<PAGE>
RMA MONEY MARKET FUNDS SEMIANNUAL REPORT
Dear Shareholder, February 15, 2000
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, 1999.
MARKET REVIEW
- --------------------------------------------------------------------------------
[ICON] Interest rates remained under pressure during the period, as the economy
continued to expand more briskly than anticipated. Economic activity showed no
signs of abating through year-end. The Federal Reserve (the Fed) twice raised
the Fed Funds rate by 25 basis points (bps; a basis point equals one
one-hundredth of one percent). Combined with a 25 bps increase earlier in 1999,
the two rate increases during the period completed the reversal of the 75 bps
reduction engineered in 1998 to combat the global financial crisis. By year-end,
the 30-year Treasury bond's yield had increased to 6.48%, just below its
two-year high of 6.49% and finishing the year with its worst annual price
performance ever. At the same time, short-term rates rose significantly, with
90-day T-bills moving from a yield equivalent of 4.76% at the beginning of the
period to a yield of 5.31% at its close.
PORTFOLIO REVIEW
- --------------------------------------------------------------------------------
PERFORMANCE AND CHARACTERISTICS, DECEMBER 31, 1999*
<TABLE>
<CAPTION>
7-Day Weighted
Current Avg. AMT
Yield Maturity Net Assets Holdings
- ---------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
PaineWebber RMA Money Market Portfolio 5.12% 43 days $14.5 billion None
PaineWebber RMA U.S. Government Portfolio 4.36% 24 days $1.5 billion None
PaineWebber RMA Tax-Free Fund, Inc. 3.75% 39 days $2.6 billion None
PaineWebber RMA California Municipal Money Fund 3.31% 51 days $645.0 million None
PaineWebber RMA New York Municipal Money Fund 3.62% 45 days $399.6 million None
PaineWebber RMA New Jersey Municipal Money Fund 3.38% 37 days $108.6 million None
- ---------------------------------------------------------------------------------------------------
</TABLE>
* Yields will vary. The Funds are actively managed and their composition will
vary over time.
1
<PAGE>
SEMIANNUAL REPORT
During the six-month period we kept the Funds' weighted average maturities
below their peer-group averages in anticipation of further Fed increases. The
Funds' below-average positions helped returns as interest rates rose. We
maintained our focus on top-tier credit quality instruments.
OUTLOOK
- --------------------------------------------------------------------------------
With the evidence suggesting that Y2K-related problems have been avoided, we
think the Fed will focus initially on its near-term chore of mopping up the
flood of liquidity it provided to the banking system ahead of the year-end
changeover. Beyond that, however, is the more enduring question of how much
growth the economy can enjoy without re-igniting inflation. While sympathetic to
the argument for a new, inflation-free economy driven by productivity gains and
excess capacity, the Fed remains cautious. Interest rates appear headed higher,
with unemployment at 30-year lows, consumer confidence near record highs, equity
markets ebullient, and economic expansion underway around much of the globe.
At its most recent Open Market Committee meeting in February the Fed again
raised rates by 25 bps. We expect an active Fed and rising rates across the
yield curve in the first half of 2000. We look for moderating economic growth in
the second half of the year, and believe interest rates will recede in response
to slowing growth and the absence of real inflationary pressure. As always, we
intend to maintain the Funds' emphasis on liquidity and high-quality
instruments.
2
<PAGE>
RMA MONEY MARKET FUNDS 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 a
fund in the PaineWebber Family of Funds,(1) please contact your Financial
Advisor.
Sincerely,
/s/ Margo Alexander /s/ Brian M. Storms /s/ Dennis L. McCauley
MARGO ALEXANDER BRIAN M. STORMS DENNIS L. MCCAULEY
Chairman and President and Chief Investment Officer -
Chief Executive Officer Chief Operating Officer Fixed Income
Mitchell Hutchins Mitchell Hutchins Mitchell Hutchins Asset
Asset Management Inc. Asset Management Inc. Management Inc.
/s/ Susan P. Ryan /s/ Elbridge T. Gerry, III
SUSAN P. RYAN ELBRIDGE T. GERRY, III
Portfolio Manager Portfolio Manager
PaineWebber PaineWebber Tax-Free Fund, Inc.
RMA Money Market Portfolio
PaineWebber RMA
U.S. Government Portfolio
This letter is intended to assist shareholders in understanding how the
Funds performed during the six-month period ended December 31, 1999, and
reflects our views at the time of its writing. Of course, these views may change
in response to changing circumstances. We encourage you to consult your
Financial Advisor regarding your personal investment program.
(1) Mutual funds are sold by prospectus only. The prospectuses for the funds
contain more complete information regarding risks, charges and expenses,
and should be read carefully before investing.
3
<PAGE>
PAINEWEBBER RMA MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS DECEMBER 31, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(000) MATURITY DATES INTEREST RATES VALUE
- ---------- -------------------- --------------- ---------
<S> <C> <C> <C>
U.S. GOVERNMENT AND AGENCY OBLIGATIONS--21.27%
$ 629,200 U.S. Treasury Bills ........................................ 01/06/00 to 10/12/00 4.240 to 5.375% $ 623,481,780
145,000 Federal Farm Credit Bank ................................... 01/03/00 to 01/04/00 5.550 to 5.925* 144,979,379
363,750 Federal Home Loan Bank ..................................... 01/03/00 to 01/12/00 4.970 to 6.311* 363,671,385
290,000 Federal Home Loan Bank ..................................... 01/19/00 to 08/23/00 4.850 to 5.810 290,000,000
473,660 Federal Home Loan Mortgage Corporation ..................... 01/20/00 to 03/16/00 5.360 to 5.580 470,892,328
86,000 Federal Home Loan Mortgage Corporation ..................... 01/04/00 5.963* 86,008,702
240,000 Federal National Mortgage Association ...................... 01/20/00 to 03/16/00 5.360 to 5.530@ 238,841,240
30,000 Federal National Mortgage Association ...................... 02/23/00 to 05/26/00 5.040 to 5.670 30,032,646
782,400 Student Loan Marketing Association ......................... 01/04/00 to 02/25/00 5.560 to 6.133* 782,343,172
58,000 Student Loan Marketing Association ......................... 01/14/00 to 02/11/00 5.000 to 5.050 58,000,000
--------------
Total U.S. Government and Agency Obligations (cost--$3,088,250,632) .... 3,088,250,632
--------------
BANK NOTES--5.94%
DOMESTIC--5.52%
50,000 Bank One N.A. .............................................. 01/24/00 6.159* 49,963,238
42,000 Comerica Bank, N.A., Detroit ............................... 01/03/00 5.640* 41,994,635
30,000 First National Bank N.A., Chicago .......................... 01/13/00 5.380* 29,995,008
9,700 First National Bank N.A., Chicago .......................... 03/15/00 5.180 9,698,864
180,000 First Tennessee Bank N.A., Memphis ......................... 01/03/00 to 01/04/00 5.675 to 6.023* 180,000,000
99,700 First Tennessee Bank N.A., Memphis ......................... 01/14/00 to 04/12/00 5.100 to 5.210@ 99,700,000
68,466 Greenwood Trust Company .................................... 01/12/00 to 01/28/00 6.050 to 6.170 68,466,000
52,700 Harris Trust & Savings Bank ................................ 01/24/00 to 02/01/00 5.000 to 5.020 52,703,809
268,700 LaSalle National Bank ...................................... 01/25/00 to 07/21/00 4.940 to 5.690 268,686,498
--------------
801,208,052
--------------
YANKEE--0.42%
62,000 Westpac Banking Corporation ................................ 03/01/00 5.200 61,994,716
--------------
Total Bank Notes (cost--$863,202,768) .................................. 863,202,768
--------------
CERTIFICATES OF DEPOSIT--13.30%
DOMESTIC--0.17%
25,000 Harris Trust & Savings Bank ................................ 02/14/00 5.050 24,999,709
--------------
YANKEE--13.13%
75,000 ABN AMRO Bank N.V. ......................................... 02/14/00 to 04/28/00 5.045 to 5.120 74,982,150
34,000 Bank Of Nova Scotia ........................................ 01/14/00 5.050 33,999,883
123,600 Barclays Bank PLC .......................................... 01/10/00 to 03/01/00 4.980 to 5.230 123,602,543
130,000 Barclays Bank PLC .......................................... 01/03/00 5.640* 129,979,719
99,000 Bayerische Hypo und Vereinsbank AG ......................... 04/28/00 to 07/12/00 5.150 to 5.710 98,982,056
97,900 Canadian Imperial Bank of Commerce ......................... 02/23/00 to 04/12/00 5.100 to 5.195 97,897,917
45,000 Commerzbank AG ............................................. 07/20/00 5.670 44,992,876
100,000 Deutsche Bank AG ........................................... 04/04/00 5.820 100,005,143
126,000 National Westminster Bank PLC .............................. 01/10/00 to 07/03/00 4.980 to 5.530 125,993,984
107,000 Rabobank Nederland ......................................... 02/07/00 to 04/12/00 4.990 to 5.140 106,991,358
38,000 Royal Bank of Canada ....................................... 03/31/00 5.515 37,996,845
4
<PAGE>
PAINEWEBBER RMA MONEY MARKET PORTFOLIO
<CAPTION>
PRINCIPAL
AMOUNT
(000) MATURITY DATES INTEREST RATES VALUE
- ---------- -------------------- --------------- ---------
<S> <C> <C> <C>
CERTIFICATES OF DEPOSIT--(CONCLUDED)
YANKEE--(CONCLUDED)
$ 95,000 Royal Bank of Canada ....................................... 01/03/00 5.640 to 5.645%* $ 94,988,155
75,000 San Paolo IMI SPA .......................................... 01/10/00 6.105 75,000,277
50,000 Societe Generale ........................................... 04/03/00 5.830 50,002,545
330,300 Svenska Handelsbanken Incorporated ......................... 01/18/00 to 05/22/00 4.980 to 6.070 330,286,297
185,000 Toronto-Dominion Bank ...................................... 01/07/00 to 04/17/00 4.990 to 5.310 184,989,091
50,000 Toronto-Dominion Bank ...................................... 01/03/00 5.635* 49,992,488
50,000 UBS AG ..................................................... 12/01/00 6.200 49,978,126
94,700 Westpac Banking Corporation ................................ 03/17/00 to 03/31/00 5.165 to 5.175 94,695,890
--------------
1,905,357,343
--------------
Total Certificates of Deposit (cost--$1,930,357,052) ................... 1,930,357,052
--------------
COMMERCIAL [email protected]%
Asset Backed-Auto & Truck--1.86%
270,000 New Center Asset Trust ..................................... 01/03/00 5.000 269,925,000
--------------
ASSET BACKED-BANKING--4.52%
421,216 Atlantis One Funding Corporation ........................... 01/25/00 to 03/24/00 5.770 to 6.020 418,076,702
239,287 Woodstreet Funding Corporation ............................. 01/07/00 to 03/20/00 5.850 to 6.750 237,978,040
--------------
656,054,742
--------------
ASSET BACKED-MISCELLANEOUS--15.40%
68,000 Asset Securitization Cooperative Corporation ............... 01/14/00 6.513* 68,000,000
240,702 Delaware Funding Corporation ............................... 02/02/00 to 02/25/00 5.850 to 6.120 239,056,977
84,131 Enterprise Funding Corporation ............................. 01/13/00 to 03/10/00 5.800 to 6.450 83,811,851
452,790 Falcon Asset Securitization Corporation .................... 01/12/00 to 03/07/00 5.880 to 6.650 450,823,127
190,223 Parthenon Receivables Funding LLC .......................... 01/18/00 to 03/22/00 5.710 to 6.150 189,191,599
458,581 Preferred Receivables Funding Corporation .................. 01/18/00 to 02/29/00 5.500 to 6.150 456,078,146
111,222 Quincy Capital Corporation ................................. 01/13/00 to 02/11/00 5.960 to 6.300 110,703,723
238,285 Receivables Capital Corporation ............................ 01/19/00 to 02/24/00 5.880 to 6.250 237,111,348
258,847 Triple-A One Funding Corporation ........................... 01/06/00 to 01/21/00 6.150 to 7.000 258,400,072
143,000 Variable Funding Capital Corporation ....................... 01/12/00 to 02/16/00 5.900 to 6.170 142,354,573
--------------
2,235,531,416
--------------
AUTO & TRUCK--2.12%
100,000 Ford Motor Credit Corporation .............................. 01/20/00 5.490 99,710,250
100,000 General Motors Acceptance Corporation ...................... 01/03/00 5.000 99,972,222
107,785 PACCAR Financial Corporation ............................... 01/13/00 to 02/02/00 5.850 to 6.400 107,338,125
--------------
307,020,597
--------------
BANKING-DOMESTIC--5.74%
50,000 Abbey National North America ............................... 01/04/00 12.000 49,950,000
110,000 BBL North America Funding Corporation ...................... 03/10/00 to 03/17/00 5.910 to 6.020 108,926,364
70,000 CBA (Delaware) Finance Incorporated ........................ 02/22/00 to 03/03/00 5.840 to 5.920 69,321,511
90,000 Cregem North America Incorporated .......................... 01/18/00 to 03/10/00 5.910 to 6.300 89,398,150
84,000 Den Denske Corporation ..................................... 05/31/00 to 06/30/00 5.770 to 5.820 81,678,102
40,000 Dexia CLF Finance Company .................................. 03/10/00 5.970 39,542,300
5
<PAGE>
PAINEWEBBER RMA MONEY MARKET PORTFOLIO
<CAPTION>
PRINCIPAL
AMOUNT
(000) MATURITY DATES INTEREST RATES VALUE
- ---------- -------------------- --------------- ---------
<S> <C> <C> <C>
COMMERCIAL PAPER@--(CONTINUED)
BANKING-DOMESTIC--(CONCLUDED)
$ 49,000 Fortis Funding LLC ......................................... 03/06/00 5.910% $ 48,477,129
50,000 Morgan (J.P.) & Company Incorporated ....................... 02/04/00 5.940 49,719,500
200,000 Westpac Capital Corporation ................................ 01/28/00 to 05/10/00 5.700 to 6.040 197,178,903
100,000 Westpac Trust Securities ................................... 02/07/00 to 05/17/00 5.750 to 5.890 98,603,222
--------------
832,795,181
--------------
BANKING-FOREIGN--1.91%
160,000 Alliance & Leicester PLC ................................... 01/10/00 to 05/08/00 5.820 to 5.940 158,199,433
120,000 Banque et Caisse d'Epargne de L'Etat ....................... 01/27/00 to 02/08/00 5.850 to 6.010 119,332,378
--------------
277,531,811
--------------
BROKER-DEALER--7.72%
150,000 Bear Stearns Companies Incorporated ........................ 02/29/00 to 03/14/00 5.940 to 5.980 148,420,194
366,000 Goldman Sachs Group Incorporated ........................... 01/12/00 to 02/29/00 6.000 to 6.260 363,156,271
155,000 Merril Lynch & Company Incorporated ........................ 01/21/00 to 02/29/00 5.940 to 5.950 154,134,020
190,000 Morgan Stanley, Dean Witter & Company ...................... 01/11/00 to 02/03/00 5.770 to 6.030 189,372,358
265,000 Morgan Stanley, Dean Witter & Company ...................... 01/03/00 5.080 to 5.230* 265,000,000
--------------
1,120,082,843
--------------
CONSUMER PRODUCTS--0.92%
50,000 Gillette Company ........................................... 01/04/00 6.650 49,972,291
