<PAGE>
PAINEWEBBER
RMA CALIFORNIA
MUNICIPAL MONEY FUND
RMA NEW YORK
MUNICIPAL MONEY FUND
ANNUAL REPORT
JUNE 30, 1995
PAINEWEBBER
<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 rates 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.
CALIFORNIA MUNICIPAL MARKET
The most significant event in the state of California during the year ended June
30, 1995 was the bankruptcy filing of Orange County. The scope and magnitude of
this event roiled the California municipal market. While the conclusion is still
uncertain, one of the consequences is the credit ratings agencies' downgrade of
the County's general obligation debt. Recently, the County's short-term note
maturities were rolled into a 1996 maturity and were deemed defaulted by
Standard & Poor's ('S&P') and Moody's Investors Service, Inc. Please note, none
of our Funds owned any Orange County general obligation bonds.
NEW YORK MUNICIPAL MARKET
In November 1994, George Pataki was elected Governor and the New York municipal
market responded favorably. Part of the problem facing the new Governor is the
surfacing of a substantial deficit which previously was not known to exist. As a
result, both the Governor's and the electorates' wishes are being tempered by
the reality of fewer resources. The final budget produced two significant
positive results: a reduction in spending on a year-to-year basis, and an
increase in new issues. The New York City budget, however, may have relied too
heavily on one-shot revenue gap closings and, on July 10, 1995, S&P downgraded
the city from A- to BBB+.
<PAGE>
--------------------------------------------------------------------------------
PORTFOLIO REVIEW
PAINEWEBBER RMA CALIFORNIA MUNICIPAL MONEY FUND
PaineWebber RMA California Municipal Money Fund's net assets totalled $330.9
million as of June 30, 1995. The Fund's current yield for the seven-day period
ended June 30, 1995 was 3.28%. The Fund maintained a weighted average maturity
of 58 days as of June 30, 1995. In addition, the Fund does not invest in any
securities subject to the federal alternative minimum tax for individual
taxpayers. Security, credit quality and safety remain our primary concerns.
PAINEWEBBER RMA NEW YORK MUNICIPAL FUND
PaineWebber RMA New York Municipal Fund's net assets totalled $192.8 million as
of June 30, 1995. The Fund's current yield for the seven-day period ended June
30, 1995 was 3.39%. The Fund maintained a weighted average maturity of 48 days
as of June 30, 1995. In addition, the Fund does not invest in any securities
subject to the federal alternative minimum tax for individual taxpayers.
Security, credit quality and safety remain our primary concerns.
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,
FRANK P.L. MINARD GREGORY W. SERBE
Chairman, Managing Director,
Mitchell Hutchins Asset Management Inc. Mitchell Hutchins Asset
Managment Inc.
CYNTHIA N. BOW DEBBIE VERMANN
Portfolio Manager, Portfolio Manager,
PaineWebber California Municipal PaineWebber New York Municipal
Money Fund Money Fund
2
<PAGE>
PAINEWEBBER RMA CALIFORNIA MUNICIPAL MONEY FUND
--------------------------------------------------------------------------------
Statement of Net Assets
June 30, 1995
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
---------- -------------------- --------------- ------------
<S> <C> <C> <C>
INVESTMENTS IN MUNICIPAL SECURITIES - 103.34%
$ 7,200 California State Revenue Anticipation
Warrants...................................... 04/25/96 5.750% $ 7,318,589
4,000 California Educational Facilities Authority
Adjustable Rate Bonds
(Occidental College).......................... 12/01/95 3.800 4,000,000
14,500 California Educational Facilities Authority
Tax Exempt Commercial Paper
(Carnegie Institute of Washington)............ 07/12/95 to 09/14/95 3.700 to 4.100 14,500,000
4,700 California Health Facilities Financing
Authority..................................... A 4.050 4,700,000
10,100 California Health Facilities Financing Authority
