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: 811-03503
UBS RMA Money Fund Inc.
(Exact name of registrant as specified in charter)
1285 Avenue of the Americas, New York, New York 10019-6028
(Address of principal executive offices) (Zip code)
Mark F. Kemper, Esq.
UBS Asset Management
1285 Avenue of the Americas
New York, NY 10019-6028
(Name and address of agent for service)
Copy to:
Jack W. Murphy, Esq.
Dechert LLP
1900 K Street, N.W.
Washington, DC 20006
Registrant’s telephone number, including area code: 212-821 3000
Date of fiscal year end: June 30
Date of reporting period: December 31, 2015
Item 1. Reports to Stockholders.
| | |
| |
 | | Money Market Funds |
UBS RMA
Money Market Portfolio
U.S. Government Portfolio
Tax-Free Fund
California Municipal Money Fund
New York Municipal Money Fund
Semiannual Report
December 31, 2015
UBS RMA
February 16, 2016
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, UBS RMA California Municipal Money Fund and UBS RMA New York Municipal Money Fund (the “Funds”) for the six months ended December 31, 2015.
Performance
In mid-December 2015, the US Federal Reserve Board (the “Fed”) modestly raised the federal funds rate from a historically low range between 0% and 0.25% to a range between 0.25% and 0.50%. The federal funds rate or the “fed funds rate,” is the rate US banks charge one another for funds they borrow on an overnight basis. (For more details on the Fed’s actions, see below.) While the yields on a wide range of short-term investments moved higher over the period as the markets anticipated the Fed action as well as other potential future actions into 2016, yields still remain low by historical comparison. As a result, the Funds’ yields remained low during the reporting period.
As of December 31, 2015, after fee waivers/expense reimbursements, the Funds’ seven-day current yields were:
| • | | UBS RMA Money Market Portfolio: 0.01%, unchanged from June 30, 2015; |
| • | | UBS RMA U.S. Government Portfolio: 0.01%, unchanged from June 30, 2015; |
UBS RMA Money Market Portfolio, UBS RMA U.S. Government Portfolio
Investment goal
(both Portfolios):
Maximum current income
consistent with preservation of capital and liquidity
Portfolio Manager
(both Portfolios):
Robert Sabatino
UBS Asset Management (Americas) 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
Investment goal
(all three Funds):
Maximum current income
exempt from federal and/or a specific state’s personal income taxes consistent with preservation of capital and liquidity
1
UBS RMA
| • | | UBS RMA Tax-Free Fund: 0.01%, unchanged from June 30, 2015; |
| • | | UBS RMA California Municipal Money Fund: 0.01%, unchanged from June 30, 2015; and |
| • | | UBS RMA New York Municipal Money Fund: 0.01%, unchanged from June 30, 2015. |
(For more on each Fund’s performance, refer to “Performance and portfolio characteristics at a glance” beginning on page 11.)
Portfolio Managers
(all three Funds)
Elbridge T. Gerry III
Lisa M. DiPaolo UBS Asset Management (Americas) Inc.
Commencement:
Tax Free—October 4,
1982
California Municipal—
November 7, 1988
New York Municipal—
November 10, 1988
An interview with the Portfolio Managers
| Q. | How would you describe the economic environment during the reporting period? |
| A. | The US economy continued to expand, but the pace was uneven during the reporting period. The US Commerce Department reported that gross domestic product (“GDP”) expanded at a 3.9% seasonally adjusted annualized rate during the second quarter of 2015. GDP growth then dipped to 2.0% for the third quarter of the year. Finally, the Commerce Department’s initial estimate for fourth-quarter GDP growth was 0.7%.1 |
| Q. | How did the Fed react to the economic environment? |
| A. | The Fed took its initial step toward normalizing monetary policy during the reporting period. In December 2015, the Fed raised the fed funds rates for the first time in nearly a decade. The US central bank boosted the fed funds rate from a range of 0% to 0.25% to a range between 0.25% and 0.50%. In its official statement the Fed said, “The stance of monetary policy remains accommodative after this increase, thereby supporting further improvement in labor |
| 1 | Based on the Commerce Department’s initial estimate announced on January 29, 2016, after the reporting period had ended. |
2
UBS RMA
| | market conditions and a return to 2 percent inflation…The Committee expects that economic conditions will evolve in a manner that will warrant only gradual increases in the federal funds rate; the federal funds rate is likely to remain, for some time, below levels that are expected to prevail in the longer run.” |
| Q. | How was the UBS RMA Money Market Portfolio managed during the period? |
| A. | We tactically adjusted the Fund’s weighted average maturity (WAM) throughout the six-month review period. When the reporting period began, the Fund had a WAM of 41 days. The Fund’s WAM ended the period at 25 days. |
At the issuer level, we maintained a high level of diversification, investing in smaller positions with the goal of reducing risk and keeping the Fund highly liquid. To that end, we typically purchased up to 3% in single nongovernment issuers throughout the reporting period. (The Fund is generally able to hold up to 5% in any one issuer, subject to certain exceptions.)
In terms of securities, we significantly increased the Fund’s exposure to repurchase agreements. (Repurchase agreements are transactions in which the seller of a security agrees to buy it back at a predetermined time and price or upon demand.) Conversely, we reduced our allocation to commercial paper the most and more modestly pared exposures to certificates of deposit, short-term corporate obligations and non-US government agency obligations. The Fund’s level of investments in US government and agency obligations held steady.
| Q. | How was UBS RMA U.S. Government Portfolio managed during the period? |
| A. | During the period, the Fund’s WAM moved from 46 to 38 days, while maintaining the goal of keeping the Fund highly liquid. The Fund’s exposure to US government and agency obligations increased over the six months ended December 31, 2015. In contrast, the Fund’s allocation to repurchase agreements declined over the period. |
3
UBS RMA
| Q. | How were UBS RMA Tax-Free Fund, UBS RMA California Municipal Money Fund and UBS RMA New York Municipal Money Fund managed during the period? |
| A. | Fundamentals in the municipal market generally improved during the reporting period. This was driven, in part, by consistent revenue growth in state and local credits, led by steady economic recovery and strong job gains. As a result of robust revenue growth, sound fiscal management and conservative budgeting, California and Texas did not need to issue short-term debt obligations to meet cash flow needs. This is especially significant given that these states have consistently issued billions of dollars in short-term notes over past decades. |
The municipal market continued to be challenged with negative credit headlines stemming from various local and state unfunded pension and other post-employment benefit liabilities, as well as ongoing implications stemming from previous downgrades in Puerto Rico, Illinois and Chicago-related credits. Given continued low interest rates, questions about future Fed monetary policy and uncertainties regarding the impact of money market fund regulatory changes and related matters, we continued to emphasize liquidity and credit quality in the Funds’ portfolios. Investment decisions remained focused on the underlying credit quality of individual securities first and, secondarily, on yield.
The WAM for UBS RMA Tax-Free Fund rose from 12 days to 14 days during the reporting period, whereas the WAM for UBS RMA California Municipal Money Fund moved from 10 to 14 days, and UBS RMA New York Municipal Money Fund’s WAM increased from nine to 14 days. We actively sought opportunities to increase the WAM for UBS RMA New York Municipal Money Fund and UBS RMA California Municipal Money Fund by selectively purchasing high quality fixed rate securities. However, there were relatively limited opportunities to do so given the lack of supply in the market for variable rate demand notes (“VRDNs”) that met our investment criteria, in addition to competitive market conditions.
4
UBS RMA
In order to maintain liquidity, the Funds maintained sizable allocations to VRDNs with yields that reset on a daily or weekly basis. We also emphasized select investments in commercial paper with 30- to 90-day maturities, given its yield advantage as compared to VRDNs. Additionally, we continued to look for opportunities to invest in first maturities of large bond deals. As part of our defensive position during a low-supply VRDN market, we added limited exposure to taxable US government obligations in order to maintain yields and remain invested. Finally, we continued to have significant allocations to both state and local general obligation securities that met our credit criteria, in addition to higher quality revenue bonds.
| Q. | What factors do you believe will affect the Funds over the coming months? |
| A. | In prior reports to shareholders, we discussed the US Securities and Exchange Commission’s adoption of new regulations for money market funds. We noted that there was a transition period ranging until October 2016 for the most significant changes. These regulatory changes impact key aspects of how money market funds are structured and operate. |
Later this year, but before the October 2016 compliance deadline, the Funds may no longer be offered as sweep funds as part of certain distributor platforms. As a result, the Funds’ shareholders would be transitioned to an alternative money market sweep fund. Shareholders will receive additional information at a future time in advance of these changes.
Turning to the economy, in our view, the US economy should continue to grow in 2016. That being said, we feel the expansion will be fairly moderate and inflation will remain largely benign. Against this backdrop, we believe the Fed will take a deliberate pace in terms of normalizing monetary policy. We anticipate continuing to manage the Funds focusing on risk and liquidity.
5
UBS RMA
We thank you for your continued support and welcome any comments or questions you may have. For additional information on the UBS Funds, please contact your Financial Advisor, or visit us at www.ubs.com/am-us.**
| | |
 | |  |
Mark E. Carver President UBS RMA Money Fund Inc. (UBS RMA Money Market Portfolio and UBS RMA U.S. Government Portfolio) UBS RMA Tax-Free Fund Inc. UBS Managed Municipal Trust (UBS RMA California Municipal Money Fund and UBS RMA New York Municipal Money Fund) Managing Director UBS Asset Management (Americas) Inc. | | Elbridge T. Gerry III Portfolio Manager UBS RMA Tax-Free Fund Inc. UBS RMA California Municipal Money Fund UBS RMA New York Municipal Money Fund Managing Director UBS Asset Management (Americas) Inc. |
| ** | Mutual funds are sold by prospectus only. You should read it carefully and consider a fund’s investment objectives, risks, charges, expenses and other important information contained in the prospectus before investing. Prospectuses for most of our funds can be obtained from your financial advisor, by calling UBS Funds at 800-647 1568 or by visiting our Web site at www.ubs.com/am-us. |
6
UBS RMA
| | |
| |  |
Lisa M. DiPaolo Portfolio Manager UBS RMA Tax-Free Fund Inc. UBS RMA California Municipal Money Fund UBS RMA New York Municipal Money Fund Director UBS Asset Management (Americas) Inc. | | Robert Sabatino Portfolio Manager UBS RMA Money Market Portfolio UBS RMA U.S. Government Portfolio Managing Director UBS Asset Management (Americas) Inc. |
This letter is intended to assist shareholders in understanding how the Funds performed during the six months ended December 31, 2015. The views and opinions in the letter were current as of February 16, 2016. They are not guarantees of future performance or investment results and should not be taken as investment advice.
Investment decisions reflect a variety of factors, and we reserve the right to change our views about individual securities, sectors and markets at any time. As a result, the views expressed should not be relied upon as a forecast of the Funds’ future investment intent. We encourage you to consult your financial advisor regarding your personal investment program.
7
UBS RMA
Understanding your Fund’s expenses (unaudited)
As a shareholder of the Funds*, you incur ongoing costs, including management fees, service fees (12b-1 or non-12b-1 fees) 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, 2015 to December 31, 2015.
Actual expenses
The first line in the following table 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 “Expenses paid during period” to estimate the expenses you paid on your account during this period.
Hypothetical example for comparison purposes
The second line in the following table 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 that Fund’s actual return. The hypothetical account values and expenses may not be used to estimate your 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.
| * | Collectively refers to UBS RMA Money Market Portfolio, UBS RMA U.S. Government Portfolio, UBS RMA Tax-Free Fund, UBS RMA California Municipal Money Fund and UBS RMA New York Municipal Money Fund. |
8
UBS RMA
Understanding your Fund’s expenses (unaudited) (continued)
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, exchange fees. In addition, if those transactional costs were included, your costs for those other funds would have been higher.
The examples do not reflect Resource Management Account (RMA) Program, Business Services Account BSA Program or other similar program fees as these are external to the Funds and relate to those programs.
UBS RMA Money Market Portfolio
| | | | | | | | | | | | | | | | |
| | | Beginning
account value
July 1, 2015 | | | Ending
account value1
December 31,
2015 | | | Expenses paid
during period2
07/01/15 to
12/31/15 | | | Expense
ratio
during the
period | |
| Actual | | $ | 1,000.00 | | | $ | 1,000.10 | | | $ | 1.01 | | | | 0.20 | % |
| Hypothetical (5% annual return before expenses) | | | 1,000.00 | | | | 1,024.13 | | | | 1.02 | | | | 0.20 | |
UBS RMA U.S. Government Portfolio
| | | | | | | | | | | | | | | | |
| | | Beginning
account value
July 1, 2015 | | | Ending
account value1
December 31,
2015 | | | Expenses paid
during period2
07/01/15 to
12/31/15 | | | Expense
ratio
during the
period | |
| Actual | | $ | 1,000.00 | | | $ | 1,000.10 | | | $ | 0.65 | | | | 0.13 | % |
| Hypothetical (5% annual return before expenses) | | | 1,000.00 | | | | 1,024.48 | | | | 0.66 | | | | 0.13 | |
| 1 | “Actual—Ending account value” may or may not be reflective of a shareholder’s actual investment experience during periods of very low interest rates. While the Fund declares dividends daily and pays them monthly, the amounts are rounded to the nearest $0.01 on a daily basis with respect to each investor’s account. As a result, investors whose Fund account balances earn daily dividends that total less than one half a cent on any given day will not accrue any dividends on that day. |
| 2 | Expenses are equal to the Fund’s annualized net expense ratio, multiplied by the average account value over the period, multiplied by 184 divided by 366 (to reflect the one-half year period). |
9
UBS RMA
Understanding your Fund’s expenses (unaudited) (concluded)
UBS RMA Tax-Free Fund
| | | | | | | | | | | | | | | | |
| | | Beginning
account value
July 1, 2015 | | | Ending
account value1
December 31,
2015 | | | Expenses paid
during period2
07/01/15 to
12/31/15 | | | Expense
ratio
during the
period | |
| Actual | | $ | 1,000.00 | | | $ | 1,000.10 | | | $ | 0.10 | | | | 0.02 | % |
| Hypothetical (5% annual return before expenses) | | | 1,000.00 | | | | 1,025.04 | | | | 0.10 | | | | 0.02 | |
UBS RMA California Municipal Money Fund
| | | | | | | | | | | | | | | | |
| | | Beginning
account value
July 1, 2015 | | | Ending
account value1
December 31,
2015 | | | Expenses paid
during period2
07/01/15 to
12/31/15 | | | Expense
ratio
during the
period | |
| Actual | | $ | 1,000.00 | | | $ | 1,000.10 | | | $ | 0.05 | | | | 0.01 | % |
| Hypothetical (5% annual return before expenses) | | | 1,000.00 | | | | 1,025.09 | | | | 0.05 | | | | 0.01 | |
UBS RMA New York Municipal Money Fund
| | | | | | | | | | | | | | | | |
| | | Beginning
account value
July 1, 2015 | | | Ending
account value1
December 31,
2015 | | | Expenses paid
during period2
07/01/15 to
12/31/15 | | | Expense
ratio
during the
period | |
| Actual | | $ | 1,000.00 | | | $ | 1,000.10 | | | $ | 0.05 | | | | 0.01 | % |
| Hypothetical (5% annual return before expenses) | | | 1,000.00 | | | | 1,025.09 | | | | 0.05 | | | | 0.01 | |
| 1 | “Actual—Ending account value” may or may not be reflective of a shareholder’s actual investment experience during periods of very low interest rates. While the Fund declares dividends daily and pays them monthly, the amounts are rounded to the nearest $0.01 on a daily basis with respect to each investor’s account. As a result, investors whose Fund account balances earn daily dividends that total less than one half a cent on any given day will not accrue any dividends on that day. |
| 2 | Expenses are equal to the Fund’s annualized net expense ratio, multiplied by the average account value over the period, multiplied by 184 divided by 366 (to reflect the one-half year period). |
10
UBS RMA
Performance and portfolio characteristics at a glance (unaudited)
UBS RMA Money Market Portfolio
| | | | | | | | | | | | |
| | | |
| Yields and characteristics | | 12/31/15 | | | 06/30/15 | | | 12/31/14 | |
Seven-day current yield after fee waivers
and/or expense reimbursements1 | | | 0.01 | % | | | 0.01 | % | | | 0.01 | % |
| Seven-day effective yield after fee waivers and/or expense reimbursements1 | | | 0.01 | | | | 0.01 | | | | 0.01 | |
| Seven-day current yield before fee waivers and/or expense reimbursements1 | | | (0.23 | ) | | | (0.37 | ) | | | (0.40 | ) |
| Seven-day effective yield before fee waivers and/or expense reimbursements1 | | | (0.23 | ) | | | (0.37 | ) | | | (0.40 | ) |
| Weighted average maturity2 | | | 25 days | | | | 41 days | | | | 46 days | |
| Net assets (bn) | | | $4.7 | | | | $4.2 | | | | $5.1 | |
| Portfolio composition3 | | 12/31/15 | | | 06/30/15 | | | 12/31/14 | |
| Repurchase agreements | | | 46.7 | % | | | 26.1 | % | | | 21.8 | % |
| Commercial paper | | | 21.7 | | | | 36.6 | | | | 40.9 | |
| US government and agency obligations | | | 15.7 | | | | 15.7 | | | | 16.1 | |
| Certificates of deposit | | | 14.2 | | | | 18.7 | | | | 17.3 | |
| Non-US government agency obligations | | | 0.9 | | | | 1.0 | | | | 0.9 | |
| Other short-term corporate obligations | | | 0.8 | | | | 1.9 | | | | 3.0 | |
| Other assets less liabilities | | | (0.0 | )4 | | | (0.0 | )4 | | | (0.0 | )4 |
| Total | | | 100.0 | % | | | 100.0 | % | | | 100.0 | % |
| 1 | Yields will fluctuate and reflect fee waivers and/or expense reimbursements, if any, unless otherwise noted. Performance data quoted represents past performance. Past performance does not guarantee future results. Current performance may be higher or lower than the performance data quoted. |
| 2 | The Fund’s portfolio is actively managed and its weighted average maturity will differ over time. |
| 3 | Weightings represent percentages of the Fund’s net assets as of the dates indicated. The Fund’s portfolio is actively managed and its composition will vary over time. |
| 4 | Represents less than 0.05% of net assets as of the date indicated. |
An investment in an RMA fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although each RMA fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in an RMA fund.
Not FDIC Insured. May lose value. No bank guarantee.
11
UBS RMA
Performance and portfolio characteristics at a glance (unaudited) (continued)
UBS RMA U.S. Government Portfolio
| | | | | | | | | | | | |
| | | |
| Yields and characteristics | | 12/31/15 | | | 06/30/15 | | | 12/31/14 | |
Seven-day current yield after fee waivers
and/or expense reimbursements1 | | | 0.01 | % | | | 0.01 | % | | | 0.01 | % |
| Seven-day effective yield after fee waivers and/or expense reimbursements1 | | | 0.01 | | | | 0.01 | | | | 0.01 | |
| Seven-day current yield before fee waivers and/or expense reimbursements1 | | | (0.27 | ) | | | (0.46 | ) | | | (0.47 | ) |
| Seven-day effective yield before fee waivers and/or expense reimbursements1 | | | (0.27 | ) | | | (0.46 | ) | | | (0.47 | ) |
| Weighted average maturity2 | | | 38 days | | | | 46 days | | | | 36 days | |
| Net assets (bn) | | | $1.6 | | | | $1.6 | | | | $1.9 | |
| Portfolio composition3 | | 12/31/15 | | | 06/30/15 | | | 12/31/14 | |
| Repurchase agreements | | | 51.7 | % | | | 57.7 | % | | | 50.9 | % |
| US government and agency obligations | | | 48.2 | | | | 42.3 | | | | 49.1 | |
| Other assets less liabilities | | | 0.1 | | | | (0.0 | )4 | | | 0.0 | 4 |
| Total | | | 100.0 | % | | | 100.0 | % | | | 100.0 | % |
| 1 | Yields will fluctuate and reflect fee waivers and/or expense reimbursements, if any, unless otherwise noted. Performance data quoted represents past performance. Past performance does not guarantee future results. Current performance may be higher or lower than the performance data quoted. |
| 2 | The Fund’s portfolio is actively managed and its weighted average maturity will differ over time. |
| 3 | Weightings represent percentages of the Fund’s net assets as of the dates indicated. The Fund’s portfolio is actively managed and its composition will vary over time. |
| 4 | Represents less than 0.05% of net assets as of the date indicated. |
An investment in an RMA fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although each RMA fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in an RMA fund.
Not FDIC Insured. May lose value. No bank guarantee.
12
UBS RMA
Performance and portfolio characteristics at a glance (unaudited) (continued)
UBS RMA Tax-Free Fund
| | | | | | | | | | | | |
| | | |
| Yields and characteristics | | 12/31/15 | | | 06/30/15 | | | 12/31/14 | |
Seven-day current yield after fee waivers
and/or expense reimbursements1 | | | 0.01 | % | | | 0.01 | % | | | 0.01 | % |
| Seven-day effective yield after fee waivers and/or expense reimbursements1 | | | 0.01 | | | | 0.01 | | | | 0.01 | |
| Seven-day current yield before fee waivers and/or expense reimbursements1 | | | (0.56 | ) | | | (0.53 | ) | | | (0.54 | ) |
| Seven-day effective yield before fee waivers and/or expense reimbursements1 | | | (0.56 | ) | | | (0.53 | ) | | | (0.54 | ) |
| Weighted average maturity2 | | | 14 days | | | | 12 days | | | | 26 days | |
| Net assets (bn) | | | $3.0 | | | | $2.8 | | | | $3.0 | |
| Portfolio composition3 | | 12/31/15 | | | 06/30/15 | | | 12/31/14 | |
| Municipal bonds and notes | | | 76.0 | % | | | 84.0 | % | | | 87.9 | % |
| Tax-exempt commercial paper | | | 16.1 | | | | 13.3 | | | | 11.1 | |
| US government obligations | | | 6.1 | | | | — | | | | — | |
| Other assets less liabilities | | | 1.8 | | | | 2.7 | | | | 1.0 | |
| Total | | | 100.0 | % | | | 100.0 | % | | | 100.0 | % |
| 1 | Yields will fluctuate and reflect fee waivers and/or expense reimbursements, if any, unless otherwise noted. Performance data quoted represents past performance. Past performance does not guarantee future results. Current performance may be higher or lower than the performance data quoted. |
| 2 | The Fund’s portfolio is actively managed and its weighted average maturity will differ over time. |
| 3 | Weightings represent percentages of the Fund’s net assets as of the dates indicated. The Fund’s portfolio is actively managed and its composition will vary over time. |
An investment in an RMA fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although each RMA fund seeks to preserve the value of your investment at $1.00 per share it is possible to lose money by investing in an RMA fund.
Not FDIC Insured. May lose value. No bank guarantee.
13
UBS RMA
Performance and portfolio characteristics at a glance (unaudited) (continued)
UBS RMA California Municipal Money Fund
| | | | | | | | | | | | |
| | | |
| Yields and characteristics | | 12/31/15 | | | 06/30/15 | | | 12/31/14 | |
Seven-day current yield after fee waivers
and/or expense reimbursements1 | | | 0.01 | % | | | 0.01 | % | | | 0.01 | % |
| Seven-day effective yield after fee waivers and/or expense reimbursements1 | | | 0.01 | | | | 0.01 | | | | 0.01 | |
| Seven-day current yield before fee waivers and/or expense reimbursements1 | | | (0.56 | ) | | | (0.58 | ) | | | (0.59 | ) |
| Seven-day effective yield before fee waivers and/or expense reimbursements1 | | | (0.56 | ) | | | (0.58 | ) | | | (0.59 | ) |
| Weighted average maturity2 | | | 14 days | | | | 10 days | | | | 23 days | |
| Net assets (mm) | | | $1,040.4 | | | | $749.3 | | | | $836.8 | |
| Portfolio composition3 | | 12/31/15 | | | 06/30/15 | | | 12/31/14 | |
| Municipal bonds and notes | | | 61.4 | % | | | 82.0 | % | | | 89.3 | % |
| US government obligations | | | 23.8 | | | | — | | | | — | |
| Tax-exempt commercial paper | | | 12.4 | | | | 13.4 | | | | 10.1 | |
| Other assets less liabilities | | | 2.4 | | | | 4.6 | | | | 0.6 | |
| Total | | | 100.0 | % | | | 100.0 | % | | | 100.0 | % |
| 1 | Yields will fluctuate and reflect fee waivers and/or expense reimbursements, if any, unless otherwise noted. Performance data quoted represents past performance. Past performance does not guarantee future results. Current performance may be higher or lower than the performance data quoted. |
| 2 | The Fund’s portfolio is actively managed and its weighted average maturity will differ over time. |
| 3 | Weightings represent percentages of the Fund’s net assets as of the dates indicated. The Fund’s portfolio is actively managed and its composition will vary over time. |
An investment in an RMA fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although each RMA fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in an RMA fund.
Not FDIC Insured. May lose value. No bank guarantee.
14
UBS RMA
Performance and portfolio characteristics at a glance (unaudited) (concluded)
UBS RMA New York Municipal Money Fund
| | | | | | | | | | | | |
| | | |
| Yields and characteristics | | 12/31/15 | | | 06/30/15 | | | 12/31/14 | |
Seven-day current yield after fee waivers
and/or expense reimbursements1 | | | 0.01 | % | | | 0.01 | % | | | 0.01 | % |
| Seven-day effective yield after fee waivers and/or expense reimbursements1 | | | 0.01 | | | | 0.01 | | | | 0.01 | |
| Seven-day current yield before fee waivers and/or expense reimbursements1 | | | (0.61 | ) | | | (0.58 | ) | | | (0.60 | ) |
| Seven-day effective yield before fee waivers and/or expense reimbursements1 | | | (0.61 | ) | | | (0.58 | ) | | | (0.60 | ) |
| Weighted average maturity2 | | | 14 days | | | | 9 days | | | | 22 days | |
| Net assets (mm) | | | $771.3 | | | | $649.6 | | | | $738.7 | |
| Portfolio composition3 | | 12/31/15 | | | 06/30/15 | | | 12/31/14 | |
| Municipal bonds and notes | | | 77.9 | % | | | 92.4 | % | | | 92.7 | % |
| US government obligations | | | 16.1 | | | | — | | | | — | |
| Tax-exempt commercial paper | | | 3.2 | | | | 7.2 | | | | 7.2 | |
| Other assets less liabilities | | | 2.8 | | | | 0.4 | | | | 0.1 | |
| Total | | | 100.0 | % | | | 100.0 | % | | | 100.0 | % |
| 1 | Yields will fluctuate and reflect fee waivers and/or expense reimbursements, if any, unless otherwise noted. Performance data quoted represents past performance. Past performance does not guarantee future results. Current performance may be higher or lower than the performance data quoted. |
| 2 | The Fund’s portfolio is actively managed and its weighted average maturity will differ over time. |
| 3 | Weightings represent percentages of the Fund’s net assets as of the dates indicated. The Fund’s portfolio is actively managed and its composition will vary over time. |
An investment in an RMA fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although each RMA fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in an RMA fund.
Not FDIC Insured. May lose value. No bank guarantee.
15
UBS RMA Money Market Portfolio
Statement of net assets—December 31, 2015 (unaudited)
| | | | | | | | |
| Security description | | Face
amount | | | Value | |
| US government and agency obligations—15.68% | | | | | |
Federal Farm Credit Bank | | | | | | | | |
0.120%, due 01/28/161 | | $ | 20,000,000 | | | $ | 19,998,200 | |
0.340%, due 05/18/161 | | | 50,000,000 | | | | 49,934,833 | |
Federal Home Loan Bank | | | | | | | | |
0.360%, due 02/04/161 | | | 25,000,000 | | | | 24,991,500 | |
0.371%, due 02/05/161 | | | 50,000,000 | | | | 49,982,014 | |
0.370%, due 02/12/161 | | | 20,000,000 | | | | 19,991,367 | |
0.180%, due 02/16/161 | | | 45,000,000 | | | | 44,989,650 | |
0.325%, due 02/16/161 | | | 75,000,000 | | | | 74,968,854 | |
0.250%, due 03/10/161 | | | 33,000,000 | | | | 32,984,188 | |
0.270%, due 03/24/161 | | | 115,000,000 | | | | 114,928,412 | |
0.260%, due 04/11/161 | | | 115,000,000 | | | | 114,916,114 | |
US Treasury Bill
0.371%, due 06/02/161 | | | 50,000,000 | | | | 49,921,375 | |
US Treasury Note | | | | | | | | |
0.375%, due 01/15/16 | | | 85,000,000 | | | | 85,006,170 | |
2.000%, due 04/30/16 | | | 50,000,000 | | | | 50,289,236 | |
Total US government and agency obligations
(cost—$732,901,913) | | �� | | 732,901,913 | |
| Certificates of deposit—14.19% | | | | | |
| Banking-non-US—12.33% | | | | | | | | |
Bank of Montreal | | | | | | | | |
0.497%, due 01/13/162 | | | 47,000,000 | | | | 47,000,000 | |
0.330%, due 02/23/16 | | | 60,000,000 | | | | 60,000,000 | |
Bank of Tokyo-Mitsubishi UFJ Ltd.
0.300%, due 01/06/16 | | | 80,000,000 | | | | 80,000,000 | |
Canadian Imperial Bank of Commerce
0.511%, due 01/11/162 | | | 30,000,000 | | | | 30,004,086 | |
KBC Bank N.V.
0.290%, due 01/05/16 | | | 75,000,000 | | | | 75,000,000 | |
Mizuho Bank Ltd. | | | | | | | | |
0.290%, due 01/20/16 | | | 30,000,000 | | | | 30,000,000 | |
0.350%, due 02/16/16 | | | 35,000,000 | | | | 34,995,521 | |
0.430%, due 03/01/16 | | | 47,000,000 | | | | 47,000,000 | |
Natixis
0.321%, due 01/04/162 | | | 20,000,000 | | | | 20,000,000 | |
16
UBS RMA Money Market Portfolio
Statement of net assets—December 31, 2015 (unaudited)
| | | | | | | | |
| Security description | | Face
amount | | | Value | |
| Certificates of deposit—(concluded) | | | | | | | | |
| Banking-non-US—(concluded) | | | | | | | | |
Norinchukin Bank Ltd.