84,000 Procter & Gamble Company ................................... 01/31/00 to 02/04/00 5.900 83,573,889
--------------
133,546,180
--------------
DRUGS, HEALTH CARE--1.41%
25,000 Bayer Corporation .......................................... 01/27/00 5.950 24,892,570
45,900 Glaxo Wellcome PLC ......................................... 02/18/00 5.890 45,539,532
135,300 Pfizer Incorporated ........................................ 01/21/00 to 03/01/00 5.740 to 5.880 134,403,993
--------------
204,836,095
--------------
ELECTRONICS--0.30%
23,900 Motorola Credit Corporation ................................ 02/11/00 5.810 23,741,855
20,000 Motorola Incorporated ...................................... 02/17/00 5.820 19,848,033
--------------
43,589,888
--------------
ENERGY--1.30%
100,000 Exxon Asset Management Company ............................. 01/11/00 to 01/24/00 5.990 to 6.450 99,719,069
50,000 Exxon Imperial U.S. Incorporated ........................... 01/19/00 6.250 49,843,750
40,000 Texaco Incorporated ........................................ 02/24/00 5.800 39,652,000
--------------
189,214,819
--------------
FINANCE-CONDUIT--3.49%
30,000 MetLife Funding Incorporated ............................... 02/17/00 6.080 29,761,866
100,000 Toronto-Dominion Holdings USA Incorporated ................. 01/12/00 to 01/24/00 6.340 to 6.600 99,696,639
377,478 UBS Finance (Delaware) LLC ................................. 01/03/00 to 01/04/00 5.000 377,359,256
--------------
506,817,761
--------------
6
<PAGE>
PAINEWEBBER RMA MONEY MARKET PORTFOLIO
<CAPTION>
PRINCIPAL
AMOUNT
(000) MATURITY DATES INTEREST RATES VALUE
- ---------- -------------------- --------------- ---------
<S> <C> <C> <C>
COMMERCIAL PAPER@--(CONCLUDED)
FINANCE-SUBSIDIARY--1.72%
$ 25,000 Deutsche Bank Financial Incorporated ....................... 01/12/00 5.950% $ 24,954,549
100,000 Dresdner U.S. Finance ...................................... 01/07/00 to 01/10/00 6.230 to 6.330 99,869,375
124,873 National Australia Funding (Delaware) Incorporated ......... 01/21/00 to 02/01/00 5.970 to 6.400 124,288,887
--------------
249,112,811
--------------
FOOD, BEVERAGE & TOBACCO--0.99%
20,000 Campbell Soup Company ...................................... 02/04/00 5.810 19,890,256
50,000 Diageo Capital PLC ......................................... 02/03/00 5.910 49,729,125
75,000 Sara Lee Corporation ....................................... 01/24/00 to 01/27/00 5.870 to 6.250 74,694,361
--------------
144,313,742
--------------
INSURANCE--0.34%
20,000 Allstate Corporation ....................................... 02/11/00 5.970 19,864,017
30,000 USAA Capital Corporation ................................... 01/26/00 6.000 29,875,000
--------------
49,739,017
--------------
MACHINERY--0.21%
30,280 Caterpillar Financial Services ............................. 02/03/00 5.900 30,116,236
--------------
MANUFACTURING-DIVERSIFIED--0.08%
12,000 Allied Signal Incorporated ................................. 01/25/00 5.920 11,952,640
--------------
METALS & MINING--0.33%
48,160 Rio Tinto America Incorporated ............................. 02/07/00 5.930 47,866,478
--------------
OIL EQUIPMENT & SERVICES--0.07%
10,850 Colonial Pipeline Company .................................. 01/28/00 5.900 10,801,989
--------------
PAPER & FOREST PRODUCTS--0.54%
78,000 Weyerhaeuser Real Estate Company ........................... 01/19/00 to 01/28/00 5.850 to 6.400 77,668,725
--------------
TELECOMMUNICATIONS--2.77%
25,200 American Telephone & Telegraph ............................. 01/18/00 6.000 25,128,600
57,535 Bell Atlantic Financial Services, Incorporated ............. 01/18/00 to 01/24/00 5.980 57,352,594
10,000 Bell Atlantic Network Funding Corporation .................. 02/03/00 5.900 9,945,917
288,150 BellSouth Capital Funding Corporation ...................... 02/08/00 to 03/14/00 5.750 to 6.050 285,767,274
25,000 Lucent Technologies Incorporated ........................... 05/04/00 5.750 24,504,861
--------------
402,699,246
--------------
UTILITY-ELECTRIC--1.43%
208,897 Southern Company ........................................... 01/25/00 to 02/10/00 5.820 to 6.400 207,624,100
--------------
Total Commercial Paper (cost--$8,008,841,317) .......................... 8,008,841,317
--------------
7
<PAGE>
PAINEWEBBER RMA MONEY MARKET PORTFOLIO
<CAPTION>
PRINCIPAL
AMOUNT
(000) MATURITY DATES INTEREST RATES VALUE
- ---------- -------------------- --------------- ---------
<S> <C> <C> <C>
SHORT-TERM CORPORATE OBLIGATIONS--0.86%
AUTO & TRUCK--0.34%
$ 50,000 Ford Motor Credit Corporation .............................. 01/03/00 5.740%* $ 49,975,532
---------------
BROKER-DEALER--0.17%
25,000 Morgan Stanley, Dean Witter & Company ...................... 04/24/00 5.875 25,012,286
---------------
FINANCE-DIVERSIFIED--0.35%
50,000 Associates Corporation of North America .................... 01/31/00 6.410* 49,985,197
---------------
Total Short-Term Corporate Obligations (cost--$124,973,015) ............ 124,973,015
---------------
<CAPTION>
NUMBER OF
SHARES
(000)
- -----------
<S> <C>
MUTUAL FUNDS--2.85%
103,842 AIM Liquid Assets Portfolio ................................ 103,841,719
310,137 AIM Prime Portfolio ........................................ 310,136,825
---------------
Total Mutual Funds (cost--$413,978,544) ................................ 413,978,544
---------------
Total Investments (cost--$14,429,603,328 which approximates
cost for federal income tax purposes)--99.39% ....................... 14,429,603,328
Other assets in excess of liabilities--0.61% ........................... 88,106,363
---------------
Net Assets (applicable to 14,521,077,273 shares of common
stock outstanding at $1.00 per share)--100.00% ...................... $14,517,709,691
===============
</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, 1999.
@ Interest rates shown are discount rates at date of purchase.
Weighted average maturity--43 days
See accompanying notes to financial statements
8
<PAGE>
PAINEWEBBER RMA U.S. GOVERNMENT PORTFOLIO
STATEMENT OF NET ASSETS DECEMBER 31, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(000) MATURITY DATES INTEREST RATES VALUE
- ---------- -------------------- --------------- ---------
<S> <C> <C> <C>
U.S. GOVERNMENT OBLIGATIONS--58.53%
$ 450,000 U.S. Treasury Bills .......................................... 01/13/00 to 01/27/00 3.500 to 5.190%@ $ 448,945,389
450,000 U.S. Treasury Notes .......................................... 01/15/00 to 07/31/00 5.375 to 8.500 450,777,106
--------------
Total U.S. Government Obligations (cost--$899,722,495) ................... 899,722,495
--------------
REPURCHASE AGREEMENTS--40.96%
429 Repurchase Agreement dated 12/28/99 with Banc One
Capital Markets collateralized by $433,000 U.S.
Treasury Notes, 5.125% due 08/01/00 (value-$437,847);
proceeds: $429,386 ......................................... 01/03/00 5.400 429,000
49,571 Repurchase Agreement dated 12/28/99 with Banc One
Capital Markets collateralized by $50,000,000 U.S.
Treasury Notes, 5.125% due 08/31/00 (value-$50,562,000);
proceeds: $49,615,614 ...................................... 01/03/00 5.400 49,571,000
50,000 Repurchase Agreement dated 12/31/99 with Banc One
Capital Markets collateralized by $46,232,000 U.S.
Treasury Notes, 11.750% due 02/15/01 (value-$51,021,635);
proceeds: $50,011,458 ...................................... 01/03/00 2.750 50,000,000
12,415 Repurchase agreement dated 12/28/99 with Bear
Stearns & Company, collateralized by $12,000,000 U.S.
Treasury Bonds, 7.250% due 05/15/16 (value-$12,676,800);
proceeds: $12,426,070 ...................................... 01/03/00 5.350 12,415,000
9,395 Repurchase agreement dated 12/28/99 with Bear
Stearns & Company, collateralized by $8,880,000 U.S.
Treasury Bonds, 7.500% due 11/15/16 (value-$9,600,168);
proceeds: $9,403,377 ....................................... 01/03/00 5.350 9,395,000
28,190 Repurchase agreement dated 12/28/99 with Bear
Stearns & Company, collateralized by $28,645,000 U.S.
Treasury Bonds, 7.500% due 02/28/01 (value-$28,756,716);
proceeds: $28,215,136 ...................................... 01/03/00 5.350 28,190,000
50,000 Repurchase Agreement dated 12/31/99 with Deustche Bank
Securities Incorporated, collateralized by $48,075,000 U.S.
Treasury Notes, 7.000% due 07/15/06 (value-$51,000,845);
proceeds: $50,012,917 ...................................... 01/03/00 3.100 50,000,000
50,000 Repurchase Agreement dated 12/31/99 with Dresdner Kleinwort
Benson N.A. LLC, collateralized by $35,052,000 U.S. Treasury
Bonds, 11.250% due 02/15/15 (value-$51,000,660);
proceeds: $50,012,500 ...................................... 01/03/00 3.000 50,000,000
29,270 Repurchase Agreement dated 12/31/99 with J.P. Morgan Securities
Incorporated, collateralized by $30,043,000 U.S. Treasury
Notes, 5.750% due 06/30/01 (value-$30,385,737);
proceeds: $29,276,708 ...................................... 01/03/00 2.750 29,270,000
50,000 Repurchase Agreement dated 12/31/99 with Morgan Stanley & Company
Incorporated, collateralized by $35,010,000 U.S. Treasury
Bonds, 11.250% due 02/15/15 (value-$51,006,069);
proceeds: $50,012,500 ...................................... 01/03/00 3.000 50,000,000
50,000 Repurchase Agreement dated 12/28/99 with Banc of America
Securities LLC, collateralized by $42,000,000 U.S. Treasury
Bonds, 11.750% due 12/15/10 (value-$53,077,500);
proceeds: $50,045,167 ...................................... 01/03/00 5.420 50,000,000
662 Repurchase Agreement dated 12/28/99 with SGCowen Securities
Corporation, collateralized by $671,000 U.S. Treasury
Notes, 5.500% due 08/31/01 (value-$675,362);
proceeds: $662,601 ......................................... 01/03/00 5.450 662,000
49,338 Repurchase Agreement dated 12/28/99 with SG Cowen Securities
Corporation, collateralized by $50,000,000 U.S. Treasury
Notes, 5.500% due 08/31/01 (value-$50,325,000);
proceeds: $49,382,815 ...................................... 01/03/00 5.450 49,338,000
100,325 Repurchase Agreement dated 12/31/99 with State Street Bank
Corporation, collateralized by $99,714,007 U.S. Treasury
Notes, 6.375% due 08/15/02 (value-$102,331,500);
proceeds: $100,345,901 ..................................... 01/03/00 2.500 100,325,000
9
<PAGE>
PAINEWEBBER RMA U.S. GOVERNMENT PORTFOLIO
<CAPTION>
PRINCIPAL
AMOUNT
(000) MATURITY DATES INTEREST RATES VALUE
- ---------- -------------------- --------------- ---------
<S> <C> <C> <C>
REPURCHASE AGREEMENTS--(CONCLUDED)
$ 50,000 Repurchase Agreement dated 12/31/99 with State Street
Bank Corporation, collateralized by $49,515,000 U.S.
Treasury Notes, 7.500% due 11/15/01 (value-$51,000,450);
proceeds: $50,013,333 ...................................... 01/03/00 3.200% $ 50,000,000
50,000 Repurchase Agreement dated 12/31/99 with Warburg Dillon
Read LLC, collateralized by $44,737,000 U.S. Treasury
Bonds, 7.625% due 02/15/25 (value-$51,000,180);
proceeds: $50,012,500 ...................................... 01/03/00 3.000 50,000,000
--------------
Total Repurchase Agreements (cost--$629,595,000) ......................... 629,595,000
--------------
Total Investments (cost--$1,529,317,495 which approximates cost for
federal income tax purposes)--99.49% ................................... 1,529,317,495
Other assets in excess of liabilities--0.51% ............................. 7,907,671
--------------
Net Assets (applicaple to 1,537,605,671 shares of common stock
outstanding at $1.00 per share)--100.00% ............................... $1,537,225,166
==============
</TABLE>
- -------------------
@ Interest rates shown are discount rates at date of purchase.
Weighted average maturity--24 days
See accompanying notes to financial statements.
10
<PAGE>
PAINEWEBBER RMA TAX-FREE FUND, INC.
STATEMENT OF NET ASSETS DECEMBER 31, 1999 (unaudited)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(000) MATURITY DATES INTEREST RATES VALUE
- ---------- -------------------- --------------- --------------
<S> <C> <C> <C>
ALABAMA--2.02%
$ 20,900 Birmingham Alabama Medical Clinic Board Revenue (U.A.H.S.F) . A 5.150% $ 20,900,000
9,535 Birmingham Alabama Refunding, Series A ...................... A 5.400 9,535,000
5,335 Birmingham Alabama Special Care Facilities
(Eye Foundation Hospital), Series A ....................... A 5.150 5,335,000
2,015 Jefferson County Board of Education School Refunding, Series A 02/15/00 4.500 2,018,507
1,950 Phenix City Alabama Industrial Development Board Environmental
Improvement Revenue (Kraft Project) ....................... A 4.800 1,950,000
6,000 Port City Medical Board of Mobile (Infirmary Health Systems)
Tax-Exempt Commercial Paper ............................... 03/17/00 3.750 6,000,000
6,000 St. Clair County Industrial Development Board (National Cement
Company Inc. Project) ..................................... A 5.450 6,000,000
--------------
51,738,507
--------------
ALASKA--0.36%
1,300 Valdez Alaska Marine Terminal Revenue (Exxon Pipeline Company) A 4.850 1,300,000
2,500 Valdez Alaska Marine Terminal Revenue (Exxon Pipeline Company)
Project A ................................................. A 4.750 2,500,000
5,300 Valdez Alaska Marine Terminal Revenue (Exxon Pipeline Company)
Project B ................................................. A 4.750 5,300,000
--------------
9,100,000
--------------
ARIZONA--3.92%
11,200 Apache County Industrial Development Authority
(Tucson Electric Power Company Project Series B) .......... A 5.450 11,200,000
6,500 Apache County Industrial Development Authority
(Tucson Electric Power Springerville Project) ............. A 5.500 6,500,000
7,300 Maricopa County Arizona Pollution Control Corporation
(Arizona Public Service Company Series A) ................. A 4.750 7,300,000
3,600 Maricopa County Arizona Pollution Control Corporation
(Arizona Public Service Company Series B) ................. A 4.900 3,600,000
4,800 Maricopa County Arizona Pollution Control Corporation
(Arizona Public Service Company Series C) ................. A 4.800 4,800,000
3,600 Maricopa County Pollution Control Corporation
(Arizona Public Service Company Series F) ................. A 4.800 3,600,000
10,000 Maricopa County Pollution Control Revenue (El Paso Project A) A 5.250 10,000,000
5,000 Maricopa County Pollution Control Revenue
(El Paso Electric Palo Verde Project) Series E ............ A 5.250 5,000,000
2,200 Maricopa County Pollution Control Revenue
(Public Service Company Series B) ......................... A 5.000 2,200,000
3,000 Pinal County Pollution Control Revenue
(Newmont Mining Corp Series A) ............................ A 4.750 3,000,000
3,650 Scottsdale Industrial Development Authority Hospital Revenue
(Scottsdale Memorial Health Systems Series B) ............. A 5.150 3,650,000
39,389 Salt River Agricultural Improvement and Power Project
Tax-Exempt Commerical Paper ............................... 01/25/00 to 04/07/00 3.400 to 3.750 39,389,000
--------------
100,239,000
--------------
11
<PAGE>
PAINEWEBBER RMA TAX-FREE FUND, INC.
