<PAGE>
RMA MONEY MARKET FUNDS SEMIANNUAL REPORT
February 19, 1999
Dear Shareholder,
We are pleased to present you with the semiannual 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
six-month period ended December 31, 1998.
MARKET REVIEW
- ------------------------------------------------------------------------------
Money market mutual fund assets increased during the period as
[ICON] investors emphasized safety of principal in response to volatility
in the financial markets. The Federal Reserve cut the Federal Funds rate by
0.25% in September, October and November, lowering it from 5.50% to 4.75%. At
the same time, European central banks were cutting rates in preparation for
the January 1, 1999 debut of the euro currency.
Lower interest rates helped to calm the global financial markets, which
had become unsettled after Russia's default in August. Money-market yields
were lower across the short-term yield curve. Because inflation remained
low, however, money-market yields stayed relatively strong on an
inflation-adjusted basis and versus overseas short-term rates.
OUTLOOK
The Federal Reserve is likely to maintain a steady monetary policy
[ICON] given strong U.S. economic growth and weak global growth. We expect
the U.S. economy to grow more slowly in 1999, with inflation remaining low
and no recession on the immediate horizon.
PORTFOLIO REVIEWS
- ------------------------------------------------------------------------------
We remained slightly bullish on the fixed income markets over the six
months ended December 31, 1998, expecting interest rates to hold steady or
fall slightly. Since we did not expect major changes in rates, we kept the
Portfolios' weighted average maturities slightly long, about 5-10 days above
the averages of their peer groups.
<TABLE>
<CAPTION>
AS OF DECEMBER 31, 1998:
7-Day
Current Weighted- AMT
Yield Avg Maturity Net Assets Holdings
- ----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
PaineWebber RMA Money Market Portfolio 4.63% 66 days $ 12.2 billion NONE
PaineWebber RMA U.S. Government Portfolio 4.23% 78 days $ 1.4 billion NONE
PaineWebber RMA Tax-Free Fund, Inc. 2.98% 42 days $ 2.4 billion NONE
PaineWebber RMA California Municipal Money Fund 2.74% 53 days $613.9 million NONE
PaineWebber RMA New York Municipal Money Fund 2.85% 45 days $411.6 million NONE
PaineWebber RMA New Jersey Municipal Money Fund 2.53% 70 days $ 64.9 million 14.3%
</TABLE>
1
<PAGE>
SEMIANNUAL 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 any of the other funds in the PaineWebber Family
of Funds,1 please contact your Financial Advisor.
Sincerely,
/s/ Margo Alexander /s/ Dennis L. McCauley
MARGO ALEXANDER DENNIS L. MCCAULEY
President Chief Investment Officer - Fixed Income
Mitchell Hutchins Asset Mitchell Hutchins Asset
Management Inc. Management Inc.
This letter is intended to assist shareholders in understanding how the Funds
performed during the six-month period ended December 31, 1998, and reflects
our views at the time of writing this report. 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.
2
<PAGE>
PAINEWEBBER RMA MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS DECEMBER 31, 1998(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(000) MATURITY DATES INTEREST RATES VALUE
- --------------- -------------------- ----------------- ---------------
<C> <S> <C> <C> <C>
U.S. GOVERNMENT AND AGENCY OBLIGATIONS--30.26%
$ 420,000 U.S. Treasury Bills........... 04/22/99 to 12/09/99 3.850 to 4.480%@ $ 408,528,172
203,165 Federal Farm Credit Bank...... 01/19/99 to 12/17/99 4.520 to 5.500 200,131,091
73,500 Federal Farm Credit Bank...... 01/01/99 5.260 to 5.293* 73,500,000
547,109 Federal Home Loan Bank........ 01/04/99 to 01/19/00 4.500 to 5.459 546,336,981
22,700 Federal Home Loan Bank........ 01/05/99 5.073* 22,697,649
789,000 Federal Home Loan Mortgage.... 01/08/99 to 06/04/99 4.780 to 5.110 784,626,250
1,081,000 Federal National Mortgage
Association................. 01/04/99 to 12/17/99 4.550 to 5.150 1,072,514,332
62,750 Student Loan Marketing
Association................. 10/06/99 to 01/14/00 5.000 to 5.170 62,750,000
444,200 Student Loan Marketing
Association................. 01/04/99 to 01/20/00 5.140 to 5.588* 444,169,925
86,000 Tennessee Valley Authority.... 01/21/99 to 02/22/99 4.980 to 5.050 85,714,844
---------------
Total U.S. Government and Agency Obligations
(cost--$3,700,969,244)......................... 3,700,969,244
---------------
BANKERS ACCEPTANCE--0.06%
DOMESTIC--0.06%
7,000 Chase Manhattan Bank
(cost--$6,979,681).......... 01/20/99 5.500@ 6,979,681
---------------
BANK NOTES--1.37%
DOMESTIC--1.37%
30,000 FCC National Bank............. 01/07/99 5.700 29,999,858
50,000 FCC National Bank............. 01/04/99 4.800 to 4.810* 49,996,082
56,000 Key Bank N.A.................. 01/04/99 4.630 to 4.800* 55,984,907
32,000 LaSalle National Bank......... 03/24/99 5.300 32,000,000
---------------
Total Bank Notes (cost--$167,980,847)............ 167,980,847
---------------
CERTIFICATES OF DEPOSIT--13.06%
DOMESTIC--2.60%
30,000 American Express Centurion
Bank........................ 01/05/99 5.480 30,000,000
59,750 Bankers Trust Company......... 03/05/99 to 04/28/99 5.630 to 5.770 59,741,596
128,700 Bankers Trust Company......... 01/04/99 4.820 to 5.690* 128,679,547
100,000 First Tennessee Bank N. A.
Memphis..................... 01/04/99 to 01/20/99 5.220 to 5.500 99,999,996
---------------
318,421,139
---------------
YANKEE--10.46%
140,000 Bank of Nova Scotia........... 04/06/99 to 08/25/99 5.560 to 5.700 140,047,774
30,000 Barclays Bank PLC............. 03/23/99 5.630 30,001,235
25,000 Bayerische Hypotheken und
Wechsel-Bank................ 03/23/99 5.650 24,996,810
40,000 Bayerische Vereinsbank AG..... 02/02/99 5.600 40,001,991
21,000 Canadian Imperial Bank of
Commerce.................... 06/14/99 to 06/23/99 5.700 to 5.710 21,024,805
86,600 Credit Agricole Indosuez...... 03/30/99 to 05/26/99 5.700 to 5.750 86,620,159
20,000 Credit Suisse First Boston.... 04/29/99 5.860 20,007,899
84,500 Deutsche Bank AG.............. 03/22/99 to 08/23/99 5.600 to 5.740 84,498,089
102,000 National Bank of Canada....... 03/05/99 to 07/20/99 5.700 to 5.760 101,987,344
30,000 Rabobank Nederland............ 03/03/99 to 05/14/99 5.460 to 5.750 29,997,508
</TABLE>
3
<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>
$ 24,700 Royal Bank of Canada.......... 06/23/99 5.695% $ 24,696,583
310,700 Societe Generale.............. 02/10/99 to 08/06/99 5.550 to 5.765 310,661,943
85,000 Societe Generale.............. 01/01/99 to 01/21/99 5.457 to 5.713* 84,976,354
202,250 Svenska Handelsbanken......... 02/23/99 to 08/20/99 5.430 to 5.820 202,248,074
19,500 Swiss Bank Corporation........ 06/04/99 5.680 19,519,840
43,000 Toronto-Dominion Bank......... 08/03/99 5.680 42,997,957
15,000 Westpac Banking Corporation... 04/09/99 5.640 15,006,370
---------------
1,279,290,735
---------------
Total Certificates of Deposit
(cost--$1,597,711,874)......................... 1,597,711,874
---------------
COMMERCIAL [email protected]%
AGRICULTURE--0.29%
35,000 Cargill Incorporated.......... 01/07/99 5.120 34,970,133
---------------
ASSET BACKED-AUTO & TRUCK--1.96%
240,000 New Center Asset Trust........ 01/04/99 to 01/22/99 5.200 to 5.290 239,789,900
---------------
ASSET BACKED-BANKING--1.67%
206,069 Atlantis One Funding
Corporation................. 01/22/99 to 03/30/99 5.060 to 5.500 204,325,673
---------------
ASSET BACKED-FINANCE--1.93%
147,350 Beta Finance Incorporated..... 03/02/99 to 03/11/99 5.180 to 5.270 145,938,106
91,000 CC (USA) Incorporated......... 03/02/99 to 03/25/99 5.060 to 5.350 90,139,093
---------------
236,077,199
---------------
ASSET BACKED-MISCELLANEOUS--5.22%
135,000 Asset Securitization
Cooperative Corporation..... 01/20/99 to 03/09/99 4.850 to 5.450 134,148,142
115,495 Enterprise Funding
Corporation................. 01/07/99 to 02/24/99 5.000 to 5.500 115,036,035
80,000 Falcon Asset Securitization
Corporation................. 02/02/99 to 02/23/99 5.200 to 5.350 79,532,555
50,000 Preferred Receivables Funding
Corporation................. 02/18/99 to 02/23/99 5.220 to 5.250 49,628,137
26,347 Quincy Capital Corporation.... 02/10/99 5.390 26,189,211
44,573 Receivables Capital
Corporation................. 01/14/99 5.460 44,485,117
190,000 Variable Funding Capital
Corporation................. 01/11/99 to 02/18/99 5.000 to 5.560 189,379,028
---------------
638,398,225
---------------
AUTO & TRUCK--2.57%
305,000 Ford Motor Credit
Corporation................. 01/06/99 to 03/03/99 5.100 to 5.410 303,908,986
11,000 PACCAR Financial
Corporation................. 02/05/99 5.100 10,945,458
---------------
314,854,444
---------------
BANKING--4.54%
50,000 Bank of Nova Scotia........... 01/08/99 6.250 49,939,236
85,000 Bankers Trust New York
Corporation................. 03/16/99 to 04/05/99 5.458 to 5.508 83,928,144
80,000 Banque et Caisse d'Epargne de
L'Etat...................... 02/10/99 to 03/08/99 5.070 to 5.190 79,401,158
25,000 BCI Funding Corporation....... 01/04/99 5.490 24,988,562
49,500 Cariplo Finance
Incorporated................ 01/05/99 5.520 49,469,640
125,000 Cregem North America
Incorporated................ 01/07/99 to 03/30/99 5.070 to 5.240 123,912,250
</TABLE>
4
<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)
BANKING (CONCLUDED)
<TABLE>
<C> <S> <C> <C> <C>
$ 50,000 Halifax PLC................... 03/18/99 5.010% $ 49,471,167
20,000 Nordbanken North America
Incorporated................ 02/12/99 5.470 19,872,367
50,000 Unifunding Incorporated....... 02/19/99 5.080 49,654,278
25,000 Westpac Capital Corporation... 02/04/99 5.160 24,878,167
---------------
555,514,969
---------------
BROKER-DEALER--3.18%
33,000 BT Alex Brown Corporation..... 04/14/99 5.470 32,483,541
65,000 Goldman Sachs Group L.P....... 01/04/99 5.050 64,972,646
70,000 Lehman Brothers Holdings
Incorporated................ 02/19/99 to 05/14/99 5.450 to 5.530 69,094,880
30,000 Lehman Brothers Holdings
Incorporated................ 01/11/99 5.545* 30,000,000
40,000 Merrill Lynch & Company
Incorporated................ 04/30/99 5.470 39,276,744
114,000 Morgan Stanley, Dean Witter &
Company..................... 01/06/99 to 03/26/99 5.200 to 5.420 113,086,517
40,000 Morgan Stanley, Dean Witter &
Company..................... 01/07/99 5.507* 40,000,000
---------------
388,914,328
---------------
BUSINESS SERVICES--1.44%
77,000 Block Financial Corporation... 01/06/99 to 02/10/99 5.200 to 5.300 76,770,764
50,000 Xerox Capital PLC............. 01/12/99 5.250 49,919,792
50,000 Xerox Credit Corporation...... 01/14/99 5.300 49,904,305
---------------
176,594,861
---------------
CHEMICALS--0.34%
25,000 DuPont (E. I.) deNemours &
Company..................... 01/21/99 5.400 24,925,000
17,000 Henkel Corporation............ 02/12/99 5.200 16,896,867
---------------
41,821,867
---------------
COMPUTERS--0.82%
100,000 IBM Credit Corporation........ 01/05/99 to 01/22/99 5.220 to 5.300 99,818,305
---------------
CONSUMER PRODUCTS--0.76%
93,800 Procter & Gamble Company...... 02/11/99 to 03/19/99 5.000 to 5.150 93,067,308
---------------
DRUGS, HEALTH CARE--1.58%
48,951 Glaxo Wellcome Incorporated... 01/06/99 5.450 48,913,947
35,000 Glaxo Wellcome PLC............ 03/08/99 5.060 34,675,317
110,000 Pfizer Incorporated........... 01/11/99 to 02/11/99 5.120 to 5.200 109,710,058
---------------
193,299,322
---------------
ELECTRONICS--2.45%
74,240 Emerson Electric Company...... 01/12/99 to 03/10/99 5.060 to 5.320 73,935,136
78,765 Motorola Credit Corporation... 02/26/99 to 04/01/99 4.850 to 5.030 78,033,027
44,000 Motorola Incorporated......... 02/25/99 5.050 43,660,527
90,000 Siemens Capital Corporation... 01/07/99 to 02/16/99 5.040 to 5.150 89,810,553
13,821 Vermont American
Corporation................. 01/29/99 5.500 13,761,877
---------------
299,201,120
---------------
</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>
ENERGY--1.14%
$ 95,749 Exxon Imperial U.S.