0.400%, due 01/28/16 | | $ | 75,000,000 | | | $ | 75,000,000 | |
Rabobank Nederland NV
0.430%, due 04/13/16 | | | 25,000,000 | | | | 25,000,000 | |
Sumitomo Mitsui Banking Corp.
0.220%, due 01/06/16 | | | 25,000,000 | | | | 25,000,000 | |
Svenska Handelsbanken AB | | | | | | | | |
0.505%, due 03/10/16 | | | 10,000,000 | | | | 10,002,003 | |
0.465%, due 04/26/16 | | | 17,000,000 | | | | 17,000,273 | |
| | | | | 576,001,883 | |
| Banking-US—1.86% | | | | | | | | |
Citibank N.A. | | | | | | | | |
0.260%, due 01/07/16 | | | 45,000,000 | | | | 45,000,000 | |
0.300%, due 02/10/16 | | | 42,000,000 | | | | 42,000,000 | |
| | | | | | | | 87,000,000 | |
Total certificates of deposit (cost—$663,001,883) | | | | 663,001,883 | |
| Commercial paper1—21.75% | | | | | | | | |
| Asset backed-miscellaneous—15.21% | | | | | | | | |
Albion Capital Corp. | | | | | | | | |
0.400%, due 01/14/16 | | | 33,000,000 | | | | 32,995,233 | |
0.570%, due 02/22/16 | | | 17,513,000 | | | | 17,498,581 | |
Barton Capital LLC
0.572%, due 01/29/162 | | | 40,000,000 | | | | 40,000,000 | |
Gotham Funding Corp. | | | | | | | | |
0.320%, due 01/04/16 | | | 19,000,000 | | | | 18,999,493 | |
0.280%, due 01/08/16 | | | 25,600,000 | | | | 25,598,606 | |
Jupiter Securitization Co. LLC
0.500%, due 01/20/16 | | | 50,000,000 | | | | 49,986,806 | |
Liberty Street Funding LLC
0.440%, due 01/11/16 | | | 45,000,000 | | | | 44,994,500 | |
Manhattan Asset Funding Co. LLC | | | | | | | | |
0.280%, due 01/11/16 | | | 40,000,000 | | | | 39,996,889 | |
0.380%, due 01/13/16 | | | 20,000,000 | | | | 19,997,467 | |
0.500%, due 02/04/16 | | | 63,000,000 | | | | 62,970,250 | |
17
UBS RMA Money Market Portfolio
Statement of net assets—December 31, 2015 (unaudited)
| | | | | | | | |
| Security description | | Face
amount | | | Value | |
| Commercial paper1—(continued) | | | | | | | | |
| Asset backed-miscellaneous—(concluded) | | | | | |
Old Line Funding LLC | | | | | | | | |
0.451%, due 01/04/162 | | $ | 35,000,000 | | | $ | 35,000,000 | |
0.600%, due 03/10/16 | | | 50,000,000 | | | | 49,942,500 | |
0.480%, due 04/05/16 | | | 38,000,000 | | | | 37,951,867 | |
Regency Markets No. 1 LLC | | | | | | | | |
0.420%, due 01/15/16 | | | 30,000,000 | | | | 29,995,100 | |
0.420%, due 01/20/16 | | | 25,000,000 | | | | 24,994,459 | |
Thunder Bay Funding LLC | | | | | | | | |
0.480%, due 03/03/16 | | | 25,000,000 | | | | 24,979,333 | |
0.480%, due 04/07/16 | | | 57,000,000 | | | | 56,926,280 | |
Versailles Commercial Paper LLC
0.482%, due 01/21/162 | | | 38,000,000 | | | | 38,000,000 | |
Victory Receivables Corp.
0.280%, due 01/05/16 | | | 60,000,000 | | | | 59,998,133 | |
| | | | | 710,825,497 | |
| Banking-non-US—5.90% | | | | | | | | |
Bank of Nova Scotia
0.260%, due 02/01/16 | | | 40,000,000 | | | | 39,991,044 | |
BPCE SA
0.340%, due 01/05/16 | | | 10,000,000 | | | | 9,999,622 | |
DBS Bank Ltd.
0.280%, due 02/02/16 | | | 30,000,000 | | | | 29,992,533 | |
Erste Abwicklungsanstalt | | | | | | | | |
0.310%, due 01/05/16 | | | 25,000,000 | | | | 24,999,139 | |
0.250%, due 01/08/16 | | | 10,000,000 | | | | 9,999,514 | |
National Australia Bank Ltd.
0.415%, due 01/08/16 | | | 45,000,000 | | | | 44,996,369 | |
Nordea Bank AB | | | | | | | | |
0.305%, due 02/10/16 | | | 43,000,000 | | | | 42,985,428 | |
0.320%, due 02/16/16 | | | 33,000,000 | | | | 32,986,507 | |
Westpac Banking Corp.
0.371%, due 01/04/162 | | | 40,000,000 | | | | 40,000,000 | |
| | | | | 275,950,156 | |
18
UBS RMA Money Market Portfolio
Statement of net assets—December 31, 2015 (unaudited)
| | | | | | | | |
| Security description | | Face
amount | | | Value | |
| Commercial paper1—(concluded) | | | | | | | | |
| Insurance-life—0.64% | | | | | | | | |
MetLife Short Term Funding LLC
0.230%, due 01/13/16 | | $ | 30,000,000 | | | $ | 29,997,700 | |
Total commercial paper (cost—$1,016,773,353) | | | | 1,016,773,353 | |
| Other short-term corporate obligations—0.81% | | | | | |
| Supranational—0.81% | | | | | | | | |
International Bank for Reconstruction & Development | | | | | | | | |
0.170%, due 01/11/161
(cost—$37,998,205) | | | 38,000,000 | | | | 37,998,205 | |
| Non-US government agency obligation—0.86% | | | | | |
Export Development Canada | | | | | | | | |
0.420%, due 01/04/162,3
(cost—$40,000,000) | | | 40,000,000 | | | | 40,000,000 | |
| Repurchase agreements—46.72% | |
Repurchase agreement dated 12/31/15 with
BNP Paribas Securities Corp., 0.280% due 01/04/16, collateralized by $5,319,400 US Treasury Note, 1.750% due 03/31/22, $15,803,000 US Treasury Bonds Principal STRIPs, zero coupon due 08/15/19 to 08/15/44 and $9,478,710 US Treasury Bonds STRIPs, zero coupon due 11/15/18 to 02/15/40; (value—$20,400,000); proceeds: $20,000,622 | | | 20,000,000 | | | | 20,000,000 | |
Repurchase agreement dated 12/31/15 with
BNP Paribas Securities Corp., 0.290% due 01/04/16, collateralized by $3,281,865 Federal Farm Credit Bank obligations, 0.290% to 5.875% due 01/21/16 to 06/16/32, $4,180,000 Federal Home Loan Bank obligations, 0.260% to 5.250% due 01/22/16 to 12/09/22, $100 US Treasury Bill, zero coupon due 06/09/16, $2,283,200 US Treasury Inflation Index Note, 0.125% due 01/15/22 and $100 US Treasury Bond Principal STRIP, zero coupon due 11/15/42; (value—$10,200,001); proceeds: $10,000,322 | | | 10,000,000 | | | | 10,000,000 | |
19
UBS RMA Money Market Portfolio
Statement of net assets—December 31, 2015 (unaudited)
| | | | | | | | |
| Security description | | Face
amount | | | Value | |
| Repurchase agreements—(continued) | | | | | | | | |
Repurchase agreement dated 12/31/15 with
Federal Reserve Bank of New York, 0.250% due 01/04/16, collateralized by $156,040,400 US Treasury Bonds, 4.625% to 5.250% due 11/15/28 to 02/15/40 and $678,661,700 US Treasury Notes, 0.625% to 3.625% due 04/30/18 to 05/15/22; (value—$900,025,004); proceeds: $900,025,000 | | $ | 900,000,000 | | | $ | 900,000,000 | |
Repurchase agreement dated 12/31/15 with
Goldman Sachs & Co., 0.300% due 01/04/16, collateralized by $22,778,000 Federal National Mortgage Association obligations, 2.635% to 2.660% due 08/28/23 to 09/13/23 and $6,063,800 US Treasury Inflation Index Note, 0.125% due 04/15/18; (value—$29,070,001); proceeds: $28,500,950 | | | 28,500,000 | | | | 28,500,000 | |
Repurchase agreement dated 12/29/15 with
Merrill Lynch Pierce Fenner & Smith, Inc., 0.300% due 01/05/16, collateralized by $200,583,900 US Treasury Note, 2.375% due 08/15/24; (value—$204,000,095); proceeds: $200,011,667 | | | 200,000,000 | | | | 200,000,000 | |
Repurchase agreement dated 12/31/15 with
Merrill Lynch Pierce Fenner & Smith, Inc., 0.300% due 01/04/16, collateralized by $126,573,400 US Treasury Note, 1.625% due 08/31/19; (value—$127,500,098); proceeds: $125,004,167 | | | 125,000,000 | | | | 125,000,000 | |
Repurchase agreement dated 12/31/15 with
Mitsubishi UFJ Securities USA, Inc., 0.270% due 01/04/16, collateralized by $716,361,893 Federal Home Loan Mortgage Corp. obligations, 2.000% to 5.000% due 12/01/22 to 11/01/45, $605,589,617 Federal National Mortgage Association obligations, 1.755% to 6.500% due 10/01/24 to 07/01/46 and $492,543,884 Government National Mortgage Association obligations, 2.500% to 6.500% due 03/20/38 to 01/20/65; (value—$714,000,000); proceeds: $700,021,000 | | | 700,000,000 | | | | 700,000,000 | |
20
UBS RMA Money Market Portfolio
Statement of net assets—December 31, 2015 (unaudited)
| | | | | | | | |
| Security description | | Face
amount | | | Value | |
| Repurchase agreements—(concluded) | | | | | | | | |
Repurchase agreement dated 12/31/15 with
State Street Bank and Trust Co., 0.010% due 01/04/16, collateralized by $117,822 Federal National Mortgage Association obligation, 2.110% due 11/07/22; (value—$115,416); proceeds: $113,000 | | $ | 113,000 | | | $ | 113,000 | |
Repurchase agreement dated 12/30/15 with Toronto-Dominion Bank, 0.320% due 01/04/16, collateralized by $80,099,981 Federal Home Loan Mortgage Corp. obligations, 2.500% to 4.500% due 11/01/25 to 09/01/45 and $217,553,216 Federal National Mortgage Association obligations, 2.500% to 6.000% due 01/01/25 to 11/01/45; (value—$204,000,000); proceeds: $200,008,889 | | | 200,000,000 | | | | 200,000,000 | |
Total repurchase agreements (cost—$2,183,613,000) | | | | 2,183,613,000 | |
Total investments (cost—$4,674,288,354
which approximates cost for federal income tax purposes)—100.01% | | | | | | | 4,674,288,354 | |
| Liabilities in excess of other assets—(0.01)% | | | | (532,268 | ) |
Net assets (applicable to 4,673,712,739 shares
of common stock outstanding equivalent to
$1.00 per share)—100.00% | | | $ | 4,673,756,086 | |
For a listing of defined portfolio acronyms that are used throughout the Statement of net assets, please refer to page 63.
21
UBS RMA Money Market Portfolio
Statement of net assets—December 31, 2015 (unaudited)
Fair valuation summary
The following is a summary of the fair valuations according to the inputs used as of December 31, 2015 in valuing the Portfolio’s investments:
| | | | | | | | | | | | | | | | |
| Description | | Unadjusted quoted prices
in active
markets for
identical
investments
(Level 1) | | | Other
significant
observable
inputs
(Level 2) | | | Unobservable
inputs
(Level 3) | | | Total | |
| US government and agency obligations | | $ | — | | | $ | 732,901,913 | | | $ | — | | | $ | 732,901,913 | |
| Certificates of deposit | | | — | | | | 663,001,883 | | | | — | | | | 663,001,883 | |
| Commercial paper | | | — | | | | 1,016,773,353 | | | | — | | | | 1,016,773,353 | |
| Other short-term corporate obligations | | | — | | | | 37,998,205 | | | | — | | | | 37,998,205 | |
| Non-US government agency obligation | | | — | | | | 40,000,000 | | | | — | | | | 40,000,000 | |
| Repurchase agreements | | | — | | | | 2,183,613,000 | | | | — | | | | 2,183,613,000 | |
| Total | | $ | — | | | $ | 4,674,288,354 | | | $ | — | | | $ | 4,674,288,354 | |
At December 31, 2015, there were no transfers between Level 1 and Level 2.
Issuer breakdown by country or territory of origin
| | | | |
| | | Percentage of
total investments | |
| United States | | | 80.1 | % |
| Japan | | | 6.3 | |
| Canada | | | 4.7 | |
| Australia | | | 2.6 | |
| Sweden | | | 2.2 | |
| Belgium | | | 1.6 | |
| Germany | | | 0.8 | |
| France | | | 0.6 | |
| Singapore | | | 0.6 | |
| Netherlands | | | 0.5 | |
| Total | | | 100.0 | % |
22
UBS RMA Money Market Portfolio
Statement of net assets—December 31, 2015 (unaudited)
Portfolio footnotes
| 1 | Rates shown are the discount rates at date of purchase unless otherwise noted. |
| 2 | Variable or floating rate security. The interest rate shown is the current rate as of December 31, 2015 and changes periodically. The maturity date reflects earlier of reset date or stated maturity date. |
| 3 | Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933. This security, which represents 0.86% of net assets as of December 31, 2015, is considered liquid and may be resold in transactions exempt from registration, normally to qualified institutional buyers. |
23
See accompanying notes to financial statements
UBS RMA U.S. Government Portfolio
Statement of net assets—December 31, 2015 (unaudited)
| | | | | | | | |
| Security description | | Face amount | | | Value | |
| US government and agency obligations—48.20% | | | | | |
Federal Farm Credit Bank | | | | | | | | |
0.200%, due 02/05/161 | | $ | 15,000,000 | | | $ | 14,997,083 | |
0.300%, due 05/10/161 | | | 25,000,000 | | | | 24,972,917 | |
0.340%, due 05/18/161 | | | 50,000,000 | | | | 49,934,833 | |
0.270%, due 06/03/161 | | | 10,000,000 | | | | 9,988,450 | |
Federal Home Loan Bank | | | | | | | | |
0.310%, due 01/28/161 | | | 25,000,000 | | | | 24,994,187 | |
0.360%, due 02/04/161 | | | 10,000,000 | | | | 9,996,600 | |
0.370%, due 02/05/161 | | | 25,000,000 | | | | 24,991,007 | |
0.180%, due 02/16/161 | | | 50,000,000 | | | | 49,988,500 | |
0.325%, due 02/16/161 | | | 25,000,000 | | | | 24,989,618 | |
0.280%, due 03/01/161 | | | 5,000,000 | | | | 4,997,667 | |
0.240%, due 03/02/161 | | | 20,000,000 | | | | 19,991,867 | |
0.250%, due 03/10/161 | | | 50,000,000 | | | | 49,976,042 | |
0.260%, due 04/11/161 | | | 50,000,000 | | | | 49,963,528 | |
0.280%, due 04/15/161 | | | 6,000,000 | | | | 5,995,100 | |
0.300%, due 05/25/161 | | | 50,000,000 | | | | 49,939,583 | |
0.500%, due 06/13/161 | | | 50,000,000 | | | | 49,886,111 | |
Federal Home Loan Mortgage Corp.* | | | | | | | | |
0.190%, due 02/25/161 | | | 50,000,000 | | | | 49,985,486 | |
US Treasury Bills | | | | | | | | |
0.272%, due 01/07/161 | | | 25,000,000 | | | | 24,998,867 | |
0.200%, due 02/25/161 | | | 32,000,000 | | | | 31,990,222 | |
0.370%, due 06/02/161 | | | 20,000,000 | | | | 19,968,550 | |
US Treasury Note | | | | | | | | |
2.000%, due 01/31/16 | | | 195,000,000 | | | | 195,279,459 | |
Total US government and agency obligations
(cost—$787,825,677) | | | | 787,825,677 | |
| Repurchase agreements—51.72% | | | | | | | | |
Repurchase agreement dated 12/31/15 with
Goldman Sachs & Co., 0.300% due 01/04/16, collateralized by $171,985,200 US Treasury Inflation Index Notes, 0.125% due 04/15/16 to 04/15/18; (value—$178,398,088); proceeds: $174,905,830 | | | 174,900,000 | | | | 174,900,000 | |
24
UBS RMA U.S. Government Portfolio
Statement of net assets—December 31, 2015 (unaudited)
| | | | | | | | |
| Security description | | Face amount | | | Value | |
| Repurchase agreements—(continued) | | | | | |
Repurchase agreement dated 12/31/15 with
Merrill Lynch Pierce Fenner & Smith, Inc., 0.290% due 01/04/16, collateralized by $245,252,500 US Treasury Bill, zero coupon due 06/09/16; (value—$244,800,009); proceeds: $240,007,733 | | $ | 240,000,000 | | | $ | 240,000,000 | |
Repurchase agreement dated 12/31/15 with
Merrill Lynch Pierce Fenner & Smith, Inc., 0.300% due 01/04/16, collateralized by $202,000 Federal Farm Credit Bank obligations, 2.840% to 5.300% due 01/17/17 to 08/01/30, $3,802,000 Federal Home Loan Bank obligations, zero coupon to 5.375% due 01/26/16 to 07/01/33, $5,807,000 Federal Home Loan Mortgage Corp. obligations, zero coupon to 1.750% due 02/10/16 to 11/15/38, $4,647,898 Federal National Mortgage Association obligations, zero coupon to 6.210% due 01/04/16 to 08/06/38 and $68,986,400 US Treasury Note, 1.625% due 08/31/19; (value—$81,600,087); proceeds: $80,002,667 | | | 80,000,000 | | | | 80,000,000 | |
Repurchase agreement dated 12/31/15 with
Mitsubishi UFJ Securities USA, Inc., 0.270% due 01/04/16, collateralized by $117,598,261 Federal Home Loan Mortgage Corp. obligations, 2.228% to 4.000% due 07/01/36 to 06/01/45 and $697,538,679 Federal National Mortgage Association obligations, 1.443% to 5.530% due 01/01/24 to 08/01/45; (value—$255,000,000); proceeds: $250,007,500 | | | 250,000,000 | | | | 250,000,000 | |
Repurchase agreement dated 12/31/15 with
State Street Bank and Trust Co., 0.010% due 01/04/16, collateralized by $364,934 Federal National Mortgage Association obligation, 2.110% due 11/07/22; (value—$357,484); proceeds: $350,000 | | | 350,000 | | | | 350,000 | |
25
UBS RMA U.S. Government Portfolio
Statement of net assets—December 31, 2015 (unaudited)
| | | | | | | | |
| Security description | | Face amount | | | Value | |
| Repurchase agreements—(concluded) | | | | | |
Repurchase agreement dated 12/30/15 with
Toronto-Dominion Bank, 0.320% due 01/04/16, collateralized by $28,755,771 Federal Home Loan Mortgage Corp. obligations, 3.000% to 4.500% due 12/01/25 to 06/01/45 and $130,595,317 Federal National Mortgage Association obligations, 2.500% to 6.000% due 01/01/27 to 10/01/45; (value—$102,000,000); proceeds: $100,004,444 | | $ | 100,000,000 | | | $ | 100,000,000 | |
Total repurchase agreements (cost—$845,250,000) | | | | 845,250,000 | |
Total investments (cost—$1,633,075,677
which approximates cost for federal income tax
purposes)—99.92% | | | | | | | 1,633,075,677 | |
| Other assets in excess of liabilities—0.08% | | | | | | | 1,303,552 | |
| Net assets (applicable to 1,634,363,622 shares of common stock outstanding equivalent to $1.00 per share)—100.00% | | | | | | $ | 1,634,379,229 | |
For a listing of defined portfolio acronyms that are used throughout the Statement of net assets, please refer to page 63.
Fair valuation summary
The following is a summary of the fair valuations according to the inputs used as of December 31, 2015 in valuing the Portfolio’s investments:
| | | | | | | | | | | | | | | | |
| Description | | Unadjusted
quoted prices
in active
markets for
identical
investments
(Level 1) | | | Other significant
observable inputs
(Level 2) | | | Unobservable
inputs (Level 3) | | | Total | |
| US government and agency obligations | | $ | — | | | $ | 787,825,677 | | | $ | — | | | $ | 787,825,677 | |
| Repurchase agreements | | | — | | | | 845,250,000 | | | | — | | | | 845,250,000 | |
| Total | | $ | — | | | $ | 1,633,075,677 | | | $ | — | | | $ | 1,633,075,677 | |
At December 31, 2015, there were no transfers between Level 1 and Level 2.
26
UBS RMA U.S. Government Portfolio
Statement of net assets—December 31, 2015 (unaudited)
Portfolio footnotes
| * | On September 7, 2008, the Federal Housing Finance Agency placed the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation into conservatorship, and the US Treasury guaranteed the debt issued by those organizations. |
| 1 | Rates shown are the discount rates at date of purchase unless otherwise noted. |
27
See accompanying notes to financial statements
UBS RMA Tax-Free Fund
Statement of net assets—December 31, 2015 (unaudited)
| | | | | | | | |
| Security description | | Face amount | | | Value | |
| Municipal bonds and notes—75.99% | | | | | | | | |
| Alabama—0.38% | |
University of Alabama Revenue (University Hospital), Series C,
0.010%, VRD | | $ | 6,500,000 | | | $ | 6,500,000 | |
University of Alabama Revenue, Series B,
0.010%, VRD | | | 4,875,000 | | | | 4,875,000 | |
| | | | | 11,375,000 | |
| Alaska—0.54% | |
Valdez Marine Terminal Revenue (Exxon Pipeline Co. Project),
0.010%, VRD | | | 6,200,000 | | | | 6,200,000 | |
Valdez Marine Terminal Revenue Refunding (ExxonMobil Pipeline Co. Project),
0.010% VRD | | | 5,000,000 | | | | 5,000,000 | |
Series A,
0.010% VRD | | | 4,200,000 | | | | 4,200,000 | |
Series C,
0.010% VRD | | | 690,000 | | | | 690,000 | |
| | | | | 16,090,000 | |
| California—4.16% | |
Bay Area Toll Authority Toll Bridge Revenue (Bay Area), | | | | | | | | |
Series B-2,
0.010% VRD | | | 2,000,000 | | | | 2,000,000 | |
Series G-1,
0.010% VRD | | | 5,000,000 | | | | 5,000,000 | |
California Health Facilities Financing Authority Revenue (Adventist Health Systems), Series A,
0.010%, VRD | | | 1,200,000 | | | | 1,200,000 | |
California Health Facilities Financing Authority Revenue Refunding (Stanford Hospital), Series B-1,
0.010%, VRD | | | 10,000,000 | | | | 10,000,000 | |
California State Enterprise Development Authority Revenue (Robert Louis Stevenson School),
0.010%, VRD | | | 7,650,000 | | | | 7,650,000 | |
California State Kindergarten, Series B4,
0.010%, VRD | | | 1,100,000 | | | | 1,100,000 | |
Metropolitan Water District Southern California Revenue Refunding, Series A-2,
0.010%, VRD | | | 3,480,000 | | | | 3,480,000 | |
28
UBS RMA Tax-Free Fund
Statement of net assets—December 31, 2015 (unaudited)
| | | | | | | | |
| Security description | | Face amount | | | Value | |
| Municipal bonds and notes—(continued) | |
| California—(concluded) | | | | | |
Modesto Water Revenue Certificates of Participation Refunding, Series A,
0.010%, VRD | | $ | 3,880,000 | | | $ | 3,880,000 | |
Sacramento Municipal Utility District (Subordinate Lien), Series L,
0.010%, VRD | | | 90,000 | | | | 90,000 | |
San Diego County Regional Transportation Commission Sales Tax Revenue (Limited Tax), Series A,
0.010%, VRD | | | 15,000,000 | | | | 15,000,000 | |
Santa Clara Electric Revenue, Subseries B,
0.010%, VRD | | | 4,500,000 | | | | 4,500,000 | |
Santa Clara Valley Transportation Authority Sales Tax Revenue Refunding,
Series A,
0.010% VRD | | | 28,040,000 | | | | 28,040,000 | |
Series B,
0.010% VRD | | | 12,265,000 | | | | 12,265,000 | |
Series C,
0.010% VRD | | | 13,390,000 | | | | 13,390,000 | |
Whittier Health Facilities Revenue (Presbyterian Intercommunity), Series A,
0.010%, VRD | | | 15,700,000 | | | | 15,700,000 | |
| | | | | 123,295,000 | |
| Colorado—3.60% | |
Denver City & County Certificates of Participation Refunding,
Series A1,
0.010% VRD | | | 42,025,000 | | | | 42,025,000 | |
Series A2,
0.010% VRD | | | 19,445,000 | | | | 19,445,000 | |
Series A3,
0.010% VRD | | | 33,610,000 | | | | 33,610,000 | |
El Paso County Revenue (YMCA Pikes Peak Region Project),
0.020%, VRD | | | 11,640,000 | | | | 11,640,000 | |
| | | | | 106,720,000 | |
29
UBS RMA Tax-Free Fund
Statement of net assets—December 31, 2015 (unaudited)
| | | | | | | | |
| Security description | | Face amount | | | Value | |
| Municipal bonds and notes—(continued) | |
| Connecticut—0.85% | |
Hartford County Metropolitan District Bond Anticipation Notes, Series C,
1.000%, due 03/18/16 | | $ | 25,000,000 | | | $ | 25,043,025 | |
| District of Columbia—1.08% | |
District of Columbia Revenue (German Marshall Fund of United States),
0.010%, VRD | | | 8,000,000 | | | | 8,000,000 | |
District of Columbia University Revenue Refunding (Georgetown University), Series B,
0.010%, VRD | | | 15,050,000 | | | | 15,050,000 | |
District of Columbia Water & Sewer Authority Revenue (Subordinate Lien), Series B-1,
0.010%, VRD | | | 8,225,000 | | | | 8,225,000 | |
Metropolitan Washington, D.C. Airport Authority Airport System Revenue Subseries D-2,
0.010%, VRD | | | 600,000 | | | | 600,000 | |
| | | | | 31,875,000 | |
| Florida—1.07% | |
JEA Water & Sewer System Revenue,
Subseries A-1,
0.010% VRD | | | 7,500,000 | | | | 7,500,000 | |
Subseries B-1,
0.020% VRD | | | 10,445,000 | | | | 10,445,000 | |
Orange County Health Facilities Authority Revenue (Hospital-Orlando Regional), Series E,
0.020%, VRD | | | 4,300,000 | | | | 4,300,000 | |
Orange County Health Facilities Authority Revenue (The Nemours Foundation Project), Series B,
0.010%, VRD | | | 9,385,000 | | | | 9,385,000 | |
| | | | | 31,630,000 | |
| Georgia—1.48% | |
Private Colleges & Universities Authority Revenue (Emory University),
Series B-1,
0.010% VRD | | | 10,200,000 | | | | 10,200,000 | |
Series B-2,
0.010% VRD | | | 13,825,000 | | | | 13,825,000 | |
30
UBS RMA Tax-Free Fund
Statement of net assets—December 31, 2015 (unaudited)
| | | | | | | | |
| Security description | | Face amount | | | Value | |
| Municipal bonds and notes—(continued) | |
| Georgia—(concluded) | | | | | | | | |
Series C-4,
0.010% VRD | | $ | 19,885,000 | | | $ | 19,885,000 | |
| | | | | 43,910,000 | |
| Illinois—7.28% | |
Chicago Waterworks Revenue (Second Lien),
Subseries 2000-1,
0.050% VRD | | | 3,000,000 | | | | 3,000,000 | |
Subseries 2000-2,
0.050% VRD | | | 9,000,000 | | | | 9,000,000 | |
Chicago Waterworks Revenue Refunding,
Subseries 2004-1,
0.050% VRD | | | 4,845,000 | | | | 4,845,000 | |
Subseries 2004-2,
0.050% VRD | | | 9,690,000 | | | | 9,690,000 | |
Cook County School District No. 036 Winnetka (Morgan Stanley Floater Certificates), Series 1919,
0.010%, VRD1,2 | | | 10,010,000 | | | | 10,010,000 | |
Illinois Development Finance Authority Revenue (Francis W. Parker School Project),
0.010%, VRD | | | 1,900,000 | | | | 1,900,000 | |
Illinois Development Finance Authority Revenue (Lyric Opera Chicago Project),
0.010%, VRD | | | 17,000,000 | | | | 17,000,000 | |
Illinois Finance Authority Revenue (Methodist Medical Center), Series B,
0.010%, VRD | | | 4,000,000 | | | | 4,000,000 | |
Illinois Finance Authority Revenue (Northwestern Community Hospital), Series B,
0.010%, VRD | | | 11,400,000 | | | | 11,400,000 | |
Illinois Finance Authority Revenue (OSF Healthcare System), Series B,
0.010%, VRD | | | 10,725,000 | | | | 10,725,000 | |
Illinois Finance Authority Revenue (Rush University Medical Center), Series A,
0.010%, VRD | | | 9,700,000 | | | | 9,700,000 | |
Illinois Finance Authority Revenue (Steppenwolf Theatre Co. Project),
0.020%, VRD | | | 5,675,000 | | | | 5,675,000 | |
31
UBS RMA Tax-Free Fund
Statement of net assets—December 31, 2015 (unaudited)
| | | | | | | | |
| Security description | | Face amount | | | Value | |
| Municipal bonds and notes—(continued) | |
| Illinois—(concluded) | | | | | | | | |
Illinois Finance Authority Revenue (University of Chicago), Series B,
0.010%, VRD | | $ | 9,755,000 | | | $ | 9,755,000 | |
Illinois Finance Authority Revenue (Wesleyan University),
0.010%, VRD | | | 5,860,000 | | | | 5,860,000 | |
Illinois Finance Authority Revenue Refunding (Hospital Sisters Services, Inc.),
0.010%, VRD | | | 25,145,000 | | | | 25,145,000 | |
Illinois Finance Authority Revenue Refunding (Swedish Covenant), Series A,
0.010%, VRD | | | 22,690,000 | | | | 22,690,000 | |
Illinois Finance Authority Revenue Refunding (University of Chicago), Series C,
0.010%, VRD | | | 14,595,000 | | | | 14,595,000 | |
Illinois State Finance Authority Revenue (University of Chicago Medical Center), Series B,
0.010%, VRD | | | 16,050,000 | | | | 16,050,000 | |
Illinois State Toll Highway Authority Toll Highway Revenue (Senior Priority), Series A-2D,
0.010%, VRD | | | 13,700,000 | | | | 13,700,000 | |
Illinois State, Series B-4,
0.010%, VRD | | | 5,000,000 | | | | 5,000,000 | |
Lombard Revenue (National University Health Sciences Project),
0.010%, VRD | | | 5,915,000 | | | | 5,915,000 | |
| | | | | 215,655,000 | |
| Indiana—1.77% | |
Indiana Finance Authority Environmental Revenue Refunding (Duke Energy, Inc. Project),
Series A-4,
0.010% VRD | | | 3,700,000 | | | | 3,700,000 | |
Series A-5,
0.010% VRD | | | 18,080,000 | | | | 18,080,000 | |
Indiana Finance Authority Hospital Revenue (Indiana University Health, Inc.), Series D,