<CAPTION>
PRINCIPAL
AMOUNT
(000) MATURITY DATES INTEREST RATES VALUE
- ---------- -------------------- --------------- --------------
<S> <C> <C> <C>
CALIFORNIA--0.38%
$ 2,900 California Higher Education Loan Authority
(Student Loan) ............................................ A 3.500% $ 2,900,000
6,900 Los Angeles Regional Airports Improvement Corporation
Lease Revenue ............................................. A 4.800 6,900,000
--------------
9,800,000
--------------
COLORADO--0.77%
10,500 Moffat County Pollution Control Revenue
(Colorado-Ute Electric) ................................... A 4.800 10,500,000
4,600 Moffat County Pollution Control Revenue (Pacificorp Project) A 4.800 4,600,000
4,450 Smith Creek Metropolitan District Revenue ................... A 5.000 4,450,000
--------------
19,550,000
--------------
DELAWARE--1.03%
26,300 Delaware Economic Development Authority
(Hospital Billing and Collection Service, Ltd.) ........... A 5.600 26,300,000
--------------
DISTRICT OF COLUMBIA--0.96%
2,400 District of Columbia General Fund Recovery Series B-2 ....... A 4.500 2,400,000
800 District of Columbia Refunding Series A-5 ................... A 5.150 800,000
10,000 District of Columbia Revenue Multimodal JFK Center
Performing Arts ........................................... A 4.400 10,000,000
5,855 District of Columbia Revenue Pooled Loan Program Series A ... A 5.400 5,855,000
5,500 District of Columbia (National Academy of Science)
Tax-Exempt Commercial Paper ............................... 01/20/00 to 03/15/00 3.700 to 3.750 5,500,000
--------------
24,555,000
--------------
FLORIDA--4.60%
25,600 Dade County Water and Sewer System Revenue .................. A 4.750 25,600,000
9,845 Jacksonville Health Facilities Authority Hospital
(Charity Obligation Group) ................................ A 4.750 9,845,000
3,900 Tampa Florida Occupational License Tax, Series A ............ A 5.250 3,900,000
3,800 University Athletic Association Incorporated Rangely ........ A 4.500 3,800,000
2,100 University Athletic Association Incorporated Rangely
University of Florida Stadium Project ..................... A 2.600 2,100,000
3,260 Volusia County Florida Health Facilities Authority Revenue
Aces Pooled Hospital Loan Program ......................... A 5.250 3,260,000
15,349 Florida Local Government Finance Commission, Series A
Tax-Exempt Commercial Paper ............................... 02/07/00 to 03/13/00 3.400 to 3.650 15,349,000
9,330 Florida Local Government Finance Commission, Series B
Tax-Exempt Commercial Paper ............................... 03/16/00 3.800 9,330,000
11,100 Florida Municipal Power Agency Series A
Tax-Exempt Commercial Paper ............................... 02/07/00 to 03/08/00 3.500 to 3.600 11,100,000
6,000 Jacksonville Electric Series A
Tax-Exempt Commercial Paper ............................... 02/11/00 3.650 6,000,000
7,400 Orange County Health facilities Authority (Pooled Hospital)
Tax-Exempt Commercial Paper ............................... 02/04/00 3.600 7,400,000
7,750 Sarasota County Public Hospital District
Tax-Exempt Commercial Paper ............................... 01/31/00 3.650 7,750,000
12
<PAGE>
PAINEWEBBER RMA TAX-FREE FUND, INC.
<CAPTION>
PRINCIPAL
AMOUNT
(000) MATURITY DATES INTEREST RATES VALUE
- ---------- -------------------- --------------- --------------
<S> <C> <C> <C>
FLORIDA--(CONCLUDED)
$ 12,100 Sunshine State Government Finance Commission
Tax-Exempt Commercial Paper ............................... 01/24/00 3.500% $ 12,100,000
--------------
117,534,000
--------------
GEORGIA--6.65%
24,600 Burke County Development Authority Pollution Control Revenue
(Georgia Power) Tax-Exempt Commercial Paper ............... 02/14/00 to 04/25/00 3.700 24,600,000
30,000 Burke County Development Authority Pollution Control Revenue
(Oglethorpe Power Corp.) .................................. 02/22/00 to 03/07/00 3.500 to 3.600 30,000,000
19,700 Burke County Development Authority Pollution Control Revenue
(Oglethorpe Power Corp.) .................................. A 5.650 19,700,000
1,200 Burke County Development Authority Pollution Control Revenue
(Georgia Power Company Plant Vogtle 3rd) .................. A 4.900 1,200,000
2,600 Burke County Development Authority Pollution Control Revenue
(Georgia Power Company Plant Vogtle 5th) .................. A 4.750 2,600,000
10,000 Cobb County Housing Authority Multi-Family Housing Revenue
(Greenhouse Frey Apartment Project) ....................... A 5.500 10,000,000
10,000 De Kalb County Housing Authority Multi-Family Housing Revenue
Refunding (Post Walk Project) ............................. A 5.500 10,000,000
5,500 De Kalb Private Hospital Authority Revenue Anticipation
Certificates (ESR Childrens Health Series B) .............. A 5.200 5,500,000
20,000 Monroe County Development Authority Pollution Control Revenue
(Georgia Power) Tax-Exempt Commercial Paper ............... 04/27/00 3.700 20,000,000
16,965 Glynn Brunswick Memorial Hospital Anticipation Certificates
(Southeast Georgia Project) ............................... A 5.150 16,965,000
10,400 Gwinnett County Housing Authority Multi-Family Housing Revenue
(Greens Apartments Project) Tax-Exempt Commercial Paper ... A 5.650 10,400,000
19,150 Gwinnett County Housing Authority Multi-Family Housing Revenue
(Post Chase Project) Tax-Exempt Commercial Paper .......... A 5.500 19,150,000
--------------
170,115,000
--------------
IDAHO--0.06%
1,600 Power County Pollution Control Revenue
(FMC Corporation Project) ................................. A 4.800 1,600,000
--------------
ILLINOIS--11.75%
4,000 Chicago Multi-Family Housing Revenue
(Waveland Associates Project D) ........................... A 5.550 4,000,000
1,500 Chicago Multi-Family Housing Revenue
(Waveland Association Project E) .......................... A 5.550 1,500,000
35,400 Chicago O'Hare International Airport Revenue, Series C ...... A 5.400 35,400,000
39,600 Cook County ................................................. A 5.800 39,600,000
4,600 Cook County ................................................. 11/01/00 7.150 4,799,042
6,000 Illinois Development Finance Authority (Chicago Symphony
Orchestra) ................................................ A 5.400 6,000,000
23,200 Illinois Development Finance Authority Pollution Control
Revenue (Commonwealth Edison) ............................. A 5.650 23,200,000
7,500 Illinois Development Finance Authority Revenue
(Francis W. Parker School Project) ........................ A 5.400 7,500,000
4,000 Illinois Development Finance Authority Revenue
(Provena Health) Series C ................................. A 5.500 4,000,000
13
<PAGE>
PAINEWEBBER RMA TAX-FREE FUND, INC.
<CAPTION>
PRINCIPAL
AMOUNT
(000) MATURITY DATES INTEREST RATES VALUE
- ---------- -------------------- --------------- --------------
<S> <C> <C> <C>
ILLINOIS--(CONCLUDED)
$ 9,000 Illinois Educational Facilities Authority Revenue
(Field Museum of Natural History) adjustable rate bond .... 5/15/00 3.900% $ 9,000,000
4,795 Illinois Educational Facilities Authority Revenue
(Northwestern University) ................................. A 5.400 4,795,000
6,000 Illinois Educational Facilities Authority Revenue
(Shedd Aquarium Society Series B) ......................... 07/18/00 3.450 6,000,000
1,000 Illinois Health Facilities Authority Revenue
(Central Dupage Healthcorp) ............................... A 4.750 1,000,000
19,200 Illinois Health Facilities Authority Revenue
(Central Health and Northwest Community) .................. A 4.800 19,200,000
27,000 Illinois Health Facilities Authority Revenue
(Evanston Hospital Series A) adjustable rate bond ......... 2/15/00 to 11/30/00 3.050 to 4.000 27,000,000
2,500 Illinois Health Facility Authority Revenue
(Evanston Hospital) adjustable rate bond .................. 05/31/00 3.250 2,500,000
5,680 Illinois Health Facilities Authority Revenue
(Loyola University Health Systems Series B) ............... A 5.150 5,680,000
8,000 Illinois Health Facilities Authority Revenue
(Pooled Loan Series C) .................................... A 5.300 8,000,000
4,800 Illinois Health Facilities Authority Revenue
(Resurrection Health Series A) ............................ A 5.000 4,800,000
5,700 Illinois Health Facilities Authority Revenue
(St. Lukes Medical Center Obligation Series B) ............ A 5.600 5,700,000
5,000 Illinois Health Facilities Authority Revenue
(University Chicago Hospital), Project C .................. A 5.450 5,000,000
25,465 Illinois Health Facilities Authority Revenue Refunding
(Advocate Health Care Series B) ........................... A 5.350 25,465,000
16,600 Illinois Toll and Highway Authority ......................... A 5.150 16,600,000
3,500 Jackson Union County Regional Port District Facilities Revenue
Refunding (Enron Transportation Services) ................. A 5.700 3,500,000
16,000 Lisle Illinois Multi-Family Revenue Housing
(Four Lakes Phase V) ...................................... A 5.500 16,000,000
14,285 Illinois Educational Facilities Authority Revenue (Pooled Loan)
Tax-Exempt Commercial Paper ............................... 04/05/00 to 04/12/00 3.750 to 3.800 14,285,000
--------------
300,524,042
--------------
INDIANA--4.15%
17,500 Indiana Bond Bank, Series A-2
Advance Funding Program Note .............................. 01/19/00 3.500 17,504,481
7,000 Indiana Health Facility Financing Authority Hospital Revenue
(Aces Rehabilitation Hospital) ............................ A 5.150 7,000,000
4,000 Indiana Municipal Power Supply Systems Revenue
Refunding Series A ........................................ A 5.200 4,000,000
4,250 Indianapolis Local Public Improvement Bond Bank
Notes Series A ............................................ 01/10/00 4.000 4,250,771
5,125 Indianapolis Local Public Improvement Bond Bank
Notes Series H ............................................ 07/10/00 4.500 5,140,700
9,300 Rockport Pollution Control Revenue Refunding
(Indiana Michigan Power Company Project B) ................ A 5.500 9,300,000
18,600 St. Joseph County Educational Facilities Revenue
(University of Notre Dame) ................................ A 5.200 18,600,000
28,300 City of Indianapolis Gas Utility System
Tax-Exempt Commercial Paper ............................... 01/20/00 to 04/10/00 3.700 to 3.750 28,300,000
14
<PAGE>
PAINEWEBBER RMA TAX-FREE FUND, INC.
<CAPTION>
PRINCIPAL
AMOUNT
(000) MATURITY DATES INTEREST RATES VALUE
- ---------- -------------------- --------------- --------------
<S> <C> <C> <C>
INDIANA--(CONCLUDED)
$ 12,000 City of Sullivan Pollution Control Revenue National Rural
Utilities (Hoosier Energy) Tax-Exempt Commercial Paper .... 01/20/00 to 04/13/00 3.200 to 3.800% $ 12,000,000
--------------
106,095,952
--------------
IOWA--0.90%
23,000 Iowa Finance Authority (Village Court Project) .............. A 3.625 TO 5.400 23,000,000
--------------
KANSAS--0.81%
4,500 Kansas State Development Finance Authority Health Facilities
Revenue Insured (Stormont Vail Series M) .................. A 4.750 4,500,000
5,100 Kansas State Development Finance Authority Revenue
(Village Shalom Obligation Group) ......................... A 4.700 5,100,000
5,050 Wyandotte County/Kansas City Unified Government ............. 02/01/00 3.300 5,050,000
5,965 Burlington Pollution Control Revenue (National Rural
Utilities) Tax-Exempt Commercial Paper .................... 03/10/00 3.650 5,965,000
--------------
20,615,000
--------------
KENTUCKY--2.62%
7,790 Kentucky Economic Development Finance Authority
Hospital Facilities Revenue (Baptist Healthcare
Systems Obligation) ...................................... A 5.450 7,790,000
25,000 Kentucky Interlocal School Transportation Association
Certificates Participation ............................... 06/30/00 4.000 25,057,147
7,115 Kentucky State Turnpike Authority Economic Development ..... 05/15/00 7.250 to 7.400 7,302,028
7,895 Mason County Pollution Control Revenue
(East Kentucky Power National Rural) ..................... A 5.550 7,895,000
5,000 Jefferson County Kentucky Series A (Louisville Gas
and Electric) Tax-Exempt Commercial Paper ................ 02/18/00 3.350 5,000,000
13,900 Trimble County Kentucky Pollution Control Revenue (Louisville
Gas and Electric) Tax-Exempt Commercial Paper ............ 01/24/00 to 04/06/00 3.500 to 3.800 13,900,000
--------------
66,944,175
--------------
LOUISIANA--3.93%
9,700 Calcasieu Parish Industrial Development Board
Pollution Control Revenue (Citgo Petrol Corporation) ..... A 5.750 9,700,000
3,750 Calcasieu Parish Louisiana Sales Tax District .............. A 5.650 3,750,000
2,150 East Baton Rouge Parish Louisiana Pollution Control Revenue
(Refunding Exxon Project) ................................ A 4.800 2,150,000
27,000 Louisiana Offshore Terminal Authority Deepwater ............ A 5.400 27,000,000
12,000 Louisiana Public Facilities Authority Pollution Control Revenue
(Ciba Geigy) ............................................. A 5.400 12,000,000
7,395 Louisiana Public Facilities Authority Revenue
(College and University Equipment and Capital Series A) .. A 5.500 7,395,000
20,000 Lousiana Public Facility Tax-Exempt Commercial Paper ....... 03/13/00 to 03/14/00 3.600 20,000,000
1,000 Parish of East Baton Rouge Pollution Control
Revenue (Exxon) .......................................... A 2.850 1,000,000
4,000 Plaquemines Port Harbor and Terminal District
(Tampa Electric) ......................................... 01/18/00 3.750 4,000,000
1,600 Saint Charles Parish Louisiana Pollution Control Revenue
(Shell Oil Company Project) .............................. A 4.800 1,600,000
2,000 Saint Charles Parish Louisiana Pollution Control Revenue
(Shell Oil Company Project B) ............................ A 4.850 2,000,000
15
<PAGE>
PAINEWEBBER RMA TAX-FREE FUND, INC.
<CAPTION>
PRINCIPAL
AMOUNT
(000) MATURITY DATES INTEREST RATES VALUE
- ---------- -------------------- --------------- --------------
<S> <C> <C> <C>
LOUISIANA--(CONCLUDED)
$ 10,000 South Louisiana Port Commission Marine Terminal
Facilities Revenue (Occidental Petroleum) ................ A 5.400% $ 10,000,000
--------------
100,595,000
--------------
MARYLAND--3.64%
4,100 Maryland Health and Higher Educational Facilities Series A
(John Hopkins Hospital) .................................. A 5.400 4,100,000
20,400 Maryland Health and Higher Educational Facilities Series B
(Pooled Loan Program) .................................... A 5.150 20,400,000
8,275 Northeast Maryland Waste Disposal Authority Resources
Recovery Revenue (Refunding Harford County Resources) .... A 5.050 8,275,000
9,200 University of Maryland Equipment Tender Notes .............. A 5.150 9,200,000
51,000 Maryland Health and Higher Education, Series C
(John Hopkins Hospital) Tax-Exempt Commercial Paper ...... 01/26/00 to 04/11/00 3.200 to 3.700 51,000,000
--------------
92,975,000
--------------
MASSACHUSETTS--2.61%
11,200 Boston Water and Sewer Commission Revenue Series A ......... A 5.200 11,200,000
13,500 Massachusetts Bay Transport Authority Notes Series A ....... 02/25/00 3.500 13,511,851
5,000 Massachusetts Health and Educational Facilities
Authority Revenue (Harvard University) ................... A 4.750 to 4.900 5,000,000
4,000 Massachusetts Municipal Wholesale Electric Company
Power Supply Systems Revenue ............................. A 5.500 4,000,000
14,000 Montachusett Massachusetts Regional Vocational Tech
School District Bond Anticipation Notes .................. 01/21/00 4.000 14,002,754
7,000 Narragansett Massachusetts Regional School District
Bond Anticipation Notes .................................. 06/09/00 4.250 7,019,236
12,000 Massachussetts Water Resources Authority
Tax-Exempt Commercial Paper .............................. 02/17/00 3.850 12,000,000
--------------
66,733,841
--------------
MICHIGAN--2.36%
300 Delta County Michigan Economic Development Corporation
Environmental Improvement Revenue ........................ A 4.800 300,000
14,700 Kent Hospital Finance Authority Michigan Revenue Refunding
(Spectrum Health Series B) ............................... A 5.150 14,700,000
3,000 Michigan Municipal Bond Authority Revenue Series B 1 ....... 08/25/00 4.250 3,012,175
4,000 Michigan State Housing Development Authority (Shoal Creek) . A 5.600 4,000,000
3,500 Michigan State Strategic Fund Pollution Control Revenue ....
(Consumers Power Project Series A) ....................... A 4.900 3,500,000
15,650 Michigan Strategic Fund (Dow Chemical) ..................... A 4.800 15,650,000
2,700 Michigan Strategic Fund Limited Obligation Revenue
(Detroit Edison Company) ................................. A 5.000 2,700,000
6,900 Michigan University Revenues Refunding Hospital
Series A 2 ............................................... A 4.800 6,900,000
4,200 Midland County Michigan Economic Development Corporation
Limited Obligation Revenue (Dow Chemcial Company) ........ A 5.050 4,200,000
16
<PAGE>
PAINEWEBBER RMA TAX-FREE FUND, INC.
