-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, WXG9dROELASjg34FAPQ2N7NJ0x9VqanyDB4zuKtdStghilXgxRJWUIZKLM5+p4iU qJhHkUD9J0FtGYkWrbgl8w== 0001047469-03-029923.txt : 20030905 0001047469-03-029923.hdr.sgml : 20030905 20030905110949 ACCESSION NUMBER: 0001047469-03-029923 CONFORMED SUBMISSION TYPE: N-CSR PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20030630 FILED AS OF DATE: 20030905 EFFECTIVENESS DATE: 20030905 FILER: COMPANY DATA: COMPANY CONFORMED NAME: UBS MUNICIPAL MONEY MARKET SERIES CENTRAL INDEX KEY: 0000868055 STATE OF INCORPORATION: MA FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: N-CSR SEC ACT: 1940 Act SEC FILE NUMBER: 811-06173 FILM NUMBER: 03882908 BUSINESS ADDRESS: STREET 1: C/O UBS GLOBAL ASSET MANAGEMENT (US) INC STREET 2: 51 WEST 52ND ST CITY: NEW YORK STATE: NY ZIP: 10019 BUSINESS PHONE: 212 882 5575 MAIL ADDRESS: STREET 1: C/O UBS GLOBAL ASSET MANAGEMENT (US) INC STREET 2: 51 WEST 52ND STREET CITY: NEW YORK STATE: NY ZIP: 10019 FORMER COMPANY: FORMER CONFORMED NAME: UBS PAINEWEBBER MUNICIPAL MONEY MARKET SERIES DATE OF NAME CHANGE: 20010625 FORMER COMPANY: FORMER CONFORMED NAME: PAINEWEBBER MUNICIPAL MONEY MARKET SERIES DATE OF NAME CHANGE: 19960511 FORMER COMPANY: FORMER CONFORMED NAME: KIDDER PEABODY MUNICIPAL MONEY MARKET SERIES DATE OF NAME CHANGE: 19950323 N-CSR 1 a2118068zn-csr.txt N-CSR UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM N-CSR CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES Investment Company Act file number: 811-6173 -------------------------------------------- UBS MUNICIPAL MONEY MARKET SERIES - -------------------------------------------------------------------------------- (Exact name of registrant as specified in charter) 51 West 52nd Street, New York, New York 10019-6114 - -------------------------------------------------------------------------------- (Address of principal executive offices) (Zip code) Amy R. Doberman UBS Global Asset Management (US) Inc. 51 West 52nd Street New York, NY 10019-6114 (Name and address of agent for service) Copy to: Jack W. Murphy, Esq. Dechert 1775 I Street, N.W. Washington, DC 20006-2401 Registrant's telephone number, including area code: 212-882 5000 Date of fiscal year end: June 30, 2003 Date of reporting period: June 30, 2003 ITEM 1. REPORTS TO STOCKHOLDERS. [UBS GLOBAL ASSET MANAGEMENT LOGO] UBS RMA MONEY MARKET PORTFOLIO U.S. GOVERNMENT PORTFOLIO TAX-FREE FUND CALIFORNIA MUNICIPAL MONEY FUND NEW YORK MUNICIPAL MONEY FUND NEW JERSEY MUNICIPAL MONEY FUND ANNUAL REPORT JUNE 30, 2003 UBS RMA FUNDS August 15, 2003 DEAR SHAREHOLDER, We present you with the annual report for UBS RMA Money Market Portfolio; UBS RMA U.S. Government Portfolio; UBS RMA Tax-Free Fund Inc.; UBS RMA California Municipal Money Fund; UBS RMA New York Municipal Money Fund; and UBS RMA New Jersey Municipal Money Fund, for the fiscal year ended June 30, 2003. AN INTERVIEW WITH PORTFOLIO MANAGERS SUSAN RYAN AND DEBBIE BAGGETT Q. HOW DID THE FUNDS PERFORM DURING THE PERIOD? A. Short-term interest rates fell during the period. As a result, when the holdings in the funds' portfolios matured, they had to be replaced with securities that offered lower yields. Therefore, the Funds' seven-day current yields declined during the fiscal year. As of June 30, 2003, they were: UBS RMA Money Market Portfolio--0.55%; UBS RMA U.S. Government Portfolio--0.58%; UBS RMA Tax-Free Fund Inc.--0.39%; UBS RMA California Municipal Money Fund--0.39%; UBS RMA New York Municipal Money Fund--0.35%; and UBS RMA New Jersey Municipal Money Fund--0.23%. (For more on the Funds' and Portfolios' performance, refer to "Performance At A Glance" on page 5.) Q. CAN YOU DESCRIBE THE ECONOMIC ENVIRONMENT DURING THE REPORTING PERIOD? A. Other than a brief revival during the third quarter of 2002, the US economy was generally weak during the funds' fiscal year. As the reporting period began in July 2002, the economy appeared to be moving in the right direction. Gross domestic product (GDP) rose 4.0% during the third quarter of 2002, following an anemic 1.7% rate in the prior quarter. This growth spurt was short lived, though, as the prospect of a war in Iraq, heightened threats of terrorism, turmoil in the Middle East, tepid corporate spending and a weak stock market all served [SIDENOTE] UBS RMA MONEY MARKET PORTFOLIO, UBS RMA U.S. GOVERNMENT PORTFOLIO INVESTMENT GOAL (BOTH PORTFOLIOS): Maximum current income consistent with preservation of capital and liquidity. PORTFOLIO MANAGER (BOTH PORTFOLIOS): Susan P. Ryan, UBS Global Asset Management (US) Inc. COMMENCEMENT (BOTH PORTFOLIOS): October 4, 1982 UBS RMA TAX-FREE FUND INC., UBS RMA CALIFORNIA MUNICIPAL MONEY FUND, UBS RMA NEW YORK MUNICIPAL MONEY FUND, UBS RMA NEW JERSEY MUNICIPAL MONEY FUND INVESTMENT GOAL (ALL FOUR FUNDS): Maximum current income exempt from Federal and/or a specific state's personal income taxes consistent with preservation of capital and liquidity. PORTFOLIO MANAGER (ALL FOUR FUNDS): Debbie Baggett, UBS Global Asset Management (US) Inc. COMMENCEMENT: October 4, 1982 (Tax-Free) November 7, 1988 (California Municipal) November 10, 1988 (New York Municipal) February 1, 1991 (New Jersey Municipal) DIVIDEND PAYMENTS (ALL SIX FUNDS/PORTFOLIOS): Monthly 1 to undermine the economy. GDP fell to 1.4% during the last three months of 2002, and remained unchanged in the first quarter of 2003. Q. WHAT ARE SOME OF THE REASONS BEHIND THE TEPID ECONOMIC GROWTH? A. Throughout 2002, consumer spending, which accounts for two-thirds of the US economy, was relatively strong. This was in sharp contrast to corporate spending, which continued to be subdued as many companies postponed major purchases pending clearer signs of a sustainable economic recovery. However, in early 2003, both consumer and corporate spending weakened. Geopolitical concerns, a spike in oil prices, rising unemployment, and severe weather in parts of the country served to further undermine the economy. In the aftermath of major conflict in Iraq, no clear spending picture has emerged. Q. HOW DID THE FEDERAL RESERVE BOARD (THE "FED") REACT TO THE WEAKENING ECONOMY? A. During the first four months of the reporting period, the Fed kept rates steady. Then, at its November 2002 meeting, the Fed, acknowledging that the economy had hit a "soft spot," lowered the federal funds rate one half of a percentage point to 1.25%. In the months that followed, the Fed deferred from making additional rate cuts, although it made it clear that it was assuming a "heightened surveillance" of the economy in light of the conflict with Iraq. After the war's start, however, and absent any lift in the economy, the Fed alluded to the possibility of a future rate cut, citing that it viewed economic weakness to be a greater risk than inflation. Many took the statement to mean that a rate cut would likely be implemented at the Fed's next meeting. It came as no surprise, then, when, in an endnote to the period, the Fed moved to lower the federal funds rate by a quarter of a percentage point at its June 25, 2003 Federal Open Market Committee meeting. The move brought the rate to 1.0%--its lowest level since 1958. In explaining the move, the Fed cited that the economy had yet to exhibit sustainable growth, and that "a slightly more expansive monetary policy would add further support for an economy which it expects to improve over time." Q. HOW WERE THE FUNDS MANAGED IN THIS TURBULENT ENVIRONMENT? A. In terms of investment strategies, the funds continued to utilize a "barbell" strategy, whereby we purchased securities at both ends of the maturity spectrum. The funds' longer-term securities--with maturities up to around one year--were used to lock in higher yields as interest rates fell. At the same time, their shorter-term securities--typically one month or less in duration--provided liquidity. 2 With the combination of a weak economy, uncertainty regarding the outcome and repercussions of the war in Iraq, and corporate accounting scandals, the credit markets were extremely volatile during the period. Therefore, within both UBS RMA Money Market Portfolio and UBS RMA U.S. Government Portfolio, we emphasized US government securities that offered the highest credit quality and liquidity. As such, we were able to avoid the problems that plagued some areas of the corporate credit markets. Within UBS RMA Tax-Free Fund Inc., UBS RMA California Municipal Money Fund, UBS RMA New York Municipal Money Fund, and UBS RMA New Jersey Municipal Money Fund, we also emphasized credit quality and liquidity, which enabled us to avoid the credit problems and downgrades that occurred in the municipal market. Q. WHAT IS YOUR OUTLOOK FOR THE ECONOMY, AND HOW DO YOU ANTICIPATE STRUCTURING THE PORTFOLIO GOING FORWARD? A. In our last report to shareholders, we stated that we were skeptical about the strength of an economic recovery. This proved to be well-founded, as there have been few indications that a sustained economic upturn is taking place. Despite the rapid conclusion to the war in Iraq, there continues to be a great deal of uncertainty around the world. The repercussions of the war remain unknown and the situation in North Korea remains volatile. In the US, one could look at the economic "glass" as either being half full, or half empty. Among the positives, major combat in Iraq has ended and consumer confidence has risen since the height of the war. Oil prices have fallen sharply, and low interest rates continue to spur mortgage refinancing, which places more money in consumers' pockets. The stock market has rallied, and an economic stimulus package was approved by Congress. On the other hand, unemployment remains high, and the economy will have to gain momentum in order to stimulate the labor market. The housing market may have peaked, and consumer debt levels are high. Finally, the Fed has less mobility to lower short-term interest rates--although Chairman Greenspan has indicated his willingness to lower rates again if the economy fails to recover as anticipated. Against this backdrop, credit quality and liquidity will continue to be of paramount importance. To this end, specifically to UBS RMA Money Market Portfolio and UBS RMA U.S. Government Portfolio, we intend to keep a large portion of each Portfolio allocated to US government securities. For all Funds and Portfolios, we expect to continue employing a barbell strategy for as long as spreads between short-term instruments and one-year maturities continue to support such a strategy. 3 As always, 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 additional information on the UBS funds,* please contact your financial advisor or visit us at www.ubs.com. Sincerely, /s/ Joseph A. Varnas /s/ Susan P. Ryan JOSEPH A. VARNAS SUSAN P. RYAN PRESIDENT PORTFOLIO MANAGER UBS RMA Money Fund, Inc. UBS RMA Money Market Portfolio (UBS RMA Money Market UBS RMA U.S. Government Portfolio Portfolio and UBS RMA EXECUTIVE DIRECTOR U.S. Government Portfolio) UBS Global Asset Management UBS RMA Tax-Free Fund, Inc. (US) Inc. UBS Managed Municipal Trust (UBS RMA California Municipal Money Fund and UBS RMA New York Municipal Money Fund) UBS Money Market Series (UBS RMA New Jersey Municipal Money Fund) MANAGING DIRECTOR UBS Global Asset Management (US) Inc. /s/ Debbie Baggett DEBBIE BAGGETT PORTFOLIO MANAGER UBS RMA Tax-Free Fund, Inc. UBS RMA California Municipal Money Fund UBS RMA New York Municipal Money Fund UBS RMA New Jersey Municipal Money Fund DIRECTOR UBS Global Asset Management (US) Inc. This letter is intended to assist shareholders in understanding how the Funds and Portfolios performed during the fiscal year ended June 30, 2003, and reflects our views at the time of its writing. Of course, these views may change in response to changing circumstances, and they do not guarantee the future performance of the markets or the Funds and Portfolios. We encourage you to consult your financial advisor regarding your personal investment program. * Mutual funds are sold by prospectus only. The prospectus for a Fund or Portfolio contains more complete information regarding risks, charges and expenses, and should be read carefully before investing. 4 UBS RMA FUNDS PERFORMANCE AT A GLANCE
7-DAY 7-DAY WEIGHTED YIELDS AND CHARACTERISTICS CURRENT EFFECTIVE AVERAGE AS OF JUNE 30, 2003* YIELD YIELD MATURITY** NET ASSETS - ----------------------------------------------------------------------------------------- UBS RMA Money Market Portfolio 0.55% 0.55% 79 days $ 21.8 billion - ----------------------------------------------------------------------------------------- UBS RMA U.S. Government Portfolio 0.58% 0.59% 69 days $ 2.5 billion - ----------------------------------------------------------------------------------------- UBS RMA Tax-Free Fund Inc. 0.39% 0.39% 26 days $ 3.2 billion - ----------------------------------------------------------------------------------------- UBS RMA California Municipal Money Fund 0.39% 0.39% 34 days $ 767.0 million - ----------------------------------------------------------------------------------------- UBS RMA New York Municipal Money Fund 0.35% 0.35% 37 days $ 588.9 million - ----------------------------------------------------------------------------------------- UBS RMA New Jersey Municipal Money Fund 0.23% 0.23% 37 days $ 161.9 million - -----------------------------------------------------------------------------------------
* Yields will flucuate. Performance data quoted represent past performance. Past performance does not guarantee future results. The Funds and Portfolios are actively managed and their composition will vary over time. ** The Funds and Portfolios are actively managed and their weighted average maturities will differ over time. 5 UBS RMA MONEY MARKET PORTFOLIO Statement of Net Assets -- June 30, 2003
PRINCIPAL AMOUNT MATURITY INTEREST (000) DATES RATES VALUE - ---------------------------------------------------------------------------------------------------------------------- U.S. GOVERNMENT AND AGENCY OBLIGATIONS--40.46% $1,621,000 U.S. Treasury Bills(1) 07/03/03 to 1.125 to 10/02/03 1.230%@ $ 1,619,146,633 100,000 U.S. Treasury Notes(1) 03/31/04 3.625@ 101,787,908 294,000 Federal Farm Credit Bank 07/01/03 1.000 to 1.020* 293,988,033 99,500 Federal Farm Credit Bank 12/29/03 1.070@ 98,964,718 2,470,795 Federal Home Loan Bank 03/05/04 to 1.070 to 07/16/04 1.410 2,470,795,000 618,900 Federal Home Loan Bank 07/01/03 1.025 to 1.280* 618,832,361 300,000 Federal Home Loan Bank 07/02/03 to 1.100 to 07/09/03 1.190@ 299,968,959 94,300 Federal Home Loan Mortgage Corp.(1) 11/15/03 to 3.250 to 01/15/04 6.375 95,343,357 513,523 Federal Home Loan Mortgage Corp. 07/08/03 to 0.900 to 09/30/03 1.140@ 512,909,359 125,000 Federal National Mortgage Association 05/07/04 1.380 125,000,000 203,000 Federal National Mortgage Association 07/01/03 1.000 to 1.020* 202,994,859 1,794,692 Federal National Mortgage Association 07/02/03 to 0.890 to 12/17/03 1.800@ 1,792,410,872 601,500 Student Loan Marketing Association 07/02/03 to 1.400 to 05/07/04 2.600 601,499,975 Total U.S. Government and Agency Obligations (cost--$8,833,642,034) 8,833,642,034 - ---------------------------------------------------------------------------------------------------------------------- BANK NOTES--2.20% U.S.--2.20% 100,000 LaSalle Bank N.A. 07/28/03 2.190 99,995,608 380,000 Wells Fargo Bank N.A. 07/01/03 1.030 to 1.050* 380,000,000 Total Bank Notes (cost--$479,995,608) 479,995,608 - ---------------------------------------------------------------------------------------------------------------------- CERTIFICATES OF DEPOSIT--11.23% U.S.--1.42% 125,000 State Street Bank & Trust Co. 07/09/04 1.140 125,000,000 185,000 SunTrust Bank 07/01/03 1.140* 184,997,250 309,997,250
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PRINCIPAL AMOUNT MATURITY INTEREST (000) DATES RATES VALUE - ---------------------------------------------------------------------------------------------------------------------- CERTIFICATES OF DEPOSIT--(CONCLUDED) NON-U.S.--9.81% $208,000 Abbey National Treasury 07/01/03 1.025 to 1.048* $ 207,973,579 203,000 ABN-AMRO Bank N.V. 07/01/03 1.120* 203,000,000 95,000 Bayerische Landesbank Girozentrale 05/21/04 1.450% 95,000,000 350,000 Credit Agricole Indosuez 07/02/03 1.240 to 1.250 350,000,000 100,000 Credit Suisse First Boston 07/03/03 1.265 100,000,000 110,000 Deutsche Bank AG 07/01/03 1.130* 110,000,000 250,000 Rabobank Nederland N.V. 07/01/03 1.020* 249,952,619 100,000 Royal Bank of Scotland PLC 07/07/03 1.240 100,001,807 75,000 Svenska Handelsbanken 12/31/03 1.180 74,971,539 587,000 Westdeutcshe Landesbank Girozentrale 07/01/03 to 1.024 to 04/21/04 1.050* 586,945,345 64,000 Westdeutsche Landesbank Girozentrale 04/21/04 1.500 64,000,000 2,141,844,889 Total Certificates of Deposit (cost--$2,451,842,139) 2,451,842,139 - ---------------------------------------------------------------------------------------------------------------------- TIME DEPOSITS--1.83% BANKING-NON-U.S.--1.83% 200,000 Credit Lyonnais 07/01/03 1.344 200,000,000 200,000 Deutsche Bank AG 07/01/03 1.390 200,000,000 Total Time Deposit (cost--$400,000,000) 400,000,000 - ---------------------------------------------------------------------------------------------------------------------- COMMERCIAL PAPER@--37.09% ASSET BACKED-AUTO & TRUCK--0.92% 200,000 New Center Asset Trust 07/23/03 1.250 199,847,222 ASSET BACKED-MISCELLANEOUS--15.87% 50,000 Amsterdam Funding Corp. 07/09/03 1.240 49,986,222 330,000 Asset Securitization Cooperative Corp. 07/10/03 to 1.020 to 08/20/03 1.250 329,829,562 31,938 Barton Capital Corp. 07/08/03 1.240 31,930,299 560,204 Falcon Asset Securitization Corp. 07/01/03 to 0.950 to 07/29/03 1.260 560,007,666 315,000 Galaxy Funding, Inc. 07/14/03 to 0.930 to 09/26/03 1.270 314,595,628 40,000 Giro Funding U.S. Corp. 07/07/03 1.250 39,991,667
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PRINCIPAL AMOUNT MATURITY INTEREST (000) DATES RATES VALUE - ---------------------------------------------------------------------------------------------------------------------- COMMERCIAL PAPER@--(CONTINUED) ASSET BACKED-MISCELLANEOUS--(CONCLUDED) $124,326 Giro Multi-Funding Corp. 07/15/03 to 1.000 to 07/21/03 1.050% $ 124,260,511 400,000 Grampian Funding LLC 07/24/03 to 0.930 to 10/23/03 1.050 399,604,250 160,349 Old Line Funding Corp. 07/10/03 to 1.000 to 08/01/03 1.240 160,262,766 540,300 Preferred Receivables Funding Corp. 07/07/03 to 0.960 to 07/30/03 1.230 540,096,892 115,000 Quincy Capital Corp. 07/15/03 1.000 114,955,278 240,076 Receivables Capital Corp. 07/16/03 to 0.960 to 07/18/03 0.980 239,974,943 160,718 Thunderbay Funding 07/17/03 to 1.000 to 08/05/03 1.080 160,587,306 15,065 Triple-A One Funding Corp. 07/07/03 1.210 15,061,962 183,000 Variable Funding Capital Corp. 07/09/03 to 1.050 to 07/17/03 1.200 182,929,600 200,000 Windmill Funding Corp. 07/09/03 to 1.050 to 07/15/03 1.240 199,936,056 3,464,010,608 AUTOMOBILE OEM--0.39% 50,000 BMW U.S. Capital, Inc. 07/15/03 1.240 49,975,889 34,694 Volkswagen of America, Inc. 07/07/03 0.950 34,688,507 84,664,396 BANKING-U.S.--7.00% 100,000 ANZ (Deleware), Inc. 08/18/03 1.000 99,866,667 100,000 Barclays U.S. Funding Corp. 08/26/03 0.920 99,856,889 124,000 Credit Lyonnais North America, Inc. 08/15/03 1.010 123,843,450 75,000 Danske Corp. 07/01/03 1.230 75,000,000 300,000 Dexia Delaware LLC 07/07/03 1.240 299,938,000 189,900 Nordea North America, Inc. 07/15/03 to 0.900 to 09/18/03 1.095 189,664,372 330,000 San Paolo IMI U.S. Financial Co. 07/02/03 to 1.000 to 08/18/03 1.240 329,841,328 50,000 Societe Generale North America, Inc. 07/07/03 1.245 49,989,625 160,000 Stadshypotek Del, Inc. 07/16/03 to 1.080 to 07/29/03 1.250 159,897,517 100,000 Westpac Banking Corp. 09/09/03 0.900 99,825,000 1,527,722,848
