<PAGE>
RMA MUNICIPAL MONEY FUNDS ANNUAL REPORT
August 21, 1998
Dear Shareholder,
We are pleased to present you with the annual report for the PaineWebber
RMA California Municipal Money Fund, the PaineWebber RMA New York Municipal
Money Fund and the PaineWebber RMA New Jersey Municipal Money Fund for the
fiscal year ended June 30, 1998.
GENERAL MARKET OVERVIEW
- -------------------------------------------------------------------------------
[GRAPHIC] During the first half of 1998, the tax-exempt money markets
responded to both high volume and the growing influence of floating-rate
issues (longer-maturity bonds whose yields are reset weekly, making them the
equivalent of short-term obligations). These two forces restrained prices
through the period, and kept short-term municipal yields close to their normal
range (66-68%) as percentages of comparable-maturity, taxable securities.
There was little incentive to extend portfolio maturity--longer maturity
securities did not offer much higher yields than shorter maturities.
Generally, high market volume lowers prices and raises yields in the one-year
market. That did not happen over the last six months because of the impact of
synthetic issues on the short end of the yield curve.
PORTFOLIO REVIEWS
- -------------------------------------------------------------------------------
[GRAPHIC] We had expected large cash inflows to bring interest rates down in
July, and therefore had maintained the Funds' weighted-average maturities
slightly higher than those of their peers. (As interest rates fall, prices of
longer-maturity securities increase more than shorter maturities.) We extended
portfolio maturity by purchasing longer maturities where we found value.
- -------------------------------------------------------------------------------
PAINEWEBBER RMA CALIFORNIA MUNICIPAL MONEY FUND
The Fund's current yield for the seven-day period ended June 30, 1998 was
2.7%. Its weighted-average maturity was 39 days, and net assets totaled $567.0
million as of June 30, 1998. 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
The Fund's current yield for the seven-day period ended June 30, 1998 was
2.8%. Its weighted-average maturity was 39 days, and net assets totaled $339.4
million as of June 30, 1998. 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
The Fund's current yield for the seven-day period ended June 30, 1998 was
2.6%. Its weighted-average maturity was 44 days, and net assets totaled $48.3
million as of June 30, 1998. The Fund did not invest in any securities subject
to the Federal alternative minimum tax for individual taxpayers.
1
<PAGE>
RMA MUNICIPAL MONEY FUNDS ANNUAL REPORT
GENERAL OUTLOOK
- -------------------------------------------------------------------------------
[GRAPHIC] We remain positive on bonds despite recent volatility in the
marketplace. The demand for U.S. debt remains high as the "flight to quality"
continues. We believe the Federal Reserve will hold monetary policy steady for
the foreseeable future due to the offsetting forces of a healthy domestic
economy and weak international economies, particularly in Asia.
As the season for conventional note issuance wanes, we expect short-term
municipals to continue trading at average percentages of taxable yields.
Consequently, we do not expect to change our portfolio strategy over the next
six months.
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.
For a quarterly Fund Profile on any of the funds in the PaineWebber Family
of Funds,(1) please contact your investment executive.
Sincerely,
/s/ Margo Alexander /s/ Dennis L. McCauley
MARGO ALEXANDER DENNIS L. McCAULEY
President Chief Investment Officer--Fixed Income
Mitchell Hutchins Asset Management Inc. Mitchell Hutchins Asset Management Inc.
This letter is intended to assist shareholders in understanding how the Funds
performed during the fiscal year ended June 30, 1998, 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.
- -------
(1) Mutual funds are sold by prospectus only. The prospectuses for the funds
contain more complete information regarding risks, charges and expenses, and
should be read carefully before investing.
2
<PAGE>
PAINEWEBBER RMA CALIFORNIA MUNICIPAL MONEY FUND
STATEMENT OF NET ASSETS JUNE 30, 1998
<TABLE>
<CAPTION>
Principal
Amount Maturity Interest
(000) Dates Rates Value
- --------- -------------------- -------- -----------
<S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES--77.76%
$ 7,700 California Community College Financing Authority
Tax and Revenue Anticipation Bonds (Series B)............. 09/30/98 4.500% $ 7,713,595
6,300 California Educational Facilities Authority
(Point Nazarene College).................................. A 3.000 6,300,000
3,950 California Educational Facilities Authority
(Stanford University-Series L-3).......................... A 3.200 3,950,000
4,690 California Health Facilities Financing Authority
(Pre-refunded with U.S. Government Securities to
10/01/98 @ 102)........................................... 10/01/98 7.625 4,829,527
8,800 California Health Facilities Financing Authority
(Adventist Health-Series A)............................... A 3.200 8,800,000
5,100 California Health Facilities Financing Authority
(Adventist Health-Series B)............................... A 3.100 5,100,000
4,000 California Health Facilities Financing Authority
(Memorial Health Services)................................ A 3.200 4,000,000
5,900 California Health Facilities Financing Authority
(N.T. Enloe Memorial Hospital-Series A)................... A 3.450 5,900,000
2,600 California Health Facilities Financing Authority
(Scripps Health).......................................... A 3.200 2,600,000
3,500 California Health Facilities Financing Authority
(Scripps Health-Series B)................................. A 3.230 3,500,000
30 California Health Facilities Financing Authority
(St. Joseph's Health System-Series B)..................... A 3.250 30,000
400 California Pollution Control Financing Authority
(Pacific Gas & Electric Company-Series F)................. A 3.500 400,000
