<PAGE>
PAINEWEBBER
RMA CALIFORNIA
MUNICIPAL MONEY FUND
RMA NEW YORK
MUNICIPAL MONEY FUND
SEMI-ANNUAL REPORT
DECEMBER 31, 1995
[LOGO]
PAINEWEBBER
<PAGE>
- --------------------------------------------------------------------------------
February 15, 1996
Dear Shareholder,
It is widely recognized that the Federal Reserve Board achieved its goal of
a 'soft landing' for the economy in 1995. In an effort to slow the pace of
economic growth, the Federal Reserve Board raised short-term interest rates
seven times between February 1994 and February 1995. However, on July 6, 1995,
the Federal Reserve Board cut the benchmark Federal Funds rate by 0.25%. This
decrease, the first in nearly three years, signaled that the Federal Reserve
Board believed that inflationary pressures had eased enough to accommodate an
adjustment in monetary policy. Citing low inflation, the Federal Reserve Board
trimmed short-term interest rates by another 0.25% on December 19, 1995 and
January 31, 1996, bringing the Federal Funds rate down to 5.25%.
Although the pace of economic growth was lackluster during the year ended
December 31, 1995, the economic climate was favorable for investing. Stocks
achieved record-breaking highs and bonds far outperformed their historical
averages. The stock market, as measured by the Standard & Poor's 500 Index,
advanced 37.5% in 1995. The Dow Jones Industrial Average topped the 4,000 point
level in March and the 5,000 point level in November and posted its fourth best
advance since World War II. The bond market also rallied strongly during 1995,
as a declining interest rate environment prevailed for most of the year. Soaring
bond prices gave fixed income investors their third best year since the 1920s
and caused intermediate- and long-term interest rates to fall to their lowest
levels in two years. Rates on long-term U.S. Treasury bonds, for example,
declined nearly two full percentage points. Generally, as yields move lower,
bond prices increase. Coming after 1994, when the bond market had one of its
worst years on record and the Standard & Poor's 500 Index gained just 1.3%, 1995
was a strongly positive investment environment for most domestic investors.
CALIFORNIA MUNICIPAL MARKET
After three years of annual ratings downgrades, the State of California
appears to have achieved stability. The major rating agencies have all affirmed
its single A status, lending credibility to its recovery. While the recession
has caused a reorganization in the States' economic structure, California has
seen its way to stronger exports and a reversal in job losses--resulting in a
compelling rate of tax revenue growth. This brighter economic picture provides
enormous relief after an unforgiving recession in the State. However, long-term
structural pressures and budgetary constraints continue to command our
attention.
NEW YORK MUNICIPAL MARKET
Under its new budget, New York State will actually reduce spending on a
year-over-year basis. In addition, proposed bond issuance reform is now
underway, which could result in issuing bonds via a legislative approach as well
as consolidating most agency borrowing under one agency, namely the Dormitory
Authority. The New York City budget 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+. Though the prices of New York City bonds have declined, most bond analysts
do not perceive a significant risk of default in the City's obligations.