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PRINCIPAL AMOUNT MATURITY INTEREST (000) DATES RATES VALUE - ---------------------------------------------------------------------------------------------------------------------- COMMERCIAL PAPER@--(CONCLUDED) BANKING-NON-U.S.--3.35% $77,000 Bank of Ireland 07/02/03 1.230% $ 76,997,369 264,319 HBOS Treasury Services PLC 08/07/03 to 0.900 to 09/16/03 1.100 263,883,988 390,000 Rabobank Nederland N.V. 07/01/03 1.300 390,000,000 730,881,357 BROKERAGE--3.66% 300,000 Citigroup Global Markets Holdings, Inc. 07/24/03 0.930 299,821,750 200,000 Credit Suisse First Boston, Inc. 07/07/03 to 1.100 to 07/14/03 1.250 199,939,444 300,000 Morgan Stanley & Co. 07/01/03 to 1.020 to 07/17/03 1.040 299,907,556 799,668,750 FINANCE-NONCAPTIVE CONSUMER--0.46% 100,000 American Express Credit Corp. 07/10/03 1.090 99,972,750 FINANCE-NONCAPTIVE DIVERSIFIED--2.26% 50,000 CIT Group, Inc. 07/28/03 to 1.000 to 07/29/03 1.010 49,961,720 150,000 GE Capital International Funding, Inc. 07/25/03 to 0.920 to 12/17/03 1.080 149,532,111 150,000 General Electric Capital Corp. 08/12/03 1.160 149,797,000 145,000 International Lease Finance Corp. 07/07/03 to 07/08/03 1.180 144,969,025 494,259,856 PHARMACEUTICALS--1.52% 14,750 Merck & Co., Inc. 07/09/03 0.900 14,747,050 317,048 Pfizer, Inc. 07/08/03 to 0.910 to 08/11/03 1.170 316,851,903 331,598,953 TELECOM-WIRELINES--0.18% 40,000 Verizon Network Funding Co. 07/23/03 0.920 39,977,511 UTILITIES-OTHER--1.48% 324,500 Aktiengesellsc Ag 07/16/03 to 0.980 to 08/21/03 1.250 324,200,884 Total Commercial Paper (cost--$8,096,805,135) 8,096,805,135
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PRINCIPAL AMOUNT MATURITY INTEREST (000) DATES RATES VALUE - ---------------------------------------------------------------------------------------------------------------------- SHORT-TERM CORPORATE OBLIGATIONS*--5.94% ASSET BACKED-FINANCE--4.63% $200,000 Beta Finance, Inc. 07/01/03 1.075 to 1.330% $ 199,999,671 154,000 CC (USA), Inc. 07/01/03 1.080 154,000,000 70,000 Dorada Finance, Inc. 07/01/03 1.075 69,999,300 586,000 K2 (USA) LLC 07/01/03 to 1.080 to 07/18/03 1.330 586,000,000 1,009,998,971 BANKING-U.S.--0.66% 145,000 Wells Fargo & Co. 07/01/03 1.030 145,000,000 ENERGY-INTEGRATED--0.47% 103,000 BP Capital Markets PLC 07/01/03 1.045 103,000,000 FINANCE-NONCAPTIVE DIVERSIFIED--0.18% 40,000 General Electric Capital Corp. 07/09/03 1.342 40,000,000 Total Short-Term Corporate Obligations (cost--$1,297,998,971) 1,297,998,971 - ---------------------------------------------------------------------------------------------------------------------- NUMBER OF SHARES (000) - ---------------------------------------------------------------------------------------------------------------------- MONEY MARKET FUNDS+--1.52% 328,287 AIM Liquid Assets Portfolio 07/01/03 1.050 328,287,392 1,184 AIM Prime Portfolio 07/01/03 1.040 1,184,151 119 BlackRock Provident Institutional TempFund 07/01/03 1.002 119,192 967 Dreyfus Cash Management Fund 07/01/03 1.006 967,027 1,971 Scudder Money Market Series 07/01/03 1.040 1,970,824 Total Money Market Funds (cost--$332,528,586) 332,528,586 PRINCIPAL AMOUNT (000) - ---------------------------------------------------------------------------------------------------------------------- INVESTMENTS OF CASH COLLATERAL FROM SECURITIES LOANED--6.61% COMMERCIAL PAPER@--2.56% BANKING-U.S.--0.33% $71,681 San Paolo IMI U.S. Financial Co. 07/10/03 1.240 71,681,290
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PRINCIPAL AMOUNT MATURITY INTEREST (000) DATES RATES VALUE - ---------------------------------------------------------------------------------------------------------------------- INVESTMENTS OF CASH COLLATERAL FROM SECURITIES LOANED--(CONCLUDED) BANKING-NON-U.S.--0.79% $171,759 Credit Agricole Indosuez North America, Inc. 07/03/03 1.230% $ 171,759,057 BROKERAGE--1.44% 149,994 Bear Stearns Cos., Inc. 07/01/03 1.350 149,994,375 164,741 Citigroup Global Markets Holdings, Inc. 07/08/03 1.230 164,740,675 314,735,050 Total Commercial Paper (cost--$558,175,397) 558,175,397 - ---------------------------------------------------------------------------------------------------------------------- TIME DEPOSIT--2.08% BANKING-NON-U.S.--2.08% 455,000 Societe Generale (cost--$455,000,000) 07/01/03 1.375 455,000,000 NUMBER OF SHARES (000) - ---------------------------------------------------------------------------------------------------------------------- MONEY MARKET FUNDS+--1.97% 1,272 Aim Liquid Assets Portfolio 07/01/03 1.050 1,272,491 428,301 UBS Private Money Market Fund LLC 07/01/03 1.124 428,300,786 Total Money Market Funds (cost--$429,573,277) 429,573,277 - ---------------------------------------------------------------------------------------------------------------------- Total Investments of Cash Collateral From Securities Loaned (cost--$1,442,748,674) 1,442,748,674 - ---------------------------------------------------------------------------------------------------------------------- Total Investments (cost--$23,335,561,147 which approximates cost for federal income tax purposes) (2)--106.88% 23,335,561,147 - ---------------------------------------------------------------------------------------------------------------------- Liabilities in excess of other assets--(6.88)% (1,502,686,558) Net Assets (applicable to 21,828,883,755 shares of common stock outstanding equivalent to $1.00 per share)--100.00% $ 21,832,874,589 - ----------------------------------------------------------------------------------------------------------------------
* Variable rate securities--maturity dates reflect earlier of reset date or stated maturity date. The interest rates shown are the current rates as of June 30, 2003 and reset periodically. @ Interest rates shown are discount rates at date of purchase. (1) Security, or portion thereof, was on loan at June 30, 2003. (2) Includes $1,476,692,220 of investments in securities on loan, at value. OEM--Original Equipment Manufacturer + Interest rates shown reflect yield at June 30, 2003. Weighted average maturity -- 79 days See accompanying notes to financial statements 11 UBS RMA U.S. GOVERNMENT PORTFOLIO Statement of Net Assets -- June 30, 2003
PRINCIPAL AMOUNT MATURITY INTEREST (000) DATES RATES VALUE - ---------------------------------------------------------------------------------------------------------------------- U.S. GOVERNMENT OBLIGATIONS--56.88% $800,000 U.S. Treasury Bills (1) 07/10/03 to 0.805 to 12/26/03 1.210%@ $ 798,017,844 625,000 U.S. Treasury Notes (1) 08/15/03 to 2.750 to 02/29/04 5.250 629,860,031 Total U.S. Government Obligations (cost--$1,427,877,875) 1,427,877,875 REPURCHASE AGREEMENTS--42.69% 200,000 Repurchase Agreement dated 06/30/03 with Bank One, collateralized by $179,512,000 U.S. Treasury Bonds, 10.375% due 11/15/09; (value-$204,087,193); proceeds: $200,005,667 07/01/03 1.020 200,000,000 300,000 Repurchase Agreement dated 06/30/03 with Bear Stearns & Co., collateralized by $173,182,000 U.S. Treasury Bonds, 6.120% to 11.250% due 05/15/09 to 08/15/29 and $49,435,000 U.S. Treasury Notes, 2.750% to 4.875% due 10/31/03 to 02/15/12; (value-$311,529,701); proceeds: $300,009,000 07/01/03 1.080 300,000,000 171,789 Repurchase Agreement dated 06/30/03 with Deutsche Bank Securities, Inc., collateralized by $357,827,815 U.S. Treasury Bonds, Zero Coupon to 8.875% due 02/15/10 to 11/15/25 and $895,475 U.S. Treasury Notes, Zero Coupon due 08/15/06; (value-$175,224,780); proceeds: $171,794,154 07/01/03 1.080 171,789,000 400,000 Repurchase Agreement dated 06/30/03 with Goldman Sachs Group, Inc., collateralized by $75,931,000 U.S. Treasury Bond, 11.250% due 02/15/15 and $264,811,000 U.S. Treasury Note, 4.750% due 02/15/04; (value-$408,000,633); proceeds: $400,012,000 07/01/03 1.080 400,000,000 Total Repurchase Agreements (cost--$1,071,789,000) 1,071,789,000 - ----------------------------------------------------------------------------------------------------------------------
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PRINCIPAL AMOUNT MATURITY INTEREST (000) DATES RATES VALUE - ---------------------------------------------------------------------------------------------------------------------- MONEY MARKET FUNDS+--0.21% 2,777 AIM Short-Term Investment Trust Treasury Portfolio 07/01/03 1.010% $ 2,776,712 2,261 Federated Treasury Securities Fund 07/01/03 0.905 2,260,516 74 Goldman Treasury Investor Fund 07/01/03 0.915 73,653 Total Money Market Funds (cost--$5,110,881) 5,110,881 - ---------------------------------------------------------------------------------------------------------------------- INVESTMENTS OF CASH COLLATERAL FROM SECURITIES LOANED--7.59% PRINCIPAL AMOUNT (000) - ---------------------------------------------------------------------------------------------------------------------- REPURCHASE AGREEMENT--5.14% $129,108 Repurchase Agreement dated 06/30/03 with Deutsche Bank Securities., Inc., collateralized by $268,924,100 U.S. Treasury Bonds, Zero Coupon to 8.875% due 02/15/10 to 11/15/25 and $675,534 U.S. Treasury Notes, Zero Coupon due 08/15/06 (value-$131,690,743); proceeds: $129,112,444 (cost--$129,108,571) 07/01/03 1.080 129,108,571 NUMBER OF SHARES (000) - ---------------------------------------------------------------------------------------------------------------------- MONEY MARKET FUNDS+--2.45% 61,522 AIM Short-Term Investment Trust Treasury Portfolio (cost--$61,521,566) 07/01/03 1.010 61,521,566 Total Investments of Cash Collateral From Securities Loaned (cost--$190,630,137) 190,630,137 Total Investments (cost--$2,695,407,893 which approximates cost for federal income tax purposes) (2)--107.37% 2,695,407,893 Liabilities in excess of other assets--(7.37%) (184,954,686) Net Assets (applicable to 2,510,824,616 shares of common stock outstanding equivalent to $1.00 per share)--100.00% $ 2,510,453,207 - ----------------------------------------------------------------------------------------------------------------------
(1) Security, or portion thereof, was on loan at June 30, 2003. (2) Includes $185,126,270 of investments in securities on loan, at value. @ Interest rates shown are discount rates at date of purchase. + Interest rates shown reflect yield at June 30, 2003. Weighted average maturity -- 69 days See accompanying notes to financial statements 13 UBS RMA TAX-FREE FUND INC. STATEMENT OF NET ASSETS -- JUNE 30, 2003
PRINCIPAL AMOUNT MATURITY INTEREST (000) DATES RATES VALUE - -------------------------------------------------------------------------------------------------------------------------- MUNICIPAL BONDS AND NOTES--97.72% ALABAMA--1.52% $14,135 Birmingham Alabama Refunding, Series A A 1.000% $ 14,135,000 11,265 Mobile Alabama Industrial Development Board, Dock and Wharf Revenue Refunding (Holnam, Inc. Project), Series A A 0.900 11,265,000 8,700 Mobile Alabama Industrial Development Board, Dock and Wharf Revenue Refunding (Holnam, Inc. Project), Series B A 0.950 8,700,000 15,275 University of Alabama Revenue (University Hospital), Series C A 0.970 15,275,000 49,375,000 - -------------------------------------------------------------------------------------------------------------------------- ARIZONA--2.07% 35,000 Apache County Industrial Development Authority (Tucson Electric Power Co.) A 1.050 35,000,000 11,200 Apache County Industrial Development Authority (Tucson Electric Power Co.), Series B A 1.000 11,200,000 8,000 Apache County Industrial Development Authority (Tucson Electric Power Co. Springerville Project) A 1.150 8,000,000 8,200 Pima County Industrial Development Authority Revenue (Tucson Electric Power Co. Ivington), Series A A 1.050 8,200,000 4,700 Pinal County Pollution Control Revenue (Newmont Mining Corp.) A 0.950 4,700,000 67,100,000 - -------------------------------------------------------------------------------------------------------------------------- CALIFORNIA--0.78% 18,600 California State Department of Water Resources Powersupply Revenue, Series C-4 A 1.050 18,600,000
14
PRINCIPAL AMOUNT MATURITY INTEREST (000) DATES RATES VALUE - -------------------------------------------------------------------------------------------------------------------------- MUNICIPAL BONDS AND NOTES--(CONTINUED) CALIFORNIA--(CONCLUDED) $1,600 California State, Series A-3 A 0.950% $ 1,600,000 5,000 California State, Series B-3 A 1.000 5,000,000 25,200,000 - -------------------------------------------------------------------------------------------------------------------------- COLORADO--2.27% 9,000 Colorado Housing & Finance Authority, Housing Revenue Multi-Family Class III, Series A-1 A 1.050 9,000,000 10,000 Colorado Housing & Finance Authority, Housing Revenue, Single-Family Series C-6 A 1.550 10,000,000 29,000 Colorado Regional Transportation District Certificates of Participation (Transit Vehicles Project), Series A A 0.950 29,000,000 17,000 East 470 Public Highway Authority Co. Revenue, Vehicle Registration Fee A 0.950 17,000,000 8,490 Smith Creek Metropolitan District Revenue A 0.950 8,490,000 73,490,000 - -------------------------------------------------------------------------------------------------------------------------- CONNECTICUT--0.37% 12,000 Connecticut Special Tax Obligation Revenue (Second Lien Transportation) A 1.050 12,000,000 DISTRICT OF COLUMBIA--4.32% 40,000 District of Columbia (Multi-Modal) Refunded, Series D A 1.050 40,000,000 13,115 District of Columbia (Multi-Modal), Series A A 1.050 13,115,000 17,000 District of Columbia (Multi-Modal), Series B A 1.050 17,000,000 5,675 District of Columbia Refunded, Series D A 0.950 5,675,000 11,000 District of Columbia Revenue (Foundation Jewish Campus Life) A 1.000 11,000,000 25,000 District of Columbia Revenue (George Washington University), Series B A 0.900 25,000,000 10,000 District of Columbia Revenue (JFK Center for the Performing Arts) A 1.950 10,000,000 18,055 District of Columbia Revenue Pooled Loan Program, Series A A 1.000 18,055,000 139,845,000 - --------------------------------------------------------------------------------------------------------------------------
15
PRINCIPAL AMOUNT MATURITY INTEREST (000) DATES RATES VALUE - -------------------------------------------------------------------------------------------------------------------------- MUNICIPAL BONDS AND NOTES--(CONTINUED) FLORIDA--6.79% $1,700 Alachua County Health Facilities Authority, Health Facilities Revenue (Shands Teaching Hospital), Series A A 1.000% $ 1,700,000 5,400 Collier County Health Facilities Authority, Health Facilities Revenue (Cleveland Clinic Health), Series C-1 A 0.980 5,400,000 6,450 Collier County Health Facilities Authority, Health Facilities Revenue (The Moorings, Inc. Project) A 0.950 6,450,000 5,890 Dade County Industrial Development Authority (Dolphins Stadium Project), Series B A 1.000 5,890,000 4,200 Florida Gulf Coast University Certificates of Participation A 1.100 4,200,000 7,600 Florida Housing Finance Agency, Multi-Family Housing Revenue (Housing Lakeside), Series B A 0.950 7,600,000 6,300 Florida Housing Finance Agency (Parrots Landing Project), Series A A 0.950 6,300,000 5,500 Jacksonville Electric Authority Revenue (Electric Systems), Series F A 1.000 5,500,000 5,300 Jacksonville Electric Authority Revenue (Subordinated Electric Systems), Series B A 1.000 5,300,000 39,000 Jacksonville Electric Authority Revenue (Water & Sewer Systems), Series B A 0.950 39,000,000 20,000 Jacksonville Health Facilities Authority, Hospital Revenue, Series A A 1.000 20,000,000 8,485 Lee County Housing Finance Authority, Multi-Family Housing Revenue Refunding (Forestwood Apartments Project), Series A A 0.950 8,485,000 12,900 Nassau County Pollution Control Revenue (Rayonier Project) A 0.950 12,900,000 5,700 Palm Beach County Housing Finance Authority Revenue Refunding (Cotton Bay Apartments Project), Series D A 0.950 5,700,000 6,400 Palm Beach County Housing Finance Authority Revenue Refunding (Mahogony Bay Apartments Project), Series C A 0.950 6,400,000
16
PRINCIPAL AMOUNT MATURITY INTEREST (000) DATES RATES VALUE - -------------------------------------------------------------------------------------------------------------------------- MUNICIPAL BONDS AND NOTES--(CONTINUED) FLORIDA--(CONCLUDED) $8,100 St. John's County Industrial Development Authority (Glenmoor St. John's Project), Series C A 0.950% $ 8,100,000 55,965 Sunshine State Governmental 0.970 to Financing Commission Revenue A 1.050 55,965,000 15,000 University of South Florida Foundation, Inc. A 1.030 15,000,000 219,890,000 - -------------------------------------------------------------------------------------------------------------------------- GEORGIA--5.59% 4,900 Athens-Clarke County Unified Government Development Authority Revenue (UGA Real Estate Funding Project) A 1.000 4,900,000 6,000 Atlanta Airport Revenue General Refunding, Series C-3 A 1.000 6,000,000 5,000 Atlanta Development Authority Revenue (Clark University Project), Series A A 1.030 5,000,000 27,580 Burke County Development Authority Pollution Control (Oglethorpe Power Corp.), Series A A 0.950 27,580,000 4,300 De Kalb County Housing Authority, Multi-Family Housing Revenue Refunding (Post Brook Project) A 1.000 4,300,000 14,300 De Kalb County Housing Authority, Multi-Family Housing Revenue Refunding (Post Walk Project) A 1.000 14,300,000 15,935 De Kalb County Housing Authority, Multi-Family Housing Revenue Refunding (Wood Terrace Apartments Project) A 1.050 15,935,000 5,030 De Kalb Private Hospital Authority Revenue Anticipation Certificates (ESR Childrens Health), Series B A 0.950 5,030,000 5,000 Fulco Georgia Hospital Authority Revenue Anticipation Certificates (Shepherd Center, Inc. Project) A 0.950 5,000,000 27,600 Fulton County Housing Authority, Multi-Family Housing Revenue Refunding (Spring Creek Crossing) A 1.000 27,600,000
17
PRINCIPAL AMOUNT MATURITY INTEREST (000) DATES RATES VALUE - -------------------------------------------------------------------------------------------------------------------------- MUNICIPAL BONDS AND NOTES--(CONTINUED) GEORGIA--(CONCLUDED) $12,655 Georgia Municipal Electric Authority Variable (Project One Subordination) A 1.000% $ 12,655,000 10,000 Georgia Municipal Electric Authority Variable (Project One Subordination), Series D A 0.950 10,000,000 4,375 Georgia Municipal Gas Authority Revenue (Gas Portfolio II Project), Series B A 1.050 4,375,000 4,200 Georgia State, Series B 07/01/03 4.000 4,200,000 10,400 Gwinnett County Housing Authority, Multi-Family Housing Revenue (Greens Apartments Project) A 1.000 10,400,000 6,000 Gwinnett County Housing Authority, Multi-Family Housing Revenue (Post Chase Project) A 1.000 6,000,000 13,150 Gwinnett County Housing Authority, Multi-Family Housing Revenue (Post Court Project) A 1.000 13,150,000 4,700 Metropolitan Atlanta Rapid Transit Authority (Georgia Sales Tax Revenue), Series B A 0.900 4,700,000 181,125,000 - -------------------------------------------------------------------------------------------------------------------------- IDAHO--0.86% 4,430 Idaho Health Facilities Authority Revenue (St. Lukes Regional Medical Center Project) A 1.000 4,430,000 12,000 Idaho State Tax Anticipation Notes 06/30/04 2.000 12,142,440 11,300 Power County Pollution Control Revenue (FMC Corp. Project) A 0.950 11,300,000 27,872,440 - -------------------------------------------------------------------------------------------------------------------------- ILLINOIS--9.38% 3,500 Chicago Illinois Metropolitan Water Reclamation District Capital Improvement, Series E A 0.900 3,500,000 7,000 Chicago Illinois Metropolitan Water Reclamation District Refunding, Series A A 0.900 7,000,000 26,500 Chicago Illinois Metropolitan Water Reclamation District Refunding, Series B A 0.900 26,500,000
18
