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: 811-03946 |
UBS Managed Municipal Trust
(Exact name of registrant as specified in charter)
| 51 West 52nd Street, New York, New York 10019-6114 |
| (Address of principal executive offices) (Zip code) |
Mark F. Kemper, Esq.
UBS Global Asset Management
51 West 52nd Street
New York, NY 10019-6114
(Name and address of agent for service)
Copy to:
Jack W. Murphy, Esq.
Dechert LLP
1775 I Street, N.W.
Washington, DC 20006-2401
Registrant’s telephone number, including area code: 212-882 5000
Date of fiscal year end: June 30
Date of reporting period: December 31, 2007
| Item 1. | Reports to Stockholders. |
UBS RMA
Money Market Portfolio
U.S. Government Portfolio
Tax-Free Fund
California Municipal Money Fund
New York Municipal Money Fund
New Jersey Municipal Money Fund
Semiannual Report
December 31, 2007
UBS RMA
February 15, 2008
Dear shareholder,
We present you with the semiannual report for UBS RMA Money Market Portfolio; UBS RMA U.S. Government Portfolio; UBS RMA Tax-Free Fund Inc.; UBS RMA California Municipal Money Fund; UBS RMA New York Municipal Money Fund; and UBS RMA New Jersey Municipal Money Fund, for the six months ended December 31, 2007.
Performance
As of December 31, 2007, the Funds’ seven-day current yields were:
• UBS RMA Money Market Portfolio: 4.07%;
• UBS RMA U.S. Government Portfolio: 3.10%;
• UBS RMA Tax-Free Fund Inc.: 2.83%;
• UBS RMA California Municipal Money Fund: 2.65%;
• UBS RMA New York Municipal Money Fund: 2.71%;
• UBS RMA New Jersey Municipal Money Fund: 2.34%.
(For more on the Funds’ performance, refer to “Performance and portfolio characteristics at a glance” beginning on page 9.)
An Interview with the Portfolio Managers
| Q. | Can you describe the economic environment during the reporting period? |
| A. | While it was fairly resilient during much of the reporting period, the US economy weakened toward the end of 2007. A variety of factors caused the economy to stumble, including |
UBS RMA Money Market Portfolio, UBS RMA U.S. Government Portfolio
Investment goal (both Portfolios):
Maximum current income consistent with preservation of capital and liquidity
Portfolio Managers (both Portfolios):
Michael H. Markowitz
Robert Sabatino
UBS Global Asset Management (Americas) Inc.
Commencement (both Portfolios):
October 4, 1982
Dividend payment (both Portfolios):
Monthly
UBS RMA Tax-Free Fund Inc., UBS RMA California Municipal Money Fund, UBS RMA New York Municipal Money Fund, UBS RMA New Jersey Municipal Money Fund
Investment goal (all four Funds):
Maximum current income exempt from federal and/or a specific state’s personal income taxes consistent with preservation of capital and liquidity
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UBS RMA
the ongoing troubles in the housing market and tepid business spending. |
The economy was boosted by improving manufacturing activity during the second quarter of 2007, when gross domestic product (“GDP”) growth was a solid 3.8%. The Commerce Department then reported that third quarter GDP growth was 4.9%, due, in part, to strong consumer spending and
increased exports. However, advance growth rate estimates for fourth quarter GDP fell back to the first quarter level, just 0.6%. The combined effects of the weak housing market, issues related to subprime mortgages and tighter credit conditions negatively impacted the overall economy.
| Q. | How did the Federal Reserve Board (the “Fed”) react in this economic environment? |
| A. | Fed Chairman Ben Bernanke initially indicated that the issues related to the subprime mortgage market would probably not impact the overall economy. However, as the problems and fallout from subprime mortgages escalated, the Fed became more concerned about these issues. As credit concerns mounted, the Fed provided greater amounts of liquidity to the market in order to facilitate normal market operations. In mid-August, the Fed lowered the discount rate—the rate the Fed uses for loans it makes directly to banks. Then, in mid-September, the Fed continued to take action by reducing the federal funds rate from 5.25% to 4.75%. (The federal funds rate, or “fed funds” rate, is the rate that banks charge one another for funds they borrow on an overnight basis.) This was the first reduction in the fed funds rate since June 2003. |
The Fed again lowered rates in October and December 2007, bringing the fed funds rate to 4.25% by the end of the year. In January 2008, after the reporting period had ended, the Fed cut the rate twice within nine days. On January 22nd it reduced the rate by 0.75%. This was followed by another 0.50% cut on January 30th, bringing the fed funds rate to 3.00%, the lowest level since May 2005. In its statement released in conjunction with the latest rate cut, the Fed stated:
Portfolio Managers (all four funds):
Elbridge T. Gerry III
Ryan Nugent
UBS Global Asset Management (Americas) Inc.
Commencement:
Tax-Free—October 4, 1982 California Municipal—November 7, 1988 New York Municipal—November 10, 1988 New Jersey Municipal—February 1, 1991
Dividend payment (all four Funds):
Monthly
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UBS RMA
“Financial markets remain under considerable stress, and credit has tightened further for some businesses and households. Moreover, recent information indicates a deepening of the housing contraction as well as some softening in labor markets.”
| Q. | How were the UBS RMA Money Market and UBS RMA U.S. Government Portfolios positioned during the semiannual period? |
| A. | In the UBS RMA Money Market and the UBS RMA U.S. Government Portfolios, we employed a “barbell” strategy in which the maturities of securities in the Portfolios were concentrated at opposite ends of the short-term yield curve during much of the period. We continued to buy shorter-term securities, as we also sought to extend the Portfolios’ weighted average maturity with longer-term money market securities maturing within nine to 13 months. |
Within the UBS RMA Money Market Portfolio, when the troubles surfaced in the credit market in mid-August, we sought to increase liquidity by purchasing more overnight securities. This reduced the Portfolio’s weighted average maturity during the remainder of the period. We also added more government agency securities to the UBS RMA Money Market Portfolio in October, further increasing liquidity. Overall, the barbell strategy was a positive contributor to performance.