<CAPTION>
PRINCIPAL
AMOUNT
(000) MATURITY DATES INTEREST RATES VALUE
- ---------- -------------------- --------------- --------------
<S> <C> <C> <C>
MICHIGAN--(CONCLUDED)
$ 5,400 Northville Township Economic Development Corporation
Limited Obligation Revenue (Thrifty Northville
Incorporated Project) .................................... A 5.125% $ 5,400,000
--------------
60,362,175
--------------
MINNESOTA--0.14%
3,600 Rochester Health Care Facilities (Mayo Clinic)
Tax-Exempt Commercial Paper .............................. 03/08/00 3.800 3,600,000
--------------
MISSISSIPPI--0.94%
5,900 Harrison County Pollution Control Revenue (DuPont) ......... A 4.800 5,900,000
2,500 Jackson County Port Facility Revenue
(Refunding Chevron USA Incorporated Project) ............. A 3.850 2,500,000
8,700 Mississippi Business Finance Corporation Mississippi Revenue
(Mississippi College) .................................... A 5.400 8,700,000
7,000 Clairebore County Pollution Control Revenue Series 2 (CFC)
Tax-Exempt Commercial Paper .............................. 04/10/00 3.750 7,000,000
--------------
24,100,000
--------------
MISSOURI--1.65%
34,000 Missouri Health and Educational Facilities Authority Revenue
(Medical Research Facilities Stowers A) .................. A 5.650 34,000,000
5,550 Missouri State Health and Educational Facilities Authority
Health Facilities Revenue (Barnes Hospital) .............. 12/15/00 7.125 5,808,426
2,400 Missouri State Health and Educational Facilities Authority
Educational Facilities Revenue (St Louis University) ..... A 4.750 2,400,000
--------------
42,208,426
--------------
NEBRASKA--2.47%
5,340 Lancaster County Hospital Revenue
(Bryan Memorial Hospital Project) ........................ A 5.150 5,340,000
3,200 Nebhelp Incorporated Nebraska Revenue
Multiple Mode Student Loan, Series A ..................... A 5.600 3,200,000
15,100 Nebhelp Incorporated Nebraska Revenue
Multiple Mode Student Loan, Series E ..................... A 5.600 15,100,000
12,000 Nebraska Public Power District Series A Tax-Exempt
Commercial Paper ......................................... 01/28/00 3.600 12,000,000
27,510 Omaha Public Power District Electric Tax-Exempt
Commercial Paper ......................................... 02/08/00 to 03/06/00 3.250 to 3.600 27,510,000
--------------
63,150,000
--------------
NEVADA--1.65%
26,565 Clark County Airport Improvement Revenue .................. A 5.150 to 5.200 26,565,000
4,490 Clark County School District Bonds ........................ 06/15/00 6.000 to 6.500 4,550,253
11,000 Las Vegas Valley Water Series A Tax-Exempt
Commercial Paper ........................................ 01/21/00 to 01/25/00 3.850 11,000,000
--------------
42,115,253
--------------
NEW HAMPSHIRE--1.30%
13,800 New Hampshire Business Finance Authority Series A
Resource Recovery Revenue ................................ A 5.650 13,800,000
19,525 New Hampshire Housing Finance Authority
Multi-Family Revenue (EQR Bond Partnership Project) ...... A 5.500 19,525,000
--------------
33,325,000
--------------
17
<PAGE>
PAINEWEBBER RMA TAX-FREE FUND, INC.
<CAPTION>
PRINCIPAL
AMOUNT
(000) MATURITY DATES INTEREST RATES VALUE
- ---------- -------------------- --------------- --------------
<S> <C> <C> <C>
NEW JERSEY--0.04%
$ 1,000 New Jersey Economic Development Authority Revenue
(El Dorado Terminals Series A) ........................... 01/03/00 4.900% $ 1,000,000
--------------
NEW MEXICO--0.95%
2,900 Albuquerque Gross Receipts Lodgers Tax Revenue Series A .... A 5.200 2,900,000
4,600 Hurley Pollution Control Revenue Kennecott Santa Fe ........ A 4.850 4,600,000
16,900 University of New Mexico University Revenues ............... A 5.150 16,900,000
--------------
24,400,000
--------------
NEW YORK--2.80%
2,000 Clarkstown Central School District Tax Anticipation Notes .. 06/30/00 4.000 2,003,351
10,000 Metropolitan Transportation Authority
Tax-Exempt Commercial Paper .............................. 03/03/00 3.600 10,000,000
2,200 New York City .............................................. A 4.750 2,200,000
2,100 New York City Series F-3 ................................... 5.400 2,100,000
10,000 New York City Series A51 ................................... A 3.850 10,000,000
300 New York City Subseries E-4 ................................ A 4.750 300,000
7,000 New York City Municipal Water Finance Authority ............ 03/10/00 3.750 7,000,000
7,300 New York City Municipal Water Finance Authority ............ A 5.000 7,300,000
10,000 New York City Tax-Exempt Commercial Paper .................. 01/27/00 3.750 10,000,000
600 New York City Trust for Cultural Resources
(Soloman R Guggenheim) ................................... A 4.750 600,000
700 New York State Dormitory Authority Revenue
(Cornell University) ..................................... A 4.750 700,000
4,155 New York State Dormitory Authority Revenue
(State University Educational Series B) .................. 05/15/00 7.375 4,300,531
4,000 New York State Energy Research and Development Authority Gas
Facilities Revenue (Brooklyn Union Gas Company
Series A1) ............................................... A 5.450 4,000,000
11,000 Riverhead Central School District Tax Anticipation Notes ... 06/23/00 3.750 11,009,346
--------------
71,513,228
--------------
NORTH CAROLINA--7.47%
25,980 Charlotte Airport Revenue .................................. A 5.150 25,980,000
16,400 Charlotte Mecklenberg Hospital Authority
Health Care Systems Revenue Series D ..................... A 5.150 16,400,000
3,400 Greensboro Enterprise Systems Revenue Series B ............. A 5.150 3,400,000
10,975 North Carolina Educational Facilities Finance Agency Revenue
(Guilford College) ....................................... A 5.500 10,975,000
24,000 North Carolina Educational Facility
(Bowman Grey School Medical Project) ..................... A 4.900 24,000,000
65,975 North Carolina Educational Facility
(Duke University Project Series A) ....................... A 4.950 65,975,000
9,815 North Carolina Educational Facility (Elon College) ......... A 5.200 9,815,000
1,900 North Carolina Medical Care Commission Hospital Revenue
(Pooled Loans Series B) .................................. A 5.050 1,900,000
5,200 North Carolina Medical Care Commission Revenue
(Carol Woods Project) .................................... A 5.050 5,200,000
6,000 Raleigh Durham Airport Authority Special Facility Revenue
(American Airlines Series A) ............................. A 4.950 6,000,000
18
<PAGE>
PAINEWEBBER RMA TAX-FREE FUND, INC.
<CAPTION>
PRINCIPAL
AMOUNT
(000) MATURITY DATES INTEREST RATES VALUE
- ---------- -------------------- --------------- --------------
<S> <C> <C> <C>
NORTH CAROLINA--(CONCLUDED)
$ 7,600 Union County Industrial Facilities and Pollution Control
Financing Authority (Square D Company Project) ........... A 4.125 to 5.350% $ 7,600,000
10,000 Wake County North Carolina Industrial Facilities and
Pollution Control Financing Authority Revenue
(Carolina Power and Light Company Series C) .............. A 5.200 10,000,000
3,700 Wake County North Carolina Industrial Facilities and
Pollution Control (Carolina Power and Light) Financing
Authority Revenue Series B ............................... A 4.500 3,700,000
--------------
190,945,000
--------------
OHIO--2.50%
5,000 Columbus Electric Systems Revenue .......................... A 3.650 5,000,000
18,900 Columbus Sewer Revenue ..................................... A 5.400 18,900,000
4,200 Cuyahoga County (Cleveland Orchestra Project) .............. A 4.750 4,200,000
10,000 Cuyahoga County Hospital Revenue
(Cleveland Clinic Foundation Series A) ................... A 5.650 10,000,000
4,835 Cuyahoga County Hospital Revenue Series A .................. A 5.650 4,835,000
1,650 Hamilton County Hospital Facilities Revenue
(Bethesda Hospital Incorporated) ......................... A 5.350 1,650,000
1,300 Ohio State Air Quality Development Authority
Pollution Control Revenue (Cincinnati Gas and Electric) .. A 4.750 1,300,000
14,000 Ohio State Air Quality Development Authority Revenue Refunding
(Ohio Edison Project, Series A) .......................... A 2.850 14,000,000
4,000 Ohio State Air Quality Development Authority
Tax-Exempt Commercial Paper .............................. 01/19/00 3.900 4,000,000
--------------
63,885,000
--------------
OREGON--1.23%
5,000 Multnomah County School District 1J
Tax and Revenue Anticipation Notes ....................... 06/30/00 4.000 5,011,974
16,300 Oregon State General Obligation (Veterans Welfare) ......... A 5.800 16,300,000
10,000 Portland Oregon Tax Anticipation Notes ..................... 06/29/00 4.250 10,038,027
--------------
31,350,001
--------------
PENNSYLVANIA--2.71%
3,000 Beaver County Pollution Control Revenue
(Ohio Edison Company Series A) ........................... A 3.100 3,000,000
21,200 Delaware Valley Regional Finance Authority
Local Government Revenue ................................. A 5.200 21,200,000
4,600 Delaware Valley Regional Finance Authority Series A
Local Government Revenue ................................. A 5.200 4,600,000
4,200 Delaware Valley Regional Finance Authority Series B
Local Government Revenue ................................. A 5.200 4,200,000
12,200 NorthCumberland County Industrial Development Authority
Pollution Control Revenue (Merck and Company) ............ A 3.000 to 5.250 12,200,000
2,400 Pennsylvania State First Series ............................ 03/01/00 4.500 2,404,136
1,000 Pennsylvania Strategic Industrial Development Authority
Economic Development ..................................... 07/01/00 4.600 1,004,823
19
<PAGE>
PAINEWEBBER RMA TAX-FREE FUND, INC.
<CAPTION>
PRINCIPAL
AMOUNT
(000) MATURITY DATES INTEREST RATES VALUE
- ---------- -------------------- --------------- --------------
<S> <C> <C> <C>
PENNSYLVANIA--(CONCLUDED)
$ 1,000 Philadelphia Authority for Industrial Development Revenue
(Institute Cancer Research Project Series A) ............. A 4.800% $ 1,000,000
1,600 Philadelphia Authority for Industrial Development Revenue
(Fox Chase Cancer Center Project) ........................ A 4.800 1,600,000
3,600 Philadelphia Hospital and Higher Education
Health Systems (Jefferson B Project) ..................... A 3.250 3,600,000
6,890 Philadelphia Water and Waste Revenue Series B .............. A 5.150 6,890,000
7,500 Schuylkill County Pennsylvania Industrial Development Authority
Resources Recovery Revenue Refunding
(Northeastern Power Company Series A) .................... A 4.750 7,500,000
--------------
69,198,959
--------------
PUERTO RICO--0.47%
12,000 Puerto Rico Commonwealth Government Development Bank
Tax-Exempt Commercial Paper .............................. 02/03/00 to 04/11/00 3.400 to 3.800 12,000,000
--------------
SOUTH CAROLINA--1.92%
12,935 South Carolina Jobs Economic Development Authority
Hospital Facilities Revenue (Baptist Healthcare Systems) . A 5.200 12,935,000
15,915 South Carolina Jobs Economic Development Authority
Hospital Facilities Revenue (Regional Medical Center
Orangeburg) .............................................. A 5.150 15,915,000
2,325 Spartanburg County School District Number 7
School District Enhance Program .......................... 03/01/00 5.000 2,332,377
18,000 South Carolina Public Service Authority
Tax-Exempt Commercial Paper .............................. 01/26/00 to 01/27/00 3.350 18,000,000
--------------
49,182,377
--------------
TENNESSEE--2.19%
6,800 Chattanooga Hamilton County Hospital Authority Revenue
(Erlanger Medical Center) ................................ A 4.800 6,800,000
7,450 Clarksville Public Building Authority Revenue C ............ A 5.400 7,450,000
4,000 Metropolitan Nashville Airport Authority ................... A 5.650 4,000,000
8,000 Metropolitan Nashville and Davidson County
Health and Education Facilities Board Revenue (Vanderbilt
University) .............................................. A 3.100 8,000,000
8,600 Metropolitan Nashville and Davidson Industrial
(Timberlake) ............................................. A 5.100 8,600,000
4,305 Montgomery County Public Building Authority Revenue
(Pooled Loan) ............................................ A 5.400 4,305,000
8,000 Shelby County Series 1998 A Bond Anticipation Notes ........ 01/28/00 3.400 8,000,000
3,875 Tennessee State General Obligation ......................... 05/01/00 4.000 3,885,623
5,000 Tennessee State School Board Tax-Exempt Commercial Paper ... 02/14/00 3.750 5,000,000
--------------
56,040,623
--------------
TEXAS--9.00%
6,460 Bexar County Health Facilities Development
(Army Retirement Foundation) ............................. A 5.000 6,460,000
3,200 Brazos River Texas Harbor Navigation District Brazoria
County Revenue Refunding (Dow Chemical Company
Project A) ............................................... A 5.100 3,200,000
20
<PAGE>
PAINEWEBBER RMA TAX-FREE FUND, INC.
<CAPTION>
PRINCIPAL
AMOUNT
(000) MATURITY DATES INTEREST RATES VALUE
- ---------- -------------------- --------------- --------------
<S> <C> <C> <C>
TEXAS--(CONCLUDED)
$ 12,800 Georgetown Higher Education Finance Corp.
(Southwestern University) ................................ A 5.500% $ 12,800,000
4,100 Guadalupe Blanco River Authority (Central
Texas Tax Power) ......................................... A 4.800 4,100,000
6,065 Gulf Coast Industrial Development Authority Texas Marine
Terminal Revenue (Amoco Oil Company Project) adjustable
rate bond ................................................ 06/01/00 3.850 6,065,000
7,780 Gulf Coast Pollution Control Revenue
(Amoco Oil Co.) Adjustable Rate Bond ..................... 01/15/00 3.600 7,780,290
1,000 Gulf Coast Waste Disposal Authority Pollution Control Revenue
(Exxon Project) .......................................... A 4.850 1,000,000
6,800 Harris County Industrial Development Corporation
Pollution Control Revenue (Exxon) ........................ A 4.800 6,800,000
22,600 Harris County Toll Roads ................................... A 5.000 22,600,000
7,000 Hockley County Industrial Development Corporation Pollution
(Amoco Project) .......................................... 05/01/00 3.650 7,000,000
1,330 Killeen Independent School District ........................ 02/15/00 4.200 1,331,924
5,500 Midlothian Industrial Development Corporation
Pollution Control Revenue (Box Crow Cement Company
Project) ................................................. A 5.500 5,500,000
4,800 Plano Texas Independent School District Bond ............... 02/15/00 3.500 to 5.250 4,813,505
9,200 Port of Corpus Christi Authority Texas ( Koch Industries) .. A 5.500 9,200,000
3,200 Sabine River Authority Texas Pollution Control Revenue
(Daily Collateral Texas Utility Project Series A) ........ A 4.800 3,200,000
67,500 Texas State Tax and Revenue Anticipation Notes Series A .... 08/31/00 4.500 67,845,909
4,000 Bexar County Metropolitan Water Tax-Exempt
Commercial Paper ......................................... 02/03/00 3.500 4,000,000
9,000 Brownsville Utilities Tax-Exempt Commercial Paper .......... 04/07/00 3.800 9,000,000
18,000 City of Houston Tax-Exempt Commercial Paper ................ 01/20/00 to 04/10/00 3.450 to 3.800 18,000,000
15,000 City of Houston Water and Sewer Authority
Tax-Exempt Commercial Paper .............................. 02/24/00 to 03/09/00 3.700 to 3.850 15,000,000
14,500 San Antonio Texas Electric and Gas Series A
Tax-Exempt Commerical Paper .............................. 01/27/00 to 04/13/00 3.750 to 3.800 14,500,000
--------------
230,196,628
--------------
UTAH--0.80%
6,985 Salt Lake City Airport Revenue Series A-10, Registered D ... A 3.950 6,985,000
8,400 Salt Lake County Pollution Control Revenue
(Service Station Holdings Project B) ..................... A 4.800 8,400,000
5,000 Intermountain Power Agency Utah Power Supply, Series B-4
Tax-Exempt Commercial Paper .............................. 02/09/00 3.250 5,000,000
--------------
20,385,000
--------------
VERMONT--0.20%
5,000 Vermont Educational and Health Buildings Financing Agency
Revenue (Middlebury College Project A) ..................... A 3.150 5,000,000
--------------
VIRGINIA--3.16%
2,000 Chesterfield County Industrial Development Authority
Pollution Control Revenue (Virginia Electric Power)
Tax-Exempt Commercial Paper .............................. 04/13/00 3.850 2,000,000
5,000 Fairfax County Series A Public Improvement ................. 06/01/00 5.500 5,046,487
21
<PAGE>
PAINEWEBBER RMA TAX-FREE FUND, INC.