400 California Pollution Control Financing Authority
(Southern California Edison-Series D)..................... A 3.450 400,000
10,000 California School Cash Reserve Program
Authority-Series A........................................ 07/02/99 4.500 10,073,200
16,500 California School Facilities Financing Corporation
Certificates of Participation (Capital Improvement
Financing Projects-Series A).............................. A 3.100 16,500,000
2,200 California State Economic Development Financing Authority
(California Independent Systems Project C)................ A 3.500 2,200,000
1,300 California Statewide Communities Development Authority
Certificates of Participation (House Ear Institute)....... A 3.500 1,300,000
7,005 California Statewide Communities Development Authority
Tax and Revenue Anticipation Notes (Series B)............. 09/30/98 4.750 7,019,793
10,900 California Transit Financing Authority..................... A 3.400 10,900,000
9,200 Abag Financing Authority for Nonprofit Corporations
Certificates of Participation (Lucile Salter
Packard Project).......................................... A 3.100 9,200,000
8,850 Alameda Contra Costa Schools Financing Authority
Certificates of Participation (Capital Improvement
Funding Projects)......................................... A 3.200 8,850,000
18,200 Anaheim Certificates of Participation...................... A 3.100 18,200,000
1,125 Anaheim Electric Revenue................................... 10/01/98 4.500 1,127,232
4,000 Foothill / Eastern Transportation Corridor Agency
California Toll Road Revenue.............................. A 3.150 4,000,000
4,000 Fremont Tax and Revenue Anticipation Notes................. 07/01/99 4.000 4,011,520
5,300 Golden Empire Schools Financing Authority
(Kern High School District-Series A)...................... A 3.250 5,300,000
</TABLE>
3
<PAGE>
PAINEWEBBER RMA CALIFORNIA MUNICIPAL MONEY FUND
<TABLE>
<CAPTION>
Principal
Amount Maturity Interest
(000) Dates Rates Value
- --------- -------------------- -------- -----------
<S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES (continued)
$ 7,200 Huntington Beach Multi-Family Housing Revenue Bonds
(Rivermeadow Apartments Project-Series B)................. A 3.250% $ 7,200,000
5,200 Irvine Improvement Bond Act 1915 Updates
Assessment District 85-7-I................................ A 3.200 5,200,000
22,900 Irvine Public Facilities and Infrastructure Authority
(Capital Improvement Project)............................. A 3.200 22,900,000
3,400 Long Beach Tax and Revenue Anticipation Notes.............. 10/08/98 4.500 3,406,048
3,000 Los Angeles Community Redevelopment Agency
Multi-Family Housing Revenue Bonds
(Grand Promenade Project)................................. A 3.000 3,000,000
5,000 Los Angeles County Tax and Revenue Anticipation
Notes (Series A).......................................... 06/30/99 4.500 5,039,850
8,800 Los Angeles County Pension Obligation (Series A)........... A 3.100 8,800,000
5,000 Los Angeles County Pension Obligation (Series B)........... A 3.100 5,000,000
12,100 Los Angeles County Pension Obligation (Series C)........... A 3.100 12,100,000
1,900 Los Angeles County Transportation Commission
Sales Tax Revenue (Series A).............................. A 3.100 1,900,000
13,500 Los Angeles Multi-Family Housing Revenue Bonds
(Museum Terrace Apartments-Series H)...................... A 3.000 13,500,000
4,000 Los Angeles Unified School District Tax and Revenue
Anticipation Notes........................................ 07/01/98 4.500 4,000,000
3,600 Los Angeles Unified School District Certificates of
Participation (Belmont Learning Complex-Series A)......... A 3.200 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 1,554,083
2,000 Metropolitan Water District Southern California
Waterworks Revenue (Series C)............................. A 2.900 2,000,000
6,795 Moorpark Industrial Development Authority
(Fred Kavli and Kavlico Corporation)...................... A 3.000 6,795,000
6,200 Newport Beach Health Facilities (Hoag Memorial Hospital)... A 3.600 6,200,000
12,000 Newport Beach Health Facilities
(Hoag Memorial Hospital-Series A)......................... A 3.600 12,000,000
7,200 Newport Beach Health Facilities
(Hoag Memorial Hospital-Series B)......................... A 3.600 7,200,000
12,600 Newport Beach Health Facilities
(Hoag Memorial Hospital-Series C)......................... A 3.600 12,600,000
9,000 Northern California Power Agency
(Geothermal Project Number 3A)............................ A 3.100 9,000,000
6,040 Orange County Apartment Development Revenue Bonds
(Niguel Summit 2-Series B)................................ A 2.950 6,040,000
2,510 Orange County Apartment Development Revenue Bonds
(Niguel Village-Series AA)................................ A 3.000 2,510,000
1,300 Orange County Sanitation Districts Certificates of
Participation (District #'s 1, 2, 3, 6, 7 &11-Series C)... A 3.500 1,300,000
2,000 Petaluma City School District (Series F)................... 06/30/99 4.000 2,005,360
2,400 Pomona Redevelopment Agency Multi-Family Housing Revenue
Bonds (Housing Park and Plaza Apartments-Series A)........ A 4.050 2,400,000
6,770 Redlands Certificates of Participation
(Water Treatment Facilities Project)...................... A 3.150 6,770,000
1,255 Sacramento County Certificates of Participation
(Administration Center and Courthouse Project)............ A 3.150 1,255,000
1,850 Sacramento County Tax and Revenue Anticipation Notes....... 09/30/98 4.500 1,853,470
2,250 Sacramento Municipal Utility District Electric Revenue
(Series W) (Pre-refunded with U.S. Government
Securities to 08/15/98 @102).............................. 08/15/98 7.875 2,305,804
</TABLE>
4
<PAGE>
PAINEWEBBER RMA CALIFORNIA MUNICIPAL MONEY FUND
<TABLE>
<CAPTION>
Principal
Amount Maturity Interest
(000) Dates Rates Value
- --------- -------------------- -------- -----------
<S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES (concluded)
$ 1,500 San Bernardino County Certificates of Participation
(County Center Refining Project).......................... A 3.150% $ 1,500,000