| Q. | During the reporting period, events in the subprime market had a dramatic impact on financial markets. Did the UBS RMA Money Market Portfolio have direct exposure to the subprime mortgage market or collateralized debt obligations? |
| A. | The UBS RMA Money Market Portfolio did not have any direct exposure to collateralized debt obligations or the subprime mortgage market. Direct exposure to the subprime mortgage market would result from owning asset-backed commercial paper programs that are solely invested in subprime mortgages. All of the asset-backed commercial paper, and indeed all of the commercial paper in which the Portfolio invests were, at the time of purchase (and continue to remain), rated in the highest (or “first tier”) ratings category (for example, A-1, P-1, or F-1) by at least two nationally recognized ratings services (e.g., Moody’s Investors Service, Standard and Poor’s*, or Fitch Ratings). All of the asset-backed commercial paper programs in which the Portfolio invests are sponsored by well-regarded, high-quality financial institutions. We continue to monitor the stresses in the fixed income markets closely, as well as the indirect risks to the Portfolio. In these uncertain times, we have attempted to manage the UBS RMA Money Market Portfolio conservatively. |
| * | Standard & Poor’s is a division of The McGraw-Hill Companies. |
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UBS RMA
| Q. | What are SIVs, and what distinguishes those held by the UBS RMA Money Market Portfolio? |
| A. | Structured investment vehicles, or SIVs, are funded with asset-backed commercial paper and capital notes. Assets in the pools underlying many SIVs are well diversified due to sector exposure limitations, and can include bank debt, corporate debt and longer-term asset-backed securities. Capital notes most often act as “program enhancement,” and are subordinate to asset-backed commercial paper and medium term notes. Our credit analysts have reviewed each of the current holdings in the Portfolio, and reaffirmed their belief that the holdings pose minimal credit risk. Our holdings in SIVs represented a small proportion of the UBS RMA Money Market Portfolio’s total holdings, and the SIVs purchased by the Portfolio are sponsored by large, well-diversified banks. We believe that large bank sponsors have the expertise, resources and reputations that should prove essential in the event the current liquidity issues persist. That is, capital notes would be expected to bear any SIV losses first, before other securities issued by SIVs. The UBS RMA Money Market Portfolio does not buy capital notes issued by SIVs. |
| Q. | How were the tax-exempt Funds positioned during the reporting period? |
| A. | In the tax-exempt Funds, we maintained weighted average maturities of up to ten days shorter than those of many of our peers during the reporting period. We allowed most of the Funds’ weighted average maturities to increase somewhat as the period progressed, as we believed that interest rates were likely to decrease. |
In order to add yield and diversity to the Funds, we maintained an exposure to a range of money market instruments. At the beginning of the period, we focused on variable rate demand notes. Purchased at par, they pay monthly or quarterly interest based on a floating rate that is reset daily or weekly based on an index of short-term municipal rates.
During the period, the effects of turbulence in the subprime mortgage market and elsewhere began impacting several of the bond insurers that back many variable rate demand notes. (Bond insurers offer financial guaranty insurance policies, which guarantee that the insurer will make the scheduled principal and interest payments on time and in full if the issuer cannot.) Several of these insurers were downgraded or placed on “credit watch” by the major rating agencies, including Fitch Ratings, Moody’s Investors Service, and Standard & Poor’s during the period. As a result, we sought to lessen exposure to securities related to certain of those insurers to the extent that we believed it was practicable to do so. Instead, we focused on two kinds of higher-quality
issues. First, those backed by bond insurer Financial Security Assurance
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UBS RMA
(FSA), the only insurer to have its AAA rating affirmed, and deemed to have a stable outlook from all three rating agencies. The second kind are those securities in which the underlying issuer’s credit quality was sufficient even without any insurance overlay.
We found tax-free money market securities issued by some structured programs attractive in the market that prevailed during the reporting period. Securities of this kind are created when a sponsor places long-term municipal bonds in a trust. Next, the structure is further enhanced, usually through the addition of a demand feature of some sort related to notes issued by the trust itself. The trust issues short-term securities, and the notes are purchased at par and pay interest periodically based on a floating rate that resets from time to time. We believe that many of these programs were more flexible in adjusting to market challenges, and owning these securities benefited performance during the reporting period.
| Q. | What factors do you believe will affect the Portfolios over the coming months? |
| A. | We see increasing signs that the crises in the subprime and housing markets are starting to cast a larger shadow on various industries and the consumer, raising the specter of recession. We will continue to monitor the factors likely to play a role in the Fed’s future decisions on interest rates, including inflation and the overall strength of the economy. We also plan to remain alert to changes in the risk premium (the return over the hypothetical risk-free rate) associated with short-term securities, as well as the effects of subprime lending on the rest of the economy. |
Special note regarding the tax-exempt funds :
• UBS RMA Tax-Free Fund Inc.
• UBS RMA California Municipal Money Fund
• UBS RMA New York Municipal Money Fund
• UBS RMA New Jersey Municipal Money Fund
After the close of the reporting period, the funds began investing, to a limited extent, in other securities as noted below.
Exercising ability to invest in AMT municipal and taxable securities
As fund managers have winnowed their exposures to insured municipal money market issues most vulnerable to downgrades, the available supply of suitable investment opportunities has diminished. As a result, UBS Global Asset Management has determined that it is in the best interests of shareholders for the tax-exempt Funds to make temporary, limited investments of appropriate credit quality within the AMT municipal and
taxable securities universes, to the extent allowable by the funds’ offering
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UBS RMA
documents and as believed prudent or appropriate(1). (“AMT” municipal universe means securities subject to the Alternative Minimum Tax.)
By doing so, the funds will continue to pursue competitive yields for investors, while seeking to adhere to high credit-quality constraints. However, UBS Global Asset Management does not intend to emphasize yield at the expense of credit quality. Thus, the tax-exempt funds’ yields may be lower in comparison to those of funds investing in securities that we think are less suitable for our portfolios.
Furthermore, as a result of these investments, a portion of the funds’ yields may not be as tax advantaged as ordinary municipal money market investments. However, we think that the higher yield paid on the taxable or AMT municipal investments should at least partially offset any lost tax advantage. Of course, we will continue to manage the funds so that the tax characteristics of the underlying securities are passed through to the shareholders to the extent allowed.
We intend to maintain a defensive posture by investing in AMT municipal securities(2) as well as taxable securities, on occasion, for as long as these unusual market conditions persist. However, we do not intend to invest in these securities to achieve any of the above goals at the expense of suitable tax-free investments deemed to be of appropriate credit quality for the Funds’ portfolios.
Potential tax consequences for shareholders
The tax consequences of investing in the AMT municipal and taxable securities universes vary based on the type of security purchased, the period of time during which it is held, and the portion of the portfolio invested. It is our intention to first invest, to the extent possible, in those opportunities that represent minimal tax implications to investors.
Generally speaking, if a municipal money market fund invests in instruments that generate taxable income, only the portion of a fund dividend attributable to interest earned on such taxable securities thereafter will be taxable to its shareholders as ordinary income. Of course, the actual tax consequences carried through to the investor will vary based on each investor’s individual circumstances(3).
(1) | More specific information pertaining to these investments is contained in the Funds’ current prospectus and Statement of Additional Information. |
(2) | Please note that UBS RMA New Jersey Municipal Money Fund can invest up to 20% in AMT municipal securities under even normal conditions. |
(3) | UBS Global Asset Management is not a tax advisor. The Funds’ prospectus and Statement of Additional Information contain further information regarding taxes. Investors should consult with their tax advisors to discuss their individual circumstances. |
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UBS RMA
Please note that as of February 13, 2008, well over 90% of each of the tax-exempt funds continued to be invested in tax-exempt securities. Limited investments in taxable securities represented a relatively small portion of each fund as of that date. The amount that any given fund may invest in taxable securities on any given day, if any, may fluctuate depending on a variety of factors, including supply and demand in the municipal markets and credit rating agency actions.
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/globalam-us.
Sincerely,
Kai R. Sotorp President UBS RMA Money Fund Inc. (UBS RMA Money Market Portfolio UBS RMA Tax-Free Fund Inc. UBS Managed Municipal Trust (UBS RMA California Municipal Money Fund UBS Municipal Money Market Series (UBS RMA New Jersey Municipal Money Fund) Head of the Americas UBS Global 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 UBS RMA New Jersey Municipal Money Fund Managing Director UBS Global 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/globalam-us.
