<PAGE>
(ART)
PAINEWEBBER
RETIREMENT MONEY FUND
ANNUAL REPORT
JUNE 30, 1995
<PAGE>
August 15, 1995
Dear Shareholder,
During the year ended June 30, 1995, the pace of U.S. economic growth was
perceived to have slowed in response to the Federal Reserve Board's repeated
increases in the benchmark Federal Funds rate, the rate banks charge each other
for overnight borrowing. The Federal Reserve Board raised the Federal Funds
rate to 6.0% after seven short-term interest rate hikes between February 1994
and February 1995. On July 6, 1995, the Federal Reserve cut the benchmark
Federal Funds rate by 0.25% to 5.75%. This decrease, the first in nearly three
years, signals that the Federal Reserve Board believes that inflationary
pressures have eased enough to accommodate an adjustment in monetary
conditions.
ECONOMIC OVERVIEW
News concerning the economy during the year ended June 30, 1995, was dominated
by debate over whether inflation continued to threaten the economy, discussions
about the dismal performance of the dollar and details of efforts in Washington
to implement a plan to balance the budget. The U.S. bond and stock markets
rallied in the first half of 1995. Interest rates trended downward, as the
perception that the Federal Reserve had won its battle with inflation and that
the next policy action would be to lower short-term interest rates became
widespread. Strength in corporate earnings pushed stock prices higher.
Employment reports indicated a slowing economy, with consumer spending
declining significantly from 1994 and consumer credit reports showing high
ratios of installment debt to disposable income. Side effects of higher
interest rates lingered, however. Markets for new and existing homes were
sluggish until the close of the twelve-month period, despite historically
attractive mortgage rates. Although the U.S economy appears to have been flat
in the second quarter, the second half of 1995 should show signs of further,
albeit slower, growth.
PORTFOLIO REVIEW
PaineWebber Retirement Money Fund's net assets totalled $2.97 billion as of
June 30, 1995. The Fund's current yield for the seven-day period ended June 30,
1995 was 5.35%. In anticipation of a possible Federal Reserve Board action, the
Fund maintained a neutral weighted average maturity during the year ended June
30, 1995.
Going forward, the Fund will maintain a neutral weighted average maturity as
short-term rates find stability. On June 30, 1995, the Fund's weighted average
maturity was 53 days. The Federal Reserve Board appears to have engineered a
soft landing and it seems as though the next short-term interest rate move will
be another decrease in the Federal Funds rate. However, if inflation becomes
problematic, further increases in short-term interest rates could be possible.
Investment decisions in the Fund will continue to be dominated by credit
quality and liquidity. Although we are interested in maintaining higher yields,
we will not do so by sacrificing the Fund's emphasis on security, quality and
liquidity.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<PAGE>
We value you as a shareholder and as a client, and thank you for your continued
support. We welcome any comments or questions you may have.
Sincerely,
/s/ Frank P.L. Minard /s/ Dennis L. McCauley
- --------------------- ----------------------
FRANK P.L. MINARD DENNIS L. MCCAULEY
Chairman,
Mitchell Hutchins Asset Management Inc. Managing Director and Chief
Investment Officer--Fixed Income,
Mitchell Hutchins Asset Management
Inc.
/s/ Susan P. Messina
- --------------------
SUSAN P. MESSINA
Senior Vice President Taxable Fixed Income,
Mitchell Hutchins Asset Management Inc.