1,000 San Bernardino County Certificates of Participation
(West Valley Detention Center Project) (Pre-refunded
with U.S. Government Securities to 11/01/98 @102)......... 11/01/98 7.600 1,033,009
7,000 San Diego County Tax and Revenue Anticipation Notes........ 09/30/98 4.500 7,011,452
8,100 San Francisco Redevelopment Agency Multi-Family
Housing Revenue Bonds (Fillmore Center Project B-1)....... A 3.400 8,100,000
2,030 San Francisco Redevelopment Agency Multi-Family
Housing Revenue Bonds (Rincon Center Project B)........... A 3.200 2,030,000
2,500 San Francisco Redevelopment Agency Multi-Family
Housing Revenue Bonds (Winterland Project 85-C)........... A 3.200 2,500,000
3,000 San Francisco Redevelopment Financing Authority
(Yerba Buena Garden)...................................... A 3.200 3,000,000
4,700 San Jose Redevelopment Agency Revenue Bonds
(Merged Area Redevelopment Project-Series B).............. A 3.000 4,700,000
3,500 Santa Barbara County Schools Financing Authority
Tax and Revenue Anticipation Notes........................ 06/30/99 4.500 3,527,825
3,038 Santa Clara County El Camino Hospital District
Hospital Facilities Authority (Aces Lease Valley
Medical Center Project-Series A).......................... A 3.000 3,038,000
19,100 Santa Clara County Financing Authority
(VMC Facility Replacement Project B)...................... A 3.100 19,100,000
5,000 Santa Cruz County Board of Education Tax and Revenue
Anticipation Notes........................................ 06/30/99 4.000 5,015,300
5,720 Simi Valley Public Financing Authority..................... A 3.200 5,720,000
5,000 Southern California Public Power Authority
Project Revenue (Palo Verde Project C).................... A 3.100 5,000,000
6,000 Southern California Public Power Authority
Project Revenue (Southern Transmission)................... A 3.100 6,000,000
3,350 Val Verde Unified School District Tax and Revenue
Anticipation Notes........................................ 10/29/98 4.500 3,356,891
5,750 Vallejo Unified School District Tax and Revenue
Anticipation Notes........................................ 10/22/98 4.250 5,756,676
10,000 Ventura County (Series A29-Registered D)................... 12/09/98 3.600 10,000,000
3,440 Visalia Public Financing Authority Revenue Bonds
(Golf Course Improvement)................................. A 3.400 3,440,000
2,700 Puerto Rico Commonwealth................................... 07/01/99 5.500 2,746,062
6,650 Puerto Rico Commonwealth Tax and Revenue
Anticipation Notes (Series A)............................. 07/30/98 4.500 6,653,959
------------
Total Municipal Bonds and Notes (cost--$440,868,656)................. 440,868,656
------------
TAX-EXEMPT COMMERCIAL PAPER--27.28%
1,500 State of California Department of Water Resources.......... 08/14/98 3.650 1,500,000
7,500 California Educational Facilities Authority
(Carnegie Institute of Washington-Series B)............... 07/10/98 to 07/28/98 3.500 to 3.700 7,500,000
2,000 California Pollution Control Financing Authority
(Dow Chemical Company Project)............................ 08/12/98 3.750 2,000,000
2,300 California Pollution Control Financing Authority
(Pacific Gas & Electric Company).......................... 09/09/98 3.500 2,300,000
4,000 California State General Obligation........................ 08/06/98 3.550 4,000,000
4,900 Anaheim Electric Revenue................................... 08/07/98 to 09/01/98 3.450 to 3.500 4,900,000
3,000 Contra Costa County Water District (Series A).............. 07/09/98 3.550 3,000,000
</TABLE>
5
<PAGE>
PAINEWEBBER RMA CALIFORNIA MUNICIPAL MONEY FUND
<TABLE>
<CAPTION>
Principal
Amount Maturity Interest
(000) Dates Rates Value
- --------- -------------------- -------- -----------
<S> <C> <C> <C>
TAX-EXEMPT COMMERCIAL PAPER (concluded)
$ 6,400 East Bay Municipal Utility District........................ 08/13/98 to 08/18/98 3.550 to 3.750% $ 6,400,000
4,000 Los Angeles County Capital Asset Corporation............... 08/06/98 3.650 4,000,000
26,000 Los Angeles Department of Water & Power.................... 07/15/98 to 09/11/98 3.400 to 3.650 26,000,000
8,000 Los Angeles Transportation Commission (Series A)........... 07/17/98 to 08/10/98 3.400 to 3.450 8,000,000
4,875 Los Angeles Wastewater System.............................. 07/13/98 to 09/10/98 3.500 to 3.550 4,875,000
1,500 Metropolitan Water District of Southern California......... 09/08/98 3.550 1,500,000
8,800 Modesto Irrigation District................................ 10/01/98 to 10/08/98 3.500 to 3.650 8,800,000
4,000 Orange County Local Transportation Authority............... 07/08/98 3.550 4,000,000
16,200 Regents of the University of California (Series B)......... 07/09/98 to 07/27/98 3.400 to 3.750 16,200,000
4,000 Sacramento Municipal Utility District...................... 08/03/98 to 09/15/98 3.350 to 3.400 4,000,000
2,000 San Diego County........................................... 07/30/98 3.400 2,000,000
6,490 San Diego Unified Port Authority (Series B)................ 10/09/98 to 11/06/98 3.450 6,490,000
5,000 San Diego Industrial Development (San Diego EIG)........... 08/13/98 3.650 5,000,000
5,300 San Diego Water Authority.................................. 09/08/98 3.400 5,300,000
4,000 San Francisco County Airports (Series A)................... 07/29/98 3.750 4,000,000
22,900 Puerto Rico Commonwealth Government Development Bank....... 07/13/98 to 09/08/98 3.400 to 3.650 22,900,000
------------
Total Tax Exempt Commercial Paper (cost--$154,665,000)............... 154,665,000
------------
Total Investments (cost--$595,533,656 which approximates cost
for federal income tax purposes)--105.04%.......................... 595,533,656
Liabilities in excess of other assets--(5.04)%....................... (28,576,384)
------------
Net Assets (applicable to 567,430,174 shares of beneficial interest
at $1.00 per share)--100.00%....................................... $566,957,272
============
</TABLE>
- ----------
A--Variable Rate Demand Notes are payable on demand. The interest rates are
the current rates as of June 30, 1998 and reset periodically.
