<PAGE>
RMA Municipal Money Funds Semi-Annual Report
February 17, 1998
Dear Shareholder,
We are pleased to present you with the semiannual 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 six-month period
ended December 31, 1997.
General Market Overview
Throughout this period, the U.S. economy, in its seventh year of expansion,
continued to demonstrate renewed vigor, with consecutive quarterly Gross
Domestic Product growth reminiscent of 1994. Further preemptive tightening by
the Federal Reserve (the "Fed") was widely anticipated, though not realized, as
domestic demand remained strong amidst a historically low, and declining,
unemployment rate. Short-term interest rates remained at 5.5% throughout this
period. However, Asia's currency and financial crisis sent a disinflationary
impulse through the global economy late in the year, resulting in a change in
sentiment in the U.S. Treasury market. As a result, the Federal Reserve appears
to have adopted a "wait and see" stance, dampening any potential rally in the
short end of the market. In the fourth quarter of 1997, the two-year Treasury
yield dropped to 5.64% from 5.78% in the prior quarter, and the yield on the
30-Year Treasury ended 1997 at 5.92%, down from 6.04% in the prior quarter. The
bottom line was that the yield curve flattened with a yield spread of less than
30 basis points. The bond market, as measured by the Lehman Brothers Aggregate
Index, posted a healthy 9.7% return by the end of the year, fueled in part by
foreign investment in U.S. government debt. Corporate bonds underperformed
Treasurys and mortgage-backed securities on a duration-adjusted basis (corporate
bond spreads had widened due to technical weakness caused by concerns over the
Asian economic crisis). U.S. government securities performed well in this
environment. Longer maturity issues outperformed shorter-term issues as the
yield curve flattened significantly. Mortgage-backed securities also posted
strong performance for the year, outperforming the major bond markets on a
duration-adjusted basis by a fairly wide margin. High-yield securities, which
had disappointing performance late in the year, significantly outperformed
high-grades for the full year.
1
<PAGE>
SemiAnnual Report
Portfolio Review
Throughout the period, the Funds maintained slightly higher average weighted
maturities than their peers, in response to economic data indicating low
inflation with vigorous economic growth.
- --------------------------------------------------------------------------------
PaineWebber RMA California Municipal Money Fund
PaineWebber RMA California Municipal Money Fund's net assets totaled $562.1
million as of December 31, 1997. The Fund's current yield for the seven-day
period ended December 31, 1997 was 3.08%. The Fund maintained a weighted average
maturity of 56 days as of December 31, 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 totaled $324.8
million as of December 31, 1997. The Fund's current yield for the seven-day
period ended December 31, 1997 was 3.28%. The Fund maintained a weighted average
maturity of 50 days as of December 31, 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 totaled $66.4
million as of December 31, 1997. The Fund's current yield for the seven-day
period ended December 31, 1997 was 2.97%. The Fund maintained a weighted average
maturity of 57 days as of December 31, 1997. In addition, the Fund had dividends
paid subject to the alternative minimum tax of 22.91% for the period ended
December 31, 1997.
2
<PAGE>
RMA Municipal Money Funds SemiAnnual Report
Outlook
In 1998, we expect the economy will continue to grow at a satisfactory pace with
subdued inflation. We expect the Fed to remain on hold until the shockwaves from
the Asian crisis filter down. As of January 2, 1998, the federal funds rate
remained at 5.5%, while commercial paper was at approximately a 5.55% discount
level for the one-month product, with a yield ranging from 5.70% to 5.75% for
the one-year product. Given our view that the current economic environment will
not change dramatically, we plan to maintain the Funds' current positions.
Although we are interested in maintaining higher yields, we will not do so by
sacrificing the Funds' emphasis on security, 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 six month period ended December 31, 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 December 31, 1997 (unaudited)
<TABLE>
<CAPTION>
Principal
Amount Maturity Interest
(000) Dates Rates Value
- --------- -------- -------- ------------
MUNICIPAL BONDS AND NOTES--67.65%
<S> <C> <C> <C>
$ 9,000 California State Revenue Anticipation Notes.................................... 06/30/98 4.500% $9,028,133
7,700 California Community College Financing Authority
Tax and Revenue Anticipation Bonds (Series B)................................ 09/30/98 4.500 7,740,635
4,200 California Educational Facilities Authority (Point Nazarene College)........... A 3.700 4,200,000
3,950 California Educational Facilities Authority (Stanford University-Series L-3)... A 3.450 3,950,000
8,800 California Health Facilities Financing Authority (Adventist Health-Series A)... A 3.800 8,800,000
5,100 California Health Facilities Financing Authority (Adventist Health-Series B)... A 3.850 5,100,000
5,700 California Health Facilities Financing Authority (Kaiser Permanente-Series A).. A 3.450 5,700,000
6,700 California Health Facilities Financing Authority (Kaiser Permanente-Series B).. A 3.450 6,700,000
6,000 California Health Facilities Financing Authority
(N.T. Enloe Memorial Hospital-Series A)...................................... A 3.500 6,000,000
