<PAGE>
RMA MONEY MARKET FUNDS ANNUAL REPORT
August 15, 2000
Dear Shareholder,
We are pleased to present you with the annual report for PaineWebber RMA Money
Market Portfolio; PaineWebber RMA U.S. Government Portfolio; PaineWebber RMA
Tax-Free Fund, Inc.; PaineWebber RMA California Municipal Money Fund;
PaineWebber RMA New York Municipal Money Fund; and PaineWebber RMA New Jersey
Municipal Money Fund, for the 12-month period ended June 30, 2000.
MARKET REVIEW
As the fiscal year came to a close, signs pointed to a slowing economy, giving
hope that the Federal Reserve might decide against additional belt-tightening at
its August 22 meeting. During the 12 months ended June 30, 2000 the Fed Funds
rate increased six times by a combined total of 1.75%, capped by a half-percent
increase in May. Speculation that rates would increase one more time in August
has been tempered by late economic news. Gross domestic product (GDP), adjusted
for inflation, slowed in the second quarter after recording a 5.5% increase
during the first quarter and 7.3% surge in fourth quarter 1999. Gasoline prices,
which increased dramatically during the period, are expected to drop slowly in
the coming months. Unemployment figures remain a concern, however, as a
continuing shortage of workers may continue to pressure wages.
The U.S. Treasury's announcement in January to buy back $30 billion in Treasury
debt during 2000 continued to drive down the yield on the 30-year Treasury,
causing a dramatic yield curve inversion and creating only a 0.50% difference
between two-year notes and the 30-year bond. Short-term rates rose during the
fiscal year, with the yield on 90-day T-bills increasing from 4.76% to 5.86% at
fiscal year end.
PORTFOLIO REVIEWS
<TABLE>
<CAPTION>
7-Day Weighted
Current Avg.
PERFORMANCE AND CHARACTERISTICS, 6/30/00* Yield Maturity Net Assets
----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
PaineWebber RMA Money Market Portfolio 6.02% 52 days $15.821 billion
PaineWebber RMA U.S. Government Portfolio 5.61% 45 days $1.671 billion
PaineWebber RMA Tax-Free Fund, Inc. 3.93% 42 days $2.594 billion
PaineWebber RMA California Municipal Money Fund 3.46% 68 days $626.4 million
PaineWebber RMA New York Municipal Money Fund 3.65% 55 days $437.3 million
PaineWebber RMA New Jersey Municipal Money Fund 3.52% 56 days $93.3 million
----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
* Yields will vary. Fund characteristics are as of June 30, 2000. The Funds are
actively managed, and their composition will vary over time.
- PAINEWEBBER RMA
MONEY MARKET PORTFOLIO
- PAINEWEBBER RMA
U.S. GOVERNMENT PORTFOLIO
INVESTMENT GOAL
(BOTH FUNDS):
Maximum current income consistent with preservation of capital and liquidity
PORTFOLIO MANAGER:
Susan P. Ryan
Mitchell Hutchins
Asset Management Inc.
COMMENCEMENT:
10/4/82 (both Portfolios)
- PAINEWEBBER RMA
TAX-FREE FUND, INC.
- PAINEWEBBER RMA CALIFORNIA MUNICIPAL MONEY FUND
- PAINEWEBBER RMA NEW YORK MUNICIPAL MONEY FUND
- PAINEWEBBER RMA NEW JERSEY MUNICIPAL MONEY FUND
INVESTMENT GOAL
(ALL FOUR FUNDS):
Maximum current income exempt from Federal and/or a specific state's personal
income taxes consistent with preservation of capital and liquidity
PORTFOLIO MANAGER:
Elbridge T. Gerry, III
Mitchell Hutchins
Asset Management Inc.
COMMENCEMENT:
10/4/82 (Tax-Free)
11/7/88 (CA Municipal)
11/10/88 (NY Municipal)
2/1/91 (NJ Municipal)
DIVIDEND PAYMENTS
(ALL SIX FUNDS):
Monthly
1
<PAGE>
With weighted average maturities below their peer-group averages during the
one-year period, the Funds' positions helped as interest rates rose
significantly during the span. At the same time, the Funds continued to focus on
investments of the highest credit quality and liquidity.
OUTLOOK
Although there is no guarantee that the Federal Reserve won't have more
rate increases in the offing this year, the rate increases the Fed has imposed
over the past year should have served their purpose with the economy primed for
a soft landing. We anticipate that inflation as measured by the Consumer Price
Index (CPI) will slow to approximately 3.5% annually by year-end and to 3%
annually in 2001. Also, we believe the fixed income market may stabilize, and
spreads should recover, if the economy cools and interest rates level
off.
Whichever way the economy turns, our objective remains to help you 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 Management Inc. Asset Management Inc. Asset Management Inc.
/s/ Susan P. Ryan /s/ Elbridge T. Gerry, III
Susan P. Ryan Elbridge T. Gerry, III
Portfolio Manager Portfolio Manager
PaineWebber RMA PaineWebber RMA
Money Market Portfolio Tax-Free Fund, Inc.
PaineWebber RMA PaineWebber RMA California
U.S. Government Portfolio Municipal Money Fund
PaineWebber RMA New York
Municipal Money Fund
PaineWebber RMA New Jersey
Municipal Money Fund
This letter is intended to assist shareholders in understanding how the Funds
performed during the 12-month period ended June 30, 2000, 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.
2
<PAGE>
PAINEWEBBER RMA MONEY MARKET PORTFOLIO
STATEMENT OF NET ASSETS JUNE 30, 2000
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(000) MATURITY DATES INTEREST RATES VALUE
--------- -------------------- --------------- --------------
<S> <C> <C> <C>
U.S GOVERNMENT AND AGENCY OBLIGATIONS--14.94%
$ 104,200 U.S. Treasury Bills ............................................... 07/20/00 to 10/12/00 4.750 to 5.150% $ 103,885,704
95,000 Federal Farm Credit Bank .......................................... 07/09/00 6.244* 94,996,097
75,000 Federal Home Loan Bank ............................................ 08/23/00 to 07/10/01 5.810 to 7.090 75,000,000
204,000 Federal Home Loan Bank ............................................ 07/03/00 to 07/12/00 6.294 to 6.850* 203,983,097
278,656 Federal Home Loan Bank ............................................ 07/05/00 to 07/06/00 6.370 to 6.460@ 278,429,912
123,450 Federal Home Loan Mortgage Corporation ............................ 07/05/00 to 07/11/00 6.400 to 6.420@ 123,255,495
50,000 Federal National Mortgage Association ............................. 07/04/00 6.374* 50,000,000
300,000 Federal National Mortgage Association ............................. 07/05/00 6.400 to 6.420@ 299,733,000
1,134,100 Student Loan Marketing Association ................................ 07/04/00 to 07/05/00 6.194 to 6.544* 1,134,003,077
--------------
Total U.S. Government and Agency Obligations (cost--$2,363,286,382).......... 2,363,286,382
--------------
BANK NOTES--2.55%
DOMESTIC--2.23%
50,000 Bank One, N.A. .................................................... 07/26/00 6.258* 49,985,615
85,000 Comerica Bank, N.A. ............................................... 07/05/00 to 07/07/00 6.528 to 6.584* 84,975,865
125,000 Fifth Third Bank of Western Ohio, N.A. ............................ 07/24/00 6.600 125,001,132
93,700 LaSalle Bank, N.A. ................................................ 07/14/00 to 07/21/00 5.670 to 5.690 93,699,314
--------------
353,661,926
--------------
YANKEE--0.32%
50,000 Australia & New Zealand Banking ................................... 09/06/00 6.811* 49,986,540
--------------
Total Bank Notes (cost--$403,648,466)......................................... 403,648,466
--------------
CERTIFICATES OF DEPOSIT--10.69%
YANKEE--10.69%
100,000 ABN AMRO Bank N.V. ................................................ 03/07/01 6.750 99,987,121
72,000 Bank Of Nova Scotia ............................................... 02/20/01 to 04/30/01 6.750 to 6.850 71,989,576
50,000 Bank of Scotland .................................................. 07/25/00 6.621* 49,995,642
49,000 Bayerische Hypo und Vereinsbank AG ................................ 07/12/00 5.710 48,999,434
50,000 Canadian Imperial Bank of Commerce ................................ 03/12/01 6.750 49,993,432
355,000 Commerzbank AG .................................................... 07/20/00 TO 06/29/01 5.670 TO 7.150 354,960,626
50,000 Commerzbank AG .................................................... 07/05/01 6.595* 49,982,500
50,000 Dresdner Bank AG .................................................. 06/18/01 7.120 50,014,424
45,000 Lloyds ISB Bank PLC ............................................... 09/29/00 6.420 44,956,452
25,000 National Westminster Bank PLC ..................................... 07/03/00 5.530 24,999,974
10,000 Rabobank Nederland ................................................ 02/22/01 6.760 9,996,934
150,000 Royal Bank of Canada .............................................. 03/19/01 to 04/06/01 6.750 to 6.850 149,979,639
50,000 San Paolo IMI SPA ................................................. 07/13/00 6.590 50,000,166
62,000 Societe Generale .................................................. 07/19/00 6.594* 61,991,054
354,500 Svenska Handelsbanken ............................................. 07/26/00 to 06/20/01 6.280 to 7.320 354,489,083
60,000 UBS AG ............................................................ 12/01/00 to 06/22/01 6.200 to 7.080 59,986,321
159,000 Westpac Banking Corporation ....................................... 01/11/01 to 05/14/01 6.480 to 6.815 158,992,418
--------------
Total Certificates of Deposit (cost--$1,691,314,796).......................... 1,691,314,796
--------------
3
<PAGE>
PAINEWEBBER RMA MONEY MARKET PORTFOLIO
<CAPTION>
PRINCIPAL
AMOUNT
(000) MATURITY DATES INTEREST RATES VALUE
--------- -------------------- --------------- --------------
<S> <C> <C> <C>
TIME DEPOSITS--0.32%
$ 50,000 Bank One, N.A. (cost--$50,000,000) ................................ 07/03/00 7.000% $ 50,000,000
--------------
COMMERCIAL [email protected]%
AGRICULTURE--1.26%
200,000 Cargill Global Funding PLC ........................................ 07/13/00 to 07/27/00 6.500 199,304,861
--------------
ASSET BACKED-AUTO & TRUCK--0.95%
150,000 New Center Asset Trust ............................................ 07/03/00 to 07/25/00 6.530 to 7.040 149,545,111
--------------
ASSET BACKED-BANKING--2.67%
247,500 Atlantis One Funding Corporation .................................. 07/06/00 to 09/20/00 6.560 to 6.590 245,803,683
158,016 Centric Capital Corporation ....................................... 07/07/00 to 09/27/00 6.550 to 6.800 157,287,441
19,512 Woodstreet Funding Corporation .................................... 07/06/00 6.540 19,494,277
--------------
422,585,401
--------------
ASSET BACKED-MISCELLANEOUS--17.88%
50,000 Asset Securitization Cooperative Corporation ...................... 07/17/00 6.550 49,854,444
158,141 Delaware Funding Corporation ...................................... 07/13/00 to 08/25/00 6.550 to 6.580 157,332,154
88,450 Enterprise Funding Corporation .................................... 07/26/00 to 08/21/00 6.550 to 6.590 87,777,960
427,583 Falcon Asset Securitization Corporation ........................... 07/17/00 to 08/15/00 6.540 to 6.620 425,448,092
140,498 Giro Funding US Corporation ....................................... 07/06/00 to 08/08/00 6.550 to 6.850 139,959,442
152,279 Parthenon Receivables Funding LLC ................................. 07/20/00 to 09/15/00 6.570 to 6.630 150,535,759
421,524 Preferred Receivables Funding Corporation ......................... 07/19/00 to 08/17/00 6.530 to 6.650 419,445,641
343,404 Quincy Capital Corporation ........................................ 07/05/00 to 08/10/00 6.160 to 6.580 342,326,153
240,633 Receivables Capital Corporation ................................... 07/14/00 to 07/19/00 6.150 to 6.540 240,014,567
313,615 Triple A One Funding Corporation .................................. 07/05/00 to 07/28/00 6.160 to 6.990 312,777,706
375,000 Variable Funding Capital Corporation .............................. 07/06/00 to 09/07/00 6.530 to 6.610 372,616,875
130,000 Variable Funding Capital Corporation .............................. 07/07/00 to 07/14/00 6.493 to 6.593* 130,000,000
--------------
2,828,088,793
--------------
AUTO & TRUCK--5.39%
39,889 BMW US Capital Incorporated ....................................... 07/11/00 to 07/18/00 6.500 to 6.520 39,790,380
200,000 Diamler-Chrysler N.A. Holding Corporation ......................... 07/12/00 to 09/13/00 6.540 to 6.605 198,292,854
300,000 Ford Motor Credit Corporation ..................................... 07/18/00 to 07/28/00 6.520 to 6.530 298,786,083
300,000 General Motors Acceptance Corporation ............................. 07/31/00 to 09/06/00 6.550 to 6.600 297,739,236
17,770 PACCAR Financial Corporation ...................................... 09/18/00 6.570 17,513,801
--------------
852,122,354
--------------
BANKING-DOMESTIC--6.75%
100,000 Abbey National North America ...................................... 07/17/00 6.150 99,726,667
75,000 Bank of America Corporation ....................................... 10/10/00 6.640 73,602,833
40,000 BBL North America Funding Corporation ............................. 09/27/00 6.600 39,354,667
150,000 BCI Funding Corporation ........................................... 07/05/00 to 07/07/00 6.520 to 6.565 149,872,722
30,000 BHF Finance Incorporated (Delaware) ............................... 07/12/00 6.540 29,940,050
50,000 Cariplo Finance Incorporated ...................................... 07/05/00 6.550 49,963,611
50,000 Cregem North America Incorporated ................................. 09/20/00 6.570 49,260,875
168,000 Dexia CLF Finance Company ......................................... 07/10/00 to 09/15/00 6.150 to 6.610 166,326,443
4
<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)
$ 123,000 Fortis Funding LLC ................................................ 07/12/00 to 09/11/00 6.150 to 6.610% $ 22,425,356
100,000 Nordbanken North America Incorporated ............................. 07/05/00 6.110 99,932,111
50,000 San Paolo IMI U.S. Financial Company .............................. 08/09/00 6.550 49,645,208
90,000 Santander Finance (Delaware) Incorporated ......................... 09/14/00 TO 09/20/00 6.570 TO 6.600 88,710,000
50,000 Societe Generale North America, Incorporated ...................... 09/19/00 6.580 49,268,889
--------------
1,068,029,432
--------------
BANKING-FOREIGN--0.95%
121,080 Alliance & Leicester PLC .......................................... 07/19/00 to 09/11/00 6.170 to 6.600 119,987,494
30,000 Banque et Caisse d'Epargne de L'Etat .............................. 07/18/00 6.510 29,907,775
--------------
149,895,269
--------------
BROKER-DEALER--7.38%
400,000 Bear Stearns Companies Incorporated ............................... 07/10/00 to 09/14/00 6.130 to 6.610 397,425,264
530,000 Goldman Sachs Group Incorporated .................................. 07/06/00 to 09/25/00 6.500 to 6.800 526,573,258
50,000 Merrill Lynch & Company Incorporated .............................. 10/11/00 6.610 49,063,583
100,000 Morgan Stanley Dean Witter & Company .............................. 07/26/00 to 08/09/00 6.550 to 6.600 99,416,042
95,000 Morgan Stanley Dean Witter & Company .............................. 07/03/00 7.275* 95,000,000
--------------
1,167,478,147
--------------
BUILDING MATERIALS--0.06%
9,000 Sherwin Williams Company .......................................... 07/17/00 6.550 8,973,800
--------------
CHEMICALS--0.76%
100,000 Dupont (E. I.) deNemours & Company ................................ 07/12/00 6.500 to 6.520 99,801,083
21,000 Henkel Corporation ................................................ 07/19/00 6.570 20,931,015
--------------
120,732,098
--------------
CONSUMER PRODUCTS--0.57%
35,000 Fortune Brands Incorporated ....................................... 07/19/00 6.150 34,892,375
55,000 Procter & Gamble Company .......................................... 07/25/00 6.500 54,761,667
--------------
89,654,042
--------------
DRUGS, HEALTH CARE--3.12%
110,700 Bayer Corporation ................................................. 07/05/00 to 08/22/00 6.400 to 6.540 110,211,248
80,385 Glaxo Wellcome PLC ................................................ 07/05/00 to 09/13/00 6.530 to 6.570 79,853,887
25,000 Merck Company Incorporated ........................................ 07/07/00 6.800 24,971,667
175,000 Pfizer Incorporated ............................................... 07/13/00 to 08/01/00 6.500 to 6.540 174,371,042
30,000 Smithkline Beecham Corporation .................................... 07/07/00 6.630 29,966,850
75,000 Warner Lambert Company ............................................ 07/14/00 6.520 74,823,417
