<PAGE>
RMA MONEY MARKET FUNDS ANNUAL REPORT
Dear Shareholder, August 20, 1999
We are pleased to present you with the annual report for the PaineWebber RMA
Money Market Portfolio; the PaineWebber RMA U.S. Government Portfolio; the
PaineWebber RMA Tax-Free Fund, Inc.; the PaineWebber RMA California Municipal
Money Fund; the PaineWebber RMA New York Municipal Money Fund; and the
PaineWebber RMA New Jersey Municipal Money Fund, for the fiscal year ended
June 30, 1999.
MARKET REVIEW
- -------------------------------------------------------------------------------
[GRAPHIC]
The key market event in the first half of the fiscal year was the global
financial crisis that began with Russia's default in August 1998. Money market
mutual fund assets increased during the period as investors sought safety of
principal. The Federal Reserve cut the federal funds rate by 0.75% to help
restore confidence in the financial markets. At the same time, European central
banks began cutting interest rates in preparation for the January 1, 1999, debut
of the euro currency. Lower interest rates helped to calm the global financial
markets, and rates declined across the short-term yield curve (maturities of one
month to one year).
During the second half of the fiscal year, inflation risk became the dominant
theme driving bond yields. Interest rates rose as the markets reacted to
improving economic prospects in Asia and Latin America, rapidly growing U.S.
demand, higher oil prices and fears that future wage increases might not be
offset by commodity deflation. At the end of the fiscal year, the Federal
Reserve raised the federal funds rate by 0.25% to 5%.
PORTFOLIO REVIEWS
- -------------------------------------------------------------------------------
PERFORMANCE AND CHARACTERISTICS, JUNE 30, 1999
<TABLE>
<CAPTION>
7-Day Weighted
Current Avg. AMT
Yield Maturity Net Assets Holdings
- ---------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
PaineWebber RMA Money Market Portfolio 4.47% 64 days $13.4 billion N/A
PaineWebber RMA U.S. Government Portfolio 4.13% 57 days $1.4 billion N/A
PaineWebber RMA Tax-Free Fund, Inc. 2.84% 41 days $2.4 billion None
PaineWebber RMA California Municipal Money Fund 2.63% 37 days $575.3 million None
PaineWebber RMA New York Municipal Money Fund 2.74% 39 days $372.9 million None
PaineWebber RMA New Jersey Municipal Money Fund 2.42% 58 days $63.0 million None
- ---------------------------------------------------------------------------------------------------
</TABLE>
1
<PAGE>
ANNUAL REPORT
We remained slightly bullish on the fixed income markets during the first
nine months of the Fund's fiscal year, expecting interest rates to remain
unchanged. Since we did not expect major changes in rates, we kept the Funds'
weighted average maturities slightly long, about 5-10 days above the averages of
their peer groups. During the last quarter of the fiscal year, we shortened
maturities to 3-5 days above peer group averages in anticipation of rising
interest rates. We maintained our focus on top-tier credit quality instruments.
OUTLOOK
- -------------------------------------------------------------------------------
[GRAPHIC]
We are closely monitoring the market as Y2K approaches. It is likely that
issues of new short-term debt will decrease toward year-end, limiting supplies
and potentially triggering price increases. Also, investors might seek safety by
reducing their exposure to corporate credits and increasing their positions in
U.S. government securities, precipitating a "flight to quality." To provide
sufficient liquidity at year-end, we expect to maintain a position of about 20%
in U.S. Government securities in the non-municipal funds. However, this planned
defensive posture may change in response to changing market circumstances as
1999 draws to a close.
2
<PAGE>
RMA MONEY MARKET FUNDS ANNUAL REPORT
Our ultimate objective in managing your investments is to help you
successfully meet your financial goals. We thank you for your continued support
and welcome any comments or questions you may have. For a Quarterly Review on a
fund in the PaineWebber Family of Funds,(1) please contact your Financial
Advisor.
Sincerely,
/s/ Margo Alexander /s/ Brian M. Storms /s/ Dennis L. McCauley
MARGO ALEXANDER BRIAN M. STORMS DENNIS L. MCCAULEY
Chairman and President and Chief Investment Officer--
Chief Executive Officer Chief Operating Officer Fixed Income
Mitchell Hutchins Mitchell Hutchins Mitchell Hutchins Asset
Asset Management Inc. Asset Management Inc. Management Inc.
/s/ Susan P. Ryan /s/ Elbridge T. Gerry, III
SUSAN P. RYAN ELBRIDGE T. GERRY, III
Portfolio Manager Portfolio Manager
PaineWebber PaineWebber Tax-Free Fund, Inc.
RMA Money Market Portfolio
PaineWebber RMA
U.S. Government Portfolio
This letter is intended to assist shareholders in understanding how the
Funds performed during the fiscal year ended June 30, 1999, and reflects our
views at the time of its writing. Of course, these views may change in response
to changing circumstances. We encourage you to consult your Financial Advisor
regarding your personal investment program.
(1)Mutual funds are sold by prospectus only. The prospectuses for the funds
contain more complete information regarding risks, charges and expenses, and
should be read carefully before investing.
3
<PAGE>
PAINEWEBBER RMA MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS JUNE 30, 1999
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(000) MATURITY DATES INTEREST RATES VALUE
- ---------- --------------------- --------------- ---------------
<C> <S> <C> <C> <C>
U.S. GOVERNMENT AND AGENCY OBLIGATIONS--20.68%
$ 615,000 United States Treasury Bills................. 07/01/99 to 04/27/00 3.850 to 4.515%@ $ 601,915,444
175,000 Federal Farm Credit Bank..................... 07/01/99 to 12/17/99 4.520 to 4.760@ 173,712,556
218,500 Federal Farm Credit Bank..................... 07/01/99 to 07/29/99 4.800 to 5.589* 218,462,274
385,000 Federal Home Loan Bank....................... 10/27/99 to 05/17/00 4.850 to 5.140@ 385,000,000
90,000 Federal Home Loan Bank....................... 07/07/99 5.319 to 5.399* 89,978,001
125,006 Federal Home Loan Mortgage Corporation....... 07/14/99 to 07/16/99 4.800@ 124,769,322
86,000 Federal Home Loan Mortgage Corporation....... 07/07/99 5.389* 86,024,097
255,000 Federal National Mortgage Association........ 07/01/99 to 05/26/00 4.550 to 5.670@ 253,961,042
58,000 Student Loan Marketing Association........... 01/14/00 to 02/11/00 5.000 to 5.050@ 58,000,000
788,400 Student Loan Marketing Association........... 07/01/99 to 07/07/99 4.660 to 5.639* 788,434,478
---------------
Total U.S. Government and Agency Obligations
(cost--$2,780,257,214).................................. 2,780,257,214
---------------
BANK NOTES--4.84%
DOMESTIC--4.38%
42,000 Comercia Bank N.A. Detroit................... 04/28/00 4.890* 41,986,270
9,700 FCC National Bank............................ 03/15/00 5.180 9,696,040
30,000 FCC National Bank............................ 07/13/99 4.880* 29,986,090
99,700 First Tennessee Bank, N.A.-Memphis........... 01/14/00 to 04/12/00 5.100 to 5.210 99,700,000
180,000 First Tennessee Bank, N.A.-Memphis........... 07/01/99 to 07/07/99 4.875 to 5.449* 180,000,000
52,700 Harris Trust & Savings Bank.................. 01/24/00 to 02/01/00 5.000 to 5.020 52,734,278
175,000 LaSalle National Bank........................ 01/25/00 to 04/12/00 4.940 to 5.150 174,975,072
---------------
589,077,750
---------------
YANKEE--0.46%
62,000 Westpac Banking Corporation.................. 03/01/00 5.200 61,978,511
---------------
Total Bank Notes (cost--$651,056,261)..................... 651,056,261
---------------
CERTIFICATES OF DEPOSIT--14.91%
DOMESTIC--0.19%
25,000 Harris Trust & Savings Bank.................. 02/14/00 5.050 24,998,495
---------------
YANKEE--14.72%
75,000 ABN AMRO Bank N.V............................ 02/14/00 to 04/28/00 5.045 to 5.120 74,947,240
124,000 Bank of Nova Scotia.......................... 08/24/99 to 01/14/00 5.050 to 5.590 124,004,985
123,600 Barclays Bank PLC............................ 01/10/00 to 03/01/00 4.980 to 5.230 123,602,189
130,000 Barclays Bank PLC............................ 07/01/99 4.890* 129,944,822
50,000 Bayerische Hypo und Vereinsbank AG........... 04/28/00 5.150 49,979,483
50,000 Bayerische Landesbank Girozentrale........... 07/26/99 4.880 49,999,104
97,900 Canadian Imperial Bank of Commerce........... 02/23/00 to 04/12/00 5.100 to 5.195 97,896,054
24,500 Deutsche Bank AG............................. 08/23/99 5.600 24,500,000
30,000 National Bank of Canada...................... 07/20/99 5.700 29,999,599
126,000 National Westminster Bank PLC................ 01/10/00 to 07/03/00 4.980 to 5.530 125,980,499
107,000 Rabobank Nederland........................... 02/07/00 to 04/12/00 4.990 to 5.140 106,969,625
38,000 Royal Bank of Canada......................... 03/31/00 5.265 37,990,395
95,000 Royal Bank of Canada......................... 07/01/99 4.890 to 4.895* 94,965,406
153,200 Societe Generale............................. 07/02/99 to 08/06/99 5.670 to 5.730 153,196,972
25,000 Societe Generale............................. 07/24/99 4.965* 24,997,841
358,300 Svenska Handelsbanken........................ 08/16/99 to 05/22/00 4.990 to 5.600 358,240,947
228,000 Toronto-Dominion Bank........................ 08/03/99 to 04/17/00 4.940 to 5.680 227,965,545
</TABLE>
4
<PAGE>
PAINEWEBBER RMA MONEY MARKET PORTFOLIO
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(000) MATURITY DATES INTEREST RATES VALUE
- ---------- --------------------- --------------- ---------------
<C> <S> <C> <C> <C>
</TABLE>
CERTIFICATES OF DEPOSIT--(CONCLUDED)
YANKEE--(CONCLUDED)
<TABLE>
<C> <S> <C> <C> <C>
$ 50,000 Toronto-Dominion Bank........................ 07/01/99 4.885%* $ 49,978,937
94,700 Westpac Banking Corporation.................. 03/17/00 to 03/31/00 5.165 to 5.175 94,686,642
---------------
Total Yankee Certificates of Deposits..................... 1,979,846,285
---------------
Total Certificates of Deposit (cost--$2,004,844,780)...... 2,004,844,780
---------------
TIME DEPOSITS--1.02%
137,212 First National Bank of Chicago
(cost--$137,212,405)....................... 07/01/99 5.500 137,212,405
---------------
COMMERCIAL [email protected]%
ASSET BACKED-AUTO & TRUCK--0.33%
45,000 New Center Asset Trust....................... 07/01/99 5.500 45,000,000
---------------
ASSET BACKED-BANKING--4.06%
383,395 Atlantis One Funding......................... 07/09/99 to 09/24/99 4.800 to 5.050 381,782,062
164,320 Woodstreet Funding Corporation............... 07/08/99 to 08/03/99 4.810 to 5.130 163,928,844
---------------
545,710,906
---------------
ASSET BACKED-CREDIT CARDS--1.04%
140,000 Riverwoods Funding Corporation............... 07/26/99 to 07/28/99 5.020 to 5.090 139,490,989
---------------
ASSET BACKED-FINANCE--0.40%
54,000 Beta Finance, Incorporated*.................. 07/15/99 to 07/16/99 4.820 to 4.830 53,894,776
---------------
ASSET BACKED-MISCELLANEOUS--9.02%
30,000 Asset Securitization Cooperative
Corporation................................ 07/01/99 5.500 30,000,000
84,685 Falcon Asset Securitization Corporation...... 07/12/99 to 07/21/99 4.910 to 5.030 84,504,246
125,000 Preferred Receivables Funding Corporation.... 07/08/99 to 07/26/99 4.820 to 5.030 124,818,660
159,000 Quincy Capital Corporation................... 07/06/99 to 08/04/99 4.860 to 5.020 158,621,986
81,827 Receivables Capital Corporation ............. 07/13/99 to 07/15/99 4.910 to 4.960 81,680,037
164,601 Triple-A One Funding......................... 07/07/99 to 07/29/99 4.820 to 5.110 164,306,725
570,578 Variable Funding Capital Corporation......... 07/01/99 to 08/05/99 4.810 to 5.560 569,594,702
---------------
1,213,526,356
---------------
AUTO & TRUCK--7.57%
185,904 BMW US Capital Incorporated.................. 07/06/99 to 07/28/99 4.850 to 5.060 185,469,177
225,000 DiamlerChrysler N.A. Holding Corporation..... 07/09/99 to 07/29/99 4.810 to 5.020 224,474,000
348,750 Ford Motor Credit Corporation................ 07/08/99 to 07/30/99 4.790 to 5.010 348,113,117
240,000 General Motors Acceptance Corporation........ 07/07/99 to 08/04/99 4.810 to 5.110 239,481,408
20,000 PACCAR Financial Corporation................. 07/20/99 5.000 19,947,222
---------------
1,017,484,924
---------------
BANKING-DOMESTIC--3.05%
50,000 BCI Funding Corporation...................... 07/27/99 5.090 49,816,194
40,000 BBL North America Funding Corporation........ 07/13/99 4.990 39,933,467
255,000 Cregem North America Incorporated............ 07/01/99 to 07/29/99 4.800 to 5.000 254,532,843
66,000 Den Denske Corporation Delaware.............. 07/08/99 to 07/12/99 4.890 to 5.100 65,918,973
---------------
410,201,477
---------------
</TABLE>
5
<PAGE>
PAINEWEBBER RMA MONEY MARKET PORTFOLIO
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(000) MATURITY DATES INTEREST RATES VALUE
- ---------- --------------------- --------------- ---------------
<C> <S> <C> <C> <C>
</TABLE>
COMMERCIAL PAPER@--(CONTINUED)
<TABLE>
<C> <S> <C> <C> <C>
BANKING-FOREIGN--0.70%
$ 75,000 Banque et Caisse d'Epargne de L'Etat......... 07/07/99 to 07/19/99 4.830% $ 74,899,375
20,000 Nationwide Building Society.................. 08/11/99 4.820 19,890,211
---------------
94,789,586
---------------
BROKER-DEALER--5.49%
40,000 Bear Stearns Companies, Incorporated......... 08/09/99 4.920 39,786,800
130,000 Goldman Sachs Group Incorporated............. 07/20/99 to 07/27/99 4.980 to 5.030 129,602,254
275,000 Merrill Lynch & Company Incorporated......... 07/13/99 to 07/22/99 4.800 to 5.030 274,339,570
195,000 Morgan Stanley, Dean Witter & Company........ 07/12/99 to 07/21/99 4.800 to 5.000 194,618,236
100,000 Morgan Stanley, Dean Witter & Company........ 07/01/99 5.110 to 5.130* 100,000,000
---------------
738,346,860
---------------
BUSINESS SERVICES--1.22%
165,304 Xerox Capital PLC............................ 07/22/99 to 07/27/99 5.000 164,738,319
---------------
CHEMICALS--0.13%
17,000 Henkel Corporation........................... 07/07/99 4.830 16,986,315
---------------
COMPUTERS--0.93%
125,000 IBM Credit Corporation....................... 07/20/99 to 07/28/99 4.950 to 4.980 124,617,250
---------------
CONSUMER PRODUCTS--0.75%
101,018 Kimberly Clark Corporation................... 07/09/99 to 07/29/99 4.970 to 5.020 100,833,581
---------------
DRUGS & HEALTH CARE--3.55%
41,000 Abbott Laboratories.......................... 07/02/99 4.830 40,994,499
50,000 Bayer Corporation............................ 07/20/99 4.780 49,873,861
336,775 Pfizer Incorporated.......................... 07/06/99 to 07/22/99 4.850 to 4.960 336,108,562
50,000 Warner Lambert Company....................... 07/26/99 4.850 49,831,597
---------------
476,808,519
---------------
ELECTRONICS--0.61%
33,625 Motorola Credit Corporation.................. 07/30/99 4.980 33,490,108
10,000 Motorola Incorporated........................ 08/03/99 5.080 9,953,433
18,200 Siemens Capital Corporation.................. 07/01/99 4.810 18,200,000
20,154 Vermont American Corporation................. 07/06/99 4.850 20,140,424
---------------
81,783,965
---------------
ENERGY--2.36%