2,100 California Health Facilities Financing Authority
(St. Joseph's Health System-Series B)........................................ A 4.800 2,100,000
1,000 California Health Facilities Financing Authority (Sutter Health-Series B)...... A 4.800 1,000,000
1,000 California Health Facilities Financing Authority (Sutter Health-Series C)...... A 4.800 1,000,000
1,200 California Pollution Control Financing Authority
(Pacific Gas & Electric Company-Series C).................................... A 4.900 1,200,000
2,100 California Pollution Control Financing Authority
(Pacific Gas & Electric Company-Series F).................................... A 4.750 2,100,000
4,100 California Statewide Communities Development Authority
Apartment Development Revenue Bonds (Subseries A-1).......................... A 3.450 4,100,000
1,000 California Statewide Communities Development Authority
Apartment Development Revenue Bonds (Subseries A-2).......................... A 3.450 1,000,000
8,400 California Statewide Communities Development Authority
Apartment Development Revenue Bonds (Subseries A-6).......................... A 3.750 8,400,000
3,300 California Statewide Communities Development Authority
Tax and Revenue Anticipation Notes (Series A)................................ 06/30/98 4.500 3,311,111
6,005 California Statewide Communities Development Authority
Tax and Revenue Anticipation Notes (Series B)................................ 09/30/98 4.750 6,042,344
10,900 California Transit Financing Authority......................................... A 3.950 10,900,000
6,950 Alameda Contra Costa Schools Financing Authority Certificates of
Participation (Capital Improvement Funding Projects)......................... A 3.900 6,950,000
18,200 Anaheim Certificates of Participation.......................................... A 3.350 18,200,000
3,400 City of Fresno Tax and Revenue Anticipation Notes.............................. 06/30/98 4.250 3,407,249
5,300 Golden Empire Schools Financing Authority
(Kern High School District-Series A).......................................... A 3.550 5,300,000
5,300 Irvine Improvement Bond Act 1915 Updates Assessment District 85-7-I............ A 3.550 5,300,000
18,300 Irvine Public Facilities and Infrastructure Authority
(Capital Improvement Project)................................................. A 3.800 18,300,000
3,400 Long Beach Tax and Revenue Anticipation Notes.................................. 10/08/98 4.500 3,417,105
3,000 Los Angeles Community Redevelopment Agency
Multifamily Housing Revenue Bonds (Grand Promenade Project).................. A 4.000 3,000,000
7,800 Los Angeles County Pension Obligation (Series A)............................... A 3.350 7,800,000
</TABLE>
4
<PAGE>
PaineWebber RMA California Municipal Money Fund
<TABLE>
<CAPTION>
Principal
Amount Maturity Interest
(000) Dates Rates Value
- --------- -------- -------- ------------
MUNICIPAL BONDS AND NOTES (continued)
<S> <C> <C> <C>
$ 1,700 Los Angeles County Pension Obligation (Series B)............................... A 3.300% $1,700,000
6,000 Los Angeles County Pension Obligation (Series C)............................... A 3.350 6,000,000
9,000 Los Angeles County Tax and Revenue Anticipation Notes (Series A)............... 06/30/98 4.500 9,028,417
13,500 Los Angeles Multi-Family Revenue Bonds (Museum Terrace Apartments-Series H).... A 3.650 13,500,000
4,000 Los Angeles Unified School District Tax and Revenue Anticipation Notes......... 07/01/98 4.500 4,013,369
3,600 Los Angeles Unified School District Certificates of Participation
(Belmont Learning Complex-Series A).......................................... A 3.350 3,600,000
1,520 Los Angeles Wastewater System Revenue Bonds (Pre-refunded with U.S.
Government Securities to 08/01/98 @ 102)..................................... 08/01/98 6.800 1,575,584
6,795 Moorpark Industrial Development Authority (Fred Kavli and Kavlico Corporation). A 3.650 6,795,000
18,510 Newport Beach Health Facilities (Hoag Memorial Hospital)....................... A 5.000 18,510,000
11,750 Newport Beach Health Facilities (Hoag Memorial Hospital-Series A).............. A 5.000 11,750,000
4,200 Newport Beach Health Facilities (Hoag Memorial Hospital-Series B).............. A 5.000 4,200,000
6,500 Newport Beach Health Facilities (Hoag Memorial Hospital-Series C).............. A 5.000 6,500,000
9,000 Northern California Power Agency (Geothermal Project Number 3A)................ A 3.350 9,000,000
5,000 Oakland Unified School District Alameda County
Tax and Revenue Anticipation Notes........................................... 10/28/98 4.250 5,015,412
2,510 Orange County Apartment Development Revenue Bonds (Niguel Village-Series AA)... A 3.500 2,510,000
6,040 Orange County Apartment Development Revenue Bonds (Niguel Village-Series U).... A 3.650 6,040,000
5,900 Riverside County Tax and Revenue Anticipation Notes (Series A)................. 06/30/98 4.500 5,915,376
1,280 Sacramento County Certificates of Participation (Administration Center and
Courthouse Project).......................................................... A 3.800 1,280,000
3,500 San Bernardino County Tax and Revenue Anticipation Notes (Series A)............ 06/30/98 4.500 3,510,800
5,000 San Diego County Tax and Revenue Anticipation Notes............................ 09/30/98 4.500 5,024,000
8,100 San Francisco Redevelopment Agency Multi-Family Housing
Revenue Bonds (Fillmore Center Project B-1).................................. A 3.350 8,100,000
2,030 San Francisco Redevelopment Agency Multi-Family Housing