<CAPTION>
PRINCIPAL
AMOUNT
(000) MATURITY DATES INTEREST RATES VALUE
- ---------- -------------------- --------------- --------------
<S> <C> <C> <C>
VIRGINIA--(CONCLUDED)
$ 33,750 Loudoun County Industrial Development Authority
Residential Care Facility Revenue Refunding
(Falcons Landing Project) ................................ A 5.200% $ 33,750,000
13,000 Louisa Industrial Development Authority (Virginia
Electric Power) Tax-Exempt Commercial Paper .............. 02/14/00 to 02/22/00 3.400 to 3.750 13,000,000
5,500 Louisa Industrial Development Authority Pollution
Control Revenue (Virginia Electric Power) ................ 01/21/00 3.450 5,500,000
5,000 Norfolk Industrial Development Authority Revenue
Tax-Exempt Commercial Paper .............................. 03/07/00 3.400 5,000,000
7,350 Roanoke Industrial Development Authority Hospital Revenue
(Carilion Health Systems Series A) ....................... A 4.800 7,350,000
1,700 Roanoke Industrial Development Authority Hospital Revenue
(Roanoke Memorial Hospital Series A) ..................... A 4.800 1,700,000
7,600 Roanoke Industrial Development Authority Hospital Revenue
(Roanoke Memorial Hospital Series B) ..................... A 4.800 7,600,000
--------------
80,946,487
--------------
WASHINGTON--2.08%
5,000 Port of Seattle Industrial Development Corporation
(Alaska Airlines Incorporated) ........................... A 4.400 5,000,000
14,800 Snohomish Public Utility District .......................... A 5.150 14,800,000
12,800 Washington State Series Vr-96B ............................. A 5.400 12,800,000
4,000 Washington State Public Power Supply Systems (Nuclear
Project Number 1 Series 1A-1) ............................ A 5.500 4,000,000
9,000 Port of Seattle Tax-Exempt Commercial Paper ................ 03/09/00 3.750 9,000,000
7,600 Seattle Municipal Light and Power Revenue
Tax-Exempt Commercial Paper .............................. A 5.150 7,600,000
--------------
53,200,000
--------------
WEST VIRGINIA--0.37%
9,500 Grant County Pollution Control Revenue
Tax-Exempt Commercial Paper .............................. 03/09/00 3.650 9,500,000
--------------
WISCONSIN--0.68%
6,100 City of Oak Creek Pollution Control Revenue
(Wisconsin Electric Power Company) ....................... A 5.500 6,100,000
1,000 Louisiana Crosse Pollution Control Revenue Refunding
(Dairyland Power Cooperative Series A) ................... A 5.000 1,000,000
5,315 Wisconsin State Certificates of Participation Master
Lease Series A ........................................... 03/01/00 3.500 5,316,660
5,000 Wisconsin Strategic Health and Education Facilities Series 98B
Tax-Exempt Commercial Paper .............................. 02/16/00 3.650 5,000,000
--------------
17,416,660
--------------
22
<PAGE>
PAINEWEBBER RMA TAX-FREE FUND, INC.
<CAPTION>
PRINCIPAL
AMOUNT
(000) MATURITY DATES INTEREST RATES VALUE
- ---------- -------------------- --------------- --------------
<S> <C> <C> <C>
WYOMING--0.48%
$ 3,590 Converse County Pollution Control Revenue Refunding
(Pacificorp Projects) .................................... A 4.800% $ 3,590,000
2,300 Kemmerer Wyoming Pollution Control Revenue
(Exxon Project) .......................................... A 4.750 2,300,000
6,500 Sweetwater County Pollution Control Revenue
(Idaho Power Company Project C) .......................... A 4.800 6,500,000
--------------
12,390,000
--------------
Total Investments (cost--$2,575,425,334 which approximates
cost for federal income tax purposes)--100.72% ....................... 2,575,425,334
Liabilities in excess of other assets--(0.72)% ......................... (18,374,189)
--------------
Net Assets (applicable to 2,558,065,435 shares of common
stock outstanding at $1.00 per share)--100.00% ....................... $2,557,051,145
==============
</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, 1999, and reset periodically.
Weighted average maturity--39 days
See accompanying notes to financial statements.
23
<PAGE>
PAINEWEBBER RMA CALIFORNIA MUNICIPAL MONEY FUND
STATEMENT OF NET ASSETS DECEMBER 31, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(000) MATURITY DATES INTEREST RATES VALUE
- ---------- -------------------- --------------- --------------
<S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES--78.89%
$ 2,000 California Educational Facilities Authority
(Stanford University-Series L) ............................ A 4.900% $ 2,000,000
3,950 California Educational Facilities Authority
(Stanford University-Series L-3) .......................... A 4.900 3,950,000
2,300 California Educational Facilities Authority
(Stanford University-Series L-4) .......................... A 4.900 2,300,000
6,500 California Health Facilities Financing Authority
(Adventist Health System-Series A) ........................ A 4.700 6,500,000
5,100 California Health Facilities Financing Authority
(Adventist Health System-Series B) ........................ A 4.750 5,100,000
1,200 California Health Facilities Financing Authority
(Hospital Adventist-Series A) ............................. A 4.250 1,200,000
8,200 California Health Facilities Financing Authority
(Hospital Adventist-Series B) ............................. A 4.250 8,200,000
3,600 California Health Facilities Financing Authority
(Scripps Memorial Hospital) ............................... A 4.950 3,600,000
3,500 California Health Facilities Financing Authority
(Scripps Memorial Hospital-Series B) ...................... A 4.950 3,500,000
12,700 California Health Facilities Financing Authority
(St. Joseph's Health System-Series B) ..................... A 4.200 12,700,000
3,700 California Health Facilities Financing Authority
(Sutter Adventist Health-Series B) ........................ A 4.200 3,700,000
5,000 California Pollution Control Financing Authority
(Pacific Gas & Electric Corporation-Series C ) ............ A 4.400 5,000,000
1,000 California Pollution Control Financing Authority
(Pacific Gas & Electric Corporation-Series F ) ............ A 4.250 1,000,000
200 California Pollution Control Financing Authority
(Southern California Edison-Series B) ..................... A 4.100 200,000
800 California Pollution Control Financing Authority
(Southern California Edison-Series C ) .................... A 4.100 800,000
1,100 California Pollution Control Financing Authority
(Southern California Edison-Series D) ..................... A 4.100 1,100,000
500 California Pollution Control Financing Authority
Pollution Control Revenue ................................. A 4.050 500,000
15,525 California School Facilities Financing Corporation
Certificates of Participation
(Capital Improvement Financing Projects-Series A) ......... A 5.050 15,525,000
1,800 California School Facilities Financing Corporation
Certificates of Participation
(Capital Improvement Financing Projects-Series B) ......... A 5.050 1,800,000
3,100 California State Economic Development Financing Authority
(Independent Systems A Convertible) ....................... A 5.100 3,100,000
3,000 California State Revenue Anticipation Notes (Series A) ...... 06/30/00 4.000 3,010,144
700 California Statewide Communities Development Authority
Certificates of Participation
(Continuing Care Project) ................................. A 4.250 700,000
24
<PAGE>
PAINEWEBBER RMA CALIFORNIA MUNICIPAL MONEY FUND
<CAPTION>
PRINCIPAL
AMOUNT
(000) MATURITY DATES INTEREST RATES VALUE
- ---------- -------------------- --------------- --------------
<S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES--(CONTINUED)
$ 500 California Statewide Communities Development Authority
Certificates of Participation
(House Ear Institute) ..................................... A 4.250% $ 500,000
610 California Statewide Communities Development Authority
Certificates of Participation
(John Muir/Mount Diablo Health) ........................... A 4.250 610,000
8,000 California Statewide Communities Development Authority
Certificates of Participation
(Northern California Retired Officers) .................... A 4.350 8,000,000
8,000 California Statewide Communities Development Authority
Certificates of Participation
(St. Joseph Health System) ................................ A 5.000 8,000,000
1,600 California Statewide Communities Development Authority
Certificates of Participation
(St. Joseph Health System Group) .......................... A 4.200 1,600,000
5,000 California Statewide Communities Development Authority
Tax and Revenue Anticipation Notes (Series A-1) ........... 06/30/00 4.000 5,019,637
6,000 California Statewide Communities Development Authority
Tax and Revenue Anticipation Notes (Series C-2) ........... 09/29/00 4.000 6,024,298
10,900 California Transit Financing Authority ...................... A 4.650 10,900,000
6,050 Acalanes Union High School District
Tax and Revenue Anticipation Notes ........................ 06/30/00 3.500 6,054,320
4,000 Alameda Contra Costa Schools Financing Authority
Certificates of Participation
(Capital Improvement Financing Projects-Series A) ......... A 4.700 4,000,000
4,380 Alameda Contra Costa Schools Financing Authority
Certificates of Participation
(Capital Improvement Financing Projects-Series C) ......... A 4.700 4,380,000
3,035 Alameda Contra Costa Schools Financing Authority
Certificates of Participation
(Capital Improvement Financing Projects-Series D) ......... A 4.700 3,035,000
445 Alameda Contra Costa Schools Financing Authority
Certificates of Participation
(Capital Improvement Funding Projects) .................... A 4.700 445,000
1,500 Alameda Tax and Revenue Anticipation Notes .................. 06/30/00 3.500 1,500,669
1,000 Alisal Union School District Tax and Revenue
Anticipation Notes ........................................ 07/27/00 4.000 1,003,020
16,600 Anaheim Certificates of Participation ....................... A 4.850 16,600,000
3,000 Central Valley School Districts Financing
Authority (Series A) ...................................... 02/01/00 5.650 3,006,454
1,750 Contra Costa County Tax and Revenue Anticipation
Notes (Series A) .......................................... 09/29/00 4.000 1,757,045
2,000 Fremont Certificates of Participation
(Police Facility Finance Project-Series A) ................ 08/01/00 5.900 2,049,881
3,000 Fresno Tax and Revenue Anticipation Notes ................... 06/30/00 4.000 3,009,256
3,000 Golden Empire Schools Financing Authority
(Kern High School District Project) ....................... 02/01/00 3.100 3,000,000
5,100 Golden Empire Schools Financing Authority
(Kern High School District Project-Series A) .............. A 4.950 5,100,000
7,350 Irvine Improvement Bond Act 1915 Updates
Assessment District 85-7-I ................................ A 5.150 7,350,000
25
<PAGE>
PAINEWEBBER RMA CALIFORNIA MUNICIPAL MONEY FUND
<CAPTION>
PRINCIPAL
AMOUNT
(000) MATURITY DATES INTEREST RATES VALUE
- ---------- -------------------- --------------- --------------
<S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES--(CONTINUED)
$ 14,100 Irvine Public Facilities and Infrastructure Authority
(Capital Improvement Projects) ............................ A 5.100% $ 14,100,000
1,000 Irvine Ranch Water District ................................. A 4.300 1,000,000
300 Irvine Ranch Water District (Series A) ...................... A 4.300 300,000
1,700 Irvine Ranch Water District (Consolidated Refunding
Series B) ................................................. A 4.000 1,700,000
5,600 Irvine Ranch Water District Certificates of Participation
(Capital Improvement Project) ............................. A 4.300 5,600,000
1,500 Kern County Board Education
Tax and Revenue Anticipation Notes ........................ 06/30/00 4.000 1,503,856
5,000 Kern County High School District
Tax and Revenue Anticipation Notes ........................ 07/06/00 4.000 5,015,549
2,900 Los Angeles Community Redevelopment Agency
Multi-Family Housing Revenue Bonds (Grand Promenade
Project) .................................................. A 4.400 2,900,000
5,000 Los Angeles County Pension Obligation (Series B) ............ A 4.850 5,000,000
14,100 Los Angeles County Pension Obligation (Series C ) ........... A 3.250 to 4.850 14,100,000
1,945 Los Angeles County Schools Regionalized Business Services
Certificates of Participation (Project A) ................. 03/01/00 4.750 1,951,088
3,000 Los Angeles County Tax and Revenue Anticipation Notes ....... 06/30/00 4.000 3,009,759
13,300 Los Angeles Multi-Family Housing Revenue Bonds
(Museum Terrace Apartments-Series H) ...................... A 4.400 13,300,000
2,020 Los Angeles Wastewater Systems Revenue (Series A) ........... 02/01/00 7.000 2,066,730
10,400 M-S-R Public Power Agency San Juan Project
Revenue Bonds (Series D) .................................. A 5.100 10,400,000
8,200 M-S-R Public Power Agency San Juan Project
Revenue Bonds (Series E) .................................. A 4.800 8,200,000
5,500 Metropolitan Water District Southern California
Waterworks Revenue Bonds (Series B) ....................... A 3.650 to 4.800 5,500,000
2,000 Metropolitan Water District Southern California
Waterworks Revenue Bonds (Series C ) ...................... A 4.250 2,000,000
6,795 Moorpark Industrial Development Authority
(Fred Kavli and Kavlico Corporation) ...................... A 4.400 6,795,000
4,000 Newport Beach Health Facilities (Hoag Memorial Hospital) .... A 4.400 4,000,000
1,000 Newport Beach Health Facilities (Hoag Memorial
Hospital-Series B) ........................................ A 4.400 1,000,000
600 Newport Beach Health Facilities (Hoag Memorial
Hospital-Series C ) ....................................... A 4.400 600,000
2,000 Northern California Transmission Revenue
(Oregon Transportation Project-Series A) .................. 05/01/00 7.000 2,052,938
12,200 Oakland Joint Powers Financing Authority (Series A-1) ....... A 5.000 12,200,000
6,000 Oakland Unified School District Alameda County
Tax and Revenue Anticipation Notes ........................ 11/17/00 4.000 6,016,727
6,250 Ontario Tax and Revenue Anticipation Notes .................. 06/30/00 4.000 6,267,914
4,000 Orange County Apartment Development Revenue Bonds
(Monarch Bay Apartments Project-Issue-T ) ................. A 4.400 4,000,000
6,625 Orange County Apartment Development Revenue Bonds
(Niguel Village-Series AA) ................................ A 4.400 6,625,000
8,040 Orange County Apartment Development Revenue Bonds
(Niguel Village-Series U ) ................................ A 4.000 8,040,000
26
<PAGE>
PAINEWEBBER RMA CALIFORNIA MUNICIPAL MONEY FUND
<CAPTION>
PRINCIPAL
AMOUNT
(000) MATURITY DATES INTEREST RATES VALUE
- ---------- -------------------- --------------- --------------
<S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES--(CONTINUED)
$ 1,700 Orange County Housing Authority Multi-Family Apartment
Development Revenue Bonds
(Lantern Pines Project-Series CC ) ........................ A 4.400% $ 1,700,000
7,700 Orange County Various Sanitation Districts
Certificates of Participation (Series C ) ................. A 4.250 7,700,000
5,000 Paramount Unified School District
Tax and Revenue Anticipation Notes ........................ 09/29/00 4.250 5,030,248
1,320 Pasadena Unified School District (Series A) ................. 05/01/00 4.750 1,326,822
2,000 Petaluma City Joint Union High School District
Tax and Revenue Anticipation Notes ........................ 06/30/00 3.500 2,002,390
1,540 Petaluma City School District
Tax and Revenue Anticipation Notes ........................ 06/30/00 3.500 1,541,841
2,400 Pomona Redevelopment Agency Multi-Family Housing
Revenue Bonds
(Park and Plaza Apartments-Series A) ...................... A 4.900 2,400,000
1,110 Porterville Tax and Revenue Anticipation Notes .............. 06/30/00 3.750 1,112,284
5,275 Redondo Beach Redevelopment Agency Multi-Family
Revenue Bonds
(McCandless Senior Housing Project A) ..................... A 5.550 5,275,000
5,390 Sacramento City Unified School District
Tax and Revenue Anticipation Notes ........................ 12/06/00 4.250 5,413,474
16,390 Sacramento County Certificates of Participation
(Administration Center and Courthouse Project) ............ A 4.700 16,390,000
6,000 San Bernardino County Certificates of Participation
(Medical Center Financing Project) ........................ A 4.950 6,000,000
3,000 San Bernardino County
Tax and Revenue Anticipation Notes ........................ 09/29/00 3.750 3,008,052
2,000 San Diego Tax Anticipation Notes (Series A) ................. 09/29/00 4.250 2,012,512
4,885 San Diego Unified School District Tax and
Revenue Anticipation Notes (Series A) ..................... 09/29/00 4.250 4,911,536
2,500 San Francisco City and County Multi-Family Housing
Revenue Bonds (Winerland Project-85-C ) ................... A 4.750 2,500,000
1,595 San Francisco City and County Redevelopment
Financing Authority (Yerba Buena Garden) .................. A 4.700 1,595,000
10,700 San Jose Redevelopment Agency Revenue Bonds
(Merged Area Redevelopment Project-Series A) .............. A 4.200 to 4.700 10,700,000
1,720 Santa Ana Multi-Family Housing Revenue Bonds
(Harbor Pointe Apartments-Series A) ....................... A 4.400 1,720,000
2,938 Santa Clara County El Camino Hospital District
(Hospital Facilities Authority Revenue-Series A) .......... A 4.550 2,938,000
9,800 Santa Clara County El Camino Hospital District
(Hospital Facilities Authority Revenue-Series B) .......... A 4.550 9,800,000
22,100 Santa Clara Financing Authority
(VMC Facility Replacement Project B) ...................... A 5.050 22,100,000
3,820 Simi Valley Public Financing Authority ...................... A 4.700 3,820,000
13,100 Southern Public Power Authority Project Revenue Bonds
(Palo Verde Project-Series C ) ............................ A 4.850 13,100,000
6,000 Southern Public Power Authority Project Revenue Bonds
(Southern Transmission) ................................... A 4.850 6,000,000
3,500 Tulare County Tax and Revenue Anticipation Notes ............ 06/30/00 4.250 3,515,127
27
<PAGE>
PAINEWEBBER RMA CALIFORNIA MUNICIPAL MONEY FUND
<CAPTION>
PRINCIPAL
AMOUNT
(000) MATURITY DATES INTEREST RATES VALUE
- ---------- -------------------- --------------- --------------
<S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES--(CONCLUDED)
$ 4,000 West Basin Municipal Water District Revenue
Certificates of Participation (Series A) .................. A 4.800% $ 4,000,000
8,000 West Contra Costa Unified School District
Tax and Revenue Anticipation Notes ........................ 12/06/00 4.500 8,039,441
3,010 Westminster Certificates Participation (Civic Center
Project-Series B) ......................................... A 4.750 3,010,000
3,500 Yucaipa Calimesa Joint Unified School District
Tax and Revenue Anticipation Notes ........................ 06/30/00 4.000 3,510,032
2,980 Puerto Rico Industrial Medical and Environmental
Pollution Control Facilities Financing Authority
Revenue (Series A) ........................................ 12/01/00 3.800 2,980,000
--------------
Total Municipal Bonds and Notes (cost--$508,826,044) .................... 508,826,044
--------------
TAX-EXEMPT COMMERCIAL PAPER--20.40%
2,028 California Department of Water Resources .................... 03/08/00 3.550 2,028,000
1,600 California Pollution Control Financing Authority
(Dow Chemical Company Project) ............................ 01/25/00 3.600 1,600,000
10,500 California State General Obligations ........................ 04/07/00 to 04/11/00 3.400 to 3.600 10,500,000
3,600 Anaheim Electric Authority .................................. 02/04/00 3.300 3,600,000
4,000 Modesto Irrigation District ................................. 01/20/00 to 01/31/00 3.550 to 3.650 4,000,000
3,200 Orange County Local Transportation Authority ................ 04/07/00 3.550 3,200,000
11,000 Regents of the University of California (Series A) .......... 01/19/00 to 02/23/00 3.250 to 3.500 11,000,000
19,450 San Diego Industrial Development Authority
(San Diego Gas & Electric) ................................ 01/21/00 to 02/23/00 3.200 to 3.400 19,450,000
12,901 San Diego Unified Port Authority (Series B) ................. 03/06/00 to 03/13/00 3.250 to 3.400 12,901,000
6,500 San Francisco Bay Area Rapid Transit ........................ 01/21/00 to 01/26/00 3.550 6,500,000
6,600 San Joaquin County Transportation Authority ................. 03/14/00 to 03/15/00 3.600 to 3.650 6,600,000
1,700 San Jose International Airport .............................. 04/06/00 3.600 1,700,000
4,000 Southern California Metropolitan Water District
Tax and Revenue Anticipation Notes ........................ 03/17/00 3.550 4,000,000
44,491 Puerto Rico Commonwealth Government Development Bank ........ 02/07/00 to 04/12/00 3.250 to 3.650 44,491,000
--------------
Total Tax-Exempt Commercial Paper (cost--$131,570,000) .................. 131,570,000
--------------
Total Investments (cost--$640,396,044 which approximates cost
for federal income tax purposes)--99.29% ............................. 640,396,044
Other assets in excess of liabilities--0.71% ............................ 4,608,161
--------------
Net Assets (applicable to 645,475,894 shares of beneficial
interest at $1.00 per share)--100.00% ................................ $ 645,004,205
==============
</TABLE>
- -------------------
A -- Variable rate demand notes are payable on demand. The interest rates
shown are the current rates as of December 31, 1999 and reset periodically.