<PAGE>
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PORTFOLIO REVIEW
PAINEWEBBER RMA CALIFORNIA MUNICIPAL MONEY FUND
PaineWebber RMA California Municipal Money Fund's net assets totalled
$473.4 million as of December 31, 1995. The Fund's current yield for the
seven-day period ended December 31, 1995 was 3.46%. The Fund maintained a
weighted average maturity of 53 days as of December 31, 1995. In addition, the
Fund did 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 MONEY FUND
PaineWebber RMA New York Municipal Fund's net assets totalled $254.0
million as of December 31, 1995. The Fund's current yield for the seven-day
period ended December 31, 1995 was 3.73%. The Fund maintained a weighted average
maturity of 50 days as of December 31, 1995. In addition, the Fund did not
invest in any security 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,
/s/ Cynthia N. Bow /s/ Debbie Vermann
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
December 31, 1995 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
- --------- -------------------- -------------- ------------
<S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES--51.57%
$ 9,200 California State Revenue Anticipation Warrants.............. 04/25/96 5.750% $ 9,258,250
6,700 California State Department of Water........................ A 4.800 6,700,000
4,000 California Educational Facilities Authority
(Occidental College Project).............................. 06/01/96 3.550 4,000,000
5,055 California Educational Facilities Authority
(Stanford University Series).............................. A 4.750 5,055,000
4,500 California Health Facilities Financing Authority............ A 4.950 4,500,000
14,500 California Health Facilities Financing Authority
(Kaiser Permanente)....................................... A 4.900 14,500,000
8,100 California Health Facilities Financing Authority
(Long Beach Memorial)..................................... A 4.900 8,100,000
7,060 California Health Facilities Financing Authority
(Memorial Health Services)................................ A 4.900 7,060,000
1,100 California Pollution Control Financing Authority
(Minnesota Mining & Manufacturing)........................ A 5.050 1,100,000
6,400 California Health Facilities Financing Authority
(N.T. Enloe Memorial Hospital)............................ A 5.100 6,400,000
5,000 California Health Facilities Financing Authority
(Scripps Memorial Hospital)............................... A 4.750 5,000,000
5,600 California Health Facilities Financing Authority
(St Joseph's Health Systems).............................. A 5.900 5,600,000
700 California Health Facilities Financing Authority
(Sutter Health)........................................... A 5.850 700,000
6,000 California Health Facilities Financing Authority
(West Sutter Adventist Health)............................ A 4.850 6,000,000
18,800 California Pollution Control Financing Authority
(Southern California Edison).............................. A 5.400 18,800,000
8,000 California Statewide Communities Development Authority...... A 4.900 8,000,000
1,875 Contra Costa County
Tax and Revenue Anticipation Notes........................ 07/03/96 4.500 1,882,724
1,000 Foothill / Eastern Transportation Corridor Agency........... A 4.800 1,000,000
2,545 Grand Terrace Multi-Family Housing Authority................ A 5.200 2,545,000
2,400 Indio California Multi-Family Housing Authority
(Smoketree Apartments).................................... A 5.550 2,400,000
5,100 Lancaster California Multi-Family Housing Authority
(Woodcreek Garden Apartments)............................. A 5.100 5,100,000
17,500 Los Angeles County
Tax and Revenue Anticipation Notes........................ 07/01/96 4.500 17,560,418
2,000 Los Angeles County Unified School District
Tax and Revenue Anticipation Notes........................ 07/03/96 4.500 2,007,754
</TABLE>
3
<PAGE>
PAINEWEBBER RMA CALIFORNIA MUNICIPAL MONEY FUND
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
- --------- -------------------- -------------- ------------
<S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES--(CONCLUDED)
$ 4,525 Metropolitan Water District of Southern California
Tax and Revenue Anticipation Notes........................ 06/01/96 to 07/01/96 6.750 to 7.500% $ 4,635,214
25,050 Newport Beach Hospital Revenue