Incorporated................ 01/25/99 4.850% $ 95,439,412
19,000 Repsol International Finance
BV.......................... 01/12/99 5.200 18,969,811
25,000 Texaco Incorporated........... 01/14/99 5.360 24,951,611
---------------
139,360,834
---------------
FINANCE-AIRCRAFT--0.82%
100,000 International Lease
Financing................... 01/15/99 5.200 99,797,778
---------------
FINANCE-CONDUIT--1.56%
50,000 Commerzbank U.S. Finance
Incorporated................ 01/12/99 5.280 49,919,334
111,062 MetLife Funding
Incorporated................ 01/07/99 to 01/25/99 5.250 to 5.300 110,757,049
30,000 Svenska Handelsbanken......... 03/31/99 5.100 29,621,750
---------------
190,298,133
---------------
FINANCE-CONSUMER--0.81%
100,000 Household Finance
Corporation................. 01/28/99 to 01/29/99 5.130 99,608,125
---------------
FINANCE-DIVERSIFIED--1.47%
130,000 Associates Corporation of
North America............... 01/12/99 to 01/22/99 5.200 to 5.330 129,724,855
50,000 Barclays U.S. Funding
Corporation................. 02/17/99 5.020 49,672,306
---------------
179,397,161
---------------
FINANCE-INDEPENDENT--0.85%
105,000 National Rural Utilities
Cooperative Finance
Corporation................. 02/09/99 to 03/25/99 5.000 to 5.100 104,038,389
---------------
FINANCE-RETAIL--0.41%
50,000 American Express Credit
Corporation................. 01/12/99 5.300 49,919,028
---------------
FINANCE-SUBSIDIARY--0.65%
50,000 Dresdner U.S. Finance
Incorporated................ 01/19/99 to 02/18/99 5.170 to 5.290 49,761,542
30,000 National Australia Funding
(Delaware) Incorporated..... 03/10/99 5.220 29,704,200
---------------
79,465,742
---------------
FOOD, BEVERAGE & TOBACCO--4.04%
12,320 Allied Domecq North America
Corporation................. 02/04/99 5.050 12,261,240
63,750 Campbell Soup Company......... 01/25/99 to 09/03/99 5.120 to 5.150 63,099,222
259,800 Diageo Capital PLC............ 01/27/99 to 03/26/99 4.830 to 5.150 258,197,614
65,500 Heinz (H.J.) Company.......... 01/28/99 to 02/18/99 4.850 to 5.100 65,168,892
26,200 Hershey Foods Corporation..... 01/29/99 4.950 26,099,130
70,000 PepsiCo Incorporated.......... 01/19/99 5.150 to 5.280 69,816,500
---------------
494,642,598
---------------
INSURANCE--0.73%
90,000 Prudential Funding
Corporation................. 01/12/99 to 01/27/99 5.300 to 5.510 89,736,250
---------------
INSURANCE-PROPERTY/CASUALTY--0.90%
35,000 A.I. Credit Corporation....... 01/11/99 to 01/19/99 5.140 to 5.150 34,938,556
</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@ (CONCLUDED)
INSURANCE-PROPERTY/CASUALTY (CONCLUDED)
<TABLE>
<C> <S> <C> <C> <C>
$ 75,000 AIG Funding Incorporated...... 01/11/99 5.130 to 5.140% $ 74,892,986
---------------
109,831,542
---------------
MACHINERY--0.40%
49,000 Caterpillar Financial
Services.................... 01/14/99 to 01/15/99 5.300 48,903,422
---------------
MANUFACTURING-DIVERSIFIED--0.68%
25,000 BTR Dunlop Finance
Incorporated................ 01/20/99 5.320 24,929,806
57,975 Minnesota Mining &
Manufacturing Company....... 01/04/99 to 03/19/99 5.000 to 5.200 57,672,716
---------------
82,602,522
---------------
METALS & MINING--0.65%
58,000 Rio Tinto America
Incorporated................ 02/11/99 to 02/24/99 5.200 to 5.360 57,592,978
22,500 U.S. Borax Incorporated....... 01/15/99 5.300 22,453,625
---------------
80,046,603
---------------
PRINTING, PUBLISHING--0.65%
25,000 Gannett Company............... 01/12/99 5.200 24,960,278
54,400 Reed Elsevier (USA)
Incorporated................ 01/08/99 to 01/12/99 5.210 to 5.220 54,327,475
---------------
79,287,753
---------------
TELECOMMUNICATIONS--1.98%
40,000 Bell Atlantic Financial
Services Incorporated....... 01/08/99 5.220 39,959,400
38,000 BellSouth Capital Funding
Corporation................. 02/11/99 5.130 37,777,985
115,000 Lucent Technologies
Incorporated................ 01/15/99 to 02/04/99 5.130 to 5.300 114,652,103
50,000 SBC Communications
Incorporated................ 01/19/99 5.250 49,868,750
---------------
242,258,238
---------------
UTILITY-ELECTRIC--0.17%
21,500 Southern Company.............. 02/02/99 5.100 21,402,533
---------------
UTILITY-GAS--0.41%
50,000 Consolidated Natural Gas
Company..................... 01/26/99 5.150 49,821,181
---------------
Total Commercial Paper (cost--$5,757,065,486).... 5,757,065,486
---------------
SHORT-TERM CORPORATE OBLIGATIONS--9.78%
ASSET BACKED-FINANCE--0.84%
83,000 Beta Finance Incorporated..... 01/15/99 to 03/10/99 5.560 to 5.770 83,000,000
20,000 Beta Finance Incorporated..... 01/05/99 5.318* 20,000,000
---------------
103,000,000
---------------
AUTO & TRUCK--0.37%
45,000 PACCAR Financial
Corporation................. 01/28/99 5.549* 44,995,007
---------------
BANKING--0.90%
50,000 Bankers Trust Corporation..... 02/19/99 5.379* 49,999,329
</TABLE>
7
<PAGE>
PAINEWEBBER RMA MONEY MARKET PORTFOLIO
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(000) MATURITY DATES INTEREST RATES VALUE
- --------------- -------------------- ----------------- ---------------
<C> <S> <C> <C> <C>
</TABLE>
SHORT-TERM CORPORATE OBLIGATIONS (CONCLUDED)
BANKING (CONCLUDED)
<TABLE>
<C> <S> <C> <C> <C>
$ 25,000 NationsBank Corporation....... 01/04/99 5.303%* $ 25,000,165
35,400 Norwest Corporation........... 08/31/99 to 09/15/99 5.550 to 6.680 35,526,665
---------------
110,526,159
---------------
BROKER-DEALER--4.77%
170,000 Bear Stearns Companies
Incorporated................ 01/04/99 to 01/20/99 4.920 to 5.562* 170,000,000
40,000 Credit Suisse First Boston
Incorporated................ 01/05/99 5.218* 40,000,000
225,000 Lehman Brothers Holdings
Incorporated................ 01/04/99 to 03/22/99 4.910 to 5.751* 225,046,419
70,000 Merrill Lynch & Company
Incorporated................ 01/04/99 4.850* 70,000,000
77,800 Morgan Stanley, Dean Witter &
Company..................... 01/04/99 to 02/01/99 4.960 to 5.907* 77,850,650
---------------
582,897,069
---------------
COMPUTERS--0.70%
50,000 IBM Credit Corporation........ 07/22/99 6.100 50,186,003
35,000 IBM Credit Corporation........ 03/15/99 5.171* 35,000,000
---------------
85,186,003
---------------
INSURANCE--2.20%
268,750 Prudential Funding
Corporation................. 01/05/99 5.138 to 5.522* 268,750,000
---------------
Total Short-Term Corporate Obligations
(cost--$1,195,354,238)......................... 1,195,354,238
---------------
REPURCHASE AGREEMENT--0.08%
9,838 Repurchase Agreement dated
12/31/98 with SG Cowen
Securities Corporation,
collateralized by $8,717,000
U.S. Treasury Notes, 7.250%
due 08/15/04
(value--$10,046,343);
proceeds: $9,843,247
(cost--$9,838,000).......... 01/04/99 4.800 9,838,000
---------------
Total Investments (cost--$12,435,899,370 which
approximates cost for federal income tax
purposes)--101.68%............................. 12,435,899,370
Liabilities in excess of other assets--(1.68)%... (205,406,140)
---------------
Net Assets (applicable to 12,233,891,109 shares
of common stock outstanding at $1.00 per
share)--100.00%................................ $12,230,493,230
---------------
---------------
</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
December 31, 1998.
@ Interest rates shown are discount rates at date of purchase.
Weighted average maturity--66 days
See accompanying notes to financial statements
8
<PAGE>
PAINEWEBBER RMA U.S. GOVERNMENT PORTFOLIO
STATEMENT OF NET ASSETS DECEMBER 31, 1998(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(000) MATURITY DATES INTEREST RATES VALUE
- ------------- -------------------- ----------------- --------------
<C> <S> <C> <C> <C>
U.S. GOVERNMENT OBLIGATIONS--54.28%
$ 180,000 U.S. Treasury Bills........... 01/21/99 to 04/29/99 4.365 to 4.630%@ $ 178,273,961
570,000 U.S. Treasury Notes........... 01/15/99 to 10/15/99 5.750 to 7.125 573,156,343
--------------
Total U.S. Government Obligations
(cost--$751,430,304)......................... 751,430,304
--------------
REPURCHASE AGREEMENTS--45.32%
50,000 Repurchase Agreement dated
12/31/98 with Bear Stearns &
Company, Incorporated,
collateralized by
$30,845,000 U.S. Treasury
Bonds, 12.500% due 08/15/14
(value--$51,036,137);
proceeds: $50,025,833....... 01/04/99 4.650 50,000,000
50,000 Repurchase Agreement dated
12/31/98 with Deustche Bank
Securities Incorporated,
collateralized by
$50,560,000 U.S. Treasury
Notes, 5.625% due 12/31/99
(value--$51,000,652);
proceeds: $50,027,222....... 01/04/99 4.900 50,000,000
27,451 Repurchase Agreement dated
12/31/98 with Dresdner
Kleinwort Benson N.A. LLC,
collateralized by
$27,732,000 U.S. Treasury
Notes, 5.625% due 12/31/99
(value--$28,000,446);
proceeds: $27,464,726....... 01/04/99 4.500 27,451,000
50,000 Repurchase Agreement dated
12/31/98 with First Chicago
Capital Markets
Incorporated, collateralized
by $48,600,000 U.S. Treasury
Notes, 5.750% due 04/30/03
(value--$51,000,840);
proceeds: $50,026,667....... 01/04/99 4.800 50,000,000
50,000 Repurchase Agreement dated
12/31/98 with Goldman Sachs
& Company, collateralized by
$40,970,000 U.S. Treasury
Notes, 10.750% due 05/15/03
(value--$51,028,135);
proceeds: $50,025,278....... 01/04/99 4.550 50,000,000
50,000 Repurchase Agreement dated
12/31/98 with Merrill Lynch
Government Securities
Incorporated, collateralized
by $44,300,000 U.S. Treasury
Notes, 7.250% due 08/15/04
(value--$51,000,375)
proceeds: $50,026,389....... 01/04/99 4.750 50,000,000
50,000 Repurchase Agreement dated
12/31/98 with J.P. Morgan
Securities Incorporated,
collateralized by
$47,720,000 U.S. Treasury
Notes, 6.625% due 04/30/02
(value--$51,000,750);
proceeds: $50,026,111....... 01/04/99 4.700 50,000,000
50,000 Repurchase Agreement dated
12/31/98 with Morgan Stanley
& Company Incorporated,
collateralized by
$36,350,000 U.S. Treasury
Bonds, 11.750% due 02/15/10
(value--$51,017,225);
proceeds: $50,025,667....... 01/04/99 4.620 50,000,000
50,000 Repurchase Agreement dated
12/31/98 with NationsBanc
Montgomery Securities,
collateralized by
$49,580,000 U.S. Treasury
Notes, 5.375% due 06/30/03
(value--$51,005,425);
proceeds: $50,025,000....... 01/04/99 4.500 50,000,000
50,000 Repurchase Agreement dated
12/31/98 with Salomon Smith
Barney Incorporated,
collateralized by
$45,445,000 U.S. Treasury
Notes, 6.500% due 10/15/06
(value--$51,025,192);
proceeds: $50,026,111....... 01/04/99 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
12/31/98 with SG Cowen
Securities Corporation,
collateralized by
$31,313,000 U.S. Treasury
Bonds, 10.625% due 08/15/15
(value--$51,001,049);
proceeds: $50,026,944....... 01/04/99 4.850% $ 50,000,000
33,058 Repurchase Agreement dated
12/31/98 with State Street
Bank Corporation,
collateralized by
$25,545,000 U.S. Treasury
Bonds, 11.875% due 11/15/03
(value--$33,719,400);
proceeds: $33,075,815....... 01/04/99 4.850 33,058,000
16,942 Repurchase Agreement dated
12/31/98 with State Street
Bank Corporation,
collateralized by
$16,580,000 U.S. Treasury
Notes, 5.750% due 11/30/02
(value--$17,284,650);
proceeds: $16,951,130....... 01/04/99 4.850 16,942,000
50,000 Repurchase Agreement dated
12/31/98 with Warburg Dillon
Read LLC, collateralized by
$38,203,000 U.S. Treasury
Bonds, 7.625% due 02/15/25
(value--$51,001,005);
proceeds: $50,026,389....... 01/04/99 4.750 50,000,000
--------------
Total Repurchase Agreements
(cost--$627,451,000)......................... 627,451,000
--------------
Total Investments (cost--$1,378,881,304 which
approximates cost for federal income tax
purposes)--99.60%............................ 1,378,881,304
Other assets in excess of liabilities--0.40%... 5,502,059
--------------
Net Assets (applicable to 1,384,771,855 shares
of common stock outstanding at $1.00 per
share)--100.00%.............................. $1,384,383,363
--------------
--------------
</TABLE>
- -----------------
@ Interest rates shown are discount rates at date of purchase.
Weighted average maturity--78 days
See accompanying notes to financial statements
10
<PAGE>
PAINEWEBBER RMA TAX-FREE FUND, INC.