0.010%, VRD | | | 3,045,000 | | | | 3,045,000 | |
32
UBS RMA Tax-Free Fund
Statement of net assets—December 31, 2015 (unaudited)
| | | | | | | | |
| Security description | | Face amount | | | Value | |
| Municipal bonds and notes—(continued) | |
| Indiana—(concluded) | | | | | | | | |
Indiana Finance Authority Revenue (Ascension Health Senior Credit Group), Series E-4,
0.010%, VRD | | $ | 6,000,000 | | | $ | 6,000,000 | |
Indiana Municipal Power Agency Power Supply Systems Revenue Refunding, Series A,
0.010%, VRD | | | 8,250,000 | | | | 8,250,000 | |
Indianapolis Multi-Family Housing Revenue (Capital Place-Covington) (FNMA Insured),
0.010%, VRD | | | 9,350,000 | | | | 9,350,000 | |
Lawrenceburg Pollution Control Revenue Refunding (Indiana Michigan Power Co. Project), Series H,
0.010%, VRD | | | 4,000,000 | | | | 4,000,000 | |
| | | | | 52,425,000 | |
| Kansas—0.71% | |
Kansas State Department of Transportation Highway Revenue, Series C-4,
0.020%, VRD | | | 10,000,000 | | | | 10,000,000 | |
Mission Multi-Family Revenue Refunding (Housing Silverwood Apartment Project), (FNMA Insured),
0.020%, VRD | | | 11,000,000 | | | | 11,000,000 | |
| | | | | 21,000,000 | |
| Kentucky—0.32% | |
Boone County Pollution Control Revenue Refunding (Duke Energy, Inc.),
0.010%, VRD | | | 5,500,000 | | | | 5,500,000 | |
Jeffersontown Lease Program Revenue (Kentucky League of Cities Funding Trust),
0.030%, VRD | | | 2,815,000 | | | | 2,815,000 | |
Williamstown League of Cities Funding Trust Lease Revenue, Series B,
0.020%, VRD | | | 1,185,000 | | | | 1,185,000 | |
| | | | | 9,500,000 | |
| Louisiana—0.44% | |
East Baton Rouge Parish Industrial Development Board, Revenue (ExxonMobil Project), Series A,
0.010%, VRD | | | 11,200,000 | | | | 11,200,000 | |
33
UBS RMA Tax-Free Fund
Statement of net assets—December 31, 2015 (unaudited)
| | | | | | | | |
| Security description | | Face amount | | | Value | |
| Municipal bonds and notes—(continued) | |
| Louisiana—(concluded) | | | | | | | | |
Louisiana Public Facilities Authority Revenue Refunding (Christus Health), Series B2,
0.010%, VRD | | $ | 1,945,000 | | | $ | 1,945,000 | |
| | | | | 13,145,000 | |
| Maryland—0.92% | |
Maryland Economic Development Corp. Revenue (Howard Hughes Medical Institute), Series A,
0.010%, VRD | | | 6,155,000 | | | | 6,155,000 | |
Maryland State Health & Higher Educational Facilities Authority Revenue (Johns Hopkins University), Series A,
0.010%, VRD | | | 8,400,000 | | | | 8,400,000 | |
Montgomery County Housing Development Corp. Opportunities Commission Multi-Family Revenue,
0.020%, VRD | | | 2,865,000 | | | | 2,865,000 | |
Washington Suburban Sanitation District Bond Anticipation Notes, Series A,
0.010%, VRD | | | 9,700,000 | | | | 9,700,000 | |
| | | | | 27,120,000 | |
| Massachusetts—0.28% | |
Massachusetts Health & Educational Facilities Authority Revenue (Partners Healthcare System), Series F3,
0.010%, VRD | | | 3,725,000 | | | | 3,725,000 | |
University of Massachusetts Building Authority Revenue Refunding, Senior Series 1,
0.020%, VRD | | | 4,565,000 | | | | 4,565,000 | |
| | | | | 8,290,000 | |
| Michigan—0.47% | |
Green Lake Township Economic Development Corp. Revenue Refunding (Interlochen Center Project),
0.010%, VRD | | | 2,710,000 | | | | 2,710,000 | |
Michigan State Hospital Finance Authority Revenue (Trinity Health Credit), Series F,
0.010%, VRD | | | 6,720,000 | | | | 6,720,000 | |
Michigan State Strategic Fund Limited Obligation Revenue (Greenpath, Inc. Project), Series A,
0.020%, VRD | | | 4,500,000 | | | | 4,500,000 | |
| | | | | 13,930,000 | |
34
UBS RMA Tax-Free Fund
Statement of net assets—December 31, 2015 (unaudited)
| | | | | | | | |
| Security description | | Face amount | | | Value | |
| Municipal bonds and notes—(continued) | |
| Minnesota—1.21% | |
Rochester Health Care Facilities Revenue (Mayo Clinic),
Series A,
0.010% VRD | | $ | 16,250,000 | | | $ | 16,250,000 | |
Series B,
0.010% VRD | | | 19,500,000 | | | | 19,500,000 | |
| | | | | 35,750,000 | |
| Mississippi—4.00% | |
Mississippi Business Finance Corp. Gulf Opportunity Zone (Chevron USA, Inc. Project),
Series A,
0.010% VRD | | | 15,900,000 | | | | 15,900,000 | |
Series C,
0.010% VRD | | | 29,925,000 | | | | 29,925,000 | |
Series D,
0.010% VRD | | | 4,400,000 | | | | 4,400,000 | |
Series G,
0.010% VRD | | | 35,730,000 | | | | 35,730,000 | |
Series I,
0.010% VRD | | | 5,000,000 | | | | 5,000,000 | |
Series J,
0.010% VRD | | | 5,000,000 | | | | 5,000,000 | |
Mississippi Development Bank Special Obligation (Jackson County Industrial Water System Project),
0.010%, VRD | | | 22,500,000 | | | | 22,500,000 | |
| | | | | 118,455,000 | |
| Missouri—3.26% | |
Kansas City Industrial Development Authority Revenue Refunding (Ethans Apartments Project),
0.010%, VRD | | | 14,500,000 | | | | 14,500,000 | |
Missouri Health & Educational Facilities Authority Educational Facilities Revenue (Ascension Healthcare),
Series C-3,
0.010% VRD | | | 2,900,000 | | | | 2,900,000 | |
Series C-5,
0.010% VRD | | | 27,830,000 | | | | 27,830,000 | |
35
UBS RMA Tax-Free Fund
Statement of net assets—December 31, 2015 (unaudited)
| | | | | | | | |
| Security description | | Face amount | | | Value | |
| Municipal bonds and notes—(continued) | |
| Missouri—(concluded) | | | | | | | | |
Missouri Health & Educational Facilities Authority Educational Facilities Revenue (St. Louis University), Series B-2,
0.010%, VRD | | $ | 4,315,000 | | | $ | 4,315,000 | |
Missouri Health & Educational Facilities Authority Educational Facilities Revenue (Washington University),
Series A,
0.010% VRD | | | 7,050,000 | | | | 7,050,000 | |
Series B,
0.010% VRD | | | 18,810,000 | | | | 18,810,000 | |
Series C,
0.010% VRD | | | 12,400,000 | | | | 12,400,000 | |
Series D,
0.010% VRD | | | 8,850,000 | | | | 8,850,000 | |
| | | | | 96,655,000 | |
| Nebraska—0.49% | |
Douglas County Hospital Authority No. 002 Revenue Refunding (Health Facilities for Children), Series A,
0.010%, VRD | | | 14,500,000 | | | | 14,500,000 | |
| New Hampshire—1.48% | |
New Hampshire Health & Education Facilities Authority Revenue (Dartmouth College),
0.010% VRD | | | 22,920,000 | | | | 22,920,000 | |
Series B,
0.010% VRD | | | 20,900,000 | | | | 20,900,000 | |
| | | | | 43,820,000 | |
| New Jersey—1.00% | |
Burlington County Bridge Community Revenue (Lutheran Home Project), Series A,
0.020%, VRD | | | 2,615,000 | | | | 2,615,000 | |
New Jersey Economic Development Authority Revenue (Bancroft Neurohealth Project),
0.020%, VRD | | | 2,490,000 | | | | 2,490,000 | |
New Jersey Educational Facilities Authority Revenue (Centenary College), Series A,
0.010%, VRD | | | 2,485,000 | | | | 2,485,000 | |
36
UBS RMA Tax-Free Fund
Statement of net assets—December 31, 2015 (unaudited)
| | | | | | | | |
| Security description | | Face amount | | | Value | |
| Municipal bonds and notes—(continued) | |
| New Jersey—(concluded) | | | | | | | | |
New Jersey Health Care Facilities Financing Authority Revenue (Robert Wood Johnson University),
0.010%, VRD | | $ | 8,895,000 | | | $ | 8,895,000 | |
New Jersey Health Care Facilities Financing Authority Revenue (Virtua Health), Series D,
0.010%, VRD | | | 11,100,000 | | | | 11,100,000 | |
New Jersey Health Care Facilities Financing Authority Revenue, Series A-3,
0.020%, VRD | | | 1,955,000 | | | | 1,955,000 | |
| | | | | 29,540,000 | |
| New Mexico—0.27% | |
New Mexico Finance Authority Transportation Revenue Refunding (Sub Lien), Subseries B-1,
0.010%, VRD | | | 8,000,000 | | | | 8,000,000 | |
| New York—13.95% | |
Dutchess County Industrial Development Agency Civic Facilities Revenue (Marist College), Series A,
0.010%, VRD | | | 470,000 | | | | 470,000 | |
Metropolitan Transportation Authority New York Dedicated Tax Fund, Subseries B-1,
0.010%, VRD | | | 24,590,000 | | | | 24,590,000 | |
Nassau Health Care Corp. Revenue, Series B-1,
0.010%, VRD | | | 7,490,000 | | | | 7,490,000 | |
New York City Health & Hospital Corp. Revenue (Health Systems), Series C,
0.010%, VRD | | | 20,000,000 | | | | 20,000,000 | |
New York City Housing Development Corp. Multi-Family Revenue (The Crest), Series A,
0.010%, VRD | | | 27,400,000 | | | | 27,400,000 | |
New York City Housing Development Corp. Multi-Family Revenue Mortgage (Marseilles Apartments), Series A,
0.010%, VRD | | | 1,930,000 | | | | 1,930,000 | |
New York City Municipal Finance Authority Water & Sewer Systems Revenue (Second General Fiscal 2008),
Series BB-1,
0.010% VRD | | | 25,700,000 | | | | 25,700,000 | |
37
UBS RMA Tax-Free Fund
Statement of net assets—December 31, 2015 (unaudited)
| | | | | | | | |
| Security description | | Face amount | | | Value | |
| Municipal bonds and notes—(continued) | |
| New York—(continued) | | | | | | | | |
New York City Municipal Finance Authority Water & Sewer Systems Revenue (Second General Fiscal 2008)—(concluded)
Series BB-2,
0.010% VRD | | $ | 2,000,000 | | | $ | 2,000,000 | |
Series BB-5,
0.010% VRD | | | 33,630,000 | | | | 33,630,000 | |
New York City Municipal Finance Authority Water & Sewer Systems Revenue (Second Generation Resolution),
Series A,
0.010% VRD | | | 5,745,000 | | | | 5,745,000 | |
Series B-4,
0.010% VRD | | | 8,300,000 | | | | 8,300,000 | |
Series CC-1,
0.010% VRD | | | 1,900,000 | | | | 1,900,000 | |
New York City Municipal Water Finance Authority Water & Sewer Systems Revenue, Subseries F1A,
0.010%, VRD | | | 15,250,000 | | | | 15,250,000 | |
New York City Transitional Finance Authority Future Tax Secured Revenue,
Series C,
0.010% VRD | | | 7,985,000 | | | | 7,985,000 | |
Subseries A-4,
0.010% VRD | | | 16,750,000 | | | | 16,750,000 | |
Subseries D-4,
0.010% VRD | | | 14,300,000 | | | | 14,300,000 | |
New York City,
Series F, Subseries F-3,
0.010% VRD | | | 250,000 | | | | 250,000 | |
Subseries B-3,
0.010% VRD | | | 12,045,000 | | | | 12,045,000 | |
Subseries D-4,
0.010% VRD | | | 8,000,000 | | | | 8,000,000 | |
New York State Dormitory Authority Revenue Non-State Supported Debt (Rockefeller University), Series A-2,
0.010%, VRD | | | 12,700,000 | | | | 12,700,000 | |
New York State Dormitory Authority Revenue Non-State Supported Debt (Royal), Series A, (FNMA Insured),
0.010%, VRD | | | 9,400,000 | | | | 9,400,000 | |
38
UBS RMA Tax-Free Fund
Statement of net assets—December 31, 2015 (unaudited)
| | | | | | | | |
| Security description | | Face amount | | | Value | |
| Municipal bonds and notes—(continued) | |
| New York—(concluded) | | | | | | | | |
New York State Dormitory Authority Revenue Refunding, Series A,
2.000%, due 03/15/16 | | $ | 25,000,000 | | | $ | 25,092,742 | |
New York State Dormitory Authority Revenue State Supported Debt (Cornell University), Series A,
0.010%, VRD | | | 11,920,000 | | | | 11,920,000 | |
New York State Housing Finance Agency (Riverside Center 2 Housing), Series A-2,
0.010%, VRD | | | 11,900,000 | | | | 11,900,000 | |
New York State Housing Finance Agency Affordable Housing Revenue (Housing Bowery Place I), Series A, (FHLMC Insured),
0.010%, VRD | | | 12,300,000 | | | | 12,300,000 | |
New York State Housing Finance Agency Revenue (20 River Terrace Housing), Series A, (FNMA Insured),
0.010%, VRD | | | 9,700,000 | | | | 9,700,000 | |
New York State Housing Finance Agency Revenue (Maestro West Chelsea Housing), Series A,
0.010%, VRD | | | 2,000,000 | | | | 2,000,000 | |
New York State Urban Development Corp. Revenue Refunding (Service Contract), Series A-5,
0.010%, VRD | | | 2,100,000 | | | | 2,100,000 | |
Saratoga County Capital Resource Corp. Revenue (Saratoga Hospital Project),
0.010%, VRD | | | 2,930,000 | | | | 2,930,000 | |
Syracuse Industrial Development Agency Civic Facility Revenue (Syracuse University), Series A,
0.010%, VRD | | | 21,165,000 | | | | 21,165,000 | |
Triborough Bridge & Tunnel Authority Revenue Refunding, Subseries B-2,
0.010%, VRD | | | 27,380,000 | | | | 27,380,000 | |
Triborough Bridge & Tunnel Authority Revenue,
Series B,
0.010% VRD | | | 16,925,000 | | | | 16,925,000 | |
Series B-3,
0.010% VRD | | | 14,000,000 | | | | 14,000,000 | |
| | | | | 413,247,742 | |
39
UBS RMA Tax-Free Fund
Statement of net assets—December 31, 2015 (unaudited)
| | | | | | | | |
| Security description | | Face amount | | | Value | |
| Municipal bonds and notes—(continued) | |
| North Carolina—4.33% | |
Charlotte-Mecklenburg Hospital Authority Health Care Systems Revenue (Carolinas Hospital), Series E, (AGM Insured),
0.010%, VRD | | $ | 12,000,000 | | | $ | 12,000,000 | |
Charlotte-Mecklenburg Hospital Authority Health Care Systems Revenue Refunding (Carolinas Healthcare), Series H,
0.010%, VRD | | | 59,860,000 | | | | 59,860,000 | |
Guilford County, Series B,
0.030%, VRD | | | 3,345,000 | | | | 3,345,000 | |
North Carolina Capital Facilities Finance Agency Educational Facilities Revenue (Wake Forest University), Series B,
0.010%, VRD | | | 9,445,000 | | | | 9,445,000 | |
North Carolina Educational Facilities Finance Agency Revenue (Duke University Project), Series A,
0.010%, VRD | | | 15,695,000 | | | | 15,695,000 | |
North Carolina Medical Care Commission Health Care Facilities Revenue (First Health Carolinas), Series A,
0.020%, VRD | | | 27,920,000 | | | | 27,920,000 | |
| | | | | 128,265,000 | |
| Ohio—5.00% | |
Butler County Capital Funding Revenue (CCAO Low Cost Capital), Series A,
0.010%, VRD | | | 4,885,000 | | | | 4,885,000 | |
Cleveland-Cuyahoga County Port Authority Revenue (Carnegie/89th Garage Project),
0.010%, VRD | | | 9,265,000 | | | | 9,265,000 | |
Columbus Sewer Revenue, Series B,
0.010%, VRD | | | 14,350,000 | | | | 14,350,000 | |
Middletown Hospital Facilities Revenue (Atrium Medical Center), Series B,
0.010%, VRD | | | 11,370,000 | | | | 11,370,000 | |
Ohio (Common Schools),
Series A,
0.010% VRD | | | 9,410,000 | | | | 9,410,000 | |
40
UBS RMA Tax-Free Fund
Statement of net assets—December 31, 2015 (unaudited)
| | | | | | | | |
| Security description | | Face amount | | | Value | |
| Municipal bonds and notes—(continued) | |
| Ohio—(concluded) | | | | | | | | |
Series B,
0.010% VRD | | $ | 40,910,000 | | | $ | 40,910,000 | |
Series D,
0.010% VRD | | | 38,500,000 | | | | 38,500,000 | |
Ohio Educational Facilities Communication Revenue Hospital (JP Morgan Chase PUTTERs, Series 3139),
0.020%, VRD1,2 | | | 6,225,000 | | | | 6,225,000 | |
Ohio State University General Receipts,
0.010% VRD | | | 6,300,000 | | | | 6,300,000 | |
Series B,
0.010% VRD | | | 4,100,000 | | | | 4,100,000 | |
Ohio State University General Revenue, Series E,
0.010%, VRD | | | 2,900,000 | | | | 2,900,000 | |
| | | | | 148,215,000 | |
| Oregon—0.07% | |
Oregon Health & Science University Revenue, Series C,
0.010%, VRD | | | 2,035,000 | | | | 2,035,000 | |
| Pennsylvania—2.79% | |
Allegheny County Higher Education Building Authority University Revenue Refunding (Carnegie Mellon University),
0.010%, VRD | | | 2,000,000 | | | | 2,000,000 | |
Allegheny County Industrial Development Authority Revenue (Watson Institute of Friendship),
0.020%, VRD | | | 3,545,000 | | | | 3,545,000 | |
Delaware River Port Authority of Pennsylvania & New Jersey Revenue Refunding, Series B,
0.010%, VRD | | | 30,935,000 | | | | 30,935,000 | |
Emmaus General Authority Revenue, Subseries H-19,
0.010%, VRD | | | 5,000,000 | | | | 5,000,000 | |
Philadelphia Authority for Industrial Development Lease Revenue Refunding,
Series B-2,
0.010% VRD | | | 4,100,000 | | | | 4,100,000 | |
Series B-3,
0.010% VRD | | | 4,000,000 | | | | 4,000,000 | |
41
UBS RMA Tax-Free Fund
Statement of net assets—December 31, 2015 (unaudited)
| | | | | | | | |
| Security description | | Face amount | | | Value | |
| Municipal bonds and notes—(continued) | |
| Pennsylvania—(concluded) | | | | | | | | |
Pittsburgh Water & Sewer Authority Water & Sewer Systems Revenue (1st Lien), Series B2,
0.010%, VRD | | $ | 21,045,000 | | | $ | 21,045,000 | |
Washington County Authority Revenue Refunding (University of Pennsylvania),
0.010%, VRD | | | 8,580,000 | | | | 8,580,000 | |
Washington County Hospital Authority Revenue (Monongahela Valley Hospital Project), Series B,
0.020%, VRD | | | 3,395,000 | | | | 3,395,000 | |
| | | | | 82,600,000 | |
| Rhode Island—0.23% | |
Rhode Island Health & Educational Building Corp. Higher Educational Facilities Revenue Refunding (New England Institute of Technology),
0.010%, VRD | | | 1,185,000 | | | | 1,185,000 | |
Rhode Island Industrial Facilities Corp. Marine Terminal Revenue Refunding (ExxonMobil Project),
0.010%, VRD | | | 5,750,000 | | | | 5,750,000 | |
| | | | | 6,935,000 | |
| South Carolina—0.85% | |
Charleston County School District Development Corp. Tax Anticipation Notes (SCSDE Insured),
1.500%, due 04/01/16 | | | 25,000,000 | | | | 25,083,677 | |
| Tennessee—0.39% | |
Memphis Health Educational & Housing Facility Board Multi-Family Housing Revenue (Ashland Lakes II Apartments Project), Series A,
0.030%, VRD | | | 11,500,000 | | | | 11,500,000 | |
| Texas—7.83% | |
Alamo Community College District (Citigroup ROCS, Series RR-II-R-883WF), (FGIC Insured),
0.010%, VRD1,2 | | | 7,595,000 | | | | 7,595,000 | |
Harris County Cultural Education Facilities Finance Corp. Revenue (Methodist Hospital),
Subseries C-1,
0.010% VRD | | | 8,325,000 | | | | 8,325,000 | |
Subseries C-2,
0.010% VRD | | | 18,870,000 | | | | 18,870,000 | |
42
UBS RMA Tax-Free Fund
Statement of net assets—December 31, 2015 (unaudited)
| | | | | | | | |
| Security description | | Face amount | | | Value | |
| Municipal bonds and notes—(continued) | |
| Texas—(concluded) | | | | | | | | |
Harris County Health Facilities Development Corp. Revenue Refunding (Methodist Hospital Systems),
Series A-1,
0.010% VRD | | $ | 30,915,000 | | | $ | 30,915,000 | |
Series A-2,
0.010% VRD | | | 12,365,000 | | | | 12,365,000 | |
Harris County Hospital District Revenue Refunding (Senior Lien),
0.010%, VRD | | | 8,310,000 | | | | 8,310,000 | |
Harris County Tax Anticipation Notes,
1.500%, due 02/29/16 | | | 20,000,000 | | | | 20,046,377 | |
Houston Higher Education Finance Corp. Higher Education Revenue (Rice University Project), Series B,
0.010%, VRD | | | 26,765,000 | | | | 26,765,000 | |
Lower Neches Valley Authority Industrial Development Corp. Revenue (ExxonMobil Project),
0.010%, VRD | | | 20,805,000 | | | | 20,805,000 | |
Tarrant County Cultural Education Facilities Finance Corp. Hospital Revenue (Baylor Healthcare System Project), Series C,
0.010%, VRD | | | 2,600,000 | | | | 2,600,000 | |
Texas Transportation Commission State Highway Fund Revenue (First Tier),
5.000%, due 04/01/16 | | | 12,200,000 | | | | 12,347,065 | |
University of Texas Permanent University (Funding System), Series A,
0.010%, VRD | | | 37,890,000 | | | | 37,890,000 | |
University of Texas Revenue (Financing Systems), Series B,
0.010%, VRD | | | 5,125,000 | | | | 5,125,000 | |
University of Texas Revenue Refunding (Financing Systems), Series B,
0.010%, VRD | | | 19,915,000 | | | | 19,915,000 | |
| | | | | 231,873,442 | |
| Utah—0.79% | |
Murray City Hospital Revenue (IHC Health Services, Inc.),
Series C,
0.010% VRD | | | 2,020,000 | | | | 2,020,000 | |
43
UBS RMA Tax-Free Fund
Statement of net assets—December 31, 2015 (unaudited)
| | | | | | | | |
| Security description | | Face amount | | | Value | |
| Municipal bonds and notes—(concluded) | |
| Utah—(concluded) | | | | | | | | |
Murray City Hospital Revenue (IHC Health Services, Inc.), Series D,
0.010% VRD | | $ | 21,490,000 | | | $ | 21,490,000 | |
| | | | | 23,510,000 | |
| Virginia—2.26% | |
Fairfax County Economic Development Authority Revenue (Smithsonian Institution), Series A,
0.010%, VRD | | | 4,300,000 | | | | 4,300,000 | |
Hanover County Economic Development Authority Revenue Refunding (Bon Secours Health), Series D-2,
0.010%, VRD | | | 21,720,000 | | | | 21,720,000 | |
Loudoun County Industrial Development Authority Revenue (Howard Hughes Medical),
Series A,
0.010% VRD | | | 13,725,000 | | | | 13,725,000 | |
Series D,
0.010% VRD | | | 3,200,000 | | | | 3,200,000 | |
Series F,
0.010% VRD | | | 16,350,000 | | | | 16,350,000 | |
Virginia College Building Authority Revenue (21st Century College & Equipment Programs), Series A,
5.000%, due 02/01/16 | | | 7,775,000 | | | | 7,807,053 | |
| | | | | 67,102,053 | |
| Washington—0.44% | |
Central Puget Sound Regional Transportation Authority Sales & Use Tax Revenue (JP Morgan PUTTERs, Series 2643Z),
0.020%, VRD1,2 | | | 5,000,000 | | | | 5,000,000 | |
Washington Housing Finance Commission Nonprofit Revenue (YMCA Tacoma-Pierce County Project),
0.020%, VRD | | | 8,075,000 | | | | 8,075,000 | |
| | | | | 13,075,000 | |
Total municipal bonds and notes (cost—$2,251,164,939) | | | | 2,251,164,939 | |
44
UBS RMA Tax-Free Fund
Statement of net assets—December 31, 2015 (unaudited)
| | | | | | | | |
| Security description | | Face amount | | | Value | |
| Tax-exempt commercial paper—16.11% | |
| California—1.79% | |
California State Health Facilities Financing (Stanford Hospital), Series B-2, Subseries 1,
0.060%, due 02/03/16 | | $ | 10,050,000 | | | $ | 10,050,000 | |
Los Angeles County Capital Asset Lease,
0.060%, due 02/09/16 | | | 23,000,000 | | | | 23,000,000 | |
Sacramento Municipal Utility District (Subordinate Lien), Series L
0.030%, due 02/05/16 | | | 10,000,000 | | | | 10,000,000 | |
State of California
0.030%, due 01/13/16 | | | 10,000,000 | | | | 10,000,000 | |
| | | | | 53,050,000 | |
| Connecticut—0.48% | |
Yale University,
0.030%, due 01/07/16 | | | 14,060,000 | | | | 14,060,000 | |
| Illinois—0.88% | |
Illinois Educational Facilities Authority Revenue,
0.040%, due 01/04/16 | | | 18,000,000 | | | | 18,000,000 | |
0.050%, due 02/04/16 | | | 8,091,000 | | | | 8,091,000 | |
| | | | | 26,091,000 | |
| Maryland—0.77% | |
Johns Hopkins University,
0.040%, due 02/03/16 | | | 15,635,000 | | | | 15,635,000 | |
0.050%, due 02/04/16 | | | 7,145,000 | | | | 7,145,000 | |
| | | | | 22,780,000 | |
| Massachusetts—1.01% | |
Harvard University,
0.030%, due 02/04/16 | | | 15,000,000 | | | | 15,000,000 | |
Massachusetts School Building Authority,
0.060%, due 02/10/16 | | | 15,000,000 | | | | 15,000,000 | |
| | | | | 30,000,000 | |
| Minnesota—1.71% | |
Mayo Clinic,
0.050%, due 01/05/16 | | | 20,600,000 | | | | 20,600,000 | |
0.060%, due 02/04/16 | | | 30,000,000 | | | | 30,000,000 | |
| | | | | 50,600,000 | |
45
UBS RMA Tax-Free Fund
Statement of net assets—December 31, 2015 (unaudited)
| | | | | | | | |
| Security description | | Face amount | | | Value | |
| Tax-exempt commercial paper—(continued) | |
| Missouri—1.18% | |
Curators University,
0.040%, due 01/07/16 | | $ | 15,000,000 | | | $ | 15,000,000 | |
0.050%, due 03/03/16 | | | 20,000,000 | | | | 20,000,000 | |
| | | | | 35,000,000 | |
| New York—0.34% | |
New York State Power Authority,
0.030%, due 01/07/16 | | | 10,000,000 | | | | 10,000,000 | |
| North Carolina—0.04% | |
Duke University,
0.060%, due 02/10/16 | | | 1,300,000 | | | | 1,300,000 | |
| Ohio—0.34% | |
Cleveland Clinic,
0.090%, due 03/08/16 | | | 10,000,000 | | | | 10,000,000 | |
| Tennessee—0.81% | |
Vanderbilt University,
0.190%, due 01/12/16 | | | 12,000,000 | | | | 12,000,000 | |
0.150%, due 02/22/16 | | | 12,000,000 | | | | 12,000,000 | |
| | | | | 24,000,000 | |
| Texas—5.53% | |
Dallas Area Rapid Transit,
0.070%, due 01/07/16 | | | 15,000,000 | | | | 15,000,000 | |
0.060%, due 02/04/16 | | | 6,000,000 | | | | 6,000,000 | |
0.040%, due 02/11/16 | | | 12,000,000 | | | | 12,000,000 | |
0.060%, due 02/18/16 | | | 10,000,000 | | | | 10,000,000 | |
0.090%, due 03/07/16 | | | 9,000,000 | | | | 9,000,000 | |
Lower Colorado River Authority Revenue,
0.020%, due 01/14/16 | | | 9,000,000 | | | | 9,000,000 | |
Methodist Hospital,
0.080%, due 03/17/16 | | | 28,000,000 | | | | 28,000,000 | |
University of Texas,
0.040%, due 01/08/16 | | | 10,000,000 | | | | 10,000,000 | |
0.030%, due 01/12/16 | | | 8,000,000 | | | | 8,000,000 | |
0.040%, due 02/04/16 | | | 14,774,000 | | | | 14,774,000 | |
0.040%, due 02/11/16 | | | 12,000,000 | | | | 12,000,000 | |
46
UBS RMA Tax-Free Fund
Statement of net assets—December 31, 2015 (unaudited)
| | | | | | | | |
| Security description | | Face amount | | | Value | |
| Tax-exempt commercial paper—(concluded) | |
| Texas—(concluded) | | | | | | | | |
0.060%, due 03/01/16 | | $ | 10,000,000 | | | $ | 10,000,000 | |
0.300%, due 03/07/16 | | | 20,000,000 | | | | 20,000,000 | |
| | | | | 163,774,000 | |
| Virginia—0.47% | |
University of Virginia,
0.030%, due 01/06/16 | | | 1,600,000 | | | | 1,600,000 | |
0.030%, due 01/16/16 | | | 2,400,000 | | | | 2,400,000 | |
0.060%, due 02/17/16 | | | 10,000,000 | | | | 10,000,000 | |
| | | | | 14,000,000 | |
| Washington—0.76% | |
University of Washington,
0.040%, due 01/07/16 | | | 7,500,000 | | | | 7,500,000 | |
0.060%, due 01/19/16 | | | 15,000,000 | | | | 15,000,000 | |
| | | | | 22,500,000 | |
Total tax-exempt commercial paper (cost—$477,155,000) | | | | 477,155,000 | |
| US government obligations3—6.14% | |
US Treasury Bills
0.142%, due 01/07/16 | | | 40,000,000 | | | | 39,999,057 | |
0.120%, due 01/21/16 | | | 100,000,000 | | | | 99,993,889 | |
0.005%, due 02/04/16 | | | 22,000,000 | | | | 21,999,896 | |
0.151%, due 02/11/16 | | | 20,000,000 | | | | 19,996,560 | |
| Total US government obligations (cost—$181,989,402) | | | | 181,989,402 | |
Total investments (cost—$2,910,309,341
which approximates cost for federal income tax
purposes)—98.24% | | | | | | | 2,910,309,341 | |
| Other assets in excess of liabilities—1.76% | | | | | | | 52,049,331 | |
Net assets (applicable to 2,962,352,567 shares
of common stock outstanding equivalent to
$1.00 per share)—100.00% | | | | | | $ | 2,962,358,672 | |
For a listing of defined portfolio acronyms that are used throughout the Statement of net assets, please refer to page 63.