(Kaiser Permanente)........................... A 3.900 10,100,000
8,100 California Health Facilities Financing Authority
(Long Beach Memorial)......................... A 3.900 8,100,000
6,400 California Health Facilities Financing Authority
(N. T. Enloe Memorial Hospital)............... A 4.200 6,400,000
5,000 California Health Facilities Financing Authority
(Scripps Memorial Hospital)................... A 3.900 5,000,000
8,480 California Health Facilities Financing Authority
(St. Joseph's Health Systems)................. A 4.100 8,480,000
4,000 California Health Facilities Financing Authority
(Sutter Health)............................... A 4.050 4,000,000
6,000 California Health Facilities Financing Authority
(West Sutter Adventist Health)................ A 3.800 6,000,000
5,200 California Pollution Control Financing Authority
(Exxon Corporation)........................... A 4.100 5,200,000
1,100 California Pollution Control Financing Authority
(Minnesota Mining & Manufacturing)............ A 4.100 1,100,000
16,100 California Pollution Control Financing Authority
Tax Exempt Commercial Paper
(Pacific Gas & Electric Company).............. 07/17/95 to 08/30/95 3.950 to 4.200 16,100,000
3,300 California Pollution Control Financing Authority
Tax Exempt Commercial Paper
(Southern California Edison).................. 09/08/95 to 09/13/95 3.100 to 3.700 3,300,000
11,800 California Pollution Control Financing Authority
(Southern California Edison).................. A 4.500 11,800,000
2,250 California School Cash Reserves Authority
Notes......................................... 07/05/95 4.500 2,250,178
12,700 California State Department of Water............ A 3.950 12,700,000
</TABLE>
3
<PAGE>
PAINEWEBBER RMA CALIFORNIA MUNICIPAL MONEY FUND
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
---------- -------------------- --------------- ------------
<S> <C> <C> <C>
INVESTMENTS IN MUNICIPAL SECURITIES--(CONTINUED)
$10,000 California State Department of Water
Tax Exempt Commercial Paper................... 08/23/95 to 09/27/95 3.300 to 4.100% $ 10,000,000
5,300 California Statewide Community
Development Authority......................... A 3.750 5,300,000
1,800 California Statewide Community
Development Authority
(House Ear Institute)......................... A 4.350 1,800,000
6,000 California Statewide Community
Development Authority
Tax and Revenue Anticipation Notes............ 07/17/95 4.500 6,002,028
1,000 Contra Costa County
Tax and Revenue Anticipation Notes............ 07/03/96 4.500 1,008,150
8,425 Del Mar Race Track Authority
Tax Exempt Commercial Paper................... 08/25/95 to 09/11/95 3.400 to 3.800 8,425,000
11,900 East Bay Municipal Utility District
Tax Exempt Commercial Paper................... 08/23/95 to 09/11/95 3.100 to 3.750 11,900,000
2,555 Grand Terrace Multi-Family Housing Authority.... A 3.850 2,555,000
4,300 Loma Linda Hospital Revenue
(University Medical Center)................... A 4.000 4,300,000
3,500 Los Angeles County Tax and Revenue
Anticipation Notes............................ 07/01/96 4.500 3,523,450
15,246 Los Angeles County Transportation Commission
Tax Exempt Commercial Paper................... 07/21/95 to 09/20/95 3.300 to 4.150 15,246,000
5,500 Los Angeles County Unified School District
Tax and Revenue Anticipation Notes............ 07/10/95 to 07/03/96 4.500 5,534,729
14,550 Los Angeles Department of Water & Power
Tax Exempt Commercial Paper................... 07/27/95 to 09/13/95 3.100 to 3.900 14,550,000
15,700 Los Angeles Wastewater System
Tax Exempt Commercial Paper................... 08/10/95 to 09/11/95 3.300 to 4.150 15,700,000
14,600 Newport Beach Hospital Revenue
(Hoag Memorial Hospital)...................... A 4.250 14,600,000
3,060 Riverside County Certificates of
Participation................................. A 4.100 3,060,000
11,500 Riverside County Transportation
Tax Exempt Commercial Paper................... 07/14/95 to 08/21/95 3.800 to 4.150 11,500,000
13,500 Sacramento Municipal Utility District