STATEMENT OF NET ASSETS DECEMBER 31, 1998(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(000) MATURITY DATES INTEREST RATES VALUE
- ------------- -------------------- -------------------- ----------------
<C> <S> <C> <C> <C>
ALABAMA--1.55%
$ 10,900 Birmingham Alabama Medical
Clinic Board Revenue
(U.A.H.S.F.)................ A 3.850% $ 10,900,000
9,635 Birmingham Alabama Refunding,
Series A.................... A 4.000 9,635,000
10,000 Port City Medical Board of
Mobile
(Infirmiry Health
Systems).................... 04/09/99 2.950 10,000,000
6,000 St. Clair County Industrial
Development Board
(National Cement Company
Inc. Project)............... A 4.050 6,000,000
----------------
36,535,000
----------------
ARIZONA--3.93%
11,200 Apache County Industrial
Development Authority
(Tucson Electric Power
Company Project Series B)... A 4.150 11,200,000
6,500 Apache County Industrial
Development Authority
(Tucson Electric Power
Springerville Project)...... A 4.100 6,500,000
10,000 Maricopa County Pollution
Control
(Arizona Public Service
Company).................... A 4.000 10,000,000
4,200 Phoenix Multi-Family Housing
Authority
(Del Mar Terrace Apartments
Project).................... A 4.000 4,200,000
8,200 Phoenix Multi-Family Housing
Authority
(Southwest Villages
Project).................... A 3.850 8,200,000
52,460 Salt River Agricultural
Improvement and Power
Project
Tax-Exempt Commercial
Paper....................... 01/12/99 to 03/11/99 2.950 to 3.350 52,460,000
----------------
92,560,000
----------------
CALIFORNIA--2.09%
6,500 California Higher Education
Loan Authority
(Student Loans)............. A 3.050 6,500,000
4,200 California Higher Education
Loan Authority
(Student Loans)............. A 3.800 4,200,000
9,000 California School Cash Reserve
Program Authority Pool
Series A
Tax and Revenue Anticipation
Notes....................... 07/01/99 4.500 9,032,759
2,420 Fremont School District Santa
Clara County
Tax and Revenue Anticipation
Notes....................... 06/30/99 3.900 2,422,520
5,000 Fremont California
Tax and Revenue Anticipation
Notes....................... 07/01/99 4.000 5,007,161
10,000 Los Angeles County Series A
Tax and Revenue Anticipation
Notes....................... 06/30/99 4.500 10,039,412
6,900 Los Angeles Regional Airports
Improvement Corporation
Lease Revenue............... A 4.850 6,900,000
5,000 Orange County California...... 02/11/99 3.000 5,000,000
----------------
49,101,852
----------------
COLORADO--1.78%
6,250 Colorado General Fund Revenue
Series A
Tax and Revenue Anticipation
Notes....................... 06/25/99 4.000 6,262,126
10,000 Colorado Housing Finance
Authority
Multi-Family Housing Revenue
Project
(Grant Plaza Project)....... A 4.125 10,000,000
6,000 Douglas and Elbert County
Colorado School District
Tax and Revenue Anticipation
Notes....................... 06/30/99 3.750 6,023,235
</TABLE>
11
<PAGE>
PAINEWEBBER RMA TAX-FREE FUND, INC.
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(000) MATURITY DATES INTEREST RATES VALUE
- ------------- -------------------- -------------------- ----------------
<C> <S> <C> <C> <C>
</TABLE>
COLORADO (CONCLUDED)
<TABLE>
<C> <S> <C> <C> <C>
$ 9,150 Douglas County Colorado
Multi-Family Housing Revenue
(Autumn Chase Project J).... A 3.200% $ 9,150,000
10,500 Moffat County Pollution
Control Revenue
(Colorado-Ute Electric)..... A 3.850 10,500,000
----------------
41,935,361
----------------
DELAWARE--0.62%
14,600 Delaware Economic Development
Authority
(Hospital Billing &
Collection Service, Ltd.)... A 4.250 14,600,000
----------------
FLORIDA--4.94%
9,550 Dade County Health Facilities
Authority Hospital Revenue
(Miami Childrens
Hospital)................... A 3.400 9,550,000
32,000 Dade County Water and Sewer
System Revenue.............. A 3.400 32,000,000
12,430 Florida Local Government
Finance Commission Series A
Tax-Exempt Commercial
Paper....................... 02/09/99 to 03/15/99 3.100 to 3.350 12,430,000
5,245 Florida Municipal Power Agency
Series A
Tax-Exempt Commercial
Paper....................... 02/17/99 3.200 5,245,000
4,000 Jacksonville Electric Series A
Tax-Exempt Commercial
Paper....................... 02/17/99 3.350 4,000,000
4,350 Orange County Health
Facilities Authority
(Adventist Health
Systems).................... A 3.950 4,350,000
5,090 Orange County Health
Facilities Authority
(Mayflower Retirement
Center)..................... A 4.000 5,090,000
7,400 Orange County Health
Facilities Authority
(Pooled Hospital Loan
Program)
Tax-Exempt Commercial
Paper....................... 01/28/99 3.050 7,400,000
8,000 Sarasota County Public
Hospital District
(Sarasota Memorial)
Tax-Exempt Commercial
Paper....................... 01/25/99 3.000 8,000,000
11,500 Hoosier City of Sullivan
Tax-Exempt Commercial
Paper....................... 02/19/99 3.200 11,500,000
3,240 National Rural Utilities
(Hoosier Energy)
Tax-Exempt Commercial
Paper....................... 03/09/99 3.100 3,240,000
4,000 Tampa Florida Occupational
License Tax, Series A....... A 3.750 4,000,000
4,900 University of North Florida
Foundation Incorporated..... A 4.000 4,900,000
4,550 West Orange Memorial Hospital,
A1
Tax-Exempt Commercial
Paper....................... 02/18/99 3.050 4,550,000
----------------
116,255,000
----------------
GEORGIA--8.64%
10,000 Georgia Municipal Electric
Authority................... A 4.150 10,000,000
31,000 Georgia Municipal Gas
Authority
(Transco Portfolio I Project
B).......................... A 4.150 31,000,000
9,740 Georgia Municipal Gas
Authority Gas Revenue
(Agency Project Series C)... A 4.150 9,740,000
4,000 Georgia Municipal Gas
Authority Gas Revenue
(Gas Portfolio II Project
C).......................... A 3.900 4,000,000
</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>
$ 16,700 Burke County Development
Authority, Series A
(Oglethorpe Power)
Tax-Exempt Commercial
Paper....................... 02/24/99 to 03/16/99 2.950% $ 16,700,000
47,005 Burke County Development
Authority Pollution Control
(Oglethorpe Power Corp.).... A 3.850 47,005,000
19,800 Burke County Development
Authority Pollution Control
Revenue
(Georgia Power Company Plant
Vogtle Ist)................. A 5.050 19,800,000
3,000 Cobb And Marietta County Water
Authority Water Revenue..... 11/01/99 4.500 3,038,113
10,000 Cobb County Housing Authority
Multi-Family Housing Revenue
(Greenhouse Frey Apartment
Project).................... A 4.250 10,000,000
10,000 De Kalb County Housing
Authority Multi-Family
Housing Revenue
Refunding Post Walk
Project..................... A 4.000 10,000,000
5,500 De Kalb Private Hospital
Authority Revenue
Anticipation Certificates
ESR Childrens Health, Series
B........................... A 3.900 5,500,000
12,370 Glynn Brunswick Memorial
Hospital Anticipation
Certificates
(Southeast Georgia
Project).................... A 3.850 12,370,000
5,100 Glynn Brunswick Memorial
Hospital Anticipation
Certificates
(S E Georgia Health)........ A 3.850 5,100,000
6,000 Gwinnett County Housing
Authority Multi-Family
Housing Revenue
(Post Chase Project)........ A 4.000 6,000,000
13,150 Gwinnett County Housing
Authority Multi-Family
Housing Revenue
Various Post Court
Project..................... A 4.000 13,150,000
----------------
203,403,113
----------------
ILLINOIS--10.98%
13,500 Illinios Healthcare Authority
Health Facility Authority
(Evanston Hospital)......... 03/01/99 to 06/01/99 3.700 to 3.800 13,500,000
6,000 Illinois Development Finance
Authority
(Chicago Symphony
Orchestra).................. A 4.000 6,000,000
16,200 Illinois Development Finance
Authority Pollution Control
Revenue
(Commonwealth Edison)....... A 4.150 16,200,000
4,000 Illinois Development Finance
Authority Revenue
(Provena Health) Series C... A 4.100 4,000,000
24,056 Illinois Educational
Facilities Authority Revenue
(Pooled loan)
Tax-Exempt Commercial
Paper....................... 03/17/99 to 04/08/99 3.000 to 3.100 24,056,000
4,845 Illinois Educational
Facilities Authority Revenue
(Northwestern University)... A 4.150 4,845,000
9,000 Illinois Educational
Facilities Authority Revenue
(Field Museum of Natural
History).................... 01/28/99 3.650 9,000,000
6,000 Illinois Educational
Facilities Authority Revenue
(Shedd Aquarium Society
B).......................... 07/20/99 3.700 6,000,000
8,000 Illinois Health Facilities
Authority Revenue
(Pooled Loan)............... A 4.100 8,000,000
19,700 Illinois Health Facilities
Authority Revenue
(Central Health and
Northwest Community)........ A 3.200 19,700,000
7,000 Illinois Health Facilities
Authority Revenue
(Evanston Hospital)
Tax-Exempt Commercial
Paper....................... 08/02/99 3.150 7,000,000
</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>
$ 15,100 Illinois Health Facilities
Authority Revenue
(Loyola University Health
Systems B).................. A 3.850% $ 15,100,000
5,000 Illinois Health Facilities
Authority Revenue
(University Chicago
Hospital)................... A 4.000 5,000,000
21,950 Illinois Health Facilities
Authority Revenue
Refunding (Advocate Health
Care B)..................... A 4.000 21,950,000
17,600 Illinois Toll and Highway
Authority................... A 3.850 17,600,000
4,000 Chicago Illinois Multi-Family
Housing Revenue
(Waveland Associates Project
D).......................... A 4.050 4,000,000
1,500 Chicago Illinois Multi-Family
Housing Revenue
(Waveland Associates Project
E).......................... A 4.050 1,500,000
32,200 Chicago O'Hare International
Airport Revenue, Series C... A 4.000 32,200,000
39,600 Cook County Illinios.......... A 4.100 39,600,000
3,000 Metropolitan Pier And
Exposition Authority
Illinois.................... 06/01/99 6.000 3,029,088
----------------
258,280,088
----------------
INDIANA--1.85%
4,000 Indiana Municipal Power Supply
Systems Revenue
Refunding Series A.......... A 3.950 4,000,000
21,000 City of Indianapolis Gas
Utility System
Tax-Exempt Commercial
Paper....................... 02/16/99 to 04/14/99 2.950 to 3.050 21,000,000
18,600 St Joseph County Educational
Facilities Revenue
(University Notre Dame)..... A 3.900 18,600,000
----------------
43,600,000
----------------
IOWA--0.98%
23,000 Iowa Finance Authority
(Village Court Project)..... A 3.625 to 4.000 23,000,000
----------------
KENTUCKY--3.15%
4,500 Kentucky Asset / Liability
Commission General Fund..... 11/01/99 3.500 4,520,009
4,000 Kentucky Asset / Liability
Commission General Fund
Tax and Revenue Anticipation
Notes, Series B............. 06/25/99 4.000 4,012,555
7,865 Kentucky Economic Development
Finance Authority
Hospital Facilities Revenue
(Baptist Healthcare Systems
Obligation)................. A 4.000 7,865,000
20,500 Jefferson County Kentucky
Pollution Control Revenue
(Louisville Gas and
Electric)
Tax-Exempt Commercial
Paper....................... 01/23/99 to 02/18/99 3.000 to 3.350 20,500,000
8,095 Mason County Pollution Control
Revenue
(East Kentucky Power
National Rural)............. A 4.050 8,095,000
29,035 Trimble County Pollution
Control
(Louisville Gas & Electric
Company)
Tax-Exempt Commercial
Paper....................... 01/28/99 to 03/10/99 3.050 to 3.450 29,035,000
----------------
74,027,564
----------------
LOUISIANA--3.47%
22,000 Louisiana Offshore Terminal
Authority Deepwater......... A 4.000 22,000,000
12,000 Louisiana Public Facilities
Authority Pollution Control
Revenue
(Ciba Geigy)................ A 4.050 12,000,000
</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>
$ 7,690 Louisiana Public Facilities
Authority Revenue
(College and University
Equipment and Capital Series
A).......................... A 4.000% $ 7,690,000
9,700 Calcasieu Parish Industrial
Development Board
Pollution Control Revenue
(Citgo Petrol
Corporation)................ A 4.300 9,700,000
3,750 Calcasieu Parish Louisiana
Sales Tax District.......... A 4.000 3,750,000
11,500 Jefferson Parish Hospital
Service District Hospital
Revenue..................... A 4.000 11,500,000
5,000 Plaquemines Port Harbor and
Terminal District
Marine Terminal Facilities
Revenue Electro Coal
Transfer
(Tampa Electric) Tax-Exempt
Commercial Paper............ 02/08/99 to 03/04/99 3.000 to 3.250 5,000,000
4,000 Plaquemines Port Harbor And
Terminal District Port
(Chevron Pipeline
Company).................... A 3.650 4,001,278
5,900 South Louisiana Port
Commission Marine Terminal
Facilities Revenue
(Occidental Petroleum)...... A 4.000 5,900,000
----------------
81,541,278
----------------
MARYLAND--2.37%
17,188 Maryland Health & Higher
Education, Series C
(John Hopkins)
Tax-Exempt Commercial
Paper....................... 02/17/99 to 02/18/99 3.100 17,188,000
4,500 Maryland Health & Higher
Educational Facilities
Series A
(John Hopkins Hospital)..... A 4.050 4,500,000
3,600 Maryland Health & Higher
Educational Facilities
Series A
(Pooled Loan Program)....... A 3.950 3,600,000
5,400 Maryland Health & Higher
Educational Facilities
Series B
(Pooled Loan Program)....... A 4.150 5,400,000
10,000 Montgomery County Series B
(Consolidated Public
Improvement)................ 02/12/99 3.350 10,000,000
5,965 Northeast Maryland Waste
Disposal Authority Resources
Recovery Revenue
(Refunding Harford Country
Resoucres).................. A 3.750 5,965,000
9,200 University of Maryland
Equipment Tender Notes...... A 4.050 9,200,000
----------------
55,853,000
----------------
MASSACHUSETTS--1.86%
10,000 Massachusetts Health and
Educational Facilities
Authority
(Capital Asset Program)..... A 3.600 10,000,000
4,000 Massachusetts Municipal
Wholesale Electric Company
Power Supply Systems
Revenue..................... A 3.900 4,000,000
2,340 Massachusetts State Turnpike
Authority
Bond Anticipation Notes..... 06/01/99 5.000 2,355,126
11,400 Boston Water and Sewer
Commission Revenue Series
A........................... A 3.700 11,400,000
1,130 Falmouth Massachusetts
Bond Anticipation Notes..... 08/13/99 4.000 1,132,640
10,000 Gloucester Massachusetts
Bond Anticipation Notes..... 08/05/99 4.000 10,019,398
</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>
MASSACHUSETTS (CONCLUDED)
<TABLE>
<C> <S> <C> <C> <C>
$ 4,900 Narragansett Regional School
District
Bond Anticipation Notes..... 07/30/99 3.750% $ 4,910,698
----------------
43,817,862
----------------
MICHIGAN--2.54%
2,000 Michigan Municipal Bond
Authority Revenue
Notes Series B 1............ 07/02/99 4.500 2,008,656
4,500 Michigan Municipal Bond
Authority Revenue
Notes Series D 1............ 08/27/99 4.250 4,518,955
12,950 Michigan Municipal Bond
Authority Revenue
Notes Series D 2............ 08/27/99 4.250 13,008,687
3,500 Michigan State Building
Authority Revenue Series
1........................... 02/09/99 3.300 3,500,000
4,000 Michigan State Housing
Development Authority
(Shoal Creek)............... A 4.000 4,000,000
3,000 Michigan State Strategic Fund
Limited Obligation
Revenue..................... A 5.050 3,000,000
3,100 Michigan Strategic Fund
(Dow Chemical)
Tax-Exempt Commercial
Paper....................... 02/11/99 3.150 3,100,000
10,100 City Of Rochester Healthcare
Facilities
(Mayo Clinic)
Tax-Exempt Commercial
Paper....................... 02/22/99 to 02/23/99 3.000 10,100,000
3,000 Detroit City School
District.................... 07/01/99 4.250 3,012,191
8,000 Kent Hospital Finance
Authority Michigan Revenue
Refunding Spectrum Health
B........................... A 3.850 8,000,000
5,400 Northville Township Economic
Development Corporation
Limited Obligation Revenue
(Thrifty Northville
Incorporated Project)....... A 4.125 5,400,000
----------------
59,648,489
----------------
MISSISSIPI--0.73%
8,700 Mississippi Business Finance
Corporation Mississippi
Revenue
(Mississippi College)....... A 4.050 8,700,000
2,000 Claiborne County Pollution
Control Revenue
(Southern Mississippi
Electric)
Tax-Exempt Commercial
Paper....................... 02/19/99 3.400 2,000,000
6,500 Perry County Pollution Control
Revenue
(Leaf River Forest)......... A 4.050 6,500,000
----------------
17,200,000
----------------
NEBRASKA--1.09%
10,600 Lancaster County Hospital
Revenue
(Bryan Memorial Hospital
Project).................... A 3.850 10,600,000
15,100 Nebraska Higher Education Loan
Authority................... A 4.100 15,100,000
----------------
25,700,000
----------------
NEVADA--1.62%
1,230 Carson City Nevada School
District.................... 04/01/99 8.500 1,245,174
36,819 Clark County Airport
Improvement Revenue......... A 3.850 36,819,000
----------------
38,064,174
----------------
</TABLE>
16
<PAGE>
PAINEWEBBER RMA TAX-FREE FUND, INC.