Revenue Bonds (Rincon Center-Project B)...................................... A 3.350 2,030,000
4,700 San Francisco Redevelopment Financing Authority (Yerba Buena Garden)........... A 3.900 4,700,000
4,700 San Jose Redevelopment Agency Revenue Bonds
(Merged Area Redevelopment Project Series B)................................. A 3.400 4,700,000
3,000 Santa Barbara County Schools Financing Authority
Tax and Revenue Anticipation Notes........................................... 06/30/98 4.250 3,006,397
2,500 Santa Barbara County Tax and Revenue Anticipation Notes (Series A) 10/01/98 4.500 2,511,152
3,038 Santa Clara County El Camino Hospital District Hospital Facilities
Authority (Aces Lease Valley Medical Center Project-Series A)................ A 3.500 3,038,000
19,100 Santa Clara Financing Authority (VMC Facility Replacement Project B)........... A 3.350 19,100,000
5,920 Simi Valley Public Financing Authority......................................... A 3.550 5,920,000
</TABLE>
5
<PAGE>
PaineWebber RMA California Municipal Money Fund
<TABLE>
<CAPTION>
Principal
Amount Maturity Interest
(000) Dates Rates Value
- --------- -------- -------- ------------
MUNICIPAL BONDS AND NOTES (concluded)
<S> <C> <C> <C>
$ 8,000 South Coast California Local Education Agencies
Tax and Revenue Anticipation Notes (Series A)................................ 06/30/98 4.500% $ 8,026,585
5,000 Southern California Public Power Authority Project Revenue
(Palo Verde Project C)....................................................... A 3.350 5,000,000
3,350 Val Verde Unified School District Tax and Revenue Anticipation Notes........... 10/29/98 4.500 3,367,286
5,750 Vallejo Unified School District Tax and Revenue Anticipation Notes............. 10/22/98 4.250 5,767,369
3,440 Visalia Public Finance Authority Revenue Bonds (Golf Course Improvement)....... A 4.050 3,440,000
6,000 Puerto Rico Commonwealth Tax and Revenue Anticipation Notes (Series A)......... 07/30/98 4.500 6,025,358
-------------
Total Municipal Bonds And Notes (cost--$380,246,682) 380,246,682
-------------
<CAPTION>
TAX EXEMPT COMMERCIAL PAPER--31.89%
<S> <C> <C> <C>
19,500 California State General Obligation............................................ 01/23/98 to 3.500 to
02/26/98 3.750 19,500,000
6,500 California Educational Facilities Authority
(Carnegie Institute of Washington-Series B).................................. 02/10/98 to 3.650 to
02/19/98 3.750 6,500,000
8,700 California Pollution Control Financing Authority
(Dow Chemical Company Project)............................................... 01/22/98 to
01/28/98 3.750 8,700,000
1,000 California Pollution Control Financing Authority (Pacific Gas & Electric)...... 01/23/98 3.800 1,000,000
7,208 State of California Department of Water Resources.............................. 01/20/98 to 3.650 to
03/27/98 3.750 7,208,000
7,100 Anaheim Electric Authority..................................................... 02/23/98 to 3.500 to
03/11/98 3.700 7,100,000
4,000 Contra Costa County Water District (Series A).................................. 01/22/98 to 3.550 to
01/29/98 3.700 4,000,000
12,000 East Bay Municipal Utility District............................................ 02/05/98 to 3.650 to
02/24/98 3.750 12,000,000
4,000 Los Angeles County Capital Asset Corporation................................... 01/26/98 3.700 4,000,000
23,100 Los Angeles Department of Water & Power........................................ 01/27/98 to 3.500 to
04/09/98 3.700 23,100,000
7,600 Los Angeles Transportation Commission (Series A)............................... 02/09/98 to 3.700 to
02/26/98 3.750 7,600,000
4,475 Los Angeles Wastewater System.................................................. 01/30/98 to
02/06/98 3.600 4,475,000
7,500 Metropolitan Water District of Southern California............................. 02/19/98 to
03/05/98 3.650 7,500,000
7,300 Modesto Irrigation District.................................................... 03/16/98 to 3.600 to
04/08/98 3.650 7,300,000
6,000 Orange County Local Transportation Authority................................... 02/10/98 3.750 6,000,000
2,200 Regents of the University of California (Series A)............................. 04/17/98 3.700 2,200,000
22,479 Regents of the University of California (Series B)............................. 01/21/98 to 3.500 to
02/27/98 3.700 22,479,000
4,000 Riverside County General Obligation (Series B)................................. 04/20/98 3.700 4,000,000
6,111 Sacramento Municipal Utility District.......................................... 01/20/98 to 3.550 to
04/07/98 3.750 6,111,000
2,000 San Diego Industrial Revenue (San Diego Electric & Gas)........................ 02/06/98 3.700 2,000,000
3,500 San Diego Regional Transportation Commission................................... 01/20/98 3.700 3,500,000
13,000 Puerto Rico Commonwealth Government Development Bank........................... 01/21/98 to 3.650 to
05/08/98 3.750 13,000,000
-------------
Total Tax Exempt Commercial Paper (cost--$179,273,000)......................... 179,273,000
-------------
Total Investments (cost--$559,519,682, which approximates cost
for federal income tax purposes)--99.54%..................................... 559,519,682
Other assets in excess of liabilities--0.46%................................... 2,613,430
-------------
Net Assets (applicable to 562,626,220 shares of beneficial
interest at $1.00 per share)--100.00%........................................ $ 562,133,112
=============
</TABLE>
- -------------
A--Variable Rate Demand Notes are payable on demand. The interest rates shown
are the current rates as of December 31, 1997 and reset periodically.