Tax Exempt Commercial Paper................... 07/26/95 to 09/18/95 3.300 to 4.150 13,500,000
5,500 San Bernardino County Tax and Revenue
Anticipation Notes............................ 07/05/96 4.500 5,528,930
</TABLE>
4
<PAGE>
PAINEWEBBER RMA CALIFORNIA MUNICIPAL MONEY FUND
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
---------- -------------------- --------------- ------------
<S> <C> <C> <C>
INVESTMENTS IN MUNICIPAL SECURITIES--(CONCLUDED)
$ 2,500 San Diego Gas and Electric
Tax Exempt Commercial Paper................... 09/08/95 3.050% $ 2,500,000
3,000 San Francisco Multi-Family Housing Authority.... A 4.150 3,000,000
4,000 Santa Barbara County Tax and Revenue
Anticipation Notes............................ 07/05/96 4.500 4,027,280
12,460 Santa Clara County Transit District............. A 4.200 12,460,000
4,000 Solano County Tax and Revenue
Anticipation Notes............................ 11/01/95 5.000 4,008,384
8,450 Southern California Metropolitan Water District
Tax Exempt Commercial Paper................... 08/31/95 to 09/11/95 3.100 to 3.700 8,450,000
7,000 Southern California Public Power Revenue........ A 3.900 7,000,000
3,000 Stockton Unified School District
Tax and Revenue Anticipation Notes............ 12/08/95 5.250 3,006,904
1,950 Upland Community Redevelopment
Housing Agency................................ A 4.400 1,950,000
8,000 West Basin Municipal Water District
Tax Exempt Commercial Paper................... 08/25/95 to 09/13/95 2.950 to 4.050 8,000,000
2,500 Yuba County Tax and Revenue
Anticipation Notes............................ 10/26/95 5.000 2,502,131
------------
Total Investments (cost--$341,986,753, which approximates
cost for federal income tax purposes) - 103.34%........... 341,986,753
Liabilities in excess of other assets - (3.34)%............. (11,050,204)
------------
Net Assets (applicable to 331,258,452 shares of beneficial
interest at $1.00 per share) - 100.00%.................... $330,936,549
------------
------------
</TABLE>
------------------
A - Variable Rate Demand Notes are payable on demand. The interest rate shown is
the current rate as of June 30, 1995.
Weighted average maturity - 58 days
See accompanying notes to financial statements
5
<PAGE>
PAINEWEBBER RMA NEW YORK MUNICIPAL MONEY FUND
--------------------------------------------------------------------------------
Statement of Net Assets
June 30, 1995
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
---------- --------------------- ---------------- ------------
<S> <C> <C> <C>
INVESTMENTS IN MUNICIPAL SECURITIES - 102.42%
$ 1,500 New York State Dormitory Authority
(Cornell University)............................ A 4.350% $ 1,500,000
600 New York State Dormitory Authority
(St. Francis Center at the Knowls).............. A 4.100 600,000
3,900 New York State Dormitory Authority
(Marion Osborne)................................ A 4.050 3,900,000
1,000 New York State Dormitory Authority
(Metropolitan Museum of Art).................... 07/01/95 7.625 1,000,000
5,800 New York State Dormitory Authority
(Metropolitan Museum of Art).................... A 3.900 5,800,000
1,500 New York State Dormitory Authority
(New York University)........................... 07/01/96 3.650 1,500,690
12,900 New York State Dormitory Authority
(Oxford University Press)....................... A 5.250 12,900,000
3,947 New York State Dormitory Authority
Tax Exempt Commercial Paper
(Pooled Loan Program)........................... 08/14/95 to 10/13/95 3.500 to 4.000 3,947,000
6,500 New York State Dormitory Authority
Tax Exempt Commercial Paper
(Sloan Kettering Memorial)...................... 07/27/95 to 09/22/95 3.050 to 4.100 6,500,000
9,500 New York State Tax Exempt Commercial Paper........ 07/20/95 to 09/11/95 3.150 to 4.125 9,500,000
9,500 New York State Energy Research & Development
Authority (Central Hudson Gas & Electric)....... A 3.750 9,500,000
2,000 New York State Energy Research & Development