--------------
494,198,111
--------------
ELECTRONICS--0.63%
100,000 Motorola Incorporated ............................................. 07/11/00 to 09/25/00 6.150 to 6.610 99,125,055
--------------
5
<PAGE>
PAINEWEBBER RMA MONEY MARKET PORTFOLIO
<CAPTION>
PRINCIPAL
AMOUNT
(000) MATURITY DATES INTEREST RATES VALUE
--------- -------------------- --------------- --------------
<S> <C> <C> <C>
COMMERCIAL PAPER@--(CONTINUED)
ENERGY--0.50%
$ 49,000 Exxon Mobil Australia Limited ..................................... 07/07/00 6.550% $ 48,946,508
30,000 Texaco Incorporated ............................................... 07/20/00 6.520 29,896,767
--------------
78,843,275
--------------
FINANCE-CONDUIT--0.94%
150,000 UBS Finance (Delaware) LLC ........................................ 07/05/00 to 09/05/00 6.600 to 6.700 149,320,556
--------------
FINANCE-CONSUMER--0.63%
100,000 Household Finance Corporation ..................................... 07/26/00 6.530 99,546,528
--------------
FINANCE-INDEPENDENT--0.31%
50,000 National Rural Utilities Cooperative Finance Corporation .......... 09/18/00 6.600 49,275,833
--------------
FINANCE-RETAIL--0.32%
50,000 American Express Credit Corporation ............................... 07/07/00 6.520 49,945,667
--------------
FINANCE-SUBSIDIARY--1.88%
250,000 Deutsche Bank Financial Incorporated .............................. 07/24/00 to 08/15/00 6.530 to 6.560 248,545,097
50,000 Dresdner U.S. Finance ............................................. 08/07/00 6.550 49,663,403
--------------
298,208,500
--------------
FOOD, BEVERAGE & TOBACCO--1.51%
6,300 Best Foods Corporation ............................................ 07/18/00 6.620 6,280,306
20,000 Campbell Soup Company ............................................. 10/02/00 6.610 19,658,483
100,000 Coca-Cola Company ................................................. 07/19/00 to 07/24/00 6.490 to 6.500 99,630,181
20,000 Coca-Cola Enterprises ............................................. 07/07/00 6.500 19,978,333
94,100 Heinz H.J. ........................................................ 07/17/00 to 07/26/00 6.530 to 6.540 93,706,782
--------------
239,254,085
--------------
INSURANCE--0.96%
127,000 AEGON Funding Corporation ......................................... 07/05/00 to 07/06/00 6.120 to 6.530 126,903,305
25,000 Teachers Insurance & Annuity Association of America ............... 07/07/00 6.560 24,972,667
--------------
151,875,972
--------------
MANUFACTURING-DIVERSIFIED--0.19%
23,900 Honeywell International Incorporated .............................. 07/21/00 6.500 23,813,694
7,000 Minnesota Mining & Manufacturing .................................. 07/06/00 6.500 6,993,681
--------------
30,807,375
--------------
METALS & MINING--1.69%
127,100 Alcoa Incorporated ................................................ 07/05/00 to 07/27/00 6.520 to 6.580 126,647,370
142,000 Rio Tinto America Incorporation ................................... 07/20/00 to 09/12/00 6.540 to 6.600 141,198,569
--------------
267,845,939
--------------
PRINTING & PUBLISHING--0.92%
84,125 Gannett Incorporated .............................................. 07/11/00 6.530 83,972,407
61,700 Tribune Company ................................................... 08/03/00 6.630 61,325,018
--------------
145,297,425
--------------
6
<PAGE>
PAINEWEBBER RMA MONEY MARKET PORTFOLIO
<CAPTION>
PRINCIPAL
AMOUNT
(000) MATURITY DATES INTEREST RATES VALUE
--------- -------------------- --------------- --------------
<S> <C> <C> <C>
COMMERCIAL PAPER@--(CONCLUDED)
RETAIL-MERCHANDISE--0.31%
$ 50,000 Wal-Mart Stores Incorporated ...................................... 07/25/00 6.520% $ 49,782,667
--------------
TELECOMMUNICATIONS--5.66%
475,000 AT & T Capital Corporation ........................................ 07/11/00 to 08/01/00 6.510 to 6.570 473,218,042
92,500 Bell Atlantic Financial Services Incorporated ..................... 07/06/00 to 07/28/00 6.520 to 6.570 92,285,926
51,580 Bell Atlantic Network Funding Corporation ......................... 07/11/00 to 07/12/00 6.550 51,483,063
128,261 BellSouth Capital Funding Corporation ............................. 07/05/00 to 07/25/00 6.500 to 6.510 128,016,748
27,076 BellSouth Telecommunications ...................................... 07/11/00 6.500 27,027,113
123,576 SBC Communications Incorporated ................................... 07/06/00 to 07/19/00 6.130 to 6.520 123,271,302
--------------
895,302,194
--------------
TRANSPORTATION SERVICES--0.32%
50,000 United Parcel Service ............................................. 07/06/00 6.500 49,954,861
--------------
UTILITY-ELECTRIC--1.99%
316,000 Southern Company .................................................. 07/06/00 to 08/02/00 6.550 to 6.670 315,229,130
--------------
Total Commercial Paper (cost--$10,520,222,481)................................ 10,520,222,481
--------------
SHORT-TERM CORPORATE OBLIGATIONS--4.88%
ASSET BACKED-FINANCE--0.81%
65,000 Beta Finance Incorporated ......................................... 02/05/01 to 06/26/01 6.650 to 7.080 65,000,000
63,000 Beta Finance Incorporated ......................................... 07/03/00 6.960* 63,000,000
--------------
128,000,000
--------------
AUTO & TRUCK--0.80%
50,000 Ford Motor Credit Corporation ..................................... 07/03/00 6.740* 49,994,893
10,000 Ford Motor Credit Corporation ..................................... 11/08/00 6.250 9,994,248
66,500 General Motors Acceptance Corporation ............................. 07/27/00 6.344* 66,492,741
--------------
126,481,882
--------------
BANKING--0.31%
50,000 Morgan (J.P.) & Company Incorporated .............................. 07/17/00 6.640* 50,000,000
--------------
BANKING-FOREIGN--0.25%
40,000 Bank of Scotland Treasury Services PLC ............................ 07/06/00 6.636* 40,000,000
--------------
BROKER-DEALER--2.71%
50,000 Merrill Lynch & Company Incorporated .............................. 04/09/01 6.870 49,996,158
250,000 Merrill Lynch & Company Incorporated .............................. 07/06/00 to 07/26/00 6.601 to 6.621* 249,990,424
128,500 Morgan Stanley Dean Witter & Company .............................. 07/05/00 to 09/12/00 6.754 to 6.920* 128,702,546
--------------
428,689,128
--------------
Total Short-Term Corporate Obligations (cost--$773,171,010) ................. 773,171,010
--------------
7
<PAGE>
PAINEWEBBER RMA MONEY MARKET PORTFOLIO
<CAPTION>
PRINCIPAL
AMOUNT
(000) VALUE
--------- --------------
<S> <C>
MONEY MARKET FUNDS--0.58%
2 AIM Liquid Assets Portfolio ....................................... $ 2,426
91,926 AIM Prime Portfolio ............................................... 91,926,190
--------------
Total Money Market Funds (cost--$91,928,616) ................................. 91,928,616
--------------
Total Investments (cost--$15,893,571,751 which approximates cost for federal
income tax purposes)--100.46% .............................................. 15,893,571,751
Liabilities in excess of other assets--(0.46)% ............................... (72,382,318)
--------------
Net Assets (applicable to 15,824,511,988 shares of common stock outstanding at
$1.00 per share)--100.00% .................................................. $15,821,189,433
==============
----------------
</TABLE>
* Variable rate securities--maturity date reflects earlier of reset date or
stated maturity date. The interest rates shown are the current rates as of
June 30, 2000, and reset periodically.
@ Interest rates shown are discount rates at date of purchase.
Weighted average maturity--52 days
See accompanying notes to financial statements
8
<PAGE>
PAINEWEBBER RMA U.S. GOVERNMENT PORTFOLIO
STATEMENT OF NET ASSETS JUNE 30, 2000
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(000) MATURITY DATES INTEREST RATES VALUE
--------- -------------------- --------------- --------------
<S> <C> <C> <C>
U.S. GOVERNMENT OBLIGATIONS--53.17%
$ 620,000 United States Treasury Bills ...................................... 07/13/00 to 12/07/00 5.600 to 6.030%@ $ 614,342,747
275,000 United States Treasury Notes ...................................... 07/31/00 to 02/28/01 4.500 to 6.125 274,076,860
--------------
Total U.S. Government Obligations (cost--$888,419,607)........................ 888,419,607
--------------
REPURCHASE AGREEMENTS--46.82%
80,000 Repurchase Agreement dated 06/30/00 with Bank of America,
collateralized by $62,835,000 U.S. Treasury Notes, and $19,033,000
U.S. Treasury Bills, 5.625% to 6.750% due 12/28/00 to 05/15/08
(value-$82,882,169); proceeds: $80,071,111 ....................... 07/05/00 6.400 80,000,000
70,000 Repurchase Agreement dated 06/30/00 with Bank One Capital Markets,
collateralized by $71,687,000 U.S. Treasury Notes, 5.000%
due 04/30/01 (value-$71,433,427); proceeds: $70,063,000 .......... 07/05/00 6.480 70,000,000
55,000 Repurchase Agreement dated 06/30/00 with Bear Stearns & Company,
collateralized by $62,860,000 U.S. Treasury Bonds, 5.250%
due 11/15/28 (value-$56,102,550); proceeds: $55,049,271 .......... 07/05/00 6.450 55,000,000
50,000 Repurchase Agreement dated 06/30/00 with Deustche Bank Securities
Incorporated, collateralized by $50,000,905 U.S. Treasury Notes,
7.500% due 11/15/01 (value-$51,000,923); proceeds: $50,044,444 ... 07/05/00 6.400 50,000,000
60,000 Repurchase Agreement dated 06/30/00 with Dresdner Bank AG London,
collateralized by $41,834,000 U.S. Treasury Bonds, 12.500%
due 08/15/14 (value-$61,198,959); proceeds: $60,053,333 .......... 07/05/00 6.400 60,000,000
50,000 Repurchase Agreement dated 06/30/00 with Morgan Guaranty Trust Co.,
collateralized by $51,580,000 U.S. Treasury Notes, 5.250%
due 08/15/03 (value-$51,000,136); proceeds: $50,044,444 .......... 07/05/00 6.400 50,000,000
50,000 Repurchase Agreement dated 06/30/00 with Morgan Stanley & Company
Incorporated, collateralized by $49,900,000 U.S. Treasury Notes,
6.500% due 08/15/05 (value-$51,016,342); proceeds: $50,045,139 ... 07/05/00 6.500 50,000,000
50,000 Repurchase Agreement dated 06/30/00 with Salomon Smith Barney,
collateralized by $50,465,000 U.S. Treasury Notes, 6.500%
due 08/15/05 (value-$51,127,605); proceeds: $50,045,833 .......... 07/05/00 6.600 50,000,000
17,302 Repurchase Agreement dated 06/30/00 with Salomon Smith Barney,
collateralized by $17,660,000 U.S. Treasury Notes, 6.500%
due 08/15/05 (value-$17,655,540); proceeds: $17,311,372 .......... 07/03/00 6.500 17,302,000
62,316 Repurchase Agreement dated 06/30/00 with SG Cowen Securities
Incorporated, collateralized by $50,000,000 U.S. Treasury Bonds,
8.750% due 05/15/17 (value-$63,562,500); proceeds: $62,372,950 ... 07/05/00 6.580 62,316,000
17,684 Repurchase Agreement dated 06/30/00 with SG Cowen Securities
Incorporated, collateralized by $14,189,000 U.S. Treasury Bonds,
8.750% due 05/15/17 (value-$18,037,766); proceeds: $17,699,965 ... 07/05/00 6.500 17,684,000
54,534 Repurchase Agreement dated 06/30/00 with SG Warburg & Company,
collateralized by $50,000,000 U.S. Treasury Bonds, 7.250%
due 05/15/16 (value-$55,675,000); proceeds: $54,583,232 .......... 07/05/00 6.500 54,534,000
25,466 Repurchase Agreement dated 06/30/00 with SG Warburg & Company,
collateralized by $23,349,000 U.S. Treasury Bonds, 7.250%
due 05/15/16 (value-$25,999,112); proceeds: $25,489,273 .......... 07/05/00 6.580 25,466,000
9
<PAGE>
PAINEWEBBER RMA U.S. GOVERNMENT PORTFOLIO
<CAPTION>
PRINCIPAL
AMOUNT
(000) MATURITY DATES INTEREST RATES VALUE
--------- -------------------- --------------- --------------
<S> <C> <C> <C>
REPURCHASE AGREEMENTS--(CONCLUDED)
$ 20,000 Repurchase Agreement dated 06/30/00 with State Street Bank & Trust
Company, collateralized by $19,665,000 U.S. Treasury Notes, 6.875%
due 05/15/06 (value-$20,402,438); proceeds: $20,010,750 .......... 07/03/00 6.450% $ 20,000,000
50,000 Repurchase Agreement dated 06/30/00 with State Street Bank & Trust
Company, collateralized by $49,940,000 U.S. Treasury Notes, 7.500%
due 11/15/01 (value-$51,001,225); proceeds: $50,044,792 .......... 07/05/00 6.450 50,000,000
60,656 Repurchase Agreement dated 06/30/00 with Zions Bancorp,
collateralized by $50,000,000 U.S. Treasury Bonds, 8.125%
due 08/15/19 (value-$61,830,693); proceeds: $60,711,180 .......... 07/05/00 6.550 60,656,000
9,344 Repurchase Agreement dated 06/30/00 with Zions Bancorp,
collateralized by $9,345,000 U.S. Treasury Notes, 6.500%
due 08/15/05 (value-$9,531,339); proceeds: $9,352,500 ............ 07/05/00 6.550 9,344,000
--------------
Total Repurchase Agreements (cost--$782,302,000) ............................. 782,302,000
--------------
Total Investments (cost--$1,670,721,607 which approximates cost for federal
income tax purposes)--99.99% ............................................... 1,670,721,607
Other assets in excess of liabilities--0.01% ................................. 123,762
--------------
Net Assets (applicable to 1,671,214,777 shares of common stock outstanding at
$1.00 per share)--100.00% .................................................. $1,670,845,369
==============
----------------
</TABLE>
@ -- Interest rates shown are discount rates at date of purchase.
Weighted average maturity - 45 days
See accompanying notes to financial statements.
10
<PAGE>
PAINEWEBBER RMA TAX-FREE FUND, INC.
STATEMENT OF NET ASSETS JUNE 30, 2000
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(000) MATURITY DATES INTEREST RATES VALUE
--------- -------------------- --------------- --------------
<S> <C> <C> <C>
ALABAMA--2.15%
$ 20,900 Birmingham Alabama Medical Clinic Board Revenue (U.A.H.S.F) ....... A 4.700% $ 20,900,000
9,535 Birmingham Alabama Refunding, Series A ............................ A 4.650 9,535,000
5,335 Birmingham Alabama Special Care Facilities
(Eye Foundation Hospital), Series A .............................. A 4.700 5,335,000
11,265 Mobile Alabama Industrial Development Board Dock And Wharf Revenue
(Refunding Holnam Incorporated Project), Series a ................ A 4.700 11,265,000
8,700 Mobile Alabama Industrial Development Board Dock And Wharf Revenue
(Refunding Holnam Incorporated Project), Series b ................ A 4.750 8,700,000
--------------
55,735,000
--------------
ALASKA--0.41%
10,000 Anchorage Alaska Tax Anticipation Notes ........................... 02/02/01 4.750 10,036,809
600 Valdez Alaska Marine Terminal Revenue (Exxon Pipeline Company)
Project B ........................................................ A 4.500 600,000
--------------
10,636,809
--------------
ARIZONA--4.12%
8,000 Apache County Industrial Development Authority
(Tucson Electric Power Springerville Project) .................... A 4.700 8,000,000
26,400 Apache County Industrial Development Authority
(Tucson Electric Power Springerville Series C) ................... A 4.700 26,400,000
11,200 Apache County Industrial Development Authority
(Tucson Electric Power Company Project Series B) ................. A 4.750 11,200,000
4,700 Maricopa County Pollution Control Corporation
(Arizona Public Service Company Series A) ........................ A 4.500 4,700,000
2,600 Maricopa County Pollution Control Corporation
(Arizona Public Service Company Series B) ........................ A 6.100 2,600,000
1,300 Maricopa County Pollution Control Corporation
(Arizona Public Service Company Series F) ........................ A 4.500 1,300,000
11,300 Maricopa County Pollution Control Corporation
(El Paso Project A) .............................................. A 4.900 11,300,000
5,000 Maricopa County Pollution Control Corporation
(El Paso Electric Palo Verde Project) Series E ................... A 4.900 5,000,000
4,200 Pima County Industrial Development Authority
(Tucson Electric Power Ivington Series A) ........................ A 4.700 4,200,000
3,000 Pinal County Industrial Development Authority
Pollution Control Revenue (Newmont Mining) ....................... A 4.600 3,000,000
6,000 Pinal County Pollution Control Revenue
(Newmont Mining Corp Series A) ................................... A 4.600 6,000,000
7,650 Scottsdale Industrial Development Authority Hospital Revenue
(Scottsdale Memorial Health Systems Series B) .................... 07/17/00 to 10/13/00 4.700 7,650,000
15,600 Salt River Agricultural Improvement and Power Project
Tax-Exempt Commerical Paper ...................................... A 4.200 to 4.550 15,600,000
--------------
106,950,000
--------------
11
<PAGE>
PAINEWEBBER RMA TAX-FREE FUND, INC.