50,000 Chevron USA Incorporated..................... 08/10/99 5.070 49,718,334
78,000 Exxon Asset Management....................... 07/23/99 5.050 77,759,283
190,000 Koch Industries.............................. 07/01/99 5.520 190,000,000
---------------
317,477,617
---------------
ENTERTAINMENT--0.40%
54,000 The Walt Disney Company...................... 07/12/99 4.950 53,918,325
---------------
FINANCE-AIRCRAFT--0.19%
25,000 International Lease Financing................ 07/09/99 4.850 24,973,055
---------------
</TABLE>
6
<PAGE>
PAINEWEBBER RMA MONEY MARKET PORTFOLIO
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(000) MATURITY DATES INTEREST RATES VALUE
- ---------- --------------------- --------------- ---------------
<C> <S> <C> <C> <C>
</TABLE>
COMMERCIAL PAPER@--(CONTINUED)
<TABLE>
<C> <S> <C> <C> <C>
FINANCE-CONDUIT--1.00%
$ 134,904 MetLife Funding Incorporated................. 07/08/99 to 07/21/99 4.870 to 5.000% $ 134,635,918
---------------
FINANCE-CONSUMER--1.46%
50,000 American General Finance Corporation......... 07/08/99 4.820 49,953,139
135,000 Household Finance Corporation................ 07/14/99 4.800 134,766,000
11,155 Transamerica Finance Corporation............. 07/13/99 4.850 11,136,966
---------------
195,856,105
---------------
FINANCE-SUBSIDIARY--0.93%
25,000 Deutsche Bank Financial Incorporated......... 08/09/99 4.810 24,869,729
25,000 Dresdner U.S. Finance........................ 07/30/99 5.100 24,897,292
75,000 National Australia Funding (Delaware)
Incorporated............................... 07/12/99 to 07/19/99 4.890 to 5.020 74,837,146
---------------
124,604,167
---------------
FOOD, BEVERAGE & TOBACCO--1.23%
18,223 Best Foods Corporation....................... 07/16/99 4.980 18,185,187
63,750 Campbell Soup Company........................ 07/15/99 to 09/03/99 4.950 to 5.120 63,528,594
58,800 Coca-Cola Company............................ 07/15/99 to 07/20/99 4.850 to 5.050 58,654,732
25,000 Kellogg Company.............................. 07/22/99 4.950 24,927,813
---------------
165,296,326
---------------
INSURANCE--0.59%
50,000 Prudential Funding Corporation............... 07/08/99 4.820 49,953,139
30,000 USAA Capital Corporation..................... 07/13/99 4.870 29,951,300
---------------
79,904,439
---------------
INSURANCE-PROPERTY/CASUALTY--0.22%
30,000 A.I. Credit Corporation...................... 07/20/99 4.950 29,921,625
---------------
MANUFACTURING-DIVERSIFIED--1.55%
208,600 BTR Dunlop Finance Incorporated.............. 07/07/99 to 07/29/99 4.870 to 5.080 208,126,603
---------------
METALS & MINING--0.53%
70,800 U.S. Borax Incorporated...................... 07/07/99 to 07/15/99 4.810 to 4.900 70,715,645
---------------
PAPER & FOREST PRODUCTS--0.32%
43,000 Weyerhaeuser Real Estate Company............. 07/08/99 to 07/09/99 4.850 42,956,350
---------------
PRINTING & PUBLISHING--0.74%
100,000 Reed Elsevier (USA) Incorporated............. 07/15/99 to 07/19/99 4.850 to 4.950 99,782,500
---------------
TELECOMMUNICATIONS--3.56%
25,000 American Telephone & Telegraph............... 07/06/99 4.800 24,983,333
40,000 Ameritech Capital Funding Corporation........ 07/13/99 4.900 39,934,667
37,000 Bell Atlantic Network Funding Corporation.... 07/20/99 5.000 36,902,361
315,000 BellSouth Capital Funding Corporation........ 07/09/99 to 07/29/99 4.850 to 5.060 314,269,831
63,000 Lucent Technologies Incorporated............. 07/19/99 to 07/27/99 4.870 62,832,526
---------------
478,922,718
---------------
</TABLE>
7
<PAGE>
PAINEWEBBER RMA MONEY MARKET PORTFOLIO
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(000) MATURITY DATES INTEREST RATES VALUE
- ---------- --------------------- --------------- ---------------
<C> <S> <C> <C> <C>
</TABLE>
COMMERCIAL PAPER@--(CONCLUDED)
<TABLE>
<C> <S> <C> <C> <C>
UTILITY-ELECTRIC--0.95%
$ 128,017 Southern Company............................. 07/06/99 to 07/27/99 4.850 to 5.020% $ 127,841,735
---------------
Total Commercial Paper (cost--$7,379,146,951)............. 7,379,146,951
---------------
SHORT-TERM CORPORATE OBLIGATIONS--3.53%
AUTO & TRUCK--0.34%
45,000 PACCAR Financial Corporation................. 07/28/99 5.065* 44,998,354
---------------
BANKING-DOMESTIC--0.45%
25,000 Nations Bank Corporation..................... 07/02/99 4.990* 25,000,001
35,400 Norwest Corporation.......................... 08/31/99 to 09/15/99 5.550 to 6.680 35,437,627
---------------
60,437,628
---------------
BROKER-DEALER--1.30%
105,000 Bear Stearns Companies Incorporated.......... 07/01/99 to 07/20/99 4.923 to 5.489* 105,000,000
25,000 Lehman Brothers Holdings Incorporated........ 07/19/99 5.220* 25,006,450
45,000 Merrill Lynch & Company Incorporated......... 07/01/99 4.850* 45,000,000
---------------
175,006,450
---------------
COMPUTERS--0.63%
50,000 IBM Credit Corporation....................... 07/22/99 6.100 50,019,337
35,000 IBM Credit Corporation....................... 09/15/99 5.094* 35,000,000
---------------
85,019,337
---------------
FINANCE-DIVERSIFIED--0.37%
50,000 Associates Corporation of North America...... 06/29/00 5.097* 49,970,065
---------------
INSURANCE--0.44%
59,150 Prudential Funding Corporation............... 07/06/99 5.389 to 5.509* 59,150,000
---------------
Total Short-Term Corporate Obligations
(cost--$474,581,834).................................... 474,581,834
---------------
Total Investments (cost--$13,427,099,445 which
approximates cost for federal income tax
purposes)--99.86%....................................... 13,427,099,445
Other assets in excess of liabilities--0.14%.............. 19,040,669
---------------
Net Assets (applicable to 13,449,536,147 shares of common
stock outstanding at $1.00 per share)--100.00%.......... $13,446,140,114
---------------
---------------
</TABLE>
- -----------------
* Variable rate securities--maturity date reflects earlier of reset date or
stated maturity date. The interest rates shown are the current rates as of
June 30, 1999.
@ Interest rates shown are discount rates at date of purchase.
Weighted average maturity--64 days
See accompanying notes to financial statements
8
<PAGE>
PAINEWEBBER RMA U.S. GOVERNMENT PORTFOLIO
STATEMENT OF NET ASSETS JUNE 30, 1999
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(000) MATURITY DATES INTEREST RATES VALUE
- ---------- -------------------- ----------------- --------------
<C> <S> <C> <C> <C>
U.S. GOVERNMENT OBLIGATIONS--59.56%
$ 125,000 U.S. Treasury Bills............................... 07/08/99 to 08/05/99 4.375 to 4.480%@ $ 124,633,088
680,000 U.S. Treasury Notes............................... 07/15/99 to 04/30/00 5.500 to 7.125 682,117,165
--------------
Total U.S. Government Obligations (cost--$806,750,253).......... 806,750,253
--------------
REPURCHASE AGREEMENTS--39.92%
37,396 Repurchase Agreement dated 06/30/99 with Bear
Stearns & Company, collateralized by $35,600,000
U.S. Treasury Notes, 7.875% due 08/15/01
(value-$38,156,080); proceeds: $37,400,934...... 07/01/99 4.750 37,396,000
12,604 Repurchase Agreement dated 06/30/99 with Bear
Stearns & Company, collateralized by $12,920,000
U.S. Treasury Bills, due 08/05/99
(value-$12,864,444); proceeds: $12,605,663...... 07/01/99 4.750 12,604,000
45,000 Repurchase Agreement dated 06/30/99 with Deustche
Bank Securities Incorporated, collateralized by
$46,605,000 U.S. Treasury Notes, 4.625% due
12/31/00 (value-$45,901,824); proceeds:
$45,006,188..................................... 07/01/99 4.950 45,000,000
5,000 Repurchase Agreement dated 06/30/99 with Deustche
Bank Securities Incorporated, collateralized by
$5,180,000 U.S. Treasury Notes, 4.625% due
12/31/00 (value-$5,100,280);
proceeds: $5,000,688............................ 07/01/99 4.950 5,000,000
50,000 Repurchase Agreement dated 06/30/99 with Dresdner
Kleinwort Benson N.A. LLC, collateralized by
$49,993,000 U.S. Treasury Notes, 6.250% due
04/30/01 (value-$51,020,356);
proceeds: $50,006,875........................... 07/01/99 4.950 50,000,000
50,000 Repurchase Agreement dated 06/30/99 with First
Chicago Capital Markets Incorporated,
collateralized by $46,550,000 U.S. Treasury
Bonds, 7.250% due 05/15/16 (value-$51,000,180);
proceeds: $50,006,806........................... 07/01/99 4.900 50,000,000
20,834 Repurchase Agreement dated 06/30/99 with Goldman
Sachs & Company, collateralized by $17,365,000
U.S. Treasury Notes, 11.125% due 08/15/03
(value-$21,263,443);
proceeds: $20,836,720........................... 07/01/99 4.700 20,834,000
49,019 Repurchase Agreement dated 06/30/99 with J.P.
Morgan Securities Incorporated, collateralized
by $50,000,000 U.S. Treasury Notes, 5.500% due
03/31/03 (value-$49,999,500);
proceeds: $49,025,604........................... 07/01/99 4.850 49,019,000
981 Repurchase Agreement dated 06/30/99 with J.P.
Morgan Securities Incorporated, collateralized
by $1,001,000 U.S. Treasury Notes, 5.500% due
03/31/03 (value-$1,000,630);
proceeds: $981,132.............................. 07/01/99 4.850 981,000
50,000 Repurchase Agreement dated 06/30/99 with Merrill
Lynch Government Securities Incorporated,
collateralized by $53,615,000 U.S. Treasury
Bills, due 06/22/00 (value-$51,001,269);
proceeds: $50,006,806........................... 07/01/99 4.900 50,000,000
20,000 Repurchase Agreement dated 06/30/99 with Morgan
Stanley & Company Incorporated, collateralized
by $13,445,000 U.S. Treasury Bonds, 13.250% due
05/15/14 (value-$20,402,788);
proceeds: $20,002,694........................... 07/01/99 4.850 20,000,000
50,000 Repurchase Agreement dated 06/30/99 with
NationsBanc Montgomery Securities,
collateralized by $49,940,000 U.S. Treasury
Notes, 6.125% due 09/30/00 (value-$51,001,225);
proceeds: $50,006,528........................... 07/01/99 4.700 50,000,000
</TABLE>
9
<PAGE>
PAINEWEBBER RMA U.S. GOVERNMENT PORTFOLIO
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(000) MATURITY DATES INTEREST RATES VALUE
- ---------- -------------------- ----------------- --------------
<C> <S> <C> <C> <C>
</TABLE>
REPURCHASE AGREEMENTS--(CONCLUDED)
<TABLE>
<C> <S> <C> <C> <C>
$ 50,000 Repurchase Agreement dated 06/30/99 with SG Cowen
Securities Corporation, collateralized by
$49,216,000 U.S. Treasury Notes, 6.250% due
01/31/02 (value-$51,000,080);
proceeds: $50,006,778........................... 07/01/99 4.880% $ 50,000,000
37,088 Repurchase Agreement dated 06/30/99 with State
Street Bank and Trust Company, collateralized by
$25,760,000 U.S. Treasury Bonds, 14.000% due
11/15/11 (value-$37,835,000);
proceeds: $37,092,997........................... 07/01/99 4.850 37,088,000
12,912 Repurchase Agreement dated 06/30/99 with State
Street Bank and Trust Company, collateralized by
$9,720,000 U.S. Treasury Bonds, 12.750% due
11/15/10 (value-$13,174,488);
proceeds: $12,913,646........................... 07/01/99 4.850 12,912,000
49,693 Repurchase Agreement dated 06/30/99 with Warburg
Dillon Read LLC, collateralized by $50,000,000
U.S. Treasury Bonds, 6.250% due 08/15/23
(value-$50,687,500); proceeds: $49,699,819...... 07/01/99 4.940 49,693,000
307 Repurchase Agreement dated 06/30/99 with Warburg
Dillon Read LLC, collateralized by $309,000 U.S.
Treasury Bonds, 6.250% due 08/15/23
(value-$313,249); proceeds: $307,042............ 07/01/99 4.940 307,000
--------------
Total Repurchase Agreements (cost--$540,834,000)................ 540,834,000
--------------
Total Investments (cost--$1,347,584,253 which approximates cost
for federal income tax purposes)--99.48%...................... 1,347,584,253
Other assets in excess of liabilities--0.52%.................... 7,009,416
--------------
Net Assets (applicable to 1,354,979,827 shares of common stock
outstanding at $1.00 per share)--100.00%...................... $1,354,593,669
--------------
--------------
</TABLE>
- -----------------
@ Interest rates shown are discount rates at date of purchase.
Weighted average maturity--57 days
See accompanying notes to financial statements
10
<PAGE>
PAINEWEBBER RMA TAX-FREE FUND, INC.
STATEMENT OF NET ASSETS JUNE 30, 1999
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(000) MATURITY DATES INTEREST RATES VALUE
- ------------ -------------------- ---------------- ---------------
<C> <S> <C> <C> <C>
ALABAMA--2.22%
$ 20,900 Birmingham Alabama Medical Clinic Board Revenue
(U.A.H.S.F)..................................... A 3.300% $ 20,900,000
9,635 Birmingham Alabama Refunding, Series A............ A 3.500 9,635,000
5,335 Birmingham Alabama Special Care Facilities
(Eye Foundation Hospital), Series A............. A 3.300 5,335,000
2,015 Jefferson County Board of Education School
Refunding, Series A............................. 02/15/00 4.500 2,032,846
10,000 Port City Medical Board of Mobile (Infirmary
Health Systems)................................. 07/20/99 3.050 10,000,000
6,000 St. Clair County Industrial Development Board
(National Cement Company Inc. Project).......... A 3.650 6,000,000
---------------
53,902,846
---------------
ARIZONA--2.38%
11,200 Apache County Industrial Development Authority
(Tucson Electric Power Company Project Series
B).............................................. A 3.450 11,200,000
6,500 Apache County Industrial Development Authority
(Tucson Electric Power Springerville Project)... A 3.400 6,500,000
2,500 Arizona School District Financing Program
Certificates of Participation Series A.......... 07/30/99 4.100 2,502,070
5,000 Maricopa County Pollution Control Revenue
(El Paso Electric Palo Verde Project) Series
E............................................... A 3.400 5,000,000
5,000 Maricopa County Pollution Control Corporation
(El Paso Project A)............................. A 3.400 5,000,000
5,000 Maricopa County Pollution Control
(El Paso Electric Company Project A)............ A 3.400 5,000,000
4,200 Phoenix Multi-Family Housing Authority
(Del Mar Terrace Apartments Project)............ A 3.800 4,200,000
3,780 Scottsdale Industrial Development Authority
Hospital Revenue (Scottsdale Memorial Health
Systems Series B)............................... A 3.300 3,780,000
14,460 Salt River Agricultural Improvement and Power
Project
Tax-Exempt Commerical Paper..................... A 3.050 14,460,000
---------------
57,642,070
---------------
CALIFORNIA--0.76%
6,500 California Higher Education Loan Authority
(Student Loans)................................. A 3.050 6,500,000
6,900 Los Angeles Regional Airports Improvement
Corporation
Lease Revenue................................... A 3.850 6,900,000
5,000 Fremont California Tax and Revenue Anticipation
Notes........................................... 07/01/99 4.000 5,000,000
---------------
18,400,000
---------------
COLORADO--0.99%
9,150 Douglas County Colorado Multi-Family Housing
Revenue
(Autumn Chase Project J)........................ A 3.400 9,150,000
10,500 Moffat County Pollution Control Revenue
(Colorado-Ute Electric)......................... A 3.800 10,500,000
4,450 Smith Creek Metropolitan District Revenue......... 07/01/99 3.800 4,450,000
---------------
24,100,000
---------------
DELAWARE--0.85%
20,600 Delaware Economic Development Authority
(Hospital Billing and Collection Service,
Ltd.)........................................... A 3.550 20,600,000
---------------
</TABLE>
11
<PAGE>
PAINEWEBBER RMA TAX-FREE FUND, INC.