Weighted Average Maturity--56 days
See accompanying notes to financial statements
6
<PAGE>
PaineWebber RMA New York Municipal Money Fund
Statement of Net Assets
December 31, 1997 (unaudited)
<TABLE>
<CAPTION>
Principal
Amount Maturity Interest
(000) Dates Rates Value
- --------- -------- ----------- -----
MUNICIPAL BONDS AND NOTES-85.74%
<S> <C> <C> <C>
$ 7,135 New York State..................................................... 10/15/98 to 11/15/98 4.500 to 7.800% $ 7,246,083
2,700 New York State Dormitory Authority
(Masonic Hall Asylum)............................................ A 3.550 2,700,000
6,597 New York State Dormitory Authority
(Metropolitan Museum of Art)..................................... A 3.500 6,597,000
6,765 New York State Dormitory Authority
(New York Public Library)........................................ A 3.500 6,765,000
6,000 New York State Energy Research & Development Authority
(Central Hudson Gas & Electric).................................. A 3.950 6,000,000
2,000 New York State Energy Research & Development Authority
(LILCO) Adjustable Rate Bonds.................................... 03/01/98 3.600 2,000,000
1,700 New York State Energy Research & Development Authority
(New York State Electric & Gas Corporation)
Adjustable Rate Bonds............................................ 12/01/98 3.800 1,700,000
2,400 New York State Energy Research & Development Authority
(Niagara Mohawk)................................................. A 4.500 to 4.750 2,400,000
10,700 New York State Energy Research & Development Authority
Pollution Control Revenue (Orange and Rockland Project A)........ A 3.550 10,700,000
9,500 New York State Energy Research & Development Authority Gas
Facilities Revenue (Brooklyn Union Gas Company).................. A 3.700 to 4.000 9,500,000
2,000 New York State Energy Research And Development Authority Pollution
Control Revenue (Rochester Gas & Electricity).................... A 3.550 2,000,000
4,500 New York State Housing Finance Agency (Mount Sinai Medical
Center Project).................................................. A 3.900 4,500,000
11,800 New York State Housing Finance Agency (Normandie Project).......... A 4.000 11,800,000
3,835 New York State Housing Finance Agency Revenue
(Hospital Special Surgery Staff)................................. A 4.000 3,835,000
9,700 New York State Local Government Assistance Corporation............. A 3.500 9,700,000
2,000 New York State Medical Care Facilities Finance Agency Revenue
Hospital and Nursing Home Series A (Catholic Medical Center
of Brooklyn and Queens Inc.) (Pre-refunded with U.S. Government
Securities to 2/15/98 @ 102) .................................... 02/15/98 8.300 2,050,737
1,900 New York State Medical Facilities Financing Agency
(Pooled Equipment Loan Program).................................. A 3.650 1,900,000
1,500 New York State Power Adjustable Rate Bonds......................... 03/01/98 3.750 1,500,000
1,300 New York State Thruway Authority General Revenue................... 01/02/98 4.950 1,300,000
1,235 Albany Industrial Development Agency (Vulcan Investors)............ 07/01/98 4.100 1,235,000
5,857 Babylon Bond Anticipation Notes.................................... 03/31/98 4.750 5,866,396
1,000 Brentwood Union Free School District Tax Anticipation Notes........ 06/30/98 4.250 1,001,658
1,612 Cattaraugus County Bond Anticipation Notes......................... 07/23/98 4.500 1,615,443
2,100 Chemung County Industrial Development Agency
(Arnot Ogden Medical Center)..................................... A 4.050 2,100,000
3,000 Dover Union Free School District Bond Anticipation Notes........... 09/11/98 4.250 3,006,395
4,585 Dutchess County Bond Anticipation Notes............................ 02/27/98 4.000 4,587,900
1,825 East Meadow Union Free School District Bond Anticipation Notes..... 06/15/98 4.250 1,828,229
2,000 Elmira City Bond Anticipation Notes................................ 03/30/98 4.000 2,001,169
4,850 Erie County Revenue Anticipation Notes............................. A 3.550 4,850,000
</TABLE>
7
<PAGE>
PaineWebber RMA New York Municipal Money Fund
<TABLE>
<CAPTION>
Principal
Amount Maturity Interest
(000) Dates Rates Value
- --------- -------- ----------- -----
MUNICIPAL BONDS AND NOTES (continued)
<S> <C> <C> <C>
$ 2,000 Freeport Union Free School District Tax Anticipation Notes......... 06/29/98 4.250% $ 2,002,359
1,720 Great Neck North Water Authority Systems........................... A 3.700 1,720,000
1,646 Guilderland Central School District Bond Anticipation Notes........ 07/15/98 4.250 1,648,368
2,000 Harrison Central School District Bond Anticipation Notes........... 03/19/98 4.000 2,001,025
2,000 Hempstead Union Free District Tax Anticipation Notes............... 06/30/98 4.250 2,003,312
2,000 Lindenhurst Union Free School District Tax Anticipation Notes...... 06/24/98 4.250 2,002,107
2,000 Longwood Central School District at Middle Island Tax
Anticipation Notes............................................... 06/30/98 4.250 2,002,311
2,900 Metropolitan Transportation Authority.............................. 07/01/98 8.000 3,015,448
2,150 Monroe County Industrial Development Agency Revenue
(Canal Ponds Park)............................................... A 4.000 2,150,000
1,000 Monroe County New York Series General Obligation Bond.............. 03/09/98 3.700 1,000,000
7,900 Municipal Assistance Corporation for New York City................. A 3.950 7,898,930
