-----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, CfclvGYO11JFgI5yy8lmOrpTNsiDA7sa0EFhXvgUfUyC0Chh529x7OOk1Tpnx0PG GP+mbRHDnVTFU29vWjHdpg== 0000935069-98-000072.txt : 19980505 0000935069-98-000072.hdr.sgml : 19980505 ACCESSION NUMBER: 0000935069-98-000072 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19980228 FILED AS OF DATE: 19980504 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: 98609546 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 SEMI-ANNUAL REPORT ============================ LOGO (GRAPHIC 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 --------------------------- SEMI-ANNUAL REPORT FEBRUARY 28, 1998 ============================ THE JANNEY MONTGOMERY SCOTT MONEY FUNDS THE RBB FUND, INC. SEMI-ANNUAL INVESTMENT ADVISER'S REPORT Market participants were pleasantly surprised last year as the stock market again racked up double digit gains, the bond market saw long-term interest rates fall to near record lows and money market fund assets grew by 20% to over $1 trillion. Early in 1997, these robust results were not widely expected. The nation's economy was expanding at almost a 5% pace and higher prices for goods and services were clearly anticipated. The Federal Reserve seemed biased towards tightening monetary policy, in what they suggested would be a preemptive move against future inflationary pressures. On March 25, the Fed raised short-term rates by 25 basis points to 5.50% and with the benefit of perfect hindsight, their action clearly achieved the desired results. The economy slowed to a 3.1% pace in the third quarter and 3.9% in the fourth quarter, while inflation fell to its lowest level in a decade. Wholesale prices, in fact, actually declined 1.2% in 1997, while consumer prices rose only 1.7%. As the year came to an end, the financial crisis among the Asian economies became a significant influencer of global economics and the direction of interest rates. U.S. fixed income securities did well, as a flight to quality and safety unfolded. In January, the 30-year treasury bond fell to a record low of 5.70%. Sentiment towards monetary policy also shifted, given Mr. Greenspan's comments about deflation, and some Fed watchers even began to talk about the possibility of an easing of monetary policy. Short-term taxable interest rates traded in a narrow range in 1997, as the Federal Reserve made only one change to monetary policy. Early in the year, the yield curve inside of one year was positively sloped, reflecting the widely held view that the Fed would tighten monetary policy. While overnight rates held near 5.50%, one-year maturities reached a peak near 6.25%. This scenario encouraged the funds to extend portfolio maturities to the 50-60 day range. The second half of the year, however, was a different story. Low inflation and the concerns over the Asian crisis precipitated a significant flattening of the money market yield curve. The 50-75 basis point spread available earlier in the year declined to 10-15 basis points in the fourth and early first quarters. The Treasury market experienced an even more dramatic shift, as the yield curve inverted. Portfolio maturities were shortened in this environment, with particular focus given to issuer credit quality and the deteriorating Asian economies. At the end of February, assets in the Money Market Portfolio stood at $3,013,021,180, increasing from $2,700,025,629 last August. Tax-exempt yields showed continued volatility during the latter half of 1997 as seasonal pressures and supply and demand factors dominated the market. Quarter-end window dressing pressures forced variable rate yields higher on a temporary basis, while the payments of quarterly Treasury bond coupon interest supplied cash to the market, driving yields down. Corporations were also active participants in the tax-free money markets, purchasing municipals when they were attractive on an after-tax basis, and liquidating them when tax-free rates declined. Investment strategy during the period emphasized a laddered maturity approach, in anticipation of seasonal fund asset volatility. Variable rate demand notes generally comprised 55-65% of the Fund's two tax-free portfolios, as these securities offered liquidity to meet fund activity while also providing attractive yields. During the six months ended February 28, yields on variable rate securities ranged from a high of 4.12% on December 24, 1997 to a low of 2.81% on February 11, 1998. General market note purchases increased during the period as supply grew and yields increased. Due to an unchanged Fed policy during the last six months of the year, notes traded in a narrow range of 35 basis points, between 3.51% and 3.86%. At the end of February, total net assets in the Municipal Money Market Portfolio and the New York Municipal Money Market Portfolio were $320,583,285 and $134,780,211, respectively. The investment strategy for both funds emphasized liquidity in anticipation of expected redemptions this spring. The average weighted maturities of Municipal and New York Municipal Money Market Portfolios, therefore, have been shorter than the index and at the end of the period stood at 36 and 18 days, respectively. PNC Institutional Management Corporation (Please dial toll-free 800-677-6310 for questions regarding your account or contact your broker.) THE JANNEY MONTGOMERY SCOTT MONEY FUNDS THE RBB FUND, INC. MONEY MARKET PORTFOLIO STATEMENT OF NET ASSETS FEBRUARY 28, 1998 (UNAUDITED) PAR (000) VALUE -------- ------------ AGENCY OBLIGATIONS--0.7% Student Loan Marketing Association(DAGGER) 5.718% 03/03/98 ........................ $ 10,000 $ 10,000,000 5.728% 03/03/98 ........................ 10,000 10,000,000 ------------ TOTAL AGENCY OBLIGATIONS (Cost $20,000,000) ................. 20,000,000 ------------ CERTIFICATES OF DEPOSIT--17.4% BANK NOTES--3.3% First National Bank of Boston 5.700% 04/06/98 ........................ 25,000 25,000,000 5.800% 04/27/98 ........................ 75,000 75,000,000 ------------ 100,000,000 ------------ BANKS--2.2% Banque Paribas 5.530% 05/04/98 ........................ 25,000 24,998,560 Credit Suisse 6.240% 04/08/98 ........................ 40,000 40,007,055 ------------ 65,005,615 ------------ DOMESTIC CERTIFICATES OF DEPOSIT--5.0% Bankers Trust Co. 5.980% 06/19/98 ........................ 50,000 49,997,155 5.820% 07/31/98 ........................ 25,000 24,997,025 5.880% 08/11/98 ........................ 25,000 24,996,796 Chase Manhattan Bank-Delaware 5.710% 03/09/98 ........................ 50,000 50,000,000 ------------ 149,990,976 ------------ YANKEE DOLLAR CERTIFICATES OF DEPOSIT--6.9% Banque Nationale de Paris 5.860% 08/10/98 ........................ 25,000 24,993,635 Banque Paribas 5.560% 05/26/98 ........................ 25,000 25,000,000 Canadian Imperial Bank of Commerce 5.660% 02/26/99 ........................ 40,000 39,980,989 Deutsche Bank 6.000% 03/25/98 ........................ 50,000 50,005,942 Royal Bank of Canada 6.200% 04/06/98 ........................ 19,000 19,002,366 5.940% 06/25/98 ........................ 25,000 24,995,439 PAR (000) VALUE -------- ------------ YANKEE DOLLAR CERTIFICATES OF DEPOSIT--(CONTINUED) Societe Generale 5.780% 10/08/98 ............................ $ 125,000 $ 24,974,541 ------------ 208,952,912 ------------ TOTAL CERTIFICATES OF DEPOSIT (Cost $523,949,503) .................... 523,949,503 ------------ COMMERCIAL PAPER--51.1% ASSET BACKED SECURITIES--7.8% CXC, Inc. 5.470% 04/01/98 ............................ 50,000 49,764,486 5.470% 04/20/98 ............................ 50,000 49,620,139 Receivables Capital Corp. 5.500% 04/06/98 ............................ 45,082 44,834,049 Windmill Funding 5.520% 03/02/98 ............................ 50,000 49,992,333 5.550% 04/24/98 ............................ 40,517 40,179,696 ------------ 234,390,703 ------------ BANKS--8.7% AB Spintab Swedmortgage 5.740% 04/07/98 ............................ 50,000 49,705,028 5.740% 04/15/98 ............................ 30,000 29,784,750 5.470% 05/12/98 ............................ 25,000 24,726,500 5.450% 06/09/98 ............................ 30,000 29,545,833 AMRO N.A. Finance Inc. 5.560% 05/01/98 ............................ 50,000 49,528,944 Unifunding Inc. 5.570% 03/03/98 ............................ 30,000 29,990,717 5.630% 04/22/98 ............................ 50,000 49,593,389 ------------ 262,875,161 ------------ BUSINESS CREDIT INSTITUTIONS--1.8% Enterprise Funding Corp. 5.570% 04/06/98 ............................ 38,728 38,512,285 5.480% 04/14/98 ............................ 17,179 17,063,939 ------------ 55,576,224 ------------ CONGLOMERATES--1.6% BTR Dunlop Finance Inc. PLC 5.450% 05/14/98 ............................ 50,000 49,439,861 ------------ See Accompanying Notes to Financial Statements. 2 THE JANNEY MONTGOMERY SCOTT MONEY FUNDS THE RBB FUND, INC. MONEY MARKET PORTFOLIO STATEMENT OF NET ASSETS (CONTINUED) FEBRUARY 28, 1998 (UNAUDITED) PAR (000) VALUE -------- ------------ FINANCE LESSORS--3.3% General Electric Capital Corp. 5.450% 06/11/98 ............................. $100,000 $ 98,455,833 ------------ FINANCE SERVICES--4.2% Barton Capital Corp. 5.540% 04/06/98 ............................. 32,517 32,336,856 5.490% 04/14/98 ............................. 45,000 44,698,050 Old Line Funding Corp. 5.520% 03/09/98 ............................. 50,000 49,938,667 ------------ 126,973,573 ------------ FOOD & KINDRED PRODUCTS--2.7% Diageo Capital PLC 5.450% 05/11/98 ............................. 25,000 24,731,285 5.470% 04/29/98 ............................. 25,000 24,775,882 Grand Metropolitan Capital Corp. 5.620% 04/15/98 ............................. 33,000 32,768,175 ------------ 82,275,342 ------------ HOUSEHOLD AUDIO & VIDEO EQUIPMENT--0.8% Toshiba America, Inc. 5.470% 05/15/98 ............................. 25,000 24,715,104 ------------ MISCELLANEOUS BUSINESS CREDIT INSTITUTIONS--1.7% Unifunding Inc. 5.480% 03/09/98 ............................. 50,000 49,939,111 ------------ MOTOR VEHICLES & CAR BODIES--2.5% Daimler-Benz North America Corp. 5.480% 03/06/98 ............................. 75,000 74,942,917 ------------ SECURITY BROKERS & DEALERS--7.6% Lehman Brothers Holdings Inc. 5.520% 03/18/98 ............................. 50,000 49,869,667 Merrill Lynch & Co. Canandian DCP 5.610% 03/04/98 ............................. 50,000 49,976,625 Morgan Stanley Group, Inc. 5.430% 04/09/98 ............................. 