Portfolio Manager,
PaineWebber Retirement Money Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
2
<PAGE>
PaineWebber Retirement Money Fund
- --------------------------------------------------------------------------------
Statement of Net Assets
June 30, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
--------- -------------------- -------------- -----------
<S> <C> <C> <C>
U.S GOVERNMENT & AGENCY
OBLIGATIONS--5.84%
$25,000 U.S. Treasury Bills..... 11/16/95 6.125%** $24,413,021
35,000 Federal Farm Credit
Bank.................... 07/17/95 5.910 34,908,067
32,350 Federal Home Loan Bank . 09/14/95 to 04/25/96 5.580 to 6.870 31,475,373
25,000 Federal Home Loan
Mortgage Corp. ......... 05/13/96 6.210 24,998,773
35,000 Federal National
Mortgage Association.... 08/14/95 to 06/12/96 5.500 to 6.210 34,790,954
22,500 Student Loan Marketing
Association............. 07/05/95 5.680* 22,489,923
-----------
TOTAL U.S. GOVERNMENT & AGENCY
OBLIGATIONS
(cost--$173,076,111)............. 173,076,111
-----------
BANK NOTES--5.73%
DOMESTIC-5.33%
10,000 Bank One, Milwaukee,
N.A. ................... 03/07/96 6.820 10,032,072
18,000 Huntington National
Bank.................... 07/03/95 5.900 17,999,889
45,000 NationsBank of Texas.... 11/20/95 to 01/26/96 6.000 to 7.300 45,005,376
25,000 NBD Bank, N.A. ......... 04/25/96 6.400 24,990,238
60,000 PNC Bank, N.A. ........ 11/13/95 to 05/24/96 6.040 to 6.350 60,049,911
-----------
158,077,486
-----------
YANKEE-0.40%
12,000 Westdeutsche Landesbank
Girozentrale............ 03/01/96 6.625 11,990,428
-----------
TOTAL BANK NOTES (cost--
$170,067,914).................... 170,067,914
-----------
BANKERS ACCEPTANCE--1.17%
YANKEE-1.17%
35,000 Dai-Ichi Kangyo Bank Ltd
(cost--$34,790,243)..... 07/07/95 to 10/19/95 5.975 to 6.050 34,790,243
-----------
CERTIFICATES OF DEPOSIT--4.76%
DOMESTIC-0.51%
15,000 ABN AMRO Bank, N.V. .... 06/05/96 5.570 14,995,862
-----------
EURODOLLAR-0.54%
16,000 Morgan Guaranty Trust
Co., London............. 07/31/95 6.610 16,000,035
-----------
YANKEE-3.71%
35,000 Canadian Imperial Bank
of Commerce............. 08/01/95 5.980 35,000,332
10,000 Fuji Bank Ltd. ......... 07/28/95 6.140 10,000,522
25,000 Sanwa Bank Ltd. ........ 07/18/95 to 07/31/95 6.030 to 6.060 25,001,007
40,000 Societe Generale........ 07/24/95 to 02/02/96 6.020 to 7.250 40,000,531
-----------
110,002,392
-----------
TOTAL CERTIFICATES OF DEPOSIT
(cost--$140,998,289)............. 140,998,289
-----------
</TABLE>
3
<PAGE>
PaineWebber Retirement Money Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
--------- -------------------- -------------- --------------
<S> <C> <C> <C>
COMMERCIAL PAPER**--79.56%
AEROSPACE-DEFENSE-5.57%
$84,435 Raytheon Co. ........... 07/07/95 to 07/17/95 5.940 to 5.950% $ 84,268,719
81,200 Rockwell International
Corp. .................. 07/18/95 to 07/20/95 5.870 to 5.940 80,954,814
