PAINEWEBBER
RMA CONNECTICUT
MUNICIPAL MONEY FUND
RMA NEW JERSEY
MUNICIPAL MONEY FUND
SEMIANNUAL REPORT
APRIL 30, 1996
<PAGE>
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June 14, 1996
Dear Shareholder:
We are pleased to present you with the Semiannual Report for PaineWebber
Municipal Money Market Series for the six months ended April 30, 1996. Moderate
economic growth, low inflation and strong corporate earnings growth helped to
propel the stock market to record-breaking levels during 1995. The bond market
also rallied during 1995, providing investors with their third-best year since
the 1920s.
By the end of 1995, most investors were convinced that the Federal Reserve Board
had achieved a "soft landing" for the economy, which led to a general consensus
that the Fed would act again to cut short-term interest rates. Sentiment changed
quickly in early March, however, in response to government reports showing
higher than expected economic growth: there was a sharp drop in bond prices
which caused volatility in the stock market. Meanwhile, the Federal Reserve's
Open Market Committee decided to keep monetary policy unchanged at the March 26,
and May 21, 1996 meetings. The Fed's decision to hold rates steady suggests that
officials did not foresee a recession or accelerating inflation.
Moving forward, our view is that the economy will continue to expand, but
slowly. We forecast that inflation will remain in check, creating a stable
environment for current interest rates. A recession within the next year is
unlikely, given the absence of many of the usual pre-recession indicators. The
economic backdrop for the rest of the year should be similar to 1995's. However,
we project that corporate earnings growth will moderate, which will probably
constrain stock prices.
PORTFOLIO REVIEW
As of April 30, 1996, the current 7-day yields for PaineWebber RMA Connecticut
Municipal Money Fund and PaineWebber RMA New Jersey Municipal Money Fund were
2.69% and 2.72%, respectively. The Federal Reserve Board had signaled its
assessment of low inflationary pressure by bringing the Federal Funds rate down
to 5.25% via three rate cuts in July and December 1995 and January 1996. During
the first quarter of 1996, short-term interest rates began to increase in the
six-month to one-year sector, steepening the short-end of the yield curve. On
April 30, 1996, the weighted average maturity was 35 days for RMA Connecticut
and 61 days for RMA New Jersey.
Going forward, the Funds expect to maintain neutral weighted average maturities
as short-term rates find stability. The Fed appears to have engineered a soft
landing for the economy. However, if inflation becomes problematic, further
increases in short-term interest rates could be possible during the second half
of 1996. Investment decisions in 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 security,
quality and liquidity.
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1
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We value you as a shareholder and as a client, and thank you for your continued
support. We welcome any comments or questions you may have.
Sincerely,
/s/ Margo Alexander /s/ Elbridge T. Gerry III
MARGO ALEXANDER ELBRIDGE T. GERRY III
President, Senior Vice President,
Mitchell Hutchins Asset Mitchell Hutchins Asset
Management Inc. Management Inc.
