N-CSRS 1 a2150802zn-csrs.txt N-CSRS 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: 811-06173 ------------------------------------------------- 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) Mark F. Kemper, Esq. 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 LLP 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 Date of reporting period: December 31, 2004 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 SEMIANNUAL REPORT DECEMBER 31, 2004 NOTICE TO SHAREHOLDERS OF UBS RMA MONEY MARKET PORTFOLIO: The Board of Directors of UBS RMA Money Fund Inc. approved a proposal by UBS Financial Services Inc. and UBS Global Asset Management (US) Inc. ("UBS Global AM") to restructure UBS RMA Money Market Portfolio's fees, subject to shareholder approval. Total UBS RMA Money Market Portfolio shareholder expenses are not expected to increase as a result of these changes. The Board approved a proposal to seek the approval of UBS RMA Money Market Portfolio's shareholders of a shareholder services plan. Under the plan, UBS RMA Money Market Portfolio's shareholders would pay UBS Global AM a fee to compensate it for certain expenses incurred in connection with its activities in providing certain shareholder and account maintenance services. UBS Global AM may reallow any or all of the service fee to such dealers as UBS Global AM may from time to time determine; however, it is currently expected that the service fee will be paid to UBS Financial Services Inc. for shareholder servicing. If UBS RMA Money Market Portfolio shareholders approve the proposed shareholder services plan, UBS Financial Services Inc. has agreed to waive a portion of its advisory and administration fee to limit expenses. The net effect of the proposed changes should be to bring the fee structure for the UBS RMA Money Market Portfolio more in line with that of the other five RMA money market funds, which already are subject to a shareholder service fee. Total UBS RMA Money Market Portfolio shareholder expenses are not expected to increase as a result of these changes. A proxy statement describing the proposed changes in more detail and soliciting the approval of UBS RMA Money Market Portfolio shareholders is expected to be distributed later in 2005. Shareholders should rely upon those proxy materials in making a determination on how to vote. UBS RMA February 15, 2005 DEAR SHAREHOLDER, We present you with the semiannual 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 (collectively, the "Funds") for the six months ended December 31, 2004. PERFORMANCE While remaining relatively low from a historical perspective, interest rates rose during the reporting period. As a result, yields available from money market instruments also increased, which helped boost the yields of the RMA Funds. As of December 31, 2004, the Funds' seven-day current yields were: UBS RMA Money Market Portfolio, 1.75%; UBS RMA U.S. Government Portfolio, 1.40%; UBS RMA Tax-Free Fund Inc., 1.28%; UBS RMA California Municipal Money Fund, 1.24%; UBS RMA New York Municipal Money Fund, 1.15%; and UBS RMA New Jersey Municipal Money Fund, 1.11%. (For more on the Funds' performance, refer to "Performance and Portfolio Characteristics At A Glance" starting on page 5.) AN INTERVIEW WITH THE PORTFOLIO MANAGERS Q. CAN YOU DESCRIBE THE ECONOMIC ENVIRONMENT DURING THE REPORTING PERIOD? A. After posting a 3.3% growth in the second quarter of the year, third quarter gross domestic product rose to 4.0%. However, fourth quarter advance figures indicate that due to deterioration in trade performance and a [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 MANAGERS (BOTH PORTFOLIOS): Michael Markowitz Robert Sabatino 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: Tax-Free--October 4, 1982 California Municipal--November 7, 1988 New York Municipal--November 10, 1988 New Jersey Municipal--February 1, 1991 DIVIDEND PAYMENT (ALL SIX FUNDS): Monthly 1 pickup in inflation, GDP grew at a weaker-than-expected 3.1%--the slowest pace since the beginning of 2003. Q. HOW DID THE FEDERAL RESERVE BOARD (THE "FED") REACT IN THIS ECONOMIC ENVIRONMENT? A. After many months of speculation, the Fed raised the federal funds rate (or "fed funds" rate)--the rate that banks charge one another for funds they borrow on an overnight basis--from 1.00% to 1.25% at the end of June 2004. The Fed raised rates again at its subsequent meetings in August, September, November and December, bringing the fed funds rate to 2.25% at the end of the reporting period. This series of five rate hikes was the most in a calendar year since 1994. Coinciding with the December rate hike, the Fed stated: "Output appears to be growing at a moderate pace despite the earlier rise in energy prices, and labor market conditions continue to improve gradually. Inflation and longer-term inflation expectations remain well contained." The market interpreted this statement to mean that the Fed would continue to raise rates in the near future. Q. HOW WERE THE PORTFOLIOS POSITIONED DURING THE FISCAL PERIOD? A. Throughout much of the reporting period, we employed a "barbell" strategy, whereby we purchased securities at both ends of the maturity spectrum. Our longer-term securities--with maturities up to roughly one year--were used to lock in higher rates further out on the curve, while our shorter-term securities--with maturities of one month or less--provided liquidity and gave us the ability to reinvest at higher rates when the Fed increased interest rates. This strategy was beneficial because it allowed us to generate incremental yield compared with a more "laddered" approach, wherein a portfolio is spread out among all maturity levels. Looking at the Funds more closely, for both UBS RMA Money Market Portfolio and UBS RMA U.S. Government Portfolio, quality and liquidity continued to be focal points of our investment approach. Within UBS RMA U.S. Government Portfolio, we concentrated a large portion of the portfolio's holdings in US Treasury securities. Within UBS RMA Money Market Portfolio, we continued to emphasize commercial paper, as it allowed us to generate incremental yield in the healthier credit environment that characterized the reporting period. The portfolio also held investments in other sectors, such as US government agency obligations, certificates of deposit and other short-term corporate obligations. 2 Credit quality and liquidity were also paramount for 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. This strategy helped the Funds' to avoid state- and issue-specific credit problems that occurred in the municipal market. Q. WHAT IS YOUR OUTLOOK FOR THE ECONOMY, AND HOW DO YOU ANTICIPATE STRUCTURING THE PORTFOLIOS GOING FORWARD? A. At this point, it appears clear that the Fed will likely continue to raise interest rates in the months to come (most recently, at its February 2, 2005 meeeting). In anticipation of the higher interest rate environment, we expect to allow the Funds' weighted average maturities to drift shorter in order to take advantage of higher yields. Maintaining high-quality portfolios continues to be of paramount importance. We anticipate allocating a large portion of UBS RMA Money Market Portfolio and UBS RMA U.S. Government Portfolio to US government and agency securities, among other things. We thank you for your continued support, and welcome any comments or questions you may have. For additional information on UBS Funds,* please contact your financial advisor or visit us at www.ubs.com. Sincerely, /s/ Joseph A. Varnas /s/ Michael Markowitz JOSEPH A. VARNAS MICHAEL MARKOWITZ PRESIDENT PORTFOLIO MANAGER UBS RMA Money Fund Inc. (UBS RMA UBS RMA Money Market Portfolio Money Market Portfolio and UBS RMA UBS RMA U.S. Government Portfolio U.S. Government Portfolio) MANAGING DIRECTOR UBS RMA Tax-Free Fund Inc. UBS Global Asset Management (US) Inc. UBS Managed Municipal Trust (UBS RMA California Municipal Money Fund and UBS RMA New York Municipal Money Fund) UBS Municipal Money Market Series (UBS RMA New Jersey Municipal Money Fund) MANAGING DIRECTOR UBS Global Asset Management (US) Inc. * Mutual funds are sold by prospectus only. You should carefully consider a fund's investment objectives, risks, charges and expenses before investing. This and other important information is included in the fund's prospectus, which should be read carefully before investing. Prospectuses can be obtained from your investment professional or by visiting our website at www.ubs.com. 3 /s/ Robert Sabatino /s/ Debbie Baggett ROBERT SABATINO DEBBIE BAGGETT PORTFOLIO MANAGER PORTFOLIO MANAGER UBS RMA Money Market Portfolio UBS RMA Tax-Free Fund Inc. UBS RMA U.S. Government Portfolio UBS RMA California Municipal DIRECTOR Money Fund UBS Global Asset Management (US) Inc. 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 performed during the six months ended December 31, 2004, 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. We encourage you to consult your financial advisor regarding your personal investment program. 4 PERFORMANCE AND PORTFOLIO CHARACTERISTICS AT A GLANCE (UNAUDITED) UBS RMA MONEY MARKET PORTFOLIO
YIELDS AND CHARACTERISTICS 12/31/04 6/30/04 12/31/03 ------------------------------------------------------------------------------------------- Seven-Day Current Yield* 1.75% 0.61% 0.49% Seven-Day Effective Yield* 1.76 0.61 0.49 Weighted Average Maturity** 46 days 42 days 52 days Net Assets (bn) $ 11.2 $ 12.4 $ 15.4 PORTFOLIO COMPOSITION*** 12/31/04 6/30/04 12/31/03 ------------------------------------------------------------------------------------------- Commercial Paper 41.6% 41.6% 45.1% Certificates of Deposit 25.2 21.5 20.8 U.S. Government & Agency Obligation 21.3 26.5 27.4 Short-Term Corporate Obligations 12.3 8.1 2.9 Time Deposit 0.3 -- -- Money Market Funds 0.2 1.9 2.1 Bank Notes -- 0.4 2.8 Repurchase Agreements -- -- 0.5 Other Assets Less Liabilities (0.9) -- (1.6) TOTAL 100.0% 100.0% 100.0%
UBS RMA U.S. GOVERNMENT PORTFOLIO
YIELDS AND CHARACTERISTICS 12/31/04 6/30/04 12/31/03 ------------------------------------------------------------------------------------------- Seven-Day Current Yield* 1.40% 0.51% 0.49% Seven-Day Effective Yield* 1.41 0.51 0.49 Weighted Average Maturity** 45 days 48 days 54 days Net Assets (bn) $ 1.2 $ 1.3 $ 1.8 PORTFOLIO COMPOSITION*** 12/31/04 6/30/04 12/31/03 ------------------------------------------------------------------------------------------- Repurchase Agreements 66.4% 53.3% 50.9% U.S. Government Obligations 51.5 44.7 51.4 Money Market Funds 1.2 2.0 0.4 Other Assets Less Liabilities (19.1) -- (2.7) TOTAL 100.0% 100.0% 100.0%
UBS RMA TAX-FREE FUND INC.
YIELDS AND CHARACTERISTICS 12/31/04 6/30/04 12/31/03 ------------------------------------------------------------------------------------------- Seven-Day Current Yield* 1.28% 0.48% 0.55% Seven-Day Effective Yield* 1.29 0.49 0.55 Weighted Average Maturity** 17 days 32 days 34 days Net Assets (bn) $ 3.1 $ 2.9 $ 3.1 PORTFOLIO COMPOSITION*** 12/31/04 6/30/04 12/31/03 ------------------------------------------------------------------------------------------- Municipal Bonds and Notes 94.8% 97.9% 101.4% Tax-Exempt Commercial Paper 10.5 4.1 5.0 Other Assets Less Liabilities (5.3) (2.0) (6.4) TOTAL 100.0% 100.0% 100.0%
* Yields will fluctuate and may reflect fee waivers and/or expense reimbursements. Performance data quoted represents 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. *** Weightings represent percentages of net assets. 5 UBS RMA CALIFORNIA MUNICIPAL MONEY FUND
YIELDS AND CHARACTERISTICS 12/31/04 6/30/04 12/31/03 ------------------------------------------------------------------------------------------- Seven-day Current Yield* 1.24% 0.38% 0.51% Seven-Day Effective Yield* 1.25 0.38 0.51 Weighted Average Maturity** 18 days 20 days 38 days Net Assets (mm) $ 816.6 $ 739.1 $ 787.2 PORTFOLIO COMPOSITION*** 12/31/04 6/30/04 12/31/03 ------------------------------------------------------------------------------------------- Municipal Bonds and Notes 94.8% 98.9% 95.9% Tax-Exempt Commercial Paper 7.4 3.2 7.1 Other Assets Less Liabilities (2.2) (2.1) (3.0) TOTAL 100.0% 100.0% 100.0%
UBS RMA NEW YORK MUNICIPAL MONEY FUND
YIELDS AND CHARACTERISTICS 12/31/04 6/30/04 12/31/03 ------------------------------------------------------------------------------------------- Seven-Day Current Yield* 1.15% 0.33% 0.48% Seven-Day Effective Yield* 1.16 0.33 0.48 Weighted Average Maturity** 24 days 25 days 34 days Net Assets (mm) $ 557.8 $ 562.4 $ 569.0 PORTFOLIO COMPOSITION*** 12/31/04 6/30/04 12/31/03 ------------------------------------------------------------------------------------------- Municipal Bonds and Notes 90.8% 93.2% 87.8% Tax-Exempt Commercial Paper 13.3 8.9 13.4 Other Assets Less Liabilities (4.1) (2.1) (1.2) TOTAL 100.0% 100.0% 100.0%
UBS RMA NEW JERSEY MUNICIPAL MONEY FUND
YIELDS AND CHARACTERISTICS 12/31/04 6/30/04 12/31/03 ------------------------------------------------------------------------------------------- Seven-Day Current Yield* 1.11% 0.22% 0.30% Seven-Day Effective Yield* 1.12 0.22 0.31 Weighted Average Maturity** 18 days 34 days 31 days Net Assets (mm) $ 135.2 $ 137.4 $ 145.1 PORTFOLIO COMPOSITION*** 12/31/04 6/30/04 12/31/03 ------------------------------------------------------------------------------------------- Municipal Bonds and Notes 94.8% 93.6% 92.7% Tax-Exempt Commercial Paper 4.9 6.0 6.9 Other Assets Less Liabilities 0.3 0.4 0.4 TOTAL 100.0% 100.0% 100.0%
* Yields will fluctuate and may reflect fee waivers and/or expense reimbursements. Performance data quoted represents 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. *** Weightings represent percentages of net assets. 6 EXPENSE EXAMPLE (UNAUDITED) As a shareholder of the Funds, you incur ongoing costs, including management fees; service fees (12b-1 fees) (except UBS RMA Money Market Portfolio); and other Fund expenses. These examples are intended to help you understand your ongoing costs (in dollars) of investing in each Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The examples below are based on an investment of $1,000 invested at the beginning of the period and held for the entire period, July 1, 2004 to December 31, 2004. ACTUAL EXPENSES The first line of the table below for each Fund provides information about its actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over a period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line for each respective Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES The second line of the table below for each Fund provides information about hypothetical account values and hypothetical expenses based on that Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in a Fund and other funds. To do so, compare these 5% hypothetical examples with the 5% hypothetical examples that appear in the shareholder reports of other funds. Please note that the expenses shown in the table are meant to highlight your ongoing costs. Therefore, the second line of the table for each Fund is useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds if those funds impose transactional costs--for example, sales charges (loads), redemption fees, or exchange fees. In addition, if those transactional costs were included, your costs for those other funds would have been higher. The example does not reflect Resource Management Account(R) (RMA(R)) Program or Business Services Account BSA(R) Program fees as these are external to the Funds and relate to those programs. 7 UBS RMA MONEY MARKET PORTFOLIO
BEGINNING ENDING EXPENSES PAID ACCOUNT VALUE ACCOUNT VALUE DURING PERIOD* JULY 1, 2004 DECEMBER 31, 2004 7/1/04 - 12/31/04 ------------------------------------------------------------------------------------------------- Actual $ 1,000.00 $ 1,005.80 $ 2.98 Hypothetical (5% annual return before expenses) 1,000.00 1,022.23 3.01
* Expenses are equal to the Fund's annualized net expense ratio of 0.59%, multiplied by the average account value over the period, multiplied by 184 divided by 365 (to reflect the one-half year period). UBS RMA U.S. GOVERNMENT PORTFOLIO
BEGINNING ENDING EXPENSES PAID ACCOUNT VALUE ACCOUNT VALUE DURING PERIOD* JULY 1, 2004 DECEMBER 31, 2004 7/1/04 - 12/31/04 ------------------------------------------------------------------------------------------------- Actual $ 1,000.00 $ 1,005.10 $ 3.08 Hypothetical (5% annual return before expenses) 1,000.00 1,022.13 3.11
* Expenses are equal to the Fund's annualized expense ratio of 0.61%, multiplied by the average account value over the period, multiplied by 184 divided by 365 (to reflect the one-half year period). UBS RMA TAX-FREE FUND INC.