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(000) MATURITY DATES INTEREST RATES VALUE
- ------------ -------------------- ---------------- ---------------
<C> <S> <C> <C> <C>
DISTRICT OF COLUMBIA--1.78%
$ 5,205 District of Columbia Unrefunded Balance Bonds..... 12/01/99 4.700% $ 5,238,837
900 District of Columbia Refunding A-1................ A 3.500 900,000
1,300 District of Columbia Refunding A-6................ A 3.500 1,300,000
26,200 District of Columbia Revenue (George Washington
University A)................................... A 2.856 26,200,000
9,500 District of Columbia (National Academy of Science)
Tax-Exempt Commercial Paper..................... 09/17/99 to 09/24/99 3.200 to 3.250 9,500,000
---------------
43,138,837
---------------
FLORIDA--7.23%
4,285 Broward County Housing Finance Authority
Multi-Family Housing Revenue (Lake Park
Associates Limited)............................. A 3.350 4,285,000
9,550 Dade County Health Facilities Authority Hospital
Revenue
(Miami Childrens Hospital)...................... A 3.300 9,550,000
42,000 Dade County Water and Sewer System Revenue........ A 3.300 42,000,000
4,500 Florida Municipal Power Agency Revenue Refunding
Subordinated (Stanton Project).................. A 3.250 4,500,000
10,000 Jacksonville Health Facilities Authority Hospital
(Charity Obligated Group)....................... A 3.350 10,000,000
9,100 Miami Health Facilities Authority Health
Facilities Refunding
(Mercy Hospital Project)........................ A 3.350 9,100,000
4,350 Orange County Health Facilities Authority
(Adventist Health Systems)...................... A 3.750 4,350,000
14,000 Palm Beach County Florida School District Tax
Anticipation Notes.............................. 10/14/99 3.625 14,018,273
4,000 Tampa Florida Occupational License Tax, Series
A............................................... A 3.300 4,000,000
4,900 University of North Florida Foundation
Incorporated.................................... A 3.800 4,900,000
15,000 City of Sullivan Pollution Control Revenue
National Rural Utilities (Hoosier Energy)
Tax-Exempt Commercial Paper..................... 10/20/99 to 02/11/00 3.200 to 3.250 15,000,000
33,875 Florida Local Government Finance Commission,
Series A,
Tax-Exempt Commercial Paper..................... 07/13/99 to 08/11/99 2.750 to 3.250 33,875,000
7,400 Orange County Florida Hospital Revenue
Tax-Exempt Commercial Paper..................... 08/12/99 3.200 7,400,000
7,750 Sarasota Public Hospital District
Tax-Exempt Commercial Paper..................... 09/14/99 3.150 7,750,000
4,550 West Orange Memorial Hospital Series A-1,
Tax-Exempt Commercial Paper..................... 07/22/99 2.850 4,550,000
---------------
175,278,273
---------------
GEORGIA--7.18%
100 Bartow County Development Authority Pollution
Control Revenue
(Georgia Power Company Bowen 1St. Series)....... A 3.750 100,000
1,700 Burke County Development Authority Pollution
Control
(Georgia Power Company Plant Vogtle 2nd)........ A 3.500 1,700,000
18,700 Burke County Development Authority Pollution
Control
(Oglethorpe Power Corp.)........................ A 3.300 18,700,000
3,000 Cobb County and Marietta County Water Authority
Water Revenue................................... 11/01/99 4.500 3,015,421
10,000 Cobb County Housing Authority Multi-Family Housing
Revenue
(Greenhouse Frey Apartment Project)............. A 3.500 10,000,000
5,500 Cobb County Tax Anticipation Notes................ 12/31/99 3.250 5,505,500
</TABLE>
12
<PAGE>
PAINEWEBBER RMA TAX-FREE FUND, INC.
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(000) MATURITY DATES INTEREST RATES VALUE
- ------------ -------------------- ---------------- ---------------
<C> <S> <C> <C> <C>
</TABLE>
GEORGIA--(CONCLUDED)
<TABLE>
<C> <S> <C> <C> <C>
$ 10,000 De Kalb County Housing Authority Multi-Family
Housing Revenue
Refunding (Post Walk Project)................... A 3.350% $ 10,000,000
5,500 De Kalb Private Hospital Authority Revenue
Anticipation Certificates
(ESR Childrens Health Series B)................. A 3.350 5,500,000
10,000 Municipal Electric Authority of Georgia........... A 3.500 10,000,000
9,740 Georgia Municipal Gas Authority Gas Revenue
(Agency Project Series C)....................... A 3.500 9,740,000
12,595 Georgia Municipal Gas Authority Gas Revenue
(Gas Portfolio II Project C).................... A 3.300 12,595,000
30,140 Georgia Municipal Gas Authority (Transco Portfolio
I Project B).................................... A 3.500 30,140,000
5,100 Glynn Brunswick Memorial Hospital Anticipation
Certificates
(Southeast Georgia Health)...................... A 3.300 5,100,000
12,370 Glynn Brunswick Memorial Hospital Anticipation
Certificates
(Southeast Georgia Project)..................... A 3.300 12,370,000
19,150 Gwinnett County Housing Authority Multi-Family
Housing Revenue
(Post Chase Project)............................ A 3.350 19,150,000
10,400 Gwinnett County Housing Authority Multi-Family
Housing Revenue
(Greens Apartments Project) Tax-Exempt
Commercial Paper................................ A 3.500 10,400,000
10,000 Burke County Development Authority Pollution
Control
(Oglethorpe Power Corp.) Tax-Exempt Commercial
Paper........................................... 08/17/99 3.150 10,000,000
---------------
174,015,921
---------------
ILLINOIS--11.52%
4,000 Chicago Illinois Multi-Family Housing Revenue
(Waveland Associates Project D)................. A 3.400 4,000,000
1,500 Chicago Illinois Multi-Family Housing Revenue
(Waveland Association Project E)................ A 3.400 1,500,000
35,400 Chicago O'Hare International Airport Revenue,
Series C........................................ A 3.500 35,400,000
39,600 Cook County Illinois.............................. A 3.450 39,600,000
6,000 Illinois Development Finance Authority
(Chicago Symphony Orchestra).................... A 3.450 6,000,000
23,200 Illinois Development Finance Authority Pollution
Control Revenue
(Commonwealth Edison)........................... A 3.450 23,200,000
2,500 Illinois Development Finance Authority Revenue
(Francis W. Parker School Project).............. A 3.500 2,500,000
4,000 Illinois Development Finance Authority Revenue
(Provena Health) Series C....................... A 3.450 4,000,000
9,000 Illinois Educational Facilities Authority Revenue
(Field Museum).................................. 11/23/99 2.900 9,000,000
4,795 Illinois Educational Facilities Authority Revenue
(Northwestern University)....................... A 3.700 4,795,000
6,000 Illinois Educational Facilities Authority Revenue
(Shedd Aquarium Society Series B)............... 07/20/99 3.700 6,000,000
19,700 Illinois Health Facilities Authority Revenue
(Central Health and Northwest Community)........ A 3.400 19,700,000
1,000 Illinois Health Facilities Authority Revenue
(Elmhurst Memorial Hospital Series B)........... A 3.500 1,000,000
29,500 Illinois Health Facilities Authority Revenue
(Evanston Hospital)............................. 11/30/99 to 05/31/00 2.950 to 3.250 29,500,000
6,070 Illinois Health Facilities Authority Revenue
(Loyola University Health Systems Series B)..... A 3.300 6,070,000
8,000 Illinois Health Facilities Authority Revenue
(Pooled Loan)................................... A 3.650 8,000,000
</TABLE>
13
<PAGE>
PAINEWEBBER RMA TAX-FREE FUND, INC.
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(000) MATURITY DATES INTEREST RATES VALUE
- ------------ -------------------- ---------------- ---------------
<C> <S> <C> <C> <C>
</TABLE>
ILLINOIS--(CONCLUDED)
<TABLE>
<C> <S> <C> <C> <C>
$ 3,000 Illinois Health Facilities Authority Revenue
(St. Lukes Medical Center Obligation Series
B).............................................. A 3.500% $ 3,000,000
5,000 Illinois Health Facilities Authority Revenue
(University Chicago Hospital), Project C........ A 3.500 5,000,000
21,950 Illinois Health Facilities Authority Revenue
Refunding
(Advocate Health Care Series B)................. A 3.400 21,950,000
21,600 Illinois Toll and Highway Authority............... A 3.300 21,600,000
3,500 Jackson Union County Regional Port District
Facilities Revenue
Refunding (Enron Transportation Services)....... A 3.350 3,500,000
24,056 Illinois Educational Facilities Authority Revenue
(Pooled Loan) Tax-Exempt Commercial Paper....... 08/09/99 to 08/17/99 3.100 to 3.200 24,056,000
---------------
279,371,000
---------------
INDIANA--3.59%
17,500 Indiana Bond Bank, Series A-2, Advance Funding
Program Note.................................... 01/19/00 3.500 17,550,288
4,000 Indiana Municipal Power Supply Systems Revenue
Refunding, Series A............................. A 3.350 4,000,000
4,250 Indianapolis Local Public Improvement Bond Bank,
Series A........................................ 01/10/00 4.000 4,266,524
9,300 Rockport Pollution Control Revenue Refunding
(Indiana Michigan Power Company Project B)...... A 3.450 9,300,000
18,600 St. Joseph County Educational Facilities Revenue
(University Notre Dame)......................... A 3.600 18,600,000
33,400 City of Indianapolis Gas Utility System
Tax-Exempt Commercial Paper..................... 08/10/99 to 10/18/99 3.050 to 3.200 33,400,000
---------------
87,116,812
---------------
IOWA--0.95%
23,000 Iowa Finance Authority (Village Court Project).... A 3.625 to 3.700 23,000,000
---------------
KANSAS--0.21%
5,050 Wyandotte County/Kansas City Unified Government... 02/01/00 3.300 5,050,000
---------------
KENTUCKY--1.86%
4,500 Kentucky Asset / Liability Commission General
Fund............................................ 11/01/99 3.500 4,508,096
7,865 Kentucky Economic Development Finance Authority
Hospital Facilities Revenue (Baptist Healthcare
Systems Obligation)............................. A 3.400 7,865,000
8,095 Mason County Pollution Control Revenue
(East Kentucky Power National Rural)............ A 3.550 8,095,000
11,400 Jefferson County Kentucky Series A (Louisville Gas
and Electric) Tax-Exempt Commercial Paper....... 07/21/99 to 02/18/00 3.050 to 3.350 11,400,000
13,135 Trimble County Pollution Control
(Louisville Gas and Electric) Tax-Exempt
Commercial Paper................................ 07/27/99 to 07/28/99 3.150 13,135,000
---------------
45,003,096
---------------
LOUISIANA--3.81%
9,700 Calcasieu Parish Industrial Development Board
Pollution Control Revenue (Citgo Petrol
Corporation).................................... A 3.550 9,700,000
3,750 Calcasieu Parish Louisiana Sales Tax District..... A 3.750 3,750,000
11,500 Jefferson Parish Hospital Service District
Hospital Revenue................................ A 3.500 11,500,000
27,000 Louisiana Offshore Terminal Authority Deepwater... A 3.500 27,000,000
</TABLE>
14
<PAGE>
PAINEWEBBER RMA TAX-FREE FUND, INC.
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(000) MATURITY DATES INTEREST RATES VALUE
- ------------ -------------------- ---------------- ---------------
<C> <S> <C> <C> <C>
</TABLE>
LOUISIANA--(CONCLUDED)
<TABLE>
<C> <S> <C> <C> <C>
$ 12,000 Louisiana Public Facilities Authority
Pollution Control Revenue (Ciba Geigy).......... A 3.500% $ 12,000,000
7,545 Louisiana Public Facilities Authority Revenue
(College and University Equipment and Capital
Series A)....................................... A 3.500 7,545,000
11,000 Plaquemines Port Harbor and Terminal District
(Tampa Electric)................................ 10/07/99 to 10/15/99 3.150 to 3.300 11,000,000
4,000 Plaquemines Port Harbor and Terminal District Port
(Chevron Pipeline Company)...................... A 3.650 4,000,326
5,900 South Louisiana Port Commission Marine Terminal
Facilities Revenue (Occidental Petroleum)....... A 3.500 5,900,000
---------------
92,395,326
---------------
MARYLAND--3.39%
4,500 Maryland Health and Higher Educational Facilities
Series A
(Johns Hopkins Hospital)........................ A 3.300 4,500,000
3,600 Maryland Health and Higher Educational Facilities
Series A
(Pooled Loan Program)........................... A 3.550 3,600,000
13,900 Maryland Health and Higher Educational Facilities
Series B
(Pooled Loan Program)........................... A 3.400 13,900,000
5,575 Northeast Maryland Waste Disposal Authority
Resources
Recovery Revenue (Refunding Harford County
Resources)...................................... A 3.200 5,575,000
9,200 University of Maryland Equipment Tender Notes..... A 3.400 9,200,000
45,400 Maryland Health and Higher Education, Series C
(Johns Hopkins Hospital) Tax-Exempt Commercial
Paper........................................... 08/10/99 to 02/17/00 3.100 to 3.350 45,400,000
---------------
82,175,000
---------------
MASSACHUSETTS--2.47%
11,400 Boston Water and Sewer Commission Revenue Series
A............................................... A 3.500 11,400,000
1,130 Falmouth Massachusetts Bond Anticipation Notes.... 08/13/99 4.000 1,130,507
10,000 Gloucester Massachusetts Bond Anticipation
Notes........................................... 08/05/99 4.000 10,003,143
13,500 Massachusetts Bay Transport Authority Notes Series
A............................................... 02/25/00 3.500 13,551,500
10,000 Massachusetts Health and Educational Facilities
Authority
(Capital Asset Program)......................... A 3.200 10,000,000
4,000 Massachusetts Municipal Wholesale Electric Company
Power Supply Systems Revenue.................... A 3.400 4,000,000
4,900 Narragansett Regional School District Bond
Anticipation Notes.............................. 07/30/99 3.750 4,901,477
5,000 Norfolk County Massachusetts Agricultural School
Loan............................................ 03/07/00 3.400 5,000,000
---------------
59,986,627
---------------
MICHIGAN--2.35%
3,000 Detriot City School District School Aid Notes..... 07/01/99 4.250 3,000,000
8,000 Kent Hospital Finance Authority Michigan Revenue
Refunding Spectrum Health B..................... A 3.300 8,000,000
2,000 Michigan Municipal Bond Authority Revenue Notes
Series B 1...................................... 07/02/99 4.500 2,000,047
4,500 Michigan Municipal Bond Authority Revenue Notes
Series D 1...................................... 08/27/99 4.250 4,504,540
12,950 Michigan Municipal Bond Authority Revenue Notes
Series D 2...................................... 08/27/99 4.250 12,964,055
4,000 Michigan State Housing Development Authority
(Shoal Creek)................................... A 3.500 4,000,000
7,000 Michigan Strategic Fund (Dow Chemical)............ A 3.450 7,000,000
2,600 Michigan University Revenues Refunding Hospital
Series A 2...................................... A 3.450 2,600,000
</TABLE>
15
<PAGE>
PAINEWEBBER RMA TAX-FREE FUND, INC.
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(000) MATURITY DATES INTEREST RATES VALUE
- ------------ -------------------- ---------------- ---------------
<C> <S> <C> <C> <C>
</TABLE>
MICHIGAN--(CONCLUDED)
<TABLE>
<C> <S> <C> <C> <C>
$ 5,400 Northville Township Economic Development
Corporation
Limited Obligation Revenue
(Thrifty Northville Incorporated Project)....... A 3.825% $ 5,400,000
3,500 Michigan State Building Authority Revenue, Series
1
Tax-Exempt Commercial Paper..................... 08/05/99 3.150 3,500,000
4,000 Michigan Strategic Fund (Dow Chemical)
Tax-Exempt Commercial Paper..................... 07/14/99 3.150 4,000,000
---------------
56,968,642
---------------
MISSISSIPI--0.64%
3,600 Harrison County Pollution Control Revenue
(DuPont)........................................ A 3.450 3,600,000
8,700 Mississippi Business Finance Corporation
Mississippi Revenue
(Mississippi College)........................... A 3.800 8,700,000
3,200 Claiborne County Pollution Control Revenue
(Southern Mississippi Electric) Tax-Exempt
Commercial Paper................................ 09/16/99 3.300 3,200,000
---------------
15,500,000
---------------
MISSOURI--1.40%
34,000 Missouri Health and Educational Facilities
Authority Revenue
(Medical Research Facilities Stowers A)......... A 3.550 34,000,000
---------------
NEBRASKA--1.39%
10,100 Lancaster County Hospital Revenue
(Bryan Memorial Hospital Project)............... A 3.300 10,100,000
3,200 Nebhelp Incorporated Nebraska Revenue
Multiple Mode Student Loan, Series A............ A 3.550 3,200,000
15,100 Nebhelp Incorporated Nebraska Revenue
Multiple Mode Student Loan, Series E............ A 3.550 15,100,000
5,360 Omaha Public Power District Electric
Tax-Exempt Commercial Paper..................... 10/12/99 to 02/10/00 3.250 5,360,000
---------------
33,760,000
---------------
NEVADA--1.33%
27,510 Clark County Airport Improvement Revenue.......... A 3.300 27,510,000
4,490 Clark County School District Bonds................ 06/15/00 6.000 to 6.500 4,617,039
---------------
32,127,039
---------------
NEW HAMPSHIRE--1.42%
10,000 New Hampshire Business Finance Authority Series A
Resource Recovery Revenue....................... A 3.550 10,000,000
19,525 New Hampshire Housing Finance Authority
Multi-Family Revenue
(EQR Bond Partnership Project).................. A 3.500 19,525,000
5,000 Rockingham County Tax Anticipation Notes.......... 12/31/99 3.250 5,000,716
---------------
34,525,716
---------------
NEW JERSEY--1.01%
2,500 Essex County Bond Anticipation Notes.............. 12/15/99 3.500 2,504,597
12,000 South Jersey Transportation Authority New Jersey
Subordinated Bond Anticipation Notes............ 11/03/99 2.950 12,000,000
</TABLE>
16
<PAGE>
PAINEWEBBER RMA TAX-FREE FUND, INC.