/s/ Kevin P. McIntyre /s/ Debbie Vermann
KEVIN P. MCINTYRE DEBBIE VERMANN
Portfolio Manager, Portfolio Manager,
PaineWebber RMA New Jersey PaineWebber RMA Connecticut
Municipal Money Fund Municipal Money Fund
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2
<PAGE>
PaineWebber RMA Connecticut Municipal Money Fund
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Statement of Net Assets
April 30, 1996 (unaudited)
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<TABLE><CAPTION>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
- ---------- --------- --------- ---------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES--69.76%
$ 300 Connecticut Development Authority
(Exeter Project B)........................ @ 4.300% $ 300,000
600 Connecticut Development Authority
(Shaw Incorporated)....................... @ 4.150 600,000
700 Connecticut Development Authority
(Shelton Inn Limited Partnership)......... @ 3.750 700,000
400 Connecticut Development Authority
Health Care Corporation
(Independent Living Project).............. @ 4.050 400,000
700 Connecticut Development Authority
Pollution Control Revenue
(Connecticut Light and Power Company
Project A)................................. @ 4.200 700,000
1,000 Connecticut Development Authority
Pollution Control Revenue
(Western Massachusetts Electric
Company)................................... @ 3.950 1,000,000
500 Connecticut Economic Recovery Notes........ 06/15/96 5.500 500,831
500 Connecticut General Obligation Bonds....... 08/15/96 5.250 502,242
1,000 Connecticut Special Assessment
(Unemployment Compensation)............... @ 4.350 1,000,000
1,300 Connecticut Special Tax Obligation Revenue
(Second Lien Transportation).............. @ 4.100 1,300,000
200 Connecticut Special Tax Obligation Revenue
(Transportation Infrastructure)........... 09/01/96 4.500 200,825
500 Darien Bond Anticipation Notes............. 08/14/96 4.000 500,483
500 Fairfield Sewer Assessment Notes........... 06/07/96 3.840 500,019
515 Groton Bank Qualified Notes................ 11/15/96 6.300 527,262
300 Litchfield Bond Anticipation Notes......... 10/24/96 4.000 300,375
250 Newtown Bank Qualified Notes............... 06/15/96 4.700 250,194
463 North Stonington Bond Anticipation Notes... 06/26/96 to 07/19/96 3.900 to 4.000 462,680
500 Prospect Bond Anticipation Notes........... 07/26/96 3.900 500,169
1,000 South Central Connecticut Regional Water
Authority
Water Systems Revenue Bonds (Pre-refunded
with U.S. Government securities to 8/01/96
@ 102)..................................... 08/01/96 7.125 1,028,063
1,000 Stamford Housing Authority Revenue
(Multi Modal Morgan Street Project)....... @ 4.100 1,000,000
800 Puerto Rico Commonwealth
Highway And Transportation Authority
Revenue.................................... @ 3.750 800,000
-----------
Total Municipal Bonds and Notes (cost--$13,073,143).... 13,073,143
-----------
TAX EXEMPT COMMERCIAL PAPER--29.35%
1,000 Connecticut Health and Educational
Facilities Authority....................... 05/15/96 to 05/21/96 3.250 to 3.400 1,000,000
100 Connecticut Health and Educational
Facilities Authority
(Yale University)......................... 05/01/96 3.300 100,000
500 Connecticut Housing Finance Authority
(Housing Mortgage Finance Program)........ 06/10/96 3.650 500,000
800 Connecticut Municipal Electric Energy
Cooperative................................ 05/14/96 to 05/15/96 3.400 to 3.500 800,000
1,500 Puerto Rico Commonwealth
Highway And Transportation Authority
Revenue.................................... 06/03/96 3.650 1,500,000
</TABLE>
3
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PaineWebber RMA Connecticut Municipal Money Fund
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<TABLE><CAPTION>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
---------- --------- --------- -----------
<C> <S> <C> <C> <C>
TAX EXEMPT COMMERCIAL PAPER--(CONCLUDED)
$ 800 Puerto Rico Industrial Medical And
Environmental Pollution Control Facilities
Financing Authority Revenue
(Ana Mendez).............................. 05/17/96 3.250% $ 800,000
800 Puerto Rico Industrial Medical and
Environmental
Pollution Control Facilities Financing
Authority Revenue
(Interamerican University)................ 05/20/96 3.200 800,000
-----------
Total Tax Exempt Commercial Paper (cost--$5,500,000).... 5,500,000
-----------
Total Investments (cost--$18,573,143 which approximates
cost for
federal income tax purposes)--99.11%................. 18,573,143
Other assets in excess of liabilities--0.89%............ 166,219
-----------
Net Assets (applicable to 18,737,184 shares of
beneficial
interest at $1.00 per share)--100.00%................ $18,739,362
-----------
-----------
</TABLE>
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@ Variable rate demand notes are payable on demand. The interest rate shown is
the current rate as of April 30, 1996.