(Hoag Memorial Hospital).................................. A 5.900 25,050,000
4,260 Riverside County Certificates of Participation.............. A 4.800 4,260,000
2,020 Sacramento County California
Tax and Revenue Anticipation Notes........................ 10/04/96 4.750 2,037,525
8,000 San Bernardino County
Tax and Revenue Anticipation Notes........................ 07/05/96 4.500 8,021,502
3,275 San Diego County
Tax and Revenue Anticipation Notes........................ 09/30/96 4.500 3,297,675
8,600 San Francisco Multi-Family Housing Authority
(Bayside Village)......................................... A 5.000 8,600,000
2,125 San Francisco Multi-Family Housing Authority
(Rincon Center)........................................... A 5.150 2,125,000
2,300 San Francisco Multi-Family Housing Authority
(South Beach Harbor)...................................... A 4.875 2,300,000
12,000 Santa Barbara County
Tax and Revenue Anticipation Notes........................ 07/05/96 4.500 12,040,818
15,460 Santa Clara County Transit District......................... A 5.850 15,460,000
1,700 Santa Clara Electric........................................ A 4.900 1,700,000
8,300 Southern California Public Power Revenue.................... A 4.750 8,300,000
3,050 Upland Community Redevelopment Housing Agency............... A 5.550 3,050,000
------------
Total Municipal Bonds and Notes (cost - $244,146,880).................. 244,146,880
------------
TAX-EXEMPT COMMERCIAL PAPER--47.94%
5,600 California State Department of Water........................ 03/21/96 3.550 5,600,000
13,500 California Educational Facilities Authority Revenue
(Carnegie Institute of Washington)........................ 01/12/96 to 04/12/96 3.450 to 3.750 13,500,000
34,755 California Pollution Control Financing Authority
(Pacific Gas & Electric Company).......................... 01/08/96 to 03/29/96 3.400 to 3.950 34,755,000
3,500 California Pollution Control Financing Authority
(Southern California Edison).............................. 01/22/96 to 02/07/96 3.500 to 3.700 3,500,000
3,500 Anaheim Electric Authority.................................. 02/27/96 3.600 3,500,000
21,425 Del Mar Race Track Authority................................ 02/01/96 to 03/25/96 3.400 to 3.800 21,425,000
7,100 East Bay Municipal Utility District......................... 02/13/96 to 02/28/96 3.400 to 3.800 7,100,000
29,181 Los Angeles County Transportation Commission................ 01/19/96 to 03/28/96 3.300 to 3.700 29,181,000
18,350 Los Angeles Department of Water & Power..................... 02/09/96 to 03/15/96 3.400 to 3.700 18,350,000
14,300 Los Angeles Wastewater System............................... 02/08/96 to 03/28/96 3.400 to 3.700 14,300,000
22,750 Riverside County Transportation............................. 01/22/96 to 03/12/96 3.400 to 3.850 22,750,000
18,300 Sacramento Municipal Utility District....................... 02/08/96 to 04/11/96 3.300 to 3.550 18,300,000
</TABLE>
4
<PAGE>
PAINEWEBBER RMA CALIFORNIA MUNICIPAL MONEY FUND
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
- --------- -------------------- -------------- ------------
<S> <C> <C> <C>
TAX-EXEMPT COMMERCIAL PAPER--(CONCLUDED)
$ 4,000 San Diego Gas and Electric.................................. 02/14/96 to 02/20/96 3.350 to 3.600% $ 4,000,000
1,400 San Diego Water Authority................................... 01/19/96 3.350 1,400,000
19,800 Southern California Metropolitan Water District............. 02/09/96 to 02/23/96 3.400 to 3.800 19,800,000
9,500 West Basin Municipal Water District......................... 01/22/96 to 02/08/96 3.500 to 3.700 9,500,000
------------
Total Tax-Exempt Commercial Paper (cost - $226,961,000)................ 226,961,000
------------
TOTAL INVESTMENTS (cost $471,107,880 which approximates cost
for federal income tax purposes)--99.51%............................. 471,107,880
Other assets in excess of liabilities--0.49%........................... 2,324,559
------------
NET ASSETS (applicable to 473,956,735 shares of beneficial interest
at $1.00 per share)--100.00%......................................... $473,432,439
------------
------------
</TABLE>
- ------------------
A - Variable Rate Demand Notes are payable on demand. The interest rates are the
current rates as of December 31, 1995 and reset periodically.