PRINCIPAL AMOUNT MATURITY INTEREST (000) DATES RATES VALUE - -------------------------------------------------------------------------------------------------------------------------- MUNICIPAL BONDS AND NOTES--(CONTINUED) ILLINOIS--(CONTINUED) $39,170 Chicago Illinois O'Hare International Airport Revenue, Series C A 1.000% $ 39,170,000 23,200 Illinois Development Finance Authority Pollution Control Revenue (Commonwealth Edison) A 0.950 23,200,000 11,400 Illinois Development Finance Authority Revenue (Chicago Symphony Orchestra) A 0.950 11,400,000 7,800 Illinois Development Finance Authority Revenue (Evanston Northwestern), Series A A 0.950 7,800,000 14,100 Illinois Development Finance Authority Revenue (Francis W. Parker School Project) A 0.950 14,100,000 5,510 Illinois Development Finance Authority Revenue (Jewish Federation Metropolitan Chigaco Project) A 1.000 5,510,000 5,145 Illinois Development Finance Authority Revenue (Jewish Federation Project) A 1.000 5,145,000 16,020 Illinois Development Finance Authority Revenue, Multi-Family Housing Revenue Refunding (Orleans Illinois Project) A 1.050 16,020,000 2,300 Illinois Development Finance Authority Revenue (St. Vincent De Paul Project), Series A A 0.900 2,300,000 4,645 Illinois Educational Facilities Authority Revenue (Northwestern University) A 1.050 4,645,000 8,000 Illinois Health Facilities Authority Revenue Pooled Loan, Series C A 1.050 8,000,000 15,000 Illinois Health Facilities Authority Revenue (Resurrection Health), Series A A 0.950 15,000,000 18,985 Illinois Health Facilities Authority Revenue (University of Chicago Hospital Project), Series C A 1.000 18,985,000
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PRINCIPAL AMOUNT MATURITY INTEREST (000) DATES RATES VALUE - -------------------------------------------------------------------------------------------------------------------------- MUNICIPAL BONDS AND NOTES--(CONTINUED) ILLINOIS--(CONCLUDED) $32,925 Illinois Health Facilities Authority Revenue Refunding (Advocate Health Care), Series B A 1.050% $ 32,925,000 13,140 Illinois Health Facilities Authority Revenue Refunding (Southern Illinois Healthcare), Series B A 1.150 13,140,000 33,600 Illinois Toll & Highway Authority A 0.900 33,600,000 16,000 Lisle Illinois Multi-Family Revenue Housing (Four Lakes Phase V) A 0.900 16,000,000 303,940,000 - -------------------------------------------------------------------------------------------------------------------------- INDIANA--3.28% 11,400 Indiana Health Facility Financing Authority Hospital Revenue (Aces Rehabilation Hospital) A 0.950 11,400,000 5,000 Indiana Health Facility Financing Authority Revenue (Ascension Health Credit Group), Series A-2 07/03/03 1.830 5,000,000 15,180 Indiana Health Facility Financing Authority Revenue (Ascension Health Credit Group), Series B A 0.950 15,180,000 4,000 Indiana Municipal Power Supply Systems Revenue Refunding, Series A A 0.950 4,000,000 8,200 Indiana State Educational Facilities Authority Revenue (University of Notre Dame) A 0.800 8,200,000 14,000 Indianapolis Local Public Improvement Bond, Series F 08/29/03 1.250 14,006,066 9,000 Indianapolis Local Public Improvement Bond, Series H 01/08/04 1.250 9,017,278 10,000 Indianapolis Public Improvement Bond Bank Notes, Series B 07/08/03 2.000 10,001,656 29,500 St. Joseph County Educational Facilities Revenue (University of Notre Dame) A 0.850 29,500,000 106,305,000 - -------------------------------------------------------------------------------------------------------------------------- IOWA--0.72% 5,100 Iowa Finance Authority Wellness Facility Revenue (Community Y Marshalltown Project) A 1.050 5,100,000
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PRINCIPAL AMOUNT MATURITY INTEREST (000) DATES RATES VALUE - -------------------------------------------------------------------------------------------------------------------------- MUNICIPAL BONDS AND NOTES--(CONTINUED) IOWA--(CONCLUDED) $18,100 Iowa Higher Education Loan Authority Revenue (Aces Education Loan Private College) A 1.000% $ 18,100,000 23,200,000 - -------------------------------------------------------------------------------------------------------------------------- KENTUCKY--0.13% 4,100 Breckinridge County Lease Program Revenue (Kentucky Association Counties Leasing Trust), Series A A 1.000 4,100,000 LOUISIANA--1.32% 9,700 Calcasieu Parish Industrial Development Board Pollution Control Revenue (Citgo Petrol Corp.) A 1.000 9,700,000 1,200 East Baton Rouge Parish Louisiana Pollution Control Revenue Refunding (Exxon Project) A 0.950 1,200,000 15,690 Louisiana Public Facilities Authority Revenue (College and University Equipment and Capital), Series A A 1.050 15,690,000 16,100 South Louisiana Port Commission Marine Terminal Facilities Revenue (Occidental Petroleum) A 1.000 16,100,000 42,690,000 - -------------------------------------------------------------------------------------------------------------------------- MARYLAND--4.03% 12,755 Baltimore County Revenue (Oak Crest Village, Inc. Project), Series A A 1.000 12,755,000 18,150 Baltimore Maryland Industrial Development Authority (Baltimore Capital Acquistion) A 0.950 18,150,000 28,900 Maryland Health & Higher Educational Facilities Authority (Pooled Loan Program), Series A A 0.950 28,900,000 29,675 Maryland Health & Higher Educational Facilities Authority (Pooled Loan Program), Series B A 0.900 29,675,000 21,595 Maryland Health & Higher Educational Facilities Authority (Pooled Loan Program), Series D A 0.950 21,595,000
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PRINCIPAL AMOUNT MATURITY INTEREST (000) DATES RATES VALUE - -------------------------------------------------------------------------------------------------------------------------- MUNICIPAL BONDS AND NOTES--(CONTINUED) MARYLAND--(CONCLUDED) $4,765 Maryland State Economic Development Corp. Economic Development Revenue (Soccer Project) A 1.000% $ 4,765,000 5,520 Northeast Maryland Waste Disposal Authority Resources Recovery Revenue Refunding (Hartford County Resources) A 0.800 5,520,000 9,200 University of Maryland Equipment Tender Notes A 0.900 9,200,000 130,560,000 - -------------------------------------------------------------------------------------------------------------------------- MASSACHUSETTS--7.75% 5,975 Andover Massachusetts Bond Anticipation Notes 12/18/03 1.500 5,993,182 14,009 Ashburnham & Westminster ETC Regional School District Bond Anticipation Notes 01/29/04 2.250 14,089,078 10,600 Boston Water & Sewer Commission Revenue, Series A A 0.900 10,600,000 14,000 Everett Massachusetts Bond Anticipation Notes 09/12/03 2.500 14,028,700 17,600 Massachusetts State Bond Anticipation Notes, Series A 09/01/03 4.000 17,669,247 10,000 Massachusetts State Health & Educational Facilities Authority Revenue (Bentley College) A 1.000 10,000,000 3,600 Massachusetts State Health & Educational Facilities Authority Revenue (Capital Asset Program), Series C A 0.900 3,600,000 15,000 Massachusetts State Health & Educational Facilities Authority Revenue (Harvard University) A 1.050 15,000,000 12,000 Massachusetts State Health & Educational Facilities Authority Revenue (Harvard University), Series BB A 1.050 12,000,000 14,650 Massachusetts State Health & Educational Facilities Authority Revenue (Partners Healthcare System), Series P-2 A 1.000 14,650,000
22
PRINCIPAL AMOUNT MATURITY INTEREST (000) DATES RATES VALUE - -------------------------------------------------------------------------------------------------------------------------- MUNICIPAL BONDS AND NOTES--(CONTINUED) MASSACHUSETTS--(CONCLUDED) $10,000 Massachusetts State Health & Educational Facilities Authority, Massachusetts Institute of Technology, Series J-2 A 0.850% $ 10,000,000 25,200 Massachusetts State Water Resources Authority Refunding (General Multi-Modal), Series B A 0.900 25,200,000 20,850 Massachusetts State Water Resources Authority Refunding (General Multi-Modal), Series C A 0.900 20,850,000 5,000 Mendon-Upton Regional School District Bond Anticipation Notes 09/19/03 2.250 5,008,745 18,000 Natick Massachusetts Bond Anticipation Notes 04/30/04 2.000 18,133,427 44,000 Route 3 North Transport Improvement Associates Lease Revenue (Demand Obligation Bond), Series B A 0.900 44,000,000 10,000 Tyngsborough Massachusetts Bond Anticipation Notes 11/06/03 3.000 10,043,064 250,865,443 - -------------------------------------------------------------------------------------------------------------------------- MICHIGAN--2.14% 9,900 Detroit Sewage Disposal Revenue Refunding, Series B A 0.930 9,900,000 8,200 Michigan State Grant Anticipation Notes, Series B A 0.900 8,200,000 4,000 Michigan State Housing Development Authority (Shoal Creek) A 1.000 4,000,000 16,800 Michigan State Housing Development Authority, Series 2000-A A 1.050 16,800,000 2,300 Michigan State Strategic Fund Pollution Control Revenue Refunding (Consumers Power Project), Series A A 0.950 2,300,000 5,400 Northville Township Economic Development Corp. Ltd., Obligation Revenue (Thrifty Northville, Inc. Project) A 1.175 5,400,000 5,300 University of Michigan Revenue (University Hospital), Series A A 0.950 5,300,000
23
PRINCIPAL AMOUNT MATURITY INTEREST (000) DATES RATES VALUE - -------------------------------------------------------------------------------------------------------------------------- MUNICIPAL BONDS AND NOTES--(CONTINUED) MICHIGAN--(CONCLUDED) $8,300 University of Michigan Revenue (University Medical Service Plan), Series A A 0.950% $ 8,300,000 9,135 University of Michigan Revenue Refunding (University Medical Service Plan), Series A1 A 0.950 9,135,000 69,335,000 - -------------------------------------------------------------------------------------------------------------------------- MISSISSIPPI--0.59% 19,100 Harrison County Pollution Control Revenue (DuPont) A 0.950 19,100,000 MISSOURI--3.09% 6,200 Missouri Development Finance Board Cultural Facilities Revenue (Nelson Gallery Foundation), Series B A 0.980 6,200,000 14,000 Missouri State Health & Educational Facilities Authority Revenue (Assemblies of God College) A 1.000 14,000,000 14,255 Missouri State Health & Educational Facilities Authority Revenue (Barnes Hospital Project) A 0.950 14,255,000 24,195 Missouri State Health & Educational Facilities Authority Revenue (Cox Health Systems) A 1.100 24,195,000 15,400 Missouri State Health & Educational Facilities Authority Revenue (Medical Research Facilities Stowers) A 0.950 15,400,000 14,500 Missouri State Health & Educational Facilities Authority Revenue, 0.950 to (Washington University), Series B A 0.980 14,500,000 5,570 St. Charles County Industrial Development Authority Revenue Refunding (Casalon Apartments Project) A 0.980 5,570,000 6,000 St. Charles County Industrial Development Authority Revenue Refunding (Remington Apartments Project) A 0.980 6,000,000 100,120,000 - --------------------------------------------------------------------------------------------------------------------------
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PRINCIPAL AMOUNT MATURITY INTEREST (000) DATES RATES VALUE - -------------------------------------------------------------------------------------------------------------------------- MUNICIPAL BONDS AND NOTES--(CONTINUED) NEBRASKA--0.65% $10,100 Lancaster County Hospital Authority Revenue (Immanuel Health Systems), Series A A 0.970% $ 10,100,000 11,100 Nebraska Help Increase Revenue (Multi-Modal), Series E A 1.050 11,100,000 21,200,000 - -------------------------------------------------------------------------------------------------------------------------- NEVADA--0.74% 24,000 Clark County Airport Improvement Revenue (Sub Lien), Series A-1 A 0.900 24,000,000 NEW HAMPSHIRE--1.45% 13,800 New Hampshire Business Finance Authority Resource Recovery Revenue (Wheelabrator), Series A A 0.950 13,800,000 5,885 New Hampshire Higher Educational & Health Facilities Authority Revenue (Mary Hitchcock), Series 85-H A 0.950 5,885,000 19,525 New Hampshire Housing Finance Authority, Multi-Family Housing Revenue (EQR Bond Partnership Project) A 0.900 19,525,000 7,700 Strafford County Tax Anticipation Notes 12/26/03 1.500 7,715,654 46,925,654 - -------------------------------------------------------------------------------------------------------------------------- NEW JERSEY--0.22% 7,139 Barnegat Township New Jersey Board of Education Temporary Notes 07/17/03 2.750 7,142,477 NEW MEXICO--0.25% 8,050 University of New Mexico, University Revenue A 0.900 8,050,000 NEW YORK--1.47% 10,000 Freeport New York Bond Anticipation Notes, Series A 01/22/04 2.250 10,055,418
25
PRINCIPAL AMOUNT MATURITY INTEREST (000) DATES RATES VALUE - -------------------------------------------------------------------------------------------------------------------------- MUNICIPAL BONDS AND NOTES--(CONTINUED) NEW YORK--(CONCLUDED) $ 1,600 New York City Municipal Water Finance Authority Water & Sewer Systems Revenue, Series C A 0.900% $ 1,600,000 9,600 New York City Municipal Water Finance Authority Water & Sewer Systems Revenue, Series C A 0.900 9,600,000 8,800 New York City Municipal Water Finance Authority Water & Sewer Systems Revenue, Series F-1 A 0.900 8,800,000 6,025 New York City Subseries E-5 A 0.950 to 1.100 6,025,000 1,950 New York City Subseries E-5, Series C A 0.950 1,950,000 9,630 Triborough Bridge & Tunnel Authority New York Refunding, Series A A 0.900 9,630,000 47,660,418 - -------------------------------------------------------------------------------------------------------------------------- NORTH CAROLINA--2.68% 6,800 Charlotte Certificates of Participation (Government Facilities), Series F 06/01/04 1.030 6,800,000 4,000 Mecklenburg County Lease Revenue (The Young Mens Christian Association) A 1.000 4,000,000 17,840 North Carolina Educational Facilities Finance Agency Revenue (Duke University Project), Series A A 0.960 17,840,000 11,760 North Carolina Educational Facility (Elon College) A 0.950 11,760,000 6,795 North Carolina Educational Facility Finance Agency Revenue (Providence Day) A 1.000 6,795,000 2,200 North Carolina Medical Care Commission Hospital Revenue (Duke University Hospital), Series B A 1.000 2,200,000 10,000 North Carolina State (Public Improvement Bond), Series F A 0.920 10,000,000 15,000 North Carolina State Refunding, Series B A 0.900% 15,000,000
26
PRINCIPAL AMOUNT MATURITY INTEREST (000) DATES RATES VALUE - -------------------------------------------------------------------------------------------------------------------------- MUNICIPAL BONDS AND NOTES--(CONTINUED) NORTH CAROLINA--(CONCLUDED) $7,300 North Carolina State University Raleigh Revenue (Centennial Campus), Series A A 1.050 $ 7,300,000 4,980 Winston Salem Water & Sewer Systems Refunding, Series C A 1.000 4,980,000 86,675,000 - -------------------------------------------------------------------------------------------------------------------------- OHIO--6.00% 19,000 Cincinnati City School District Bond Anticipation Notes 01/20/04 1.300 19,046,740 9,600 Cleveland Airport Systems Revenue, Series C A 0.900 9,600,000 18,900 Columbus Sewer Revenue A 1.000 18,900,000 6,000 Cuyahoga County Hospital Revenue (University Hospital Health Center) A 1.000 6,000,000 12,175 Franklin County Hospital Revenue Refunding (U.S. Health Corp.), Series A A 0.950 12,175,000 11,235 Franklin County Hospital Revenue Refunding (U.S.Health Corp.), Series B A 0.950 11,235,000 10,800 Franklin County Hospital Revenue Subordinated (Doctors Ohio Health), Series B A 1.000 10,800,000 18,500 Kent State University Revenue A 1.050 18,500,000 7,250 Mahoning County Housing Revenue (Youngstown State University Project) A 0.900 7,250,000 14,200 Ohio State Air Quality Development Authority Revenue Refunding (Ohio Edison Project), Series A A 0.950 14,200,000 3,400 Ohio State Air Quality Development Authority Revenue Refunding (Ohio Edison Project), Series C A 0.950 3,400,000 4,475 Ohio State Higher Educational Facilities Revenue (Case Western Reserve), Series A A 0.950 4,475,000
27
PRINCIPAL AMOUNT MATURITY INTEREST (000) DATES RATES VALUE - -------------------------------------------------------------------------------------------------------------------------- MUNICIPAL BONDS AND NOTES--(CONTINUED) OHIO--(CONCLUDED) $29,900 Ohio State Water Development Authority Revenue Refunding Water Development Project A 0.900% $ 29,900,000 24,000 Princeton City School District Bond Anticipation Notes 01/15/04 1.350 24,057,840 4,930 University of Toledo General Receipt A 1.050 4,930,000 194,469,580 - -------------------------------------------------------------------------------------------------------------------------- OREGON--1.39% 38,000 Multnomah County Tax & Revenue Anticipation Notes 06/30/04 1.750 38,319,200 6,700 Portland Multi-Family Revenue (South Park Block Project), Series A A 0.950 6,700,000 45,019,200 - -------------------------------------------------------------------------------------------------------------------------- PENNSYLVANIA--4.28% 14,835 Delaware County Authority Hospital Revenue (Crozer-Chester Medical Center) A 1.000 14,835,000 20,900 Delaware Valley Regional Finance Authority (Local Government Revenue) A 0.950 20,900,000 24,200 Pennsylvania Higher Educational Facilities Authority Revenue (University of Pittsburgh Health Services), Series B A 1.050 24,200,000 10,000 Pennsylvania Higher Educational Facilities Authority Revenue (University of Pittsburgh Health Services), Series C A 1.050 10,000,000 10,000 Philadelphia Authority for Industrial Development Revenue (Regional Performing Arts Center Project) A 0.950 10,000,000 9,700 Philadelphia Hospital & Higher Education Health Systems (Childrens Hospital Project), Series A A 0.980 9,700,000 10,000 Philadelphia Hospital & Higher Education Health Systems (Jefferson Health Project), Series B 03/26/04 1.200 10,000,000
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PRINCIPAL AMOUNT MATURITY INTEREST (000) DATES RATES VALUE - -------------------------------------------------------------------------------------------------------------------------- MUNICIPAL BONDS AND NOTES--(CONTINUED) PENNSYLVANIA--(CONCLUDED) $24,200 University of Pittsburgh of the Commonwealth Systems of Higher Education (University Capital Project), Series A A 1.050% $ 24,200,000 14,750 York General Authority Revenue (Pooled Financing Subordinated), Series B A 1.000 14,750,000 138,585,000 - -------------------------------------------------------------------------------------------------------------------------- RHODE ISLAND--0.43% 14,000 Warwick Rhode Island Bond Anticipation Notes 01/21/04 1.500 14,048,761 SOUTH CAROLINA--3.12% 10,000 Piedmont Municipal Power Agency, South Carolina Electric Revenue Refunding, Series A A 0.950 10,000,000 11,600 Piedmont Municipal Power Agency, South Carolina Electric Revenue Refunding, Series D A 0.900 11,600,000 7,000 Richland County School District No. 001 Bond Anticipation Notes 10/01/03 1.500 7,009,562 10,000 Rock Hill Utility Systems Revenue, Series B A 0.900 10,000,000 19,380 South Carolina Jobs Economic Development Authority (Coastal Carolina University Project), Series A A 1.000 19,380,000 5,400 South Carolina Jobs Economic Development Authority (YMCA Greenville Project) A 1.050 5,400,000 15,100 South Carolina Jobs Economic Development Authority, Hospital Facilities Revenue (Baptist Healthcare Systems) A 0.950 15,100,000
29