Weighted Average Maturity--39 days
See accompanying notes to financial statements
6
<PAGE>
PAINEWEBBER RMA NEW YORK MUNICIPAL MONEY FUND
STATEMENT OF NET ASSETS JUNE 30, 1998
<TABLE>
<CAPTION>
Principal
Amount Maturity Interest
(000) Dates Rates Value
- --------- -------------------- -------- -----------
<S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES--83.39%
$ 6,615 New York State............................................. 9/15/98 to 10/15/98 4.500 to 5.750% $ 6,632,317
6,682 New York State Dormitory Authority
(Metropolitan Museum of Art).............................. A 3.200 6,682,000
6,765 New York State Dormitory Authority
(New York Public Library)................................. A 3.200 6,765,000
6,000 New York State Energy Research & Development Authority
(Central Hudson Gas & Electric)........................... A 3.500 6,000,000
2,000 New York State Energy Research & Development Authority
(LILCO) Adjustable Rate Bonds............................. 09/01/98 3.580 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 3.750 to 3.800 2,400,000
10,700 New York State Energy Research & Development Authority
Pollution Control Revenue (Orange and Rockland
Project A)................................................ A 3.250 10,700,000
9,500 New York State Energy Research & Development Authority
Gas Facilities Revenue (Brooklyn Union Gas Company)....... A 3.350 to 3.450 9,500,000
13,900 New York State Energy Research & Development Authority
Pollution Control Revenue (Rochester Gas & Electricity)... A 3.250 13,900,000
4,100 New York State Housing Finance Agency
(Mount Sinai Medical Center Project)...................... A 3.400 4,100,000
14,100 New York State Housing Finance Agency
(Normandie Project)....................................... A 3.200 14,100,000
3,835 New York State Housing Finance Agency Revenue
(Hospital Special Surgery Staff).......................... A 3.450 3,835,000
9,000 New York State Local Government Assistance Corporation..... A 3.200 to 3.250 9,000,000
1,700 New York State Medical Facilities Financing Agency
(Pooled Equipment Loan Program)........................... A 3.300 1,700,000
2,700 New York State Power Adjustable Rate Bonds................. 9/01/98 3.600 2,700,000
800 New York State Thruway Authority General Revenue........... A 3.800 800,000
1,595 New York State Thruway Authority
Highway & Bridge Series B................................. 4/01/99 4.000 1,597,861
1,235 Albany Industrial Development Agency
(Vulcan Investors)........................................ A 4.100 1,235,000
12,000 Babylon New York Industrial Development Agency Resources
(Ogden Martin Project).................................... A 3.250 12,000,000
1,612 Cattaraugus County Bond Anticipation Notes................. 07/23/98 4.500 1,612,373
5,000 Central Islip New York Union Free School District
Tax Anticipation Notes.................................... 06/30/99 4.000 5,012,000
2,000 Chemung County Industrial Development Agency
(Arnot Ogden Medical Center).............................. A 3.350 2,000,000
</TABLE>
7
<PAGE>
PAINEWEBBER RMA NEW YORK MUNICIPAL MONEY FUND
<TABLE>
<CAPTION>
Principal
Amount Maturity Interest
(000) Dates Rates Value
- --------- -------------------- -------- -----------
<S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES (continued)
$ 3,000 Dover Union Free School District Bond Anticipation Notes... 09/11/98 4.250% $ 3,001,820
4,850 Erie County Water Authority................................ A 3.250 4,850,000
1,620 Great Neck North Water Authority Systems................... A 3.450 1,620,000
1,646 Guilderland Central School District Bond
Anticipation Notes........................................ 07/15/98 4.250 1,646,031
2,150 Monroe County Industrial Development Agency Revenue
(Canal Ponds Park)........................................ A 3.400 2,150,000
7,900 Municipal Assistance Corporation for New York City......... A 3.200 7,900,000
2,788 Nassau County Bond Anticipation Notes Series A............. 08/17/98 4.250 2,790,382
4,000 Nassau County Revenue Anticipation Notes Series A.......... 03/10/99 4.000 4,005,317
3,000 Nassau County Tax Anticipation Notes Series B.............. 08/31/98 4.250 3,003,751
3,500 Nassau County Tax Anticipation Notes Series C.............. 12/22/98 4.250 3,507,916
1,700 New York City.............................................. A 3.800 to 4.100 1,700,000
780 New York City Prerefunded Series L......................... 08/03/98 4.750 780,751
2,920 New York City Unrefunded Balance Series L.................. 08/03/98 4.750 2,922,811
13,800 New York City Health and Hospital Corporation Revenue
(Health Systems).......................................... A 3.300 13,800,000
4,450 New York City Housing Development Corporation
(Columbus Gardens)........................................ A 3.350 4,450,000
1,500 New York City Housing Development Corporation
(James Tower Project)..................................... A 3.400 1,500,000
3,015 New York City Housing Development Corporation
(Parkgate Tower Project).................................. A 3.450 3,015,000
2,550 New York City Housing Development Corporation
(Upper Fifth Avenue Project).............................. A 3.150 2,550,000
2,900 New York City Industrial Development Agency
(Calhoun School).......................................... A 3.150 2,900,000
4,200 New York City Industrial Development Agency
(JFK Field Hotel)......................................... A 3.300 4,200,000
6,400 New York City Industrial Development Agency
(LaGuardia Project)....................................... A 3.300 6,400,000
500 New York City Municipal Water Finance Authority............ A 3.800 500,000
5,840 New York City Trust for Cultural Resources
(American Museum of Natural History)...................... A 3.250 5,840,000
3,400 New York City Trust for Cultural Resources
(Carnegie Hall)........................................... A 3.500 3,400,000
4,100 Niagara Falls Toll Bridge Commission....................... A 3.250 4,100,000
3,100 Onondaga County Industrial Development Agency
(Edgcomb Metals Company Project).......................... A 3.500 3,100,000
5,895 Oswego New York City School District Tax
Anticipation Notes........................................ 12/23/98 4.000 5,908,239
4,000 Oyster Bay New York Tax Anticipation Notes................. 01/29/99 4.000 4,006,690
</TABLE>
8
<PAGE>
PAINEWEBBER RMA NEW YORK MUNICIPAL MONEY FUND
<TABLE>
<CAPTION>
Principal
Amount Maturity Interest
(000) Dates Rates Value
- --------- -------------------- -------- -----------
<S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES (concluded)
$ 5,100 Port Authority of New York and New Jersey.................. A 3.750 to 4.000% $ 5,100,000
6,000 Rotterdam Industrial Development Agency
(Rotterdam Industrial Park Project)....................... A 3.600 6,000,000
3,000 Rome New York City School District
Revenue Anticipation Notes................................ 06/30/99 4.000 3,003,740
1,500 Seneca County Industrial Development Agency
(N.Y. Chiropractic College)............................... A 3.700 1,500,000
4,730 South Glens Falls New York Central School District
Revenue Anticipation Notes................................ 06/30/99 4.000 4,741,352
11,265 Suffolk County Water Authority Bond Anticipation Notes..... A 3.350 11,265,000
5,700 Triborough Bridge and Tunnel Authority Special............. A 3.200 5,700,000
1,500 Westchester County New York Tax Anticipation Notes......... 12/29/98 3.590 1,500,138
9,200 Yonkers Industrial Development Agency
(Consumers Union Facility)................................ A 3.450 9,200,000
3,500 Puerto Rico Commonwealth Aqueduct and Sewer Authority...... A 4.400 3,500,000
------------
Total Municipal Bonds and Notes (cost--$283,030,489)................. 283,030,489
------------
TAX-EXEMPT COMMERCIAL PAPER--19.19%
7,600 New York State............................................. 07/16/98 to 08/11/98 3.650 to 3.750 7,600,000
14,725 New York State Dormitory Authority......................... 07/10/98 to 09/14/98 3.450 to 3.750 14,725,000
3,000 New York State Environment................................. 08/12/98 3.750 3,000,000
8,000 New York State Power Authority............................. 07/21/98 to 10/15/98 3.650 to 3.750 8,000,000
2,000 Long Island Power Authority Series 3....................... 08/20/98 3.750 2,000,000
1,000 Monroe County New York Series 1997......................... 09/01/98 3.450 1,000,000
9,000 Municipal Assistance Company for New York (Series F)....... 07/14/98 to 08/19/98 3.500 to 3.700 9,000,000
15,700 New York City.............................................. 07/20/98 to 09/18/98 3.500 to 3.800 15,700,000
4,100 Puerto Rico Commonwealth Government Development Bank....... 07/22/98 to 08/12/98 3.400 to 3.750 4,100,000
------------
Total Tax Exempt Commercial Paper (cost--$65,125,000)................ 65,125,000
------------
Total Investments (cost -- $348,155,489 which approximates
cost for federal income tax purposes)--102.58%..................... 348,155,489
Liabilities in excess of other assets --(2.58)%...................... (8,764,683)
------------
Net Assets (applicable to 339,607,096 shares of beneficial
interest at $1.00 per share)--100.00%.............................. $339,390,806
============
</TABLE>
- ------------
A--Variable Rate Demand Notes are payable on demand. The interest rates shown
are the current rates as of June 30, 1998 and reset periodically.