--------------
165,223,533
--------------
ASSET-BACKED-5.40%
24,777 Delaware Funding Corp. . 07/21/95 to 07/25/95 5.950 to 5.960 24,684,563
75,000 Eiger Capital Corp. .... 07/06/95 to 08/03/95 5.880 to 5.970 74,822,354
10,900 Falcon Asset
Securitization Corp. ... 08/25/95 5.950 10,800,916
40,000 New Center Asset Trust.. 07/06/95 to 07/24/95 5.960 to 6.010 39,922,015
10,000 Preferred Receivables
Funding Corp. .......... 07/20/95 5.970 9,968,492
--------------
160,198,340
--------------
AUTO & TRUCK-7.04%
67,300 Daimler-Benz North
America Corp. .......... 07/21/95 to 08/11/95 5.850 to 5.960 66,962,809
65,000 Ford Motor Credit
Corp. .................. 07/07/95 to 08/03/95 5.940 to 6.000 64,762,650
25,000 Hertz Corp. ............ 07/10/95 5.980 24,962,625
52,825 Toyota Motor Credit
Corp. .................. 07/05/95 to 12/08/95 5.940 to 6.300 52,227,491
--------------
208,915,575
--------------
BANKING-4.82%
21,100 BEX America Finance,
Inc. ................... 08/03/95 5.950 20,984,917
59,000 Indosuez North America,
Inc. ................... 07/05/95 to 07/14/95 5.920 to 6.080 58,931,052
23,350 J.P. Morgan & Co.,
Inc. ................... 07/31/95 5.920 23,234,807
40,000 MPS U.S. Commercial
Paper Corp. ............ 07/24/95 to 07/26/95 5.960 to 5.980 39,842,403
--------------
142,993,179
--------------
BROKER-DEALER-5.86%
25,000 CS First Boston, Inc. .. 08/02/95 5.970 24,867,333
50,000 Goldman Sachs Group,
L.P. ................... 07/18/95 to 07/26/95 5.870 to 5.950 49,834,203
50,000 Merrill Lynch & Co.,
Inc. ................... 08/21/95 to 10/17/95 5.900 to 6.080 49,285,633
50,000 Morgan Stanley Group,
Inc. ................... 07/10/95 to 07/25/95 5.940 to 5.970 49,851,350
--------------
173,838,519
--------------
BUSINESS SERVICES-3.29%
79,600 PHH Corp. .............. 07/11/95 to 08/08/95 5.870 to 5.980 79,235,274
18,500 Pitney Bowes Credit
Corp. .................. 08/28/95 6.130 18,317,292
--------------
97,552,566
--------------
CHEMICAL-0.82%
25,000 E.I. duPont deNemours &
Co. .................... 11/28/95 5.640 24,412,500
--------------
CONGLOMERATE-0.64%
19,000 BTR Dunlop Finance,
Inc. ................... 08/21/95 6.160 18,834,193
--------------
DRUGS & HEALTH CARE-4.60%
82,400 Eli Lilly & Co. ........ 07/17/95 to 08/02/95 5.880 to 6.000 82,095,391
54,475 Pfizer, Inc. ........... 07/05/95 to 08/07/95 5.915 to 5.920 54,269,536
--------------
136,364,927
--------------
</TABLE>
4
<PAGE>
PaineWebber Retirement Money Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
--------- -------------------- -------------- --------------
<S> <C> <C> <C>
COMMERCIAL PAPER--(continued)
ELECTRONICS-1.64%
$48,754 Siemens Corp. .......... 07/03/95 to 07/18/95 5.930 to 6.200% $ 48,708,032
--------------
ENERGY-3.49%
40,000 Chevron Oil Finance
Co. .................... 07/27/95 to 08/10/95 5.920 to 5.930 39,759,839