PRINCIPAL AMOUNT MATURITY INTEREST (000) DATES RATES VALUE - -------------------------------------------------------------------------------------------------------------------------- MUNICIPAL BONDS AND NOTES--(CONTINUED) SOUTH CAROLINA--(CONCLUDED) $13,415 South Carolina Jobs Economic Development Authority, Hospital Facilities Revenue (Orangeburg Medical Center) A 0.900% $ 13,415,000 9,000 Spartanburg County School District No. 001 Bond Anticipation Notes, Series B 05/13/04 2.000 9,068,597 100,973,159 - -------------------------------------------------------------------------------------------------------------------------- TENNESSEE--2.30% 15,000 Metropolitan Government Nashville & Davidson County, Industrial Development Refunding (David Lipscomb University Project) A 1.000 15,000,000 5,000 Metropolitan Nashville & Davidson County, Health & Educational Facilities Board Revenue (Ascension Health Credit), Series B-1 07/28/03 1.600 5,000,000 9,775 Metropolitan Nashville & Davidson County, Health & Educational Facilities Board Revenue (Vanderbilt University) A 0.900 9,775,000 3,900 Metropolitan Nashville Airport Authority A 1.000 3,900,000 17,150 Montgomery County Public Building Authority Revenue, (Pooled Loan) A 1.000 17,150,000 8,220 Shelby County, Series A A 1.000 8,220,000 5,500 Signal Mountain Health Educational & Housing Facilities Board Revenue Refunding (Alexian Village) A 1.030 5,500,000 9,790 Tusculum Health Educational & Housing Board, Educational Facilities Revenue (Tusculum College Project) A 1.000 9,790,000 74,335,000 - --------------------------------------------------------------------------------------------------------------------------
30
PRINCIPAL AMOUNT MATURITY INTEREST (000) DATES RATES VALUE - -------------------------------------------------------------------------------------------------------------------------- MUNICIPAL BONDS AND NOTES--(CONTINUED) TEXAS--7.45% $12,800 Georgetown Higher Education Finance Corp. (Southwestern University) A 1.000% $ 12,800,000 4,325 Guadalupe Blanco River Authority (Central Texas Tax Power) A 0.950 4,325,000 6,100 Harris County Health Facilities Development Corp. Special Facilities Revenue (Texas Medical Center Project), Series B A 1.000 6,100,000 10,000 Harris County Industrial Development Corp. Revenue Refunding (Baytank Houston, Inc. Project) A 0.950 10,000,000 26,565 Harris County Toll Roads A 1.100 26,565,000 16,685 Harris County Toll Roads, (Sub-Lien), Series C A 1.100 16,685,000 5,500 Midlothian Industrial Development Corp. Pollution Control Revenue (Bow Crow Cement Co. Project) A 0.970 5,500,000 4,000 Red River (Southwestern Public Service) A 1.000 4,000,000 7,010 Tarrant County Texas Housing Finance Corp. Revenue Refunding (Multi-Family Housing Apartments Project) A 1.140 7,010,000 141,345 Texas State Tax & Revenue Anticipation Notes, Series A-L32 08/29/03 2.750 141,649,961 6,600 Texas Water Development Board Revenue Refunding State Revolving Fund A 0.950 6,600,000 241,234,961 - -------------------------------------------------------------------------------------------------------------------------- UTAH--0.62% 3,900 Davis County Tax & Revenue Anticipation Notes 12/30/03 2.000 3,920,275 8,000 Intermountain Power Agency Power Supply Revenue, Series E A 1.000 8,000,000 8,000 Salt Lake County Tax & Revenue Anticipation Notes 12/30/03 1.500 8,026,080 19,946,355 - --------------------------------------------------------------------------------------------------------------------------
31
PRINCIPAL AMOUNT MATURITY INTEREST (000) DATES RATES VALUE - -------------------------------------------------------------------------------------------------------------------------- MUNICIPAL BONDS AND NOTES--(CONTINUED) VERMONT--1.27% $29,600 Vermont Educational & Health Buildings Financing Agency Revenue (Fletcher Allen Hospital), Series B A 0.950% $ 29,600,000 4,000 Vermont Educational & Health Buildings Financing Agency Revenue (Marlboro College Project), Series A A 1.050 4,000,000 7,500 Vermont Educational & Health Buildings Financing Agency Revenue (Middlebury College Project) 05/03/04 1.150 7,500,000 41,100,000 - -------------------------------------------------------------------------------------------------------------------------- VIRGINIA--1.49% 37,510 Loudoun County Industrial Development Authority (Falcons Landing Project) A 0.950 37,510,000 7,000 Norfolk Industrial Development Authority Revenue (Hospital Facilities Childrens Project) A 1.000 7,000,000 3,800 Roanoke Industrial Development Authority Hospital Revenue (Carilion Health Services Systems), Series D A 0.970 3,800,000 48,310,000 - -------------------------------------------------------------------------------------------------------------------------- WASHINGTON--4.14% 13,000 Energy Northwest Washington Electric Revenue Refunding (Project No. 3), Series D-3-2 A 0.970 13,000,000 22,200 King County Washington Sewer Revenue, (Junior Lien), Series B A 1.050 22,200,000 4,595 Pierce County Washington Economic Development Corp. Special Revenue (Weyerhaeuser Real Estate) A 1.050 4,595,000 5,100 Port of Vancouver Washington A 1.000 5,100,000 4,250 Port of Vancouver Washington (United Grain Corp. of Oregon) A 1.000 4,250,000 9,400 Seattle Municipal Light & Power Revenue A 0.900 9,400,000
32
PRINCIPAL AMOUNT MATURITY INTEREST (000) DATES RATES VALUE - -------------------------------------------------------------------------------------------------------------------------- MUNICIPAL BONDS AND NOTES--(CONCLUDED) WASHINGTON--(CONCLUDED) $35,370 Snohomish County Public Utility District No. 001 Electric Revenue Refunding (Generation Systems), Series A A 0.900% $ 35,370,000 10,000 Tulalip Tribes of The Tulalip Reservation Special Revenue Refunding A 1.050 10,000,000 3,695 Washington State Public Power Supply Systems Nuclear Project No. 1 Electric Revenue Refunding, Series 1A-1 A 0.920 3,695,000 14,500 Washington State Public Power Supply Systems Nuclear Project No. 3 Electric Revenue Refunding, Series 3A A 0.970 14,500,000 12,055 Washington State, Series VR-96B A 0.880 12,055,000 134,165,000 - -------------------------------------------------------------------------------------------------------------------------- WISCONSIN--0.77% 10,000 Wisconsin Center District Wisconsin Tax Revenue, Series A A 1.000 10,000,000 5,000 Wisconsin School District Cash Flow Management Program Certificates of Participation, Series A-1 09/23/03 2.250 5,008,492 10,000 Wisconsin State Health & Education Facilities Authority Revenue (Wheaton Franciscan Services) A 1.030 10,000,000 25,008,492 - -------------------------------------------------------------------------------------------------------------------------- Total Municipal Bonds and Notes (cost--$3,164,961,940) 3,164,961,940 TAX-EXEMPT COMMERCIAL PAPER--5.97% ARIZONA--0.46% 15,000 Salt River (Agriculture Project) 08/14/03 1.050 15,000,000 DISTRICT OF COLUMBIA--0.68% 22,000 District of Columbia Water & 08/22/03 to Sewer Revenue 08/27/03 0.950 22,000,000
33
PRINCIPAL AMOUNT MATURITY INTEREST (000) DATES RATES VALUE - -------------------------------------------------------------------------------------------------------------------------- TAX-EXEMPT COMMERCIAL PAPER--(CONTINUED) ILLINOIS--0.28% $9,000 Illinois Educational Facilities Authority Revenue 08/28/03 1.100% $ 9,000,000 MARYLAND--0.37% 7,000 Baltimore County Consolidated Public Improvement 07/11/03 1.100 7,000,000 5,000 Howard County Medical Consolidated Bond Revenue 08/13/03 0.900 5,000,000 12,000,000 - -------------------------------------------------------------------------------------------------------------------------- MINNESOTA--0.22% 7,000 City of Rochester (Mayo Foundation) 07/09/03 1.100 7,000,000 NEW YORK--0.65% 21,100 New York City Municipal 07/10/03 to 1.050 to Water Finance Authority 07/17/03 1.100 21,100,000 PUERTO RICO--0.62% 20,000 Government Development 08/05/03 to 0.950 to Bank of Puerto Rico 09/26/03 1.050 20,000,000 TENNESSEE--0.27% 8,900 Shelby County Health Educational & Housing Facilities Board Revenue (Baptist Hospital) 07/21/03 0.950 8,900,000 TEXAS--1.90% 9,973 City of Dallas, Waterworks 10/10/03 0.850 9,973,000 15,000 Houston Texas General Obligation 08/11/03 0.950 15,000,000 22,550 Irving Texas 07/14/03 to 1.000 to 07/15/03 1.050 22,550,000 14,000 North Central Texas Health Facilities Development 07/11/03 to 1.050 to Corp. (Methodist Hospital) 07/18/03 1.100 14,000,000 61,523,000 - -------------------------------------------------------------------------------------------------------------------------- UTAH--0.18% 5,900 Intermountain Power Agency Power Supply Series B-4 08/13/03 1.000 5,900,000
34
PRINCIPAL AMOUNT MATURITY INTEREST (000) DATES RATES VALUE - -------------------------------------------------------------------------------------------------------------------------- TAX-EXEMPT COMMERCIAL PAPER--(CONCLUDED) WASHINGTON--0.34% $11,000 Port of Seattle Washington 07/11/03 1.100% $ 11,000,000 Total Tax-Exempt Commercial Paper (cost--$193,423,000) 193,423,000 Total Investments (cost--$3,358,384,940) which approximates cost for federal income tax purposes--103.69% 3,358,384,940 Liabilities in excess of other assets--(3.69)% (119,534,910) Net Assets applicable to 3,239,588,216 shares of common stock outstanding equivalent to $1.00 per share)--100.00% $ 3,238,850,030 - --------------------------------------------------------------------------------------------------------------------------
A Variable rate demand notes and variable rate certificates of participation are payable on demand. The interest rates shown are the current rates as of June 30, 2003, and reset periodically. Weighted average maturity -- 26 days See accompanying notes to financial statements 35 UBS RMA CALIFORNIA MUNICIPAL MONEY FUND STATEMENT OF NET ASSETS -- JUNE 30, 2003
PRINCIPAL AMOUNT MATURITY INTEREST (000) DATES RATES VALUE - -------------------------------------------------------------------------------------------------------------------------- MUNICIPAL BONDS AND NOTES--102.38% $5,000 California Community College Financing Tax and Revenue Anticipation Notes, Series A 06/30/04 2.000% $ 5,059,500 8,393 California Educational Facilities Authority (Stanford University), Series L A 0.850 8,393,000 15,725 California Educational Facilities Authority (Stanford University), Series L-8 A 0.850 15,725,000 18,979 California Health Facilities Financing Authority (Floating Pooled Loan Program), Series B A 1.000 18,979,000 1,900 California Health Facilities Financing Authority (Hospital Adventist Health Systems), Series A A 0.970 1,900,000 5,300 California Health Facilities Financing Authority (Santa Barbara Cottage), Series C A 0.950 5,300,000 10,900 California Housing Finance Agency Revenue Pooled Loan Program A 0.940 10,900,000 15,500 California Infrastructure & Economic Development Revenue (Buck Institute Age Research) A 0.900 15,500,000 15,600 California Infrastructure & Economic Development Revenue (Independent Systems Operation Corp. Project), Series B A 1.000 15,600,000 2,500 California Infrastructure & Economic Development Revenue (Rand Corp.), Series B A 0.950 2,500,000 35,000 California School Cash Reserve Program Authority 07/03/03 to 2.000 to Pool, Series A 07/06/04 3.000 35,275,967 3,300 California State, Series A-1 A 1.100 3,300,000 800 California State, Series A-2 A 0.950 800,000 10,500 California State, Series A-3 A 0.950 10,500,000 9,350 California State, Series B-3 A 1.000 9,350,000 5,000 California State, Series C-1 A 1.000 5,000,000
36
PRINCIPAL AMOUNT MATURITY INTEREST (000) DATES RATES VALUE - -------------------------------------------------------------------------------------------------------------------------- MUNICIPAL BONDS AND NOTES--(CONTINUED) $ 900 California State Department Water Resources Power Supply Revenue, Series B-1 A 1.000% $ 900,000 7,100 California State Department Water Resources Power Supply Revenue, Series B-2 A 1.100 7,100,000 10,000 California State Department Water Resources Power Supply Revenue, Series B-5 A 1.000 10,000,000 4,900 California State Department Water Resources Power Supply Revenue, Series C-5 A 1.050 4,900,000 400 California Statewide Communities Development Authority Revenue Certificates of Participation (Continuing Care University Project) A 0.970 400,000 1,500 California Statewide Communities Development Authority Revenue Certificates of Participation (House Ear Institute) A 1.000 1,500,000 1,800 California Statewide Communities Development Authority Revenue Certificates of Participation (John Muir/Mount Diablo Health) A 0.920 1,800,000 28,225 California Transit Financing Authority A 1.000 28,225,000 5,980 Abag Finance Authority for Nonprofit Corp. Certificates of Participation (Lucile Salter Packard Project) A 0.950 5,980,000 10,595 Alameda Contra Costa Schools Financing Authority Certificates of Participation (Capital Improvement Financing Projects), Series A A 1.050 10,595,000 5,000 Anaheim Certificates of Participation A 0.850 5,000,000 8,000 Bay Area Toll Authority Toll Board (San Francisco Bay Area), Series C A 0.900 8,000,000
37
PRINCIPAL AMOUNT MATURITY INTEREST (000) DATES RATES VALUE - -------------------------------------------------------------------------------------------------------------------------- MUNICIPAL BONDS AND NOTES--(CONTINUED) $7,200 Butte County Office of Education Tax and Revenue Anticipation Notes 10/02/03 2.500% $ 7,219,886 8,330 Chino Basin Regional Financing Authority Revenue (Inland Empire Utilities), Series A A 0.850 8,330,000 5,495 Contra Costa County Housing Authority Multi-Family Revenue (Lakeshore), Series C A 0.950 5,495,000 9,500 Daly City Housing Finance Agency Multi-Family Revenue Refunding (Serramonte Del Ray), Series A A 0.880 9,500,000 8,875 East Bay Municipal Utility District Water Systems Revenue, Subseries A A 0.850 8,875,000 3,800 Fremont Certificates of Participation (Capital Improvement Financing Project) A 1.000 3,800,000 3,755 Fremont Certificates of Participation (Office Building Improvement & Fire Equipment) A 1.000 3,755,000 8,000 Fremont Union High School District Santa Clara County Tax and Revenue Anticipation Notes 06/30/04 1.500 8,045,840 10,000 Fresno Multi-Family Housing Revenue Refunding (Heron Pointe Apartments), Series A A 0.880 10,000,000 5,000 Fresno Unified School District Tax and Revenue Anticipation Notes 08/27/03 2.500 5,009,012 4,800 Golden Empire Schools Financing Authority (Kern High School District Project) A 0.920 4,800,000 14,745 Golden Empire Schools Financing Authority (Kern High School District 0.920 to Project), Series A A 1.000 14,745,000
38
PRINCIPAL AMOUNT MATURITY INTEREST (000) DATES RATES VALUE - -------------------------------------------------------------------------------------------------------------------------- MUNICIPAL BONDS AND NOTES--(CONTINUED) $4,300 Golden Empire Schools Financing Authority (Kern High School District Project), Series B A 0.920% $ 4,300,000 10,431 Irvine Improvement Bond Act 1915 Limited Obligation (Assessment District 85-7-1) A 1.050 10,431,000 1,000 Irvine Ranch Water District Refunding (Improvement District No.182), Series A A 0.900 1,000,000 300 Irvine Ranch Water District Refunding, Series A A 0.920 300,000 2,250 Irvine Ranch Water District Refunding, Series B A 1.100 2,250,000 14,805 Livermore California Certificates of Participation (Capital Projects) A 1.000 14,805,000 5,000 Los Altos School District Tax and Revenue Anticipation Notes 08/07/03 2.500 5,005,347 8,100 Los Angeles Community Redevelopment Agency Multi-Family Housing Revenue (Skyline at Southpark Phase II) A 1.050 8,100,000 6,035 Los Angeles County Pension Obligation Refunding, Series A A 0.850 6,035,000 5,000 Los Angeles County Schools Tax and Revenue Anticipation Notes, Series A 06/30/04 1.750 5,041,000 12,600 Los Angeles County Transport Commission Sales Tax and Revenue, Series A A 0.850 12,600,000 12,900 Los Angeles Multi-Family Housing Revenue (Museum Terrace Apartments, Series H A 1.000 12,900,000
39
PRINCIPAL AMOUNT MATURITY INTEREST (000) DATES RATES VALUE - -------------------------------------------------------------------------------------------------------------------------- MUNICIPAL BONDS AND NOTES--(CONTINUED) $14,500 Los Angeles Unified School District Certificates of Participation (Land Acquisition Program), Series D A 1.000% $ 14,500,000 10,000 Los Angeles Unified School District Tax and Revenue Anticipation Notes, Series A 07/01/03 3.000 10,000,000 10,000 Los Angeles Water and Power Revenue, Subseries A-1 A 0.900 10,000,000 8,000 Los Angeles Water and Power Revenue, Subseries B-1 A 0.850 8,000,000 4,300 Los Angeles Water and Power Revenue, Subseries B-3 A 0.920 4,300,000 4,900 Los Angeles Water and Power Revenue, Subseries B-6 A 0.970 4,900,000 4,000 Metropolitan Water District Southern California Waterworks Revenue, Series B A 0.850 4,000,000 1,900 Metropolitan Water District Southern California Waterworks Revenue, Series B-3 A 0.900 1,900,000 4,700 Metropolitan Water District Southern California Waterworks Revenue, Series B-4 A 0.850 4,700,000 2,200 Metropolitan Water District Southern California Waterworks Revenue, Series C-1 A 1.000 2,200,000 3,850 Mill Valley School District 06/30/04 2.000 3,891,079 3,500 Milpitas Union School District Tax and Revenue Anticipation Notes 06/30/04 1.500 3,519,355 6,795 Moorpark Industrial Development Authority (Fred Kavli and Kavlico Corp.) A 0.950 6,795,000
40
PRINCIPAL AMOUNT MATURITY INTEREST (000) DATES RATES VALUE - -------------------------------------------------------------------------------------------------------------------------- MUNICIPAL BONDS AND NOTES--(CONTINUED) $5,000 Mountain View Los Altos Union High School District Tax and Revenue Anticipation Notes 06/30/04 1.500% $ 5,027,650 7,355 M-S-R Public Power Agency Revenue (San Juan Project), Series E A 0.900 7,355,000 5,300 Newport Beach Revenue (Hoag Memorial Hospital), Series A A 1.000 5,300,000 1,600 Newport Beach Revenue (Hoag Memorial Hospital), Series C A 1.000 1,600,000 16,600 Oakland Alameda County Coliseum Authority Lease Revenue A 1.000 16,600,000 12,000 Oakland Alameda County Coliseum Authority Lease Revenue (Coliseum Project), Series C-2 A 0.900 12,000,000 7,190 Orange County Apartment Development Revenue (Niguel Village), Series AA A 0.950 7,190,000 6,340 Orange County Apartment Development Revenue (Niguel Village), Series U A 1.000 6,340,000 11,700 Orange County Apartment Development Revenue (Villas La-Paz), Series F A 0.900 11,700,000 7,700 Pasadena Certificates of Participation (Rose Bowl Imports Project) A 1.000 7,700,000 9,900 Roseville Electric Systems Revenue Certificates of Participation A 0.950 9,900,000 10,000 San Bernardino County Certificates of Participation (County Center Refinancing Project) A 0.900 10,000,000
41
PRINCIPAL AMOUNT MATURITY INTEREST (000) DATES RATES VALUE - -------------------------------------------------------------------------------------------------------------------------- MUNICIPAL BONDS AND NOTES--(CONTINUED) $9,000 San Bernardino County Certificates of Participation (Medical Center Financing Project) A 1.050% $ 9,000,000 5,000 San Bernardino County Tax and Revenue Anticipation Notes 07/01/03 3.000 5,000,000 13,608 San Diego Housing Authority Multi-Family Housing Revenue Refunding (Carmel Del Mar-1993), Series E A 0.900 13,608,000 8,945 San Diego Tax and Revenue Anticipation Notes, Series A 08/01/03 3.000 8,957,735 5,000 San Diego Unified School District Tax and Revenue Anticipation Notes, Series A 07/28/03 3.000 5,005,390 4,705 San Francisco City and County Certificates of Participation, Series C-5 A 1.000 4,705,000 8,700 San Francisco City and County Redevelopment Agency Multi-Family Housing Revenue (St. Francis Project), Series A A 1.050 8,700,000 4,000 San Francisco City and County Redevelopment Agency Revenue (Community Facilities District No. 4) A 0.900 4,000,000 3,500 San Jose Multi-Family Housing Revenue (Timberwood), Series A A 1.050 3,500,000 12,800 San Jose Redevelopment Agency Revenue (Merged Area Redevelopment Project), Series A A 1.000 12,800,000 13,000 San Jose-Santa Clara Water Financing Authority Sewer Revenue, Series B A 0.850 13,000,000
42
