<PAGE>
RMA MUNICIPAL MONEY FUNDS ANNUAL REPORT
August 20, 1997
Dear Shareholder,
We are pleased to present you with the annual report for PaineWebber RMA
California Municipal Money Fund, PaineWebber RMA New York Municipal Money Fund
and PaineWebber RMA New Jersey Municipal Money Fund for the fiscal year ended
June 30, 1997.
GENERAL MARKET OVERVIEW
- --------------------------------------------------------------------------------
Early in the period, uncertainty over the direction of interest rates
unsettled what was already a jittery bond market. By mid-summer 1996, a
moderating economy helped bolster the market for a short period of time, a
situation that was, however, only fleeting as renewed fears of an overheating
economy quickly re-emerged. This pattern would repeat itself throughout fall and
into the new year.
The Federal Reserve's (the "Fed") decision to raise short-term interest
rates to 5.5% in March resulted in virtually every bond sector posting a
negative total return at the end of the first quarter of 1997. The high yield
sector was the exception, as gains in January and February more than offset the
softness following the Fed move. Then, on April 28, 1997, the report of the
Employment Cost Index (ECI)-- considered to be the most comprehensive
wage-inflation indicator, and critical to Fed policy--indicated a very positive
inflation picture. This information, plus positive news on an agreed upon
framework by President Clinton and the Republicans to balance the budget by
2002, and an atypical paydown in federal debt, turned market sentiment extremely
bullish. Bonds rallied strongly, sending the yield on the long bond from 7.1% on
March 31, 1997 to 6.8% on June 30, 1997. Furthermore, all fixed income sectors
contributed positively to total performance; however, the high yield sector
again outperformed others as investors' willingness to accept higher credit risk
produced higher returns.
1
<PAGE>
ANNUAL REPORT
PORTFOLIO REVIEW
- --------------------------------------------------------------------------------
Throughout the period, the Funds' portfolios maintained slightly
higher average weighted maturities than their peers, in response to economic
data indicating low inflation with slight economic growth.
- --------------------------------------------------------------------------------
PAINEWEBBER RMA CALIFORNIA MUNICIPAL MONEY FUND
PaineWebber RMA California Municipal Money Fund's net assets totalled $492.9
million as of June 30, 1997. The Fund's current yield for the seven-day period
ended June 30, 1997 was 3.19%. The Fund maintained a weighted average maturity
of 44 days as of June 30, 1997. In addition, the Fund did not invest in any
securities subject to the federal alternative minimum tax for individual
taxpayers.
- --------------------------------------------------------------------------------
PAINEWEBBER RMA NEW YORK MUNICIPAL MONEY FUND
PaineWebber RMA New York Municipal Money Fund's net assets totalled $274.3
million as of June 30, 1997. The Fund's current yield for the seven-day period
ended June 30, 1997 was 3.25%. The Fund maintained a weighted average maturity
of 46 days as of June 30, 1997. In addition, the Fund did not invest in any
securities subject to the federal alternative minimum tax for individual
taxpayers.
- --------------------------------------------------------------------------------
PAINEWEBBER RMA NEW JERSEY MUNICIPAL MONEY FUND
PaineWebber RMA New Jersey Municipal Money Fund's net assets totalled $52.3
million as of June 30, 1997. The Fund's current yield for the seven-day period
ended June 30, 1997 was 3.17%. The Fund maintained a weighted average maturity
of 46 days as of June 30, 1997. In addition, the Fund had dividends paid subject
to the alternative minimum tax of 15.31% for the fiscal year ended June 30,
1997.
2
<PAGE>
RMA MUNICIPAL MONEY FUNDS ANNUAL REPORT
OUTLOOK
- --------------------------------------------------------------------------------
As we enter the second half of 1997, the emerging view on the economy has
been for a slowdown in growth rates. While bond market participants have, over
the period, acquired a greater confidence in the Fed's management of monetary
policy, more critically abetting the market's runup has been a widening
perception that the Greenspan Fed is likely to be pragmatic--and not driven
strictly by classical resource utilization-based economic thought that currently
argues for aggressive monetary tightening. This, in fact appears to be the case,
as evidenced by the Federal Reserve's decision not to move on interest rates at
the Federal Open Market Committee meeting on August 19, 1997.
Although we plan to maintain the Funds' current postures, every new
economic number released will be closely scrutinized. Inflation is always a
concern and, as such, will be carefully monitored. Investment decisions for the
Funds 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 Funds' emphasis on credit, quality and liquidity.
Our ultimate objective in managing your investments is to help you
successfully meet your financial goals. We thank you for your continued support,
and welcome any comments or questions you may have.
Sincerely,
/s/ MARGO N. ALEXANDER /s/ DENNIS L. McCAULEY
MARGO N. ALEXANDER DENNIS L. McCAULEY
President, Managing Director and Chief
Mitchell Hutchins Asset Investment Officer--Fixed Income
Management Inc. Mitchell Hutchins Asset
Management Inc.
This letter is intended to assist shareholders in understanding how the Funds
performed during the fiscal year ended June 30, 1997, and reflects our views at
the time we are writing this report. Of course, these views may change in
response to changing circumstances. We encourage you to consult your investment
executive regarding your personal investment program.
