-----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, A99WvvlWtuMoguqAzdTHCFMdHDnRGJdcvqCU3HTMvYFBNGxhqqTfENJ6p75rsG4S ow7vwTxN7YAU148jMOS/Zw== 0000935069-98-000196.txt : 19981106 0000935069-98-000196.hdr.sgml : 19981106 ACCESSION NUMBER: 0000935069-98-000196 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19980831 FILED AS OF DATE: 19981105 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: 98738127 BUSINESS ADDRESS: STREET 1: 400 BELLEVUE PKWY STE 100 CITY: WILMINGTON STATE: DE ZIP: 19809 BUSINESS PHONE: 3027911791 MAIL ADDRESS: STREET 1: 103 BELLEVUE PKWY STREET 2: SUITE 152 CITY: WILMINGTON STATE: DE ZIP: 19809 FORMER COMPANY: FORMER CONFORMED NAME: FUND INC /DE/ DATE OF NAME CHANGE: 19600201 N-30D 1 JANNEY MONTGOMERY SCOTT ANNUAL REPORT =================================== ======================================= Established 1832 [LOGO] JMS INC. Investment Adviser THE JANNEY BlackRock Institutional Management MONTGOMERY SCOTT MONEY FUNDS Corporation Wilmington, Delaware Money Market Portfolio --------------------------------------- Custodian PNC Bank, National Association Municipal Philadelphia, Pennsylvania Money Market Portfolio --------------------------------------- Government Obligations Administrator and Transfer Agent Money Market Portfolio PFPC Inc. --------------------------------------- Wilmington, Delaware New York Municipal Money Market Portfolio --------------------------------------- Counsel Drinker Biddle & Reath L.L.P. Philadelphia, Pennsylvania Independent Accountants PricewaterhouseCoopers LLP Annual Report Philadelphia, Pennsylvania August 31, 1998 =================================== ======================================= THE JANNEY MONTGOMERY SCOTT MONEY FUNDS THE RBB FUND, INC. Annual Investment Adviser's Report Concerns about Asia's economic woes were exacerbated in the first two quarters of 1998, as signs of recession also spread to Russia, Latin America and South America. The consequences of this worldwide slowdown were evidenced by plummeting market capitalizations, particularly in August, for example, when the DJIA fell 17% in four weeks. Adding to the market's problems were the investigation of President Clinton and Russia's currency devaluation and delay in naming a new Prime Minister. The net effect of this global turmoil was a dramatic flight to the quality and safety of U.S. Treasury obligations. Yields on longer-term Treasuries fell almost 40 basis points to 5.20%, while three-month Treasury bills dropped below 4.90%. These sudden moves precipitated widespread expectations of a reduction in the federal funds rate. In not changing rates to date, the Fed has been particularly comforted by the positive news on inflation. For the year-to-date, wholesale prices were down almost 1%, while consumer prices were up only 1.5%. The Fed next meets at the end of September and there is growing sentiment for a rate cut. During the last two quarters, the federal funds rate remained at 5.50%, a level not changed since March, 1997. The short-term yield curve remained very flat, with interest rate spreads narrowing through the month of August. Treasury bills continued as a haven for short-term cash and yields dropped sharply near the end of the period. In fact, the short Treasury curve inverted, with the three-month bills yielding more than the year bill. Throughout the period, overnight rates traded close to the federal funds level of 5.50%. Investment strategy sought to gradually extend the Money Market Portfolio's average maturity, as the likelihood of higher rates evaporated. Three to six-month investments were made at yields of 5.60-5.70% during periods of market weakness, while liquidity was maintained in repurchase agreements at yields near 5.50%. At the end of August, the Money Market Portfolio had assets of $2,315,558,300, while the Government Money Market Portfolio stood at $507,511,905. In the short-term tax-exempt market, interest rates also traded in a narrow band during the period. One-year notes remained generally in the 3.60-3.70% range, while shorter-term variable rate demand notes fluctuated from highs near 4.50% to lows of 2.0%. During the April tax period, the tax-free portfolios maintained high levels of liquidity to meet possible redemptions. Average maturities were also kept moderately short in June as the maturity of general market notes reduced supply. In July and August, the portfolios began to extend slightly as new issuance returned to the market. At the end of August, the Municipal Money Market Portfolio and the New York Municipal Money Market Portfolio had assets of $245,170,814 and $31,054,666, respectively. Year 2000 System Preparedness BlackRock Institutional Management Corp. (BIMC) serves as investment adviser to The RBB Fund, Inc. BIMC wishes to confirm for fund investors that PNC Bank Corp. and its affiliates are actively addressing Year 2000 system changes across all of our businesses. Over the past eighteen months, we have reviewed all internal systems to determine whether there is Year 2000 exposure and, if so, how to remedy. Our corporate objective is to have all systems Year 2000 ready by December 31, 1998. Many systems have already been cleared. Those that require changes are currently undergoing active work and progressing satisfactorily. BlackRock Institutional Management Corporation (Please dial toll-free 800-677-6310 for questions regarding your account or contact your broker.) Report of Independent Accountants To the Shareholders and Board of Directors of The RBB Fund, Inc.: In our opinion, the accompanying statements of net assets of the Money Market, Government Obligations, New York Municipal Money Market and Municipal Money Market Portfolios of The RBB Fund, Inc. (the "Fund"), and the related statements of operations and changes in net assets, and the financial highlights present fairly, in all material respects, the financial position of the Money Market, Government Obligations, New York Municipal Money Market, and Municipal Money Market Portfolios of The RB Fund, Inc. at August 31, 1998, the results of their operations for the year then ended, changes in their net assets for each of the two years in the period then ended, and the financial highlights for each of the periods presented, in conformity with generally accepted accounting principles. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Fund's management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with generally accepted auditing standards which require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities owned at August 31, 1998 by correspondence with the custodian and brokers, provide a reasonable basis for the opinion expressed above. PricewaterhouseCoopers LLP 2400 Eleven Penn Center Philadelphia, Pennsylvania October 2, 1998 2 THE JANNEY MONTGOMERY SCOTT MONEY FUNDS THE RBB FUND, INC. Money Market Portfolio Statement of Net Assets August 31, 1998 Par (000) Value -------- ------------ AGENCY OBLIGATIONS--0.9% Student Loan Marketing Association+ 5.240% 09/01/98 ............................... $10,000 $ 10,000,000 5.250% 09/01/98 ............................... 10,000 10,000,000 ------------ TOTAL AGENCY OBLIGATIONS (Cost $20,000,000) ........................ 20,000,000 ------------ CERTIFICATES OF DEPOSIT--13.8% Banks--2.6% Credit Communal de Belgique 5.750% 04/01/99 ............................... 30,000 29,991,636 First National Bank of Boston 5.570% 10/06/98 ............................... 30,000 30,000,000 ------------ 59,991,636 ------------ Domestic Certificates of Deposit--1.1% Wilmington Trust Co. 5.580% 10/08/98 ............................... 25,000 25,000,000 ------------ Yankee Dollar Certificates of Deposit--10.1% Bank Austria 5.670% 07/23/99 ............................... 9,000 9,001,648 Canadian Imperial Bank of Commerce 5.660% 02/26/99 ............................... 40,000 39,990,652 Credit Communal de Belgique 5.620% 12/28/98 ............................... 25,000 24,998,388 Deutsche Bank 5.670% 02/26/99 ............................... 16,000 15,991,821 5.750% 05/26/99 ............................... 25,000 25,010,645 Skandinaviska Enskilden Banken Funding, Inc. 5.560% 09/08/98 ............................... 10,000 10,000,000 Societe Generale 5.780% 10/08/98 ............................... 25,000 24,995,738 Svenska Handelsbanken Inc. 5.720% 03/31/99 ............................... 25,000 24,991,695 Swiss Bank 5.750% 05/07/99 ............................... 15,000 14,994,390 Westpac Banking Corp. 5.730% 04/16/99 ............................... 45,000 44,991,957 ------------ 234,966,934 ------------ TOTAL CERTIFICATES OF DEPOSIT (Cost $319,958,570) ....................... 319,958,570 ------------ COMMERCIAL PAPER--51.0% Asset Backed Securities--12.4% CC USA Inc. 5.495% 10/20/98 ....................... $ 15,000 $ 14,887,810 5.520% 11/09/98 ....................... 40,000 39,576,800 5.470% 01/29/99 ....................... 24,000 23,453,000 5.470% 02/05/99 ....................... 8,000 7,809,158 Corporate Asset Funding, Inc. 5.530% 09/22/98 ....................... 30,000 29,903,225 5.540% 09/23/98 ....................... 50,000 49,830,722 Corporate Receivables Corp. 5.550% 09/11/98 ....................... 20,000 19,969,167 Dakota Certificates Program 5.530% 09/04/98 ....................... 30,000 29,986,175 5.520% 09/25/98 ....................... 50,000 49,816,000 Windmill Funding 5.540% 09/28/98 ....................... 21,858 21,767,180 ------------ 286,999,237 ------------ Banks--13.0% AB Spintab Swedmortgage 5.530% 11/10/98 ....................... 25,000 24,731,181 5.520% 11/16/98 ....................... 15,000 14,825,200 5.520% 12/17/98 ....................... 40,000 39,343,733 5.510% 03/04/99 ....................... 25,000 24,295,944 Commerzbank 5.505% 10/16/98 ....................... 25,000 24,827,969 IMI Funding Corp. 5.510% 11/27/98 ....................... 24,270 23,946,825 5.510% 12/04/98 ....................... 32,827 32,354,711 5.480% 02/03/99 ....................... 17,136 16,731,686 IMI Funding Corp. (USA) 5.520% 11/09/98 ....................... 11,881 11,755,299 5.530% 11/16/98 ....................... 30,000 29,649,767 Nationsbank Corp. 5.510% 10/15/98 ....................... 