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UBS RMA
Michael H. Markowitz
Portfolio Manager
UBS RMA Money Market Portfolio
UBS RMA U.S. Government Portfolio
Managing Director
UBS Global Asset Management (Americas) Inc.
Ryan Nugent
Portfolio Manager
UBS RMA Tax-Free Fund Inc.
UBS RMA California Municipal Money Fund
UBS RMA New York Municipal Money Fund
UBS RMA New Jersey Municipal Money Fund
Director
UBS Global Asset Management (Americas) Inc.
Robert Sabatino
Portfolio Manager
UBS RMA Money Market Portfolio
UBS RMA U.S. Government Portfolio
Executive Director
UBS Global Asset Management (Americas) Inc.
This letter is intended to assist shareholders in understanding how the Funds performed during the six months ended December 31, 2007. The views and opinions in the letter were current as of February 15, 2008. They are not guarantees of 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.
| 8 |
UBS RMA
Performance and portfolio characteristics at a glance (unaudited)
| UBS RMA Money Market Portfolio | |||||||||
| Yields and characteristics | 12/31/07 | 06/30/07 | 12/31/06 | ||||||
| Seven-day current yield(1) | 4.07 | % | 4.76 | % | 4.76 | % | |||
| Seven-day effective yield(1) | 4.15 | 4.87 | 4.88 | ||||||
| Weighted average maturity(2) | 43 | days | 55 | days | 49 | days | |||
| Net assets (bn) | $16.0 | $13.1 | $12.5 | ||||||
| Portfolio composition(3) | 12/31/07 | 06/30/07 | 12/31/06 | ||||||
| Repurchase agreements | 33.9 | % | 2.1 | % | 1.4 | % | |||
| US government and agency obligations | 18.9 | 5.3 | 3.6 | ||||||
| Certificates of deposit | 14.5 | 15.9 | 21.3 | ||||||
| Short-term corporate obligations | 13.6 | 20.2 | 13.1 | ||||||
| Commercial paper | 13.1 | 54.4 | 58.8 | ||||||
| Time deposits | 4.7 | – | – | ||||||
| Money market funds | 1.3 | 0.0 | (4) | 0.0 | (4) | ||||
| Bank notes | 0.5 | 3.8 | 1.5 | ||||||
| Other assets less liabilities | (0.5 | ) | (1.7 | ) | 0.3 | ||||
| Total | 100.0 | % | 100.0 | % | 100.0 | % | |||
| UBS RMA U.S. Government Portfolio | |||||||||
| Yields and characteristics | 12/31/07 | 06/30/07 | 12/31/06 | ||||||
| Seven-day current yield(1) | 3.10 | % | 4.36 | % | 4.45 | % | |||
| Seven-day effective yield(1) | 3.14 | 4.46 | 4.54 | ||||||
| Weighted average maturity(2) | 26 | days | 15 | days | 19 | days | |||
| Net assets (bn) | $1.6 | $1.0 | $1.0 | ||||||
| Portfolio composition(3) | 12/31/07 | 06/30/07 | 12/31/06 | ||||||
| Repurchase agreements | 62.9 | % | 100.1 | % | 85.5 | % | |||
| US government obligations | 37.1 | 28.6 | 14.6 | ||||||
| Money market funds | 0.1 | 0.0 | (4) | 0.0 | (4) | ||||
| Other assets less liabilities | (0.1 | ) | (28.7 | ) | (0.1 | ) | |||
| Total | 100.0 | % | 100.0 | % | 100.0 | % | |||
(1) | Yields will fluctuate and reflect fee waivers and/or expense reimbursements, if any. Past performance does not predict future performance, and the performance information provided does not reflect the deduction of taxes that a shareholder would pay on distributions. The return of an investment will fluctuate. Performance results assume reinvestment of all dividends and capital gain distributions (if any) at net asset value on the payable dates. Current performance may be higher or lower than the performance data quoted. |
(2) | The Portfolios are actively managed and their weighted average maturities will differ over time. |
(3) | Weightings represent percentages of net assets as of the dates indicated. The Portfolios are actively managed and their compositions will vary over time. |
(4) | Weightings represent less than 0.05% of net assets as of the dates 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.
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UBS RMA
Performance and portfolio characteristics at a glance (unaudited) (continued)
| UBS RMA Tax-Free Fund Inc. | |||||||||
| Yields and characteristics | 12/31/07 | 06/30/07 | 12/31/06 | ||||||
| Seven-day current yield(1) | 2.83 | % | 3.14 | % | 3.26 | % | |||
| Seven-day effective yield(1) | 2.87 | 3.19 | 3.31 | ||||||
| Weighted average maturity(2) | 19 | days | 17 | days | 15 | days | |||
| Net assets (bn) | $6.3 | $4.9 | $4.4 | ||||||
| Portfolio composition(3) | 12/31/07 | 06/30/07 | 12/31/06 | ||||||
| Municipal bonds and notes | 92.2 | % | 86.5 | % | 92.1 | % | |||
| Tax-exempt commercial paper | 7.3 | 7.7 | 10.8 | ||||||
| Money market funds | 0.8 | – | – | ||||||
| Multi-issuer municipal asset-backed securities | 0.7 | 4.5 | – | ||||||
| Other assets less liabilities | (1.0 | ) | 1.3 | (2.9 | ) | ||||
| Total | 100.0 | % | 100.0 | % | 100.0 | % | |||
| UBS RMA California Municipal Money Fund | |||||||||
| Yields and characteristics | 12/31/07 | 06/30/07 | 12/31/06 | ||||||
| Seven-day current yield(1) | 2.65 | % | 3.07 | % | 3.10 | % | |||
| Seven-day effective yield(1) | 2.68 | 3.12 | 3.15 | ||||||
| Weighted average maturity(2) | 31 | days | 29 | days | 15 | days | |||
| Net assets (bn) | $1.5 | $1.2 | $1.1 | ||||||
| Portfolio composition(3) | 12/31/07 | 06/30/07 | 12/31/06 | ||||||
| Municipal bonds and notes | 92.8 | % | 93.1 | % | 91.6 | % | |||
| Tax-exempt commercial paper | 4.9 | 6.7 | 9.0 | ||||||
| Multi-issuer municipal asset-backed securities | 1.1 | 6.7 | – | ||||||
| Money market fund | 0.5 | – | – | ||||||
| Other assets less liabilities | 0.7 | (6.5 | ) | (0.6 | ) | ||||
| Total | 100.0 | % | 100.0 | % | 100.0 | % | |||
(1) | Yields will fluctuate and reflect fee waivers and/or expense reimbursements, if any. Past performance does not predict future performance, and the performance information provided does not reflect the deduction of taxes that a shareholder could pay on distributions. The return of an investment will fluctuate. Performance results assume reinvestment of all dividends and capital gain distributions (if any) at net asset value on the payable dates. Current performance may be higher or lower than the performance data quoted. |
(2) | The Funds are actively managed and their weighted average maturities will differ over time. |
(3) | Weightings represent percentages of net assets as of the dates indicated. The Funds are actively managed and their compositions 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.