50,000 49,705,875 Lehman Brothers Holdings Inc. 5.520% 05/28/98 ............................. 40,000 39,460,267 Morgan Stanley Group, Inc. 5.400% 07/23/98 ............................. 40,000 39,136,000 ------------ 228,148,434 ------------ PAR (000) VALUE -------- -------------- SHORT-TERM BUSINESS CREDIT INSTITUTIONS--4.3% Asset Securitization Coop Corp. 5.550% 04/06/98 .......................... $ 50,000 $ 49,722,500 Delaware Funding Corp. 5.570% 03/16/98 .......................... 30,523 30,452,161 Sears Roebuck Acceptance Corp. 5.460% 05/19/98 .......................... 50,000 49,400,917 -------------- 129,575,578 -------------- WHOLESALE - MISCELLANEOUS DURABLE GOODS--2.5% Mitsubishi International Corp. 5.510% 05/28/98 .......................... 25,000 24,663,278 5.560% 04/28/98 .......................... 25,000 24,776,055 5.560% 04/30/98 .......................... 25,000 24,768,333 -------------- 74,207,666 -------------- WHOLESALE GROCERIES & RELATED GOODS--1.6% Mitsubishi International Corp. 5.510% 05/29/98 .......................... 50,000 49,318,903 -------------- TOTAL COMMERCIAL PAPER (Cost $1,540,834,410) ................ 1,540,834,410 -------------- MUNICIPAL BONDS--2.7% FLORIDA--0.1% Coral Springs,VRDN IDR (Suntrust)(DAGGER) 5.600% 03/04/98 .......................... 2,700 2,700,000 -------------- GEORGIA--0.3% De Kalb County Development Authority VRDN Series 1995 B (Emory University Project)(DAGGER) 5.600% 02/28/98 .......................... 9,485 9,485,000 -------------- ILLINOIS--0.2% Illinois Health Facilities Authority Convertible/ VRDN Revenue Bond (The Streeterville Corp. Project) Series 1993-B(DAGGER) 5.700% 03/04/98 .......................... 4,400 4,400,000 -------------- INDIANA--0.2% Bremen, Inc. TARN VRDN Series 1996 B (Society National Bank, Cleveland)(DAGGER) 5.610% 03/05/98 .......................... 4,400 4,400,000 -------------- 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) FEBRUARY 28, 1998 (UNAUDITED) PAR (000) VALUE -------- ------------ KENTUCKY--0.1% Boone County Taxable IDR Refunding Bonds VRDN (Square D Company Project) Series 1994-B(DAGGER) 5.700% 03/04/98 ....................... $ 4,200 $ 4,200,000 ----------- MISSISSIPPI--0.9% Hinds County, IDR Revenue Bond VRDN Series 1992(DAGGER) 5.600% 03/04/98 ....................... 1,860 1,860,000 Mississippi Business Finance Corp. IDR Revenue Bond VRDN (Dana Lighting Project) Series 1995(DAGGER) 5.600% 03/07/98 ....................... 6,100 6,100,000 Mississippi Business Finance Corp. Taxable IDR Revenue Bond VRDN (Bryan Foods, Inc. Project) Series 1994(DAGGER) 5.700% 03/04/98 ....................... 14,000 14,000,000 Mississippi Business Finance Corp. Taxable IDR Revenue Bond VRDN Series 1995(DAGGER) 5.600% 03/07/98 ....................... 7,000 7,000,000 ----------- 28,960,000 ----------- NORTH CAROLINA--0.4% City of Asheville Tax Corp. VRDN(DAGGER) 5.650% 03/04/98 ....................... 11,700 11,700,000 ----------- TEXAS--0.5% South Central Texas Industrial Development Corp. Taxable IDR Revenue Bond VRDN (Rohr Industries Project Series 1990)(DAGGER) 5.700% 03/04/98 ....................... 14,800 14,800,000 ----------- TOTAL MUNICIPAL BONDS (Cost $80,645,000) ................ 80,645,000 ----------- PAR (000) VALUE -------- ------------ MEDIUM TERM NOTES--15.2% BANKS--3.3% Skandinaviska Enskilda Banken Funding Inc.(DAGGER) 5.550% 03/12/98 ................... $ 50,000 $ 49,974,367 Skandinaviska Enskilda(DAGGER) 5.610% 02/25/99 ................... 50,000 49,981,031 ------------ 99,955,398 ------------ FINANCE SERVICES--6.1% General American Life(DAGGER) 5.820% 03/02/98 ................... 50,000 50,000,000 SMM Trust 1997-A(DAGGER) 5.906% 03/23/98 ................... 20,000 20,000,000 SMM Trust 1997-L(DAGGER) 5.625% 03/29/98 ................... 13,200 13,200,000 SMM Trust 1997-X(DAGGER) 5.625% 03/12/98 ................... 100,000 100,000,000 ------------ 183,200,000 ------------ SECURITY BROKERS & DEALERS--4.8% Bear Stearns Companies, Inc.(DAGGER) 5.601% 03/06/98 ................... 25,000 25,000,000 5.595% 03/24/98 ................... 40,000 40,000,000 5.605% 03/26/98 ................... 30,000 30,000,000 Lehman Brothers Holdings, Inc.(DAGGER) 5.958% 03/05/98 ................... 50,000 50,000,000 ------------ 145,000,000 ------------ SERVICES - AUTO RENT & LEASE--1.0% PHH Corp(DAGGER) 5.565% 03/13/98 ................... 30,000 29,991,082 ------------ TOTAL MEDIUM TERM NOTES (Cost $458,146,480) ........... 458,146,480 ------------ 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) FEBRUARY 28, 1998 (UNAUDITED) PAR (000) VALUE -------- ------------ REPURCHASE AGREEMENTS--12.4% Goldman Sachs & Co. (Agreement dated 02/27/98 to be repurchased at $100,047,083, collateralized by $85,579,720 Federal Home Loan Mortgage Corporation due 09/15/04 to 11/15/23 and $63,500,000 Federal National Mortgage Association due 04/25/23. Market value of collateral is $103,000,000.) 5.650% 03/02/98 ......................... $100,000 $ 100,000,000 Lehman Government Securities Inc. (Agreement dated 02/27/98 to be repurchased at $100,045,000, collateralized by $71,305,000 Federal Home Loan Mortgage Corporation due 10/15/22 to 01/15/26 and $62,778,948 Federal National Mortgage Association due 10/25/08 to 10/25/22. Market value of collateral is $103,003,354.) 5.400% 03/02/98 ......................... 100,000 100,000,000 Swiss Bank Corp. (Agreement dated 02/27/98 to be repurchased at $75,034,625 and $100,047,333, respectively, collateralized by $77,625,000 Government National Mortgage Association due 10/20/27 and $102,914,000 Federal National Mortgage Association due 01/01/28. Market value of collateral is $184,783,604.) 5.540% 03/02/98 .......................... 75,000 75,000,000 5.680% 03/02/98 .......................... 100,000 100,000,000 ------------ TOTAL REPURCHASE AGREEMENTS (Cost $375,000,000) .................. 375,000,000 ------------ TOTAL INVESTMENTS--99.5% (Cost $2,998,575,393) .................... 2,998,575,393 VALUE -------------- OTHER ASSETS IN EXCESS OF LIABILITIES--0.5% ..................... $ 14,445,787 -------------- NET ASSETS (Applicable to 1,504,186,443 Bedford shares, 198,797 Cash Preservation shares, 822,075,114 Janney Montgomery Scott shares, 686,561,111 Sansom Street shares and 800 other shares)--100.0% ............ $3,013,021,180 ============== NET ASSET VALUE, Offering and Redemption Price Per Share ($3,013,021,180 (DIVIDE) 3,013,022,265) .. $1.00 ===== * Also cost for Federal income tax purposes. (DAGGER) Variable Rate Obligations -- The interest rate shown is the rate as of February 28, 1998 and the maturity date shown is the longer of the next interest rate readjustment date or the date the principal amount shown can be recovered through demand. (DOUBLE DAGGER) Put Bonds -- Maturity date is the put date. INVESTMENT ABBREVIATIONS VRDN ..................................................Variable Rate Demand Note LOC ............................................................Letter of Credit IDR ..............................................Industrial Development Revenue See Accompanying Notes to Financial Statements. 5 THE JANNEY MONTGOMERY SCOTT MONEY FUNDS THE RBB FUND, INC. MUNICIPAL MONEY MARKET PORTFOLIO STATEMENT OF NET ASSETS FEBRUARY 28, 1998 (UNAUDITED) PAR (000) VALUE -------- ------------ MUNICIPAL BONDS--99.7% ALABAMA--3.2% Birmingham-Baptist Medical Centers Special Care Facilities Financing Authority RB (Senior Living Communities, Inc. Project) DN(DAGGER) 3.500% 03/07/98 ..................... $5,530 $ 5,530,000 Montgomery Special Care Facilities Financing Authority RB 1985 Series A DN(DAGGER) 3.400% 03/07/98 ..................... 2,570 2,570,000 Montgomery Special Care Facilities Financing Authority RB 1985 Series G DN(DAGGER) 3.400% 03/07/98 ..................... 1,075 1,075,000 Montgomery Special Care Facilities Hospital Authority RB 1985 Series D DN(DAGGER) 3.400% 03/07/98 ..................... 1,000 1,000,000 ----------- 10,175,000 ----------- ALASKA--1.3% Valdez Marine Terminal (ARCO Transportation Alaska, Inc. Project) TECP 3.900% 03/09/98 ..................... 4,300 4,300,000 ----------- ARIZONA--3.4% Salt River Arizona Project Agricultural Improvement and Power District TECP 3.750% 03/27/98 ..................... 11,000 11,000,000 ----------- CALIFORNIA--10.0% 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 28,058,080 ----------- 32,058,080 ----------- COLORADO--1.6% Colorado State General Fund Series A TRAN 4.500% 06/26/98 ..................... 5,000 5,010,026 ----------- PAR (000) VALUE ------- ------------ CONNECTICUT--0.9% Connecticut Special Assessment Unemployment Compensation Advance Fund (Connecticut Unemployment Project) Series 1993 C MB(DOUBLE DAGGER) 3.900% 07/01/98 .................... $3,000 $ 3,000,000 ----------- DELAWARE--0.9% The Delaware Economic Development Authority Gas Facilities (Delmarva Power & Light Project) Series 1993 C RB DN(DAGGER) 3.550% 03/07/98 .................... 3,000 3,000,000 ----------- GEORGIA--5.7% Brunswick and Glynn IDA Sewage Facility RB (Georgia-Pacific Corp. Project) DN Series 1996(DAGGER) 3.600% 03/07/98 .................... 5,000 5,000,000 Forsyth County IDA RB (American Boa, Inc. Project) DN(DAGGER) 3.600% 03/07/98 .................... 3,000 3,000,000 Fulton County IDA RB (Charles J. Mackarich Project) DN(DAGGER) 3.600% 03/07/98 .................... 3,500 3,500,000 Savannah Economic Development Authority RB (Georgia Kaolin Inc) DN(DAGGER) 3.550% 03/07/98 .................... 5,000 5,000,000 Winder-Barrow Industrial Building Authority (Georgia Barrow Property Project) DN(DAGGER) 3.600% 03/07/98 .................... 1,650 1,650,000 ----------- 18,150,000 ----------- ILLINOIS--10.1% Chicago, Illinois Tender Notes MB(DOUBLE DAGGER) 3.550% 02/04/99 .................... 2,000 2,000,000 Illinois Educational Facility Authority (College of Optometry) Series 83 DN(DAGGER) 4.000% 03/07/98 .................... 5,300 5,300,000 Illinois Development Finance Authority (CHS Acquisition Corp. Project) DN(DAGGER) 3.500% 03/07/98 .................... 5,035 5,035,000 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) FEBRUARY 28, 1998 (UNAUDITED) (000) VALUE -------- ------------ ILLINOIS--(CONTINUED) Illinois Development Finance Authority Environmental Facilities RB (Citizens Utility Co., Project) DN(DAGGER) 3.600% 03/07/98 ................... $6,000 $ 6,000,000 Illinois Development Financing Authority PCR (Illinois Power Co. Project) Series 1987 D DN(DAGGER) 3.850% 03/07/98 ................... 