47
UBS RMA Tax-Free Fund
Statement of net assets—December 31, 2015 (unaudited)
Fair valuation summary
The following is a summary of the fair valuations according to the inputs used as of December 31, 2015 in valuing the Fund’s investments:
| | | | | | | | | | | | | | | | |
| Description | | Unadjusted
quoted prices
in active
markets for
identical
investments
(Level 1) | | | Other significant observable inputs
(Level 2) | | | Unobservable inputs (Level 3) | | | Total | |
| Municipal bonds and notes | | $ | — | | | $ | 2,251,164,939 | | | $ | — | | | $ | 2,251,164,939 | |
| Tax-exempt commercial paper | | | — | | | | 477,155,000 | | | | — | | | | 477,155,000 | |
| US government obligations | | | — | | | | 181,989,402 | | | | — | | | | 181,989,402 | |
| Total | | $ | — | | | $ | 2,910,309,341 | | | $ | — | | | $ | 2,910,309,341 | |
At December 31, 2015, there were no transfers between Level 1 and Level 2.
Portfolio footnotes
| 1 | The Fund does not directly own the municipal security indicated; the Fund owns an interest in a special purpose entity that, in turn, owns the underlying municipal security. The special purpose entity permits the Fund to own interests in underlying assets, but in a manner structured to provide certain advantages not inherent in the underlying bonds (e.g., enhanced liquidity, yields linked to short-term rates). |
| 2 | Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933. These securities, which represent 0.64% of net assets as of December 31, 2015, are considered liquid and may be resold in transactions exempt from registration, normally to qualified institutional buyers. |
| 3 | Rates shown are the discount rates at date of purchase unless otherwise noted. |
48
See accompanying notes to financial statements
UBS RMA California Municipal Money Fund
Statement of net assets—December 31, 2015 (unaudited)
| | | | | | | | |
| Security description | | Face
amount | | | Value | |
| Municipal bonds and notes—61.41% | | | | | |
California Educational Facilities Authority Revenue Refunding (Stanford University),
Series L-5,
0.010% VRD | | $ | 6,900,000 | | | $ | 6,900,000 | |
Series L-6,
0.010% VRD | | | 12,400,000 | | | | 12,400,000 | |
California Health Facilities Financing Authority Revenue (Adventist Health Systems), Series B,
0.010%, VRD | | | 2,200,000 | | | | 2,200,000 | |
California Health Facilities Financing Authority Revenue (Catholic Healthcare), Series C,
0.010%, VRD | | | 17,600,000 | | | | 17,600,000 | |
California Health Facilities Financing Authority Revenue (Scripps Health),
Series B,
0.010% VRD | | | 2,500,000 | | | | 2,500,000 | |
Series C,
0.010% VRD | | | 21,700,000 | | | | 21,700,000 | |
Series F,
0.010% VRD | | | 3,000,000 | | | | 3,000,000 | |
California Health Facilities Financing Authority Revenue (St. Joseph Health Systems),
Series B,
0.010% VRD | | | 9,650,000 | | | | 9,650,000 | |
Series C,
0.010% VRD | | | 32,915,000 | | | | 32,915,000 | |
Series D,
0.010% VRD | | | 7,000,000 | | | | 7,000,000 | |
California Health Facilities Financing Authority Revenue Refunding (Stanford Hospital), Series B-1,
0.010%, VRD | | | 14,400,000 | | | | 14,400,000 | |
California Infrastructure & Economic Development Bank Revenue (California Academy), Series E,
0.010%, VRD | | | 16,170,000 | | | | 16,170,000 | |
California Infrastructure & Economic Development Bank Revenue Refunding (Los Angeles County Museum of Natural History Foundation), Series B,
0.010%, VRD | | | 3,600,000 | | | | 3,600,000 | |
49
UBS RMA California Municipal Money Fund
Statement of net assets—December 31, 2015 (unaudited)
| | | | | | | | |
| Security description | | Face
amount | | | Value | |
| Municipal bonds and notes—(continued) | | | | | |
California Municipal Finance Authority Revenue (Chevron USA—Recovery Zone Bonds), Series B,
0.010%, VRD | | $ | 12,750,000 | | | $ | 12,750,000 | |
California State Enterprise Development Authority Revenue (Robert Louis Stevenson School),
0.010%, VRD | | | 7,650,000 | | | | 7,650,000 | |
California State Kindergarten,
Series A1,
0.010% VRD | | | 2,750,000 | | | | 2,750,000 | |
Series A3,
0.010% VRD | | | 16,250,000 | | | | 16,250,000 | |
Series B2,
0.010% VRD | | | 10,700,000 | | | | 10,700,000 | |
Series B3,
0.010% VRD | | | 850,000 | | | | 850,000 | |
California State, | | | | | | | | |
5.000%, due 03/01/16 | | | 9,805,000 | | | | 9,883,300 | |
Series B, Subseries B-3,
0.010% VRD | | | 6,135,000 | | | | 6,135,000 | |
California Statewide Communities Development Authority (Robert Louis Stevenson),
0.010%, VRD | | | 6,000,000 | | | | 6,000,000 | |
California Statewide Communities Development Authority Multi-Family Housing Revenue (Ridgeway Apartments), Series K, (FHLMC Insured),
0.010%, VRD | | | 6,510,000 | | | | 6,510,000 | |
California Statewide Communities Development Authority Revenue (Health Facilities Community Hospital of Monterey Peninsula), Series B,
0.010%, VRD | | | 4,000,000 | | | | 4,000,000 | |
Antelope Valley-East Kern Water Agency, Series A-2,
0.010%, VRD | | | 4,350,000 | | | | 4,350,000 | |
Bay Area Toll Authority Toll Bridge Revenue (Citigroup Eagle Class A Certificates 20080056),
0.020%, VRD1,2 | | | 4,730,000 | | | | 4,730,000 | |
Bay Area Toll Authority Toll Bridge Revenue (San Francisco Bay Area),
Series D-2,
0.010%, VRD | | | 11,900,000 | | | | 11,900,000 | |
50
UBS RMA California Municipal Money Fund
Statement of net assets—December 31, 2015 (unaudited)
| | | | | | | | |
| Security description | | Face
amount | | | Value | |
| Municipal bonds and notes—(continued) | | | | | |
Series F, (Bank of America Austin Certificates, Series 2008-1058),
0.070%, VRD1,2 | | $ | 6,750,000 | | | $ | 6,750,000 | |
City of Santa Clara, Electrical Revenue, Subseries B,
0.010%, VRD | | | 28,505,000 | | | | 28,505,000 | |
East Baton Rouge Parish Industrial Development Board, Inc. Revenue Gulf Opportunity Zone (ExxonMobil Project),
0.010%, VRD | | | 2,900,000 | | | | 2,900,000 | |
Illinois Finance Authority Revenue (OSF Healthcare System), Series B,
0.010%, VRD | | | 10,725,000 | | | | 10,725,000 | |
Irvine Improvement Bond Act 1915 (Assessment District 97-16),
0.010%, VRD | | | 6,268,000 | | | | 6,268,000 | |
Irvine Improvement Bond Act 1915 (Reassessment District No. 85-7), Series A,
0.010%, VRD | | | 6,591,000 | | | | 6,591,000 | |
Irvine Improvement Bond Act 1915 Limited Obligation (Assessment District 93-14),
0.010%, VRD | | | 4,937,000 | | | | 4,937,000 | |
Irvine Unified School District Special Tax (Community Facilities District No. 09), Series A,
0.010%, VRD | | | 3,950,000 | | | | 3,950,000 | |
Irvine Unified School District,
Series A,
0.010% VRD | | | 6,900,000 | | | | 6,900,000 | |
Series B,
0.010% VRD | | | 10,000,000 | | | | 10,000,000 | |
Series C,
0.010% VRD | | | 14,900,000 | | | | 14,900,000 | |
Livermore Redevelopment Agency Multi-Family Revenue Refunding (Housing Livermore), Series A, (FNMA Insured),
0.010%, VRD | | | 6,700,000 | | | | 6,700,000 | |
Los Angeles Water and Power Revenue,
Subseries B-3,
0.010% VRD | | | 12,420,000 | | | | 12,420,000 | |
Subseries B-5,
0.010% VRD | | | 2,000,000 | | | | 2,000,000 | |
51
UBS RMA California Municipal Money Fund
Statement of net assets—December 31, 2015 (unaudited)
| | | | | | | | |
| Security description | | Face
amount | | | Value | |
| Municipal bonds and notes—(continued) | | | | | |
Los Angeles Water and Power Revenue,—(concluded)
Subseries B-6,
0.010% VRD | | $ | 9,000,000 | | | $ | 9,000,000 | |
Subseries B-8,
0.010% VRD | | | 8,400,000 | | | | 8,400,000 | |
Lower Neches Valley Authority Industrial Development Corp. Revenue (ExxonMobil Project),
0.010%, VRD | | | 4,250,000 | | | | 4,250,000 | |
Lower Neches Valley Texas Authority Industrial Development Corp. Revenue (ExxonMobil),
0.010%, VRD | | | 2,500,000 | | | | 2,500,000 | |
Manteca Redevelopment Agency Tax Allocation Refunding (Sub-Amended Merged Project),
0.010%, VRD | | | 3,185,000 | | | | 3,185,000 | |
Martinez Multi-Family Housing Revenue Refunding (Muirwood Garden Apartments), Series A, (FNMA Insured),
0.010%, VRD | | | 6,800,000 | | | | 6,800,000 | |
Metropolitan Water District Southern California Waterworks Revenue (Citigroup Eagle Class A, Certificates 20070071),
0.020%, VRD1,2 | | | 10,145,000 | | | | 10,145,000 | |
Metropolitan Water District Southern California Waterworks Revenue Refunding, Series A-2,
0.010%, VRD | | | 12,270,000 | | | | 12,270,000 | |
Metropolitan Water District Southern California Waterworks Revenue, Series B-3,
0.010%, VRD | | | 10,550,000 | | | | 10,550,000 | |
Missouri State Health & Educational Facilities Authority Educational Facilities Revenue (The Washington University), Series D,
0.010%, VRD | | | 2,800,000 | | | | 2,800,000 | |
Modesto Water Revenue Certificates of Participation Refunding, Series A,
0.010%, VRD | | | 33,055,000 | | | | 33,055,000 | |
Orange County Apartment Development Revenue Refunding (Villas La Paz), Series F, (FNMA Insured),
0.010%, VRD | | | 11,230,000 | | | | 11,230,000 | |
Orange County Water District Revenue Certificates of Participation, Series A,
0.010%, VRD | | | 22,765,000 | | | | 22,765,000 | |
52
UBS RMA California Municipal Money Fund
Statement of net assets—December 31, 2015 (unaudited)
| | | | | | | | |
| Security description | | Face
amount | | | Value | |
| Municipal bonds and notes—(concluded) | | | | | |
Sacramento Municipal Utility District, Series L,
0.010%, VRD | | $ | 14,720,000 | | | $ | 14,720,000 | |
San Bernardino County Multi-Family Revenue Refunding (Housing Evergreen Apartments), Series A, (FNMA Insured),
0.020%, VRD | | | 16,600,000 | | | | 16,600,000 | |
San Bernardino County Multi-Family Revenue Refunding (Housing Mortgage—Mountain View), Series A, (FNMA Insured),
0.020%, VRD | | | 3,650,000 | | | | 3,650,000 | |
San Diego County Regional Transportation Commission Sales Tax Revenue (Limited Tax),
Series A,
0.010% VRD | | | 22,630,000 | | | | 22,630,000 | |
Series B,
0.010% VRD | | | 12,250,000 | | | | 12,250,000 | |
San Francisco City and County Airports Community International Airport Revenue Refunding, Second Series 36C,
0.010%, VRD | | | 5,000,000 | | | | 5,000,000 | |
Santa Clara Valley Transportation Authority Sales Tax Revenue Refunding,
Series A,
0.010% VRD | | | 3,860,000 | | | | 3,860,000 | |
Series B,
0.010% VRD | | | 24,450,000 | | | | 24,450,000 | |
Series C,
0.010% VRD | | | 5,330,000 | | | | 5,330,000 | |
Valdez Marine Terminal Revenue Refunding (Exxon Pipeline Co. Project), Series B,
0.010%, VRD | | | 6,000,000 | | | | 6,000,000 | |
West Covina Public Financing Authority Lease Revenue (Golf Course Project), Series B,
0.020%, VRD | | | 3,730,000 | | | | 3,730,000 | |
West Covina Public Financing Authority Lease Revenue, Series A,
0.020%, VRD | | | 5,690,000 | | | | 5,690,000 | |
Total municipal bonds and notes (cost—$638,899,300) | | | | 638,899,300 | |
53
UBS RMA California Municipal Money Fund
Statement of net assets—December 31, 2015 (unaudited)
| | | | | | | | |
| Security description | | Face
amount | | | Value | |
| Tax-exempt commercial paper—12.40% | | | | | |
California Health Facilities Financing Authority Revenue Refunding (Stanford Hospital),
Series B-2, Subseries 1,
0.060%, due 02/03/16 | | $ | 8,000,000 | | | $ | 8,000,000 | |
Series B-2, Subseries 2,
0.070%, due 03/03/16 | | | 8,000,000 | | | | 8,000,000 | |
Los Angeles County Capital Asset Lease, | | | | | | | | |
0.040%, due 02/09/16 | | | 1,875,000 | | | | 1,875,000 | |
0.060%, due 02/09/16 | | | 12,000,000 | | | | 12,000,000 | |
0.070%, due 03/16/16 | | | 15,000,000 | | | | 15,000,000 | |
Los Angeles County Department of Water & Power, | | | | | | | | |
0.040%, due 02/04/16 | | | 5,000,000 | | | | 5,000,000 | |
0.080%, due 03/17/16 | | | 10,000,000 | | | | 10,000,000 | |
Sacramento Municipal Utility District, | | | | | | | | |
0.030%, due 02/04/16 | | | 10,000,000 | | | | 10,000,000 | |
0.030%, due 02/05/16 | | | 5,000,000 | | | | 5,000,000 | |
San Diego County Water Authority, | | | | | | | | |
0.040%, due 01/12/16 | | | 6,250,000 | | | | 6,250,000 | |
0.030%, due 02/04/16 | | | 17,050,000 | | | | 17,050,000 | |
San Francisco City and County Airports Community International Airport Revenue, | | | | | | | | |
0.080%, due 02/16/16 | | | 10,000,000 | | | | 10,000,000 | |
Santa Clara Valley Water District, | | | | | | | | |
0.050%, due 02/04/16 | | | 12,830,000 | | | | 12,830,000 | |
State of California, | | | | | | | | |
0.050%, due 02/22/16 | | | 8,000,000 | | | | 8,000,000 | |
Total tax-exempt commercial paper (cost—$129,005,000) | | | | 129,005,000 | |
| US government obligations3—23.83% | |
US Treasury Bills | | | | | | | | |
0.142%, due 01/07/16 | | | 95,000,000 | | | | 94,997,841 | |
0.170%, due 01/14/16 | | | 75,000,000 | | | | 74,995,396 | |
0.010%, due 01/28/16 | | | 23,000,000 | | | | 23,000,172 | |
54
UBS RMA California Municipal Money Fund
Statement of net assets—December 31, 2015 (unaudited)
| | | | | | | | |
| Security description | | Face
amount | | | Value | |
| US government obligations3—(concluded) | |
0.005%, due 02/04/16 | | $ | 28,000,000 | | | $ | 27,999,868 | |
0.151%, due 02/11/16 | | | 27,000,000 | | | | 26,995,357 | |
Total US government obligations
(cost—$247,988,634) | | | | 247,988,634 | |
Total investments (cost—$1,015,892,934
which approximates cost for federal income tax
purposes)—97.64% | | | | | | | 1,015,892,934 | |
| Other assets in excess of liabilities—2.36% | | | | | | | 24,549,687 | |
Net assets (applicable to 1,040,417,785 shares
of beneficial interest outstanding equivalent to
$1.00 per share)—100.00% | | | | | | $ | 1,040,442,621 | |
For a listing of defined portfolio acronyms that are used throughout the Statement of net assets, please refer to page 63.
Fair valuation summary
The following is a summary of the fair valuations according to the inputs used as of December 31, 2015 in valuing the Fund’s investments:
| | | | | | | | | | | | | | | | |
| Description | | Unadjusted
quoted prices
in active
markets for
identical
investments
(Level 1) | | | Other
significant
observable
inputs
(Level 2) | | | Unobservable
inputs (Level 3) | | | Total | |
| Municipal bonds and notes | | $ | — | | | $ | 638,899,300 | | | $ | — | | | $ | 638,899,300 | |
| Tax-exempt commercial paper | | | — | | | | 129,005,000 | | | | — | | | | 129,005,000 | |
| US government obligations | | | — | | | | 247,988,634 | | | | — | | | | 247,988,634 | |
| Total | | $ | — | | | $ | 1,015,892,934 | | | $ | — | | | $ | 1,015,892,934 | |
At December 31, 2015, there were no transfers between Level 1 and Level 2.
55
UBS RMA California Municipal Money Fund
Statement of net assets—December 31, 2015 (unaudited)
Portfolio footnotes
| 1 | Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933. These securities, which represent 2.08% of net assets as of December 31, 2015, are considered liquid and may be resold in transactions exempt from registration, normally to qualified institutional buyers. |
| 2 | The Fund does not directly own the municipal security indicated; the Fund owns an interest in a special purpose entity that, in turn, owns the underlying municipal security. The special purpose entity permits the Fund to own interests in underlying assets, but in a manner structured to provide certain advantages not inherent in the underlying bonds (e.g., enhanced liquidity, yields linked to short-term rates). |
| 3 | Rates shown are the discount rates at date of purchase unless otherwise noted. |
56
See accompanying notes to financial statements
UBS RMA New York Municipal Money Fund
Statement of net assets—December 31, 2015 (unaudited)
| | | | | | | | |
| Security description | | Face
amount | | | Value | |
| Municipal bonds and notes—77.86% | | | | | | | | |
New York State Dormitory Authority Revenue (Columbia University), Series B,
0.010%, VRD | | $ | 9,500,000 | | | $ | 9,500,000 | |
New York State Dormitory Authority Revenue Non-State Supported Debt (Blythedale Children’s Hospital),
0.010%, VRD | | | 7,560,000 | | | | 7,560,000 | |
New York State Dormitory Authority Revenue Non-State Supported Debt (Catholic Health System),
0.010%, VRD | | | 2,150,000 | | | | 2,150,000 | |
New York State Dormitory Authority Revenue Non-State Supported Debt (Columbia University), Series A,
0.010%, VRD | | | 4,200,000 | | | | 4,200,000 | |
New York State Dormitory Authority Revenue Non-State Supported Debt (Northern Westchester Association),
0.010%, VRD | | | 4,915,000 | | | | 4,915,000 | |
New York State Dormitory Authority Revenue Non-State Supported Debt (Rockefeller University),
Series A,
0.010% VRD | | | 5,500,000 | | | | 5,500,000 | |
Series A-2,
0.010% VRD | | | 10,400,000 | | | | 10,400,000 | |
New York State Dormitory Authority Revenue Non-State Supported Debt (Royal), Series A, (FNMA Insured),
0.010%, VRD | | | 8,280,000 | | | | 8,280,000 | |
New York State Dormitory Authority Revenue Non-State Supported Debt (Senior Community, Inc.),
0.010%, VRD | | | 2,550,000 | | | | 2,550,000 | |
New York State Dormitory Authority Revenue Non-State Supported Debt (St. John’s University), Series B-1,
0.010%, VRD | | | 5,820,000 | | | | 5,820,000 | |
New York State Dormitory Authority Revenue Refunding, Series A,
2.000%, due 03/15/16 | | | 21,500,000 | | | | 21,581,033 | |
New York State Dormitory Authority Revenue State Supported Debt (City University),
Series C,
0.010% VRD | | | 5,990,000 | | | | 5,990,000 | |
Series D,
0.010% VRD | | | 16,300,000 | | | | 16,300,000 | |
New York State Dormitory Authority Revenue State Supported Debt (Cornell University), Series A,
0.010%, VRD | | | 10,630,000 | | | | 10,630,000 | |
57
UBS RMA New York Municipal Money Fund
Statement of net assets—December 31, 2015 (unaudited)
| | | | | | | | |
| Security description | | Face
amount | | | Value | |
| Municipal bonds and notes—(continued) | | | | | | | | |
New York State Dormitory Authority Revenue State Supported Debt (University of Rochester),
Series A,
0.010% VRD | | $ | 1,400,000 | | | $ | 1,400,000 | |
Series B,
0.010% VRD | | | 13,215,000 | | | | 13,215,000 | |
New York State Environmental Facilities Corp. State Revolving Revenue Refunding, (Green Bonds),
Series D,
5.000%, due 03/15/16 | | | 6,422,500 | | | | 6,485,404 | |
New York State Housing Finance Agency (Riverside Center 2 Housing), Series A-2,
0.010%, VRD | | | 5,000,000 | | | | 5,000,000 | |
New York State Housing Finance Agency Affordable Housing Revenue (Housing Bowery Place I), Series A, (FHLMC Insured),
0.010%, VRD | | | 23,600,000 | | | | 23,600,000 | |
New York State Housing Finance Agency Revenue (20 River Terrace Housing), Series A, (FNMA Insured),
0.010%, VRD | | | 8,700,000 | | | | 8,700,000 | |
New York State Housing Finance Agency Revenue (316 11th Avenue Housing), Series A, (FNMA Insured),
0.010%, VRD | | | 16,240,000 | | | | 16,240,000 | |
New York State Housing Finance Agency Revenue (Dock Street), Series A,
0.010%, VRD | | | 10,000,000 | | | | 10,000,000 | |
New York State Housing Finance Agency Revenue (North End), Series A, (FNMA Insured),
0.010%, VRD | | | 9,600,000 | | | | 9,600,000 | |
New York State Thruway Authority Personal Income Tax Revenue, Series A,
5.000%, due 03/15/16 | | | 9,955,000 | | | | 10,054,548 | |
Amherst Development Corp. Student Housing Facility Revenue (UBF Faculty-Student Housing Corp.), Series B,
0.050%, VRD | | | 5,360,000 | | | | 5,360,000 | |
Dutchess County Industrial Development Agency Civic Facilities Revenue (Marist College), Series A,
0.010%, VRD | | | 5,830,000 | | | | 5,830,000 | |
Erie County Industrial Development Agency Civic Facilities Revenue (Our Lady of Victory Corp.), Series A,
0.010%, VRD | | | 8,450,000 | | | | 8,450,000 | |
58
UBS RMA New York Municipal Money Fund
Statement of net assets—December 31, 2015 (unaudited)
| | | | | | | | |
| Security description | | Face
amount | | | Value | |
| Municipal bonds and notes—(continued) | | | | | | | | |
Harris County Cultural Education Facilities Finance Corp. Revenue (Methodist Hospital),
Subseries C-1,
0.010% VRD | | $ | 12,600,000 | | | $ | 12,600,000 | |
Subseries C-2,
0.010% VRD | | | 7,570,000 | | | | 7,570,000 | |
Illinois Finance Authority Revenue (OSF Healthcare System), Series B,
0.010%, VRD | | | 7,725,000 | | | | 7,725,000 | |
Indiana Finance Authority Environmental Revenue Refunding (Duke Energy Industrial Project),
Series A-5,
0.010%, VRD | | | 3,000,000 | | | | 3,000,000 | |
Livingston County Industrial Development Agency Civic Facilities Revenue Refunding (Red Jacket/Nicholas), Series A,
0.010%, VRD | | | 938,000 | | | | 938,000 | |
Long Island Power Authority, Series C,
0.010%, VRD | | | 13,200,000 | | | | 13,200,000 | |
Los Angeles Water and Power Revenue, Subseries B-3,
0.010%, VRD | | | 2,000,000 | | | | 2,000,000 | |
Metropolitan Transportation Authority New York Dedicated Tax Fund,
Subseries B-1,
0.010% VRD | | | 3,400,000 | | | | 3,400,000 | |
Subseries E-1,
0.010% VRD | | | 5,000,000 | | | | 5,000,000 | |
Metropolitan Transportation Authority Revenue,
Subseries E-1,
0.010% VRD | | | 5,500,000 | | | | 5,500,000 | |
Subseries E-5,
0.010% VRD | | | 3,000,000 | | | | 3,000,000 | |
Subseries G-1G,
0.010% VRD | | | 3,275,000 | | | | 3,275,000 | |
Missouri State Health & Educational Facilities Authority Educational Facilities Revenue (Washington University), Series C,
0.010%, VRD | | | 3,000,000 | | | | 3,000,000 | |
59
UBS RMA New York Municipal Money Fund
Statement of net assets—December 31, 2015 (unaudited)
| | | | | | | | |
| Security description | | Face
amount | | | Value | |
| Municipal bonds and notes—(continued) | | | | | | | | |
Nassau Health Care Corp. Revenue, Series B-1,
0.010%, VRD | | $ | 4,280,000 | | | $ | 4,280,000 | |
New York City Housing Development Corp. Multi-Family Mortgage Revenue (201 Pearl Street Development), Series A, (FNMA Insured),
0.010%, VRD | | | 9,000,000 | | | | 9,000,000 | |
New York City Housing Development Corp. Multi-Family Mortgage Revenue (Marseilles Apartments), Series A,
0.010%, VRD | | | 9,095,000 | | | | 9,095,000 | |
New York City Housing Development Corp. Multi-Family Mortgage Revenue (The Crest), Series A,
0.010%, VRD | | | 9,755,000 | | | | 9,755,000 | |
New York City Housing Development Corp. Multi-Family Rental Housing Revenue (2 Gold Street), Series A, (FNMA Insured),
0.010%, VRD | | | 9,900,000 | | | | 9,900,000 | |
New York City Housing Development Corp. Multi-Family Rental Housing Revenue (Royal Properties), Series A, (FNMA Insured),
0.010%, VRD | | | 9,000,000 | | | | 9,000,000 | |
New York City Municipal Finance Authority Water & Sewer Systems Revenue (Second General Fiscal 2008),
Series BB-2,
0.010% VRD | | | 7,000,000 | | | | 7,000,000 | |
Series BB-5,
0.010% VRD | | | 10,710,000 | | | | 10,710,000 | |
New York City Municipal Finance Authority Water & Sewer Systems Revenue (Second General Resolution),
Series B-4,
0.010% VRD | | | 12,695,000 | | | | 12,695,000 | |
Series CC-1,
0.010% VRD | | | 13,800,000 | | | | 13,800,000 | |
New York City Transitional Finance Authority Revenue (Future Tax Secured),
0.010% VRD | | | 26,100,000 | | | | 26,100,000 | |
Subseries D-4,
0.010% VRD | | | 2,315,000 | | | | 2,315,000 | |
60
UBS RMA New York Municipal Money Fund
Statement of net assets—December 31, 2015 (unaudited)
| | | | | | | | |
| Security description | | Face
amount | | | Value | |
| Municipal bonds and notes—(continued) | | | | | | | | |
New York City Trust for Cultural Resources Revenue (Metropolitan Museum of Art), Series A1,
0.010%, VRD | | $ | 11,900,000 | | | $ | 11,900,000 | |
New York City Trust for Cultural Resources Revenue (WNYC Radio, Inc.),
0.020%, VRD | | | 8,750,000 | | | | 8,750,000 | |
New York City,
Series F, Subseries F-3,
0.010% VRD | | | 4,000,000 | | | | 4,000,000 | |
Subseries D-4,
0.010% VRD | | | 15,500,000 | | | | 15,500,000 | |
Subseries L-3,
0.010% VRD | | | 1,900,000 | | | | 1,900,000 | |
Subseries L-4,
0.010% VRD | | | 13,895,000 | | | | 13,895,000 | |
Onondaga County Industrial Development Agency (Syracuse University Project), Series B,
0.010%, VRD | | | 14,250,000 | | | | 14,250,000 | |
Onondaga County Industrial Development Agency Civic Facilities Revenue (Syracuse Home Association Project),
0.010%, VRD | | | 5,160,000 | | | | 5,160,000 | |
Saratoga County Capital Resource Corp. Revenue (Saratoga Hospital Project),
0.010%, VRD | | | 3,275,000 | | | | 3,275,000 | |
Syracuse Industrial Development Agency Civic Facility Revenue (Syracuse University Project),
Series A-1,
0.010% VRD | | | 2,180,000 | | | | 2,180,000 | |
Series A-2,
0.010% VRD | | | 4,400,000 | | | | 4,400,000 | |
Syracuse Industrial Development Agency Civic Facility Revenue (Syracuse University), Series A,
0.010%, VRD | | | 9,000,000 | | | | 9,000,000 | |
Tompkins County Industrial Development Agency Revenue Civic Facilities (Cornell University), Series A,
0.010%, VRD | | | 15,915,000 | | | | 15,915,000 | |
Triborough Bridge & Tunnel Authority Revenue Refunding, Subseries B-2,
0.010%, VRD | | | 18,500,000 | | | | 18,500,000 | |
61
UBS RMA New York Municipal Money Fund
Statement of net assets—December 31, 2015 (unaudited)
| | | | | | | | |
| Security description | | Face
amount | | | Value | |
| Municipal bonds and notes—(concluded) | | | | | | | | |
Triborough Bridge & Tunnel Authority Revenue,
Series B,
0.010% VRD | | $ | 9,505,000 | | | $ | 9,505,000 | |
Series B-1,
0.010% VRD | | | 7,000,000 | | | | 7,000,000 | |
Series B-3,
0.010% VRD | | | 5,000,000 | | | | 5,000,000 | |
Subseries 2-A,
0.420% VRD | | | 6,000,000 | | | | 6,000,000 | |
University of Texas Permanent University (Funding System), Series A,
0.010%, VRD | | | 6,605,000 | | | | 6,605,000 | |
University of Texas Revenues (Financing Systems), Series B,
0.010%, VRD | | | 4,600,000 | | | | 4,600,000 | |
Total municipal bonds and notes (cost—$600,503,985) | | | | 600,503,985 | |
| US government obligations1—16.08% | |
US Treasury Bills | | | | | | | | |
0.142%, due 01/07/16 | | | 10,000,000 | | | | 9,999,764 | |
0.005%, due 01/14/16 | | | 14,000,000 | | | | 14,000,025 | |
0.030%, due 01/21/16 | | | 10,000,000 | | | | 9,999,833 | |
0.010%, due 01/28/16 | | | 23,000,000 | | | | 23,000,173 | |
0.005%, due 02/04/16 | | | 32,000,000 | | | | 31,999,849 | |
0.151%, due 02/11/16 | | | 35,000,000 | | | | 34,993,981 | |
Total US government obligations (cost—$123,993,625) | | | | 123,993,625 | |
| Tax-exempt commercial paper—3.24% | | | | | | | | |
New York State Power Authority, | | | | | | | | |
0.050%, due 02/03/16 | | | 15,000,000 | | | | 15,000,000 | |
0.030%, due 01/07/16 | | | 10,000,000 | | | | 10,000,000 | |
Total tax-exempt commercial paper (cost—$25,000,000) | | | | 25,000,000 | |
Total investments (cost—$749,497,610
which approximates cost for federal income tax purposes)—97.18% | | | | | | | 749,497,610 | |
| Other assets in excess of liabilities—2.82% | | | | | | | 21,785,195 | |
Net assets (applicable to 771,251,564 shares
of beneficial interest outstanding equivalent to
$1.00 per share)—100.00% | | | | | | $ | 771,282,805 | |
62
UBS RMA New York Municipal Money Fund
Statement of net assets—December 31, 2015 (unaudited)
Fair valuation summary
The following is a summary of the fair valuations according to the inputs used as of December 31, 2015 in valuing the Fund’s investments:
| | | | | | | | | | | | | | | | |
| Description | | Unadjusted
quoted prices
in active
markets for
identical
investments
(Level 1) | | | Other
significant
observable
inputs
(Level 2) | | | Unobservable
inputs (Level 3) | | | Total | |
| Municipal bonds and notes | | | $— | | | | $600,503,985 | | | | $— | | | | $600,503,985 | |
| US government obligations | | | — | | | | 123,993,625 | | | | — | | | | 123,993,625 | |
| Tax-exempt commercial paper | | | — | | | | 25,000,000 | | | | — | | | | 25,000,000 | |
| Total | | | $— | | | | $749,497,610 | | | | $— | | | | $749,497,610 | |
At December 31, 2015, there were no transfers between Level 1 and Level 2.