Weighted average maturity--51 days
See accompanying notes to financial statements.
28
<PAGE>
PAINEWEBBER RMA NEW YORK MUNICIPAL MONEY FUND
STATEMENT OF NET ASSETS DECEMBER 31, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(000) MATURITY DATES INTEREST RATES VALUE
- ---------- -------------------- --------------- --------------
<S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES--81.55%
$ 6,400 New York State Dormitory Authority Revenues
(Cornell University) ...................................... A 4.750% $ 6,400,000
2,580 New York State Dormitory Authority Revenues
(Hospital Insured Mortgage Series A) ...................... 02/15/00 4.750 2,585,406
1,835 New York State Dormitory Authority Revenues
(Memorial Sloan D Convertible) ............................ A 5.500 1,835,000
9,477 New York State Dormitory Authority Revenues
(Metropolitan Museum of Art) .............................. A 5.350 9,477,000
1,800 New York State Dormitory Authority Revenues
(Rockefeller University Series A) ......................... A 5.350 1,800,000
8,530 New York State Dormitory Authority Revenues
(State University Educational Series B) ................... 05/15/00 7.250 to 7.375 8,825,532
5,100 New York State Energy Research & Development Authority
(New York State Electric & Gas Corporation) ............... A 4.650 to 5.050 5,100,000
8,190 New York State Energy Research & Development Authority
Facilities Revenue (Brooklyn Union Gas Company Series A1) . A 5.450 8,190,000
9,500 New York State Energy Research & Development Authority
Pollution Control Revenue (Niagara Mohawk) ................ A 4.500 to 4.900 9,500,000
14,900 New York State Energy Research & Development Authority
Pollution Control Revenue (Orange and Rockland Project A) . A 5.050 14,900,000
11,400 New York State Energy Research & Development Authority
Pollution Control Revenue (Rochester Gas & Electricity) ... A 5.050 11,400,000
3,420 New York State Housing Finance Agency
(Hospital Special Surgery Staff) .......................... A 4.300 3,420,000
3,800 New York State Housing Finance Agency
(Mount Sinai Medical Center Project) ...................... A 4.750 3,800,000
13,700 New York State Housing Finance Agency
(Normandie Court I Project) ............................... A 5.200 13,700,000
9,500 New York State Housing Finance Agency Service Contract
Obligation Revenue Series A ............................... A 5.700 9,500,000
10,915 New York State Local Government Assistance Corporation ...... A 5.000 to 5.400 10,915,000
11,955 New York State Medical Care Facilities Finance Agency
(Pooled Equipment Loan Program) ........................... A 4.900 to 5.100 11,955,000
4,285 New York State Medical Care Facilities Finance Agency
(Prerefunded Mental Health) ............................... 08/15/00 7.875 4,475,388
6,880 New York State Thruway Authority Service Contract
Revenue Local Highway & Bridge ............................ 04/01/00 to 01/01/01 4.500 to 6.000 6,957,481
300 Port Authority of New York and New Jersey ................... A 4.900 300,000
3,000 Amityville Union Free School District Tax
Anticipation Notes ........................................ 06/26/00 4.000 3,006,305
8,800 Babylon New York Industrial Development Agency
Resources (Ogden Martin Project) .......................... A 5.050 8,800,000
1,081 Bolivar Richburg Central School District .................... 06/15/00 4.800 1,085,585
1,890 Carle Place Union Free School District Tax
Anticipation Notes ........................................ 06/28/00 4.000 1,893,111
3,000 Clarkstown Central School District Tax Anticipation
Notes ..................................................... 06/30/00 4.000 3,005,027
2,000 Copiague Union Free School District Tax Anticipation
Notes ..................................................... 06/26/00 4.000 2,000,512
1,000 Edgemont Union Free School District Greenburgh
Tax Anticipation Notes .................................... 02/11/00 4.000 1,000,594
29
<PAGE>
PAINEWEBBER RMA NEW YORK MUNICIPAL MONEY FUND
<CAPTION>
PRINCIPAL
AMOUNT
(000) MATURITY DATES INTEREST RATES VALUE
- ---------- -------------------- --------------- --------------
<S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES--(CONTINUED)
$ 4,850 Erie County Water Authority ................................. A 5.050% $ 4,850,000
1,520 Great Neck North Water Authority Systems .................... A 5.450 1,520,000
3,000 Lakeland Central School District Shrub Oak Bond
Anticipation Notes ........................................ 11/22/00 4.375 3,010,908
1,400 Long Island Power Authority Series 6 ........................ A 4.750 1,400,000
2,500 Longwood Central School District Suffolk County
Tax Anticipation Notes .................................... 06/30/00 4.000 2,504,538
2,755 Massapequa Union Free School District Bond
Anticipation Notes ........................................ 04/13/00 4.000 2,756,125
2,000 Nassau County Revenue Anticipation Notes .................... 03/15/00 4.250 2,002,566
10,960 New York City ............................................... A 4.500 to 5.000 10,960,000
4,000 New York City Series A51 .................................... 04/14/00 3.850 4,000,000
1,000 New York City Series B ...................................... 06/01/00 8.000 1,019,114
13,655 New York City Health and Hospital Corporation Revenue
(Health Systems) .......................................... A 5.400 13,655,000
4,450 New York City Housing Development Corp.
(Columbus Gardens) ........................................ A 5.200 4,450,000
2,700 New York City Housing Development Corp. (East 17th
Street Project) ........................................... A 4.900 2,700,000
1,500 New York City Housing Development Corp. (James
Tower Project) ............................................ A 5.200 1,500,000
3,200 New York City Industrial Development Agency (Calhoun
School) ................................................... A 5.050 3,200,000
4,050 New York City Industrial Development Agency
(Church Heavenly Rest Day School Project) ................. A 5.350 4,050,000
1,500 New York City Municipal Assistance Corp. .................... 07/01/00 5.500 1,510,209
9,800 New York City Municipal Water Finance Authority ............. A 5.000 9,800,000
2,000 New York City Transitional Finance Authority
Future Tax Secured Series A ............................... 01/26/00 3.900 2,000,000
13,450 New York City Transitional Finance Authority
Future Tax Secured Series A & B ........................... A 4.750 to 5.500 13,450,000
5,840 New York City Trust for Cultural Resources
(American Museum of Natural History) ...................... A 5.050 5,840,000
3,400 New York City Trust for Cultural Resources
(Carnegie Hall) ........................................... A 4.900 3,400,000
150 New York City Trust for Cultural Resources
(Soloman R Guggenheim) .................................... A 4.750 150,000
4,100 Niagara Falls Toll Bridge Commission ........................ A 5.050 4,100,000
2,000 Oceanside Union Free School District Tax Anticipation
Notes ..................................................... 06/27/00 4.000 2,004,146
2,700 Oyster Bay Revenue Anticipation Notes Series A .............. 01/28/00 3.500 2,700,773
2,000 Oyster Bay Revenue Anticipation Notes Series F .............. 11/30/00 4.500 2,005,946
3,000 Oyster Bay Revenue Anticipation Notes Series G .............. 11/30/00 4.500 3,014,483
4,400 Riverhead Central School District Tax Anticipation
Notes ..................................................... 06/23/00 3.750 4,403,095
5,345 Rotterdam Industrial Development Agency
(Rotterdam Industrial Park Project) ....................... A 3.300 5,345,000
600 Saint Lawrence County Industrial Development Agency
(Dates Reynolds Metals) ................................... A 5.000 600,000
1,410 Seneca County Industrial Development Agency Civic
Facility (New York Chiropractic College) .................. A 3.070 1,410,000
4,500 Shenendehowa Center School District Revenue
Anticipation Notes ........................................ 06/30/00 4.100 4,502,864
600 Suffolk County Industrial Development Agency Research
(Cold Spring Harbor Laboratory Project) ................... A 4.750 600,000
30
<PAGE>
PAINEWEBBER RMA NEW YORK MUNICIPAL MONEY FUND
<CAPTION>
PRINCIPAL
AMOUNT
(000) MATURITY DATES INTEREST RATES VALUE
- ---------- -------------------- --------------- --------------
<S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES--(CONCLUDED)
$ 16,165 Suffolk County Water Authority Bond Anticipation Notes ...... A 5.150% $ 16,165,000
2,000 Valley Stream Central High School District
Tax Anticipation Notes .................................... 06/30/00 4.000 2,004,294
2,000 Wantagh Union Free School District Tax
Anticipation Notes ........................................ 06/29/00 4.000 2,003,812
9,457 Yonkers Industrial Development Agency (Consumers
Union Facility) ........................................... A 5.650 9,457,000
--------------
Total Municipal Bonds and Notes (cost--$325,871,814) .................... 325,871,814
--------------
TAX-EXEMPT COMMERCIAL PAPER--17.89%
4,300 New York State .............................................. 02/09/00 3.600 4,300,000
5,500 New York State Environment Series 1997 A .................... 02/07/00 to 02/16/00 3.650 to 3.700 5,500,000
21,900 New York State Power Authority .............................. 01/18/00 to 03/09/00 3.650 to 3.850 21,900,000
22,000 Metropolitan Transportation Authority ....................... 02/04/00 to 03/07/00 3.400 to 3.700 22,000,000
6,100 New York City ............................................... 01/26/00 to 04/12/00 3.400 to 3.750 6,100,000
8,000 New York City Municipal Water Finance Authority ............. 03/13/00 to 04/27/00 3.750 to 3.850 8,000,000
3,673 Puerto Rico Commonwealth Government Development Bank ........ 02/08/00 to 04/11/00 3.400 to 3.700 3,673,000
--------------
Total Tax-Exempt Commercial Paper (cost--$71,473,000) ................... 71,473,000
--------------
Total Investments (cost--$397,344,814 which approximates cost
for federal income tax purposes)--99.44% ............................. 397,344,814
Other assets in excess of liabilities--0.56% ............................ 2,225,344
--------------
Net Assets (applicable to 399,774,595 shares of beneficial
interest at $1.00 per share)--100.00% ............................... $ 399,570,158
==============
</TABLE>
A -- Variable rate demand notes are payable on demand. The interest rates
shown are the current rates as of December 31, 1999 and reset periodically.
Weighted average maturity--45 days
See accompanying notes to financial statements.