900 900,000 Illinois Health Facilities Authority Revolving Fund Pooled Financing Program (The University of Chicago Project) TECP 3.750% 05/27/98 ................... 8,000 8,000,000 Illinois Health Facility Authority (Evanston Hospital Corp. Project) Series 1996 MB(DOUBLE DAGGER) 3.900% 07/31/98 ................... 5,000 5,000,000 ----------- 32,235,000 ----------- INDIANA--11.5% Bremen IDA RB Series 1996 A (Universal Bearings, Inc. Project Private Placement) DN + 3.700% 03/07/98 ................... 5,000 5,000,000 Fort Wayne PCR Bonds (General Motors Corp. Project) Series 1985 DN(DAGGER) 3.700% 03/07/98 ................... 2,300 2,300,000 Indiana Development Finance Authority IDA RB (Enterprise Center I Project) DN(DAGGER) 3.650% 03/07/98 ................... 2,900 2,900,000 Indiana Development Finance Authority IDA RB (Enterprise Center II Project) DN(DAGGER) 3.650% 03/07/98 ................... 5,000 5,000,000 Indiana Development Finance Authority IDA RB (Enterprise Center III Project) DN(DAGGER) 3.650% 03/07/98 ................... 4,500 4,500,000 Indiana Development Finance Authority IDA RB (Enterprise Center IV Project) DN(DAGGER) 3.650% 03/07/98 ................... 2,600 2,600,000 PAR (000) VALUE ------- ------------ INDIANA--(CONTINUED) Indiana Development Finance Authority IDA RB (Enterprise Center VI Project) DN(DAGGER) 3.650% 03/07/98 ................ $4,900 $ 4,900,000 La Porte County Economic Development RB (Pedcor Investments - Woodland Crossing) DN(DAGGER) 3.500% 03/07/98 ................ 2,000 2,000,000 Portage Economic Development RB (Breckenridge Apartments Project) DN(DAGGER) 3.600% 03/07/98 ................ 4,650 4,650,000 Tippecanoe County DN(DAGGER) 3.600% 03/07/98 ................ 3,000 3,000,000 ----------- 36,850,000 ----------- IOWA--1.9% Iowa Finance Authority IDA RB (Dixie Bedding Co. Project) Series 1995 DN(DAGGER) 3.600% 03/07/98 ................ 3,000 3,000,000 Polk County Health Facilities Authority (Catholic Health Initiatives Series 1997 B) DN(DAGGER) 3.450% 03/07/98 ................ 3,000 3,000,000 ----------- 6,000,000 ----------- KANSAS--3.8% Kansas State Department of Transportation Highway RB Series B DN(DAGGER) 3.350% 03/07/98 ................ 5,000 5,000,000 Lawrence County Project IDA RB Series A DN(DAGGER) 3.600% 03/05/98 ................ 2,025 2,025,000 Shawnee IDA RB (Thrall Enterprises, Inc. Project) DN(DAGGER) 3.500% 03/07/98 ................ 5,100 5,100,000 ----------- 12,125,000 ----------- 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) FEBRUARY 28, 1998 (UNAUDITED) PAR (000) VALUE ------- ------------ KENTUCKY--4.8% Hopkinsville IDA RB (Douglas Autotech Corp. Project) Series 1995 DN(DAGGER) 4.300% 03/07/98 ........................ $7,700 $ 7,700,000 Maysville Solid Waste Disposal Facilities RB (Inland Container Corp. Project) Series 1992 TECP 3.700% 05/13/98 ........................ 2,800 2,800,000 3.800% 05/20/98 ........................ 5,000 5,000,000 ----------- 15,500,000 ----------- LOUISIANA--2.0% East Baton Rouge (Resource Recovery Improvements Parish Pacific Corp. Project) DN(DAGGER) 4.400% 03/07/98 ........................ 6,500 6,500,000 ----------- MASSACHUSETTS--2.5% Massachusetts Education Financing RB Series 1997E DN(DAGGER) 3.550% 03/07/98 ........................ 8,000 8,000,000 ----------- MISSOURI--6.7% Berkeley IDA RB (St. Louis Air Cargo Services, Inc. Project) DN(DAGGER) 4.000% 03/07/98 ........................ 12,900 12,900,000 Kansas City IDA Facility RB (K.C. Air Cargo Services, Inc. Project) DN(DAGGER) 4.000% 03/07/98 ........................ 7,400 7,400,000 Kansas City IDA RB (Mid-America Health Services, Inc. Project) Series 1984 DN(DAGGER) 3.700% 03/07/98 ........................ 1,100 1,100,000 ----------- 21,400,000 ----------- NEBRASKA--1.2% Lancaster (Sun-Husker Foods, Inc. Project) DN(DAGGER) 4.300% 03/07/98 ........................ 3,800 3,800,000 ----------- PAR (000) VALUE ------- ------------ NEVADA--0.3% Clark County Airport System Subordinate Lien RB DN Series 1995 A-2(DAGGER) 3.600% 03/07/98 ................... $ 880 $ 880,000 ---------- NEW YORK--1.1% New York State Energy Research and Development Authority PCR RB (Niagara Mohawk Power Project) Series 1985B DN(DAGGER) 3.650% 03/07/98 ................... 3,400 3,400,000 ---------- NORTH CAROLINA--6.6% Gastonia Certificates of Participation (Equipment Financing Project) Series 1997 DN(DAGGER) 3.450% 03/07/98 ................... 4,900 4,900,000 North Carolina Education Facilities Finance Agency RB (Bowman Gray School of Medicine Project) Series 1990 DN(DAGGER) 3.400% 03/07/98 ................... 1,500 1,500,000 North Carolina Educational Facilities Finance Agency (Duke University Project) DN(DAGGER) 3.050% 03/07/98 ................... 4,000 4,000,000 North Carolina Educational Facilities Finance Agency RB (Elon College Project) Series 1997 DN 3.400% 03/07/98 ................... 800 800,000 North Carolina Educational Facilities Finance Agency RB (Guilford College) Series 1997 DN(DAGGER) 3.550% 03/07/98 ................... 3,000 3,000,000 North Carolina Educational Facilities Finance Agency RB (The Bowman Gray School of Medicine Project) Series 1996 DN(DAGGER) 3.400% 03/07/98 ................... 500 500,000 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) FEBRUARY 28, 1998 (UNAUDITED) PAR (000) VALUE ------- ------------ NORTH CAROLINA--(CONTINUED) North Carolina Medical Care Commission Hospital RB (Moses H. Cone Memorial Hospital Project) Series 1993 DN(DAGGER) 3.400% 03/07/98 ..................... $ 700 $ 700,000 Rockingham County Industrial Facilities and Finance Authority PCR RB (Medibeg USA, Inc.) 1997 DN(DAGGER) 3.550% 03/07/98 ..................... 3,000 3,000,000 Wake County Industrial Facilities and Pollution Control Financing Authority RB (Carolina Power & Light Co. Project) Series 1987 DN(DAGGER) 3.850% 03/01/98 ..................... 300 300,000 Wake County Industrial Facility PCR RB (Carolina Power & Light Co.) Series C DN(DAGGER) 4.250% 03/07/98 ..................... 2,300 2,300,000 ----------- 21,000,000 ----------- OHIO--5.9% Green County G.O. BAN 4.000% 03/26/98 ..................... 3,700 3,700,483 4.500% 05/07/98 ..................... 5,000 5,003,965 Lorain County (Catholic Healthcare Partners Project) Hospital Facilities RB 1997 A TECP 3.450% 03/12/98 ..................... 5,000 5,000,000 Mahoning County (Youngstown Iron & Metal Inc. Project) DN(DAGGER) 3.600% 03/07/98 ..................... 2,140 2,140,000 Parma City Series 1998 BAN 4.950% 08/05/98 ..................... 3,000 3,016,593 ----------- 18,861,041 ----------- OKLAHOMA--0.6% Oklahoma Development Finance Authority (Shawnee Funding Limited) DN(DAGGER) 3.600% 03/07/98 ..................... 2,000 2,000,000 ----------- PAR (000) VALUE ------- ------------ OREGON--0.9% Portland Multifamily Housing RB Village of Lovejoy Fountain DN(DAGGER) 3.550% 03/07/98 ....................... $ 3,000 $ 3,000,000 ----------- PENNSYLVANIA--2.0% Emmaus General Authority RB Pooled Loan Series 1989G-2 DN(DAGGER) 3.500% 03/01/98 ....................... 2,000 2,000,000 Philadelphia Hospital & Higher Educational Facility Authority RB (Children's Hospital of Philadelphia Project) Series 1996-A DN(DAGGER) 3.650% 03/01/98 ....................... 3,100 3,100,000 Washington County Authority Lease Series 1985 DN(DAGGER) 3.600% 03/07/98 ....................... 1,400 1,400,000 ----------- 6,500,000 ----------- TENNESSEE--3.9% Montgomery County Public Building Authority Pooled Financing RB (Tennessee County Loan Pool) DN(DAGGER) 3.450% 03/07/98 ....................... 5,100 5,100,000 Montgomery County Public Building Authority Loan Pool G.O. DN(DAGGER) 3.450% 03/07/98 ....................... 2,400 2,400,000 Oak Ridge Solid Waste Disposal Facility Series 1996 M4 (Environmental Project) DN(DAGGER) 3.600% 03/07/98 ....................... 5,100 5,100,000 ----------- 12,600,000 ----------- TEXAS--4.0% Angelina and Neches River Authority Solid Waste Disposal RB (Temple- Eastex Incorporated Project) Series 1993 TECP 3.800% 05/18/98 ....................... 7,450 7,450,000 Denton IDA (Hartzell Manufacturing Inc. Project) DN(DAGGER) 3.750% 03/07/98 ....................... 1,300 1,300,000 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 (CONCLUDED) FEBRUARY 28, 1998 (UNAUDITED) PAR (000) VALUE ------- ------------ TEXAS--(CONTINUED) State of Texas TRAN 4.750% 08/31/98 ........................ $ 2,750 $ 2,761,876 Texas State Veterans Housing Assistance Fund DN(DAGGER) 3.350% 03/07/98 ........................ 1,300 1,300,000 ------------ 12,811,876 ------------ VIRGINIA--2.3% Capital Region Airport Commission (Richmond International Airport Project) Series 1995 C DN(DAGGER) 3.400% 03/07/98 ........................ 4,400 4,400,000 Culpepper IDA Residential Care Facility RB DN(DAGGER) 3.450% 03/07/98 ........................ 385 385,000 King George County IDA Exempt Facility RB (Birchwood Power Partners Project) Series 1996 DN(DAGGER) 3.700% 03/01/98 ........................ 600 600,000 Peninsula Ports Authority of Virginia Port Facility Refunding RB (Zeigler Coal Project) Series 1997 DN(DAGGER) 3.700% 03/01/98 ........................ 1,100 1,100,000 Peninsula Ports IDA RB (Allied Signal, Inc. Project) Series 1993 DN(DAGGER) 3.500% 03/07/98 ........................ 1,000 1,000,000 ------------ 7,485,000 ------------ WISCONSIN--0.6% Amery IDRB (Plastech Corporation) Series 1997 DN(DAGGER) 3.750% 03/07/98 ........................ 2,000 2,000,000 ------------ TOTAL INVESTMENTS AT VALUE--99.7% (Cost $319,641,023) .................... 319,641,023 VALUE ------------ OTHER ASSETS IN EXCESS OF LIABILITIES--0.3% ................... $ 942,262 ----------- NET ASSETS (Applicable to 214,533,310 Bedford shares, 99,373 Cash Preservation shares, 106,022,956 Janney Montgomery Scott shares, and 800 other shares)--100.0% ............... $320,583,285 ============ NET ASSET VALUE, Offering and redemption price per share ($320,583,285 (DIVIDE) 320,656,439) .... $1.00 ===== * Also cost for Federal income tax purposes. (DAGGER) Variable Rate Demand Notes -- The interest rate shown is the rate as of February 28, 1998 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. 10 THE JANNEY MONTGOMERY SCOTT MONEY FUNDS THE RBB FUND, INC. GOVERNMENT OBLIGATIONS MONEY MARKET PORTFOLIO STATEMENT OF NET ASSETS FEBRUARY 28, 1998 (UNAUDITED) PAR (000) VALUE ------- ------------ AGENCY OBLIGATIONS--46.4% FEDERAL FARM CREDIT BANK--2.0% 5.450% 03/03/98 ......................... $12,000 $ 11,999,959 ------------ FEDERAL HOME LOAN BANK--16.4% 5.405% 03/02/98(DAGGER) ................. 