3
<PAGE>
PAINEWEBBER RMA CALIFORNIA MUNICIPAL MONEY FUND
STATEMENT OF NET ASSETS JUNE 30, 1997
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
- ------------- --------------------- ----------------- ------------
<S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES - 64.61%
$ 6,000 California Community College Financing Authority
Tax and Revenue Anticipation Bonds................... 07/02/97 4.750% $ 6,000,142
1,000 California Educational Facilities Authority
(Stanford University Series L-4)..................... A 3.850 1,000,000
12,400 California Health Facilities Financing Authority
(Kaiser Permanente).................................. A 3.850 12,400,000
10,300 California Health Facilities Financing Authority
(Long Beach Memorial)................................ A 3.950 10,300,000
6,000 California Health Facilities Financing Authority
(N.T. Enloe Memorial Hospital)....................... A 3.900 6,000,000
13,900 California Health Facilities Financing Authority
(West Sutter Adventist Health)....................... A 3.900 to 3.950 13,900,000
600 California Pollution Control Financing Authority
(Pacific Gas & Electric Company)..................... A 5.500 600,000
13,500 California Statewide Communities Development Authority
Apartment Development Revenue Bonds.................. A 3.900 to 4.000 13,500,000
700 California Statewide Communities Development Authority
Certificates of Participation (House Ear
Institute)........................................... A 3.850 700,000
14,000 California Statewide Communities Development Authority
Certificates of Participation (Memorial Health
Services)............................................ A 3.950 14,000,000
5,250 Abag Finance Authority for Nonprofit Corporations
(Lucile Salter Packard Project) (AMBAC Insured)...... A 3.900 5,250,000
1,150 Alameda Contra Costa Schools Financing Authority
Certificates of Participation (Capital Improvement
Funding Projects).................................... A 4.000 1,150,000
19,000 Anaheim Certificates of Participation (AMBAC
Insured)............................................. A 3.900 19,000,000
6,000 Contra Costa County Tax and Revenue Anticipation
Notes................................................ 07/03/97 4.500 6,000,222
7,600 Fresno County Tax and Revenue Anticipation Notes....... 09/29/97 to 06/30/98 4.250 to 4.750 7,628,513
5,400 Golden Empire Schools Financing Authority
(Kern High School District).......................... A 4.100 5,400,000
12,500 Irvine Public Facilities and Infrastructure Authority
Lease Revenue........................................ A 4.000 12,500,000
3,000 Los Angeles County Certificates of Participation
(Equipment Acquisition Program L).................... 12/01/97 5.700 3,021,878
10,800 Los Angeles County Pension Obligation (AMBAC
Insured)............................................. A 3.900 10,800,000
4,000 Los Angeles County Tax and Revenue Participation
Notes................................................ 06/30/98 4.500 4,024,880
13,500 Los Angeles Multi-Family Revenue Bonds
(Museum Terrace Apartments).......................... A 4.000 13,500,000
4,000 Los Angeles Unified School District Tax and Revenue
Anticipation Notes................................... 07/01/98 4.500 4,026,960
29,650 Newport Beach Health Facilities (Hoag Memorial
Hospital)............................................ A 4.000 29,650,000
9,000 Northern California Power Agency
(Geothermal Project Number 3A) (AMBAC Insured)....... A 3.900 9,000,000
7,400 Orange County Apartment Development Revenue
(Bear Brand Apartments).............................. A 3.900 7,400,000
8,550 Orange County Apartment Development Revenue (Niguel
Village)............................................. A 3.850 8,550,000
5,900 Riverside County Tax and Revenue Anticipation Notes.... 06/30/98 4.500 5,931,093
1,280 Sacramento County Certificates of Participation
Administration Center and Courthouse Project......... A 3.900 1,280,000
4,350 Sacramento County Tax and Revenue Anticipation Notes... 09/30/97 4.500 4,357,917
3,500 San Bernardino County Tax and Revenue Anticipation
Notes................................................ 06/30/98 4.500 3,521,840
8,100 San Francisco Redevelopment Agency Multi-Family Housing
(Fillmore Center).................................... A 4.000 8,100,000
2,080 San Francisco Redevelopment Agency Multi-Family Housing
(Rincon Center)...................................... A 4.000 2,080,000
</TABLE>
4
<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)
$ 3,000 Santa Barbara County Schools Financing Authority
Tax and Revenue Anticipation Notes................... 06/30/98 4.250% $ 3,012,900
3,100 Santa Clara County El Camino Hospital District
Hospital Facilities Authority Revenue
(Aces Lease Valley Medical Center Project)........... A 3.900 3,100,000
19,100 Santa Clara Financing Authority
(VMC Facility Replacement Project B)................. A 4.050 19,100,000
6,220 Simi Valley Public Financing Authority................. A 3.900 6,220,000
8,000 South Coast California Local Education Agencies
Tax and Revenue Anticipation Notes (MBIA Insured).... 06/30/98 4.500 8,053,760
15,900 Southern California Public Power Authority Project
(Palo Verde Project C) (AMBAC Insured)............... A 3.900 15,900,000
4,000 Southern California Public Power Authority Project
(Southern Transmission) (AMBAC Insured).............. A 3.900 4,000,000
3,490 Visalia Public Finance Authority
(Golf Course Improvement)............................ A 4.050 3,490,000
5,000 Puerto Rico Commonwealth Tax and Revenue Anticipation
Notes................................................ 07/30/97 4.000 5,000,746
------------
Total Municipal Bonds And Notes (cost-$318,450,851)................... 318,450,851
------------
TAX EXEMPT COMMERCIAL PAPER - 38.42%
21,000 California State....................................... 07/01/97 to 08/25/97 3.650 to 4.000 21,000,000
6,500 California Educational Facilities Authority
(Carnegie Institute of Washington)................... 08/12/97 to 08/20/97 3.600 to 3.650 6,500,000
4,400 California Pollution Control Financing Authority
(Dow Chemical Company Project)....................... 08/18/97 3.650 4,400,000
11,821 State of California Department of Water Resources...... 08/14/97 to 08/22/97 3.550 to 3.600 11,821,000
9,400 Anaheim Electric Authority............................. 08/25/97 to 09/10/97 3.600 to 3.650 9,400,000
1,000 Central Coast Water Authority (AMBAC Insured).......... 10/01/97 3.700 1,000,000
2,000 Contra Costa County Water District Series A............ 08/25/97 3.550 2,000,000
12,900 East Bay Municipal Utility District.................... 08/27/97 to 08/29/97 3.550 to 3.600 12,900,000
9,500 Los Angeles Department of Water & Power................ 08/28/97 to 10/14/97 3.550 to 3.900 9,500,000
10,000 Los Angeles Transportation Commission.................. 08/07/97 to 08/12/97 3.550 to 3.750 10,000,000
7,000 Los Angeles Wastewater System.......................... 08/08/97 3.550 7,000,000
10,000 Metropolitan Water District of Southern California..... 08/11/97 to 08/13/97 3.550 to 3.700 10,000,000
12,300 Modesto Irrigation District............................ 08/13/97 to 08/21/97 3.500 to 3.800 12,300,000
28,000 Regents of the University of California................ 08/12/97 to 08/26/97 3.550 to 3.600 28,000,000
5,267 Sacramento Municipal Utility District.................. 08/13/97 to 09/24/97 3.600 to 3.800 5,267,000
5,500 San Diego Regional Transportation Commission........... 08/11/97 3.650 5,500,000
1,100 San Diego Water Authority.............................. 08/12/97 3.650 1,100,000
31,710 Puerto Rico Commonwealth Government Development Bank... 07/15/97 to 09/12/97 3.550 to 3.800 31,710,000
------------
Total Tax Exempt Commercial Paper (cost-$189,398,000)................. 189,398,000
------------
TOTAL INVESTMENTS (cost-$507,848,851 which approximates cost
for federal income tax purposes)-103.03%............................ 507,848,851
Liabilities in excess of other assets-(3.03)%......................... (14,933,506)
------------
NET ASSETS (applicable to 493,410,986 shares of beneficial
interest at $1.00 per share)-100.00%................................ $492,915,345
------------
------------
</TABLE>
- ------------------
A-Variable Rate Demand Notes are payable on demand. The interest rates shown are
the current rates as of June 30, 1997 and reset periodically.