Portfolio footnotes
| 1 | Rates shown are the discount rates at date of purchase unless otherwise noted. |
Portfolio acronyms
| | |
| AGM | | Assured Guaranty Municipal Corporation |
| CCAO | | County Commissioners Association of Ohio |
| FGIC | | Financial Guaranty Insurance Company |
| FHLMC | | Federal Home Loan Mortgage Corporation |
| FNMA | | Federal National Mortgage Association |
| PUTTERs | | Puttable Tax-Exempt Receipts |
| ROCS | | Reset Option Certificates |
| SCSDE | | South Carolina School District Enhancement |
| STRIP | | Separate Trading of Registered Interest and Principal of Securities |
| VRD | | Variable rate demand notes are payable on demand. The interest rates shown are the current rates as of December 31, 2015 and reset periodically. |
63
See accompanying notes to financial statements
UBS RMA
Statement of operations
| | | | | | | | |
| | | For the six months ended
December 31, 2015 (unaudited) | |
| | |
| | | Money Market Portfolio | | | U.S. Government Portfolio | |
| Investment income: | | | | | | | | |
| Interest | | $ | 4,572,008 | | | $ | 1,100,498 | |
| | |
| Expenses: | | | | | | | | |
| Investment advisory and administration fees | | | 8,224,226 | | | | 3,026,370 | |
| Service fees | | | 3,333,585 | | | | 1,198,401 | |
| Transfer agency and related services fees | | | 587,251 | | | | 60,719 | |
| Custody and accounting fees | | | 217,302 | | | | 78,125 | |
| Professional fees | | | 73,810 | | | | 69,867 | |
| Insurance fees | | | 64,930 | | | | 23,412 | |
| Directors’/Trustees’ fees | | | 47,418 | | | | 23,425 | |
| Reports and notices to shareholders | | | 43,325 | | | | 8,576 | |
| State registration fees | | | 39,324 | | | | 13,763 | |
| Other expenses | | | 30,672 | | | | 18,884 | |
| | | | 12,661,843 | | | | 4,521,542 | |
| Fee waivers and/or expense reimbursements by investment advisor/administrator/distributor | | | (8,312,903 | ) | | | (3,501,234 | ) |
| Net expenses | | | 4,348,940 | | | | 1,020,308 | |
| Net investment income | | | 223,068 | | | | 80,190 | |
| Net realized gain (loss) | | | 41,546 | | | | 29,603 | |
| Net increase in net assets resulting from operations | | $ | 264,614 | | | $ | 109,793 | |
64
See accompanying notes to financial statements
| | | | | | | | | | |
For the six months ended
December 31, 2015 (unaudited) | |
| | |
Tax-Free Fund | | | California Municipal Money Fund | | | New York Municipal Money Fund | |
| | | | | | | | | | |
| $ | 441,383 | | | $ | 102,428 | | | $ | 78,591 | |
| | |
| | | | | | | | | | |
| | 5,640,310 | | | | 1,822,495 | | | | 1,562,679 | |
| | 2,176,601 | | | | 657,345 | | | | 546,194 | |
| | 436,032 | | | | 77,581 | | | | 66,707 | |
| | 141,893 | | | | 42,846 | | | | 35,603 | |
| | 73,249 | | | | 66,878 | | | | 66,622 | |
| | 39,111 | | | | 10,903 | | | | 9,592 | |
| | 31,690 | | | | 16,343 | | | | 15,435 | |
| | 33,422 | | | | 7,555 | | | | 6,806 | |
| | 28,808 | | | | 15,211 | | | | 13,685 | |
| | 23,308 | | | | 15,100 | | | | 14,553 | |
| | 8,624,424 | | | | 2,732,257 | | | | 2,337,876 | |
| | | | | | | | | | |
| | | | | | | | | | |
| | (8,328,686 | ) | | | (2,673,815 | ) | | | (2,295,832 | ) |
| | 295,738 | | | | 58,442 | | | | 42,044 | |
| | 145,645 | | | | 43,986 | | | | 36,547 | |
| | 22,508 | | | | (125 | ) | | | (189 | ) |
| | | | | | | | | | |
| $ | 168,153 | | | $ | 43,861 | | | $ | 36,358 | |
65
See accompanying notes to financial statements
UBS RMA
Statement of changes in net assets
| | | | | | | | |
| | | For the six months ended December 31, 2015
(unaudited) | | | For the year ended June 30, 2015
| |
| UBS RMA Money Market Portfolio | | | | | |
| From operations: | | | | | | | | |
| Net investment income | | $ | 223,068 | | | $ | 482,872 | |
| Net realized gain | | | 41,546 | | | | 12,178 | |
| Net increase in net assets resulting from operations | | | 264,614 | | | | 495,050 | |
| Dividends and distributions to shareholders from: | | | | | | | | |
| Net investment income | | | (223,068 | ) | | | (482,872 | ) |
| Net realized gains | | | (10,377 | ) | | | (1,801 | ) |
| Total dividends and distributions to shareholders | | | (233,445 | ) | | | (484,673 | ) |
| Net increase (decrease) in net assets from capital share transactions | | | 519,235,692 | | | | (1,009,279,802 | ) |
| Net increase (decrease) in net assets | | | 519,266,861 | | | | (1,009,269,425 | ) |
| Net assets: | | | | | | | | |
| Beginning of period | | | 4,154,489,225 | | | | 5,163,758,650 | |
| End of period | | $ | 4,673,756,086 | | | $ | 4,154,489,225 | |
| Accumulated undistributed net investment income | | $ | — | | | $ | — | |
| |
| UBS RMA U.S. Government Portfolio | | | | | |
| From operations: | | | | | | | | |
| Net investment income | | $ | 80,190 | | | $ | 172,748 | |
| Net realized gain | | | 29,603 | | | | 20,105 | |
| Net increase in net assets resulting from operations | | | 109,793 | | | | 192,853 | |
| Dividends and distributions to shareholders from: | | | | | | | | |
| Net investment income | | | (80,190 | ) | | | (172,748 | ) |
| Net realized gains | | | (40,254 | ) | | | (15,273 | ) |
| Total dividends and distributions to shareholders | | | (120,444 | ) | | | (188,021 | ) |
| Net increase (decrease) in net assets from capital share transactions | | | 48,247,780 | | | | (78,956,733 | ) |
| Net increase (decrease) in net assets | | | 48,237,129 | | | | (78,951,901 | ) |
| Net assets: | | | | | | | | |
| Beginning of period | | | 1,586,142,100 | | | | 1,665,094,001 | |
| End of period | | $ | 1,634,379,229 | | | $ | 1,586,142,100 | |
| Accumulated undistributed net investment income | | $ | — | | | $ | — | |
66
See accompanying notes to financial statements
UBS RMA
Statement of changes in net assets
| | | | | | | | |
| | | For the six months ended December 31, 2015
(unaudited) | | | For the year ended
June 30, 2015
| |
| UBS RMA Tax-Free Fund | | | | | |
| From operations: | | | | | | | | |
| Net investment income | | $ | 145,645 | | | $ | 297,111 | |
| Net realized gain | | | 22,508 | | | | 96,803 | |
| Net increase in net assets resulting from operations | | | 168,153 | | | | 393,914 | |
| Dividends and distributions to shareholders from: | | | | | | | | |
| Net investment income | | | (145,645 | ) | | | (297,111 | ) |
| Net realized gains | | | (117,065 | ) | | | (63,472 | ) |
| Total dividends and distributions to shareholders | | | (262,710 | ) | | | (360,583 | ) |
| Net increase (decrease) in net assets from capital share transactions | | | 151,422,789 | | | | (142,392,099 | ) |
| Net increase (decrease) in net assets | | | 151,328,232 | | | | (142,358,768 | ) |
| Net assets: | | | | | | | | |
| Beginning of period | | | 2,811,030,440 | | | | 2,953,389,208 | |
| End of period | | $ | 2,962,358,672 | | | $ | 2,811,030,440 | |
| Accumulated undistributed net investment income | | $ | — | | | $ | — | |
| |
| UBS RMA California Municipal Money Fund | | | | | |
| From operations: | | | | | | | | |
| Net investment income | | $ | 43,986 | | | $ | 81,459 | |
| Net realized gain (loss) | | | (125 | ) | | | 16,541 | |
| Net increase in net assets resulting from operations | | | 43,861 | | | | 98,000 | |
| Dividends and distributions to shareholders from: | | | | | | | | |
| Net investment income | | | (43,986 | ) | | | (81,459 | ) |
| Net realized gains | | | (3,840 | ) | | | (44,102 | ) |
| Total dividends and distributions to shareholders | | | (47,826 | ) | | | (125,561 | ) |
| Net increase in net assets from beneficial interest transactions | | | 291,120,661 | | | | 15,627,349 | |
| Net increase in net assets | | | 291,116,696 | | | | 15,599,788 | |
| Net assets: | | | | | | | | |
| Beginning of period | | | 749,325,925 | | | | 733,726,137 | |
| End of period | | $ | 1,040,442,621 | | | $ | 749,325,925 | |
| Accumulated undistributed net investment income | | $ | — | | | $ | — | |
67
See accompanying notes to financial statements
UBS RMA
Statement of changes in net assets
| | | | | | | | |
| | | For the six months ended December 31, 2015
(unaudited) | | | For the year ended
June 30, 2015
| |
| UBS RMA New York Municipal Money Fund | | | | | |
| From operations: | | | | | | | | |
| Net investment income | | $ | 36,547 | | | $ | 70,610 | |
| Net realized gain (loss) | | | (189 | ) | | | 20,632 | |
| Net increase in net assets resulting from operations | | | 36,358 | | | | 91,242 | |
| Dividends and distributions to shareholders from: | | | | | | | | |
| Net investment income | | | (36,547 | ) | | | (70,610 | ) |
| Net realized gains | | | (1,606 | ) | | | (19,026 | ) |
| Total dividends and distributions to shareholders | | | (38,153 | ) | | | (89,636 | ) |
| Net increase (decrease) in net assets from beneficial interest transactions | | | 121,668,546 | | | | (2,738,551 | ) |
| Net increase (decrease) in net assets | | | 121,666,751 | | | | (2,736,945 | ) |
| Net assets: | | | | | | | | |
| Beginning of period | | | 649,616,054 | | | | 652,352,999 | |
| End of period | | $ | 771,282,805 | | | $ | 649,616,054 | |
| Accumulated undistributed net investment income | | $ | — | | | $ | — | |
68
See accompanying notes to financial statements
This page intentionally left blank.
69
UBS RMA Money Market Portfolio
Financial highlights
Selected data for a share of common stock outstanding throughout each period is presented below:
| | | | |
| | | Six months ended December 31, 2015 (unaudited) | |
| Net asset value, beginning of period | | | $1.00 | |
| Net investment income | | | 0.000 | 2 |
| Net realized gain | | | 0.000 | 2 |
| Net increase from operations | | | 0.000 | 2 |
| Dividends from net investment income | | | (0.000 | )2 |
| Distributions from net realized gains | | | (0.000 | )2 |
| Total dividends and distributions | | | (0.000 | )2 |
| Net asset value, end of period | | | $1.00 | |
| Total investment return3 | | | 0.01 | % |
| Ratios to average net assets: | | | | |
| Expenses before fee waivers and/or expense reimbursements | | | 0.57 | %5 |
| Expenses after fee waivers and/or expense reimbursements | | | 0.20 | %5 |
| Net investment income | | | 0.01 | %5 |
| Supplemental data: | | | | |
| Net assets, end of period (in millions) | | | $4,674 | |
| 1 | The investment advisory and administration functions for the Portfolio were transferred from UBS Financial Services Inc. to UBS Asset Management (Americas) Inc. (“UBS AM”) on March 1, 2011. As a result, the Portfolio no longer has a sub-advisor/sub-administrator but is managed directly by UBS AM. |
| 2 | Amount represents less than $0.0005 per share. |
| 3 | 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 Portfolio distributions. |
| 4 | Payment from investment advisor as disclosed on page 86 had no impact on the Portfolio’s total investment return and represents less than $0.0005 per share. |
70
See accompanying notes to financial statements
| | | | | | | | | | | | | | | | | | |
| Years ended June 30, | |
| 2015 | | | 2014 | | | 2013 | | | 2012 | | | 20111 | |
| | $1.00 | | | | $1.00 | | | | $1.00 | | | | $1.00 | | | | $1.00 | |
| | 0.000 | 2 | | | 0.000 | 2 | | | 0.000 | 2 | | | 0.000 | 2 | | | 0.000 | 2 |
| | 0.000 | 2 | | | 0.000 | 2 | | | 0.000 | 2 | | | 0.000 | 2 | | | 0.000 | 2 |
| | 0.000 | 2 | | | 0.000 | 2 | | | 0.000 | 2 | | | 0.000 | 2 | | | 0.000 | 2 |
| | (0.000 | )2 | | | (0.000 | )2 | | | (0.000 | )2 | | | (0.000 | )2 | | | (0.000 | )2 |
| | (0.000 | )2 | | | (0.000 | )2 | | | (0.000 | )2 | | | — | | | | (0.000 | )2 |
| | (0.000 | )2 | | | (0.000 | )2 | | | (0.000 | )2 | | | (0.000 | )2 | | | (0.000 | )2 |
| | $1.00 | | | | $1.00 | | | | $1.00 | | | | $1.00 | | | | $1.00 | |
| | 0.01 | % | | | 0.01 | %4 | | | 0.01 | % | | | 0.01 | % | | | 0.01 | % |
| | | | | | | | | | | | | | | | | | |
| | 0.57 | % | | | 0.56 | % | | | 0.55 | % | | | 0.55 | % | | | 0.64 | % |
| | 0.16 | % | | | 0.15 | % | | | 0.21 | % | | | 0.17 | % | | | 0.26 | % |
| | 0.01 | % | | | 0.01 | % | | | 0.01 | % | | | 0.01 | % | | | 0.01 | % |
| | | | | | | | | | | | | | | | | | |
| | $4,154 | | | | $5,164 | | | | $11,081 | | | | $13,032 | | | | $15,379 | |
71
See accompanying notes to financial statements
UBS RMA U.S. Government Portfolio
Financial highlights
Selected data for a share of common stock outstanding throughout each period is presented below:
| | | | |
| | | Six months ended
December 31, 2015
(unaudited) | |
| Net asset value, beginning of period | | | $1.00 | |
| Net investment income | | | 0.000 | 2 |
| Net realized gain | | | 0.000 | 2 |
| Net increase from operations | | | 0.000 | 2 |
| Dividends from net investment income | | | (0.000 | )2 |
| Distributions from net realized gains | | | (0.000 | )2 |
| Total dividends and distributions | | | (0.000 | )2 |
| Net asset value, end of period | | | $1.00 | |
| Total investment return3 | | | 0.01 | % |
| Ratios to average net assets: | | | | |
| Expenses before fee waivers and/or expense reimbursements | | | 0.57 | %5 |
| Expenses after fee waivers and/or expense reimbursements | | | 0.13 | %5 |
| Net investment income | | | 0.01 | %5 |
| Supplemental data: | | | | |
| Net assets, end of period (in millions) | | | $1,634 | |
| 1 | The investment advisory and administration functions for the Portfolio were transferred from UBS Financial Services Inc. to UBS Asset Management (Americas) Inc. (“UBS AM”) on March 1, 2011. As a result, the Portfolio no longer has a sub-advisor/sub-administrator but is managed directly by UBS AM. |
| 2 | Amount represents less than $0.0005 per share. |
| 3 | 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 Portfolio distributions. |
| 4 | Payment from investment advisor as disclosed on page 86 had no impact on the Portfolio’s total investment return and represents less than $0.0005 per share. |
72
See accompanying notes to financial statements
| | | | | | | | | | | | | | | | | | |
| Years ended June 30, | |
| 2015 | | | 2014 | | | 2013 | | | 2012 | | | 20111 | |
| | $1.00 | | | | $1.00 | | | | $1.00 | | | | $1.00 | | | | $1.00 | |
| | 0.000 | 2 | | | 0.000 | 2 | | | 0.000 | 2 | | | 0.000 | 2 | | | 0.000 | 2 |
| | 0.000 | 2 | | | 0.000 | 2 | | | 0.000 | 2 | | | 0.000 | 2 | | | 0.000 | 2 |
| | 0.000 | 2 | | | 0.000 | 2 | | | 0.000 | 2 | | | 0.000 | 2 | | | 0.000 | 2 |
| | (0.000 | )2 | | | (0.000 | )2 | | | (0.000 | )2 | | | (0.000 | )2 | | | (0.000 | )2 |
| | (0.000 | )2 | | | (0.000 | )2 | | | (0.000 | )2 | | | (0.000 | )2 | | | (0.000 | )2 |
| | (0.000 | )2 | | | (0.000 | )2 | | | (0.000 | )2 | | | (0.000 | )2 | | | (0.000 | )2 |
| | $1.00 | | | | $1.00 | | | | $1.00 | | | | $1.00 | | | | $1.00 | |
| | 0.01 | % | | | 0.01 | %4 | | | 0.01 | % | | | 0.01 | % | | | 0.01 | % |
| | | | | | | | | | | | | | | | | | |
| | 0.56 | % | | | 0.55 | % | | | 0.54 | % | | | 0.53 | % | | | 0.54 | % |
| | 0.08 | % | | | 0.07 | % | | | 0.14 | % | | | 0.10 | % | | | 0.19 | % |
| | 0.01 | % | | | 0.01 | % | | | 0.01 | % | | | 0.01 | % | | | 0.01 | % |
| | | | | | | | | | | | | | | | | | |
| | $1,586 | | | | $1,665 | | | | $2,626 | | | | $3,782 | | | | $3,644 | |
73
See accompanying notes to financial statements
UBS RMA Tax-Free Fund
Financial highlights
Selected data for a share of common stock outstanding throughout each period is presented below:
| | | | |
| | | Six months ended
December 31, 2015
(unaudited) | |
| Net asset value, beginning of period | | | $1.00 | |
| Net investment income | | | 0.000 | 2 |
| Net realized gain | | | 0.000 | 2 |
| Net increase from operations | | | 0.000 | 2 |
| Dividends from net investment income | | | (0.000 | )2 |
| Distributions from net realized gains | | | (0.000 | )2 |
| Total dividends and distributions | | | (0.000 | )2 |
| Net asset value, end of period | | | $1.00 | |
| Total investment return3 | | | 0.01 | % |
| Ratios to average net assets: | | | | |
| Expenses before fee waivers and/or expense reimbursements | | | 0.59 | %5 |
| Expenses after fee waivers and/or expense reimbursements | | | 0.02 | %5 |
| Net investment income | | | 0.01 | %5 |
| Supplemental data: | | | | |
| Net assets, end of period (in millions) | | | $2,962 | |
| 1 | The investment advisory and administration functions for the Fund were transferred from UBS Financial Services Inc. to UBS Asset Management (Americas) Inc. (“UBS AM”) on March 1, 2011. As a result, the Fund no longer has a sub-advisor/sub-administrator but is managed directly by UBS AM. |
| 2 | Amount represents less than $0.0005 per share. |
| 3 | 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. |
| 4 | Payment from investment advisor as disclosed on page 86 had no impact on the Fund’s total investment return and represents less than $0.0005 per share. |
74
See accompanying notes to financial statements
| | | | | | | | | | | | | | | | | | |
| Years ended June 30, | |
| 2015 | | | 2014 | | | 2013 | | | 2012 | | | 20111 | |
| | $1.00 | | | | $1.00 | | | | $1.00 | | | | $1.00 | | | | $1.00 | |
| | 0.000 | 2 | | | 0.000 | 2 | | | 0.000 | 2 | | | 0.000 | 2 | | | 0.000 | 2 |
| | 0.000 | 2 | | | 0.000 | 2 | | | 0.000 | 2 | | | 0.000 | 2 | | | 0.000 | 2 |
| | 0.000 | 2 | | | 0.000 | 2 | | | 0.000 | 2 | | | 0.000 | 2 | | | 0.000 | 2 |
| | (0.000 | )2 | | | (0.000 | )2 | | | (0.000 | )2 | | | (0.000 | )2 | | | (0.000 | )2 |
| | (0.000 | )2 | | | — | | | | (0.000 | )2 | | | (0.000 | )2 | | | (0.000 | )2 |
| | (0.000 | )2 | | | (0.000 | )2 | | | (0.000 | )2 | | | (0.000 | )2 | | | (0.000 | )2 |
| | $1.00 | | | | $1.00 | | | | $1.00 | | | | $1.00 | | | | $1.00 | |
| | 0.01 | % | | | 0.01 | %4 | | | 0.01 | % | | | 0.01 | % | | | 0.01 | % |
| | | | | | | | | | | | | | | | | | |
| | 0.59 | % | | | 0.59 | % | | | 0.59 | % | | | 0.58 | % | | | 0.58 | % |
| | 0.04 | % | | | 0.06 | % | | | 0.14 | % | | | 0.14 | % | | | 0.24 | % |
| | 0.01 | % | | | 0.01 | % | | | 0.01 | % | | | 0.01 | % | | | 0.01 | % |
| | | | | | | | | | | | | | | | | | |
| | $2,811 | | | | $2,953 | | | | $3,260 | | | | $3,919 | | | | $4,108 | |
75
See accompanying notes to financial statements
UBS RMA California Municipal Money Fund
Financial highlights
Selected data for a share of beneficial interest outstanding throughout each period is presented below:
| | | | |
| | | Six months ended
December 31, 2015
(unaudited) | |
| Net asset value, beginning of period | | | $1.00 | |
| Net investment income | | | 0.000 | 2 |
| Net realized gain | | | 0.000 | 2 |
| Net increase from operations | | | 0.000 | 2 |
| Dividends from net investment income | | | (0.000 | )2 |
| Distributions from net realized gains | | | (0.000 | )2 |
| Total dividends and distributions | | | (0.000 | )2 |
| Net asset value, end of period | | | $1.00 | |
| Total investment return3 | | | 0.01 | % |
| Ratios to average net assets: | | | | |
| Expenses before fee waivers and/or expense reimbursements | | | 0.62 | %5 |
| Expenses after fee waivers and/or expense reimbursements | | | 0.01 | %5 |
| Net investment income | | | 0.01 | %5 |
| Supplemental data: | | | | |
| Net assets, end of period (in millions) | | | $1,040 | |
| 1 | The investment advisory and administration functions for the Fund were transferred from UBS Financial Services Inc. to UBS Asset Management (Americas) Inc. (“UBS AM”) on March 1, 2011. As a result, the Fund no longer has a sub-advisor/sub-administrator but is managed directly by UBS AM. |
| 2 | Amount represents less than $0.0005 per share. |
| 3 | 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. |
| 4 | Payment from investment advisor as disclosed on page 86 had no impact on the Fund’s total investment return and represents less than $0.0005 per share. |
76
See accompanying notes to financial statements
| | | | | | | | | | | | | | | | | | |
| Years ended June 30, | |
| 2015 | | | 2014 | | | 2013 | | | 2012 | | | 20111 | |
| | $1.00 | | | | $1.00 | | | | $1.00 | | | | $1.00 | | | | $1.00 | |
| | 0.000 | 2 | | | 0.000 | 2 | | | 0.000 | 2 | | | 0.000 | 2 | | | 0.000 | 2 |
| | 0.000 | 2 | | | 0.000 | 2 | | | 0.000 | 2 | | | 0.000 | 2 | | | — | |
| | 0.000 | 2 | | | 0.000 | 2 | | | 0.000 | 2 | | | 0.000 | 2 | | | 0.000 | 2 |
| | (0.000 | )2 | | | (0.000 | )2 | | | (0.000 | )2 | | | (0.000 | )2 | | | (0.000 | )2 |
| | (0.000 | )2 | | | — | | | | (0.000 | )2 | | | — | | | | — | |
| | (0.000 | )2 | | | (0.000 | )2 | | | (0.000 | )2 | | | (0.000 | )2 | | | (0.000 | )2 |
| | $1.00 | | | | $1.00 | | | | $1.00 | | | | $1.00 | | | | $1.00 | |
| | 0.02 | % | | | 0.01 | %4 | | | 0.02 | % | | | 0.01 | % | | | 0.01 | % |
| | | | | | | | | | | | | | | | | | |
| | 0.63 | % | | | 0.63 | % | | | 0.63 | % | | | 0.62 | % | | | 0.63 | % |
| | 0.04 | % | | | 0.06 | % | | | 0.13 | % | | | 0.12 | % | | | 0.23 | % |
| | 0.01 | % | | | 0.01 | % | | | 0.01 | % | | | 0.01 | % | | | 0.01 | % |
| | | | | | | | | | | | | | | | | | |
| | $749 | | | | $734 | | | | $822 | | | | $894 | | | | $883 | |
77
See accompanying notes to financial statements
UBS RMA New York Municipal Money Fund
Financial highlights
Selected data for a share of beneficial interest outstanding throughout each period is presented below:
| | | | |
| | | Six months ended
December 31, 2015
(unaudited) | |
| Net asset value, beginning of period | | | $1.00 | |
| Net investment income | | | 0.000 | 2 |
| Net realized gain | | | 0.000 | 2 |
| Net increase from operations | | | 0.000 | 2 |
| Dividends from net investment income | | | (0.000 | )2 |
| Distributions from net realized gains | | | (0.000 | )2 |
| Total dividends and distributions | | | (0.000 | )2 |
| Net asset value, end of period | | | $1.00 | |
| Total investment return3 | | | 0.01 | % |
| Ratios to average net assets: | | | | |
| Expenses before fee waivers and/or expense reimbursements | | | 0.64 | %5 |
| Expenses after fee waivers and/or expense reimbursements | | | 0.01 | %5 |
| Net investment income | | | 0.01 | %5 |
| Supplemental data: | | | | |
| Net assets, end of period (in millions) | | | $771 | |
| 1 | The investment advisory and administration functions for the Fund were transferred from UBS Financial Services Inc. to UBS Asset Management (Americas) Inc. (“UBS AM”) on March 1, 2011. As a result, the Fund no longer has a sub-advisor/sub-administrator but is managed directly by UBS AM. |
| 2 | Amount represents less than $0.0005 per share. |
| 3 | 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. |
| 4 | Payment from investment advisor as disclosed on page 86 had no impact on the Fund’s total investment return and represents less than $0.0005 per share. |
78
See accompanying notes to financial statements
| | | | | | | | | | | | | | | | | | |
| Years ended June 30, | |
| 2015 | | | 2014 | | | 2013 | | | 2012 | | | 20111 | |
| | $1.00 | | | | $1.00 | | | | $1.00 | | | | $1.00 | | | | $1.00 | |
| | 0.000 | 2 | | | 0.000 | 2 | | | 0.000 | 2 | | | 0.000 | 2 | | | 0.000 | 2 |
| | 0.000 | 2 | | | — | | | | 0.000 | 2 | | | 0.000 | 2 | | | 0.000 | 2 |
| | 0.000 | 2 | | | 0.000 | 2 | | | 0.000 | 2 | | | 0.000 | 2 | | | 0.000 | 2 |
| | (0.000 | )2 | | | (0.000 | )2 | | | (0.000 | )2 | | | (0.000 | )2 | | | (0.000 | )2 |
| | (0.000 | )2 | | | — | | | | (0.000 | )2 | | | (0.000 | )2 | | | (0.000 | )2 |
| | (0.000 | )2 | | | (0.000 | )2 | | | (0.000 | )2 | | | (0.000 | )2 | | | (0.000 | )2 |
| | $1.00 | | | | $1.00 | | | | $1.00 | | | | $1.00 | | | | $1.00 | |
| | 0.01 | % | | | 0.01 | %4 | | | 0.02 | % | | | 0.01 | % | | | 0.01 | % |
| | | | | | | | | | | | | | | | | | |
| | 0.65 | % | | | 0.65 | % | | | 0.64 | % | | | 0.65 | % | | | 0.65 | % |
| | 0.04 | % | | | 0.07 | % | | | 0.14 | % | | | 0.14 | % | | | 0.24 | % |
| | 0.01 | % | | | 0.01 | % | | | 0.01 | % | | | 0.01 | % | | | 0.01 | % |
| | | | | | | | | | | | | | | | | | |
| | $650 | | | | $652 | | | | $692 | | | | $703 | | | | $760 | |
79
See accompanying notes to financial statements
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 US Securities and Exchange Commission (“SEC”) under the Investment Company Act of 1940, as amended (“1940 Act”), as open-end management investment companies. RMA Tax-Free is a diversified mutual fund and the Corporation is a series mutual fund and currently has 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” or the “Trust”) was organized under Massachusetts law by a Declaration of Trust dated November 21, 1986, and is registered with the SEC under the 1940 Act as an open-end management investment company. 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”), (RMA California, RMA New York, Money Market Portfolio, U.S. Government Portfolio and RMA Tax-Free are collectively referred to as the “Funds”.)