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(000) MATURITY DATES INTEREST RATES VALUE
- ------------ -------------------- ---------------- ---------------
<C> <S> <C> <C> <C>
</TABLE>
NEW JERSEY--(CONCLUDED)
<TABLE>
<C> <S> <C> <C> <C>
$ 10,000 Woodbridge Township Bond Anticipation Notes....... 07/30/99 4.000% $ 10,003,075
---------------
24,507,672
---------------
NEW MEXICO--0.82%
2,900 Albuquerque Gross Receipts Lodges Tax Revenue
Series A........................................ A 3.350 2,900,000
16,900 University of New Mexico University Revenues...... A 3.300 16,900,000
---------------
19,800,000
---------------
NEW YORK--4.33%
13,900 Babylon New York Industrial Development Agency
Resources
(Ogden Martin Project).......................... A 3.100 13,900,000
2,500 New York City Municipal Water Finance Authority... 09/17/99 3.350 2,500,000
6,000 New York City Transitional Finance Authority
Future Tax Secured Series A..................... A 3.350 6,000,000
2,750 New York City Transitional Finance Authority
Future Tax Secured Series C..................... A 3.400 2,750,000
4,155 New York State Dormitory Authority Revenues
(State University Educational Series B)......... 05/15/00 7.375 4,385,622
1,200 New York State Energy Research and Development
Authority
Pollution Control Revenue (Orange and Rockland
Project A)...................................... A 3.500 1,200,000
4,000 New York State Energy Research and Development
Authority Gas
Facilities Revenue (Brooklyn Union Gas Company
Sereis A1)...................................... A 3.350 4,000,000
3,500 New York State Energy Research and Development
Authority Gas
Facilities Revenue (Brooklyn Union Gas Company
Series A3)...................................... A 3.100 3,500,000
6,900 New York State Housing Finance Agency
(Normandie Court I Project)..................... A 3.200 6,900,000
3,000 New York State Housing Finance Agency Service
Contract
Obligation Revenue Series A..................... A 3.350 3,000,000
8,400 New York State Local Government Assistance
Corporation..................................... A 3.000 to 3.250 8,400,000
11,000 Riverhead Central School District
Tax Anticipation Notes.......................... 06/23/00 3.750 11,019,176
37,335 Suffolk County Water Authority
Bond Anticipation Notes......................... A 3.200 37,335,000
---------------
104,889,798
---------------
NORTH CAROLINA--6.55%
16,480 Charlotte Airport Revenue......................... A 3.300 16,480,000
16,400 Charlotte Mecklenberg Hospital Authority Health
Care Systems Revenue Series D................... A 3.700 16,400,000
3,400 Greensboro Enterprise Systems Revenue Series B.... A 3.300 3,400,000
26,450 North Carolina Education and Medicare (Duke
University)..................................... A 3.250 to 3.9000 26,450,000
10,975 North Carolina Educational Facilities Finance
Agency Revenue
(Guilford College).............................. A 3.500 10,975,000
22,000 North Carolina Educational Facility
(Bowman Grey School Medical Project)............ A 3.700 22,000,000
19,740 North Carolina Educational Facility
(Duke University Project Series A).............. A 3.650 19,740,000
14,000 North Carolina Educational Facility
(Duke University Project Series B).............. A 3.650 14,000,000
</TABLE>
17
<PAGE>
PAINEWEBBER RMA TAX-FREE FUND, INC.
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(000) MATURITY DATES INTEREST RATES VALUE
- ------------ -------------------- ---------------- ---------------
<C> <S> <C> <C> <C>
</TABLE>
NORTH CAROLINA--(CONCLUDED)
<TABLE>
<C> <S> <C> <C> <C>
$ 9,815 North Carolina Educational Facility (Elon
College)........................................ A 3.350% $ 9,815,000
5,785 North Carolina Medical Care Commission Hospital
Revenue
(Duke University Hospital Project C)............ A 3.650 5,785,000
2,300 North Carolina Medical Care Commission Hospital
Revenue Bonds................................... A 3.750 2,300,000
7,600 Union County Industrial Facilities and Pollution
Control Financing Authority (Square D Company
Project)........................................ A 3.100 to 3.700 7,600,000
4,000 North Carolina Municipal Power Series A
Tax-Exempt Commercial Paper..................... 10/19/99 3.350 4,000,000
---------------
158,945,000
---------------
OHIO--2.26%
5,300 Columbus Electric Systems Revenue................. A 2.800 5,300,000
18,900 Columbus Sewer Revenue............................ A 3.700 18,900,000
10,000 Cuyahoga County Hospital Revenue
(Cleveland Clinic Foundation A)................. A 3.450 10,000,000
4,835 Cuyahoga County Hospital Revenue Series A......... A 3.500 4,835,000
1,650 Hamilton County Hospital Facilities Revenue
(Bethesda Hospital Incorporated)................ A 3.600 1,650,000
14,000 Ohio State Air Quality Development Authority
Revenue Refunding
(Ohio Edison Project, Series A)................. A 2.850 14,000,000
---------------
54,685,000
---------------
OREGON--1.09%
16,300 Oregon State General Obligation (Veterans
Welfare)........................................ A 3.450 16,300,000
10,000 Portland Oregon Tax Anticipation Notes............ 06/29/00 4.250 10,076,900
---------------
26,376,900
---------------
PENNSYLVANIA--4.40%
14,000 Allegheny County Hospital Development Authority
Revenue
(St. Francis Systems)........................... A 3.650 14,000,000
3,000 Beaver County Pollution Control Revenue
(Ohio Edison Company Series A).................. A 3.100 3,000,000
9,200 Delaware Economic Development Authority Revenue
(Hospital Billing Series C)..................... 08/06/99 to 09/21/99 3.100 to 3.350 9,200,000
21,200 Delaware Valley Regional Finance Authority
Local Government Revenue........................ A 3.350 21,200,000
4,600 Delaware Valley Regional Finance Authority Series
A
Local Government Revenue........................ A 3.350 4,600,000
4,200 Delaware Valley Regional Finance Authority Series
B
Local Government Revenue........................ A 3.350 4,200,000
12,200 Northcumberland County Industrial Development
Authority
Pollution Control Revenue (Merck and Company)... A 3.000 to 3.950 12,200,000
10,000 Pennsylvania Higher Educational Facilities
Authority Revenue
(University of Pennsylvania Health Services)
Series B........................................ A 3.700 10,000,000
3,600 Philadelphia Hospital and Higher Education Health
Systems
(Jefferson B project)........................... A 3.250 3,600,000
10,000 Philadelphia Water and Waste (1st Albany Muni
Trust).......................................... A 3.040 10,000,000
7,000 Philadelphia Water and Waste Revenue Series B..... A 3.300 7,000,000
</TABLE>
18
<PAGE>
PAINEWEBBER RMA TAX-FREE FUND, INC.
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(000) MATURITY DATES INTEREST RATES VALUE
- ------------ -------------------- ---------------- ---------------
<C> <S> <C> <C> <C>
</TABLE>
PENNSYLVANIA--(CONCLUDED)
<TABLE>
<C> <S> <C> <C> <C>
$ 7,800 Pottsville Hospital Authority Hospital Revenue
(Charity Obligation Group Series F)............. A 3.350% $ 7,800,000
---------------
106,800,000
---------------
RHODE ISLAND--0.16%
3,965 Rhode Island Health and Educational Building
Corporation
(Women and Infants)............................. A 3.550 3,965,000
---------------
SOUTH CAROLINA--1.60%
13,335 South Carolina Jobs Economic Development Authority
Hospital Facilities Revenue (Baptist Healthcare
Systems)........................................ A 3.300 13,335,000
7,350 South Carolina Jobs Economic Development Authority
Hospital Facilities Revenue (Regional Medical
Center Orangeburg).............................. A 3.300 7,350,000
2,325 South Carolina Transportation Infrastructure Bank
Series A........................................ 10/01/99 4.000 2,329,370
2,325 Spartanburg County School District Number 7
School District Enhance Program................. 03/01/00 5.000 2,355,002
13,545 South Carolina Public Service Authority
Tax-Exempt Commercial Paper..................... 08/06/99 to 08/13/99 3.150 13,545,000
---------------
38,914,372
---------------
SOUTH DAKOTA--0.18%
4,235 South Dakota Building Authority Lease Revenue
Series A........................................ 12/01/99 5.150 4,272,175
---------------
TENNESSEE--2.02%
7,845 Clarksville Public Building Authority Revenue C... A 3.800 7,845,000
4,000 Metropolitan Nashville Airport Authority.......... A 3.500 4,000,000
8,000 Metropolitan Nashville and Davidson County Health
and Education Facilities Board Revenue
(Vanderbilt University)......................... A 3.100 8,000,000
8,600 Metropolitan Nashville and Davidson Industrial
(Timberlake).................................... A 3.450 8,600,000
4,500 Montgomery County Public Building Authority
Revenue
(Pooled loan)................................... A 3.800 4,500,000
2,000 Tennessee Energy Acquisition Corporation Gas,
Series A........................................ 09/01/99 3.750 2,001,155
2,440 Tennessee Energy Acquisition Corporation Gas,
Series B........................................ 09/01/99 3.750 2,441,208
3,875 Tennessee State, Series A......................... 05/01/00 4.000 3,901,776
7,700 Tennessee State Tax-Exempt Commercial Paper....... 08/09/99 to 08/10/99 3.050 to 3.150 7,700,000
---------------
48,989,139
---------------
TEXAS--10.42%
6,460 Bexar County Health Facilities Development
(Army Retirement Foundation).................... A 3.700 6,460,000
12,800 Georgetown Higher Education Finance Corp.
(Southwestern University)....................... A 3.500 12,800,000
10,700 Harris County Health Facilities Series B
(Memorial Hospital Systems Project)............. A 3.300 10,700,000
23,100 Harris County Toll Roads.......................... A 3.350 23,100,000
4,000 Houston Water and Sewer Systems................... 07/29/99 3.150 4,000,000
1,330 Killeen Independent School District............... 02/15/00 4.200 1,339,790
5,500 Midlothian Industrial Development Corporation
Pollution Control Revenue (Box Crow Cement
Company Project)................................ A 3.450 to 5.250 5,500,000
4,800 Plano Texas Independent School District........... 02/15/00 5.500 4,868,726
</TABLE>
19
<PAGE>
PAINEWEBBER RMA TAX-FREE FUND, INC.
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(000) MATURITY DATES INTEREST RATES VALUE
- ------------ -------------------- ---------------- ---------------
<C> <S> <C> <C> <C>
</TABLE>
TEXAS--(CONCLUDED)
<TABLE>
<C> <S> <C> <C> <C>
$ 9,200 Port of Corpus Christi Authority Texas (Koch
Industries)..................................... A 3.400% $ 9,200,000
20,000 Texas State Tax Revenue Anticipation Notes........ 08/31/99 4.500 20,052,645
18,000 Travis County Health Facilities Development
Corporation
Hospital Revenue (Charity Obligation Group
Series E)....................................... A 3.350 18,000,000
4,000 Bexar Metropolitan Water Tax-Exempt Commercial
Paper........................................... 08/18/99 3.250 4,000,000
6,000 Brownsville Utilities Tax-Exempt Commercial
Paper........................................... 09/08/99 3.150 6,000,000
16,500 City of Houston Tax-Exempt Commercial Paper....... 07/21/99 to 08/19/99 2.900 to 3.200 16,500,000
18,000 City of Houston Water and Sewer Authority
Tax-Exempt Commercial Paper..................... 07/27/99 to 08/18/99 3.050 to 3.200 18,000,000
8,100 Houston General Obligation
Tax-Exempt Commercial Paper..................... 08/24/99 to 09/14/99 3.150 8,100,000
10,000 San Antonio Texas Electric and Gas Series A
Tax-Exempt Commerical Paper..................... 08/20/99 3.100 10,000,000
7,000 Texas Public Finance Authority Series B
Tax-Exempt Commercial Paper..................... 08/13/99 3.050 7,000,000
67,000 Texas State Tax-Exempt Commercial Paper........... 07/23/99 to 08/23/99 2.950 67,000,000
---------------
252,621,161
---------------
UTAH--0.54%
1,200 Carbon County Pollution Control Revenue
(Pacificorp Projects)........................... A 3.450 1,200,000
6,985 Salt Lake City Airport Revenue Series A-10,
Registered D.................................... A 3.250 6,985,000
5,000 Intermountain Power Agency Utah Power Supply,
Series B-4
Tax-Exempt Commercial Paper..................... 02/09/00 3.250 5,000,000
---------------
13,185,000
---------------
VERMONT--0.27%
6,500 Vermont Educational and Health Buildings Financing
Agency Revenue (Middlebury College Project A)... A 3.100 to 3.150 6,500,000
---------------
VIRGINIA--2.05%
5,000 Fairfax County Series A Public Improvement........ 06/01/00 5.500 5,102,761
20,000 Loudoun County Industrial Development Authority
Residential Care Facility Revenue Refunding
(Falcons Landing Project)....................... A 3.400 20,000,000
4,000 Chesapeake Industrial Development Authority
(Virginia Electric Power) Tax-Exempt Commercial
Paper........................................... 08/12/99 3.200 4,000,000
20,700 Louisa Industrial Development Authority
(Virginia Electric Power) Tax-Exempt Commercial
Paper........................................... 07/19/99 to 02/14/00 3.150 to 3.400 20,700,000
---------------
49,802,761
---------------
WASHINGTON--1.68%
5,500 Port of Seattle Industrial Development Corporation
(Alaska Airlines Incorporated).................. A 3.450 5,500,000
14,800 Snohomish Public Utility District................. A 3.300 14,800,000
12,800 Washington State Series Vr-96B.................... A 3.400 12,800,000
7,600 Seattle Municipal Light and Power Revenue
Tax-Exempt Commercial Paper..................... A 3.300 7,600,000
---------------
40,700,000
---------------
</TABLE>
20
<PAGE>
PAINEWEBBER RMA TAX-FREE FUND, INC.
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(000) MATURITY DATES INTEREST RATES VALUE
- ------------ -------------------- ---------------- ---------------
<C> <S> <C> <C> <C>
WISCONSIN--1.09%
$ 6,100 City of Oak Creek Pollution Control Revenue
(Wisconsin Electric Power Company).............. A 3.450% $ 6,100,000
3,000 Kenosha Unified School District Number 1
Tax and Revenue Anticipation Promissory Notes... 09/28/99 3.380 3,000,000
4,000 Stoughton Area School District Tax and Revenue
Anticipation Promissory Notes................... 10/29/99 3.250 4,000,000
5,315 Wisconsin State Certificates Participation Master
Lease Series A.................................. 03/01/00 3.500 5,321,751
8,101 Wisconsin State Tax-Exempt Commercial Paper....... 09/10/99 to 09/13/99 3.150 to 3.200 8,101,000
---------------
26,522,751
---------------
WYOMING--0.40%
9,700 Converse County Pollution Control Revenue
(Pacific Corporation) Tax-Exempt Commercial
Paper........................................... 09/01/99 to 09/22/99 3.150 to 3.350 9,700,000
---------------
Total Investments (cost--$2,439,233,934 which approximates cost
for federal income tax purposes)--100.59%....................... 2,439,233,934
Liabilities in excess of other assets--(0.59)%.................... (14,296,021)
---------------
Net Assets (applicable to 2,425,949,988 shares of common stock
outstanding at $1.00 per share)--100.00%........................ $ 2,424,937,913
---------------
---------------
</TABLE>
- -----------------
A -- Variable rate demand notes and variable rate certificates of participation
are payable on demand. The interest rates shown are the current rates as of June
30, 1999 and reset periodically.