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(000) MATURITY DATES INTEREST RATES VALUE
- ------------- -------------------- -------------------- ----------------
<C> <S> <C> <C> <C>
NEW HAMPSHIRE--1.21%
$ 5,000 New Hampshire Business Finance
Authority Series A
Resource Recovery Revenue... A 3.950% $ 5,000,000
19,525 New Hampshire Housing Finance
Authority Multi-Family
Revenue
(EQR Bond Partnership
Project).................... A 4.250 19,525,000
4,000 Dover New Hampshire
Tax Anticipation Notes...... 06/24/99 4.000 4,000,911
----------------
28,525,911
----------------
NEW JERSEY--1.47%
2,500 New Jersey State
Transportation Authority
Trust Fund
Transportation Systems
Series A.................... 06/15/99 4.500 2,509,228
10,000 New Jersey State Turnpike
Authority................... A 3.750 10,000,000
12,000 South Jersey Transportation
Authority
Subordinated Bond
Anticipation Notes.......... 11/03/99 2.950 12,000,000
10,000 Woodbridge Township
Bond Anticipation Notes..... 07/30/99 4.000 10,022,269
----------------
34,531,497
----------------
NEW MEXICO--1.85%
3,500 New Mexico
Tax and Revenue Anticipation
Notes....................... 06/30/99 4.250 3,510,830
12,600 Albuquerque Airport Revenue... A 3.850 12,600,000
10,050 Albuquerque Gross Receipts
Lodges Tax Revenue Series
A........................... A 3.950 10,050,000
17,435 University of New Mexico
University Revenues......... A 3.850 17,435,000
----------------
43,595,830
----------------
NEW YORK--6.56%
3,500 New York State Dormitory
Authority Series A
(Hospital Insured Mortgage
Revenue).................... 02/16/99 4.750 3,504,878
4,800 New York State Energy Research
and Development Authority
Pollution Control Revenue
(Orange and Rockland Project
A).......................... A 3.800 4,800,000
7,000 New York State Housing Finance
Agency
(Normandie Court I
Project).................... A 4.100 7,000,000
6,500 New York State Local
Government Assistance
Corporation................. A 3.850 to 3.900 6,500,000
3,000 New York State Power Authority
Tax-Exempt Commercial
Paper....................... 02/05/99 3.000 3,000,000
4,400 Port Authority of New York and
New Jersey.................. A 5.050 4,400,000
23,900 Babylon New York Industrial
Development Agency Resources
(Ogden Martin Project)...... A 3.800 23,900,000
6,000 Central Islip New York Union
Free School District
Tax Anticipation Notes...... 06/30/99 4.000 6,007,121
8,000 Metropolitan Transportation
Authority................... 03/08/99 3.050 8,000,000
17,000 Municipal Assistance
Corporation for New York
City........................ A 3.600 to 3.800 17,000,000
6,000 Nassau County
Revenue Anticipation Notes
Series A.................... 03/10/99 4.000 6,002,142
3,500 New York City
Tax-Exempt Commercial
Paper....................... 02/10/99 3.000 3,500,000
</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>
NEW YORK (CONCLUDED)
<TABLE>
<C> <S> <C> <C> <C>
$ 2,500 New York City Municipal Water
Finance Authority
Water & Sewer Systems
Revenue..................... 01/21/99 3.350% $ 2,500,000
1,245 New York City, Series B2...... A 2.150 1,245,000
10,000 New York City, Series F-7..... A 4.100 10,000,000
3,000 Rome School District
Revenue Anticipation
Notes....................... 06/30/99 4.000 3,002,840
3,500 Schenectady School District
Revenue Anticipation
Notes....................... 06/30/99 3.750 3,506,612
31,535 Suffolk County Water
Authority................... A 3.900 31,535,000
9,000 Suffolk County Water Authority
Bond Anticipation Notes..... A 3.900 9,000,000
----------------
154,403,593
----------------
NORTH CAROLINA--5.55%
21,450 North Carolina Education and
Medicare
(Duke University)........... A 3.250 to 3.950 21,450,000
11,145 North Carolina Educational
Facilities Finance Agency
Revenue
(Guilford College).......... A 4.000 11,145,000
22,000 North Carolina Educational
Facility
(Bowman Grey School Medical
Project).................... A 3.950 22,000,000
6,000 North Carolina Educational
Facility
(Duke University Project
Series A)................... A 3.950 6,000,000
14,000 North Carolina Educational
Facility
(Duke University Project
Series B)................... A 3.950 14,000,000
9,815 North Carolina Educational
Facility
(Elon College).............. A 3.900 9,815,000
5,785 North Carolina Medical Care
Commission Hospital Revenue
(Duke University Hospital
Project C).................. A 3.950 5,785,000
16,480 Charlotte Airport Revenue..... A 3.850 16,480,000
16,400 Charlotte Mecklenberg Hospital
Authority
Health Care Systems Revenue
Series D.................... A 3.900 16,400,000
7,600 Union County Industrial
Facilities and Pollution
Control
Financing Authority
(Square D Company
Project).................... A 4.000 to 4.125 7,600,000
----------------
130,675,000
----------------
OHIO--1.85%
4,370 Ohio State Air Quality
Development Authority
Revenue
Pollution Control Electric
B........................... 03/12/99 3.050 4,370,000
5,300 Columbus Electric Systems
Revenue..................... A 3.500 5,300,000
18,900 Columbus Sewer Revenue........ A 3.900 18,900,000
10,000 Cuyahoga County Hospital
Revenue
(Cleveland Clinic Foundation
A).......................... A 4.050 10,000,000
5,000 Cuyahoga County Hospital
Revenue, Series A........... A 4.100 5,000,000
----------------
43,570,000
----------------
OREGON--1.87%
29,500 Oregon State General
Obligation
(Veterans Welfare).......... A 4.000 to 4.100 29,500,000
</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>
OREGON (CONCLUDED)
<TABLE>
<C> <S> <C> <C> <C>
$ 10,000 Oregon State Variable Rate
Series 73 H................. A 4.100% $ 10,000,000
4,500 Multnomah County School
District Number 1J
Tax And Revenue Anticipation
Notes....................... 06/30/99 4.250 4,512,831
----------------
44,012,831
----------------
PENNSYLVANIA--4.29%
10,000 Pennsylvania State Higher
Educational Facilities
Authority Revenue
(University Pennsylvania
Health Services) Series B... A 4.050 10,000,000
7,000 Alleghany County Pollution
Control Revenue
(U.S. Steel)
Tax-Exempt Commercial
Paper....................... 01/20/99 3.200 7,000,000
14,000 Allegheny County Hospital
Development Authority
Revenue
(St. Francis Systems)....... A 4.050 14,000,000
4,000 Beaver County Industrial
Development, Series 90C
(Duquene light)
Tax-Exempt Commercial
Paper....................... 02/01/99 3.350 4,000,000
7,400 Bucks County Industrial
Development Authority
Revenue
(Edgcomb Metals Company).... A 3.150 7,400,000
21,200 Delaware Valley Regional
Finance Authority
Local Government Revenue.... A 3.900 21,200,000
4,600 Delaware Valley Regional
Finance Authority Series A
Local Government Revenue.... A 3.900 4,600,000
4,200 Delaware Valley Regional
Finance Authority Series B
Local Government Revenue.... A 3.900 4,200,000
4,100 Delaware County, Series PCR
(PICO Energy)
Tax-Exempt Commercial
Paper....................... 02/05/99 3.050 4,100,000
12,200 Northumberland County
Industrial Development
Authority
Pollution Control Revenue
(Merck and Company)......... A 3.850 to 4.250 12,200,000
4,500 Philadelphia Series A
Tax and Revenue Anticipation
Notes....................... 06/30/99 4.250 4,513,151
7,800 Pottsville Hospital Authority
Hospital Revenue
(Charity Obligation Group
Series F)................... A 3.900 7,800,000
----------------
101,013,151
----------------
RHODE ISLAND--0.17%
3,965 Rhode Island State Health &
Educational Building
Corporation
(Women & Infants)........... A 3.550 3,965,000
----------------
SOUTH CAROLINA--1.63%
6,200 Greenville County Industrial
Revenue
(Edgcomb Metals Company
Project).................... A 4.000 6,200,000
13,335 South Carolina Jobs Economic
Development Authority
Hospital Facilities Revenue
(Baptist Healthcare
Systems).................... A 3.900 13,335,000
7,600 South Carolina Jobs Economic
Development Authority
Hospital Facilities Revenue
Regional Medical Center
Orangeburg.................. A 3.850 7,600,000
</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>
SOUTH CAROLINA (CONCLUDED)
<TABLE>
<C> <S> <C> <C> <C>
$ 11,300 South Carolina Public Service
Authority
Tax-Exempt Commercial
Paper....................... 02/05/99 to 02/22/99 2.950 to 3.000% $ 11,300,000
----------------
38,435,000
----------------
TENNESSEE--3.09%
2,000 Tennessee Energy Acquisition
Corporation Gas, Series A... 09/01/99 3.750 2,004,528
2,440 Tennessee Energy Acquisition
Corporation Gas, Series B... 09/01/99 3.750 2,444,733
3,565 Tennessee State School Bond
Authority Series A
Higher Educational
Facilities.................. 05/01/99 5.000 3,587,616
4,000 Tennessee State School Board
Tax-Exempt Commercial
Paper....................... 03/12/99 2.950 4,000,000
5,000 Tennessee State School Board,
Series A.................... 05/01/99 5.000 5,032,250
2,200 Tennessee State, Series B..... 06/01/99 5.950 2,220,625
7,845 Clarksville Public Building
Authority Revenue C......... A 4.050 7,845,000
15,000 Johnson County Health......... 02/25/99 3.100 15,000,000
4,000 Metropolitan Nashville Airport
Authority................... A 4.000 4,000,000
8,000 Metropolitan Nashville &
Davidson Health and
Education
(Vanderbilt University)..... A 3.750 8,000,000
8,600 Metropolitan Nashville &
Davidson Industrial
(Timberlake)................ A 3.500 8,600,000
10,000 Shelby County 1997 Series A
Tax-Exempt Commercial
Paper....................... 01/12/99 to 02/12/99 3.150 to 3.350 10,000,000
----------------
72,734,752
----------------
TEXAS--13.49%
7,000 Texas Public Finance Authority
Series B
Tax-Exempt Commercial
Paper....................... 03/08/99 2.950 7,000,000
10,000 Texas State
Registered D Series A58..... A 5.350 10,000,000
20,000 Texas State
Tax and Revenue Anticipation
Notes....................... 08/31/99 4.500 20,205,400
67,000 Texas State
Tax-Exempt Commercial
Paper....................... 07/23/99 to 08/23/99 2.950 67,000,000
6,915 Bexar County Health Facilities
Development
(Army Retirement
Foundation)................. A 4.000 6,915,000
4,850 Brazos River Harbor Navigation
District Brazoria County
Revenue (Dow Chemical
Company Project A).......... A 5.150 4,850,000
9,500 City of Houston
Tax-Exempt Commercial
Paper....................... 02/25/99 to 02/26/99 3.050 to 3.150 9,500,000
62,000 City of Houston Water & Sewer
Authority
Tax-Exempt Commercial
Paper....................... 02/08/99 to 04/07/99 2.900 to 3.400 62,000,000
4,500 Fort Worth Texas, Series A.... 03/01/99 5.500 4,517,257
12,800 Georgetown Higher Education
Finance Corp.