Weighted average maturity--35 days
See accompanying notes to financial statements
4
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PaineWebber RMA New Jersey Municipal Money Fund
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Statement of Net Assets
April 30, 1996 (unaudited)
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<TABLE><CAPTION>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
- ---------- --------- --------- -----------
MUNICIPAL BONDS AND NOTES--82.77%
<C> <S> <C> <C> <C>
$ 1,700 New Jersey Economic Development Authority..... @ 3.850% $ 1,700,000
400 New Jersey Economic Development Authority
(400 International Drive Partners)........... @ 3.500 400,000
1,575 New Jersey Economic Development Authority
(Brach/Jersey Avenue Project)................ @ 3.900 1,575,000
300 New Jersey Economic Development Authority
(Church and Dwight Company Project).......... @ 3.900 300,000
1,447 New Jersey Economic Development Authority
(Curtiss Wright Flight)...................... @ 3.550 1,447,000
500 New Jersey Economic Development Authority
(Epitaxx Incorporated)....................... @ 3.900 500,000
1,500 New Jersey Economic Development Authority
(Franciscan Oaks Project).................... @ 4.000 1,500,000
1,300 New Jersey Economic Development Authority
(Hillcrest Health Service Systems Project)... @ 4.100 1,300,000
500 New Jersey Economic Development Authority
(New Jersey Natural Gas)..................... @ 4.100 500,000
500 New Jersey Economic Development Authority
(Thermal Energy Limited Partnership)......... 08/22/96 3.600 500,000
500 New Jersey Economic Development Authority
(W. Y. Plastic Products Corporation
Project)...................................... @ 3.800 500,000
1,700 New Jersey Economic and Industrial Development
Authority
(Burmah Castrol Incorporated)................ @ 3.900 1,700,000
2,000 New Jersey Economic and Industrial Development
Authority
(Fujinon Incorporated Project)............... @ 4.050 2,000,000
100 New Jersey Economic and Industrial Development
Authority
(Toys "R" Us, Incorporated).................. @ 3.750 100,000
400 New Jersey General Obligation Bonds........... 09/15/96 6.250 403,859
1,000 New Jersey State Transportation Trust Fund
Authority Bonds.............................. 12/15/96 5.500 1,013,664
175 Atlantic County
County Community College..................... 08/15/96 7.000 176,683
571 Bridgewater Township General Improvement
Notes......................................... 11/01/96 4.625 573,436
1,000 Burlington County General Obligation Bonds
(Pre-refunded with U.S. Government securities
to 3/15/97 @ 102)............................. 03/15/97 6.300 1,042,278
400 Cranford Township General Improvement Bonds... 05/01/96 8.000 400,000
250 Dunellen Board of Education................... 08/01/96 5.625 251,439
285 Essex County
County Community College..................... 11/15/96 5.100 286,819
500 Essex County Improvement Authority Project
Revenue
(County Asset Sale).......................... @ 3.900 500,000
400 Franklin Township General Obligation Bonds.... 07/15/96 7.000 402,813
550 Mahwah Township Bond Anticipation Notes....... 05/15/96 3.850 550,031
550 Mercer County Unlimited Tax General Obligation
Bonds......................................... 07/01/96 5.500 551,557
290 Millville Board of Education
(New Jersey School Bond Reserve Act)......... 08/01/96 5.200 290,989
1,000 Monmouth County Bond Anticipation Notes....... 08/29/96 4.375 1,001,338
</TABLE>
5
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PaineWebber RMA New Jersey Municipal Money Fund
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<TABLE><CAPTION>
PRINCIPAL
AMOUNT MATURITY INTEREST
(000) DATES RATES VALUE
---------- --------- --------- -----------
<C> <S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES--(CONCLUDED)
$ 690 Newark Healthcare Facility Revenue
(New Community Facility)..................... @ 4.300% $ 690,000
1,134 Ocean County Bond Anticipation Notes.......... 06/28/96 4.000 1,134,605
700 Parsippany Township Bond Anticipation Notes... 11/01/96 4.250 701,999
500 Piscataway Township Bond Anticipation Notes... 04/25/97 4.250 503,082
400 Port Authority of New York and New Jersey..... @ 3.900 to 4.100 400,000
1,350 Princeton Township Bond Anticipation Notes.... 08/29/96 4.125 1,351,255
1,500 Roselle Park Bond Anticipation Notes.......... 09/06/96 3.750 1,501,283
200 Scotch Plains Township Bond Anticipation
Notes......................................... 04/01/97 5.050 202,680
500 Seaside Heights Bond Anticipation Notes....... 02/21/97 3.625 501,447
1,000 Union County Pollution Control Finance
Authority
(Exxon)...................................... @ 3.500 1,000,000
100 Warren Township General Obligation Bonds...... 07/01/96 6.200 101,498