Authority (LILCO) Adjustable Rate Bonds......... 03/01/96 4.700 2,000,000
3,000 New York State Energy Research & Development
Authority (New York State Electric & Gas
Corporation) Adjustable Rate Bonds.............. 10/15/95 to 12/01/95 4.100 to 4.600 3,000,000
2,100 New York State Energy Research & Development
Authority (New York State Electric & Gas
Corporation).................................... A 4.500 2,100,000
3,000 New York State Energy Research & Development
Authority (Niagara Mohawk)...................... A 4.400 to 4.550 3,000,000
5,400 New York State Housing Finance Agency
(Mount Sinai Medical Center Project)............ A 4.000 5,400,000
1,145 New York State Job Development Authority.......... A 3.600 1,145,000
3,400 New York State Local Government
Assistance Corporation.......................... A 3.700 3,400,000
1,200 New York State Medical Facilities Financing Agency
(Buffalo Children's Hospital)................... A 3.850 1,200,000
2,500 New York State Power Adjustable Rate Bonds........ 09/01/95 4.400 2,500,000
</TABLE>
6
<PAGE>
PAINEWEBBER RMA NEW YORK MUNICIPAL MONEY FUND
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
---------- --------------------- ---------------- ------------
<S> <C> <C> <C>
INVESTMENTS IN MUNICIPAL SECURITIES--(CONTINUED)
$ 2,000 Akron Central School District
Tax Anticipation Notes.......................... 09/13/95 5.000% $ 2,000,521
350 Amhurst Central School District
Tax Anticipation Notes.......................... 09/01/95 7.300 351,944
3,600 Babylon General Obligation Bonds.................. A 3.950 3,600,000
700 Bedford Central School District
Tax Anticipation Notes.......................... 11/16/95 3.750 700,623
500 Bronxville Tax Anticipation Notes................. 05/03/96 4.850 501,395
2,000 Buffalo Revenue Anticipation Notes................ 07/12/95 5.000 2,000,472
3,200 Erie County Water Authority....................... A 4.000 3,200,000
3,020 Erie County Revenue Anticipation Notes............ 08/15/95 4.750 3,022,368
900 Greenburgh Central School District
Tax Anticipation Notes.......................... 10/13/95 3.950 900,624
1,600 Half Hollows Central School District
Tax Anticipation Notes.......................... 06/28/96 4.500 1,611,088
700 Hempstead Bond Anticipation Notes................. 08/17/95 4.500 700,776
1,800 Metropolitan Transportation Authority............. A 3.750 1,800,000
1,500 Monroe County Bond Anticipation Notes............. 06/07/96 4.500 1,508,076
900 Monroe Industrial Development Authority
(Electric Navigation/Emerson Electric)
Adjustable Rate Bonds........................... 07/01/95 3.600 900,000
2,500 Nassau County Bond Anticipation Notes............. 08/15/95 4.750 to 5.000 2,502,329
2,000 Nassau County Tax Anticipation Notes.............. 11/15/95 to 03/15/96 4.250 to 5.000 2,007,021
3,000 Nassau County Industrial Development Authority
(Cold Spring Harbor Laboratory Project)......... A 4.400 3,000,000
6,300 New York City..................................... A 4.000 to 4.300 6,300,000
1,000 New York City Board of Cooperative Educational
Services
Tax Anticipation Notes.......................... 06/27/96 4.250 1,004,050
1,900 New York City Housing Development Corp.
(Columbus Gardens Project)...................... A 4.000 1,900,000
1,600 New York City Housing Development Corp.
(East 17th Street Project)...................... A 4.250 1,600,000
1,500 New York City Housing Development Corp.
(James Tower Project)........................... A 3.850 1,500,000
3,100 New York City Housing Development Corp.
(Parkgate Tower Project)........................ A 3.850 3,100,000
800 New York City Housing Development Corp.
(Queenswood Apartments Project)................. A 4.000 800,000
</TABLE>
7
<PAGE>
PAINEWEBBER RMA NEW YORK MUNICIPAL MONEY FUND
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
---------- --------------------- ---------------- ------------
<S> <C> <C> <C>
INVESTMENTS IN MUNICIPAL SECURITIES--(CONTINUED)
$ 8,500 New York City Housing Development Corp.