25,000 24,988,527 5.713% 03/13/98 ......................... 20,000 19,999,234 6.080% 04/16/98 ......................... 21,000 21,001,393 5.420% 05/11/98 ......................... 10,000 9,893,106 5.682% 10/16/98 ......................... 15,000 14,993,827 5.555% 02/26/99 ......................... 10,000 10,000,000 ------------ 100,876,087 ------------ FEDERAL NATIONAL MORTGAGE ASSOCIATION--18.2% 5.237% 03/03/98(DAGGER) ................. 10,000 10,000,000 5.669% 03/03/98(DAGGER) ................. 25,000 24,991,069 5.415% 03/17/98(DAGGER) ................. 10,000 9,992,408 5.710% 03/18/98 ......................... 25,000 24,999,665 5.890% 05/21/98 ......................... 10,000 10,002,376 5.840% 06/18/98 ......................... 20,000 19,998,062 5.370% 02/26/99 ......................... 12,000 11,974,505 ------------ 111,958,085 ------------ STUDENT LOAN MARKETING ASSOCIATION--9.8% 5.469% 03/03/98(DAGGER) ................. 9,000 8,999,662 5.479% 03/03/98(DAGGER) ................. 5,000 5,000,000 5.469% 03/07/98(DAGGER) ................. 8,560 8,551,340 5.489% 03/07/98(DAGGER) ................. 18,000 17,968,678 5.790% 09/16/98 ......................... 20,000 19,995,602 ------------ 60,515,282 ------------ TOTAL AGENCY OBLIGATIONS (Cost $285,349,413) ................. 285,349,413 ------------ REPURCHASE AGREEMENTS--52.7% Greenwich Capital Markets (Agreement dated 02/27/98 to be repurchased at $50,023,667. Collateralized by $51,501,149. Resolution Trust Company Strips 8.875 to 9.375%. Due 04/15/15 to 04/15/30. Market value of collateral is $51,501,149.) 5.680% 03/02/98 ......................... 50,000 50,000,000 PAR (000) VALUE ------- ------------ REPURCHASE AGREEMENTS--(CONTINUED) Merrill Lynch (Agreement dated 01/21/98 to be repurchased at $40,549,000. Collateralized by $41,203,269. Federal National Mortgage Association Strips 6.5% to 7.00%. Due 03/31/26 to 11/01/27. Market value of collateral is $41,203,269.) 5.490% 04/21/98 ......................... $40,000 $ 40,000,000 Merrill Lynch (Agreement dated 02/20/98 to be repurchased at $60,477,516. Collateralized by $61,801,009. Federal National Mortgage Association Strips 6.5 to 7.5%. Due 06/01/10 to 03/01/26. Market value of collateral is $61,801,009.) 5.510% 04/21/98 ......................... 60,000 60,000,000 Morgan Stanley (Agreement dated 02/27/98 to be repurchased at $100,047,391. Collateralized by $100,586,965. Federal National Mortgage Association Strips 5.34 to 8%. Due 02/28/99 to 01/01/28. Market value of collateral is $77,075,831. United States Treasury Notes 5.5%. Market value of collateral is $103,024,510.) 5.687% 02/27/98 ......................... 100,000 100,000,000 Morgan Stanley (Agreement dated 02/23/98 to be repurchased at $20,009,267. Collateralized by $49,803,000. Federal National Mortgage Association Strips 5.5 to 7.298%. Due 04/01/09 to 10/01/22. Market value of collateral is $20,528,085. United States Treasury Note 5.125%. Due 03/31/98. Market value of colleratal is $20,601,594.) 5.560% 02/27/98 ......................... 20,000 20,000,000 See Accompanying Notes to Financial Statements. 11 THE JANNEY MONTGOMERY SCOTT MONEY FUNDS THE RBB FUND, INC. GOVERNMENT OBLIGATIONS MONEY MARKET PORTFOLIO STATEMENT OF NET ASSETS (CONCLUDED) FEBRUARY 28, 1998 (UNAUDITED) PAR (000) VALUE ------- ------------ Morgan Stanley & Co. (Agreement dated 01/07/98 to be repurchased at $40,548,833. Collateralized by $39,686,017. Federal Mortgage Corporation 7%. Due 01/01/28. Market value is $41,209,803.) 5.550% 04/06/98 .............................. $40,000 $ 40,000,000 Swiss Bank Corp. (Agreement dated 02/27/98 to be repurchased at $13,808,326 Collateralized by $13,806,558. U.S. Treasury Note 6.375%. Due 03/31/01 to 05/15/20. Market value of collateral is $14,078,091.) 5.430% 03/03/98 .............................. 13,800 13,800,000 ------------- TOTAL REPURCHASE AGREEMENTS (Cost $323,800,000) ...................... 323,800,000 ------------- TOTAL INVESTMENTS AT VALUE--99.1% (Cost $609,149,413) .......................... 609,149,413 OTHER ASSETS IN EXCESS OF LIABILITIES--0.9% ......................... 5,654,714 ------------- NET ASSETS (Applicable to 218,724,010 Beford shares, 396,094,280 Janney Montgomery Scott shares and 800 other shares* )--100.0% ...................... $614,804,127 ============ NET ASSET VALUE, offering and redemption price per share ($614,804,127 (DIVIDE) 614,819,090) .......... $1.00 ===== * Also cost for Federal income tax purposes. (DAGGER) Variable Rate Obligations -- The interest rate is the rate as of February 28, 1998 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. 12 THE JANNEY MONTGOMERY SCOTT MONEY FUNDS THE RBB FUND, INC. NEW YORK MUNICIPAL MONEY MARKET PORTFOLIO STATEMENT OF NET ASSETS FEBRUARY 28, 1998 (UNAUDITED) PAR (000) VALUE ------- ------------ MUNICIPAL BONDS--99.5% NEW YORK--92.6% Alden, Town of, Erie County for Water System BAN 4.125% 03/26/98 .................. $1,750 $1,750,375 Caledonia-Mumford Central School District BAN 4.250% 06/18/98 .................. 3,000 3,003,031 Chautauqua County IDA (The Red Wing Company, Inc.) Series 1985 DN(DAGGER) 3.350% 03/05/98 .................. 2,000 2,000,000 Clarence County Central School District TAN 1997 4.250% 06/30/98 .................. 2,300 2,302,693 Elmira, City of, Chemung County BAN 1997(DOUBLE DAGGER) 4.250% 06/30/98 .................. 1,500 1,501,670 Geneva, City of, BAN 1997 4.250% 06/05/98 .................. 2,072 2,073,224 Montgomery Town IDA DN(DAGGER) 3.400% 03/16/98 .................. 1,300 1,300,000 New Paltz Central School District BAN 4.125% 06/15/98 .................. 3,000 3,001,971 New York City Eagle Tax Exempt DN (Escrowed to Maturity in U.S. Treasuries)(DAGGER) 3.510% 03/05/98 .................. 1,000 1,000,000 New York City G.O. 1995 Series F-4 DN(DAGGER) 3.250% 03/07/98 .................. 1,000 1,000,000 New York City G.O. Series F-5 Bonds DN(DAGGER) 3.250% 03/07/98 .................. 4,000 4,000,000 New York City G.O. Bonds DN 1995 Series F-3(DAGGER) 3.300% 03/07/98 .................. 6,800 6,800,000 New York City G.O. Bonds DN Series D(DAGGER) 3.300% 03/07/98 .................. 1,200 1,200,000 New York City G.O. Bonds Series 1993 Subseries A-10 DN(DAGGER) 3.900% 03/01/98 .................. 1,800 1,800,000 PAR (000) VALUE ------- ------------ NEW YORK--(CONTINUED) New York City G.O. Series B-2 DN(DAGGER) 3.900% 03/01/98 ................... $ 600 $ 600,000 New York City G.O. DN Series 1994 A10(DAGGER) 3.900% 03/01/98 ................... 500 500,000 New York City G.O. Series B DN(DAGGER) 3.900% 03/01/98 ................... 900 900,000 New York City G. O. Bonds DN(DAGGER) 3.300% 03/07/98 ................... 1,900 1,900,000 New York City Health and Hospitals Health System Bonds, 1997 Series A DN(DAGGER) 3.200% 03/07/98 ................... 1,500 1,500,000 New York City Housing Development Corp. Multi-Family Rental Housing RB DN (Monterey) 1997 Series A DN(DAGGER) 3.300% 03/07/98 ................... 5,000 5,000,000 New York City Housing Development Corp. Multi-Family Rental RB (Columbus Green) 1997 Series A DN(DAGGER) 3.200% 03/07/98 ................... 1,400 1,400,000 New York City IDA DN Laguardia Airport(DAGGER) 3.300% 03/07/98 ................... 1,000 1,000,000 New York City IDA RB DN (Field Hotel Project) (JFK Airport)(DAGGER) 3.300% 03/07/98 ................... 600 600,000 New York City IDA RB DN Series X (Spreading Machine Exchange Project)(DAGGER) 3.150% 03/07/98 ................... 750 750,000 New York City Municipal Water and Sewer System Finance Authority Series 1995A DN(DAGGER) 3.900% 03/01/98 ................... 4,000 4,000,000 New York City Municipal Water Finance Authority Series 5-B TECP 3.450% 03/30/98 ................... 6,200 6,200,000 New York Local Government Assistance Bonds DN(DAGGER) 3.150% 03/07/98 ................... 3,100 3,100,000 See Accompanying Notes to Financial Statements. 13 THE JANNEY MONTGOMERY SCOTT MONEY FUNDS THE RBB FUND, INC. NEW YORK MUNICIPAL MONEY MARKET PORTFOLIO STATEMENT OF NET ASSETS (CONTINUED) FEBRUARY 28, 1998 (UNAUDITED) PAR (000) VALUE ------- ------------ NEW YORK--(CONTINUED) New York Local Government Assistance Corp. DN(DAGGER) 3.150% 03/07/98 .................. $1,200 $1,200,000 3.100% 03/07/98 .................. 300 300,000 3.150% 03/07/98 .................. 8,200 8,200,000 New York Municipal Assistance Corp. (Public Benefit Corp. of State of N.Y.) DN(DAGGER) 3.150% 03/07/98 .................. 4,600 4,600,000 New York State Dormitory Authority RB DN (Beverwyck Inc.)(DAGGER) 3.300% 03/04/98 .................. 1,640 1,640,000 New York State Energy Research & Development Authority Electric Facilities RB 1995 Series A DN (Long Island Lighting Company Project)(DAGGER) 3.550% 03/07/98 .................. 2,000 2,000,000 New York State Energy Research & Development Authority PCR RB (Niagara Mohawk Power) Series A DN(DAGGER) 3.900% 03/01/98 .................. 2,300 2,300,000 New York State Energy Research & Development Authority PCR RB DN (Rochester Gas and Electric Corp.) 1997 C(DAGGER) 3.150% 03/07/98 .................. 1,600 1,600,000 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 RB DN (Long Island Lighting Co. Project) 1997 Series A(DAGGER) 3.300% 03/07/98 .................. 4,000 4,000,000 New York State Energy Research & Development Authority Series 1987 B PCR (Niagara Mohawk) DN(DAGGER) 3.950% 03/01/98 .................. 1,200 1,200,000 PAR (000) VALUE ------- ------------ NEW YORK--(CONTINUED) New York State Energy Research & Development Authority, State Electric & Gas Series 1985-A DN(DAGGER) 3.650% 03/15/98 ....................... $3,000 $3,000,000 New York State Energy Research & Development Electric Facilities RB DN 1993 Series B (Long Island Lighting Co. Project)(DAGGER) 3.600% 03/07/98 ....................... 500 500,000 New York State Energy Research and Development Authority PCR RB (Niagara Mohawk Power Project) Series 1985B DN(DAGGER) 3.650% 03/01/98 ....................... 3,000 3,000,000 New York State Environmental Quality G.O. Series 1997 A TECP 3.300% 03/10/98 ....................... 1,300 1,300,000 New York State Housing Finance Agency DN Series A (Mount Sinai School Of Medicine)(DAGGER) 3.250% 03/04/98 ....................... 