30,000 29,797,967 Unifunding Inc. 5.420% 09/29/98 ....................... 30,000 29,873,533 ------------ 302,133,815 ------------ See Accompanying Notes to Financial Statements. 3 THE JANNEY MONTGOMERY SCOTT MONEY FUNDS THE RBB FUND, INC. Money Market Portfolio Statement of Net Assets (Continued) August 31, 1998 Par (000) Value -------- ------------ Business Credit Institutions--2.7% Enterprise Funding Corp. 5.510% 09/23/98 ....................... $ 40,000 $ 39,865,311 5.530% 09/23/98 ....................... 9,873 9,839,635 5.510% 12/02/98 ....................... 13,082 12,897,791 ------------ 62,602,737 ------------ Chemicals & Allied Products--1.6% Monsanto Co. 5.500% 12/07/98 ....................... 38,477 37,906,792 ------------ Finance Services--1.9% Triple A-1 Funding 5.530% 09/24/98 ....................... 13,328 13,280,911 5.550% 10/14/98 ....................... 30,000 29,801,125 ------------ 43,082,036 ------------ Food & Kindred Products--1.3% Diageo Capital PLC 5.450% 12/29/98 ....................... 30,000 29,459,542 ------------ Household Audio & Video Equipment--0.9% Panasonic Finance Inc. 5.450% 09/04/98 ....................... 20,000 19,990,917 ------------ Misc. Industrial & Commercial Machinery & Equipment--6.5% Komatsu Finance America 5.600% 09/09/98 ....................... 20,000 19,975,111 5.620% 09/11/98 ....................... 70,000 69,890,722 5.600% 11/13/98 ....................... 25,000 24,716,111 Mitsubishi Corporate Finance PLC 5.670% 09/14/98 ....................... 35,000 34,928,338 ------------ 149,510,282 ------------ Motor Vehicles & Car Bodies--1.2% BMW US Capital Corp. 5.500% 11/09/98 ....................... 28,000 27,704,833 ------------ Personal Credit Institutions--2.0% Countrywide Funding Corp. 5.540% 09/28/98 ....................... 47,500 47,302,637 ------------ Petroleum Refining--0.7% Chevron Transport Corp. 5.500% 11/20/98 ....................... $ 16,000 $ 15,804,444 -------------- Security Brokers & Dealers--6.8% Merrill Lynch & Co. Canadian DCP 5.450% 09/02/98 ....................... 50,000 49,992,431 Lehman Brothers Holdings, Inc. 5.550% 11/25/98+ ...................... 25,000 24,672,396 5.540% 01/22/99 ....................... 35,000 34,229,786 Nomura Holding America Inc. 5.650% 10/02/98 ....................... 6,000 5,970,808 5.650% 11/16/98 ....................... 19,000 18,773,372 5.650% 11/23/98 ....................... 25,000 24,674,340 -------------- 158,313,133 -------------- TOTAL COMMERCIAL PAPER (Cost $1,180,810,405) ............. 1,180,810,405 -------------- MUNICIPAL BONDS--3.4% Florida--0.1% Coral Springs,VRDN++ 5.650% 09/02/98 ....................... 2,500 2,500,000 -------------- Georgia--0.4% De Kalb County Development Authority Series 1995 B+ 5.650% 09/07/98 ....................... 9,485 9,485,000 -------------- Illinois--0.2% Illinois Health Facilities Authority Convertible/VRDN Revenue Bond (The Streeterville Corp. Project) Series 1993-B++ 5.700% 09/02/98 ....................... 4,400 4,400,000 -------------- Indiana--0.2% Bremen, Inc. TARN VRDN Series 1996 B 5.674% 09/03/98 ....................... 3,600 3,600,000 -------------- See Accompanying Notes to Financial Statements. 4 THE JANNEY MONTGOMERY SCOTT MONEY FUNDS THE RBB FUND, INC. Money Market Portfolio Statement of Net Assets (Continued) August 31, 1998 Par (000) Value -------- ------------ Kentucky--0.2% Boone County Taxable IDR Refunding Bonds VRDN (Square D Company Project) Series 1994-B+ 5.700% 09/02/98 ....................... $ 4,200 $ 4,200,000 ----------- Mississippi--1.2% Hinds County, IDR Revenue Bond VRDN Series 1992+ 5.650% 09/02/98 ....................... 1,860 1,860,000 Mississippi Business Finance Corp. IDR Revenue Bond VRDN (Dana Lighting Project) Series 1995+ 5.650% 09/07/98 ....................... 5,800 5,800,000 Mississippi Business Finance Corp. Taxable IDR Revenue Bond Series 1995+ 5.650% 09/07/98 ....................... 6,300 6,300,000 Mississippi Business Finance Corp. Taxable IDR Revenue Bond VRDN (Bryan Foods, Inc. Project) Series 1994+ 5.700% 09/02/98 ....................... 14,000 14,000,000 ----------- 27,960,000 ----------- North Carolina--0.5% City of Asheville Tax Corp.+ 5.650% 09/02/98 ....................... 10,800 10,800,000 ----------- Texas--0.6% South Central Texas Industrial Development Corp. Taxable IDR Revenue Bond VRDN (Rohr Industries Project) Series 1990+ 5.700% 09/02/98 ....................... 14,800 14,800,000 ----------- TOTAL MUNICIPAL BONDS (Cost $77,745,000) ................ 77,745,000 ----------- CORPORATE OBLIGATIONS--19.4% Banks--1.1% Istituto Bancario San Paolo di Torino+ 5.558% 09/08/98 ....................... $ 25,000 $ 24,986,786 ------------ Finance Services--7.3% General American Life+ 5.870% 09/01/98 ....................... 50,000 50,000,000 SMM Trust 1997-A+ 5.688% 09/23/98 ....................... 20,000 20,000,000 SMM Trust 1997-X+ 5.648% 09/14/98 ....................... 100,000 100,000,000 ------------ 170,000,000 ------------ Personal Credit Institutions--6.0% American Honda Finance Corp. Honda Motor Company, Ltd.+ 5.668% 09/14/98 ....................... 40,000 40,000,000 5.668% 09/16/98 ....................... 25,000 25,000,000 5.658% 10/28/98 ....................... 35,000 35,000,000 General Motors Acceptance Corp.+ 5.598% 11/26/98 ....................... 40,000 39,984,420 ------------ 139,984,420 ------------ Security Brokers & Dealers--5.0% Bear Stearns Companies, Inc.+ 5.622% 09/08/98 ....................... 25,000 25,000,808 5.615% 09/24/98 ....................... 40,000 40,000,000 Lehman Brothers Holdings, Inc.+ 5.708% 09/08/98 ....................... 50,000 50,000,000 ------------ 115,000,808 ------------ TOTAL VARIABLE RATE OBLIGATIONS (Cost $449,972,014) ............... 449,972,014 ------------ See Accompanying Notes to Financial Statements. 5 THE JANNEY MONTGOMERY SCOTT MONEY FUNDS THE RBB FUND, INC. Money Market Portfolio Statement of Net Assets (Continued) August 31, 1998 Par (000) Value -------- ------------ MEDIUM TERM NOTES--4.3% Banks--4.3% Skandinaviska Enskilda Banken Funding, Inc.+ 5.573% 09/14/98 ....................... $ 50,000 $ 49,987,920 Skandinaviska Enskilda Banken Funding, Inc. 5.610% 02/25/99 ....................... 50,000 49,990,700 -------------- TOTAL MEDIUM TERM NOTES (Cost $99,978,620) ................ 99,978,620 -------------- REPURCHASE AGREEMENTS--6.9% Lehman Government Securities Inc. (Agreement dated 08/31/98 to be repurchased at $60,009,917 collateralized by $77,315,556 Federal Home Loan Mortgage Corporation due 9/25/08 to 5/25/24. Market value of collateral is $61,801,006.) 5.95% 09/01/98 .......................... 60,000 60,000,000 Lehman Government Securities Inc. (Agreement dated 08/31/98 to be repurchased at $99,015,984, collateralized by $230,634,000 U.S. Government National Strips due 11/15/98 to 08/15/25. Market value of the collateral is $100,982,776.) 5.8125% 09/01/98 ........................ 99,000 99,000,000 -------------- TOTAL REPURCHASE AGREEMENTS (Cost $159,000,000) ............... 159,000,000 -------------- TOTAL INVESTMENTS AT VALUE--99.7% (Cost $2,307,464,609*) ................ 2,307,464,609 OTHER ASSETS IN EXCESS OF LIABILITIES--0.3% .................. 8,093,691 -------------- Value ------------ NET ASSETS (Applicable to 762,794,677 Bedford shares, 226,300 Cash Preservation shares, 904,558,200 Janney Montgomery Scott shares, 648,098,967 Sansom Street shares and 800 other shares)--100% .................... $2,315,558,300 ============== NET ASSET VALUE, Offering and redemption price per share ($2,315,558,300 divided by 2,315,678,944)........................... $ 1.00 ============== * Also cost for Federal income tax purposes. + Variable Rate Obligations -- The rate shown is the rate as of August 31, 1998 and the maturity date shown is the date the principal amount can be recovered through demand or put. ++ Put Bonds -- Maturity date is the put date. INVESTMENT ABBREVIATIONS VRDN........................ Variable Rate Demand Note LOC.................................. Letter of Credit IDR.....................Industrial Development Revenue TARN.................. Taxable Adjustable Revenue Note See Accompanying Notes to Financial Statements. 6 THE JANNEY MONTGOMERY SCOTT MONEY FUNDS THE RBB FUND, INC. Municipal Money Market Portfolio Statement of Net Assets August 31, 1998 Par (000) Value -------- ------------ MUNICIPAL BONDS--99.6% Arkansas--1.3% Arkansas Development Finance Authority Single Family Mortgage RB Mortgage-Backed Securities Program MB++ 3.700% 03/01/99 ....................... $ 3,230 $3,230,000 ---------- California--2.2% California Higher Education Student Loan RB Series D-2 DN++ 3.650% 07/01/99 ....................... 3,000 3,000,000 California Statewide Community Development Authority RB Floating Rate Trust Receipts Series A23-Reg D DN+ 3.550% 09/07/98 ....................... 2,500 2,500,000 ---------- 5,500,000 ---------- Colorado--3.3% Denver, City and County Of, Colorado Airport System Subordinate RB Series 1997A TECP++ 3.550% 11/17/98 ....................... 8,000 8,000,000 ---------- Connecticut--1.2% Connecticut Special Assessment Unemployment Compensation Advance Fund (Connecticut Unemployment Project) Series 1993 C MB++ 3.600% 07/01/99 ....................... 3,000 3,000,000 ---------- Florida--2.4% Capital Projects Finance Authority (Florida Hospital Association - Capital Projects Loan Program) Series 1998A DN+ 3.250% 09/07/98 ....................... 2,500 2,500,000 Flagler County Florida School District TAN 3.890% 06/30/99 ....................... 3,300 3,303,611 ---------- 5,803,611 ---------- Georgia--6.2% Bulloch County, Development Authority of Tax-Exempt Adjustable Mode IDA RB (Gold Kist Inc. Project) DN+ 3.450% 09/07/98 ....................... $ 5,700 $ 5,700,000 Middle Georgia Regional Development Authority IDA RB (Tolleson Lumber Co., Inc. Project) Series 1997 DN+ 3.450% 09/07/98 ....................... 4,500 4,500,000 Savannah Economic Development Authority RB (Georgia Kaolin Inc.) DN+ 3.400% 09/07/98 ....................... 5,000 5,000,000 ----------- 15,200,000 ----------- Idaho--1.5% Idaho State TAN 4.500% 06/30/99 ....................... 