235 West Windsor Township General Improvement
Bonds......................................... 01/15/97 4.550 236,294
1,500 Puerto Rico Commonwealth
(Government Development Bank)................ @ 3.750 1,500,000
-----------
Total Municipal Bonds and Notes (costs--$31,291,049)...... 31,291,049
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TAX EXEMPT COMMERCIAL PAPER--16.44%
500 New Jersey Economic Development Authority..... 05/06/96 3.550 500,000
1,000 New Jersey Economic Development Authority
(Chambers Cogeneration Project).............. 05/14/96 to 08/12/96 3.200 to 3.250 1,000,000
700 New Jersey Economic Development Authority
(Keystone Project)........................... 08/12/96 3.250 700,000
3,000 New Jersey State Transportation............... 05/01/96 to 06/03/96 3.100 to 3.350 3,000,000
1,015 Port Authority of New York and New Jersey..... 05/02/96 2.900 1,015,000
-----------
Total Tax Exempt Commercial Paper (cost--$6,215,000)...... 6,215,000
-----------
Total Investments (cost--$37,506,049 which approximates
cost for federal income tax purposes)--99.21%.......... 37,506,049
Other assets in excess of liabilities--0.79%.............. 299,271
-----------
Net Assets (applicable to 37,808,095 shares of beneficial
interest at $1.00 per share)--100.00%.................. $37,805,320
-----------
-----------
</TABLE>
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@ Variable rate demand notes are payable on demand. The interest rate shown is
the current rate as of April 30, 1996.
Weighted average maturity--61 days
See accompanying notes to financial statements
6
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PaineWebber Municipal Money Market Series
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Statement of Operations
For The Six Months Ended April 30, 1996 (unaudited)
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<TABLE><CAPTION>
RMA RMA
Connecticut New Jersey
----------- ----------
<S> <C> <C>
INVESTMENT INCOME:
Interest........................................................... $ 429,731 $ 725,627
----------- ----------
EXPENSES:
Investment advisory and administration............................. 59,851 103,398
Distribution fees.................................................. 14,363 24,814
Custody and accounting............................................. 16,275 16,949
Reports and notices to shareholders................................ 13,925 18,732
Legal and audit.................................................... 11,250 10,377
Transfer agency fees............................................... 9,725 13,332
Federal and state registration..................................... 2,380 3,946
Trustees' fees..................................................... 1,850 1,850
Other expenses..................................................... 4,061 6,091
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133,680 199,489
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NET INVESTMENT INCOME............................................... 296,051 526,138
NET REALIZED LOSSES FROM INVESTMENT TRANSACTIONS.................... -- (997)
----------- ----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS................ $ 296,051 $ 525,141
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</TABLE>
See accompanying notes to financial statements
7
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PaineWebber RMA Connecticut Municipal Money Fund
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Statement of Changes in Net Assets
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<TABLE><CAPTION>
For the Six
Months
Ended For the Year
April 30, 1996 Ended
(unaudited) October 31, 1995
-------------- ----------------
<S> <C> <C>
FROM OPERATIONS:
Net investment income......................................... $ 296,051 $ 634,908
Net realized gains from investment transactions............... -- 924
-------------- ----------------
Net increase in net assets resulting from operations.......... 296,051 635,832
-------------- ----------------
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income......................................... (296,051) (634,908)
-------------- ----------------
NET DECREASE IN NET ASSETS FROM BENEFICIAL INTEREST
TRANSACTIONS................................................... (3,469,851) (3,563,889)
-------------- ----------------
Contribution to capital from predecessor adviser............... -- 8,906
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Net decrease in net assets.................................... (3,469,851) (3,554,059)
NET ASSETS:
Beginning of period........................................... 22,209,213 25,763,272