1,000 1,000,000 New York State Housing Finance Agency East 84th Street Housing RB 1995 Series A DN(DAGGER) 3.300% 03/07/98 ....................... 3,800 3,800,000 New York State Housing Finance Agency Multi-Family Mortgage RB DN (Pleasant Creek Meadows Project) / (AMBAC Insurance)(DAGGER) 3.200% 03/07/98 ....................... 1,400 1,400,000 New York State Housing Finance Agency Union Square South Housing RB 1996 Series A DN(DAGGER) 3.300% 03/07/98 ....................... 2,000 2,000,000 New York State Housing Finance Authority RB DN (250 West 50th Street Project) Series A(DAGGER) 3.300% 03/07/98 ....................... 3,000 3,000,000 New York State Housing Finance Authority RB Tribeca Park Housing Authority Series A DN(DAGGER) 3.300% 03/07/98 ....................... 4,000 4,000,000 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 (CONCLUDED) FEBRUARY 28, 1998 (UNAUDITED) PAR (000) VALUE ------- ------------ NEW YORK--(CONTINUED) New York State Job Development Authority DN Series 1984 D1 to D9(DAGGER) 4.100% 03/02/98 ....................... $ 55 $ 55,000 New York State Job Development Authority DN Special Purpose Bonds Series 1984 G1 to G55(DAGGER) 4.100% 03/02/98 ....................... 120 120,000 New York State Job Development Authority DN Special Purpose Series 1986 A1 to A14(DAGGER) 4.250% 03/07/98 ....................... 460 460,000 New York State Job Development Authority DN Special Purpose Series C(DAGGER) 4.100% 03/02/98 ....................... 785 785,000 New York State Power MB(DOUBLE DAGGER) 3.750% 03/01/98 ....................... 1,500 1,500,000 Saint Lawrence County IDA Environmental Improvement RB DN (Reynolds Metals Co.)(DAGGER) 3.400% 03/07/98 ....................... 1,600 1,600,000 Smithtown Central School District TAN 4.100% 06/29/98 ....................... 1,000 1,000,627 Southeast, Town of, BAN 1997 4.250% 03/27/98 ....................... 1,810 1,810,620 Suffolk County IDA DN (Nissequogue Cogen) Series 1994(DAGGER) 3.300% 03/04/98 ....................... 3,600 3,600,000 Triborough Bridge and Tunnel Authority DN / (FGIC Insurance)(DAGGER) 3.150% 03/07/98 ....................... 2,100 2,100,000 Trust For Cultural Resources Bond (Carnegie Hall) Series 1990 DN(DAGGER) 3.000% 03/07/98 ....................... 100 100,000 ------------ 124,854,211 ------------ PUERTO RICO--6.9% Puerto Rico Government Development Bank 85 DN(DAGGER) 2.900% 03/04/98 ....................... 9,300 9,300,000 ------------ VALUE ------------ TOTAL INVESTMENTS AT VALUE--99.5% (Cost $134,154,211) ...................... $134,154,211 OTHER ASSETS IN EXCESS OF LIABILITIES--0.5% .................. 626,000 ------------ NET ASSETS (Applicable to 108,821,352 Bedford shares, 25,970,670 Janney Montgomery Scott shares and 800 other shares)--100.0% $134,780,211 ============ NET ASSET VALUE, Offering and redemption price per share ($134,780,211 (DIVIDE) 134,792,822) $1.00 ===== * Also cost for Federal income tax purposes. (DAGGER) Variable Rate Demand Notes -- The interest rate shown is the rate as of February 28, 1998 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. The Moody's Investor Service, Inc. and Standard and Poor's Ratings Group's ratings indicated are the most recent ratings available at February 28, 1998. 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. 15 THE JANNEY MONTGOMERY SCOTT MONEY FUNDS THE RBB FUND, INC. STATEMENTS OF OPERATIONS FOR THE SIX MONTHS ENDED FEBRUARY 28, 1998 (UNAUDITED)
GOVERNMENT NEW YORK MUNICIPAL OBLIGATIONS MUNICIPAL MONEY MARKET MONEY MARKET MONEY MARKET MONEY MARKET PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO ------------ ------------ ------------ ------------ Investment Income Interest ............................................... $79,170,730 $6,613,612 $16,726,902 $2,175,843 ----------- ---------- ----------- ---------- Expenses Investment advisory fees ............................... 5,016,420 585,954 1,222,722 212,286 Administration fees .................................... -- 174,661 -- 60,653 Distribution fees ...................................... 6,201,939 1,023,587 1,738,709 345,181 Service organization fees .............................. 281,246 -- -- -- Directors' fees ........................................ 24,442 3,101 5,252 1,063 Custodian fees ......................................... 220,426 37,392 54,663 17,092 Transfer agent fees .................................... 1,885,453 63,268 315,846 26,205 Legal fees ............................................. 52,774 6,699 11,340 2,295 Audit fees ............................................. 32,785 4,141 7,044 1,428 Registration fees ...................................... 209,692 89,278 84,000 6,098 Insurance expense ...................................... 25,693 3,256 5,516 1,116 Printing fees .......................................... 264,667 25,995 43,231 3,555 Miscellaneous .......................................... 897 341 666 412 ----------- ---------- ----------- ---------- 14,216,434 2,017,673 3,488,989 677,384 Less fees waived ....................................... (1,872,337) (471,601) (332,806) (173,316) Less expense reimbursement by advisor .................. (273,085) (7,600) (221,501) -- ----------- ---------- ----------- ---------- Total expenses .................................... 12,071,012 1,538,472 2,934,682 504,068 ----------- ---------- ----------- ---------- Net investment income .................................. 67,099,718 5,075,140 13,792,220 1,671,775 ----------- ---------- ----------- ---------- Realized gain (loss) on investments .................... 10,099 (1,512) (1,397) -- ----------- ---------- ----------- ---------- Net increase in net assets resulting from operations ... $67,109,817 $5,073,628 $13,790,823 $1,671,775 =========== ========== =========== ==========
See Accompanying Notes to Financial Statements. 16 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 SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED FEBRUARY 28, 1998 AUGUST 31, 1997 FEBRUARY 28, 1998 AUGUST 31, 1997 ----------------- --------------- ----------------- --------------- (UNAUDITED) (UNAUDITED) Increase (decrease) in net assets: Operations: Net investment income ................ $ 67,099,718 $ 116,087,132 $ 5,075,140 $ 12,741,126 Net gain (loss) on investments ........................ 10,099 22,330 (1,512) (3,917) -------------- -------------- ------------ ------------ Net increase in net assets resulting from operations .......... 67,109,817 116,109,462 5,073,628 12,737,209 -------------- -------------- ------------ ------------ Distributions to shareholders: Dividends to shareholders from net investment income: Bedford shares ..................... (33,334,065) (56,929,832) (3,069,871) (5,758,068) Bradford shares .................... -- -- (405,975) (4,148,194) Cash Preservation shares ........... (5,235) (10,852) (1,397) (2,492) Janney Montgomery Scott shares ........................... (18,087,563) (29,943,530) (1,597,897) (2,832,323) RBB shares ......................... -- (1,286) -- (49) Sansom Street shares ............... (15,672,855) (29,201,632) -- -- Total dividends to shareholders ................... (67,099,718) (116,087,132) (5,075,140) (12,741,126) -------------- -------------- ------------ ------------ Net capital share transactions ......................... 312,985,452 504,179,861 (167,461,018) 67,161,386 -------------- -------------- ------------ ------------ Total increase (decrease) in net assets ........................ 312,995,551 504,202,191 (167,462,530) 67,157,469 Net Assets: Beginning of period .................. 2,700,025,629 2,195,823,438 488,045,815 420,888,346 -------------- -------------- ------------ ------------ End of period ........................ $3,013,021,180 $2,700,025,629 $320,583,285 $488,045,815 ============== ============== ============ ============
GOVERNMENT OBLIGATIONS NEW YORK MUNICIPAL MONEY MARKET PORTFOLIO MONEY MARKET PORTFOLIO ---------------------------------- ---------------------------------- FOR THE FOR THE FOR THE FOR THE SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED FEBRUARY 28, 1998 AUGUST 31, 1997 FEBRUARY 28, 1998 AUGUST 31, 1997 ----------------- --------------- ----------------- --------------- (UNAUDITED) (UNAUDITED) Increase (decrease) in net assets: Operations: Net investment income ................ $ 13,792,220 $ 26,187,519 $ 1,671,775 $ 2,735,239 Net gain (loss) on investments ........................ (1,397) (1,291) -- -- ------------ ------------ ------------ ----------- Net increase in net assets resulting from operations .......... 13,790,823 26,186,228 1,671,775 2,735,239 ------------ ------------ ------------ ----------- Distributions to shareholders: Dividends to shareholders from net investment income: Bedford shares ..................... (4,960,506) (9,057,728) (1,287,530) (1,905,788) Bradford shares .................... (185,038) (2,084,419) -- -- Cash Preservation shares ........... -- -- -- -- Janney Montgomery Scott shares ........................... (8,646,676) (15,045,372) (384,245) (829,451) RBB shares ......................... -- -- -- -- Sansom Street shares ............... -- -- -- -- Total dividends to shareholders ................... (13,792,220) (26,187,519) (1,671,775) (2,735,239) ------------ ------------ ------------ ----------- Net capital share transactions ......................... 573,313 57,686,497 25,192,084 21,439,314 ------------ ------------ ------------ ----------- Total increase (decrease) in net assets ........................ 571,916 57,685,206 25,192,084 21,439,314 Net Assets: Beginning of period .................. 614,232,211 556,547,005 109,588,127 88,148,813 ------------ ------------ ------------ ----------- End of period ........................ $614,804,127 $614,232,211 $134,780,211 $109,588,127 ============ ============ ============ ============
See Accompanying Notes to Financial Statements. 17 THE JANNEY MONTGOMERY SCOTT MONEY FUNDS THE RBB FUND, INC. FINANCIAL HIGHLIGHTS(c) (FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