3,750 3,776,944 ----------- Illinois--7.0% Chicago Tender Notes MB++ 3.550% 02/04/99 ....................... 2,000 2,000,000 Chicago, City Of, IDA RB (Goose Island Beer O. Project) DN+ 3.630% 09/07/98 ....................... 2,100 2,100,000 Illinois Health Facilities Authority Revolving Fund Pooled Financing Program (The University of Chicago Project) TECP++ 3.750% 11/04/98 ....................... 8,000 8,000,000 Illinois Health Facility Authority (Evanston Hospital Corp. Project) Series 1996 MB++ 3.700% 07/15/99 ....................... 5,000 5,000,000 ----------- 17,100,000 ----------- Indiana--9.0% Bremen IDA RB Series 1996A (Universal Bearings, Inc. Project Private Placement) DN+ 3.600% 09/07/98 ....................... 5,000 5,000,000 Indiana Development Finance Authority IDA RB (Enterprise Center I Project) DN+ 3.400% 09/07/98 .................. 2,900 2,900,000 See Accompanying Notes to Financial Statements. 7 THE JANNEY MONTGOMERY SCOTT MONEY FUNDS THE RBB FUND, INC. Municipal Money Market Portfolio Statement of Net Assets (Continued) August 31, 1998 Par (000) Value -------- ------------ Indiana--(continued) Indiana Development Finance Authority IDA RB (Enterprise Center II Project) DN+ 3.400% 09/07/98 ..................... $ 2,000 $ 2,000,000 Indiana Development Finance Authority IDA RB (Enterprise Center IV Project) DN+ 3.400% 09/07/98 ..................... 7,500 7,500,000 Portage Economic Development RB (Breckenridge Apartments Project) DN+ 3.450% 09/07/98 ..................... 4,650 4,650,000 ----------- 22,050,000 ----------- Kentucky--7.0% Hopkinsville IDA RB (Douglas Autotech Corp. Project) Series 1995 DN+ 4.350% 09/07/98 ..................... 7,700 7,700,000 Kentucky Economic Development Finance Authority Hospital Facilities RB (Baptist Healthcare System) DN+ 3.350% 09/07/98 ..................... 1,500 1,500,000 Kentucky Interlocal School Transportation Association TAN and RAN Certificates of Participation 3.900% 06/30/99 ..................... 8,000 8,016,593 ----------- 17,216,593 ----------- Massachusetts--1.9% Commonwealth of Massachusetts Federal Highway Grant Anticipation Notes 1998 Series A Trust Receipt (Floater-Trs) DN+ 3.600% 09/02/98 ..................... 900 900,000 Whiteman-Hanson Regional School District BAN 4.000% 07/01/99 ..................... 1,000 1,001,195 Whiteman-Hanson Regional School District RAN 4.100% 06/30/99 ..................... 2,800 2,807,806 ----------- 4,709,001 ----------- Missouri--2.9% Kansas City IDA RB (Mid-America Health Services, Inc. Project) Series 1984 DN+ 3.470% 09/07/98 ..................... $ 1,100 $ 1,100,000 Missouri Environmental Improvement and Energy Resource Authority RB (Kansas City Power and Light Co. Project) Series 1992 DN+ 3.300% 09/07/98 ..................... 5,900 5,900,000 ----------- 7,000,000 ----------- Nebraska--1.5% Lancaster (Sun-Husker Foods, Inc. Project) DN+ 4.100% 09/07/98 ..................... 3,800 3,800,000 ----------- New Hampshire--0.6% New Hampshire State Business Finance Authority PCR RB (New England Power Co. Project) MB 3.650% 09/24/98 ..................... 1,500 1,500,000 ----------- New Jersey--0.2% New Jersey Economic Development Authority Economic Development RB (J. Jams Realty Co.) DN+ 3.200% 09/07/98 ..................... 500 500,000 ----------- New York--3.5% New York City G.O. Series 1994 H-3 TECP (Financial Security Assurance) 3.400% 10/09/98 ..................... 5,500 5,500,000 New York State Energy Research & Development Authority PCR Refunding RB (Niagara Mohawk) Series 1987A DN 3.200% 09/01/98 ..................... 3,110 3,110,000 ----------- 8,610,000 ----------- See Accompanying Notes to Financial Statements. 8 THE JANNEY MONTGOMERY SCOTT MONEY FUNDS THE RBB FUND, INC. Municipal Money Market Portfolio Statement of Net Assets (Continued) August 31, 1998 Par (000) Value -------- ------------ North Carolina--8.3% Charlotte-Mecklenburg Hospital Authority Health Care RB DN+ 3.200% 09/07/98 ................... $ 1,500 $ 1,500,000 Haywood Regional Medical Center RB Series 1997 DN+ 3.200% 09/07/98 ................... 1,800 1,800,000 North Carolina Educational Facilities Finance Agency (Duke University Project) DN+ 3.200% 09/07/98 ................... 3,200 3,200,000 North Carolina Medical Care Commission Health Care Facility RB (Lutheran Services for the Aging Project) Series 1998 DN+ 3.250% 09/07/98 ................... 4,000 4,000,000 North Carolina Medical Care Commission Hospital RB (Baptist Hospital Project) Series 1996 DN+ 3.250% 09/07/98 ................... 1,400 1,400,000 North Carolina Medical Care Community Hospital Lincoln Health System DN+ 3.300% 09/07/98 ................... 1,600 1,600,000 Rockingham County Industrial Facilities and Finance Authority PCR RB (Medibeg USA, Inc.) 1997 DN+ 3.400% 09/03/98 ................... 3,000 3,000,000 Wake County Industrial Facilities and Pollution Control Financing Authority RB (Carolina Power & Light Co. Project) Series 1987 DN+ 3.300% 09/07/98 ................... 1,200 1,200,000 Wake County Industrial Facility PCR RB (Carolina Power & Light Co.) Series B DN+ 3.300% 09/07/98 ................... 2,600 2,600,000 ----------- 20,300,000 ----------- Ohio--6.5% Canfield Local School District BAN 3.800% 04/15/99 ................... $ 4,900 $ 4,902,038 Clinton County Hospital RB (Ohio Hospital Capital, Inc. Pooled Financing Programs) DN+ 3.350% 09/07/98 ................... 2,000 2,000,000 Mahoning County (Youngstown Iron & Metal Inc. Project) DN+ 3.500% 09/07/98 ................... 2,040 2,040,000 Ohio State Higher Education Facilities Community RB Pooled Financing DN+ 3.350% 09/07/98 ................... 4,600 4,600,000 Trumbull County Health Care Facilities RB Series 1998 DN+ 3.350% 09/07/98 ................... 2,500 2,500,000 ----------- 16,042,038 ----------- Oklahoma--2.0% Oklahoma County Finance Authority IDA RB (Southwest Electric Co. Project) Series 1998 DN+ 3.450% 09/07/98 ................... 3,000 3,000,000 Oklahoma Development Finance Authority (Shawnee Funding Limited) DN+ 3.450% 09/07/98 ................... 2,000 2,000,000 ----------- 5,000,000 ----------- Oregon--0.7% Portland Multifamily Housing RB Village of Lovejoy Fountain DN+ 3.450% 09/07/98 ................... 1,600 1,600,000 ----------- Pennsylvania--3.0% Geisinger Authority Health System RB (Penn State Geisinger Health System) DN+ 3.350% 09/01/98 ................... 1,100 1,100,000 Philadelphia IDA RB (30th Street Station Project) Series 1987 DN+ (MBIA Insurance) 3.900% 09/30/98 ................... 6,300 6,300,000 ----------- 7,400,000 ----------- See Accompanying Notes to Financial Statements. 9 THE JANNEY MONTGOMERY SCOTT MONEY FUNDS THE RBB FUND, INC. Municipal Money Market Portfolio Statement of Net Assets (Continued) August 31, 1998 Par (000) Value -------- ------------ South Carolina--7.7% Berkeley County IDA RB (Nucor Corp.) Series 1998 DN+ 3.550% 09/07/98 ....................... $ 8,800 $ 8,800,000 Chesterfield County IDA RB (Culp, Inc.) DN+ 3.450% 09/07/98 ....................... 6,000 6,000,000 Marlboro County Solid Waste Disposal Facilities RB (Willamette Industries, Inc. Project) DN+ 3.500% 09/07/98 ....................... 1,100 1,100,000 South Carolina Jobs Economic Development Authority (Ellcon National Inc. Project) Series 1998B DN+ 3.400% 09/07/98 ....................... 3,000 3,000,000 ------------ 18,900,000 ------------ Tennessee--8.6% Clarksville Public Building Authority RB Series 1997 DN+ 3.300% 09/07/98 ....................... 1,900 1,900,000 Montgomery County Public Building Authority Pooled Financing RB (Montgomery County Loan Project) Series 1995 DN+ 3.300% 09/07/98 ....................... 9,900 9,900,000 Oak Ridge Solid Waste Disposal Facility Series 1996 M4 (Environmental Project) DN+ 3.450% 09/07/98 ....................... 5,100 5,100,000 Tennessee State School Bond Authority Higher Education Facilities TECP 3.500% 11/18/98 ....................... 4,200 4,200,000 ------------ 21,100,000 ------------ Texas--5.9% Brazos River Harbor Navigation District of Brazoria County PCR RB (The Dow Chemical Co. Project) 1988 TECP 3.500% 11/17/98 ....................... $ 9,980 $ 9,980,000 Denton IDA (Hartzell Manufacturing Inc. Project) DN+ 3.600% 09/07/98 ....................... 1,300 1,300,000 Lower Colorado River Authority Junior Lien Refunding RB Series 1996 DN+ 3.150% 09/07/98 ....................... 3,100 3,100,000 ------------ 14,380,000 ------------ Virginia--3.3% Metropolitan Washington D.C Airports Authority Flexible Term Revenue Notes TECP++ 3.550% 11/25/98 ....................... 5,000 5,000,000 Metropolitan Washington D.C Airports Authority Virginia Passenger Facility Flexible Term Notes TECP 3.500% 09/25/98 ....................... 3,000 3,000,000 ------------ 8,000,000 ------------ Wisconsin--1.8% Amery IDRB (Plastech Corp.) Series 1997 DN+ 3.600% 09/07/98 ....................... 2,000 2,000,000 Mequon, City of, IDA RB (Johnson Level GRW Investment Project) DN+ 3.450% 09/07/98 ....................... 2,500 2,500,000 ------------ 4,500,000 ------------ TOTAL INVESTMENTS AT VALUE--99.6% (Cost $244,218,187*) .................. 244,218,187 OTHER ASSETS IN EXCESS OF LIABILITIES--0.4% .................. 952,627 ------------ See Accompanying Notes to Financial Statements. 10 THE JANNEY MONTGOMERY SCOTT MONEY FUNDS THE RBB FUND, INC. Municipal Money Market Portfolio Statement of Net Assets (Concluded) August 31, 1998 Value ------------ NET ASSETS (Applicable to 147,705,175 Bedford shares, 91,997 Cash Preservation shares, 97,447,539 Janney Montgomery Scott shares and 800 other shares)--100% ......................... $ 245,170,814 =============== NET ASSET VALUE, Offering and redemption price per share ($245,170,814 divided by 245,245,511)........................... $ 1.00 =============== * Also cost for Federal income tax purposes. + Variable Rate Demand Notes -- The rate shown is the rate as of August 31, 1998 and the maturity date shown is the date the principal amount shown can be recovered through demand or put. ++ Put Bonds -- Maturity date is the put date. INVESTMENT ABBREVIATIONS BAN...........................Bond Anticipation Note DN.......................................Demand Note GO...............................General Obligations 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. 