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UBS RMA
Performance and portfolio characteristics at a glance (unaudited) (concluded)
| UBS RMA New York Municipal Money Fund | |||||||||
| Yields and characteristics | 12/31/07 | 06/30/07 | 12/31/06 | ||||||
| Seven-day current yield(1) | 2.71 | % | 3.04 | % | 3.14 | % | |||
| Seven-day effective yield(1) | 2.75 | 3.09 | 3.19 | ||||||
| Weighted average maturity(2) | 26 | days | 20 | days | 16 | days | |||
| Net assets (mm) | $1,080.9 | $832.6 | $698.7 | ||||||
| Portfolio composition(3) | 12/31/07 | 06/30/07 | 12/31/06 | ||||||
| Municipal bonds and notes | 92.4 | % | 91.0 | % | 90.8 | % | |||
| Tax-exempt commercial paper | 10.1 | 9.2 | 11.1 | ||||||
| Money market fund | 1.0 | – | – | ||||||
| Other assets less liabilities | (3.5 | ) | (0.2 | ) | (1.9 | ) | |||
| Total | 100.0 | % | 100.0 | % | 100.0 | % | |||
| UBS RMA New Jersey Municipal Money Fund | |||||||||
| Yields and characteristics | 12/31/07 | 06/30/07 | 12/31/06 | ||||||
| Seven-day current yield(1) | 2.34 | % | 2.91 | % | 3.06 | % | |||
| Seven-day effective yield(1) | 2.37 | 2.95 | 3.11 | ||||||
| Weighted average maturity(2) | 20 | days | 28 | days | 18 | days | |||
| Net assets (mm) | $273.5 | $179.7 | $172.8 | ||||||
| Portfolio composition(3) | 12/31/07 | 06/30/07 | 12/31/06 | ||||||
| Municipal bonds and notes | 87.5 | % | 98.1 | % | 96.1 | % | |||
| Tax-exempt commercial paper | 1.5 | 2.5 | 3.5 | ||||||
| Money market fund | 1.8 | – | – | ||||||
| Other assets less liabilities | 9.2 | (0.6 | ) | 0.4 | |||||
| Total | 100.0 | % | 100.0 | % | 100.0 | % | |||
(1) | Yields will fluctuate and reflect fee waivers and/or expense reimbursements, if any. Past performance does not predict future performance, and the performance information provided does not reflect the deduction of taxes that a shareholder could pay on distributions. The return of an investment will fluctuate. Performance results assume reinvestment of all dividends and capital gain distributions (if any) at net asset value on the payable dates. Current performance may be higher or lower than the performance data quoted. |
(2) | The Funds are actively managed and their weighted average maturities will differ over time. |
(3) | Weightings represent percentages of net assets as of the dates indicated. The Funds are actively managed and their compositions 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.
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UBS RMA Money Market Portfolio
Statement of net assets—December 31, 2007 (unaudited)
| Face amount | Value | |||||||
| US government and agency obligations—18.90% | ||||||||
Federal Farm Credit Bank | $128,000,000 | $127,988,770 | ||||||
Federal Home Loan Bank | 260,000,000 | 259,968,833 | ||||||
4.240%, due 01/17/08(2) | 75,000,000 | 74,858,667 | ||||||
4.785%, due 02/18/08(1) | 27,000,000 | 27,000,000 | ||||||
4.280%, due 03/26/08(2) | 103,427,000 | 102,381,813 | ||||||
4.885%, due 08/20/08(3) | 91,000,000 | 91,083,287 | ||||||
5.100%, due 09/19/08 | 135,000,000 | 135,450,439 | ||||||
4.500%, due 11/05/08(3) | 135,000,000 | 135,000,000 | ||||||
Federal Home Loan Mortgage Corp. | 36,155,000 | 35,983,756 | ||||||
4.230%, due 03/17/08(2) | 243,472,000 | 241,297,795 | ||||||
4.670%, due 03/30/08(1) | 78,000,000 | 77,962,765 | ||||||
3.790%, due 12/08/08(2) | 184,528,000 | 177,884,069 | ||||||
4.300%, due 12/26/08 | 100,000,000 | 100,000,000 | ||||||
Federal National Mortgage Association(2) | 248,000,000 | 247,622,971 | ||||||
4.645%, due 01/16/08 | 94,659,000 | 94,475,795 | ||||||
4.300%, due 01/31/08 | 290,000,000 | 288,960,833 | ||||||
4.280%, due 02/22/08 | 225,000,000 | 223,609,000 | ||||||
4.165%, due 05/07/08 | 95,644,000 | 94,238,684 | ||||||
US Treasury Bills(2) | 174,600,000 | 173,450,550 | ||||||
3.075%, due 06/05/08 | 170,000,000 | 167,734,750 | ||||||
3.170%, due 06/12/08 | 155,000,000 | 152,775,276 | ||||||
| Total US government and agency obligations (cost—$3,029,728,053) | 3,029,728,053 | |||||||
| Bank note—0.47% | ||||||||
| Banking-US—0.47% | ||||||||
Bank of America N.A. | 75,000,000 | 75,000,000 | ||||||
| Time deposits—4.74% | ||||||||
| Banking-non-US—4.74% | ||||||||
Dresdner Bank AG | 110,000,000 | 110,000,000 | ||||||
Natixis | 200,000,000 | 200,000,000 | ||||||
| 12 |
UBS RMA Money Market Portfolio
Statement of net assets—December 31, 2007 (unaudited)
| Face amount | Value | |||||||
| Time deposits—(concluded) | ||||||||
| Banking-non-US—(concluded) | ||||||||
Wells Fargo Bank N.A. (Cayman Islands) 3.000%, due 01/02/08 | $450,000,000 | $450,000,000 | ||||||
| Total time deposits (cost—$760,000,000) | 760,000,000 | |||||||
| Certificates of deposit—14.53% | ||||||||
| Banking-non-US—11.30% | ||||||||
Bank of Scotland PLC | 90,000,000 | 90,000,000 | ||||||
Bank of Tokyo-Mitsubishi UFJ Ltd. | 85,000,000 | 85,000,000 | ||||||
5.440%, due 03/14/08 | 134,000,000 | 134,000,000 | ||||||
Barclays Bank PLC | 101,750,000 | 101,750,000 | ||||||
Calyon N.A., Inc. | 146,800,000 | 146,800,000 | ||||||
Credit Suisse First Boston | 87,500,000 | 87,500,000 | ||||||
4.850%, due 05/27/08 | 100,000,000 | 100,000,000 | ||||||
Deutsche Bank AG | 88,000,000 | 88,000,000 | ||||||
Dexia Credit Local | 53,850,000 | 53,846,789 | ||||||
Fortis Bank NV-SA | 132,500,000 | 132,500,000 | ||||||
HSBC Bank USA | 115,000,000 | 115,054,549 | ||||||
Lloyds TSB Bank PLC | 156,000,000 | 156,000,000 | ||||||
5.300%, due 02/22/08 | 59,500,000 | 59,500,000 | ||||||
Mizuho Corporate Bank Ltd. | 92,000,000 | 92,000,000 | ||||||
Norinchukin Bank Ltd. | 125,000,000 | 125,000,000 | ||||||
Royal Bank of Scotland PLC | 109,600,000 | 109,600,000 | ||||||
Svenska Handelsbanken | 135,000,000 | 135,000,000 | ||||||
| 1,811,551,338 |
| 13 |
UBS RMA Money Market Portfolio
Statement of net assets—December 31, 2007 (unaudited)
| Face amount | Value | |||||||