AMBAC-American Municipal Bond Assurance Corporation
MBIA-Municipal Bond Investors Assurance
Weighted Average Maturity--44 days
See accompanying notes to financial statements
5
<PAGE>
PAINEWEBBER RMA NEW YORK MUNICIPAL MONEY FUND
STATEMENT OF NET ASSETS JUNE 30, 1997
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
- ------------- --------------------- ----------------- ------------
<S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES - 81.53%
$ 2,700 New York State Dormitory Authority
(Masonic Hall Asylum)................................ A 4.050% $ 2,700,000
7,050 New York State Dormitory Authority
(Metropolitan Museum of Art)......................... A 4.000 7,050,000
6,870 New York State Dormitory Authority
(New York Public Library)............................ A 4.000 6,870,000
1,710 New York State Dormitory Authority
(Oxford University Press Incorporated)............... A 4.000 1,710,000
9,500 New York State Energy Research & Development Authority
(Central Hudson Gas & Electric)...................... A 3.900 to 3.950 9,500,000
2,000 New York State Energy Research & Development Authority
(LILCO) Adjustable Rate Bonds........................ 09/02/97 3.600 2,000,000
1,000 New York State Energy Research & Development Authority
(Rochester Gas & Electric Corporation) Adjustable
Rate Bonds........................................... 07/01/97 3.600 1,000,000
4,000 New York State Energy Research & Development Authority
(New York State Electric & Gas Corporation)
Adjustable Rate Bonds................................ 10/15/97 to 12/01/97 3.600 to 3.850 4,000,000
1,300 New York State Energy Research & Development Authority
(Niagara Mohawk)..................................... A 4.100 1,300,000
9,500 New York State Energy Research & Development Authority
Gas Facilities Revenue (Brooklyn Union Gas Company).. A 4.050 to 4.400 9,500,000
5,000 New York State Energy Research & Development Authority
Pollution Control Revenue (Orange and Rockland
Project A)........................................... A 4.050 5,000,000
4,000 New York State Housing Finance Agency
(Normandie Project).................................. A 4.000 4,000,000
4,000 New York State Housing Finance Agency Revenue
(Hospital Special Surgery Staff)..................... A 4.100 4,000,000
8,700 New York State Local Government Assistance
Corporation.......................................... A 4.000 8,700,000
2,100 New York State Medical Facilities Financing Agency
(Pooled Equipment Loan Program)...................... A 4.100 2,100,000
3,500 New York State Power Authority......................... 09/01/97 3.500 3,500,000
3,155 New York City Housing Development Corp.
(Parkgate Tower Project)............................. 07/01/97 4.100 3,155,000
400 New York City Municipal Water Finance Authority........ A 4.150 400,000
600 New York City Municipal Water Finance Authority Water &
Sewer Systems Revenue Series A....................... A 5.500 600,000
2,000 Albany School District Revenue Anticipation Notes...... 10/24/97 4.375 2,002,922
1,000 Brentwood Union Free School District Tax Anticipation
Notes................................................ 06/30/98 4.250 1,003,270
1,300 Buffalo County Revenue Anticipation Notes.............. 07/15/97 4.250 1,300,318
2,100 Chemung County Industrial Development Agency
(Arnot Ogden Medical Center)......................... A 4.150 2,100,000
4,585 Dutchess County Bond Anticipation Notes................ 02/27/98 4.000 4,597,261
2,000 Elmira City Bond Anticipation Notes.................... 03/30/98 4.000 2,003,600
1,000 Erie County Revenue Anticipation Notes................. 11/19/97 4.250 1,002,421
4,850 Erie County Water Authority............................ 07/02/97 4.050 4,850,000
1,954 Guilderland Central School District Bond Anticipation
Notes................................................ 07/25/97 4.625 1,954,259
2,904 Harrison Central School District Bond Anticipation
Notes................................................ 10/22/97 to 03/19/98 4.000 to 4.250 2,908,551
2,000 Hempstead Union Free District Tax Anticipation Notes... 06/30/98 4.250 2,006,680
2,000 Lindenhurst Union Free School District Tax Anticipation
Notes................................................ 06/24/98 4.250 2,004,335
2,900 Metropolitan Transportation Authority (Pre-refunded
with U.S. Government Securities to 7/01/98 @ 102).... 07/01/98 8.000 3,071,706
</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 AND NOTES - (CONCLUDED)
$ 900 Monroe County Industrial Development Agency
(Electronic Navigation/Indiana Incorporated)
Adjustable Rate Bonds................................ 07/01/97 3.850% $ 900,000
5,000 Municipal Assistance Corporation for New York City..... A 3.850 5,000,000
3,000 Nassau County Bond Anticipation Notes.................. 08/15/97 4.250 3,001,714
1,780 Nassau County General Improvement Bonds................ 11/01/97 5.125 1,788,485
2,000 Nassau County Tax Anticipation Notes................... 09/25/97 4.250 2,003,209
7,500 New York City.......................................... A 4.000 to 5.500 7,500,000
3,568 New York City Housing Development Corp.
(Columbus Gardens)................................... A 4.100 3,567,900
500 New York City Housing Development Corp.
(East 17th Street Project)........................... A 4.050 500,000
1,500 New York City Housing Development Corp.
(James Tower Project)................................ A 4.100 1,500,000
2,550 New York City Housing Development Corp.