(Related 96th Street Project)................... A 3.750% $ 8,500,000
800 New York City Industrial Development Agency
(Audobons)...................................... A 4.350 800,000
3,100 New York City Industrial Development Agency
(Calhoun School)................................ A 3.750 3,100,000
1,700 New York City Industrial Development Agency
(JFK Field House)............................... A 4.100 1,700,000
1,800 New York City Industrial Development Agency
(LaGuardia)..................................... A 4.100 1,800,000
9,000 New York City Municipal Finance Authority Water
and Sewer System Tax Exempt Commercial Paper.... 07/21/95 to 08/22/95 3.850 to 4.150 9,000,000
2,300 New York City Trust for Cultural Resources
(Carnegie Hall)................................. A 4.050 2,300,000
900 New York City Trust for Cultural Resources
(Museum of Broadcasting)........................ A 4.000 900,000
2,505 New York City Trust for Cultural Resources
(Museum of Natural History)..................... A 3.950 2,505,000
1,000 New York City Trust for Cultural Resources
(The Jewish Museum)............................. A 4.000 1,000,000
700 New York City Trust for Cultural Resources
(The Guggenheim Museum)......................... A 4.350 700,000
4,800 New York City Tax Exempt Commercial Paper......... 07/25/95 to 08/25/95 3.400 to 4.100 4,800,000
4,100 Niagara Falls Toll Bridge Commission.............. A 4.000 4,100,000
1,800 North Hempstead Solid Waste....................... A 3.750 1,800,000
1,140 Onondaga County Industrial Development Authority
(McLane Co. Project)............................ A 4.750 1,140,000
700 Pelham Union Free School District, Tax
Anticipation Notes.............................. 11/06/95 4.000 701,148
2,500 Schenectady Central School District Bond
Anticipation Notes.............................. 06/27/96 4.250 2,511,901
1,470 Schenectady Industrial Development Agency
(Scotia Industrial Park)........................ A 3.800 1,470,000
1,000 Seneca County Industrial Development Agency
(N.Y. Chiropractic College)..................... A 4.050 1,000,000
800 Smithtown Central School District Bond
Anticipation Notes.............................. 06/27/96 4.250 804,193
</TABLE>
8
<PAGE>
PAINEWEBBER RMA NEW YORK MUNICIPAL MONEY FUND
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
---------- --------------------- ---------------- ------------
<S> <C> <C> <C>
INVESTMENTS IN MUNICIPAL SECURITIES--(CONCLUDED)
$ 2,500 Suffolk County Central School District
Tax Anticipation Notes.......................... 08/15/95 5.250% $ 2,501,647
1,200 Suffolk County Industrial Development Agency
(Coldsprings Harbor)............................ A 4.400 1,200,000
900 Suffolk County Industrial Development Agency
(Phototronix)................................... A 4.100 900,000
2,900 Suffolk County Water Authority.................... A 4.150 2,900,000
2,000 Three Village Central School District
Tax Anticipation Notes.......................... 06/28/96 4.500 2,013,900
1,355 Tompkins County Central School District Bond
Anticipation Notes.............................. 05/31/96 3.940 1,358,454
2,350 Westchester General Obligation Bonds.............. 12/14/95 5.000 2,355,952
2,200 Yonkers Industrial Development Agency Civic
Facility Revenue Bonds (Consumers Union
Facility)....................................... A 3.750 to 3.950 2,200,000
4,500 Yonkers Industrial Development Bonds
(Kawasaki Rolling Stock)........................ 12/01/95 4.600 4,500,000
------------
TOTAL INVESTMENTS (cost--$197,466,172, which approximates
cost for federal income tax purposes) - 102.42%............. 197,466,172
Liabilities in excess of other assets - (2.42)%............... (4,667,402)
------------
NET ASSETS (applicable to 192,932,698 shares of beneficial
interest at $1.00 per share) - 100.00%...................... $192,798,770
------------
------------
</TABLE>
------------------
A - Variable Rate Demand Notes are payable on demand. The interest rate shown is
the current rate as of June 30, 1995.
Weighted average maturity - 48 days
See accompanying notes to financial statements
9
<PAGE>
PAINEWEBBER
--------------------------------------------------------------------------------
Statement of Operations
For the Year Ended June 30, 1995
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RMA RMA
California New York
----------- ----------
<S> <C> <C>
INVESTMENT INCOME:
Interest....................................... $11,412,918 $6,450,070
----------- ----------
EXPENSES:
Investment advisory and administration......... 1,587,620 923,010
Distribution fees.............................. 255,931 147,682
Transfer agency and service fees............... 114,625 73,761
Custody and accounting......................... 94,141 61,048
Legal and audit................................ 82,373 64,599
Federal and state registration fees............ 33,701 7,645
Reports and notices to shareholders............ 27,812 13,984
Trustees' fees................................. 10,625 10,625
Other expenses................................. 13,616 2,722
----------- ----------
2,220,444 1,305,076
LESS:
Fee waivers from adviser....................... -- (50,014)
----------- ----------
Net expenses................................... 2,220,444 1,255,062
----------- ----------
NET INVESTMENT INCOME............................. 9,192,474 5,195,008
NET REALIZED LOSSES FROM INVESTMENT
TRANSACTIONS.................................... (32,808) (4,018)
----------- ----------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS...................................... $ 9,159,666 $5,190,990
----------- ----------
----------- ----------
</TABLE>