<CAPTION>
PRINCIPAL
AMOUNT
(000) MATURITY DATES INTEREST RATES VALUE
--------- -------------------- --------------- --------------
<S> <C> <C> <C>
CALIFORNIA--0.39%
$ 305 California Health Facilities Financing Authority
(St. Joseph's Health System-Series B) ............................ A 4.250% $ 305,000
2,900 California Higher Education Loan Authority Incorporated
(Student Loan) ................................................... A 3.500 2,900,000
6,900 Los Angeles Regional Airports Improvement Corporation
Lease Revenue .................................................... A 4.550 6,900,000
--------------
10,105,000
--------------
COLORADO--0.73%
900 Adams County Colorado Industrial Development Revenue
(Clear Creek Business) ........................................... A 4.750 900,000
2,990 El Paso County Colorado School District ........................... 12/15/00 4.500 2,994,912
10,500 Moffat County Pollution Control Revenue
(Colorado-Ute Electric) .......................................... A 4.700 10,500,000
4,450 Smith Creek Metropolitan District Revenue ......................... A 4.850 4,450,000
--------------
18,844,912
--------------
DELAWARE--1.06%
5,700 Delaware Economic Development Authority
(Hospital Billing and Collection Service, Ltd.) .................. A 4.700 5,700,000
21,855 Delaware Economic Development Authority
(Hospital Billing and Collection Service, Ltd.) Series C ......... A 4.650 21,855,000
--------------
27,555,000
--------------
DISTRICT OF COLUMBIA--0.70%
1,500 District of Columbia General Fund Recovery Series B-3 ............. A 4.750 1,500,000
800 District of Columbia Refunding Series A-5 ......................... A 4.650 800,000
10,000 District of Columbia Revenue
(JFK Center Performing Arts) ..................................... A 4.650 10,000,000
5,855 District of Columbia Revenue Pooled Loan Program Series A ......... A 4.750 5,855,000
--------------
18,155,000
--------------
FLORIDA--5.89%
9,450 Broward County Housing Finance Authority
(Lake Park Associates Limited) ................................... A 4.750 9,450,000
6,000 Dade County Florida Industrial Development Authority
(Dolphins Stadium Project Series B) .............................. A 4.950 6,000,000
27,005 Dade County Water and Sewer System Revenue ........................ A 4.700 27,005,000
6,300 Florida Housing Finance Agency
(Parrots Landing Project Series A) ............................... A 4.900 6,300,000
16,000 Jacksonville Florida Electric Authority Revenue
(Water And Sewer Systems Series B) ............................... A 4.750 16,000,000
5,260 Jacksonville Florida Electric Authority Revenue
(Subordinated Electric Systems Series C) ......................... A 4.550 5,260,000
12
<PAGE>
PAINEWEBBER RMA TAX-FREE FUND, INC.
<CAPTION>
PRINCIPAL
AMOUNT
(000) MATURITY DATES INTEREST RATES VALUE
--------- -------------------- --------------- --------------
<S> <C> <C> <C>
FLORIDA--(CONCLUDED)
$ 6,000 Miami Health Facilities Authority Health Facilities Refunding
(Mercy Hospital Project) ......................................... A 4.750% $ 6,000,000
5,700 Palm Beach County Florida Housing Finance Authority Revenue
(Refunding Cotton Bay Apartments Project Series D) ............... A 4.750 5,700,000
6,400 Palm Beach County Florida Housing Finance Authority Revenue
(Refunding Mahogony Bay Apartments Project Series C) ............. A 4.750 6,400,000
3,990 Pinellas County Florida Resources Recovery Revenue ................ 10/01/00 6.600 4,014,489
8,100 St Johns County Florida Industrial Development Authority
(Glenmoor St Johns Project Series C ) ............................ 07/03/00 4.450 8,100,000
3,900 Tampa Florida Occupational License Tax Series A ................... A 4.850 3,900,000
5,800 University Athletic Association Incorporated Rangely
(University Florida Stadium Project) ............................. A 4.750 5,800,000
15,000 University South Florida Foundation Incorporated .................. A 4.850 15,000,000
3,230 Volusia County Florida Health Facilities Authority Revenue
(Aces Pooled Hospital Loan Program) .............................. A 4.850 3,230,000
21,088 Florida Local Government Finance Commission, Series A
Tax-Exempt Commercial Paper ...................................... 07/03/00 to 09/06/00 4.000 to 4.600 21,088,000
3,600 Pinellas County Health Facilities Authority
Tax-Exempt Commercial Paper ...................................... A 4.600 3,600,000
--------------
152,847,489
--------------
GEORGIA--4.63%
3,100 Burke County Development Authority Pollution Control
(Georgia Power Company Plant Vogtle 1st) ......................... A 4.500 3,100,000
29,300 Burke County Development Authority Pollution Control
(Oglethorpe Power Corp.) ......................................... A 4.750 to 4.800 29,300,000
3,735 Cobb County Georgia School District ............................... 02/01/01 4.600 3,742,322
10,000 Cobb County Housing Authority Multi-Family Housing Revenue
(Greenhouse Frey Apartment Project) .............................. A 4.900 10,000,000
10,000 De Kalb County Housing Authority Multi-Family Housing Revenue
Refunding (Post Walk Project) .................................... A 4.750 10,000,000
5,500 De Kalb Private Hospital Authority Revenue Anticipation Certificates
(ESR Childrens Health Series B) .................................. A 4.750 5,500,000
5,000 Fulco Georgia Hospital Authority Revenue Anticipation Certificates
(Shepherd Center Incorporated Project) ........................... A 4.750 5,000,000
16,965 Glynn Brunswick Memorial Hospital Anticipation Certificates
(Southeast Georgia Project) ...................................... A 4.650 16,965,000
10,400 Gwinnett County Housing Authority Multi-Family Housing Revenue
(Greens Apartments Project) ...................................... A 4.800 10,400,000
19,150 Gwinnett County Housing Authority Multi-Family Housing Revenue
(Post Chase Project) ............................................. A 4.750 19,150,000
5,100 Monroe County Georgia Development Authority Pollution Control
Revenue (Georgia Power Company) .................................. A 4.750 5,100,000
1,900 Putnam County Development Authority Pollution Control Revenue
(Georgia Power Company Plant Project) ............................ A 3.300 1,900,000
--------------
120,157,322
--------------
13
<PAGE>
PAINEWEBBER RMA TAX-FREE FUND, INC.
<CAPTION>
PRINCIPAL
AMOUNT
(000) MATURITY DATES INTEREST RATES VALUE
--------- -------------------- --------------- --------------
<S> <C> <C> <C>
IDAHO--0.43%
$ 7,000 Idaho State Tax Anticipation Notes ................................ 06/29/01 5.375% $ 7,066,640
4,000 Power County Pollution Control Revenue (FMC Corporation Project) .. A 4.550 4,000,000
--------------
11,066,640
--------------
ILLINOIS--14.64%
4,000 Chicago Illinois Multi-Family Housing Revenue
(Waveland Associates Project D) .................................. A 4.850 4,000,000
1,500 Chicago Illinois Multi-Family Housing Revenue
(Waveland Association Project E) ................................. A 4.850 1,500,000
3,000 Chicago Illinois School Finance Authority ......................... 06/01/01 6.000 3,039,086
12,500 Chicago O'Hare International Airport Pollution Control Revenue
(American Airlines) .............................................. A 4.550 12,500,000
11,800 Chicago Illinois O'Hare International Airport Revenue
(American Airlines Series A ) .................................... A 4.550 11,800,000
45,850 Chicago O'Hare International Airport Revenue, Series C ............ A 4.650 45,850,000
44,200 Cook County Illinois .............................................. A 4.750 to 7.150 44,280,270
6,000 Illinois Development Finance Authority Revenue
(Chicago Symphony Orchestra) ..................................... A 4.600 6,000,000
23,200 Illinois Development Finance Authority Pollution Control Revenue
(Commonwealth Edison) ............................................ A 4.750 23,200,000
6,000 Illinois Development Finance Authority Revenue
(Jewish Federation Project) ...................................... A 4.800 6,000,000
7,500 Illinois Development Finance Authority Revenue
(Francis W. Parker School Project) ............................... A 4.650 7,500,000
9,000 Illinois Educational Facilities Authority Revenue
(Field Museum of Natural History) ................................ 09/07/00 4.650 9,000,000
4,745 Illinois Educational Facilities Authority Revenue
(Northwestern University) ........................................ A 4.750 4,745,000
6,000 Illinois Educational Facilities Authority Revenue
(Shedd Aquarium Society B) ....................................... 07/18/00 3.450 6,000,000
19,200 Illinois Health Facilities Authority Revenue
(Central Health and Northwest Community) ......................... A 4.700 19,200,000
25,000 Illinois Health Facilities Authority Revenue
(Evanston Hospital) .............................................. A 3.550 to 4.750 25,000,000
5,680 Illinois Health Facilities Authority Revenue
(Loyola University Health Systems B) ............................. A 4.700 5,680,000
8,000 Illinois Health Facilities Authority Revenue
(Pooled Loan) .................................................... A 4.700 8,000,000
7,295 Illinois Health Facilities Authority Revenue
(Refunding Southern Illinois Healthcare Series B) ................ A 4.800 7,295,000
1,100 Illinois Health Facilities Authority Revenue
(Resurrection Health Series A) ................................... A 4.650 1,100,000
14
<PAGE>
PAINEWEBBER RMA TAX-FREE FUND, INC.
<CAPTION>
PRINCIPAL
AMOUNT
(000) MATURITY DATES INTEREST RATES VALUE
--------- -------------------- --------------- --------------
<S> <C> <C> <C>
ILLINOIS--(CONCLUDED)
$ 19,100 Illinois Health Facilities Authority Revenue
(St. Lukes Medical Center Obligation Series B) ................... A 4.800% $ 19,100,000
1,000 Illinois Health Facilities Authority Revenue
(University Chicago Hospital) .................................... A 4.550 1,000,000
23,000 Illinois Health Facilities Authority Revenue
(University Chicago Hospital), Project C ......................... A 4.650 23,000,000
25,465 Illinois Health Facilities Authority Revenue
Refunding (Advocate Health Care B) ............................... A 4.900 25,465,000
5,000 Illinois Health Facilities Authority Revenue
Series 1997B (Victory Hospital) .................................. A 4.350 5,000,000
16,600 Illinois Toll and Highway Authority ............................... A 4.700 16,600,000
3,500 Jackson Union County Regional Port District Facilities Revenue
Refunding (Enron Transportation Services) ........................ A 5.150 3,500,000
16,000 Lisle Illinois Multi-Family Revenue Housing (Four Lakes Phase V) .. A 4.900 16,000,000
4,065 Metropolitan Pier and Expo ........................................ 12/15/00 4.600 4,073,926
14,285 Illinois Educational Facilities Authority Revenue
(Pooled Loan)
Tax-Exempt Commercial Paper ...................................... 08/17/00 to 11/13/00 4.000 to 4.350 14,285,000
--------------
379,713,282
--------------
INDIANA--1.98%
7,000 Indiana Health Facility Financing Authority Hospital Revenue
(Aces Rehabilation Hospital) ..................................... A 4.700 7,000,000
4,000 Indiana Municipal Power Supply Systems Revenue
Refunding Series A ............................................... A 4.750 4,000,000
5,125 Indianapolis Indiana Local Public Improvement
Bond Bank Notes Series H ......................................... 07/10/00 4.500 5,125,740
3,165 Rockport Pollution Control Revenue
(AEP Generating Company Project) ................................. A 4.550 3,165,000
9,300 Rockport Pollution Control Revenue Refunding
(Indiana Michigan Power Company Project B) ....................... A 4.900 9,300,000
22,800 St. Joseph County Educational Facilities Revenue
(University Notre Dame) .......................................... A 4.700 22,800,000
--------------
51,390,740
--------------
IOWA--0.29%
7,600 Iowa Higher Education Loan Authority Revenue
(Aces Education Loan Private College) ............................ A 4.850 7,600,000
--------------
KENTUCKY--2.85%
13,000 Kentucky Asset and Liability Commission General Fund
Revenue .......................................................... 06/27/01 5.250 13,086,840
7,790 Kentucky Economic Development Finance Authority
(Baptist Healthcare Systems Obligation) .......................... A 4.850 7,790,000
25,000 Kentucky Interlocal School Transportation
Tax and Revenue Anticipation Notes ............................... 06/29/01 5.000 25,142,000
15
<PAGE>
PAINEWEBBER RMA TAX-FREE FUND, INC.
<CAPTION>
PRINCIPAL
AMOUNT
(000) MATURITY DATES INTEREST RATES VALUE
--------- -------------------- --------------- --------------
<S> <C> <C> <C>
KENTUCKY--(CONCLUDED)
$ 7,895 Mason County Pollution Control Revenue
(East Kentucky Power National Rural) ............................. A 4.850% $ 7,895,000
20,000 Ohio County Kentucky Pollution Control Revenue
(Big Rivers Electric Corporation) ................................ A 4.900 20,000,000
--------------
73,913,840
--------------
LOUISIANA--3.15%
9,700 Calcasieu Parish Industrial Development Board
Pollution Control Revenue
(Citgo Petrol Corp.) ............................................. A 4.850 9,700,000
1,400 Calcasieu Parish Louisiana Industrial Development Board
(Olin Corporation Project) ....................................... A 4.500 1,400,000
18,500 Louisiana Offshore Terminal Authority Deepwater ................... A 4.650 18,500,000
12,000 Louisiana Public Facilities Authority Pollution Control Revenue
(Ciba Geigy) ..................................................... A 4.650 12,000,000
7,245 Louisiana Public Facilities Authority Revenue
(College and University Equipment and Capital Series A) .......... A 4.800 7,245,000
5,195 Louisiana State General Obligation Bond ........................... 09/01/00 7.250 5,298,680
2,600 Louisiana State Offshore Terminal Revenue ......................... A 4.550 2,600,000
4,000 Plaquemines Port Harbor and Terminal District (Tampa Electric) .... 11/08/00 4.750 4,000,000
4,800 Saint Charles Parish Louisiana Pollution Control Revenue
(Shell Oil Company Project) ...................................... A 4.550 4,800,000
16,100 South Louisiana Port Commission Marine Terminal Facilities Revenue
(Occidental Petroleum) ........................................... A 4.650 16,100,000
--------------
81,643,680
--------------
MARYLAND--4.48%
8,150 Baltimore Maryland Industrial Development Authority Revenue
(Baltimore Capital Acquisition) .................................. A 4.750 8,150,000
3,500 Maryland Health and Higher Education Facilities, Series C
(John Hopkins Hospital) .......................................... 07/12/00 4.450 3,500,000
4,100 Maryland Health and Higher Educational Facilities Series A
(John Hopkins Hospital) .......................................... A 4.900 4,100,000
22,400 Maryland Health and Higher Educational Facilities Series A
(Pooled Loan Program) ............................................ A 4.800 22,400,000
29,675 Maryland Health and Higher Educational Facilities Series B
(Pooled Loan Program) ............................................ A 4.700 29,675,000
7,685 Northeast Maryland Waste Disposal Authority Resources
Recovery Revenue
(Refunding Harford County Resources) ............................. A 4.600 7,685,000
9,200 University of Maryland Equipment Tender Notes ..................... A 4.700 9,200,000
31,500 Maryland Health and Higher Education, Series C
(John Hopkins Hospital)
Tax-Exempt Commercial Paper ...................................... 08/14/00 to 09/22/00 4.050 to 4.200 31,500,000
--------------
116,210,000
--------------
16
<PAGE>
PAINEWEBBER RMA TAX-FREE FUND, INC.