(Upper Fifth Avenue Project)......................... A 3.950 2,550,000
3,000 New York City Industrial Development Agency
(Calhoun School)..................................... A 3.950 3,000,000
4,200 New York City Industrial Development Agency
(JFK Field Hotel).................................... A 4.150 4,200,000
6,400 New York City Industrial Development Agency
(LaGuardia Project).................................. A 4.150 6,400,000
8,850 New York City Trust Cultural Resources
(American Museum of Natural History)................. A 4.050 8,850,000
3,400 New York City Trust for Cultural Resources
(Carnegie Hall)...................................... A 3.900 3,400,000
1,400 New York City Trust for Cultural Resources
(Soloman R Guggenheim)............................... A 4.000 1,400,000
4,100 Niagara Falls Toll Bridge Commission................... A 4.050 4,100,000
3,100 Onondaga County Industrial Development Agency
(Edgcomb Metals Company Project)..................... A 4.125 3,100,000
1,025 Orange County General Obligation Bonds................. 12/01/97 5.900 1,033,670
1,500 Oswego City Bond Anticipation Notes.................... 10/08/97 4.500 1,502,270
1,650 Oyster Bay Bond Anticipation Notes..................... 10/03/97 4.250 1,651,993
2,000 Port Authority of New York and New Jersey.............. A 4.100 2,000,000
3,500 Riverhead Central School District Tax Anticipation
Notes................................................ 06/26/98 4.375 3,512,320
6,000 Rotterdam Industrial Development Agency
(Rotterdam Industrial Park Project).................. A 4.250 6,000,000
8,000 Seneca County Industrial Development Agency
(N.Y. Chiropractic College).......................... A 4.050 8,000,000
3,500 Suffolk County Tax Anticipation Notes.................. 08/14/97 to 09/17/97 4.000 to 4.500 3,502,731
10,400 Suffolk County Water Authority Bond Anticipation
Notes................................................ A 4.100 10,400,000
3,200 Syracuse Bond Anticipation Notes....................... 12/19/97 3.900 3,202,159
2,000 Yonkers Industrial Development Agency
(Consumers Union Facility)........................... A 3.950 2,000,000
6,200 Yonkers Industrial Development Authority
(Consumers Union Facility)........................... A 3.950 6,200,000
4,000 Puerto Rico Commonwealth Tax and Revenue Anticipation
Notes................................................ 07/30/97 4.000 4,000,597
------------
Total Municipal Bonds And Notes (cost-$223,657,371)................... 223,657,371
------------
</TABLE>
7
<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 - 21.05%
$ 700 New York State......................................... 07/23/97 3.800% $ 700,000
2,100 New York State......................................... 08/26/97 3.750 2,100,000
12,100 New York State Dormitory Authority..................... 08/01/97 to 09/23/97 3.550 to 3.800 12,100,000
6,000 New York State Power Authority......................... 07/24/97 to 09/12/97 3.650 to 3.750 6,000,000
6,300 Municipal Assistance Company for New York (Series F)... 08/08/97 to 08/25/97 3.550 to 3.800 6,300,000
8,600 New York City.......................................... 08/12/97 to 09/22/97 3.700 to 3.800 8,600,000
9,900 New York City Municipal Water Finance Authority........ 07/31/97 to 09/29/97 3.600 to 3.800 9,900,000
2,765 Port Authority of New York and New Jersey.............. 08/07/97 to 08/11/97 3.600 to 3.750 2,765,000
9,300 Puerto Rico Commonwealth Government Development Bank... 07/18/97 to 08/21/97 3.600 to 3.800 9,300,000
------------
Total Tax Exempt Commercial Paper (cost-$57,765,000) ................. 57,765,000
------------
TOTAL INVESTMENTS (cost-$281,422,371 which approximates
cost for federal income tax purposes)-102.58%....................... 281,422,371
Liabilities in excess of other assets-(2.58)%......................... (7,084,575)
------------
NET ASSETS (applicable to 274,560,622 shares of
beneficial interest at $1.00 per share)-100.00%..................... $274,337,796
------------
------------
</TABLE>
- ------------------
A-Variable Rate Demand Notes are payable on demand. The interest rates shown
are the current rates as of June 30, 1997 and reset periodically.
Weighted Average Maturity--46 days
See accompanying notes to financial statements
8
<PAGE>
PAINEWEBBER RMA NEW JERSEY MUNICIPAL MONEY FUND
STATEMENT OF NET ASSETS JUNE 30, 1997
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
- ------------- --------------------- ----------------- -----------
<S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES - 85.31%
$ 1,900 New Jersey Economic and Industrial Development Authority
(Burmah Castrol Incorporated)......................... A 4.100% $ 1,900,000
1,400 New Jersey Economic and Industrial Development Authority
(Fujinon Incorporated Project)........................ A 4.250 1,400,000
1,600 New Jersey Economic Development Authority............... A 3.750 to 4.350 1,600,000
950 New Jersey Economic Development Authority
(Bears Series A)...................................... A 4.350 950,000
1,375 New Jersey Economic Development Authority
(Brach/Jersey Avenue Project)......................... A 4.100 1,375,000
1,600 New Jersey Economic Development Authority
(Church and Dwight Company Project)................... A 3.850 1,600,000
1,447 New Jersey Economic Development Authority
(Curtiss Wright Flight)............................... A 3.850 1,447,000
300 New Jersey Economic Development Authority
(Dow Chemical)........................................ A 3.900 300,000
300 New Jersey Economic Development Authority
(Exxon Project)....................................... A 3.800 300,000
400 New Jersey Economic Development Authority
(400 International Drive Partners).................... A 3.900 400,000
1,500 New Jersey Economic Development Authority
(Franciscan Oaks Project)............................. A 4.050 1,500,000
400 New Jersey Economic Development Authority
(Natural Gas Company Project Series B)................ A 3.850 400,000
1,200 New Jersey Economic Development Authority
(Nui Corporation Project)............................. A 3.850 1,200,000
400 New Jersey Economic Development Authority
(W.Y. Plastic Products Corporation Project)........... A 3.900 400,000
1,000 New Jersey Economic Development Authority Facilities
Revenue (Thermal Energy Limited Partnership).......... 07/24/97 3.800 1,000,000
500 New Jersey Economic Development Authority Water
Facilities Revenue (Elizabethtown Water Company
Project B)............................................ A 3.450 500,000
2,000 New Jersey Economic Development Authority Water
Facilities Revenue (New Jersey American Water Company
Incorporated Project)................................. A 3.850 2,000,000
2,100 New Jersey Economic Development Authority Water
Facilities Revenue (United Water New Jersey
Incorporated Project A)............................... A 3.800 2,100,000
300 New Jersey Economic Development Authority Water
Facilities Revenue (United Water New Jersey
Incorporated Project C)............................... A 3.850 300,000
