-----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, KkfVJAuE/12SUjA7ny8wj1iawpgZnhFtLJ/CsnSCsN63T5Ozice+7HO80DXoeqn5 38bNfE2C+bnRJDRF7aquZA== 0000935069-99-000071.txt : 19990504 0000935069-99-000071.hdr.sgml : 19990504 ACCESSION NUMBER: 0000935069-99-000071 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19990228 FILED AS OF DATE: 19990503 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: 99609326 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 BEDFORD SEMI-ANNUAL REPORT ================================================================================ THE BEDFORD FAMILY MONEY MARKET PORTFOLIO - -------------------------------------------------------------------------------- MUNICIPAL MONEY MARKET PORTFOLIO - -------------------------------------------------------------------------------- GOVERNMENT OBLIGATIONS MONEY MARKET PORTFOLIO - -------------------------------------------------------------------------------- SEMI-ANNUAL REPORT FEBRUARY 28, 1999 ================================================================================ THE BEDFORD FAMILY THE RBB FUND, INC. SEMI-ANNUAL INVESTMENT ADVISER'S REPORT United States government securities were a clear beneficiary of the global financial turbulence that dominated the markets in the second half of 1998. Propelled by a strong flight to safety, yields on short-term treasury and agency obligations fell sharply. Three-month treasury bill yields, for example, declined to as low as 3.65% in October, a drop of over 100 basis points in less than six months. The reasons for such a strong rally were many. The financial crisis that started a year ago in Asia spread to South America, Latin America and Russia where a devaluation and default made the situation appear particularly ominous. The rescue of a large U.S. based hedge fund in September also weighed heavily on investor confidence. As the threat of economic recession reaching the United States mounted, the Federal Reserve began an aggressive campaign to add liquidity to the financial system. Between September 29 and November 17, the Fed eased monetary policy three times, taking the federal funds rate down to 4.75%. Encouraged by similar moves by other central banks, the financial markets regained some measure of confidence by year-end. Treasury bill yields rose to 4.5% and equity markets staged strong recoveries. In addition to the strong rally in U.S. treasury obligations, the money markets witnessed a flattening of the yield curve as sentiment shifted towards an accommodative Fed that was willing to lower short-term interest rates to protect U.S. economic interests. In response, the Money Market and Government Obligations Money Market Portfolios sought to maintain moderately extended portfolio maturities to cushion their yields against the likelihood of still lower rates. Additionally, portfolio credit quality was given significant emphasis as both foreign and domestic bank and financial service companies came under intense ratings scrutiny. During the final quarter of the year, we restricted quite a few bank and broker credits from our list of approved securities. As of February 28, the Money Market Portfolio and the Government Obligations Money Market Portfolio had assets of $2,430,807,411 and $556,084,339, respectively. In the short-term tax-exempt market, yields also trended lower, due in part to the easing by the Fed but also due to generally lower new issue supply. As rates declined, municipal issuers opted to switch from short-term money market securities to longer-term debt issuance. The combination of lower supply and increased demand, as municipal money market fund assets grew, dropped the one-year Bond Buyer Note Index to 2.95%, versus 3.75% a year ago. The municipal yield curve was frequently inverted during the period, and the Municipal Money Market Portfolio maintained a high level of daily and weekly variable rate demand notes to preserve yield and liquidity. At the end of February, the Municipal Money Market Portfolio had assets of $272,481,826. BlackRock Institutional Management Corporation (Please dial toll-free 800-533-7719 for questions regarding your account or contact your broker.) THE BEDFORD FAMILY THE RBB FUND, INC. MONEY MARKET PORTFOLIO STATEMENT OF NET ASSETS FEBRUARY 28, 1999 (UNAUDITED) PAR (000) VALUE ------- ------------ CERTIFICATES OF DEPOSIT--13.9% DOMESTIC CERTIFICATES OF DEPOSIT--5.2% First National Bank of Chicago 4.975% 06/07/99 ............................ $ 25,000 $ 25,001,367 4.980% 01/06/00 ............................ 50,000 49,991,778 First Tennessee Bank N.A 4.900% 04/19/99 ............................ 50,000 50,000,000 ------------ 124,993,145 ------------ YANKEE DOLLAR CERTIFICATES OF DEPOSIT--8.7% Canadian Imperial Bank of Commerce 5.025% 01/27/00 ............................ 30,000 29,998,684 5.120% 02/23/00 ............................ 22,300 22,289,278 Credit Communal de Belgique 5.750% 04/01/99 ............................ 30,000 29,998,777 National Westminster Bank 4.980% 01/10/00 ............................ 15,000 14,997,502 Rabobank Nederland 5.660% 07/06/99 ............................ 10,000 10,020,543 Svenska Handelsbanken Inc. 5.720% 03/31/99 ............................ 25,000 24,998,819 Toronto Dominion NY 5.000% 01/05/00 ............................ 15,000 14,998,771 5.100% 02/22/00 ............................ 20,000 19,992,439 Westpac Banking Corp. 5.730% 04/16/99 ............................ 45,000 44,998,370 ------------ 212,293,183 ------------ TOTAL CERTIFICATES OF DEPOSIT (Cost $337,286,328) .................... 337,286,328 ------------ COMMERCIAL PAPER--58.1% AIRCRAFT ENGINES & PARTS--4.0% Allied Signal Inc. 4-2 4.810% 04/30/99 ............................ 48,000 47,615,200 4.830% 05/28/99 ............................ 25,000 24,704,833 4.920% 09/10/99 ............................ 25,000 24,340,583 ------------ 96,660,616 ------------ PAR (000) VALUE -------- ------------ ASSET BACKED SECURITIES--17.5% Barton Capital Corp. 4-2 4.870% 03/12/99 ............................ $ 75,211 $ 75,099,082 4.850% 04/19/99 ............................ 24,944 24,779,335 CXC Inc. 4-2 4.870% 03/16/99 ............................ 20,080 20,039,254 4.850% 04/12/99 ............................ 40,000 39,773,667 Dakota Certificates 4-2 4.880% 03/04/99 ............................ 40,000 39,983,733 4.840% 05/04/99 ............................ 50,000 49,569,778 4.830% 05/21/99 ............................ 25,000 24,728,312 Enterprise Funding Corp. 4-2 4.850% 05/25/99 ............................ 15,753 15,572,606 4.870% 05/25/99 ............................ 12,000 11,862,017 Quincy Cap Corp. 4-2 4.860% 03/12/99 ............................ 27,947 27,905,499 Triple A-1 Funding 4-2 4.860% 04/23/99 ............................ 55,291 54,895,393 Windmill Funding 4-2 4.850% 03/09/99 ............................ 40,000 39,956,889 ------------ 424,165,565 ------------ BANKS--7.7% AB Spin Tab Swedmortgage 3-A-3 5.170% 03/03/99 ............................ 30,000 29,991,383 5.510% 03/04/99 ............................ 25,000 24,988,521 5.060% 04/16/99 ............................ 40,000 39,741,378 4.910% 06/28/99 ............................ 50,000 49,188,486 4.840% 08/16/99 ............................ 20,000 19,548,267 Bank of America FSB 3-A-3 4.830% 07/27/99 ............................ 25,000 24,503,583 ------------ 187,961,618 ------------ BUSINESS CREDIT INSTITUTIONS--2.1% General Electric Capital Corp. 4.940% 03/16/99 ............................ 50,000 49,897,083 ------------ COMMUNICATION EQUIPMENT NEC--1.6% Alcatel Alsthom Inc. 3-A-3 4.900% 06/08/99 ............................ 40,000 39,461,000 ------------ See Accompanying Notes to Financial Statements. 2 THE BEDFORD FAMILY THE RBB FUND, INC. MONEY MARKET PORTFOLIO STATEMENT OF NET ASSETS (CONTINUED) FEBRUARY 28, 1999 (UNAUDITED) PAR (000) VALUE --------- ------------ ELECTRONIC & OTHER ELECTRICAL EQUIPMENT--0.4% General Electric Co. 3-A-3 4.820% 06/03/99 .............................. $ 9,969 $ 9,843,535 -------------- LIFE INSURANCE--1.0% Prudential Funding Corp. 3-A-3 4.760% 07/15/99 .............................. 25,000 24,550,444 -------------- MOTOR VEHICLES & CAR BODIES--0.6% Daimler-Benz North America 3-A-3 5.060% 04/05/99 .............................. 15,000 14,926,208 -------------- NEWSPAPER: PUBLISHING & PRINTING--5.5% Knight-Ridder Inc.-DCP 3-A-3 5.200% 03/18/99 .............................. 30,000 29,926,333 4.780% 06/14/99 .............................. 20,000 19,721,167 5.000% 06/14/99 .............................. 15,000 14,781,250 Knight-Ridder Inc.-DCP 4-2 5.200% 03/18/99 .............................. 20,000 19,950,889 5.200% 04/14/99 .............................. 50,000 49,682,222 -------------- 134,061,861 -------------- PERSONAL CREDIT INSTITUTIONS--3.1% General Motors Acceptance Corp. 3-A-3 4.870% 03/01/99 .............................. 75,000 75,000,000 -------------- Petroleum Refining--4.8% Koch Industries, Inc. 4-2 4.850% 03/04/99 .............................. 1,000 999,596 Repsol International 3-A-3 5.180% 03/15/99 .............................. 33,000 32,933,523 4.880% 06/07/99 .............................. 