<CAPTION>
PRINCIPAL
AMOUNT
(000) MATURITY DATES INTEREST RATES VALUE
--------- -------------------- --------------- --------------
<S> <C> <C> <C>
MASSACHUSETTS--2.77%
$ 9,150 Athol and Royalston Massachusetts Regional School District ........ 07/13/01 5.000% $ 9,191,999
11,200 Boston Water and Sewer Commission Revenue Series A ................ A 4.500 11,200,000
3,915 Lowell Massachusetts .............................................. 02/15/01 7.625 4,071,410
10,000 Massachusetts Health and Educational Facilities Authority Revenue
(Variable Bentley College) ....................................... A 4.900 10,000,000
6,100 Massachusetts Bay Transportation Authority Notes Series A ......... 03/01/01 7.000 6,283,151
9,000 Massachusetts Bay Transportation Authority
Notes Series B ................................................... 09/01/00 4.250 8,998,470
4,000 Massachusetts Municipal Wholesale Electric Company
Power Supply Systems Revenue ..................................... A 4.600 4,000,000
7,750 Massachusetts Water Resources Authority ........................... A 4.650 7,750,000
6,051 Whitman Hanson Massachusetts Regional School District ............. 07/06/01 5.000 6,074,054
4,200 Massachusetts Water Resources Authority
Tax-Exempt Commercial Paper ...................................... 10/10/00 4.700 4,200,000
--------------
71,769,084
--------------
MICHIGAN--2.69%
10,000 Detroit Sewage Disposal Revenue ................................... A 4.950 10,000,000
14,700 Kent Hospital Finance Authority Michigan Revenue
(Spectrum Health B) .............................................. A 4.700 14,700,000
3,000 Michigan Municipal Bond Authority Revenue Series B 1 .............. 08/25/00 4.250 3,002,825
9,000 Michigan State
School Loan Notes ................................................ 04/23/01 5.000 9,052,475
3,500 Michigan State Certificates of Participation
(Short Terminal New Center) ...................................... 03/01/01 4.750 3,511,180
4,000 Michigan State Housing Development Authority
(Shoal Creek) .................................................... A 4.700 4,000,000
12,270 Michigan Strategic Fund
(Dow Chemical Company) ........................................... A 4.550 12,270,000
6,900 Midland County Michigan Economic Development Corporation
Limited Obligation Revenue
(Dow Chemcial Company) ........................................... A 4.500 6,900,000
5,400 Northville Township Economic Development Corporation
Limited Obligation Revenue
(Thrifty Northville Incorporated Project) ........................ A 4.925 5,400,000
1,000 University Michigan University Revenue
(Hospital Series A) .............................................. A 4.550 1,000,000
--------------
69,836,480
--------------
MINNESOTA--1.27%
7,000 Minnesota School Districts Tax and Anticipation Certificates ...... 02/16/01 4.750 7,025,338
26,000 Rochester Health Care Facilities (Mayo Clinic)
Tax-Exempt Commercial Paper ...................................... 08/08/00 to 08/21/00 4.150 to 4.450 26,000,000
--------------
33,025,338
--------------
17
<PAGE>
PAINEWEBBER RMA TAX-FREE FUND, INC.
<CAPTION>
PRINCIPAL
AMOUNT
(000) MATURITY DATES INTEREST RATES VALUE
--------- -------------------- --------------- --------------
<S> <C> <C> <C>
MISSISSIPPI--1.38%
$ 13,500 Harrison County Pollution Control Revenue
(DuPont) ......................................................... A 4.550% $ 13,500,000
6,600 Jackson County Port Facility Revenue
(Refunding Chevron USA Incorporated Project) ..................... A 4.550 6,600,000
8,700 Mississippi Business Finance Corporation Mississippi Revenue
(Mississippi College) ............................................ A 4.750 8,700,000
7,000 Clairebore County Pollution Control Revenue
(Southern Mississippi Electric) Tax-Exempt Commercial Paper ...... A 4.100 7,000,000
--------------
35,800,000
--------------
MISSOURI--2.06%
40,400 Missouri Health and Educational Facilities Authority Revenue
(Medical Research Facilities Stowers A) .......................... A 4.750 40,400,000
5,550 Missouri State Health and Educational Facilities Authority
Health Facilities Revenue Barnes Hospital ........................ 12/15/00 7.125 5,673,659
3,500 University of Missouri
Capital Projects Notes ........................................... 06/29/01 5.250 3,529,855
3,625 University of Missouri Revenues
(Hospital and Clinics Improvement) ............................... 11/01/00 7.375 3,703,884
--------------
53,307,398
--------------
NEBRASKA--0.98%
3,200 Nebhelp Incorporated Nebraska Revenue
(Multiple Mode Student Loan, Series A) ........................... A 4.700 3,200,000
15,100 Nebhelp Incorporated Nebraska Revenue
(Multiple Mode Student Loan, Series E) ........................... A 4.700 15,100,000
7,000 Omaha Public Power District Electric Tax-Exempt Commercial Paper .. 07/21/00 to 09/07/00 4.000 to 4.750 7,000,000
--------------
25,300,000
--------------
NEVADA--1.02%
26,565 Clark County Airport Improvement Revenue .......................... A 4.700 26,565,000
--------------
NEW HAMPSHIRE--1.61%
5,000 Nashua New Hampshire Bond Anticipation Notes ...................... 12/14/00 4.700 5,002,170
13,800 New Hampshire Business Finance Authority Series A
Resource Recovery Revenue ........................................ A 4.850 13,800,000
19,525 New Hampshire Housing Finance Authority Multi-Family Revenue
(EQR Bond Partnership Project) ................................... A 4.900 19,525,000
3,400 Pembroke New Hampshire Tax Anticipation Notes ..................... 12/29/00 4.100 3,404,978
--------------
41,732,148
--------------
NEW MEXICO--0.57%
14,800 University of New Mexico University Revenues ...................... A 4.700 14,800,000
--------------
18
<PAGE>
PAINEWEBBER RMA TAX-FREE FUND, INC.
<CAPTION>
PRINCIPAL
AMOUNT
(000) MATURITY DATES INTEREST RATES VALUE
--------- -------------------- --------------- --------------
<S> <C> <C> <C>
NEW YORK--2.49%
$ 10,000 City of Rochester ................................................. 08/21/00 4.400% $ 10,000,000
2,410 New York City ..................................................... A 4.750 2,410,000
1,600 New York City Series A ............................................ A 4.450 1,600,000
2,100 New York City Series F-3 .......................................... A 4.600 2,100,000
25,000 New York City Transitional Finance Authority ...................... A 4.850 25,000,000
4,900 Oyster Bay New York
Bond Anticipation Notes .......................................... 04/26/01 5.250 4,915,297
6,000 Oyster Bay New York
Tax Anticipation Notes ........................................... 01/26/01 5.000 6,000,474
11,000 Riverhead New York Central School District
Tax Anticipation Notes ........................................... 06/22/01 5.000 11,030,661
1,500 Suffolk County Industrial Development Agency Research
(Cold Spring Harbor Laboratory Project) .......................... A 4.450 1,500,000
--------------
64,556,432
--------------
NORTH CAROLINA--8.00%
25,980 Charlotte Airport Revenue ......................................... A 4.700 25,980,000
16,400 Charlotte Mecklenberg Hospital Authority
(Health Care Systems Revenue Series D) ........................... A 4.700 16,400,000
3,400 Greensboro Enterprise Systems Revenue Series B .................... A 4.700 3,400,000
4,900 Mecklenburg County North Carolina Lease Revenue
(The Young Mens Christian Association) ........................... A 4.750 4,900,000
10,940 North Carolina Educational Facilities Finance Agency Revenue
(Guilford College) ............................................... A 4.800 10,940,000
24,000 North Carolina Educational Facility
(Bowman Grey School Medical Project) ............................. A 4.750 24,000,000
50,190 North Carolina Educational Facility
(Duke University Project Series A) ............................... A 4.750 50,190,000
12,015 North Carolina Educational Facility
(Elon College) ................................................... A 4.750 12,015,000
5,785 North Carolina Medical Care Commission Hospital Revenue
(Duke University Hospital Project C) ............................. A 4.750 5,785,000
2,000 North Carolina Medical Care Commission Hospital Revenue
(Presbyterian Hospital Project) .................................. 10/01/00 7.375 2,030,012
2,100 North Carolina Medical Care Commission Hospital Revenue
(Lexington Memorial Hospital Project) ............................ A 4.600 2,100,000
1,900 North Carolina Medical Care Commission Hospital Revenue Bonds ..... A 4.500 1,900,000
2,000 North Carolina Medical Care Commission Revenue
(Carol Woods Project) ............................................ A 4.500 2,000,000
6,000 Piedmont Triad Airport Authority (North Carolina Airport Revenue
Series B) ........................................................ A 4.850 6,000,000
6,850 Raleigh Durham Airport Authority Special Facility Revenue
(American Airlines Series B) ..................................... A 4.600 6,850,000
19
<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 4.700% $ 7,600,000
6,600 Wake County North Carolina Industrial Facilities and Pollution
Control Financing Authority Revenue
(Carolina Power and Light Company Project A) ..................... A 4.450 6,600,000
18,700 Wake County North Carolina Industrial Facilities and Pollution
Control Financing Authority Revenue
(Carolina Power and Light Company Series C) ...................... A 4.750 18,700,000
--------------
207,390,012
--------------
OHIO--2.01%
5,000 Columbus Electric Systems Revenue ................................. A 4.200 5,000,000
18,900 Columbus Sewer Revenue ............................................ A 4.700 18,900,000
9,095 Cuyahoga County
(Cleveland Orchestra Project) .................................... A 4.500 9,095,000
12,800 Cuyahoga County Hospital Revenue
(Cleveland Clinic Foundation A) .................................. A 4.750 12,800,000
4,805 Cuyahoga County Hospital Revenue Series A ......................... A 4.800 4,805,000
1,650 Hamilton County Hospital Facilities Revenue
(Bethesda Hospital Incorporated) ................................. A 4.600 1,650,000
--------------
52,250,000
--------------
OKLAHOMA--0.08%
2,000 Oklahoma City Oklahoma Industrial and Cultural Revenue
(SSM Health Care Series A) ....................................... 06/01/01 5.000 2,003,884
--------------
OREGON--1.05%
7,000 Oregon Housing and Community Services Department Mortgage Revenue . A 4.500 7,000,000
16,300 Oregon State General Obligation (Veterans Welfare) ................ A 4.800 16,300,000
4,000 Portland Oregon Multi-Family Revenue
(South Park Block Project Series A) .............................. A 5.050 4,000,000
--------------
27,300,000
--------------
PENNSYLVANIA--2.75%
1,600 Delaware County Industrial Development Authority Pollution
Control Revenue (British Petroleum) .............................. A 4.500 1,600,000
25,800 Delaware Valley Regional Finance Authority
(Local Government Revenue) ....................................... A 4.750 25,800,000
4,200 Delaware Valley Regional Finance Authority Series B
(Local Government Revenue) ....................................... A 4.750 4,200,000
6,900 Northumberland County Industrial Development Authority
Pollution Control Revenue
(Merck and Company) .............................................. A 3.000 6,900,000
9,000 Pennsylvania Higher Educational Facilities Authority Revenue
(Medical College Pennsylvania Series A) .......................... 03/01/01 7.375 9,293,593
1,000 Pennsylvania Strategic Industrial Development Authority
(Economic Development) ........................................... A 4.600 1,000,000
20
<PAGE>
PAINEWEBBER RMA TAX-FREE FUND, INC.
<CAPTION>
PRINCIPAL
AMOUNT
(000) MATURITY DATES INTEREST RATES VALUE
--------- -------------------- --------------- --------------
<S> <C> <C> <C>
PENNSYLVANIA--(CONCLUDED)
$ 6,890 Philadelphia Water and Waste Revenue Series B ..................... A 4.700% $ 6,890,000
15,600 University of Pittsburgh .......................................... 07/01/00 to 05/23/01 4.550 to 5.200 15,632,851
--------------
71,316,444
--------------
SOUTH CAROLINA--2.81%
12,935 South Carolina Jobs Economic Development Authority
Hospital Facilities Revenue (Baptist Healthcare Systems) ......... A 4.750 12,935,000
15,315 South Carolina Jobs Economic Development Authority
Hospital Facilities Revenue (Regional Medical Center Orangeburg) . A 4.700 15,315,000
11,550 South Carolina State
(State School Facilities Series A) ............................... 01/01/01 5.500 11,628,669
2,005 South Carolina State Public Service Authority Revenue ............. 01/01/01 6.250 2,025,809
14,000 Spartanburg County School District Number 7
(School District Enhance Program) ................................ 02/15/01 4.750 14,047,977
16,900 South Carolina Public Service Authority
Tax-Exempt Commercial Paper ...................................... 09/08/00 to 11/09/00 4.050 to 4.350 16,900,000
--------------
72,852,455
--------------
TENNESSEE--2.24%
7,450 Clarksville Public Building Authority Revenue C ................... A 4.750 7,450,000
4,000 Metropolitan Nashville Airport Authority .......................... A 4.800 4,000,000
6,500 Metropolitan Nashville and Davidson County
(Vanderbilt University) .......................................... A 4.150 6,500,000
5,000 Metropolitan Nashville and Davidson County
Health and Educational Facilities Board Revenue
(Vanderbilt University Series A) ................................. A 4.700 5,000,000
8,600 Metropolitan Nashville and Davidson Industrial (Timberlake) ....... A 4.700 8,600,000
15,305 Montgomery County Public Building Authority Revenue (Pooled Loan) . A 4.750 15,305,000
3,000 Tennessee State ................................................... 07/18/00 4.000 3,000,000
4,660 Tennessee Housing Development Agency
Homeownership Program Notes ...................................... A 4.750 4,660,000
3,500 Tennessee State
Tax-Exempt Commercial Paper ...................................... 07/20/00 4.350 3,500,000
--------------
58,015,000
--------------
TEXAS--9.03%
6,005 Bexar County Health Facilities Development
(Army Retirement Foundation) ..................................... A 4.800 6,005,000
3,600 Brazos River Texas Harbor Navigation District Brazoria
County Revenue
Refunding (Dow Chemical Company Project A) ....................... A 4.550 3,600,000
2,000 Garland Texas Independent School District ......................... 02/15/01 6.650 2,028,976
21
<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 4.800% $ 12,800,000
10,400 Guadalupe Blanco River Authority
(Central Texas Tax Power) ........................................ A 4.550 10,400,000
7,065 Gulf Coast Industrial Development Authority Texas Marine Terminal
Revenue
(Amoco Oil Company Project) ...................................... A 3.850 7,065,000
3,000 Gulf Coast Texas Pollution Control Revenue (Exxon Project) ........ A 4.550 3,000,000
7,000 Gulf Coast Waste Disposal Authority
(Amoco Oil Company Project) ...................................... A 3.600 7,000,000
10,500 Harris County Health Facilities Series B
(Memorial Hospital Systems Project) .............................. A 4.700 10,500,000
2,150 Harris County Industrial Development Corporation
Polluction Control Revenue (Exxon Project) ....................... A 4.500 2,150,000
28,525 Harris County Toll Roads .......................................... A 4.700 to 5.000 28,525,000
5,500 Midlothian Industrial Development Corporation
Pollution Control Revenue
(Box Crow Cement Company Project) ................................ A 4.800 5,500,000
5,000 North Central Texas Health Facilities Development ................. A 4.750 5,000,000
1,500 Port Arthur Texas Navigation District Industrial Development ...... A 4.500 1,500,000
9,200 Port of Corpus Christi Authority Texas
(Koch Industries) ................................................ A 4.800 9,200,000
4,000 Redeemable River Authority Texas Pollution Control Revenue
(Arts Refunding Southwestern Public Service) ..................... A 4.750 4,000,000
8,000 San Antonio Texas Electric and Gas Revenue
Series B ......................................................... 02/01/01 6.000 8,079,234
67,500 State of Texas Tax and Revenue Anticipation Notes ................. 08/31/00 4.500 67,586,833
5,380 Travis County ..................................................... 03/01/01 5.000 5,405,589
7,000 Bexar Metropolitan Water
Tax-Exempt Commercial Paper ...................................... 08/09/00 to 09/08/00 4.050 to 4.450 7,000,000
20,500 City of Houston
Tax-Exempt Commercial Paper ...................................... 08/11/00 to 11/07/00 4.050 to 4.350 20,500,000
7,500 San Antonio Texas Electric and Gas Series A
Tax-Exempt Commerical Paper ...................................... 09/11/00 to 09/13/00 4.100 to 4.150 7,500,000
--------------
234,345,632
--------------
UTAH--2.01%
2,800 Carbon County Pollution Control Revenue
(Pacificorp Projects) ............................................ A 4.550 2,800,000
3,000 Salt Lake County .................................................. 12/29/00 5.000 3,008,991
13,000 Utah State ........................................................ A 4.750 13,000,000
33,400 Intermountain Power Agency Utah Power Supply, Series B-4
Tax-Exempt Commercial Paper ...................................... 09/12/00 to 09/13/00 4.050 33,400,000
--------------
52,208,991
--------------
22
<PAGE>
PAINEWEBBER RMA TAX-FREE FUND, INC.