1,000 New Jersey Health Care Facilities
(St. Clares Riverside Medical Center) (Pre-refunded
with U.S. Government Securities to 07/01/97 @ 102).... 07/01/97 7.750 1,020,000
700 New Jersey State........................................ 09/15/97 6.250 703,773
4,000 New Jersey State Turnpike Authority..................... A 3.800 4,000,000
1,205 New Jersey Wastewater Treatment Trust-Series B
(Pre-refunded with U.S. Government Securities to
5/15/98 @ 102)........................................ 05/15/98 7.250 1,262,227
1,000 Bernardsville New Jersey Bond Anticipation Notes........ 04/16/98 4.500 1,004,948
1,350 Clifton New Jersey Bond Anticipation Notes.............. 06/25/98 4.250 1,355,231
1,030 East Orange New Jersey.................................. 07/01/98 4.100 1,032,483
1,000 Essex County Improvement Authority Revenue.............. A 3.850 1,000,000
</TABLE>
9
<PAGE>
PAINEWEBBER RMA NEW JERSEY MUNICIPAL MONEY FUND
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
- ------------- --------------------- ----------------- -----------
<S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES - (CONCLUDED)
$ 500 Essex County Improvement Authority Revenue
(County Asset Sale)................................... A 4.000% $ 500,000
400 Mercer County Improvement Authority Revenue
(Pooled Government Loan Program)...................... A 4.000 400,000
500 Middlesex County General Obligation Bonds............... 07/15/97 3.900 500,018
1,000 Middlesex County Tax and Bond Anticipation Notes........ 02/18/98 4.000 1,002,760
950 Monmouth County Bond Anticipation Notes................. 08/28/97 4.375 950,763
300 Morris County Bond Anticipation Notes................... 08/07/97 3.970 300,103
4,000 Port Authority of New York and New Jersey............... A 4.000 to 4.100 4,000,000
1,730 Somerset County General Obligation Bonds................ 09/01/97 4.700 1,732,849
200 Union County Pollution Control Finance Authority
(Exxon Corporation)................................... A 3.900 200,000
1,000 Woodbridge Township Bond Anticipation Notes............. 07/02/97 3.880 1,000,001
1,500 Puerto Rico Commonwealth Government Development Bank.... A 3.750 1,500,000
500 Puerto Rico Commonwealth Tax and Revenue Anticipation
Notes................................................. 07/30/97 4.000 500,075
-----------
Total Municipal Bonds And Notes (cost-$44,637,231)..................... 44,637,231
-----------
TAX EXEMPT COMMERCIAL PAPER - 13.83%
1,000 New Jersey Economic Development Authority
(Chambers Cogeneration Project)....................... 07/15/97 3.900 to 3.950 1,000,000
2,700 New Jersey Economic Development Authority
(Logan 1992 Project).................................. 08/06/97 to 09/19/97 3.350 to 3.650 2,700,000
1,035 Port Authority of New York and New Jersey............... 07/18/97 3.650 1,035,000
2,500 Puerto Rico Commonwealth Government Development Bank.... 08/08/97 to 08/11/97 3.500 to 3.800 2,500,000
-----------
Total Tax Exempt Commercial Paper (cost-$7,235,000).................... 7,235,000
-----------
TOTAL INVESTMENTS (cost-$51,872,231 which approximates cost for federal
income tax purposes)-99.14%.......................................... 51,872,231
Other assets in excess of liabilities-0.86%............................ 451,349
-----------
NET ASSETS (applicable to 52,328,205 shares of beneficial interest at
$1.00 per share)-100.00%............................................. $52,323,580
-----------
-----------
</TABLE>
- ------------------
A- Variable Rate Demand Notes are payable on demand. The interest rates shown
are the current rates as of June 30, 1997 and reset periodically.
Weighted Average Maturity--46 days
See accompanying notes to financial statements
10
<PAGE>
PAINEWEBBER MANAGED MUNICIPAL TRUST
PAINEWEBBER MUNICIPAL MONEY MARKET SERIES
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
FOR THE YEAR ENDED JUNE 30, 1997
----------------------------------------
RMA RMA RMA
CALIFORNIA NEW YORK NEW JERSEY
MUNICIPAL MUNICIPAL MUNICIPAL
MONEY FUND MONEY FUND MONEY FUND
----------- ----------- ----------
<S> <C> <C> <C>
INVESTMENT INCOME:
Interest................................................................... $18,156,349 $10,086,997 $1,647,440
----------- ----------- ----------
EXPENSES:
Investment advisory and administration..................................... 2,493,144 1,446,166 239,816
Distribution fees.......................................................... 420,687 231,528 57,556
Transfer agency and service fees........................................... 117,809 172,788 11,273
Legal and audit............................................................ 66,956 135,527 24,393
Custody and accounting..................................................... 44,144 35,532 6,782
Federal and state registration fees........................................ 41,960 92,352 5,048
Reports and notices to shareholders........................................ 36,363 46,117 25,648
Trustees' fees............................................................. 12,250 12,250 12,250
Other expenses............................................................. 16,349 56,304 4,295
----------- ----------- ----------
3,249,662 2,228,564 387,061
Less: Fee waivers from adviser............................................. -- (292,698) --
----------- ----------- ----------
Net expenses............................................................... 3,249,662 1,935,866 387,061
----------- ----------- ----------
Net investment income...................................................... 14,906,687 8,151,131 1,260,379
NET REALIZED GAINS (LOSSES) FROM INVESTMENT TRANSACTIONS................... 40,508 15,810 (118)
----------- ----------- ----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS....................... $14,947,195 $8,166,941 $1,260,261
----------- ----------- ----------
----------- ----------- ----------
</TABLE>
See accompanying notes to financial statements
11
<PAGE>
PAINEWEBBER RMA CALIFORNIA MUNICIPAL MONEY FUND
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE YEARS ENDED
JUNE 30,
--------------------------
1997 1996
------------ ------------
<S> <C> <C>
FROM OPERATIONS:
Net investment income.............................................................. $14,906,687 $11,959,586
Net realized gains (losses) from investment transactions........................... 40,508 (17,667)
------------ ------------
Net increase in net assets resulting from operations............................... 14,947,195 11,941,919
------------ ------------
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income.............................................................. (14,906,687) (12,073,586)
------------ ------------
NET INCREASE IN NET ASSETS FROM BENEFICIAL INTEREST TRANSACTIONS................... 19,149,305 142,920,650
------------ ------------
Net increase in net assets......................................................... 19,189,813 142,788,983
NET ASSETS:
Beginning of year.................................................................. 473,725,532 330,936,549
------------ ------------