34,000 Exxon Imperial U.S.,
Inc. ................... 07/17/95 to 07/28/95 5.940 to 5.950 33,884,741
15,000 Koch Industries, Inc. .. 08/01/95 5.920 14,923,533
15,000 Shell Oil Co. .......... 09/15/95 5.840 14,815,067
--------------
103,383,180
--------------
FINANCE-CONDUIT-2.60%
28,114 MetLife Funding, Inc. .. 07/14/95 to 07/20/95 5.850 to 5.920 28,039,653
19,000 SBNSW Delaware, Inc. ... 07/13/95 5.940 18,962,380
30,000 Svenska Handelsbanken,
Inc. ................... 07/07/95 5.960 29,970,200
--------------
76,972,233
--------------
FINANCE-CONSUMER-4.25%
33,000 American General Finance
Corp. .................. 07/26/95 to 08/04/95 5.940 to 5.950 32,829,650
25,000 Household Finance
Corp. .................. 08/09/95 5.950 24,838,854
69,000 Transamerica Finance
Corp. .................. 07/25/95 to 11/27/95 5.950 to 6.230 68,364,160
--------------
126,032,664
--------------
FINANCE-DIVERSIFIED-4.59%
45,000 Associates Corp. of
North America........... 07/21/95 to 08/11/95 5.920 to 5.950 44,764,812
49,800 Barclays U.S. Funding
Corp. .................. 07/03/95 to 07/11/95 5.900 to 5.980 49,751,050
42,000 Sanwa Business Credit
Corp. .................. 08/10/95 to 08/14/95 5.980 to 6.020 41,712,373
--------------
136,228,235
--------------
FINANCE-INDEPENDENT-0.83%
25,000 National Rural Utilities
Co-op Finance Corp. .... 09/22/95 5.870 24,661,660
--------------
FINANCE-RETAIL-0.49%
14,675 American Express Credit
Corp. .................. 07/26/95 5.970 14,614,160
--------------
FINANCE-SUBSIDIARY-2.19%
35,000 Creditanstalt Finance,
Inc. ................... 07/19/95 to 07/24/95 5.950 to 5.960 34,879,272
30,000 Deutsche Bank Financial,
Inc. ................... 07/05/95 5.930 29,980,233
--------------
64,859,505
--------------
FOOD & BEVERAGE-4.32%
33,000 Allied Domecq North
America Corp. .......... 07/20/95 to 08/10/95 5.940 to 5.960 32,854,698
10,000 Campbell Soup Co........ 01/12/96 6.090 9,670,125
17,021 Coca-Cola Co. .......... 07/27/95 5.940 16,947,980
22,000 Heinz (H.J.) Co. ....... 07/20/95 5.900 21,931,494
20,000 Nestle Capital Corp. ... 07/11/95 5.950 19,966,944
27,000 Philip Morris Capital
Corp. .................. 08/11/95 to 08/29/95 5.850 to 5.980 26,774,461
--------------
128,145,702
--------------
GENERAL TRADE-0.51%
15,000 Mitsubishi International
Corp. .................. 07/12/95 5.950 14,972,729
--------------
</TABLE>
5
<PAGE>
PaineWebber Retirement Money Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
--------- -------------------- -------------- --------------
<S> <C> <C> <C>
COMMERCIAL PAPER**--(concluded)
INSURANCE-1.18%
$25,000 Prudential Funding
Corp. .................. 07/12/95 5.930% $ 24,954,701
10,000 USAA Capital Corp. ..... 07/31/95 5.930 9,950,583
--------------
34,905,284
--------------
INSURANCE-PROPERTY/CASUALTY-1.68%
50,000 AIG Funding, Inc. ...... 07/10/95 5.925 49,925,937