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End of period................................................. $ 18,739,362 $ 22,209,213
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-------------- ----------------
</TABLE>
See accompanying notes to financial statements
8
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PaineWebber RMA New Jersey Municipal Money Fund
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Statement of Changes in Net Assets
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<TABLE><CAPTION>
For the Six
Months
Ended For the Year
April 30, 1996 Ended
(unaudited) October 31, 1995
-------------- ----------------
<S> <C> <C>
FROM OPERATIONS:
Net investment income......................................... $ 526,138 $ 916,509
Net realized losses from investment transactions.............. (997) (1,778)
-------------- ----------------
Net increase in net assets resulting from operations.......... 525,141 914,731
-------------- ----------------
DIVIDENDS TO SHAREHOLDERS FROM:
Net investment income......................................... (526,138) (916,509)
-------------- ----------------
NET INCREASE IN NET ASSETS FROM BENEFICIAL INTEREST
TRANSACTIONS................................................... 1,600,390 4,205,178
-------------- ----------------
Contribution to capital from predecessor adviser............... -- 21,521
-------------- ----------------
Net increase in net assets.................................... 1,599,393 4,224,921
NET ASSETS:
Beginning of period........................................... 36,205,927 31,981,006
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End of period................................................. $ 37,805,320 $ 36,205,927
-------------- ----------------
-------------- ----------------
</TABLE>
See accompanying notes to financial statements
9
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PaineWebber Municipal Money Market Series
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Notes to Financial Statements--(unaudited)
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ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
PaineWebber Municipal Money Market Series (formerly PaineWebber/Kidder, Peabody
Municipal Money Market Series) (the "Trust") was organized as a Massachusetts
business trust on September 14, 1990, and is registered with the Securities and
Exchange Commission under the Investment Company Act of 1940, as amended, as an
open-end, non-diversified management investment company. The Trust currently
offers two no-load series of shares: PaineWebber RMA Connecticut Municipal Money
Fund ("RMA Connecticut") (formerly the Connecticut Series) and PaineWebber RMA
New Jersey Municipal Money Fund ("RMA New Jersey") (formerly the New Jersey
Series) (collectively 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--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 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 are
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
The Funds follow 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 the issuers
within the state to pay interest on, or repay principal of, municipal
obligations held by the Funds.
INVESTMENT ADVISER AND ADMINISTRATOR
The Trust's board of trustees has approved an investment advisory and
administration contract ("Advisory Contract") with PaineWebber Incorporated
("PaineWebber"), under which PaineWebber serves as investment adviser and
administrator of the Funds. In accordance with the Advisory Contract, the Funds
pay 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 April 30, 1996 the
10
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PaineWebber Municipal Money Market Series
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Funds owed PaineWebber $8,500 and $16,831 in investment advisory and
administration fees for RMA Connecticut and RMA New Jersey, respectively.
Under a separate contract, PaineWebber (not the Funds) pays Mitchell Hutchins
Asset Management, Inc. a monthly fee for sub-advisory and sub-administrative
services in an amount equal to 20% of the fee paid to PaineWebber under the
Advisory Contract.
In compliance with applicable state securities laws, PaineWebber will reimburse
the Funds if and to the extent that the aggregate operating expenses in any
fiscal year exclusive of taxes, interest, brokerage fees, distribution fees and
extraordinary expenses, exceed limitations imposed by various state regulations.
Currently, the most restrictive limitation applicable to the Funds is 2.5% of
the first $30 million of average daily net assets, 2.0% of the next $70 million
and 1.5% of any excess over $100 million. For the six months ended April 30,
1996, no reimbursements were required pursuant to the above limitations.