(Southwestern University)... A 4.000 12,800,000
8,000 Harris County Health
Facilities
(Baylor College of Medical
Project).................... A 4.150 8,000,000
5,900 Harris County Health
Facilities Series B
(Memorial Hospital Systems
Project).................... A 3.900 5,900,000
5,000 Harris County Texas
Tax Anticipation Notes...... 02/26/99 4.250 5,008,343
</TABLE>
20
<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>
$ 23,100 Harris County Toll Roads...... A 3.950% $ 23,100,000
2,000 Harris County Health
Facilities Series A
(Memorial Hospital Systems
Project).................... 06/01/99 4.100 2,005,632
4,500 Hockley County Texas
Industrial Development
Corporation Pollution
(Amoco Project)............. 05/01/99 3.000 4,502,143
4,000 Houston Texas General
Obligation, Series C........ 04/08/99 2.950 4,000,000
19,000 North Central Texas Health,
Series 1991 A
(Methodist Hospital)
Tax-Exempt Commercial
Paper....................... 02/11/99 to 02/12/99 3.150 19,000,000
9,200 Port of Corpus Christi
Authority Texas
(Koch Industries)
Tax-Exempt Commercial
Paper....................... A 3.750 9,200,000
10,000 San Antonio Texas Electric and
Gas Series A
Tax-Exempt Commercial
Paper....................... 01/28/99 3.250 10,000,000
18,000 Travis County Health
Facilities Development
Corporation Hospital Revenue
(Charity Obligation Group
Series E)................... A 3.900 18,000,000
4,000 University of Texas Board of
Regents Series A............ 02/05/99 3.050 4,000,000
----------------
317,503,775
----------------
UTAH--0.42%
4,000 Intermountain Power Agency
Uath Power Supply, Series
85E......................... A 3.350 4,000,000
5,800 Intermountain Power Agency
Utah Power Supply, Series
F........................... 03/15/99 3.450 5,800,000
----------------
9,800,000
----------------
VERMONT--0.06%
1,500 Vermont Educational And Health
Buildings Financing Agency
Revenue
(Middlebury College Project
A).......................... 11/01/99 3.100 1,500,000
----------------
VIRGINIA--1.35%
5,000 Loudoun County Virginia
Industrial Development
Authority
Residential Care Facility
Revenue
(Falcons Landing Project)... A 3.900 5,000,000
26,700 Louisa Industrial Development
Authority................... 01/26/99 to 03/26/99 3.000 to 3.150 26,700,000
----------------
31,700,000
----------------
WASHINGTON--2.01%
12,000 Washington State Public Power
Supply Systems.............. A 3.950 12,000,000
12,800 Washington State
Series Vr-96B............... A 4.050 12,800,000
7,600 Seattle Municipal Light and
Power Revenue
Tax-Exempt Commercial
Paper....................... A 3.850 7,600,000
14,800 Snohomish Public Utility
District.................... A 3.850 14,800,000
----------------
47,200,000
----------------
WISCONSIN--0.69%
3,100 Wisconsin State............... 05/01/99 6.750 3,167,401
6,100 City of Oak Creek Pollution
Control Revenue
(Wisconsin Electric Power
Company).................... A 4.100 6,100,000
</TABLE>
21
<PAGE>
PAINEWEBBER RMA TAX-FREE FUND, INC.
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(000) MATURITY DATES INTEREST RATES VALUE
- ------------- -------------------- -------------------- ----------------
<C> <S> <C> <C> <C>
</TABLE>
WISCONSIN (CONCLUDED)
<TABLE>
<C> <S> <C> <C> <C>
$ 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
----------------
16,267,401
----------------
WYOMING--0.21%
4,800 Uinta County Pollution Control
Revenue
(Amoco)..................... A 5.100 $ 4,800,000
----------------
Total Investments (cost--$2,399,356,522 which
approximates cost for federal income tax
purposes)--101.96%........................... 2,399,356,522
Liabilities in excess of other
assets--(1.96)%................................ (46,068,273)
----------------
Net Assets (applicable to 2,354,307,247 shares
of common stock outstanding at $1.00 per
share)--100.00%.............................. $ 2,353,288,249
----------------
----------------
</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
December 31, 1998 and reset periodically.
Weighted average maturity--42 days
See accompanying notes to financial statements
22
<PAGE>
PAINEWEBBER RMA CALIFORNIA MUNICIPAL MONEY FUND
STATEMENT OF NET ASSETS DECEMBER 31, 1998(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(000) MATURITY DATES INTEREST RATES VALUE
- ------------- -------------------- --------------------- --------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES--86.45%
$ 15,000 California State Revenue and
Anticipation Notes.......... 06/30/99 4.000 % $ 15,061,346
3,455 California Educational
Facilities Authority
(Stanford University-Series
L).......................... A 3.650 3,455,000
3,950 California Educational
Facilities Authority
(Stanford University-Series
L-3)........................ A 3.650 3,950,000
8,800 California Health Facilities
Financing Authority
(Adventist Health
System-Series A)............ A 3.700 8,800,000
14,000 California Health Facilities
Financing Authority
(Adventist Health
System-Series B)............ A 3.700 to 5.000 14,000,000
800 California Health Facilities
Financing Authority
(Adventist Health
System-Series C)............ A 5.000 800,000
3,500 California Health Facilities
Financing Authority
(Scripps Health-Series B)... A 3.800 3,500,000
2,600 California Health Facilities
Financing Authority
(Scripps Memorial
Hospital)................... A 3.200 to 3.350 2,600,000
1,430 California Health Facilities
Financing Authority
(St. Joseph's Health
System-Series B)............ A 5.100 1,430,000
5,800 California Health Facilities
Financing Authority
(Sutter Health-Series A).... A 5.000 5,800,000
1,300 California Health Facilities
Financing Authority
(Sutter Health-Series B).... A 5.100 1,300,000
13,000 California Health Facilities
Financing Authority
(Sutter Health-Series C).... A 5.100 13,000,000
2,900 California Pollution Control
Financing Authority
(Pacific Gas & Electric
Corporation-Series A)....... A 5.000 2,900,000
4,800 California Pollution Control
Financing Authority
(Pacific Gas & Electric
Corporation-Series F)....... A 5.000 4,800,000
10,000 California School Cash Reserve
Program Authority (Series
A).......................... 07/02/99 4.500 10,036,500
16,000 California School Facilities
Financing Corporation
Certficates of Participation
(Capital Improvement
Financing Projects-Series
A).......................... A 3.900 16,000,000
1,800 California School Facilities
Financing Corporation
Certificates of
Participation (Capital
Improvement Financing
Projects-Series B).......... A 3.900 1,800,000
6,900 California State Economic
Development Financing
Authority
(California Independent
Systems Project-Series A)... A 5.000 6,900,000
4,000 California State Economic
Development Financing
Authority
(California Independent
Systems Project-Series C)... A 5.150 4,000,000
5,400 California State Economic
Development Financing
Authority
(California Independent
Systems Project-Series D)... A 5.000 5,400,000
1,885 California State Public Works
Board
(California State
University-Series C)........ 10/01/99 5.000 1,911,166
1,540 California State University
Revenue..................... 11/01/99 8.250 1,606,421
2,100 California Statewide
Communities Development
Authority
(St. Joseph's Health System
Group)...................... A 5.100 2,100,000
1,500 California Statewide
Communities Development
Authority Certificates of
Participation (Continuing
Care Projects).............. A 5.000 1,500,000
10,900 California Transit Financing
Authority................... A 3.650 to 3.950 10,900,000
9,200 Abag Finance Authority for
Nonprofit Corporations
Certificates of
Participation (Lucile Salter
Packard Project)............ A 3.850 9,200,000
8,050 Alameda Contra Costa Schools
Financing Authority
Certificates of
Participation (Capital
Improvement Financing
Projects) .................. A 3.700 8,050,000
</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>
$ 4,000 Alameda Contra Costa Schools
Financing Authority
Certificates of
Participation (Capital
Improvement Financing
Projects-Series A) ......... A 3.700 % $ 4,000,000
1,000 Alameda County Certificates of
Participation
(Refunding and Capital
Projects)................... 12/01/99 4.000 1,009,842
17,400 Anaheim Certificates of
Participation (1993
Refunding Projects)......... A 3.650 17,400,000
6,000 Butte County Office of
Education Tax and Revenue
Anticipation Notes.......... 10/15/99 4.000 6,036,987
4,000 Foothill/Eastern Corridor
Agency Toll Road Revenue
(Series E).................. A 3.650 4,000,000
4,000 Fremont Tax and Revenue
Anticipation Notes.......... 07/01/99 4.000 4,005,728
5,200 Golden Empire Schools
Financing Authority
(Kern High School
District-Series A).......... A 3.650 5,200,000
7,200 Huntington Beach Multi-Family
Housing Revenue Bonds
(Rivermeadow Apartments
Project-Series B)........... A 3.050 7,200,000
5,164 Irvine Improvement Bond Act
1915 Updates Assessment
District 85-7-I............. A 3.700 5,164,000
21,930 Irvine Public Facilities and
Infrastructure Authority
(Capital Improvement
Projects)................... A 3.100 to 3.900 21,930,000
900 Irvine Ranch Water District
Certificates of
Participation
(Capital Improvement
Projects)................... A 5.000 900,000
8,000 Kern County Board of Education
Tax and Revenue Anticipation
Notes....................... 06/30/99 4.250 8,024,559
2,000 Los Angeles Community College
District Tax and Revenue
Anticipation Notes.......... 07/29/99 4.250 2,006,959
2,900 Los Angeles Community
Redevelopment Agency
Multi-Family Housing Revenue
Bonds (Grand Promenade
Project).................... A 3.400 2,900,000
1,795 Los Angeles County Capital
Asset Leasing Corporation... 12/01/99 5.100 1,828,872
10,100 Los Angeles County Pension
Obligation (Series A)....... A 3.700 10,100,000
5,000 Los Angeles County Pension
Obligation (Series B)....... A 3.700 5,000,000
12,100 Los Angeles County Pension
Obligation (Series C)....... A 3.250 to 3.300 12,100,000
7,450 Los Angeles County Tax and
Revenue Anticipation Notes
(Series A).................. 06/30/99 4.500 7,485,311
1,900 Los Angeles County
Transportation Commission
Sales Tax Revenue Bonds
(Series A).................. A 3.700 1,900,000
13,400 Los Angeles Multi-Family
Housing Revenue Bonds
(Museum Terrace
Apartments-Series H)........ A 3.200 13,400,000
3,480 Los Angeles Unified School
District Certificates of
Participation
(Belmont Learning
Complex-Series A)........... A 3.800 3,480,000
2,000 M-S-R Public Power Agency San
Juan Project Revenue Bonds
(Series E).................. A 3.800 2,000,000
2,000 Metropolitan Water District of
Southern California
Waterworks Revenue Bonds
(Series C).................. A 3.350 2,000,000
6,795 Moorpark Industrial
Development Authority
(Fred Kavli and Kavlico
Corporation)................ A 3.500 6,795,000
1,000 Murrieta Valley Unified School
District.................... 09/01/99 7.500 1,028,176
12,000 Newport Beach Health
Facilities (Hoag Memorial
Hospital)................... A 5.100 12,000,000
6,700 Newport Beach Health
Facilities (Hoag Memorial
Hospital-Series B).......... A 5.100 6,700,000
5,100 Newport Beach Health
Facilities (Hoag Memorial
Hospital-Series C).......... A 5.100 5,100,000
6,000 Oakland Joint Powers Financing
Authority (Series A-1)...... A 3.900 6,000,000
5,000 Oakland Unified School
District Alameda County Tax
and Revenue Anticipation
Notes....................... 11/09/99 3.250 5,018,686
6,040 Orange County Apartment
Development Revenue Bonds
(Niguel Summit 2-Series
B).......................... A 3.200 6,040,000
5,525 Orange County Apartment
Development Revenue Bonds
(Niguel Village Issue AA)... A 3.400 5,525,000
</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 (CONTINUED)
<TABLE>
<C> <S> <C> <C> <C>
$ 1,700 Orange County Housing
Authority Multi-Family
Apartment Development
Revenue Bonds (Lantern Pines
Project-Series CC).......... A 3.300 % $ 1,700,000
6,700 Orange County Various
Sanitation Districts
Certificates of
Participation (Series C).... A 5.000 6,700,000
2,000 Petaluma City School District
Tax and Revenue Anticipation
Notes....................... 06/30/99 4.000 2,002,658
2,400 Pomona Redevelopment Agency
Multi-Family Housing Revenue
Bonds (Park & Plaza
Apartments-Series A)........ A 3.450 2,400,000
2,750 Rancho Cucamonga Redevelopment
Agency Tax Allocation
Bonds....................... 09/01/99 7.125 2,852,819
9,985 Redlands Certificates of
Participation (Water
Treatment Facilities
Project).................... A 3.750 9,985,000
5,000 Riverside County Tax and
Revenue Anticipation
Notes....................... 09/30/99 4.500 5,043,044
4,475 Sacramento County Certificates
of Participation
(Administration Center and
Courthouse Project)......... A 3.700 4,475,000
1,500 San Bernardino County
Certificates of
Participation
(County Center Refinancing
Project).................... A 3.750 1,500,000
2,500 San Bernardino County Tax and
Revenue Anticipation
Notes....................... 09/30/99 4.500 2,528,096
1,640 San Diego Unified School
District Tax and Revenue
Anticipation Notes (Series
A).......................... 10/01/99 4.500 1,658,191
2,500 San Francisco City and County
Multifamily Housing Revenue
Bonds (Winterland
Project-85-C)............... A 3.500 2,500,000
8,100 San Francisco City and County
Redevelopment Agency
Multi-Family Housing Revenue
Bonds (Fillmore Center
Project-Series B-1)......... A 3.500 8,100,000
1,970 San Francisco City and County
Redevelopment Agency
Multi-Family Housing Revenue
Bonds (Rincon Center
Project-Series B)........... A 3.500 1,970,000
3,000 San Francisco City and County
Redevelopment Financing
Authority
(Yerba Buena Garden)........ A 3.900 3,000,000
4,000 San Francisco City and County
Unified School District Tax
and Revenue Anticipation
Notes....................... 09/22/99 4.500 4,030,965
4,700 San Jose Redevelopment Agency
Revenue Bonds
(Merged Area Redevelopment
Project-Series B)........... A 3.200 4,700,000
1,600 San Leandro Multi-Family (Haas
Avenue Apartments-Issue
B).......................... A 3.400 1,600,000
4,800 San Luis Coastal Unified
School District............. 08/25/99 4.000 4,815,592
2,450 San Luis Coastal Unified
School District
Tax and Revenue Anticipation
Notes....................... 08/25/99 4.000 2,457,958
1,400 Santa Ana Health Facility
Revenue Bonds (Multi-Modal
Town & Country)............. A 5.000 1,400,000
1,720 Santa Ana Housing Authority
Multi-Family Housing Revenue
Bonds
(Harbor Pointe
Apartments-Series A)........ A 3.400 1,720,000
3,500 Santa Barbara County Schools
Financing Authority Tax and
Revenue Anticipation
Notes....................... 06/30/99 4.500 3,513,798
2,938 Santa Clara County El Camino
Hospital District Hospital
Facilities Authority (Aces
Lease Valley Medical Center
Project-Series A)........... A 3.650 2,938,000
2,000 Santa Clara County Tax and
Revenue Anticipation
Notes....................... 10/01/99 4.500 2,019,145
19,100 Santa Clara Financing
Authority (VMC Facility
Replacement Project B)...... A 3.800 19,100,000
5,000 Santa Cruz County Board of
Education Tax Revenue
Anticipation Notes.......... 06/30/99 4.000 5,007,587
5,420 Simi Valley Public Financing
Authority................... A 3.700 5,420,000
5,000 Solano County Tax and Revenue
Anticipation Notes (Series
B).......................... 12/15/99 3.500 5,025,456
8,600 Southern Public Power
Authority Project Revenue
Bonds
(Palo Verde Project-Series
C).......................... A 3.650 8,600,000
6,000 Southern Public Power
Authority Transmission
Project Revenue Bonds
(Southern Transmission)..... A 2.900 to 3.850 6,000,000
</TABLE>
25
<PAGE>
PAINEWEBBER RMA CALIFORNIA MUNICIPAL MONEY FUND
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(000) MATURITY DATES INTEREST RATES VALUE
- ------------- -------------------- --------------------- --------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES (CONCLUDED)
$ 10,000 Ventura County (Series A29)... A 3.950 % $ 10,000,000
3,385 Visalia Public Financing
Authority Revenue Bonds
(Golf Course Improvement)... A 3.900 3,385,000
3,210 Westminster Certificates of
Participation
(Civic Center Project-Series
B).......................... A 3.850 3,210,000
4,485 Puerto Rico Commonwealth...... 07/01/99 5.500 4,523,630
7,000 Puerto Rico Commonwealth Tax
and Revenue Anticipation
Notes (Series A)............ 07/30/99 3.500 7,025,833
1,400 Puerto Rico Electric Power
Authority (Series P)........ 07/01/99 6.400 1,421,076
2,300 Puerto Rico Industrial Tourist
Educational, Medical &
Environmental Control
Facilities (Ana G. Mendez
University Systems
Project).................... A 3.600 2,300,000
--------------
Total Municipal Bonds and Notes
(cost--$530,708,401)......................... 530,708,401
--------------
TAX-EXEMPT COMMERCIAL PAPER--13.68%
13,100 California State General
Obligation.................. 02/05/99 to 03/08/99 2.850 13,100,000
6,500 California Educational
Facilities Authority
(Carnegie Institute of
Washington-Series B)........ 02/08/99 to 03/10/99 2.900 to 3.200 6,500,000
4,400 California Pollution Control
Financing Authority......... 01/11/99 2.900 4,400,000
3,100 California Pollution Control
Financing Authority
(Dow Chemical Company
Project).................... 01/20/99 to 02/09/99 2.700 to 2.800 3,100,000
3,600 Anaheim Electric Authority.... 02/01/99 3.200 3,600,000
2,900 East Bay Municipal Utility
District.................... 02/22/99 3.000 2,900,000
16,600 Los Angeles Department of
Water & Power............... 02/04/99 to 03/25/99 2.850 to 3.050 16,600,000
5,000 Metropolitan Water District of
Southern California......... 03/01/99 2.750 5,000,000
6,490 San Diego California Unified
Port Authority (Series B)... 02/18/99 to 03/09/99 2.750 to 2.850 6,490,000
7,000 San Diego Gas & Electric...... 01/29/99 to 02/22/99 2.750 to 3.200 7,000,000
5,000 San Diego Industrial
Development................. 01/22/99 to 02/12/99 2.900 to 3.100 5,000,000
10,320 Puerto Rico Commonwealth
Government Development
Bank........................ 01/21/99 to 03/05/99 2.800 to 3.000 10,320,000
--------------
Total-Tax Exempt Commercial Paper
(cost--$84,010,000).......................... 84,010,000
--------------
Total Investments (cost--$614,718,401 which
approximates cost for federal income tax
purposes)--100.13%........................... 614,718,401
Liabilities in excess of other
assets--(0.13)%.............................. (806,671)
--------------
Net Assets (applicable to 614,384,632 shares of
beneficial interest at $1.00 per
share)--100.00%.............................. $ 613,911,730
--------------
--------------
</TABLE>
- -----------------
A -- Variable Rate Demand Notes are payable on demand. The interest rates are
the current rates as of December 31, 1998.