Weighted average maturity--41 days
See accompanying notes to financial statements
21
<PAGE>
PAINEWEBBER RMA CALIFORNIA MUNICIPAL MONEY FUND
STATEMENT OF NET ASSETS JUNE 30, 1999
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(000) MATURITY DATES INTEREST RATES VALUE
- --------- -------------------- ---------------- --------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES--88.06%
$ 2,000 California Educational Facilities Authority
(Stanford University-Series L)....................... A 3.050% $ 2,000,000
3,950 California Educational Facilities Authority
(Stanford University-Series L-3)..................... A 3.050 3,950,000
2,300 California Educational Facilities Authority
(Stanford University Series L-4)..................... A 3.050 2,300,000
60 California Health Facilities Financing Authority
(St. Joseph's Health System-Series B)................ A 2.900 60,000
8,800 California Health Facilities Financing Authority
(Adventist Health System-Series A)................... A 3.400 8,800,000
5,100 California Health Facilities Financing Authority
(Adventist Health System-Series B)................... A 3.450 5,100,000
7,100 California Health Facilities Financing Authority
(Scripps Health-Series B)............................ A 3.000 7,100,000
10,585 California Health Facilities Financing Authority
(Sutter Hospital Trust Receipt)...................... A 3.300 10,585,000
500 California Pollution Control Financing Authority
(Pacific Gas & Electric Corporation-Series A)........ A 3.100 500,000
300 California Pollution Control Financing Authority
Pollution Control Revenue............................ A 3.000 300,000
16,000 California School Facilities Financing Corporation
Certificates of Participation
(Capital Improvement Financing Projects-Series A).... A 3.150 16,000,000
1,800 California School Facilities Financing Corporation
Certificates of Participation
(Capital Improvement Financing Projects-Series B).... A 3.150 1,800,000
1,000 California State General Obligation.................... 09/01/99 5.400 1,004,086
1,885 California State Public Works Board
(California State University-Series C)............... 10/01/99 5.000 1,893,818
1,540 California State University and Colleges Revenue....... 11/01/99 8.250 1,566,874
8,000 California Statewide Communities Development Authority
Certificates of Participation
(St Joseph Health System Group)...................... A 3.100 8,000,000
5,000 California Statewide Communities Development Authority
Tax and Revenue Anticipation Notes (Series A-1)...... 06/30/00 4.000 5,039,600
10,900 California Transit Financing Authority................. A 3.100 10,900,000
9,200 ABAG Finance Authority for Nonprofit Corporations
Certificates of Participation(Lucile Salter Packard
Project)............................................. A 3.150 9,200,000
6,050 Acalanes Union High School District Tax and Revenue
Anticipation Notes................................... 06/30/00 3.500 6,058,712
10,550 Alameda Contra Costa Schools Financing Authority
Certificates of Participation
(Capital Improvement Financing Project Series)....... A 3.700 10,550,000
4,000 Alameda Contra Costa Schools Financing Authority
Certificates of Participation
(Capital Improvements Financing Projects-Series A)... A 3.400 4,000,000
4,550 Alameda Contra Costa Schools Financing Authority
Certificates of Participation
(Capital Improvement Financing Projects-Series C).... A 3.400 4,550,000
</TABLE>
22
<PAGE>
PAINEWEBBER RMA CALIFORNIA MUNICIPAL MONEY FUND
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(000) MATURITY DATES INTEREST RATES VALUE
- --------- -------------------- ---------------- --------------
<C> <S> <C> <C> <C>
</TABLE>
MUNICIPAL BONDS AND NOTES--(CONTINUED)
<TABLE>
<C> <S> <C> <C> <C>
$ 5,040 Alameda Contra Costa Schools Financing Authority
Certificates of Participation
(Capital Improvement Financing Projects-Series D).... A 3.700% $ 5,040,000
1,000 Alameda County Certificates of Participation
(Refunding and Capital Projects)..................... 12/01/99 4.000 1,004,508
17,400 Anaheim Certificates of Participation
(1993 Refunding Projects)............................ A 3.250 17,400,000
6,000 Butte County Office of Education Tax and Revenue
Anticipation Notes................................... 10/15/99 4.000 6,013,661
3,000 Central Valley School Districts Financing Authority
(Series A)........................................... 02/01/00 5.650 3,044,763
4,000 Foothill/Eastern Corridor Agency Toll Road Revenue
(Series E)........................................... A 3.350 4,000,000
5,200 Golden Empire Schools Financing Authority
(Kern High School District-Series A)................. A 3.250 5,200,000
7,200 Huntington Beach Multi-Family Housing Revenue Bonds
(RiverMeadow Apartments Project-Series B)............ A 3.200 7,200,000
7,350 Irvine Improvement Bond Act 1915 Updates Assessment
District 85-7-I...................................... A 3.100 7,350,000
17,400 Irvine Public Facilities and Infrastructure Authority
(Capital Improvement Projects)....................... A 3.400 17,400,000
300 Irvine Ranch Water District
(Consolidated Refunding Series A).................... A 3.150 300,000
1,000 Irvine Ranch Water District Certificates of
Participation
(Capital Improvement Project)........................ A 3.700 1,000,000
2,000 Los Angeles Community College District
Tax and Revenue Anticipation Notes................... 07/29/99 4.250 2,000,932
2,900 Los Angeles Community Redevelopment Agency
Multi-Family Housing Revenue Bonds
(Grand Promenade Project)............................ A 3.550 2,900,000
1,795 Los Angeles County Capital Asset Leasing Corporation... 12/01/99 5.100 1,810,517
5,000 Los Angeles County Pension Obligation (Series B)....... A 3.250 5,000,000
14,100 Los Angeles County Pension Obligation (Series C)....... A 2.550 to 3.250 14,100,000
1,945 Los Angeles County Schools Regionalized Business
Services Certificates of Participation
(Local Educational Agency Pooled Capital Projects
A)................................................... 03/01/00 4.750 1,969,759
3,000 Los Angeles County Tax and Revenue Anticipation
Notes................................................ 06/30/00 4.000 3,019,680
13,400 Los Angeles Multi-Family Housing Revenue Bonds
(Museum Terrace Apartments-Series H)................. A 3.550 13,400,000
3,480 Los Angeles Unified School District Certificates
of Participation (Belmont Learning Complex-Series
A)................................................... A 3.000 3,480,000
1,000 Los Angeles Wastewater Systems Revenue (Series A)...... 02/01/00 7.000 1,043,733
13,900 M-S-R Public Power Agency San Juan Project
Revenue Bonds (Series D)............................. A 3.250 13,900,000
8,200 M-S-R Public Power Agency San Juan Project
Revenue Bonds (Series E)............................. A 3.250 8,200,000
2,000 Metropolitan Water District of Southern California
Waterworks Revenue Bonds (Series C).................. A 3.500 2,000,000
6,795 Moorpark Industrial Development Authority
(Fred Kavli and Kavlico Corporation)................. A 3.550 6,795,000
1,000 Murrieta Valley Unified School District................ 09/01/99 7.500 1,007,189
12,200 Oakland Joint Powers Financing Authority (Series
A-1)................................................. A 3.400 12,200,000
</TABLE>
23
<PAGE>
PAINEWEBBER RMA CALIFORNIA MUNICIPAL MONEY FUND
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(000) MATURITY DATES INTEREST RATES VALUE
- --------- -------------------- ---------------- --------------
<C> <S> <C> <C> <C>
</TABLE>
MUNICIPAL BONDS AND NOTES--(CONTINUED)
<TABLE>
<C> <S> <C> <C> <C>
$ 5,000 Oakland Unified School District Alameda County
Tax and Revenue Anticipation Notes................... 11/09/99 3.250% $ 5,007,846
4,000 Orange County Apartment Development Revenue Bonds
(Monarch Bay Apartments Project-Issue-T)............. A 3.550 4,000,000
6,040 Orange County Apartment Development Revenue Bonds
(Niguel Summit 2-Series B)........................... A 3.400 6,040,000
6,625 Orange County Apartment Development Revenue Bonds
(Niguel Village-Issue AA)............................ A 3.150 6,625,000
1,700 Orange County Housing Authority Multi-Family
Apartment Development Revenue Bonds
(Lantern Pines Project-Series CC).................... A 3.150 1,700,000
1,320 Pasadena Unified School District (Series A)............ 05/01/00 4.750 1,337,195
2,000 Petaluma City Joint Union High School District
Tax and Revenue Anticipation Notes................... 06/30/00 3.500 2,004,820
1,540 Petaluma City School District Tax and Revenue
Anticipation Notes................................... 06/30/00 3.500 1,543,711
2,400 Pomona Redevelopment Agency Multi-Family
Housing Revenue Bonds
(Park and Plaza Apartments-Series A)................. A 3.600 2,400,000
1,110 Porterville Tax and Revenue Anticipation Notes......... 06/30/00 3.750 1,114,607
2,750 Rancho Cucamonga Redevelopment Agency
Tax Allocation Bond.................................. 09/01/99 7.125 2,821,891
9,985 Redlands Certificates of Participation
(Water Treatment Facilities Project)................. A 3.300 9,985,000
5,400 Redondo Beach Redevelopment Agency
Multi-Family Revenue Bonds
(McCandless Senior Housing Project A)................ A 3.400 5,400,000
5,000 Riverside County Tax and Revenue Anticipation Notes.... 09/30/99 4.500 5,014,401
16,390 Sacramento County Certificates of Participation
(Administration Center and Courthouse Project)....... A 3.350 16,390,000
100 San Bernardino County Certificates of Participation
(County Center Refinancing Project).................. A 3.300 100,000
6,000 San Bernardino County Certificates of Participation
(Medical Center Financing Project)................... A 3.300 6,000,000
2,500 San Bernardino County Tax and Revenue
Anticipation Notes................................... 09/30/99 4.500 2,509,400
1,640 San Diego Unified School District Tax and Revenue
Anticipation Notes (Series A)........................ 10/01/99 4.500 1,646,130
2,500 San Francisco City and County Multi-Family Housing
Revenue Bonds (Winterland Project-85-C).............. A 3.350 2,500,000
1,970 San Francisco City and County Redevelopment
Agency Multi-Family Housing Revenue Bonds
(Rincon Center-Project B)............................ A 3.350 1,970,000
2,100 San Francisco City and County Redevelopment
Financing Authority (Yerba Buena Garden)............. A 3.250 2,100,000
4,000 San Francisco City and County Unified School District
Tax and Revenue Anticipation Notes................... 09/22/99 4.500 4,009,735
6,000 San Jose Redevelopment Agency Revenue Bonds
(Merged Area Redevelopment Project-Series A)......... A 3.100 6,000,000
</TABLE>
24
<PAGE>
PAINEWEBBER RMA CALIFORNIA MUNICIPAL MONEY FUND
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(000) MATURITY DATES INTEREST RATES VALUE
- --------- -------------------- ---------------- --------------
<C> <S> <C> <C> <C>
</TABLE>
MUNICIPAL BONDS AND NOTES--(CONCLUDED)
<TABLE>
<C> <S> <C> <C> <C>
$ 4,700 San Jose Redevelopment Agency Revenue Bonds
(Merged Area Redevelopment Project-Series B)......... A 3.100% $ 4,700,000
1,600 San Leandro Multi-Family Revenue
(Haas Avenue Apartments-Issue B)..................... A 3.550 1,600,000
4,800 San Luis Coastal Unified School District Project
Notes................................................ 08/25/99 4.000 4,803,633
2,450 San Luis Coastal Unified School District Tax and
Revenue Anticipation Notes........................... 08/25/99 4.000 2,451,855
1,720 Santa Ana Housing Authority Multi-Family Housing
Revenue Bonds (Harbor Pointe Apartments-Series A).... A 3.550 1,720,000
2,938 Santa Clara County El Camino Hospital District
Hospital Facilities Authority
(Aces Lease Valley Medical Center Project-Series
A)................................................... A 3.250 2,938,000
10,000 Santa Clara County El Camino Hospital District
Hospital Facilities Authority
(Aces Lease Valley Medical Center Project-Series
B)................................................... A 3.250 10,000,000
4,000 Santa Clara County Tax and Revenue Anticipation
Notes................................................ 10/01/99 4.500 4,014,780
19,100 Santa Clara Financing Authority
(VMC Facility Replacement Project B)................. A 3.100 19,100,000
4,120 Simi Valley Public Financing Authority................. A 3.100 4,120,000
5,000 Solano County Tax and Revenue Anticipation Notes
(Series B)........................................... 12/15/99 3.500 5,012,216
11,100 Southern Public Power Authority Project Revenue Bonds
(Palo Verde Project-Series C)........................ A 3.250 11,100,000
6,000 Southern Public Power Authority Transmission Project
Revenue Bonds (Southern Transmission)................ A 3.250 6,000,000
10,000 Ventura County Trans................................... 07/01/99 3.550 10,000,000
3,385 Visalia Public Financing Authority Revenue Bonds
(Golf Course Improvement)............................ A 3.600 3,385,000
4,000 West Basin Municipal Water District Revenue
Certificates of Participation (Series A)............. A 3.200 4,000,000
3,010 Westminster Certificates of Participation
(Civic Center Project-Series B)...................... A 3.450 3,010,000
3,500 Yucaipa Calimesa Joint Unified School District
Tax and Revenue Anticipation Notes................... 06/30/00 4.000 3,520,230
4,485 Puerto Rico Commonwealth............................... 07/01/99 5.500 4,485,000
12,000 Puerto Rico Commonwealth Tax and Revenue
Anticipation Notes (Series A)........................ 07/30/99 3.500 12,005,903
1,400 Puerto Rico Electric Power Authority (Series P)........ 07/01/99 6.400 1,400,000
--------------
Total Municipal Bonds And Notes (cost--$506,624,185)................ 506,624,185
--------------
TAX-EXEMPT COMMERCIAL PAPER--15.16%
11,000 California State General Obligation.................... 08/02/99 to 08/11/99 2.900 to 3.000 11,000,000
8,335 California Department of Water Resources............... 08/09/99 to 09/08/99 2.950 to 3.100 8,335,000
1,600 California Pollution Control Financing Authority
(Dow Chemical Company Project)....................... 08/12/99 3.150 1,600,000
3,600 Anaheim Electric Authority............................. 08/05/99 2.700 3,600,000
4,500 Los Angeles Department of Water and Power.............. 08/19/99 to 09/08/99 2.900 to 3.050 4,500,000
6,500 Modesto Irrigation District............................ 08/16/99 3.000 6,500,000
2,000 Orange County Municipal Water District................. 08/20/99 3.000 2,000,000
6,700 San Diego California Unified Port Authority (Series
B)................................................... 08/12/99 to 09/14/99 3.000 6,700,000
</TABLE>
25
<PAGE>
PAINEWEBBER RMA CALIFORNIA MUNICIPAL MONEY FUND
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(000) MATURITY DATES INTEREST RATES VALUE
- --------- -------------------- ---------------- --------------
<C> <S> <C> <C> <C>
</TABLE>
TAX-EXEMPT COMMERCIAL PAPER--(CONCLUDED)
<TABLE>
<C> <S> <C> <C> <C>
$ 8,000 San Diego Industrial Development (San Diego Electric
and Gas)............................................. 07/13/99 to 09/10/99 2.950 to 3.000% $ 8,000,000
34,943 Puerto Rico Commonwealth Government Development Bank... 07/20/99 to 10/13/99 2.900 to 3.300 34,943,000
--------------
Total Tax-Exempt Commercial Paper (cost--$87,178,000)............... 87,178,000
--------------
Total Investments (cost--$593,802,185 which approximates cost for
federal income tax purposes)--103.22%............................. 593,802,185
Liabilities in excess of other assets--(3.22)%...................... (18,506,577)
--------------
Net Assets (applicable to 575,767,300 shares of beneficial interest
at $1.00 per share)--100.00%...................................... $ 575,295,608
--------------
--------------
</TABLE>
- -----------------
A -- Variable rate demand notes are payable on demand. The interest rates shown
are the current rates as of June 30, 1999 and reset periodically.