11 THE JANNEY MONTGOMERY SCOTT MONEY FUNDS THE RBB FUND, INC. Government Obligations Money Market Portfolio Statement of Net Assets August 31, 1998 Par (000) Value -------- ------------ AGENCY OBLIGATIONS--65.0% Federal Farm Credit Bank--2.0% 5.423% 03/02/99 .......................... $ 10,000 $ 9,997,557 ------------ Federal Home Loan Bank--15.6% 5.500% 09/01/98+ ......................... 10,000 9,994,137 5.436% 09/02/98+ ......................... 25,000 24,998,346 5.682% 10/16/98 .......................... 15,000 14,998,787 5.555% 02/26/99 .......................... 10,000 10,000,000 5.620% 04/01/99 .......................... 9,200 9,198,417 5.536% 07/15/99 .......................... 10,000 9,994,746 ------------ 79,184,433 ------------ Federal Home Loan Mortgage Corporation--11.8% 5.448% 09/21/98+ ......................... 35,000 34,986,875 5.350% 01/07/99 .......................... 10,000 9,809,778 5.505% 03/12/99 .......................... 5,000 4,997,099 5.550% 04/29/99 .......................... 10,000 9,990,729 ------------ 59,784,481 ------------ Federal National Mortgage Association--21.0% 5.136% 09/01/98+ ......................... 10,000 10,000,000 5.440% 09/01/98+ ......................... 25,000 24,996,110 5.500% 09/01/98+ ......................... 10,000 9,994,237 5.520% 09/01/98+ ......................... 10,000 9,996,986 5.431% 09/17/98+ ......................... 10,000 9,996,365 5.385% 09/28/98 .......................... 10,000 9,959,613 5.370% 02/26/99 .......................... 12,000 11,987,464 5.630% 05/05/99 .......................... 10,000 9,996,906 5.520% 08/09/99 .......................... 10,000 9,989,080 ------------ 106,916,761 ------------ Student Loan Marketing Association--14.6% 5.240% 09/01/98+ ......................... 9,000 8,999,957 5.250% 09/01/98+ ......................... 5,000 5,000,000 5.260% 09/07/98+ ......................... 18,000 17,985,431 5.790% 09/16/98 .......................... 20,000 19,999,668 5.400% 02/10/99 .......................... 7,000 6,995,070 5.520% 06/10/99 .......................... 15,000 14,985,790 ------------ 73,965,916 ------------ TOTAL AGENCY OBLIGATIONS (Cost $329,849,148) .................. 329,849,148 ------------ REPURCHASE AGREEMENTS--34.6% Greenwich Capital Markets (Agreement dated 08/31/98 to be repurchased at $65,010,472, collateralized by $122,392,000 RFCO Strips due 10/15/98 to 04/15/30. Market value of collateral is $66,950,843.) 5.800% 09/01/98 ............................ 65,000 $ 65,000,000 Lehman Brothers (Agreement dated 08/31/98 to be repurchased at $10,601,711, collataralized by $10,630,000 U.S. Treasury Notes due 06/30/99 to 06/30/08. Market value of collateral is $10,810,590.) 5.8125% 09/01/98 ........................... 10,600 10,600,000 Morgan Stanley (Agreement dated 08/31/98 to be repurchased at $100,016,146, collataralized by $10,260,000 First Home Mortgage Acceptance Corp. Strips due 9/10/98 to 9/17/98, $15,000,000 First Home Mortgage Acceptance Corp. 6.445% to 6.943% due 06/21/05 to 03/21/07, $66,365,000 Federal National Mortgage Association 5.65% to 8.9% due 05/07/99 to 01/13/11, 6,000,000 Federal National Mortgage Association Strip due 12/10/98, and $1,200,000 U.S. Treasury Bill due 12/10/98. Market Value of collateral is $103,013,765.) 5.8125% 09/01/98 ........................... 100,000 100,000,000 ------------ TOTAL REPURCHASE AGREEMENTS (Cost $175,600,000) .................. 175,600,000 ------------ TOTAL INVESTMENTS AT VALUE--99.6% (Cost $505,449,148*) ..................... 505,449,148 OTHER ASSETS IN EXCESS OF LIABILITIES--0.4% ..................... 2,062,757 ------------ See Accompanying Notes to Financial Statements. 12 THE JANNEY MONTGOMERY SCOTT MONEY FUNDS THE RBB FUND, INC. Government Obligations Money Market Portfolio Statement of Net Assets (Concluded) August 31, 1998 Value ------------ NET ASSETS (Applicable to 128,434,923 Bedford shares, 379,095,440 Janney Montgomery Scott shares and 800 other shares)--100% ............. $ 507,511,905 =============== NET ASSET VALUE, Offering and redemption price per share ($507,511,905 divided by 507,531,163)............... $ 1.00 =============== * Also cost for Federal income tax purposes. + Variable Rate Obligations -- The rate is the rate as of August 31, 1998 and the maturity date shown is the date the principal amount shown can be recovered through demand or put. 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 August 31, 1998 Par (000) Value -------- ------------ MUNICIPAL BONDS--99.4% New York--98.1% Albany New York City School District RAN 4.250% 10/15/98 .................... $ 1,000 $1,000,593 Auburn IDA RB Series 1997 DN+ (Fat Tire, LLC Project) 3.600% 09/07/98 .................... 1,000 1,000,000 Babylon IDA Resource Recovery (Ogden Martin Project) Series 1998 DN+ 2.800% 09/07/98 .................... 1,000 1,000,000 Chautauqua County IDA (The Red Wing Company, Inc.) Series 1985 DN+ 3.200% 09/03/98 .................... 1,000 1,000,000 Lancaster, Town Of, IDA RB DN (1997 Jiffy-Tite Co., Inc. Project)+ 3.600% 09/07/98 .................... 1,000 1,000,000 New York City G.O. 1994 H-3 TECP (Financial Security Assurance) 3.550% 09/22/98 .................... 1,000 1,000,000 New York City G.O. DN+ 3.150% 09/07/98 .................... 1,200 1,200,000 New York City G.O. Series 1992B DN+ 3.750% 09/01/98 .................... 200 200,000 New York City G.O. Series 1994 H-5 TECP 3.500% 09/21/98 .................... 1,000 1,000,000 New York City G.O. Series 1995 F-5 DN 3.050% 09/07/98+ ................... 900 900,000 New York City Series J-2 TECP 3.350% 09/08/98 .................... 1,000 1,000,000 New York City Health & Hospitals Health System RB Series 1997C DN+ 2.850% 09/01/98 .................... 1,200 1,200,000 New York City Housing Development Corp. (Columbus Gardens Project) Multi Family Mortgage RB Series 1993a DN+ 3.050% 09/01/98 .................... 500 500,000 Par (000) Value -------- ------------ New York--(continued) New York City Housing Development Corp. (Queenswood Apt.) DN+ 3.050% 09/07/98 .................... $ 1,200 $1,200,000 New York City Housing Development Corp. Multi-Family Rental Housing RB (Monterey) 1997 Series A DN+ 2.850% 09/07/98 .................... 1,200 1,200,000 New York City IDA DN (Laguardia Airport Association Project)+ 2.900% 09/07/98 .................... 1,200 1,200,000 New York City IDA RB DN (Field Hotel Project) (JFK Airport)+ 2.900% 09/07/98 .................... 1,000 1,000,000 New York Local Government Assistance Corp. DN+ 3.000% 09/07/98 .................... 900 900,000 New York State Dormitory Authority RB DN (Beverwyck Inc.)+ 2.950% 09/02/98 .................... 1,000 1,000,000 New York State Energy Research & Development Authority PCR RB MB++ 3.580% 03/01/99 .................... 1,000 1,000,000 New York State Energy Research & Development Authority Series 1987 B PCR (Niagara Mohawk) DN+ 3.850% 09/01/98 .................... 600 600,000 New York State Power Authority TECP 3.350% 10/15/98 .................... 1,000 1,000,000 New York State Power Authority TECP 3.400% 10/01/98 .................... 2,500 2,500,000 New York State Power MB 3.600% 09/01/98++ .................. 1,500 1,500,000 Niagara County IDA Solid Waste Disposal RB Series 1994 B DN (American Ref-Fuel Company Of Nigeria)+ 3.200% 09/07/98 .................... 900 900,000 Oneonta, City Of, City School District Otsego County RAN 1998 4.000% 06/18/99 .................... 1,275 1,277,431 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) August 31, 1998 Par (000) Value -------- ------------ New York--(continued) Oswego, County Of, Industrial Development Agency RB (Crysteel Manufacturing, Inc. Project) DN+ 3.600% 09/07/98 .................. $ 1,000 $ 1,000,000 Rotterdam BAN 4.000% 06/18/99 .................. 1,000 1,001,898 Suffolk County Water Authority BAN+ 2.900% 09/07/98 .................. 1,200 1,200,000 ----------- 30,479,922 ----------- Puerto Rico--1.3% Puerto Rico Industrial Medical Health Education and Environmental PCR (Anna G. Mendez Project) DN+ 3.500% 09/07/98 .................. 400 400,000 ----------- TOTAL INVESTMENTS AT VALUE--99.4% (Cost $30,879,922*) .............. 30,879,922 OTHER ASSETS IN EXCESS OF LIABILITIES--0.6% ............. 174,744 ----------- NET ASSETS (Applicable to 31,066,477 Janney Montgomery Scott shares and 800 other shares)--100.0% ............ $31,054,666 =========== NET ASSET VALUE, Offering and redemption price per share ($31,054,666 divided by 31,067,277)....................... $1.00 ===== * Also cost for Federal income tax purposes. + Variable Rate Demand Notes -- The rate shown is the rate as of August 31, 1998 and the maturity date shown is the date the principal amount shown can be recovered through demand or put. ++ Put Bonds -- Maturity date is the put date. INVESTMENT ABBREVIATIONS BAN.....................................Bond Anticipation Note DN................................................ Demand Note GO.........................................General Obligations 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 Year Ended August 31, 1998