| Certificates of deposit—(concluded) | ||||||||
| Banking-US—3.23% | ||||||||
American Express, Federal Savings Bank | $150,000,000 | $150,000,000 | ||||||
4.940%, due 01/28/08 | 100,000,000 | 100,000,000 | ||||||
Citibank N.A. | 127,500,000 | 127,500,000 | ||||||
State Street Bank & Trust Co. | 140,250,000 | 140,250,000 | ||||||
| 517,750,000 | ||||||||
| Total certificates of deposit (cost—$2,329,301,338) | 2,329,301,338 | |||||||
| Commercial paper(2)—13.15% | ||||||||
| Asset backed-banking—0.25% | ||||||||
Atlantis One Funding | 40,000,000 | 39,965,400 | ||||||
| Asset backed-miscellaneous—2.67% | ||||||||
Old Line Funding Corp. | 7,222,000 | 7,205,449 | ||||||
Thunderbay Funding | 32,406,000 | 32,336,057 | ||||||
5.900%, due 01/16/08 | 160,000,000 | 159,606,667 | ||||||
Variable Funding Capital Corp. | 98,000,000 | 97,766,978 | ||||||
Yorktown Capital LLC | 130,500,000 | 130,388,749 | ||||||
| 427,303,900 | ||||||||
| Asset backed-securities—0.31% | ||||||||
Grampian Funding LLC | 50,000,000 | 49,927,778 | ||||||
| Banking-US—4.12% | ||||||||
Barclays US Funding Corp. | 73,000,000 | 72,533,713 | ||||||
Danske Corp. | 85,000,000 | 84,395,556 | ||||||
ING (US) Funding LLC | 70,000,000 | 69,236,728 | ||||||
4.680%, due 05/27/08 | 100,000,000 | 98,089,000 | ||||||
| 14 |
UBS RMA Money Market Portfolio
Statement of net assets—December 31, 2007 (unaudited)
| Face amount | Value | |||||||
| Commercial paper(2)—(concluded) | ||||||||
| Banking-US—(concluded) | ||||||||
Morgan (JP) Chase & Co. | $214,850,000 | $211,765,649 | ||||||
Nordea N.A., Inc. | 125,000,000 | 124,275,833 | ||||||
| 660,296,479 | ||||||||
| Beverage/bottling—0.32% | ||||||||
Coca-Cola Co. | 51,675,000 | 51,495,745 | ||||||
| Brokerage—2.51% | ||||||||
Lehman Brothers Holdings, Inc. | 155,200,000 | 155,181,678 | ||||||
Morgan Stanley(1) | 152,250,000 | 152,250,000 | ||||||
4.570%, due 01/02/08 | 95,000,000 | 95,000,000 | ||||||
| 402,431,678 | ||||||||
| Consumer products-nondurables—0.36% | ||||||||
Procter & Gamble International Funding SCA | 57,092,000 | 56,987,870 | ||||||
| Finance-noncaptive diversified—1.94% | ||||||||
General Electric Capital Corp. | 129,000,000 | 125,987,313 | ||||||
4.390%, due 08/21/08 | 190,000,000 | 184,601,519 | ||||||
| 310,588,832 | ||||||||
| Pharmaceuticals—0.67% | ||||||||
Pfizer, Inc. | 110,000,000 | 108,005,700 | ||||||
| Total commercial paper (cost—$2,107,003,382) | 2,107,003,382 | |||||||
| Short-term corporate obligations—13.59% | ||||||||
| Asset backed-securities—4.62% | ||||||||
Beta Finance, Inc. | 84,000,000 | 84,001,089 | ||||||
CC (USA), Inc. (Centauri) | 77,500,000 | 77,496,815 | ||||||
| 15 |
UBS RMA Money Market Portfolio
Statement of net assets—December 31, 2007 (unaudited)
| Face amount | Value | |||||||
| Short-term corporate obligations—(continued) | ||||||||
| Asset backed-securities—(concluded) | ||||||||
Cullinan Finance Corp. | $165,000,000 | $164,997,807 | ||||||
5.185%, due 01/10/08(1),(4) | 59,000,000 | 58,999,854 | ||||||
5.400%, due 06/11/08(4) | 70,000,000 | 70,000,000 | ||||||
K2 (USA) LLC | 123,000,000 | 122,998,834 | ||||||
4.360%, due 01/02/08(1),(4) | 36,000,000 | 36,001,299 | ||||||
5.400%, due 06/16/08(4) | 59,000,000 | 59,000,000 | ||||||
Links Finance LLC | 67,500,000 | 67,499,906 | ||||||
| 740,995,604 | ||||||||
| Banking-non-US—6.01% | ||||||||
ANZ National International Ltd. | 100,000,000 | 100,000,000 | ||||||
Bank of Scotland PLC | 173,000,000 | 173,000,000 | ||||||
BNP Paribas | 150,000,000 | 150,000,000 | ||||||
La Caja de Ahorros y Pensiones de Barcelona | 125,000,000 | 125,000,000 | ||||||
National Australia Bank Ltd. | 175,000,000 | 175,000,000 | ||||||
Totta Ireland PLC | 120,000,000 | 120,000,000 | ||||||
Westpac Banking Corp. | 120,000,000 | 120,000,000 | ||||||
| 963,000,000 | ||||||||
| Banking-US—1.32% | ||||||||
Citigroup Funding, Inc. | 82,000,000 | 82,006,822 | ||||||
The Bank of New York Mellon Corp. | 130,000,000 | 130,000,000 | ||||||
| 212,006,822 | ||||||||
| Finance-captive automotive—1.34% | ||||||||
Toyota Motor Credit Corp. | 110,000,000 | 110,000,000 | ||||||
5.213%, due 01/07/08(1) | 104,000,000 | 104,004,594 | ||||||
| 214,004,594 | ||||||||
| 16 |
UBS RMA Money Market Portfolio
Statement of net assets—December 31, 2007 (unaudited)
| Face amount | Value | |||||||
| Short-term corporate obligations—(concluded) | ||||||||
| Finance-noncaptive diversified—0.30% | ||||||||
General Electric Capital Corp. | $48,500,000 | $48,501,535 | ||||||
| Total short-term corporate obligations (cost—$2,178,508,555) | 2,178,508,555 | |||||||
| Repurchase agreements—33.85% | ||||||||
Repurchase agreement dated 12/31/07 with Bank of America, 4.290%, due 01/02/08, collateralized by $69,896,000 Federal Agricultural Mortgage Corp. obligations, zero coupon to 6.865% due 01/30/08 to 08/10/09, $40,356,000 Federal Farm Credit Bank obligations, zero coupon to 5.650% due 01/07/08 to 07/03/17, $362,907,000 Federal Home Loan Bank obligations, zero coupon to 6.625% due 01/07/08 to 07/15/36, $81,571,000 Federal Home Loan Mortgage Corp. obligations, zero coupon to 5.870% due 05/21/09 to 08/21/17, $7,784,000 Federal Home Loan Mortgage Corp. Stripped Interest Payment obligations, zero coupon due 01/15/10, $297,929,000 Federal National Mortgage Association obligations, zero coupon to 7.270% due 02/15/08 to 06/04/31, $251,000 Federal National Mortgage Association Stripped Interest Payment obligations, zero coupon due 03/15/08 to 04/08/08, $185,000 Financing Corp., 10.700% due 10/06/17, $13,097,000 Resolution Funding Co. Interest Strips, zero coupon due 01/15/08 to 10/15/14, $25,295,000 Tennessee Valley Authority obligations, 4.650% to 7.125% due 05/01/30 to 04/01/36 and $1,000 Tennessee Valley Authority Stripped Interest Payment obligations, zero coupon due 11/01/09; (value—$928,200,275); | 910,000,000 | 910,000,000 | ||||||
| 17 |
UBS RMA Money Market Portfolio