DISTRIBUTION PLAN
PaineWebber is the distributor of the Funds' shares and the exclusive dealer for
the sale of those shares. For its services, the Funds pay PaineWebber a
distribution fee, which is accrued daily and paid monthly, at an annual rate of
0.12% of the Funds' average daily net assets. At April 30, 1996, the Funds owed
PaineWebber $2,040 and $4,039 in distribution fees for RMA Connecticut and RMA
New Jersey, respectively.
OTHER LIABILITIES
At April 30, 1996, dividends payable were $18,713 and $37,528 for RMA
Connecticut and RMA New Jersey, respectively.
FEDERAL TAX STATUS
The Funds intend to distribute substantially all of their 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, the Funds intend not to be
subject to a federal excise tax.
At October 31, 1995, RMA Connecticut and RMA New Jersey had net capital loss
carryforwards of $0 and $1,778, respectively. These loss carryforwards are
available as a reduction, to the extent provided in the regulations, of future
net realized capital gains, and will expire by October 31, 2002. To the extent
that such losses are used to offset future capital gains it is probable that the
gains so offset will not be distributed.
11
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PaineWebber Municipal Money Market Series
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BENEFICIAL INTEREST
There is an unlimited amount of $0.001 par value of beneficial interest
authorized. Transactions in shares of beneficial interest, at $1.00 per share,
were as follows:
<TABLE><CAPTION>
FOR THE FOR THE
SIX MONTHS ENDED YEAR ENDED
RMA CONNECTICUT APRIL 30, 1996 OCTOBER 31, 1995
- --------------- ---------------- ----------------
<S> <C> <C>
Shares sold.................................................. 63,465,365 77,747,232
Shares repurchased........................................... (67,224,257) (81,908,171)
Dividends reinvested......................................... 289,041 597,050
---------------- ----------------
Net decrease................................................. (3,469,851) (3,563,889)
---------------- ----------------
---------------- ----------------
RMA NEW JERSEY
- --------------
<S> <C> <C>
Shares sold.................................................. 107,933,798 191,790,113
Shares repurchased........................................... (106,848,696) (188,445,267)
Dividends reinvested......................................... 515,288 860,332
---------------- ----------------
Net increase................................................. 1,600,390 4,205,178
---------------- ----------------
---------------- ----------------
</TABLE>
CAPITAL CONTRIBUTION
On January 27, 1995, the Funds recorded a capital contribution from Kidder
Peabody Asset Management, Inc., the Funds' predecessor investment adviser and
administrator, in the amount of $8,906 or $0.0004 per share and $21,521 or
$0.0006 per share for RMA Connecticut and RMA New Jersey, respectively, to
compensate the Funds for realized losses incurred on the sale of certain
securities to unrelated third parties.
12
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PaineWebber RMA Connecticut Municipal Money Fund
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Financial Highlights
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SELECTED DATA FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH
PERIOD IS PRESENTED BELOW:
<TABLE><CAPTION>
FOR THE SIX FOR THE YEARS FOR THE PERIOD
MONTHS ENDED ENDED OCTOBER 31, NOVEMBER 6, 1990+
APRIL 30, 1996 ---------------------------------------- TO
(UNAUDITED) 1995 1994 1993 1992 OCTOBER 31, 1991
-------------- ------- ------- ------- ------- -----------------
<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...... 0.012 0.026 0.017 0.015 0.022 0.040
Dividends from net
investment income......... (0.012) (0.026) (0.017) (0.015) (0.022) (0.040)
------- ------- ------- ------- ------- -------
Net asset value, end of
period..................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------- ------- ------- ------- ------- -------
------- ------- ------- ------- ------- -------
Total investment return
(1)........................ 1.22% 2.62% 1.74% 1.49% 2.25% 4.04%
------- ------- ------- ------- ------- -------
------- ------- ------- ------- ------- -------
Ratios and Supplemental
data:
Net assets, end of period
(000's).................... $ 18,739 $22,209 $25,763 $27,937 $28,063 $40,078
Ratio of expenses to
average net assets**...... 1.12%* 1.01% 0.90% 0.97% 0.86% 0.36%*
Ratio of net investment
income to average net
assets**................... 2.47%* 2.63% 1.71% 1.47% 2.28% 3.96%*
</TABLE>
- ------------
* Annualized
+ Commencement of issuance of shares
(1) Total investment return is calculated assuming a $1,000 investment on the
first day of each period reported, reinvestment of all dividends at net
asset value on the payable dates and a sale at net asset value on the last
day of each period reported. Total investment returns for periods less than
one year have not been annualized.