<CAPTION>
PRINCIPAL
AMOUNT
(000) MATURITY DATES INTEREST RATES VALUE
--------- -------------------- --------------- --------------
<S> <C> <C> <C>
VIRGINIA--3.40%
$ 38,750 Loudoun County Industrial Development Authority
(Falcons Landing Project) ........................................ A 4.750% $ 38,750,000
2,300 Roanoke Industrial Development Authority Hospital Revenue
(Roanoke Memorial Hospital Series B) ............................. A 4.550 2,300,000
42,275 Louisa Industrial Development Authority
(Virgina Electric Power)
Tax-Exempt Commercial Paper ...................................... 07/19/00 to 09/12/00 4.200 to 4.800 42,275,000
5,000 Norfolk Industrial Development Authority
(Sentra Hospital) Tax-Exempt Commercial Paper .................... 08/23/00 4.000 5,000,000
--------------
88,325,000
--------------
WASHINGTON--2.14%
5,000 Port of Seattle Industrial Development Corporation
(Alaska Airlines Incorporated) ................................... A 4.750 5,000,000
10,000 Port of Seattle Washington Revenue Series A ....................... A 4.850 10,000,000
14,800 Snohomish Public Utility District ................................. A 4.700 14,800,000
1,400 Washington Health Care Facilities Authority Revenue
(Fred Hutchinson Cancer Center) .................................. A 4.750 1,400,000
12,800 Washington State .................................................. A 4.750 12,800,000
4,000 Washington State Public Power Supply Systems (Nuclear
Project Number 1 Series 1A-1) .................................... A 4.900 4,000,000
7,600 Seattle Municipal Light and Power Revenue
Tax-Exempt Commercial Paper ...................................... A 4.700 7,600,000
--------------
55,600,000
--------------
WEST VIRGINIA--0.37%
9,500 Grant County County Pollution Control Revenue
(Virginia Electric Power) Tax-Exempt Commercial Paper ............ 10/06/00 4.450 9,500,000
--------------
WISCONSIN--1.33%
6,100 City of Oak Creek Pollution Control Revenue
(Wisconsin Electric Power Company) ............................... A 4.800 6,100,000
1,000 La Crosse Wisconsin Pollution Control Revenue
(Dairyland Power Cooperative Series B) ........................... A 4.450 1,000,000
5,335 Wisconsin State ................................................... 05/01/01 5.000 5,367,105
2,435 Wisconsin State Clean Water Revenue ............................... 06/01/01 5.000 2,440,336
19,476 Wisconsin State
Tax-Exempt Commercial Paper ...................................... 07/14/00 to 10/12/00 4.200 to 4.350 19,476,000
--------------
34,383,441
--------------
WYOMING--1.26%
3,590 Converse County Wyoming Pollution Control Revenue
(Pacificorp Projects)............................................ A 4.550 3,590,000
900 Kemmerer Wyoming Pollution Control Revenue
(Exxon Project) .................................................. A 4.500 900,000
11,800 Lincoln County Pollution Control Revenue .......................... A 4.550 11,800,000
1,200 Sweetwater County Pollution Control Revenue
(Idaho Power Company Project C) .................................. A 4.550 1,200,000
23
<PAGE>
PAINEWEBBER RMA TAX-FREE FUND, INC.
<CAPTION>
PRINCIPAL
AMOUNT
(000) MATURITY DATES INTEREST RATES VALUE
--------- -------------------- --------------- --------------
<S> <C> <C> <C>
WYOMING--(CONCLUDED)
$ 15,000 Wyoming State Education Fund ...................................... 06/27/01 5.250% $ 15,129,450
--------------
32,619,450
--------------
Total Investments (cost--$2,677,326,903 which approximates cost for federal
income tax purposes)--103.22% .............................................. 2,677,326,903
Liabilities in excess of other assets--(3.22)% ............................... (83,449,190)
--------------
Net Assets (applicable to 2,594,823,449 shares of common stock outstanding
at $1.00 per share)--100.00% ............................................... $2,593,877,713
==============
----------------
</TABLE>
A -- Variable rate demand notes and variable rate certificates of participation
are payable on demand. The interest rates shown are the current rates as
of June 30, 2000, and reset periodically.
Weighted average maturity--42 days
See accompanying notes to financial statements.
24
<PAGE>
PAINEWEBBER RMA CALIFORNIA MUNICIPAL MONEY FUND
STATEMENT OF NET ASSETS JUNE 30, 2000
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(000) MATURITY DATES INTEREST RATES VALUE
--------- -------------------- --------------- --------------
<S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES--97.16%
$ 18,248 California Educational Facilities Authority
(Stanford University-Series L) ................................... A 4.300% $ 18,248,000
4,950 California Educational Facilities Authority
(Stanford University-Series L-3) ................................. A 4.300 4,950,000
5,875 California Educational Facilities Authority
(Stanford University-Series L-4) ................................. A 4.300 5,875,000
6,500 California Health Facilities Financing Authority
(Adventist Health System-Series A) ............................... A 4.400 6,500,000
5,100 California Health Facilities Financing Authority
(Adventist Health System-Series B) ............................... A 4.400 5,100,000
100 California Health Facilities Financing Authority
(Hospital Adventist-Series A) .................................... A 4.000 100,000
2,100 California Health Facilities Financing Authority
(Hospital Adventist-Series B) .................................... A 4.000 2,100,000
4,300 California Health Facilities Financing Authority (Scripps Health) . A 4.650 4,300,000
3,600 California Health Facilities Financing Authority
(Scripps Memorial Hospital) ...................................... A 4.650 3,600,000
3,500 California Health Facilities Financing Authority
(Scripps Memorial Hospital-Series B) ............................. A 4.650 3,500,000
140 California Health Facilities Financing Authority
(St. Joseph's Health System-Series B) ............................ A 4.250 140,000
2,000 California Health Facilities Financing Authority
(Sutter Adventist Health-Series B) ............................... A 3.950 2,000,000
8,500 California Infrastructure and Economic Development
Bank Revenue (Independent System Operation Corporation) .......... A 4.300 8,500,000
1,100 California Pollution Control Financing Authority
(Pacific Gas & Electric Corporation) ............................. A 4.000 1,100,000
200 California Pollution Control Financing Authority
(Pacific Gas & Electric Corporation-Series C) .................... A 4.100 200,000
2,000 California Pollution Control Financing Authority
(Pacific Gas & Electric Corporation-Series F) .................... A 4.000 2,000,000
3,500 California Pollution Control Financing Authority
(Southern California Edison) ..................................... A 4.400 3,500,000
400 California Pollution Control Financing Authority
(Southern California Edison-Series B) ............................ A 4.400 400,000
5,500 California Pollution Control Financing Authority
(Southern California Edison-Series D) ............................ A 4.400 5,500,000
3,200 California Pollution Control Financing Authority
Pollution Control Revenue (Pacific Gas and Electric) ............. A 4.050 to 4.350 3,200,000
3,400 California Public Capital Improvements Financing Authority Revenue A 4.750 3,400,000
12,000 California School Cash Reserve Program Authority
Pool (Series A) .................................................. 07/03/01 5.250 12,112,680
15,525 California School Facilities Financing Corporation
Certificates of Participation (Capital Improvement Financing
Project) ......................................................... A 4.400 15,525,000
1,850 California State General Obligation Bond .......................... 03/01/01 4.875 1,864,038
8,000 California Statewide Communities Development Authority
Certificates of Participation
(St. Joseph Health System) ....................................... A 4.350 8,000,000
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)
$ 6,000 California Statewide Communities Development Authority
Tax and Revenue Anticipation Notes (Series C-2) .................. 09/29/00 4.000% $ 6,008,040
10,900 California Transit Financing Authority ............................ A 4.350 10,900,000
2,950 Abag Finance Authority for Nonprofit Corporations
(Lucile Salter Packard Project) .................................. A 4.400 2,950,000
4,410 Alameda Contra Costa Schools Financing Authority
Certificates of Participation
(Capital Improvement Financing Projects-Series A) ................ A 4.450 4,410,000
3,035 Alameda Contra Costa Schools Financing Authority
Certificates of Participation
(Capital Improvement Financing Projects-Series D) ................ A 4.400 3,035,000
5,000 Alameda Tax and Revenue Anticipation Notes ........................ 07/02/01 5.000 5,033,150
6,500 Alameda Unified School District
Tax and Revenue Anticipation Notes ............................... 07/05/01 5.000 6,546,605
1,000 Alisal Union School District Tax and Revenue Anticipation Notes ... 07/27/00 4.000 1,000,377
16,600 Anaheim Certificates of Participation ............................. A 4.300 16,600,000
6,250 Contra Costa County Board of Education
Tax and Revenue Anticipation Notes ............................... 07/05/01 5.000 6,296,625
1,750 Contra Costa County Tax and Revenue Anticipation Notes (Series A) . 09/29/00 4.000 1,752,331
7,500 Cupertino Union School District
Tax and Revenue Anticipation Notes ............................... 07/05/01 5.000 7,553,775
7,000 Desert Sands Unified School District
Tax and Revenue Anticipation Notes ............................... 07/06/01 5.000 7,052,220
10,000 Fairfield-Suisun Unified School District
Tax and Revenue Anticipation Notes ............................... 07/05/01 5.000 10,071,700
2,000 Fremont Certificates of Participation
(Police Facility Finance Project-Series A) ....................... 08/01/00 5.900 2,007,260
9,900 Fresno Tax and Revenue Anticipation Notes ......................... 06/29/01 5.000 9,968,508
3,000 Golden Empire Schools Financing Authority
(Kern High School District Project) .............................. A 4.250 3,000,000
5,100 Golden Empire Schools Financing Authority
(Kern High School District Project-Series A) ..................... A 4.250 5,100,000
20,100 Irvine Improvement Bond Act 1915 Updates
Assessment District 85-7-I ....................................... A 4.250 20,100,000
16,110 Irvine Public Facilities and Infrastructure Authority
(Capital Improvement Projects) ................................... A 4.250 16,110,000
7,500 Irvine Ranch Water District ....................................... A 3.500 7,500,000
200 Irvine Ranch Water District (Series A) ............................ A 4.300 200,000
2,200 Irvine Ranch Water District
(Improvement District Number 182- Series A) ...................... A 3.500 2,200,000
500 Irvine Ranch Water District
Certificates of Participation
(Capital Improvement Project) .................................... A 3.500 500,000
5,000 Kern County Board of Education
Tax and Revenue Anticipation Notes ............................... 07/03/01 5.000 5,034,800
5,000 Kern County High School District
Tax and Revenue Anticipation Notes ............................... 07/06/00 4.000 5,000,416
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)
$ 2,900 Los Angeles Community Redevelopment Agency
Multi-Family Housing Revenue Bonds (Grand Promenade Project) ..... A 4.300% $ 2,900,000
7,000 Los Angeles County Tax and Revenue Anticipation Notes Series A .... 06/29/01 5.000 7,056,490
1,500 Los Angeles County Certificates of Participation
(L A County Museum Art-Series A) ................................. A 4.650 1,500,000
5,000 Los Angeles County Pension Obligation (Series B) .................. A 4.300 5,000,000
14,100 Los Angeles County Pension Obligation (Series C) .................. A 4.300 14,100,000
2,000 Los Angeles County Schools Pooled Financing
Program Participation Certificates
(Pooled Transport Series A) ...................................... A 5.000 2,013,960
12,600 Los Angeles County Transport Commission Sales
(Tax and Revenue Refunding Bonds-Series A) ....................... A 4.300 12,600,000
6,495 Los Angeles Department Water and Power Electric
Plant Revenue (Series 143) ....................................... A 4.350 6,495,000
6,000 Los Angeles Department Water and Power Electric
Plant Revenue (Series 276) ....................................... A 4.370 6,000,000
13,300 Los Angeles Multi-Family Housing Revenue Bonds
(Museum Terrace Apartments-Series H) ............................. A 4.450 13,300,000
10,400 M-S-R Public Power Agency (San Juan Project)
Revenue Bonds (Series D) ......................................... A 4.250 10,400,000
8,200 M-S-R Public Power Agency (San Juan Project)
Revenue Bonds (Series E) ......................................... A 4.300 8,200,000
4,500 Metropolitan Water District Southern California
Waterworks Revenue ............................................... A 4.800 4,500,000
4,000 Metropolitan Water District Southern California
Waterworks Revenue Bonds (Series B) .............................. A 3.650 4,000,000
6,795 Moorpark Industrial Development Authority
(Fred Kavli and Kavlico Corporation) ............................. A 4.300 6,795,000
5,400 Newport Beach Health Facilities (Hoag Memorial Hospital) .......... A 4.250 5,400,000
8,200 Newport Beach Health Facilities (Hoag Memorial Hospital-Series C) . A 4.250 8,200,000
5,100 Oakland Alameda County Coliseum Authority Lease Revenue ........... A 4.400 5,100,000
12,200 Oakland Joint Powers Financing Authority (Series A-1) ............. A 4.250 12,200,000
12,000 Oakland Unified School District Alameda County
Tax and Revenue Anticipation Notes ............................... 11/17/00 4.000 12,013,636
6,525 Orange County Apartment Development Revenue Bonds
(Niguel Village-Series AA) ....................................... A 4.500 6,525,000
8,040 Orange County Apartment Development Revenue Bonds
(Niguel Village-Series U) ........................................ A 4.500 8,040,000
1,450 Orange County Various Sanitation Districts
Certificates of Participation (Series C) ......................... A 4.000 1,450,000
5,000 Paramount Unified School District
Tax and Revenue Anticipation Notes ............................... 09/29/00 4.250 5,010,008
2,400 Pomona Redevelopment Agency Multi-Family Housing Revenue Bonds
(Park and Plaza Appartments-Series A) ............................ A 4.250 2,400,000
2,500 Ravenswood City School District
Tax and Revenue Anticipation Notes ............................... 07/05/01 4.900 2,515,525
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)
$ 5,275 Redondo Beach Redevelopment Agency Multi-Family Revenue Bonds
(McCandless Senior Housing Project A) ............................ A 4.500% $ 5,275,000
5,400 Riverside County Asset Leasing Corporation ........................ A 4.400 5,400,000
5,390 Sacramento City Unified School District
Tax and Revenue Anticipation Notes ............................... 12/06/00 4.250 5,400,909
11,740 Sacramento County Certificates of Participation
(Administration Center and Courthouse Project) ................... A 4.350 11,740,000
3,000 San Bernardino County
Tax and Revenue Anticipation Notes ............................... 09/29/00 3.750 3,002,664
6,000 San Bernardino County Certificates of Participation
(Medical Center Financing Project) ............................... A 4.700 6,000,000
2,000 San Diego Tax and Revenue Anticipation Notes (Series A) ........... 09/29/00 4.250 2,004,140
4,885 San Diego Unified School District
Tax and Revenue Anticipation Notes (Series A) .................... 09/29/00 4.250 4,893,780
6,000 San Jose Redevelopment Agency Revenue Bonds
(Merged Area Redevelopment Project-Series A) ..................... A 4.400 6,000,000
4,700 San Jose Redevelopment Agency Revenue Bond
(Merged Area Redevelopment Project-Series B) ..................... A 4.400 4,700,000
2,225 San Mateo County Transit District Sales Tax Revenue (Series A) .... 06/01/01 4.500 2,234,819
400 Santa Ana Health Facility Revenue
Multi-Model Town and County ...................................... A 4.000 400,000
2,938 Santa Clara County El Camino Hospital District
(Hospital Facilities Authority Revenue-Series A) ................. A 4.800 2,938,000
9,800 Santa Clara County El Camino Hospital District
(Hospital Facilities Authority Revenue-Series B) ................. A 4.800 9,800,000
17,100 Santa Clara Financing Authority
(VMC Facility Replacement Project B) ............................. A 4.300 17,100,000
14,800 Southern Public Power Authority Project Revenue Bonds
(Palo Verde Project-Series C) .................................... A 4.300 14,800,000
12,000 Southern Public Power Authority Project Revenue Bonds
(Southern Transmission) .......................................... A 4.300 12,000,000
10,000 Ventura County
Tax and Revenue Anticipation Notes (Series A) .................... 07/03/01 5.000 10,076,100
7,500 West Basin Municipal Water District Revenue
Certificates of Participation (Series A) ......................... A 4.250 7,500,000
8,000 West Contra Costa Unified School District
Tax and Revenue Anticipation Notes ............................... 12/06/00 4.500 8,018,329
2,995 Westminster Certificates of Participation
(Civic Center Project-Series B) .................................. A 4.450 2,995,000
2,000 Puerto Rico Commonwealth (Series A-1) ............................. A 4.750 2,000,000
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--$608,618,885) ......................... 608,618,885
--------------
28
<PAGE>
PAINEWEBBER RMA CALIFORNIA MUNICIPAL MONEY FUND
<CAPTION>
PRINCIPAL
AMOUNT
(000) MATURITY DATES INTEREST RATES VALUE
--------- -------------------- --------------- --------------
<S> <C> <C> <C>
TAX-EXEMPT COMMERCIAL PAPER--16.87%
$ 10,000 California State General Obligations .............................. 08/04/00 to 08/23/00 3.950% $ 10,000,000
3,000 Anaheim California ................................................ 10/11/00 3.900 3,000,000
6,500 Los Angeles Department of Water and Power ......................... 08/21/00 to 09/01/00 3.900 to 4.250 6,500,000
4,000 Los Angeles Transportation Commission (Series A) .................. 09/08/00 3.950 4,000,000
2,000 Los Angeles Wastewater System ..................................... 08/11/00 3.350 2,000,000
9,500 Metropolitan Water District of Southern California ................ 07/24/00 to 08/09/00 3.300 to 4.200 9,500,000
6,000 Modesto Irrigation District ....................................... 09/11/00 to 09/12/00 3.450 to 3.950 6,000,000
3,200 Orange County Local Transportation Authority ...................... 08/10/00 3.300 3,200,000
4,000 Regents of the University of California (Series B) ................ 07/12/00 3.900 4,000,000
9,050 San Diego Industrial Development Authority
(San Diego Gas and Electric) ..................................... 07/21/00 to 10/12/00 3.350 to 4.000 9,050,000
16,201 San Diego Unified Port Authority (Series B) ....................... 08/07/00 to 08/21/00 3.450 to 3.550 16,201,000
2,000 San Joaquin County Transportation Authority ....................... 08/16/00 3.900 2,000,000
6,249 San Jose International Airport .................................... 09/06/00 to 09/07/00 4.200 to 4.400 6,248,944
23,997 Puerto Rico Commonwealth Government Development Bank .............. 08/15/00 to 10/17/00 3.350 to 4.450 23,997,000
--------------
Total Tax-Exempt Commercial Paper (cost--$105,696,944) ....................... 105,696,944
--------------
Total Investments (cost--$714,315,829 which approximates cost for
federal income tax purposes)--114.03% ...................................... 714,315,829
Liabilities in excess of other assets--(14.03)% .............................. (87,891,674)
--------------
Net Assets (applicable to 626,895,844 shares of beneficial interest at $1.00
per share)--100.00 ......................................................... $ 626,424,155
==============
----------------
</TABLE>
A -- Variable rate demand notes are payable on demand. The interest rates shown
are the current rates as of June 30, 2000, and reset periodically.