Weighted average maturity--53 days
See accompanying notes to financial statements
5
<PAGE>
PAINEWEBBER RMA NEW YORK MUNICIPAL MONEY FUND
- --------------------------------------------------------------------------------
Statement of Net Assets
December 31, 1995 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
- --------- -------------------- -------------- ------------
<S> <C> <C> <C>
MUNICIPAL BONDS & NOTES--88.83%
$ 1,500 New York State Dormitory Authority
(Beverwyck Incorporated).................................. A 5.050% $ 1,500,000
1,000 New York State Dormitory Authority
(Columbia University) (Pre-refunded with U.S. Government
Securities to 07/01/96@ $102)............................. 07/01/96 7.000 1,034,415
12,300 New York State Dormitory Authority
(Cornell University)...................................... A 5.900 12,300,000
3,900 New York State Dormitory Authority
(Marion Osborne).......................................... A 5.050 3,900,000
2,700 New York State Dormitory Authority
(Masonic Hall Asylum)..................................... A 4.900 2,700,000
7,100 New York State Dormitory Authority
(Metropolitan Museum of Art).............................. A 4.650 7,100,000
9,900 New York State Dormitory Authority
(New York Public Library)................................. A 4.700 9,900,000
10,500 New York State Energy Research & Development Authority
(Central Hudson Gas & Electric)........................... A 4.900 to 5.000 10,500,000
5,500 New York State Energy Research & Development Authority
(LILCO) Adjustable Rate Bonds............................. 03/01/96 4.700 5,500,000
3,600 New York State Energy Research & Development Authority (New
York State Electric & Gas Corporation) Adjustable Rate
Bonds..................................................... 03/01/96 5.300 3,600,000
3,000 New York State Energy Research & Development
Authority (Rochester Gas & Electric Corporation)
Adjustable Rate Bonds..................................... 11/15/96 3.750 3,000,000
5,200 New York State Housing Finance Agency
(Mount Sinai Medical Center Project)...................... A 4.700 5,200,000
1,000 New York State Housing Finance Agency
(Sloan Kettering Memorial)................................ A 5.100 1,000,000
1,145 New York State Job Development Authority.................... A 4.300 1,145,000
9,450 New York State Local Government Assistance Corporation...... A 4.850 to 4.950 9,450,000
1,100 New York State Medical Facilities Financing Agency (Buffalo
Children's Hospital)...................................... A 5.000 1,100,000
4,000 New York State Power Adjustable Rate Bonds.................. 03/01/96 3.850 4,000,000
3,600 Babylon General Obligation Bonds............................ A 4.900 3,600,000
500 Bronxville Tax Anticipation Notes........................... 05/03/96 4.850 500,559
1,250 Buffalo Revenue Anticipation Notes.......................... 07/16/96 4.200 1,255,280
3,350 Deer Park Central School District
Tax Anticipation Notes.................................... 06/27/96 4.250 3,357,640
1,000 Dutchess County Bond Anticipation Notes..................... 08/02/96 4.250 1,004,862
</TABLE>
6
<PAGE>
PAINEWEBBER RMA NEW YORK MUNICIPAL MONEY FUND
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
- --------- -------------------- -------------- ------------
<S> <C> <C> <C>
MUNICIPAL BONDS & NOTES--(CONTINUED)
$ 3,200 Erie County Water Authority................................. A 5.100% $ 3,200,000
1,100 Erie County Revenue Anticipation Notes...................... 09/20/96 4.500 1,104,946
2,000 Half Hollows Central School District
Tax Anticipation Notes.................................... 06/28/96 4.500 2,007,068
7,100 Metropolitan Transportation Authority....................... A 5.000 7,100,000
3,000 Monroe Industrial Development Authority..................... 06/07/96 4.500 3,007,462
900 Monroe Industrial Development Authority
(Electric Navigation/Emerson Electric)
Adjustable Rate Bonds..................................... 07/01/96 3.800 900,000
1,000 Monroe Industrial Development Authority
(Rochester District Heating)
Adjustable Rate Bonds..................................... A 4.150 1,000,000
7,910 Nassau County Bond Anticipation Notes....................... 03/15/96 to 08/15/96 4.250 to 4.375 7,933,929
1,500 Nassau County Tax Anticipation Notes........................ 04/15/96 4.500 1,502,526
3,400 New York City............................................... A 4.500 to 5.100 3,404,579
1,500 New York City Board of Cooperative Education
Services Tax Anticipation Notes........................... 06/27/96 4.250 1,503,020
3,900 New York City Housing Development Corp.
(Columbus Gardens Project)................................ A 4.750 3,900,000
1,500 New York City Housing Development Corp.
(James Tower Project)..................................... A 5.100 1,500,000
2,760 New York City Housing Development Corp.
(Parkgate Tower Project).................................. A 5.100 2,760,000
10,200 New York City Housing Development Corp.