1,530 Municipal Assistance Corporation for New York City................. 07/01/98 4.000 1,532,173
3,000 Nassau County Industrial Development Agency Civic Facility
(Cold Spring Harbor Laboratory).................................... A 4.850 3,000,000
4,000 Nassau County Revenue Anticipation Notes........................... 03/10/98 4.250 4,002,903
1,500 Nassau County Tax Anticipation Notes Series C...................... 12/22/98 4.250 1,505,896
9,700 New York City...................................................... A 4.000 to 5.100 9,700,000
4,500 New York City Health and Hospital Corporation Revenue
(Health Systems)................................................. A 3.550 4,500,000
4,450 New York City Housing Development Corporation
(Columbus Gardens)............................................... A 4.050 4,450,000
200 New York City Housing Development Corporation
(East 17th Street Project)....................................... A 4.950 200,000
1,500 New York City Housing Development Corporation
(James Tower Project)............................................ A 3.600 1,500,000
3,015 New York City Housing Development Corporation
(Parkgate Tower Project)......................................... A 3.600 3,015,000
2,550 New York City Housing Development Corporation
(Upper Fifth Avenue Project)..................................... A 3.750 2,550,000
3,000 New York City Industrial Development Agency (Calhoun School)....... A 4.000 3,000,000
4,200 New York City Industrial Development Agency (JFK Field Hotel)...... A 3.650 4,200,000
6,400 New York City Industrial Development Agency (LaGuardia Project).... A 3.650 6,400,000
1,000 New York City Industrial Development Agency Civic Facility
(American Civil Liberties)....................................... A 3.600 1,000,000
5,960 New York City Municipal Water Finance Authority.................... A 4.150 to 5.100 5,960,000
6,850 New York City Trust for Cultural Resources (American Museum
of Natural History).............................................. A 3.550 6,850,000
3,400 New York City Trust for Cultural Resources (Carnegie Hall)......... A 3.650 3,400,000
4,100 Niagara Falls Toll Bridge Commission............................... A 3.550 4,100,000
3,100 Onondaga County Industrial Development Agency (Edgcomb Metals
Company Project)................................................. A 4.150 3,100,000
6,025 Riverhead Central School District Tax Anticipation Notes........... 06/26/98 4.375 6,035,397
</TABLE>
8
<PAGE>
PaineWebber RMA New York Municipal Money Fund
<TABLE>
<CAPTION>
Principal
Amount Maturity Interest
(000) Dates Rates Value
- --------- -------- ----------- -----
MUNICIPAL BONDS AND NOTES (concluded)
<S> <C> <C> <C>
$ 6,000 Rotterdam Industrial Development Agency (Rotterdam
Industrial Park Project)......................................... A 3.900% $ 6,000,000
2,000 Sachem Central School District Holbrook Tax Anticipation
Notes............................................................ 06/25/98 4.250 2,003,320
1,500 Seneca County Industrial Development Agency (N.Y.
Chiropractic College)............................................ A 3.700 1,500,000
1,500 Smithtown Central School District Tax Anticipation Notes........... 06/29/98 4.500 1,504,249
14,500 Suffolk County Water Authority Bond Anticipation Notes............. A 3.600 14,500,000
4,500 Triborough Bridge and Tunnel Authority Special..................... A 3.550 4,500,000
1,000 West Babylon Union Free School District Tax Anticipation Notes..... 06/25/98 4.250 1,001,381
9,200 Yonkers Industrial Development Agency (Consumers Union Facility)... A 3.500 9,200,000
3,500 Puerto Rico Commonwealth Aqueduct and Sewer Authority.............. 07/01/98 4.400 3,506,680
5,000 Puerto Rico Commonwealth Tax and Revenue Anticipation Notes........ 07/30/98 4.500 5,021,132
------------
Total Municipal Bonds and Notes (cost--$278,468,001)........................ 278,468,001
------------
<CAPTION>
TAX EXEMPT COMMERCIAL PAPER--14.40%
<S> <C> <C> <C>
14,600 New York State Dormitory Authority................................. 01/26/98 to 04/08/98 3.600 to 3.700 14,600,000
6,650 New York State Power Authority (Sloan Kettering)................... 01/23/98 to 03/06/98 3.700 to 3.850 6,650,000
3,500 New York State Series T............................................ 02/24/98 3.650 3,500,000
5,500 Municipal Assistance Company for New York (Series F)............... 02/05/98 to 04/09/98 3.650 to 3.800 5,500,000
7,700 New York City...................................................... 03/13/98 to 05/11/98 3.800 7,700,000
7,500 New York City Municipal Water Finance Authority.................... 02/09/98 to 02/27/98 3.750 to 3.800 7,500,000
1,300 Puerto Rico Commonwealth Government Development Bank............... 05/08/98 3.700 1,300,000
------------
Total Tax Exempt Commercial Paper (cost--$46,750,000)....................... 46,750,000
------------
Total Investments (cost--$325,218,001, which approximates cost for federal
income tax purposes)--100.14%............................................. 325,218,001
Liabilities in excess of other assets--(0.14)%.............................. (452,388)
------------
Net Assets (applicable to 324,987,179 shares of beneficial interest at
$1.00 per share)--100.00%................................................. $324,765,613
============
</TABLE>
- --------------
A--Variable Rate Demand Notes are payable on demand. The interest rates shown
are the current rates as of December 31, 1997 and reset periodically.