Weighted average maturity--37 days
See accompanying notes to financial statements
26
<PAGE>
PAINEWEBBER RMA NEW YORK MUNICIPAL MONEY FUND
STATEMENT OF NET ASSETS JUNE 30, 1999
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(000) MATURITY DATES INTEREST RATES VALUE
- --------- -------------------- ----------------- -------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES--82.70%
$ 7,985 New York State.................................... 09/15/99 to 11/15/99 4.250 to 7.800% $ 8,077,172
9,340 New York State Certificates of Participation...... 08/01/99 to 09/01/99 4.000 to 6.250 9,348,906
2,900 New York State Dormitory Authority (City
University 3rd General Resources Series 2)...... 07/01/99 4.000 2,900,000
700 New York State Dormitory Authority (Cornell
University)..................................... A 3.400 700,000
1,800 New York State Dormitory Authority (Rockefeller
University Series A)............................ A 3.300 1,800,000
2,580 New York State Dormitory Authority Revenues
(Hospital Insured Mortgage Series A)............ 02/15/00 4.750 2,607,510
9,932 New York State Dormitory Authority Revenues
(Metropolitan Museum of Art).................... A 3.250 9,932,000
7,530 New York State Dormitory Authority Revenues (State
University Educational Series B)................ 05/15/00 7.250 to 7.375 7,945,009
7,000 New York State Energy Research & Development
Authority (Central Hudson Gas & Electric)....... A 3.500 7,000,000
1,600 New York State Energy Research & Development
Authority (Niagara Mohawk)...................... A 3.450 1,600,000
17,200 New York State Energy Research & Development
Authority Pollution Control Revenue (Orange and
Rockland Project A)............................. A 3.100 17,200,000
13,900 New York State Energy Research & Development
Authority Pollution Control Revenue (Rochester
Gas & Electricity).............................. A 3.100 13,900,000
8,190 New York State Energy Research and Development
Authority Gas Facilities Revenue (Brooklyn Union
Gas Company Series A1).......................... A 3.350 8,190,000
3,640 New York State Housing Finance Agency (Hospital
Special Surgery Staff).......................... A 3.200 3,640,000
3,900 New York State Housing Finance Agency (Mount Sinai
Medical Center Project)......................... A 3.500 3,900,000
13,800 New York State Housing Finance Agency (Normandie
Court I Project)................................ A 3.200 13,800,000
9,500 New York State Housing Finance Agency Service
Contract Obligation Revenue Series A............ A 3.350 9,500,000
17,990 New York State Local Government Assistance
Corporation..................................... A 3.000 to 3.600 17,990,000
14,555 New York State Medical Facilities Financing Agency
(Pooled Equipment Loan Program)................. A 3.150 14,555,000
4,000 Port Authority of New York and New Jersey......... A 3.600 4,000,000
2,290 Albany Industrial Development Agency (Vulcan
Investors)...................................... A 3.850 2,290,000
11,300 Babylon New York Industrial Development Agency
Resources (Ogden Martin Project)................ A 3.100 11,300,000
1,900 Chemung County Industrial Development Agency
(Arnot Ogden Medical Center).................... A 3.350 1,900,000
4,850 Erie County Water Authority....................... A 3.100 4,850,000
1,520 Great Neck North Water Authority Systems.......... A 3.350 1,520,000
2,150 Islip New York Bond Anticipation Notes............ 07/22/99 4.000 2,150,417
100 Nassau County New York Industrial Development
Agency Civic Facility (Winthrop University
Hospital Association)........................... A 3.400 100,000
12,160 New York City..................................... A 3.350 to 4.000 12,160,000
1,000 New York City Series B............................ 06/01/00 8.000 1,042,252
13,655 New York City Health and Hospital Corporation
Revenue (Health Systems)........................ A 3.350 13,655,000
4,450 New York City Housing Development Corp. (Columbus
Gardens)........................................ A 3.250 4,450,000
1,500 New York City Housing Development Corp. (James
Tower Project).................................. A 3.150 1,500,000
2,550 New York City Housing Development Corp. (Upper
Fifth Avenue Project)........................... A 3.500 2,550,000
2,900 New York City Industrial Development Agency
(Calhoun School)................................ A 3.450 2,900,000
</TABLE>
27
<PAGE>
PAINEWEBBER RMA NEW YORK MUNICIPAL MONEY FUND
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(000) MATURITY DATES INTEREST RATES VALUE
- --------- -------------------- ----------------- -------------
<C> <S> <C> <C> <C>
</TABLE>
MUNICIPAL BONDS AND NOTES--(CONCLUDED)
<TABLE>
<C> <S> <C> <C> <C>
$ 2,400 New York City Municipal Water Finance Authority... A 3.700% $ 2,400,000
16,300 New York City Transitional Finance Authority
Future Tax Secured Series A&C................... A 3.350 to 3.500 16,300,000
1,050 New York City Transitional Finance Authority
Future Tax Secured Series B..................... 11/15/99 4.000 1,053,654
5,840 New York City Trust for Cultural Resources
(American Museum of Natural History)............ A 3.100 5,840,000
3,400 New York City Trust for Cultural Resources
(Carnegie Hall)................................. A 3.450 3,400,000
300 New York City Trust for Cultural Resources
(Soloman R Guggenheim).......................... A 3.350 300,000
4,100 Niagara Falls Toll Bridge Commission.............. A 3.100 4,100,000
1,395 North Hempstead................................... 09/01/99 4.500 1,398,469
5,970 Oyster Bay Revenue Anticipation Notes Series A.... 12/01/99 to 01/28/00 3.500 to 4.400 5,994,702
3,500 Pelham Union Free School District Tax Anticipation
Notes........................................... 11/16/99 3.750 3,503,780
4,400 Riverhead Central School District Tax Anticipation
Notes........................................... 06/23/00 3.750 4,406,364
5,600 Rotterdam Industrial Development Agency (Rotterdam
Industrial Park Project)........................ A 3.600 5,600,000
1,470 Seneca County Industrial Development Agency Civic
Facility (New York Chiropractic College)........ A 3.700 1,470,000
4,500 Shenendehowa Center School District Revenue
Anticipation Notes.............................. 06/30/00 4.100 4,505,760
16,165 Suffolk County Water Authority Bond Anticipation
Notes........................................... A 3.200 16,165,000
8,987 Yonkers Industrial Development Agency (Consumers
Union Facility)................................. A 3.400 8,987,000
2,000 Puerto Rico Commonwealth Tax & Revenue
Anticipation Notes Series A..................... 07/30/99 3.500 2,000,442
-------------
Total Municipal Bonds And Notes (cost--$308,378,437)........... 308,378,437
-------------
TAX-EXEMPT COMMERCIAL PAPER--19.47%
4,000 New York State.................................... 08/18/99 to 09/07/99 3.100 to 3.250 4,000,000
2,000 New York State Environment Series 1997 A.......... 07/28/99 3.150 2,000,000
12,100 New York State Power Authority.................... 07/08/99 to 09/08/99 3.000 to 3.100 12,100,000
11,500 Long Island Power Authority Series 4.............. 08/13/99 to 08/23/99 3.100 to 3.200 11,500,000
20,200 Metropolitan Transportation Authority............. 07/23/99 to 10/15/99 2.950 to 3.200 20,200,000
8,300 New York City..................................... 08/09/99 to 08/19/99 2.800 to 3.200 8,300,000
12,000 New York City Municipal Water Finance Authority... 07/20/99 to 09/20/99 3.200 to 3.450 12,000,000
2,500 Puerto Rico Commonwealth Government Development
Bank............................................ 07/29/99 3.150 2,500,000
-------------
Total Tax-Exempt Commercial Paper (cost--$72,600,000).......... 72,600,000
-------------
Total Investments (cost--$380,978,437 which approximates cost
for federal income tax purposes)--102.17%.................... 380,978,437
Liabilities in excess of other assets--(2.17)%................. (8,098,715)
-------------
Net Assets (applicable to 373,084,159 shares of beneficial
interest at $1.00 per share)--100.00%........................ $ 372,879,722
-------------
-------------
</TABLE>
- -----------------
A -- Variable Rate Demand Notes are payable on demand. The interest rates shown
are the current rates as of June 30, 1999 and reset periodically.
Weighted average maturity--39 days.
See accompanying notes to financial statements
28
<PAGE>
PAINEWEBBER RMA NEW JERSEY MUNICIPAL MONEY FUND
STATEMENT OF NET ASSETS JUNE 30, 1999
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(000) MATURITY DATES INTEREST RATES VALUE
- --------- -------------------- ---------------- -------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES--85.56%
$ 1,400 New Jersey State.................................. 09/15/99 to 04/01/00 6.250 to 7.000% $ 1,416,413
2,500 New Jersey State Turnpike Authority............... A 3.100 2,500,000
1,435 New Jersey State Turnpike Authority Turnpike
Revenue Series A................................ 01/01/00 5.600 1,449,379
450 New Jersey Economic Development Authority......... A 3.650 450,000
1,175 New Jersey Economic Development Authority
(Brach/Jersey Avenue Project)................... A 3.250 1,175,000
1,815 New Jersey Economic Development Authority (Church
and Dwight Company Project)..................... A 3.400 1,815,000
2,000 New Jersey Economic Development Authority (Curtiss
Wright Flight).................................. A 3.350 2,000,000
1,200 New Jersey Economic Development Authority
(Natuaral Gas).................................. A 3.300 1,200,000
200 New Jersey Economic Development Authority (W.Y.
Plastic Products Corporation Project)........... A 3.200 200,000
405 New Jersey Economic Development Authority Economic
Development Revenue Kenwood USA Corporation
Project......................................... A 3.500 405,000
1,145 New Jersey Economic Development Authority Economic
Development Revenue Nash Group 1985 Project..... A 3.350 1,145,000
1,650 New Jersey Economic Development Authority Economic
Development Revenue Danic Urban Renewal......... A 3.150 1,650,000
200 New Jersey Economic Development Authority Natural
Gas Facilities Revenue Refunding New Jersey
Natural Gas Company Project Series A............ A 3.100 200,000
1,000 New Jersey Economic Development Authority Natural
Gas Facilities Revenue Refunding New Jersey
Natural Gas Company Project Series B............ A 3.150 1,000,000
2,700 New Jersey Economic Development Authority
Pollution Control Revenue Refunding Public
Service Electric And Gas Company A.............. A 3.050 2,700,000
885 New Jersey Economic Development Authority Revenue
County Series B................................. A 3.350 885,000
815 New Jersey Economic Development Authority Revenue
County Series D-1............................... A 3.400 815,000
900 New Jersey Economic Development Authority Revenue
(Foreign Trade Zone Project).................... A 3.250 900,000
100 New Jersey Economic Development Authority Revenue
(Hoffman Louisiana Roche Incorporated
Project)........................................ A 3.650 100,000
2,000 New Jersey Economic Development Authority Revenue
Job Haines Home Project......................... A 3.250 2,000,000
350 New Jersey Economic Development Authority Revenue
(St. James Prep Society Service Project)........ A 3.500 350,000
900 New Jersey Economic Development Authority Revenue
Refunding Stolthaven Project Series A........... A 3.600 900,000
1,000 New Jersey Economic Development Authority Thermal
Energy Facilities Revenue (Thermal Energy
Limited Partnership)............................ A 3.300 1,000,000
1,900 New Jersey Economic Development Authority Water
Facilities Revenue (Elizabethtown Water Company
Project A)...................................... A 3.300 1,900,000
1,000 New Jersey Economic Development Authority Water
Facilities Revenue (Thermal Energy Limited
Partnership).................................... A 3.300 1,000,000
500 New Jersey Educational Facilities Authority
College Of New Jersey Series A.................. A 2.850 500,000
600 Port Authority of New York and New Jersey......... A 3.650 600,000
900 Port Authority of New York and New Jersey......... A 3.650 900,000
1,150 Bergen County..................................... 11/15/99 4.000 1,154,857
240 Elizabeth New Jersey Improvement.................. 12/01/99 7.900 244,725
800 Essex County Bond Anticipation Notes.............. 12/15/99 3.500 801,471
1,400 Essex County Improvement Authority Revenue........ A 3.100 1,400,000
</TABLE>
29
<PAGE>
PAINEWEBBER RMA NEW JERSEY MUNICIPAL MONEY FUND
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(000) MATURITY DATES INTEREST RATES VALUE
- --------- -------------------- ---------------- -------------
<C> <S> <C> <C> <C>
</TABLE>
MUNICIPAL BONDS AND NOTES--(CONCLUDED)
<TABLE>
<C> <S> <C> <C> <C>
$ 500 Essex County New Jersey Refunding Series A........ 07/15/99 4.500% $ 500,216
170 Freehold Borough New Jersey....................... 08/01/99 4.550 170,109
1,000 Jefferson Township New Jersey Bond Anticipation
Notes........................................... 02/17/00 3.250 1,001,595
505 Lakewood Township General Improvement............. 01/15/00 4.625 508,382
275 Lodi New Jersey................................... 04/15/00 3.300 277,115
225 Medford Township New Jersey Refunding............. 09/01/99 4.200 225,297
1,000 Mercer County Improvement Authority Revenue
(Atlantic Foundation & Johnson)................. A 3.000 1,000,000
450 Middlesex County New Jersey....................... A 4.375 450,121
1,000 Monmouth County Improvement Authority Revenue
(Pooled Government Loan Program)................ A 3.200 1,000,000
1,900 Montclair Township New Jersey..................... 01/21/00 3.500 1,905,150
350 Morris County General Improvement................. 08/15/99 4.500 350,442
1,000 Newark Board of Education New Jersey.............. 12/15/99 5.875 1,012,764
700 Ocean County New Jersey........................... 12/01/99 4.250 703,383
1,000 Ocean County New Jersey........................... 04/15/00 6.375 1,024,101
1,065 Patterson New Jersey General Improvement.......... 01/15/00 4.550 1,073,144
500 Princeton Township New Jersey..................... 07/01/00 4.500 504,760
200 Pennsauken Township New Jersey.................... 07/15/99 4.375 200,054
290 Roxbury Township New Jersey Refunding............. 08/01/99 4.600 290,215
400 Salem County Pollution Control Financing (Atlantic
City Electric B)................................ A 3.300 400,000
500 Salem County Pollution Control Financing (Electric
And Gas)........................................ A 3.600 500,000
1,560 Somerset County New Jersey........................ 12/01/99 4.375 1,568,792
1,000 South Jersey Transportation Authority New Jersey
Subordinated Bond Anticipation Notes............ 11/03/99 2.950 1,000,000
299 Trenton New Jersey................................ 09/15/99 4.000 299,363
850 Trenton New Jersey................................ 09/15/99 4.375 851,680
600 Union County Pollution Control Finance Authority
(Exxon Corporation)............................. A 3.150 600,000
1,000 Woodbridge Township New Jersey Bond Anticipation
Notes........................................... 07/30/99 4.000 1,000,314
700 Puerto Rico Commonwealth Tax & Revenue
Anticipation Notes Series A..................... 07/30/99 3.500 700,382
-------------
Total Municipal Bonds and Notes (cost--$53,874,224)............ 53,874,224
-------------
TAX-EXEMPT COMMERCIAL PAPER--14.30%
3,200 New Jersey Economic Development Authority......... 07/12/99 to 08/09/99 2.900 to 3.100 3,200,000
1,000 New Jersey Educational Facilities Authority Series
A............................................... 08/05/99 2.900 1,000,000
300 Port Authority of New York and New Jersey......... 10/20/99 3.250 300,000
4,508 Puerto Rico Commonwealth Government Development
Bank............................................ 07/13/99 to 10/07/99 3.100 to 3.300 4,508,000
-------------
Total Tax-Exempt Commercial Paper (cost--$9,008,000)........... 9,008,000
-------------
Total Investments (cost--$62,882,224 which approximates cost
for federal income tax purposes)--99.86%..................... 62,882,224
Other assets in excess of liabilities--0.14%.................. 89,831
-------------
Net Assets (applicaple to 62,976,792 shares of beneficial
interest at $1.00 per share)--100.00%........................ $ 62,972,055
-------------
-------------
</TABLE>
- ---------------
A -- Variable Rate Demand Notes are payable on demand. The interest rates are
the current rates as of June 30, 1999 and reset periodically.
Weighted average maturity--58 days
See accompanying notes to financial statements
30
<PAGE>
PAINEWEBBER
STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
FOR THE YEAR ENDED JUNE 30, 1999
-----------------------------------------------------------------------------------
MONEY MARKET U.S. GOVERNMENT RMA RMA RMA RMA
PORTFOLIO PORTFOLIO TAX-FREE CALIFORNIA NEW YORK NEW JERSEY
------------- --------------- ------------ ----------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENT INCOME:
Interest..................................... $ 665,838,912 $ 69,055,336 $ 81,808,745 $18,221,709 $12,837,315 $1,995,705
------------- --------------- ------------ ----------- ----------- ----------
EXPENSES:
Investment advisory and administration....... 63,667,860 5,807,770 10,937,156 2,901,051 1,999,790 325,942
Transfer agency and related services fees.... 7,688,303 399,907 464,671 162,299 42,530 40,505
Custody and accounting....................... 1,279,473 140,827 170,862 81,842 23,361 19,019
Federal and state registration............... 890,286 77,053 80,617 38,297 27,560 23,614
Reports and notices to shareholders.......... 781,796 52,792 79,938 54,960 16,845 15,040
Legal and audit.............................. 289,910 82,047 90,419 70,922 40,875 40,330
Insurance.................................... 270,822 32,017 34,500 14,444 4,168 3,771
Director's/Trustees' fees.................... 10,500 10,500 10,500 10,500 10,500 10,500
Distribution fees............................ -- 1,745,753 3,172,622 773,026 516,986 78,224
Other expenses............................... 68,931 6,726 2,860 15,134 996 20,615
------------- --------------- ------------ ----------- ----------- ----------
74,947,881 8,355,392 15,044,145 4,122,475 2,683,611 577,560
------------- --------------- ------------ ----------- ----------- ----------
Net investment income........................ 590,891,031 60,699,944 66,764,600 14,099,234 10,153,704 1,418,145
NET REALIZED GAINS (LOSSES) FROM INVESTMENT
TRANSACTIONS............................... 669,851 2,334 47,717 1,210 11,853 (2)
------------- --------------- ------------ ----------- ----------- ----------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS................................. $ 591,560,882 $ 60,702,278 $ 66,812,317 $14,100,444 $10,165,557 $1,418,143
------------- --------------- ------------ ----------- ----------- ----------
------------- --------------- ------------ ----------- ----------- ----------
</TABLE>
See accompanying notes to financial statements
31
<PAGE>
PAINEWEBBER
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE YEARS ENDED
JUNE 30,
--------------------------------------
1999 1998
----------------- ------------------
<S> <C> <C>
PAINEWEBBER RMA MONEY MARKET PORTFOLIO
FROM OPERATIONS:
Net investment income....................................... $ 590,891,031 $ 517,926,380
Net realized gains (losses) from investment transactions.... 669,851 (249,926)
----------------- ------------------
Net increase in net assets resulting from operations........ 591,560,882 517,676,454
----------------- ------------------
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income....................................... (590,891,031) (517,926,380)
----------------- ------------------
Net increase in net assets from capital share
transactions.............................................. 2,310,244,447 2,462,420,689
----------------- ------------------
Net increase in net assets.................................. 2,310,914,298 2,462,170,763
NET ASSETS:
Beginning of year........................................... 11,135,225,816 8,673,055,053
----------------- ------------------
End of year................................................. $ 13,446,140,114 $ 11,135,225,816
----------------- ------------------
----------------- ------------------
PAINEWEBBER RMA U.S. GOVERNMENT PORTFOLIO
FROM OPERATIONS:
Net investment income....................................... $ 60,699,944 $ 57,988,087
Net realized gains from investment transactions............. 2,334 30,199
----------------- ------------------
Net increase in net assets resulting from operations........ 60,702,278 58,018,286
----------------- ------------------
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income....................................... (60,699,944) (57,988,087)
----------------- ------------------
Net increase in net assets from capital share
transactions.............................................. 175,015,861 95,678,845
----------------- ------------------
Net increase in net assets.................................. 175,018,195 95,709,044
NET ASSETS:
Beginning of year........................................... 1,179,575,474 1,083,866,430
----------------- ------------------
End of year................................................. $ 1,354,593,669 $ 1,179,575,474
----------------- ------------------
----------------- ------------------
PAINEWEBBER RMA TAX-FREE FUND, INC.