BEGINNING ENDING EXPENSES PAID ACCOUNT VALUE ACCOUNT VALUE DURING PERIOD* JULY 1, 2004 DECEMBER 31, 2004 7/1/04 - 12/31/04 ------------------------------------------------------------------------------------------------- Actual $ 1,000.00 $ 1,004.20 $ 2.98 Hypothetical (5% annual return before expenses) 1,000.00 1,022.23 3.01
* Expenses are equal to the Fund's annualized expense ratio of 0.59%, multiplied by the average account value over the period, multiplied by 184 divided by 365 (to reflect the one-half year period). UBS RMA CALIFORNIA MUNICIPAL MONEY FUND
BEGINNING ENDING EXPENSES PAID ACCOUNT VALUE ACCOUNT VALUE DURING PERIOD* JULY 1, 2004 DECEMBER 31, 2004 7/1/04 - 12/31/04 ------------------------------------------------------------------------------------------------- Actual $ 1,000.00 $ 1,003.90 $ 3.23 Hypothetical (5% annual return before expenses) 1,000.00 1,021.98 3.26
* Expenses are equal to the Fund's annualized expense ratio of 0.64%, multiplied by the average account value over the period, multiplied by 184 divided by 365 (to reflect the one-half year period). 8 UBS RMA NEW YORK MUNICIPAL MONEY FUND
BEGINNING ENDING EXPENSES PAID ACCOUNT VALUE ACCOUNT VALUE DURING PERIOD* JULY 1, 2004 DECEMBER 31, 2004 7/1/04 - 12/31/04 ------------------------------------------------------------------------------------------------- Actual $ 1,000.00 $ 1,003.60 $ 3.33 Hypothetical (5% annual return before expenses) 1,000.00 1,021.88 3.36
* Expenses are equal to the Fund's annualized expense ratio of 0.66%, multiplied by the average account value over the period, multiplied by 184 divided by 365 (to reflect the one-half year period). UBS RMA NEW JERSEY MUNICIPAL MONEY FUND
BEGINNING ENDING EXPENSES PAID ACCOUNT VALUE ACCOUNT VALUE DURING PERIOD* JULY 1, 2004 DECEMBER 31, 2004 7/1/04 - 12/31/04 ------------------------------------------------------------------------------------------------- Actual $ 1,000.00 $ 1,003.50 $ 3.84 Hypothetical (5% annual return before expenses) 1,000.00 1,021.37 3.87
* Expenses are equal to the Fund's annualized expense ratio of 0.76%, multiplied by the average account value over the period, multiplied by 184 divided by 365 (to reflect the one-half year period). 9 UBS RMA MONEY MARKET PORTFOLIO STATEMENT OF NET ASSETS -- DECEMBER 31, 2004 (UNAUDITED)
PRINCIPAL AMOUNT MATURITY INTEREST (000) DATES RATES VALUE ------------------------------------------------------------------------------------------------------------------------------- U.S. GOVERNMENT AGENCY OBLIGATIONS--21.30% $ 300,000 Federal Farm Credit Bank 01/03/05 2.270 to 2.300%* $ 300,007,882 316,000 Federal Home Loan Bank 01/04/05 to 1.910 to 01/05/05 1.913* 315,868,771 557,250 Federal Home Loan Bank 04/22/05 to 1.305 to 10/21/05 2.250 557,056,626 140,500 Federal Home Loan Mortgage Corp. 03/01/05 to 1.290 to 03/23/05 1.420 140,316,646 193,042 Federal Home Loan Mortgage Corp. 03/15/05 to 2.380 to 03/29/05 2.460@ 191,944,443 275,000 Federal National Mortgage Association 01/03/05 to 2.333 to 01/28/05 2.350* 274,999,474 140,000 Federal National Mortgage Association 02/04/05 1.140@ 139,849,267 462,200 Federal National Mortgage 03/29/05 to 1.400 to Association(1) 09/30/05 2.300 462,200,000 ------------------------------------------------------------------------------------------------------------------------------- Total U.S. Government Agency Obligations (cost--$2,382,243,109) 2,382,243,109 ------------------------------------------------------------------------------------------------------------------------------- TIME DEPOSIT--0.31% BANKING-NON-U.S.--0.31% 34,587 Societe Generale, Grand Cayman Islands (cost--$34,587,000) 01/03/05 2.156 34,587,000 ------------------------------------------------------------------------------------------------------------------------------- CERTIFICATES OF DEPOSIT--25.19% NON-U.S.--15.84% 50,000 BNP Paribas 01/18/05 1.785* 49,994,923 220,500 BNP Paribas 03/23/05 2.460 220,500,000 200,000 Canadian Imperial Bank of Commerce 03/16/05 2.410 200,000,000 110,000 Credit Suisse First Boston NY 01/14/05 2.340 110,000,000 100,000 ForeningsSparbanken AB 01/10/05 2.130 100,000,000 243,000 Fortis Bank NV 01/03/05 to 2.210 to 06/20/05 2.630 243,000,000 95,000 HBOS Treasury Services PLC 02/09/05 2.190 95,000,000 89,500 Lloyds TSB Bank PLC 02/02/05 2.280 89,500,000 200,000 Natexis Banque Populaires 03/14/05 2.430 200,000,000 92,000 Nordea Bank Finland 02/07/05 2.300 92,000,000 175,000 Societe Generale NY 01/05/05 to 2.259 to 01/10/05 2.300* 174,984,204 196,500 UniCredito Italiano SpA 03/24/05 2.465* 196,471,129 ------------------------------------------------------------------------------------------------------------------------------- 1,771,450,256 -------------------------------------------------------------------------------------------------------------------------------
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PRINCIPAL AMOUNT MATURITY INTEREST (000) DATES RATES VALUE ------------------------------------------------------------------------------------------------------------------------------- CERTIFICATES OF DEPOSIT--(CONCLUDED) U.S.--9.35% $ 280,000 American Express Centurion Bank 01/05/05 to 2.250 to 01/24/05 2.360% $ 280,000,000 115,000 Discover Bank Delaware 01/13/05 2.340 115,000,000 205,000 First Tennessee Bank N.A. (Memphis) 01/04/05 to 2.080 to 01/11/05 2.290 205,000,000 80,000 HSBC (USA), Inc. 04/22/05 1.555 80,000,000 265,500 Washington Mutual Bank 01/13/05 to 2.310 to 01/19/05 2.340 265,500,000 100,000 Wells Fargo Bank N.A. 01/27/05 2.330 100,000,000 1,045,500,000 ------------------------------------------------------------------------------------------------------------------------------- Total Certificates of Deposit (cost--$2,816,950,256) 2,816,950,256 ------------------------------------------------------------------------------------------------------------------------------- COMMERCIAL PAPER@--40.66% ASSET BACKED-AUTO & TRUCK--2.50% 279,500 New Center Asset Trust 01/12/05 to 2.180 to 01/13/05 2.285 279,293,517 ------------------------------------------------------------------------------------------------------------------------------- ASSET BACKED-BANKING--1.21% 136,000 Atlantis One Funding 02/09/05 to 2.200 to 03/07/05 2.390 135,530,971 ------------------------------------------------------------------------------------------------------------------------------- ASSET BACKED-MISCELLANEOUS--16.71% 335,000 Amsterdam Funding Corp. 01/03/05 to 2.180 to 01/31/05 2.320 334,765,457 174,141 Barton Capital Corp. 01/11/05 to 2.280 to 01/13/05 2.300 174,025,464 160,000 Falcon Asset Securitization Corp. 01/14/05 to 2.330 to 01/27/05 2.340 159,831,433 125,994 Giro Multi-Funding Corp. 01/18/05 2.340 125,854,777 226,917 Kitty Hawk Funding Corp. 01/18/05 2.230 to 2.340 226,669,789 95,335 Old Line Funding Corp. 01/07/05 to 2.180 to 01/10/05 2.250 95,286,460 82,201 Preferred Receivables Funding Corp. 01/18/05 2.285 82,112,303 237,689 Ranger Funding Co. LLC 01/20/05 to 2.310 to 01/31/05 2.360 237,323,521 188,683 Thunderbay Funding 01/07/05 to 2.200 to 01/14/05 2.285 188,563,545 58,500 Variable Funding Capital Corp. 01/12/05 2.290 58,459,066
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PRINCIPAL AMOUNT MATURITY INTEREST (000) DATES RATES VALUE ------------------------------------------------------------------------------------------------------------------------------- COMMERCIAL PAPER@--(CONCLUDED) ASSET BACKED-MISCELLANEOUS--(CONCLUDED) $ 185,611 Yorktown Capital LLC 01/14/05 to 2.350 to 02/14/05 2.380% $ 185,296,340 ------------------------------------------------------------------------------------------------------------------------------- 1,868,188,155 ------------------------------------------------------------------------------------------------------------------------------- ASSET BACKED-SECURITIES--7.48% 124,500 Beta Finance, Inc. 01/07/05 to 2.030 to 01/10/05 2.190 124,445,327 74,000 Dorada Finance, Inc.** 02/01/05 2.140 73,863,634 199,500 Galaxy Funding, Inc. 01/18/05 to 2.070 to 03/28/05 2.480 198,853,221 176,626 Giro Funding U.S. Corp. 01/03/05 to 2.230 to 01/10/05 2.280 176,563,866 95,000 Grampian Funding LLC 01/24/05 2.340 94,857,975 168,127 Scaldis Capital LLC 01/18/05 to 2.340 to 02/15/05 2.400 167,751,720 ------------------------------------------------------------------------------------------------------------------------------- 836,335,743 ------------------------------------------------------------------------------------------------------------------------------- BANKING-NON-U.S.--1.67% 28,000 Banque et Caisse d'Epargne de L'Etat 01/06/05 2.270 27,991,172 159,188 Nationwide Building Society 02/01/05 to 2.130 to 02/07/05 2.310 158,860,923 ------------------------------------------------------------------------------------------------------------------------------- 186,852,095 ------------------------------------------------------------------------------------------------------------------------------- BANKING-U.S.--7.80% 161,000 CBA (Delaware) Finance, Inc. 01/12/05 to 2.260 to 03/31/05 2.450 160,454,143 67,800 Danske Corp. 01/14/05 2.320 67,743,199 190,000 Dexia Delaware LLC 01/18/05 2.325 189,791,396 20,000 Fortis Funding LLC 01/04/05 2.380 19,996,033 258,500 ING (US) Funding LLC 01/18/05 to 2.180 to 03/21/05 2.440 257,934,370 145,000 Rabobank USA Financial Corp. 01/03/05 2.170 144,982,519 31,000 Stadshypotek Delaware, Inc. 01/19/05 2.320 30,964,040 ------------------------------------------------------------------------------------------------------------------------------- 871,865,700 ------------------------------------------------------------------------------------------------------------------------------- BROKERAGE--1.96% 219,500 Bear Stearns Cos., Inc. 01/24/05 2.290 219,178,859 ------------------------------------------------------------------------------------------------------------------------------- FINANCE-NONCAPTIVE DIVERSIFIED--0.88% 100,000 General Electric Capital Corp. 05/11/05 2.380 99,140,556 ------------------------------------------------------------------------------------------------------------------------------- UTILITIES-OTHER--0.45% 50,000 RWE AG 01/14/05 2.330 49,957,931 ------------------------------------------------------------------------------------------------------------------------------- Total Commercial Paper (cost--$4,546,343,527) 4,546,343,527 -------------------------------------------------------------------------------------------------------------------------------
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PRINCIPAL AMOUNT MATURITY INTEREST (000) DATES RATES VALUE ------------------------------------------------------------------------------------------------------------------------------- SHORT-TERM CORPORATE OBLIGATIONS--12.30% ASSET BACKED-SECURITIES--4.80% $ 123,000 Dorada Finance, Inc.** 01/14/05 2.353%* $ 122,999,344 223,900 K2 (USA) LLC** 01/13/05 to 2.015 to 01/18/05 2.403* 223,899,432 190,000 Links Finance LLC** 02/22/05 to 1.340 to 11/14/05 2.680 189,987,194 ------------------------------------------------------------------------------------------------------------------------------- 536,885,970 ------------------------------------------------------------------------------------------------------------------------------- BANKING-NON-U.S.--1.82% 30,000 Bayerische Landesbank Girozentrale 01/31/05 2.368* 29,998,549 173,000 HBOS Treasury Services PLC** 01/04/05 2.270* 173,000,000 ------------------------------------------------------------------------------------------------------------------------------- 202,998,549 ------------------------------------------------------------------------------------------------------------------------------- BANKING-U.S.--2.19% 100,000 Fifth Third Bank 01/03/05 2.303* 100,006,822 145,000 Wells Fargo & Co. 01/14/05 2.468* 145,000,000 ------------------------------------------------------------------------------------------------------------------------------- 245,006,822 ------------------------------------------------------------------------------------------------------------------------------- BROKERAGE--1.34% 150,000 Morgan Stanley 01/03/05 2.365* 150,000,000 ------------------------------------------------------------------------------------------------------------------------------- FINANCE-NONCAPTIVE CONSUMER--1.79% 200,000 Household Finance Corp. 01/05/05 to 2.291 to 01/25/05 2.378* 200,000,000 ------------------------------------------------------------------------------------------------------------------------------- FINANCE-NONCAPTIVE DIVERSIFIED--0.36% 40,000 General Electric Capital Corp. 01/10/05 2.460* 40,000,000 ------------------------------------------------------------------------------------------------------------------------------- Total Short-Term Corporate Obligations (cost--$1,374,891,341) 1,374,891,341 ------------------------------------------------------------------------------------------------------------------------------- NUMBER OF SHARES (000) --------------- MONEY MARKET FUND+--0.19% 20,699 AIM Liquid Assets Portfolio (cost--$20,698,784) 2.121 20,698,784 -------------------------------------------------------------------------------------------------------------------------------
13
PRINCIPAL AMOUNT MATURITY INTEREST (000) DATES RATES VALUE ------------------------------------------------------------------------------------------------------------------------------- INVESTMENTS OF CASH COLLATERAL FROM SECURITIES LOANED--0.91% COMMERCIAL PAPER@--0.89% ASSET BACKED-MISCELLANEOUS--0.62% $ 70,000 Yorktown Capital LLC 01/14/05 2.330% $ 69,864,083 ------------------------------------------------------------------------------------------------------------------------------- BANKING-U.S.--0.27% 30,000 Danske Corp. 01/14/05 2.320 29,942,000 ------------------------------------------------------------------------------------------------------------------------------- Total Commercial Paper (cost--$99,806,083) 99,806,083 ------------------------------------------------------------------------------------------------------------------------------- NUMBER OF SHARES (000) --------------- MONEY MARKET FUND+--0.02% 2,319 Barclays Prime Money Market Fund (cost--$2,318,917) 2.244 2,318,917 ------------------------------------------------------------------------------------------------------------------------------- Total Investments of Cash Collateral from Securities Loaned (cost--$102,125,000) 102,125,000 ------------------------------------------------------------------------------------------------------------------------------- Total Investments (cost--$11,277,839,017 which approximates cost for federal income tax purposes)(2)--100.86% 11,277,839,017 ------------------------------------------------------------------------------------------------------------------------------- Liabilities in excess of other assets--(0.86)% (95,994,730) ------------------------------------------------------------------------------------------------------------------------------- Net Assets (applicable to 11,183,427,048 shares of common stock outstanding equivalent to $1.00 per share)--100.00% $ 11,181,844,287 -------------------------------------------------------------------------------------------------------------------------------
* Variable rate securities--maturity dates reflect earlier of reset dates or stated maturity dates. The interest rates shown are the current rates as of December 31, 2004, and reset periodically. ** Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities, which represent 7.01% of net assets as of December 31, 2004, are considered liquid and may be resold in transactions exempt from registration, normally to qualified institutional buyers. @ Interest rates shown are the discount rates at date of purchase. + Interest rates shown reflect yield at December 31, 2004. (1) Security, or portion thereof, was on loan at December 31, 2004. (2) Includes $99,750,000 of investments in securities on loan, at market value. 14 ISSUER BREAKDOWN BY COUNTRY
PERCENTAGE OF PORTFOLIO ASSETS ----------------------------------------------------------------------- United States 80.5% France 5.8 United Kingdom 4.6 Belgium 2.2 Canada 1.8 Italy 1.7 Switzerland 1.0 Sweden 0.9 Finland 0.7 Germany 0.3 Grand Cayman Islands 0.3 Luxembourg 0.2 ----------------------------------------------------------------------- Total 100.0% =======================================================================
Weighted average maturity -- 46 days See accompanying notes to financial statements 15 UBS RMA U.S. GOVERNMENT PORTFOLIO STATEMENT OF NET ASSETS -- DECEMBER 31, 2004 (UNAUDITED)
PRINCIPAL AMOUNT MATURITY INTEREST (000) DATES RATES VALUE ------------------------------------------------------------------------------------------------------------------------------- U.S. GOVERNMENT OBLIGATIONS--51.51% $ 460,000 U.S. Treasury Bills(1) 01/18/05 to 1.745 to 06/23/05 2.467%@ $ 458,099,163 110,000 U.S. Treasury Notes(1) 01/31/05 to 1.625 to 11/30/05 1.875 109,799,872 50,000 U.S. Treasury Notes(1) 03/31/05 1.625 50,061,351 ------------------------------------------------------------------------------------------------------------------------------- Total U.S. Government Obligations (cost--$617,960,386) 617,960,386 ------------------------------------------------------------------------------------------------------------------------------- REPURCHASE AGREEMENTS--52.38% 175,000 Repurchase Agreement dated 12/31/04 with Bear Stearns & Co., collateralized by $22,600,000 U.S. Treasury Notes, 3.000% due 12/31/06 and $121,739,000 U.S. Treasury TIPS, 3.375% to 3.875% due 01/15/07 to 01/15/09; (value--$180,704,037); proceeds: $175,021,146 01/03/05 1.450 175,000,000 28,080 Repurchase Agreement dated 12/31/04 with Deutsche Bank Securities, Inc., collateralized by $44,105,240 U.S. Treasury Notes, zero coupon due 08/15/05 to 02/15/18; (value--$28,641,600); proceeds: $28,083,744 01/03/05 1.600 28,080,000 275,000 Repurchase Agreement dated 12/31/04 with Goldman Sachs Group, Inc., collateralized by $275,000,766 U.S. Treasury Notes, zero coupon to 3.500% due 12/15/09 to 11/15/16; (value--$280,500,782); proceeds: $275,033,917 01/03/05 1.480 275,000,000 150,000 Repurchase Agreement dated 12/31/04 with Morgan Stanley & Co., collateralized by $150,102,548 U.S. Treasury TIPS, 4.250% due 01/15/10; (value--$153,104,599); proceeds: $150,018,750 01/03/05 1.500 150,000,000