--------------
METALS & MINING-1.52%
45,500 RTZ America, Inc. ...... 08/07/95 to 08/14/95 5.930 to 5.950 45,193,253
--------------
OIL EQUIPMENT & SERVICES-2.32%
69,100 Colonial Pipeline Co. .. 07/21/95 to 08/04/95 5.930 to 5.950 68,801,591
--------------
PAPER & FOREST PRODUCTS-1.51%
45,000 Weyerhaeuser Co. ....... 07/19/95 to 07/27/95 5.950 44,839,681
--------------
PRINTING & PUBLISHING-2.47%
73,500 Reed Elsevier (USA)
Inc. ................... 07/06/95 to 07/19/95 5.870 to 5.940 73,364,669
--------------
RETAIL-MERCHANDISE-3.98%
40,000 J.C. Penney Funding
Corp. .................. 07/14/95 to 07/27/95 5.870 to 5.950 39,860,774
35,000 Melville Corp. ......... 12/05/95 to 12/07/95 6.190 34,046,568
26,400 Toys 'R' Us............. 07/17/95 5.940 26,330,304
17,800 Wal-Mart Stores, Inc. .. 08/01/95 5.920 17,709,260
--------------
117,946,906
--------------
TELECOMMUNICATIONS-1.11%
8,000 BellSouth Capital
Funding Corp. .......... 07/31/95 6.080 7,959,467
25,000 BellSouth
Telecommunications...... 07/21/95 5.940 24,917,500
--------------
32,876,967
--------------
UTILITY-ELECTRIC-0.84%
25,000 Duke Power Co. ......... 07/12/95 5.950 24,954,549
--------------
TOTAL COMMERCIAL PAPER (cost--
$2,359,720,269)................... 2,359,720,269
--------------
SHORT-TERM CORPORATE
OBLIGATIONS--2.68%
BANKING-0.84%
25,000 J.P. Morgan & Co.,
Inc. ................... 05/13/96 6.200 25,001,382
--------------
BROKER-DEALER-0.84%
25,000 Merrill Lynch & Co.,
Inc. ................... 04/29/96 to 06/10/96 5.610 to 6.491 24,998,872
--------------
FOOD & BEVERAGE-0.49%
14,500 Philip Morris Companies,
Inc. ................... 10/01/95 9.400 14,598,357
--------------
MISCELLANEOUS-0.51%
15,000 Beta Finance, Inc. ..... 12/08/95 7.050 15,000,000
--------------
TOTAL SHORT-TERM CORPORATE
OBLIGATIONS (cost--$79,598,611).. 79,598,611
--------------
</TABLE>
6
<PAGE>
PaineWebber Retirement Money Fund
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATE RATE VALUE
--------- -------- -------- --------------
<S> <C> <C> <C>
REPURCHASE AGREEMENT--0.33%
$9,910 Repurchase agreement dated
06/30/95, with Daiwa Business
Credit Corp., collateralized by
$9,900,000 U.S. Treasury Notes,
7.500% due 12/31/96; proceeds:
$9,914,996 (cost--$9,910,000)..... 07/03/95 6.050% $ 9,910,000
--------------
</TABLE>
<TABLE>
<S> <C>
TOTAL INVESTMENTS (cost--$2,968,161,437, which approximates
cost for
federal income tax purposes)--100.07%........................ 2,968,161,437
Liabilities in excess of other assets--(0.07)%................ (1,962,340)
--------------
NET ASSETS (applicable to 2,968,329,630 Series C common shares
outstanding
at $1.00 per share)--100.00%................................. $2,966,199,097
==============
</TABLE>
- --------
* Variable rate securities--Maturity date reflects earlier of reset date or
maturity date.