--------------------------------------------------------------------------------
Statement of Changes in Net Assets
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
For the Year Ended For the Year Ended
June 30, 1995 June 30, 1994
---------------------------- ----------------------------
RMA RMA RMA RMA
California New York California New York
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
FROM OPERATIONS:
Net investment
income.............. $ 9,192,474 $ 5,195,008 $ 5,462,637 $ 2,613,942
Net realized losses
from investment
transactions........ (32,808) (4,018) (82,458) (51,872)
------------ ------------ ------------ ------------
Net increase in net
assets resulting
from operations..... 9,159,666 5,190,990 5,380,179 2,562,070
------------ ------------ ------------ ------------
DIVIDENDS TO SHAREHOLDERS
FROM:
Net investment
income.............. (9,192,474) (5,195,008) (5,462,637) (2,613,942)
------------ ------------ ------------ ------------
Net increase from
transactions in
shares of beneficial
interest............ 35,786,197 27,691,651 4,898,461 48,559,228
------------ ------------ ------------ ------------
Net increase in net
assets.............. 35,753,389 27,687,633 4,816,003 48,507,356
NET ASSETS:
Beginning of year..... 295,183,160 165,111,137 290,367,157 116,603,781
------------ ------------ ------------ ------------
End of year........... $330,936,549 $192,798,770 $295,183,160 $165,111,137
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
</TABLE>
See accompanying notes to financial statements
10
<PAGE>
PAINEWEBBER
--------------------------------------------------------------------------------
Notes to Financial Statements
--------------------------------------------------------------------------------
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
PaineWebber Managed Municipal Trust ('Trust') was organized under
Massachusetts law by a Declaration of Trust dated November 21, 1986 and is
registered with the Securities and Exchange Commission under the Investment
Company Act of 1940, as amended, as an open-end management investment company.
The Trust currently offers two no-load, non-diversified series of shares:
PaineWebber RMA California Municipal Money Fund ('RMA California') and
PaineWebber RMA New York Municipal Money Fund ('RMA New York') (collectively the
'Funds').
Valuation and Accounting for Investments--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.
Each Fund follows an investment policy of investing primarily in municipal
obligations of one state. Economic changes affecting the state and certain of
its public bodies and municipalities may affect the ability of issuers within
the state to pay interest on, or repay principal of, municipal obligations held
by each Fund.
Federal Tax Status--Each Fund intends to distribute all of its tax-exempt
income and any 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, each Fund intends not to be
subject to a federal excise tax. At June 30, 1995, RMA California and RMA New
York had net capital loss carryforwards of $304,340 and $129,931, respectively.
These loss carryforwards are available as reductions, to the extent provided in
the regulations, of future net realized capital gains, and will expire for RMA
California between June 30, 1997 and June 30, 2003 and for RMA New York between
June 30, 1996 and June 30, 2003. To the extent these losses are used to offset
future capital gains, it is probable that the gains so offset will not be
distributed.
Dividends and distributions--Each 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 'book/tax'
differences are permanent in nature, such amounts are reclassified within the
capital accounts based on their federal tax-basis classification; temporary
differences do not require reclassification. Net capital gains, if any, will be
distributed annually, but each 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.
11
<PAGE>
PAINEWEBBER
--------------------------------------------------------------------------------
Notes to Financial Statements--(continued)
--------------------------------------------------------------------------------
INVESTMENT ADVISER AND ADMINISTRATOR
The Trust's board of trustees has approved an Investment Advisory and
Administration Contract ('Advisory Contract') with PaineWebber, under which
PaineWebber serves as investment adviser and administrator of the Trust and each
of its series. 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>
Up to $300 million.......................................... 0.50%
In excess of $300 million up to $750 million................ 0.44
Over $750 million........................................... 0.36
</TABLE>
At June 30, 1995, RMA California and RMA New York owed PaineWebber $135,832
and $78,030, respectively, for investment advisory and administration fees.
During the period PaineWebber voluntarily waived investment advisory and
administration fees of $50,014 for RMA New York.
In compliance with applicable state securities laws, PaineWebber will
reimburse each Fund if and to the extent that the aggregate operating expenses
in any fiscal year, exclusive of taxes, interest, brokerage fees, distribution
fees and extraordinary expenses, exceed limitations imposed by various state
regulations. Currently, the most restrictive limitation applicable to each 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 Funds pursuant to a sub-advisory and sub-administration contract between
PaineWebber and Mitchell Hutchins. In accordance with that contract, PaineWebber
(not the Funds) pays Mitchell Hutchins a fee, accrued daily and paid monthly, at
an annual rate of 20% of the fee paid by the Funds to PaineWebber under the
Advisory Contract.