FROM OPERATIONS:
Net investment income....................................... $ 66,764,600 $ 70,544,816
Net realized gains from investment transactions............. 47,717 83,532
----------------- ------------------
Net increase in net assets resulting from operations........ 66,812,317 70,628,348
----------------- ------------------
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income....................................... (66,764,600) (70,544,816)
----------------- ------------------
Net increase in net assets from capital share
transactions.............................................. 152,921,293 205,965,855
----------------- ------------------
Net increase in net assets.................................. 152,969,010 206,049,387
NET ASSETS:
Beginning of year........................................... 2,271,968,903 2,065,919,516
----------------- ------------------
End of year................................................. $ 2,424,937,913 $ 2,271,968,903
----------------- ------------------
----------------- ------------------
</TABLE>
See accompanying notes to financial statements
32
<PAGE>
PAINEWEBBER
STATEMENTS OF CHANGES IN NET ASSETS (CONCLUDED)
<TABLE>
<CAPTION>
FOR THE YEARS ENDED
JUNE 30,
--------------------------------------
1999 1998
----------------- ------------------
<S> <C> <C>
PAINEWEBBER RMA CALIFORNIA MUNICIPAL MONEY FUND
FROM OPERATIONS:
Net investment income....................................... $ 14,099,234 $ 16,004,965
Net realized gains from investment transactions............. 1,210 22,739
----------------- ------------------
Net increase in net assets resulting from operations........ 14,100,444 16,027,704
----------------- ------------------
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income....................................... (14,099,234) (16,004,965)
----------------- ------------------
Net increase in net assets from beneficial interest
transactions.............................................. 8,337,126 74,019,188
----------------- ------------------
Net increase in net assets.................................. 8,338,336 74,041,927
NET ASSETS:
Beginning of year........................................... 566,957,272 492,915,345
----------------- ------------------
End of year................................................. $ 575,295,608 $ 566,957,272
----------------- ------------------
----------------- ------------------
PAINEWEBBER RMA NEW YORK MUNICIPAL MONEY FUND
FROM OPERATIONS:
Net investment income....................................... $ 10,153,704 $ 9,918,367
Net realized gains from investment transactions............. 11,853 6,536
----------------- ------------------
Net increase in net assets resulting from operations........ 10,165,557 9,924,903
----------------- ------------------
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income....................................... (10,153,704) (9,918,367)
----------------- ------------------
Net increase in net assets from beneficial interest
transactions.............................................. 33,477,063 65,046,474
----------------- ------------------
Net increase in net assets.................................. 33,488,916 65,053,010
NET ASSETS:
Beginning of year........................................... 339,390,806 274,337,796
----------------- ------------------
End of year................................................. $ 372,879,722 $ 339,390,806
----------------- ------------------
----------------- ------------------
PAINEWEBBER RMA NEW JERSEY MUNICIPAL MONEY FUND
FROM OPERATIONS:
Net investment income....................................... $ 1,418,145 $ 1,555,392
Net realized losses from investment transactions............ (2) (111)
----------------- ------------------
Net increase in net assets resulting from operations........ 1,418,143 1,555,281
----------------- ------------------
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income....................................... (1,418,145) (1,555,392)
----------------- ------------------
Net increase (decrease) in net assets from beneficial
interest transactions..................................... 14,692,667 (4,044,079)
----------------- ------------------
Net increase (decrease) in net assets....................... 14,692,665 (4,044,190)
NET ASSETS:
Beginning of year........................................... 48,279,390 52,323,580
----------------- ------------------
End of year................................................. $ 62,972,055 $ 48,279,390
----------------- ------------------
----------------- ------------------
</TABLE>
See accompanying notes to financial statements
33
<PAGE>
NOTES TO FINANCIAL STATEMENTS
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
PaineWebber RMA Money Fund, Inc. (the "Corporation") and PaineWebber RMA
Tax-Free Fund, Inc. ("RMA Tax-Free") were organized under the laws of Maryland
on July 2, 1982 and are registered with the Securities and Exchange Commission
under the Investment Company Act of 1940, as amended, as open-end management
investment companies. RMA Tax-Free is a diversified mutual fund and the
Corporation is a series mutual fund with three portfolios, each of which are
diversified series: PaineWebber RMA Money Market Portfolio ("Money Market
Portfolio"), PaineWebber RMA U.S. Government Portfolio ("U.S. Government
Portfolio") and PaineWebber Retirement Money Fund. The financial statements of
PaineWebber Retirement Money Fund are not included herein.
PaineWebber Managed Municipal Trust ("Managed Municipal Trust") and
PaineWebber Municipal Money Market Series ("Municipal Money Market Series") were
organized under Massachusetts law by Declarations of Trust dated November 21,
1986 and September 14, 1990, respectively, and are registered with the
Securities and Exchange Commission under the Investment Company Act of 1940, as
amended, as open-end management investment companies. Managed Municipal Trust
currently offers two non-diversified series of shares: PaineWebber RMA
California Municipal Money Fund ("RMA California") and PaineWebber RMA New York
Municipal Money Fund ("RMA New York"). Municipal Money Market Series currently
offers one non-diversified series of shares: PaineWebber RMA New Jersey
Municipal Money Fund ("RMA New Jersey", and when referred together with Money
Market Portfolio, U.S. Government Portfolio, RMA Tax-Free, RMA California and
RMA New York collectively, the "Funds").
The preparation of financial statements in accordance with generally accepted
accounting principles requires the Funds' management to make estimates and
assumptions that affect the reported amounts and disclosures in the financial
statements. Actual results could differ from those estimates. The following is a
summary of significant accounting policies:
VALUATION AND ACCOUNTING FOR INVESTMENTS AND INVESTMENT INCOME--Investments
are valued at amortized cost which approximates market value. Investment
transactions are recorded on the trade date. Realized gains and losses from
investment transactions are calculated using the identified cost method.
Interest income is recorded on the accrual basis. Premiums are amortized and
discounts are accreted as adjustments to interest income and the identified cost
of investments.
REPURCHASE AGREEMENTS--The Money Market Portfolio's and U.S. Government
Portfolio's custodian takes possession of the collateral pledged for investments
in repurchase agreements. The underlying collateral is valued daily on a
mark-to-market basis to ensure that the value, including accrued interest, is at
least equal to the repurchase price. In the event of default of the obligation
to repurchase, each Fund has the right to liquidate the collateral and apply the
proceeds in satisfaction of the obligation. Under certain circumstances, in the
event of default or bankruptcy by the other party to the agreement, realization
and/or retention of the collateral may be subject to legal proceedings.
DIVIDENDS AND DISTRIBUTIONS--Dividends and distributions to shareholders are
recorded on the ex-dividend date. The amount of dividends and distributions is
determined in accordance with federal income tax regulations, which may differ
from generally accepted accounting principles. These "book/tax" differences are
either considered temporary or permanent in nature. To the extent these
differences are permanent in nature, such amounts are reclassified within the
capital accounts based on their federal tax-basis treatment; temporary
differences do not require reclassification.
34
<PAGE>
NOTES TO FINANCIAL STATEMENTS
CONCENTRATION OF RISK
The ability of the issuers of the debt securities held by the Funds to meet
their obligations may be affected by economic developments, including those
particular to a specific industry or region.
Additionally, RMA California, RMA New York and RMA New Jersey follow an
investment policy of investing primarily in municipal obligations of one state.
Economic changes affecting each state and certain of their public bodies and
municipalities may affect the ability of issuers within each state to pay
interest on, or repay principal of, municipal obligations held by each of those
Funds.
INVESTMENT ADVISER AND ADMINISTRATOR
Each Fund has entered into a board approved Investment Advisory and
Administration Contract ("Advisory Contract") with PaineWebber Incorporated
("PaineWebber"), under which PaineWebber serves as investment adviser and
administrator. In accordance with the Advisory Contract, each Fund pays
PaineWebber an investment advisory and administration fee, which is accrued
daily and paid monthly, in accordance with the following schedule:
<TABLE>
<CAPTION>
ANNUAL
AVERAGE DAILY NET ASSETS RATE
- ------------------------------------------------------------------------ ------
<S> <C>
MONEY MARKET PORTFOLIO AND RMA NEW JERSEY:
All..................................................................... 0.50%
U.S. GOVERNMENT PORTFOLIO, RMA CALIFORNIA AND RMA NEW YORK:
Up to $300 million...................................................... 0.50
In excess of $300 million up to $750 million............................ 0.44
Over $750 million....................................................... 0.36
RMA TAX-FREE:
Up to $1.0 billion...................................................... 0.50
In excess of $1.0 billion up to $1.5 billion............................ 0.44
Over $1.5 billion....................................................... 0.36
</TABLE>
At June 30, 1999, the Funds owed PaineWebber for investment advisory and
administration fees as follows:
<TABLE>
<S> <C>
Money Market Portfolio............................................. $ 5,585,901
U.S. Government Portfolio.......................................... 478,570
RMA Tax-Free....................................................... 896,716
RMA California..................................................... 242,634
RMA New York....................................................... 155,539
RMA New Jersey..................................................... 26,944
</TABLE>
Mitchell Hutchins Asset Management Inc. ("Mitchell Hutchins"), a wholly-owned
asset management subsidiary of PaineWebber, serves as sub-adviser and
sub-administrator of the Funds pursuant to a Sub-Advisory and Sub-Administration
Contract between PaineWebber and Mitchell Hutchins. In accordance with the
contract, PaineWebber (not the Funds) pays Mitchell Hutchins a fee, accrued
daily and paid monthly, at an annual rate of 20% of the fee paid by the Funds to
PaineWebber under the Advisory Contract.
DISTRIBUTION PLAN
PaineWebber is the distributor of each Funds' shares. Under the plans of
distribution, U.S. Government Portfolio, RMA Tax-Free, RMA California and RMA
New York are authorized to pay PaineWebber a monthly service fee at the annual
rate of up to 0.15% of average daily net assets and RMA New Jersey is authorized
to pay at the annual rate of up
35
<PAGE>
NOTES TO FINANCIAL STATEMENTS
to 0.12% of average daily net assets for providing certain shareholder services.
Currently, PaineWebber is compensated for providing such services at the annual
rate of 0.125% for each of those Funds except for RMA New Jersey which pays at
the annual rate of 0.12%. No such fees are charged by PaineWebber for the
similar services it provides for the Money Market Portfolio. At June 30, 1999,
the Funds owed PaineWebber for such service fees as follows:
<TABLE>
<S> <C>
U.S. Government Portfolio............................................ $ 143,910
RMA Tax-Free......................................................... 259,990
RMA California....................................................... 64,727
RMA New York......................................................... 39,984
RMA New Jersey....................................................... 6,466
</TABLE>
TRANSFER AGENCY AND RELATED SERVICES FEES
PaineWebber provides transfer agency and related services to the Funds
pursuant to a delegation of authority from PFPC, Inc., the Funds' transfer
agent, and is compensated for these services by PFPC, Inc., not the Funds. For
the year ended June 30, 1999, PaineWebber received an approximate percentage of
total transfer agency and related service fees from PFPC, Inc., not the Funds,
as follows:
<TABLE>
<S> <C>
Money Market Portfolio.................................................. 54%
U.S. Government Portfolio............................................... 53%
RMA Tax-Free............................................................ 52%
RMA California.......................................................... 55%
RMA New York............................................................ 52%
RMA New Jersey.......................................................... 59%
</TABLE>
OTHER LIABILITIES
At June 30, 1999, the Funds had the following liabilities outstanding:
<TABLE>
<CAPTION>
PAYABLE FOR
DIVIDENDS INVESTMENTS
PAYABLE PURCHASED
------------ -------------
<S> <C> <C>
Money Market Portfolio............................. $ 23,176,759 $ 25,209,728
U.S. Government Portfolio.......................... 2,155,312 --
RMA Tax-Free....................................... 2,644,674 26,096,077
RMA California..................................... 580,909 32,379,535
RMA New York....................................... 384,736 9,411,981
RMA New Jersey..................................... 59,050 1,505,348
</TABLE>
FEDERAL TAX STATUS
Each Fund intends to distribute all of its income and to comply with the other
requirements of the Internal Revenue Code applicable to regulated investment
companies. Accordingly, no provision for federal income taxes is required. In
addition, by distributing during each calendar year substantially all of its net
investment income, capital gains and certain other amounts, if any, the Funds do
not intend to be subject to federal excise tax.
36
<PAGE>
NOTES TO FINANCIAL STATEMENTS
At June 30, 1999, the Funds had capital loss carryforwards as follows:
<TABLE>
<S> <C>
Money Market Portfolio............................................. $ 2,458,926
RMA Tax-Free....................................................... 350,027
RMA California..................................................... 203,438
RMA New York....................................................... 67,140
RMA New Jersey..................................................... 4,739
</TABLE>
These loss carryforwards are available as reductions, to the extent provided
in the regulations, of future net realized capital gains, and will expire on
June 30, 2003 for Money Market Portfolio, between June 30, 2000 and June 30,
2004 for RMA Tax-Free and RMA California, between June 30, 2000 and June 30,
2003 for RMA New York, and between June 30, 2002 and June 30, 2007 for RMA New
Jersey. To the extent these losses are used to offset future net capital gains,
the gains so offset will not be distributed. U.S. Government Portfolio did not
have a capital loss carryforward at June 30, 1999.
CAPITAL SHARE TRANSACTIONS
There are 30 billion $0.001 par value authorized shares of common stock
relating to Money Market Portfolio, 10 billion $0.001 par value authorized
shares of common stock relating to the U.S. Government Portfolio and 20 billion
$0.001 par value authorized shares of common stock relating to the RMA Tax-Free.