Each Trust or Corporation accounts separately for the assets, liabilities and operations of each series. Expenses directly attributable to each series are charged to that series’ operations; expenses which are applicable to all series are allocated among them on a pro rata basis.
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.
80
UBS RMA
Notes to financial statements (unaudited)
The Funds attempt to maintain a stable net asset value of $1.00 per share; the Funds have adopted certain investment, portfolio valuation and dividend/distribution policies in an attempt to enable them to do so. As with any money market fund, there is no assurance, however, that the Funds will be able to maintain a stable net asset value of $1.00 per share.
The Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) is the exclusive reference of authoritative US generally accepted accounting principles (“US GAAP”) recognized by the FASB to be applied by nongovernmental entities. Rules and interpretive releases of the SEC under authority of federal laws are also sources of authoritative US GAAP for SEC registrants. The Funds’ financial statements are prepared in accordance with US GAAP, which may require the use of management estimates and assumptions. Actual results could differ from those estimates. The following is a summary of significant accounting policies:
Valuation of investments—Investments are valued at amortized cost. Periodic review and monitoring of the valuation of the securities held by each Fund is performed in an effort to ensure that amortized cost approximates market value.
US GAAP requires disclosure regarding the various inputs that are used in determining the value of the Funds’ investments. These inputs are summarized into the three broad levels listed below:
Level 1—Unadjusted quoted prices in active markets for identical investments.
Level 2—Other significant observable inputs, including but not limited to, quoted prices for similar investments, interest rates, prepayment speeds and credit risks.
Level 3—Unobservable inputs inclusive of the Funds’ own assumptions in determining the fair value of investments.
In accordance with the requirements of US GAAP, a fair value hierarchy has been included near the end of each Fund’s Statement of net assets.
81
UBS RMA
Notes to financial statements (unaudited)
Repurchase agreements—Each Fund 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. Each Fund maintains custody of the underlying obligations prior to their repurchase, either through its regular custodian or through a special “tri-party” custodian or sub-custodian that maintains a separate account for both the Funds and their counterparty. The underlying collateral is valued daily in an effort 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 Funds generally have the right to liquidate the collateral and apply the proceeds in satisfaction of the obligation. Repurchase agreements involving obligations other than US government securities (such as commercial paper, corporate bonds, equities and mortgage loans) may be subject to special risks and may not have the benefit of certain protections in the event of counterparty insolvency. Moreover, repurchase agreements secured by obligations that are not eligible for direct investment under Rule 2a-7 under the 1940 Act or a Fund’s investment strategies and limitations may require the Fund to promptly dispose of such collateral if the seller or guarantor becomes insolvent. If the seller (or seller’s guarantor, if any) becomes insolvent, the Fund 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. Each Fund may participate in joint repurchase agreement transactions with other funds managed or advised by UBS Asset Management (Americas) Inc. (“UBS AM”). Money Market Portfolio and U.S. Government Portfolio may engage in repurchase agreements as part of normal investing strategies; the other Funds generally would only engage in repurchase agreement transactions as temporary or defensive investments.
Under certain circumstances, a Fund may engage in a repurchase agreement transaction with a yield of zero in order to invest cash amounts remaining in its portfolio at the end of the day in order to avoid having the Fund potentially exposed to a fee for uninvested cash held in a business account at a bank.
82
UBS RMA
Notes to financial statements (unaudited)
Investment transactions and investment income—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. Discounts are accreted and premiums are amortized as adjustments to interest income and the identified cost of investments.
Dividends and distributions—Dividends and distributions to shareholders are recorded on the ex-dividend date. The amount of dividends and distributions is determined in accordance with federal income tax regulations, which may differ from US GAAP. 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 and political developments particular to a specific industry, country, state or region.
Additionally, RMA California and RMA New York follow an investment policy of investing primarily in municipal obligations of one state under normal market conditions. Economic changes affecting each state and certain of its public bodies and municipalities may affect the ability of issuers within each state to pay interest on, or repay principal of, municipal obligations held by each of these Funds.
Investment advisor and administrator
Each Fund’s Board has approved an investment advisory and administration contract (the “Advisory Contract”) with UBS AM, under which UBS AM serves as investment advisor and administrator of the Funds. In accordance with the Advisory Contract, each Fund pays UBS
83
UBS RMA
Notes to financial statements (unaudited)
AM an investment advisory and administration fee, which is accrued daily and paid monthly, in accordance with the following schedules:
| | | | |
| Average daily net assets | | Annual rate | |
| Money Market Portfolio1: | | | | |
| Up to $1 billion | | | 0.450 | % |
| In excess of $1 billion up to $1.5 billion | | | 0.415 | |
| In excess of $1.5 billion up to $5 billion | | | 0.335 | |
| In excess of $5 billion up to $10 billion | | | 0.325 | |
| In excess of $10 billion up to $15 billion | | | 0.315 | |
| In excess of $15 billion up to $20 billion | | | 0.305 | |
| Over $20 billion | | | 0.275 | |
| U.S. Government Portfolio: | | | | |
| Up to $300 million | | | 0.450 | % |
| In excess of $300 million up to $750 million | | | 0.415 | |
| In excess of $750 million up to $1.5 billion | | | 0.335 | |
| In excess of $1.5 billion up to $5 billion | | | 0.325 | |
| In excess of $5 billion up to $10 billion | | | 0.315 | |
| In excess of $10 billion up to $15 billion | | | 0.305 | |
| In excess of $15 billion up to $20 billion | | | 0.275 | |
| Over $20 billion | | | 0.265 | |
| RMA Tax-Free: | | | | |
| Up to $1 billion | | | 0.450 | % |
| In excess of $1 billion up to $1.5 billion | | | 0.415 | |
| In excess of $1.5 billion up to $5 billion | | | 0.335 | |
| In excess of $5 billion up to $10 billion | | | 0.325 | |
| In excess of $10 billion up to $15 billion | | | 0.315 | |
| In excess of $15 billion up to $20 billion | | | 0.305 | |
| Over $20 billion | | | 0.275 | |
| 1 | UBS AM has contractually agreed to cap Money Market Portfolio’s aggregate management and shareholder services fees (paid pursuant to the Portfolio’s shareholder services plan) so that the total of these fees does not exceed 0.50% of the Portfolio’s average daily net assets. This cap results in an effective investment advisory and administration fee rate not to exceed 0.35% of the Portfolio’s average daily net assets. (UBS AM is waiving a portion of its advisory and administration fees to offset the shareholder services fees, and the contractual cap continues for as long as the Portfolio’s shareholder service plan remains in effect). For the six months ended December 31, 2015, UBS AM waived $445,861 under such agreement. |
84
UBS RMA
Notes to financial statements (unaudited)
| | | | |
| Average daily net assets | | Annual rate | |
| RMA California and RMA New York: | | | | |
| Up to $300 million | | | 0.450 | % |
| In excess of $300 million up to $750 million | | | 0.415 | |
| In excess of $750 million up to $1.5 billion | | | 0.335 | |
| In excess of $1.5 billion up to $5 billion | | | 0.325 | |
| Over $5 billion | | | 0.315 | |
At December 31, 2015, certain Funds owe or are owed by UBS AM for investment advisory and administration fees, net of fee waivers and/or expense reimbursements as follows:
| | | | |
| Fund | | Amounts due to (owed by) UBS AM | |
| Money Market Portfolio | | | $728,654 | |
| U.S. Government Portfolio | | | 242,204 | |
| RMA Tax-Free | | | (89,295 | ) |
| RMA California | | | (24,456 | ) |
| RMA New York | | | (30,744 | ) |
In addition to the above arrangements, UBS AM has undertaken to waive fees and/or reimburse expenses in the event that Fund yields drop below a certain level. This undertaking is voluntary and not contractual and may be terminated at any time. During the six months ended December 31, 2015, UBS AM voluntarily waived investment advisory and administration fees as follows:
| | | | |
| Money Market Portfolio | | $ | 4,600,872 | |
| U.S. Government Portfolio | | | 2,306,588 | |
| RMA Tax-Free | | | 6,152,085 | |
| RMA California | | | 2,016,470 | |
| RMA New York | | | 1,749,638 | |
Such voluntarily waived amounts are not subject to future recoupment.
The Funds may invest in certain affiliated entities also advised or managed by UBS AM. Investments in affiliated entities, if any, for the six months ended December 31, 2015 have been included near the end of each Fund’s Statement of net assets.
85
UBS RMA
Notes to financial statements (unaudited)
Under normal conditions, the Funds invest cash collateral from securities lending activities into an affiliated private money market fund, UBS Private Money Market Fund LLC (“Private Money Market”), which operates in compliance with most of the substantive provisions of Rule 2a-7 of the 1940 Act. Private Money Market is managed by UBS AM and is currently offered as a cash management option to mutual funds and certain other accounts managed by UBS AM. UBS AM acts as managing member and receives a management fee from Private Money Market payable monthly in arrears at the annual rate of 0.10% of Private Money Market’s average daily members’ equity, minus the aggregate operating expenses of, and incurred by, Private Money Market during each such related month, not including investment expenses (including brokerage commissions, taxes, interest charges and other costs with respect to transactions in securities) and extraordinary expenses including litigation expenses, if any. UBS AM may, in its sole discretion, waive all or any portion of the management fee to which it may be entitled from time to time in order to maintain operating expenses or net yields at a certain level. Distributions received from Private Money Market, if any, net of fee rebates paid to borrowers, would be reflected as securities lending income in the Statement of operations.
In August 2013, UBS AM made voluntary cash payments of $1,432,012, $555,987, $739,197, $438,085 and $153,594 to Money Market Portfolio, U.S. Government Portfolio, RMA Tax-Free, RMA California and RMA New York, respectively, in order to address a differential between the number of shares outstanding and the Funds’ net assets. The differential was attributable to historical, embedded capital losses that were experienced by the Funds over several years prior to the credit crisis of 2008. The voluntary payment to each Fund was not required to maintain a stable net asset value per share. The payment removed a small, historical deviation that was reflected in each Fund’s market price based and amortized cost net asset value per share.
86
UBS RMA
Notes to financial statements (unaudited)
Additional information regarding compensation to affiliate of a board member
Professor Meyer Feldberg serves as a senior advisor to Morgan Stanley, a financial services firm with which the Funds may conduct transactions, resulting in him being an interested board member of the Funds. The Funds have been informed that Professor Feldberg’s role at Morgan Stanley does not involve matters directly affecting any UBS funds. Portfolio transactions are executed through Morgan Stanley based on that firm’s ability to provide best execution of the transactions. During the six months ended December 31, 2015, the Funds purchased and sold certain securities (e.g., fixed income securities) in principal trades with Morgan Stanley having aggregate values as follows:
| | | | |
| Money Market Portfolio | | $ | 242,267,764 | |
| RMA Tax-Free | | | 73,617,000 | |
| RMA California | | | 94,862,087 | |
| RMA New York | | | 9,400,000 | |
Morgan Stanley received compensation in connection with these trades, which may have been in the form of a “mark-up” or “mark-down” of the price of the securities, a fee from the issuer for maintaining a commercial paper program, or some other form of compensation. Although the precise amount of this compensation is not generally known by the Funds’ investment advisor, it is believed that under normal circumstances it represents a small portion of the total value of the transactions.
Shareholder service plans
UBS Asset Management (US) Inc. (“UBS AM (US)”) 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 shareholder service plans, the Funds pay UBS AM (US) a monthly service fee, which is accrued daily and paid monthly at an annual rate of up to 0.15% of each Fund’s average daily net assets for providing certain shareholder services. Each Fund currently pays service fees to UBS AM (US) at the maximum annual rate of 0.15% of each Fund’s average daily net assets. UBS AM (US) has undertaken to waive fees in the event that
87
UBS RMA
Notes to financial statements (unaudited)
Fund yields drop below a certain level. This undertaking is voluntary and not contractual and may be terminated at any time. At December 31, 2015, given the impact of voluntary fee waivers, the Funds owed UBS AM (US) for such service fees as follows:
| | | | |
| Fund | | Amounts due
to UBS AM (US) | |
| Money Market Portfolio | | $ | 67,418 | |
| U.S. Government Portfolio | | | 3,749 | |
| RMA Tax-Free | | | — | |
| RMA California | | | — | |
| RMA New York | | | — | |
For the six months ended December 31, 2015, UBS AM (US) voluntarily waived service fees as follows:
| | | | |
| Money Market Portfolio | | $ | 3,266,170 | |
| U.S. Government Portfolio | | | 1,194,646 | |
| RMA Tax-Free | | | 2,176,601 | |
| RMA California | | | 657,345 | |
| RMA New York | | | 546,194 | |
Such voluntarily waived amounts are not subject to future recoupment.
Transfer agency and related services fees
UBS Financial Services Inc. provides certain services pursuant to a delegation of authority from BNY Mellon Investment Servicing (US) Inc. (“BNY Mellon”), the Funds’ transfer agent, and was compensated for these services by BNY Mellon, not the Funds.
For the six months ended December 31, 2015, UBS Financial Services Inc. received from BNY Mellon, not the Funds, total delegated services fees as follows:
| | | | |
| Money Market Portfolio | | $ | 335,138 | |
| U.S. Government Portfolio | | | 34,390 | |
| RMA Tax-Free | | | 258,618 | |
| RMA California | | | 46,120 | |
| RMA New York | | | 38,781 | |
88
UBS RMA
Notes to financial statements (unaudited)
Securities lending
Each Portfolio 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, US 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, US government securities or irrevocable letters of credit held as collateral, net of fee rebates paid to the borrower plus reasonable administrative and custody fees. Any cash collateral received is invested in Private Money Market, which is included in the Fund’s Portfolio of investments. State Street Bank and Trust Company serves as the Funds’ lending agent. At December 31, 2015, none of the Funds have any securities on loan.
Other liabilities and components of net assets
At December 31, 2015, the Funds had the following liabilities outstanding:
| | | | | | | | | | | | |
| | | Dividends payable | | | Payable for investments purchased | | | Other accrued expenses* | |
| Money Market Portfolio | | $ | 10,056 | | | $ | — | | | $ | 526,638 | |
| U.S. Government Portfolio | | | 3,567 | | | | — | | | | 142,495 | |
| RMA Tax-Free | | | 6,504 | | | | 20,000,000 | | | | 366,345 | |
| RMA California | | | 2,299 | | | | — | | | | 118,707 | |
| RMA New York | | | 1,688 | | | | — | | | | 107,941 | |
| *Excludes | investment advisory and administration and service fees. |
89
UBS RMA
Notes to financial statements (unaudited)
At December 31, 2015, the components of net assets for each of the Funds were as follows:
| | | | | | | | | | | | |
| | | Accumulated paid in capital | | | Accumulated net realized gain/(loss) | | | Total net assets | |
| Money Market Portfolio | | $ | 4,673,712,739 | | | $ | 43,347 | | | $ | 4,673,756,086 | |
| U.S. Government Portfolio | | | 1,634,388,315 | | | | (9,086 | ) | | | 1,634,379,229 | |
| RMA Tax-Free | | | 2,962,352,567 | | | | 6,105 | | | | 2,962,358,672 | |
| RMA California | | | 1,040,417,785 | | | | 24,836 | | | | 1,040,442,621 | |
| RMA New York | | | 771,251,567 | | | | 31,238 | | | | 771,282,805 | |
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 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 December 31, 2015 | | Money Market
Portfolio | | | U.S. Government
Portfolio | | | RMA Tax-Free | |
| Shares sold | | | 20,302,419,498 | | | | 4,523,931,771 | | | | 6,133,839,110 | |
| Shares repurchased | | | (19,783,399,169 | ) | | | (4,475,800,962 | ) | | | (5,982,673,200 | ) |
| Dividends reinvested | | | 215,363 | | | | 116,971 | | | | 256,879 | |
| Net increase in shares outstanding | | | 519,235,692 | | | | 48,247,780 | | | | 151,422,789 | |
| | | | | | | | | | | | |
For the year ended June 30, 2015 | | Money Market Portfolio | | | U.S. Government Portfolio | | | RMA Tax-Free | |
| Shares sold | | | 37,611,492,791 | | | | 9,208,116,705 | | | | 12,891,235,031 | |
| Shares repurchased | | | (38,621,225,416 | ) | | | (9,287,255,579 | ) | | | (13,033,978,352 | ) |
| Dividends reinvested | | | 452,823 | | | | 182,141 | | | | 351,222 | |
| Net decrease in shares outstanding | | | (1,009,279,802 | ) | | | (78,956,733 | ) | | | (142,392,099 | ) |
90
UBS RMA
Notes to financial statements (unaudited)
Beneficial interest
There is an unlimited amount of $0.001 par value shares of beneficial interest authorized for RMA California and RMA New York. Transactions in shares of beneficial interest, at $1.00 per share were as follows:
| | | | | | | | |
For the six months ended December 31, 2015 | | RMA California | | | RMA New York | |
| Shares sold | | | 2,706,636,106 | | | | 1,367,606,162 | |
| Shares repurchased | | | (2,415,561,224 | ) | | | (1,245,974,690 | ) |
| Dividends reinvested | | | 45,779 | | | | 37,074 | |
| Net increase in shares outstanding | | | 291,120,661 | | | | 121,668,546 | |
| | | | | | | | |
For the year ended June 30, 2015 | | RMA
California | | | RMA
New York | |
| Shares sold | | | 4,357,316,081 | | | | 3,302,659,134 | |
| Shares repurchased | | | (4,341,811,966 | ) | | | (3,305,485,592 | ) |
| Dividends reinvested | | | 123,234 | | | | 87,907 | |
| Net increase (decrease) in shares outstanding | | | 15,627,349 | | | | (2,738,551 | ) |
Federal tax status
Each Fund intends to distribute substantially 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, net 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 all distributions paid to shareholders by the Money Market Portfolio and U.S. Government Portfolio during the six months ended December 31, 2015, and the fiscal year ended June 30, 2015, was ordinary income. The tax character of all distributions paid to shareholders by RMA Tax-Free, RMA California, and RMA New York will be determined at the end of the Funds’ fiscal year ending June 30, 2016. The tax character of all distributions paid to shareholders by RMA
91
UBS RMA
Notes to financial statements (unaudited)
Tax-Free, RMA California, and RMA New York during the fiscal year ended June 30, 2015 was as follows:
| | | | | | | | | | | | |
For the year ended June 30, 2015 | | RMA Tax-Free | | | RMA California | | | RMA New York | |
| Tax-exempt income | | $ | 297,111 | | | $ | 81,459 | | | $ | 70,610 | |
| Ordinary income | | | 99 | | | | — | | | | — | |
| Long-term capital gains | | | 63,373 | | | | 44,102 | | | | 19,026 | |
| Total distributions paid | | $ | 360,583 | | | $ | 125,561 | | | $ | 89,636 | |
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, 2016.
ASC 740-10 “Income Taxes—Overall” sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken. The Funds have analyzed and concluded as of December 31, 2015, that there are no significant uncertain tax positions taken or expected to be taken that would require recognition in the financial statements. The Funds recognize interest and penalties, if any, related to uncertain tax positions as income tax expense in the Statement of operations. During the six months ended December 31, 2015, the Funds did not incur any interest or penalties.
Each of the tax years in the four year period ended June 30, 2015, remains subject to examination by the Internal Revenue Service and state taxing authorities.
Regulatory developments
On July 23, 2014, the US Securities and Exchange Commission (“SEC”) adopted new regulations for money market funds. There is a transition period ranging until October 2016 for the most significant changes. These regulatory changes impact key aspects of how money market funds are structured and operate. Later in 2016, but before the October 2016 compliance deadline, the Funds may no longer be offered as sweep funds as part of certain distributor platforms. As a result, the Funds’ shareholders would be transitioned to an alternative money market sweep fund. The Funds’ shareholders will receive additional information at a future time in advance of these changes.
92
UBS RMA
General information (unaudited)
Monthly and quarterly portfolio holdings disclosure
The Funds will file their complete schedules 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 Web site 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.
In addition, each Fund discloses, on a monthly basis; (a) a complete schedule of its portfolio holdings; and (b) information regarding its weighted average maturity and weighted average life on UBS’s Web site at the following internet address:
www.ubs.com/usmoneymarketfundsholdings. In addition, at this location, you will find a link to more detailed Fund information appearing in filings with the SEC on Form N-MFP. Investors also may find additional information about the Funds at the above referenced UBS Web site internet address.
Proxy voting policies, procedures and record
You may obtain a description of each Fund’s (1) proxy voting policies, (2) proxy voting procedures and (3) information regarding how a Fund voted any proxies related to portfolio securities during the most recent 12-month period ended June 30 for which an SEC filing has been made, without charge, upon request by contacting a Fund directly at 1-800-647 1568, online on a Fund’s Web site: www.ubs.com/ubsglobalam-proxy, or on the EDGAR Database on the SEC’s Web site (http:/www.sec.gov).
Other tax information
Pursuant to Section 871(k)(2)(C) of the Internal Revenue Code, Money market Portfolio and U.S. Government Portfolio each designate 100% of its “qualified short-term gains” (as defined in Section 871(k)(2)(D)) as short-term capital gain dividends for the calendar year 2015.
93
UBS RMA
Board approval of investment advisory and administration agreements (unaudited)
Background—At a meeting of the boards of UBS RMA Money Fund Inc. (“RMA Money Fund”), UBS RMA Tax-Free Fund, Inc. (“RMA Tax-Free Fund”) and UBS Managed Municipal Trust (“Managed Municipal Trust”) on July 14-15, 2015, the members of each board, including the board members who are not “interested persons” of RMA Money Fund, RMA Tax-Free Fund or Managed Municipal Trust (“Independent Board Members”), as defined in the Investment Company Act of 1940, as amended (the “1940 Act”), considered and approved the continuance of the investment advisory and administration agreements (each an “Investment Advisory and Administration Agreement” and together the “Investment Advisory and Administration Agreements”) for the funds as follows: the board of RMA Money Fund approved the continuance of the Investment Advisory and Administration Agreement of RMA Money Fund with respect to its series, UBS RMA Money Market Portfolio and UBS RMA U.S. Government Portfolio (each a “Portfolio” and together the “Portfolios”), with UBS Asset Management (Americas) Inc. (“UBS AM”); the board of RMA Tax-Free Fund approved the continuance of the Investment Advisory and Administration Agreement of RMA Tax-Free Fund with UBS AM; and the board of Managed Municipal Trust approved the continuance of the Investment Advisory and Administration Agreement of Managed Municipal Trust with respect to its series, UBS RMA California Municipal Money Fund and UBS RMA New York Municipal Money Fund (each a “Municipal Fund” and together with the Portfolios and RMA Tax-Free Fund, each a “Fund” and together the “Funds”), and UBS AM. Although the board members of RMA Money Fund, RMA Tax-Free Fund and Managed Municipal Trust met together, each board made decisions independently with respect to the Fund(s) it oversees. In preparing for the meeting, the board members had requested and received extensive information from UBS AM to assist them, including information about UBS AM as well as the advisory, administrative and distribution arrangements for each Fund they oversee. The Independent Board Members discussed the materials initially provided by management on several occasions prior to the scheduled board meeting. The Independent Board Members also met in executive session after management’s presentation was completed to review the disclosure that had been made to them at the meeting. At these sessions the Independent Directors were joined by their
94
UBS RMA
Board approval of investment advisory and
administration agreements (unaudited)
independent legal counsel. The Independent Board Members also received a memorandum from their independent legal counsel discussing the duties of board members in considering the approval of advisory, administration and distribution agreements.
In its consideration of the approval of the Investment Advisory and Administration Agreements, each board reviewed the following factors:
Nature, extent and quality of the services under the Investment Advisory and Administration Agreements—Each board received and considered information regarding the nature, extent and quality of advisory services provided to each Fund overseen by it by UBS AM under the applicable Investment Advisory and Administration Agreement during the past year. Each board also considered the nature, extent and quality of administrative, distribution, and shareholder services performed by UBS AM and its affiliates for each Fund overseen by it and the resources devoted to, and the record of compliance with, each Fund’s compliance policies and procedures. Each board noted that it received information at regular meetings throughout the year regarding the services rendered by UBS AM concerning the management of each Fund’s affairs and UBS AM’s role in coordinating and overseeing providers of other services to the Funds. Each board’s evaluation of the services provided by UBS AM took into account the board’s knowledge and familiarity gained as board members of funds in the UBS New York fund complex, including the scope and quality of UBS AM’s investment advisory and other capabilities and the quality of its administrative and other services. Each board observed that the scope of services provided by UBS AM had expanded over time as a result of regulatory and other developments, including maintaining and monitoring its own and the Funds’ expanded compliance programs.
The boards had available to them the qualifications, backgrounds and responsibilities of the senior personnel at UBS AM responsible for each Fund and had previously met with and received information regarding the person primarily responsible for the day-to-day management of each Fund. The boards recognized that senior personnel at UBS AM report to the boards regularly and that at each regular meeting the
95
UBS RMA
Board approval of investment advisory and
administration agreements (unaudited)
boards receive a detailed report from UBS AM on each Fund’s performance. The boards also considered, based on their knowledge of UBS AM and its affiliates, the financial resources available to UBS AM and its parent organization, UBS Group AG. In that regard, the boards received extensive financial information regarding UBS AM and noted that it was a wholly owned, indirect subsidiary of one of the largest financial services firms in the world. It also was noted that UBS AM had approximately $154 billion in assets under management as of March 31, 2015 and was part of the UBS Asset Management Division, which had approximately $680 billion in assets under management worldwide as of March 31, 2015. The boards also were cognizant of, and considered, the regulatory and litigation actions and investigations occurring in the past few years involving UBS Group AG, UBS AM and certain of their affiliates.
Each board concluded that, overall, it was satisfied with the nature, extent and quality of services provided (and expected to be provided) to each Fund overseen by it under its Investment Advisory and Administration Agreement.
Advisory fees and expense ratios—For each Fund, its board reviewed and considered the contractual advisory and administration fee (the “Contractual Management Fee”) payable by that Fund to UBS AM in light of the nature, extent and quality of the advisory and administrative services provided by UBS AM. Each board also reviewed and considered any fee waiver and/or expense reimbursement arrangement implemented and considered the actual fee rate for each Fund overseen by that board (after taking any waivers and/or reimbursements into account) (the “Actual Management Fee”). Additionally, each board received and considered information comparing the applicable Fund’s Contractual Management Fee, Actual Management Fee and total expenses with those of funds in a group of funds selected and provided by Lipper, Inc. (“Lipper”), an independent provider of investment company data (the “Expense Group”). Referring to a memorandum from Lipper that was included in the meeting materials, management noted that Lipper was no longer able to make a distinction between sweep money market funds and all other money
96
UBS RMA
Board approval of investment advisory and
administration agreements (unaudited)
market funds in compiling the Expense Group for each Fund and that, as a result of non-sweep money market funds being included, the number of peer funds in each Fund’s Expense Group had increased.
In connection with its consideration of each Fund’s management fee, each board also received information from UBS AM with respect to fees paid by institutional or separate accounts; however, in management’s view, such fee information was not very relevant to the Funds because, among other reasons, separately managed and institutional accounts with a “cash” mandate (a) were not subject to all of the constraints of Rule 2a-7 under the 1940 Act to which the Funds are subject and (b) do not involve the management responsibilities attendant to the operation of a 1940 Act regulated fund, and, therefore, were not totally comparable. The boards also received information on fees charged to other mutual funds managed by UBS AM.