13,590 13,409,464 4.910% 06/28/99 .............................. 21,000 20,659,164 4.870% 07/15/99 .............................. 50,000 49,080,111 -------------- 117,081,858 -------------- SECURITY BROKERS & DEALERS--7.1% Goldman Sachs Group L.P. 5.230% 03/19/99 .............................. 73,000 72,809,105 Merrill Lynch & Co. Inc. 3-A-3 4.920% 03/05/99 .............................. 25,000 24,986,333 4.900% 05/24/99 .............................. 25,000 24,714,167 Morgan Stanley, Dean, Witter & Co. 4.810% 05/14/99 .............................. 50,000 49,505,639 -------------- 172,015,244 -------------- Par (000) Value -------- -------------- SHORT-TERM BUSINESS CREDIT INSTITUTIONS--2.1% Heller Financial Inc. 3-A-3 4.940% 03/24/99 .......................... $ 50,000 $ 49,842,194 -------------- TELEPHONE COMMUNICATIONS--0.6% BellSouth Telecommunications 3-A-3 4.780% 03/05/99 .......................... 12,568 12,561,325 GTE Funding 3-A-3 4.800% 03/26/99 .......................... 3,100 3,089,667 -------------- 15,650,992 -------------- TOTAL COMMERCIAL PAPER (Cost $1,411,118,218) ................ 1,411,118,218 -------------- MUNICIPAL BONDS--3.1% FLORIDA--0.1% Coral Springs,VRDN IDR (Suntrust)(DAGGER) 4.950% 03/03/99 .......................... 2,500 2,500,000 -------------- GEORGIA--0.4% De Kalb County Development Authority VRDN Series 1995 B (Emory University Project)(DAGGER) 4.950% 02/28/99 .......................... 9,485 9,485,000 -------------- ILLINOIS--0.2% Illinois Health Facilities Authority Convertible/ VRDN Revenue Bond (The Streeterville Corp. Project) Series 1993-B (First National Bank of Chicago)(DAGGER) 4.950% 03/03/99 .......................... 4,400 4,400,000 -------------- INDIANA--0.1% Bremen, Inc. VRDN Series 1996 B (Society National Bank, Cleveland)(DAGGER) 5.448% 03/04/99 .......................... 2,800 2,800,000 -------------- KENTUCKY--0.2% Boone County Taxable IDR Refunding Bonds VRDN (Square D Company Project) Series 1994-B (Credit Lyonnais)(DAGGER) 4.950% 03/03/99 .......................... 4,200 4,200,000 -------------- See Accompanying Notes to Financial Statements. 3 THE BEDFORD FAMILY THE RBB FUND, INC. MONEY MARKET PORTFOLIO STATEMENT OF NET ASSETS (CONTINUED) FEBRUARY 28, 1999 (UNAUDITED) PAR (000) VALUE --------- ------------ MISSISSIPPI--1.1% Hinds County, IDR Revenue Bond VRDN Series 1992(DAGGER) 4.950% 03/03/99 .......................... $ 1,690 $ 1,690,000 Mississippi Business Finance Corp. IDR Revenue Bond VRDN (Dana Lighting Project) Series 1995 (Sun Bank, N.A., Orlando)(DAGGER) 4.950% 03/07/99 .......................... 5,600 5,600,000 Mississippi Business Finance Corp. Taxable IDR Revenue Bond VRDN (Sun Bank, N.A., Orlando) Series 1995(DAGGER) 4.950% 03/07/99 .......................... 6,300 6,300,000 Mississippi Business Finance Corp. Taxable IDR Revenue Bond VRDN (Bryan Foods, Inc. Project) Series 1994(DAGGER) 4.950% 03/03/99 .......................... 14,000 14,000,000 -------------- 27,590,000 -------------- NORTH CAROLINA--0.4% City of Asheville Tax Corp. VRDN(DAGGER) 4.950% 03/03/99 .......................... 10,800 10,800,000 -------------- TEXAS--0.6% South Central Texas Industrial Development Corp. Taxable IDR Revenue Bond VRDN (Rohr Industries Project) Series 1990 (Citibank N.A.)(DAGGER) 4.950% 03/03/99 .......................... 14,800 14,800,000 -------------- TOTAL MUNICIPAL BONDS (Cost $76,575,000) ................... 76,575,000 -------------- VARIABLE RATE OBLIGATIONS--15.4% BANKS--6.0% Istituto Bancario Sao Paolo di Torino(DAGGER) 5.088% 03/08/99 .......................... 25,000 24,995,328 Nations Bank(DAGGER) 5.303% 04/02/99 .......................... 70,000 70,001,937 Royal Bank of Canada(DAGGER) 4.883% 03/14/99 .......................... 50,000 49,981,110 -------------- 144,978,375 -------------- Par (000) Value -------- -------------- FINANCE SERVICES--2.0% General American Life(DAGGER) 5.140% 03/01/99 .......................... $ 50,000 $ 50,000,000 -------------- PERSONAL CREDIT INSTITUTIONS--6.4% American Honda Finance Corp.(DAGGER) 5.219% 03/14/99 .......................... 40,000 40,000,000 5.200% 03/16/99 .......................... 25,000 25,000,000 4.938% 04/28/99 .......................... 35,000 35,000,000 3.085% 05/25/99 .......................... 15,000 14,997,033 General Motors Acceptance Corp.(DAGGER) 4.914% 05/26/99 .......................... 40,000 39,992,275 -------------- 154,989,308 -------------- SECURITY BROKERS & DEALERS--1.0% Bear Stearns Companies, Inc.(DAGGER) 4.905% 03/08/99 .......................... 25,000 25,000,218 -------------- TOTAL VARIABLE RATE OBLIGATIONS (Cost $374,967,901) .................. 374,967,901 -------------- MEDIUM TERM NOTES--0.3% SECURITY BROKERS & DEALERS--0.3% Goldman Sachs Group LP 5.280% 02/24/00 .......................... 7,500 7,499,852 -------------- TOTAL MEDIUM TERM NOTES (Cost $7,499,852) .................... 7,499,852 -------------- TIME DEPOSITS--3.1% Bank of Montreal 4.875% 03/01/99 .......................... 75,000 75,000,000 -------------- TOTAL TIME DEPOSITS (Cost $75,000,000) ................... 75,000,000 -------------- See Accompanying Notes to Financial Statements. 4 THE BEDFORD FAMILY THE RBB FUND, INC. MONEY MARKET PORTFOLIO STATEMENT OF NET ASSETS (CONCLUDED) FEBRUARY 28, 1999 (UNAUDITED) PAR (000) VALUE --------- -------------- REPURCHASE AGREEMENTS--5.8 Lehman Brothers (Agreement dated 02/26/99 to be repurchased at $141,356,520, collateralized by $91,564,115 Federal Home Loan Mortgage Corporation Collateralized Mortgage Obligation at rates of 6.23% to 6.849% due 04/15/28 to 09/15/28, $21,738,647 Federal National Mortgage Association Collateralized Mortgage Obligation at a rate of 6.50% due 09/25/28, $10,337,915 Federal Home Loan Mortgage Corporation Collateralized Mortgage Obligation at a rate of 5.44% due 02/15/28, $21,905,196 Federal National Mortgage Association Collateralized Mortgage Obligation at rates of 6.50% to 7.00% due 09/25/28 to 11/15/28. Market Value of Collateral is $145,545,873.) 4.800% 03/01/99 ....................... $141,300 $ 141,300,000 -------------- TOTAL REPURCHASE AGREEMENTS (Cost $141,300,000) ................. 141,300,000 -------------- TOTAL INVESTMENTS AT VALUE--99.7% (Cost $2,423,747,299*) .................. 2,423,747,299 -------------- VALUE -------------- OTHER ASSETS IN EXCESS OF LIABILITIES--0.3% .................... $ 7,060,112 -------------- NET ASSETS (Applicable to 589,664,368 Bedford shares, 158,401 Cash Preservation shares, 1,034,494,733 Janney Montgomery Scott shares, 776,662,225 Sansom Street shares, 29,824,176 Select shares, and 800 other shares)--100.0% ................... $2,430,807,411 ============== NET ASSET VALUE, Offering and Redemption Price Per Share ($2,430,807,411 (DIVIDE) 2,430,804,703 .. $1.00 ===== * Also cost for Federal income tax purposes. (DAGGER) Variable Rate Obligations -- The rate shown is the rate as of February 28, 1999 and the maturity date shown is the longer of the next interest rate readjustment date or the date the principal amount shown can be recovered through demand. INVESTMENT ABBREVIATIONS VRDN ..................................................Variable Rate Demand Note LOC ............................................................Letter of Credit IDR ..............................................Industrial Development Revenue See Accompanying Notes to Financial Statements. 5 THE BEDFORD FAMILY THE RBB FUND, INC. MUNICIPAL MONEY MARKET PORTFOLIO STATEMENT OF NET ASSETS FEBRUARY 28, 1999 (UNAUDITED) PAR (000) VALUE -------- -------------- MUNICIPAL BONDS--99.3% ARKANSAS--1.2% Arkansas Development Finance Authority Single Family Mortgage RB Mortgage-Backed Securities Program MB(DOUBLE DAGGER) 3.700% 07/01/99 .......................... $ 3,230 $ 3,230,000 -------------- CALIFORNIA--1.1% California Higher Education Student Loan RB DN Series D-2(DOUBLE DAGGER) 3.650% 07/01/99 .......................... 3,000 3,000,000 -------------- CONNECTICUT--1.1% Connecticut Special Assessment Unemployment Compensation Advance Fund (Connecticut Unemployment Project) Series 1993 C MB(DOUBLE DAGGER) 3.600% 07/01/99 .......................... 3,000 3,000,000 -------------- FLORIDA--4.4% Orange County, IDA RB (Lake Highland School Project) DN(DAGGER) 2.900% 03/07/99 .......................... 1,200 1,200,000 Capital Projects Finance Authority (Florida Hospital Association - Capital Projects Loan Program) Series 1998A DN(DAGGER) 3.100% 03/07/99 .......................... 2,500 2,500,000 Flagler County Florida School District TAN 3.890% 06/30/99 .......................... 3,300 3,301,447 Greater Orlando Airport Authority RB TECP 3.100% 05/20/99 .......................... 5,104 5,104,000 -------------- 12,105,447 -------------- GEORGIA--10.8% Bulloch County, Development Authority of, Tax-Exempt Adjustable Mode IDA RB (Gold Kist Inc. Project) DN(DAGGER) 3.050% 03/07/99 .......................... 5,700 5,700,000 Par (000) Value ------- -------------- GEORGIA--(CONTINUED) Burke County Development Authority PCR RB (Oglethorpe Power Corporation Vogtle Project) MB(DOUBLE DAGGER) 3.400% 05/27/99 ............................... $ 3,600 $ 3,600,000 Burke County Development Authority RB (Oglethorpe Power Corp. Vogtle Project) Series 1996 MB(DOUBLE DAGGER) 3.450% 05/01/99 ............................... 