16
PRINCIPAL AMOUNT MATURITY INTEREST (000) DATES RATES VALUE ------------------------------------------------------------------------------------------------------------------------------- REPURCHASE AGREEMENTS--(CONCLUDED) $ 357 Repurchase Agreement dated 12/31/04 with State Street Bank & Trust Co., collateralized by $1,541 U.S. Treasury Bonds, 9.000% due 11/15/18 and $362,840 U.S. Treasury Notes, 3.000% due 12/31/06; (value--$364,179); proceeds: $357,045 01/03/05 1.500% $ 357,000 ------------------------------------------------------------------------------------------------------------------------------- Total Repurchase Agreements (cost--$628,437,000) 628,437,000 ------------------------------------------------------------------------------------------------------------------------------- NUMBER OF SHARES (000) --------------- MONEY MARKET FUND+--1.13% 13,511 AIM Short-Term Investment Trust Treasury (cost--$13,511,213) 1.740 13,511,213 PRINCIPAL AMOUNT (000) --------------- INVESTMENTS OF CASH COLLATERAL FROM SECURITIES LOANED--13.99% REPURCHASE AGREEMENT--13.97% $ 167,639 Repurchase Agreement dated 12/31/04 with Morgan Stanley & Co., collateralized by $167,754,090 U.S. Treasury TIPS, 4.250% due 01/15/10; (value--$171,109,172); proceeds: $167,660,438 (cost--$167,639,483) 01/03/05 1.500 167,639,483
17
NUMBER OF SHARES INTEREST (000) RATE VALUE ------------------------------------------------------------------------------------------------------------------------------- INVESTMENTS OF CASH COLLATERAL FROM SECURITIES LOANED--(CONCLUDED) MONEY MARKET FUND+--0.02% 174 AIM Treasury Portfolio (cost--$173,556) 1.740% $ 173,556 ------------------------------------------------------------------------------------------------------------------------------- Total Investments of Cash Collateral from Securities Loaned (cost--$167,813,039) 167,813,039 ------------------------------------------------------------------------------------------------------------------------------- Total Investments (cost--$1,427,721,638 which approximates cost for federal income tax purposes)(2)--119.01% 1,427,721,638 ------------------------------------------------------------------------------------------------------------------------------- Liabilities in excess of other assets--(19.01)% (228,033,688) ------------------------------------------------------------------------------------------------------------------------------- Net Assets (applicable to 1,200,267,329 shares of common stock outstanding equivalent to $1.00 per share)--100.00% $ 1,199,687,950 -------------------------------------------------------------------------------------------------------------------------------
@ Interest rates shown are the discount rates at date of purchase. + Interest rates shown reflect yield at December 31, 2004. (1) Securities, or portions thereof, were on loan at December 31, 2004. (2) Includes $498,380,287 of investments in securities on loan, at market value. TIPS Treasury Inflation Indexed Securities Weighted average maturity -- 45 days See accompanying notes to financial statements 18 UBS RMA TAX-FREE FUND INC. STATEMENT OF NET ASSETS -- DECEMBER 31, 2004 (UNAUDITED)
PRINCIPAL AMOUNT MATURITY INTEREST (000) DATES RATES VALUE ------------------------------------------------------------------------------------------------------------------------------- MUNICIPAL BONDS AND NOTES--94.79% ALABAMA--1.97% $ 13,675 Birmingham Refunding, Series A (A) 2.000% $ 13,675,000 11,265 Mobile Industrial Development Board, Dock and Wharf Revenue Refunding (Holnam, Inc. Project), Series A (A) 1.960 11,265,000 8,700 Mobile Industrial Development Board, Dock and Wharf Revenue Refunding (Holnam, Inc. Project), Series B (A) 1.980 8,700,000 12,700 Port City Medical Clinic Board Revenue (Infirmary Health Systems), Series A (A) 1.960 12,700,000 15,075 University of Alabama Revenue (University Hospital), Series C (A) 1.940 15,075,000 ------------------------------------------------------------------------------------------------------------------------------- 61,415,000 ------------------------------------------------------------------------------------------------------------------------------- ALASKA--0.54% 5,600 Valdez Marine Terminal Revenue Refunding (BP Pipelines, Inc. Project), Series B (A) 2.180 5,600,000 11,200 Valdez Marine Terminal Revenue Refunding (BP Pipelines, Inc. Project), Series C (A) 2.180 11,200,000 ------------------------------------------------------------------------------------------------------------------------------- 16,800,000 ------------------------------------------------------------------------------------------------------------------------------- ARIZONA--2.00% 35,000 Apache County Industrial Development Authority (Tucson Electric Power Co.) (A) 2.000 35,000,000 11,200 Apache County Industrial Development Authority (Tucson Electric Power Co.), Series B (A) 2.020 11,200,000 8,000 Apache County Industrial Development Authority (Tucson Electric Power Co.-Springerville Project) (A) 2.000 8,000,000 8,200 Pima County Industrial Development Authority (Tucson Electric Power Co.-Irvington), Series A (A) 2.020 8,200,000 ------------------------------------------------------------------------------------------------------------------------------- 62,400,000 -------------------------------------------------------------------------------------------------------------------------------
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PRINCIPAL AMOUNT MATURITY INTEREST (000) DATES RATES VALUE ------------------------------------------------------------------------------------------------------------------------------- MUNICIPAL BONDS AND NOTES--(CONTINUED) CALIFORNIA--1.50% $ 5,800 California State (Daily Kindergarten University), Series A-1 (A) 2.160% $ 5,800,000 15,000 Los Angeles Regional Airports Improvement Corp. Lease Revenue (L.A. International), Series 2 (A) 2.220 15,000,000 26,000 Metropolitan Water District Waterworks Revenue Refunding, Series A-2 (A) 1.970 26,000,000 ------------------------------------------------------------------------------------------------------------------------------- 46,800,000 ------------------------------------------------------------------------------------------------------------------------------- COLORADO--2.32% 9,000 Colorado Housing and Finance Authority, Housing Revenue (Multi-Family Class III), Series A-1 (A) 2.000 9,000,000 25,000 Denver City & County Certificates of Participation Refunding (Wellington E Web-C1) (A) 1.970 25,000,000 8,420 East 470 Public Highway Authority Co. Revenue, Vehicle Registration Fee (A) 1.980 8,420,000 30,000 University of Colorado Hospital Authority Revenue, Series A (A) 1.970 30,000,000 ------------------------------------------------------------------------------------------------------------------------------- 72,420,000 ------------------------------------------------------------------------------------------------------------------------------- CONNECTICUT--0.56% 17,500 Connecticut Health & Educational Facilities Authority Revenue (Sacred Heart University), Series F (A) 1.970 17,500,000 ------------------------------------------------------------------------------------------------------------------------------- DELAWARE--0.80% 25,000 Delaware Economic Development Authority Revenue (Hospital Billing), Series C (A) 1.990 25,000,000 ------------------------------------------------------------------------------------------------------------------------------- DISTRICT OF COLUMBIA--2.73% 13,065 District of Columbia (Multi-Modal), Series A (A) 2.000 13,065,000 5,000 District of Columbia (Multi-Modal), Series B (A) 2.000 5,000,000 5,655 District of Columbia Refunding, Series D (A) 1.980 5,655,000
20
PRINCIPAL AMOUNT MATURITY INTEREST (000) DATES RATES VALUE ------------------------------------------------------------------------------------------------------------------------------- MUNICIPAL BONDS AND NOTES--(CONTINUED) DISTRICT OF COLUMBIA--(CONCLUDED) $ 10,000 District of Columbia Revenue (Foundation for Jewish Campus Life) (A) 2.000% $ 10,000,000 25,000 District of Columbia Revenue (George Washington University), Series B (A) 2.000 25,000,000 17,255 District of Columbia Revenue (Pooled Loan Program), Series A (A) 2.000 17,255,000 9,100 District of Columbia, Series D-1 (A) 1.960 9,100,000 ------------------------------------------------------------------------------------------------------------------------------- 85,075,000 ------------------------------------------------------------------------------------------------------------------------------- FLORIDA--4.11% 5,890 Dade County Industrial Development Authority (Dolphins Stadium Project), Series B (A) 1.980 5,890,000 6,980 Florida Housing Finance Agency, Multi-Family Housing Revenue (Housing Lakeside), Series B (A) 2.040 6,980,000 6,300 Florida Housing Finance Agency (Parrots Landing Project), Series A (A) 1.900 6,300,000 2,500 Highlands County Florida Health Facilities Authority Revenue (Adventist Health Systems), Series B (A) 2.000 2,500,000 8,000 Jacksonville Health Facilities Authority Hospital Revenue, Series A (A) 2.220 8,000,000 8,485 Lee County Housing Finance Authority, Multi-Family Housing Revenue Refunding (Forestwood Apartments Project), Series A (A) 1.970 8,485,000 12,900 Nassau County Pollution Control Revenue (Rayonier Project) (A) 1.980 12,900,000 5,700 Palm Beach County Housing Finance Authority Revenue Refunding (Cotton Bay Apartments Project), Series D (A) 1.880 5,700,000 6,400 Palm Beach County Housing Finance Authority Revenue Refunding (Mahogony Bay Apartments Project), Series C (A) 1.880 6,400,000 45,965 Sunshine State Governmental Financing 1.940 to Commission Revenue (A) 2.000 45,965,000
21
PRINCIPAL AMOUNT MATURITY INTEREST (000) DATES RATES VALUE ------------------------------------------------------------------------------------------------------------------------------- MUNICIPAL BONDS AND NOTES--(CONTINUED) FLORIDA--(CONCLUDED) $ 4,620 University Athletic Association, Inc. Capital Improvement Revenue (University Florida Stadium Project) (A) 2.250% $ 4,620,000 14,500 University of South Florida Foundation, Inc. (A) 1.920 14,500,000 ------------------------------------------------------------------------------------------------------------------------------- 128,240,000 ------------------------------------------------------------------------------------------------------------------------------- GEORGIA--5.01% 4,790 Athens-Clarke County Unified Government Development Authority Revenue (UGA Real Estate Funding Project) (A) 2.000 4,790,000 6,000 Atlanta Airport General Revenue Refunding, Series C-3 (A) 1.990 6,000,000 26,965 Burke County Development Authority Pollution Control Revenue (Oglethorpe 1.990 to Power Corp.), Series A (A) 2.000 26,965,000 14,300 De Kalb County Housing Authority, Multi-Family Housing Revenue Refunding (Post Walk Project) (A) 2.000 14,300,000 15,935 De Kalb County Housing Authority, Multi-Family Housing Revenue Refunding (Wood Terrace Apartments Project) (A) 2.010 15,935,000 5,030 De Kalb Private Hospital Authority Revenue Anticipation Certificates (ESR Childrens Health), Series B (A) 1.980 5,030,000 27,600 Fulton County Housing Authority, Multi-Family Housing Revenue Refunding (Spring Creek Crossing) (A) 1.990 27,600,000 10,400 Gwinnett County Housing Authority, Multi-Family Housing Revenue (Greens Apartments Project) (A) 2.000 10,400,000 6,000 Gwinnett County Housing Authority, Multi-Family Housing Revenue (Post Chase Project) (A) 2.000 6,000,000 13,150 Gwinnett County Housing Authority, Multi-Family Housing Revenue (Post Court Project) (A) 2.000 13,150,000
22
PRINCIPAL AMOUNT MATURITY INTEREST (000) DATES RATES VALUE ------------------------------------------------------------------------------------------------------------------------------- MUNICIPAL BONDS AND NOTES--(CONTINUED) GEORGIA--(CONCLUDED) $ 16,000 Municipal Electric Authority of Georgia (General Resolution Projects), Series C (A) 1.960% $ 16,000,000 10,000 Municipal Electric Authority of Georgia (Project One Subordination), Series D (A) 1.960 10,000,000 ------------------------------------------------------------------------------------------------------------------------------- 156,170,000 ------------------------------------------------------------------------------------------------------------------------------- IDAHO--0.25% 7,930 Power County Pollution Control Revenue (FMC Corp. Project) (A) 2.150 7,930,000 ------------------------------------------------------------------------------------------------------------------------------- ILLINOIS--10.59% 5,400 Chicago Board of Education, Series C-1 (A) 2.170 5,400,000 20,000 Chicago Metropolitan Water Reclamation District, Capital Improvement, Series E (A) 1.970 20,000,000 31,800 Chicago Metropolitan Water Reclamation District Refunding, Series A (A) 1.970 31,800,000 26,500 Chicago Metropolitan Water Reclamation District Refunding, Series B (A) 1.970 26,500,000 22,745 Chicago (Neighborhoods Alive), Series 21-B (A) 1.970 22,745,000 53,050 Chicago O'Hare International Airport Revenue, Series C (A) 2.000 53,050,000 16,020 Illinois Development Finance Authority, Multi-Family Housing Revenue Refunding (Orleans Illinois Project) (A) 2.000 16,020,000 11,400 Illinois Development Finance Authority Revenue (Chicago Symphony Orchestra) (A) 1.970 11,400,000 7,800 Illinois Development Finance Authority Revenue (Evanston Northwestern), Series A (A) 2.000 7,800,000 14,100 Illinois Development Finance Authority Revenue (Francis W. Parker School Project) (A) 1.980 14,100,000
23
PRINCIPAL AMOUNT MATURITY INTEREST (000) DATES RATES VALUE ------------------------------------------------------------------------------------------------------------------------------- MUNICIPAL BONDS AND NOTES--(CONTINUED) ILLINOIS--(CONCLUDED) $ 24,800 Illinois Development Finance Authority Revenue (St. Vincent De Paul Project), Series A (A) 1.960% $ 24,800,000 10,000 Illinois Educational Facilities Authority Revenue (ACI/Cultural Pooled Financing) (A) 2.000 10,000,000 8,000 Illinois Health Facilities Authority Revenue (Pooled Loan), Series C (A) 2.000 8,000,000 27,815 Illinois Health Facilities Authority Revenue Refunding (Advocate Health Care), Series B (A) 2.020 27,815,000 50,900 Illinois Toll & Highway Authority (A) 1.960 50,900,000 ------------------------------------------------------------------------------------------------------------------------------- 330,330,000 ------------------------------------------------------------------------------------------------------------------------------- INDIANA--4.48% 8,200 Indiana Educational Facilities Authority Revenue (University of Notre Dame) (A) 1.920 8,200,000 300 Indiana Health Facility Financing Authority Hospital Revenue (Aces Deaconess Hospital, Inc.) (A) 1.980 300,000 13,815 Indiana Health Facility Financing Authority Hospital Revenue (Aces Rehabilitation Hospital) (A) 1.980 13,815,000 8,000 Indiana Health Facility Financing Authority Revenue (Ascension Health Credit Group), Series A-2 (A) 1.730 8,000,000 82,600 Indiana Health Facility Financing Authority Revenue (Ascension Health Credit Group), Series B (A) 1.950 82,600,000 10,000 Indianapolis Local Public Improvement Bond Bank Notes, Series E 01/06/05 2.000 10,000,912 7,165 Indianapolis Local Public Improvement Bond Bank Notes, Series F 01/06/05 2.000 7,165,653 9,640 Indianapolis Local Public Improvement Bond Bank Notes, Series F-2 (A) 1.960 9,640,000 ------------------------------------------------------------------------------------------------------------------------------- 139,721,565 ------------------------------------------------------------------------------------------------------------------------------- IOWA--1.23% 20,300 Iowa Finance Authority Revenue (Wheaton Franciscan), Series B (A) 1.960 20,300,000
24
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) 2.030% $ 18,100,000 ------------------------------------------------------------------------------------------------------------------------------- 38,400,000 ------------------------------------------------------------------------------------------------------------------------------- KENTUCKY--0.22% 6,710 Lexington-Fayette Urban County Government Educational Facilities Revenue (Sayre School) (A) 2.030 6,710,000 LOUISIANA--0.97% 14,090 Louisiana Public Facilities Authority Revenue (College and University Equipment and Capital), Series A (A) 2.000 14,090,000 16,100 South Louisiana Port Commission Marine Terminal Facilities Revenue (Occidental Petroleum) (A) 2.020 16,100,000 ------------------------------------------------------------------------------------------------------------------------------- 30,190,000 ------------------------------------------------------------------------------------------------------------------------------- MARYLAND--3.84% 13,770 Baltimore County Revenue (Oak Crest Village, Inc. Project), Series A (A) 1.990 13,770,000 18,150 Baltimore Industrial Development Authority (Baltimore Capital Acquisition) (A) 1.980 18,150,000 28,900 Maryland Health & Higher Educational Facilities Authority (Pooled Loan Program), Series A (A) 1.960 28,900,000 43,575 Maryland Health & Higher Educational Facilities Authority (Pooled Loan Program), Series B (A) 1.980 43,575,000 15,565 Maryland Health & Higher Educational Facilities Authority (Pooled Loan Program), Series D (A) 1.980 15,565,000 ------------------------------------------------------------------------------------------------------------------------------- 119,960,000 ------------------------------------------------------------------------------------------------------------------------------- MASSACHUSETTS--9.12% 32,999 Ashburnham & Westminister Regional School District Bond Anticipation Notes 06/17/05 3.000 33,193,393
25