Transactions in capital shares, at $1.00 per share, were as follows:
<TABLE>
<CAPTION>
FOR THE YEAR ENDED JUNE 30, 1999
---------------------------------------------------------
MONEY MARKET U.S. GOVERNMENT RMA
PORTFOLIO PORTFOLIO TAX-FREE
----------------- ----------------- -----------------
<S> <C> <C> <C>
Shares sold................... 78,943,557,998 7,619,283,399 14,110,685,842
Shares repurchased............ (77,207,533,976) (7,503,585,467) (14,022,965,674)
Dividends reinvested.......... 574,220,425 59,317,929 65,201,125
----------------- ----------------- -----------------
Net increase in shares
outstanding................. 2,310,244,447 175,015,861 152,921,293
----------------- ----------------- -----------------
----------------- ----------------- -----------------
</TABLE>
<TABLE>
<CAPTION>
FOR THE YEAR ENDED JUNE 30, 1998
---------------------------------------------------------
MONEY MARKET U.S. GOVERNMENT RMA
PORTFOLIO PORTFOLIO TAX-FREE
----------------- ----------------- -----------------
<S> <C> <C> <C>
Shares sold................... 65,875,302,609 6,429,052,935 12,850,070,826
Shares repurchased............ (63,913,078,006) (6,389,964,301) (12,712,957,488)
Dividends reinvested.......... 500,196,086 56,590,211 68,852,517
----------------- ----------------- -----------------
Net increase in shares
outstanding................. 2,462,420,689 95,678,845 205,965,855
----------------- ----------------- -----------------
----------------- ----------------- -----------------
</TABLE>
37
<PAGE>
NOTES TO FINANCIAL STATEMENTS
BENEFICIAL INTEREST
There is an unlimited amount of $0.001 par value shares of beneficial interest
authorized for RMA California, RMA New York and RMA New Jersey. Transactions in
shares of beneficial interest, at $1.00 per share, were as follows:
<TABLE>
<CAPTION>
FOR THE YEAR ENDED JUNE 30, 1999
--------------------------------------------
RMA RMA RMA
CALIFORNIA NEW YORK NEW JERSEY
-------------- -------------- ------------
<S> <C> <C> <C>
Shares sold....................... 3,334,106,869 2,849,385,444 487,037,910
Shares repurchased................ (3,339,563,811) (2,825,755,516) (473,713,631)
Dividends reinvested.............. 13,794,068 9,847,135 1,368,388
-------------- -------------- ------------
Net increase in shares
outstanding..................... 8,337,126 33,477,063 14,692,667
-------------- -------------- ------------
-------------- -------------- ------------
</TABLE>
<TABLE>
<CAPTION>
FOR THE YEAR ENDED JUNE 30, 1998
--------------------------------------------
RMA RMA RMA
CALIFORNIA NEW YORK NEW JERSEY
-------------- -------------- ------------
<S> <C> <C> <C>
Shares sold....................... 3,141,260,666 2,180,262,612 327,439,783
Shares repurchased................ (3,082,883,437) (2,124,848,046) (332,996,989)
Dividends reinvested.............. 15,641,959 9,631,908 1,513,127
-------------- -------------- ------------
Net increase (decrease) in shares
outstanding..................... 74,019,188 65,046,474 (4,044,079)
-------------- -------------- ------------
-------------- -------------- ------------
</TABLE>
38
<PAGE>
PAINEWEBBER RMA MONEY MARKET PORTFOLIO
FINANCIAL HIGHLIGHTS
Selected data for a share of common stock outstanding throughout each year is
presented below:
<TABLE>
<CAPTION>
FOR THE YEARS ENDED JUNE 30,
--------------------------------------------------------------------------
1999 1998 1997 1996 1995
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of
year.............................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------------ ------------ ------------ ------------ ------------
Net investment income.............. 0.046 0.051 0.049 0.051 0.049
Dividends from net investment
income............................ (0.046) (0.051) (0.049) (0.051) (0.049)
------------ ------------ ------------ ------------ ------------
Net asset value, end of year....... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------------ ------------ ------------ ------------ ------------
------------ ------------ ------------ ------------ ------------
Total investment return(1)......... 4.76% 5.21% 5.04% 5.25% 5.00%
------------ ------------ ------------ ------------ ------------
------------ ------------ ------------ ------------ ------------
Ratios/Supplemental Data:
Net assets, end of year (000's).... $ 13,446,140 $ 11,135,226 $ 8,673,055 $ 7,522,612 $ 5,398,146
Expenses to average net assets..... 0.59% 0.60% 0.59% 0.60%(2) 0.59%
Net investment income to average
net assets........................ 4.64% 5.09% 4.94% 5.14%(2) 4.91%
</TABLE>
- -----------------
(1) Total investment return is calculated assuming a $1,000 investment on the
first day of each year reported, reinvestment of all dividends and
distributions at net asset value on the payable dates, and a sale at net
asset value on the last day of each year reported.
(2) These ratios include non-recurring acquisition expenses of 0.01%.
39
<PAGE>
PAINEWEBBER RMA U.S. GOVERNMENT PORTFOLIO
FINANCIAL HIGHLIGHTS
Selected data for a share of common stock outstanding throughout each year is
presented below:
<TABLE>
<CAPTION>
FOR THE YEARS ENDED JUNE 30,
---------------------------------------------------------------------
1999 1998 1997 1996 1995
----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of
year.............................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
----------- ----------- ----------- ----------- -----------
Net investment income.............. 0.044 0.049 0.048 0.049 0.046
Dividends from net investment
income........................... (0.044) (0.049) (0.048) (0.049) (0.046)
----------- ----------- ----------- ----------- -----------
Net asset value, end of year....... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
----------- ----------- ----------- ----------- -----------
----------- ----------- ----------- ----------- -----------
Total investment return(1)......... 4.45% 5.05% 4.88% 5.04% 4.67%
----------- ----------- ----------- ----------- -----------
----------- ----------- ----------- ----------- -----------
Ratios/Supplemental Data:
Net assets, end of year (000's).... $ 1,354,594 $ 1,179,575 $ 1,083,866 $ 1,137,510 $ 815,781
Expenses to average net assets..... 0.60% 0.57% 0.62% 0.65%(2) 0.63%
Net investment income to average
net assets....................... 4.35% 4.93% 4.78% 4.91%(2) 4.55%
</TABLE>
- -----------------
(1) Total investment return is calculated assuming a $1,000 investment on the
first day of each year reported, reinvestment of all dividends and
distributions at net asset value on the payable dates, and a sale at net
asset value on the last day of each year reported.
(2) These ratios include non-recurring acquisition expenses of 0.02%.
40
<PAGE>
PAINEWEBBER RMA TAX-FREE FUND, INC.
FINANCIAL HIGHLIGHTS
Selected data for a share of common stock outstanding throughout each year is
presented below:
<TABLE>
<CAPTION>
FOR THE YEARS ENDED JUNE 30,
-------------------------------------------------------------------------------
1999 1998 1997 1996 1995
----------------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of
year........................ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
----------------- ----------- ----------- ----------- -----------
Net investment income......... 0.026 0.031 0.029 0.030 0.030
Dividends from net investment
income...................... (0.026) (0.031) (0.029) (0.030) (0.030)
----------------- ----------- ----------- ----------- -----------
Net asset value, end of
year........................ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
----------------- ----------- ----------- ----------- -----------
----------------- ----------- ----------- ----------- -----------
Total investment return(1).... 2.67% 3.10% 2.98% 3.09% 3.03%
----------------- ----------- ----------- ----------- -----------
----------------- ----------- ----------- ----------- -----------
Ratios/Supplemental Data:
Net assets, end of year
(000's)..................... $ 2,424,938 $ 2,271,969 $ 2,065,920 $ 2,013,448 $ 1,562,040
Expenses to average net
assets...................... 0.59% 0.58% 0.61% 0.61%(2) 0.63%
Net investment income to
average net assets.......... 2.63% 3.06% 2.94% 3.02%(2) 3.00%
</TABLE>
- -----------------
(1) Total investment return is calculated assuming a $1,000 investment on the
first day of each year reported, reinvestment of all dividends and
distributions at net asset value on the payable dates, and a sale at net
asset value on the last day of each year reported.
(2) These ratios include non-recurring acquisition expenses of 0.01%.
41
<PAGE>
PAINEWEBBER RMA CALIFORNIA MUNICIPAL MONEY FUND
FINANCIAL HIGHLIGHTS
Selected data for a share of beneficial interest outstanding throughout each
year is presented below:
<TABLE>
<CAPTION>
FOR THE YEARS ENDED JUNE 30,
-------------------------------------------------------------------
1999 1998 1997 1996 1995
----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of
year............................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
----------- ----------- ----------- ----------- -----------
Net investment income.............. 0.023 0.028 0.028 0.029 0.029
Dividends from net investment
income........................... (0.023) (0.028) (0.028) (0.029) (0.029)
----------- ----------- ----------- ----------- -----------
Net asset value, end of year....... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
----------- ----------- ----------- ----------- -----------
----------- ----------- ----------- ----------- -----------
Total investment return(1)......... 2.31% 2.87% 2.87% 2.89% 2.91%
----------- ----------- ----------- ----------- -----------
----------- ----------- ----------- ----------- -----------
Ratios/Supplemental Data:
Net assets, end of year (000's).... $ 575,296 $ 566,957 $ 492,915 $ 473,726 $ 330,937
Expenses to average net assets..... 0.67% 0.65% 0.62% 0.70%(2) 0.69%
Net investment income to average
net assets....................... 2.28% 2.83% 2.83% 2.82%(2) 2.87%
</TABLE>
- -----------------
(1) Total investment return is calculated assuming a $1,000 investment on the
first day of each year reported, reinvestment of all dividends and
distributions at net asset value on the payable dates, and a sale at net
asset value on the last day of each year reported.
(2) These ratios include non-recurring acquisition expenses of 0.03%.
42
<PAGE>
PAINEWEBBER RMA NEW YORK MUNICIPAL MONEY FUND
FINANCIAL HIGHLIGHTS
Selected data for a share of beneficial interest outstanding throughout each
year is presented below:
<TABLE>
<CAPTION>
FOR THE YEARS ENDED JUNE 30,
-----------------------------------------------------------
1999 1998 1997 1996 1995
--------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year...... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
--------- -------- -------- -------- --------
Net investment income................... 0.025 0.029 0.028 0.029 0.028
Dividends from net investment income.... (0.025) (0.029) (0.028) (0.029) (0.028)
--------- -------- -------- -------- --------
Net asset value, end of year............ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
--------- -------- -------- -------- --------
--------- -------- -------- -------- --------
Total investment return(1).............. 2.50% 2.97% 2.85% 2.91% 2.81%
--------- -------- -------- -------- --------
--------- -------- -------- -------- --------
Ratios/Supplemental Data:
Net assets, end of year (000's)......... $372,880 $339,391 $274,338 $255,177 $192,799
Expenses to average net assets before
waiver from
adviser............................... 0.65% 0.65% 0.77% 0.74%(2) 0.71%
Expenses to average net assets after
waiver from
adviser............................... 0.65% 0.65% 0.67% 0.72%(2) 0.68%
Net investment income to average net
assets before
waiver from adviser................... 2.46% 2.92% 2.71% 2.80%(2) 2.78%
Net investment income to average net
assets after
waiver from adviser................... 2.46% 2.92% 2.81% 2.82%(2) 2.81%
</TABLE>
- -----------------
(1) Total investment return is calculated assuming a $1,000 investment on the
first day of each year reported, reinvestment of all dividends and
distributions at net asset value on the payable dates, and a sale at net
asset value on the last day of each year reported.
(2) These ratios include non-recurring acquisition expenses of 0.04%.
43
<PAGE>
PAINEWEBBER RMA NEW JERSEY MUNICIPAL MONEY FUND
FINANCIAL HIGHLIGHTS
Selected data for a share of beneficial interest outstanding throughout each
period is presented below:
<TABLE>
<CAPTION>
FOR THE EIGHT FOR THE YEARS
FOR THE YEARS ENDED JUNE MONTHS ENDED ENDED OCTOBER
30, JUNE 30, 31,
--------------------------- ------------- ----------------
1999 1998 1997 1996 1995(2) 1994
-------- ------- ------- ------------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period.... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- ------- ------- ------------- ------- -------
Net investment income................... 0.022 0.026 0.026 0.017 0.027 0.018
Dividends from net investment income.... (0.022) (0.026) (0.026) (0.017) (0.027) (0.018)
-------- ------- ------- ------------- ------- -------
Net asset value, end of period.......... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- ------- ------- ------------- ------- -------
-------- ------- ------- ------------- ------- -------
Total investment return(1).............. 2.21% 2.67% 2.65% 1.71% 2.75% 1.76%
-------- ------- ------- ------------- ------- -------
-------- ------- ------- ------------- ------- -------
Ratios/Supplemental Data:
Net assets, end of period (000's)....... $ 62,972 $48,279 $52,324 $42,233 $36,206 $31,981
Expenses to average net assets.......... 0.89% 0.85% 0.81% 0.95%* 0.93% 0.85%
Net investment income to average net
assets................................ 2.18% 2.64% 2.63% 2.56%* 2.73% 1.74%
</TABLE>
- -----------------
* Annualized
(1) Total investment return is calculated assuming a $1,000 investment on the
first day of each period reported, reinvestment of all dividends and
distributions at net asset value on the payable dates, and a sale at net
asset value on the last day of each period reported. Total investment
returns for periods of less than one year have not been annualized.
(2) Investment advisory functions for the Fund were transferred from Kidder,
Peabody Asset Management, Inc. to PaineWebber on January 30, 1995.
44
<PAGE>
REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
Boards of Directors and/or Trustees and Shareholders
PaineWebber RMA Money Fund, Inc.
PaineWebber RMA Tax-Free Fund, Inc.
PaineWebber Managed Municipal Trust
PaineWebber Municipal Money Market Series
We have audited the accompanying statements of net assets of PaineWebber RMA
Money Fund, Inc. (comprised of PaineWebber RMA Money Market Portfolio and
PaineWebber RMA U.S. Government Portfolio), PaineWebber RMA Tax-Free Fund, Inc.,
PaineWebber Managed Municipal Trust (comprised of PaineWebber RMA California
Municipal Money Fund and PaineWebber RMA New York Municipal Money Fund) and
PaineWebber Municipal Money Market Series (comprised of PaineWebber RMA New
Jersey Municipal Money Fund) (collectively, the "Funds") as of June 30, 1999,
and the related statements of operations for the year then ended, the statements
of changes in net assets for each of the two years in the period then ended and
the financial highlights for each of the periods indicated therein. These
financial statements and financial highlights are the responsibility of the
Fund's management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements and financial highlights. Our procedures included confirmation of
securities owned at June 30, 1999, by correspondence with the custodian. An
audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
PaineWebber RMA Money Market Portfolio, PaineWebber RMA U.S. Government
Portfolio, PaineWebber RMA Tax-Free Fund, Inc., PaineWebber RMA California
Municipal Money Fund, PaineWebber RMA New York Municipal Money Fund and
PaineWebber RMA New Jersey Municipal Money Fund at June 30, 1999, the results of
their operations for the year then ended, the changes in their net assets for
each of the two years in the period then ended, and the financial highlights for
each of the periods indicated therein, in conformity with generally accepted
accounting principles.
[ERNST & YOUNG SIGNATURE]
New York, New York
August 19, 1999
45
<PAGE>
PAINEWEBBER RMA MONEY MARKET FUNDS
TAX INFORMATION(UNAUDITED)
We are required by Subchapter M of the Internal Revenue Code of 1986, as
amended, to advise you within 60 days of each Fund's fiscal year end (June 30,
1999) as to the federal tax status of distributions received by shareholders
during such fiscal year. Accordingly, we are advising you that all dividends
paid during the period by RMA California, RMA New York, RMA New Jersey and RMA
Tax-Free were federally exempt interest dividends. RMA New Jersey had 18.24% of
the dividends paid subject to the federal alternative minimum tax for individual
taxpayers during the fiscal year. Except for RMA Tax-Free, all dividends paid by
the aforementioned funds were exempt from personal income taxes from their
respective states. All of the distributions paid during the fiscal year by RMA
Money Market Portfolio and RMA U.S. Government Portfolio were derived from net
investment income and are taxable as ordinary income. None of the distributions
qualified for the dividend received deduction available to corporate
shareholders.
Dividends received by qualified tax-exempt recipients (e.g., IRAs and Keoghs)
need not be reported as taxable income. Some retirement trusts (e.g., corporate,
Keogh and 403(b)(7) plans) may need this information for their annual
information reporting.
Because each Fund's fiscal year is not the calendar year, another notification
will be sent in respect of calendar year 1999. The second notification, which
will reflect the amount to be used by calendar year taxpayers on their federal
income tax returns, will be made in conjunction with Form 1099 DIV and will be
mailed in January 2000. Shareholders are advised to consult their own tax
advisers with respect to the tax consequences of their investment in each
respective Fund.
46
<PAGE>
- -------------------------------------------------------------------------------
DIRECTORS/TRUSTEES
E. Garrett Bewkes, Jr. Meyer Feldberg
CHAIRMAN
George W. Gowen
Margo N. Alexander
Frederic V. Malek
Richard Q. Armstrong
Carl W. Schafer
Richard R. Burt
Brian M. Storms
Mary C. Farrell
PRINCIPAL OFFICERS
Margo N. Alexander Paul H. Schubert
PRESIDENT VICE PRESIDENT AND TREASURER
Victoria E. Schonfeld Dennis L. McCauley
VICE PRESIDENT VICE PRESIDENT
Dianne E. O'Donnell
VICE PRESIDENT AND SECRETARY
INVESTMENT ADVISER,
ADMINISTRATOR AND DISTRIBUTOR
PaineWebber Incorporated
1285 Avenue of the Americas
New York, New York 10019
SUB-ADVISER AND SUB-ADMINISTRATOR
Mitchell Hutchins Asset Management Inc.
1285 Avenue of the Americas
New York, New York 10019
THIS REPORT IS NOT TO BE USED IN CONNECTION WITH THE
OFFERING OF SHARES OF A FUND UNLESS ACCOMPANIED OR PRECEDED BY AN EFFECTIVE
PROSPECTUS.
<PAGE>
[LOGO]
PaineWebber
ANNUAL REPORT
- -------------------------------------------
RMA MONEY MARKET
PORTFOLIO
RMA U.S. GOVERNMENT
PORTFOLIO
RMA TAX-FREE FUND,
INC.
RMA CALIFORNIA
MUNICIPAL MONEY
FUND
RMA NEW YORK
MUNICIPAL MONEY
FUND
RMA NEW JERSEY
MUNICIPAL MONEY
FUND
JUNE 30, 1999
[LOGO]
PAINEWEBBER
- -C-1999 PaineWebber Incorporated
Member SIPC