Weighted Average Maturity--39 days
See accompanying notes to financial statements
9
<PAGE>
PAINEWEBBER RMA NEW JERSEY MUNICIPAL MONEY FUND
STATEMENT OF NET ASSETS JUNE 30, 1998
<TABLE>
<CAPTION>
Principal
Amount Maturity Interest
(000) Dates Rates Value
- --------- -------------------- -------- -----------
<S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES--82.06%
$ 1,000 New Jersey Economic Development Authority
(400 International Drive Partners)........................ A 3.500% $ 1,000,000
850 New Jersey Economic Development Authority
(Bears Series A DAC Realty Corporation)................... A 3.700 850,000
1,275 New Jersey Economic Development Authority
(Brach/Jersey Avenue Project)............................. A 3.250 1,275,000
2,000 New Jersey Economic Development Authority
(Curtiss Wright Flight)................................... A 3.050 2,000,000
1,500 New Jersey Economic Development Authority
(El Dorado Terminals Company)............................. A 3.850 1,500,000
1,000 New Jersey Economic Development Authority
(Natural Gas)............................................. A 3.500 1,000,000
500 New Jersey Economic Development Authority
(Public Service Electric & Gas Company)................... A 3.200 500,000
350 New Jersey Economic Development Authority
(St. James Prep Society Service Project).................. A 3.300 350,000
300 New Jersey Economic Development Authority
(W.Y. Plastic Products Corporation Project)............... A 3.200 300,000
550 New Jersey Economic Development Authority
Series G.................................................. A 3.700 550,000
1,000 New Jersey Economic Development Authority
Thermal Energy Facilities Revenue......................... A 3.450 1,000,000
700 New Jersey Economic Development Authority Economic
Development Revenue Danic Urban Renewal................... A 3.300 700,000
370 New Jersey Economic Development Authority
Economic Development Revenue Nash Group 1985 Project...... A 3.100 370,000
1,000 New Jersey Economic Development Authority Natural Gas
Facilities Revenue Adjustable New Jersey Natural Gas
CP Project Series C....................................... A 3.350 1,000,000
1,200 New Jersey Economic Development Authority Pollution
Control Revenue (Public Service Electric and Gas
Company A)................................................ A 3.150 1,200,000
100 New Jersey Economic Development Authority Revenue
(Hoffman Louisiana Roche Incorporated Project)............ A 4.000 100,000
1,250 New Jersey Economic Development Authority Revenue
Refunding Trenton Office Complex.......................... 06/15/99 4.250 1,256,394
1,300 New Jersey Economic Development Authority Water
Facilities Revenue (Elizabethtown Water
Company Project A)........................................ A 3.500 1,300,000
500 New Jersey Economic Development Authority Water
Facilities Revenue (Elizabethtown Water
Company Project B)........................................ A 3.400 500,000
</TABLE>
10
<PAGE>
PAINEWEBBER RMA NEW JERSEY MUNICIPAL MONEY FUND
<TABLE>
<CAPTION>
Principal
Amount Maturity Interest
(000) Dates Rates Value
- --------- -------------------- -------- -----------
<S> <C> <C> <C>
MUNICIPAL BONDS AND NOTES (concluded)
$ 1,000 New Jersey Economic Development Authority Water
Facilities Revenue (Thermal Energy Limited Partnership)... A 3.500% $ 1,000,000
1,790 New Jersey State General Obligation........................ 09/15/98 6.250 1,799,744
2,000 New Jersey State Turnpike Authority........................ A 3.300 2,000,000
790 New Jersey Wastewater Treatment Trust Loan
Series B.................................................. 04/01/99 5.750 802,368
600 Port Authority of New York and New Jersey.................. A 3.750 600,000
300 Port Authority of New York and New Jersey.................. A 4.000 300,000
1,000 Port Authority of New York and New Jersey.................. A 4.000 1,000,000
450 Brick Township Municipal Utilities Authority............... 12/01/98 4.000 450,635
1,030 East Orange New Jersey General Obligation.................. 07/01/98 4.100 1,030,000
500 Essex County Bond Anticipation Notes
Series A.................................................. 08/07/98 4.250 500,166
400 Essex County Improvement Authority Revenue
(County Asset Sale)....................................... A 3.450 400,000
1,400 Essex County Improvement Authority Revenue
(Pooled Governmental Loan Program)........................ A 3.300 1,400,000
1,000 Jersey City Bond Anticipation Notes........................ 09/18/98 4.375 1,001,009
450 Jersey City Series A....................................... 03/01/99 4.750 453,205
400 Mercer County Improvement Authority Revenue
(Pooled Government Loan Program).......................... A 3.100 400,001
200 Middlesex General Obligation Bonds......................... 01/15/99 4.450 200,526
500 Monmouth County General Improvement Bonds.................. 08/01/98 6.625 501,168
500 Monmouth County Improvement Authority Revenue.............. 10/01/98 4.500 501,164
690 Morris County General Obligation Bonds Refunding........... 07/15/98 6.000 690,582
635 Morris Township New Jersey................................. 05/01/99 5.250 642,959
390 Paramus New Jersey School District......................... 05/03/99 4.900 393,306
1,000 Pleasantville School District Temporary Notes.............. 08/28/98 4.250 1,000,666
1,000 Randolph Township Bond Anticipation Notes.................. 09/04/98 4.250 1,000,771
400 Salem County Pollution Control Financing
(Atlantic City Electric B)................................ A 3.500 400,000
1,000 Union County Industrial Pollution Control Finance
Authority (Exxon Corporation Project)..................... A 3.500 1,000,000
1,000 Union County Industrial Pollution Control Financing
Authority (Exxon Corporation Project)..................... A 3.400 1,000,000
1,000 Woodbridge Township Bond Anticipation Notes................ 07/01/98 4.250 1,000,000
500 Puerto Rico Commonwealth Government Development
Bank Series A Tax & Revenue Anticipation Notes............ 07/30/98 4.500 500,292
900 Puerto Rico Commonwealth Government Development Bank....... A 3.150 900,000
------------
Total Municipal Bonds and Notes (cost--$39,619,956) 39,619,956
------------
</TABLE>
11
<PAGE>
PAINWEBBER RMA NEW JERSEY MUNICIPAL MONEY FUND
<TABLE>
<CAPTION>
Principal
Amount Maturity Interest
(000) Dates Rates Value
- --------- -------------------- -------- -----------
<S> <C> <C> <C>
TAX-EXEMPT COMMERCIAL PAPER--17.01%
$ 2,000 New Jersey Economic Development Authority
Industrial and Economic Development Revenue............... A 3.550 to 3.650% $ 2,000,000
1,700 New Jersey Economic Development Authority
(Keystone Project)........................................ 08/06/98 to 09/10/98 3.450 to 3.500 1,700,000
1,000 New Jersey State Educational Facilities Authority
Princeton University...................................... 09/08/98 3.600 1,000,000
1,000 New Jersey State Educational Facilities Authority
Princeton University Series 97............................ 07/08/98 3.400 1,000,000
1,010 Port Authority of New York and New Jersey.................. 08/10/98 3.450 1,010,000
500 Puerto Rico Commonwealth Industrial Medical and
Environmental Pollution Control Facilities Financing
Authority Revenue (Formerly Higher Education
Intermediate American University Project)................. 09/11/98 3.500 500,000
1,000 Puerto Rico Commonwealth Government Development Bank A 3.450 1,000,000
-----------
Total Tax Exempt Commercial Paper (cost--$8,210,000)................. 8,210,000
-----------
Total Investments (cost--$47,829,956 which approximates cost
for federal income tax purposes)--99.07%........................... 47,829,956
Other assets in excess of liabilities--0.93%......................... 449,434