UBS RMA Money Market Portfolio
The comparative Lipper information showed that the Portfolio’s Contractual Management Fee and Actual Management Fee were above the respective medians, while total expenses were below the median in the Portfolio’s Expense Group for the comparison periods utilized in the Lipper report. (Below median fees or expenses represent fees or expenses that are lower relative to the median, and above median fees or expenses represent fees or expenses that are higher relative to the median of the funds in the Expense Group.)
UBS RMA U.S. Government Portfolio
The comparative Lipper information showed that the Portfolio’s Contractual Management Fee and Actual Management Fee were above the respective medians, while total expenses were below the median in the Portfolio’s Expense Group for the comparison periods utilized in the Lipper report.
UBS RMA Tax-Free Fund
The comparative Lipper information showed that the Fund’s Contractual Management Fee was above the median, while its Actual Management
97
UBS RMA
Board approval of investment advisory and
administration agreements (unaudited)
Fee (which was zero) and total expenses were below the respective medians (Actual Management Fee and total expenses were lowest in the Expense Group) in the Fund’s Expense Group for the comparison periods utilized in the Lipper report.
UBS RMA California Municipal Money Fund and UBS RMA New York Municipal Money Fund
The comparative Lipper information showed that California Municipal Money Fund’s Contractual Management Fee, Actual Management Fee (which was zero) and total expenses were below the respective medians (Actual Management Fee and total expenses were lowest in the Expense Group) in the Fund’s Expense Group for the comparison periods utilized in the Lipper report.
The comparative Lipper information showed that New York Municipal Money Fund’s Contractual Management Fee and total expenses were below the respective medians (total expenses were lowest in the Expense Group), while its Actual Management Fee (which was zero) was at the median in the Fund’s Expense Group for the comparison periods utilized in the Lipper report.
In light of the foregoing, each board determined that the management fee for each Fund overseen by it was reasonable in light of the nature, extent and quality of services provided to the applicable Fund under its Investment Advisory and Administration Agreement.
Fund performance—The board of each Fund received and considered (a) annualized total return information of each Fund overseen by it compared to other funds (the “Performance Universe”) selected by Lipper over the one-, three-, five-, ten-year and since inception periods ended April 30, 2015 and (b) annualized performance information for each year in the ten-year period ended April 30, 2015. Although the boards received information for the ten-year and since inception periods, in their analysis, they generally placed greater emphasis on the one-, three- and five-year periods. The boards were provided with a description of the methodology Lipper used to determine the similarity of each Fund with the funds included in its Performance Universe. The
98
UBS RMA
Board approval of investment advisory and
administration agreements (unaudited)
boards also received updated supplemental data showing each Fund’s performance through May 31, 2015. Each board also noted that it had received information throughout the year at periodic intervals with respect to each Fund’s performance.
UBS RMA Money Market Portfolio
The comparative Lipper information showed that the Portfolio’s performance was at the median for the one-, three- and five-year periods, above the median for the ten-year period and below the median since inception. (Below median performance represents performance that is worse relative to the median and above median performance represents performance that is better relative to the median.) Management noted that the Portfolio’s performance since inception was close to the Performance Universe median. Based on its review, the board concluded that the Portfolio’s investment performance was acceptable.
UBS RMA U.S. Government Portfolio
The comparative Lipper information showed that the Portfolio’s performance was at the median for the one-, three- and five-year periods and below the median for the ten-year period and since inception. Management noted the Portfolio’s improved performance over the past few years. Based on its review, the board concluded that the Portfolio’s investment performance was acceptable.
UBS RMA Tax-Free Fund
The comparative Lipper information showed that the Fund’s performance was at the median for the one-, three- and five-year periods and below the median for the ten-year period and since inception. As in prior years, management explained that the Fund is managed more conservatively than its peers, generally resulting in a lower yield over time in comparison with its peers. Based on its review, the board concluded that the Fund’s investment performance was acceptable.
99
UBS RMA
Board approval of investment advisory and
administration agreements (unaudited)
UBS RMA California Municipal Money Fund and UBS RMA New York Municipal Money Fund
The comparative Lipper information showed that California Municipal Money Fund’s performance was above the median for the one- and three-year periods, at the median for the five-year period and below the median for the ten-year period and since inception.
The comparative Lipper information showed that New York Municipal Money Fund’s performance was at the median for the one- and three-year periods and below the median for the five- and ten-year periods and since inception.
As in prior years, management explained that, in comparison with its Performance Universe, each Municipal Fund’s portfolio was generally of higher overall credit quality and contained limited exposure to investments subject to the alternative minimum tax, which has generally resulted in lower yields over time when compared to their respective Lipper peer groups. In addition, management noted that each Municipal Fund maintained larger allocations to overnight liquidity debt compared to the applicable Performance Universe. Management also noted each Municipal Fund’s improved performance over the past few years. Based on its review and management’s explanation, the board concluded that each Municipal Fund’s investment performance was acceptable.
Advisor profitability—Each board received and considered a profitability analysis of UBS AM and its affiliates in providing services to each Fund. Each board also received profitability information with respect to the UBS New York fund complex as a whole. UBS AM’s profitability was considered not excessive in light of the nature, extent and quality of the services provided to each Fund.
Economies of scale—Each board received and considered information from management regarding whether UBS AM realized economies of scale as each Fund’s assets grew, whether each Fund has appropriately benefited from any economies of scale, and whether there is potential for realization of any further economies of scale. Each board considered whether economies of scale in the provision of services to each Fund were being passed along to the shareholders.
100
UBS RMA
Board approval of investment advisory and
administration agreements (unaudited)
Each board noted that each Fund’s Contractual Management Fee contained breakpoints. The relevant boards considered that each Fund’s asset level exceeded at least its first breakpoint and, as a result, each of these Funds and its shareholders realized certain economies of scale because the total expense ratio of each such Fund was lower than if no breakpoints had been in place. The boards also noted that, as discussed earlier, each Fund’s total expenses were below the relevant Expense Group median and, in fact, except for UBS RMA Money Market Portfolio and UBS RMA U.S. Government Portfolio, were the lowest in its Expense Group. Accordingly, each board determined that economies of scale were passed on to shareholders, including in the form of breakpoints to the management fee and operational efficiencies or fee and expense waivers for each of these Funds.
Generally, in light of UBS AM’s profitability data, the Contractual Management Fee and Actual Management Fee, and the breakpoints currently in place, each board believed that UBS AM’s sharing of current economies of scale with each Fund it oversees was acceptable.
Other benefits to UBS AM—The boards considered other benefits received by UBS AM and its affiliates as a result of its relationship with the Funds, including the opportunity to offer additional products and services to Fund shareholders. In light of the costs of providing investment advisory, administrative and other services to the Funds and UBS AM’s ongoing commitment to the Funds, the profits and other ancillary benefits that UBS AM and its affiliates received were considered reasonable.
In light of all of the foregoing, each board approved the Investment Advisory and Administration Agreement for each Fund overseen by it. No single factor reviewed by the boards was identified by the boards as the principal factor in determining whether to approve the Investment Advisory and Administration Agreements. The Independent Board Members were advised by separate independent legal counsel throughout the process. The boards discussed the proposed continuance of the Investment Advisory and Administration Agreements in private sessions with their independent legal counsel at which no representatives of UBS AM were present.
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| | |
Board Members | | |
| |
Richard Q. Armstrong Chairman Alan S. Bernikow Richard R. Burt | | Meyer Feldberg Bernard H. Garil Heather R. Higgins David Malpass |
| |
Principal Officers | | |
| |
Mark E. Carver President Mark F. Kemper Vice President and Secretary Thomas Disbrow Vice President and Treasurer | | Robert Sabatino Vice President (Taxable Funds) Elbridge T. Gerry III Vice President (Tax-Free Funds) Lisa M. DiPaolo Vice President (Tax-Free Funds) |
Investment Advisor and Administrator
UBS Asset Management (Americas) Inc.
1285 Avenue of the Americas
New York, New York 10019-6028
Principal Underwriter
UBS Asset Management (US) Inc.
1285 Avenue of the Americas
New York, New York 10019-6028
The financial information included herein is taken from the records of the Funds without examination by independent registered public accountants 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.
©UBS 2016. All rights reserved.
UBS Asset Management (Americas) Inc.
1285 Avenue of the Americas
New York, New York 10019-6028
S157
| | |
| |
 | | Money Market Fund |
UBS Retirement Money Fund
Semiannual Report
December 31, 2015
UBS Retirement Money Fund
February 16, 2016
Dear shareholder,
We present you with the semiannual report for UBS Retirement Money Fund for the six months ended December 31, 2015.
Performance
In mid-December 2015, the US Federal Reserve Board (the “Fed”) modestly raised the federal funds rate from a historically low range between 0% and 0.25% to a range between 0.25% and 0.50%. The federal funds rate or the “fed funds rate,” is the rate US banks
charge one another for funds they borrow on an overnight basis. (For more details on the Fed’s actions, see below.) While the yields on a wide range of short-term investments moved higher over the period as the markets anticipated the Fed action, as well as other potential future actions into 2016, yields still remain low by historical comparison. As a result, the Fund’s yields remained low during the reporting period.
As of December 31, 2015, the Fund’s seven-day yield was 0.01% (after fee waivers and/or expense reimbursements), unchanged from what it was on June 30, 2015. (For more on the Fund’s performance, refer to “Performance and portfolio characteristics at a glance” on page 7.)
An interview with Portfolio Manager Robert Sabatino
| Q. | How would you describe the economic environment during the reporting period? |
| A. | The US economy continued to expand, but the pace was uneven during the reporting period. The US Commerce Department reported that gross domestic product (“GDP”) expanded at a 3.9% seasonally adjusted annualized rate during the second quarter of 2015. GDP growth then dipped to 2.0% for the third quarter of the year. Finally, |
UBS Retirement Money Fund
Investment goal:
Current income consistent with liquidity and conservation of capital
Portfolio Manager
Robert Sabatino
UBS Asset Management (Americas) Inc.
Commencement:
July 2, 1988
1
UBS Retirement Money Fund
| | the Commerce Department’s initial estimate for fourth-quarter GDP growth was 0.7%.1 |
| Q. | How did the Fed react to the economic environment? |
| A. | The Fed took its initial step toward normalizing monetary policy during the reporting period. In December 2015, the Fed raised the fed funds rates for the first time in nearly a decade. The US central bank boosted the fed funds rate from a range of 0% to 0.25% to a range between 0.25% and 0.50%. In its official statement the Fed said, “The stance of monetary policy remains accommodative after this increase, thereby supporting further improvement in labor market conditions and a return to 2 percent inflation…The Committee expects that economic conditions will evolve in a manner that will warrant only gradual increases in the federal funds rate; the federal funds rate is likely to remain, for some time, below levels that are expected to prevail in the longer run.” |
| Q. | How did you position the Fund during the reporting period? |
| A. | We tactically adjusted the Fund’s weighted average maturity (“WAM”) throughout the six-month review period. When the reporting period began, the Fund had a WAM of 45 days. The Fund’s WAM ended the period at 26 days. |
| Q. | What level of portfolio diversification did you maintain during the reporting period? |
| A. | At the issuer level, we maintained a high level of diversification, investing in smaller positions with the goal of reducing risk and keeping the Fund highly liquid. To that end, we typically purchased up to 3% in single nongovernment issuers throughout the reporting period. (The Fund is generally able to hold up to 5% in any one issuer, subject to certain exceptions.) |
| Q. | What types of securities did you emphasize over the period? |
| A. | Several adjustments were made to the Fund’s sector positioning during the six-month period. We increased the Fund’s exposures to |
| 1 | Based on the Commerce Department’s initial estimate announced on January 29, 2016, after the reporting period had ended. |
2
UBS Retirement Money Fund
| | US government and agency obligations and repurchase agreements. Conversely, we reduced our exposures to certificates of deposit and commercial paper. (Repurchase agreements are transactions in which the seller of a security agrees to buy it back at a predetermined time and price or upon demand.) |
| Q. | What factors do you believe will affect the Fund over the coming months? |
| A. | In prior reports to shareholders, we discussed the US Securities and Exchange Commission’s adoption of new regulations for money market funds. We noted that there was a transition period ranging until October 2016 for the most significant changes. These regulatory changes impact key aspects of how money market funds are structured and operate. |
Later this year, but before the October 2016 compliance deadline, the Fund may no longer be offered as a sweep fund as part of certain distributor platforms. As a result, the Fund’s shareholders would be transitioned to an alternative money market sweep fund. Shareholders will receive additional information at a future time in advance of these changes.
Turning to the economy, in our view, the US economy should continue to grow in 2016. That being said, we feel the expansion will be fairly moderate and inflation will remain largely benign. Against this backdrop, we believe the Fed will take a deliberate pace in terms of normalizing monetary policy. We anticipate continuing to manage the Fund focusing on risk and liquidity.
We thank you for your continued support and welcome any comments or questions you may have. For additional information on the UBS family of funds,* please contact your Financial Advisor, or visit us at www.ubs.com/am-us.
3
| * | Mutual funds are sold by prospectus only. You should read it carefully and consider a fund’s investment objectives, risks, charges, expenses and other important information contained in the prospectus before investing. Prospectuses for most of our funds can be obtained from your financial advisor, by calling UBS Funds at 800-647 1568 or by visiting our Web site at www.ubs.com/am-us. |
UBS Retirement Money Fund
Sincerely,
| | |
| | 
|
Mark E. Carver President UBS Retirement Money Fund Managing Director UBS Asset Management (Americas) Inc. | | Robert Sabatino Portfolio Manager UBS Retirement Money Fund Managing Director UBS Asset Management (Americas) Inc. |
This letter is intended to assist shareholders in understanding how the Fund performed during the six months ended December 31, 2015. The views and opinions in the letter were current as of February 16, 2016. They are not guarantees of future performance or investment results and should not be taken as investment advice. Mutual funds are sold by prospectus only. You should read it carefully and consider a fund’s investment objectives, risks, charges, expenses and other important information contained in the prospectus before investing. Prospectuses for most of our funds can be obtained from your financial advisor, by calling UBS Funds at 800-647 1568, or by visiting our Web site at www.ubs.com/am-us.
Investment decisions reflect a variety of factors, and we reserve the right to change our views about individual securities, sectors and markets at any time. As a result, the views expressed should not be relied upon as a forecast of the Fund’s future investment intent. We encourage you to consult your financial advisor regarding your personal investment program.
4
UBS Retirement Money Fund
Understanding your Fund’s expenses (unaudited)
As a shareholder of the Fund, you incur ongoing costs, including management fees, service fees (12b-1 fees) and other Fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The example below is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, July 1, 2015 to December 31, 2015.
Actual expenses
The first line in the table below provides information about 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 under the heading “Expenses paid during period” to estimate the expenses you paid on your account during this period.
Hypothetical example for comparison purposes
The second line in the table below provides information about hypothetical account values and hypothetical expenses based on the 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 your actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.
5
UBS Retirement Money Fund
Understanding your Fund’s expenses (unaudited) (concluded)
Please note that the expenses shown in the table are meant to highlight your ongoing costs. Therefore, the second line in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds, if those other funds impose transactional costs—for example, exchange fees. In addition, if those transactional costs were included, your costs for those other funds would have been higher.
| | | | | | | | | | | | | | | | |
| | | Beginning account value July 1, 2015 | | | Ending account value1 December 31,
2015 | | | Expenses paid during period2 07/01/15 to 12/31/15 | | | Expense ratio during the period | |
| Actual | | $ | 1,000.00 | | | $ | 1,000.10 | | | $ | 0.96 | | | | 0.19 | % |
| Hypothetical (5% annual return before expenses) | | | 1,000.00 | | | | 1,024.18 | | | | 0.97 | | | | 0.19 | |
| 1 | “Actual—Ending account value” may or may not be reflective of a shareholder’s actual investment experience during periods of very low interest rates. While the Fund declares dividends daily and pays them monthly, the amounts are rounded to the nearest $0.01 on a daily basis with respect to each investor’s account. As a result, investors whose Fund account balances earn daily dividends that total less than one half a cent on any given day will not accrue any dividends on that day. |
| 2 | Expenses are equal to the Fund’s annualized net expense ratio, multiplied by the average account value over the period, multiplied by 184 divided by 366 (to reflect the one-half year period). |
6
UBS Retirement Money Fund
Performance and portfolio characteristics at a glance (unaudited)
| | | | | | | | | | | | |
| Yields and characteristics | | 12/31/15 | | | 06/30/15 | | | 12/31/14 | |
| Seven-day current yield after fee waivers and/or expense reimbursements1 | | | 0.01 | % | | | 0.01 | % | | | 0.01 | % |
| Seven-day effective yield after fee waivers and/or expense reimbursements1 | | | 0.01 | | | | 0.01 | | | | 0.01 | |
| Seven-day current yield before fee waivers and/or expense reimbursements1 | | | (0.42 | ) | | | (0.51 | ) | | | (0.57 | ) |
| Seven-day effective yield before fee waivers and/or expense reimbursements1 | | | (0.42 | ) | | | (0.51 | ) | | | (0.57 | ) |
| Weighted average maturity2 | | | 26 days | | | | 45 days | | | | 45 days | |
| Net assets (mm) | | | $497.5 | | | | $572.0 | | | | $630.9 | |
| Portfolio composition3 | | 12/31/15 | | | 06/30/15 | | | 12/31/14 | |
| Commercial paper | | | 43.4 | % | | | 47.0 | % | | | 40.7 | % |
| US government and agency obligations | | | 24.5 | | | | 17.4 | | | | 25.0 | |
| Repurchase agreements | | | 19.2 | | | | 17.6 | | | | 12.8 | |
| Certificates of deposit | | | 12.9 | | | | 18.0 | | | | 18.7 | |
| Other short-term corporate obligations | | | — | | | | — | | | | 2.0 | |
| Non-US government agency obligations | | | — | | | | — | | | | 0.8 | |
| Other assets less liabilities | | | (0.0 | )4 | | | (0.0 | )4 | | | (0.0 | )4 |
| Total | | | 100.0 | % | | | 100.0 | % | | | 100.0 | % |
| 1 | Yields will fluctuate and reflect fee waivers and/or expense reimbursements, if any, unless otherwise noted. Performance data quoted represents past performance. Past performance does not guarantee future results. Current performance may be higher or lower than the performance data quoted. |
| 2 | The Fund’s portfolio is actively managed and its weighted average maturity will differ over time. |
| 3 | Weightings represent percentages of the Fund’s net assets as of the dates indicated. The Fund’s portfolio is actively managed and its composition will vary over time. |
| 4 | Represents less than 0.05% of net assets as of the date indicated. |
An investment in UBS Retirement Money Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the Fund.
Not FDIC Insured. May lose value. No bank guarantee.
7
UBS Retirement Money Fund
Statement of net assets—December 31, 2015 (unaudited)
| | | | | | | | |
| Security description | | Face
amount | | | Value | |
| US government and agency obligations—24.52% | |
Federal Home Loan Bank | | | | | | | | |
0.255%, due 01/15/161 | | $ | 20,000,000 | | | $ | 19,998,017 | |
0.360%, due 02/04/161 | | | 10,000,000 | | | | 9,996,600 | |
0.180%, due 02/16/161 | | | 5,000,000 | | | | 4,998,850 | |
0.400%, due 02/16/161 | | | 15,000,000 | | | | 14,992,333 | |
0.360%, due 02/19/161 | | | 5,000,000 | | | | 4,997,550 | |
0.280%, due 02/26/161 | | | 15,000,000 | | | | 14,993,467 | |
0.250%, due 03/10/161 | | | 5,000,000 | | | | 4,997,604 | |
0.465%, due 03/14/161 | | | 5,000,000 | | | | 4,995,285 | |
Federal National Mortgage Association* | | | | | | | | |
0.231%, due 03/21/161 | | | 6,000,000 | | | | 5,996,920 | |
US Treasury Bill | | | | | | | | |
0.371%, due 06/02/161 | | | 7,000,000 | | | | 6,988,992 | |
US Treasury Note | | | | | | | | |
0.375%, due 01/15/16 | | | 10,000,000 | | | | 10,000,726 | |
2.000%, due 01/31/16 | | | 15,000,000 | | | | 15,021,497 | |
2.000%, due 04/30/16 | | | 4,000,000 | | | | 4,023,139 | |
Total US government and agency obligations
(cost—$122,000,980) | | | | | | | 122,000,980 | |
| Certificates of deposit—12.87% | | | | | | | | |
| Banking-non-US—9.85% | | | | | | | | |
Bank of Montreal | | | | | | | | |
0.497%, due 01/13/16 | | | 4,000,000 | | | | 4,000,000 | |
Mizuho Bank Ltd. | | | | | | | | |
0.350%, due 02/16/16 | | | 5,000,000 | | | | 4,999,360 | |
0.430%, due 03/01/16 | | | 10,000,000 | | | | 10,000,000 | |
Norinchukin Bank Ltd. | | | | | | | | |
0.220%, due 01/04/16 | | | 5,000,000 | | | | 5,000,000 | |
0.400%, due 01/28/16 | | | 10,000,000 | | | | 10,000,000 | |
Rabobank Nederland NV | | | | | | | | |
0.430%, due 04/13/16 | | | 10,000,000 | | | | 10,000,000 | |
Sumitomo Mitsui Banking Corp. | | | | | | | | |
0.220%, due 01/06/16 | | | 5,000,000 | | | | 5,000,000 | |
| | | | | | | | 48,999,360 | |
8
UBS Retirement Money Fund
Statement of net assets—December 31, 2015 (unaudited)
| | | | | | | | |
| Security description | | Face
amount | | | Value | |
| Certificates of deposit—(concluded) | | | | | | | | |
| Banking-US—3.02% | | | | | | | | |
Citibank N.A. | | | | | | | | |
0.290%, due 01/05/16 | | $ | 5,000,000 | | | $ | 5,000,000 | |
0.300%, due 02/10/16 | | | 10,000,000 | | | | 10,000,000 | |
| | | | | | | | 15,000,000 | |
Total certificates of deposit (cost—$63,999,360) | | | | 63,999,360 | |
| Commercial paper1—43.41% | | | | | | | | |
| Asset backed-miscellaneous—22.71% | | | | | | | | |
Albion Capital Corp. | | | | | | | | |
0.350%, due 01/21/16 | | | 15,000,000 | | | | 14,997,083 | |
Atlantic Asset Securitization LLC | | | | | | | | |
0.300%, due 01/04/16 | | | 5,000,000 | | | | 4,999,875 | |
Barton Capital Corp. | | | | | | | | |
0.400%, due 01/15/16 | | | 12,000,000 | | | | 11,998,133 | |
Gotham Funding Corp. | | | | | | | | |
0.250%, due 01/11/16 | | | 15,000,000 | | | | 14,998,959 | |
Jupiter Securitization Co. LLC | | | | | | | | |
0.500%, due 01/20/16 | | | 3,000,000 | | | | 2,999,208 | |
Liberty Street Funding LLC | | | | | | | | |
0.460%, due 02/08/16 | | | 10,000,000 | | | | 9,995,145 | |
LMA Americas LLC | | | | | | | | |
0.470%, due 01/20/16 | | | 5,000,000 | | | | 4,998,760 | |
Manhattan Asset Funding Co. LLC | | | | | | | | |
0.250%, due 01/11/16 | | | 5,000,000 | | | | 4,999,653 | |
0.410%, due 01/21/16 | | | 10,000,000 | | | | 9,997,722 | |
Old Line Funding LLC | | | | | | | | |
0.451%, due 01/04/162 | | | 5,000,000 | | | | 5,000,000 | |
Regency Markets No. 1 LLC | | | | | | | | |
0.420%, due 01/15/16 | | | 5,000,000 | | | | 4,999,183 | |
Victory Receivables Corp. | | | | | | | | |
0.350%, due 01/14/16 | | | 8,000,000 | | | | 7,998,989 | |
Working Capital Management Co. | | | | | | | | |
0.350%, due 01/11/16 | | | 5,000,000 | | | | 4,999,514 | |
0.440%, due 01/14/16 | | | 10,000,000 | | | | 9,998,411 | |
| | | | | | | | 112,980,635 | |
9
UBS Retirement Money Fund
Statement of net assets—December 31, 2015 (unaudited)
| | | | | | | | |
| Security description | | Face
amount | | | Value | |
| Commercial paper1—(concluded) | | | | | | | | |
| Banking-non-US—8.04% | | | | | | | | |
Bank of Nova Scotia | | | | | | | | |
0.260%, due 02/01/16 | | $ | 5,000,000 | | | $ | 4,998,881 | |
Caisse Centrale Desjardins | | | | | | | | |
0.290%, due 02/01/16 | | | 10,000,000 | | | | 9,997,503 | |
Mitsubishi UFJ Trust & Banking Corp. | | | | | | | | |
0.260%, due 01/07/16 | | | 15,000,000 | | | | 14,999,350 | |
National Australia Bank Ltd. | | | | | | | | |
0.415%, due 01/08/16 | | | 5,000,000 | | | | 4,999,596 | |
Nordea Bank AB | | | | | | | | |
0.320%, due 02/16/16 | | | 5,000,000 | | | | 4,997,956 | |
| | | | | | | | 39,993,286 | |
| Consumer products-nondurables—3.02% | | | | | | | | |
Procter & Gamble Co. | | | | | | | | |
0.320%, due 01/11/16 | | | 15,000,000 | | | | 14,998,667 | |
| Energy-integrated—2.01% | | | | | | | | |
Exxon Mobil Corp. | | | | | | | | |
0.360%, due 01/11/16 | | | 10,000,000 | | | | 9,999,000 | |
| Entertainment—3.01% | | | | | | | | |
Walt Disney Co. | | | | | | | | |
0.340%, due 01/14/16 | | | 15,000,000 | | | | 14,998,158 | |
| Food & household products—1.00% | | | | | | | | |
Unilever Capital Corp. | | | | | | | | |
0.440%, due 02/22/16 | | | 5,000,000 | | | | 4,996,822 | |
| Insurance-life—1.21% | | | | | | | | |
MetLife Short Term Funding LLC | | | | | | | | |
0.270%, due 01/11/16 | | | 6,000,000 | | | | 5,999,550 | |
| Insurance-personal & casualty—2.41% | | | | | | | | |
USAA Capital Corp. | | | | | | | | |
0.250%, due 01/06/16 | | | 12,000,000 | | | | 11,999,583 | |
Total commercial paper (cost—$215,965,701) | | | | | | | 215,965,701 | |
10
UBS Retirement Money Fund
Statement of net assets—December 31, 2015 (unaudited)
| | | | | | | | |
| Security description | | Face
amount | | | Value | |
| Repurchase agreements—19.21% | | | | | | | | |
Repurchase agreement dated 12/31/15 with
Barclays Capital, Inc., 0.300% due 01/04/16, collateralized by $1,841,800 US Treasury Note, 3.625% due 08/15/19 and $28,605,391 US Treasury Bond STRIP, zero coupon due 02/15/16; (value—$30,600,039); proceeds: $30,001,000 | | $ | 30,000,000 | | | $ | 30,000,000 | |
Repurchase agreement dated 12/31/15 with
Goldman Sachs & Co., 0.300% due 01/04/16, collateralized by $44,141,000 Federal Farm Credit Bank, 0.293% to 3.370% due 03/29/17 to 12/28/27, $3,945,000 Federal Home Loan Bank obligations, zero coupon to 4.875% due 04/15/16 to 06/13/25 and $3,081,600 US Treasury Inflation Index Note, 0.125% due 04/15/18; (value—$51,102,099); proceeds: $50,101,670 | | | 50,100,000 | | | | 50,100,000 | |
Repurchase agreement dated 12/31/15 with
Merrill Lynch Pierce Fenner & Smith, Inc., 0.290% due 01/04/16 , collateralized by $15,423,000 US Treasury Note, 1.375% due 02/29/20; (value—$15,300,056); proceeds: $15,000,483 | | | 15,000,000 | | | | 15,000,000 | |
Repurchase agreement dated 12/31/15 with
State Street Bank and Trust Co., 0.010% due 01/04/16, collateralized by $495,267 Federal National Mortgage Association obligation, 2.110% due 11/07/22; (value—$485,157); proceeds: $475,001 | | | 475,000 | | | | 475,000 | |
Total repurchase agreements (cost—$95,575,000) | | | | | | | 95,575,000 | |
| Total investments (cost—$497,541,041 which approximates cost for federal income tax purposes)—100.01% | | | | | | | 497,541,041 | |
| Liabilities in excess of other assets—(0.01)% | | | | | | | (48,961 | ) |
| Net assets (applicable to 497,486,690 shares of common stock outstanding equivalent to $1.00 per share)—100.00% | | | | | | $ | 497,492,080 | |
11
UBS Retirement Money Fund
Statement of net assets—December 31, 2015 (unaudited)
Fair valuation summary
The following is a summary of the fair valuations according to the inputs used as of December 31, 2015 in valuing the Fund’s investments:
| | | | | | | | | | | | | | | | |
| Description | | Unadjusted
quoted prices
in active
markets for
identical
investments
(Level 1) | | | Other
significant
observable
inputs
(Level 2) | | | Unobservable
inputs
(Level 3) | | | Total | |
| US government and agency obligations | | $ | — | | | $ | 122,000,980 | | | $ | — | | | $ | 122,000,980 | |
| Certificates of deposit | | | — | | | | 63,999,360 | | | | — | | | | 63,999,360 | |
| Commercial paper | | | — | | | | 215,965,701 | | | | — | | | | 215,965,701 | |
| Repurchase agreements | | | — | | | | 95,575,000 | | | | — | | | | 95,575,000 | |
| Total | | $ | — | | | $ | 497,541,041 | | | $ | — | | | $ | 497,541,041 | |
At December 31, 2015, there were no transfers between Level 1 and Level 2.