End of year........................................................................ $492,915,345 $473,725,532
------------ ------------
------------ ------------
</TABLE>
See accompanying notes to financial statements
12
<PAGE>
PAINEWEBBER RMA NEW YORK MUNICIPAL MONEY FUND
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE YEARS ENDED
JUNE 30,
--------------------------
1997 1996
------------ ------------
<S> <C> <C>
FROM OPERATIONS:
Net investment income................................................................... $ 8,151,131 $ 7,104,041
Net realized gains from investment transactions......................................... 15,810 25,432
------------ ------------
Net increase in net assets resulting from operations.................................... 8,166,941 7,129,473
------------ ------------
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income................................................................... (8,151,131) (7,209,366)
------------ ------------
NET INCREASE IN NET ASSETS FROM BENEFICIAL INTEREST TRANSACTIONS........................ 19,145,230 62,457,879
------------ ------------
Net increase in net assets.............................................................. 19,161,040 62,377,986
NET ASSETS:
Beginning of year....................................................................... 255,176,756 192,798,770
------------ ------------
End of year............................................................................. $274,337,796 $255,176,756
------------ ------------
------------ ------------
</TABLE>
See accompanying notes to financial statements
13
<PAGE>
PAINEWEBBER RMA NEW JERSEY MUNICIPAL MONEY FUND
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
FOR THE
FOR THE EIGHT MONTHS FOR THE
YEAR ENDED ENDED YEAR ENDED
JUNE 30, JUNE 30, OCTOBER 31,
1997 1996 1995
------------ ------------ ------------
<S> <C> <C> <C>
FROM OPERATIONS:
Net investment income.............................................. $ 1,260,379 $ 707,712 $ 916,509
Net realized losses from investment transactions................... (118) (2,729) (1,778)
------------ ------------ ------------
Net increase in net assets resulting from operations............... 1,260,261 704,983 914,731
------------ ------------ ------------
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income.............................................. (1,260,379) (707,712) (916,509)
------------ ------------ ------------
NET INCREASE IN NET ASSETS FROM BENEFICIAL INTEREST TRANSACTIONS... 10,090,883 6,029,617 4,205,178
------------ ------------ ------------
Contribution to capital from predecessor adviser................... -- -- 21,521
------------ ------------ ------------
Net increase in net assets......................................... 10,090,765 6,026,888 4,224,921
NET ASSETS:
Beginning of period................................................ 42,232,815 36,205,927 31,981,006
------------ ------------ ------------
End of period...................................................... $52,323,580 $42,232,815 $36,205,927
------------ ------------ ------------
------------ ------------ ------------
</TABLE>
See accompanying notes to financial statements
14
<PAGE>
NOTES TO FINANCIAL STATEMENTS
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
PaineWebber Managed Municipal Trust ('Managed Municipal Trust') and
PaineWebber Municipal Money Market Series ('Municipal Money Market Series')
(collectively, the 'Trusts') were organized under Massachusetts law by
Declarations of Trust dated November 21, 1986 and September 14, 1990,
respectively, and are registered with the Securities and Exchange Commission
under the Investment Company Act of 1940, as amended, as open-end management
investment companies. Managed Municipal Trust currently offers two 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'). Municipal Money Market Series currently offers one no-load,
non-diversified series of shares: PaineWebber RMA New Jersey Municipal Money
Fund ('RMA New Jersey') and, together with RMA California and RMA New York, the
('Funds').
The preparation of financial statements in accordance with generally
accepted accounting principles requires Fund management to make estimates and
assumptions that affect the reported amounts and disclosures in the financial
statements. Actual results could differ from those estimates. Following is a
summary of significant accounting policies:
Valuation and Accounting for Investments and Investment Income--Investments
are valued at amortized cost which approximates market value. Investment
transactions are recorded on the trade date. Realized gains and losses from
investment transactions are calculated using the identified cost method.
Interest income is recorded on an accrual basis. Premiums are amortized and
discounts are accreted as adjustments to interest income and the identified cost
of investments.
Dividends and distributions--Dividends and distributions to shareholders are
recorded on the ex-dividend date. The amount of dividends and distributions is
determined in accordance with federal income tax regulations, which may differ
from generally accepted accounting principles. These 'book/tax' differences are
either considered temporary or permanent in nature. To the extent these
differences are permanent in nature, such amounts are reclassified within the
capital accounts based on their federal tax-basis treatment; temporary
differences do not require reclassification.
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 $26,217, were
combined with those of RMA California.
15
<PAGE>
NOTES TO FINANCIAL STATEMENTS
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
Each Trust's board of trustees has approved an Investment Advisory and
Administration Contract ('Advisory Contracts') with PaineWebber Incorporated
('PaineWebber'), under which PaineWebber serves as investment adviser and
administrator of the Trusts and each of their Funds. In accordance with their
Advisory Contracts, each of RMA California and RMA New York pays PaineWebber an
investment advisory and administration fee, which is accrued daily and paid
monthly in accordance with the following schedule:
ANNUAL
AVERAGE DAILY NET ASSETS RATE
------------------------------------------------------------ ------
Up to $300 million.......................................... 0.50%
In excess of $300 million up to $750 million................ 0.44
Over $750 million........................................... 0.36
In accordance with its Advisory Contract, RMA New Jersey pays PaineWebber an
investment advisory and administration fee, which is accrued daily and paid
monthly, at an annual rate of 0.50% of the Fund's average daily net assets.
At June 30, 1997, RMA California, RMA New York and RMA New Jersey owed
PaineWebber $198,104, $103,853 and $22,185, respectively, for investment
advisory and administration fees.
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.
For the year ended June 30, 1997, PaineWebber voluntarily waived $292,698 of
its investment advisory and administration fees for RMA New York.