** For the period November 6, 1990 to October 31, 1991, the predecessor adviser
waived and/or reimbursed the Fund for a portion of its operating expenses.
If such fee waivers and/or expense reimbursements had not been made, the
annualized ratio of expenses to average net assets and the annualized ratio
of net investment income to average net assets would have been 0.82% and
3.50%, respectively.
13
<PAGE>
PaineWebber RMA New Jersey Municipal Money Fund
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Financial Highlights
- --------------------------------------------------------------------------------
SELECTED DATA FOR A SHARE OF BENEFICIAL INTEREST OUTSTANDING THROUGHOUT EACH
PERIOD IS PRESENTED BELOW:
<TABLE><CAPTION>
FOR THE SIX FOR THE YEARS FOR THE PERIOD
MONTHS ENDED ENDED OCTOBER 31, FEBRUARY 1, 1991+
APRIL 30, 1996 ---------------------------------------- TO
(UNAUDITED) 1995 1994 1993 1992 OCTOBER 31, 1991
-------------- ------- ------- ------- ------- --------------------
<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...... 0.013 0.027 0.018 0.016 0.025 0.032
Dividends from net
investment income......... (0.013) (0.027) (0.018) (0.016) (0.025) (0.032)
------- ------- ------- ------- ------- -------
Net asset value, end of
period..................... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------- ------- ------- ------- ------- -------
------- ------- ------- ------- ------- -------
Total investment return
(1)........................ 1.28% 2.75% 1.76% 1.65% 2.49% 3.19%
------- ------- ------- ------- ------- -------
------- ------- ------- ------- ------- -------
Ratios and Supplemental
data:
Net assets, end of period
(000's).................... $37,805 $36,206 $31,981 $36,473 $27,625 $41,504
Ratio of expenses to
average net assets**...... 0.96%* 0.93% 0.85% 0.93% 0.86% 0.27%*
Ratio of net investment
income to average net
assets**................... 2.54%* 2.73% 1.74% 1.63% 2.51% 4.20%*
</TABLE>
- ------------
* Annualized
+ Commencement of issuance of shares
(1) Total investment return is calculated assuming a $1,000 investment on the
first day of each period reported, reinvestment of all dividends at net
asset value on the payable dates and a sale at net asset value on the last
day of each period reported. Total investment returns for periods less than
one year have not been annualized.
** For the period February 1, 1991 to October 31, 1991, the predecessor adviser
waived and/or reimbursed the Fund for a portion of its operating expenses.
If such fee waivers and/or expense reimbursements had not been made, the
annualized ratio of expenses to average net assets and the annualized ratio
of net investment income to average net assets would have been 0.83% and
3.64%, respectively.