** Yield to maturity for discounted securities.
Weighted average maturity-53 days
See accompanying notes to financial statements
7
<PAGE>
PaineWebber Retirement Money Fund
- --------------------------------------------------------------------------------
Statement of Operations
For the Year Ended June 30, 1995
- --------------------------------------------------------------------------------
<TABLE>
<S> <C>
INVESTMENT INCOME:
Interest........................................................ $140,797,669
------------
EXPENSES:
Investment advisory and administration.......................... 10,973,704
Transfer agency and service fees................................ 5,519,717
Distribution fees............................................... 2,038,602
Reports and notices to shareholders............................. 508,250
Federal and state registration.................................. 262,412
Custody and accounting.......................................... 260,910
Legal and audit................................................. 127,038
Insurance expense............................................... 107,814
Directors' fees................................................. 8,750
Other expenses.................................................. 6,883
------------
19,814,080
------------
NET INVESTMENT INCOME............................................. 120,983,589
NET REALIZED LOSSES FROM INVESTMENT TRANSACTIONS.................. (645,464)
------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS.............. $120,338,125
============
</TABLE>
- --------------------------------------------------------------------------------
Statement of Changes in Net Assets
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
For the For the
Year Ended Year Ended
June 30, 1995 June 30, 1994
-------------- --------------
<S> <C> <C>
FROM OPERATIONS:
Net investment income........................ $ 120,983,589 $ 66,646,259
Net realized losses from investment
transactions................................ (645,464) (1,159,551)
-------------- --------------
Net increase in net assets resulting from
operations.................................. 120,338,125 65,486,708
-------------- --------------
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income........................ (120,983,589) (66,646,259)
-------------- --------------
NET INCREASE IN NET ASSETS FROM CAPITAL SHARE
TRANSACTIONS.................................. 516,609,725 170,554,629
-------------- --------------
Net increase in net assets................... 515,964,261 169,395,078
NET ASSETS:
Beginning of year............................ 2,450,234,836 2,280,839,758
-------------- --------------
End of year.................................. $2,966,199,097 $2,450,234,836
============== ==============
</TABLE>
See accompanying notes to financial statements
8
<PAGE>
PaineWebber Retirement Money Fund
- --------------------------------------------------------------------------------
Notes to Financial Statements
- --------------------------------------------------------------------------------
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
PaineWebber Retirement Money Fund ("Fund") is a portfolio of the PaineWebber
RMA Money Fund, Inc. ("Corporation"). The Corporation is an open-end
diversified management investment company organized under the laws of Maryland
on July 2, 1982 and is registered with the Securities and Exchange Commission
under the Investment Company Act of 1940, as amended ("1940 Act"). The
Corporation currently offers three series of shares: the Fund, the PaineWebber
RMA Money Market Portfolio and the PaineWebber RMA U.S. Government Portfolio.
The financial statements of the PaineWebber RMA Money Market and PaineWebber
RMA U.S. Government Portfolios are not included herein.
Valuation and Accounting for Investments and Investment Income--Investments are
valued at amortized cost which approximates market value. Investment
transactions are accounted for on the trade date. Realized gains and losses
from investment transactions are calculated using the identified cost method.
Interest income is recorded on an accrual basis. Premiums are amortized and
discounts are accreted as adjustments to interest income and the identified
cost of investments.
The ability of the issuers of the debt securities held by the Fund to meet
their obligations may be affected by economic developments, including those
particular to a specific industry or region.
Repurchase Agreements--The Fund'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, the Fund has the right to liquidate
the collateral and apply the proceeds in satisfaction of the obligations. 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.
Federal Tax Status--The Fund intends to distribute all of its taxable 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 Fund intends not to be subject to a federal
excise tax. At June 30, 1995, the Fund had a net capital loss carryforward of
$2,110,755 which is available as a reduction, to the extent provided in the
regulations, of any future net capital gains realized before the end of fiscal
year 2003. To the extent that the losses are used to offset future capital
gains, it is probable that the gains so offset will not be distributed.
Dividends and Distributions--The Fund declares dividends on a daily basis from
net investment income. Dividends from net investment income and distributions
from realized gains from investment transactions have been determined in
accordance with income tax regulations which may differ from generally accepted
accounting principles. These 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. Net capital gains, if any, will be distributed annually, but
the Fund may make more frequent distributions of such gains, if necessary, to
maintain its net asset value per share at $1.00 or to avoid income or excise
taxes.
9
<PAGE>
PaineWebber Retirement Money Fund
- --------------------------------------------------------------------------------
Notes to Financial Statements--(continued)
- --------------------------------------------------------------------------------
INVESTMENT ADVISER AND ADMINISTRATOR
The Corporation's Board of Directors has approved an Investment Advisory and
Administration Contract ("Advisory Contract") with PaineWebber, under which
PaineWebber serves as investment adviser and administrator of the Corporation
and each of its series. In accordance with the Advisory Contract, the 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>
Up to $1 billion.................................................. 0.50%
In excess of $1 billion up to $1.5 billion........................ 0.44%
Over $1.5 billion................................................. 0.36%
</TABLE>
At June 30, 1995, the Fund owed PaineWebber $1,012,291 for investment advisory
and administration fees.