PRINCIPAL AMOUNT MATURITY INTEREST (000) DATES RATES VALUE - -------------------------------------------------------------------------------------------------------------------------- MUNICIPAL BONDS AND NOTES--(CONCLUDED) $14,450 Santa Clara Financing Authority (VMC Facility Replacement-Project B) A 0.900% $ 14,450,000 5,000 Santa Cruz County Board of Education Tax and Revenue Anticipation Notes 07/01/03 3.000 5,000,000 15,050 Simi Valley Multi-Family Housing Revenue Refunding (Lincoln Wood Ranch) A 1.050 15,050,000 5,000 Solano County Office of Education Tax and Revenue Anticipation Notes 06/30/04 2.000 5,053,850 5,000 Sonoma County Tax and Revenue Anticipation Notes 10/14/03 2.500 5,013,879 5,300 South Placer Wastewater Authority California Wastewater Revenue, Series B A 0.950 5,300,000 9,358 Southeast Resources Recovery Facilities Authority, Series A A 0.920 9,358,000 10,500 University of California Revenues A 1.050 10,500,000 7,000 Vernon Electric System Revenue (Malburg Project), Series B A 0.950 7,000,000 20,000 Puerto Rico Commonwealth Tax and Revenue Anticipation Notes 07/30/03 2.500 20,016,066 Total Municipal Bonds and Notes (cost--$785,260,556) 785,260,556 TAX-EXEMPT COMMERCIAL PAPER--5.00% 4,000 California Educational Facilities Authority 09/12/03 0.900 4,000,000 2,000 Orange County Municipal Water District 07/22/03 1.050 2,000,000
43
PRINCIPAL AMOUNT MATURITY INTEREST (000) DATES RATES VALUE - -------------------------------------------------------------------------------------------------------------------------- TAX-EXEMPT COMMERCIAL PAPER--(CONCLUDED) $7,761 Riverside County General Obligation, Series B 07/14/03 1.050% $ 7,761,000 5,000 San Diego County Teeter, Series A 07/10/03 0.900 5,000,000 4,000 San Gabriel Valley Council Governments 07/11/03 1.050 4,000,000 5,000 San Joaquin County Transportation Authori ty 08/08/03 1.000 5,000,000 2,000 University of California Revenues 07/23/03 1.050 2,000,000 8,562 Puerto Rico Commonwealth Government Development 09/18/03 to Bank 09/26/03 0.950 8,562,000 Total Tax-Exempt Commercial Paper (cost--$38,323,000) 38,323,000 - -------------------------------------------------------------------------------------------------------------------------- Total Investments (cost--$823,583,556 which approximates cost for federal income tax purposes)--107.38% 823,583,556 Liabilities in excess of other assets--(7.38)% (56,578,012) Net Assets (applicable to 767,427,885 shares of beneficial interest equivalent to $1.00 per share)--100.00% $ 767,005,544 - --------------------------------------------------------------------------------------------------------------------------
A Variable rate demand notes are payable on demand. The interest rates shown are current rates as of June 30, 2003 and reset periodically. Weighted average maturity -- 34 days See accompanying notes to financial statements 44 UBS RMA NEW YORK MUNICIPAL MONEY FUND Statement of Net Assets -- June 30, 2003
PRINCIPAL AMOUNT MATURITY INTEREST (000) DATES RATES VALUE - -------------------------------------------------------------------------------------------------------------------------- MUNICIPAL BONDS AND NOTES--93.00% $6,665 New York State Dormitory Authority Revenues (Columbia University), Series C A 0.950% $ 6,665,000 22,920 New York State Dormitory Authority Revenues (Cornell University), 0.950 to Series B A 1.000 22,920,000 8,497 New York State Dormitory Authority Revenues (Metropolitan Museum of Art) A 0.900 8,497,000 3,355 New York State Dormitory Authority Revenues (Oxford University Press, Inc.) A 0.900 3,355,000 2,000 New York State Dormitory Authority Revenues (State University Educational Facilities), Series B 05/15/04 5.750 2,080,786 13,100 New York State Dormitory Authority Revenues (Wagner College) A 1.050 13,100,000 6,400 New York State Energy Research & Development Authority Pollution Control Revenue (New York State Electric & Gas), Series C A 0.950 6,400,000 21,750 New York State Energy Research & Development Authority Pollution Control Revenue (Orange & Rockland Project), Series A A 0.850 21,750,000 20,000 New York State Housing Finance Agency (Normandie Court I Project) A 0.920 20,000,000 5,000 New York State Housing Finance Agency Service Contract Revenue, Series I A 1.050 5,000,000
45
PRINCIPAL AMOUNT MATURITY INTEREST (000) DATES RATES VALUE - -------------------------------------------------------------------------------------------------------------------------- MUNICIPAL BONDS AND NOTES--(CONTINUED) $13,500 New York State Local Government Assistance Corp. (Senior Lien), Series A-BV A 0.930% $ 13,500,000 2,500 New York State Local Government Assistance Corp. (Sub Lien), Series 4-V A 1.050 2,500,000 7,800 New York State Local Government Assistance Corp., Series B A 0.920 7,800,000 9,000 New York State Local Government Assistance Corp., Series C A 0.920 9,000,000 7,000 New York State Local Government Assistance Corp., Series D A 0.900 7,000,000 5,000 New York State Power Authority Revenue & General Purpose Obligation Bond 09/02/03 2.900 5,012,373 3,695 New York State Thruway Authority General Revenue, Series A A 0.920 3,695,000 1,000 New York State Thruway Authority, (Highway and Bridge Trust) Series B 04/01/04 4.500 1,026,318 3,400 Babylon General Obligation Bond A 0.850 3,400,000 17,600 Babylon Industrial Development Agency Resources (Ogden Martin Project) A 1.000 17,600,000 3,000 Board of Cooperative Educational Services Sole Supervisory District 06/01/04 1.750 3,016,410 2,880 Canandaigua City School District Bond Anticipation Notes 07/30/03 2.250 2,881,439 2,000 Erie County Revenue Anticipation Notes 09/17/03 2.500 2,004,508
46
PRINCIPAL AMOUNT MATURITY INTEREST (000) DATES RATES VALUE - -------------------------------------------------------------------------------------------------------------------------- MUNICIPAL BONDS AND NOTES--(CONTINUED) $6,550 Erie County Water Authority A 0.850% $ 6,550,000 5,000 Freeport New York Bond Anticipation Notes, Series A 01/22/04 2.250 5,027,709 1,000 Freeport New York Bond Anticipation Notes, Series B 03/18/04 1.750 1,003,992 2,715 Great Neck North Water Authority Systems Revenue, Series-A A 1.000 2,715,000 5,200 Guilderland Center School District Tax Anticipation Notes 10/31/03 1.250 5,207,020 2,409 Guilderland Center School District Bond Anticipation Notes 07/08/04 1.500 2,425,483 24,300 Jay Street Development Corp. New York City Facility Lease Revenue (Jay Street Project), Series A-3 A 0.900 24,300,000 5,200 Long Island Power Authority Electric Systems Revenue, Series 7 A 0.930 5,200,000 6,900 Long Island Power Authority Electric Systems Revenue, SubSeries 1-B A 0.980 6,900,000 4,500 Long Island Power Authority Electric Systems Revenue, SubSeries 3-B A 0.950 4,500,000 9,400 Long Island Power Authority Electric Systems Revenue, SubSeries G A 0.850 9,400,000 10,000 Metropolitan Transportation Authority, Series D-1 A 0.900 10,000,000 9,500 Mineola Union Free School District Tax Anticipation Notes 06/29/04 1.500 9,544,840 9,000 Nassau County Interim Finance Authority, Series A A 0.880 9,000,000
47
PRINCIPAL AMOUNT MATURITY INTEREST (000) DATES RATES VALUE - -------------------------------------------------------------------------------------------------------------------------- MUNICIPAL BONDS AND NOTES--(CONTINUED) $15,700 New York City Housing Development Corp. Multi-Family Rental Housing (Parkgate Development), Series A A 0.900% $ 15,700,000 6,500 New York City Housing Development Corp. Multi-Family Rental Housing (Queenswood Apartments), Series A A 0.900 6,500,000 2,800 New York City Industrial Development Agency Civic Facility Revenue (Calhoun School) A 1.100 2,800,000 3,480 New York City Industrial Development Agency Civic Facility Revenue (Church of Heavenly Rest) A 0.950 3,480,000 7,065 New York City Industrial Development Agency Civic Facility Revenue (MSMC Realty Corp. Project) A 0.940 7,065,000 600 New York City Industrial Development Agency Civic Facility Revenue (National Audubon Society) A 0.980 600,000 21,000 New York City Municipal Water Finance Authority Water & Sewer Systems Revenue, SubSeries C-1 A 0.900 21,000,000 7,315 New York City Trust for Cultural Resources Revenue (American Museum of Natural History), Series A A 0.850 7,315,000 5,605 New York City Trust for Cultural Resources Revenue (Asia Society) A 0.950 5,605,000 3,295 New York City Trust for Cultural Resources Revenue (Carnegie Hall) A 0.850 3,295,000
48
PRINCIPAL AMOUNT MATURITY INTEREST (000) DATES RATES VALUE - -------------------------------------------------------------------------------------------------------------------------- MUNICIPAL BONDS AND NOTES--(CONTINUED) $12,795 New York City Trust for Cultural Resources Revenue (Manhattan School of Music) A 0.950% $ 12,795,000 2,450 New York City Trust for Cultural Resources Revenue (Soloman R. Guggenheim), Series B A 0.980 2,450,000 2,000 New York City, Series B A 0.950 2,000,000 2,900 New York City, Series B, SubSeries B-3 A 0.900 2,900,000 8,100 New York City, Series B, SubSeries B-4 A 0.900 8,100,000 2,300 New York City, Series B, SubSeries B-5 A 0.950 2,300,000 4,000 New York City, Series B-2, SubSeries B-5 A 0.950 4,000,000 1,200 New York City, SubSeries B-3 A 0.950 1,200,000 3,400 New York City, SubSeries E-4 A 0.920 3,400,000 2,600 New York City, SubSeries E-6 A 0.900 2,600,000 4,100 Niagara Falls Toll Bridge Commission A 0.850 4,100,000 15,665 Oneida County Industrial Development Agency Revenue Civic Facilities (Hamilton College) A 1.050 15,665,000 5,000 Oneida Indian Nation A 1.000 5,000,000 5,830 Orange County Industrial Development Agency Civic Facility Revenue (Horton Medical Center) A 0.950 5,830,000 6,455 Port Authority of New York & New Jersey Special Obligation Revenue (Versatile Structure Obligation), Series 2 A 0.900 6,455,000 2,200 Port Authority of New York & New Jersey Special Obligation Revenue (Versatile Structure Obligation), Series 5 A 0.940 2,200,000 10,000 Riverhead Central School District Tax Anticipation Notes 06/30/04 1.500 10,050,200 2,825 Rochester General Obligation Bond, Series A 10/15/03 4.000 2,844,617
49
PRINCIPAL AMOUNT MATURITY INTEREST (000) DATES RATES VALUE - -------------------------------------------------------------------------------------------------------------------------- MUNICIPAL BONDS AND NOTES--(CONCLUDED) $16,750 Rockland County Revenue Anticipation Notes 02/26/04 2.000% $ 16,847,515 1,010 Suffolk County Public Improvement, Series B 10/01/03 5.000 1,018,885 1,400 Suffolk County Industrial Development Agency Research Facilities Revenue (Cold Spring Harbor Laboratory Project) A 1.000 1,400,000 20,200 Suffolk County Water Authority Bond Anticipation Notes A 0.900 20,200,000 18,000 Triborough Bridge & Tunnel Authority Revenues General Purpose, Series B A 0.900 18,000,000 8,915 Triborough Bridge & Tunnel Authority Special Obligation, Series D A 0.900 8,915,000 5,000 Ulster County Bond Anticipation Notes 06/11/04 1.750 5,035,073 9,493 Yonkers Industrial Development Agency (Consumers Union Facility) A 1.050 9,492,645 9,500 Puerto Rico Commonwealth Tax and Revenue Anticipation Notes 07/30/03 2.500 9,506,947 Total Municipal Bonds and Notes (cost--$547,643,760) 547,643,760 - -------------------------------------------------------------------------------------------------------------------------- TAX-EXEMPT COMMERCIAL PAPER--10.54% 18,400 New York State Power 07/08/03 to 0.900 to Authority 07/23/03 1.100 18,400,000 13,500 Metropolitan Transportation 08/08/03 to 0.900 to Authority 09/05/03 1.050 13,500,000 8,000 New York City Municipal 07/10/03 to 1.000 to Water Finance Authority 07/17/03 1.100 8,000,000 3,000 Port Authority of New York & New Jersey 09/10/03 0.900 3,000,000
50
PRINCIPAL AMOUNT MATURITY INTEREST (000) DATES RATES VALUE - -------------------------------------------------------------------------------------------------------------------------- TAX-EXEMPT COMMERCIAL PAPER--(CONCLUDED) $19,143 Government Development 08/05/03 to 0.950 to Bank of Puerto Rico 09/19/03 1.080% $ 19,143,000 Total Tax-Exempt Commercial Paper (cost--$62,043,000) 62,043,000 Total Investments (cost--$609,686,760, which approximates cost for federal income tax purposes)--103.54% 609,686,760 Liabilities in excess of other assets--(3.54)% (20,836,203) Net Assets (applicable to 588,972,728 shares of beneficial interest equivalent to $1.00 per share)--100.00% $ 588,850,557 - --------------------------------------------------------------------------------------------------------------------------
A Variable rate demand notes are payable on demand. The interest rates shown are current rates as of June 30, 2003 and reset periodically. Weighted average maturity -- 37 days See accompanying notes to financial statements 51 UBS NEW JERSEY MUNICIPAL MONEY FUND Statement of Net Assets -- June 30, 2003
PRINCIPAL AMOUNT MATURITY INTEREST (000) DATES RATES VALUE - -------------------------------------------------------------------------------------------------------------------------- MUNICIPAL BONDS AND NOTES--96.90% $3,000 New Jersey Economic Development Authority (Bayonne Project Improvement), Series B A 0.950% $ 3,000,000 7,700 New Jersey Economic Development Authority (Bayonne Project Improvement), Series C A 0.950 7,700,000 6,000 New Jersey Economic Development Authority (Center for Aging-Applewood) A 0.890 6,000,000 1,080 New Jersey Economic Development Authority (Church and Dwight Co. Project) A 0.950 1,080,000 1,500 New Jersey Economic Development Authority (Columbia Universal Project) A 0.950 1,500,000 6,000 New Jersey Economic Development Authority (Crowley Liner Services Project) A 0.950 6,000,000 2,750 New Jersey Economic Development Authority (Danic Urban Renewel) A 0.950 2,750,000 695 New Jersey Economic Development Authority (Economic Growth), Series B A 0.900 695,000 1,755 New Jersey Economic Development Authority (Economic Growth), Series C A 0.900 1,755,000 355 New Jersey Economic Development Authority (Economic Growth), Series D-1 A 1.000 355,000 3,145 New Jersey Economic Development Authority (Institute of Electrical), Series A A 0.950 3,145,000 405 New Jersey Economic Development Authority (Kenwood USA Corp. Project) A 1.000 405,000 995 New Jersey Economic Development Authority (Marco Holdings LLC), Series A A 1.150 995,000
52
PRINCIPAL AMOUNT MATURITY INTEREST (000) DATES RATES VALUE - -------------------------------------------------------------------------------------------------------------------------- MUNICIPAL BONDS AND NOTES--(CONTINUED) $1,650 New Jersey Economic Development Authority Market Transition Facilities Revenue Senior Lien, Series A 07/01/04 7.000% $ 1,747,465 1,045 New Jersey Economic Development Authority (RDR Investment Co. LLC) A 1.150 1,045,000 1,275 New Jersey Economic Development Authority, Series G A 0.900 1,275,000 3,200 New Jersey Economic Development Authority Speciality Facilities Revenue (Port Newark Container LLC) A 1.030 3,200,000 3,705 New Jersey Economic Development Authority (Stolthaven Project), Series A A 0.800 3,705,000 2,000 New Jersey Economic Development Authority (Thermal Energy Limited Partnership) A 1.000 2,000,000 4,100 New Jersey Economic Development Authority Water Facilities Revenue Refunding (United Water NJ, Inc. Project), Series A A 0.900 4,100,000 3,505 New Jersey Economic Development Authority Water Facilities Revenue Refunding (United Water NJ, Inc. Project), Series B A 1.100 3,505,000 3,125 New Jersey Educational Facilities Authority (College of New Jersey), Series A A 0.950 3,125,000 6,000 New Jersey Educational Facilities Authority (Princeton 0.900 to University), Series B A 1.000 6,000,000
53
PRINCIPAL AMOUNT MATURITY INTEREST (000) DATES RATES VALUE - -------------------------------------------------------------------------------------------------------------------------- MUNICIPAL BONDS AND NOTES--(CONTINUED) $2,200 New Jersey Environmental Infrastructure Trust (Environmental Infrastructure), Series A 09/01/03 4.000% $ 2,210,854 1,255 New Jersey Health Care Facilities Authority Revenue (Jersey Shore Medical Center) 07/01/04 6.200 1,346,214 6,670 New Jersey Health Care Facilities Authority Revenue (St. Barnabas), Series A A 0.950 6,670,000 1,000 New Jersey Sports & Exposition Authority, Series B-1 A 0.900 1,000,000 2,000 New Jersey State Housing and Mortgage Financing Agency Revenue (Home Buyer), Series EE 04/01/04 1.100 2,000,000 1,500 New Jersey State Transit Corp. Capital Grant Anticipation Notes, Series A 09/01/03 5.500 1,511,263 4,300 New Jersey State Turnpike Authority A 0.900 4,300,000 2,000 New Jersey State Turnpike Authority (Putters Series 155) A 0.980 2,000,000 2,000 Barnegat Township Board of Education Temporary Notes 07/17/03 2.750 2,000,974 2,800 Camden County Improvement Authority Revenue Sewer Redevelopment (Harvest Village Project), Series A A 0.950 2,800,000 1,320 Camden County Municipal Utility Authority Sewer Revenue Bonds 07/15/03 6.000 1,322,299 5,950 Essex County Improvement Authority Revenue (Pooled Government Loan Program) A 0.920 5,950,000
54
PRINCIPAL AMOUNT MATURITY INTEREST (000) DATES RATES VALUE - -------------------------------------------------------------------------------------------------------------------------- MUNICIPAL BONDS AND NOTES--(CONTINUED) $1,400 Gloucester County Industrial Pollution Control Financing Authority Revenue (Mobil Oil Refining Co. Project) A 0.650% $ 1,400,000 1,000 Jersey City Redevelopment Authority Multi-Family Housing (Dickson Mills) A 0.900 1,000,000 1,000 Mercer County Improvement Authority (Atlantic Foundation) A 0.930 1,000,000 2,250 Monmouth County Improvement Authority (Pooled Government Loan Program) A 0.830 2,250,000 1,000 Moorestown Township Bond Anticipation Notes 05/27/04 1.750 1,006,711 3,000 Morris County General Obligation Bonds 07/15/03 6.000 3,005,676 2,929 Mount Laurel Township Bond Anticipation Notes 06/25/04 1.500 2,946,680 3,500 New Milford School District 10/01/03 2.250 3,506,005 1,665 North Jersey District Water Supply Community Refunding (Wanaque South Project), Series A 07/01/04 3.000 1,699,738 1,020 Pennsauken Township New Jersey School District Refunding General Obligation Bonds 03/01/04 4.250 1,041,015 4,950 Port Authority of New York and New Jersey Special Obligation Revenue (Versatile Structure Obligation), Series 2 A 0.900 4,950,000 5,310 Port Authority of New York and New Jersey Special Obligation Revenue (Versatile Structure Obligation), Series 3 A 0.940 5,310,000 300 Port Authority of New York and New Jersey Special Obligation Revenue (Versatile Structure Obligation), Series 4 A 0.950 300,000 1,900 Port Authority of New York and New Jersey Special Obligation Revenue (Versatile Structure Obligation), Series 5 A 0.940 1,900,000
55
PRINCIPAL AMOUNT MATURITY INTEREST (000) DATES RATES VALUE - -------------------------------------------------------------------------------------------------------------------------- MUNICIPAL BONDS AND NOTES--(CONCLUDED) $1,000 Readington Township Bond Anticipation Notes 02/10/04 2.125% $ 1,006,033 3,122 Roselle Park Bond Anticipation Notes 10/10/03 2.400 3,129,310 4,290 Rutgers State University Refunding, Series A A 0.950 4,290,000 4,525 Salem County Pollution Control Financing Refunding (Atlantic City Electric), Series A A 0.850 4,525,000 6,000 Union County Improvement Authority (Cedar Glen Housing Corp.), Series A A 0.900 6,000,000 2,000 University of Medicine & Dentistry, Series B A 0.980 2,000,000 2,900 Westwood Bond Anticipation Notes 09/24/03 2.250 2,904,847 3,470 Puerto Rico Commonwealth Tax and Revenue Anticipation Notes 07/30/03 2.500 3,473,003 Total Municipal Bonds and Notes (cost--$156,838,087) 156,838,087 - -------------------------------------------------------------------------------------------------------------------------- TAX-EXEMPT COMMERCIAL PAPER--2.66% 4,296 Puerto Rico Commonwealth Government Development 08/05/03 to 1.000 to Bank (cost--$4,296,000) 08/28/03 1.100 4,296,000 Total Investments (cost--$161,134,087 which approximates cost for federal income tax purposes)--99.56% 161,134,087 Other assets in excess of liabilities--0.44% 719,869 Net Assets (applicable to 161,849,634 shares of beneficial interest equivalent to $1.00 per share)--100.00% $ 161,853,956 - --------------------------------------------------------------------------------------------------------------------------