PRINCIPAL AMOUNT MATURITY INTEREST (000) DATES RATES VALUE ------------------------------------------------------------------------------------------------------------------------------- MUNICIPAL BONDS AND NOTES--(CONTINUED) MASSACHUSETTS--(CONCLUDED) $ 10,200 Boston Water & Sewer Commission Revenue, Series A (A) 1.910% $ 10,200,000 4,100 Danvers Bond Anticipation Notes 03/18/05 1.750 4,102,067 8,000 Dedham Bond Anticipation Notes 06/01/05 3.000 8,045,176 1,800 Massachusetts Health & Educational Facilities Authority Revenue (Capital Asset Program), Series B (A) 2.160 1,800,000 25,000 Massachusetts Health & Educational Facilities Authority Revenue (Harvard Vanguard Medical Associates) (A) 1.980 25,000,000 15,510 Massachusetts Health & Educational Facilities Authority Revenue (Partners Healthcare System), Series P-1 (A) 1.950 15,510,000 14,650 Massachusetts Health & Educational Facilities Authority Revenue (Partners Healthcare System), Series P-2 (A) 1.980 14,650,000 24,950 Massachusetts Water Resources Authority Refunding (General Multi-Modal), Series B (A) 1.950 24,950,000 43,900 Massachusetts Water Resources Authority Refunding (General Multi-Modal), Series C (A) 1.950 43,900,000 25,000 Massachusetts Water Resources Authority Refunding (General Multi-Modal), Series D (A) 1.950 25,000,000 4,000 North Andover Bond Anticipation Notes 07/06/05 3.000 4,026,040 15,000 Old Rochester Regional School District Bond Anticipation Notes 02/18/05 2.000 15,002,817 37,800 Route 3 North Transport Improvement Associates Lease Revenue (Demand Obligation Bond), Series B (A) 1.950 37,800,000 21,300 Webster Bond Anticipation Notes 01/28/05 2.000 21,314,061 ------------------------------------------------------------------------------------------------------------------------------- 284,493,554 ------------------------------------------------------------------------------------------------------------------------------- MICHIGAN--1.62% 16,800 Michigan Housing Development Authority, Series 2000-A (A) 2.000 16,800,000 8,200 Michigan State Grant Anticipation Notes, Series B (A) 1.970 8,200,000
26
PRINCIPAL AMOUNT MATURITY INTEREST (000) DATES RATES VALUE ------------------------------------------------------------------------------------------------------------------------------- MUNICIPAL BONDS AND NOTES--(CONTINUED) MICHIGAN--(CONCLUDED) $ 5,400 Northville Township Economic Development Corp. Ltd., Obligation Revenue (Thrifty Northville, Inc. Project) (A) 1.990% $ 5,400,000 9,650 University of Michigan Revenue Refunding (University Hospital), Series A-2 (A) 2.150 9,650,000 10,455 University of Michigan Revenue Refunding (University Medical Service Plan), Series A-1 (A) 2.150 10,455,000 ------------------------------------------------------------------------------------------------------------------------------- 50,505,000 ------------------------------------------------------------------------------------------------------------------------------- MISSISSIPPI--0.35% 11,000 Harrison County Pollution Control Revenue (DuPont) (A) 2.150 11,000,000 ------------------------------------------------------------------------------------------------------------------------------- MISSOURI--2.14% 13,600 Missouri Health & Educational Facilities Authority Revenue (Assemblies of God College) (A) 2.000 13,600,000 13,010 Missouri Health & Educational Facilities Authority Revenue (Barnes Hospital Project) (A) 2.000 13,010,000 10,000 Missouri Health & Educational Facilities Authority Revenue (Lutheran Church) (A) 2.180 10,000,000 5,570 St. Charles County Industrial Development Authority Revenue Refunding (Casalon Apartments Project) (A) 1.980 5,570,000 20,510 University of Missouri Revenue (University Systems Facilities), Series A (A) 2.190 20,510,000 4,200 University of Missouri Revenue (University Systems Facilities), Series B (A) 2.190 4,200,000 ------------------------------------------------------------------------------------------------------------------------------- 66,890,000 ------------------------------------------------------------------------------------------------------------------------------- NEBRASKA--0.36% 11,100 Nebhelp Increase Revenue (Multiple-Mode), Series E (A) 2.050 11,100,000 -------------------------------------------------------------------------------------------------------------------------------
27
PRINCIPAL AMOUNT MATURITY INTEREST (000) DATES RATES VALUE ------------------------------------------------------------------------------------------------------------------------------- MUNICIPAL BONDS AND NOTES--(CONTINUED) NEVADA--1.41% $ 10,000 Clark County Airport Improvement Revenue Refunding, Series A (A) 1.960% $ 10,000,000 34,150 Clark County Airport Improvement Revenue (Sub Lien), Series A-1 (A) 1.960 34,150,000 ------------------------------------------------------------------------------------------------------------------------------- 44,150,000 ------------------------------------------------------------------------------------------------------------------------------- NEW HAMPSHIRE--0.63% 13,800 New Hampshire Business Finance Authority Resource Recovery Revenue (Wheelabrator), Series A (A) 1.980 13,800,000 5,815 New Hampshire Higher Educational & Health Facilities Authority Revenue (Mary Hitchcock), Series 85-H (A) 1.980 5,815,000 ------------------------------------------------------------------------------------------------------------------------------- 19,615,000 ------------------------------------------------------------------------------------------------------------------------------- NEW JERSEY--1.18% 12,997 Edison Township Bond Anticipation Notes 06/22/05 3.000 13,075,273 5,800 Haddonfield Bond Anticipation Notes 02/25/05 2.750 5,810,711 17,860 Salem County Improvement Authority Revenue (Friends Home Woodstown, Inc.) (A) 1.970 17,860,000 ------------------------------------------------------------------------------------------------------------------------------- 36,745,984 ------------------------------------------------------------------------------------------------------------------------------- NEW MEXICO--0.18% 5,465 University of New Mexico, University Revenue (A) 1.960 5,465,000 ------------------------------------------------------------------------------------------------------------------------------- NEW YORK--2.14% 10,000 New York City Industrial Development Agency Revenue (Liberty 1 Bryant Park LLC), Series B (A) 2.170 10,000,000 13,000 New York City Municipal Water Finance Authority Water & Sewer Systems Revenue, Subseries C-1 (A) 2.200 13,000,000 16,500 New York City, Subseries H-2 (A) 1.960 16,500,000 11,000 New York City, Subseries J-2 (A) 1.980 11,000,000
28
PRINCIPAL AMOUNT MATURITY INTEREST (000) DATES RATES VALUE ------------------------------------------------------------------------------------------------------------------------------- MUNICIPAL BONDS AND NOTES--(CONTINUED) NEW YORK--(CONCLUDED) $ 16,200 New York State Housing Finance Agency Revenue (North End Ave. Housing), Series A (A) 1.980% $ 16,200,000 ------------------------------------------------------------------------------------------------------------------------------- 66,700,000 ------------------------------------------------------------------------------------------------------------------------------- NORTH CAROLINA--3.98% 9,800 Charlotte Certificates of Participation (Government Facilities Authority), Series F (A) 2.000 9,800,000 18,810 Charlotte Water & Sewer Systems Revenue Refunding, Series C (A) 1.970 18,810,000 20,600 Concord Utilities Systems Revenue Refunding, Series B (A) 1.960 20,600,000 10,300 Fayetteville Public Works Commission Revenue Refunding, Series A (A) 1.970 10,300,000 11,760 North Carolina Educational Facility Finance Agency Revenue (Elon College) (A) 1.980 11,760,000 6,250 North Carolina Educational Facility Finance Agency Revenue (Providence Day) (A) 2.000 6,250,000 21,600 North Carolina Medical Care Community Hospital Revenue (Aces-Pooled Equipment Financing Project) (A) 1.980 21,600,000 10,000 North Carolina Public Improvement Bond, Series F (A) 1.950 10,000,000 15,000 North Carolina Refunding, Series B (A) 1.950 15,000,000 ------------------------------------------------------------------------------------------------------------------------------- 124,120,000 ------------------------------------------------------------------------------------------------------------------------------- OHIO--4.42% 15,000 Cleveland-Cuyahoga County Port Authority Revenue (Euclid/93rd Garage Office) (A) 2.000 15,000,000 18,900 Columbus Sewer Revenue Refunding (A) 1.990 18,900,000 27,240 Franklin County Hospital Revenue Refunding (U.S. Health Corp.), Series A (A) 1.970 27,240,000 10,400 Franklin County Hospital Revenue Subordinated (Doctors Ohio Health), Series B (A) 1.980 10,400,000
29
PRINCIPAL AMOUNT MATURITY INTEREST (000) DATES RATES VALUE ------------------------------------------------------------------------------------------------------------------------------- MUNICIPAL BONDS AND NOTES--(CONTINUED) OHIO--(CONCLUDED) $ 7,925 Grove City Infrastructure Construction Notes 06/23/05 3.000% $ 7,970,375 7,240 Mahoning County Housing Revenue (Youngstown State University Project) (A) 1.950 7,240,000 14,200 Ohio Air Quality Development Authority Revenue Refunding (Ohio Edison Project), Series A (A) 1.980 14,200,000 7,000 Ohio Higher Educational Facilities Revenue (Case Western Reserve Project), Series A (A) 2.150 7,000,000 29,900 Ohio Water Development Authority Revenue Refunding (Water Development Project) (A) 1.950 29,900,000 ------------------------------------------------------------------------------------------------------------------------------- 137,850,375 ------------------------------------------------------------------------------------------------------------------------------- OREGON--0.21% 6,700 Portland Multi-Family Revenue (South Park Block Project), Series A (A) 2.000 6,700,000 ------------------------------------------------------------------------------------------------------------------------------- PENNSYLVANIA--5.90% 14,380 Delaware County Authority Hospital Revenue (Crozer-Chester Medical Center) (A) 1.990 14,380,000 45,450 Delaware Valley Regional Finance Authority (Local Government Revenue) (A) 1.980 45,450,000 8,300 Delaware Valley Regional Finance Authority (Local Government Revenue), Series C (A) 1.980 8,300,000 25,790 Lancaster County Hospital Authority Revenue (Health Center, Masonic Homes Project) (A) 1.990 25,790,000 10,000 Pennsylvania Higher Educational Facilities Authority Revenue (University of Pittsburgh Health Services), Series C (A) 2.030 10,000,000 9,700 Pennsylvania Higher Educational Facilities Authority Revenue Refunding (Carnegie Mellon University), Series A (A) 2.190 9,700,000
30
PRINCIPAL AMOUNT MATURITY INTEREST (000) DATES RATES VALUE ------------------------------------------------------------------------------------------------------------------------------- MUNICIPAL BONDS AND NOTES--(CONTINUED) PENNSYLVANIA--(CONCLUDED) $ 9,600 Philadelphia Authority for Industrial Development Revenue (Regional Performing Arts Center Project) (A) 1.980% $ 9,600,000 16,000 Philadelphia Hospital & Higher Education Facilities Authority Revenue (Children's Hospital Project), Series D (A) 2.190 16,000,000 11,470 Philadelphia Hospital & Higher Education Health Systems (Jefferson Health Project), Series B (A) 1.080 11,470,000 19,200 University of Pittsburgh of the Commonwealth Systems of Higher Education (University Capital Project), Series A (A) 2.000 19,200,000 14,220 York General Authority Revenue (Pooled Financing Subordinated), Series B (A) 1.990 14,220,000 ------------------------------------------------------------------------------------------------------------------------------- 184,110,000 ------------------------------------------------------------------------------------------------------------------------------- SOUTH CAROLINA--3.54% 3,715 Lexington & Richland Counties South Carolina School District No. 005 03/01/05 2.500 3,720,808 27,800 Piedmont Municipal Power Agency, South Carolina Electric Revenue Refunding, Series A (A) 2.000 27,800,000 10,000 Piedmont Municipal Power Agency, South Carolina Electric Revenue Refunding, Series B (A) 2.000 10,000,000 10,300 Piedmont Municipal Power Agency, South Carolina Electric Revenue Refunding, Subseries B-2 (A) 2.000 10,300,000 10,000 Rock Hill Utility Systems Revenue, Series B (A) 1.900 10,000,000 10,000 South Carolina Educational Facilities Authority for Private Nonprofit Institutions Refunding & Improvement (Anderson) (A) 2.000 10,000,000 19,380 South Carolina Jobs-Economic Development Authority (Coastal Carolina University Project), Series A (A) 1.990 19,380,000
31
PRINCIPAL AMOUNT MATURITY INTEREST (000) DATES RATES VALUE ------------------------------------------------------------------------------------------------------------------------------- MUNICIPAL BONDS AND NOTES--(CONTINUED) SOUTH CAROLINA--(CONCLUDED) $ 12,730 South Carolina Jobs-Economic Development Authority, Hospital Facilities Revenue (Orangeburg Medical Center) (A) 1.960% $ 12,730,000 6,400 Three Rivers Solid Waste Authority, Solid Waste Disposal Facilities Revenue Bond Anticipation Notes 06/01/05 3.000 6,428,273 ------------------------------------------------------------------------------------------------------------------------------- 110,359,081 ------------------------------------------------------------------------------------------------------------------------------- TENNESSEE--1.74% 4,000 Metropolitan Government Nashville & Davidson County, Health & Educational Facilities Board Revenue (Ascension Health Credit Group), Series B-2 (A) 1.200 4,000,000 9,535 Metropolitan Government Nashville & Davidson County, Health & Educational Facilities Board Revenue (Vanderbilt University) (A) 1.950 9,535,000 14,235 Metropolitan Government Nashville & Davidson County, Industrial Development Refunding (David Lipscomb University Project) (A) 2.000 14,235,000 6,125 Montgomery County Public Building Authority Revenue, Financing Government Obligation (Pooled Loan) (A) 2.000 6,125,000 6,720 Shelby County, Series A (A) 2.000 6,720,000 5,300 Signal Mountain Health Educational & Housing Facilities Board Revenue Refunding (Alexian Village) (A) 1.990 5,300,000 8,510 Tusculum Health Educational & Housing Board, Educational Facilities Revenue (Tusculum College Project) (A) 2.000 8,510,000 ------------------------------------------------------------------------------------------------------------------------------- 54,425,000 ------------------------------------------------------------------------------------------------------------------------------- TEXAS--5.52% 10,160 Guadalupe-Blanco River Authority Pollution Control Revenue Refunding (Central Power & Light Co. Project) (A) 2.150 10,160,000
32
PRINCIPAL AMOUNT MATURITY INTEREST (000) DATES RATES VALUE ------------------------------------------------------------------------------------------------------------------------------- MUNICIPAL BONDS AND NOTES--(CONTINUED) TEXAS--(CONCLUDED) $ 19,975 Harris County Health Facilities Development Corp. Revenue (Methodist Hospital) (A) 2.200% $ 19,975,000 5,900 Port Arthur Navigation District Refunding (Texaco, Inc. Project) (A) 2.180 5,900,000 7,050 Tarrant County Housing Finance Corp. Revenue Refunding (Multi-Family Housing Apartments Project) (A) 2.050 7,050,000 19,320 Texas State (Veterans Housing Assistance), Fund I (A) 1.960 19,320,000 60,000 Texas Tax & Revenue Anticipation Notes 08/31/05 3.000 60,547,891 24,165 Texas Turnpike Authority Central Texas Turnpike System Revenue, First Tier, Series B (A) 1.960 24,165,000 25,000 University of Houston University Revenue Construction Systems 01/20/05 2.000 25,008,323 ------------------------------------------------------------------------------------------------------------------------------- 172,126,214 ------------------------------------------------------------------------------------------------------------------------------- UTAH--0.25% 7,900 Salt Lake County Pollution Control Revenue Refunding (Service Station Holdings Project) (A) 2.180 7,900,000 ------------------------------------------------------------------------------------------------------------------------------- VIRGINIA--0.59% 11,545 Fairfax County Economic Development Authority Revenue (Smithsonian Institution), Series A (A) 1.930 11,545,000 7,000 Norfolk Industrial Development Authority Revenue (Hospital Facilities Childrens Project) (A) 2.000 7,000,000 ------------------------------------------------------------------------------------------------------------------------------- 18,545,000 ------------------------------------------------------------------------------------------------------------------------------- WASHINGTON--4.80% 23,000 Energy Northwest Washington Electric Revenue Refunding (Project No. 3), Series D-3-1 (A) 1.970 23,000,000 22,200 King County Sewer Revenue (Junior Lien), Series B (A) 2.000 22,200,000 5,100 Port of Vancouver (A) 2.000 5,100,000
33
PRINCIPAL AMOUNT MATURITY INTEREST (000) DATES RATES VALUE ------------------------------------------------------------------------------------------------------------------------------- MUNICIPAL BONDS AND NOTES--(CONCLUDED) WASHINGTON--(CONCLUDED) $ 9,000 Seattle Municipal Light & Power Revenue (A) 1.920% $ 9,000,000 35,370 Snohomish County Public Utility District No. 001 Electric Revenue Refunding (Generation Systems), Series A (A) 1.970 35,370,000 7,800 Snohomish County Public Utility District No. 001 Electric Revenue Refunding (Generation Systems), Series A-2 (A) 1.970 7,800,000 10,000 Tulalip Tribes of The Tulalip Reservation Special Revenue Refunding (A) 2.050 10,000,000 23,960 Washington Public Power Supply Systems Nuclear Project No. 1 Revenue Refunding, Series 1A-2 (A) 1.970 23,960,000 13,420 Washington Public Power Supply Systems Nuclear Project No. 3 Electric Revenue Refunding, Series 3A (A) 2.000 13,420,000 ------------------------------------------------------------------------------------------------------------------------------- 149,850,000 ------------------------------------------------------------------------------------------------------------------------------- WISCONSIN--0.64% 10,000 Wisconsin Center District Tax Revenue, Series A (A) 1.980 10,000,000 10,000 Wisconsin Health & Education Facilities Authority Revenue (Wheaton Franciscan Services) (A) 1.980 10,000,000 ------------------------------------------------------------------------------------------------------------------------------- 20,000,000 ------------------------------------------------------------------------------------------------------------------------------- WYOMING--0.95% 29,700 Sweetwater County Pollution Control Revenue Refunding (Pacificorp Project), Series A (A) 1.980 29,700,000 ------------------------------------------------------------------------------------------------------------------------------- Total Municipal Bonds and Notes (cost--$2,957,411,773) 2,957,411,773 -------------------------------------------------------------------------------------------------------------------------------