DISTRIBUTION PLAN
PaineWebber is the distributor of each Fund's shares. Under the plan of
distribution, each Fund is authorized to pay PaineWebber a monthly service fee
at the annual rate of up to 0.15% of each Fund's average daily net assets for
providing shareholder services and maintaining shareholder accounts. Currently,
PaineWebber is compensated for providing such services at the annual rate of
0.08% of each Fund's average daily net assets. At June 30, 1995, RMA California
and RMA New York owed PaineWebber $22,007 and $12,674, respectively, for such
service fees.
12
<PAGE>
PAINEWEBBER
--------------------------------------------------------------------------------
Notes to Financial Statements--(concluded)
--------------------------------------------------------------------------------
TRANSFER AGENCY SERVICE FEES
Each 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 Funds' transfer agent. For the year ended June 30, 1995,
PaineWebber earned $43,682 and $30,749 in transfer agency service fees from RMA
California and RMA New York, respectively. At June 30, 1995, RMA California and
RMA New York owed PaineWebber $3,603 and $5,116, respectively, for such transfer
agency service fees and reimbursement of out-of-pocket expenses.
OTHER LIABILITIES
At June 30, 1995, the amounts payable for investments purchased and
dividends payable aggregated $18,622,325 and $267,180, respectively, for RMA
California, and $6,030,809 and $162,502, respectively, for RMA New York.
SHARES OF BENEFICIAL INTEREST
There is an unlimited amount of $0.001 par value shares of beneficial
interest authorized. Transactions in shares of beneficial interest, at $1.00 per
share, were as follows:
<TABLE>
<CAPTION>
For the Year Ended June 30, 1995 For the Year Ended June 30, 1994
---------------------------------- --------------------------------
RMA California RMA New York RMA California RMA New York
--------------- --------------- --------------- -------------
<S> <C> <C> <C> <C>
Shares sold....................... 1,651,147,178 1,109,690,314 1,393,437,217 842,419,020
Shares repurchased................ (1,624,312,810) (1,087,057,232) (1,393,834,235) (796,351,108)
Dividends reinvested in additional
Fund shares..................... 8,951,829 5,058,569 5,295,479 2,491,316
--------------- --------------- --------------- -------------
Net increase in shares
outstanding..................... 35,786,197 27,691,651 4,898,461 48,559,228
--------------- --------------- --------------- -------------
--------------- --------------- --------------- -------------
</TABLE>
13
<PAGE>
PAINEWEBBER RMA CALIFORNIA MUNICIPAL MONEY FUND
--------------------------------------------------------------------------------
Financial Highlights
--------------------------------------------------------------------------------
Selected data for a share of beneficial interest outstanding throughout
each period is presented below:
<TABLE>
<CAPTION>
For the
For the Years Ended Seven For the Years Ended
June 30, Months Ended November 30,
-------------------------------- June 30, --------------------
1995 1994 1993 1992 1991 1990
-------- -------- -------- ------------ -------- --------
<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.................... 0.029 0.018 0.019 0.016 0.038 0.050
Dividends from net investment income..... (0.029) (0.018) (0.019) (0.016) (0.038) (0.050)
-------- -------- -------- ------------ -------- --------
Net asset value, end of period........... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- ------------ -------- --------
-------- -------- -------- ------------ -------- --------
Total investment return (1).............. 2.91% 1.78% 1.88% 1.61% 3.81% 4.95%
-------- -------- -------- ------------ -------- --------
-------- -------- -------- ------------ -------- --------
Ratios/Supplemental Data:
Net assets, end of period (000's)...... $330,937 $295,183 $290,367 $259,183 $261,902 $300,516
Ratio of expenses to average
net assets........................... 0.69% 0.69% 0.72% 0.69%* 0.75% 0.70%
Ratio of net investment income to
average net assets................... 2.87% 1.79% 1.86% 2.75%* 3.83% 4.96%
</TABLE>
---------------
* Annualized
(1) Total investment return is calculated assuming a $1,000 investment on the
first day of each period reported, reinvestment of all dividends 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.