DISTRIBUTION PLAN
PaineWebber is the distributor of each Fund's shares. Under the plan of
distribution, the Funds are authorized to pay PaineWebber a monthly service fee
at the annual rate of up to 0.15% of RMA California's and RMA New York's average
daily net assets and 0.12% of RMA New Jersey'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 RMA California's and RMA New York's average daily net assets and 0.12%
of RMA New Jersey's average daily net assets. At June 30, 1997, RMA California,
RMA New York and RMA New Jersey owed PaineWebber $33,329, $18,359 and $5,324,
respectively, for such service fees.
16
<PAGE>
NOTES TO FINANCIAL STATEMENTS
TRANSFER AGENCY SERVICE FEES
RMA California and RMA New York pay 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, 1997, PaineWebber earned $54,029 and $39,481 in transfer agency service
fees from RMA California and RMA New York, respectively. At June 30, 1997, RMA
California and RMA New York owed PaineWebber $4,477 and $3,351, respectively,
for such transfer agency service fees and reimbursement of out-of-pocket
expenses.
OTHER LIABILITIES
At June 30, 1997, RMA California, RMA New York and RMA New Jersey had
dividends payable aggregating $519,020, $296,399 and $54,611, respectively, and
RMA California and RMA New York had payables for investments purchased of
$31,987,309 and $8,528,880, respectively.
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, 1997, RMA California had net capital loss carryforwards of
$280,026 which includes capital losses acquired by the Fund pursuant to its
acquisition of PW/KP California Tax Exempt Money Fund in the amount of $26,217.
RMA New York had net capital loss carryforwards of $97,826 which includes losses
acquired by the Fund pursuant to its acquisition of PW/KP Municipal Money Market
Series--New York Series in the amount of $5,141. RMA New Jersey had a net
capital loss carryforward of $4,626. 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, 1998 and June
30, 2004, for RMA New York between June 30, 1998 and June 30, 2003 and for RMA
New Jersey between June 30, 2002 and June 30, 2005. To the extent these losses
are used to offset future capital gains, it is probable that the gains so offset
will not be distributed.
17
<PAGE>
NOTES TO FINANCIAL STATEMENTS
BENEFICIAL INTEREST
There is an unlimited amount of $0.001 par value shares of beneficial
interest authorized for each Fund. Transactions in shares of beneficial
interest, at $1.00 per share, were as follows:
<TABLE>
<CAPTION>
FOR THE YEARS ENDED JUNE 30,
----------------------------------
1997 1996
--------------- ---------------
<S> <C> <C>
RMA CALIFORNIA:
Shares sold.................................. 2,758,694,561 2,242,802,568
Shares issued in connection with the
acquisition of PW/KP California Tax
Exempt Money Fund.......................... -- 120,122,110
Shares repurchased........................... (2,754,038,712) (2,231,700,082)
Dividends reinvested......................... 14,493,456 11,696,054
--------------- ---------------
Net increase in shares outstanding........... 19,149,305 142,920,650
--------------- ---------------
--------------- ---------------
RMA NEW YORK:
Shares sold.................................. 1,797,987,498 1,461,429,170
Shares issued in connection with the
acquisition of PW/KP Municipal Money Market
Series--New York Series.................... -- 38,947,877
Shares repurchased........................... (1,786,704,572) (1,444,920,852)
Dividends reinvested......................... 7,862,304 7,001,684
--------------- ---------------
Net increase in shares outstanding........... 19,145,230 62,457,879
--------------- ---------------
--------------- ---------------
</TABLE>
<TABLE>
<CAPTION>
FOR THE YEAR FOR THE EIGHT FOR THE YEAR
ENDED MONTHS ENDED ENDED
JUNE 30, 1997 JUNE 30, 1996 OCTOBER 31, 1995
---------------- ------------- -------------------
<S> <C> <C> <C>
RMA NEW JERSEY:
Shares sold.................................. 270,072,473 151,094,467 191,790,113
Shares repurchased........................... (261,185,868) (145,760,542) (188,445,267)
Dividends reinvested......................... 1,204,278 695,692 860,332
---------------- ------------- -------------------
Net increase in shares outstanding........... 10,090,883 6,029,617 4,205,178
---------------- ------------- -------------------
---------------- ------------- -------------------
</TABLE>
18
<PAGE>
PAINEWEBBER RMA CALIFORNIA MUNICIPAL MONEY FUND
FINANCIAL HIGHLIGHTS
Selected data for a share of beneficial interest outstanding throughout each
year is presented below:
<TABLE>
<CAPTION>
FOR THE YEARS ENDED JUNE 30,
-----------------------------------------------------------------
1997 1996 1995 1994 1993
-------- -------- -------- -------- --------
<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.................................... 0.028 0.029 0.029 0.018 0.019
Dividends from net investment income..................... (0.028) (0.029) (0.029) (0.018) (0.019)
-------- -------- -------- -------- --------
Net asset value, end of year............................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------- --------
-------- -------- -------- -------- --------
Total investment return (1).............................. 2.87% 2.89% 2.91% 1.78% 1.88%
-------- -------- -------- -------- --------
-------- -------- -------- -------- --------
Ratios/Supplemental Data:
Net assets, end of year (000's)........................ $492,915 $473,726 $330,937 $295,183 $290,367
Expenses to average net assets......................... 0.62% 0.70%(2) 0.69% 0.69% 0.72%
Net investment income to average net assets............ 2.83% 2.82%(2) 2.87% 1.79% 1.86%
</TABLE>
- ------------------
(1) Total investment return is calculated assuming a $1,000 investment on the
first day of each year reported, reinvestment of all dividends and
distributions at net asset value on the payable dates, and a sale at net
asset value on the last day of each year reported.
(2) These ratios include non-recurring acquisition expenses of 0.03%.