Weighted average maturity--68 days.
See accompanying notes to financial statements.
29
<PAGE>
PAINEWEBBER RMA NEW YORK MUNICIPAL MONEY FUND
STATEMENT OF NET ASSETS JUNE 30, 2000
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(000) MATURITY DATES INTEREST RATES VALUE
--------- -------------------- --------------- --------------
<S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES--85.69%
$ 4,200 New York State Dormitory Authority Revenues
(Cornell University - Series B) ................................. A 4.450% $ 4,200,000
11,185 New York State Dormitory Authority Revenues
(Memorial Sloan Convertible) .................................... A 4.500 11,185,000
9,477 New York State Dormitory Authority Revenues
(Metropolitan Museum of Art) .................................... A 4.300 9,477,000
3,400 New York State Dormitory Authority Revenues
(Oxford University Press Incorporated) .......................... A 4.350 3,400,000
1,800 New York State Dormitory Authority Revenues
(Rockefeller University Series A)................................ A 4.350 1,800,000
12,000 New York State Dormitory Authority Revenues (Sloan Kettering) ..... A 4.500 12,000,000
10,800 New York State Energy Research & Development Authority
(Electric & Gas Corporation) .................................... A 3.150 to 4.450 10,800,000
1,200 New York State Energy Research & Development Authority
Pollution Control Revenue (Niagara Mohawk) ...................... A 4.750 1,200,000
14,900 New York State Energy Research & Development Authority
Pollution Control Revenue (Orange and Rockland Project A) ....... A 4.450 14,900,000
13,735 New York State Energy Research & Development Authority
Pollution Control Revenue (Rochester Gas & Electricity - Series C) A 4.450 13,735,000
3,420 New York State Housing Finance Agency
(Hospital Special Surgery Staff) ................................ A 4.500 3,420,000
3,800 New York State Housing Finance Agency
(Mount Sinai Medical Center Project) ............................ A 4.550 3,800,000
10,600 New York State Housing Finance Agency
(Normandie Court I Project) ..................................... A 4.450 10,600,000
12,100 New York State Housing Finance Agency Service Contract
Obligation Revenue Series A ..................................... A 4.650 12,100,000
17,315 New York State Local Government Assistance Corporation ............ A 4.300 to 4.400 17,315,000
2,000 New York State Local Government Assistance Corporation
Series B ........................................................ 04/01/01 7.250 2,082,678
4,285 New York State Medical Care Facilities Finance Agency
(Mental Health) ................................................. 08/15/00 7.875 4,391,453
4,000 New York State Medical Care Facilities Finance Agency
Revenue Prerefunded Mental Health Services Facilities
Improvement B ................................................... 08/15/00 7.875 4,039,493
6,855 New York State Medical Care Facilities Finance Agency
(Pooled Equipment Loan Program) ................................. A 4.500 6,855,000
3,830 New York State Thruway Authority Service Contract Revenue
Local Highway & Bridge .......................................... 01/01/01 6.000 3,865,370
2,000 New York State Urban Development Corporation Revenue
(Correctional Capital Facilities - Series 2) .................... 01/01/01 7.500 2,072,350
1,900 Amityville Union Free School District
Tax Anticipation Notes .......................................... 06/26/01 5.000 1,908,702
13,800 Babylon Industrial Development Agency Resources
(Ogden Martin Project) .......................................... A 4.450 13,800,000
3,000 Babylon Union Free School District
Tax Anticipation Notes .......................................... 06/27/01 5.000 3,012,030
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--(CONTINUED)
$ 4,500 Canandaigua City School District
Revenue Anticipation Notes ...................................... 07/11/01 5.000% $ 4,519,350
5,000 Dutchess County Bond Anticipation Notes Series A .................. 02/15/01 4.500 5,010,499
5,000 Eastern Suffolk Board Cooperative Educational Services
District Revenue Anticipation Notes ............................. 06/28/01 5.000 5,016,700
2,000 Hempstead Union Free School District
Tax Anticipation Notes .......................................... 06/28/01 5.250 2,010,411
6,550 Erie County Water Authority ....................................... A 4.450 6,550,000
3,000 Lakeland Central School District Shrub Oak Bond
Anticipation Notes .............................................. 11/22/00 4.375 3,004,819
12,000 Long Island Power Authority Electric Systems Revenue
Series 1 ........................................................ A 4.650 12,000,000
2,200 Long Island Power Authority Electric Systems Revenue
Series 6 ........................................................ A 3.600 2,200,000
15,300 Long Island Power Authority Electric Systems Revenue
Series 7 ........................................................ A 4.800 15,300,000
5,900 Marlboro Central School District
Bond Anticipation Notes ......................................... 06/27/01 5.000 5,919,490
2,000 New York City Series A ............................................ A 5.000 2,000,000
2,600 New York City Series B ............................................ A 4.750 2,600,000
800 New York City Series C ............................................ A 4.750 800,000
3,000 New York City Series D ............................................ A 4.650 3,000,000
3,500 New York City Series F-4 .......................................... A 4.650 3,500,000
4,000 New York City Series F-6 .......................................... A 4.600 4,000,000
8,980 New York City Health and Hospital Corporation Revenue
(Health System - Series B) ...................................... A 4.350 8,980,000
4,400 New York City Health and Hospital Corporation Revenue
(Health System - Series C) ...................................... A 4.350 4,400,000
5,075 New York City Housing Development Corporation Mortgage
Revenue Multi-Family (Queenswood) ............................... A 4.600 5,075,000
3,100 New York City Industrial Development Agency
(Calhoun School) ................................................ A 4.750 3,100,000
4,050 New York City Industrial Development Agency (Trevor Day School) ... A 4.650 4,050,000
1,500 New York City Municipal Assistance Corporation .................... 07/01/00 5.500 1,500,000
1,700 New York City Municipal Water Finance Authority
Series A ........................................................ 06/15/01 7.000 1,753,603
1,400 New York City Municipal Water Finance Authority
Water & Sewer Systems Revenue Series A .......................... A 4.750 1,400,000
11,500 New York City Transitional Finance Authority
(Series A16) .................................................... A 4.850 11,500,000
5,840 New York City Trust for Cultural Resources
(American Museum of National History - Series A) ................ A 4.450 5,840,000
2,800 New York City Trust for Cultural Resources
(American Museum of National History - Series B) ................ A 4.500 2,800,000
3,400 New York City Trust for Cultural Resources (Carnegie Hall) ........ A 4.500 3,400,000
4,100 Niagara Falls Toll Bridge Commission .............................. A 4.450 4,100,000
31
<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)
$ 4,000 Oceanside Union Free School District
Tax Anticipation Notes .......................................... 06/28/01 5.000% $ 4,020,600
5,000 Oyster Bay Revenue Anticipation Notes Series A .................... 04/26/01 5.250 5,015,609
2,000 Oyster Bay Revenue Anticipation Notes Series F .................... 11/30/00 4.500 2,002,706
7,000 Oyster Bay Revenue Anticipation Notes Series G .................... 11/30/00 4.500 7,007,034
5,935 Oyster Bay Tax Anticipation Notes ................................. 01/26/01 4.750 5,951,216
4,500 Putnam County Tax Anticipation Notes .............................. 08/31/00 4.250 4,501,796
2,300 Riverhead Central School District Bond Anticipation Notes ......... 10/02/00 4.750 2,302,269
4,000 Riverhead Central School District Tax Anticipation Notes .......... 06/22/01 5.000 4,011,149
5,345 Rotterdam Industrial Development Agency
(Rotterdam Industrial Park Project) ............................. A 4.550 5,345,000
17,765 Suffolk County Water Authority Bond Anticipation Notes ............ A 4.550 17,765,000
9,457 Yonkers Industrial Development Agency
(Consumers Union Facility) ...................................... A 4.650 9,457,000
--------------
Total Municipal Bonds and Notes (cost--$374,668,327) ......................... 374,668,327
--------------
TAX-EXEMPT COMMERCIAL PAPER--17.47%
1,400 New York State .................................................... 07/17/00 4.500 1,400,000
2,000 New York State Dormitory Authority (Mt. Sinai) .................... 07/10/00 4.100 2,000,000
13,000 New York State Power Authority .................................... 07/24/00 to 09/14/00 4.000 to 4.450 13,000,000
7,000 New York State Thruway Authority .................................. 07/13/00 to 09/07/00 4.000 to 4.100 7,000,000
6,800 Port Authority of New York and New Jersey ......................... 07/07/00 to 08/07/00 4.300 to 4.400 6,800,000
19,000 Metropolitan Transportation Authority ............................. 07/11/00 to 10/11/00 3.950 to 4.700 19,000,000
8,100 New York City ..................................................... 08/11/00 to 09/13/00 4.050 to 4.200 8,100,000
19,100 New York City Municipal Water Finance Authority ................... 07/14/00 to 08/31/00 3.950 to 4.750 19,100,000
--------------
Total Tax-Exempt Commercial Paper (cost--$76,400,000) ........................ 76,400,000
--------------
Total Investments (cost--$451,068,327 which approximates
cost for federal income tax purposes)--103.16% ............................. 451,068,327
Liabilities in excess of other assets--(3.16)% ............................... (13,815,146)
--------------
Net Assets (applicable to 437,457,618 shares of beneficial interest at
$1.00 per share)--100.00% .................................................. $ 437,253,181
==============
----------------
</TABLE>
A -- Variable rate demand notes are payable on demand. The interest rates shown
are the current rates as of June 30, 2000, and reset periodically.
Weighted average maturity--55 days.
See accompanying notes to financial statements.