(Related 96th Street Project)............................. A 5.100 10,200,000
3,100 New York City Industrial Development Agency
(Calhoun School).......................................... A 4.850 3,100,000
2,700 New York City Industrial Development Agency
(JFK Field House)......................................... A 5.150 2,700,000
7,200 New York City Industrial Development Agency
(LaGuardia)............................................... A 5.150 7,200,000
1,200 New York City Industrial Development Agency
(Saint Lawrence).......................................... A 5.900 1,200,000
1,500 New York City Industrial Development Agency
(Stroheim & Romann)....................................... A 5.150 1,500,000
2,000 New York City Industrial Development Agency
(Syracuse University)..................................... A 5.900 2,000,000
5,500 New York City Tax Anticipation Notes........................ 02/15/96 4.500 5,505,318
4,800 New York City Trust for Cultural Resources
(Carnegie Hall)........................................... A 5.550 4,800,000
</TABLE>
7
<PAGE>
PAINEWEBBER RMA NEW YORK MUNICIPAL MONEY FUND
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
- --------- -------------------- -------------- ------------
<S> <C> <C> <C>
MUNICIPAL BONDS & NOTES--(CONCLUDED)
$ 900 New York City Trust for Cultural Resources
(Museum of Broadcasting).................................. A 5.250% $ 900,000
1,700 New York City Trust for Cultural Resources
(Museum of Natural History)............................... A 4.900 1,700,000
900 New York City Trust for Cultural Resources
(The Jewish Museum)....................................... A 5.250 900,000
9,900 New York City Trust for Cultural Resources
(The Guggenheim Museum)................................... A 5.900 9,900,000
4,100 Niagara Falls Toll Bridge Commission........................ A 5.100 4,100,000
3,600 North Hempstead Solid Waste................................. A 4.850 3,600,000
3,000 Northport East Union Free School District
Tax Anticipation Notes.................................... 06/28/96 4.125 3,004,287
4,240 Onondaga County Industrial Development Authority
(McLane Co. Project)...................................... A 5.400 to 5.500 4,240,000
2,200 Patchogue Medford Union Free School District
Tax Anticipation Notes.................................... 06/27/96 4.500 2,205,139
2,000 Putnam County Tax Anticipation Notes........................ 06/03/96 4.250 2,005,777
2,700 Rochester County Bond Anticipation Notes.................... 10/31/96 4.500 2,718,047
4,000 Schenectady Central School District
Bond Anticipation Notes................................... 06/27/96 4.250 4,009,342
1,000 Seneca County Industrial Development Agency
(N.Y. Chiropractic College)............................... A 4.950 1,000,000
1,500 South Huntington Union Free School District
Bond Anticipation Notes................................... 06/28/96 4.500 1,505,659
1,200 Suffolk County New York Industrial Development
Agency (Coldsprings Harbor)............................... A 6.000 1,200,000
2,900 Suffolk County Water Authority.............................. A 5.100 2,900,000
2,000 Three Village Central School District
Tax Anticipation Notes.................................... 06/28/96 4.500 2,007,068
1,355 Tompkins County Central School District
Bond Anticipation Notes................................... 05/31/96 3.940 1,356,557
1,500 Triborough Bridge and Tunnel Authority
Revenue Bonds............................................. A 8.375 1,500,000
3,200 Yonkers Industrial Development Agency
Civic Facility Revenue Bonds
(Consumers Union Facility)................................ A 4.950 to 5.300 3,200,000
------------
Total Municipal Bonds & Notes (cost--$225,628,480)..................... 225,628,480
------------
TAX EXEMPT COMMERCIAL PAPER--11.60%
6,000 New York State.............................................. 02/01/96 to 03/07/96 3.400 to 3.750 6,000,000
6,759 New York State Dormitory Authority
(Pooled Loan Program)..................................... 01/29/96 to 04/09/96 3.600 to 3.900 6,759,000
</TABLE>
8
<PAGE>
PAINEWEBBER RMA NEW YORK MUNICIPAL MONEY FUND
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
- --------- -------------------- -------------- ------------
<S> <C> <C> <C>
TAX EXEMPT COMMERCIAL PAPER--(CONCLUDED)
$4,600 New York State Dormitory Authority
(Sloan Kettering Memorial)................................ 02/12/96 to 03/22/96 3.450 to 3.600% $ 4,600,000
2,600 New York State Power Authority.............................. 01/11/96 to 04/12/96 3.500 to 3.600 2,600,000