5,000 5,000,000 Forsyth County, Development Authority of, IDA RB (World Access, Inc. Project) 1998 DN(DAGGER) 3.100% 03/07/99 ............................... 2,000 2,000,000 McDuffie County, Development Authority Of, Georgia Waste Disposal RB (Temple-Inland Forest Products Corporation) 1998 TECP 3.500% 05/18/99 ............................... 2,500 2,500,000 Monroe County Development Authority PCR RB (Oglethorpe Power Corporation, Scherer Project) MB(DOUBLE DAGGER) 3.500% 05/28/99 ............................... 5,615 5,615,000 Savannah Economic Development Authority RB (Georgia Kaolin Inc.) DN(DAGGER) 3.050% 03/07/99 ............................... 5,000 5,000,000 -------------- 29,415,000 -------------- IDAHO--1.4% Idaho State TAN 4.500% 06/30/99 ............................... 3,750 3,760,795 -------------- ILLINOIS--13.0% Addison, Village Of, Dupage County, Industrial Revenue Refunding Bonds (General Binding Corp. Project) 1988 DN(DAGGER) 3.220% 03/07/99 ............................... 1,750 1,750,000 Chicago Gas Supply RB (Peoples Gas Light & Coke Co. Project) 1993B MB(DOUBLE DAGGER) 3.200% 12/01/99 ............................... 5,575 5,575,000 See Accompanying Notes to Financial Statements. 6 THE BEDFORD FAMILY THE RBB FUND, INC. MUNICIPAL MONEY MARKET PORTFOLIO STATEMENT OF NET ASSETS (CONTINUED) FEBRUARY 28, 1999 (UNAUDITED) PAR (000) VALUE ------- -------------- ILLINOIS--(CONTINUED) Chicago, City Of, IDA RB (Goose Island Beer O. Project) DN(DAGGER) 3.350% 03/07/99 ......................... $ 2,100 $ 2,100,000 Chicago, City Of, IDA RB Series 1998 (Zenith Controls Inc. Project) DN(DAGGER) 3.010% 03/07/99 ......................... 5,000 5,000,000 East Dundee, Kane and Cook Counties, IDA RB (Otto Engine Project) DN(DAGGER) 3.010% 03/07/99 ......................... 1,000 1,000,000 Illinois Health Facilites Authority (Children's Memorial Hospital) Series A MB(DOUBLE DAGGER) 2.950% 06/25/99 ......................... 2,000 2,000,000 Illinois Health Facilities Authority Revolving Fund Pooled Financing Program (The University of Chicago Project) TECP 2.950% 05/03/99 ......................... 4,000 4,000,000 Illinois Health Facility Authority RB (Evanston Hospital Corp. Project) Series 1996 MB(DOUBLE DAGGER) 3.700% 07/15/99 ......................... 5,000 5,000,000 Illinois Health Facility Authority RB MB (Evanston Hospital Corp. Project) Series A(DOUBLE DAGGER) 3.150% 08/02/99 ......................... 5,000 5,000,000 Illinois Housing Development Authority Community Redevelopment RB Series 1998 (Howard Theatre Development) DN(DAGGER) 3.010% 03/07/99 ......................... 2,800 2,800,000 Plainfield, Village of, IDA RB Series 1997 (Plainfield Moldings, Inc. Project) DN(DAGGER) 3.010% 03/07/99 ......................... 1,300 1,300,000 -------------- 35,525,000 -------------- INDIANA--10.0% Bremen IDA RB Series 1996 A (Universal Bearings, Inc. Project Private Placement) DN(DAGGER) 3.050% 03/07/99 ......................... 5,000 5,000,000 PAR (000) VALUE -------- -------------- INDIANA--(CONTINUED) Crawfordsville Industrial Economic Development RB (Pedcor Investments-Shady Knoll Apartments Project) DN(DAGGER) 3.050% 03/07/99 ......................... $ 3,365 $ 3,365,000 Indiana Development Finance Authority IDA RB (Enterprise Center I Project) DN(DAGGER) 3.010% 03/07/99 ......................... 2,900 2,900,000 Indiana Development Finance Authority IDA RB (Enterprise Center II Project) DN(DAGGER) 3.010% 03/07/99 ......................... 2,000 2,000,000 Indiana Development Finance Authority IDA RB (Enterprise Center IV Project) DN(DAGGER) 3.010% 03/07/99 ......................... 2,600 2,600,000 Indiana Development Finance Authority IDA RB (Enterprise Center VI Project) DN(DAGGER) 3.010% 03/07/99 ......................... 4,900 4,900,000 Indiana State Development Finance Authority Economic Development RB DN (Saroyan Hardwoods Inc. Project)(DAGGER) 3.050% 03/07/99 ......................... 1,700 1,700,000 Portage Economic Development RB (Breckenridge Apartments Project) DN(DAGGER) 3.100% 03/07/99 ......................... 4,650 4,650,000 -------------- 27,115,000 -------------- KANSAS--1.1% Wyandotte County Kansas City Municipal Temporary Notes Series AAAA 3.300% 02/01/00 ......................... 2,096 2,096,625 Wyandotte County Kansas City Municipal Temporary Notes Series YYY 3.300% 02/01/00 ......................... 1,020 1,020,426 -------------- 3,117,051 -------------- See Accompanying Notes to Financial Statements. 7 THE BEDFORD FAMILY THE RBB FUND, INC. MUNICIPAL MONEY MARKET PORTFOLIO STATEMENT OF NET ASSETS (CONTINUED) FEBRUARY 28, 1999 (UNAUDITED) PAR (000) VALUE -------- -------------- KENTUCKY--5.3% Henderson Industrial Building RB (Shamrock Technologies) 1997 DN(DAGGER) 3.050% 03/07/99 ......................... $ 3,341 $ 3,341,000 Kentucky Interlocal School Transportation Association TRAN Certificates of Participation 3.900% 06/30/99 ......................... 11,000 11,014,887 -------------- 14,355,887 -------------- MARYLAND--1.5% Maryland State Health & Higher Educational Authority RB (Doctors Community Hospital) Series 1997 - Second Issue DN(DAGGER) 2.890% 03/07/99 ......................... 2,000 2,000,000 Montgomery County Economic Development RB (Brooke Grove Foundation Inc. Project) Series 1998 DN(DAGGER) 2.890% 03/07/99 ......................... 2,000 2,000,000 -------------- 4,000,000 -------------- MASSACHUSETTS--3.2% Commonwealth of Massachusetts Federal Highway Grant Anticipation Notes 1998 Series A Trust Receipt DN(DAGGER) 3.000% 03/03/99 ......................... 900 900,000 Massachusetts State Development Finance Agency RB (Hatfield Inc. Project) 1998 DN(DAGGER) 2.950% 03/07/99 ......................... 4,000 4,000,000 Whiteman-Hanson Regional School District BAN 4.000% 07/01/99 ......................... 1,000 1,000,481 Whiteman-Hanson Regional School District RAN 4.100% 06/30/99 ......................... 2,800 2,803,127 -------------- 8,703,608 -------------- PAR (000) VALUE ------- -------------- MISSOURI--0.1% Kansas City IDA RB (Mid-America Health Services, Inc. Project) Series 1984 DN(DAGGER) 3.150% 03/07/99 .......................... $ 400 $ 400,000 -------------- NEBRASKA--1.4% Lancaster (Sun-Husker Foods, Inc. Project) DN(DAGGER) 4.300% 03/07/99 .......................... 3,800 3,800,000 -------------- NEW HAMPSHIRE--1.5% Dover BAN 4.250% 03/03/99 .......................... 1,000 1,000,057 New Hampshire State Business Finance Authority PCR RB (New England Power Co. Project) MB(DOUBLE DAGGER) 3.450% 05/04/99 .......................... 3,000 3,000,000 -------------- 4,000,057 -------------- NEW JERSEY--1.3% New Jersey Economic Development Authority RB (J. Jams Realty Co.) DN(DAGGER) 2.850% 03/07/99 ........................... 480 480,000 South Jersey Transportation Authority RB Series 1998 DN(DAGGER) 2.950% 11/03/99 ........................... 3,000 3,000,000 -------------- 3,480,000 -------------- NEW YORK--1.4% New York City G.O. DN 1992 Series D(DAGGER) 2.750% 03/01/99 ........................... 1,200 1,200,000 New York Housing Development Corp. Multifamily Rental Housing RB Related - Carnegie Park DN(DAGGER) 2.700% 03/07/99 ........................... 500 500,000 Niagara County IDA Solid Waste Disposal RB Series B DN American Re-Fuel(DAGGER) 2.900% 03/07/99 ........................... 2,000 2,000,000 -------------- 3,700,000 -------------- See Accompanying Notes to Financial Statements. 8 THE BEDFORD FAMILY THE RBB FUND, INC. MUNICIPAL MONEY MARKET PORTFOLIO STATEMENT OF NET ASSETS (CONTINUED) FEBRUARY 28, 1999 (UNAUDITED) PAR (000) VALUE -------- -------------- NORTH CAROLINA--5.0% Mecklenburg County G.O. Series 1996C DN(DAGGER) 2.850% 03/07/99 ......................... $ 6,700 $ 6,700,000 North Carolina Medical Care Commission Hospital RB Moses Cone Health System Series 1998 DN(DAGGER) 3.000% 03/07/99 ......................... 6,800 6,800,000 Wake County Industrial Facilities and Pollution Control Financing Authority RB (Carolina Power & Light Co. Project) Series 1987 DN(DAGGER) 3.050% 03/07/99 ......................... 200 200,000 -------------- 13,700,000 -------------- OHIO--6.5% Butler County BAN 3.500% 03/19/99 ......................... 2,000 2,000,392 3.550% 10/21/99 ......................... 1,000 1,002,481 Canfield Local School District BAN 3.800% 04/15/99 ......................... 4,900 4,900,406 Clinton County Hospital RB (Ohio Hospital Capital, Inc. Pooled Financing Programs) DN(DAGGER) 3.000% 03/07/99 ......................... 2,000 2,000,000 Mahoning County (Youngstown Iron & Metal Inc. Project) DN(DAGGER) 3.100% 03/07/99 ......................... 1,940 1,940,000 Montgomery County Variable Rate Healthcare Facilities RB Series 1998 DN(DAGGER) 3.000% 03/07/99 ......................... 770 770,000 Ohio State Higher Education Facilities Community RB Pooled Financing DN(DAGGER) 3.000% 03/07/99 ......................... 2,635 2,635,000 Trumbull County Health Care Facilities RB Series 1998 DN(DAGGER) 3.000% 03/07/99 ......................... 2,500 2,500,000 -------------- 17,748,279 -------------- Par (000) Value -------- -------------- OKLAHOMA--1.8% Oklahoma County Finance Authority IDA RB (Southwest Electric Co. Project) Series 1998 DN(DAGGER) 3.050% 03/07/99 ................................ $ 3,000 $ 3,000,000 Oklahoma Development Finance Authority (Shawnee Funding Limited) DN(DAGGER) 3.100% 03/07/99 ................................ 2,000 2,000,000 -------------- 5,000,000 -------------- OREGON--0.6% Portland Multifamily Housing RB Village of Lovejoy Fountain DN(DAGGER) 3.000% 03/07/99 ................................ 1,600 1,600,000 -------------- RHODE ISLAND--0.6% Rhode Island Housing and Mortgage Finance Corp. Homeownership Opportunity Bonds Series 24-B MB(DOUBLE DAGGER) 3.150% 12/15/99 ................................ 1,700 1,700,000 -------------- SOUTH CAROLINA--7.9% Berkeley County IDA RB (Nucor Corp.) Series 1998 DN(DAGGER) 3.050% 03/07/99 ................................ 3,100 3,100,000 Chesterfield County IDA RB (Culp, Inc.) DN(DAGGER) 3.050% 03/07/99 ................................ 6,000 6,000,000 Marlboro County Solid Waste Disposal Facilities RB (Willamette Industries, Inc. Project) DN(DAGGER) 3.050% 03/07/99 ................................ 1,100 1,100,000 Marlboro County, IDA RB (Reliance Trading Corp. of America Project) 1997 DN(DAGGER) 3.010% 03/07/99 ................................ 1,150 1,150,000 South Carolina Jobs Economic Development Authority (Ellcon National Inc. Project) Series 1998B DN(DAGGER) 3.050% 03/07/99 ................................ 3,000 3,000,000 South Carolina Jobs Economic Development Authority (YMCA) 1997 DN(DAGGER) 2.950% 03/07/99 ................................ 2,560 2,560,000 See Accompanying Notes to Financial Statements. 9 THE BEDFORD FAMILY THE RBB FUND, INC. MUNICIPAL MONEY MARKET PORTFOLIO STATEMENT OF NET ASSETS (CONTINUED) FEBRUARY 28, 1999 (UNAUDITED) PAR (000) VALUE -------- -------------- SOUTH CAROLINA--(CONTINUED) South Carolina Jobs Economic Development Authority RB (Tate Metalworks, Inc. Project) 1998 DN(DAGGER) 3.050% 03/07/99 ......................... $ 1,000 $ 1,000,000 Williamsburg County, IDA RB (Peddinghaus Corp. of South Carolina Project) Series 1997 DN(DAGGER) 3.010% 03/07/99 ......................... 3,500 3,500,000 -------------- 21,410,000 -------------- TENNESSEE--1.9% Oak Ridge Solid Waste Disposal Facility Series 1996 M4 (Environmental Project) DN(DAGGER) 3.100% 03/07/99 ......................... 5,100 5,100,000 -------------- TEXAS--4.1% Brazos River Harbor Navigation District of Brazoria County PCR RB (The Dow Chemical Co. Project) 1988 TECP 2.800% 05/03/99 ......................... 9,980 9,980,000 Denton IDA (Hartzell Manufacturing Inc. Project) DN(DAGGER) 3.250% 03/07/99 ......................... 1,300 1,300,000 -------------- 11,280,000 -------------- VIRGINIA--6.1% Metropolitan Washington D.C. Airports Authority Flexible Term Revenue Notes TECP 2.950% 04/23/99 ......................... 5,000 5,000,000 Metropolitan Washington D.C. Airports Authority, Passenger Facility Flexible Term Notes TECP 3.000% 04/19/99 ......................... 4,500 4,500,000 Metropolitan Washington D.C. Airports Authority, Passenger Facility Flexible Term Notes TECP 3.100% 03/29/99 ......................... 7,000 7,000,000 -------------- 16,500,000 -------------- PAR (000) VALUE -------- -------------- WASHINGTON--0.9% Grant County, Industrial Development Corp. of Port District No.1 (Dodson Road Orchards, L.L.C. Project) 1998 DN(DAGGER) 3.000% 03/07/99 ......................... $ 2,500 $ 2,500,000 -------------- WISCONSIN--4.1% Amery IDA RB (Plastech Corp.) Series 1997 DN(DAGGER) 3.250% 03/07/99 ......................... 2,000 2,000,000 Franklin, City Of, IDA RB Series 1998 (All Glass Aquarium Co., Inc. Project) DN(DAGGER) 3.050% 03/07/99 ......................... 4,500 4,500,000 Mequon, City of, IDA RB (Johnson Level GRW Investment Project) DN(DAGGER) 3.050% 03/07/99 ......................... 2,500 2,500,000 Wisconsin Rapids City IDA RB (Theile Kaolin of Wisconsin, Inc. Project) DN(DAGGER) 3.100% 03/07/99 ......................... 2,250 2,250,000 -------------- 11,250,000 -------------- TOTAL MUNICIPAL BONDS (Cost $270,496,124) ................. 270,496,124 -------------- See Accompanying Notes to Financial Statements. 10 THE BEDFORD FAMILY THE RBB FUND, INC. MUNICIPAL MONEY MARKET PORTFOLIO STATEMENT OF NET ASSETS (CONCLUDED) FEBRUARY 28, 1999 (UNAUDITED) VALUE ------------- TOTAL INVESTMENTS AT VALUE--99.3% (Cost $270,496,124*) .................................... $270,496,124 ------------- OTHER ASSETS IN EXCESS OF LIABILITIES--0.7% .................................... 1,985,702 ------------- NET ASSETS (Applicable to 153,902,250 Bedford shares, 228,816 Cash Preservation shares, 118,424,557 Janney Montgomery Scott shares and 800 other shares)--100% ................................. $ 272,481,826 ============= NET ASSET VALUE, Offering and redemption price per share ($272,481,826 (DIVIDE) 272,556,423) ..................... $1.00 ===== * Also cost for Federal income tax purposes. (DAGGER) Variable Rate Demand Notes -- The rate shown is the rate as of February 28, 1999 and the maturity date shown is the longer of the next interest readjustment date or the date the principal amount shown can be recovered through demand. (DOUBLE DAGGER) Put Bonds -- Maturity date is the put date. The Moody's Investor Service, Inc. and Standard and Poor's Ratings Group's ratings indicated are the most recent ratings available at February 28, 1999. INVESTMENT ABBREVIATIONS BAN ......................................................Bond Anticipation Note DN ..................................................................Demand Note GO ..........................................................General Obligations LOC ............................................................Letter of Credit IDA ............................................Industrial Development Authority MB ...............................................................Municipal Bond PCR ...................................................Pollution Control Revenue RAN ...................................................Revenue Anticipation Note RAW ...............................................Revenue Anticipation Warrants RB .................................................................Revenue Bond TAN .......................................................Tax Anticipation Note TECP ................................................Tax Exempt Commercial Paper TRAN ..........................................Tax and Revenue Anticipation Note See Accompanying Notes to Financial Statements. 11 THE BEDFORD FAMILY THE RBB FUND, INC. GOVERNMENT OBLIGATIONS MONEY MARKET PORTFOLIO STATEMENT OF NET ASSETS FEBRUARY 28, 1999 (UNAUDITED) PAR (000) VALUE -------- -------------- AGENCY OBLIGATIONS--65.2% FEDERAL FARM CREDIT BANK--4.5% 4.782% 03/02/99 .......................... $ 10,000 $ 9,999,986 4.760% 01/18/00 .......................... 15,000 14,985,557 ------------ 24,985,543 ------------ FEDERAL HOME LOAN BANK--16.0% 4.830% 03/01/99(DAGGER) .................. 10,000 9,998,010 4.890% 03/01/99(DAGGER) .................. 10,000 9,999,351 4.890% 03/01/99(DAGGER) .................. 10,000 9,995,245 5.620% 04/01/99 .......................... 9,200 9,199,768 5.536% 07/15/99 .......................... 10,000 9,997,746 4.900% 01/14/00 .......................... 10,000 9,998,634 4.850% 01/27/00 .......................... 10,000 10,000,000 4.950% 02/17/00 .......................... 10,000 9,994,826 5.035% 02/25/00 .......................... 10,000 9,994,165 ------------ 89,177,745 ------------ FEDERAL HOME LOAN MORTGAGE CORPORATION--23.3% 4.737% 03/22/99(DAGGER) .................. 35,000 34,997,115 4.980% 03/05/99 .......................... 10,000 9,994,467 5.505% 03/12/99 .......................... 5,000 4,999,834 4.960% 03/18/99 .......................... 35,000 34,918,022 4.740% 04/15/99 .......................... 20,000 19,881,500 5.550% 04/29/99 .......................... 10,000 9,997,721 4.750% 05/24/99 .......................... 15,000 14,833,750 ------------ 129,622,409 ------------ FEDERAL NATIONAL MORTGAGE ASSOCIATION--18.7% 4.830% 03/01/99(DAGGER) .................. 10,000 9,998,115 4.595% 03/02/99(DAGGER) .................. 10,000 10,000,000 5.116% 03/02/99(DAGGER) .................. 10,000 9,999,466 5.630% 05/05/99 .......................... 24,000 24,018,717 5.650% 05/26/99 .......................... 5,295 5,301,655 4.750% 06/10/99 .......................... 10,000 9,866,736 5.520% 08/09/99 .......................... 10,000 9,994,859 4.755% 05/19/99 .......................... 10,000 9,895,654 4.860% 02/10/00 .......................... 15,000 14,989,051 ------------ 104,064,253 ------------ PAR (000) VALUE ---------- ------------ STUDENT LOAN MARKETING ASSOCIATION--2.7% 5.520% 06/10/99 .......................... $ 15,000 $ 14,994,911 ------------ TOTAL AGENCY OBLIGATIONS (Cost $362,844,861) .................. 362,844,861 ------------ REPURCHASE AGREEMENTS--34.5% Greenwich Capital Markets (Agreement dated 02/26/99 to be repurchased at $25,010,104, collateralized by $5,343,334 Resolution Trust Company Strip Principles at rates of 8.125% to 9.375% due 10/15/19 to 04/15/30 and $20,406,830 Resolution Trust Company Strips due 04/15/99 to 07/15/21. Market value of collateral is $25,750,164.) 