Weighted Average Maturity--50 days
9
<PAGE>
PaineWebber RMA New Jersey Municipal Money Fund
Statement of Net Assets
December 31, 1997 (unaudited)
<TABLE>
<CAPTION>
Principal
Amount Maturity Interest
(000) Dates Rates Value
- --------- -------- ----------- -----
MUNICIPAL BONDS AND NOTES--69.34%
<S> <C> <C> <C>
$ 625 New Jersey State................................................... 04/01/98 9.400% $ 633,446
800 New Jersey Economic and Industrial Development Authority
(Toys "R" Us, Incorporated)....................................... A 4.750 800,000
550 New Jersey Economic Development Authority.......................... A 4.000 550,000
400 New Jersey Economic Development Authority
(400 International Drive Partners)................................ A 4.700 400,000
850 New Jersey Economic Development Authority
(Bears Series A).................................................. A 4.000 850,000
1,375 New Jersey Economic Development Authority
(Brach/Jersey Avenue Project)..................................... A 3.650 1,375,000
1,600 New Jersey Economic Development Authority
(Church and Dwight Company Project)............................... A 3.450 1,600,000
1,447 New Jersey Economic Development Authority
(Curtiss Wright Flight)........................................... A 3.550 1,447,000
700 New Jersey Economic Development Authority
(El Dorado Terminals Company)..................................... A 5.000 700,000
100 New Jersey Economic Development Authority
(Exxon Project)................................................... A 4.800 100,000
3,000 New Jersey Economic Development Authority
(Natural Gas Company Project Series A)............................ A 3.350 3,000,000
4,700 New Jersey Economic Development Authority
(Public Service Electric & Gas Company)........................... A 3.350 to 3.600 4,700,000
1,000 New Jersey Economic Development Authority
Thermal Energy Facilities Revenue................................ A 4.100 1,000,000
300 New Jersey Economic Development Authority
(W.Y. Plastic Products Corporation Project)....................... A 3.550 300,000
1,300 New Jersey Economic Development Authority Water Facilities Revenue
(Elizabethtown Water Company Project A)........................... A 3.600 1,300,000
500 New Jersey Economic Development Authority Water Facilities Revenue
(Elizabethtown Water Company Project B)........................... A 3.550 500,000
1,000 New Jersey Economic Development Authority Water Facilities Revenue
(Thermal Energy Limited Partnership).............................. A 3.450 1,000,000
800 New Jersey Economic Development Authority Water Facilities Revenue
(United Water New Jersey Incorporated Project B).................. A 4.750 800,000
1,000 New Jersey State Educational Facilities Authority.................. A 3.500 1,000,000
1,000 New Jersey State Transportation Trust Fund Authority Revenue
(Transportation Systems Series A)................................. 12/15/98 5.000 1,011,385
3,500 New Jersey State Turnpike Authority................................ A 3.450 3,500,000
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 1,243,059
1,000 Bernardsville New Jersey Bond Anticipation Notes................... 04/16/98 4.500 1,001,798
1,350 Clifton New Jersey Bond Anticipation Notes......................... 06/25/98 4.250 1,352,550
1,030 East Orange New Jersey............................................. 07/01/98 4.100 1,031,232
500 Essex County Bond Anticipation Notes............................... 08/07/98 4.250 500,977
</TABLE>
10
<PAGE>
PaineWebber RMA New Jersey Municipal Money Fund
<TABLE>
<CAPTION>
Principal
Amount Maturity Interest
(000) Dates Rates Value
- --------- -------- ----------- -----
MUNICIPAL BONDS AND NOTES (concluded)
<S> <C> <C> <C>
$ 500 Essex County Improvement Authority Revenue
(County Asset Sale)............................................... A 3.500% $ 500,000
1,400 Essex County Improvement Authority Revenue
(Pooled Governmental Loan Program)................................ A 3.450 1,400,000
1,000 Jersey City Bond Anticipation Notes................................ 09/18/98 4.375 1,003,321
400 Mercer County Improvement Authority Revenue
(Pooled Government Loan Program).................................. A 3.450 400,001
1,000 Middlesex County Tax and Bond Anticipation Notes................... 02/18/98 4.000 1,000,571
200 Middlesex General Obligation Bonds................................. 01/15/99 4.450 200,970
500 Monmouth County General Improvement Bonds.......................... 08/01/98 6.620 507,986
690 Morris County General Obligation Bonds............................. 07/15/98 6.000 698,106
1,000 Pleasantville School District Temporary Notes...................... 08/28/98 4.250 1,002,743
1,000 Randolph Township Bond Anticipation Notes.......................... 09/04/98 4.250 1,002,918
400 Salem County Pollution Control Financing
(Atlantic City Electric B)....................................... A 3.600 400,000
1,900 South Plainfield Bond Anticipation Notes........................... 07/22/98 4.250 1,902,320
1,300 Union County Pollution Control Finance Authority
(Exxon Corporation).............................................. A 4.700 to 4.750 1,300,000
1,000 Woodbridge Township Bond Anticipation Notes........................ 07/01/98 4.250 1,002,098
1,500 Puerto Rico Commonwealth Government Development Bank............... A 3.350 1,500,000
500 Puerto Rico Commonwealth Government Development Bank
Tax & Revenue Anticipation Notes Series A........................ 07/30/98 4.500 502,113
------------
Total Municipal Bonds and Notes (cost--$46,019,594)......................... 46,019,594
------------
Tax Exempt Commercial Paper--30.48%
2,700 New Jersey Economic Development Authority
(Logan 1992 Project)............................................. 01/23/98 to 02/20/98 3.600 to 3.550 2,700,000
1,000 New Jersey Economic Development Authority
Industrial and Economic Development Revenue
(Princeton University)........................................... 01/09/98 3.500 1,000,000
9,500 New Jersey State Series 1998A...................................... 01/04/98 to 05/12/98 3.700 to 3.850 9,500,000
250 Port Authority of New York and New Jersey.......................... 01/16/98 3.750 250,000
5,275 Port Authority of New York and New Jersey.......................... A 3.500 to 5.100 5,275,000
500 Puerto Rico Industrial Med and Environment......................... 03/10/98 3.750 500,000
1,000 Puerto Rico Commonwealth Government Development Bank............... 01/8/98 3.800 1,000,000
------------
Total Tax Exempt Commercial Paper (cost--$20,225,000)....................... 20,225,000
------------
Total Investments (cost--$66,244,594, which approximates cost
for federal income tax purposes)--99.82%.................................. 66,244,594
Other assets in excess of liabilities--0.18%................................ 120,800
------------
Net Assets (applicable to 66,370,019 shares of beneficial
interest at $1.00 per share)--100.00%..................................... $ 66,365,394
============
</TABLE>
- ----------------
A--Variable Rate Demand Notes are payable on demand. The interest rates shown
are the current rates as of December 31, 1997 and reset periodically.