Statement of net assets—December 31, 2007 (unaudited)
| Face amount | Value | |||||||
| Repurchase agreements—(continued) | ||||||||
Repurchase agreement dated 12/31/07 with Deutsche Bank Securities, Inc., | $1,140,000,000 | $1,140,000,000 | ||||||
Repurchase agreement dated 12/31/07 with Goldman Sachs & Co., 4.150%, due 01/02/08, collateralized by $1,600,000 Federal Agricultural Mortgage Corp. obligations, 5.400% due 10/14/11, $656,423,000 Federal Home Loan Bank obligations, zero coupon to 6.300% due 01/04/08 to 07/07/28, $291,812,000 Federal Home Loan Mortgage Corp. obligations, zero coupon to 6.040% due 01/03/08 to 11/23/35, $444,452,000 Federal National Mortgage Association obligations, zero coupon to 8.200% due 01/16/08 to 08/06/38 and $31,707,000 Tennessee Valley Authority obligations, 5.375% to 8.250% due 01/15/38 to 04/01/56; (value—$1,433,104,702); proceeds: $1,405,323,931 | 1,405,000,000 | 1,405,000,000 | ||||||
Repurchase agreement dated 12/31/07 with Lehman Brothers, Inc., 4.250%, due 01/02/08, collateralized by $97,355,000 Federal Farm Credit Bank obligations, 4.875% due 02/18/11, $484,655,000 Federal Home Loan Bank obligations, zero coupon to 4.590% due 10/17/08 to 09/18/28, $588,848,000 Federal Home Loan Mortgage Corp. obligations, zero coupon to 5.000% due 06/09/08 to 12/14/18, $173,630,000 Federal National Mortgage Association obligations, 5.625% due 07/15/37 and $755,689,000 Tennessee Valley Authority obligations, 4.375% to 7.125% due 06/15/15 to 07/15/33; (value—$2,009,402,896); proceeds: $1,970,465,139 | 1,970,000,000 | 1,970,000,000 | ||||||
| 18 |
UBS RMA Money Market Portfolio
Statement of net assets—December 31, 2007 (unaudited)
| Face amount | Value | |||||||
| Repurchase agreements—(concluded) | ||||||||
Repurchase agreement dated 12/31/07 with State Street Bank & Trust Co., 0.850%, due 01/02/08, collateralized by $502,471 US Treasury Bonds, 8.125% due 08/15/19; (value—$689,666); | $676,000 | $676,000 | ||||||
| Total repurchase agreements (cost—$5,425,676,000) | 5,425,676,000 | |||||||
| Investments of cash collateral from securities loaned—1.29% | ||||||||
| Number of shares | ||||||||
| Money market funds(5)—1.29% | ||||||||
BlackRock Liquidity Fund Temp Fund Portfolio Institutional Class, | 3,573,451 | 3,573,451 | ||||||
DWS Money Market Series Institutional, | 574,738 | 574,738 | ||||||
UBS Private Money Market Fund LLC, | 202,058,062 | 202,058,062 | ||||||
| Total money market funds and investments of cash collateral from securities loaned (cost—$206,206,251) | 206,206,251 | |||||||
| Total investments (cost—$16,111,423,579 which approximates cost for federal income tax purposes)—100.52% | 16,111,423,579 | |||||||
| Liabilities in excess of other assets—(0.52)% | (83,430,630) | |||||||
| Net assets (applicable to 16,028,070,885 shares of common stock outstanding equivalent to $1.00 per share)—100.00% | $16,027,992,949 | |||||||
(1) | Variable rate securities. The maturity dates reflect earlier of reset dates or stated maturity dates. The interest rates shown are the current rates as of December 31, 2007 and reset periodically. |
(2) | Interest rates shown are the discount rates at date of purchase. |
(3) | Security, or portion thereof, was on loan at December 31, 2007. |
(4) | Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities, which represent 10.51% of net assets as of December 31, 2007, are considered liquid and may be resold in transactions exempt from registration, normally to qualified institutional buyers. |
(5) | Rates shown reflect yield at December 31, 2007. |
(6) | The table below details the Portfolio’s transaction activity in an affiliated issuer for the six months ended December 31, 2007. |
| 19 |
UBS RMA Money Market Portfolio
Statement of net assets—December 31, 2007 (unaudited)
| Security description | Value at 06/30/07 | Purchases during the six months ended 12/31/07 | Sales during the six months ended 12/31/07 | Value at 12/31/07 | Net income earned from affiliate for the six months ended 12/31/07 | |||||
| UBS Private Money Market Fund LLC | $248,155 | $3,644,215,006 | $3,442,405,099 | $202,058,062 | $245,530 |
Issuer breakdown by country of origin
| Percentage of total investments | |||
| United States | 76.7 | % | |
| United Kingdom | 5.0 | ||
Cayman Islands | 4.7 | ||
| Japan | 4.0 | ||
| France | 1.9 | ||
| Australia | 1.8 | ||
| Spain | 1.5 | ||
| Belgium | 1.2 | ||
| Switzerland | 1.2 | ||
| Sweden | 0.8 | ||
| Germany | 0.6 | ||
| New Zealand | 0.6 | ||
| Total | 100.0 | % |
Weighted average maturity—43 days
See accompanying notes to financial statements
| 20 |
UBS RMA U.S. Government Portfolio
Statement of net assets—December 31, 2007 (unaudited)
| Face amount | Value | |||||||
| US government obligations—37.06% | ||||||||
US Treasury Bills(1) | ||||||||
3.945%, due 01/03/08(2) | $35,000,000 | $34,992,329 | ||||||
4.010%, due 01/10/08 | 55,000,000 | 54,944,869 | ||||||
2.200%, due 01/17/08 | 50,000,000 | 49,951,111 | ||||||
2.400%, due 01/17/08 | 38,000,000 | 37,959,467 | ||||||
3.295%, due 02/21/08 | 35,000,000 | 34,836,623 | ||||||
3.111%, due 02/28/08 | 50,000,000 | 49,749,391 | ||||||
3.005%, due 03/20/08 | 50,000,000 | 49,670,285 | ||||||
4.155%, due 03/20/08 | 25,000,000 | 24,772,052 | ||||||
3.516%, due 05/22/08 | 35,000,000 | 34,514,666 | ||||||
3.260%, due 05/29/08 | 30,000,000 | 29,595,217 | ||||||
3.262%, due 06/05/08(2) | 30,000,000 | 29,575,940 | ||||||
3.190%, due 06/12/08(2) | 65,000,000 | 64,061,165 | ||||||
US Treasury Inflation Index Notes (TIPS) | ||||||||
3.625%, due 01/15/08(2) | 103,455,200 | 103,829,480 | ||||||
| Total US government obligations (cost—$598,452,595) | 598,452,595 | |||||||
| Repurchase agreements—62.95% | ||||||||