4,200 New York City............................................... 01/30/96 to 04/25/96 3.350 to 3.750 4,200,000
2,800 New York City Municipal Finance Authority
Water and Sewer System.................................... 01/23/96 to 02/26/96 3.400 to 3.750 2,800,000
2,500 Port Authority of New York and New Jersey................... 03/06/96 3.600 2,500,000
------------
Total Tax Exempt Commercial Paper (cost--$29,459,000).................. 29,459,000
------------
TOTAL INVESTMENTS (cost--$255,087,480, which approximates cost for
federal income tax purposes) - 100.43%............................... 255,087,480
Liabilities in excess of other assets - (0.43)%........................ (1,079,895)
------------
NET ASSETS (applicable to 254,272,627 shares of beneficial
interest at $1.00 per share) - 100.00%............................... $254,007,585
------------
------------
</TABLE>
- ------------------
A - Variable Rate Demand Notes are payable on demand. The interest rates are the
current rates as of December 31, 1995 and reset periodically.
Weighted average maturity - 50 days
See accompanying notes to financial statements
9
<PAGE>
PAINEWEBBER MANAGED MUNICIPAL TRUST
- --------------------------------------------------------------------------------
Statement of Operations
For the Six Months Ended December 31, 1995 (unaudited)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RMA RMA
California New York
---------- ----------
<S> <C> <C>
INVESTMENT INCOME:
Interest....................................... $6,700,416 $4,231,020
---------- ----------
EXPENSES:
Investment advisory and administration......... 891,723 571,863
Distribution fees.............................. 145,116 91,498
Fund acquisition expense....................... 114,000 105,325
Transfer agency and service fees............... 72,923 37,657
Custody and accounting......................... 55,177 28,809
Legal and audit................................ 45,527 30,743
Federal and state registration................. 32,758 8,966
Reports and notices to shareholders............ 11,979 5,731
Trustees' fees................................. 5,313 5,313
Other expenses................................. 9,170 1,769
---------- ----------
1,383,686 887,674
LESS:
Fee waivers from adviser....................... -- (4,774)
---------- ----------
Net expenses................................... 1,383,686 882,900
---------- ----------
NET INVESTMENT INCOME............................. 5,316,730 3,348,120
NET REALIZED LOSSES FROM INVESTMENT
TRANSACTIONS.................................... (5,813) (974)
---------- ----------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS...................................... $5,310,917 $3,347,146
---------- ----------
---------- ----------
</TABLE>
- --------------------------------------------------------------------------------
Statement of Changes in Net Assets
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
For the Six Months Ended
December 31, 1995 For the Year Ended
(unaudited) June 30, 1995
---------------------------- ----------------------------
RMA RMA RMA RMA
California New York California New York
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
FROM OPERATIONS:
Net investment income........... $ 5,316,730 $ 3,348,120 $ 9,192,474 $ 5,195,008
Net realized losses from
investment transactions....... (5,813) (974) (32,808) (4,018)
------------ ------------ ------------ ------------
Net increase in net assets
resulting from operations..... 5,310,917 3,347,146 9,159,666 5,190,990
------------ ------------ ------------ ------------
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income........... (5,430,730) (3,453,445) (9,192,474) (5,195,008)
------------ ------------ ------------ ------------
NET INCREASE FROM TRANSACTIONS IN
SHARES OF BENEFICIAL INTEREST.... 142,615,703 61,315,114 35,786,197 27,691,651
------------ ------------ ------------ ------------
Net increase in net assets...... 142,495,890 61,208,815 35,753,389 27,687,633
NET ASSETS:
Beginning of period............. 330,936,549 192,798,770 295,183,160 165,111,137
------------ ------------ ------------ ------------
End of period................... $473,432,439 $254,007,585 $330,936,549 $192,798,770
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
</TABLE>
See accompanying notes to financial statements
10
<PAGE>
PAINEWEBBER MANAGED MUNICIPAL TRUST
- --------------------------------------------------------------------------------
Notes to Financial Statements--(Unaudited)
- --------------------------------------------------------------------------------
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.
