGUST 31, 1997 AUGUST 31, 1996 AUGUST 31, 1995 AUGUST 31, 1994 AUGUST 31, 1993 --------------- --------------- --------------- --------------- --------------- Net asset value, beginning of year ........ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 --------------- --------------- --------------- --------------- --------------- Income from investment operations: Net investment income ................... 0.0285 0.0288 0.0297 0.0195 0.0195 --------------- --------------- --------------- --------------- --------------- Total from investment operations ...... 0.0285 0.0288 0.0297 0.0195 0.0195 --------------- --------------- --------------- --------------- --------------- Less distributions Dividends (from net investment income) .. (0.0285) (0.0288) (0.0297) (0.0195) (0.0195) --------------- --------------- --------------- --------------- --------------- Total distributions ................... (0.0285) (0.0288) (0.0297) (0.0195) (0.0195) --------------- --------------- --------------- --------------- --------------- Net asset value, end of year .............. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 =============== =============== =============== =============== =============== Total Return .............................. 2.88% 2.92% 3.01% 1.97% 1.96% Ratios /Supplemental Data Net assets, end of year (000) ........... $166,089 $129,399 $110,936 $100,089 $76,975 Ratios of expenses to average net assets .85%(a) .84%(a) .82%(a) .77%(a) .77%(a) Ratios of net investment income to average net assets .................... 2.85% 2.88% 2.97% 1.95% 1.95% (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 would have been 1.14%, 1.12%, 1.14%, 1.11% and 1.16% for the years ended August 31, 1997, 1996, 1995, 1994 and 1993, respectively.
31 THE JANNEY MONTGOMERY SCOTT MONEY FUNDS THE RBB FUND, INC. NOTES TO FINANCIAL STATEMENTS (CONCLUDED) AUGUST 31, 1997 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, 1997 AUGUST 31, 1996 AUGUST 31, 1995 AUGUST 31, 1994 AUGUST 31, 1993 --------------- --------------- --------------- --------------- --------------- Net asset value, beginning of year $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 ---------- ---------- ---------- ---------- ---------- Income from investment operations: Net investment income 0.0510 0.0518 0.0543 0.0334 0.0304 ---------- ---------- ---------- ---------- ---------- Total from investment operations 0.0510 0.0518 0.0543 0.0334 0.0304 ---------- ---------- ---------- ---------- ---------- Less distributions Dividends (from net investment income) (0.0510) (0.0518) (0.0543) (0.0334) (0.0304) ---------- ---------- ---------- ---------- ---------- Total distributions (0.0510) (0.0518) (0.0543) (0.0334) (0.0304) ---------- ---------- ---------- ---------- ---------- Net asset value, end of year $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 ========== ========== ========== ========== ========== Total Return 5.22% 5.30% 5.57% 3.39% 3.08% Ratios /Supplemental Data Net assets, end of year (000) $570,018 $524,359 $441,614 $373,745 $190,794 Ratios of expenses to average net assets .49%(a) .48%(a) .39%(a) .39%(a) .34%(a) Ratios of net investment income to average net assets 5.10% 5.18% 5.43% 3.34% 3.04% (a) Without the waiver of advisory 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 .64%, .65%, .59%, .60% and .60% for the years ended August 31, 1997, 1996, 1995, 1994 and 1993, respectively.
NOTE 7. SUBSEQUENT EVENT: On October 1, 1997, the Municipal Money Market Portfolio's Bradford Class of 168,177,203 shares and theGovernment ObligationPortfolio's Bradford Class of 44,971,583 shares were liquidated. 32 TAX INFORMATION FOR SHAREHOLDERS (UNAUDITED) In the twelve months ended August 31, 1997 (the end of the Fund's fiscal year), 100% of the dividends paid by the Municipal Money Market and New York Municipal Money Market Portfolios were exempt-interest dividends for purposes of federal income taxes and free from such taxes. However, approximately 49% and 17% of such dividends was attributable to interest on private activity bonds which must be included in federal alternative minimum taxable income for the purpose of determining liability for federal alternative minimum tax. In January 1998, you will be furnished with a schedule showing the yearly percentage breakdown by state or U.S. possession of the source of interest earned by the Municipal Money Market and New York Municipal Money Market Portfolios in 1997. It is suggested that you consult your tax adviser concerning the applicability of state and local taxes to dividends paid by the Fund during the year. 33 [THIS PAGE INTENTIONALLY LEFT BLANK] ================================================================================ INVESTMENT ADVISER PNC Institutional Management Corporation Wilmington, Delaware CUSTODIAN PNC Bank, National Association Philadelphia, Pennsylvania ADMINISTRATOR AND TRANSFER AGENT PFPC Inc. Wilmington, Delaware COUNSEL Drinker Biddle & Reath L.L.P. Philadelphia, Pennsylvania INDEPENDENT ACCOUNTANTS Coopers & Lybrand L.L.P. Philadelphia, Pennsylvania ================================================================================ -----END PRIVACY-ENHANCED MESSAGE-----