Repurchase agreement dated 12/31/07 with Bank of America, 0.900%, due 01/02/08, collateralized by $20,768,000 US Treasury Inflation Index Bonds, 2.375% due 01/15/27 and $77,264,000 US Treasury Notes, 3.875% to 4.875% due 08/31/08 to 06/30/09; (value—$102,000,810); proceeds: $100,005,000 | 100,000,000 | 100,000,000 | ||||||
Repurchase agreement dated 12/31/07 with Barclays Bank PLC, 1.500%, due 01/02/08, collateralized by $92,979,000 US Treasury Bonds, 12.000% due 08/15/13; (value—$102,000,752); proceeds: $100,008,333 | 100,000,000 | 100,000,000 | ||||||
Repurchase agreement dated 12/31/07 with Bear Stearns & Co., 1.300%, due 01/02/08, collateralized by $185,575,000 US Treasury Inflation Index Notes, 2.375% due 01/15/17; (value—$204,022,579); proceeds: $200,014,444 | 200,000,000 | 200,000,000 | ||||||
Repurchase agreement dated 12/31/07 with Deutsche Bank Securities, Inc., 1.500%, due 01/02/08, collateralized by $60,547,858 US Treasury Bond Interest Strips, zero coupon due 08/15/21; (value—$32,028,000); proceeds: $31,402,617 | 31,400,000 | 31,400,000 | ||||||
| 21 |
UBS RMA U.S. Government Portfolio
Statement of net assets—December 31, 2007 (unaudited)
| Face amount | Value | |||||||
| Repurchase agreements—(concluded) | ||||||||
Repurchase agreement dated 12/31/07 with Goldman Sachs & Co., 1.100%, due 01/02/08, collateralized by $133,912,000 US Treasury Bonds, 8.000% due 11/15/21; (value—$183,600,033); proceeds: $180,011,000 | $180,000,000 | $180,000,000 | ||||||
Repurchase agreement dated 12/31/07 with Lehman Brothers, Inc., 1.000%, due 01/02/08, collateralized by $201,569,000 US Treasury Notes, 4.000% to 4.500% due 03/15/10 to 11/30/11; (value—$209,102,764); proceeds: $205,011,389 | 205,000,000 | 205,000,000 | ||||||
Repurchase agreement dated 12/31/07 with Merrill Lynch & Co., 1.000%, due 01/02/08, collateralized by $96,659,000 US Treasury Notes, 5.000% to 5.125% due 07/31/08 to 05/15/16; (value—$102,002,568); proceeds: $100,005,556 | 100,000,000 | 100,000,000 | ||||||
Repurchase agreement dated 12/31/07 with Morgan Stanley & Co., 1.300%, due 01/02/08, collateralized by $186,004,000 US Treasury Bond Interest Strips, zero coupon due 05/15/20 to 02/15/21; (value—$102,000,512); proceeds: $100,007,222 | 100,000,000 | 100,000,000 | ||||||
Repurchase agreement dated 12/31/07 with State Street Bank & Trust Co., 0.850%, due 01/02/08, collateralized by $104,062 US Treasury Bonds, 8.125% due 08/15/19; (value—$142,830); proceeds: $140,007 | 140,000 | 140,000 | ||||||
| Total repurchase agreements (cost—$1,016,540,000) | 1,016,540,000 | |||||||
| Investments of cash collateral from securities loaned—0.05% | ||||||||
| Number of shares | ||||||||
| Money market funds(3)—0.05% | ||||||||
AIM Treasury Portfolio, | 889,363 | 889,363 | ||||||
Federated Treasury Obligation Fund, | 104 | 104 | ||||||
| 22 |
UBS RMA U.S. Government Portfolio
Statement of net assets—December 31, 2007 (unaudited)
| Number of shares | Value | ||||||||
| Money market funds(3)—(concluded) | |||||||||
BlackRock Liquidity Fund Treasury Trust Portfolio Institutional Class, | 86 | $86 | |||||||
| Total money market funds and investments of cash collateral from securities loaned (cost—$889,553) | 889,553 | ||||||||
| Total investments (cost—$1,615,882,148 which approximates cost for federal income tax purposes)—100.06% | 1,615,882,148 | ||||||||
| Liabilities in excess of other assets—(0.06)% | (1,000,159 | ) | |||||||
| Net assets (applicable to 1,615,157,267 shares of common stock outstanding equivalent to $1.00 per share)—100.00% | $1,614,881,989 | ||||||||
(1) | Interest rates shown are the discount rates at date of purchase. |
(2) | Security, or portion thereof, was on loan at December 31, 2007. |
(3) | Rates shown reflect yield at December 31, 2007. |
| TIPS | Treasury inflation protected securities (“TIPS”) are debt securities issued by the US Treasury whose principal and/or interest payments are adjusted for inflation, unlike debt securities that make fixed principal and interest payments. The interest rate paid by the TIPS is fixed, while the principal value rises or falls based on changes in a published Consumer Price Index (“CPI”). Thus, if inflation occurs, the principal and interest payments on the TIPS are adjusted accordingly to protect investors from inflationary loss. During a deflationary period, the principal and interest payments decrease, although the TIPS principal amounts will not drop below their face amounts at maturity. In exchange for the inflation protection, the TIPS generally pay lower interest rates than typical US Treasury securities. Only if inflation occurs would TIPS be expected to offer a higher real yield than a conventional Treasury bond of the same maturity. |
Weighted average maturity—26 days
See accompanying notes to financial statements
| 23 |
UBS RMA Tax-Free Fund Inc.
Statement of net assets—December 31, 2007 (unaudited)
| Face amount | Value | |||||||
| Municipal bonds and notes—92.16% | ||||||||
| Alabama—0.78% | ||||||||
Birmingham Medical Clinic Board Revenue, | $16,500,000 | $16,500,000 | ||||||
Huntsville (JP Morgan PUTTERs, Series 1886) | 7,335,000 | 7,335,000 | ||||||
Jefferson County Limited Obligation School | 10,645,000 | 10,645,000 | ||||||
Mobile Industrial Development Board, Dock and | 11,265,000 | 11,265,000 | ||||||
Montgomery Industrial Development Board Pollution Control & Solid Waste Disposal Refunding (General Electric Co. Project), | 3,350,000 | 3,350,000 | ||||||
| 49,095,000 | ||||||||
| Alaska—1.19% | ||||||||
Alaska Housing Finance Corp. (General Housing), | 16,995,000 | 16,995,000 | ||||||
Valdez Marine Terminal Revenue Refunding | 3,500,000 | 3,500,000 | ||||||
Series A, | 3,500,000 | 3,500,000 | ||||||
Series B, | 34,200,000 | 34,200,000 | ||||||
Series C, | 17,200,000 | 17,200,000 | ||||||
| 75,395,000 | ||||||||
| Arizona—1.68% | ||||||||
Apache County Industrial Development Authority | 11,200,000 | 11,200,000 | ||||||
Series C, | 35,000,000 | 35,000,000 | ||||||
| 24 |
UBS RMA Tax-Free Fund Inc.