34
PRINCIPAL AMOUNT MATURITY INTEREST (000) DATES RATES VALUE ------------------------------------------------------------------------------------------------------------------------------- TAX-EXEMPT COMMERCIAL PAPER--10.47% ARIZONA--1.37% $ 32,675 City of Phoenix, Civic Improvement 02/11/05 to 1.450 to Corp. Water System Revenue 04/15/05 1.750% $ 32,675,000 10,000 Salt River Agricultural Improvement 02/09/05 1.820 10,000,000 ------------------------------------------------------------------------------------------------------------------------------- 42,675,000 ------------------------------------------------------------------------------------------------------------------------------- CALIFORNIA--0.41% 12,800 California Statewide Community Development Authority 02/23/05 1.860 12,800,000 ------------------------------------------------------------------------------------------------------------------------------- COLORADO--0.32% 10,000 Colorado Health Facility Authority 01/19/05 1.770 10,000,000 ------------------------------------------------------------------------------------------------------------------------------- FLORIDA--0.72% 16,000 Jacksonville Electric Authority 03/03/05 1.750 16,000,000 6,500 Pinellas County Educational Facility Pool 01/14/05 1.860 6,500,000 ------------------------------------------------------------------------------------------------------------------------------- 22,500,000 ------------------------------------------------------------------------------------------------------------------------------- ILLINOIS--1.89% 34,000 Illinois Educational Facilities Authority 01/19/05 to 1.300 to Revenue 01/24/05 1.520 34,000,000 10,000 Illinois Educational Facilities Authority Revenue (Field Museum) 01/05/05 1.300 10,000,000 15,000 Illinois Health Facilities Authority 02/24/05 1.700 15,000,000 ------------------------------------------------------------------------------------------------------------------------------- 59,000,000 ------------------------------------------------------------------------------------------------------------------------------- LOUISIANA--0.45% 13,970 Louisiana Offshore Terminal Authority Deepwater Port Revenue Refunding (Loop, Inc. First Stage), Series A 02/17/05 1.780 13,970,000 ------------------------------------------------------------------------------------------------------------------------------- MARYLAND--0.48% 15,000 John Hopkins University 01/13/05 1.300 15,000,000 ------------------------------------------------------------------------------------------------------------------------------- NEVADA--0.27% 8,300 Clark County Regional Flood Control 02/22/05 1.870 8,300,000 ------------------------------------------------------------------------------------------------------------------------------- NEW YORK--0.83% 15,800 New York State Dormitory Authority Revenue 01/11/05 1.850 15,800,000 10,000 New York State Power Authority 02/10/05 1.770 10,000,000 ------------------------------------------------------------------------------------------------------------------------------- 25,800,000 -------------------------------------------------------------------------------------------------------------------------------
35
PRINCIPAL AMOUNT MATURITY INTEREST (000) DATES RATES VALUE ------------------------------------------------------------------------------------------------------------------------------- TAX-EXEMPT COMMERCIAL PAPER--(CONCLUDED) NORTH CAROLINA--0.70% $ 22,000 Union County 01/14/05 to 1.300 to 01/26/05 1.500% $ 22,000,000 ------------------------------------------------------------------------------------------------------------------------------- PUERTO RICO--0.42% 13,000 Government Development Bank of Puerto Rico 03/21/05 1.900 13,000,000 ------------------------------------------------------------------------------------------------------------------------------- SOUTH CAROLINA--0.48% 15,000 South Carolina Public Service Authority 01/27/05 1.870 15,000,000 ------------------------------------------------------------------------------------------------------------------------------- TENNESSEE--0.32% 10,000 Montgomery County Bond Anticipation Notes 01/25/05 1.850 10,000,000 ------------------------------------------------------------------------------------------------------------------------------- TEXAS--1.62% 16,800 City of Houston 01/12/05 1.750 16,800,000 4,876 Dallas Waterworks and Sewer System, Series B 02/10/05 1.750 4,876,000 15,000 Houston Utility Systems Revenue 01/18/05 1.840 15,000,000 14,000 North Central Texas Health Facilities Development Corp., (Methodist Hospital) 03/07/05 1.870 14,000,000 ------------------------------------------------------------------------------------------------------------------------------- 50,676,000 ------------------------------------------------------------------------------------------------------------------------------- WASHINGTON--0.19% 6,000 Port of Tacoma 03/08/05 1.850 6,000,000 ------------------------------------------------------------------------------------------------------------------------------- Total Tax-Exempt Commercial Paper (cost--$326,721,000) 326,721,000 ------------------------------------------------------------------------------------------------------------------------------- Total Investments (cost--$3,284,132,773 which approximates cost for federal income tax purposes)--105.26% 3,284,132,773 ------------------------------------------------------------------------------------------------------------------------------- Liabilities in excess of other assets--(5.26)% (164,069,195) ------------------------------------------------------------------------------------------------------------------------------- Net Assets (applicable to 3,120,798,992 shares of common stock outstanding equivalent to $1.00 per share)--100.00% $ 3,120,063,578 -------------------------------------------------------------------------------------------------------------------------------
(A) Variable rate demand notes are payable on demand. The interest rates shown are the current rates as of December 31, 2004, and reset periodically. Weighted average maturity -- 17 days See accompanying notes to financial statements 36 UBS RMA CALIFORNIA MUNICIPAL MONEY FUND STATEMENT OF NET ASSETS -- DECEMBER 31, 2004 (UNAUDITED)
PRINCIPAL AMOUNT MATURITY INTEREST (000) DATES RATES VALUE ------------------------------------------------------------------------------------------------------------------------------- MUNICIPAL BONDS AND NOTES--94.79% $ 8,500 California, Daily Kindergarten Universal, Series A-1 (A) 2.160% $ 8,500,000 8,400 California, Daily Kindergarten Universal, Series A-2 (A) 2.200 8,400,000 5,500 California, Daily Kindergarten Universal, Series A-5 (A) 2.130 5,500,000 8,000 California Department of Veteran Affairs Home Purchase, Subseries A-2 (A) 1.950 8,000,000 10,000 California Department of Water Resources Power Supply Revenue (Putters), Series 344 (A) 2.020 10,000,000 11,200 California Department of Water Resources Power Supply Revenue, Series B-1 (A) 2.200 11,200,000 17,100 California Department of Water Resources Power Supply Revenue, Series B-2 (A) 2.250 17,100,000 300 California Department of Water Resources Power Supply Revenue, Series B-3 (A) 2.170 300,000 2,300 California Department of Water Resources Power Supply Revenue, Series B-4 (A) 2.130 2,300,000 5,000 California Department of Water Resources Power Supply Revenue, Series C-8 (A) 1.960 5,000,000 5,000 California Department of Water Resources Power Supply Revenue, Series C-14 (A) 1.980 5,000,000 14,300 California Economic Recovery, Series C-8 (A) 2.170 14,300,000 5,700 California Economic Recovery, Series C-15 (A) 1.980 5,700,000 1,950 California Educational Facilities Authority (Foundation for Educational Achievement), Series A (A) 1.970 1,950,000 17,600 California Health Facilities Financing Authority (Catholic Health Facilities), Series J (A) 1.960 17,600,000 15,000 California Health Facilities Financing Authority (Catholic Health Facilities), Series K (A) 1.980 15,000,000
37
PRINCIPAL AMOUNT MATURITY INTEREST (000) DATES RATES VALUE ------------------------------------------------------------------------------------------------------------------------------- MUNICIPAL BONDS AND NOTES--(CONTINUED) $ 8,704 California Health Facilities Financing Authority (Floating Pooled Loan Program), Series B (A) 2.000% $ 8,704,000 14,600 California Health Facilities Financing Authority (Hospital Adventist Health 1.990 to Systems), Series A (A) 2.200 14,600,000 7,250 California Health Facilities Financing Authority (Sutter Health), Series B (A) 2.130 7,250,000 15,500 California Infrastructure & Economic Development Revenue (Buck Institute Age Research) (A) 1.960 15,500,000 15,600 California Infrastructure & Economic Development Revenue (Independent Systems Operation Corp. Project), Series B (A) 1.980 15,600,000 10,100 California Infrastructure & Economic Development Revenue (Independent Systems Operation Corp. Project), Series C (A) 1.960 10,100,000 5,000 California, Series C-1 (A) 1.980 5,000,000 9,800 California Statewide Communities Development Authority (Biola University), Series B (A) 1.980 9,800,000 10,000 California Statewide Communities Development Authority (Kaiser Permanente), Series E (A) 1.080 10,000,000 3,400 California Statewide Communities Development Authority (Kaiser Permanente), Series M (A) 2.000 3,400,000 1,300 California Statewide Communities Development Authority Pollution Control Revenue (Chevron USA Inc. Project) (A) 2.140 1,300,000 20,725 California Transit Financing Authority (A) 2.000 20,725,000 6,900 California, Weekly Kindergarten Universal Public, Series A-9 (A) 1.970 6,900,000 10,210 Alameda Contra Costa Schools Financing Authority Certificates of Participation (Capital Improvement Financing Projects), Series A (A) 2.030 10,210,000
38
PRINCIPAL AMOUNT MATURITY INTEREST (000) DATES RATES VALUE ------------------------------------------------------------------------------------------------------------------------------- MUNICIPAL BONDS AND NOTES--(CONTINUED) $ 6,995 Anaheim Certificates of Participation, Adjusted 1993 Refunding Projects (A) 1.940% $ 6,995,000 10,220 Association of Bay Area Governments Finance Authority for Nonprofit Corps. Certificates of Participation (Lucile Salter Packard Project) (A) 1.980 10,220,000 8,000 Bay Area Toll Authority Toll Board (San Francisco Bay Area), Series C (A) 1.960 8,000,000 14,600 Conejo Valley Unified School District Tax and Revenue Anticipation Notes 06/30/05 2.750 14,664,544 9,500 Daly City Housing Finance Agency Multi-Family Revenue Refunding (Serramonte Del Ray), Series A (A) 1.960 9,500,000 8,715 East Bay Municipal Utility District Water Systems Revenue, Subseries A (A) 1.940 8,715,000 11,000 Fresno Multi-Family Housing Revenue Refunding (Heron Pointe Apartments), Series A (A) 1.960 11,000,000 4,100 Grand Terrace Community Redevelopment Agency Multi-Family Housing Revenue (Mount Vernon Villas) (A) 1.980 4,100,000 13,745 Irvine Improvement Bond Act 1915 Limited Obligation (Assessment District 85-7-1) (A) 1.980 13,745,000 5,000 Livermore Certificates of Participation (Refunding and Capital Projects) (A) 2.000 5,000,000 8,100 Los Angeles Community Redevelopment Agency Multi-Family Housing Revenue (Skyline at Southpark Phase II) (A) 2.030 8,100,000 7,000 Los Angeles County Schools Transport (Pooled Financing Program Certificates of Participation), Series A 06/30/05 3.500 7,064,177 12,600 Los Angeles County Transport Commission Sales Tax and Revenue, Series A (A) 1.940 12,600,000 12,600 Los Angeles Multi-Family Housing Revenue (Museum Terrace Apartments), Series H (A) 1.930 12,600,000 13,750 Los Angeles Tax and Revenue Anticipation Notes 06/30/05 3.000 13,830,109
39
PRINCIPAL AMOUNT MATURITY INTEREST (000) DATES RATES VALUE ------------------------------------------------------------------------------------------------------------------------------- MUNICIPAL BONDS AND NOTES--(CONTINUED) $ 13,400 Los Angeles Unified School District Certificates of Participation (Land Acquisition Program), Series D (A) 2.000% $ 13,400,000 10,000 Los Angeles Water and Power Revenue, Subseries A-1 (A) 1.950 10,000,000 9,900 Los Angeles Water and Power Revenue, Subseries A-5 (A) 1.950 9,900,000 6,300 Los Angeles Water and Power Revenue, Subseries B-3 (A) 2.160 6,300,000 14,100 Los Angeles Water and Power Revenue, Subseries B-6 (A) 2.190 14,100,000 15,000 Metropolitan Water District Southern California Waterworks Revenue, Series A-1 (A) 1.950 15,000,000 8,000 Metropolitan Water District Southern California Waterworks Revenue, Series A-2 (A) 1.970 8,000,000 10,000 Metropolitan Water District Southern California Waterworks Revenue, Series B-1 (A) 1.950 10,000,000 10,000 Metropolitan Water District Southern California Waterworks Revenue, Series B-2 (A) 1.950 10,000,000 3,500 Milpitas Unified School District Tax and Revenue Anticipation Notes 06/30/05 3.000 3,522,569 6,795 Moorpark Industrial Development Authority (Fred Kavli and Kavlico Corp.) (A) 1.980 6,795,000 5,300 Newport Beach Revenue (Hoag Memorial Hospital), Series A (A) 2.130 5,300,000 10,000 Northern California Power Agency Revenue Refunding (Hydroelectric No. 1-A) (A) 1.940 10,000,000 15,100 Oakland Alameda County Coliseum Authority Lease Revenue (A) 2.000 15,100,000 12,000 Oakland Alameda County Coliseum Authority Lease Revenue (Coliseum Project), Series C-2 (A) 1.950 12,000,000 6,790 Orange County Apartment Development Revenue (Niguel Village), Series AA (A) 1.970 6,790,000
40
PRINCIPAL AMOUNT MATURITY INTEREST (000) DATES RATES VALUE ------------------------------------------------------------------------------------------------------------------------------- MUNICIPAL BONDS AND NOTES--(CONTINUED) $ 6,340 Orange County Apartment Development Revenue (Niguel Village), Series U (A) 2.050% $ 6,340,000 13,200 Orange County Apartment Development Revenue (Seaside Meadow), Series C (A) 1.940 13,200,000 11,700 Orange County Apartment Development Revenue (Villas La-Paz), Series F (A) 1.980 11,700,000 17,000 Orange County Water District Revenue Certificates of Participation, Series A (A) 1.940 17,000,000 6,900 Pasadena Certificates of Participation (Rose Bowl Imports Project) (A) 2.000 6,900,000 8,700 Roseville Electric Systems Revenue Certificates of Participation (A) 1.960 8,700,000 5,800 Sacramento County Certificates of Participation (Administration Center and Courthouse Project) (A) 2.000 5,800,000 9,400 San Bernardino County Certificates of Participation (County Center Refinancing Project) (A) 1.960 9,400,000 4,800 San Bernardino County Multi-Family Revenue Bonds (WLP Mountain View Apartments), Series A (A) 1.980 4,800,000 16,290 San Diego Metropolitan Transit Development Board Revenue Anticipation Notes 01/05/05 2.000 16,291,138 8,700 San Francisco City and County Redevelopment Agency Multi-Family Housing Revenue (St. Francis Project), Series A (A) 1.900 8,700,000 4,000 San Francisco City and County Redevelopment Agency Revenue (Community Facilities District No. 4) (A) 2.000 4,000,000 9,750 San Jose Redevelopment Agency Revenue (Merged Area Redevelopment Project), Series A (A) 1.940 9,750,000 13,000 San Jose-Santa Clara Water Financing Authority Sewer Revenue, Series B (A) 1.940 13,000,000 6,500 San Leandro Unified School District Tax and Revenue Anticipation Notes 07/12/05 3.000 6,545,394 5,000 Santa Clara Financing Authority (VMC Facility Replacement-Project B) (A) 1.970 5,000,000
41
PRINCIPAL AMOUNT MATURITY INTEREST (000) DATES RATES VALUE ------------------------------------------------------------------------------------------------------------------------------- MUNICIPAL BONDS AND NOTES--(CONCLUDED) $ 15,050 Simi Valley Multi-Family Housing Revenue Refunding (Lincoln Wood Ranch) (A) 1.980% $ 15,050,000 5,300 South Placer Wastewater Authority California Wastewater Revenue, Series B (A) 1.970 5,300,000 4,300 Turlock Irrigation District Certificates of Participation (Capital Improvement and Refunding Project) (A) 2.200 4,300,000 25,000 Western Placer Unified School Certificates of Participation (School Facilities Project), Series A (A) 1.980 25,000,000 ------------------------------------------------------------------------------------------------------------------------------- Total Municipal Bonds and Notes (cost--$774,056,931) 774,056,931 ------------------------------------------------------------------------------------------------------------------------------- TAX-EXEMPT COMMERCIAL PAPER--7.42% 3,500 California Statewide Community Development Authority (Kaiser Permanente) 01/21/05 1.470 3,500,000 2,000 East Bay Municipal Utility District Water Systems Revenue 02/09/05 1.770 2,000,000 8,500 Los Angeles County Capital 02/07/05 to 1.830 to Asset Corp. 03/18/05 1.850 8,500,000 9,500 San Diego Water Authority 01/11/05 to 1.720 to 01/19/05 1.790 9,500,000 4,000 University of California Regents 01/20/05 1.830 4,000,000 33,120 Puerto Rico Commonwealth 01/12/05 to 1.450 to Government Development Bank 03/30/05 1.830 33,120,000 ------------------------------------------------------------------------------------------------------------------------------- Total Tax-Exempt Commercial Paper (cost--$60,620,000) 60,620,000 ------------------------------------------------------------------------------------------------------------------------------- Total Investments (cost--$834,676,931 which approximates cost for federal income tax purposes)--102.21% 834,676,931 ------------------------------------------------------------------------------------------------------------------------------- Liabilities in excess of other assets--(2.21)% (18,058,876) ------------------------------------------------------------------------------------------------------------------------------- Net Assets (applicable to 817,031,579 shares of beneficial interest outstanding equivalent to $1.00 per share)--100.00% $ 816,618,055 -------------------------------------------------------------------------------------------------------------------------------