Weighted average maturity--53 days
See accompanying notes to financial statements
26
<PAGE>
PAINEWEBBER RMA NEW YORK MUNICIPAL MONEY FUND
STATEMENT OF NET ASSETS DECEMBER 31, 1998(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(000) MATURITY DATES INTEREST RATES VALUE
- ------------- -------------------- ----------------- -------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES--88.24%
$ 6,580 New York State................ 11/01/99 to 11/15/99 6.700 to 7.800% $ 6,789,972
11,340 New York State Certificates of
Participation............... 02/01/99 to 09/01/99 4.000 to 6.250 11,376,444
1,650 New York State Dormitory
Authority (St University
Educational Series A)....... 05/15/99 7.125 1,705,091
2,900 New York State Dormitory
Authority (City University
3rd General Resources Series
2).......................... 07/01/99 4.000 2,902,469
6,432 New York State Dormitory
Authority (Metropolitan
Museum of Art).............. A 3.850 6,432,000
6,640 New York State Dormitory
Authority (New York Public
Library).................... A 3.800 6,640,000
1,000 New York State Dormitory
Authority (Refunding
Hospital Insured Mortgage
Series A)................... 02/16/99 4.750 1,001,394
1,800 New York State Dormitory
Authority (Rockefeller
University Series A)........ A 3.900 1,800,000
6,000 New York State Energy Research
& Development Authority
(Central Hudson Gas &
Electric)................... A 4.000 6,000,000
2,000 New York State Energy Research
& Development Authority
(LILCO) Adjustable Rate
Bonds....................... 03/01/99 3.580 2,000,000
9,500 New York State Energy Research
& Development Authority Gas
Facilities Revenue (Brooklyn
Union Gas Company).......... A 3.650 to 4.000 9,500,000
1,100 New York State Energy Research
& Development Authority
Pollution Control Revenue
(New York State Electric &
Gas)........................ A 5.050 1,100,000
5,400 New York State Energy Research
& Development Authority
Pollution Control Revenue
(Niagara Mohawk)............ A 3.650 to 3.800 5,400,000
15,300 New York State Energy Research
& Development Authority
Pollution Control Revenue
(Orange and Rockland Project
A).......................... A 3.800 15,300,000
13,900 New York State Energy Research
& Development Authority
Pollution Control Revenue
(Rochester Gas &
Electricity)................ A 3.800 13,900,000
3,900 New York State Housing Finance
Agency
(Mount Sinai Medical Center
Project).................... A 3.700 3,900,000
13,900 New York State Housing Finance
Agency (Normandie
Project).................... A 4.100 13,900,000
3,640 New York State Housing Finance
Agency Revenue
(Hospital Special Surgery
Staff)...................... A 3.700 3,640,000
10,200 New York State Local
Government Assistance
Corporation................. A 3.850 to 4.100 10,200,000
10,325 New York State Medical
Facilities Financing Agency
(Pooled Equipment Loan
Program).................... A 3.900 10,325,000
2,700 New York State Power
Adjustable Rate Bonds....... 03/01/99 3.600 2,700,000
1,595 New Thruway Authority Highway
& Bridge Series B........... 04/01/99 4.000 1,595,940
7,800 Port Authority of New York and
New Jersey.................. A 5.050 to 5.100 7,800,000
2,290 Albany Industrial Development
Agency (Vulcan Investors)... A 3.850 2,290,000
8,100 Babylon New York Industrial
Development Agency Resources
(Ogden Martin Project)...... A 3.800 8,100,000
5,000 Central Islip New York Union
Free School District Tax
Anticipation Notes.......... 06/30/99 4.000 5,005,934
2,000 Chemung County Industrial
Development Agency
(Arnot Ogden Medical
Center)..................... A 3.800 2,000,000
2,000 East Williston New York Union
Free School District Tax
Anticipation Notes.......... 06/23/99 3.750 2,003,035
4,850 Erie County Water Authority... A 3.800 4,850,000
1,620 Great Neck North Water
Authority Systems........... A 4.000 1,620,000
2,000 Huntington New York Union Free
School District Tax
Anticipation Notes.......... 06/29/99 4.000 2,004,296
2,150 Islip New York Bond
Anticipation Notes.......... 07/22/99 4.000 2,154,010
3,000 Long Island Power Authority
Series 6 & 7................ A 4.850 to 5.100 3,000,000
2,000 Longwood Central School
District at Middle Island
Tax Anticipation Notes...... 06/30/99 4.000 2,003,044
13,800 Metropolitan Transportation
Authority................... 02/10/99 to 03/25/99 2.900 to 3.050 13,800,000
</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>
$ 2,150 Monroe County Industrial
Development Agency Revenue
(Canal Ponds Park).......... A 3.650% $ 2,150,000
17,900 Municipal Assistance
Corporation for New York
City........................ A 3.800 17,900,000
1,150 Nassau County New York General
Improvement Series V........ 03/01/99 5.125 1,153,798
1,000 Nassau County New York
Industrial Development
Agency Civic Facility
(Winthrop University
Hospital Association)....... A 5.000 1,000,000
4,000 Nassau County New York Revenue
Anticipation Notes Series
A........................... 03/10/99 4.000 4,001,435
7,500 Nassau County New York Tax
Anticipation Notes Series
C........................... 12/22/99 3.500 7,528,230
4,600 New York City................. A 5.000 to 5.250 4,600,000
13,800 New York City Health and
Hospital Corporation Revenue
(Health Systems)............ A 3.950 13,800,000
4,450 New York City Housing
Development Corporation
(Columbus Gardens).......... A 4.000 4,450,000
1,500 New York City Housing
Development Corporation
(James Tower Project)....... A 3.800 1,500,000
2,550 New York City Housing
Development Corporation
(Upper Fifth Avenue
Project).................... A 3.250 2,550,000
2,900 New York City Industrial
Development Agency (Calhoun
School)..................... A 3.750 2,900,000
6,700 New York City Municipal Water
Finance Authority........... A 5.000 to 5.100 6,700,000
4,600 New York City Series B........ A 2.150 to 5.150 4,600,000
4,900 New York City Series D........ A 3.800 to 3.900 4,900,000
1,200 New York City Subseries A8.... A 3.600 1,200,000
10,100 New York City Transitional
Finance Authority Future Tax
Secured Series A & C........ A 2.900 to 5.100 10,100,000
1,050 New York City Transitional
Finance Authority Future Tax
Secured Series B............ 11/15/99 4.000 1,058,482
5,840 New York City Trust for
Cultural Resources
(American Museum of Natural
History).................... A 3.800 5,840,000
3,400 New York City Trust for
Cultural Resources (Carnegie
Hall)....................... A 3.750 3,400,000
2,000 New York City Trust for
Cultural Resources (Soloman
R Guggenheim)............... A 5.000 2,000,000
4,100 Niagara Falls Toll Bridge
Commission.................. A 3.800 4,100,000
3,100 Onondaga County Industrial
Development Agency
(Edgcomb Metals Company
Project).................... A 4.000 3,100,000
7,200 Oyster Bay New York Tax
Anticipation Notes.......... 01/29/99 4.000 7,201,874
3,000 Rome New York City School
District Revenue
Anticipation Notes.......... 06/30/99 4.000 3,001,849
5,600 Rotterdam Industrial
Development Agency
(Rotterdam Industrial Park
Project).................... A 3.950 5,600,000
3,500 Schenectady New York City
School District Revenue
Anticipation Notes.......... 06/30/99 3.750 3,506,612
1,470 Seneca County Industrial
Development Agency (N.Y.
Chiropractic College)....... A 3.700 1,470,000
4,730 South Glens Falls New York
Central School District
Revenue Anticipation
Notes....................... 06/30/99 4.000 4,735,598
5,000 South Huntington New York
Union Free School District
Tax Anticipation Notes...... 06/30/99 4.000 5,009,517
1,445 Suffolk County New York Public
Improvement Series A........ 06/15/99 5.000 1,457,352
16,965 Suffolk County Water Authority
Bond Anticipation Notes..... A 3.900 16,965,000
8,987 Yonkers Industrial Development
Agency (Consumers Union
Facility)................... A 4.000 8,987,000
-------------
Total Municipal Bonds and Notes
(cost--$363,205,376)......................... 363,205,376
-------------
TAX-EXEMPT COMMERCIAL PAPER--12.47%
4,500 New York State................ 03/09/99 to 03/11/99 3.000 4,500,000
6,000 New York State Dormitory
Authority................... 01/20/99 to 03/09/99 2.950 to 3.300 6,000,000
5,300 New York State Power
Authority................... 02/12/99 to 03/04/99 3.050 to 3.150 5,300,000
</TABLE>
28
<PAGE>
PAINEWEBBER RMA NEW YORK 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>
$ 1,500 New York City................. 02/05/99 3.000% $ 1,500,000
14,000 New York City Municipal Water
Finance Authority........... 01/21/99 to 02/08/99 3.050 to 3.350 14,000,000
10,000 Power Authority New York
Series 4.................... 02/05/99 to 03/08/99 2.850 to 3.100 10,000,000
10,050 Puerto Rico Commonwealth
Government Development
Bank........................ 01/12/99 to 01/25/99 2.850 to 3.000 10,050,000
-------------
Total Tax-Exempt Commercial Paper
(cost--$51,350,000).......................... 51,350,000
-------------
Total Investments (cost--$414,555,376 which
approximates cost for federal income tax
purposes)--100.71%........................... 414,555,376
Liabilities in excess of other
assets--(0.71)%.............................. (2,935,326)
-------------
Net Assets (applicable to 411,836,346 shares of
beneficial interest at $1.00 per
share)--100.00%.............................. $ 411,620,050
-------------
-------------
</TABLE>
- -----------------
A -- Variable Rate Demand Notes are payable on demand. The interest rates shown
are the current rates as of December 31, 1998 and reset periodically.
Weighted average maturity--45 days
See accompanying notes to financial statements
29
<PAGE>
PAINEWEBBER RMA NEW JERSEY MUNICIPAL MONEY FUND
STATEMENT OF NET ASSETS DECEMBER 31, 1998(UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(000) MATURITY DATES INTEREST RATES VALUE
- ------------- -------------------- ----------------- -------------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES--79.19%
$ 1,000 New Jersey State................... 09/15/99 6.250% $ 1,018,869
1,150 New Jersey State Highway Authority 01/01/99 7.250 1,173,000
Garden State Parkway General
Revenue..........................
2,000 New Jersey State Turnpike A 4.500 2,000,000
Authority........................
1,435 New Jersey State Turnpike Authority 01/07/99 3.200 1,463,524
Turnpike Revenue Series A........
840 New Jersey Building Authority 02/01/99 9.875 844,763
Revenue..........................
600 New Jersey Economic Development A 3.500 600,000
Authority (400 International
Drive Partners)..................
1,275 New Jersey Economic Development A 2.400 1,275,000
Authority (Brach/Jersey Avenue
Project).........................
1,815 New Jersey Economic Development A 3.600 1,815,000
Authority (Church and Dwight
Company Project).................