-----------
Net Assets (applicable to 48,284,126 shares of beneficial
interest at $1.00 per share)--100.00% $48,279,390
===========
</TABLE>
- ------------
A--Variable Rate Demand Notes are payable on demand. The interest rates
shown are the current rates as of June 30, 1998 and reset periodically.
- ------------
- ------------
Weighted Average Maturity--44 days
See accompanying notes to financial statements
12
<PAGE>
PAINEWEBBER MANAGED MUNICIPAL TRUST
PAINEWEBBER MUNICIPAL MONEY MARKET SERIES
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
For the Year Ended June 30, 1998
------------------------------------------
RMA RMA RMA
California New York New Jersey
Municipal Municipal Municipal
Money Fund Money Fund Money Fund
------------- ------------ ------------
<S> <C> <C> <C>
Investment income:
Interest..................................................... $ 19,662,013 $ 12,135,162 $ 2,057,921
------------- ------------ ------------
Expenses:
Investment advisory and administration....................... 2,667,404 1,673,724 294,352
Distribution fees............................................ 553,196 332,649 70,645
Transfer agency and service fees............................. 166,509 76,447 24,485
Legal and audit.............................................. 91,041 48,083 45,954
Custody and accounting....................................... 58,602 30,942 7,956
Reports and notices to shareholders.......................... 50,124 20,753 17,262
Federal and state registration fees.......................... 35,684 22,596 13,075
Trustees' fees............................................... 10,500 10,500 10,500
Other expenses............................................... 23,988 6,214 18,300
------------- ---------- -----------
3,657,048 2,221,908 502,529
Less:
Fee waivers from adviser..................................... -- (5,113) --
------------- ---------- -----------
Net expenses................................................. 3,657,048 2,216,795 502,529
------------- ---------- -----------
Net investment income........................................ 16,004,965 9,918,367 1,555,392
Net realized gains (losses) from investment transactions..... 22,739 6,536 (111)
------------- ---------- -----------
Net increase in net assets resulting from operations......... $ 16,027,704 $9,924,903 $ 1,555,281
============= ========== ===========
</TABLE>
See accompanying notes to financial statements
13
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
For the Years Ended
June 30,
---------------------------
1998 1997
------------ -----------
<S> <C> <C>
PAINEWEBBER RMA CALIFORNIA MUNICIPAL MONEY FUND
From operations:
Net investment income........................................................... $ 16,004,965 $ 14,906,687
Net realized gains from investment transactions................................. 22,739 40,508
------------ ------------
Net increase in net assets resulting from operations............................ 16,027,704 14,947,195
------------ ------------
Dividends to shareholders from:
Net investment income........................................................... (16,004,965) (14,906,687)
------------ ------------
Net increase in net assets from beneficial interest transactions................ 74,019,188 19,149,305
------------ ------------
Net increase in net assets...................................................... 74,041,927 19,189,813
Net assets:
Beginning of year............................................................... 492,915,345 473,725,532
------------ ------------
End of year..................................................................... $566,957,272 $492,915,345
============ ============
PAINEWEBBER RMA NEW YORK MUNICIPAL MONEY FUND
From operations:
Net investment income........................................................... $ 9,918,367 $ 8,151,131
Net realized gains from investment transactions................................. 6,536 15,810
------------ ------------
Net increase in net assets resulting from operations............................ 9,924,903 8,166,941
------------ ------------
Dividends to shareholders from:
Net investment income........................................................... (9,918,367) (8,151,131)
------------ ------------
Net increase in net assets from beneficial interest transactions................ 65,046,474 19,145,230
------------ ------------
Net increase in net assets...................................................... 65,053,010 19,161,040
Net assets:
Beginning of year............................................................... 274,337,796 255,176,756
------------ ------------
End of year..................................................................... $339,390,806 $274,337,796
============ ============
PAINEWEBBER RMA NEW JERSEY MUNICIPAL MONEY FUND
From operations:
Net investment income........................................................... $ 1,555,392 $ 1,260,379
Net realized losses from investment transactions................................ (111) (118)
------------ ------------
Net increase in net assets resulting from operations............................ 1,555,281 1,260,261
------------ ------------
Dividends to shareholders from:
Net investment income........................................................... (1,555,392) (1,260,379)
------------ ------------
Net increase (decrease) in net assets from beneficial interest transactions..... (4,044,079) 10,090,883
------------ ------------
Net increase (decrease) in net assets........................................... (4,044,190) 10,090,765
Net assets:
Beginning of year............................................................... 52,323,580 42,232,815
------------ ------------
End of year..................................................................... $ 48,279,390 $ 52,323,580
============ ============
</TABLE>
See accompanying notes to financial statements
14
<PAGE>
NOTES TO FINANCIAL STATEMENTS
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
PaineWebber Managed Municipal Trust ("Managed Municipal Trust") and
PaineWebber Municipal Money Market Series ("Municipal Money Market Series")
(collectively, the "Trusts") were organized under Massachusetts law by
Declarations of Trust dated November 21, 1986 and September 14, 1990,
respectively, and are registered with the Securities and Exchange Commission
under the Investment Company Act of 1940, as amended, as open-end management
investment companies. Managed Municipal Trust currently offers two no-load,
non-diversified series of shares: PaineWebber RMA California Municipal Money
Fund ("RMA California") and PaineWebber RMA New York Municipal Money Fund
("RMA New York"). Municipal Money Market Series currently offers one no-load,
non-diversified series of shares: PaineWebber RMA New Jersey Municipal Money
Fund ("RMA New Jersey", and when referred together with RMA California and RMA
New York 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 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 the 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, RMA California and RMA New York each pay PaineWebber an
investment advisory and administration fee, which is accrued daily and paid
monthly in accordance with the following schedule:
Annual
Average Daily Net Assets Rate
------------------------ -------
Up to $300 million............................... 0.50%
In excess of $300 million up to $750 million..... 0.44
Over $750 million................................ 0.36
In accordance with its Advisory Contract, RMA New Jersey pays PaineWebber
an investment advisory and administration fee, which is accrued daily and paid
monthly, at an annual rate of 0.50% of the Fund's average daily net assets.