A Variable rate demand notes are payable on demand. The interest rates shown are current rates as of June 30, 2003 and reset periodically. Weighted average maturity -- 37 days See accompanying notes to financial statements 56 (This page intentionally left blank) 57 UBS RMA Statement of Operations
FOR THE YEAR ENDED JUNE 30, 2003 --------------------------------- MONEY MARKET U.S. GOVERNMENT PORTFOLIO PORTFOLIO - ------------------------------------------------------------------------------------------- INVESTMENT INCOME: Interest $ 374,056,852 $ 39,339,007 EXPENSES: Investment advisory and administration fees 114,402,733 9,879,480 Service fees -- 3,159,542 Transfer agency and related services fees 16,943,005 500,946 Insurance expense 4,135,420 31,069 Custody and accounting 2,288,055 252,763 Reports and notices to shareholders 1,273,803 35,862 Federal and state registration fees 438,057 55,296 Directors'/Trustees' fees 357,536 39,351 Professional fees 113,864 95,429 Interest expense -- -- Other expenses 100,704 28,541 140,053,177 14,078,279 Net investment income 234,003,675 25,260,728 Net realized gains from investment transactions 51,043 -- Net increase in net assets resulting from operations $ 234,054,718 $ 25,260,728 - -------------------------------------------------------------------------------------------
58
FOR THE YEAR ENDED JUNE 30, 2003 --------------------------------------------------------------------- CALIFORNIA NEW YORK NEW JERSEY TAX-FREE MUNICIPAL MUNICIPAL MUNICIPAL FUND MONEY FUND MONEY FUND MONEY FUND - ------------------------------------------------------------------------------------------------------------------------------- INVESTMENT INCOME: Interest $ 44,144,783 $ 9,985,457 $ 7,692,784 $ 1,832,448 EXPENSES: Investment advisory and administration fees 14,069,194 3,647,168 2,797,635 742,706 Service fees 4,260,137 995,613 743,646 178,250 Transfer agency and related services fees 966,995 200,476 154,301 47,965 Insurance expense 929,314 162,627 124,223 26,389 Custody and accounting 340,811 79,649 59,492 14,854 Reports and notices to shareholders 121,280 17,909 14,382 5,080 Federal and state registration fees 361,884 25,178 15,262 17,548 Directors'/Trustees' fees 55,632 12,487 9,224 2,242 Professional fees 116,645 75,319 60,368 51,206 Interest expense 7,077 -- -- -- Other expenses 71,942 3,652 1,297 3,804 21,300,911 5,220,078 3,979,830 1,090,044 Net investment income 22,843,872 4,765,379 3,712,954 742,404 Net realized gains from investment transactions -- -- 2,120 -- Net increase in net assets resulting from operations $ 22,843,872 $ 4,765,379 $ 3,715,074 $ 742,404 - -------------------------------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements 59 UBS RMA Statement of Changes in Net Assets
FOR THE YEARS ENDED JUNE 30, ------------------------------------ 2003 2002 - ---------------------------------------------------------------------------------------------- UBS RMA MONEY MARKET PORTFOLIO FROM OPERATIONS: Net investment income $ 234,003,675 $ 532,157,459 Net realized gains from investment transactions 51,043 10,345,071 Net increase in net assets resulting from operations 234,054,718 542,502,530 DIVIDENDS TO SHAREHOLDERS FROM: Net investment income (234,003,675) (532,157,459) Net increase (decrease) in net assets from capital share transactions (936,158,868) 149,601,330 Net increase (decrease) in net assets (936,107,825) 159,946,401 NET ASSETS: Beginning of year 22,768,982,414 22,609,036,013 End of year $ 21,832,874,589 $ 22,768,982,414 - ---------------------------------------------------------------------------------------------- UBS RMA U.S. GOVERNMENT PORTFOLIO FROM OPERATIONS: Net investment income $ 25,260,728 $ 48,206,479 Net realized loss from investment transactions -- (35,834) Net increase in net assets resulting from operations 25,260,728 48,170,645 DIVIDENDS TO SHAREHOLDERS FROM: Net investment income (25,260,728) (48,206,479) Net increase in net assets from capital share transactions 153,624,603 356,561,029 Net increase in net assets 153,624,603 356,525,195 NET ASSETS: Beginning of year 2,356,828,604 2,000,303,409 End of year $ 2,510,453,207 $ 2,356,828,604 - ----------------------------------------------------------------------------------------------
See accompanying notes to financial statements 60
FOR THE YEARS ENDED JUNE 30, --------------------------------- 2003 2002 - ------------------------------------------------------------------------------------------- UBS RMA TAX-FREE FUND FROM OPERATIONS: Net investment income $ 22,843,872 $ 42,625,229 Net realized gain from investment transactions -- 143,281 Net increase in net assets resulting from operations 22,843,872 42,768,510 DIVIDENDS TO SHAREHOLDERS FROM: Net investment income (22,843,872) (42,552,220) Net decrease in net assets from capital share transactions (16,669,569) (30,846,955) Net decrease in net assets (16,669,569) (30,630,665) NET ASSETS: Beginning of year 3,255,519,599 3,286,150,264 End of year $ 3,238,850,030 $ 3,255,519,599 - ------------------------------------------------------------------------------------------- UBS RMA CALIFORNIA MUNICIPAL MONEY FUND FROM OPERATIONS: Net investment income $ 4,765,379 $ 8,868,833 Net realized gain from investment transactions -- 9,787 Net increase in net assets resulting from operations 4,765,379 8,878,620 DIVIDENDS TO SHAREHOLDERS FROM: Net investment income (4,765,379) (8,868,833) Net increase (decrease) in net assets derived from beneficial interest transactions 13,341,239 (6,306,936) Net increase (decrease) in net assets 13,341,239 (6,297,149) NET ASSETS: Beginning of year 753,664,305 759,961,454 End of year $ 767,005,544 $ 753,664,305 - -------------------------------------------------------------------------------------------
See accompanying notes to financial statements 61
FOR THE YEARS ENDED JUNE 30, --------------------------------- 2003 2002 - ------------------------------------------------------------------------------------------- UBS RMA NEW YORK MUNICIPAL MONEY FUND FROM OPERATIONS: Net investment income $ 3,712,954 $ 6,495,348 Net realized gain (loss) from investment transactions 2,120 (2) Net increase in net assets resulting from operations 3,715,074 6,495,346 DIVIDENDS TO SHAREHOLDERS FROM: Net investment income (3,712,954) (6,495,348) Net increase (decrease) in net assets derived from beneficial interest transactions 29,507,693 (15,149,645) Net increase (decrease) in net assets 29,509,813 (15,149,647) NET ASSETS: Beginning of year 559,340,744 574,490,391 End of year $ 588,850,557 $ 559,340,744 - ------------------------------------------------------------------------------------------- UBS RMA NEW JERSEY MUNICIPAL MONEY FUND FROM OPERATIONS: Net investment income $ 742,404 $ 1,214,790 Net realized loss from investment transactions -- (30) Net increase in net assets resulting from operations 742,404 1,214,760 DIVIDENDS TO SHAREHOLDERS FROM: Net investment income (742,404) (1,214,790) Net increase in net assets derived from beneficial interest transactions 33,354,255 26,337,247 Net increase in net assets 33,354,255 26,337,217 NET ASSETS: Beginning of year 128,499,701 102,162,484 End of year $ 161,853,956 $ 128,499,701 - -------------------------------------------------------------------------------------------
See accompanying notes to financial statements 62 UBS RMA Notes to Financial Statements ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES UBS RMA Money Fund Inc. (the "Corporation") and UBS RMA Tax-Free Fund Inc. ("RMA Tax-Free") were organized under the laws of Maryland on July 2, 1982 and are registered with the Securities and Exchange Commission under the Investment Company Act of 1940, as amended, as open-end management investment companies. RMA Tax-Free is a diversified mutual fund and the Corporation is a series mutual fund with three portfolios, each of which are diversified series: UBS RMA Money Market Portfolio ("Money Market Portfolio"), UBS RMA U.S. Government Portfolio ("U.S. Government Portfolio") and UBS Retirement Money Fund. The financial statements of UBS Retirement Money Fund are not included herein. UBS Managed Municipal Trust ("Managed Municipal Trust") and UBS Municipal Money Market Series ("Municipal Money Market Series") 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 non-diversified series: UBS RMA California Municipal Money Fund ("RMA California") and UBS RMA New York Municipal Money Fund ("RMA New York"). Municipal Money Market Series currently offers one non-diversified series: UBS RMA New Jersey Municipal Money Fund ("RMA New Jersey", and when referred together with Money Market Portfolio, U.S. Government Portfolio, RMA Tax-Free, RMA California and RMA New York collectively, the "Funds"). The preparation of financial statements in accordance with accounting principles generally accepted in the United States requires the Funds' management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates. The following is a summary of significant accounting policies: VALUATION AND ACCOUNTING FOR INVESTMENTS AND INVESTMENT INCOME--Investments are valued at amortized cost which approximates market value. Investment transactions are recorded on the trade date. Realized gains and losses from investment transactions are calculated using the identified cost method. Interest income is recorded on an accrual basis. Premiums are amortized and discounts are accreted as adjustments to interest income and the identified cost of investments. REPURCHASE AGREEMENTS--The Money Market Portfolio and U.S. Government Portfolio may purchase securities or other obligations from a bank or securities dealer (or its affiliate), subject to the seller's agreement to repurchase them at an agreed upon date (or upon demand) and price. The Money Market Portfolio and U.S. Government Portfolio maintain custody of the underlying obligations prior to their repurchase, either through their regular custodian or through a special "tri-party" custodian or sub-custodian that maintains a separate account for both 63 the Money Market Portfolio and U.S. Government Portfolio and its counterparty. The underlying collateral is valued daily on a mark-to-market basis to ensure that the value, including accrued interest, is at least equal to the repurchase price. In the event of default of the obligations to repurchase, the Money Market Portfolio and U.S. Government Portfolio generally have the right to liquidate the collateral and apply the proceeds in satisfaction of the obligation. Repurchase agreements involving obligations other than U.S government securities (such as commercial paper, corporate bonds and mortgage loans) may be subject to special risks and may not have the benefit of certain protections in the event of the counterparty's insolvency. If the seller (or seller's guarantor, if any) becomes insolvent, the Money Market Portfolio and U.S. Government Portfolio may suffer delays, costs and possible losses in connection with the disposition or retention of the collateral. Under certain circumstances, in the event of default or bankruptcy by the other party to the agreement, realization and/or retention of the collateral may be subject to legal proceedings. The Money Market Portfolio and U.S. Government Portfolio occasionally participate in joint repurchase agreement transactions with other funds managed, advised or sub-advised by UBS Global Asset Management (US) Inc. ("UBS Global AM"). UBS Global AM is an indirect wholly owned asset management subsidiary of UBS AG, an internationally diversified organization with headquarters in Zurich, Switzerland and operations in many areas of the financial services industry. 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 accounting principles generally accepted in the United States. 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 ability of the issuers of the debt securities held by the Funds to meet their obligations may be affected by economic developments, including those particular to a specific industry or region. Additionally, RMA California, RMA New York and RMA New Jersey follow an investment policy of investing primarily in municipal obligations of one state. Economic changes affecting each state and certain of their public bodies and municipalities may affect the ability of issuers within each state to pay interest on, or repay principal of, municipal obligations held by each of those Funds. 64 INVESTMENT ADVISOR AND ADMINISTRATOR Each Fund has entered into a board approved Investment Advisory and Administration Contract ("Advisory Contract") with UBS Financial Services Inc., an indirect wholly owned subsidiary of UBS AG, under which UBS Financial Services Inc. serves as investment advisor and administrator of the Funds. In accordance with the Advisory Contract, each Fund pays UBS Financial Services Inc. an investment advisory and administration fee, which is accrued daily and paid monthly, in accordance with the following schedule:
AVERAGE DAILY NET ASSETS ANNUAL RATE - ------------------------------------------------------------------------- MONEY MARKET PORTFOLIO AND RMA NEW JERSEY: All 0.50%* U.S. GOVERNMENT PORTFOLIO, RMA CALIFORNIA AND RMA NEW YORK: Up to $300 million 0.50 In excess of $300 million up to $750 million 0.44 Over $750 million 0.36 RMA TAX-FREE: Up to $1.0 billion 0.50 In excess of $1.0 billion up to $1.5 billion 0.44 Over $1.5 billion 0.36 - -------------------------------------------------------------------------
At June 30, 2003, the Funds owed UBS Financial Services Inc. for investment advisory and administration fees as follows: Money Market Portfolio $ 9,138,528 U.S. Government Portfolio 825,493 RMA Tax-Free 1,131,186 RMA California 291,454 RMA New York 228,435 RMA New Jersey 68,988 - -------------------------------------------------------------------------
UBS Global AM serves as sub-advisor and sub-administrator to the Funds pursuant to Sub-Advisory and Sub-Administration Contracts between UBS Financial Services Inc. and UBS Global AM (each a "Sub-Advisory Contract"). In accordance with each Sub-Advisory Contract, UBS Financial Services Inc. (not the Funds) pays UBS Global AM a fee, accrued daily and paid monthly, at an annual rate of 20% of the fee paid by the Funds to UBS Financial Services Inc. under the Advisory Contract. - ---------- * Effective August 29, 2003, fee schedule for RMA New Jersey will change to match that indicated for U.S. Government Portfolio, RMA California and RMA New York. 65 DISTRIBUTION PLAN UBS Global AM is the principal underwriter of each Fund's shares. Under the plans of distribution, U.S. Government Portfolio, RMA Tax-Free, RMA California and RMA New York are authorized to pay UBS Global AM a monthly service fee at the annual rate of up to 0.15% of average daily net assets and RMA New Jersey is authorized to pay at the annual rate of up to 0.12% of average daily net assets for providing certain shareholder services. Currently, UBS Global AM is compensated for providing such services at the annual rate of 0.125% for each of those Funds except for RMA New Jersey, which pays at the annual rate of 0.12%. No such fees are charged by UBS Global AM for the similar services it provides for the Money Market Portfolio. At June 30, 2003, the Funds owed UBS Global AM for such service fees as follows: U.S. Government Portfolio $ 264,369 RMA Tax-Free 341,403 RMA California 78,939 RMA New York 60,693 RMA New Jersey 16,557 - -------------------------------------------------------------------------------
SECURITIES LENDING Each Fund may lend securities up to 33 1/3% of its total assets to qualified broker-dealers or institutional investors. The loans are secured at all times by cash, cash equivalents or U.S. government securities in an amount at least equal to the market value of the securities loaned, plus accrued interest and dividends, determined on a daily basis and adjusted accordingly. Each Fund will regain ownership of loaned securities to exercise certain beneficial rights; however, each Fund may bear the risk of delay in recovery of, or even loss of rights in, the securities loaned should the borrower fail financially. Each Fund receives compensation, which is included in interest income, for lending its securities from interest or dividends earned on the cash, cash equivalents or U.S. Government securities held as collateral, net of fee rebates paid to the borrower plus reasonable administrative and custody fees. UBS Financial Services Inc. and other affiliated broker-dealers have been approved as borrowers under the Funds' securities lending program. For the year ended June 30, 2003, the Money Market Portfolio and the U.S. Government Portfolio earned $1,194,627 and $240,106, respectively, for lending securities. Each Fund's lending agent was UBS Securities LLC (or UBS Financial Services Inc., which provided such service prior to UBS Securities LLC). UBS Securities LLC (or UBS Financial Services Inc.) earned $401,217 and $80,723 in compensation from the Money Market Portfolio and the U.S. Government Portfolio, respectively, for the year ended June 30, 2003. At June 30, 2003, the Money Market Portfolio and the U.S. Government Portfolio owed UBS Securities LLC $24,661 and $8,882, respectively, in compensation. 66 At June 30, 2003, the Money Market Portfolio and the U.S. Government Portfolio had securities on loan having a market value of $1,476,692,220 and $185,126,270, respectively. The custodian for Money Market Portfolio and U.S. Government Portfolio held cash and cash equivalents as collateral for securities loaned of $1,442,748,674 and $190,630,137, respectively. In addition, Money Market Portfolio's custodian held U.S. Government securities having an aggregate value of $66,279,659 as collateral for portfolio securities loaned as follows:
PRINCIPAL AMOUNT MATURITY INTEREST (000) DATES RATES VALUE ---------------------------------------------------------------------------------- $14,500 Federal Home Loan Bank 06/28/04 4.750% $ 15,029,453 51,000 Federal National Mortgage Association 12/04/06 2.200 51,250,206 $ 66,279,659 - ---------------------------------------------------------------------------------
TRANSFER AGENCY AND RELATED SERVICES FEES UBS Global AM provides transfer agency related services to the Funds pursuant to a delegation of authority from PFPC Inc. ("PFPC"), the Funds' transfer agent, and is compensated for these services by PFPC, not the Funds. For the year ended June 30, 2003, UBS Global AM (or UBS Financial Services Inc., which provided such services prior to UBS Global AM) received an approximate percentage of the total transfer agency and related services fees paid by a Fund to PFPC from PFPC, not the Funds, as follows: Money Market Portfolio 56% U.S. Government Portfolio 58% RMA Tax-Free 54% RMA California 55% RMA New York 60% RMA New Jersey 60% - ---------------------------------------------------------------------------------
OTHER LIABILITIES At June 30, 2003, the Funds had the following liabilities outstanding:
PAYABLE FOR DIVIDENDS INVESTMENTS OTHER ACCRUED PAYABLE PURCHASED EXPENSES* - --------------------------------------------------------------------------------- Money Market Portfolio $ 2,315,702 $ 67,902,627 $ 3,830,018 U.S. Government Portfolio 281,132 -- 230,046 RMA Tax-Free 244,755 138,123,532 352,208 RMA California 57,217 65,817,458 95,091 RMA New York 40,046 30,243,953 73,226 RMA New Jersey 7,347 -- 34,573 - ---------------------------------------------------------------------------------