2,000 New Jersey Economic Development A 2.500 2,000,000
Authority (Curtiss Wright
Flight)..........................
2,000 New Jersey Economic Development A 3.200 2,000,000
Authority (El Dorado Terminals
Company) Dow Chemical............
1,900 New Jersey Economic Development A 3.600 1,900,000
Authority (Natural Gas)..........
500 New Jersey Economic Development A 3.000 500,000
Authority (Public Service
Electric & Gas Company)..........
350 New Jersey Economic Development A 3.300 350,000
Authority (St. James Prep Society
Service Project).................
200 New Jersey Economic Development A 3.700 200,000
Authority (W.Y. Plastic Products
Corporation Project).............
650 New Jersey Economic Development A 3.300 650,000
Authority Economic Development
Revenue-Danic Urban Renewal......
1,145 New Jersey Economic Development A 4.450 1,145,000
Authority Economic Development
Revenue Nash Group 1985
Project..........................
450 New Jersey Economic Development A 4.350 450,000
Authority Series G...............
1,000 New Jersey Economic Development A 3.850 1,000,000
Authority Thermal Energy
Facilities Revenue...............
1,000 New Jersey Economic Development A 4.050 1,000,000
Authority Natural Gas Facilities
Revenue..........................
500 New Jersey Economic Development A 3.700 500,000
Authority Natural Gas Facilities
Revenue (New Jersey Natural Gas
Company) Project Series B........
1,200 New Jersey Economic Development A 3.700 1,200,000
Authority Pollution Control
Revenue (Public Service Electric
and Gas Company A)...............
300 New Jersey Economic Development A 3.800 300,000
Authority Revenue (Hoffman La
Roche Incorporated Project)......
1,100 New Jersey Economic Development A 1.000 1,100,000
Authority Revenue (Foreign Trade
Zone Project)....................
885 New Jersey Economic Development A 3.150 885,000
Authority Revenue County Series
B................................
815 New Jersey Economic Development A 3.850 815,000
Authority Revenue County Series
D-1..............................
2,200 New Jersey Economic Development A 3.300 2,200,000
Authority Revenue Refunding
Stolthaven Project Series A......
1,250 New Jersey Economic Development 06/15/99 4.250 1,253,023
Authority Revenue Refunding
Trenton Office Complex...........
1,900 New Jersey Economic Development A 3.450 1,900,000
Authority Water Facilities
Revenue (Elizabethtown Water
Company Project A)...............
1,000 New Jersey Economic Development A 3.800 1,000,000
Authority Water Facilities
Revenue (Thermal Energy Limited
Partnership).....................
790 New Jersey Wastewater Treatment 04/01/99 5.750 794,063
Trust Loan Series B..............
</TABLE>
30
<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>
$ 400 Port Authority of New York and New A 3.250% $ 400,000
Jersey...........................
100 Port Authority of New York and New A 4.000 100,000
Jersey...........................
1,400 Port Authority of New York and New A 4.200 1,400,000
Jersey...........................
975 Bayonne............................ 05/01/99 5.800 983,560
1,150 Bergen County...................... 11/15/99 4.000 1,161,273
1,400 Essex County Improvement Authority A 3.100 1,400,000
Revenue (Pooled Governmental Loan
Program).........................
500 Essex County Refunding Series A.... 07/15/99 4.500 503,003
170 Freehold Borough................... 08/01/99 4.550 170,747
450 Jersey City Series A............... 03/01/99 4.750 450,778
225 Medford Township Refunding......... 09/01/99 4.200 226,163
1,000 Mercer County Improvement Authority A 3.850 1,000,000
Revenue (Atlantic Foundation &
Johnson).........................
450 Middlesex County .................. 7/15/99 4.375 451,692
200 Middlesex General Obligation 01/15/99 4.450 200,037
Bonds............................
985 Morris Township.................... 05/01/99 to 08/15/99 4.000 to 5.250 990,362
1,000 Newark Board of Education.......... 12/15/99 5.875 1,026,597
390 Paramus School District............ 05/03/99 3.850 391,318
200 Pennsauken Township................ 07/15/99 4.375 200,752
290 Roxbury Township New Jersey 08/01/99 4.600 291,474
Refunding........................
400 Salem County Pollution Control A 3.500 400,000
Financing (Atlantic City Electric
B)...............................
1,560 Somerset County New Jersey......... 12/01/99 4.375 1,579,191
1,000 South Jersey Transportation 11/03/99 2.950 1,000,000
Authority New Jersey Subordinated
Bond Anticipation Notes..........
1,149 Trenton New Jersey................. 09/15/99 4.000 to 4.375 1,155,907
700 Union County Pollution Control A 2.650 700,000
Finance Authority (Exxon
Corporation).....................
1,000 Woodbridge Township New Jersey Bond 07/30/99 4.000 1,002,279
Anticipation Notes...............
900 Puerto Rico Commonwealth Government A 3.800 900,000
Development Bank.................
-------------
Total Municipal Bonds and Notes
(cost--$51,417,375)............................... 51,417,375
-------------
TAX-EXEMPT COMMERCIAL PAPER--20.22%
2,900 New Jersey Economic Development 01/06/99 to 01/07/99 2.950 to 3.200 2,900,000
Authority Keystone...............
2,000 New Jersey State Educational 01/08/99 to 02/23/99 2.850 to 2.950 2,000,000
Facilities Authority
Economic Development Authority
Chambers Project.................
2,000 New Jersey State Educational 01/28/99 to 02/25/99 3.350 2,000,000
Facilities Authority Princeton
University.......................
4,000 New Jersey Tax and Revenue 02/05/99 to 03/10/99 2.950 4,000,000
Anticipation Notes-Tax Exempt
Commercial Paper Series 1997A....
1,030 Port Authority of New York and New 3/12/99 3.000 1,030,000
Jersey...........................
</TABLE>
31
<PAGE>
PAINEWEBBER RMA NEW JERSEY 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>
$ 1,200 Puerto Rico Commonwealth Government 01/25/99 to 03/08/99 2.900 to 2.950% $ 1,200,000
Development Bank.................
-------------
Total Tax Exempt Commercial Paper
(cost--$13,130,000)............................... 13,130,000
-------------
Total Investments (cost--$64,547,375 which
approximates cost for federal income tax
purposes)--99.41%................................. 64,547,375
Other assets in excess of liabilities--0.59%....... 379,831
-------------
Net Assets (applicable to 64,374,000 shares of
beneficial interest at $1.00 per
share)--100.00%................................... $ 64,927,206
-------------
-------------
</TABLE>
- ---------------
A -- Variable Rate Demand Notes are payable on demand. The interest rates are
the current rates as of December 31, 1998 and reset periodically.
Weighted average maturity--70 days
See accompanying notes to financial statements
32
<PAGE>
PAINEWEBBER
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
FOR THE SIX MONTHS ENDED DECEMBER 31, 1998 (UNAUDITED)
-----------------------------------------------------------------------------------
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..................................... $ 326,900,129 $ 34,574,353 $ 42,170,352 $ 9,282,264 $ 6,302,946 $ 939,816
------------- --------------- ------------ ----------- ----------- ----------
EXPENSES:
Investment advisory and administration....... 29,903,050 2,797,757 5,406,172 1,440,501 947,059 148,445
Transfer agency and related services fees.... 3,808,950 172,701 188,311 86,186 30,265 16,008
Federal and state registration............... 683,761 38,157 22,595 24,727 8,021 9,741
Custody and accounting....................... 590,526 66,567 99,855 31,462 10,154 3,909
Reports and notices to shareholders.......... 433,117 26,396 28,663 15,219 5,161 17,664
Legal and audit.............................. 215,466 38,704 30,099 51,095 15,510 26,128
Insurance.................................... 134,211 15,907 17,250 7,570 1,842 771
Director's/Trustees' fees.................... 5,250 5,250 5,250 5,250 5,250 5,250
Distribution fees............................ -- 834,913 1,562,074 383,454 243,274 35,627
Other expenses............................... 55,237 3,363 1,550 8,668 334 6,375
------------- --------------- ------------ ----------- ----------- ----------
35,829,568 3,999,715 7,361,819 2,054,132 1,266,870 269,918
------------- --------------- ------------ ----------- ----------- ----------
Net investment income........................ 291,070,561 30,574,638 34,808,533 7,228,132 5,036,076 669,898
NET REALIZED GAINS (LOSSES) FROM INVESTMENT
TRANSACTIONS............................... 668,005 -- 40,794 -- (6) (1)
------------- --------------- ------------ ----------- ----------- ----------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS................................. $ 291,738,566 $ 30,574,638 $ 34,849,327 $ 7,228,132 $ 5,036,070 $ 669,897
------------- --------------- ------------ ----------- ----------- ----------
------------- --------------- ------------ ----------- ----------- ----------
</TABLE>
See accompanying notes to financial statements
33
<PAGE>
PAINEWEBBER
STATEMENT OF CHANGES IN NET ASSESTS
<TABLE>
<CAPTION>
FOR THE
SIX MONTHS ENDED
DECEMBER 31, 1998 FOR THE YEAR ENDED
(UNAUDITED) JUNE 30, 1998
----------------- ------------------
<S> <C> <C>
PAINEWEBBER RMA MONEY MARKET PORTFOLIO
FROM OPERATIONS:
Net investment income.................... $ 291,070,561 $ 517,926,380
Net realized gain (loss) from investment
transactions........................... 668,005 (249,926)
----------------- ------------------
Net increase in net assets resulting from
operations............................. 291,738,566 517,676,454
----------------- ------------------
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income.................... (291,070,561) (517,926,380)
----------------- ------------------
Net increase in net assets from capital
share transactions..................... 1,094,599,409 2,462,420,689
----------------- ------------------
Net increase in net assets............... 1,095,267,414 2,462,170,763
NET ASSETS:
Beginning of period...................... 11,135,225,816 8,673,055,053
----------------- ------------------
End of period............................ $ 12,230,493,230 $ 11,135,225,816
----------------- ------------------
----------------- ------------------
PAINEWEBBER RMA U.S. GOVERNMENT PORTFOLIO
FROM OPERATIONS:
Net investment income.................... $ 30,574,638 $ 57,988,087
Net realized gain from investment
transactions........................... -- 30,199
----------------- ------------------
Net increase in net assets resulting from
operations............................. 30,574,638 58,018,286
----------------- ------------------
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income.................... (30,574,638) (57,988,087)
----------------- ------------------
Net increase in net assets from capital
share transactions..................... 204,807,889 95,678,845
----------------- ------------------
Net increase in net assets............... 204,807,889 95,709,044
NET ASSETS:
Beginning of period...................... 1,179,575,474 1,083,866,430
----------------- ------------------
End of period............................ $ 1,384,383,363 $ 1,179,575,474
----------------- ------------------
----------------- ------------------
PAINEWEBBER RMA TAX-FREE FUND, INC.
FROM OPERATIONS:
Net investment income.................... $ 34,808,533 $ 70,544,816
Net realized gains from investment
transactions........................... 40,794 83,532
----------------- ------------------
Net increase in net assets resulting from
operations............................. 34,849,327 70,628,348
----------------- ------------------
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income.................... (34,808,533) (70,544,816)
----------------- ------------------
Net increase in net assets from capital
share transactions..................... 81,278,552 205,965,855
----------------- ------------------
Net increase in net assets............... 81,319,346 206,049,387
NET ASSETS:
Beginning of period...................... 2,271,968,903 2,065,919,516
----------------- ------------------
End of period............................ $ 2,353,288,249 $ 2,271,968,903
----------------- ------------------
----------------- ------------------
</TABLE>
See accompanying notes to financial statements
34
<PAGE>
PAINEWEBBER
STATEMENT OF CHANGES IN NET ASSESTS (CONCLUDED)
<TABLE>
<CAPTION>
FOR THE
SIX MONTHS ENDED
DECEMBER 31, 1998 FOR THE YEAR ENDED
(UNAUDITED) JUNE 30, 1998
----------------- ------------------
<S> <C> <C>
PAINEWEBBER RMA CALIFORNIA MUNICIPAL
MONEY FUND
FROM OPERATIONS:
Net investment income.................... $ 7,228,132 $ 16,004,965
Net realized gain from investment
transactions........................... -- 22,739
----------------- ------------------
Net increase in net assets resulting from
operations............................. 7,228,132 16,027,704
----------------- ------------------
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income.................... (7,228,132) (16,004,965)
----------------- ------------------
Net increase in net assets from
beneficial interest transactions....... 46,954,458 74,019,188
----------------- ------------------
Net increase in net assets............... 46,954,458 74,041,927
NET ASSETS:
Beginning of period...................... 566,957,272 492,915,345
----------------- ------------------
End of period............................ $ 613,911,730 $ 566,957,272
----------------- ------------------
----------------- ------------------
PAINEWEBBER RMA NEW YORK MUNICIPAL MONEY
FUND
FROM OPERATIONS:
Net investment income.................... $ 5,036,076 $ 9,918,367
Net realized gain (loss) from investment
transactions........................... (6) 6,536
----------------- ------------------
Net increase in net assets resulting from
operations............................. 5,036,070 9,924,903
----------------- ------------------
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income.................... (5,036,076) (9,918,367)
----------------- ------------------
Net increase in net assets from
beneficial interest transactions....... 72,229,250 65,046,474
----------------- ------------------
Net increase in net assets............... 72,229,244 65,053,010
NET ASSETS:
Beginning of period...................... 339,390,806 274,337,796
----------------- ------------------
End of period............................ $ 411,620,050 $ 339,390,806
----------------- ------------------
----------------- ------------------
PAINEWEBBER RMA NEW JERSEY MUNICIPAL
MONEY FUND
FROM OPERATIONS:
Net investment income.................... $ 669,898 $ 1,555,392
Net realized losses from investment
transactions........................... (1) (111)
----------------- ------------------
Net increase in net assets resulting from
operations............................. 669,897 1,555,281
----------------- ------------------
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income.................... (669,898) (1,555,392)
----------------- ------------------
Net increase (decrease) in net assets
from beneficial interest
transactions........................... 16,647,817 (4,044,079)
----------------- ------------------
Net increase (decrease) in net assets.... 16,647,816 (4,044,190)
NET ASSETS:
Beginning of period...................... 48,279,390 52,323,580
----------------- ------------------
End of period............................ $ 64,927,206 $ 48,279,390
----------------- ------------------
----------------- ------------------
</TABLE>
See accompanying notes to financial statements
35
<PAGE>
NOTES TO FINANCIAL STATEMENTS(UNAUDITED)
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 Fund 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 Funds' 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 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.