(A) Variable rate demand notes are payable on demand. The interest rates shown are current rates as of December 31, 2004 and reset periodically. Weighted average maturity -- 18 days See accompanying notes to financial statements 42 UBS RMA NEW YORK MUNICIPAL MONEY FUND STATEMENT OF NET ASSETS -- DECEMBER 31, 2004 (UNAUDITED)
PRINCIPAL AMOUNT MATURITY INTEREST (000) DATES RATES VALUE ------------------------------------------------------------------------------------------------------------------------------- MUNICIPAL BONDS AND NOTES--90.77% $ 1,250 New York State Dormitory Authority Revenue (Columbia University), Series A-2 06/08/05 1.600% $ 1,250,000 24,125 New York State Dormitory Authority 1.970 to Revenue (Cornell University), Series B (A) 2.210 24,125,000 8,000 New York State Dormitory Authority Revenue (Mental Health Facilities Improvement), Series F-2B (A) 1.970 8,000,000 11,400 New York State Dormitory Authority Revenue (Mental Health Services), Subseries D-2A (A) 1.980 11,400,000 7,527 New York State Dormitory Authority Revenue (Metropolitan Museum of Art) (A) 1.960 7,527,000 3,240 New York State Dormitory Authority Revenue (Oxford University Press, Inc.) (A) 1.960 3,240,000 12,600 New York State Dormitory Authority Revenue (Wagner College) (A) 1.980 12,600,000 22,150 New York State Energy Research & Development Authority Pollution Control Revenue (Orange & Rockland Project), Series A (A) 1.940 22,150,000 12,600 New York State Housing Finance Agency (Normandie Court I Project) (A) 1.970 12,600,000 5,000 New York State Housing Finance Agency Service Contract Revenue, Series I (A) 1.980 5,000,000 7,800 New York State Local Government Assistance Corp., Series B (A) 1.950 7,800,000 7,000 New York State Local Government Assistance Corp., Series D (A) 1.950 7,000,000 10,465 New York State Local Government Assistance Corp., Series G (A) 1.930 10,465,000 3,000 New York State Power Authority Revenue & General Purpose Obligation Bond 03/01/05 1.350 3,000,000 5,900 New York State Thruway Authority General Revenue, Series C (Pre-refunded with U.S. Government Securities to 01/01/05 @ $102) 01/01/25 6.000 6,018,000 15,000 New York State Urban Development Corp. Revenue (State Facilities & Equipment), Subseries A-3-B (A) 1.940 15,000,000 3,335 Albany Revenue Anticipation Notes 01/31/05 3.000 3,339,112
43
PRINCIPAL AMOUNT MATURITY INTEREST (000) DATES RATES VALUE ------------------------------------------------------------------------------------------------------------------------------- MUNICIPAL BONDS AND NOTES--(CONTINUED) $ 2,000 Baldwin Union Free School District Tax Anticipation Notes 06/29/05 3.000% $ 2,008,188 5,000 Board Cooperative Educational Services Sole Supervisory District Nassau County, Revenue Anticipation Notes 06/29/05 3.250 5,031,634 3,700 Broome County Bond Anticipation Notes 04/21/05 2.000 3,701,429 4,300 Clarence Central School District Tax Anticipation Notes 06/30/05 3.000 4,327,728 6,550 Erie County Water Authority (A) 1.940 6,550,000 4,500 Fayetteville-Manlius New York Central School District Tax Anticipation Notes 06/24/05 3.000 4,525,921 2,615 Great Neck North Water Authority Systems Revenue, Series-A (A) 2.000 2,615,000 10,000 Half Hollow Hills Central School District (Huntington & Babylon) Tax Anticipation Notes 06/30/05 3.000 10,046,192 2,117 Ithaca Bond Anticipation Notes 08/05/05 3.000 2,133,447 5,000 Jay Street Development Corp. New York City Facility Lease Revenue (Jay Street Project), Series A-1 (A) 1.960 5,000,000 22,300 Jay Street Development Corp. New York City Facility Lease Revenue (Jay Street Project), Series A-3 (A) 1.960 22,300,000 7,000 Long Island Power Authority Electric Systems Revenue, Series D (A) 1.950 7,000,000 9,650 Long Island Power Authority Electric Systems Revenue, Subseries 1-B (A) 2.200 9,650,000 3,100 Long Island Power Authority Electric Systems Revenue, Subseries 3-B (A) 2.170 3,100,000 2,000 Merrick Union Free School District Tax Anticipation Notes 06/23/05 3.000 2,011,645 15,000 Metropolitan Transportation Authority, Series D-1 (A) 1.950 15,000,000 5,000 Metropolitan Transportation Authority, Subseries A-2 (A) 1.980 5,000,000 7,490 Monroe County Industrial Development Agency Civic Facilities Revenue Refunding (Nazareth College), Series B (A) 2.000 7,490,000 5,000 Nassau County Interim Finance Authority, Series A (A) 1.950 5,000,000
44
PRINCIPAL AMOUNT MATURITY INTEREST (000) DATES RATES VALUE ------------------------------------------------------------------------------------------------------------------------------- MUNICIPAL BONDS AND NOTES--(CONTINUED) $ 12,000 New Rochelle City School District Tax Anticipation Notes 05/06/05 3.000% $ 12,106,330 19,500 New York City Housing Development Corp. Multi-Family Rental Housing (63 Wall Street), Series A (A) 1.960 19,500,000 6,000 New York City Housing Development Corp. Multi-Family Rental Housing (90 West Street), Series A (A) 1.950 6,000,000 15,700 New York City Housing Development Corp. Multi-Family Rental Housing (Parkgate Development), Series A (A) 1.950 15,700,000 6,500 New York City Housing Development Corp. Multi-Family Rental Housing (Queenswood Apartments), Series A (A) 1.940 6,500,000 3,215 New York City Industrial Development Agency Civic Facility Revenue (Church of Heavenly Rest) (A) 1.950 3,215,000 6,925 New York City Industrial Development Agency Civic Facility Revenue (MSMC Realty Corp. Project) (A) 1.950 6,925,000 11,100 New York City Industrial Development Agency Revenue (Liberty 1 Bryant Park LLC), Series B (A) 2.170 11,100,000 500 New York City Municipal Water Finance Authority Water & Sewer Systems Revenue, Series A (A) 2.170 500,000 11,000 New York City Municipal Water Finance Authority Water & Sewer Systems Revenue, Series F-1 (A) 2.200 11,000,000 7,100 New York City Trust for Cultural Resources Revenue (American Museum of Natural History), Series A (A) 1.940 7,100,000 5,515 New York City Trust for Cultural Resources Revenue (Asia Society) (A) 1.970 5,515,000 3,400 New York City, Subseries A-4 (A) 2.170 3,400,000 2,000 New York City, Subseries A-6 (A) 2.170 2,000,000 1,600 New York City, Subseries E-5 (A) 2.250 1,600,000 6,650 New York City, Subseries H-1 (A) 2.170 6,650,000 4,100 Niagara Falls Toll Bridge Commission (A) 1.940 4,100,000
45
PRINCIPAL AMOUNT MATURITY INTEREST (000) DATES RATES VALUE ------------------------------------------------------------------------------------------------------------------------------- MUNICIPAL BONDS AND NOTES--(CONCLUDED) $ 14,995 Oneida County Industrial Development Agency Revenue Civic Facilities (Hamilton College) (A) 2.000% $ 14,995,000 5,000 Oneida Indian Nation (A) 1.970 5,000,000 5,460 Orange County Industrial Development Agency Civic (Horton Medical Center) (A) 1.950 5,460,000 10,000 Rockland County Revenue Anticipation Notes 03/24/05 1.750 10,006,454 7,000 Rockland County Tax Anticipation Notes 03/24/05 2.000 7,012,864 19,200 Suffolk County Water Authority Bond Anticipation Notes (A) 1.960 19,200,000 2,500 Syracuse Revenue Anticipation Notes, Series E 06/30/05 3.000 2,514,451 27,215 Triborough Bridge & Tunnel Authority 1.950 to Revenues General Purpose, Series B (A) 1.970 27,215,000 9,033 Yonkers Industrial Development Agency (Consumers Union Facility) (A) 2.000 9,032,645 ------------------------------------------------------------------------------------------------------------------------------- Total Municipal Bonds and Notes (cost--$506,353,040) 506,353,040 ------------------------------------------------------------------------------------------------------------------------------- TAX-EXEMPT COMMERCIAL PAPER--13.29% 4,300 New York State Environmental Facilities Corp. 01/21/05 1.830 4,300,000 13,845 New York State Power Authority 01/20/05 to 1.630 to 02/11/05 1.770 13,845,000 5,000 Long Island Power Authority 01/19/05 1.800 5,000,000 19,500 Metropolitan Transportation Authority 01/10/05 to 1.230 to 03/09/05 1.790 19,500,000 31,509 Government Development Bank of 01/07/05 to 1.450 to Puerto Rico 03/21/05 1.900 31,509,000 ------------------------------------------------------------------------------------------------------------------------------- Total Tax-Exempt Commercial Paper (cost--$74,154,000) 74,154,000 ------------------------------------------------------------------------------------------------------------------------------- Total Investments (cost--$580,507,040 which approximates cost for federal income tax purposes)--104.06% 580,507,040 ------------------------------------------------------------------------------------------------------------------------------- Liabilities in excess of other assets--(4.06)% (22,672,619) ------------------------------------------------------------------------------------------------------------------------------- Net Assets (applicable to 557,958,942 shares of beneficial interest outstanding equivalent to $1.00 per share)--100.00% $ 557,834,421 -------------------------------------------------------------------------------------------------------------------------------
(A) Variable rate demand notes are payable on demand. The interest rates shown are current rates as of December 31, 2004 and reset periodically. Weighted average maturity -- 24 days See accompanying notes to financial statements 46 UBS RMA NEW JERSEY MUNICIPAL MONEY FUND STATEMENT OF NET ASSETS -- DECEMBER 31, 2004 (UNAUDITED)
PRINCIPAL AMOUNT MATURITY INTEREST (000) DATES RATES VALUE ------------------------------------------------------------------------------------------------------------------------------- MUNICIPAL BONDS AND NOTES--94.78% $ 2,400 New Jersey Economic Development Authority (Bayonne Project Improvement), Series B (A) 2.190% $ 2,400,000 3,170 New Jersey Economic Development Authority (Bayonne Project Improvement), Series C (A) 2.190 3,170,737 4,500 New Jersey Economic Development Authority (Center for Aging-Applewood) (A) 1.950 4,500,000 790 New Jersey Economic Development Authority (Church and Dwight Co. Project) (A) 2.000 790,000 6,000 New Jersey Economic Development Authority (Crowley Liner Services Project) (A) 1.950 6,000,000 1,750 New Jersey Economic Development Authority (Danic Urban Renewal) (A) 1.980 1,750,000 1,500 New Jersey Economic Development Authority (El Dorado Terminals), Series B (A) 2.190 1,500,000 3,145 New Jersey Economic Development Authority (Institute of Electrical), Series A (A) 1.950 3,145,000 405 New Jersey Economic Development Authority (Kenwood USA Corp. Project) (A) 2.000 405,000 5,600 New Jersey Economic Development Authority (Lawrenceville School Project), Series B (A) 2.120 5,600,000 2,700 New Jersey Economic Development Authority (Stolthaven Project), Series A (A) 2.060 2,700,000 2,000 New Jersey Economic Development Authority (Thermal Energy Limited Partnership) (A) 2.000 2,000,000 2,000 New Jersey Economic Development Authority (Transportation), Series N10-Regulation D (A) 2.050 2,000,000 3,200 New Jersey Economic Development Authority Speciality Facilities Revenue (Port Newark Container LLC) (A) 2.000 3,200,000
47
PRINCIPAL AMOUNT MATURITY INTEREST (000) DATES RATES VALUE ------------------------------------------------------------------------------------------------------------------------------- MUNICIPAL BONDS AND NOTES--(CONTINUED) $ 1,900 New Jersey Economic Development Authority Water Facilities Revenue Refunding (United Water NJ, Inc. Project), Series B (A) 2.250% $ 1,900,000 4,625 New Jersey Educational Facilities Authority (College of New Jersey), Series A (A) 1.950 4,625,000 2,700 New Jersey Educational Facilities Authority (Princeton University), Series B (A) 2.250 2,700,000 2,000 New Jersey Health Care Facilities Authority (Community Hospital Group), Series A-1 (A) 1.950 2,000,000 4,770 New Jersey Health Care Facilities Authority (St. Barnabas), Series A (A) 1.950 4,770,000 1,900 New Jersey Health Care Facilities Authority (St. Claire's Hospital), Series A-4 (A) 1.950 1,900,000 5,800 New Jersey Health Care Facilities Authority (St. Peter's Hospital), Series B (A) 1.960 5,800,000 5,000 New Jersey Health Care Facilities Authority (Variable Capital Health Systems Obligation), Group B (A) 1.950 5,000,000 2,000 New Jersey Health Care Facilities Authority, Series 943 (A) 2.020 2,000,000 2,320 New Jersey Sports & Exposition Authority, Series B-1 (A) 1.900 2,320,000 4,985 New Jersey Transport Trust Fund Authority, Series 941D (A) 1.990 4,985,000 4,300 New Jersey Turnpike Authority (A) 1.940 4,300,000 2,000 New Jersey Turnpike Authority (Putters Series 155) (A) 2.000 2,000,000 1,000 Cedar Grove Township School District Bond Anticipation Notes 08/25/05 3.000 1,008,068 1,000 Edison Township Bond Anticipation Notes 06/22/05 3.000 1,006,022 4,655 Glen Rock Bond Anticipation Notes 05/27/05 3.000 4,679,994 774 Haddonfield Bond Anticipation Notes 02/25/05 2.750 775,406 1,000 Jersey City Redevelopment Authority Multi-Family Housing (Dixon Mills) (A) 1.950 1,000,000 1,898 Mendham Township Bond Anticipation Notes 06/30/05 3.000 1,910,365
48
PRINCIPAL AMOUNT MATURITY INTEREST (000) DATES RATES VALUE ------------------------------------------------------------------------------------------------------------------------------- MUNICIPAL BONDS AND NOTES--(CONCLUDED) $ 1,000 Mercer County Improvement Authority (Atlantic Foundation) (A) 1.940% $ 1,000,000 1,950 Monmouth County Improvement Authority (Pooled Government Loan Program) (A) 1.930 1,950,000 5,495 Port Authority of New York and New Jersey Special Obligation Revenue (Versatile Structure Obligation), Series 3 (A) 2.170 5,495,000 4,100 Port Authority of New York and New Jersey Special Obligation Revenue (Versatile Structure Obligation), Series 5 (A) 2.170 4,100,000 2,200 Rutgers State University Refunding, Series A (A) 2.130 2,200,000 1,750 Rutherford Tax Anticipation Notes 02/04/05 1.900 1,750,555 1,525 Salem County Pollution Control Financing Refunding (Atlantic City Electric), Series A (A) 1.930 1,525,000 4,000 South Monmouth Regional Sewage Authority Project Notes 01/27/05 2.000 4,001,793 6,000 Union County Improvement Authority (Cedar Glen Housing Corp.), Series A (A) 1.980 6,000,000 3,000 Union County Industrial Pollution Control Financing Authority (Exxon Project) (A) 2.090 3,000,000 3,300 University of Medicine & Dentistry, Series B (A) 1.990 3,300,000 ------------------------------------------------------------------------------------------------------------------------------- Total Municipal Bonds and Notes (cost--$128,162,940) 128,162,940 ------------------------------------------------------------------------------------------------------------------------------- TAX-EXEMPT COMMERCIAL PAPER--4.88% 6,600 Puerto Rico Commonwealth Government Development Bank 01/11/05 to 1.450 to (cost--$6,600,000) 03/21/05 1.900 6,600,000 ------------------------------------------------------------------------------------------------------------------------------- Total Investments (cost--$134,762,940 which approximates cost for federal income tax purposes)--99.66% 134,762,940 ------------------------------------------------------------------------------------------------------------------------------- Other assets in excess of liabilities--0.34% 464,694 ------------------------------------------------------------------------------------------------------------------------------- Net Assets (applicable to 135,187,468 shares of beneficial interest outstanding equivalent to $1.00 per share)--100.00% $ 135,227,634 -------------------------------------------------------------------------------------------------------------------------------
(A) Variable rate demand notes are payable on demand. The interest rates shown are current rates as of December 31, 2004 and reset periodically. Weighted average maturity -- 18 days See accompanying notes to financial statements 49 UBS RMA STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED DECEMBER 31, 2004 (UNAUDITED) ---------------------------------- MONEY MARKET U.S. GOVERNMENT PORTFOLIO PORTFOLIO ------------------------------------------------------------------------------------------------- INVESTMENT INCOME: Interest $ 101,984,351 $ 9,795,872 Securities lending income 905 99,428 101,985,256 9,895,300 EXPENSES: Investment advisory and administration fees 30,198,687 2,588,173 Service fees -- 762,141 Transfer agency and related services fees 4,138,831 152,106 Custody and accounting 603,986 60,971 Reports and notices to shareholders 386,259 20,455 Insurance expense 145,123 34,848 State registration fees 102,868 26,837 Directors'/Trustees' fees 68,801 12,570 Professional fees 54,046 44,836 Interest expense -- -- Other expenses 65,989 10,535 35,764,590 3,713,472 Less: Fee waivers by investment advisor and administrator (42,779) -- Net expenses 35,721,811 3,713,472 Net investment income 66,263,445 6,181,828 Net realized losses from investment activities (1,916,210) (135,562) Net increase in net assets resulting from operations $ 64,347,235 $ 6,046,266
50