At June 30, 1998, RMA California, RMA New York and RMA New Jersey owed
PaineWebber $231,252, $138,896 and $20,805, respectively, for investment
advisory and administration fees.
15
<PAGE>
NOTES TO FINANCIAL STATEMENTS
Mitchell Hutchins Asset Managment 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 year ended June 30, 1998, 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 plans 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, upon Board of Trustee approval, 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 June 30, 1998, RMA California, RMA New
York and RMA New Jersey owed PaineWebber $61,494, 35,253 and $4,993,
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
and $3,402 in service fees from RMA California and RMA New York, 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 eleven months ended June 30, 1998, PaineWebber
received from PFPC, Inc., not the Funds, approximately 53%, 55% and 56% 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 June 30, 1998, RMA California, RMA New York and RMA New Jersey had
dividends payable aggregating $563,636, $354,197 and $44,430, respectively,
and RMA California and RMA New York had payables for investments purchased of
$44,593,201 and $10,012,000, 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, 1998, RMA California, RMA New York and RMA New Jersey had net
capital loss carryforwards of $228,787, $83,150 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, 1999 and June 30, 2004, for RMA New York
between June 30, 1999 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.
16
<PAGE>
NOTES TO FINANCIAL STATEMENTS
BENEFICIAL INTEREST
There is an unlimited amount of $0.001 par value shares of beneficial
interest authorized for each Fund. Transactions in shares of beneficial
interest, at $1.00 per share, were as follows:
<TABLE>
<CAPTION>
For the Years Ended June 30,
--------------------------------
1998 1997
------------- -------------
<S> <C> <C>
RMA California:
Shares sold................................... 3,141,260,666 2,758,694,561
Shares repurchased............................ (3,082,883,437) (2,754,038,712)
Dividends reinvested.......................... 15,641,959 14,493,456
-------------- -------------
Net increase in shares outstanding............ 74,019,188 19,149,305
============== =============
RMA New York:
Shares sold................................... 2,180,262,612 1,797,987,498
Shares repurchased............................ (2,124,848,046) (1,786,704,572)
Dividends reinvested.......................... 9,631,908 7,862,304
-------------- -------------
Net increase in shares outstanding 65,046,474 19,145,230
============== =============
RMA New Jersey:
Shares sold................................... 327,439,783 270,072,473
Shares repurchased............................ (332,996,989) (261,185,868)
Dividends reinvested.......................... 1,513,127 1,204,278
-------------- -------------
Net increase (decrease) in shares
outstanding................................. (4,044,079) 10,090,883
============== =============
</TABLE>
17
<PAGE>
PAINEWEBBER RMA CALIFORNIA MUNICIPAL MONEY FUND
FINANCIAL HIGHLIGHTS
Selected data for a share of beneficial interest outstanding throughout
each year is presented below:
<TABLE>
<CAPTION>
For the Years Ended June 30,
------------------------------------------------------
1998 1997 1996 1995 1994
------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year........................ $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
------------------------------------------------------
Net investment income..................................... 0.028 0.028 0.029 0.029 0.018
Dividends from net investment income...................... (0.028) (0.028) (0.029) (0.029) (0.018)
------------------------------------------------------
Net asset value, end of year.............................. $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======================================================
Total investment return (1)............................... 2.87% 2.87% 2.89% 2.91% 1.78%
======================================================
Ratios/Supplemental Data:
Net assets, end of year (000's)........................... $566,957 $492,915 $473,726 $330,937 $295,183
Expenses to average net assets............................ 0.65% 0.62% 0.70%(2) 0.69% 0.69%
Net investment income to average net assets............... 2.83% 2.83% 2.82%(2) 2.87% 1.79%
</TABLE>
- --------
(1) Total investment return is calculated assuming a $1,000 investment on the
first day of each year reported, reinvestment of all dividends and
distributions at net asset value on the payable dates, and a sale at net
asset value on the last day of each year reported.
(2) These ratios include non-recurring acquisition expenses of 0.03%.