Weighted Average Maturity--57 days
See accompanying notes to financial statements
11
<PAGE>
PaineWebber Managed Municipal Trust
PaineWebber Municipal Money Market Series
Statement of Operations
For the Six Months
Ended December 31, 1997
(unaudited)
--------------------------------------
RMA RMA RMA
California New York New Jersey
Municipal Municipal Municipal
Money Fund Money Fund Money Fund
----------- ----------- -----------
Investment income:
Interest ............................. $ 9,726,590 $ 5,930,421 $ 1,042,489
----------- ----------- -----------
Expenses:
Investment advisory and administration 1,299,792 806,996 148,350
Distribution fees .................... 219,827 130,227 35,604
Transfer agency and service fees ..... 81,877 44,771 11,767
Legal and audit ...................... 38,771 30,138 22,565
Custody and accounting ............... 28,285 16,278 3,067
Reports and notices to shareholders .. 20,386 13,875 10,157
Federal and state registration fees .. 18,200 20,981 2,605
Trustees' fees ....................... 5,250 5,250 5,250
Other expenses ....................... 11,791 5,626 3,670
----------- ----------- -----------
1,724,179 1,074,142 243,035
Less: Fee waiver from adviser ........ -- (5,113) --
----------- ----------- -----------
Net expenses ......................... 1,724,179 1,069,029 243,035
----------- ----------- -----------
Net investment income ................ 8,002,411 4,861,392 799,454
Net realized gain from investment
transactions ...................... 2,533 1,262 --
----------- ----------- -----------
Net increase in net assets resulting
from operations .................... $ 8,004,944 $ 4,862,654 $ 799,454
=========== =========== ===========
See accompanying notes to financial statements
12
<PAGE>
Statement of Changes in Net Assets
For the Six
Months Ended For the
December 31, 1997 Year Ended
(unaudited) June 30, 1997
----------------- -------------
PaineWebber RMA California Municipal Money Fund
From operations:
Net investment income ......................... $ 8,002,411 $ 14,906,687
Net realized gain from investment transactions 2,533 40,508
------------- -------------
Net increase in net assets resulting from
operations .................................. 8,004,944 14,947,195
------------- -------------
Dividends to shareholders from:
Net investment income ......................... (8,002,411) (14,906,687)
------------- -------------
Net increase in net assets from beneficial
interest transactions ....................... 69,215,234 19,149,305
------------- -------------
Net increase in net assets .................... 69,217,767 19,189,813
Net Assets:
Beginning of period ........................... 492,915,345 473,725,532
------------- -------------
End of period ................................. $ 562,133,112 $ 492,915,345
============= =============
PaineWebber RMA New York Municipal Money Fund
From operations:
Net investment income ......................... $ 4,861,392 $ 8,151,131
Net realized gain from investment transactions 1,262 15,810
------------- -------------
Net increase in net assets resulting from
operations .................................. 4,862,654 8,166,941
------------- -------------
Dividends to shareholders from:
Net investment income ......................... (4,861,392) (8,151,131)
------------- -------------
Net increase in net assets from beneficial
interest transactions ....................... 50,426,555 19,145,230
------------- -------------
Net increase in net assets .................... 50,427,817 19,161,040
Net Assets:
Beginning of period ........................... 274,337,796 255,176,756
------------- -------------
End of period ................................. $ 324,765,613 $ 274,337,796
============= =============
PaineWebber RMA New Jersey Municipal Money Fund
From operations:
Net investment income ......................... $ 799,454 $ 1,260,379
Net realized loss from investment transactions 0 (118)
------------- -------------
Net increase in net assets resulting from
operations .................................. 799,454 1,260,261
------------- -------------
Dividends to shareholders from:
Net investment income ......................... (799,454) (1,260,379)
------------- -------------
Net increase in net assets from beneficial
interest transactions ....................... 14,041,814 10,090,883
------------- -------------
Net increase in net assets .................... 14,041,814 10,090,765
Net Assets:
Beginning of period ........................... 52,323,580 42,232,815
------------- -------------
End of period ................................. $ 66,365,394 $ 52,323,580
============= =============
See accompanying notes to financial statements
13
<PAGE>
Notes to Financial Statements (unaudited)
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.
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 December 31, 1997, RMA California, RMA New York and RMA New Jersey owed
PaineWebber $225,859, $131,683 and $29,646, respectively, for investment
advisory and administration fees.
14
<PAGE>
Notes to Financial Statements (unaudited)
Mitchell Hutchins Asset Management Inc. ("Mitchell Hutchins"), a wholly
owned asset management 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 six months ended December 31, 1997, PaineWebber voluntarily waived
$5,113 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 certain shareholder services. PaineWebber was compensated for
providing such services at the annual rate of 0.12% of RMA New Jersey's average
daily net assets. For RMA California and RMA New York, PaineWebber was
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 through February 11,
1998. Effective February 12, 1998 this fee became payable at the annual rate of
0.125% of RMA California's and RMA New York's average daily net assets. At
December 31, 1997, RMA California, RMA New York and RMA New Jersey owed
PaineWebber $38,286, $21,162 and $5,670, respectively, for such service fees.
Transfer Agency Service Fees
Prior to August 1, 1997, each Fund paid 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 these
services for the month ended July 31, 1997, PaineWebber earned $4,546, $3,402,
and $185 in service fees from RMA California, RMA New York, and RMA New Jersey,
respectively.
Subsequent to July 31, 1997, PaineWebber provides transfer agency related
services to the Funds pursuant to a delegation of authority from PFPC, Inc., the
Funds' transfer agent, and is compensated for these services by PFPC, Inc., not
the Funds. For the five months ended December 31, 1997, PaineWebber received
from PFPC, Inc., not the funds, approximately 53%, 52% and 58% of the total
transfer agency and related service fees collected by PFPC, Inc. from RMA
California, RMA New York and RMA New Jersey, respectively.