14
<PAGE>
PAINEWEBBER RMA NEW YORK MUNICIPAL MONEY FUND
--------------------------------------------------------------------------------
Financial Highlights
--------------------------------------------------------------------------------
Selected data for a share of beneficial interest outstanding throughout
each period is presented below:
<TABLE>
<CAPTION>
For the
For the Years Ended Seven For the Years Ended
June 30, Months Ended November 30,
-------------------------------- June 30, --------------------
1995 1994 1993 1992 1991 1990
-------- -------- -------- ------------ -------- --------
<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.................... 0.028 0.017 0.018 0.016 0.037 0.049
Dividends from net investment income..... (0.028) (0.017) (0.018) (0.016) (0.037) (0.049)
-------- -------- -------- ------------ -------- --------
Net asset value, end of period........... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- ------------ -------- --------
-------- -------- -------- ------------ -------- --------
Total investment return (1).............. 2.81% 1.70% 1.82% 1.62% 3.74% 4.92%
-------- -------- -------- ------------ -------- --------
-------- -------- -------- ------------ -------- --------
Ratios/Supplemental Data:
Net assets, end of period (000's)...... $192,799 $165,111 $116,604 $129,687 $121,347 $113,885
Ratio of expenses to average net
assets:
Before waiver from adviser........... 0.71% 0.75% 0.79% 0.73%* 0.89% 0.85%
After waiver from adviser............ 0.68% 0.68% 0.68% 0.68%* 0.68% 0.64%
Ratio of net investment income to
average net assets:
Before waiver from adviser........... 2.78% 1.67% 1.70% 2.54%* 3.52% 4.67%
After waiver from adviser............ 2.81% 1.74% 1.81% 2.59%* 3.73% 4.88%
</TABLE>
---------------
* Annualized
(1) Total investment return is calculated assuming a $1,000 investment on the
first day of each period reported, reinvestment of all dividends 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.
15
<PAGE>
PAINEWEBBER
--------------------------------------------------------------------------------
Report of Ernst & Young LLP, Independent Auditors
--------------------------------------------------------------------------------
The Board of Trustees and Shareholders
PAINEWEBBER MANAGED MUNICIPAL TRUST
We have audited the accompanying statement of net assets of PaineWebber Managed
Municipal Trust (comprising, respectively, the PaineWebber RMA California
Municipal Money Fund and PaineWebber RMA New York Municipal Money Fund (the
'Funds')) 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 indicted 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 investments owned at June
30, 1995 by correspondence with the custodian and brokers. 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 each
of the respective Funds constituting the PaineWebber Managed Municipal Trust at
June 30, 1995, 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 indicated periods, in conformity
with generally accepted accounting principles.
New York, New York
August 17, 1995
16
<PAGE>
PAINEWEBBER
--------------------------------------------------------------------------------
Tax Information
--------------------------------------------------------------------------------
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,
1995) 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 fiscal year by RMA California and RMA New York were federally
exempt interest dividends. Since each respective Fund did not invest in any
security which paid interest subject to the federal alternative minimum tax for
individual taxpayers during its fiscal year, none of the dividends paid by each
Fund were subject to such tax. Also, all dividends paid by RMA California were
exempt from California personal income tax and all dividends paid by RMA New
York were exempt from New York State and New York City personal income tax.
Because each Fund's fiscal year is not the calendar year, another notification
will be sent in respect of calendar year 1995. The second notification, which
will reflect any amounts 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 each
respective Fund.
17
<PAGE>
PaineWebber
RMA
California
Municipal
Money Fund
o California double tax-free income
o High liquidity
PaineWebber
RMA
New York
Municipal
Money Fund
o New York State double tax-free income
o New York City triple tax-free income
o High liquidity
---------------------------------------------------------
TRUSTEES
E. Garrett Bewkes, Jr., Chairman
Meyer Feldberg
George W. Gowen
Frederic V. Malek
Frank P. L. Minard
Judith Davidson Moyers
Thomas F. Murray
---------------------------------------------------------
PRINCIPAL OFFICERS
Margo N. Alexander
President
Victoria E. Schonfeld
Vice President
Dianne E. O'Donnell
Vice President and Secretary
Greg W. Serbe
Vice President
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
Funds unless accompanied or preceded by an effective prospectus.
------------------------
A prospectus containing more complete information can be obtained from a
PaineWebber investment executive or correspondent firm. Read the prospectus
carefully before investing.
(Copyright)1995 PaineWebber Incorporated
Recycled
Paper