In compliance with applicable state securities laws, PaineWebber will reimburse
the Fund if and to the extent that the aggregate operating expenses in any
fiscal year, exclusive of taxes, distribution fees, interest, brokerage fees
and extraordinary expenses, exceed limitations imposed by various state
regulations. Currently, the most restrictive limitation applicable to the Fund
is 2.5% of the first $30 million of average daily net assets, 2.0% of the next
$70 million and 1.5% of any excess over $100 million. For the year ended June
30, 1995, no reimbursements were required pursuant to the above limitation.
Mitchell Hutchins Asset Management Inc. ("Mitchell Hutchins"), a wholly owned
subsidiary of PaineWebber, serves as sub-adviser and sub-administrator of the
Fund pursuant to a Sub-Advisory and Sub-Administration Contract between
PaineWebber and Mitchell Hutchins. In accordance with that contract,
PaineWebber (not the Fund) pays Mitchell Hutchins a fee, computed daily and
paid monthly, at an annual rate of 20% of the fee paid by the Fund to
PaineWebber under the Advisory Contract.
DISTRIBUTION PLAN
PaineWebber is the distributor of the Fund's shares. Under the plan of
distribution, the Fund is authorized to pay PaineWebber a monthly distribution
fee at the annual rate of up to 0.15% of its average daily net assets.
Currently, PaineWebber is compensated for its services as distributor at the
annual rate of 0.08% of the Fund's average daily net assets. At June 30, 1995,
the Fund owed PaineWebber $192,077 for distribution fees.
TRANSFER AGENCY SERVICE FEES
The Fund pays PaineWebber an annual fee of $4.00 per active PaineWebber
shareholder account, plus certain out-of-pocket expenses, for certain services
not provided by the Fund's transfer agent. For the year ended June 30, 1995,
PaineWebber earned $2,388,513 in shareholder service fees. At June 30, 1995,
the Fund owed PaineWebber $187,095 for such shareholder service fees and
reimbursement of out-of-pocket expenses.
10
<PAGE>
PaineWebber Retirement Money Fund
- --------------------------------------------------------------------------------
Notes to Financial Statements--(concluded)
- --------------------------------------------------------------------------------
OTHER LIABILITIES
At June 30, 1995, the Fund had dividends payable aggregating $3,910,758.
CAPITAL SHARE TRANSACTIONS
There are 10 billion $0.001 par value shares of Series C Common Stock
authorized. Transactions in capital shares, at $1.00 per share, were as
follows:
<TABLE>
<CAPTION>
For The For The
Year Ended Year Ended
June 30, 1995 June 30, 1994
--------------- ---------------
<S> <C> <C>
Shares sold.................................. 9,662,868,008 9,777,321,997
Shares repurchased........................... (9,264,795,651) (9,670,766,883)
Dividends reinvested in additional Fund
shares...................................... 118,537,368 63,999,515
--------------- ---------------
Net increase in shares outstanding........... 516,609,725 170,554,629
=============== ===============
</TABLE>
11
<PAGE>
PaineWebber Retirement Money Fund
- --------------------------------------------------------------------------------
Financial Highlights
- --------------------------------------------------------------------------------
Selected data for a share of Series C Common Stock outstanding throughout each
year is presented below:
<TABLE>
<CAPTION>
For the Years Ended June 30,
--------------------------------------------------------------
1995 1994 1993 1992 1991
---------- ---------- ---------- ---------- ----------
<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.. 0.047 0.028 0.027 0.044 0.068
Dividends from net
investment income..... (0.047) (0.028) (0.027) (0.044) (0.068)
---------- ---------- ---------- ---------- ----------
Net asset value, end of
year.................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========== ========== ========== ========== ==========
Total investment re-
turn(1)............... 4.83 % 2.75 % 2.78 % 4.40 % 6.80 %
========== ========== ========== ========== ==========
RATIOS/SUPPLEMENTAL
DATA:
Net assets, end of pe-
riod (000's).......... $2,966,199 $2,450,235 $2,280,840 $2,163,935 $2,122,973
Ratio of expenses to
average net assets.... 0.78 % 0.77 % 0.79 % 0.79 % 0.79 %
Ratio of net investment
income to average net
assets................ 4.75 % 2.77 % 2.76 % 4.39 % 6.69 %
</TABLE>
- -------
(1) Total investment return is calculated assuming a $1,000 investment on the
first day of each period reported, reinvestment of all dividends at net
asset value on the payable dates, and a sale at net asset value on the last
day of each period reported.