18
<PAGE>
PAINEWEBBER RMA NEW YORK MUNICIPAL MONEY FUND
FINANCIAL HIGHLIGHTS
Selected data for a share of beneficial interest outstanding throughout
each year is presented below:
<TABLE>
<CAPTION>
For the Years Ended June 30,
---------------------------------------------------------
1998 1997 1996 1995 1994
---------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
---------------------------------------------------------
Net investment income 0.029 0.028 0.029 0.028 0.017
Dividends from net investment income (0.029) (0.028) (0.029) (0.028) (0.017)
---------------------------------------------------------
Net asset value, end of year $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
=========================================================
Total investment return (1) 2.97% 2.85% 2.91% 2.81% 1.70%
=========================================================
Ratios/Supplemental Data:
Net assets, end of year (000's) $339,391 $274,338 $255,177 $192,799 $165,111
Expenses to average net assets before waiver from adviser 0.65% 0.77% 0.74%(2) 0.71% 0.75%
Expenses to average net assets after waiver from adviser 0.65% 0.67% 0.72%(2) 0.68% 0.68%
Net investment income to average net assets
before waiver from adviser 2.92% 2.71% 2.80%(2) 2.78% 1.67%
Net investment income to average net assets
after waiver from adviser 2.92% 2.81% 2.82%(2) 2.81% 1.74%
</TABLE>
- ---------
(1) Total investment return is calculated assuming a $1,000 investment on the
first day of each year reported, reinvestment of all dividends and
distributions at net asset value on the payable dates, and a sale at net
asset value on the last day of each year reported.
(2) These ratios include non-recurring acquisition expenses of 0.04%.
<PAGE>
PAINEWEBBER RMA NEW JERSEY MUNICIPAL MONEY FUND
FINANCIAL HIGHLIGHTS
Selected data for a share of beneficial interest outstanding throughout
each year is presented below:
<TABLE>
<CAPTION>
For The Eight
For the Years Months Ended
Ended June 30, June 30, For the Years Ended October 31,
----------------------------------------------------------------------
1998 1997 1996 1995 (2) 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........................ 0.026 0.026 0.017 0.027 0.018 0.016
Dividends from net investment income......... (0.026) (0.026) (0.017) (0.027) (0.018) (0.016)
----------------------------------------------------------------------
Net asset value, end of period............... $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
======================================================================
Total investment return (1).................. 2.67% 2.65% 1.71% 2.75% 1.76% 1.65%
======================================================================
Ratios/Supplemental Data:
Net assets, end of period (000's)............ $ 48,279 $ 52,324 $ 42,233 $ 36,206 $ 31,981 $ 36,473
Expenses to average net assets 0.85% 0.81% 0.95%* 0.93% 0.85% 0.93%
Net investment income to average net assets.. 2.64% 2.63% 2.56%* 2.73% 1.74% 1.63%
</TABLE>
- ---------
*Annualized
(1) Total investment return is calculated assuming a $1,000 investment on the
first day of each year reported, reinvestment of all dividends and
distributions at net asset value on the payable dates, and a sale at net
asset value on the last day of each year reported. Total investment return
for period of less than one year has not been annualized.
(2) Investment advisory functions for the Fund were transferred from Kidder,
Peabody Asset Management, Inc. to PaineWebber on January 30, 1995.
20
<PAGE>
PAINEWEBBER MANAGED MUNICIPAL TRUST
PAINEWEBBER MUNICIPAL MONEY MARKET SERIES
REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
The Board of Trustees and Shareholders
PaineWebber Managed Municipal Trust
PaineWebber Municipal Money Market Series
We have audited the accompanying statement of net assets of PaineWebber
Managed Municipal Trust (comprising, respectively, the PaineWebber RMA
California Municipal Money Fund and PaineWebber RMA New York Municipal Money
Fund) and PaineWebber Municipal Money Market Series (comprising, PaineWebber
RMA New Jersey Municipal Money Fund) (collectively, the "Funds") as of June
30, 1998 and the related statements of operations for the year then ended, the
statement of changes in net assets for each of the two years in the period
then ended and the financial highlights for each of the periods indicated
therein. These financial statements and financial highlights are the
responsibility of the Fund's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements and financial highlights. Our procedures included
confirmation of investments owned at June 30, 1998 by correspondence with the
custodian and brokers. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of each
of the respective Funds constituting the PaineWebber Managed Municipal Trust
and PaineWebber Municipal Money Market Series at June 30, 1998, the results of
their operations for the year then ended, the changes in their net assets for
each of the two years in the period then ended and the financial highlights
for each of the indicated periods, in conformity with generally accepted
accounting principles.
/s/ Ernest & Young LLP
New York, New York
August 21, 1998
21
<PAGE>
PAINEWEBBER MANAGED MUNICIPAL TRUST
PAINEWEBBER MUNICIPAL MONEY MARKET SERIES
TAX INFORMATION (UNAUDITED)
We are required by Subchapter M of the Internal Revenue Code of 1986, as
amended, to advise you within 60 days of each Fund's fiscal year end (June 30,
1998) as to the federal tax status of distributions received by shareholders
during such fiscal year. Accordingly, we are advising you that all dividends
paid during the period by RMA California, RMA New York and RMA New Jersey were
federally exempt interest dividends. RMA New Jersey had 14.30% of the
dividends paid subject to the federal alternative minimum tax for individual
taxpayers during the fiscal year. Also, all dividends paid by the Funds were
exempt from personal income taxes from their respective states.
Because each Fund's fiscal year is not the calendar year, another
notification will be sent in respect of calendar year 1998. The second
notification, which will reflect the amount to be used by calendar year
taxpayers on their federal income tax returns, will be made in conjunction
with Form 1099 DIV and will be mailed in January 1999. Shareholders are advised
to consult their own tax advisers with respect to the tax consequences of
their investment in each respective Fund.
22
<PAGE>
TRUSTEES
E. Garrett Bewkes, Jr. Mary C. Farrell
Chairman
Meyer Feldberg
Margo N. Alexander
George W. Gowen
Richard Q. Armstrong
Frederic V. Malek
Richard R. Burt
Carl W. Schafer
PRINCIPAL OFFICERS
Margo N. Alexander Paul H. Schubert
President Vice President and Treasurer
Victoria E. Schonfeld Dennis L. McCauley
Vice President Vice President
Dianne E. O'Donnell
Vice President and Secretary
INVESTMENT ADVISER,
ADMINISTRATOR AND DISTRIBUTOR
PaineWebber Incorporated
1285 Avenue of the Americas
New York, New York 10019
SUB-ADVISER AND SUB-ADMINISTRATOR
Mitchell Hutchins Asset Management Inc.
1285 Avenue of the Americas
New York, New York 10019
This report is not to be used in connection with the offering of shares of the
Fund unless accompanied or preceded by an effective prospectus.
<PAGE>
ANNUAL REPORT
PaineWebber
(c)1998 PaineWebber Incorporated
Member SIPC
PaineWebber
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RMA MUNICIPAL MONEY FUNDS
RMA CALIFORNIA MUNICIPAL MONEY FUND
RMA NEW YORK MUNICIPAL MONEY FUND
RMA NEW JERSEY MUNICIPAL MONEY FUND
JUNE 30, 1998