FOR THE SIX MONTHS ENDED DECEMBER 31, 2004 (UNAUDITED) ------------------------------------------------------------------- CALIFORNIA NEW YORK NEW JERSEY TAX-FREE MUNICIPAL MUNICIPAL MUNICIPAL FUND MONEY FUND MONEY FUND MONEY FUND ------------------------------------------------------------------- INVESTMENT INCOME: Interest $ 22,757,510 $ 5,585,692 $ 3,991,495 $ 1,050,547 Securities lending income -- -- -- -- 22,757,510 5,585,692 3,991,495 1,050,547 EXPENSES: Investment advisory and administration fees 6,678,345 1,821,408 1,375,339 356,015 Service fees 2,003,801 496,108 364,943 85,444 Transfer agency and related services fees 417,803 94,630 84,424 30,373 Custody and accounting 160,304 39,689 29,195 7,120 Reports and notices to shareholders 24,599 7,937 7,844 4,126 Insurance expense 22,240 7,851 6,922 1,576 State registration fees 43,775 13,793 12,799 9,214 Directors'/Trustees' fees 20,535 9,638 8,756 6,732 Professional fees 44,038 41,915 40,724 34,944 Interest expense 6,509 -- -- -- Other expenses 32,569 5,042 4,943 4,343 9,454,518 2,538,011 1,935,889 539,887 Less: Fee waivers by investment advisor and administrator -- -- -- -- Net expenses 9,454,518 2,538,011 1,935,889 539,887 Net investment income 13,302,992 3,047,681 2,055,606 510,660 Net realized losses from investment activities (175) (393) -- -- Net increase in net assets resulting from operations $ 13,302,817 $ 3,047,288 $ 2,055,606 $ 510,660
See accompanying notes to financial statements 51 STATEMENT OF CHANGES IN NET ASSETS
FOR THE SIX MONTHS ENDED FOR THE DECEMBER 31, 2004 YEAR ENDED (UNAUDITED) JUNE 30, 2004 ------------------------------------------------------------------------------------------------------- UBS RMA MONEY MARKET PORTFOLIO FROM OPERATIONS: Net investment income $ 66,263,445 $ 83,206,553 Net realized losses from investment activities (1,916,210) (4,885) Net increase in net assets resulting from operations 64,347,235 83,201,668 DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM: Net investment income (66,263,445) (83,206,553) Net realized gains from investment activities (2,152,500) (1,500,000) Total dividends and distributions to shareholders (68,415,945) (84,706,553) ------------------------------------------------------------------------------------------------------- Net decrease in net assets from capital share transactions (1,248,372,654) (9,397,084,053) Net decrease in net assets (1,252,441,364) (9,398,588,938) NET ASSETS: Beginning of period 12,434,285,651 21,832,874,589 End of period $ 11,181,844,287 $ 12,434,285,651 ------------------------------------------------------------------------------------------------------- Accumulated undistributed net investment income $ -- $ -- ------------------------------------------------------------------------------------------------------- UBS RMA U.S. GOVERNMENT PORTFOLIO FROM OPERATIONS: Net investment income $ 6,181,828 $ 8,973,965 Net realized losses from investment activities (135,562) (72,408) Net increase in net assets resulting from operations 6,046,266 8,901,557 DIVIDENDS TO SHAREHOLDERS FROM: Net investment income (6,181,828) (8,973,965) Net decrease in net assets from capital share transactions (51,093,973) (1,259,463,314) Net decrease in net assets (51,229,535) (1,259,535,722) NET ASSETS: Beginning of period 1,250,917,485 2,510,453,207 End of period $ 1,199,687,950 $ 1,250,917,485 ------------------------------------------------------------------------------------------------------- Accumulated undistributed net investment income $ -- $ -- -------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements 52
FOR THE SIX MONTHS ENDED FOR THE DECEMBER 31, 2004 YEAR ENDED (UNAUDITED) JUNE 30, 2004 ------------------------------------------------------------------------------------------------------- UBS RMA TAX-FREE FUND FROM OPERATIONS: Net investment income $ 13,302,992 $ 12,340,286 Net realized gain (loss) from investment activities (175) 2,947 Net increase in net assets resulting from operations 13,302,817 12,343,233 DIVIDENDS TO SHAREHOLDERS FROM: Net investment income (13,302,992) (12,340,286) Net increase (decrease) in net assets from capital share transactions 184,127,447 (302,916,671) Net increase (decrease) in net assets 184,127,272 (302,913,724) NET ASSETS: Beginning of period 2,935,936,306 3,238,850,030 End of period $ 3,120,063,578 $ 2,935,936,306 ------------------------------------------------------------------------------------------------------- Accumulated undistributed net investment income $ -- $ -- ------------------------------------------------------------------------------------------------------- UBS RMA CALIFORNIA MUNICIPAL MONEY FUND FROM OPERATIONS: Net investment income $ 3,047,681 $ 2,471,111 Net realized gain (loss) from investment activities (393) 9,210 Net increase in net assets resulting from operations 3,047,288 2,480,321 DIVIDENDS TO SHAREHOLDERS FROM: Net investment income (3,047,681) (2,471,111) Net increase (decrease) in net assets from beneficial interest transactions 77,485,446 (27,881,752) ------------------------------------------------------------------------------------------------------- Net increase (decrease) in net assets 77,485,053 (27,872,542) ------------------------------------------------------------------------------------------------------- NET ASSETS: Beginning of period 739,133,002 767,005,544 End of period $ 816,618,055 $ 739,133,002 ------------------------------------------------------------------------------------------------------- Accumulated undistributed net investment income $ -- $ -- -------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements 53
FOR THE SIX MONTHS ENDED FOR THE DECEMBER 31, 2004 YEAR ENDED (UNAUDITED) JUNE 30, 2004 ------------------------------------------------------------------------------------------------------- UBS RMA NEW YORK MUNICIPAL MONEY FUND FROM OPERATIONS: Net investment income $ 2,055,606 $ 1,684,747 Net realized loss from investment activities -- (2,350) Net increase in net assets resulting from operations 2,055,606 1,682,397 DIVIDENDS TO SHAREHOLDERS FROM: Net investment income (2,055,606) (1,684,747) Net decrease in net assets from beneficial interest transactions (4,561,165) (26,452,621) ------------------------------------------------------------------------------------------------------- Net decrease in net assets (4,561,165) (26,454,971) ------------------------------------------------------------------------------------------------------- NET ASSETS: Beginning of period 562,395,586 588,850,557 End of period $ 557,834,421 $ 562,395,586 ------------------------------------------------------------------------------------------------------- Accumulated undistributed net investment income $ -- $ -- ------------------------------------------------------------------------------------------------------- UBS RMA NEW JERSEY MUNICIPAL MONEY FUND FROM OPERATIONS: Net investment income $ 510,660 $ 232,135 Net realized loss from investment activities -- (253) Net increase in net assets resulting from operations 510,660 231,882 DIVIDENDS TO SHAREHOLDERS FROM: Net investment income (474,563) (232,135) Net decrease in net assets from beneficial interest transactions (2,248,752) (24,413,414) ------------------------------------------------------------------------------------------------------- Net decrease in net assets (2,212,655) (24,413,667) ------------------------------------------------------------------------------------------------------- NET ASSETS: Beginning of period 137,440,289 161,853,956 End of period $ 135,227,634 $ 137,440,289 ------------------------------------------------------------------------------------------------------- Accumulated undistributed net investment income $ 36,097 $ -- -------------------------------------------------------------------------------------------------------
See accompanying notes to financial statements 54 UBS RMA NOTES TO FINANCIAL STATEMENTS (UNAUDITED) 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"). In the normal course of business the Funds may enter into contracts that contain a variety of representations or that provide indemnification for certain liabilities. The Funds' maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Funds that have not yet occurred. However, the Funds have not had prior claims or losses pursuant to these contracts and expect the risk of loss to be remote. The preparation of financial statements in accordance with U.S. generally accepted accounting principles 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, unless a Fund's Board of Directors/Trustees (the "Board") determines that this does not represent fair 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. 55 REPURCHASE AGREEMENTS--The Money Market Portfolio and the 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 the 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 the Money Market Portfolio and/or the U.S. Government Portfolio and their 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 obligation to repurchase, the Money Market Portfolio and the 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 counterparty insolvency. If the seller (or seller's guarantor, if any) becomes insolvent, the Money Market Portfolio and the 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 the U.S. Government Portfolio may 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 U.S. generally accepted accounting principles. These "book/tax" differences are either considered temporary or permanent in nature. To the extent these differences are permanent in nature, such amounts are reclassified within the capital accounts based on their federal tax-basis treatment; temporary differences do not require reclassification. CONCENTRATION OF RISK The 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, country 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 its public bodies and 56 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. INVESTMENT ADVISOR AND ADMINISTRATOR Each Fund's Board has approved an investment advisory and administration contract ("Advisory Contract") for each Fund 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: All 0.50% U.S. GOVERNMENT PORTFOLIO, RMA CALIFORNIA, RMA NEW YORK AND RMA NEW JERSEY: 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 December 31, 2004, the Funds owed UBS Financial Services Inc. for investment advisory and administration fees as follows: Money Market Portfolio $ 4,948,471 U.S. Government Portfolio 444,782 RMA Tax-Free 1,161,524 RMA California 320,779 RMA New York 231,267 RMA New Jersey 57,987
For the period August 1, 2004 through December 31, 2004, UBS Financial Services Inc. voluntarily waived $42,779 of its investment advisory and administration fees for the Money Market Portfolio. 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 0.08% of the respective Fund's average daily net assets. 57 DISTRIBUTION PLAN UBS Global AM is the principal underwriter of each Fund's shares and has appointed UBS Financial Services Inc. as a dealer for the sale of the Funds' shares. Under the plans of distribution, U.S. Government Portfolio, RMA Tax-Free, RMA California and RMA New York 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 were charged by UBS Global AM for the similar services provided to the Money Market Portfolio. At December 31, 2004, the Funds owed UBS Global AM for such service fees as follows: U.S. Government Portfolio $ 131,436 RMA Tax-Free 350,225 RMA California 88,584 RMA New York 61,677 RMA New Jersey 13,918
TRANSFER AGENCY AND RELATED SERVICES FEES UBS Financial Services Inc. provides transfer agency related services to the Funds pursuant to a delegation of authority from PFPC Inc. ("PFPC"), the Funds' transfer agent, and was compensated for these services by PFPC, not the Funds. For the six months ended December 31, 2004, UBS Financial Services Inc. received from PFPC, not the Funds, total transfer agency related services fees as follows: Money Market Portfolio $ 2,529,567 U.S. Government Portfolio 89,018 RMA Tax-Free 265,270 RMA California 59,136 RMA New York 52,494 RMA New Jersey 17,315
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, U.S. government securities or irrevocable letters of credit 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 for lending its securities from interest or dividends earned on the cash, U.S. government securities or irrevocable letters of credit held as collateral, 58 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. UBS Securities LLC is the lending agent for each Fund. For the six months ended December 31, 2004, UBS Securities LLC earned $351 and $35,195 in compensation from the Money Market Portfolio and the U.S. Government Portfolio, respectively, as the Funds' lending agent. At December 31, 2004, the Money Market Portfolio and the U.S. Government Portfolio owed UBS Securities LLC $351 and $5,570 in compensation as the Funds' lending agent, respectively. At December 31, 2004, the Money Market Portfolio and the U.S. Government Portfolio had securities on loan having a market value of $99,750,000 and $498,380,287, respectively. The Money Market Portfolio's custodian held cash and cash equivalents as collateral for securities loaned of $102,125,000. The U.S. Government Portfolio's custodian held cash and cash equivalents as collateral for securities loaned of $167,813,039. In addition, the U.S. Government Portfolio's custodian held U.S. Government agency securities having an aggregate value of $341,980,921 as collateral for portfolio securities loaned as follows:
PRINCIPAL AMOUNT MATURITY INTEREST (000) DATES RATES VALUE ------------------------------------------------------------------------------------------------ Federal Home Loan $ 25,100 Mortgage Corporation 02/15/05 3.875% $ 25,506,595 Federal Home Loan 57,800 Mortgage Corporation 07/15/06 5.500 61,288,866 Federal Home Loan 22,450 Mortgage Corporation 09/15/09 6.625 25,518,848 Federal Home Loan 43,930 Mortgage Corporation 03/15/10 7.000 51,013,317 Federal Home Loan 10,000 Mortgage Corporation 11/15/13 4.875 10,309,190 Federal National 19,700 Mortgage Association 03/15/05 3.875 19,980,134 Federal National 14,350 Mortgage Association 01/15/09 5.250 15,482,186 Federal National 46,725 Mortgage Association 06/15/09 6.375 51,632,199 Federal National 49,150 Mortgage Association 09/15/09 6.625 55,776,256 Federal National 23,800 Mortgage Association 11/15/11 5.375 25,473,330 $ 341,980,921
RMA Tax-Free, RMA California, RMA New York and RMA New Jersey did not have any securities lending activity during the six months ended December 31, 2004. 59 BANK LINE OF CREDIT RMA Tax-Free participates with certain other funds managed, advised or sub-advised by UBS Global AM in a $100 million committed credit facility with State Street Bank and Trust Company ("Committed Credit Facility"), 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 shareholders and other temporary or emergency purposes. Under the Committed Credit Facility arrangement, RMA Tax-Free has agreed to pay commitment fees, pro rata, based on the relative asset size of the funds in the Committed Credit Facility. Interest will be charged to RMA Tax-Free at the overnight federal funds rate in effect at the time of borrowings, plus 0.50%. For the six months ended December 31, 2004, RMA Tax-Free had an average daily amount of borrowing outstanding under the Committed Credit Facility of $28,404,852 for 3 days with a related weighted average annualized interest rate of 2.75%, which resulted in $6,509 of interest expense. OTHER LIABILITIES AND COMPONENTS OF NET ASSETS At December 31, 2004, the Funds had the following liabilities outstanding:
PAYABLE FOR PAYABLE FOR DIVIDENDS PAYABLE TO INVESTMENTS SECURITIES LOAN OTHER ACCRUED PAYABLE CUSTODIAN PURCHASED LOANED PAYABLE EXPENSES* ------------------------------------------------------------------------------------------------------------------------------ Money Market Portfolio $ 2,699,618 $ 99,013 -- $ 102,125,000 -- $ 2,366,541 U.S. Government Portfolio 227,458 229,679 $ 59,948,850 167,813,039 -- 145,813 RMA Tax-Free 564,137 74,115 90,553,182 -- $ 79,643,557 220,002 RMA California 140,996 7,087 20,211,539 -- -- 75,982 RMA New York 89,514 4,934 24,225,709 -- -- 66,957 RMA New Jersey 20,803 1,160 -- -- -- 23,713
* Excludes investment advisory and administration fees and service fees. At December 31, 2004, the components of net assets for each of the Funds were as follows:
ACCUMULATED UNDISTRIBUTED ACCUMULATED ACCUMULATED NET INVESTMENT NET REALIZED TOTAL PAID IN CAPITAL INCOME GAIN (LOSS) NET ASSETS ----------------------------------------------------------------------------------------------------------------- Money Market Portfolio $ 11,181,995,038 -- $ (150,751) $ 11,181,844,287 U.S. Government Portfolio 1,199,879,026 -- (191,076) 1,199,687,950 RMA Tax-Free 3,120,061,647 -- 1,931 3,120,063,578 RMA California 816,594,893 -- 23,162 816,618,055 RMA New York 557,805,601 -- 28,820 557,834,421 RMA New Jersey 135,187,469 $ 36,097 4,068 135,227,634
60 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 a federal excise tax. The tax character of distributions paid to shareholders by the Money Market Portfolio and U.S. Government Portfolio during the six months ended December 31, 2004 and the fiscal year ended June 30, 2004 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 six months ended December 31, 2004 and the fiscal year ended June 30, 2004 was federal tax-exempt income. The components of accumulated earnings (deficit) on a tax basis for the current fiscal year will be determined after the Funds' fiscal year ending June 30, 2005. At June 30, 2004, the following Funds had net capital loss carryforwards available as reductions, to the extent provided in the regulations, of any future net realized capital gains and will expire as follows:
U.S. FISCAL YEAR GOVERNMENT RMA ENDING PORTFOLIO NEW JERSEY ----------------------------------------------------------------------- 2011 $ 66,251 $ 30 2012 54,167 -- $ 120,418 $ 30
During the fiscal year ended June 30, 2004, RMA California had a capital loss carryforward of $23,373 expire unutilized. In accordance with U.S. Treasury regulations, the following Funds have elected to defer realized capital losses arising after October 31, 2003. Such losses are treated for tax purposes as arising on July 1, 2004:
CAPITAL LOSSES ----------------------------------------------------------------------- Money Market Portfolio $ 4,885 U.S. Government Portfolio 18,241 RMA New York 2,350 RMA New Jersey 253
CAPITAL SHARE TRANSACTIONS There are 60 billion $0.001 par value shares of common stock authorized for the Money Market Portfolio, 10 billion $0.001 par value shares of common stock 61 authorized for the U.S. Government Portfolio and 20 billion $0.001 par value shares of common stock authorized for RMA Tax-Free. Transactions in capital shares, at $1.00 per share, were as follows:
FOR THE SIX MONTHS ENDED MONEY MARKET U.S. GOVERNMENT RMA DECEMBER 31, 2004: PORTFOLIO PORTFOLIO TAX-FREE ----------------------------------------------------------------------------------------------- Shares sold 51,014,915,074 3,961,767,132 11,527,670,127 Shares repurchased (52,328,550,937) (4,018,788,065) (11,356,266,740) Dividends reinvested 65,263,209 5,926,960 12,724,060 Net increase (decrease) in shares outstanding (1,248,372,654) (51,093,973) 184,127,447 FOR THE YEAR ENDED MONEY MARKET U.S. GOVERNMENT RMA JUNE 30, 2004: PORTFOLIO PORTFOLIO TAX-FREE ----------------------------------------------------------------------------------------------- Shares sold 119,594,725,186 11,984,380,341 23,161,302,122 Shares repurchased (129,074,837,028) (13,252,718,815) (23,476,221,727) Dividends reinvested 83,027,789 8,875,160 12,002,934 Net decrease in shares outstanding (9,397,084,053) (1,259,463,314) (302,916,671)
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:
FOR THE SIX MONTHS ENDED DECEMBER 31, 2004: RMA CALIFORNIA RMA NEW YORK RMA NEW JERSEY ----------------------------------------------------------------------------------------------- Shares sold 2,981,493,471 2,525,379,958 763,760,084 Shares repurchased (2,906,901,640) (2,531,882,873) (766,451,517) Dividends reinvested 2,893,615 1,941,750 442,681 Net increase (decrease) in shares outstanding 77,485,446 (4,561,165) (2,248,752) FOR THE YEAR ENDED JUNE 30, 2004: RMA CALIFORNIA RMA NEW YORK RMA NEW JERSEY ----------------------------------------------------------------------------------------------- Shares sold 5,672,323,669 4,774,526,945 1,216,937,843 Shares repurchased (5,702,620,022) (4,802,615,199) (1,241,578,236) Dividends reinvested 2,414,601 1,635,633 226,979 Net decrease in shares outstanding (27,881,752) (26,452,621) (24,413,414)
SUBSEQUENT EVENT On January 14, 2005, the Money Market Portfolio filed a preliminary proxy statement with the Securities and Exchange Commission. It is expected that the proxy statement will be finalized and mailed to shareholders later in 2005. The proxy statement seeks shareholder approval of (1) the implementation of a shareholder 62 service plan and (2) authorization for the Fund's Board to reorganize the Fund so that it can invest all of its assets in another fund that has substantially the same investment objectives and policies (this type of structure is commonly referred to as a "master/feeder" structure). A proxy statement describing the proposed changes in more detail and soliciting the approval of Money Market Portfolio's shareholders is expected to be distributed later in 2005. Shareholders should rely upon those proxy materials in making a determination on how to vote. 63 UBS RMA MONEY MARKET PORTFOLIO FINANCIAL HIGHLIGHTS Selected data for a share of common stock outstanding throughout each period is presented below:
FOR THE SIX MONTHS ENDED FOR THE YEARS ENDED JUNE 30, DECEMBER 31, 2004 -------------------------------------------------------------------------------- (UNAUDITED) 2004 2003 2002 2001 2000 --------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 Net investment income 0.006 0.005 0.010 0.022 0.055 0.052 Dividends from net investment income (0.006) (0.005) (0.010) (0.022) (0.055) (0.052) Distributions from net realized gains from investment activities (0.000)@ (0.000)@ -- -- -- -- TOTAL DIVIDENDS AND DISTRIBUTIONS (0.006) (0.005) (0.010) (0.022) (0.055) (0.052) NET ASSET VALUE, END OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 TOTAL INVESTMENT RETURN(1) 0.58% 0.51% 1.02% 2.25% 5.61% 5.29% RATIOS/ SUPPLEMENTAL DATA: Net assets, end of period (000's) $ 11,181,844 $ 12,434,286 $ 21,832,875 $ 22,768,982 $ 22,609,036 $ 15,821,189 Expenses to average net assets, net of fee waivers by advisor(2) 0.59%* 0.60% 0.61% 0.60% 0.59% 0.59% Net investment income to average net assets, net of fee waivers by advisor(2) 1.10%* 0.50% 1.02% 2.21% 5.42% 5.19%
* Annualized. (1) Total investment return is calculated assuming a $10,000 investment on the first day of each period reported, reinvestment of all dividends and other distributions, if any, at net asset value on the payable dates, and a sale at net asset value on the last day of each period reported. Total investment return for the period of less than one year has not been annualized. Returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions. (2) During the period August 1, 2004 through December 31, 2004, UBS Financial Services Inc. waived a portion of its advisory and administration fees. The ratios excluding the waiver are the same since the fee waiver represents less than 0.005%. @ Amount is less than $0.0005 per share. 64 UBS RMA U.S. GOVERNMENT PORTFOLIO FINANCIAL HIGHLIGHTS Selected data for a share of common stock outstanding throughout each period is presented below:
FOR THE SIX MONTHS ENDED FOR THE YEARS ENDED JUNE 30, DECEMBER 31, 2004 -------------------------------------------------------------------------------- (UNAUDITED) 2004 2003 2002 2001 2000 --------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 Net investment income 0.005 0.005 0.010 0.021 0.052 0.048 Dividends from net investment income (0.005) (0.005) (0.010) (0.021) (0.052) (0.048) NET ASSET VALUE, END OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 TOTAL INVESTMENT RETURN(1) 0.51% 0.48% 1.00% 2.12% 5.31% 4.88% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (000's) $ 1,199,688 $ 1,250,917 $ 2,510,453 $ 2,356,829 $ 2,000,303 $ 1,670,845 Expenses to average net assets 0.61%* 0.58% 0.56% 0.57% 0.57% 0.59% Net investment income to average net assets 1.01%* 0.48% 1.00% 2.06% 5.15% 4.81%
* Annualized. (1) Total investment return is calculated assuming a $10,000 investment on the first day of each period reported, reinvestment of all dividends and other distributions, if any, at net asset value on the payable dates, and a sale at net asset value on the last day of each period reported. Total investment return for the period of less than one year has not been annualized. Returns do not reflect the deduction of taxes that a shareholder would pay on Fund distributions. 65 UBS RMA TAX-FREE FUND INC. FINANCIAL HIGHLIGHTS Selected data for a share of common stock outstanding throughout each period is presented below:
FOR THE SIX MONTHS ENDED FOR THE YEARS ENDED JUNE 30, DECEMBER 31, 2004 -------------------------------------------------------------------------------- (UNAUDITED) 2004 2003 2002 2001 2000 --------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 Net investment income 0.004 0.004 0.007 0.012 0.032 0.031 Dividends from net investment income (0.004) (0.004) (0.007) (0.012) (0.032) (0.031) NET ASSET VALUE, END OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 TOTAL INVESTMENT RETURN(1) 0.42% 0.38% 0.67% 1.24% 3.28% 3.10% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (000's) $ 3,120,064 $ 2,935,936 $ 3,238,850 $ 3,255,520 $ 3,286,150 $ 2,593,878 Expenses to average net assets 0.59%* 0.60% 0.63% 0.60% 0.59% 0.60% Net investment income to average net assets 0.83%* 0.38% 0.67% 1.23% 3.20% 3.06%
* Annualized (1) Total investment return is calculated assuming a $10,000 investment on the first day of each period reported, reinvestment of all dividends and other distributions, if any, at net asset value on the payable dates, and a sale at net asset value on the last day of each period reported. Total investment return for the period of less than one year has not been annualized. Returns do not reflect the deduction of taxes that a shareholder could pay on Fund distributions. 66 UBS RMA CALIFORNIA MUNICIPAL MONEY FUND FINANCIAL HIGHLIGHTS Selected data for a share of beneficial interest outstanding throughout each period is presented below:
FOR THE SIX MONTHS ENDED FOR THE YEARS ENDED JUNE 30, DECEMBER 31, 2004 -------------------------------------------------------------------------------- (UNAUDITED) 2004 2003 2002 2001 2000 --------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 Net investment income 0.004 0.003 0.006 0.011 0.027 0.026 Dividends from net investment income (0.004) (0.003) (0.006) (0.011) (0.027) (0.026) NET ASSET VALUE, END OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 TOTAL INVESTMENT RETURN(1) 0.39% 0.31% 0.60% 1.10% 2.75% 2.59% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (000's) $ 816,618 $ 739,133 $ 767,006 $ 753,664 $ 759,961 $ 626,424 Expenses to average net assets, net of fee waivers by advisor(2) 0.64%* 0.65% 0.66% 0.65% 0.66% 0.65% Net investment income to average net assets, net of fee waivers by advisor(2) 0.77%* 0.31% 0.60% 1.09% 2.70% 2.56%
* Annualized. (1) Total investment return is calculated assuming a $10,000 investment on the first day of each period reported, reinvestment of all dividends and other distributions, if any, at net asset value on the payable dates, and a sale at net asset value on the last day of each period reported. Total investment return for the period of less than one year has not been annualized. Returns do not reflect the deduction of taxes that a shareholder could pay on Fund distributions. (2) During the years ended June 30, 2004 and June 30, 2003, UBS Financial Services Inc. waived a portion of its advisory and administration fees. The ratios excluding the waiver are the same since the fee waiver represents less than 0.005%. 67 UBS RMA NEW YORK MUNICIPAL MONEY FUND FINANCIAL HIGHLIGHTS Selected data for a share of beneficial interest outstanding throughout each period is presented below:
FOR THE SIX MONTHS ENDED FOR THE YEARS ENDED JUNE 30, DECEMBER 31, 2004 -------------------------------------------------------------------------------- (UNAUDITED) 2004 2003 2002 2001 2000 --------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE BEGINNING OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 Net investment income 0.004 0.003 0.006 0.011 0.030 0.029 Dividends from net investment income (0.004) (0.003) (0.006) (0.011) (0.030) (0.029) NET ASSET VALUE, END OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 TOTAL INVESTMENT RETURN(1) 0.36% 0.29% 0.62% 1.08% 3.04% 2.93% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (000's) $ 557,834 $ 562,396 $ 588,851 $ 559,341 $ 574,490 $ 437,253 Expenses to average net assets, net of fee waivers by advisor(2) 0.66%* 0.67% 0.67% 0.68% 0.69% 0.67% Net investment income to average net assets, net of fee waivers by advisor(2) 0.70%* 0.29% 0.62% 1.07% 2.95% 2.90%
* Annualized. (1) Total investment return is calculated assuming a $10,000 investment on the first day of each period reported, reinvestment of all dividends and other distributions, if any, at net asset value on the payable dates, and a sale at net asset value on the last day of each period reported. Total investment return for the period of less than one year has not been annualized. Returns do not reflect the deduction of taxes that a shareholder could pay on Fund distributions. (2) During the years ended June 30, 2004 and June 30, 2003, UBS Financial Services Inc. waived a portion of its advisory and administration fees. The ratios excluding the waiver are the same since the fee waiver represents less that 0.005%. 68 UBS RMA NEW JERSEY MUNICIPAL MONEY FUND FINANCIAL HIGHLIGHTS Selected data for a share of beneficial interest outstanding throughout each period is presented below:
FOR THE SIX MONTHS ENDED FOR THE YEARS ENDED JUNE 30, DECEMBER 31, 2004 -------------------------------------------------------------------------------- (UNAUDITED) 2004 2003 2002 2001 2000 --------------------------------------------------------------------------------------------------------------------------------- NET ASSET VALUE, BEGINNING OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 Net investment income 0.003 0.002 0.005 0.010 0.028 0.027 Dividends from net investment income (0.003) (0.002) (0.005) (0.010) (0.028) (0.027) NET ASSET VALUE, END OF PERIOD $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 TOTAL INVESTMENT RETURN(1) 0.35% 0.16% 0.51% 0.97% 2.86% 2.72% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (000's) $ 135,228 $ 137,440 $ 161,854 $ 128,500 $ 102,162 $ 93,276 Expenses to average net assets, net of fee waivers by advisor(2) 0.76%* 0.76% 0.73% 0.77% 0.79% 0.78% Net investment income to average net assets, net of fee waivers by advisor(2) 0.72%* 0.15% 0.50% 0.94% 2.77% 2.69%
* Annualized. (1) Total investment return is calculated assuming a $10,000 investment on the first day of each period reported, reinvestment of all dividends and other distributions, if any, at net asset value on the payable dates, and a sale at net asset value on the last day of each period reported. Total investment return for the period of less than one year has not been annualized. Returns do not reflect the deduction of taxes that a shareholder could pay on Fund distributions. (2) During the years ended June 30, 2004 and June 30, 2003, UBS Financial Services Inc. waived a portion of its advisory and administration fees. The ratios excluding the waiver are the same since the fee waiver represents less than 0.01%. 69 UBS RMA SUPPLEMENTAL INFORMATION (UNAUDITED) QUARTERLY FORM N-Q PORTFOLIO SCHEDULE Each Fund will file its complete schedule of portfolio holdings with the Securities and Exchange Commission ("SEC") for the first and third quarters of each fiscal year on Form N-Q. The Funds' Forms N-Q are available on the SEC's website at http://www.sec.gov. The Funds' Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, D.C. Information on the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. Additionally, you may obtain copies of Forms N-Q from the Funds upon request by calling 1-800-647-1568. 70 (This page intentionally left blank) (This page intentionally left blank) DIRECTORS/TRUSTEES Richard Q. Armstrong CHAIRMAN Margo N. Alexander David J. Beaubien Richard R. Burt Meyer Feldberg Carl W. Schafer William D. White PRINCIPAL OFFICERS Joseph A. Varnas PRESIDENT Mark F. Kemper VICE PRESIDENT AND SECRETARY Thomas Disbrow VICE PRESIDENT AND TREASURER Michael H. Markowitz VICE PRESIDENT (TAXABLE FUNDS) Debbie Baggett VICE PRESIDENT (TAX-FREE FUNDS) W. Douglas Beck VICE PRESIDENT 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 THE FINANCIAL INFORMATION INCLUDED HEREIN IS TAKEN FROM THE RECORDS OF THE FUNDS WITHOUT EXAMINATION BY INDEPENDENT AUDITORS WHO DO NOT EXPRESS AN OPINION THEREON. THIS REPORT IS NOT TO BE USED IN CONNECTION WITH THE OFFERING OF SHARES OF THE FUNDS UNLESS ACCOMPANIED OR PRECEDED BY AN EFFECTIVE PROSPECTUS. (C) 2005 UBS Global Asset Management (US) Inc. All rights reserved. [UBS LOGO] Presorted Standard US Postage PAID Smithtown, NY Permit 700 UBS GLOBAL ASSET MANAGEMENT 51 West 52nd Street New York, New York 10019 ITEM 2. CODE OF ETHICS. Form N-CSR disclosure requirement not applicable to this filing of a semi-annual report. ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT. Form N-CSR disclosure requirement not applicable to this filing of a semi-annual report. ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES. Form N-CSR disclosure requirement not applicable to this filing of a semi-annual report. ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS. Not applicable to the registrant. ITEM 6. SCHEDULE OF INVESTMENTS. Included as part of the report to shareholders filed under Item 1 of this form. ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES. Not applicable to the registrant. ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES. Not applicable to the registrant. ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS. Not applicable to the registrant. ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. The registrant's Board has established a Nominating and Corporate Governance Committee. The Nominating and Corporate Governance Committee will consider nominees recommended by shareholders if a vacancy occurs among those board members who are not "interested persons" as defined in Section 2(a)(19) of the Investment Company Act of 1940, as amended. In order to recommend a nominee, a shareholder should send a letter to the chairperson of the Nominating and Corporate Governance Committee, Professor Meyer Feldberg, care of the Secretary of the registrant at UBS Global Asset Management (US) Inc., 51 West 52nd Street, New York, New York 10019-6114, and indicate on the envelope "Nominating and Corporate Governance Committee." The shareholder's letter should state the nominee's name and should include the nominee's resume or curriculum vitae, and must be accompanied by a written consent of the individual to stand for election if nominated for the Board and to serve if elected by shareholders. ITEM 11. 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 12. EXHIBITS. (a) (1) Code of Ethics - Form N-CSR disclosure requirement not applicable to this filing of a semi-annual report. (a) (2) Certifications of principal executive officer and principal financial officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 is attached hereto as Exhibit EX-99.CERT. (a) (3) Written solicitation to purchase securities under rule 23c-1 under the Investment Company Act of 1940 sent or given during the period covered by the report by or on behalf of the registrant to 10 or more persons - not applicable to the registrant. (b) Certifications of principal executive officer and principal financial officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 is attached hereto as Exhibit EX-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: March 9, 2005 ------------- 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: March 9, 2005 ------------- By: /s/ Thomas Disbrow -------------------- Thomas Disbrow Treasurer Date: March 9, 2005 -------------