Federal Taxes--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 MANAGED MUNICIPAL TRUST
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
CONCENTRATION OF RISK
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.
ACQUISITIONS
Acquisition of PaineWebber/Kidder, Peabody California Tax-Exempt Money Fund
('PW/KP California Tax-Exempt Money Fund')--Effective December 11, 1995, RMA
California acquired all the net assets of PW/KP California Tax-Exempt Money Fund
pursuant to a plan of reorganization approved by PW/KP California Tax-Exempt
Money Fund shareholders on December 4, 1995. The acquisition was accomplished by
a tax-free exchange of 120,122,110 shares of RMA California for 120,122,110
shares of PW/KP California Tax-Exempt Money Fund outstanding on December 11,
1995. PW/KP California Tax-Exempt Money Fund's net assets at that date, valued
at $120,039,530, including accumulated net realized losses of $82,580, were
combined with those of RMA California.
Acquisition of PaineWebber/Kidder, Peabody Municipal Money Market
Series--New York Series ('PW/KP Municipal Money Market Series--New York
Series')--Effective November 13, 1995, RMA New York acquired all the net assets
of PW/KP Municipal Money Market Series--New York Series pursuant to a plan of
reorganization approved by PW/KP Municipal Money Market Series--New York Series
shareholders on November 8, 1995. The acquisition was accomplished by a tax-free
exchange of 38,947,877 shares of RMA New York for 38,947,877 shares of PW/KP
Municipal Money Market Series--New York Series outstanding on November 13, 1995.
PW/KP Municipal Money Market Series--New York Series' net assets at that date,
valued at $38,923,062, including accumulated net realized losses of $5,141, were
combined with those of RMA New York.
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>
12
<PAGE>
PAINEWEBBER MANAGED MUNICIPAL TRUST
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
At December 31, 1995, RMA California and RMA New York owed PaineWebber
$185,815 and $107,823, respectively, for investment advisory and administration
fees. During the period PaineWebber voluntarily waived investment advisory and
administration fees of $4,774 for RMA New York.
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.
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
December 31, 1995, no reimbursements were required pursuant to the above
limitation.
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 December 31, 1995, RMA
California and RMA New York owed PaineWebber $30,450 and $17,188, respectively,
for such service fees.
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 December 31, 1995,
PaineWebber earned $47,235 and $15,726 in transfer agency service fees from RMA
California and RMA New York, respectively. At December 31, 1995, RMA California
and RMA New York owed PaineWebber $4,393 and $6,121, respectively, for such
transfer agency service fees and reimbursement of out-of-pocket expenses.
13
<PAGE>
PAINEWEBBER MANAGED MUNICIPAL TRUST
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
OTHER LIABILITIES
At December 31, 1995, RMA California and RMA New York had dividends payable
aggregating $4,907 and $3,809, respectively, and a payable for investments
purchased aggregating $3,021,609 for the RMA New York portfolio.