4.850% 03/01/99 ........................ 25,000 25,000,000 Lehman Brothers (Agreement dated 02/26/99 to be repurchased at $50,019,917, collateralized by Government National Mortgage Association at rates of 6.125% to 9.5% due 04/15/10 to 11/20/24. Market value of collateral is $51,500,593.) 4.780% 03/01/99 ........................ 50,000 50,000,000 Morgan Stanley (Agreement dated 02/26/99 to be repurchased at $100,040,625, collateralized by $70,086,095 Federal National Mortgage Corporation at rates of 6.30% to 6.85% due 03/09/99 to 05/14/13, and $29,947,752 Federal National Mortgage Association at rates of 5.27% to 6.26% due 05/03/00 to 02/25/09. Market value of collateral is $100,033,847.) 4.875% 03/01/99 ........................ 100,000 100,000,000 See Accompanying Notes to Financial Statements. 12 THE BEDFORD FAMILY THE RBB FUND, INC. GOVERNMENT OBLIGATIONS MONEY MARKET PORTFOLIO STATEMENT OF NET ASSETS (CONCLUDED) FEBRUARY 28, 1999 (UNAUDITED) PAR (000) VALUE ---------- ------------ REPURCHASE AGREEMENTS--(CONTINUED) Warburg Dillon Read (Agreement dated 02/26/99 to be repurchased at $16,806,650, collateralized by United States Treasury Bond at rate of 5.50% due 08/15/28. Market value of collateral is $16,813,213.) 4.750% 03/01/99 ........................ $16,800 $ 16,800,000 ------------ TOTAL REPURCHASE AGREEMENTS (Cost $191,800,000) .................. 191,800,000 ------------ TOTAL INVESTMENTS AT VALUE--99.7% (Cost $554,644,861*) ..................... 554,644,861 ------------ OTHER ASSETS IN EXCESS OF LIABILITIES--0.3% ..................... 1,439,478 ------------ NET ASSETS (Applicable to 147,473,467 Bedford shares, 408,641,853 Janney Montgomery Scott shares and 800 other shares)--100.0% .......................... $556,084,339 ============ NET ASSET VALUE, Offering and redemption price per share ($556,084,339 (DIVIDE) 556,116,120) ...... $1.00 ===== * Also cost for Federal income tax purposes (DAGGER) Variable Rate Obligations -- The interest rate is the rate as of February 28, 1999 and the maturity date shown is the longer of the next interest readjustment date or the date the principal amount shown can be recovered through demand. See Accompanying Notes to Financial Statements. 13 THE BEDFORD FAMILY THE RBB FUND, INC. STATEMENTS OF OPERATIONS FOR THE SIX MONTHS ENDED FEBRUARY 28, 1999 (UNAUDITED) GOVERNMENT MUNICIPAL OBLIGATIONS MONEY MARKET MONEY MARKET MONEY MARKET PORTFOLIO PORTFOLIO PORTFOLIO ------------ ------------ ------------ INVESTMENT INCOME Interest ....................... $67,932,605 $4,722,446 $13,757,494 ----------- ---------- ----------- Expenses Investment advisory fees ....... 4,607,483 485,182 1,122,352 Administration fees ............ -- 141,069 -- Distribution fees .............. 5,473,879 841,262 1,607,539 Service organization fees ...... 271,242 -- -- Directors' fees ................ 32,956 3,687 7,011 Custodian fees ................. 201,254 32,659 51,330 Transfer agent fees ............ 1,505,760 59,495 299,767 Legal fees ..................... 56,943 6,260 11,873 Audit fees ..................... 66,476 7,970 15,335 Registration fees .............. 150,000 54,000 36,000 Insurance expense .............. 21,022 2,354 4,460 Printing fees .................. 266,257 20,749 62,100 SEC fees ....................... 2,611 1,869 280 Miscellaneous .................. 326 37 371 ----------- ---------- ----------- 12,656,209 1,656,593 3,218,418 Less fees waived and reimbursements ............... (2,014,787) (418,057) (558,943) ----------- ---------- ----------- Total Expenses ............ 10,641,422 1,238,536 2,659,475 ----------- ---------- ----------- Net investment income ............. 57,291,183 3,483,910 11,098,019 ----------- ---------- ----------- Net realized gain/(loss) on investments .................. 131,056 -- (12,523) ----------- ---------- ----------- Net increase in net assets resulting from operations ....... $57,422,239 $3,483,910 $11,085,496 =========== ========== =========== See Accompanying Notes to Financial Statements. 14 THE BEDFORD FAMILY THE RBB FUND, INC. STATEMENTS OF CHANGES IN NET ASSETS
MUNICIPAL MONEY GOVERNMENT OBLIGATIONS MONEY MARKET PORTFOLIO MARKET PORTFOLIO MONEY MARKET PORTFOLIO ---------------------------------- ---------------------------------- ---------------------------------- FOR THE FOR THE FOR THE FOR THE FOR THE FOR THE SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED FEBRUARY 28, 1999 AUGUST 31, 1998 FEBRUARY 28, 1999 AUGUST 31, 1998 FEBRUARY 28, 1999 AUGUST 31, 1998 ----------------- --------------- ----------------- --------------- ----------------- --------------- (UNAUDITED) (UNAUDITED) (UNAUDITED) Increase (decrease) in net assets: Operations: Net investment income .....$ 57,291,183 $ 127,866,778 $ 3,483,910 $ 9,017,840 $ 11,098,019 $ 26,408,463 Net realized gain (loss) on investments ............. 131,056 (95,478) -- (3,055) (12,523) (5,792) -------------- -------------- ------------ ------------ ------------ ------------ Net increase in net assets resulting from operations ......... 57,422,239 127,771,300 3,483,910 9,014,785 11,085,496 26,402,671 -------------- -------------- ------------ ------------ ------------ ------------ Distributions to shareholders: Dividends to shareholders from net investment income: Bedford shares .......... (18,350,903) (56,898,248) (2,044,881) (5,548,854) (2,687,839) (8,627,495) Bradford shares ......... -- -- -- (405,975) -- (184,938) Cash Preservation shares ................ (4,108) (10,274) (1,572) (2,738) -- -- Janney Montgomery Scott shares .......... (21,174,670) (38,111,646) (1,437,457) (3,060,273) (8,410,180) (17,595,930) Select shares ........... (352,247) -- -- -- -- -- Sansom Street shares .... (17,409,255) (32,846,610) -- -- -- -- Dividends to shareholders from net realized short-term gains: Bedford shares .......... (2,671) (7,165) -- -- -- -- Bradford shares ......... -- -- -- -- -- -- Cash Preservation shares ................ (1) (1) -- -- -- -- Janney Montgomery Scott shares .......... (2,921) (3,979) -- -- -- -- Select shares ........... (102) -- -- -- -- -- Sansom Street shares .... (2,010) (2,838) -- -- -- -- Total dividends to shareholders ........ (57,298,888) (127,880,761) (3,483,910) (9,017,840) (11,098,019) (26,408,363) -------------- -------------- ------------ ------------ ------------ ------------ Net capital share transactions .............. 115,125,760 (384,357,868) 27,311,012 (242,871,946) 48,584,957 (106,714,614) -------------- -------------- ------------ ------------ ------------ ------------ Total increase (decrease) in net assets ................ 115,249,111 (384,467,329) 27,311,012 (242,875,001) 48,572,434 (106,720,306) Net Assets: Beginning of period ....... 2,315,558,300 2,700,025,629 245,170,814 488,045,815 507,511,905 614,232,211 -------------- -------------- ------------ ------------ ------------ ------------ End of period .............$2,430,807,411 $2,315,558,300 $272,481,826 $245,170,814 $556,084,339 $507,511,905 ============== ============== ============ ============ ============ ============
See Accompanying Notes to Financial Statements. 15 THE BEDFORD FAMILY THE RBB FUND, INC. FINANCIAL HIGHLIGHTS (b) (FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD)
MONEY MARKET PORTFOLIO -------------------------------------------------------- FOR THE FOR THE FOR THE FOR THE FOR THE SIX MONTHS YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED FEBRUARY 28, AUGUST 31, AUGUST 31, AUGUST 31, AUGUST 31, 1999 1998 1997 1996 1995 ------------ ---------- ---------- ---------- ---------- (UNAUDITED) Net asset value, beginning of period ... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 -------- -------- ---------- ---------- -------- Income from investment operations: Net investment income .. 0.0219 0.0473 0.0462 0.0469 0.0486 -------- -------- ---------- ---------- -------- Total from investment operations ....... 0.0219 0.0473 0.0462 0.0469 0.0486 -------- -------- ---------- ---------- -------- Less distributions Dividends (from net investment income) ... (0.0219) (0.0473) (0.0462) (0.0469) (0.0486) -------- -------- ---------- ---------- -------- Total distributions. (0.0219) (0.0473) (0.0462) (0.0469) (0.0486) -------- -------- ---------- ---------- -------- Net asset value, end of period .............. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 ======== ======== ========== ========== ======== Total Return ............. 4.50%(c) 4.84% 4.72% 4.79% 4.97% Ratios /Supplemental Data Net assets, end of period (000) .. $589,649 $762,739 $1,392,911 $1,109,334 $935,821 Ratios of expenses to average net assets ... .97%(a)(c) .97%(a) .97%(a) .97%(a) .96%(a) Ratios of net investment income to average net assets ........... 4.41%(c) 4.73% 4.62% 4.69% 4.86%