Government New York Municipal Obligations Municipal Money Market Money Market Money Market Money Market Portfolio Portfolio Portfolio Portfolio ------------ ------------ ------------ ------------ Investment Income Interest ........................................ $ 150,707,431 $ 11,768,927 $ 32,071,102 $ 3,328,555 ------------- ------------- ------------- ------------- Expenses Investment advisory fees ........................ 9,618,695 1,061,254 2,373,423 328,132 Administration fees ............................. -- 312,593 -- 93,752 Distribution fees ............................... 11,703,324 1,836,326 3,373,849 536,409 Service organization fees ....................... 531,358 -- -- -- Directors' fees ................................. 51,825 6,089 11,240 1,726 Custodian fees .................................. 422,990 70,232 107,262 29,383 Transfer agent fees ............................. 3,362,291 110,557 612,396 54,107 Legal fees ...................................... 114,345 12,235 22,374 3,540 Audit fees ...................................... 180,246 20,132 39,663 3,166 Registration fees ............................... 309,694 152,640 132,000 13,097 Insurance expense ............................... 49,867 5,898 10,791 1,725 Printing fees ................................... 529,786 48,870 95,355 5,932 Miscellaneous ................................... 1,955 457 1,205 537 ------------- ------------- ------------- ------------- 26,876,376 3,637,283 6,779,558 1,071,506 Less fees waived ................................ (3,343,093) (831,111) (723,970) (295,200) Less expense reimbursement by advisor ........... (692,630) (55,085) (392,949) -- ------------- ------------- ------------- ------------- Total expenses ............................. 22,840,653 2,751,088 5,662,639 776,306 ------------- ------------- ------------- ------------- Net investment income .............................. 127,866,778 9,017,840 26,408,463 2,552,249 ------------- ------------- ------------- ------------- Realized loss on investments ....................... (95,478) (3,055) (5,792) -- ------------- ------------- ------------- ------------- Net increase in net assets resulting from operations $ 127,771,300 $ 9,014,785 $ 26,402,671 $ 2,552,249 ============= ============= ============= =============
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 Year Ended Year Ended Year Ended Year Ended August 31, 1998 August 31, 1997 August 31, 1998 August 31, 1997 ---------------- ---------------- ---------------- ---------------- Increase (decrease) in net assets: Operations: Net investment income ........................ $ 127,866,778 $ 116,087,132 $ 9,017,840 $ 12,741,126 Net gain (loss) on investments ................................ (95,478) 22,330 (3,055) (3,917) --------------- --------------- --------------- --------------- Net increase in net assets resulting from operations .................. 127,771,300 116,109,462 9,014,785 12,737,209 --------------- --------------- --------------- --------------- Distributions to shareholders: Dividends to shareholders from net investment income: Bedford shares ............................. (56,898,248) (56,929,832) (5,548,854) (5,758,068) Bradford shares ............................ -- -- (405,975) (4,148,194) Cash Preservation shares ................... (10,274) (10,852) (2,738) (2,492) Janney Montgomery Scott shares ................................... (38,111,646) (29,943,530) (3,060,273) (2,832,323) RBB shares ................................. -- (1,286) -- (49) Sansom Street shares ....................... (32,846,610) (29,201,632) -- -- Distribution in excess of net investment income: Bedford shares ............................. (7,165) -- -- -- Bradford shares ............................ -- -- -- -- Cash Preservation shares ................... (1) -- -- -- Janney Montgomery Scott shares ................................... (3,979) -- -- -- RBB shares ................................. -- -- -- -- Sansom Street shares ....................... (2,838) -- -- -- Total dividends to shareholders ........................... (127,880,761) (116,087,132) (9,017,840) (12,741,126) --------------- --------------- --------------- --------------- Net capital share transactions ................. (384,357,868) 504,179,861 (242,871,946) 67,161,386 --------------- --------------- --------------- --------------- Total increase (decrease) in net assets ................................... (384,467,329) 504,202,191 (242,875,001) 67,157,469 Net Assets: Beginning of year ............................ 2,700,025,629 2,195,823,438 488,045,815 420,888,346 --------------- --------------- --------------- --------------- End of year .................................. $ 2,315,558,300 $ 2,700,025,629 $ 245,170,814 $ 488,045,815 =============== =============== =============== ===============
Government Obligations New York Municipal Money Market Portfolio Money Market Portfolio ----------------------------------- ----------------------------------- For the For the For the For the Year Ended Year Ended Year Ended Year Ended August 31, 1998 August 31, 1997 August 31, 1998 August 31, 1997 ---------------- ---------------- ---------------- ---------------- Increase (decrease) in net assets: Operations: Net investment income ........................ $ 26,408,463 $ 26,187,519 $ 2,552,249 $ 2,735,239 Net gain (loss) on investments ................................ (5,792) (1,291) -- -- --------------- --------------- --------------- --------------- Net increase in net assets resulting from operations .................. 26,402,671 26,186,228 2,552,249 2,735,239 --------------- --------------- --------------- --------------- Distributions to shareholders: Dividends to shareholders from net investment income: Bedford shares ............................. (8,627,495) (9,057,728) (1,779,417) (1,905,788) Bradford shares ............................ (184,938) (2,084,419) -- -- Cash Preservation shares ................... -- -- -- -- Janney Montgomery Scott shares ................................... (17,595,930) (15,045,372) (772,832) (829,451) RBB shares ................................. -- -- -- -- Sansom Street shares ....................... -- -- -- -- Distribution in excess of net investment income: Bedford shares ............................. -- -- -- -- Bradford shares ............................ -- -- -- -- Cash Preservation shares ................... -- -- -- -- Janney Montgomery Scott shares ................................... -- -- -- -- RBB shares ................................. -- -- -- -- Sansom Street shares ....................... -- -- -- -- Total dividends to shareholders ........................... (26,408,363) (26,187,519) (2,552,249) (2,735,239) --------------- --------------- --------------- --------------- Net capital share transactions ................. (106,714,614) 57,686,497 (78,533,461) 21,439,314 --------------- --------------- --------------- --------------- Total increase (decrease) in net assets ................................... (106,720,306) 57,685,206 (78,533,461) 21,439,314 Net Assets: Beginning of year ............................ 614,232,211 556,547,005 109,588,127 88,148,813 --------------- --------------- --------------- --------------- End of year .................................. $ 507,511,905 $ 614,232,211 $ 31,054,666 $ 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 Year Year Year (Commencement of Ended Ended Ended Operations) to August 31, 1998 August 31, 1997 August 31, 1996 August 31, 1995 --------------- --------------- --------------- ---------------- Net asset value, beginning of year or period ....... $ 1.00 $ 1.00 $ 1.00 $ 1.00 -------- -------- -------- -------- Income from investment operations: Net investment income ... 0.0469 0.0459 0.0465 0.0112 -------- -------- -------- -------- Total from investment operations ........ 0.0469 0.0459 0.0465 0.0112 -------- -------- -------- -------- Less distributions Dividends (from net investment income) .... (0.0469) (0.0459) (0.0465) (0.0112) -------- -------- -------- -------- Total distributions.. (0.0469) (0.0459) (0.0465) (0.0112) -------- -------- -------- -------- Net asset value, end of year or period ... $ 1.00 $ 1.00 $ 1.00 $ 1.00 ======== ======== ======== ======== Total Return .............. 4.81% 4.69% 4.76% 5.30%(b) Ratios /Supplemental Data Net assets, end of year or period (000) ....... $904,526 $736,855 $561,865 $443,645 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 ............ 4.69% 4.59% 4.65% 5.04%(b)
Municipal Money Market Portfolio ---------------------------------------------------------------------- For the Period For the For the For the June 12, 1995 Year Year Year (Commencement of Ended Ended Ended Operations) to August 31, 1998 August 31, 1997 August 31, 1996 August 31, 1995 --------------- --------------- --------------- --------------- Net asset value, beginning of year or period ....... $ 1.00 $ 1.00 $ 1.00 $ 1.00 ------- -------- ------- -------- Income from investment operations: Net investment income ... 0.0290 0.0285 0.0278 0.0063 ------- -------- ------- -------- Total from investment operations ........ 0.0290 0.0285 0.0278 0.0063 ------- -------- ------- -------- Less distributions Dividends (from net investment income) .... (0.0290) (0.0285) (0.0278) (0.0063) ------- -------- ------- -------- Total distributions.. (0.0290) (0.0285) (0.0278) (0.0063) ------- -------- ------- -------- Net asset value, end of year or period ... $ 1.00 $ 1.00 $ 1.00 $ 1.00 ======= ======== ======= ======== Total Return .............. 2.94% 2.89% 2.81% 2.87%(b) Ratios /Supplemental Data Net assets, end of year or period (000) ....... $97,445 $108,826 $89,428 $113,256 Ratios of expenses to average net assets .... 0.86%(a) 0.85%(a) 0.94%(a) 1.00%(a)(b) Ratios of net investment income to average net assets ............ 2.90% 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%, 1.22%, 1.23% and 1.23% for the years or periods ended August 31, 1998, 1997, 1996 and 1995, respectively. For the Municipal Money Market Portfolio, the ratio of expenses to average net assets would have been 1.16%, 1.13%, 1.23% and 1.30% for the years ended August 31, 1998, 1997, 1996 and 1995, respectively. (b) Annualized. (c) Financial Highlights relate solely to the Janney Montgomery Scott Class of shares within each portfolio. 18 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 Year Year Year (Commencement of Ended Ended Ended Operations) to August 31, 1998 August 31, 1997 August 31, 1996 August 31, 1995 --------------- --------------- --------------- --------------- Net asset value, beginning of year or period ....... $ 1.00 $ 1.00 $ 1.00 $ 1.00 Income from investment operations: Net investment income ... 0.0460 0.0447 0.0456 0.0109 Total from investment operations ........ 0.0460 0.0447 0.0456 0.0109 Dividends (from net investment income) .... (0.0460) (0.0447) (0.0456) (0.0109) Total distributions . (0.0460) (0.0447) (0.0456) (0.0109) Net asset value, end of year or period ... $ 1.00 $ 1.00 $ 1.00 $ 1.00 4.71% 4.56% 4.66% 5.03%(b) Ratios/Supplemental Data Net assets, end of year (000) ..... $379,065 $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 ............ 