31
<PAGE>
PAINEWEBBER RMA NEW JERSEY MUNICIPAL MONEY MARKET
STATEMENT OF NET ASSETS DECEMBER 31, 1999 (UNAUDITED)
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(000) MATURITY DATES INTEREST RATES VALUE
- ---------- -------------------- --------------- --------------
<S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES--67.70%
$ 400 New Jersey State ............................................ 04/01/00 7.000% $ 403,585
3,000 New Jersey State Turnpike Authority ......................... A 5.000 3,000,000
1,435 New Jersey State Turnpike Authority
Series A .................................................. A 5.600 1,435,000
420 New Jersey Economic Development Authority ................... A 5.600 420,000
500 New Jersey Economic Development Authority
(400 International Drive Partners) ........................ A 4.250 500,000
2,640 New Jersey Economic Development Authority
(Avalon Hotel Associates) ................................. A 5.150 2,640,000
1,635 New Jersey Economic Development Authority
(Church and Dwight Company Project) ....................... A 5.550 1,635,000
725 New Jersey Economic Development Authority
(County Series D-1) ....................................... A 5.500 725,000
2,000 New Jersey Economic Development Authority
(Curtiss Wright Flight) ................................... A 4.750 2,000,000
1,500 New Jersey Economic Development Authority
(Danic Urban Renewal) ..................................... A 5.150 1,500,000
2,700 New Jersey Economic Development Authority
(El Dorado Terminals A) ................................... A 4.900 2,700,000
1,900 New Jersey Economic Development Authority
(El Dorado Terminals B) ................................... A 4.750 1,900,000
800 New Jersey Economic Development Authority
(Exxon Project) ........................................... A 4.500 800,000
1,900 New Jersey Economic Development Authority
(Elizabethtown Water Company Project A) ................... A 5.200 1,900,000
1,800 New Jersey Economic Development Authority
(Elizabethtown Water Company Project B) ................... A 5.100 1,800,000
2,000 New Jersey Economic Development Authority
(Greater Mercer County Series E) .......................... A 5.500 2,000,000
5 New Jersey Economic Development Authority
(Greater Mercer County Series G) .......................... A 5.400 5,000
2,000 New Jersey Economic Development Authority
(Greater Mercer County Series H) .......................... A 5.500 2,000,000
300 New Jersey Economic Development Authority
(Hoffman Louisiana Roche Incorporated Project) ............ A 5.000 300,000
2,000 New Jersey Economic Development Authority
(Job Haines Home Project) ................................. A 5.350 2,000,000
405 New Jersey Economic Development Authority
(Kenwood USA Corporation Project) ......................... A 4.800 405,000
1,005 New Jersey Economic Development Authority
(Nash Group 1985 Project) ................................. A 5.350 1,005,000
1,000 New Jersey Economic Development Authority
(Natural Gas Company Project Series A) .................... A 5.650 1,000,000
2,500 New Jersey Economic Development Authority
(Natural Gas Company Project Series B) .................... A 5.700 2,500,000
32
<PAGE>
PAINEWEBBER RMA NEW JERSEY MUNICIPAL MONEY MARKET
<CAPTION>
PRINCIPAL
AMOUNT
(000) MATURITY DATES INTEREST RATES VALUE
- ---------- -------------------- --------------- --------------
<S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES--(CONCLUDED)
$ 1,600 New Jersey Economic Development Authority
(Natural Gas Company Project Series C) .................... A 5.700% $ 1,600,000
4,300 New Jersey Economic Development Authority
(Public Service Electric and Gas Company Series A) ........ A 5.100 4,300,000
350 New Jersey Economic Development Authority
(St. James Prep Society Service Project) .................. A 5.200 350,000
2,605 New Jersey Economic Development Authority
(Stolthaven Project Series A) ............................. A 4.900 2,605,000
1,000 New Jersey Economic Development Authority
(Thermal Energy Limited) .................................. A 5.200 1,000,000
1,000 New Jersey Economic Development Authority
(Thermal Energy Limited Partnership) ...................... A 5.200 1,000,000
500 New Jersey Educational Facilities Authority
(Princetown University Series F) .......................... 07/01/00 4.000 501,083
500 New Jersey Educational Facilities Authority
(College of New Jersey Series A) .......................... A 5.350 500,000
3,300 Port Authority of New York and New Jersey ................... A 5.000 3,300,000
630 Burlington Township Board of Education ...................... 01/15/01 5.500 637,876
1,000 Florham Park Bond Anticipation Notes ........................ 11/03/00 4.250 1,003,793
1,000 Freehold Township Bond Anticipation Notes ................... 11/10/00 4.250 1,003,718
1,000 Jefferson Township Bond Anticipation Notes .................. 02/17/00 3.250 1,000,324
505 Lakewood Township General Improvement ....................... 01/15/00 4.625 505,239
275 Lodi New Jersey ............................................. 04/15/00 4.300 275,768
1,000 Mercer County Improvement Authority
(Atlantic Foundation & Johnson) ........................... A 5.400 1,000,000
1,275 Monmouth County New Jersey .................................. 10/01/00 5.000 1,286,100
1,700 Monmouth County Improvement Authority
(Pooled Government Loan Program) .......................... A 5.250 1,700,000
680 Monmouth County General Improvement ......................... 07/15/00 4.750 684,430
1,900 Montclair Township Temporary Notes .......................... 01/21/00 3.500 1,900,505
750 Morris County General Improvement ........................... 08/15/00 4.500 753,799
1,000 Ocean County General Improvement ............................ 04/15/00 6.375 1,008,757
1,065 Paterson County General Improvement ......................... 01/15/00 4.550 1,065,576
145 Pine Hill Borough New Jersey ................................ 08/01/00 4.950 146,026
500 Princeton Township General Improvement ...................... 07/01/00 4.500 502,420
400 Salem County Pollution Control Financing (Atlantic
City Electric B) .......................................... A 5.200 400,000
2,100 Essex County Improvement Authority .......................... A 5.650 2,100,000
2,600 Union County Pollution Control Finance Authority
(Exxon Corporation) ....................................... A 4.100 2,600,000
2,700 Federated New Jersey Municipal Cash Trust ................... A 3.700 2,700,000
1,100 Union County Industrial Pollution Control Financing Authority
Exxon Project ............................................. A 4.250 1,100,000
390 Verona New Jersey ........................................... 03/15/00 4.300 390,383
--------------
Total Municipal Bonds and Notes (cost--$73,494,382) ..................... 73,494,382
--------------
33
<PAGE>
PAINEWEBBER RMA NEW JERSEY MUNICIPAL MONEY MARKET
<CAPTION>
PRINCIPAL
AMOUNT
(000) MATURITY DATES INTEREST RATES VALUE
- ---------- -------------------- --------------- --------------
<S> <C> <C> <C>
TAX-EXEMPT COMMERCIAL PAPER--26.38%
$ 7,700 New Jersey Economic Development Authority ................... 01/20/00 to 02/14/00 3.250 to 3.750% $ 7,700,000
2,700 New Jersey Educational Facilities Authority Series A ........ 01/25/00 to 04/07/00 3.600 to 3.650 2,700,000
8,000 New Jersey Tax Revenue Series 1997 A ........................ 02/07/00 to 04/10/00 3.550 to 3.650 8,000,000
1,400 Port Authority of New York and New Jersey ................... 02/11/00 3.250 1,400,000
5,438 Puerto Rico Commonwealth Government Development Bank ........ 02/04/00 to 03/13/00 3.350 to 3.600 5,438,000
800 Salem County Pollution Control Financing Series 1988A ....... 01/14/00 3.400 800,000
1,200 Salem County Pollution Control Financing (Electric And Gas) . A 5.500 1,200,000
1,400 Salem County New Jersey Pollution Control 1988A ............. 04/11/00 3.600 1,400,000
--------------
Total Tax-Exempt Commercial Paper (cost--$28,638,000) ................... 28,638,000
--------------
Total Investments (cost--$102,132,382 which approximates
cost for federal income tax purposes)--94.08% ......................... 102,132,382
Other assets in excess of liabilities--5.92% ............................ 6,431,099
--------------
Net Assets (applicable to 108,568,218 shares of beneficial
interest at $1.00 per share)--100.00% ................................ $ 108,563,481
==============
</TABLE>
- --------------------
A -- Variable rate demand notes are payable on demand. The interest rates
shown are the current rates as of December 31, 1999 and reset periodically.
Weighted average maturity--37 days
See accompanying notes to financial statements.
34
<PAGE>
PAINEWEBBER
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
FOR THE SIX MONTHS ENDED DECEMBER 31, 1999 (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 .................................. $388,082,179 $35,836,508 $45,036,274 $9,443,450 $6,585,092 $1,369,345
------------ ----------- ----------- ---------- ---------- ----------
EXPENSES:
Investment advisory and administration .... 35,981,557 2,968,772 5,662,085 1,440,091 963,170 210,942
Transfer agency and related services fees . 3,958,963 219,207 351,600 77,883 26,125 13,594
Custody and accounting .................... 717,347 72,163 133,146 31,940 15,829 4,219
Federal and state registration ............ 441,105 40,989 67,372 17,837 13,879 8,752
Reports and notices to shareholders ....... 278,185 28,465 73,250 22,678 9,440 8,672
Legal and audit ........................... 136,989 58,835 85,200 29,065 27,120 19,744
Insurance ................................. 138,981 16,750 17,250 8,521 6,790 875
Directors'/Trustees' fees ................. 5,250 5,250 5,250 5,250 5,250 5,250
Distribution fees ......................... -- 894,666 1,651,795 383,408 247,921 50,626
Other expenses ............................ 38,648 5,623 87,759 5,249 2,531 21,970
------------ ----------- ----------- ---------- ---------- ----------
41,697,025 4,310,720 8,134,707 2,021,922 1,318,055 344,644
------------ ----------- ----------- ---------- ---------- ----------
Net investment income ..................... 346,385,154 31,525,788 36,901,567 7,421,528 5,267,037 1,024,701
NET REALIZED GAIN (LOSS) FROM
INVESTMENT TRANSACTIONS ................. 28,451 5,653 (2,215) 3 -- --
------------ ----------- ----------- ---------- ---------- ----------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS .............................. $346,413,605 $31,531,441 $36,899,352 $7,421,531 $5,267,037 $1,024,701
============ =========== =========== ========== ========== ==========
</TABLE>
See accompanying notes to financial statements
35
<PAGE>
PAINEWEBBER
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE SIX MONTHS ENDED
DECEMBER 31, 1999 FOR THE YEAR ENDED
(UNAUDITED) JUNE 30, 1999
------------------------ ------------------
<S> <C> <C>
PAINEWEBBER RMA MONEY MARKET PORTFOLIO
FROM OPERATIONS:
Net investment income ............................................... $ 346,385,154 $ 590,891,031
Net realized gain from investment transactions ...................... 28,451 669,851
--------------- ---------------
Net increase in net assets resulting from operations ................ 346,413,605 591,560,882
--------------- ---------------
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income ............................................... (346,385,154) (590,891,031)
--------------- ---------------
Net increase in net assets from capital share transactions .......... 1,071,541,126 2,310,244,447
--------------- ---------------
Net increase in net assets .......................................... 1,071,569,577 2,310,914,298
NET ASSETS:
Beginning of period ................................................. 13,446,140,114 11,135,225,816
--------------- ---------------
End of period ....................................................... $14,517,709,691 $13,446,140,114
--------------- ---------------
PAINEWEBBER RMA U.S. GOVERNMENT PORTFOLIO
FROM OPERATIONS:
Net investment income ............................................... $ 31,525,788 $ 60,699,944
Net realized gain from investment transactions ...................... 5,653 2,334
--------------- ---------------
Net increase in net assets resulting from operations ................ 31,531,441 60,702,278
--------------- ---------------
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income ............................................... (31,525,788) (60,699,944)
--------------- ---------------
Net increase in net assets from capital share transactions .......... 182,625,844 175,015,861
--------------- ---------------
Net increase in net assets .......................................... 182,631,497 175,018,195
NET ASSETS:
Beginning of period ................................................. 1,354,593,669 1,179,575,474
--------------- ---------------
End of period ....................................................... $ 1,537,225,166 $ 1,354,593,669
=============== ===============
PAINEWEBBER RMA TAX FREE FUND, INC.
FROM OPERATIONS:
Net investment income ............................................... $ 36,901,567 $ 66,764,600
Net realized gain (loss) from investment transactions ............... (2,215) 47,717
--------------- ---------------
Net increase in net assets resulting from operations ................ 36,899,352 66,812,317
--------------- ---------------
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income ............................................... (36,901,567) (66,764,600)
--------------- ---------------
Net increase in net assets from capital share transactions .......... 132,115,447 152,921,293
--------------- ---------------
Net increase in net assets .......................................... 132,113,232 152,969,010
NET ASSETS:
Beginning of period ................................................. 2,424,937,913 2,271,968,903
--------------- ---------------
End of period ....................................................... $ 2,557,051,145 $ 2,424,937,913
=============== ===============
</TABLE>
See accompanying notes to financial statements
36
<PAGE>
PAINEWEBBER
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE SIX MONTHS ENDED
DECEMBER 31, 1999 FOR THE YEAR ENDED
(UNAUDITED) JUNE 30, 1999
------------------------ ------------------
<S> <C> <C>
PAINEWEBBER RMA CALIFORNIA MUNICIPAL MONEY FUND
FROM OPERATIONS:
Net investment income ............................................. $ 7,421,528 $ 14,099,234
Net realized gain from investment transactions .................... 3 1,210
-------------- --------------
Net increase in net assets resulting from operations .............. 7,421,531 14,100,444
-------------- --------------
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income ............................................. (7,421,528) (14,099,234)
-------------- --------------
Net increase in net assets from beneficial interest transactions... 69,708,594 8,337,126
-------------- --------------
Net increase in net assets......................................... 69,708,597 8,338,336
NET ASSETS:
Beginning of period ............................................... 575,295,608 566,957,272
-------------- --------------
End of period ..................................................... $ 645,004,205 $ 575,295,608
============== ==============
PAINEWEBBER RMA NEW YORK MUNICIPAL MONEY FUND
FROM OPERATIONS:
Net investment income ............................................. $ 5,267,037 $ 10,153,704
Net realized gain from investment transactions .................... -- 11,853
-------------- --------------
Net increase in net assets resulting from operations .............. 5,267,037 10,165,557
-------------- --------------
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income ............................................. (5,267,037) (10,153,704)
-------------- --------------
Net increase in net assets from beneficial interest transactions... 26,690,436 33,477,063
-------------- --------------
Net increase in net assets ........................................ 26,690,436 33,488,916
NET ASSETS:
Beginning of period ............................................... 372,879,722 339,390,806
-------------- --------------
End of period ..................................................... $ 399,570,158 $ 372,879,722
-------------- --------------
PAINEWEBBER RMA NEW JERSEY MUNICIPAL MONEY FUND
FROM OPERATIONS:
Net investment income ............................................. $ 1,024,701 $ 1,418,145
Net realized loss from investment transactions .................... -- (2)
-------------- --------------
Net increase in net assets resulting from operations .............. 1,024,701 1,418,143
-------------- --------------
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income ............................................. (1,024,701) (1,418,145)
-------------- --------------
Net increase in net assets from beneficial interest transactions... 45,591,426 14,692,667
-------------- --------------
Net increase in net assets......................................... 45,591,426 14,692,665
NET ASSETS:
Beginning of period ............................................... 62,972,055 48,279,390
-------------- --------------
End of period ..................................................... $ 108,563,481 $ 62,972,055
============== ==============
</TABLE>
See accompanying notes to financial statements
37
<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 the Funds' management to make estimates and
assumptions that affect the reported amounts and disclosures in the financial
statements. Actual results could differ from those estimates. The following is a
summary of significant accounting policies:
VALUATION AND ACCOUNTING FOR INVESTMENTS AND INVESTMENT INCOME--Investments
are valued at amortized cost which approximates market value. Investment
transactions are recorded on the trade date. Realized gains and losses from
investment transactions are calculated using the identified cost method.
Interest income is recorded on the accrual basis. Premiums are amortized and
discounts are accreted as adjustments to interest income and the identified cost
of investments.
REPURCHASE AGREEMENTS--The Money Market Portfolio's and U.S. Government
Portfolio's custodian takes possession of the collateral pledged for investments
in repurchase agreements. The underlying collateral is valued daily on a
mark-to-market basis to ensure that the value, including accrued interest, is at
least equal to the repurchase price. In the event of default of the obligation
to repurchase, each Fund has the right to liquidate the collateral and apply the
proceeds in satisfaction of the obligation. Under certain circumstances, in the
event of default or bankruptcy by the other party to the agreement, realization
and/or retention of the collateral may be subject to legal proceedings.
DIVIDENDS AND DISTRIBUTIONS--Dividends and distributions to shareholders are
recorded on the ex-dividend date. The amount of dividends and distributions is
determined in accordance with federal income tax regulations, which may differ
from generally accepted accounting principles. These "book/tax" differences are
either considered temporary or permanent in nature. To the extent these
differences are permanent in nature, such amounts are reclassified within the
capital accounts based on their federal tax-basis treatment; temporary
differences do not require reclassification.