MUNICIPAL MONEY MARKET PORTFOLIO -------------------------------------------------------- FOR THE FOR THE FOR THE FOR THE FOR THE SIX MONTHS YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED FEBRUARY 28, AUGUST 31, AUGUST 31, AUGUST 31, AUGUST 31, 1999 1998 1997 1996 1995 ------------ ---------- ---------- ---------- ---------- (UNAUDITED) Net asset value, beginning of period ... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 -------- -------- -------- ------- -------- Income from investment operations: Net investment income .. 0.0122 0.0286 0.0285 0.0288 0.0297 -------- -------- -------- ------- -------- Total from investment operations ....... 0.0122 0.0286 0.0285 0.0288 0.0297 -------- -------- -------- ------- -------- Less distributions Dividends (from net investment income) ... (0.0122) (0.0286) (0.0285) (0.0288) (0.0297) -------- -------- -------- ------- -------- Total distributions. (0.0122) (0.0286) (0.0285) (0.0288) (0.0297) -------- -------- -------- ------- -------- Net asset value, end of period .............. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 ======== ======== ======== ======= ======== Total Return ............. 2.49%(c) 2.97% 2.88% 2.92% 3.01% Ratios /Supplemental Data Net assets, end of period (000) .. $153,831 $147,633 $213,034 $201,940 $198,425 Ratios of expenses to average net assets ... 89%(a)(c) .89%(a) .85%(a) .84%(a) .82%(a) Ratios of net investment income to average net assets ........... 2.46%(c) 2.86% 2.85% 2.88% 2.97% (a) Without the waiver of advisory and administration fees and without the reimbursement of certain operating expenses, the ratios of expenses to average net assets for the Money Market Portfolio would have been 1.11% for the six months ended February 28, 1999, 1.10%, 1.12%, 1.14% and 1.17% for the years ended August 31, 1998, 1997, 1996 and 1995, respectively. For the Municipal Money Market Portfolio, the ratios of expenses to average net assets would have been 1.13% for the six months ended February 28, 1999, 1.15%, 1.14%, 1.12% and 1.14% for the years ended August 31, 1998, 1997, 1996 and 1995, respectively. (b) Financial Highlights relate solely to the Bedford Class of shares within each portfolio. (c) Annualized. See Accompanying Notes to Financial Statements. 16
THE BEDFORD FAMILY THE RBB FUND, INC. FINANCIAL HIGHLIGHTS (b) (FOR A SHARE OUTSTANDING THROUGHOUT EACH PERIOD) GOVERNMENT OBLIGATIONS MONEY MARKET PORTFOLIO ------------------------------------------------------------------------------------- FOR THE FOR THE FOR THE FOR THE FOR THE SIX MONTHS YEAR YEAR YEAR YEAR ENDED ENDED ENDED ENDED ENDED FEBRUARY 28, 1999 AUGUST 31, 1998 AUGUST 31, 1997 AUGUST 31, 1996 AUGUST 31, 1995 ----------------- --------------- --------------- --------------- --------------- (UNAUDITED) Net asset value, beginning of period ............ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 -------- -------- -------- -------- -------- Income from investment operations: Net investment income ......................... 0.0207 0.0463 0.0449 0.0458 0.0475 -------- -------- -------- -------- -------- Total from investment operations .......... 0.0207 0.0463 0.0449 0.0458 0.0475 -------- -------- -------- -------- -------- Less distributions Dividends (from net investment income) ........ (0.0207) (0.0463) (0.0449) (0.0458) (0.0475) -------- -------- -------- -------- -------- Total distributions ....................... (0.0207) (0.0463) (0.0449) (0.0458) (0.0475) -------- -------- -------- -------- -------- Net asset value, end of period .................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 ======== ======== ======== ======== ========= Total Return .................................... 4.25%(c) 4.74% 4.59% 4.68% 4.86% Ratios /Supplemental Data Net assets, end of period (000) $147,482 $128,447 $209,715 $192,599 $163,398 Ratios of expenses to average net assets ...... .975%(a)(c) .975%(a) .975%(a) .975%(a) .975%(a) Ratios of net investment income to average net assets .................................. 4.17%(c) 4.63% 4.49% 4.58% 4.75% (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 1.13% for the six months ended February 28, 1999, 1.10%, 1.09%, 1.10% and 1.13% for the years ended August 31, 1998, 1997, 1996 and 1995, respectively. (b) Financial Highlights relate solely to the Bedford Class of shares within each portfolio. (c) Annualized.
See Accompanying Notes to Financial Statements. 17 THE BEDFORD FAMILY THE RBB FUND, INC. NOTES TO FINANCIAL STATEMENTS FEBRUARY 28, 1999 (UNAUDITED) NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The RBB Fund, Inc. (The "Fund") is registered under the Investment Company Act of 1940, as amended, as an open-end management investment company. The Fund was incorporated in Maryland on February 29, 1988. The Fund has authorized capital of thirty billion shares of common stock of which 19.83 billion shares are currently classified into ninety-seven classes. Each class represents an interest in one of sixteen 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 Sansom Street Family, the Bedford Family, the Cash Preservation Family, the Select Family, the Janney Montgomery Scott Family, the n/i numeric investors Family, the Boston Partners Family and the Schneider Family. The Bedford Family represents interests in the three 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 Portfolio seeks to maintain net asset value per share at $1.00. 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 based on relative net assets of each portfolio. C) DISTRIBUTIONS TO SHAREHOLDERS -- Dividends from net investment income are declared daily and paid monthly. Any net realized capital gains are distributed at least annually. Income distributions and capital gain distributions are determined in accordance with income tax regulations which may differ from generally accepted accounting principles. D) FEDERAL INCOME TAXES -- No provision is made for Federal taxes as it is the Fund's intention to have each portfolio continue to qualify for and elect the tax treatment applicable to regulated investment companies under the Internal Revenue Code and make the requisite distributions to its shareholders which will be sufficient to relieve it from Federal income and excise taxes. E) REPURCHASE AGREEMENTS -- Money market instruments may be purchased subject to the seller's agreement to repurchase them at an agreed upon date and price. The seller will be required on a daily basis to maintain the value of the securities subject to the agreement at not less than there 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. 18 THE BEDFORD FAMILY THE RBB FUND, INC. NOTES TO FINANCIAL STATEMENTS (CONTINUED) FEBRUARY 28, 1999 (UNAUDITED) NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) F) USE OF ESTIMATES -- The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. NOTE 2. TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES Pursuant to Investment Advisory Agreements, BlackRock Institutional Management Corporation ("BIMC"), an indirect majority-owned subsidiary of PNC Bank, serves as investment advisor for the three portfolios described herein. For its advisory services, BIMC is entitled to receive the following fees, computed daily and payable monthly based on the 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 .35% of first $250 million of net assets; Portfolio .30% of next $250 million of net assets; .25% of net assets in excess of $500 million. 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 six months ended February 28, 1999, advisory fees and waivers for the three investment portfolios were as follows: GROSS NET ADVISORY ADVISORY FEE WAIVER FEE ---------- ------------ ---------- Money Market Portfolio $4,607,483 $(1,724,370) $2,883,113 Municipal Money Market Portfolio 485,182 (344,725) 140,457 Government Obligations Money Market Portfolio 1,122,352 (425,305) 697,047 The investment advisor has agreed to reimburse each portfolio for the amount, if any, by which the total operating and management expenses exceed the expense cap. For the six months ended February 28, 1999, the reimbursed expenses were $286,257, $69,109 and $133,638 for the Money Market Portfolio, Municipal Money Market Portfolio and Government Obligations Money Market Portfolio, respectively. In addition, PFPC Trust Company serves as custodian for each of the Fund's portfolios. PFPC Inc. ("PFPC") serves as each class's transfer and dividend disbursing agent. Both PFPC Trust Company and PFPC are wholly-owned subsidiaries of PFPC Worldwide Inc., an indirect majority-owned subsidiary of PNC Bank Corp. 19 THE BEDFORD FAMILY THE RBB FUND, INC. NOTES TO FINANCIAL STATEMENTS (CONTINUED) FEBRUARY 28, 1999 (UNAUDITED) NOTE 2. TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES (CONTINUED) PFPC may, at its discretion, voluntarily waive all or any portion of its transfer agency fee for any class of shares. For the six months ended February 28, 1999, transfer agency fees and waivers for each class of shares within the three investment portfolios were as follows: GROSS NET TRANSFER TRANSFER AGENCY AGENCY FEE WAIVER FEE --------------- -------------- ------------ Money Market Portfolio Bedford Class $ 366,050 $ -- $ 366,050 Cash Preservation Class 4,419 (4,161) 258 Janney Montgomery Scott Class 840,000 -- 840,000 Sansom Street Class 295,291 -- 295,291 ---------- -------- ---------- Total Money Market Portfolio $1,505,760 $ (4,161) $1,501,599 ========== ======== ========== Municipal Money Market Portfolio Bedford Class $ 2,400 $ -- $ 2,400 Cash Preservation Class 4,427 (4,222) 205 Janney Montgomery Scott Class 52,668 -- 52,668 ---------- -------- ---------- Total Municipal Money Market Portfolio $ 59,495 $ (4,222) $ 55,273 ========== ======== ========== Government Obligations Money Market Portfolio Bedford Class $ -- $ -- $ -- Janney Montgomery Scott Class 299,767 -- 299,767 ---------- -------- ---------- Total Government Obligations Money Market Portfolio $ 299,767 $ -- $ 299,767 ========== ========= ========== In addition, PFPC serves as administrator for the Municipal Money Market Portfolio. The administration fee is computed daily and payable monthly at an annual rate of .10% of the Portfolio's average daily assets. PFPC may, at its discretion, voluntarily waive all or any portion of its administration fee. For the six months ended February 28, 1999, the administration fee for the Municipal Money Market Portfolio was as follows: ADMINISTRATION FEE -------------- Municipal Money Market Portfolio $141,069 20 THE BEDFORD FAMILY THE RBB FUND, INC. NOTES TO FINANCIAL STATEMENTS (CONTINUED) FEBRUARY 28, 1999 (UNAUDITED) NOTE 2. TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES (CONTINUED) The Fund, on behalf of each class of shares within the three investment portfolios, has adopted Distribution Plans pursuant to Rule 12b-1 under the Investment Company Act of 1940, as amended. The Fund 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, Cash Preservation and Janney Montgomery Scott Classes and up to .20% on an annualized basis for the Sansom Street Class. For the six months ended February 28, 1999, distribution fees for each class were as follows: DISTRIBUTION FEE ------------ Money Market Portfolio Bedford Class $ 2,384,887 Cash Preservation Class 368 Janney Montgomery Scott Class 2,906,358 Sansom Street Class 182,266 ----------- Total Money Market Portfolio $ 5,473,879 =========== Municipal Money Market Portfolio Bedford Class $ 493,703 Cash Preservation Class 272 Janney Montgomery Scott Class 347,287 ----------- Total Municipal Money Market Portfolio $ 841,262 =========== Government Obligations Money Market Portfolio Bedford Class $ 389,371 Janney Montgomery Scott Class 1,218,168 ----------- Total Government Obligations Money Market Portfolio $ 1,607,539 =========== The Fund has entered into service agreements with banks affiliated with PNC Bank who render support services to customers who are the beneficial owners of the Sansom Street Class in consideration of the payment of .10% of the daily net asset value of such shares. For the six months ended February 28, 1999, service organization fees were $271,242 for the Money Market Portfolio. 21 THE BEDFORD FAMILY THE RBB FUND, INC. NOTES TO FINANCIAL STATEMENTS (CONTINUED) FEBRUARY 28, 1999 (UNAUDITED) NOTE 3. CAPITAL SHARES Transactions in capital shares (at $1 per capital share) for each period were as follows:
MONEY MARKET PORTFOLIO MUNICIPAL MONEY MARKET PORTFOLIO ---------------------------------- ---------------------------------- FOR THE FOR THE FOR THE FOR THE SIX MONTHS ENDED YEAR ENDED SIX MONTHS ENDED YEAR ENDED FEBRUARY 28, 1999 AUGUST 31, 1998 FEBRUARY 28, 1999 AUGUST 31, 1998 ----------------- --------------- ----------------- --------------- (UNAUDITED) (UNAUDITED) VALUE VALUE VALUE VALUE ----------------- --------------- ----------------- --------------- Shares sold: Bedford Class $ 1,267,431,197 $ 4,081,920,081 $ 354,672,272 $ 1,250,832,088 Bradford Class -- -- -- 59,917,620 Cash Preservation Class 61,164 113,319 150,238 65,859 Janney Montgomery Scott Class 2,305,678,119 3,910,533,620 228,204,533 404,988,148 Sansom Street Class 1,317,481,175 2,296,071,622 -- -- Select Class 90,525,850 -- -- -- Shares issued in reinvestment of dividends: Bedford Class 18,390,680 56,201,453 2,067,392 5,440,322 Bradford Class -- -- -- 427,390 Cash Preservation Class 4,289 10,291 1,493 2,591 Janney Montgomery Scott Class 21,655,093 37,882,680 1,465,429 3,071,524 Sansom Street Class 13,647,696 24,189,907 -- -- Select Class 347,981 -- -- -- Shares repurchased: Bedford Class (1,458,952,186) (4,768,237,064) (350,542,489) (1,321,668,087) Bradford Class -- -- -- (226,438,837) Cash Preservation Class (133,353) (139,525) (14,912) (73,397) Janney Montgomery Scott Class (2,197,396,680) (3,780,710,398) (208,692,944) (419,437,268) Sansom Street Class (1,202,565,612) (2,242,193,855) -- -- Select Class (61,049,653) -- -- -- --------------- --------------- ------------- --------------- Net increase (decrease) $ 115,125,760 $ (384,357,869) $ 27,311,012 $ (242,871,947) =============== =============== ============= =============== Bedford Shares authorized 1,500,000,000 1,500,000,000 500,000,000 500,000,000 =============== =============== ============= ===============
22 THE BEDFORD FAMILY THE RBB FUND, INC. NOTES TO FINANCIAL STATEMENTS (CONTINUED) FEBRUARY 28, 1999 (UNAUDITED) NOTE 3. CAPITAL SHARES (CONTINUED) GOVERNMENT OBLIGATIONS MONEY MARKET PORTFOLIO --------------------------------------------- FOR THE FOR THE SIX MONTHS ENDED YEAR ENDED FEBRUARY 28, 1999 AUGUST 31, 1998 ----------------- --------------- (UNAUDITED) VALUE VALUE ----------------- --------------- Shares sold: Bedford Class $ 212,665,901 $ 570,413,536 Bradford Class -- 14,367,467 Janney Montgomery Scott Class 734,232,266 1,493,397,997 Shares issued in reinvestment of Dividends: Bedford Class 2,740,589 8,589,078 Bradford Class -- 214,626 Janney Montgomery Scott Class 8,618,298 17,567,622 Shares repurchased: Bedford Class (196,367,943) (660,253,321) Bradford Class -- (66,190,133) Janney Montgomery Scott Class (713,304,154) (1,484,821,486) ------------- --------------- Net increase (decrease) $ 48,584,957 $ (106,714,614) ============= =============== Bedford Shares authorized 500,000,000 500,000,000 ============= =============== NOTE 4. NET ASSETS At February 28, 1999, net assets consisted of the following: GOVERNMENT MUNICIPAL OBLIGATIONS MONEY MARKET MONEY MARKET MONEY MARKET PORTFOLIO PORTFOLIO PORTFOLIO ------------ ------------ ------------ Capital paid-in Bedford Class $ 589,664,368 $153,902,350 $147,473,567 Cash Preservation Class 158,401 228,816 -- Janney Montgomery Scott Class 1,034,494,733 118,424,557 408,641,853 Sansom Street Class 776,662,225 -- -- Select Class 29,824,176 -- -- Other Classes 800 800 800 Accumulated net realized gain (loss) on investments Bedford Class (12,013) (73,952) (9,780) Cash Preservation Class (5) 3 -- Janney Montgomery Scott Class 8,010 (748) (22,101) Sansom Street Class 5,203 -- -- Select Class 1,513 -- -- -------------- ------------ ------------ $2,430,807,411 $272,481,826 $556,084,339 ============== ============ ============ 23 THE BEDFORD FAMILY THE RBB FUND, INC. NOTES TO FINANCIAL STATEMENTS (CONTINUED) FEBRUARY 28, 1999 (UNAUDITED) NOTE 5. OTHER FINANCIAL HIGHLIGHTS The Fund currently offers four other classes of shares representing interests in the Money Market Portfolio: Cash Preservation, Janney Montgomery Scott, Select and Sansom Street. The Fund currently offers two other classes of shares representing interests in the Municipal Money Market Portfolio: Cash Preservation and Janney Montgomery Scott. The Fund currently offers one other class of shares representing an interest in the Government Obligations Money Market Portfolio: Janney Montgomery Scott. Each class is marketed to different types of investors. Financial Highlights of the Cash Preservation Class is not presented in this report due to its immateriality. Such information is available in the annual report of the Cash Preservation family. The financial highlights of certain of the other classes are as follows:
THE JANNEY MONTGOMERY SCOTT FAMILY (c) MONEY MARKET PORTFOLIO ----------------------------------------------------------------------------------------- FOR THE PERIOD FOR THE FOR THE FOR THE FOR THE JUNE 12, 1995 SIX MONTHS YEAR YEAR YEAR (COMMENCEMENT OF ENDED ENDED ENDED ENDED OPERATIONS) TO FEBRUARY 28, 1999 AUGUST 31, 1998 AUGUST 31, 1997 AUGUST 31, 1996 AUGUST 31, 1995 ----------------- --------------- --------------- --------------- --------------- (UNAUDITED) Net asset value, beginning of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 ---------- -------- -------- -------- -------- Income from investment operations: Net investment income 0.0217 0.0469 0.0459 0.0465 0.0112 ---------- -------- -------- -------- -------- Total from investment operations 0.0217 0.0469 0.0459 0.0465 0.0112 ---------- -------- -------- -------- -------- Less distributions Dividends (from net investment income) (0.0217) (0.0469) (0.0459) (0.0465) (0.0112) ---------- -------- -------- -------- -------- Total distributions (0.0217) (0.0469) (0.0459) (0.0465) (0.0112) ---------- -------- -------- -------- -------- Net asset value, end of period $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 ========== ======== ======== ======== ======== Total Return 4.47%(b) 4.81% 4.69% 4.76% 5.30%(b) Ratios /Supplemental Data Net assets, end of period (000) $1,034,508 $904,526 $736,855 $561,865 $443,645 Ratios of expenses to average net assets 1.00%(a)(b) 1.00%(a) 1.00%(a) 1.00%(a) 1.00%(a)(b) Ratios of net investment income to average net assets 4.37%(b) 4.69% 4.59% 4.65% 5.04%(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 MarketPortfolio would have been 1.20% for the six months ended February 28, 1999, 1.21%, 1.22%, 1.23% and 1.23% 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.