4.60% 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 Year Year Year (Commencement of Ended Ended Ended Operations) to, August 31, 1998 August 31, 1997 August 31, 1996 August 31, 1995 --------------- --------------- --------------- --------------- Net asset value, beginning of year or period ....... $ 1.00 $ 1.00 $ 1.00 $ 1.00 Income from investment operations: Net investment income ... 0.0273 0.0276 0.0262 0.0062 Total from investment operations ........ 0.0273 0.0276 0.0262 0.0062 Dividends (from net investment income) .... (0.0273) (0.0276) (0.062) (0.0062) Total distributions . (0.0273) (0.0276) (0.0262) (0.0062) Net asset value, end of year or period ... $ 1.00 $ 1.00 $ 1.00 $ 1.00 2.77% 2.80% 2.65% 2.72%(b) Ratios/Supplemental Data Net assets, end of year (000) ..... $ 31,055 $ 30,442 $ 20,032 $ 14,671 Ratios of expenses to average net assets .... 0.80%(a) 0.80%(a) 0.93%(a) 1.00%(a)(b) Ratios of net investment income to average net assets ............ 2.73% 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%, 1.23%, 1.25% and 1.28% for the years or periods ended August 31, 1998, 1997, 1996 and 1995 respectively. For the New York Municipal Money Markey Portfolio, the ratio of expenses to average net assets would have been 1.20%, 1.13%, 1.25% and 1.28% for the years or periods ended August 31, 1998, 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 August 31, 1998 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 16.27 billion shares are currently classified into ninety-seven classes. Each class represents an interest in one of twenty-six investment portfolios of the Fund. The classes have been grouped into fifteen separate "families", nine of which have begun investment operations: the RBB Family, the BEA Family, the Sansom Street Family, the Bedford Family, the Cash Preservation Family, the Janney Montgomery Scott Money Family, the n/i Family, the Boston Partners Family and the Schneider 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 among all of the portfolios or classes of the Fund. C) DIVIDENDS AND 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 plus accrued interest. If the value of the underlying securities falls below 102% of the value of the purchase price plus accrued interest, the Fund will require the seller to deposit additional collateral by the next Fund business day. In the event that the seller under the agreement defaults on its repurchase obligation or fails to deposit sufficient collateral, the Fund has the contractual right, subject to the requirements of applicable bankruptcy and insolvency laws, to sell the underlying securities and may claim any resulting loss from the seller. The agreements are conditioned upon the collateral being deposited under the Federal Reserve book-entry system or with the Fund's custodian or a third party sub-custodian. 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 20 THE JANNEY MONTGOMERY SCOTT MONEY FUNDS THE RBB FUND, INC. Notes to Financial Statements (Continued) August 31, 1998 Note 1. Summary of Significant Accounting Policies (continued) 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. (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 In March 1998, PNC Institutional Management Corporation, which changed its name to BlackRock Institutional Management Corporation ("BIMC"), assumed the responsibilities of PNC Bank, as sub-advisor, to provide research, credit analysis and recommendations with respect to the Fund's investments and supply certain computer facilities, personnel and other services. The personnel and facilities related to these services are being transferred to BIMC and BIMC's obligation to pay to PNC Bank a portion of the advisory fee has been terminated. For its advisory services, BIMC 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. BIMC may, at its discretion, voluntarily waive all or any portion of its advisory fee for these portfolios. For each class of shares within a respective portfolio, the net advisory fee charged to each class is the same on a relative basis. For the year ended August 31, 1998, advisory fees and waivers for the four investment portfolios were as follows:
Gross Net Advisory Advisory Fee Waiver Fee -------------- -------------- ----------- Money Market Portfolio $9,618,695 $(3,334,990) $6,283,705 Municipal Money Market Portfolio 1,061,254 (822,533) 238,721 Government Obligations Money Market Portfolio 2,373,423 (723,970) 1,649,453 New York Municipal Money Market Portfolio 328,132 (267,374) 60,758
The investment advisor has agreed to reimburse each portfolio for the amount, if any, by which the total operating and management expenses exceed the cap. For the year ended August 31, 1998, the reimbursed expenses were $692,630, $55,085 and $392,949 for the Money Market Portfolio, Municipal Money Market Portfolio and Government Obligations Money Market Portfolio, respectively. 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. 21 THE JANNEY MONTGOMERY SCOTT MONEY FUNDS THE RBB FUND, INC. Notes to Financial Statements (Continued) August 31, 1998 Note 2. Transactions with Affiliates and Related Parties (continued) PFPC may, at its discretion, voluntarily waive all or any portion of its transfer agency fee for any class of shares. For the year ended August 31, 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 $1,474,000 $ -- $1,474,000 Cash Preservation Class 8,684 (8,103) 581 Janney Montgomery Scott Class 1,498,346 -- 1,498,346 Sansom Street Class 381,261 -- 381,261 ---------- ------- ---------- Total Money Market Portfolio $3,362,291 $(8,103) $3,354,188 ========== ======= ========== Municipal Money Market Portfolio Bedford Class $ 66,188 $ -- $ 66,188 Bradford Class 2,914 -- 2,914 Cash Preservation Class 8,997 (8,578) 419 Janney Montgomery Scott Class 32,458 -- 32,458 ---------- ------- ---------- Total Municipal Money Market Portfolio $ 110,557 $(8,578) $ 101,979 ========== ======= ========== Government Obligations Money Market Portfolio Bedford Class $ 57,762 $ -- $ 57,762 Bradford Class -- -- -- Janney Montgomery Scott Class 554,634 -- 554,634 ---------- ------- ---------- Total Government Obligations Money Market Portfolio $ 612,396 $ -- $ 612,396 ========== ======= ========== New York Municipal Money Market Portfolio Bedford Class $ 33,945 $ -- $ 33,945 Janney Montgomery Scott Class 20,162 -- 20,163 ---------- ------- ---------- Total New York Municipal Money Market Portfolio $ 54,107 $ -- $ 54,108 ========== ======= ==========
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 year ended August 31, 1998, administration fees and waivers for the two portfolios were as follows:
Gross Net Administration Administration Fee Waiver Fee -------------- ------------ --------------- Municipal Money Market Portfolio $312,593 -- $312,593 New York Municipal Money Market Portfolio 93,752 (7,826) 85,926
22 THE JANNEY MONTGOMERY SCOTT MONEY FUNDS THE RBB FUND, INC. Notes to Financial Statements (Continued) August 31, 1998 Note 2. Transactions with Affiliates and Related Parties (continued) The Fund, on behalf of each class of shares within the four investment portfolios, has adopted Distribution Plans pursuant to Rule 12b-1 under the Investment Company Act of 1940, as amended, and has entered into Distribution Contracts with Provident Distributors, Inc. ("PDI"), which provide for each class to make monthly payments, based on average net assets, to PDI 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. Prior to May 29, 1998, Counsellors Securities, Inc. served as distributor. For the year ended August 31, 1998, distribution fees for each class were as follows: Distribution Fee ------------ Money Market Portfolio Bedford Class $ 6,509,493 Cash Preservation Class 864 Janney Montgomery Scott Class 4,862,505 Sansom Street Class 330,462 ----------- Total Money Market Portfolio $11,703,324 =========== Municipal Money Market Portfolio Bedford Class $ 1,119,567 Bradford Class 83,480 Cash Preservation Class 394 Janney Montgomery Scott Class 632,885 ----------- Total Municipal Money Market Portfolio $ 1,836,326 =========== Government Obligations Money Market Portfolio Bedford Class $ 1,062,199 Bradford Class 23,951 Janney Montgomery Scott Class 2,287,699 ----------- Total Government Obligations Money Market Portfolio $ 3,373,849 =========== New York Municipal Money Market Portfolio Bedford Class $ 366,565 Janney Montgomery Scott Class 169,844 ----------- Total New York Municipal Money Market Portfolio $ 536,409 =========== The Fund has entered into service agreements with banks affiliated with PNC Bank who render support services to customers who are the beneficial owners of the Sansom Street Class in consideration of the payment of .10% of the daily net asset value of such shares. For the year ended August 31, 1998, service organization fees were $531,358 for the Money Market Portfolio. 23 THE JANNEY MONTGOMERY SCOTT MONEY FUNDS THE RBB FUND, INC. Notes to Financial Statements (Continued) August 31, 1998 Note 3. Capital Shares Transactions in capital shares (at $1 per capital share) for each year were as follows:
Municipal Money Market Money Market Portfolio Portfolio ----------------------------------- ---------------------------------- - For the For the For the For the Year Ended Year Ended Year Ended Year Ended August 31, 1998 August 31, 1997 August 31, 1998 August 31, 1997 7 --------------- --------------- --------------- --------------- - Value Value Value Value --------------- --------------- --------------- --------------- - Shares sold: Bedford Class $4,081,920,081 $4,513,203,668 $1,250,832,088 $1,075,834,153 Bradford Class -- -- 59,917,620 586,482,906 Cash Preservation Class 113,319 175,000 65,859 82,717 Janney Montgomery Scott Class 3,910,533,620 3,087,651,502 404,988,148 406,706,164 RBB Class -- 4,744 -- 200 Sansom Street Class 2,296,071,622 1,965,226,666 -- -- Shares issued in reinvestment of dividends: Bedford Class 56,201,453 55,886,643 5,440,322 5,696,659 Bradford Class -- -- 427,390 4,016,410 Cash Preservation Class 10,291 10,748 2,591 2,358 Janney Montgomery Scott Class 37,882,680 29,670,134 3,071,524 2,820,771 RBB Class -- 1,361 -- 53 Sansom Street Class 24,189,907 20,645,930 -- -- Shares repurchased: Bedford Class (4,768,237,064) (4,285,531,838) (1,321,667,987) (1,070,439,669) Bradford Class -- -- (226,438,837) (553,804,071) Cash Preservation Class (139,525) (145,893) (73,397) (103,897) Janney Montgomery Scott Class (3,780,710,398) (2,942,342,585) (419,437,268) (390,127,972) RBB Class -- (67,517) -- (5,396) Sansom Street Class (2,242,193,855) (1,940,208,702) -- -- --------------- --------------- --------------- --------------- Net increase (decrease) $ (384,357,869) $ 504,179,861 $ (242,871,947) $ 67,161,386 =============== =============== =============== =============== Scott Shares authorized 700,000,000 700,000,000 200,000,000 200,000,000 =============== =============== =============== ===============