MONEY MARKET PORTFOLIO ------------------------------------------------------------------------- FOR THE PERIOD FOR THE FOR THE FOR THE JUNE 12, 1995 SIX MONTHS YEAR YEAR (COMMENCEMENT OF ENDED ENDED ENDED OPERATIONS) TO FEBRUARY 28, 1998 AUGUST 31, 1997 AUGUST 31, 1996 AUGUST 31, 1995 ----------------- --------------- --------------- ------------------ (UNAUDITED) Net asset value, beginning of period ......... $ 1.00 $ 1.00 $ 1.00 $ 1.00 -------- -------- -------- -------- Income from investment operations: Net investment income ....... 0.0235 0.0459 0.0465 0.0112 -------- -------- -------- -------- Total from investment operations ............ 0.0235 0.0459 0.0465 0.0112 -------- -------- -------- -------- Less distributions Dividends (from net investment income) ........ (0.0235) (0.0459) (0.0465) (0.0112) -------- -------- -------- -------- Total distributions ..... (0.0235) (0.0459) (0.0465) (0.0112) -------- -------- -------- -------- Net asset value, end of period ............... $ 1.00 $ 1.00 $ 1.00 $ 1.00 ======== ======== ======== ======== Total Return .................. 4.84%(b) 4.69% 4.76% 5.30%(b) Ratios /Supplemental Data Net assets, end of period (000) ....... $822,080 $736,855 $561,865 $443,645 Ratios of expenses to average net assets ........ 1.00%(a)(b) 1.00%(a) 1.00%(a) 1.00%(a)(b) Ratios of net investment income to average net assets ................ 4.76%(b) 4.59% 4.65% 5.04%(b)
MUNICIPAL MONEY MARKET PORTFOLIO ----------------------------------------------------------------------- FOR THE PERIOD FOR THE FOR THE FOR THE JUNE 12, 1995 SIX MONTHS YEAR YEAR (COMMENCEMENT OF ENDED ENDED ENDED OPERATIONS) TO, FEBRUARY 28, 1998 AUGUST 31, 1997 AUGUST 31, 1996 AUGUST 31, 1995 ----------------- --------------- --------------- ---------------- (UNAUDITED) Net asset value, beginning of period ......... $ 1.00 $ 1.00 $ 1.00 $ 1.00 -------- -------- ------- -------- Income from investment operations: Net investment income ....... 0.0145 0.0285 0.0278 0.0063 -------- -------- ------- -------- Total from investment operations ............ 0.0145 0.0285 0.0278 0.0063 -------- -------- ------- -------- Less distributions Dividends (from net investment income) ........ (0.0145) (0.0285) (0.0278) (0.0063) -------- -------- ------- -------- Total distributions ..... (0.0145) (0.0285) (0.0278) (0.0063) -------- -------- ------- -------- Net asset value, end of period ............... $ 1.00 $ 1.00 $ 1.00 $ 1.00 ======== ======== ======= ======== Total Return .................. 2.96%(b) 2.89% 2.81% 2.87%(b) Ratios /Supplemental Data Net assets, end of period (000) ....... $106,021 $108,826 $89,428 $113,256 Ratios of expenses to average net assets ........ 0.86%(a)(b) 0.85%(a) 0.94%(a) 1.00%(a)(b) Ratios of net investment income to average net assets ................ 2.93%(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 1.21% for the six months ended February 28, 1998, 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% for the six months ended February 28, 1998, 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. 18 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 ------------------------------------------------------------------------- FOR THE PERIOD FOR THE FOR THE FOR THE JUNE 12, 1995 SIX MONTHS YEAR YEAR (COMMENCEMENT OF ENDED ENDED ENDED OPERATIONS) TO FEBRUARY 28, 1998 AUGUST 31, 1997 AUGUST 31, 1996 AUGUST 31, 1995 ----------------- --------------- --------------- ------------------ (UNAUDITED) Net asset value, beginning of period ......... $ 1.00 $ 1.00 $ 1.00 $ 1.00 -------- -------- -------- -------- Income from investment operations: Net investment income ....... 0.0230 0.0447 0.0456 0.0109 -------- -------- -------- -------- Total from investment operations ............ 0.0230 0.0447 0.0456 0.0109 -------- -------- -------- -------- Less distributions Dividends (from net investment income) ........ (0.0230) (0.0447) (0.0456) (0.0109) -------- -------- -------- -------- Total distributions ..... (0.0230) (0.0447) (0.0456) (0.0109) -------- -------- -------- -------- Net asset value, end of period ............... $ 1.00 $ 1.00 $ 1.00 $ 1.00 ======== ======== ======== ======== Total Return .................. 4.75%(b) 4.56% 4.66% 5.03%(b) Ratios /Supplemental Data Net assets, end of period (000) ....... $396,067 $352,950 $306,757 $302,585 Ratios of expenses to average net assets ........ 1.00%(a) 1.00%(a) 1.00%(a) 1.00%(a)(b) Ratios of net investment income to average net assets ................ 4.65%(b) 4.47% 4.56% 4.91%(b)
NEW YORK MUNICIPAL MONEY MARKET PORTFOLIO ----------------------------------------------------------------------- FOR THE PERIOD FOR THE FOR THE FOR THE JUNE 9, 1995 SIX MONTHS YEAR YEAR (COMMENCEMENT OF ENDED ENDED ENDED OPERATIONS) TO, FEBRUARY 28, 1998 AUGUST 31, 1997 AUGUST 31, 1996 AUGUST 31, 1995 ----------------- --------------- --------------- ---------------- (UNAUDITED) Net asset value, beginning of period ........ $ 1.00 $ 1.00 $ 1.00 $ 1.00 ------- ------- ------- ------- Income from investment operations: Net investment income ...... 0.0140 0.0276 0.0262 0.0062 ------- ------- ------- ------- Total from investment operations ........... 0.0140 0.0276 0.0262 0.0062 ------- ------- ------- ------- Less distributions Dividends (from net investment income) ....... (0.0140) (0.0276) (0.0262) (0.0062) ------- ------- ------- ------- Total distributions .... (0.0140) (0.0276) (0.0262) (0.0062) ------- ------- ------- ------- Net asset value, end of period .............. $ 1.00 $ 1.00 $ 1.00 $ 1.00 ======= ======= ======= ======= Total Return ................. 2.84(b) 2.80% 2.65% 2.72%(b) Ratios /Supplemental Data Net assets, end of period (000) ...... $25,970 $30,442 $20,032 $14,671 Ratios of expenses to average net assets ....... .80%(a) .80%(a) .93%(a) 1.00%(a)(b) Ratios of net investment income to average net assets ............... 2.80(b) 2.76% 2.62% 2.68%(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 Government Obligations Money Market Portfolio would have been 1.23% for the six months ended February 28, 1998, 1.23%, 1.25% and 1.28% for the 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 1.09% annualized for the six months ended February 28, 1998, 1.13%,1.25% and 1.28% for 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. 19 THE JANNEY MONTGOMERY SCOTT MONEY FUNDS THE RBB FUND, INC. NOTES TO FINANCIAL STATEMENTS FEBRUARY 28 1998 (UNAUDITED) NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The RBB Fund, Inc. (the "Fund") is registered under the Investment Company Act of 1940, as amended, as an open-end management investment company. The Fund was incorporated in Maryland on February 29, 1988. The Fund has authorized capital of thirty billion shares of common stock of which 14.03 billion shares are currently classified into eighty-three classes. Each class represents an interest in one of twenty-three investment portfolios of the Fund. The classes have been grouped into fifteen separate "families", eight of which have begun investment operations: the RBB Family, the BEA Family, the Sansom Street Family, the Bedford Family, the Cash Preservation Family, the Janney Montgomery Scott Money Family, the n/i Family and the Boston Partners 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. 20 THE JANNEY MONTGOMERY SCOTT MONEY FUNDS THE RBB FUND, INC. NOTES TO FINANCIAL STATEMENTS (CONTINUED) FEBRUARY 28 1998 (UNAUDITED) 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 Corporation ("PIMC")*, a wholly-owned subsidiary of PNC Asset Management Group, Inc., which is in turn a wholly-owned subsidiary of PNC Bank, National Association ("PNC Bank"), serves as investment advisor for the 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 six months ended February 28, 1998, advisory fees and waivers for the four investment portfolios were as follows:
GROSS NET ADVISORY ADVISORY FEE WAIVER FEE ---------- ----------- ---------- Money Market Portfolio $5,016,420 $(1,867,833) $3,148,587 Municipal Money Market Portfolio 585,954 (467,038) 118,916 Government Obligations Money Market Portfolio 1,222,722 (332,806) 889,916 New York Municipal Money Market Portfolio 212,286 (173,316) 38,970
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 six months ended February 28, 1998, the reimbursed expenses were $273,085, $7,600 and $221,501 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. *As of March 31, 1998, PNC Institutional Management Corporation has officially changed their name to BlackRock Institutional Management Corporation. 21 THE JANNEY MONTGOMERY SCOTT MONEY FUNDS THE RBB FUND, INC. NOTES TO FINANCIAL STATEMENTS (CONTINUED) FEBRUARY 28 1998 (UNAUDITED) NOTE 2. TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES (CONTINUED) PFPC may, at its discretion, voluntarily waive all or any portion of its transfer agency fee for any class of shares. For the six months ended February 28, 1998, 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 $ 994,000 $ -- $ 994,000 Cash Preservation Class 4,812 (4,504) 308 Janney Montgomery Scott Class 698,290 -- 698,290 Sansom Street Class 188,351 -- 188,351 ---------- ------- ---------- Total Money Market Portfolio $1,885,453 $(4,504) $1,880,949 ========== ======= ========== Municipal Money Market Portfolio Bedford Class $ 54,000 $ -- $ 54,000 Bradford Class 2,914 -- 2,914 Cash Preservation Class 4,720 (4,563) 157 Janney Montgomery Scott Class 1,634 -- 1,634 ---------- ------- ---------- Total Municipal Money Market Portfolio $ 63,268 $(4,563) $ 58,705 ========== ======= ========== Government Obligations Money Market Portfolio Bedford Class $ 41,846 $ -- $ 41,846 Bradford Class -- -- -- Janney Montgomery Scott Class 274,000 -- 274,000 ---------- ------- ---------- Total Government Obligations Money Market Portfolio $ 315,846 -- $ 315,846 ========== ======= ========== New York Municipal Money Market Portfolio Bedford Class $ 26,205 $ -- $ 26,205 Janney Montgomery Scott Class -- -- -- ---------- ------- ---------- Total New York Municipal Money Market Portfolio $ 26,205 $ -- $ 26,205 ========== ======= ==========