14
<PAGE>
PaineWebber Municipal Money Market Series
- --------------------------------------------------------------------------------
Shareholder Information
- --------------------------------------------------------------------------------
A special meeting of shareholders of the Trust was held on April 15, 1996. The
proposals and votes were as follows:
1. To elect ten members of its Board of Trustees:
<TABLE><CAPTION>
FUNDS VOTING TOGETHER
---------------------
SHARES VOTED FOR SHARES WITHHOLD AUTHORITY
---------------- -------------------------
<S> <C> <C>
Margo N. Alexander..................................... 33,968,626 3,548,606
Richard Q. Armstrong................................... 33,968,626 3,548,606
E. Garrett Bewkes, Jr.................................. 33,968,626 3,548,606
Richard Burt........................................... 33,968,626 3,548,606
Mary C. Farrell........................................ 33,968,626 3,548,606
Meyer Feldberg......................................... 33,968,626 3,548,606
George W. Gowen........................................ 33,968,626 3,548,606
Frederic V. Malek...................................... 33,968,626 3,548,606
Carl W. Schafer........................................ 33,968,626 3,548,606
John R. Torell III..................................... 33,968,626 3,548,606
</TABLE>
Broker non-votes and abstentions are included within "Shares Withhold Authority"
totals.
2. Ratification of the selection of Ernst & Young LLP as the independent
auditors for its current fiscal year:
<TABLE><CAPTION>
SHARES SHARES SHARES
VOTED FOR AGAINST ABSTAIN
---------- ------- ---------
<S> <C> <C> <C>
RMA Connecticut............................................ 9,658,082 145,671 2,784,076
RMA New Jersey............................................. 24,175,177 0 754,226
</TABLE>
15
<PAGE>
PaineWebber Municipal Money Market Series
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
3. Approval of the proposed changes to each Fund's fundamental investment
restrictions and policies:
A. Modification of Fundamental Restriction on Concentration;
B. Modification of Fundamental Restriction on Senior Securities and
Borrowing;
C. Modification of Fundamental Restriction on Making Loans;
D. Modification of Fundamental Restriction on Underwriting Securities;
E. Modification of Fundamental Restriction on Real Estate Investments;
F. Modification of Fundamental Restriction on Investing in Commodities;
G. Elimination of Fundamental Restriction on Pledging Portfolio Securities;
H. Elimination of Fundamental Restriction on Margin Transactions;
I. Elimination of Fundamental Restriction on Short Sales;
J. Elimination of Fundamental Restriction on Investments in Oil, Gas and
Mineral Leases and Programs;
K. Elimination of Fundamental Restriction on Investments in Other
Investment Companies;
L. Elimination of Fundamental Restriction on Investing for the Purpose of
Control;
M. Elimination of Fundamental Restriction on Investments in Illiquid
Securities;
N. Elimination of Fundamental Restriction Relating to Purchases of Certain
Types of Securities;
For each proposal listed above the votes were as follows:
<TABLE><CAPTION>
SHARES SHARES SHARES
VOTED FOR AGAINST ABSTAIN
---------- ------- ---------
<S> <C> <C> <C>
RMA Connecticut............................................ 9,394,572 185,943 3,007,314
RMA New Jersey............................................. 23,924,076 185,484 819,843
</TABLE>
4. Approval of Amended and Restated Declaration of Trust:
<TABLE>
<S> <C> <C> <C>
Trust...................................................... 33,331,371 369,008 3,816,853
</TABLE>
16
<PAGE>
---------------------------------------
TRUSTEES
E. Garrett Bewkes, Jr.
Chairman
Margo N. Alexander
Richard Q. Armstrong
Richard Burt
Mary C. Farrell
Meyer Feldberg
George W. Gowen
Frederic V. Malek
Carl W. Schafer
John R. Torell III
---------------------------------------
OFFICERS
Margo N. Alexander
President
Victoria E. Schonfeld
Vice President
Dianne E. O'Donnell
Vice President and Secretary
Julian F. Sluyters
Vice President and Treasurer
---------------------------------------
INVESTMENT ADVISER,
ADMINISTRATOR AND
DISTRIBUTOR
PaineWebber Incorporated
1285 Avenue of the Americas
New York, New York 10019
---------------------------------------
SUB-ADVISER AND
SUB-ADMINISTRATOR
Mitchell Hutchins Asset Management Inc.
1285 Avenue of the Americas
New York, New York 10019
---------------------------------------
The financial information included
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 Funds unless accompanied or
preceded by an effective prospectus.
(C)1996 PaineWebber Incorporated
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