Government Obligations New York Municipal Money Market Portfolio Money Market Portfolio ----------------------------------- --------------------------------- For the For the For the For the Year Ended Year Ended Year Ended Year Ended August 31, 1998 August 31, 1997 August 31, 1998 August 31, 199 --------------- --------------- --------------- -------------- Value Value Value Value --------------- --------------- --------------- -------------- Shares sold: Bedford Class $ 570,413,536 $ 606,875,958 $262,833,503 $314,988,541 Bradford Class 14,367,467 171,813,924 -- -- Cash Preservation Class -- -- -- -- Janney Montgomery Scott Class 1,493,397,997 1,232,450,606 140,080,501 122,951,798 RBB Class -- -- -- -- Sansom Street Class -- -- -- -- Shares issued in reinvestment of dividends: Bedford Class 8,589,078 8,971,804 1,726,370 1,871,473 Bradford Class 214,626 2,002,758 -- -- Cash Preservation Class -- -- -- -- Janney Montgomery Scott Class 17,567,622 14,958,191 773,147 821,173 RBB Class -- -- -- -- Sansom Street Class -- -- -- -- Shares repurchased: Bedford Class (660,253,321) (598,765,148) (343,716,758) (305,831,837) Bradford Class (66,190,133) (179,400,377) -- -- Cash Preservation Class -- -- -- -- Janney Montgomery Scott Class (1,484,821,486) (1,201,221,219) (140,230,224) (113,361,834) RBB Class -- -- -- -- Sansom Street Class -- -- -- -- --------------- --------------- --------------- --------------- Net increase (decrease) $ (106,714,614) $ 57,686,497 $ (78,533,461) 21,439,314 =============== =============== =============== =============== Scott Shares authorized 500,000,000 500,000,000 100,000,000 100,000,000 =============== =============== =============== ===============
24 THE JANNEY MONTGOMERY SCOTT MONEY FUNDS THE RBB FUND, INC. Notes to Financial Statements (Continued) August 31, 1998 Note 4. Net Assets At August 31, 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 $ 762,787,510 $147,705,175 $128,435,023 $ -- Cash Preservation Class 226,299 91,997 -- -- Janney Montgomery Scott Class 904,554,222 97,447,539 379,095,440 31,066,477 Sansom Street Class 648,096,129 -- -- -- Other Classes 800 800 800 800 Accumulated net realized gain (loss) on investments Bedford Class (34,771) (73,952) (6,501) -- Cash Preservation Class (11) 3 -- -- Janney Montgomery Scott Class (40,506) (748) (12,857) (12,611) Sansom Street Class (31,372) -- -- -- ------------- ------------ ------------ ----------- $2,315,558,300 $245,170,814 $507,511,905 $31,054,666 ============== ============ ============ ===========
Note 5. Capital Loss Carryover At August 31, 1998, capital loss carryovers were available to offset future realized gains as follows: $106,660 in the Money Market Portfolio of which $11,182 expires in 2004 and $95,478 expires in 2006; $74,697 in the Municipal Money Market Portfolio of which $55,760 expires in 1999, $444 expires in 2000, $1,058 expires in 2001, $9,789 expires in 2002, $674 expires in 2004, $3,917 expires in 2005 and $3,055 expires in 2006; $19,358 in the Government Obligations Money Market Portfolio of which $12,275 expires in 2004, $1,291 expires in 2005 and $5,792 expires in 2006; and $12,611 in the New York Municipal Money Market Portfolio of which $10,939 expired in 1998, $1,256 expires in 1999, $322 expires in 2002, $89 expires in 2003 and $5 expires in 2004. 25 THE JANNEY MONTGOMERY SCOTT MONEY FUNDS THE RBB FUND, INC. Notes to Financial Statements (Continued) August 31, 1998 Note 6. 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. 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 its respective family. The financial highlights of certain of the other classes are as follows: The Bedford Family
Money Market Portfolio ---------------------------------------------------------- For the For the For the For the For the Year Year Year Year Year Ended Ended Ended Ended Ended August 31, August 31, August 31, August 31, August 31, 1998 1997 1996 1995 1994 -------- ---------- ---------- -------- -------- Net asset value, beginning of year ............ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 -------- ---------- ---------- -------- -------- Income from investment operations: Net investment income ........ 0.0473 0.0462 0.0469 0.0486 0.0278 -------- ---------- ---------- -------- -------- Total from investment operations ................ 0.0473 0.0462 0.0469 0.0486 0.0278 -------- ---------- ---------- -------- -------- Less distributions Dividends (from net investment income) .......... (0.0473) (0.0462) (0.0469) (0.0486) (0.0278) -------- ---------- ---------- -------- -------- Total distributions (0.0473) (0.0462) (0.0469) (0.0486) (0.0278) -------- ---------- ---------- -------- -------- Net asset value, end of year ... $1.00 $1.00 $ 1.00 $ 1.00 $ 1.00 ======== ========== ========== ======== ======== Total Return ................... 4.84% 4.72% 4.79% 4.97% 2.81% Ratios /Supplemental Data Net assets, end of year (000) ........... $762,739 $1,392,911 $1,109,334 $935,821 $710,737 ======== ========== ========== ======== ======== Ratios of expenses to average net assets .......... .97%(a) .97%(a) .97%(a) .96%(a) .95%(a) Ratios of net investment income to average net assets .................. 4.73% 4.62% 4.69% 4.86% 2.78% Municipal Money Market Portfolio ------------------------------------------------------- For the For the For the For the For the Year Year Year Year Year Ended Ended Ended Ended Ended August 31, August 31, August 31, August 31, August 31, 1998 1997 1996 1995 1994 -------- -------- -------- -------- -------- Net asset value, beginning of year ............ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 -------- -------- -------- -------- -------- Income from investment operations: Net investment income ........ 0.0286 0.0285 0.0288 0.0297 0.0195 -------- -------- -------- -------- -------- Total from investment operations ................ 0.0286 0.0285 0.0288 0.0297 0.0195 -------- -------- -------- -------- -------- Less distributions Dividends (from net investment income) .......... (0.0286) (0.0285) (0.0288) (0.0297) (0.0195) -------- -------- -------- -------- -------- Total distributions (0.0286) (0.0285) (0.0288) (0.0297) (0.0195) -------- -------- -------- -------- -------- Net asset value, end of year ... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 ======== ======== ======== ======== ======== Total Return ................... 2.97% 2.88% 2.92% 3.01% 1.97% Ratios /Supplemental Data Net assets, end of year (000) ........... $147,633 $213,034 $201,940 $198,425 $182,480 ======== ======== ======== ======== ======== Ratios of expenses to average net assets .......... .89%(a) .85%(a) .84%(a) .82%(a) .77%(a) Ratios of net investment income to average net assets .................. 2.86% 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 1.10%, 1.12%, 1.14%, 1.17% and 1.16% for the years ended August 31, 1998, 1997, 1996, 1995 and 1994, respectively. For the Municipal Money Market Portfolio, the ratios of expenses to average net assets would have been 1.15%, 1.14%, 1.12%, 1.14% and 1.12% for the years ended August 31, 1998, 1997, 1996, 1995 and 1994, respectively. (b) Financial Highlights relate solely to the Bedford Class of shares within each portfolio. 26 THE JANNEY MONTGOMERY SCOTT MONEY FUNDS THE RBB FUND, INC. Notes to Financial Statements (Continued) August 31, 1998 Note 6. Other Financial Highlights (continued) The Bedford Family
New York Municipal Money Market Portfolio ---------------------------------------------------------- Government Obligations Money Market Portfolio ---------------------------------------------------------- For the For the For the For the For the Year Year Year Year Year Ended Ended Ended Ended Ended August 31, August 31, August 31, August 31, August 31, 1998 1997 1996 1995 1994 -------- ---------- ---------- ---------- ---------- Net asset value, beginning of year ............ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 -------- -------- -------- -------- -------- Income from investment operations: Net investment income ........ 0.0463 0.0449 0.0458 0.0475 0.0270 -------- -------- -------- -------- -------- Total from investment operations ................ 0.0463 0.0449 0.0458 0.0475 0.0270 -------- -------- -------- -------- -------- Less distributions Dividends (from net investment income) .......... (0.0463) (0.0449) (0.0458) (0.0475) (0.0270) -------- -------- -------- -------- -------- Total distributions (0.0463) (0.0449) (0.0458) (0.0475) (0.0270) -------- -------- -------- -------- -------- Net asset value, end of year ... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 ======== ======== ======== ======== ======== Total Return ................. 4.74% 4.59% 4.68% 4.86% 2.73% Ratios /Supplemental Data Net assets, end of year (000) ........... $128,447 $209,715 $192,599 $163,398 $166,418 Ratios of expenses to average net assets .......... .975%(a) .975%(a) .975%(a) .975%(a) .975%(a) Ratios of net investment income to average net assets .................. 4.63% 4.49% 4.58% 4.75% 2.70% New York Municipal Money Market Portfolio ------------------------------------------------------ For the For the For the For the For the Year Year Year Year Year Ended Ended Ended Ended Ended August 31, August 31, August 31, August 31, August 31 1998 1997 1996 1995 1994 -------- -------- -------- -------- -------- Net asset value, beginning of year ............ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 --------- ------- ------- ------- ------- Income from investment operations: Net investment income ........ 0.0182 0.0276 0.0278 0.0290 0.0198 --------- ------- ------- ------- ------- Total from investment operations ................ 0.0182 0.0276 0.0278 0.0290 0.0198 --------- ------- ------- ------- ------- Less distributions Dividends (from net investment income) .......... (0.0182) (0.0276) (0.0278) (0.0290) (0.0198) --------- ------- ------- ------- ------- Total distributions (0.0182) (0.0276) (0.0278) (0.0290) (0.0198) --------- ------- ------- ------- ------- Net asset value, end of year ... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 ====== ======= ======= ======= ======= Total Return ................. 2.07%(d) 2.80% 2.83% 2.94% 2.00% Ratios /Supplemental Data Net assets, end of year (000) ........... $ -- $79,146 $68,116 $60,330 $52,222 Ratios of expenses to average net assets .......... .84%(a)(c) .80%(a) .78%(a) .76%(a) .50%(a) Ratios of net investment income to average net assets .................. 1.82% 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 1.10%, 1.09%, 1.10%, 1.13% and 1.17% for the years ended August 31, 1998, 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 eight months ended April 30, 1998, 1.13%, 1.14%, 1.22% and 1.20% for the years ended August 31, 1997, 1996, 1995 and 1994, respectively. (b) Financial Highlights relate solely to the Bedford Class of shares within each portfolio. (c) Annualized. (d) Non-annualized. 27 THE JANNEY MONTGOMERY SCOTT MONEY FUNDS THE RBB FUND, INC. Notes to Financial Statements (Continued) August 31, 1998 Note 6. Other Financial Highlights (continued) Bradford Government Obligations Money Market Shares(c)
For the For the For the Month Year Year Ended Ended Ended September 30, 1997 August 31, 1997 August 31, 1996 ------------------ --------------- --------------- Net asset value, beginning of year or period.... $ 1.00 $ 1.00 $ 1.00 ------- ------- -------- Income from investment operations: Net investment income......... 0.0037 0.0449 0.0458 ------- ------- -------- Total from investment operations .............. 0.0037 0.0449 0.0458 ------- ------- -------- Less distributions Dividends (from net investment income)............. (0.0037) (0.0449) (0.0458) ------- ------- -------- Total distributions....... (0.0037) (0.0449) (0.0458) ------- ------- -------- Net asset value, end of year or period.......... $ 1.00 $ 1.00 $ 1.00 ======= ======= ======== Total Return .................... 0.38%(d) 4.59% 4.68% Ratios /Supplemental Data Net assets, end of year or period (000) ................ $44,931 $51,608 $ 57,190 Ratios of expenses to average net assets ......... .975%(a)(b) .975%(a) .975%(a) Ratios of net investment income to average net assets... 0.37%(d) 4.49% 4.58%
For the For the For the Year Year Year Ended Ended Ended August 31, 1995 August 31, 1994 August 31, 1993 --------------- --------------- --------------- Net asset value, beginning of year or period.... $ 1.00 $ 1.00 $ 1.00 ------- ------- ------- Income from investment operations: Net investment income......... 0.0475 0.0270 0.0231 ------- ------- ------- Total from investment operations ..................... 0.0475 0.0270 0.0231 ------- ------- ------- Less distributions Dividends (from net investment income)............. (0.0475) (0.0270) (0.0231) ------- ------- ------- Total distributions....... (0.0475) (0.0270) (0.0231) ------- ------- ------- Net asset value, end of year or period.......... $ 1.00 $ 1.00 $1.00 ======= ======= ======= Total Return .................... 4.86% 2.73% 2.33% Ratios /Supplemental Data Net assets, end of year or period (000) ................ $46,509 $39,732 $50,523 Ratios of expenses to average net assets ......... .975%(a) .975%(a) .975%(a) Ratios of net investment income to average net assets... 4.75% 2.70% 2.31%
(a) Without the waiver of advisory fees and without the reimbursement of certain operating expenses, the ratios of expenses to average net assets would have been 1.10% 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, 1994 and 1993, respectively. (b) Annualized. (c) On October 1, 1997, the Government Obligation Portfolio's Bradford Class of 44,971,583 shares were liquidated. (d) Non-annualized. 28 THE JANNEY MONTGOMERY SCOTT MONEY FUNDS THE RBB FUND, INC. Notes to Financial Statements (Continued) August 31, 1998 Note 6. Other Financial Highlights (continued) Bradford Municipal Money Market Shares(c)
For the For the For the Month Year Year Ended Ended Ended September 30, 1997 August 31, 1997 August 31, 1996 ------------------ --------------- --------------- Net asset value, beginning of year or period............. $ 1.00 $ 1.00 $ 1.00 -------- -------- -------- Income from investment operations: Net investment income ................. 0.0023 0.0285 0.0288 -------- -------- -------- Total from investment operations... 0.0023 0.0285 0.0288 -------- -------- -------- Less distributions Dividends (from net investment income)...................... (0.0023) (0.0285) (0.0288) -------- -------- -------- Total distributions ............... (0.0023) (0.0285) (0.0288) -------- -------- -------- Net asset value, end of year or period................... $ 1.00 $ 1.00 $ 1.00 ======== ======== ======== Total Return ............................. 0.24%(d) 2.88% 2.92% Ratios /Supplemental Data Net assets, end of year or period ..... $168,172 $166,089 $129,399 Ratios of expenses to average net assets .......................... .89%(a)(b) .85%(a) .84%(a) Ratios of net investment income to average net assets .................. 0.23%(d) 2.85% 2.88%
For the For the For the Year Year Year Ended Ended Ended August 31, 1995 August 31, 1994 August 31, 1993 --------------- --------------- --------------- Net asset value, beginning of year or period............. $ 1.00 $ 1.00 $ 1.00 -------- -------- ------- Income from investment operations: Net investment income ................. 0.0297 0.0195 0.0195 -------- -------- ------ Total from investment operations... 0.0297 0.0195 0.0195 -------- -------- ------ Less distributions Dividends (from net investment income)...................... (0.0297) (0.0195) (0.0195) -------- -------- ------ Total distributions ............... (0.0297) (0.0195) (0.0195) -------- -------- ------ Net asset value, end of year or period................... $ 1.00 $ 1.00 $ 1.00 ======== ======== ======= Total Return ............................. 3.01% 1.97% 1.96% Ratios /Supplemental Data Net assets, end of year or period ..... $110,936 $100,089 $76,975 Ratios of expenses to average net assets .......................... .82%(a) .77%(a) .77%(a) Ratios of net investment income to average net assets .................. 2.97% 1.95% 1.95%
(a) Without the waiver of advisory, transfer agency and administration fees and without the reimbursement of certain operating expenses, the ratio of expenses to average net assets would have been 1.13% 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, 1994 and 1993, respectively. (b) Annualized. (c) On October 1, 1997, the Municipal Money Market Portfolio's Bradford Class of 168,177,203 shares were liquidated. (d) Non-annualized. 29 THE JANNEY MONTGOMERY SCOTT MONEY FUNDS THE RBB FUND, INC. Notes to Financial Statements (Concluded) August 31, 1998 Note 6. Other Financial Highlights (continued) The Sansom Street Family
Money Market Portfolio ---------------------------------------------------------------------------------------- For the For the For the For the For the Year Year Year Year Year Ended Ended Ended Ended Ended August 31, 1998 August 31, 1997 August 31, 1996 August 31, 1995 August 31, 1994 --------------- -------------- --------------- --------------- --------------- Net asset value, beginning of year ..... 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 -------- -------- -------- --------- -------- Income from investment operations: Net investment income ............... 0.0520 0.0510 0.0518 0.0543 0.0334 -------- -------- -------- --------- -------- Total from investment operations... 0.0520 0.0510 0.0518 0.0543 .0334 -------- -------- -------- --------- -------- Less distributions Dividends (from net investment income) ........................... (0.0520) (0.0510) (0.0518) (0.0543) 0.0334) -------- -------- -------- --------- -------- Total distributions ............... (0.0520) (0.0510) (0.0518) (0.0543) 0.0334) -------- -------- -------- --------- -------- Net asset value, end of year ........... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 ======== ======== ======== ========= ======== Total Return ........................... 5.34% 5.22% 5.30% 5.57% 3.39% Ratios /Supplemental Data Net assets, end of year ............. $684,066 $570,018 $524,359 $ 441,614 $373,745 Ratios of expenses to average net assets ................ .49%(a) .49%(a) .48%(a) .39%(a) .39%(a) Ratios of net investment income to average net assets ................ 5.20% 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 .62%, .64%, .65%, .59% and .60% for the years ended August 31, 1998, 1997, 1996, 1995 and 1994, respectively. (b) Financial highlights relate solely to the Sansom Street Class of shares within the portfolio. 30 Tax Information for Shareholders (Unaudited) In the twelve months ended August 31, 1998 (the end of the Fund's fiscal year), 100% of the dividends paid by the Municipal Money Market and New York Municipal Money Market Portfolios were exempt-interest dividends for purposes of federal income taxes and free from such taxes. However, approximately 45% and 18% of such dividends was attributable to interest on private activity bonds which must be included in federal alternative minimum taxable income for the purpose of determining liability for federal alternative minimum tax. In January 1999, you will be furnished with a schedule showing the yearly percentage breakdown by state or U.S. possession of the source of interest earned by the Municipal Money Market and New York Municipal Money Market Portfolios in 1998. It is suggested that you consult your tax adviser concerning the applicability of state and local taxes to dividends paid by the Fund during the year. 31 -----END PRIVACY-ENHANCED MESSAGE-----