22 THE JANNEY MONTGOMERY SCOTT MONEY FUNDS THE RBB FUND, INC. NOTES TO FINANCIAL STATEMENTS (CONTINUED) FEBRUARY 28 1998 (UNAUDITED) NOTE 2. TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES (CONTINUED) 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. PFPC may, at its discretion, voluntarily waive all or any portion of its administration fee for a Portfolio. For the six months ended February 28, 1998, administration fees and waivers for the two portfolios were as follows: ADMINISTRATION FEE -------------- Municipal Money Market Portfolio $174,661 New York Municipal Money Market Portfolio 60,653 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 and Janney Montgomery Scott Classes and up to .20% on an annualized basis for the Sansom Street Class. For the six months ended February 28, 1998, distribution fees for each class were as follows: DISTRIBUTION FEE ------------ Money Market Portfolio Bedford Class $3,750,884 Cash Preservation Class 438 Janney Montgomery Scott Class 2,291,871 Sansom Street Class 158,746 ---------- Total Money Market Portfolio $6,201,939 ========== Municipal Money Market Portfolio Bedford Class $ 612,317 Bradford Class 83,480 Cash Preservation Class 199 Janney Montgomery Scott Class 327,591 ---------- Total Municipal Money Market Portfolio $1,023,587 ========== Government Obligations Money Market Portfolio Bedford Class $ 598,444 Bradford Class 23,951 Janney Montgomery Scott Class 1,116,314 ---------- Total Government Obligations Money Market Portfolio $1,738,709 ========== New York Municipal Money Market Portfolio Bedford Class $ 262,961 Janney Montgomery Scott Class 82,220 ---------- Total New York Municipal Money Market Portfolio $ 345,181 ========== The Fund has entered into service agreements with banks affiliated with PNC Bank who render support services to customers who are the beneficial owners of the Sansom Street Class in consideration of the payment of .10% of the daily net asset value of such shares. For the six months ended February 28, 1998, service organization fees were $281,246 for the Money Market Portfolio. 23 THE JANNEY MONTGOMERY SCOTT MONEY FUNDS THE RBB FUND, INC. NOTES TO FINANCIAL STATEMENTS (CONTINUED) FEBRUARY 28 1998 (UNAUDITED) NOTE 3. CAPITAL SHARES Transactions in capital shares (at $1 per capital share) for each year were as follows:
MUNICIPAL MONEY MARKET GOVERNMENT OBLIGATIONS MONEY MARKET PORTFOLIO PORTFOLIO MONEY MARKET PORTFOLIO ---------------------------------- ---------------------------------- ---------------------------------- FOR THE FOR THE FOR THE FOR THE FOR THE FOR THE SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED FEBRUARY 28, 1998 AUGUST 31, 1997 FEBRUARY 28, 1998 AUGUST 31, 1997 FEBRUARY 28, 1998 AUGUST 31, 1997 ----------------- --------------- ----------------- --------------- ----------------- --------------- (UNAUDITED) (UNAUDITED) (UNAUDITED) VALUE VALUE VALUE VALUE VALUE VALUE --------------- --------------- ------------- --------------- ------------- -------------- Shares sold: Bedford Class $ 2,522,717,905 $ 4,513,203,668 $ 725,067,290 $ 1,075,834,153 $ 352,750,273 $ 606,875,958 Bradford Class -- -- 59,917,620 586,482,906 14,367,468 171,813,924 Cash Preservation Class 26,316 175,000 29,952 82,717 -- -- Janney Montgomery Scott Class 1,839,610,433 3,087,651,502 217,468,131 406,706,164 708,307,426 1,232,450,606 RBB Class -- 4,744 -- 200 -- -- Sansom Street Class 1,087,883,963 1,965,226,666 -- -- -- -- Shares issued in reinvestment of dividends: Bedford Class 33,898,767 55,886,643 3,104,574 5,696,659 5,062,153 8,971,804 Bradford Class -- -- 427,390 4,016,410 214,626 2,002,758 Cash Preservation Class 5,415 10,748 1,354 2,358 -- -- Janney Montgomery Scott Class 18,501,314 29,670,134 1,639,541 2,820,771 8,836,183 14,958,191 RBB Class -- 1,361 -- 53 -- -- Sansom Street Class 11,686,521 20,645,930 -- -- -- -- Shares repurchased: Bedford Class (2,445,340,436) (4,285,531,838) (726,739,306) (1,070,439,669) (348,774,046) (598,765,148) Bradford Class -- -- (226,438,837) (553,804,071) (66,190,134) (179,400,377) Cash Preservation Class (75,149) (145,893) (28,876) (103,897) -- -- Janney Montgomery Scott Class (1,772,888,931) (2,942,342,585) (221,909,851) (390,127,972) (674,000,636) (1,201,221,219) RBB Class -- (67,517) -- (5,396) -- -- Sansom Street Class (983,040,666) (1,940,208,702) -- -- -- -- --------------- --------------- ------------- -------------- ------------- ------------- Net increase (decrease) $ 312,985,452 $ 504,179,861 $(167,461,018) $ 67,161,386 $ 573,313 $ 57,686,497 =============== =============== ============= ============== ============= ============= Janney Montgomery Scott Shares authorized 700,000,000 700,000,000 200,000,000 200,000,000 500,000,000 500,000,000 =============== =============== ============= ============== ============= =============
NEW YORK MUNICIPAL MONEY MARKET PORTFOLIO ----------------------------------- FOR THE FOR THE SIX MONTHS ENDED YEAR ENDED FEBRUARY 28, 1998 AUGUST 31, 1997 ----------------- --------------- (UNAUDITED) VALUE VALUE ------------- ------------- Shares sold: Bedford Class $ 198,382,196 $ 314,988,541 Bradford Class -- -- Cash Preservation Class -- -- Janney Montgomery Scott Class 55,971,882 122,951,798 RBB Class -- -- Sansom Street Class -- -- Shares issued in reinvestment of dividends: Bedford Class 1,302,764 1,871,473 Bradford Class -- -- Cash Preservation Class -- -- Janney Montgomery Scott Class 398,072 821,173 RBB Class -- -- Sansom Street Class -- -- Shares repurchased: Bedford Class (170,020,493) (305,831,837) Bradford Class -- -- Cash Preservation Class -- -- Janney Montgomery Scott Class (60,842,337) (113,361,834) RBB Class -- -- Sansom Street Class -- -- ------------- ------------- Net increase (decrease) $ 25,192,084 $ 21,439,314 ============= ============= Janney Montgomery Scott Shares authorized 100,000,000 100,000,000 ============= ============= 24 THE JANNEY MONTGOMERY SCOTT MONEY FUNDS THE RBB FUND, INC. NOTES TO FINANCIAL STATEMENTS (CONTINUED) FEBRUARY 28 1998 (UNAUDITED) NOTE 4. NET ASSETS At February 28, 1998, 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 $1,504,186,443 $214,533,311 $218,724,010 $108,821,352 Cash Preservation Class 198,797 99,373 -- -- Janney Montgomery Scott Class 822,075,114 106,022,955 396,094,280 25,970,670 Sansom Street Class 686,561,111 -- -- -- Other Classes 800 800 800 800 Accumulated net realized gain (loss) on investments Bedford Class (839) (73,189) (5,673) (12,592) Cash Preservation Class -- 3 -- -- Janney Montgomery Scott Class 1,028 32 (9,290) (19) Sansom Street Class (1,274) -- -- -- -------------- ------------ ------------ ------------ $3,013,021,180 $320,583,285 $614,804,127 $134,780,211 =============== ============ ============ ============
25 THE JANNEY MONTGOMERY SCOTT MONEY FUNDS THE RBB FUND, INC. NOTES TO FINANCIAL STATEMENTS (CONTINUED) FEBRUARY 28 1998 (UNAUDITED) NOTE 5. OTHER FINANCIAL HIGHLIGHTS The Fund currently offers three other classes of shares representing interests in the Money Market Portfolio: Bedford, Cash Preservation and Sansom Street. The Fund currently offers two other classes of shares representing interests in the Municipal Money Market Portfolio: Bedford and Cash Preservation. The Fund currently offers one other class of shares representing interests in the Government Obligations Money Market Portfolio: Bedford. 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 Cash Preservation Class is not presented in this report due to its immateriality. Such information is available in the annual report of the Cash Preservation 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 SIX MONTHS YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED FEBRUARY 28, 1998 AUGUST 31, 1997 AUGUST 31, 1996 AUGUST 31, 1995 AUGUST 31, 1994 ----------------- --------------- --------------- --------------- --------------- (UNAUDITED) Net asset value, beginning of period ................ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 ---------- ---------- ---------- -------- -------- Income from investment operations: Net investment income .............. 0.0236 0.0462 0.0469 0.0486 0.0278 ---------- ---------- ---------- -------- -------- Total from investment operations ...................... 0.0236 0.0462 0.0469 0.0486 0.0278 ---------- ---------- ---------- -------- -------- Less distributions Dividends (from net investment income) ........................... (0.0236) (0.0462) (0.0469) (0.0486) (0.0278) ---------- ---------- ---------- -------- -------- Total distributions ............... (0.0236) (0.0462) (0.0469) (0.0486) (0.0278) ---------- ---------- ---------- -------- -------- Net asset value, end of period ....... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 ========== ========== ========== ======== ======== Total Return ......................... 4.87(b) 4.72% 4.79% 4.97% 2.81% Ratios /Supplemental Data Net assets, end of period (000) .... $1,504,190 $1,392,911 $1,109,334 $935,821 $710,737 Ratios of expenses to average net assets ........................ .97%(a)(b) .97%(a) .97%(a) .96%(a) .95%(a) Ratios of net investment income to average net assets ............. 4.76%(b) 4.62% 4.69% 4.86% 2.78%
MUNICIPAL MONEY MARKET PORTFOLIO ----------------------------------------------------------------------------------------- FOR THE FOR THE FOR THE FOR THE FOR THE SIX MONTHS YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED FEBRUARY 28, 1998 AUGUST 31, 1997 AUGUST 31, 1996 AUGUST 31, 1995 AUGUST 31, 1994 ----------------- --------------- --------------- --------------- --------------- (UNAUDITED) Net asset value, beginning of period ............... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 -------- -------- -------- -------- -------- Income from investment operations: Net investment income ............. 0.0144 0.0285 0.0288 0.0297 0.0195 -------- -------- -------- -------- -------- Total from investment operations ..................... 0.0144 0.0285 0.0288 0.0297 0.0195 -------- -------- -------- -------- -------- Less distributions Dividends (from net investment income) .......................... (0.0144) (0.0285) (0.0288) (0.0297) (0.0195) -------- -------- -------- -------- -------- Total distributions .............. (0.0144) (0.0285) (0.0288) (0.0297) (0.0195) -------- -------- -------- -------- -------- Net asset value, end of period ...... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 ======== ======== ======== ======== ======== Total Return ........................ 2.94%(b) 2.88% 2.92% 3.01% 1.97% Ratios /Supplemental Data Net assets, end of period (000) ... $214,485 $213,034 $201,940 $198,425 $182,480 Ratios of expenses to average net assets ....................... .89%(a)(b) .85%(a) .84%(a) .82%(a) .77%(a) Ratios of net investment income to average net assets ............ 2.89%(b) 2.85% 2.88% 2.97% 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 1.11% annualized for the six months ended February 28, 1998, 1.12%, 1.14%, 1.17%, and 1.16% for the years ended August 31, 1997, 1996, 1995 and 1994, respectively. For the Municipal Money Market Portfolio, the ratios of expenses to average net assets would have been 1.13% annualized for the six months ended February 28, 1998, 1.14%, 1.12%, 1.14% and 1.12% for the years ended August 31, 1997, 1996, 1995 and 1994, respectively. (b) Annualized. 26 THE JANNEY MONTGOMERY SCOTT MONEY FUNDS THE RBB FUND, INC. NOTES TO FINANCIAL STATEMENTS (CONTINUED) FEBRUARY 28 1998 (UNAUDITED) NOTE 5. OTHER FINANCIAL HIGHLIGHTS (CONTINUED) THE BEDFORD FAMILY