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 Six Months Ended
December 31, 1995 For the Year Ended June 30, 1995
------------------------------- ----------------------------------
RMA California RMA New York RMA California RMA New York
-------------- ------------- --------------- ---------------
<S> <C> <C> <C> <C>
Shares sold................... 957,764,077 640,908,723 1,651,147,178 1,109,690,314
Shares issued in connection
with the acquisition of
PW/KP California Tax Exempt
Money Fund and PW/KP
Municipal Money Market
Series--New York Series,
respectively................ 120,122,110 38,947,877 -- --
Shares repurchased............ (940,857,792) (622,090,434) (1,624,312,810) (1,087,057,232)
Dividends reinvested.......... 5,587,308 3,548,948 8,951,829 5,058,569
-------------- ------------- --------------- ---------------
Net increase in shares
outstanding................. 142,615,703 61,315,114 35,786,197 27,691,651
-------------- ------------- --------------- ---------------
-------------- ------------- --------------- ---------------
</TABLE>
14
<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 Six For the Years Ended Seven For the Years Ended
Months Ended June 30, Months Ended November 30,
December 31, 1995 -------------------------------- June 30, --------------------
(unaudited) 1995 1994 1993 1992 1991 1990
----------------- -------- -------- -------- ------------ -------- --------
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of
period...................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
----------------- -------- -------- -------- ------------ -------- --------
Net investment income......... 0.015 0.029 0.018 0.019 0.016 0.038 0.050
Dividends from net
investment income........... (0.015) (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 $ 1.00
----------------- -------- -------- -------- ------------ -------- --------
----------------- -------- -------- -------- ------------ -------- --------
Total investment return (1)... 1.51% 2.91% 1.78% 1.88% 1.61% 3.81% 4.95%
----------------- -------- -------- -------- ------------ -------- --------
----------------- -------- -------- -------- ------------ -------- --------
Ratios/Supplemental Data:
Net assets, end of period
(000's)................... $ 473,432 $330,937 $295,183 $290,367 $259,183 $261,902 $300,516
Ratio of expenses to
average net assets........ 0.76%*(2) 0.69% 0.69% 0.72% 0.69%* 0.75% 0.70%
Ratio of net investment
income to average
net assets................ 2.92%*(2) 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.
(2) These ratios include non-recurring acquisition expenses of 0.06%.
15
<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 Six For the Years Ended Seven For the Years Ended
Months Ended June 30, Months Ended November 30,
December 31, 1995 -------------------------------- June 30, --------------------
(unaudited) 1995 1994 1993 1992 1991 1990
----------------- -------- -------- -------- ------------ -------- --------
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value,
beginning of period.......... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
----------------- -------- -------- -------- ------------ -------- --------
Net investment income.......... 0.015 0.028 0.017 0.018 0.016 0.037 0.049
Dividends from
net investment income........ (0.015) (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 $ 1.00
----------------- -------- -------- -------- ------------ -------- --------
----------------- -------- -------- -------- ------------ -------- --------
Total investment return (1).... 1.53% 2.81% 1.70% 1.82% 1.62% 3.74% 4.92%
----------------- -------- -------- -------- ------------ -------- --------
----------------- -------- -------- -------- ------------ -------- --------
Ratios/Supplemental Data:
Net assets, end of period
(000's).................... $ 254,008 $192,799 $165,111 $116,604 $129,687 $121,347 $113,885
Ratio of expenses to average
net assets:
Before waiver from
adviser ................. 0.78%*(2) 0.71% 0.75% 0.79% 0.73%* 0.89% 0.85%
After waiver from
adviser ................. 0.77%*(2) 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 ................. 2.92%*(2) 2.78% 1.67% 1.70% 2.54%* 3.52% 4.67%
After waiver from
adviser ................. 2.93%*(2) 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.
(2) These ratios include non-recurring acquisition expenses of 0.09%.
16
<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
------------------------
A prospectus containing more complete information can be obtained from a
PaineWebber investment executive or correspondent firm. Read the prospectus
carefully before investing.
(Copyright) 1996 PaineWebber Incorporated
[LOGO] Recycled
Paper
- ---------------------------------------------------------
TRUSTEES
E. Garrett Bewkes, Jr., Chairman
Meyer Feldberg
George W. Gowen
Frederic V. Malek
Judith Davidson Moyers
- ---------------------------------------------------------
PRINCIPAL 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
- ---------------------------------------------------------
INVESTMENT ADVISER, ADMINISTRATOR AND DISTRIBUTOR
PaineWebber Incorporated
1285 Avenue of the Americas
New York, New York 10019
- ---------------------------------------------------------
SUB-ADVISER AND SUB-ADMINISTRATOR
Mitchell Hutchins Asset Management Inc.
1285 Avenue of the Americas
New York, New York 10019
- ---------------------------------------------------------
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.
The financial information included herein is taken from the records of the Funds
without examination by independent accountants who do not express an opinion
thereon.