19
<PAGE>
PAINEWEBBER RMA NEW YORK MUNICIPAL MONEY FUND
FINANCIAL HIGHLIGHTS
Selected data for a share of beneficial interest outstanding throughout each
year is presented below:
<TABLE>
<CAPTION>
FOR THE YEARS ENDED JUNE 30,
--------------------------------------------------------------------
1997 1996 1995 1994 1993
-------- -------- -------- -------- --------
<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.................................. 0.028 0.029 0.028 0.017 0.018
Dividends from net investment income................... (0.028) (0.029) (0.028) (0.017) (0.018)
-------- -------- -------- -------- --------
Net asset value, end of year........................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
-------- -------- -------- -------- --------
-------- -------- -------- -------- --------
Total investment return (1)............................ 2.85% 2.91% 2.81% 1.70% 1.82%
-------- -------- -------- -------- --------
-------- -------- -------- -------- --------
Ratios/Supplemental Data:
Net assets, end of year (000's)...................... $274,338 $255,177 $192,799 $165,111 $116,604
Expenses to average net assets before waiver from
adviser............................................ 0.77% 0.74%(2) 0.71% 0.75% 0.79%
Expenses to average net assets after waiver from
adviser............................................ 0.67% 0.72%(2) 0.68% 0.68% 0.68%
Net investment income to average net assets before
waiver from adviser................................ 2.71% 2.80%(2) 2.78% 1.67% 1.70%
Net investment income to average net assets after
waiver from adviser................................ 2.81% 2.82%(2) 2.81% 1.74% 1.81%
</TABLE>
- ------------------
(1) Total investment return is calculated assuming a $1,000 investment on the
first day of each year reported, reinvestment of all dividends and
distributions at net asset value on the payable dates, and a sale at net
asset value on the last day of each year reported.
(2) These ratios include non-recurring acquisition expenses of 0.04%.
20
<PAGE>
PAINEWEBBER RMA NEW JERSEY MUNICIPAL MONEY FUND
FINANCIAL HIGHLIGHTS
Selected data for a share of beneficial interest outstanding throughout each
period is presented below:
<TABLE>
<CAPTION>
FOR THE
EIGHT
FOR THE MONTHS ENDED FOR THE YEARS ENDED OCTOBER 31,
YEAR ENDED JUNE 30, -----------------------------------------------
JUNE 30, 1997 1996 1995 (2) 1994 1993 1992
------------- ------------ -------- ------- ------- -------
<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..................... 0.026 0.017 0.027 0.018 0.016 0.025
Dividends from net investment income...... (0.026) (0.017) (0.027) (0.018) (0.016) (0.025)
------- -------- -------- ------- ------- -------
Net asset value, end of period............ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------- -------- -------- ------- ------- -------
------- -------- -------- ------- ------- -------
Total investment return (1)............... 2.65% 1.71% 2.75% 1.76% 1.65% 2.49%
------- -------- -------- ------- ------- -------
------- -------- -------- ------- ------- -------
Ratios/Supplemental Data:
Net assets, end of period (000's)....... $52,324 $ 42,233 $ 36,206 $31,981 $36,473 $27,625
Expenses to average net assets.......... 0.81% 0.95%* 0.93% 0.85% 0.93% 0.86%
Net investment income to average net
assets................................ 2.63% 2.56%* 2.73% 1.74% 1.63% 2.51%
</TABLE>
- ------------------
* Annualized
(1) Total investment return is calculated assuming a $1,000 investment on the
first day of each period reported, reinvestment of all dividends and
distributions at net asset value on the payable dates, and a sale at net
asset value on the last day of each period reported. Total investment
returns for periods of less than one year have not been annualized.
(2) Investment advisory functions for the Fund were transferred from Kidder,
Peabody Asset Management, Inc. to PaineWebber on January 30, 1995.
21
<PAGE>
PAINEWEBBER MANAGED MUNICIPAL TRUST
PAINEWEBBER MUNICIPAL MONEY MARKET SERIES
REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
The Board of Trustees and Shareholders
PaineWebber Managed Municipal Trust
PaineWebber Municipal Money Market Series
We have audited the accompanying statements 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) and
PaineWebber Municipal Money Market Series (comprising, PaineWebber RMA New
Jersey Municipal Money Fund), (collectively, the 'Funds'), as of June 30, 1997,
and the related statements of operations for the year then ended, the statement
of changes in net assets 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 and financial highlights. Our procedures included confirmation of
investments owned at June 30, 1997 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 and
PaineWebber Municipal Money Market Series at June 30, 1997, the results of their
operations for the year then ended, the changes in their net assets and the
financial highlights for each of the indicated periods, in conformity with
generally accepted accounting principles.
/S/ ERNST & YOUNG LLP
New York, New York
August 18, 1997
22
<PAGE>
PAINEWEBBER MANAGED MUNICIPAL TRUST
PAINEWEBBER MUNICIPAL MONEY MARKET SERIES
TAX INFORMATION--(UNAUDITED)
We are required by Subchapter M of the Internal Revenue Code of 1986, as
amended, to advise you within 60 days of each Fund's fiscal year end (June 30,
1997) as to the federal tax status of distributions received by shareholders
during such fiscal period. Accordingly, we are advising you that all dividends
paid during the period by RMA California, RMA New York and RMA New Jersey were
federally exempt interest dividends. RMA New Jersey had 15.31% of the dividends
paid subject to the federal alternative minimum tax for individual taxpayers
during the period. Also, all dividends paid by the Funds were exempt from
personal income taxes from their respective States.
Because each Fund's fiscal year is not the calender year, another
notification will be sent in respect of calendar year 1997. 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 1998. Shareholders are advised to
consult their own tax advisers with respect to the tax consequences of their
investment in each respective Fund.
23
<PAGE>
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<PAGE>
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<PAGE>
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<PAGE>
- --------------------------------------------------------------------------------
TRUSTEES
E. Garrett Bewkes, Jr.
Chairman
Margo N. Alexander
Richard Q. Armstrong
Richard R. Burt
Mary C. Farrell
Meyer Feldberg
George W. Gowen
Frederic V. Malek
Carl W. Schafer
OFFICERS
Margo N. Alexander
President
Victoria E. Schonfeld
Vice President
Dianne E. O'Donnell
Vice President and Secretary
Paul H. Schubert
Vice President and Treasurer
Dennis L. McCauley
Vice President
INVESTMENT ADVISER,
ADMINISTRATOR AND DISTRIBUTOR
PaineWebber Incorporated
1285 Avenue of the Americas
New York, New York 10019
SUB-ADVISER AND SUB-ADMINISTRATOR
Mitchell Hutchins Asset Management Inc.
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.
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PAINEWEBBER
ANNUAL REPORT
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RMA MUNICIPAL
MONEY FUNDS
RMA CALIFORNIA MUNICIPAL MONEY FUND
RMA NEW YORK MUNICIPAL MONEY FUND
RMA NEW JERSEY MUNICIPAL MONEY FUND
June 30, 1997
PAINEWEBBER
(c)1997 PaineWebber Incorporated
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