32
<PAGE>
PAINEWEBBER RMA NEW JERSEY MUNICIPAL MONEY FUND
STATEMENT OF NET ASSETS JUNE 30, 2000
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(000) MATURITY DATES INTEREST RATES VALUE
--------- -------------------- --------------- --------------
<S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES--74.63%
$ 720 New Jersey Economic Development Authority.......................... A 4.300 to 4.450% $ 720,000
1,635 New Jersey Economic Development Authority
(Church and Dwight Company Project)............................... A 4.650 1,635,000
800 New Jersey Economic Development Authority
(Color Graphics Incorporated Project)............................. A 4.450 800,000
810 New Jersey Economic Development Authority
(Economic Growth Series B)........................................ A 4.550 810,000
2,000 New Jersey Economic Development Authority
(Curtiss Wright Flight)........................................... A 4.850 2,000,000
1,500 New Jersey Economic Development Authority
(Danic Urban Renewal)............................................. A 4.200 1,500,000
2,500 New Jersey Economic Development Authority
(El Dorado Terminals B)........................................... A 4.200 2,500,000
2,500 New Jersey Economic Development Authority
(Elizabethtown Water Company Project B)........................... A 4.300 2,500,000
2,000 New Jersey Economic Development Authority
(Greater Mercer County Series E).................................. A 4.650 2,000,000
445 New Jersey Economic Development Authority
(Series G)........................................................ A 4.550 445,000
1,000 New Jersey Economic Development Authority
(Greater Mercer County Series H).................................. A 4.650 1,000,000
300 New Jersey Economic Development Authority
(Hoffman Louisiana Roche Incorporated Project).................... A 4.400 300,000
2,000 New Jersey Economic Development Authority
(Job Haines Home Project)......................................... A 4.550 2,000,000
405 New Jersey Economic Development Authority
(Kenwood USA Corporation Project)................................. A 4.650 405,000
1,005 New Jersey Economic Development Authority
(Nash Group 1985 Project)......................................... A 4.650 1,005,000
2,500 New Jersey Economic Development Authority
(Natural Gas Company)............................................. A 4.450 to 4.700 2,500,000
100 New Jersey Economic Development Authority
(Natural Gas Company Project Series B)............................ A 4.500 100,000
3,100 New Jersey Economic Development Authority
(Public Service Electric and Gas Company Series A)................ A 4.250 3,100,000
350 New Jersey Economic Development Authority
(St. James Prep Society Service Project).......................... A 4.600 350,000
2,805 New Jersey Economic Development Authority
(Stolthaven Project Series A)..................................... A 4.300 2,805,000
1,000 New Jersey Economic Development Authority
(Thermal Energy Limited Partnership).............................. A 4.350 1,000,000
1,000 New Jersey Economic Development Authority
(Thermal Energy Limited).......................................... A 4.350 1,000,000
1,300 New Jersey Economic Development Authority
(Transportation Project Sublease Series B)........................ 05/01/01 5.000 1,308,366
33
<PAGE>
PAINEWEBBER RMA NEW JERSEY MUNICIPAL MONEY FUND
<CAPTION>
PRINCIPAL
AMOUNT
(000) MATURITY DATES INTEREST RATES VALUE
--------- -------------------- --------------- --------------
<S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES--(CONCLUDED)
$ 1,160 New Jersey Economic Development Authority
Refunding Investment Company...................................... A 4.800% $ 1,160,000
1,000 New Jersey Economic Development Authority
Series N3......................................................... A 4.850 1,000,000
500 New Jersey Educational Facilities Authority
(College of New Jersey Series A).................................. A 4.450 500,000
700 New Jersey State................................................... 02/15/01 5.250 704,449
500 New Jersey State Educational Facilities Authority
(Princeton University Series F)................................... A 4.000 500,000
1,000 New Jersey State Transit Corporation
Capital Grant Anticipation Notes Series A......................... 09/01/00 4.800 1,000,260
1,000 New Jersey State Transportation Trust Fund Authority
(Transportation Systems Series B)................................. 06/15/01 5.000 1,005,082
1,900 New Jersey State Turnpike Authority................................ A 4.200 1,900,000
1,000 New Jersey State Turnpike Authority................................ 01/01/01 5.700 1,008,044
2,650 Port Authority of New York and New Jersey.......................... A 4.300 to 4.400 2,650,000
1,833 Burlington County New Jersey....................................... 04/20/01 4.625 1,838,966
630 Burlington Township Board of Education............................. 01/15/01 5.500 634,104
2,100 Essex County Improvement Authority Revenue......................... A 4.200 2,100,000
1,000 Florham Park Bond Anticipation Notes............................... 11/03/00 4.250 1,001,545
1,000 Freehold Township Bond Anticipation Notes.......................... 11/10/00 4.250 1,001,563
1,000 Jersey City Redevelopment Authority................................ A 4.500 1,000,000
1,000 Mercer County Improvement Authority................................ A 3.800 1,000,000
2,000 Middlesex County................................................... 01/19/01 4.500 2,005,838
1,700 Monmouth County General Improvement................................ A 4.500 1,700,000
980 Monmouth County General Improvement................................ 07/15/00 4.750 980,367
1,275 Monmouth County New Jersey......................................... 10/01/00 5.000 1,278,727
750 Morris County General Improvement.................................. 08/15/00 4.500 750,753
1,400 Morris County New Jersey........................................... 07/15/00 6.250 1,401,267
1,250 Morristown New Jersey.............................................. 02/01/01 to 04/30/01 4.650 to 5.000 1,255,338
145 Pine Hill Borough New Jersey....................................... 08/01/00 4.950 145,149
500 Princeton Township New Jersey...................................... A 4.500 500,000
2,200 Salem County Pollution Control Financing........................... A 4.000 2,200,000
1,600 Salem County Pollution Control Financing........................... A 4.450 to 4.700 1,600,000
1,000 Sparta Township Bond Anticipation Notes............................ 01/18/01 5.000 1,002,118
2,000 Vineland New Jersey................................................ 01/19/01 5.500 2,006,919
1,000 Union County Pollution Control Finance Authority
(Exxon Corporation)............................................... A 3.600 1,000,000
--------------
Total Municipal Bonds and Notes (cost--$69,613,855)........................... 69,613,855
--------------
TAX-EXEMPT COMMERCIAL PAPER--17.58%
2,000 New Jersey Educational Facilities Authority
(Princeton University)............................................ 09/07/00 to 09/12/00 4.350 2,000,000
5,600 New Jersey Economic Development Authority
(Chambers Cogeneration)........................................... 07/07/00 to 09/12/00 3.900 to 4.600 5,600,000
34
<PAGE>
PAINEWEBBER RMA NEW JERSEY MUNICIPAL MONEY FUND
<CAPTION>
PRINCIPAL
AMOUNT
(000) MATURITY DATES INTEREST RATES VALUE
--------- -------------------- --------------- --------------
<S> <C> <C> <C>
TAX-EXEMPT COMMERCIAL PAPER--(CONCLUDED)
$ 1,000 New Jersey State Educational Facilities Authority Series B
(Princeton University)........................................... 09/11/00 3.750% $ 1,000,000
2,500 Port Authority of New York and New Jersey......................... 07/11/00 to 08/09/00 3.850 to 4.100 2,500,000
5,300 Puerto Rico Commonwealth Government Development Bank.............. 08/08/00 to 10/06/00 3.600 to 4.300 5,300,000
--------------
Total Tax-Exempt Commercial Paper (cost--$16,400,000)........................ 16,400,000
--------------
Total Investments (cost--$86,013,855 which approximates cost for federal
income tax purposes)--92.21%............................................... 86,013,855
Other assets in excess of liabilities--7.79%................................. 7,262,141
--------------
Net Assets (applicable to 93,280,733 shares of beneficial interest at
$1.00 per share)--100.00%.................................................. $ 93,275,996
==============
----------------
</TABLE>
A -- Variable rate demand notes are payable on demand. The interest rates are
the current rates as of June 30, 2000, and reset periodically.
Weighted average maturity--56 days.
See accompanying notes to financial statements.
35
<PAGE>
PAINEWEBBER
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
FOR THE YEAR ENDED JUNE 30, 2000
----------------------------------------------------------------------------------------
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 .................................. $881,081,074 $ 83,931,242 $ 98,390,345 $20,676,484 $15,443,694 $3,285,461
------------ ------------ ------------ ----------- ----------- -----------
EXPENSES:
Investment advisory and administration .... 76,257,056 6,373,194 11,477,703 3,006,607 2,080,465 468,952
Distribution fees.......................... -- 1,942,079 3,360,315 803,013 539,907 112,549
Transfer agency and related services fees . 9,592,679 404,223 628,267 141,444 70,055 41,484
Custody and accounting .................... 1,532,505 158,552 268,830 67,992 45,188 19,379
Federal and state registration ............ 968,046 78,403 82,255 43,808 42,442 16,609
Reports and notices to shareholders ....... 682,732 47,068 83,591 37,430 31,701 14,312
Legal and audit ........................... 274,060 90,433 85,730 63,190 60,318 42,354
Insurance ................................. 261,159 32,230 33,571 20,942 15,290 1,750
Directors'/Trustees' fees ................. 10,500 10,500 10,500 10,500 10,500 10,500
Other expenses ............................ 76,954 10,116 2,052 11,822 7,542 1,040
------------ ------------ ------------ ----------- ----------- -----------
89,655,691 9,146,798 16,032,814 4,206,748 2,903,408 728,929
------------ ------------ ------------ ----------- ----------- -----------
Net investment income ..................... 791,425,383 74,784,444 82,357,531 16,469,736 12,540,286 2,556,532
NET REALIZED GAINS FROM
INVESTMENT TRANSACTIONS ................. 73,478 16,750 66,339 3 -- --
------------ ------------ ------------ ----------- ----------- -----------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS .............................. $791,498,861 $ 74,801,194 $ 82,423,870 $16,469,739 $12,540,286 $2,556,532
============ =============== ============ =========== =========== ===========
</TABLE>
See accompanying notes to financial statements
36
<PAGE>
PAINEWEBBER
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE YEARS ENDED
JUNE 30,
-----------------------------------
2000 1999
---------------- ----------------
<S> <C> <C>
PAINEWEBBER RMA MONEY MARKET PORTFOLIO
FROM OPERATIONS:
Net investment income ..................................................... $ 791,425,383 $ 590,891,031
Net realized gains from investment transactions ........................... 73,478 669,851
---------------- ----------------
Net increase in net assets resulting from operations ...................... 791,498,861 591,560,882
---------------- ----------------
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income ..................................................... (791,425,383) (590,891,031)
---------------- ----------------
Net increase in net assets from capital share transactions ................ 2,374,975,841 2,310,244,447
---------------- ----------------
Net increase in net assets ................................................ 2,375,049,319 2,310,914,298
NET ASSETS:
Beginning of year ......................................................... 13,446,140,114 11,135,225,816
---------------- ----------------
End of year ............................................................... $ 15,821,189,433 $ 13,446,140,114
================ ================
PAINEWEBBER RMA U.S. GOVERNMENT PORTFOLIO
FROM OPERATIONS:
Net investment income ..................................................... $ 74,784,444 $ 60,699,944
Net realized gains from investment transactions ........................... 16,750 2,334
---------------- ----------------
Net increase in net assets resulting from operations ...................... 74,801,194 60,702,278
---------------- ----------------
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income ..................................................... (74,784,444) (60,699,944)
---------------- ----------------
Net increase in net assets from capital share transactions ................ 316,234,950 175,015,861
---------------- ----------------
Net increase in net assets ................................................ 316,251,700 175,018,195
NET ASSETS:
Beginning of year ......................................................... 1,354,593,669 1,179,575,474
---------------- ----------------
End of year ............................................................... $ 1,670,845,369 $ 1,354,593,669
================ ================
PAINEWEBBER RMA TAX-FREE FUND, INC.
FROM OPERATIONS:
Net investment income ..................................................... $ 82,357,531 $ 66,764,600
Net realized gains from investment transactions ........................... 66,339 47,717
---------------- ----------------
Net increase in net assets resulting from operations ...................... 82,423,870 66,812,317
---------------- ----------------
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income ..................................................... (82,357,531) (66,764,600)
---------------- ----------------
Net increase in net assets from capital share transactions ................ 168,873,461 152,921,293
---------------- ----------------
Net increase in net assets ................................................ 168,939,800 152,969,010
NET ASSETS:
Beginning of year ......................................................... 2,424,937,913 2,271,968,903
---------------- ----------------
End of year ............................................................... $ 2,593,877,713 $ 2,424,937,913
================ ================
</TABLE>
See accompanying notes to financial statements
37
<PAGE>
PAINEWEBBER
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE YEARS ENDED
JUNE 30,
-----------------------------------
2000 1999
---------------- ----------------
<S> <C> <C>
PAINEWEBBER RMA CALIFORNIA MUNICIPAL MONEY FUND
FROM OPERATIONS:
Net investment income ..................................................... $ 16,469,736 $ 14,099,234
Net realized gains from investment transactions ........................... 3 1,210
---------------- ----------------
Net increase in net assets resulting from operations ...................... 16,469,739 14,100,444
---------------- ----------------
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income ..................................................... (16,469,736) (14,099,234)
---------------- ----------------
Net increase in net assets from beneficial interest transactions .......... 51,128,544 8,337,126
---------------- ----------------
Net increase in net assets ................................................ 51,128,547 8,338,336
NET ASSETS:
Beginning of year ......................................................... 575,295,608 566,957,272
---------------- ----------------
End of year ............................................................... $ 626,424,155 $ 575,295,608
================ ================
PAINEWEBBER RMA NEW YORK MUNICIPAL MONEY FUND
FROM OPERATIONS:
Net investment income ..................................................... $ 12,540,286 $ 10,153,704
Net realized gains from investment transactions ........................... -- 11,853
---------------- ----------------
Net increase in net assets resulting from operations ...................... 12,540,286 10,165,557
---------------- ----------------
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income ..................................................... (12,540,286) (10,153,704)
---------------- ----------------
Net increase in net assets from beneficial interest transactions .......... 64,373,459 33,477,063
---------------- ----------------
Net increase in net assets ................................................ 64,373,459 33,488,916
NET ASSETS:
Beginning of year ......................................................... 372,879,722 339,390,806
---------------- ----------------
End of year ............................................................... $ 437,253,181 $ 372,879,722
================ ================
PAINEWEBBER RMA NEW JERSEY MUNICIPAL MONEY FUND
FROM OPERATIONS:
Net investment income ..................................................... $ 2,556,532 $ 1,418,145
Net realized losses from investment transactions .......................... -- (2)
---------------- ----------------
Net increase in net assets resulting from operations ...................... 2,556,532 1,418,143
---------------- ----------------
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income ..................................................... (2,556,532) (1,418,145)
---------------- ----------------
Net increase in net assets from beneficial interest transactions .......... 30,303,941 14,692,667
---------------- ----------------
Net increase in net assets ................................................ 30,303,941 14,692,665
NET ASSETS:
Beginning of year ......................................................... 62,972,055 48,279,390
---------------- ----------------
End of year ............................................................... $ 93,275,996 $ 62,972,055
================ ================
</TABLE>
See accompanying notes to financial statements
38
<PAGE>
NOTES TO FINANCIAL STATEMENTS
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
PaineWebber RMA Money Fund, Inc. (the "Corporation") and PaineWebber RMA
Tax-Free Fund, Inc. ("RMA Tax-Free") were organized under the laws of Maryland
on July 2, 1982 and are registered with the Securities and Exchange Commission
under the Investment Company Act of 1940, as amended, as open-end management
investment companies. RMA Tax-Free is a diversified mutual fund and the
Corporation is a series mutual fund with three portfolios, each of which are
diversified series: PaineWebber RMA Money Market Portfolio ("Money Market
Portfolio"), PaineWebber RMA U.S. Government Portfolio ("U.S. Government
Portfolio") and PaineWebber Retirement Money Fund. The financial statements of
PaineWebber Retirement Money Fund are not included herein.
PaineWebber Managed Municipal Trust ("Managed Municipal Trust") and
PaineWebber Municipal Money Market Series ("Municipal Money Market Series") were
organized under Massachusetts law by Declarations of Trust dated November 21,
1986 and September 14, 1990, respectively, and are registered with the
Securities and Exchange Commission under the Investment Company Act of 1940, as
amended, as open-end management investment companies. Managed Municipal Trust
currently offers two non-diversified series of shares: PaineWebber RMA
California Municipal Money Fund ("RMA California") and PaineWebber RMA New York
Municipal Money Fund ("RMA New York"). Municipal Money Market Series currently
offers one non-diversified series of shares: PaineWebber RMA New Jersey
Municipal Money Fund ("RMA New Jersey", and when referred together with Money
Market Portfolio, U.S. Government Portfolio, RMA Tax-Free, RMA California and
RMA New York collectively, the "Funds").
The preparation of financial statements in accordance with accounting
principles generally accepted in the United States 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.
39
<PAGE>
NOTES TO FINANCIAL STATEMENTS
CONCENTRATION OF RISK
The ability of the issuers of the debt securities held by the Funds to meet
their obligations may be affected by economic developments, including those
particular to a specific industry or region.
Additionally, RMA California, RMA New York and RMA New Jersey follow an
investment policy of investing primarily in municipal obligations of one state.
Economic changes affecting each state and certain of their public bodies and
municipalities may affect the ability of issuers within each state to pay
interest on, or repay principal of, municipal obligations held by each of those
Funds.
INVESTMENT ADVISER AND ADMINISTRATOR
Each Fund has entered into a board approved Investment Advisory and
Administration Contract ("Advisory Contract") with PaineWebber Incorporated
("PaineWebber"), under which PaineWebber serves as investment adviser and
administrator. In accordance with the Advisory Contract, each Fund pays
PaineWebber an investment advisory and administration fee, which is accrued
daily and paid monthly, in accordance with the following schedule:
<TABLE>
<CAPTION>
ANNUAL
AVERAGE DAILY NET ASSETS RATE
------------------------ ------
<S> <C>
MONEY MARKET PORTFOLIO AND RMA NEW JERSEY:
All ........................................................................... 0.50%
U.S. GOVERNMENT PORTFOLIO, RMA CALIFORNIA AND RMA NEW YORK:
Up to $300 million ............................................................ 0.50
In excess of $300 million up to $750 million .................................. 0.44
Over $750 million ............................................................. 0.36
RMA TAX-FREE:
Up to $1.0 billion ............................................................ 0.50
In excess of $1.0 billion up to $1.5 billion .................................. 0.44
Over $1.5 billion ............................................................. 0.36
At June 30, 2000, the Funds owed PaineWebber for investment advisory and administration fees as follows:
Money Market Portfolio ........................................................ $ 6,572,081
U.S. Government Portfolio ..................................................... 569,516
RMA Tax-Free .................................................................. 945,404
RMA California ................................................................ 245,786
RMA New York .................................................................. 175,287
RMA New Jersey ................................................................ 41,298
</TABLE>
Mitchell Hutchins Asset Management Inc. ("Mitchell Hutchins"), a wholly-owned
asset management subsidiary of PaineWebber Incorporated ("PaineWebber"), a
wholly owned subsidiary of Paine Webber Group Inc. ("PW Group"), 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.
On July 12, 2000, PW Group and UBS AG ("UBS") announced that they had entered
into an agreement and plan of merger under which PW Group will merge into a
wholly owned subsidiary of UBS. If all required approvals are obtained and the
required conditions are satisfied, PW Group and UBS expect to complete the
transaction in the fourth quarter of 2000. UBS, with headquarters in Zurich,
Switzerland, is an internationally diversified organization with operations in
many areas of the financial services industry.
40
<PAGE>
NOTES TO FINANCIAL STATEMENTS
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
for providing such services at the annual rate of 0.125% for each of those Funds
except for RMA New Jersey which pays at the annual rate of 0.12%. No such fees
are charged by PaineWebber for the similar services it provides for the Money
Market Portfolio. At June 30, 2000, the Funds owed PaineWebber for such service
fees as follows:
<TABLE>
<S> <C>
U.S. Government Portfolio ................................................... $ 175,549
RMA Tax-Free ................................................................ 277,036
RMA California .............................................................. 65,634
RMA New York ................................................................ 45,606
RMA New Jersey .............................................................. 9,911
</TABLE>
TRANSFER AGENCY AND RELATED SERVICES FEES
PaineWebber provides transfer agency and related services to the Funds
pursuant to a delegation of authority from PFPC, Inc., the Funds' transfer
agent, and is compensated for these services by PFPC, Inc., not the Funds. For
the year ended June 30, 2000, 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 ..................................................... 55%
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 June 30, 2000, the Funds did not use this insurance bond.