24 THE BEDFORD FAMILY THE RBB FUND, INC. NOTES TO FINANCIAL STATEMENTS (CONTINUED) FEBRUARY 28, 1999 (UNAUDITED) NOTE 5. OTHER FINANCIAL HIGHLIGHTS (CONTINUED)
THE JANNEY MONTGOMERY SCOTT FAMILY (c) (CONTINUED) MUNICIPAL MONEY MARKET PORTFOLIO ----------------------------------------------------------------------------------------- FOR THE PERIOD FOR THE FOR THE FOR THE FOR THE JUNE 12, 1995 SIX MONTHS YEAR YEAR YEAR (COMMENCEMENT OF ENDED ENDED ENDED ENDED OPERATIONS) TO FEBRUARY 28, 1999 AUGUST 31, 1998 AUGUST 31, 1997 AUGUST 31, 1996 AUGUST 31, 1995 ----------------- --------------- --------------- --------------- --------------- (UNAUDITED) Net asset value, beginning of period . $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 -------- ------- -------- ------- -------- Income from investment operations: Net investment income .............. 0.0123 0.0290 0.0285 0.0278 0.0063 -------- ------- -------- ------- -------- Total from investment operations . 0.0123 0.0290 0.0285 0.0278 0.0063 -------- ------- -------- ------- -------- Less distributions Dividends (from net investment income) .......................... (0.0123) (0.0290) (0.0285) (0.0278) (0.0063) -------- ------- -------- ------- -------- Total distributions .............. (0.0123) (0.0290) (0.0285) (0.0278) (0.0063) -------- ------- -------- ------- -------- Net asset value, end of period ....... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 ======== ======= ======== ======= ======== Total Return ......................... 2.51%(b) 2.94% 2.89% 2.81% 2.87%(b) Ratios /Supplemental Data Net assets, end of period (000) .... $118,422 $97,445 $108,826 $89,428 $113,256 Ratios of expenses to average net assets ....................... 0.86%(a)(b) 0.86%(a) 0.85%(a) 0.94%(a) 1.00%(a)(b) Ratios of net investment income to average net assets ............ 2.48%(b) 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 Municipal Money Market Portfolio, the ratio of expenses to average net assets would have been 1.22% for the six months ended February 28, 1999, 1.16%, 1.13%, 1.23% and 1.30% for the years or period 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.
25 THE BEDFORD FAMILY THE RBB FUND, INC. NOTES TO FINANCIAL STATEMENTS (CONTINUED) FEBRUARY 28, 1999 (UNAUDITED) NOTE 5. OTHER FINANCIAL HIGHLIGHTS (CONTINUED)
THE JANNEY MONTGOMERY SCOTT FAMILY (c) (CONTINUED) GOVERNMENT OBLIGATIONS MONEY MARKET PORTFOLIO ----------------------------------------------------------------------------------------- FOR THE PERIOD FOR THE FOR THE FOR THE FOR THE JUNE 12, 1995 SIX MONTHS YEAR YEAR YEAR (COMMENCEMENT OF ENDED ENDED ENDED ENDED OPERATIONS) TO FEBRUARY 28, 1999 AUGUST 31, 1998 AUGUST 31, 1997 AUGUST 31, 1996 AUGUST 31, 1995 ----------------- --------------- --------------- --------------- --------------- (UNAUDITED) Net asset value, beginning of period. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 -------- -------- -------- -------- -------- Income from investment operations: Net investment income.............. 0.0206 0.0460 0.0447 0.0456 0.0109 -------- -------- -------- -------- -------- Total from investment operations 0.0206 0.0460 0.0447 0.0456 0.0109 -------- -------- -------- -------- -------- Less distributions Dividends (from net investment income)............... (0.0206) (0.0460) (0.0447) (0.0456) (0.0109) -------- -------- -------- -------- -------- Total distributions ............. (0.0206) (0.0460) (0.0447) (0.0456) (0.0109) -------- -------- -------- -------- -------- Net asset value, end of period....... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 ======== ======== ======== ======== ======== Total Return......................... 4.23%(b) 4.71% 4.56% 4.66% 5.03%(b) Ratios /Supplemental Data............ Net assets, end of period (000).... $408,602 $379,065 $352,950 $306,757 $302,585 Ratios of expenses to average net assets............... 1.00%(a)(b) 1.00%(a) 1.00%(a) 1.00%(a) 1.00%(a)(b) Ratios of net investment income to average net assets..... 4.14%(b) 4.60% 4.47% 4.56% 4.91%(b) (a) Without the waiver of advisory, administration and transfer agent fees and without the reimbursement of certain operating expenses, the ratios of expenses to average net assets for the Government Obligations Money Market Portfolio would have been 1.22% for the six months ended February 28, 1999, 1.23%, 1.23%, 1.25% and 1.28% 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.
26 THE BEDFORD FAMILY THE RBB FUND, INC. NOTES TO FINANCIAL STATEMENTS (CONCLUDED) FEBRUARY 28, 1999 (UNAUDITED) Note 5. OTHER FINANCIAL HIGHLIGHTS (CONTINUED)
THE SANSOM STREET FAMILY (b) MONEY MARKET PORTFOLIO ----------------------------------------------------------------------------------------- FOR THE PERIOD FOR THE FOR THE FOR THE FOR THE JUNE 12, 1995 SIX MONTHS YEAR YEAR YEAR (COMMENCEMENT OF ENDED ENDED ENDED ENDED OPERATIONS) TO FEBRUARY 28, 1999 AUGUST 31, 1998 AUGUST 31, 1997 AUGUST 31, 1996 AUGUST 31, 1995 ----------------- --------------- --------------- --------------- --------------- (UNAUDITED) Net asset value, beginning of period .. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 -------- -------- ------- -------- -------- Income from investment operations: Net investment income .............. 0.0242 0.0520 0.0510 0.0518 0.0543 -------- -------- ------- -------- -------- Total from investment operations 0.0242 0.0520 0.0510 0.0518 0.0543 -------- -------- ------- -------- -------- Less distributions Dividends (from net investment income) (0.0242) (0.0520) (0.0510) (0.0518) (0.0543) -------- -------- ------- -------- -------- Total distributions ............ (0.0242) (0.0520) (0.0510) (0.0518) (0.0543) -------- -------- ------- -------- -------- Net asset value, end of period ........ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 ======== ======== ======= ======== ======== Total Return .......................... 5.00%(c) 5.34% 5.22% 5.30% 5.57% Ratios /Supplemental Data Net assets, end of period .......... $776,676 $684,066 $570,018 $524,359 $441,614 Ratios of expenses to average net assets ....................... .49%(a)(c) .49%(a) .49%(a) .48%(a) .39%(a) Ratios of net investment income to average net assets ............ 4.89%(c) 5.20% 5.10% 5.18% 5.43% (a) Without the waiver of advisory and transfer agent fees and without the reimbursement of certain operating expenses, the ratios of expenses to average net assets for the Money Market Portfolio would have been .63% for the six months ended February 28, 1999, .62%, .64%, .65% and .59% for the years ended August 31, 1998, 1997, 1996 and 1995, respectively. (b) Financial highlights relate soley to the Sansom Street Class of shares within the portfolio. (c) Annualized
27 THE BEDFORD FAMILY THE RBB FUND, INC. NOTES TO FINANCIAL STATEMENTS (CONTINUED) FEBRUARY 28, 1999 (UNAUDITED) NOTE 5. OTHER FINANCIAL HIGHLIGHTS (CONTINUED) THE SELECT FAMILY (b) (c) MONEY MARKET PORTFOLIO ---------------------- FOR THE PERIOD DECEMBER 15, 1998 TO FEBRUARY 28, 1999 ----------------------- (UNAUDITED) Net asset value, beginning of period .................... $ 1.00 -------- Income from investment operations: Net investment income ................................ 0.0103 -------- Total from investment operations ................... 0.0103 -------- Less distributions Dividends (from net investment income) ............... (0.0103) -------- Total distributions ................................ (0.0103) -------- Net asset value, end of period .......................... $ 1.00 ======== Total Return ............................................ 5.06%(d) Ratios /Supplemental Data Net assets, end of period ............................ $ 29,824 Ratios of expenses to average net assets ............. .27%(a)(d) Ratios of net investment income to average net assets ................................. 4.95%(d) (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 .46% for the six months ended February 28, 1999. (b) Financial highlights relate soley to the Select Class of shares within the portfolio. (c) On December 15, 1998 the Money Market Portfolio's Select Class began operations. (d) Annualized 28 [THIS PAGE INTENTIONALLY LEFT BLANK.] [THIS PAGE INTENTIONALLY LEFT BLANK.] -----END PRIVACY-ENHANCED MESSAGE-----