Other Liabilities
At December 31, 1997, RMA California, RMA New York and RMA New Jersey had
dividends payable aggregating $656,762, $388,569 and $78,053, respectively, and
RMA New York and RMA New Jersey had payables for investments purchased of
$2,000,000 and $200,970, 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, RMA New York and RMA New Jersey had net
capital loss carryforwards of $280,026, $97,826 and $4,626, 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, 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, the gains so offset will not be distributed.
15
<PAGE>
Notes to Financial Statements (unaudited)
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:
For the Six For the Year
Months Ended Ended
December 31, 1997 June 30, 1997
----------------- ---------------
RMA California:
Shares sold ...................... 1,374,863,018 2,758,694,561
Shares repurchased ............... (1,313,372,403) (2,754,038,712)
Dividends reinvested ............. 7,724,619 14,493,456
-------------- --------------
Net increase in shares outstanding 69,215,234 19,149,305
============== ==============
RMA New York:
Shares sold ...................... 1,021,601,586 1,797,987,498
Shares repurchased ............... (975,841,191) (1,786,704,572)
Dividends reinvested ............. 4,666,160 7,862,304
-------------- --------------
Net increase in shares outstanding 50,426,555 19,145,230
============== ==============
RMA New Jersey:
Shares sold ...................... 152,449,339 270,072,473
Shares repurchased ............... (139,168,536) (261,185,868)
Dividends reinvested ............. 761,011 1,204,278
-------------- --------------
Net increase in shares outstanding 14,041,814 10,090,883
============== ==============
16
<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 Six
Months Ended
December 31, For the Years Ended June 30,
1997 -------------------------------------------------------------
(unaudited) 1997 1996 1995 1994 1993
------------ --------- --------- -------- --------- ---------
<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 0.015 0.028 0.029 0.029 0.018 0.019
Dividends from net investment income........... (0.015) (0.028) (0.029) (0.029) (0.018) (0.019)
--------- --------- --------- -------- --------- ---------
Net asset value, end of period................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========= ========= ========= ======== ========= =========
Total investment return (1).................... 1.48% 2.87% 2.89% 2.91% 1.78% 1.88%
========= ========= ========= ======== ========= =========
Ratios/Supplemental Data:
Net assets, end of period (000's).............. $562,133 $492,915 $473,726 $330,937 $295,183 $290,367
Expenses to average net assets................. 0.63%* 0.62% 0.70%(2) 0.69% 0.69% 0.72%
Net investment income to average net assets.... 2.91%* 2.83% 2.82%(2) 2.87% 1.79% 1.86%
</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
return for period of less than one year has not been annualized.
(2) These ratios include non-recurring acquisition expenses of 0.03%.
17
<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 Six
Months Ended
December 31, For the Years Ended June 30,
1997 ------------------------------------------------------------
(unaudited) 1997 1996 1995 1994 1993
--------- --------- --------- -------- --------- ---------
<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......................... 0.015 0.028 0.029 0.028 0.017 0.018
Dividends from net investment income.......... (0.015) (0.028) (0.029) (0.028) (0.017) (0.018)
--------- --------- --------- --------- --------- ---------
Net asset value, end of period................ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
========= ========= ========= ========= ========= =========
Total investment return (1)................... 1.52% 2.85% 2.91% 2.81% 1.70% 1.82%
========= ========= ========= ========= ========= =========
Ratios/Supplemental Data:
Net assets, end of period (000's)............. $324,766 $274,338 $255,177 $192,799 $165,111 $116,604
Expenses to average net assets before waiver
from adviser................................ 0.66%* 0.77% 0.74%(2) 0.71% 0.75% 0.79%
Expenses to average net assets net of waiver
from adviser................................ 0.66%* 0.67% 0.72%(2) 0.68% 0.68% 0.68%
Net investment income to average net assets
before waiver from adviser.................. 2.98%* 2.71% 2.80%(2) 2.78% 1.67% 1.70%
Net investment income to average net assets
net of waiver from adviser.................. 2.99%* 2.81% 2.82%(2) 2.81% 1.74% 1.81%
</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
return for periods of less than one year has not been annualized.
(2) These ratios include non-recurring acquisition expenses of 0.04%.
18
<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 Six For the For the
Months Ended Year Year
December 31, Ended Ended For the Years Ended October 31,
1997 June 30, June 30, --------------------------------
(unaudited) 1997 1996 1995 (2) 1994 1993 1992
--------- --------- --------- -------- --------- --------- ---------
<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 ..................... 0.014 0.026 0.017 0.027 0.018 0.016 0.025
Dividends from net investment income ...... (0.014) (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 $ 1.00
========= ========= ========= ========= ========= ========= =========
Total investment return (1) ............... 1.36% 2.65% 1.71% 2.75% 1.76% 1.65% 2.49%
Ratios/Supplemental Data:
Net assets, end of period (000's) ......... $ 66,365 $ 52,324 $ 42,233 $ 36,206 $ 31,981 $ 36,473 $ 27,625
Expenses to average net assets ............ 0.82%* 0.81% 0.95%* 0.93% 0.85% 0.93% 0.86%
Net investment income to average net assets 2.69%* 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.
19
<PAGE>
[This Page Intentionally Left Blank]
<PAGE>
[This Page Intentionally Left Blank]
<PAGE>
[This Page Intentionally Left Blank]
<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
THE FINANCIAL INFORMATION HEREIN IS TAKEN FROM THE RECORDS OF THE FUNDS
WITHOUT EXAMINATION BY INDEPENDENT AUDITORS WHO DO NOT EXPRESS AN OPINION
THEREON.
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.
<PAGE>
PaineWebber
(CopyRight)1998 PaineWebber Incorporated
Member SIPC
PaineWebber
RMA Municipal
Money Funds
RMA California Municipal Money Fund
RMA New York Municipal Money Fund
RMA New Jersey Municipal Money Fund
December 31, 1997