* Excludes investment advisory and administration fees, service fees and payable for securities lending collateral where applicable. 67 MONEY MARKET FUND INSURANCE BONDS At June 30, 2003, each Fund (except U.S. Government Portfolio) had the ability to use insurance bonds that provided limited coverage for certain loss events involving certain money market instruments held by each of these Funds. These loss events include non-payment of principal or interest or a bankruptcy or insolvency of the issuer or credit enhancement provider (if any). The insurance bonds provided for coverage up to $200 million for a number of funds with a deductible of 30 basis points (0.30%) of the total assets of each Fund for First Tier Securities, determined as of the close of business on the first business day prior to the loss event. In the event of a loss covered under the insurance bonds, each Fund would have expected to retain the security in its portfolio, rather than having to sell it at its current market value, until the date of payment of the loss, which would generally be no later than the maturity of the security. While the insurance bonds were intended to provide some protection against credit risk and to help each Fund maintain a constant price per share of $1.00, there was no guarantee that the insurance bonds would have done so. For the year ended June 30, 2003, the Funds did not use these insurance bonds. FEDERAL TAX STATUS Each Fund intends to distribute all of its 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 their net investment income, realized capital gains and certain other amounts, if any, the Funds intend not to be subject to federal excise tax. At June 30, 2003, the components of accumulated earnings on a tax basis were as follows:
ACCUMULATED TOTAL TAX BASIS ORDINARY TAX-EXEMPT CAPITAL AND ACCUMULATED INCOME INCOME OTHER LOSSES EARNINGS - ------------------------------------------------------------------------------------------------------------- Money Market Portfolio $ 7,693,561 -- -- $ 7,693,561 U.S. Government Portfolio 364,277 -- $ (66,251) 298,026 RMA Tax-Free -- $ 244,755 (841) 243,914 RMA California -- 80,772 (23,373) 57,399 RMA New York -- 71,216 -- 71,216 RMA New Jersey -- 11,697 (30) 11,667
68 The tax character of distributions paid to shareholders by the Money Market Portfolio and U.S. Government Portfolio during the fiscal years ended June 30, 2003 and June 30, 2002 was ordinary income. The tax character of distributions paid to shareholders by RMA Tax-Free, RMA California, RMA New York and RMA New Jersey during the fiscal years ended June 30, 2003 and June 30, 2002 was tax-exempt income. At June 30, 2003, the following Funds had net capital loss carryforwards available as reductions, to the extent provided in the regulations, of future net realized capital gains. These losses expire as follows:
FISCAL YEAR U.S. RMA RMA ENDING GOVERNMENT PORTFOLIO TAX-FREE RMA CALIFORNIA NEW JERSEY - -------------------------------------------------------------------------------- 2004 -- $ 108 $ 23,373 -- 2011 $ 66,251 733 -- $ 30 $ 66,251 $ 841 $ 23,373 $ 30
BANK LINE OF CREDIT RMA Tax-Free participated with other funds managed, advised or sub-advised by UBS Global AM in a $300 million committed credit facility ("Facility") with UBS AG, Stamford Branch, to be utilized for temporary financing until the settlement of sales or purchases of portfolio securities, the repurchase or redemption of shares of RMA Tax-Free at the request of the shareholders and other temporary or emergency purposes. Under the Facility arrangement, RMA Tax-Free has agreed to pay a commitment fee, pro rata, based on the relative asset size of the funds in the Facility. Interest was charged to RMA Tax-Free at rates based on prevailing market rates in effect at the time of borrowings. For the year ended June 30, 2003, RMA Tax-Free had an average daily amount of borrowing outstanding under the Facility of $38,788,750 for four days with a related weighted average annualized interest rate of 1.76%, which resulted in $7,077 of interest expense. For the year ended June 30, 2003, RMA Tax-Free paid a commitment fee of $46,786 to UBS AG. At June 30, 2003, there were no outstanding borrowings under the Facility. CAPITAL SHARE TRANSACTIONS There are 60 billion $0.001 par value authorized shares of common stock relating to the Money Market Portfolio, 10 billion $0.001 par value authorized shares of 69 common stock relating to the U.S. Government Portfolio and 20 billion $0.001 par value authorized shares of common stock relating to RMA Tax-Free. Transactions in capital shares, at $1.00 per share, were as follows:
FOR THE YEAR ENDED MONEY MARKET U.S. GOVERNMENT RMA JUNE 30, 2003: PORTFOLIO PORTFOLIO TAX-FREE - ----------------------------------------------------------------------------------------- Shares sold 146,833,090,706 16,712,133,925 20,319,801,073 Shares repurchased (148,002,613,103) (16,583,558,613) (20,359,158,321) Dividends reinvested 233,363,529 25,049,291 22,687,679 Net increase (decrease) in shares outstanding (936,158,868) 153,624,603 (16,669,569) - -----------------------------------------------------------------------------------------
FOR THE YEAR ENDED MONEY MARKET U.S. GOVERNMENT RMA JUNE 30, 2002: PORTFOLIO PORTFOLIO TAX-FREE - ----------------------------------------------------------------------------------------- Shares sold 153,678,521,921 13,381,868,290 19,245,238,308 Shares repurchased (154,066,937,112) (13,074,060,124) (19,319,463,245) Dividends reinvested 538,016,521 48,752,863 43,377,982 Net increase (decrease) in shares outstanding 149,601,330 356,561,029 (30,846,955) - -----------------------------------------------------------------------------------------
BENEFICIAL INTEREST There is an unlimited amount of $0.001 par value shares of beneficial interest authorized for RMA California, RMA New York and RMA New Jersey. Transactions in shares of beneficial interest, at $1.00 per share, were as follows:
RMA CALIFORNIA RMA NEW YORK RMA NEW JERSEY FOR THE YEAR ENDED MUNICIPAL MONEY MUNICIPAL MONEY MUNICIPAL MONEY JUNE 30, 2003: FUND FUND FUND - ----------------------------------------------------------------------------------------- Shares sold 4,300,854,819 3,911,667,870 1,051,608,716 Shares repurchased (4,292,249,715) (3,885,838,900) (1,018,987,939) Dividends reinvested 4,736,135 3,678,723 733,478 Net increase in shares outstanding 13,341,239 29,507,693 33,354,255 - -----------------------------------------------------------------------------------------
RMA CALIFORNIA RMA NEW YORK RMA NEW JERSEY FOR THE YEAR ENDED MUNICIPAL MONEY MUNICIPAL MONEY MUNICIPAL MONEY JUNE 30, 2002: FUND FUND FUND - ----------------------------------------------------------------------------------------- Shares sold 3,977,382,059 3,724,376,063 832,521,578 Shares repurchased (3,992,761,726) (3,746,149,537) (807,408,773) Dividends reinvested 9,072,731 6,623,829 1,224,442 Net increase (decrease) in shares outstanding (6,306,936) (15,149,645) 26,337,247 - -----------------------------------------------------------------------------------------
70 UBS RMA MONEY MARKET PORTFOLIO Financial Highlights Selected data for a share of common stock outstanding throughout each year is presented below:
FOR THE YEARS ENDED JUNE 30, -------------------------------------------------------------------------------- 2003 2002 2001 2000 1999 - --------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF YEAR $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 Net investment income 0.010 0.022 0.055 0.052 0.046 Dividends from net investment income (0.010) (0.022) (0.055) (0.052) (0.046) NET ASSET VALUE, END OF YEAR $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 TOTAL INVESTMENT RETURN(1) 1.02% 2.25% 5.61% 5.29% 4.76% RATIOS/SUPPLEMENTAL DATA: Net assets, end of year (000's) $ 21,832,875 $ 22,768,982 $ 22,609,036 $ 15,821,189 $ 13,446,140 Expenses to average net assets 0.61% 0.60% 0.59% 0.59% 0.59% Net investment income to average net assets 1.02% 2.21% 5.42% 5.19% 4.64% - ---------------------------------------------------------------------------------------------------------------------------
(1) Total investment return is calculated assuming a $10,000 investment on the first day of each year reported, reinvestment of all dividends and other distributions, if any, at net asset value on the dividend payable dates, and a sale at net asset value on the last day of each year reported. Returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions. 71 UBS RMA U.S. GOVERNMENT PORTFOLIO Financial Highlights Selected data for a share of common stock outstanding throughout each year is presented below:
FOR THE YEARS ENDED JUNE 30, -------------------------------------------------------------------------------- 2003 2002 2001 2000 1999 - --------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF YEAR $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 Net investment income 0.010 0.021 0.052 0.048 0.044 Dividends from net investment income (0.010) (0.021) (0.052) (0.048) (0.044) NET ASSET VALUE, END OF YEAR $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 TOTAL INVESTMENT RETURN(1) 1.00% 2.12% 5.31% 4.88% 4.45% RATIOS/SUPPLEMENTAL DATA: Net assets, end of year (000's) $ 2,510,453 $ 2,356,829 $ 2,000,303 $ 1,670,845 $ 1,354,594 Expenses to average net assets 0.56% 0.57% 0.57% 0.59% 0.60% Net investment income to average net assets 1.00% 2.06% 5.15% 4.81% 4.35% - ---------------------------------------------------------------------------------------------------------------------------
(1) Total investment return is calculated assuming a $10,000 investment on the first day of each year reported, reinvestment of all dividends and other distributions, if any, at net asset value on the dividend payable dates, and a sale at net asset value on the last day of each year reported. Returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions. 72 UBS RMA TAX FREE FUND INC. Financial Highlights Selected data for a share of common stock outstanding throughout each year is presented below:
FOR THE YEARS ENDED JUNE 30, -------------------------------------------------------------------------------- 2003 2002 2001 2000 1999 - --------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF YEAR $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 Net investment income 0.007 0.012 0.032 0.031 0.026 Dividends from net investment income (0.007) (0.012) (0.032) (0.031) (0.026) NET ASSET VALUE, END OF YEAR $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 TOTAL INVESTMENT RETURN(1) 0.67% 1.24% 3.28% 3.10% 2.67% RATIOS/SUPPLEMENTAL DATA: Net assets, end of year (000's) $ 3,238,850 $ 3,255,520 $ 3,286,150 $ 2,593,878 $ 2,424,938 Expenses to average net assets 0.63% 0.60% 0.59% 0.60% 0.59% Net investment income to average net assets 0.67% 1.23% 3.20% 3.06% 2.63% - ---------------------------------------------------------------------------------------------------------------------------
(1) Total investment return is calculated assuming a $10,000 investment on the first day of each year reported, reinvestment of all dividends and other distributions, if any, at net asset value on the dividend payable dates and a sale at net asset value on the last day of each year reported. Returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions. 73 UBS RMA CALIFORNIA MUNICIPAL MONEY FUND Financial Highlights Selected data for a share of beneficial interest outstanding throughout each year is presented below:
FOR THE YEARS ENDED JUNE 30, -------------------------------------------------------------------------------- 2003 2002 2001 2000 1999 - --------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF YEAR $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 Net investment income 0.006 0.011 0.027 0.026 0.023 Dividends from net investment income (0.006) (0.011) (0.027) (0.026) (0.023) NET ASSET VALUE, END OF YEAR $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 TOTAL INVESTMENT RETURN(1) 0.60% 1.10% 2.75% 2.59% 2.31% RATIOS/SUPPLEMENTAL DATA: Net assets, end of year (000's) $ 767,006 $ 753,664 $ 759,961 $ 626,424 $ 575,296 Expenses to average net assets 0.66% 0.65% 0.66% 0.65% 0.67% Net investment income to average net assets 0.60% 1.09% 2.70% 2.56% 2.28% - ---------------------------------------------------------------------------------------------------------------------------
(1) Total investment return is calculated assuming a $10,000 investment on the first day of each year reported, reinvestment of all dividends and other distributions, if any, at net asset value on the dividend payable dates, and a sale at net asset value on the last day of each year reported. Returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions. 74 UBS RMA NEW YORK MUNICIPAL MONEY FUND Financial Highlights Selected data for a share of beneficial interest outstanding throughout each year is presented below:
FOR THE YEARS ENDED JUNE 30, -------------------------------------------------------------------------------- 2003 2002 2001 2000 1999 - --------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF YEAR $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 Net investment income 0.006 0.011 0.030 0.029 0.025 Dividends from net investment income (0.006) (0.011) (0.030) (0.029) (0.025) NET ASSET VALUE, END OF YEAR $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 TOTAL INVESTMENT RETURN(1) 0.62% 1.08% 3.04% 2.93% 2.50% RATIOS/SUPPLEMENTAL DATA: Net assets, end of year (000's) $ 588,851 $ 559,341 $ 574,490 $ 437,253 $ 372,880 Expenses to average net assets 0.67% 0.68% 0.69% 0.67% 0.65% Net investment income to average net assets 0.62% 1.07% 2.95% 2.90% 2.46% - ---------------------------------------------------------------------------------------------------------------------------
(1) Total investment return is calculated assuming a $10,000 investment on the first day of each year reported, reinvestment of all dividends and other distributions, if any, at net asset value on the dividend payable dates, and a sale at net asset value on the last day of each year reported. Returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions. 75 UBS RMA NEW JERSEY MUNICIPAL MONEY FUND Financial Highlights Selected data for a share of beneficial interest outstanding throughout each year is presented below:
FOR THE YEARS ENDED JUNE 30, -------------------------------------------------------------------------------- 2003 2002 2001 2000 1999 - --------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF YEAR $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 Net investment income 0.005 0.010 0.028 0.027 0.022 Dividends from net investment income (0.005) (0.010) (0.028) (0.027) (0.022) NET ASSET VALUE, END OF YEAR $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 TOTAL INVESTMENT RETURN(1) 0.51% 0.97% 2.86% 2.72% 2.21% RATIOS/SUPPLEMENTAL DATA: Net assets, end of year (000'S) $ 161,854 $ 128,500 $ 102,162 $ 93,276 $ 62,972 Expenses to average net assets 0.73% 0.77% 0.79% 0.78% 0.89% Net investment income to average net assets 0.50% 0.94% 2.77% 2.69% 2.18% - ---------------------------------------------------------------------------------------------------------------------------
(1) Total investment return is calculated assuming a $10,000 investment on the first day of each year reported, reinvestment of all dividends and other distributions, if any, at net asset value on the dividend payable dates, and a sale at net asset value on the last day of each year reported. Returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions. 76 UBS RMA Report of Ernst & Young LLP, Independent Auditors To the Boards of Directors/Trustees and Shareholders of: Money Market Portfolio U.S. Government Portfolio Tax-Free Fund California Municipal Money Fund New York Municipal Money Fund New Jersey Municipal Money Fund We have audited the accompanying statements of net assets of the UBS RMA Money Market Portfolio and UBS RMA U.S. Government Portfolio (two of the Funds comprising UBS RMA Money Fund Inc.), UBS RMA Tax-Free Fund Inc., UBS RMA California Municipal Money Fund and UBS RMA New York Municipal Money Fund (two of the Funds comprising UBS Managed Municipal Trust) and UBS RMA New Jersey Municipal Money Fund (the sole Fund comprising UBS Municipal Money Market Series) (collectively, the "Funds") as of June 30, 2003, and the related statements of operations for the year then ended, the statements 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 Funds' 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 auditing standards generally accepted in the United States. 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 securities owned at June 30, 2003, 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 UBS RMA Money Market Portfolio, UBS RMA U.S. Government Portfolio, UBS RMA Tax-Free Fund Inc., UBS RMA California Municipal Money Fund, UBS RMA New York Municipal Money Fund and UBS RMA New Jersey Municipal Money Fund at June 30, 2003, 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 accounting principles generally accepted in the United States. /s/ Ernst & Young LLP New York, New York August 15, 2003 77 UBS RMA Supplemental Information (unaudited) BOARDS OF DIRECTORS OR TRUSTEES & OFFICERS UBS RMA Money Fund Inc. ("RMA Money Fund") and UBS RMA Tax-Free Fund Inc. ("RMA Tax-Free Fund") (each a "Corporation") were organized as Maryland corporations. UBS RMA Money Market Portfolio and UBS RMA U.S. Government Portfolio are series of RMA Money Fund. UBS Managed Municipal Trust ("Managed Municipal Trust") and UBS Municipal Money Market Series ("Municipal Money Market Series") (each a "Trust") were formed as business trusts under the laws of the Commonwealth of Massachusetts. UBS RMA California Municipal Money Fund and UBS RMA New York Municipal Money Fund are series of Managed Municipal Trust. UBS RMA New Jersey Municipal Money Fund is a series of Municipal Money Market Series. INTERESTED BOARD MEMBERS
TERM OF OFFICE+ AND POSITION(S) LENGTH OF NAME, ADDRESS, HELD WITH TIME PRINCIPAL OCCUPATION(S) AND AGE FUND SERVED DURING PAST 5 YEARS - -------------------------------------------------------------------------------------------------------------- Margo N. Alexander*++; Director/ Since 1996 Mrs. Alexander is retired. She was an 56 Trustee (Managed executive vice president of UBS Municipal Trust, Financial Services Inc. (March 1984 to RMA Money December 2002). She was chief executive Fund, RMA officer (from January 1995 to Tax-Free Fund) October 2000), a director (from Since 1995 January 1995 to September 2001) and (Municipal chairman (from March 1999 to Money September 2001) of UBS Global AM. Market Series) Brian M. Storms*++; 48 Director/Trustee Since 2003 Mr. Storms is chief executive officer of UBS and Global Asset Management--Americas region Chairman (since July 2002). Mr. Storms was chief of the executive officer, president and/or chief Board of operating officer of UBS Global AM and Directors/Trustees certain affiliated asset management companies from 1999 to July 2002. He was president of Prudential Investments (1996-1999).
78 Each Corporation or Trust is governed by a Board of Directors or Trustees, respectively (sometimes referred to as "board members"), which oversees the operations of the applicable Fund. Each board member serves an indefinite term of office. Officers are appointed by the board members and serve at the pleasure of a Board. The table below shows, for each board member and officer, his or her name, address and age, the position held with the Corporation or Trust, the length of time served as a board member and officer of the Corporation or Trust, the board member's and officer's principal occupations during the last five years, the number of portfolios in the UBS fund complex overseen by the board member or for which a person served as an officer, and other directorships held by such board member. The Corporations' and Trusts' Statement of Additional Information contains additional information about the board members and is available, without charge, upon request, by calling 1-800-762 1000.