36
<PAGE>
NOTES TO FINANCIAL STATEMENTS(UNAUDITED)
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 December 31, 1998, the Funds owed PaineWebber for investment advisory and
administration fees as follows:
<TABLE>
<S> <C>
Money Market Portfolio............................................. $ 5,418,437
U.S. Government Portfolio.......................................... 504,771
RMA Tax-Free....................................................... 927,746
RMA California..................................................... 250,601
RMA New York....................................................... 162,766
RMA New Jersey..................................................... 29,177
</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
37
<PAGE>
NOTES TO FINANCIAL STATEMENTS(UNAUDITED)
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 December 31,
1998, the Funds owed PaineWebber for such service fees as follows:
<TABLE>
<S> <C>
U.S. Government Portfolio............................................ $ 152,265
RMA Tax-Free......................................................... 269,052
RMA California....................................................... 66,850
RMA New York......................................................... 41,898
RMA New Jersey....................................................... 7,003
</TABLE>
TRANSFER AGENCY AND RELATED SERVICES FEES
PaineWebber provides transfer agency 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 six months
ended December 31, 1998, 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.................................................. 53%
U.S. Government Portfolio............................................... 51
RMA Tax-Free............................................................ 52
RMA California.......................................................... 51
RMA New York............................................................ 51
RMA New Jersey.......................................................... 59
</TABLE>
OTHER LIABILITIES
At December 31, 1998, the Funds had the following liabilities outstanding:
<TABLE>
<CAPTION>
PAYABLE FOR
DIVIDENDS INVESTMENTS
PAYABLE PURCHASED
------------ -------------
<S> <C> <C>
Money Market Portfolio............................. $ 24,306,285 $ 294,939,064
U.S. Government Portfolio.......................... 2,482,731 --
RMA Tax-Free....................................... 2,939,952 56,236,322
RMA California..................................... 655,167 3,455,000
RMA New York....................................... 450,682 4,600,000
RMA New Jersey..................................... 66,246 --
</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, each Fund
intends not to be subject to a federal excise tax.
38
<PAGE>
NOTES TO FINANCIAL STATEMENTS(UNAUDITED)
At June 30, 1998, the Funds' had capital loss carryforwards as follows:
<TABLE>
<S> <C>
Money Market Portfolio............................................. $ 2,778,904
RMA Tax-Free....................................................... 491,880
RMA California..................................................... 228,787
RMA New York....................................................... 83,150
RMA New Jersey..................................................... 4,626
</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, 1999 and June 30,
2004 for RMA Tax-Free and RMA California, between June 30, 1999 and June 30,
2003 for RMA New York, and between June 30, 2002 and June 30, 2005 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, 1998.
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 RMA Tax-Free.
Transactions in capital shares, at $1.00 per share, were as follows:
<TABLE>
<CAPTION>
FOR THE SIX MONTHS ENDED DECEMBER 31, 1998
---------------------------------------------------
MONEY MARKET U.S. GOVERNMENT RMA
PORTFOLIO PORTFOLIO TAX-FREE
--------------- ----------------- --------------
<S> <C> <C> <C>
Shares sold.......... 35,007,834,350 13,499,170,423 6,526,012,403
Shares repurchased... (34,194,071,582) (13,323,892,294) (6,478,451,884)
Dividends
reinvested......... 280,836,641 29,529,760 33,718,033
--------------- ----------------- --------------
Net increase in
shares
outstanding........ 1,094,599,409 204,807,889 81,278,552
--------------- ----------------- --------------
--------------- ----------------- --------------
</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>
39
<PAGE>
NOTES TO FINANCIAL STATEMENTS(UNAUDITED)
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 SIX MONTHS ENDED DECEMBER 31, 1998
--------------------------------------------
RMA RMA RMA
CALIFORNIA NEW YORK NEW JERSEY
-------------- -------------- ------------
<S> <C> <C> <C>
Shares sold....................... 1,581,581,334 1,142,941,606 195,081,425
Shares repurchased................ (1,541,631,484) (1,075,549,714) (179,066,021)
Dividends reinvested.............. 7,004,608 4,837,358 632,413
-------------- -------------- ------------
Net increase in shares
outstanding..................... 46,954,458 72,229,250 16,647,817
-------------- -------------- ------------
-------------- -------------- ------------
</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>
40
<PAGE>
PAINEWEBBER RMA MONEY MARKET PORTFOLIO
FINANCIAL HIGHLIGHTS
Selected data for a share of common stock outstanding throughout each period is
presented below:
<TABLE>
<CAPTION>
FOR THE
SIX MONTHS
ENDED
DECEMBER 31, FOR THE YEARS ENDED JUNE 30,
1998 --------------------------------------------------------------------------
(UNAUDITED) 1998 1997 1996 1995 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.............. 0.025 0.051 0.049 0.051 0.049 0.030
Dividends from net investment
income............................ (0.025) (0.051) (0.049) (0.051) (0.049) (0.030)
------------ ------------ ------------ ------------ ------------ ------------
Net asset value, end of period..... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------------ ------------ ------------ ------------ ------------ ------------
------------ ------------ ------------ ------------ ------------ ------------
Total investment return(1)......... 2.48% 5.21% 5.04% 5.25% 5.00% 2.95%
------------ ------------ ------------ ------------ ------------ ------------
------------ ------------ ------------ ------------ ------------ ------------
Ratios/Supplemental Data:
Net assets, end of period
(000's)........................... $12,230,493 $ 11,135,226 $ 8,673,055 $ 7,522,612 $ 5,398,146 $ 4,337,009
Expenses to average net assets..... 0.60%* 0.60% 0.59% 0.60%(2) 0.59% 0.59%
Net investment income to average
net assets........................ 4.87%* 5.09% 4.94% 5.14%(2) 4.91% 2.98%
</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 return
for period of less than one year has not been annualized.
(2) These ratios include non-recurring acquisition expenses of 0.01%.
41
<PAGE>
PAINEWEBBER RMA U.S. GOVERNMENT PORTFOLIO
FINANCIAL HIGHLIGHTS
Selected data for a share of common stock outstanding throughout each period is
presented below:
<TABLE>
<CAPTION>
FOR THE
SIX MONTHS
ENDED
DECEMBER FOR THE YEARS ENDED JUNE 30,
31, 1998 ---------------------------------------------------------------------
(UNAUDITED) 1998 1997 1996 1995 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.............. 0.023 0.049 0.048 0.049 0.046 0.027
Dividends from net investment
income........................... (0.023) (0.049) (0.048) (0.049) (0.046) (0.027)
----------- ----------- ----------- ----------- ----------- -----------
Net asset value, end of period..... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
----------- ----------- ----------- ----------- ----------- -----------
----------- ----------- ----------- ----------- ----------- -----------
Total investment return(1)......... 2.34% 5.05% 4.88% 5.04% 4.67% 2.74%
----------- ----------- ----------- ----------- ----------- -----------
----------- ----------- ----------- ----------- ----------- -----------
Ratios/Supplement Data:
Net assets, end of period
(000's)........................... $1,384,383 $ 1,179,575 $ 1,083,866 $ 1,137,510 $ 815,781 $ 854,928
Expenses to average net assets..... 0.60%* 0.57% 0.62% 0.65%(2) 0.63% 0.62%
Net investment income to average
net assets....................... 4.58%* 4.93% 4.78% 4.91%(2) 4.55% 2.75%
</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 return
for period of less than one year has not been annualized.
(2) These ratios include non-recurring acquisition expenses of 0.02%.
42
<PAGE>
PAINEWEBBER RMA TAX-FREE FUND, INC.
FINANCIAL HIGHLIGHTS
Selected data for a share of common stock outstanding throughout each period is
presented below:
<TABLE>
<CAPTION>
FOR THE
SIX MONTHS ENDED FOR THE YEARS ENDED JUNE 30,
DECEMBER 31, 1998 -------------------------------------------------------------------------
(UNAUDITED) 1998 1997 1996 1995 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......... 0.014 0.031 0.029 0.030 0.030 0.019
Dividends from net investment
income...................... (0.014) (0.031) (0.029) (0.030) (0.030) (0.019)
----------------- ----------- ----------- ----------- ----------- -----------
Net asset value, end of
period...................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
----------------- ----------- ----------- ----------- ----------- -----------
----------------- ----------- ----------- ----------- ----------- -----------
Total investment return(1).... 1.41% 3.10% 2.98% 3.09% 3.03% 1.88%
----------------- ----------- ----------- ----------- ----------- -----------
----------------- ----------- ----------- ----------- ----------- -----------
Ratios/Supplemental Data:
Net assets, end of period
(000's)..................... $ 2,353,288 $ 2,271,969 $ 2,065,920 $ 2,013,448 $ 1,562,040 $ 1,427,724
Expenses to average net
assets...................... 0.59%* 0.58% 0.61% 0.61%(2) 0.63% 0.64%
Net investment income to
average net assets.......... 2.79%* 3.06% 2.94% 3.02%(2) 3.00% 1.90%
</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 return
for period of less than one year has not been annualized.
(2) These ratios include non-recurring acquisition expenses of 0.01%.
43
<PAGE>
PAINEWEBBER RMA CALIFORNIA MUNICIPAL MONEY FUND
FINANCIAL HIGHLIGHTS
Selected data for a share of beneficial interest outstanding throughout each
period is presented below:
<TABLE>
<CAPTION>
FOR THE
SIX MONTHS
ENDED
DECEMBER FOR THE YEARS ENDED JUNE 30,
31, 1998 -------------------------------------------------------------------
(UNAUDITED) 1998 1997 1996 1995 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.............. 0.012 0.028 0.028 0.029 0.029 0.018
Dividends from net investment
income........................... (0.012) (0.028) (0.028) (0.029) (0.029) (0.018)
----------- ----------- ----------- ----------- ----------- -----------
Net asset value, end of period..... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
----------- ----------- ----------- ----------- ----------- -----------
----------- ----------- ----------- ----------- ----------- -----------
Total investment return(1)......... 1.19% 2.87% 2.87% 2.89% 2.91% 1.78%
----------- ----------- ----------- ----------- ----------- -----------
----------- ----------- ----------- ----------- ----------- -----------
Ratios/Supplemental Data:
Net assets, end of period
(000's).......................... $ 613,912 $ 566,957 $ 492,915 $ 473,726 $ 330,937 $ 295,183
Expenses to average net assets..... 0.67%* 0.65% 0.62% 0.70%(2) 0.69% 0.69%
Net investment income to average
net assets....................... 2.36%* 2.83% 2.83% 2.82%(2) 2.87% 1.79%
</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 return
for period of less than one year has not been annualized.
(2) These ratios include non-recurring acquisition expenses of 0.03%.
44
<PAGE>
PAINEWEBBER RMA NEW YORK MUNICIPAL MONEY FUND
FINANCIAL HIGHLIGHTS
Selected data for a share of beneficial interest outstanding throughout each
period is presented below:
<TABLE>
<CAPTION>
FOR THE
SIX MONTHS ENDED FOR THE YEARS ENDED JUNE 30,
DECEMBER 31, 1998 ---------------------------------------------------------------
(UNAUDITED) 1998 1997 1996 1995 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................... 0.013 0.029 0.028 0.029 0.028 0.017
Dividends from net investment income.... (0.013) (0.029) (0.028) (0.029) (0.028) (0.017)
----------------- --------- --------- --------- --------- ---------
Net asset value, end of period.......... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
----------------- --------- --------- --------- --------- ---------
----------------- --------- --------- --------- --------- ---------
Total investment return(1).............. 1.31% 2.97% 2.85% 2.91% 2.81% 1.70%
----------------- --------- --------- --------- --------- ---------
----------------- --------- --------- --------- --------- ---------
Ratios/Supplemental Data:
Net assets, end of period (000's)....... $ 411,620 $ 339,391 $ 274,338 $ 255,177 $ 192,799 $ 165,111
Expenses to average net assets before
waiver from adviser................... 0.65%* 0.65% 0.77% 0.74%(2) 0.71% 0.75%
Expenses to average net assets after
waiver from adviser................... 0.65%* 0.65% 0.67% 0.72%(2) 0.68% 0.68%
Net investment income to average net
assets before waiver from adviser..... 2.59%* 2.92% 2.71% 2.80%(2) 2.78% 1.67%
Net investment income to average net
assets after waiver from adviser...... 2.59%* 2.92% 2.81% 2.82%(2) 2.81% 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 return
for period of less than one year has not been annualized.
(2) These ratios include non-recurring acquisition expenses of 0.04%.
45
<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 FOR THE YEARS MONTHS ENDED FOR THE YEARS ENDED OCTOBER
SIX MONTHS ENDED ENDED JUNE 30, JUNE 30, 31,
DECEMBER 31, 1998 ------------------ ------------ ----------------------------
(UNAUDITED) 1998 1997 1996 1995(2) 1994 1993
----------------- -------- -------- ------------ -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period.... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- ------------ -------- -------- --------
Net investment income................... 0.011 0.026 0.026 0.017 0.027 0.018 0.016
Dividends from net investment income.... (0.011) (0.026) (0.026) (0.017) (0.027) (0.018) (0.016)
-------- -------- -------- ------------ -------- -------- --------
Net asset value, end of period.......... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- ------------ -------- -------- --------
-------- -------- -------- ------------ -------- -------- --------
Total investment return(1).............. 1.14% 2.67% 2.65% 1.71% 2.75% 1.76% 1.65%
-------- -------- -------- ------------ -------- -------- --------
-------- -------- -------- ------------ -------- -------- --------
Ratios/Supplemental Data:
Net assets, end of period (000's)....... $ 64,927 $ 48,279 $ 52,324 $ 42,233 $ 36,206 $ 31,981 $ 38,473
Expenses to average net assets.......... 0.91%* 0.85% 0.81% 0.95%* 0.93% 0.85% 0.93%
Net investment income to average net
assets................................ 2.26%* 2.64% 2.63% 2.56%* 2.73% 1.74% 1.63%
</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.
46
<PAGE>
- -----------------------------------------------------------------------------
DIRECTORS/TRUSTEES
E. Garrett Bewkes, Jr. Mary C. Farrell
CHAIRMAN
Meyer Feldberg
Margo N. Alexander
George W. Gowen
Richard Q. Armstrong
Frederic V. Malek
Richard R. Burt
Carl W. Schafer
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
THE FINANCIAL INFORMATION INCLUDED HEREIN IS TAKEN FROM THE RECORDS OF THE
FUNDS WITHOUT EXAMINATION BY INDEPENDENT AUDITORS WHO DO NOT EXPRESS AN
OPINION THEREON.
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>
PaineWebber
-------------------------
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
PaineWebber
- -Copyright- 1999 PaineWebber Incorporated
Member SIPC
DECEMBER 31, 1998
SEMIANNUAL REPORT