38
<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
At December 31, 1999, the Funds owed PaineWebber for investment advisory and administration fees as follows:
Money Market Portfolio ................................................... $ 6,337,052
U.S. Government Portfolio ................................................ 501,890
RMA Tax-Free ............................................................. 972,383
RMA California ........................................................... 248,366
RMA New York ............................................................. 158,027
RMA New Jersey ........................................................... 44,516
</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 to 0.12% of average daily net assets for
providing certain shareholder services. Currently, PaineWebber is compensated
39
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
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, 1999, the Funds owed PaineWebber for such
service fees as follows:
<TABLE>
<S> <C>
U.S. Government Portfolio ................................................ $ 151,328
RMA Tax-Free ............................................................. 284,696
RMA California ........................................................... 66,227
RMA New York ............................................................. 40,563
RMA New Jersey ........................................................... 10,684
</TABLE>
TRANSFER AGENCY AND RELATED SERVICES FEES
PaineWebber provides transfer agency and related services to the Funds
pursuant to a delegation of authority from PFPC, Inc., the Funds' transfer
agent, and is compensated for these services by PFPC, Inc., not the Funds. For
the six months ended December 31, 1999, PaineWebber received an approximate
percentage of total transfer agency and related service fees from PFPC, Inc.,
not the Funds, as follows:
<TABLE>
<S> <C>
Money Market Portfolio ................................................... 54%
U.S. Government Portfolio ................................................ 54%
RMA Tax-Free ............................................................. 53%
RMA California ........................................................... 54%
RMA New York ............................................................. 53%
RMA New Jersey ........................................................... 58%
</TABLE>
MONEY MARKET FUND INSURANCE BOND
Effective September 30, 1999, each Fund (except U.S. Government Portfolio)
obtained an insurance bond that provides limited coverage for certain loss
events involving certain money market instruments held by each Fund. These loss
events include non-payment of principal or interest or a bankruptcy or
insolvency of the issuer or credit enhancement provider (if any). The insurance
bond provides for coverage up to $200 million for a number of funds with a
deductible of 10 basis points (0.10%) of the total assets of each Fund for First
Tier Securities and 50 basis points (0.50%) of the total assets of each Fund for
Second Tier Securities, in each case determined as of the close of business on
the first business day prior to the loss event. In the event of a loss covered
under the insurance bond, each Fund would expect to retain the security in its
portfolio, rather than having to sell it at its current market value, until the
date of payment of the loss, which is generally no later than the maturity of
the security. While the policy is intended to provide some protection against
credit risk and to help each Fund maintain a constant price per share of $1.00,
there is no guarantee that the insurance will do so. For the period September
30, 1999 to December 31, 1999, the Funds did not use this insurance bond.
OTHER LIABILITIES
At December 31, 1999, the Funds had the following liabilities outstanding:
<TABLE>
<CAPTION>
PAYABLE FOR
DIVIDENDS INVESTMENTS
PAYABLE PURCHASED
------------ ------------
<S> <C> <C>
Money Market Portfolio ......................................... $ 23,204,312 $ --
U.S. Government Portfolio ...................................... 1,930,126 --
RMA Tax-Free ................................................... 2,902,156 37,990,752
RMA California ................................................. 598,881 --
RMA New York ................................................... 421,773 --
RMA New Jersey ................................................. 106,196 --
</TABLE>
40
<PAGE>
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
FEDERAL TAX STATUS
Each Fund intends to distribute all of its income and to comply with the
other requirements of the Internal Revenue Code applicable to regulated
investment companies. Accordingly, no provision for federal income taxes is
required. In addition, by distributing during each calendar year substantially
all of its net investment income, capital gains and certain other amounts, if
any, the Funds do not intend to be subject to federal excise tax.
At June 30, 1999, the Funds had capital loss carryforwards as follows:
<TABLE>
<S> <C>
Money Market Portfolio ................................................... $ 2,458,926
RMA Tax-Free ............................................................. 350,027
RMA California ........................................................... 203,438
RMA New York ............................................................. 67,140
RMA New Jersey ........................................................... 4,739
</TABLE>
These loss carryforwards are available as reductions, to the extent provided
in the regulations, of future net realized capital gains, and will expire on
June 30, 2003 for Money Market Portfolio, between June 30, 2000 and June 30,
2004 for RMA Tax-Free and RMA California, between June 30, 2000 and June 30,
2003 for RMA New York, and between June 30, 2002 and June 30, 2007 for RMA New
Jersey. To the extent these losses are used to offset future net capital gains,
the gains so offset will not be distributed. U.S. Government Portfolio did not
have a capital loss carryforward at June 30, 1999.
CAPITAL SHARE TRANSACTIONS
There are 30 billion $0.001 par value authorized shares of common stock
relating to Money Market Portfolio, 10 billion $0.001 par value authorized
shares of common stock relating to the U.S. Government Portfolio and 20 billion
$0.001 par value authorized shares of common stock relating to the RMA Tax-Free.
Transactions in capital shares, at $1.00 per share, were as follows:
<TABLE>
<CAPTION>
FOR THE SIX MONTHS ENDED DECEMBER 31, 1999
-------------------------------------------------------
MONEY MARKET U.S. GOVERNMENT RMA
PORTFOLIO PORTFOLIO TAX-FREE
--------------- --------------- --------------
<S> <C> <C> <C>
Shares sold .......................................... 45,476,115,256 3,777,426,113 7,464,735,121
Shares repurchased ................................... (44,742,806,855) (3,625,940,553) (7,368,476,328)
Dividends reinvested ................................. 338,232,725 31,140,284 35,856,654
--------------- -------------- --------------
Net increase in shares outstanding ................... 1,071,541,126 182,625,844 132,115,447
--------------- -------------- --------------
--------------- -------------- --------------
</TABLE>
<TABLE>
<CAPTION>
FOR THE YEAR ENDED JUNE 30, 1999
-------------------------------------------------------
MONEY MARKET U.S. GOVERNMENT RMA
PORTFOLIO PORTFOLIO TAX-FREE
--------------- -------------- ---------------
<S> <C> <C> <C>
Shares sold ............................................... 78,943,557,998 7,619,283,399 14,110,685,842
Shares repurchased ........................................ (77,207,533,976) (7,503,585,467) (14,022,965,674)
Dividends reinvested ...................................... 574,220,425 59,317,929 65,201,125
--------------- -------------- --------------
Net increase in shares outstanding ........................ 2,310,244,447 175,015,861 152,921,293
--------------- -------------- --------------
--------------- -------------- --------------
</TABLE>
41
<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, 1999
------------------------------------------------
RMA RMA RMA
CALIFORNIA NEW YORK NEW JERSEY
-------------- -------------- -------------
<S> <C> <C> <C>
Shares sold ............................................... 1,564,286,757 1,286,991,136 282,513,437
Shares repurchased ........................................ (1,501,785,857) (1,265,388,568) (237,874,266)
Dividends reinvested ...................................... 7,207,694 5,087,868 952,255
-------------- -------------- -------------
Net increase in shares outstanding ........................ 69,708,594 26,690,436 45,591,426
-------------- -------------- -------------
-------------- -------------- -------------
</TABLE>
<TABLE>
<CAPTION>
FOR THE YEAR ENDED JUNE 30, 1999
------------------------------------------------
RMA RMA RMA
CALIFORNIA NEW YORK NEW JERSEY
-------------- -------------- -------------
<S> <C> <C> <C>
Shares sold ............................................... 3,334,106,869 2,849,385,444 487,037,910
Shares repurchased ........................................ (3,339,563,811) (2,825,755,516) (473,713,631)
Dividends reinvested ...................................... 13,794,068 9,847,135 1,368,388
-------------- -------------- -------------
Net increase in shares outstanding ........................ 8,337,126 33,477,063 14,692,667
-------------- -------------- -------------
-------------- -------------- -------------
</TABLE>
42
<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 YEARS ENDED JUNE 30,
FOR THE ---------------------------------------------------------------
SIX MONTHS ENDED
DECEMBER 31, 1999
(UNAUDITED) 1999 1998 1997 1996 1995
----------------- ------------ ------------ ----------- ----------- -----------
<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 ..................... 0.024 0.046 0.051 0.049 0.051 0.049
Dividends from net investment income ...... (0.024) (0.046) (0.051) (0.049) (0.051) (0.049)
------------ ------------ ------------ ----------- ----------- -----------
Net asset value, end of period ............ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------------ ------------ ------------ ----------- ----------- -----------
------------ ------------ ------------ ----------- ----------- -----------
Total investment return(1) ................ 2.44% 4.76% 5.21% 5.04% 5.25% 5.00%
------------ ------------ ------------ ----------- ----------- -----------
------------ ------------ ------------ ----------- ----------- -----------
Ratios/Supplemental Data:
Net assets, end of period (000's) ......... $ 14,517,710 $ 13,446,140 $ 11,135,226 $ 8,673,055 $ 7,522,612 $ 5,398,146
Expenses to average net assets ............ 0.58%* 0.59% 0.60% 0.59% 0.60%(2) 0.59%
Net investment income to average net assets 4.81%* 4.64% 5.09% 4.94% 5.14%(2) 4.91%
</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) These ratios include non-recurring acquisition expenses of 0.01%.
43
<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 YEARS ENDED JUNE 30,
FOR THE ---------------------------------------------------------------
SIX MONTHS ENDED
DECEMBER 31, 1999
(UNAUDITED) 1999 1998 1997 1996 1995
----------------- ------------ ------------ ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period ...... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------------ ------------ ------------ ----------- ----------- -----------
Net investment income ..................... 0.022 0.044 0.049 0.048 0.049 0.046
Dividends from net investment income ...... (0.022) (0.044) (0.049) (0.048) (0.049) (0.046)
------------ ------------ ------------ ----------- ----------- -----------
Net asset value, end of period ............ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------------ ------------ ------------ ----------- ----------- -----------
------------ ------------ ------------ ----------- ----------- -----------
Total investment return(1) ................ 2.23% 4.45% 5.05% 4.88% 5.04% 4.67%
------------ ------------ ------------ ----------- ----------- -----------
------------ ------------ ------------ ----------- ----------- -----------
Ratios/Supplemental Data:
Net assets, end of period (000's) ......... $ 1,537,225 $ 1,354,594 $ 1,179,575 $ 1,083,866 $ 1,137,510 $ 815,781
Expenses to average net assets ............ 0.60%* 0.60% 0.57% 0.62% 0.65%(2) 0.63%
Net investment income to average net assets 4.39%* 4.35% 4.93% 4.78% 4.91%(2) 4.55%
</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) These ratios include non-recurring acquisition expenses of 0.02%.
44
<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 YEARS ENDED JUNE 30,
FOR THE ---------------------------------------------------------------
SIX MONTHS ENDED
DECEMBER 31, 1999
(UNAUDITED) 1999 1998 1997 1996 1995
----------------- ------------ ------------ ----------- ----------- -----------
<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 0.026 0.031 0.029 0.030 0.030
Dividends from net investment income ...... (0.014) (0.026) (0.031) (0.029) (0.030) (0.030)
------------ ------------ ------------ ----------- ----------- -----------
Net asset value, end of period ............ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------------ ------------ ------------ ----------- ----------- -----------
------------ ------------ ------------ ----------- ----------- -----------
Total investment return(1) ................ 1.41% 2.67% 3.10% 2.98% 3.09% 3.03%
------------ ------------ ------------ ----------- ----------- -----------
------------ ------------ ------------ ----------- ----------- -----------
Ratios/Supplemental Data:
Net assets, end of period (000's) ......... $ 2,557,051 $ 2,424,938 $ 2,271,969 $ 2,065,920 $ 2,013,448 $ 1,562,040
Expenses to average net assets ............ 0.62%* 0.59% 0.58% 0.61% 0.61%(2) 0.63%
Net investment income to average net assets 2.79%* 2.63% 3.06% 2.94% 3.02%(2) 3.00%
</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) These ratios include non-recurring acquisition expenses of 0.01%.
45
<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 YEARS ENDED JUNE 30,
FOR THE ---------------------------------------------------------------
SIX MONTHS ENDED
DECEMBER 31, 1999
(UNAUDITED) 1999 1998 1997 1996 1995
----------------- ------------ ------------ ----------- ----------- -----------
<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 0.023 0.028 0.028 0.029 0.029
Dividends from net investment income ...... (0.012) (0.023) (0.028) (0.028) (0.029) (0.029)
------------ ------------ ------------ ----------- ----------- -----------
Net asset value, end of period ............ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------------ ------------ ------------ ----------- ----------- -----------
------------ ------------ ------------ ----------- ----------- -----------
Total investment return(1) ................ 1.22% 2.31% 2.87% 2.87% 2.89% 2.91%
------------ ------------ ------------ ----------- ----------- -----------
------------ ------------ ------------ ----------- ----------- -----------
Ratios/Supplemental Data:
Net assets, end of period (000's) ......... $ 645,004 $ 575,296 $ 566,957 $ 492,915 $ 473,726 $ 330,937
Expenses to average net assets ............ 0.66%* 0.67% 0.65% 0.62% 0.70%(2) 0.69%
Net investment income to average net assets 2.42%* 2.28% 2.83% 2.83% 2.82%(2) 2.87%
</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) These ratios include non-recurring acquisition expenses of 0.03%.
46
<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 YEARS ENDED JUNE 30,
FOR THE ---------------------------------------------------------------
SIX MONTHS ENDED
DECEMBER 31, 1999
(UNAUDITED) 1999 1998 1997 1996 1995
----------------- ------------ ------------ ----------- ----------- -----------
<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 0.025 0.029 0.028 0.029 0.028
Dividends from net investment income ...... (0.013) (0.025) (0.029) (0.028) (0.029) (0.028)
------------ ------------ ------------ ----------- ----------- -----------
Net asset value, end of period ............ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------------ ------------ ------------ ----------- ----------- -----------
------------ ------------ ------------ ----------- ----------- -----------
Total investment return(1) ................ 1.35% 2.50% 2.97% 2.85% 2.91% 2.81%
------------ ------------ ------------ ----------- ----------- -----------
------------ ------------ ------------ ----------- ----------- -----------
Ratios/Supplemental Data:
Net assets, end of period (000's) ......... $ 399,570 $ 372,880 $ 339,391 $ 274,338 $ 255,177 $ 192,799
Expenses to average net assets before
waiver from adviser ..................... 0.66%* 0.65% 0.65% 0.77% 0.74%(2) 0.71%
Expenses to average net assets after
waiver from adviser ..................... 0.66%* 0.65% 0.65% 0.67% 0.72%(2) 0.68%
Net investment income to average net
assets before waiver from adviser ......... 2.66%* 2.46% 2.92% 2.71% 2.80%(2) 2.78%
Net investment income to average net
assets after waiver from adviser ........ 2.66%* 2.46% 2.92% 2.81% 2.82%(2) 2.81%
</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) These ratios include non-recurring acquisition expenses of 0.04%.
47
<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
MONTHS ENDED YEARS ENDED
SIX MONTHS ENDED FOR THE YEARS ENDED JUNE 30, JUNE 30, OCTOBER 31,
DECEMBER 31, 1999 ------------------------------ --------------- ------------------
(UNAUDITED) 1999 1998 1997 1996 1995(2) 1994
----------------- ---------- --------- --------- --------------- --------- --------
<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 ....................... 0.012 0.022 0.026 0.026 0.017 0.027 0.018
Dividends from net investment income ........ (0.012) (0.022) (0.026) (0.026) (0.017) (0.027) (0.018)
--------- -------- -------- -------- -------- ------- --------
Net asset value, end of period .............. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
--------- -------- -------- -------- -------- ------- --------
--------- -------- -------- -------- -------- ------- --------
Total investment return(1) .................. 1.20% 2.21% 2.67% 2.65% 1.71% 2.75% 1.76%
--------- -------- -------- -------- -------- ------- --------
--------- -------- -------- -------- -------- ------- --------
Ratios/Supplemental Data:
Net assets, end of period (000's) ........... $ 108,563 $ 62,972 $ 48,279 $ 52,324 $ 42,233 $ 36,206 $ 31,981
Expenses to average net assets .............. 0.82%* 0.89% 0.85% 0.81% 0.95%* 0.93% 0.85%
Net investment income to average net assets.. 2.39%* 2.18% 2.64% 2.63% 2.56%* 2.73% 1.74%
</TABLE>
- -----------------
* Annualized
(1) Total investment return is calculated assuming a $1,000 investment on the
first day of each period reported, reinvestment of all dividends and
distributions at net asset value on the payable dates, and a sale at net
asset value on the last day of each period reported. Total investment
returns for periods of less than one year have not been annualized.
(2) Investment advisory functions for the Fund were transferred from Kidder,
Peabody Asset Management, Inc. to PaineWebber on January 30, 1995.
48
<PAGE>
SEMIANNUAL REPORT
- --------------------------------------------------------------------------------
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
DECEMBER 31, 1999
PAINEWEBBER
-C-2000 PaineWebber Incorporated
All rights reserved
Member SIPC
<PAGE>
- --------------------------------------------------------------------------------
DIRECTORS/TRUSTEES
E. Garrett Bewkes, Jr.
CHAIRMAN
Margo N. Alexander
Richard Q. Armstrong
Richard R. Burt
Mary C. Farrell
Meyer Feldberg
George W. Gowen
Frederic V. Malek
Carl W. Schafer
Brian M. Storms
PRINCIPAL OFFICERS
Margo N. Alexander
PRESIDENT
Victoria E. Schonfeld
VICE PRESIDENT
Dianne E. O'Donnell
VICE PRESIDENT AND SECRETARY
Paul H. Schubert
VICE PRESIDENT AND TREASURER
Dennis L. McCauley
VICE PRESIDENT
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.
51 West 52nd Street
New York, New York 10019
THE FINANCIAL INFORMATION INCLUDED HEREIN IS TAKEN FROM THE RECORD 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.