12
<PAGE>
PaineWebber Retirement Money Fund
- --------------------------------------------------------------------------------
Report of Ernst & Young LLP,
Independent Auditors
- --------------------------------------------------------------------------------
Board of Directors and Shareholders
PaineWebber RMA Money Fund, Inc.
We have audited the accompanying statement of net assets of PaineWebber
Retirement Money Fund (one of the portfolios of the PaineWebber RMA Money Fund,
Inc.) as of June 30, 1995, and the related statement of operations for the year
then ended, the statement of changes in net assets for each of the two years in
the period then ended, and the financial highlights for each of the periods
indicated therein. These financial statements and financial highlights are the
responsibility of the Fund's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned at June
30, 1995, 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 the
PaineWebber Retirement Money Fund at June 30, 1995, the results of its
operations for the year then ended, the changes in its net assets for each of
the two years in the period then ended, and the financial highlights for each
of the indicated periods, in conformity with generally accepted accounting
principles.
LOGO
New York, New York
August 17, 1995
13
<PAGE>
PaineWebber Retirement Money Fund
- --------------------------------------------------------------------------------
Tax Information
- --------------------------------------------------------------------------------
We are required by Subchapter M of the Internal Revenue Code of 1986, as
amended, to advise you within 60 days of the Fund's fiscal year end (June 30,
1995) as to the federal tax status of distributions received by shareholders
during such fiscal year. Accordingly, we are advising you that all of the
distributions paid during the fiscal year were derived from net investment
income. This entire amount is taxable as ordinary income, none of which
qualifies for the dividend received deduction available to corporate
shareholders.
Dividends received by 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 the Fund's fiscal year is not the calendar year, another notification
will be sent in respect of calendar 1995. 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 1996. Shareholders are advised to consult their own tax
advisers with respect to the tax consequences of their investment in the Fund.
14
<PAGE>
- ----------------------------------------
BOARD OF DIRECTORS
E. Garrett Bewkes, Jr., Chairman
Meyer Feldberg
George W. Gowen
Frederic V. Malek
Frank P.L. Minard
Judith Davidson Moyers
Thomas F. Murray
- ----------------------------------------
OFFICERS
Margo N. Alexander
President
Victoria E. Schonfeld
Vice President
Dianne E. O'Donnell
Vice President and Secretary
Julian F. Sluyters
Vice President and Treasurer
- ----------------------------------------
ADMINISTRATOR AND DISTRIBUTOR
PaineWebber Incorporated
1285 Avenue of the Americas
New York, New York 10019
- ----------------------------------------
INVESTMENT ADVISERS
PaineWebber Incorporated
1285 Avenue of the Americas
New York, New York 10019
Mitchell Hutchins Asset Management Inc.
1285 Avenue of the Americas
New York, New York 10019
- ----------------------------------------
This report is not to be used in
connection with the offering of shares
of the Fund unless accompanied or
preceded by an effective prospectus.
(C)1995 PaineWebber Incorporated
[LOGO] Recycled
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