GOVERNMENT OBLIGATIONS MONEY MARKET PORTFOLIO ----------------------------------------------------------------------------------------- FOR THE FOR THE FOR THE FOR THE FOR THE SIX MONTHS YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED FEBRUARY 28, 1998 AUGUST 31, 1997 AUGUST 31, 1996 AUGUST 31, 1995 AUGUST 31, 1994 ----------------- --------------- --------------- --------------- --------------- (UNAUDITED) Net asset value, beginning of period .............. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 -------- -------- -------- -------- -------- Income from investment operations: Net investment income ............ 0.0232 0.0449 0.0458 0.0475 0.0270 -------- -------- -------- -------- -------- Total from investment operations .................... 0.0232 0.0449 0.0458 0.0475 0.0270 -------- -------- -------- -------- -------- Less distributions Dividends (from net investment income) .............. (0.0232) (0.0449) (0.0458) (0.0475) (0.0270) -------- -------- -------- -------- -------- Total distributions ............. (0.0232) (0.0449) (0.0458) (0.0475) (0.0270) -------- -------- -------- -------- -------- Net asset value, end of period .................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 ======== ======== ======== ======== ======== Total Return ..................... 4.77%(b) 4.59% 4.68% 4.86% 2.73% Ratios /Supplemental Data Net assets, end of period (000) ............. $218,737 $209,715 $192,599 $163,398 $166,418 Ratios of expenses to average net assets .............. .975%(a)(b) .975%(a) .975%(a) .975%(a) .975%(a) Ratios of net investment income to average net assets ...................... 4.67%(b) 4.49% 4.58% 4.75% 2.70%
NEW YORK MUNICIPAL MONEY MARKET PORTFOLIO ----------------------------------------------------------------------------------------- FOR THE FOR THE FOR THE FOR THE FOR THE SIX MONTHS YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED FEBRUARY 28, 1998 AUGUST 31, 1997 AUGUST 31, 1996 AUGUST 31, 1995 AUGUST 31, 1994 ----------------- --------------- --------------- --------------- --------------- (UNAUDITED) Net asset value, beginning of period .............. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 -------- ------- ------- ------- ------- Income from investment operations: Net investment income ............ 0.0137 0.0276 0.0278 0.0290 0.0198 -------- ------- ------- ------- ------- Total from investment operations .................... 0.0137 0.0276 0.0278 0.0290 0.0198 -------- ------- ------- ------- ------- Less distributions Dividends (from net investment income) .............. (0.0137) (0.0276) (0.0278) (0.0290) (0.0198) -------- ------- ------- ------- ------- Total distributions ............. (0.0137) (0.0276) (0.0278) (0.0290) (0.0198) -------- ------- ------- ------- ------- Net asset value, end of period .................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 ======== ======= ======= ======= ======= Total Return ..................... 2.80%(c) 2.80% 2.83% 2.94% 2.00% Ratios /Supplemental Data Net assets, end of period (000) ............. $108,810 $79,146 $68,116 $60,330 $52,222 Ratios of expenses to average net assets .............. .84%(a)(b) .80%(a) .78%(a) .76%(a) .50%(a) Ratios of net investment income to average net assets ...................... 2.74(b) 2.76% 2.78% 2.90% 1.98% (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% annualized for the six months ended February 28, 1998, 1.09%, 1.10%, 1.13% and 1.17% for the years ended August 31,1997, 1996, 1995 and 1994, respectively. For the New York Municipal Money Market Portfolio, the ratios of expenses to average net assets would have been 1.12% annualized for the six months ended February 28, 1998, 1.13%, 1.14%, 1.22% and 1.20% for the years ended August 31, 1997, 1996, 1995 and 1994, respectively. (b) Annualized.
27 THE JANNEY MONTGOMERY SCOTT MONEY FUNDS THE RBB FUND, INC. NOTES TO FINANCIAL STATEMENTS (CONTINUED) FEBRUARY 28 1998 (UNAUDITED) NOTE 5. OTHER FINANCIAL HIGHLIGHTS (CONTINUED) BRADFORD GOVERNMENT OBLIGATIONS MONEY MARKET SHARES(c)
FOR THE FOR THE FOR THE FOR THE FOR THE MONTH YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED SEPTEMBER 30, 1997 AUGUST 31, 1997 AUGUST 31, 1996 AUGUST 31, 1995 AUGUST 31, 1994 ------------------ --------------- --------------- --------------- --------------- (Unaudited) Net asset value, beginning of period ......... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 -------- -------- -------- -------- -------- Income from investment operations: Net investment income ..................... 0.0038 0.0449 0.0458 0.0475 0.0270 -------- -------- -------- -------- -------- Total from investment operations ...... 0.0038 0.0449 0.0458 0.0475 0.0270 -------- -------- -------- -------- -------- Less distributions Dividends (from net investment income) ....... (0.0038) (0.0449) (0.0458) (0.0475) (0.0270) -------- -------- -------- -------- -------- Total distributions ................... (0.0038) (0.0449) (0.0458) (0.0475) (0.0270) -------- -------- -------- -------- -------- Net asset value, end of period ............... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 ======== ======== ======== ======== ======== Total Return ................................. 4.74%(b) 4.59% 4.68% 4.86% 2.73% Ratios /Supplemental Data Net assets, end of period ................. $ 44,931 $ 51,608 $ 57,190 $ 46,509 $ 39,732 Ratios of expenses to average net assets .. .975%(a)(b) .975%(a) .975%(a) .975%(a) .975%(a) Ratios of net investment income to average net assets ...................... 4.64%(b) 4.49% 4.58% 4.75% 2.70% (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 1.08% annualized for the month ended September 30, 1997, 1.09%, 1.10%, 1.13%, 1.18% and 1.18% for the years ended August 31, 1997, 1996, 1995 and 1994, respectively. (b) Annualized. (c) On October 1, 1997, the Government Obligation Portfolio's Bradford Class of 44,971,583 shares were liquidated.
28 THE JANNEY MONTGOMERY SCOTT MONEY FUNDS THE RBB FUND, INC. NOTES TO FINANCIAL STATEMENTS (CONTINUED) FEBRUARY 28 1998 (UNAUDITED) NOTE 5. OTHER FINANCIAL HIGHLIGHTS (CONTINUED) BRADFORD MUNICIPAL MONEY MARKET SHARES(c)
FOR THE FOR THE FOR THE FOR THE FOR THE MONTH YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED SEPTEMBER 30, 1997 AUGUST 31, 1997 AUGUST 31, 1996 AUGUST 31, 1995 AUGUST 31, 1994 ------------------ --------------- --------------- --------------- --------------- (UNAUDITED) Net asset value, beginning of period ........ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 -------- -------- -------- -------- -------- Income from investment operations: Net investment income .................... 0.0024 0.0285 0.0288 0.0297 0.0195 -------- -------- -------- -------- -------- Total from investment operations ..... 0.0024 0.0285 0.0288 0.0297 0.0195 -------- -------- -------- -------- -------- Less distributions Dividends (from net investment income) ...... (0.0024) (0.0285) (0.0288) (0.0297) (0.0195) -------- -------- -------- -------- -------- Total distributions .................. (0.0024) (0.0285) (0.0288) (0.0297) (0.0195) -------- -------- -------- -------- -------- Net asset value, end of period .............. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 ======== ======== ======== ======== ======== Total Return ................................ 2.97%(b) 2.88% 2.92% 3.01% 1.97% Ratios /Supplemental Data Net assets, end of period ................ $168,172 $166,089 $129,399 $110,936 $100,089 Ratios of expenses to average net assets . .89%(a)(b) .85%(a) .84%(a) .82%(a) .77%(a) Ratios of net investment income to average net assets ..................... 2.92%(b) 2.85% 2.88% 2.97% 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 1.13% annualized for the month ended September 30, 1997, 1.14%, 1.12%, 1.14%, 1.11% and 1.16% for the years ended August 31, 1997, 1996, 1995 and 1994, respectively. (b) Annualized. (c) On October 1, 1997, the Municipal Money Market Portfolio's Bradford Class of 168,177,203 shares were liquidated. 29 THE JANNEY MONTGOMERY SCOTT MONEY FUNDS THE RBB FUND, INC. NOTES TO FINANCIAL STATEMENTS (CONTINUED) FEBRUARY 28 1998 (UNAUDITED) NOTE 5. OTHER FINANCIAL HIGHLIGHTS (CONTINUED) THE SANSOM STREET FAMILY
MONEY MARKET PORTFOLIO ------------------------------------------------------------------------------------- FOR THE FOR THE FOR THE FOR THE FOR THE SIX MONTHS YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED FEBRUARY 28, 1998 AUGUST 31, 1997 AUGUST 31, 1996 AUGUST 31, 1995 AUGUST 31, 1994 ----------------- --------------- --------------- --------------- --------------- (UNAUDITED) Net asset value, beginning of period ......... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 -------- -------- -------- -------- -------- Income from investment operations: Net investment income ..................... 0.0260 0.0510 0.0518 0.0543 0.0334 -------- -------- -------- -------- -------- Total from investment operations ...... 0.0260 0.0510 0.0518 0.0543 0.0334 -------- -------- -------- -------- -------- Less distributions Dividends (from net investment income) .... (0.0260) (0.0510) (0.0518) (0.0543) (0.0334) -------- -------- -------- -------- -------- Total distributions ................... (0.0260) (0.0510) (0.0518) (0.0543) (0.0334) -------- -------- -------- -------- -------- Net asset value, end of period ............... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 ======== ======== ======== ======== ======== Total Return ................................. 5.37%(b) 5.22% 5.30% 5.57% 3.39% Ratios /Supplemental Data Net assets, end of period ................. $686,552 $570,018 $524,359 $441,614 $373,745 Ratios of expenses to average net assets ...................... .49%(a)(b) .49%(a) .48%(a) .39%(a) .39%(a) Ratios of net investment income to average net assets ...................... 5.23%(b) 5.10% 5.18% 5.43% 3.34% (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 .63% for the six months ended February 28, 1998, .64%, .65%, .59% and .60% for the years ended August 31, 1997, 1996, 1995 and 1994, respectively. (b) Annualized.
30 ======================================== 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-----