Issuer breakdown by country or territory of origin
| | | | |
| | | Percentage of
total investments | |
| United States | | | 81.1 | % |
| Japan | | | 10.1 | |
| Canada | | | 3.8 | |
| Netherlands | | | 3.0 | |
| Australia | | | 1.0 | |
| Sweden | | | 1.0 | |
| Total | | | 100.0 | % |
Portfolio footnotes
| * | On September 7, 2008, the Federal Housing Finance Agency placed the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation into conservatorship, and the US Treasury guaranteed the debt issued by those organizations. |
| 1 | Rates shown are the discount rates at date of purchase unless otherwise noted. |
| 2 | Variable or floating rate security. The interest rate shown is the current rate as of December 31, 2015 and changes periodically. The maturity date reflects earlier of reset date or stated maturity date. |
Portfolio acronyms
| | |
| STRIP | | Separate Trading of Registered Interest and Principal of Securities |
12
See accompanying notes to financial statements
UBS Retirement Money Fund
Statement of operations
| | | | |
| | | For the six
months ended
December 31, 2015
(unaudited) | |
| |
| Investment income: | | | | |
| Interest | | $ | 533,253 | |
| |
| Expenses: | | | | |
| Investment advisory and administration fees | | | 1,165,362 | |
| Service fees | | | 402,135 | |
| Transfer agency and related services fees | | | 254,173 | |
| Professional fees | | | 69,618 | |
| Reports and notices to shareholders | | | 31,934 | |
| Custody and accounting fees | | | 26,217 | |
| State registration fees | | | 22,842 | |
| Directors’ fees | | | 14,967 | |
| Insurance fees | | | 8,700 | |
| Other expenses | | | 14,990 | |
| | | | 2,010,938 | |
| Fee waivers and/or expense reimbursements by investment advisor/administrator/distributor | | | (1,504,594 | ) |
| Net expenses | | | 506,344 | |
| Net investment income | | | 26,909 | |
| Net realized gain | | | 9,923 | |
| Net increase in net assets resulting from operations | | $ | 36,832 | |
13
See accompanying notes to financial statements
UBS Retirement Money Fund
Statement of changes in net assets
| | | | | | | | |
| | | For the six
months ended
December 31, 2015
(unaudited) | | | For the
year ended
June 30, 2015 | |
| From operations: | | | | | | | | |
| Net investment income | | $ | 26,909 | | | $ | 65,032 | |
| Net realized gain | | | 9,923 | | | | 930 | |
| Net increase in net assets resulting from operations | | | 36,832 | | | | 65,962 | |
Dividends and distributions to
shareholders from: | | | | | | | | |
| Net investment income | | | (26,909 | ) | | | (65,032 | ) |
| Net realized gains | | | (7,286 | ) | | | — | |
| Total dividends and distributions to shareholders | | | (34,195 | ) | | | (65,032 | ) |
| Net decrease in net assets from capital stock transactions | | | (74,523,664 | ) | | | (205,003,299 | ) |
| Net decrease in net assets | | | (74,521,027 | ) | | | (205,002,369 | ) |
| Net assets: | | | | | | | | |
| Beginning of period | | | 572,013,107 | | | | 777,015,476 | |
| End of period | | $ | 497,492,080 | | | $ | 572,013,107 | |
| Accumulated undistributed net investment income | | $ | — | | | $ | — | |
14
See accompanying notes to financial statements
This page intentionally left blank.
15
UBS Retirement Money Fund
Financial highlights
Selected data for a share of common stock outstanding throughout each period is presented below:
| | | | |
| | | Six months ended
December 31, 2015
(unaudited) | |
| Net asset value, beginning of period | | | $1.00 | |
| Net investment income | | | 0.000 | 2 |
| Net realized gain (loss) | | | 0.000 | 2 |
| Net increase from operations | | | 0.000 | 2 |
| Dividends from net investment income | | | (0.000 | )2 |
| Distributions from net realized gains | | | (0.000 | )2 |
| Total dividends and distributions | | | (0.000 | )2 |
| Net asset value, end of period | | | $1.00 | |
| Total investment return3 | | | 0.01 | % |
| Ratios to average net assets: | | | | |
| Expenses before fee waivers and/or expense reimbursements | | | 0.75 | %4 |
| Expenses after fee waivers and/or expense reimbursements | | | 0.19 | %4 |
| Net investment income | | | 0.01 | %4 |
| Supplemental data: | | | | |
| Net assets, end of period (in millions) | | | $497 | |
| 1 | The investment advisory and administration functions for the Fund were transferred from UBS Financial Services Inc. to UBS Asset Management (Americas) Inc. (“UBS AM”) on March 1, 2011. As a result, the Fund no longer has a sub-advisor/sub-administrator but is managed directly by UBS AM. |
| 2 | Amount represents less than $0.0005 per share. |
| 3 | 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. |
16
See accompanying notes to financial statements
| | | | | | | | | | | | | | | | | | |
| Years ended June 30, | |
| 2015 | | | 2014 | | | 2013 | | | 2012 | | | 20111 | |
| | $1.00 | | | | $1.00 | | | | $1.00 | | | | $1.00 | | | | $1.00 | |
| | 0.000 | 2 | | | 0.000 | 2 | | | 0.000 | 2 | | | 0.000 | 2 | | | 0.000 | 2 |
| | 0.000 | 2 | | | (0.000 | )2 | | | 0.000 | 2 | | | 0.000 | 2 | | | (0.000 | )2 |
| | 0.000 | 2 | | | 0.000 | 2 | | | 0.000 | 2 | | | 0.000 | 2 | | | 0.000 | 2 |
| | (0.000 | )2 | | | (0.000 | )2 | | | (0.000 | )2 | | | (0.000 | )2 | | | (0.000 | )2 |
| | — | | | | — | | | | — | | | | — | | | | (0.000 | )2 |
| | (0.000 | )2 | | | (0.000 | )2 | | | (0.000 | )2 | | | (0.000 | )2 | | | (0.000 | )2 |
| | $1.00 | | | | $1.00 | | | | $1.00 | | | | $1.00 | | | | $1.00 | |
| | 0.01 | % | | | 0.01 | % | | | 0.01 | % | | | 0.01 | % | | | 0.01 | % |
| | | | | | | | | | | | | | | | | | |
| | 0.73 | % | | | 0.68 | % | | | 0.66 | % | | | 0.67 | % | | | 0.72 | % |
| | 0.14 | % | | | 0.14 | % | | | 0.20 | % | | | 0.19 | % | | | 0.26 | % |
| | 0.01 | % | | | 0.01 | % | | | 0.01 | % | | | 0.01 | % | | | 0.01 | % |
| | | | | | | | | | | | | | | | | | |
| | $572 | | | | $777 | | | | $1,310 | | | | $1,326 | | | | $1,418 | |
17
See accompanying notes to financial statements
UBS Retirement Money Fund
Notes to financial statements (unaudited)
Organization and significant accounting policies
UBS RMA Money Fund Inc. (the “Corporation”) was incorporated in the state of Maryland on July 2, 1982 and is registered with the US Securities and Exchange Commission (“SEC”) under the Investment Company Act of 1940, as amended (“1940 Act”), as an open-end, diversified management investment company. The Corporation is a series mutual fund and currently has three portfolios: UBS Retirement Money Fund (the “Fund”), UBS RMA Money Market Portfolio and UBS RMA U.S. Government Portfolio. The financial statements for UBS RMA Money Market Portfolio and UBS RMA U.S. Government Portfolio are not included herein.
The Corporation accounts separately for the assets, liabilities and operations of each series. Expenses directly attributable to each series are charged to that series’ operations; expenses which are applicable to all series are allocated among them on a pro rata basis.
In the normal course of business, the Fund may enter into contracts that contain a variety of representations or that provide indemnification for certain liabilities. The Fund’s maximum exposure under these arrangements is unknown, as this would involve future claims that may be made against the Fund that have not yet occurred. However, the Fund has not had prior claims or losses pursuant to these contracts and expects the risk of loss to be remote.
The Fund attempts to maintain a stable net asset value of $1.00 per share; the Fund has adopted certain investment, portfolio valuation and dividend/distribution policies in an attempt to enable it to do so. As with any money market fund, there is no assurance, however, that the Fund will be able to maintain a stable net asset value of $1.00 per share.
The Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) is the exclusive reference of authoritative US generally accepted accounting principles (“US GAAP”) recognized by the FASB to be applied by nongovernmental entities. Rules and interpretive releases of the SEC under authority of federal laws are also sources of authoritative US GAAP for SEC registrants. The
18
UBS Retirement Money Fund
Notes to financial statements (unaudited)
Fund’s financial statements are prepared in accordance with US GAAP, which may require the use of management estimates and assumptions. Actual results could differ from those estimates. The following is a summary of significant accounting policies:
Valuation of investments—Investments are valued at amortized cost. Periodic review and monitoring of the valuation of the securities held by the Fund is performed in an effort to ensure that amortized cost approximates market value.
US GAAP requires disclosure regarding the various inputs that are used in determining the value of the Fund’s investments. These inputs are summarized into the three broad levels listed below:
Level 1—Unadjusted quoted prices in active markets for identical investments.
Level 2—Other significant observable inputs, including but not limited to, quoted prices for similar investments, interest rates, prepayment speeds and credit risks.
Level 3—Unobservable inputs inclusive of the Fund’s own assumptions in determining the fair value of investments.
In accordance with the requirements of US GAAP, a fair value hierarchy has been included near the end of the Fund’s Statement of net assets.
Repurchase agreements—The Fund 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 Fund maintains custody of the underlying obligations prior to their repurchase, either through its regular custodian or through a special “tri-party” custodian or sub-custodian that maintains a separate account for both the Fund and its counterparty. The underlying collateral is valued daily in an effort 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 Fund generally has the right to liquidate the collateral and apply the proceeds in satisfaction of the obligation. Repurchase agreements
19
UBS Retirement Money Fund
Notes to financial statements (unaudited)
involving obligations other than US government securities (such as commercial paper, corporate bonds, equities and mortgage loans) may be subject to special risks and may not have the benefit of certain protections in the event of counterparty insolvency. Moreover, repurchase agreements secured by obligations that are not eligible for direct investment under Rule 2a-7 under the 1940 Act or a Fund’s investment strategies and limitations, may require the Fund to promptly dispose of such collateral if the seller or guarantor becomes insolvent. If the seller (or seller’s guarantor, if any) becomes insolvent, the Fund 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 Fund may participate in joint repurchase agreement transactions with other funds managed or advised by UBS Asset Management (America) Inc. (“UBS AM”).
Under certain circumstances, the Fund may engage in a repurchase agreement transaction with a yield of zero in order to invest cash amounts remaining in its portfolio at the end of the day in order to avoid having the Fund potentially exposed to a fee for uninvested cash held in a business account at a bank.
Investment transactions and investment income—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. Discounts are accreted and premiums are amortized as adjustments to interest income and the identified cost of investments.
Dividends and distributions—Dividends and distributions to shareholders are recorded on the ex-dividend date. The amount of dividends and distributions is determined in accordance with federal income tax regulations, which may differ from US GAAP. 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
20
UBS Retirement Money Fund
Notes to financial statements (unaudited)
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 Fund to meet their obligations may be affected by economic and political developments particular to a specific industry, country, state or region.
Investment advisor and administrator
The Fund’s Board of Directors has approved an investment advisory and administration contract (the “Advisory Contract”) with UBS AM, under which UBS AM serves as investment advisor and administrator of the Fund. In accordance with the Advisory Contract, the Fund pays UBS AM 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 | |
| Up to $300 million | | | 0.450 | % |
| In excess of $300 million up to $750 million | | | 0.415 | |
| In excess of $750 million up to $1.5 billion | | | 0.335 | |
| In excess of $1.5 billion up to $5 billion | | | 0.325 | |
| Over $5 billion | | | 0.315 | |
At December 31, 2015, the Fund owed UBS AM $39,444 for investment advisory and administration fees, net of fee waivers/expense reimbursements.
UBS AM has undertaken to waive fees and/or reimburse expenses in the event that Fund yields drop below a certain level. This undertaking is voluntary and not contractual and may be terminated at any time. For the six months ended December 31, 2015, UBS AM voluntarily waived investment advisory and administration fees totaling $1,102,459; such amount is not subject to future recoupment.
Under normal conditions, the Fund invests cash collateral from securities lending activities into an affiliated private money market fund, UBS Private Money Market Fund LLC (“Private Money Market”), which
21
UBS Retirement Money Fund
Notes to financial statements (unaudited)
operates in compliance with most of the substantive provisions of Rule 2a-7 of the 1940 Act. Private Money Market is managed by UBS AM and is currently offered as a cash management option to mutual funds and certain other accounts managed by UBS AM. UBS AM acts as managing member and receives a management fee from Private Money Market payable monthly in arrears at the annual rate of 0.10% of Private Money Market’s average daily members’ equity, minus the aggregate operating expenses of, and incurred by, Private Money Market during each such related month, not including investment expenses (including brokerage commissions, taxes, interest charges and other costs with respect to transactions in securities) and extraordinary expenses including litigation expenses, if any. UBS AM may, in its sole discretion, waive all or any portion of the management fee to which it may be entitled from time to time in order to maintain operating expenses or net yields at a certain level. Distributions received from Private Money Market, if any, net of fee rebates paid to borrowers, would be reflected as securities lending income in the Statement of operations.
Additional information regarding compensation to affiliate of a board member
Professor Meyer Feldberg serves as a senior advisor to Morgan Stanley, a financial services firm with which the Fund may conduct transactions, resulting in him being an interested board member of the Fund. The Fund has been informed that Professor Feldberg’s role at Morgan Stanley does not involve matters directly affecting any UBS funds. Portfolio transactions are executed through Morgan Stanley based on that firm’s ability to provide best execution of the transactions. During the six months ended December 31, 2015, the Fund purchased and sold certain securities (e.g., fixed income securities) in principal trades with Morgan Stanley, having an aggregate value of $94,978,931. Morgan Stanley received compensation in connection with these trades, which may have been in the form of a “mark-up” or “mark-down” of the price of the securities, a fee from the issuer for maintaining a commercial paper program, or some other form of compensation. Although the precise amount of this compensation is not generally known by the Fund’s investment advisor, it is believed that under
22
UBS Retirement Money Fund
Notes to financial statements (unaudited)
normal circumstances it represents a small portion of the total value of the transactions.
Distribution plan
UBS Asset Management (US) Inc. (“UBS AM (US)”) is the principal underwriter of the Fund’s shares and has appointed UBS Financial Services Inc. as dealer for the sale of those shares. Under the plan of distribution, the Fund pays UBS AM (US) a monthly service fee, which is accrued daily and paid monthly, at an annual rate of up to 0.15% of the Fund’s average daily net assets. The Fund currently pays service fees to UBS AM (US) at the maximum annual rate of 0.15% of average daily net assets. UBS AM (US) has undertaken to waive fees in the event that Fund yields drop below a certain level. This undertaking is voluntary and not contractual and may be terminated at any time. At December 31, 2015, given the impact of voluntary fee waivers, the Fund did not owe UBS AM (US) for service fees. For the six months ended December 31, 2015, UBS AM (US) voluntarily waived all of its fees, totaling $402,135; such amount is not subject to future recoupment.
Transfer agency and related services fees
UBS Financial Services Inc. provides certain services to the Fund pursuant to a delegation of authority from BNY Mellon Investment Servicing (US) Inc. (“BNY Mellon”), the Fund’s transfer agent, and is compensated for these services by BNY Mellon, not the Fund.
For the six months ended December 31, 2015, UBS Financial Services Inc. received from BNY Mellon, not the Fund, $146,690 of the total transfer agency and related service fees paid by the Fund to BNY Mellon.
Securities lending
The 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, US 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. The Fund will regain ownership of loaned
23
UBS Retirement Money Fund
Notes to financial statements (unaudited)
securities to exercise certain beneficial rights; however, the Fund may bear the risk of delay in recovery of, or even loss of rights in, the securities loaned should the borrower fail financially. The Fund receives compensation for lending its securities from interest or dividends earned on the cash, US government securities or irrevocable letters of credit held as collateral, net of fee rebates paid to the borrower plus reasonable administrative and custody fees. Any cash collateral received is invested in Private Money Market, which is included in the Fund’s Portfolio of investments. State Street Bank and Trust Company serves as the Fund’s lending agent. The Fund did not engage in securities lending during the six months ended December 31, 2015.
Other liabilities and components of net assets
At December 31, 2015, the Fund had the following liabilities outstanding:
| | | | |
| Dividends payable to shareholders | | $ | 1,087 | |
| Other accrued expenses* | | | 227,424 | |
| * | Excludes investment advisory and administration fees. |
At December 31, 2015, the components of net assets were as follows:
| | | | |
| Accumulated paid in capital | | $ | 497,492,057 | |
| Accumulated net realized gain | | | 23 | |
| Net assets | | $ | 497,492,080 | |
Common stock
There are 20 billion shares of $0.001 par value common stock authorized. Transactions in shares of common stock, at $1.00 per share, were as follows:
| | | | | | | | |
| | | For the
six months ended
December 31, 2015 | | | For the
year ended
June 30, 2015 | |
| Shares sold | | | 627,920,286 | | | | 1,201,487,688 | |
| Shares repurchased | | | (702,475,467 | ) | | | (1,406,549,966 | ) |
| Dividends reinvested | | | 31,517 | | | | 58,979 | |
| Net decrease in shares outstanding | | | (74,523,664 | ) | | | (205,003,299 | ) |
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UBS Retirement Money Fund
Notes to financial statements (unaudited)
Federal tax status
The Fund intends to distribute all or substantially 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 its net investment income, net realized capital gains and certain other amounts, if any, the Fund intends not to be subject to a federal excise tax.
The tax character of distributions paid to shareholders by the Fund during the six months ended December 31, 2015 and the fiscal year ended June 30, 2015 was ordinary income.
The components of accumulated earnings (deficit) on a tax basis for the current fiscal year will be determined after the Fund’s fiscal year ending June 30, 2016.
ASC 740-10 “Income Taxes—Overall” sets forth a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken. The Fund has conducted an analysis and concluded as of December 31, 2015 that there are no significant uncertain tax positions taken or expected to be taken that would require recognition in the financial statements. The Fund recognizes interest and penalties, if any, related to uncertain tax positions as income tax expense in the Statement of operations. During the six months ended December 31, 2015 the Fund did not incur any interest or penalties.
Each of the tax years in the four year period ended June 30, 2015, remains subject to examination by the Internal Revenue Service and state taxing authorities.
Regulatory Developments
On July 23, 2014, the US Securities and Exchange Commission adopted new regulations for money market funds. There is a transition period ranging until October 2016 for the most significant changes. These regulatory changes impact key aspects of how money market funds are
25
UBS Retirement Money Fund
Notes to financial statements (unaudited)
structured and operate. Later in 2016, but before the October 2016 compliance deadline, the Fund may no longer be offered as a sweep fund as part of certain distributor platforms. As a result, the Fund’s shareholders would be transitioned to an alternative money market sweep fund. The Fund’s shareholders will receive additional information at a future time in advance of these changes.
26
UBS Retirement Money Fund
General Information (unaudited)
Monthly and quarterly portfolio holdings disclosure
The 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 Fund’s Forms N-Q are available on the SEC’s Web site at http://www.sec.gov. The Fund’s 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 Fund upon request by calling 1-800-647 1568.
In addition, the Fund discloses, on a monthly basis: (a) a complete schedule of its portfolio holdings; and (b) information regarding its weighted average maturity and weighted average life on UBS’s Web site at the following internet address: www.ubs.com/usmoneymarketfundsholdings. In addition, at this location, you will find a link to more detailed fund information appearing in filings with the SEC on Form N-MFP. Investors also may find additional information about the Fund at the above referenced UBS Web site internet address.
Proxy voting policies, procedures and record
You may obtain a description of the Fund’s (1) proxy voting policies, (2) proxy voting procedures and (3) information regarding how the Fund voted any proxies related to portfolio securities during the most recent 12-month period ended June 30 for which an SEC filing has been made, without charge, upon request by contacting the Fund directly at 1-800-647 1568, online on the Fund’s Web site: www.ubs.com/ubsglobalam-proxy, or on the EDGAR Database on the SEC’s Web site (http://www.sec.gov).
27
UBS Retirement Money Fund
Board approval of investment advisory and administration agreement (unaudited)
Background—At a meeting of the board of UBS RMA Money Fund Inc. (the “Corporation”) on July 14-15, 2015, the members of the board, including the directors who are not “interested persons” of the Corporation (“Independent Directors”), as defined in the Investment Company Act of 1940, as amended (the “1940 Act”), considered and approved the continuance of the investment advisory and administration agreement (the “Investment Advisory and Administration Agreement”) of the Corporation with respect to its series, UBS Retirement Money Fund (the “Fund”), with UBS Asset Management (Americas) Inc. (“UBS AM”). In preparing for the meeting, the board members had requested and received extensive information from UBS AM to assist them, including information about UBS AM as well as the advisory, administrative and distribution arrangements for the Fund. The Independent Directors discussed the materials initially provided by management on several occasions prior to the scheduled board meeting. The Independent Directors also met in executive session after management’s presentation was completed to review the disclosure that had been made to them at the meeting. At these sessions the Independent Directors were joined by their independent legal counsel. The Independent Directors also received a memorandum from their independent legal counsel discussing the duties of board members in considering the approval of advisory, administration and distribution agreements.
In its consideration of the approval of the Investment Advisory and Administration Agreement, the board reviewed the following factors:
Nature, extent and quality of the services under the Investment Advisory and Administration Agreement—The board received and considered information regarding the nature, extent and quality of advisory services provided to the Fund by UBS AM under the Investment Advisory and Administration Agreement during the past year. The board also considered the nature, extent and quality of administrative, distribution and shareholder services performed by UBS AM and its affiliates for the Fund and the resources devoted to, and the record of compliance with, the Fund’s compliance policies and procedures. The board noted that it received information at regular meetings
28
UBS Retirement Money Fund
Board approval of investment advisory and administration agreement (unaudited)
throughout the year regarding the services rendered by UBS AM concerning the management of the Fund’s affairs and UBS AM’s role in coordinating and overseeing providers of other services to the Fund. The board’s evaluation of the services provided by UBS AM took into account the board’s knowledge and familiarity gained as board members of funds in the UBS New York fund complex, including the scope and quality of UBS AM’s investment advisory and other capabilities and the quality of its administrative and other services. The board observed that the scope of services provided by UBS AM had expanded over time as a result of regulatory and other developments, including maintaining and monitoring its own and the Fund’s expanded compliance programs.
The board had available to it the qualifications, backgrounds and responsibilities of the senior personnel at UBS AM responsible for the Fund and had previously met with and received information regarding the person primarily responsible for the day-to-day management of the Fund. The board recognized that the Fund’s senior personnel at UBS AM report to the board regularly and that at each regular meeting the board receives a detailed report from UBS AM on the Fund’s performance. The board also considered, based on its knowledge of UBS AM and its affiliates, the financial resources available to UBS AM and its parent organization, UBS Group AG. In that regard, the board received extensive financial information regarding UBS AM and noted that it was a wholly owned, indirect subsidiary of one of the largest financial services firms in the world. It also was noted that UBS AM had approximately $154 billion in assets under management as of March 31, 2015 and was part of the UBS Asset Management Division, which had approximately $680 billion in assets under management worldwide as of March 31, 2015. The board also was cognizant of, and considered, the regulatory and litigation actions and investigations occurring in the past few years involving UBS Group AG, UBS AM and certain of their affiliates.
The board concluded that, overall, it was satisfied with the nature, extent and quality of services provided (and expected to be provided) to the Fund under the Investment Advisory and Administration Agreement.
29
UBS Retirement Money Fund
Board approval of investment advisory and administration agreement (unaudited)
Advisory fees and expense ratios—The board reviewed and considered the contractual advisory and administration fee (the “Contractual Management Fee”) payable by the Fund to UBS AM in light of the nature, extent and quality of the advisory and administrative services provided by UBS AM. The board also reviewed and considered the fee waiver and/or expense reimbursement arrangement implemented for the Fund and considered the actual fee rate (after taking any waivers and/or reimbursements into account) (the “Actual Management Fee”). Additionally, the board received and considered information comparing the Fund’s Contractual Management Fee, Actual Management Fee and total expenses with those of funds in a group of funds selected and provided by Lipper, Inc. (“Lipper”), an independent provider of investment company data (the “Expense Group”). Referring to a memorandum from Lipper that was included in the meeting materials, management noted that Lipper was no longer able to make a distinction between sweep money market funds and all other money market funds in compiling the Fund’s Expense Group and that, as a result of non-sweep money market funds being included, the number of peer funds in the Expense Group had increased.
In connection with its consideration of the Fund’s management fees, the board also received information from UBS AM with respect to fees paid by institutional or separate accounts; however, in management’s view, such fee information was not very relevant to the Fund because, among other reasons, separately managed and institutional accounts with a “cash” mandate (a) were not subject to all of the constraints of Rule 2a-7 under the 1940 Act to which the Fund is subject and (b) do not involve the management responsibilities attendant to the operation of a 1940 Act regulated fund, and, therefore, were not totally comparable. The board also received information on fees charged to other mutual funds managed by UBS AM.
The comparative Lipper information showed that the Fund’s Contractual Management Fee was above the median, while its Actual Management Fee and total expenses were below the median (Actual Management Fee and total expenses were lowest and second-lowest in the Expense Group, respectively) in the Fund’s Expense Group for the comparison
30
UBS Retirement Money Fund
Board approval of investment advisory and administration agreement (unaudited)
periods utilized in the Lipper report. (Below median fees or expenses represent fees or expenses that are lower relative to the median, and above median fees or expenses represent fees or expenses that are higher relative to the median of the funds in the Expense Group.)
In light of the foregoing, the board determined that the management fee was reasonable in light of the nature, extent and quality of services provided to the Fund under the Investment Advisory and Administration Agreement.
Fund performance—The board received and considered (a) annualized total return information of the Fund compared to other funds (the “Performance Universe”) selected by Lipper over the one-, three-, five-, ten-year and since inception periods ended April 30, 2015 and (b) annualized performance information for each year in the ten-year period ended April 30, 2015. Although the board received information for the ten-year and since inception periods, in its analysis, it generally placed greater emphasis on the one-, three- and five-year periods. The board was provided with a description of the methodology Lipper used to determine the similarity of the Fund with the funds included in its Performance Universe. The board also received updated supplemental data showing the Fund’s performance through May 31, 2015. The board also noted that it had received information throughout the year at periodic intervals with respect to the Fund’s performance.
The comparative Lipper information showed that the Fund’s performance was at the median for the one-, three- and five-year periods and below the median for the ten-year period and since inception. (Below median performance represents performance that is worse relative to the median and above median performance represents performance that is better relative to the median.) Management noted that the Fund’s performance had improved over recent periods. Based on its review, the board concluded that the Fund’s investment performance was acceptable.
Advisor profitability—The board received and considered a profitability analysis of UBS AM and its affiliates in providing services to
31
UBS Retirement Money Fund
Board approval of investment advisory and administration agreement (unaudited)
the Fund. The board also received profitability information with respect to the UBS New York fund complex as a whole. UBS AM’s profitability was considered not excessive in light of the nature, extent and quality of the services provided to the Fund.
Economies of scale—The board received and considered information from management regarding whether UBS AM realized economies of scale as the Fund’s assets grew, whether the Fund has appropriately benefited from any economies of scale, and whether there is potential for realization of any further economies of scale for the Fund. The board considered whether economies of scale in the provision of services to the Fund were being passed along to the shareholders.
The board noted that the Fund’s Contractual Management Fee contained breakpoints. The board considered that the Fund’s asset level exceeded the first breakpoint and, as a result, the Fund and its shareholders realized certain economies of scale because the total expense ratio of the Fund was lower than if no breakpoints had been in place. The board also noted that, as discussed earlier, the Fund’s total expenses were below the median and, in fact, the second-lowest in its Expense Group. Accordingly, the board determined that economies of scale were passed on to shareholders, including in the form of breakpoints to the management fee and operational efficiencies or fee and expense waivers.
Generally, in light of UBS AM’s profitability data, the Contractual Management Fee and Actual Management Fee, and the breakpoints currently in place, the board believed that UBS AM’s sharing of current economies of scale with the Fund was acceptable.
Other benefits to UBS AM—The board considered other benefits received by UBS AM and its affiliates as a result of its relationship with the Fund, including the opportunity to offer additional products and services to Fund shareholders. In light of the costs of providing investment advisory, administrative and other services to the Fund and UBS AM’s ongoing commitment to the Fund, the profits and other ancillary benefits that UBS AM and its affiliates received were considered reasonable.
32
UBS Retirement Money Fund
Board approval of investment advisory and administration agreement (unaudited)
In light of all of the foregoing, the board approved the Investment Advisory and Administration Agreement. No single factor reviewed by the board was identified by the board as the principal factor in determining whether to approve the Investment Advisory and Administration Agreement. The Independent Directors were advised by separate independent legal counsel throughout the process. The board discussed the proposed continuance of the Investment Advisory and Administration Agreement in private sessions with its independent legal counsel at which no representatives of UBS AM were present.
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40
| | |
Directors | | |
| |
Richard Q. Armstrong Chairman Alan S. Bernikow Richard R. Burt | | Meyer Feldberg Bernard H. Garil Heather R. Higgins David Malpass |
| |
Principal Officers | | |
| |
Mark E. Carver President Mark F. Kemper Vice President and Secretary | | Thomas Disbrow Vice President and Treasurer Robert Sabatino Vice President |
Investment Advisor and Administrator
UBS Asset Management (Americas) Inc.
1285 Avenue of the Americas
New York, New York 10019-6028
Principal Underwriter
UBS Asset Management (US) Inc.
1285 Avenue of the Americas
New York, New York 10019-6028
The financial information included herein is taken from the records of the Fund without examination by independent registered public accountants who do not express an opinion thereon.
This report is not to be used in connection with the offering of shares of the Fund unless accompanied or preceded by an effective prospectus.
©UBS 2016. All rights reserved.
UBS Asset Management (Americas) Inc.
1285 Avenue of the Americas
New York, New York 10019-6028
S250
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. Investments.
(a) Included as part of the report to shareholders filed under Item 1 of this form.
(b) Not applicable.
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, Richard R. Burt, care of the Secretary of the registrant at UBS Asset Management, UBS Building, One North Wacker Drive, Chicago, IL 60606, Attn: Mark Kemper, Secretary, 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 (as defined in Rule 30a-3(d) under the Investment Company Act of 1940, as amended) that occurred during the registrant’s last fiscal quarter of the period covered by this report 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 are 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 are 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 RMA Money Fund Inc. |
| |
| By: | | /s/ Mark E. Carver |
| | Mark E. Carver |
| | President |
| |
| Date: | | March 10, 2016 |
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/ Mark E. Carver |
| | Mark E. Carver |
| | President |
| |
| Date: | | March 10, 2016 |
| |
| By: | | /s/ Thomas Disbrow |
| | Thomas Disbrow |
| | Vice President and Treasurer |
| |
| Date: | | March 10, 2016 |