NUMBER OF NAME, ADDRESS, PORTFOLIOS IN FUND COMPLEX OTHER DIRECTORSHIPS AND AGE OVERSEEN BY BOARD MEMBER HELD BY BOARD MEMBER - ----------------------------------------------------------------------------------------------------------------- Margo N. Alexander*++; Mrs. Alexander is a director or trustee None 56 of 19 investment companies (consisting of 40 portfolios) for which UBS Global AM or one of its affiliates serves as investment advisor, sub-advisor or manager. Brian M. Storms*++; 48 Mr. Storms is a director or trustee of None 23 investment companies (consisting of 83 portfolios) for which UBS Global AM or one of its affiliates serves as investment advisor, subadvisor or manager.
79 INDEPENDENT BOARD MEMBERS
TERM OF OFFICE+ AND POSITION(S) LENGTH OF NAME, ADDRESS, HELD WITH TIME PRINCIPAL OCCUPATION(S) AND AGE FUND SERVED DURING PAST 5 YEARS - ------------------------------------------------------------------------------------------------------------ Richard Q. Armstrong; 68 Director/ Since 1996 Mr. Armstrong is chairman and R.Q.A. Enterprises Trustee principal of R.Q.A. Enterprises One Old Church Road-- (management consulting firm) (since Unit # 6 April 1991 and principal occupation Greenwich, CT 06830 since March 1995). David J. Beaubien; 68 Director/ Since 2001 Mr. Beaubien is chairman of Yankee 101 Industrial Road Trustee Environmental Systems, Inc., a Turners Falls, MA 01376 manufacturer of meteorological measuring systems (since 1991). Richard R. Burt; 56 Director/ Since 1996 Mr. Burt is chairman of Diligence LLC 1275 Pennsylvania Ave., N.W. Trustee (international information and security Washington, D.C. firm) and IEP Advisors (international 20004 investments and consulting firm). Meyer Feldberg; 61 Director/ Since 1991 Mr. Feldberg is Dean and Professor of Columbia University Trustee (Managed Management of the Graduate School 101 Uris Hall Municipal Trust) of Business, Columbia University New York, New York Since 1996 (since 1989). 10027 (Municipal Money Market Series) Since 1992 (RMA Money Fund, RMA Tax-Free Fund)
80
NUMBER OF NAME, ADDRESS, PORTFOLIOS IN FUND COMPLEX OTHER DIRECTORSHIPS AND AGE OVERSEEN BY BOARD MEMBER HELD BY BOARD MEMBER - ----------------------------------------------------------------------------------------------------------------- Richard Q. Armstrong; 68 Mr. Armstrong is a director or trustee of 19 Mr. Armstrong is also a director of AlFresh R.Q.A. Enterprises investment companies (consisting of 40 Beverages Canada, Inc. (a Canadian beverage One Old Church Road-- portfolios) for which UBS Global AM subsidiary of AlFresh Foods Inc.) Unit # 6 or one of its affiliates serves as investment Greenwich, CT 06830 advisor, sub-advisor or manager. David J. Beaubien; 68 Mr. Beaubien is a director or trustee of 19 Mr. Beaubien is also a director of 101 Industrial Road investment companies (consisting of 40 IEC Electronics, Inc., a manufacturer Turners Falls, MA 01376 portfolios) for which UBS Global AM of electronic assemblies. or one of its affiliates serves as investment advisor, sub-advisor or manager. Richard R. Burt; 56 Mr. Burt is a director or trustee of 19 Mr. Burt is also a director of 1275 Pennsylvania Ave., N.W. investment companies (consisting of 40 Hollinger International, Inc. (publishing), Washington, D.C. portfolios) for which UBS Global AM HCL Technologies, Ltd., The Central 20004 or one of its affiliates serves as investment European Fund, Inc., The Germany Fund, Inc., advisor, sub-advisor or manager. IGT, Inc. (provides technology to gaming and wagering industry) and chairman of Weirton Steel Corp. (makes and finishes steel products). He is also a director or trustee of funds in the Scudder Mutual Funds Family (consisting of 47 portfolios). Meyer Feldberg; 61 Dean Feldberg is a director or trustee of 33 Dean Feldberg is also a director of Primedia Columbia University investment companies (consisting of 54 Inc. (publishing), Federated Department Stores, 101 Uris Hall portfolios) for which UBS Global AM or one Inc. (operator of department stores), Revlon, New York, New York of its affiliates serves as investment advisor, Inc. (cosmetics), Select Medical Inc. 10027 sub-advisor or manager. (healthcare services) and SAPPI, Ltd. (producer of paper).
81
TERM OF OFFICE+ AND POSITION(S) LENGTH OF NAME, ADDRESS, HELD WITH TIME PRINCIPAL OCCUPATION(S) AND AGE FUND SERVED DURING PAST 5 YEARS - ------------------------------------------------------------------------------------------------------------ Frederic V. Malek; 66 Director/ Since 1987 Mr. Malek is chairman of Thayer 1455 Pennsylvania Trustee (Managed Capital Partners (merchant bank) and Avenue, N.W. Municipal Trust, chairman of Thayer Hotel Investors III, Suite 350 RMA Money Thayer Hotel Investors II and Lodging Washington, D.C. Fund, Opportunities Fund (hotel investment 20004 RMA Tax-Free partnerships) (since 1992). Fund) Since 1996 (Municipal Money Market Series) Carl W. Schafer; 67 Director/ Since 1996 Mr. Schafer is president of the Atlantic 66 Witherspoon Street Trustee (Managed Foundation (charitable foundation) #1100 Municipal Trust, (since 1993). Princeton, NJ 08542 RMA Money Fund, RMA Tax-Free Fund) Since 1990 (Municipal Money Market Series) William D. White; 69 Director/ Since 2001 Mr. White is retired (since 1994). P.O. Box 199 Trustee Upper Black Eddy, PA 18972
82
NUMBER OF NAME, ADDRESS, PORTFOLIOS IN FUND COMPLEX OTHER DIRECTORSHIPS AND AGE OVERSEEN BY BOARD MEMBER HELD BY BOARD MEMBER - ----------------------------------------------------------------------------------------------------------------------------------- Frederic V. Malek; 66 Mr. Malek is a director or trustee of 19 Mr. Malek is also a director of Aegis 1455 Pennsylvania investment companies (consisting of 40 Communications, Inc. (tele-services), American Avenue, N.W. portfolios) for which UBS Global AM Management Systems, Inc. (management Suite 350 or one of its affiliates serves as investment consulting and computer related services), Washington, D.C. advisor, sub-advisor or manager. Automatic Data Processing, Inc. (computing 20004 services), CB Richard Ellis, Inc. (real estate services), Federal National Mortgage Association, FPL Group, Inc. (electric services), Manor Care, Inc. (healthcare), and Northwest Airlines Inc. Carl W. Schafer; 67 Mr. Schafer is a director or trustee of 19 Mr. Schafer is also a director of Labor Ready, 66 Witherspoon Street investment companies (consisting of 40 Inc. (temporary employment), Roadway Corp. #1100 portfolios) for which UBS Global AM (trucking), Guardian Life Insurance Princeton, NJ 08542 or one of its affiliates serves as investment Company Mutual Funds (consisting of advisor, sub-advisor or manager. 19 portfolios), the Harding, Loevner Funds (consisting of three portfolios), E.I.I. Realty Securities Trust (investment company) and Frontier Oil Corporation. William D. White; 69 Mr. White is a director or trustee of 19 None P.O. Box 199 investment companies (consisting of 40 Upper Black Eddy, PA portfolios) for which UBS Global AM or 18972 one of its affiliates serves as investment advisor, sub-advisor or manager.
83 OFFICERS
TERM OF PRINCIPAL OCCUPATION(S) OFFICE+ AND DURING PAST 5 YEARS; POSITION(S) LENGTH OF NUMBER OF PORTFOLIOS IN NAME, ADDRESS, HELD WITH TIME FUND COMPLEX FOR WHICH PERSON AND AGE FUND SERVED SERVES AS OFFICER - ------------------------------------------------------------------------------------------------------------ Debbie Baggett*; 44 Vice President Since 1995 Ms. Baggett is a director and portfolio (RMA manager of UBS Global AM. Tax-Free Ms. Baggett is a vice president of Fund) four investment companies (consisting Since 1990 of nine portfolios) for which (Managed UBS Global AM or one of its affiliates Municipal Trust) serves as investment advisor, Since 1996 sub-advisor or manager. (Municipal Money Market Series) W. Douglas Beck*; 36 Vice President Since 2003 Mr. Beck is an executive director and head of mutual fund product management of UBS Global AM (since 2002). From March 1998 to November 2002, he held various positions at Merrill Lynch, the most recent being first vice president and co-manager of the managed solutions group. Mr. Beck is vice president of 22 investment companies (consisting of 81 portfolios) for which UBS Global AM or one of its affiliates serves as investment advisor, sub-advisor or manager. Thomas Disbrow*; 37 Vice President Since 2000 Mr. Disbrow is a director and a senior and Assistant manager of the mutual fund finance Treasurer department of UBS Global AM. Prior to November 1999, he was a vice president of Zweig/Glaser Advisers. Mr. Disbrow is a vice president and assistant treasurer of 19 investment companies (consisting of 40 portfolios) for which UBS Global AM or one of its affiliates serves as investment advisor, sub-advisor or manager.
84
TERM OF PRINCIPAL OCCUPATION(S) OFFICE+ AND DURING PAST 5 YEARS; POSITION(S) LENGTH OF NUMBER OF PORTFOLIOS IN NAME, ADDRESS, HELD WITH TIME FUND COMPLEX FOR WHICH PERSON AND AGE FUND SERVED SERVES AS OFFICER - ------------------------------------------------------------------------------------------------------------ Amy R. Doberman*; 41 Vice President Since 2000 Ms. Doberman is a managing director and and Secretary general counsel of UBS Global AM. From December 1997 through July 2000, she was general counsel of Aeltus Investment Management, Inc. Ms. Doberman is vice president and assistant secretary of five investment companies (consisting of 44 portfolios) and vice president and secretary of 19 investment companies (consisting of 40 portfolios) for which UBS Global AM or one of its affiliates serves as investment advisor, sub-advisor or manager. Elbridge T. Gerry III*; Vice President Since 1996 Mr. Gerry is a managing director-- 46 (Managed fixed income of UBS Global AM Municipal Mr. Gerry is a vice president Trust) of six investment companies Since 2000 (consisting of 11 portfolios) (Municipal for which UBS Global AM or one Money of its affiliates serves as Market Series, investment advisor, sub-advisor or RMA Tax-Free manager. Fund) David M. Goldenberg*; 36 Vice President Since 2002 Mr. Goldenberg is an executive and Assistant director and deputy general counsel Secretary of UBS Global AM. From 2000 to 2002 he was director, legal affairs at Lazard Asset Management. Mr. Goldenberg served in various capacities, including most recently as global director of compliance for SSB Citi Asset Management Group from 1996 to 2000. Mr. Goldenberg is a vice president and secretary of five investment companies (consisting of 44 portfolios) and a vice president and assistant secretary of 19 investment companies (consisting of 40 portfolios) for which UBS Global AM or one of its affiliates serves as investment advisor, sub-advisor or manager.
85
TERM OF PRINCIPAL OCCUPATION(S) OFFICE+ AND DURING PAST 5 YEARS; POSITION(S) LENGTH OF NUMBER OF PORTFOLIOS IN NAME, ADDRESS, HELD WITH TIME FUND COMPLEX FOR WHICH PERSON AND AGE FUND SERVED SERVES AS OFFICER - ------------------------------------------------------------------------------------------------------------ Kevin J. Mahoney*; 37 Vice President Since 1999 Mr. Mahoney is a director and a and Assistant senior manager of the mutual Treasurer fund finance department of UBS Global AM. Prior to April 1999, he was the manager of the mutual fund internal control group of Salomon Smith Barney. Mr. Mahoney is a vice president and assistant treasurer of 19 investment companies (consisting of 40 portfolios) for which UBS Global AM or one of its affiliates serves as investment advisor, sub-advisor or manager. Michael H. Markowitz**; Vice President Since 2001 Mr. Markowitz is an executive 38 (RMA director, portfolio manager and head Money of U.S. short duration fixed income Fund) of UBS Global AM. He is also an executive director and portfolio manager of UBS Global Asset Management (Americas) Inc., an affiliate of UBS Global AM. Mr. Markowitz is a vice president of five investment companies (consisting of 25 portfolios) for which UBS Global AM or one of its affiliates serves as investment advisor, sub-advisor or manager. Susan P. Ryan*; 43 Vice President Since 1995 Ms. Ryan is an executive director and (RMA a portfolio manager of UBS Global Money AM. Ms. Ryan is a vice president of Fund) five investment companies (consisting of 13 portfolios) for which UBS Global AM or one of its affiliates serves as investment advisor, sub-advisor or manager.
86
TERM OF PRINCIPAL OCCUPATION(S) OFFICE+ AND DURING PAST 5 YEARS; POSITION(S) LENGTH OF NUMBER OF PORTFOLIOS IN NAME, ADDRESS, HELD WITH TIME FUND COMPLEX FOR WHICH PERSON AND AGE FUND SERVED SERVES AS OFFICER - ------------------------------------------------------------------------------------------------------------ Paul H. Schubert*; 40 Vice President Since 1994 Mr. Schubert is an executive director and Treasurer (Managed and head of the mutual fund finance Municipal department of UBS Global AM. Trust, RMA Mr. Schubert is treasurer and principal Money Fund, accounting officer of three investment RMA Tax-Free) companies (consisting of 41 portfolios), Since 1995 a vice president and treasurer of 20 (Municipal investment companies (consisting of 41 Money portfolios), and treasurer and chief Market financial officer of one investment Series) company (consisting of two portfolios) for which UBS Global AM or one of its affiliates serves as investment advisor, sub-advisor or manager. Joseph A. Varnas*; 35 President Since 2003 Mr. Varnas is a managing director (since March 2003), chief technology officer (since March 2001) and head of product, technology and operations of UBS Global AM (since November 2002). From 2000 to 2001, he was manager of product development in Investment Consulting Services at UBS Financial Services Inc. Mr. Varnas was a senior analyst in the Global Securities Research and Economics Group at Merrill Lynch from 1995 to 1999. Mr. Varnas is president of 22 investment companies (consisting of 81 portfolios) for which UBS Global AM or one of its affiliates serves as investment advisor, sub-advisor or manager.
87
TERM OF PRINCIPAL OCCUPATION(S) OFFICE+ AND DURING PAST 5 YEARS; POSITION(S) LENGTH OF NUMBER OF PORTFOLIOS IN NAME, ADDRESS, HELD WITH TIME FUND COMPLEX FOR WHICH PERSON AND AGE FUND SERVED SERVES AS OFFICER - ------------------------------------------------------------------------------------------------------------ Keith A. Weller*; 42 Vice President Since 1995 Mr. Weller is a director and senior and Assistant (Managed associate general counsel of UBS Secretary Municipal Global AM. Mr. Weller is a vice Trust, president and assistant secretary of 19 RMA Money investment companies (consisting of Fund, RMA 40 portfolios) for which UBS Global Tax-Free AM or one of its affiliates Fund) serves as investment advisor, Since 1996 sub-advisor or manager. (Municipal Money Market Series)
* This person's business address is 51 West 52nd Street, New York, New York 10019-6114. ** This person's business address is One North Wacker Drive, Chicago, Illinois 60606. + Each board member holds office for an indefinite term. Officers are appointed by the board members and serve at the pleasure of a board. ++ Mrs. Alexander and Mr. Storms are "interested persons" of a Corporation/Trust as defined in the Investment Company Act by virtue of their positions with UBS Global AM and/or its affiliates. 88 DIRECTORS/TRUSTEES Brian M. Storms CHAIRMAN Margo N. Alexander Richard Q. Armstrong David J. Beaubien Richard R. Burt Meyer Feldberg Frederic V. Malek Carl W. Schafer William D. White PRINCIPAL OFFICERS Joseph A. Varnas PRESIDENT Amy R. Doberman VICE PRESIDENT AND SECRETARY Susan P. Ryan VICE PRESIDENT (TAXABLE FUNDS) Debbie Baggett VICE PRESIDENT (TAX-FREE FUNDS) Paul H. Schubert VICE PRESIDENT AND TREASURER INVESTMENT ADVISOR AND ADMINISTRATOR UBS Financial Services Inc. 1285 Avenue of the Americas New York, New York 10019-6028 SUB-ADVISOR, SUB-ADMINISTRATOR AND PRINCIPAL UNDERWRITER UBS Global Asset Management (US) Inc. 51 West 52nd Street New York, New York 10019-6114 THIS REPORT IS NOT TO BE USED IN CONNECTION WITH THE OFFERING OF SHARES OF A FUND UNLESS ACCOMPANIED OR PRECEDED BY AN EFFECTIVE PROSPECTUS. (C)2003 UBS Global Asset Management (US) Inc. All rights reserved. [UBS LOGO] Presorted Standard U.S.Postage UBS GLOBAL ASSET MANAGEMENT (US) INC. PAID 51 West 52nd Street Smithtown, NY New York, New York 10019-6114 Permit 700 ITEM 2. CODE OF ETHICS. Form N-CSR disclosure requirement not yet effective with respect to the registrant. ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT. Form N-CSR disclosure requirement not yet effective with respect to the registrant. ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES. Form N-CSR disclosure requirement not yet effective with respect to the registrant. ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.- Not applicable to the registrant. ITEM 6. [RESERVED BY SEC FOR FUTURE USE. ] ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED - END MANAGEMENT INVESTMENT COMPANIES. Not applicable to the registrant. ITEM 8. [RESERVED BY SEC FOR FUTURE USE. ] ITEM 9. CONTROLS AND PROCEDURES. (a) The registrant's principal executive officer and principal financial officer have concluded that the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended) are effective based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of this document. (b) The registrant's principal executive officer and principal financial officer are aware of no changes in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal half-year that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting. ITEM 10. EXHIBITS. (a) (1) Code of Ethics - Form N-CSR requirement not yet effective with respect to the registrant. (a) (2) Certification of principal executive officer and principal financial officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 is attached hereto as Exhibit 99.CERT. (b) Certification of principal executive officer and principal financial officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 is attached hereto as Exhibit 99.906CERT. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. UBS MUNICIPAL MONEY MARKET SERIES By: /s/ Joseph A. Varnas -------------------- Joseph A. Varnas President Date: September 5, 2003 ----------------- Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By: /s/ Joseph A. Varnas -------------------- Joseph A. Varnas President Date: September 5, 2003 ----------------- By: /s/ Paul H. Schubert -------------------- Paul H. Schubert Treasurer Date: September 5, 2003 ----------------- EX-99.CERT 3 a2118068zex-99_cert.txt EXHIBIT 99.CERT Exhibit Ex-99.CERT CERTIFICATIONS I, Joseph A. Varnas, President of UBS Municipal Money Market Series, certify that: 1. I have reviewed this report on Form N-CSR of UBS Municipal Money Market Series; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and (c) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal half-year (the registrant's second fiscal half-year in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. By: /s/ Joseph A. Varnas -------------------- Joseph A. Varnas President Date: September 5, 2003 ----------------- I, Paul H. Schubert, Treasurer of UBS Municipal Money Market Series, certify that: 1. I have reviewed this report on Form N-CSR of UBS Municipal Money Market Series; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report; 4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and (c) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal half-year (the registrant's second fiscal half-year in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. By: /s/ Paul H. Schubert -------------------- Paul H. Schubert Treasurer Date: September 5, 2003 ----------------- EX-99.906CERT 4 a2118068zex-99_906cert.txt EXHIBIT 99.906CERT Exhibit EX-99.906CERT Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (Subsections (a) and (b) of Section 1350, Chapter 63 of Title 18, United States Code) In connection with the attached report of UBS Municipal Money Market Series (the "Registrant") on Form N-CSR (the "Report"), each of the undersigned officers of the Registrant does hereby certify that, to the best of such officer's knowledge: 1) the Report fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934, as amended; 2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant as of, and for, the periods presented in the Report. Dated: September 5, 2003 ----------------- By: /s/ Joseph A. Varnas -------------------- Joseph A. Varnas President Dated: September 5, 2003 ----------------- By: /s/ Paul H. Schubert -------------------- Paul H. Schubert Treasurer This certification is being furnished solely pursuant to 18 U.S.C. Section 1350 and is not being filed as part of the Report or as a separate disclosure document. -----END PRIVACY-ENHANCED MESSAGE-----