41
<PAGE>
NOTES TO FINANCIAL STATEMENTS
OTHER LIABILITIES
At June 30, 2000, the Funds had the following liabilities outstanding:
<TABLE>
<CAPTION>
PAYABLE FOR
DIVIDENDS INVESTMENTS
PAYABLE PURCHASED
------------ ------------
<S> <C> <C>
Money Market Portfolio ......................................... $ 23,657,261 $99,982,500
U.S. Government Portfolio ...................................... 2,330,391 --
RMA Tax-Free ................................................... 2,548,286 98,538,058
RMA California ................................................. 535,714 91,332,138
RMA New York ................................................... 399,602 16,261,382
RMA New Jersey ................................................. 88,317 --
</TABLE>
FEDERAL TAX STATUS
Each Fund intends to distribute all of its income and to comply with the
other requirements of the Internal Revenue Code applicable to regulated
investment companies. Accordingly, no provision for federal income taxes is
required. In addition, by distributing during each calendar year substantially
all of its net investment income, capital gains and certain other amounts, if
any, the Funds do not intend to be subject to federal excise tax.
At June 30, 2000, the Funds had capital loss carryforwards as follows:
<TABLE>
<S> <C>
Money Market Portfolio ...................................................... $2,385,448
RMA Tax-Free ................................................................ 208,391
RMA California .............................................................. 172,837
RMA New York ................................................................ 61,031
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, 2001 and June 30,
2004 for RMA Tax-Free and RMA California, between June 30, 2002 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, 2000.
CAPITAL SHARE TRANSACTIONS
There are 30 billion $0.001 par value authorized shares of common stock
relating to Money Market Portfolio, 10 billion $0.001 par value authorized
shares of common stock relating to the U.S. Government Portfolio and 20 billion
$0.001 par value authorized shares of common stock relating to the RMA Tax-Free.
Transactions in capital shares, at $1.00 per share, were as follows:
<TABLE>
<CAPTION>
FOR THE YEAR ENDED JUNE 30, 2000
--------------------------------------------------
MONEY MARKET U.S. GOVERNMENT RMA
PORTFOLIO PORTFOLIO TAX-FREE
---------------- -------------- ---------------
<S> <C> <C> <C>
Shares sold ......................................... 104,443,038,028 8,620,543,209 16,326,207,165
Shares repurchased .................................. (102,838,070,318) (8,377,198,200) (16,237,766,244)
Dividends reivested ................................. 770,008,131 72,889,941 80,432,540
---------------- -------------- ---------------
Net increase in shares outstanding .................. 2,374,975,841 316,234,950 168,873,461
================ ============== ===============
42
<PAGE>
NOTES TO FINANCIAL STATEMENTS
<CAPTION>
FOR THE YEAR ENDED JUNE 30, 2000
--------------------------------------------------
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
---------------- -------------- ---------------
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:
<CAPTION>
FOR THE YEAR ENDED JUNE 30, 2000
--------------------------------------------------
RMA RMA RMA
CALIFORNIA NEW YORK NEW JERSEY
---------------- -------------- ---------------
<S> <C> <C> <C>
Shares sold ......................................... 3,492,170,914 3,076,372,707 621,628,206
Shares repurchased .................................. (3,457,112,277) (3,024,185,987) (593,778,319)
Dividends reinvested ................................ 16,069,907 12,186,739 2,454,054
---------------- -------------- ---------------
Net increase in shares outstanding .................. 51,128,544 64,373,459 30,303,941
================ ============== ===============
<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>
43
<PAGE>
PAINEWEBBER RMA MONEY MARKET PORTFOLIO
FINANCIAL HIGHLIGHTS
Selected data for a share of common stock outstanding throughout each year is
presented below:
<TABLE>
<CAPTION>
FOR THE YEARS ENDED JUNE 30,
------------------------------------------------------------------------
2000 1999 1998 1997 1996
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year ................ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------------ ------------ ------------ ------------ ------------
Net investment income ............................. 0.052 0.046 0.051 0.049 0.051
Dividends from net investment income .............. (0.052) (0.046) (0.051) (0.049) (0.051)
------------ ------------ ------------ ------------ ------------
Net asset value, end of year ...................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
============ ============ ============ ============ ============
Total investment return(1) ........................ 5.29% 4.76% 5.21% 5.04% 5.25%
============ ============ ============ ============ ============
Ratios/Supplemental Data:
Net assets, end of year (000's) ................... $ 15,821,189 $ 13,446,140 $ 11,135,226 $ 8,673,055 $ 7,522,612
Expenses to average net assets .................... 0.59% 0.59% 0.60% 0.59% 0.60%(2)
Net investment income to average net assets ....... 5.19% 4.64% 5.09% 4.94% 5.14%(2)
</TABLE>
----------------
(1) Total investment return is calculated assuming a $10,000 investment on the
first day of each year reported, reinvestment of all dividends and
distributions at net asset value on the payable dates, and a sale at net
asset value on the last day of each year reported.
(2) These ratios include non-recurring acquisition expenses of 0.01%.
44
<PAGE>
PAINEWEBBER RMA U.S. GOVERNMENT PORTFOLIO
FINANCIAL HIGHLIGHTS
Selected data for a share of common stock outstanding throughout each year is
presented below:
<TABLE>
<CAPTION>
FOR THE YEARS ENDED JUNE 30,
------------------------------------------------------------------------
2000 1999 1998 1997 1996
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year ................ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------------ ------------ ------------ ------------ ------------
Net investment income ............................. 0.048 0.044 0.049 0.048 0.049
Dividends from net investment income .............. (0.048) (0.044) (0.049) (0.048) (0.049)
------------ ------------ ------------ ------------ ------------
Net asset value, end of year ...................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
============ ============ ============ ============ ============
Total investment return(1) ........................ 4.88% 4.45% 5.05% 4.88% 5.04%
============ ============ ============ ============ ============
Ratios/Supplemental Data:
Net assets, end of year (000's) ................... $ 1,670,845 $ 1,354,594 $ 1,179,575 $ 1,083,866 $ 1,137,510
Expenses to average net assets .................... 0.59% 0.60% 0.57% 0.62% 0.65%(2)
Net investment income to average net assets ....... 4.81% 4.35% 4.93% 4.78% 4.91%(2)
</TABLE>
----------------
(1) Total investment return is calculated assuming a $10,000 investment on the
first day of each year reported, reinvestment of all dividends and
distributions at net asset value on the payable dates, and a sale at net
asset value on the last day of each year reported.
(2) These ratios include non-recurring acquisition expenses of 0.02%.
45
<PAGE>
PAINEWEBBER RMA TAX-FREE FUND, INC.
FINANCIAL HIGHLIGHTS
Selected data for a share of common stock outstanding throughout each year is
presented below:
<TABLE>
<CAPTION>
FOR THE YEARS ENDED JUNE 30,
------------------------------------------------------------------------
2000 1999 1998 1997 1996
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year ................ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------------ ------------ ------------ ------------ ------------
Net investment income ............................. 0.031 0.026 0.031 0.029 0.030
Dividends from net investment income .............. (0.031) (0.026) (0.031) (0.029) (0.030)
------------ ------------ ------------ ------------ ------------
Net asset value, end of year ...................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
============ ============ ============ ============ ============
Total investment return(1) ........................ 3.10% 2.67% 3.10% 2.98% 3.09%
============ ============ ============ ============ ============
Ratios/Supplemental Data:
Net assets, end of year (000's) ................... $ 2,593,878 $ 2,424,938 $ 2,271,969 $ 2,065,920 $ 2,013,448
Expenses to average net assets .................... 0.60% 0.59% 0.58% 0.61% 0.61%(2)
Net investment income to average net assets ....... 3.06% 2.63% 3.06% 2.94% 3.02%(2)
----------------
</TABLE>
(1) Total investment return is calculated assuming a $10,000 investment on the
first day of each year reported, reinvestment of all dividends and
distributions at net asset value on the payable dates, and a sale at net
asset value on the last day of each year reported.
(2) These ratios include non-recurring acquisition expenses of 0.01%.
46
<PAGE>
PAINEWEBBER RMA CALIFORNIA MUNICIPAL MONEY FUND
FINANCIAL HIGHLIGHTS
Selected data for a share of beneficial interest outstanding throughout each
year is presented below:
<TABLE>
<CAPTION>
FOR THE YEARS ENDED JUNE 30,
------------------------------------------------------------------------
2000 1999 1998 1997 1996
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year ................ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------------ ------------ ------------ ------------ ------------
Net investment income ............................. 0.026 0.023 0.028 0.028 0.029
Dividends from net investment income .............. (0.026) (0.023) (0.028) (0.028) (0.029)
------------ ------------ ------------ ------------ ------------
Net asset value, end of year ...................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
============ ============ ============ ============ ============
Total investment return(1) ........................ 2.59% 2.31% 2.87% 2.87% 2.89%
============ ============ ============ ============ ============
Ratios/Supplemental Data:
Net assets, end of year (000's) ................... $ 626,424 $ 575,296 $ 566,957 $ 492,915 $ 473,726
Expenses to average net assets .................... 0.65% 0.67% 0.65% 0.62% 0.70%(2)
Net investment income to average net assets ....... 2.56% 2.28% 2.83% 2.83% 2.82%(2)
</TABLE>
-----------
(1) Total investment return is calculated assuming a $10,000 investment on the
first day of each year reported, reinvestment of all dividends and
distributions at net asset value on the payable dates, and a sale at net
asset value on the last day of each year reported.
(2) These ratios include non-recurring acquisition expenses of 0.03%.
47
<PAGE>
PAINEWEBBER RMA NEW YORK MUNICIPAL MONEY FUND
FINANCIAL HIGHLIGHTS
Selected data for a share of beneficial interest outstanding throughout each
year is presented below:
<TABLE>
<CAPTION>
FOR THE YEARS ENDED JUNE 30,
------------------------------------------------------------------------
2000 1999 1998 1997 1996
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year ................ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------------ ------------ ------------ ------------ ------------
Net investment income ............................. 0.029 0.025 0.029 0.028 0.029
Dividends from net investment income .............. (0.029) (0.025) (0.029) (0.028) (0.029)
------------ ------------ ------------ ------------ ------------
Net asset value, end of year ...................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
============ ============ ============ ============ ============
Total investment return(1) ........................ 2.93% 2.50% 2.97% 2.85% 2.91%
============ ============ ============ ============ ============
Ratios/Supplemental Data:
Net assets, end of year (000's) ................... $ 437,253 $ 372,880 $ 339,391 $ 274,338 $ 255,177
Expenses to average net assets before
waiver from adviser ............................. 0.67% 0.65% 0.65% 0.77% 0.74%(2)
Expenses to average net assets after
waiver from adviser ............................. 0.67% 0.65% 0.65% 0.67% 0.72%(2)
Net investment income to average net
assets before waiver from adviser ............... 2.90% 2.46% 2.92% 2.71% 2.80%(2)
Net investment income to average net
assets after waiver from adviser ................ 2.90% 2.46% 2.92% 2.81% 2.82%(2)
</TABLE>
----------------
(1) Total investment return is calculated assuming a $10,000 investment on the
first day of each year reported, reinvestment of all dividends and
distributions at net asset value on the payable dates, and a sale at net
asset value on the last day of each year reported.
(2) These ratios include non-recurring acquisition expenses of 0.04%.
48
<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 YEAR ENDED
FOR THE YEARS ENDED JUNE 30, JUNE 30, OCTOBER 31,
--------------------------------------------------------- ------------ ------------
2000 1999 1998 1997 1996 1995(2)
------------ ------------ ------------ ------------ ------------ ------------
<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 .................... 0.027 0.022 0.026 0.026 0.017 0.027
Dividends from net investment income ..... (0.027) (0.022) (0.026) (0.026) (0.017) (0.027)
------------ ------------ ------------ ------------ ------------ ------------
Net asset value, end of period ........... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
============ ============ ============ ============ ============ ============
Total investment return(1) ............... 2.72% 2.21% 2.67% 2.65% 1.71% 2.75%
============ ============ ============ ============ ============ ============
Ratios/Supplemental Data:
Net assets, end of period (000's) ........ $ 93,276 $ 62,972 $ 48,279 $ 52,324 $ 42,233 $ 36,206
Expenses to average net assets ........... 0.78% 0.89% 0.85% 0.81% 0.95%* 0.93%
Net investment income to average net
assets.................................. 2.69% 2.18% 2.64% 2.63% 2.56%* 2.73%
</TABLE>
----------------
* Annualized
(1) Total investment return is calculated assuming a $10,000 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.
49
<PAGE>
REPORT OF ERNST & YOUNG LLP
Boards of Directors and/or Trustees and Shareholders
PaineWebber RMA Money Fund, Inc.
PaineWebber RMA Tax-Free Fund, Inc.
PaineWebber Managed Municipal Trust
PaineWebber Municipal Money Market Series
We have audited the accompanying statements of net assets of PaineWebber
RMA Money Fund, Inc. (comprised of PaineWebber RMA Money Market Portfolio and
PaineWebber RMA U.S. Government Portfolio), PaineWebber RMA Tax-Free Fund, Inc.,
PaineWebber Managed Municipal Trust (comprised of PaineWebber RMA California
Municipal Money Fund and PaineWebber RMA New York Municipal Money Fund) and
PaineWebber Municipal Money Market Series (comprised of PaineWebber RMA New
Jersey Municipal Money Fund) (collectively, the "Funds") as of June 30, 2000,
and the related statements of operations for the year then ended, the statements
of changes in net assets for each of the two years in the period then ended and
the financial highlights for each of the periods indicated therein. These
financial statements and financial highlights are the responsibility of the
Funds' management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.
We conducted our audits in accordance with auditing standards generally
accepted in the United States. Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether the financial statements
and financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements and financial highlights. Our procedures included
confirmation of securities owned at June 30, 2000, by correspondence with the
custodian. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position of
PaineWebber RMA Money Market Portfolio, PaineWebber RMA U.S. Government
Portfolio, PaineWebber RMA Tax-Free Fund, Inc., PaineWebber RMA California
Municipal Money Fund, PaineWebber RMA New York Municipal Money Fund and
PaineWebber RMA New Jersey Municipal Money Fund at June 30, 2000, the results of
their operations for the year then ended, the changes in their net assets for
each of the two years in the period then ended, and the financial highlights for
each of the periods indicated therein, in conformity with accounting principles
generally accepted in the United States.
/s/ Ernst & Young LLP
New York, New York
August 24, 2000
50
<PAGE>
PAINEWEBBER RMA MONEY MARKET FUNDS
TAX INFORMATION (UNAUDITED)
We are required by Subchapter M of the Internal Revenue Code of 1986, as
amended, to advise you within 60 days of each Fund's fiscal year end (June 30,
2000) as to the federal tax status of distributions received by shareholders
during such fiscal year. Accordingly, we are advising you that all dividends
paid during the period by RMA California, RMA New York, RMA New Jersey and RMA
Tax-Free were federally exempt interest dividends. RMA New Jersey had 19.33% of
the dividends paid subject to the federal alternative minimum tax for individual
taxpayers during the fiscal year. Except for RMA Tax-Free, all dividends paid by
the aforementioned funds were exempt from personal income taxes from their
respective states. All of the distributions paid during the fiscal year by RMA
Money Market Portfolio and RMA U.S. Government Portfolio were derived from net
investment income and are taxable as ordinary income. None of the distributions
qualified for the dividend received deduction available to corporate
shareholders.
Dividends received by qualified tax-exempt recipients (e.g., IRAs and
Keoghs) need not be reported as taxable income. Some retirement trusts (e.g.,
corporate, Keogh and 403(b)(7) plans) may need this information for their annual
information reporting.
Because each Fund's fiscal year is not the calendar year, another
notification will be sent in respect of calendar year 2000. The second
notification, which will reflect the amount to be used by calendar year
taxpayers on their federal income tax returns, will be made in conjunction with
Form 1099 DIV and will be mailed in January 2001. Shareholders are advised to
consult their own tax advisers with respect to the tax consequences of their
investment in each respective Fund.
51
<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
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
THIS REPORT IS NOT TO BE USED IN CONNECTION WITH THE OFFERING OF SHARES OF A
FUND UNLESS ACCOMPANIED OR PRECEDED BY AN EFFECTIVE PROSPECTUS.
<PAGE>
PAINEWEBBER
-C-2000 PAINEWEBBER INCORPORATED
ALL RIGHTS RESERVED
MEMBER SIPC
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
JUNE 30, 2000
ANNUAL REPORT