Statement of net assets—December 31, 2007 (unaudited)
| Face amount | Value | |||||||
| Municipal bonds and notes—(continued) | ||||||||
| Arizona—(concluded) | ||||||||
Arizona Board of Regents Certificates of Participation (Morgan Stanley Floater Certificates, Series 1918) (AMBAC Insured), | $16,690,000 | $16,690,000 | ||||||
Phoenix Civic Improvement Corp. Excise Tax Revenue Refunding (Senior Lien) (Bank of America Austin Certificates, Series 2007-161), | 9,860,000 | 9,860,000 | ||||||
Pima County Industrial Development Authority | 8,200,000 | 8,200,000 | ||||||
Salt River Project Agricultural Improvement & | 16,325,000 | 16,325,000 | ||||||
Series 2046, | 8,800,000 | 8,800,000 | ||||||
| 106,075,000 | ||||||||
| California—1.68% | ||||||||
California Department of Water Resources Power | 35,840,000 | 35,840,000 | ||||||
California State Revenue Anticipation Notes, | 70,000,000 | 70,214,133 | ||||||
| 106,054,133 | ||||||||
| Colorado—1.13% | ||||||||
Aurora Water Improvement Revenue (JP Morgan PUTTERs, Series 1944) (AMBAC Insured), | 8,000,000 | 8,000,000 | ||||||
Colorado Educational & Cultural Facilities | 1,375,000 | 1,375,000 | ||||||
Series B-3, | 3,960,000 | 3,960,000 | ||||||
| 25 |
UBS RMA Tax-Free Fund Inc.
Statement of net assets—December 31, 2007 (unaudited)
| Face amount | Value | |||||||
| Municipal bonds and notes—(continued) | ||||||||
| Colorado—(concluded) | ||||||||
Series B-4, | $6,315,000 | $6,315,000 | ||||||
Series C-6, | 3,000,000 | 3,000,000 | ||||||
El Paso County Revenue (YMCA Pikes Peak Region Project), | 11,265,000 | 11,265,000 | ||||||
Erie Water Enterprise Revenue (Wachovia Bank Merlots), Series H12 (FSA Insured), | 10,700,000 | 10,700,000 | ||||||
Pitkin County Industrial Development Revenue | 5,600,000 | 5,600,000 | ||||||
University of North Colorado Revenue Refunding | 21,330,000 | 21,330,000 | ||||||
| 71,545,000 | ||||||||
| Connecticut—0.13% | ||||||||
Connecticut State Health & Educational Facilities | 8,150,000 | 8,150,000 | ||||||
| Delaware—0.30% | ||||||||
University of Delaware Revenue, | 4,150,000 | 4,150,000 | ||||||
Series A, | 13,520,000 | 13,520,000 | ||||||
Series B, | 1,435,000 | 1,435,000 | ||||||
| 19,105,000 | ||||||||
| District of Columbia—0.74% | ||||||||
District of Columbia Revenue (American College of Cardiology), | 13,200,000 | 13,200,000 | ||||||
District of Columbia Revenue (Citigroup Eagle Class A Certificates 20070121) (MBIA Insured), | 15,515,000 | 15,515,000 | ||||||
| 26 |
UBS RMA Tax-Free Fund Inc.
Statement of net assets—December 31, 2007 (unaudited)
| Face amount | Value | |||||||
| Municipal bonds and notes—(continued) | ||||||||
| District of Columbia—(concluded) | ||||||||
District of Columbia Revenue | $8,400,000 | $8,400,000 | ||||||
District of Columbia Revenue (St. Patrick’s Episcopal), | 9,800,000 | 9,800,000 | ||||||
| 46,915,000 | ||||||||
| Florida—4.76% | ||||||||
Alachua County Health Facilities Authority Health Facilities Revenue Installment (Shands Teaching Hospital), Series A, | 4,900,000 | 4,900,000 | ||||||
Brevard County School Board Certificates of Participation, Series C (Bank of America Austin Certificates, Series 2007-138) (AMBAC Insured), | 13,485,000 | 13,485,000 | ||||||
Broward County School District Refunding, Series A, | 5,810,000 | 5,824,286 | ||||||
Collier County Water & Sewer (ABN AMRO MuniTops Certificates Trust, Series 2006-82) (MBIA Insured), | 14,290,000 | 14,290,000 | ||||||
Florida Department of Environmental Protection Preservation Revenue (Florida Forever), Series A (MBIA Insured), | 5,000,000 | 5,030,173 | ||||||
Florida Higher Educational Facilities Financing Authority Revenue (Ringling School of Art), | 21,750,000 | 21,750,000 | ||||||
Florida Higher Educational Facilities Financing Authority Revenue (St. Thomas University Project), 3.740% , VRD | 8,435,000 | 8,435,000 | ||||||
Florida Turnpike Authority Turnpike Revenue (Citigroup ROCS, Series RR-II-R-11187) (MBIA Insured), | 5,455,000 | 5,455,000 | ||||||
Highlands County Health Facilities Authority Revenue (Adventist Health Hospital), Series A, | 16,000,000 | 16,000,000 | ||||||
| 27 |
UBS RMA Tax-Free Fund Inc.
Statement of net assets—December 31, 2007 (unaudited)
| Face amount | Value | |||||||
| Municipal bonds and notes—(continued) | ||||||||
| Florida—(continued) | ||||||||
Jacksonville Electric Authority Revenue (Electric Systems), Series B, | $11,000,000 | $11,000,000 | ||||||
Lakeland Educational Facilities Revenue (Florida Southern College of Lakeland Project), | 12,275,000 | 12,275,000 | ||||||
Miami-Dade County Special Obligation Capital Asset Acquisition, Series A (Bank of America Austin Certificates, Series 2007-152) (AMBAC Insured), | 13,155,000 | 13,155,000 | ||||||
Nassau County Pollution Control Revenue (ITT Rayonier, Inc. Project), | 12,900,000 | 12,900,000 | ||||||
North Broward Hospital District Revenue Refunding, | 18,980,000 | 18,980,000 | ||||||
Orange County Health Facilities Authority Revenue | 11,600,000 | 11,600,000 | ||||||
Orange County Industrial Development Authority Educational Facilities Revenue (UCF Hospitality School Student Housing Foundation, Inc.), | 9,200,000 | 9,200,000 | ||||||
Orange County Industrial Development Authority Industrial Development Revenue (Catholic Charities Center), | 5,000,000 | 5,000,000 | ||||||
Orlando & Orange County Expressway Authority Expressway Revenue (Citigroup Eagle Class A Certificates 20070081) (FSA Insured), | 20,000,000 | 20,000,000 | ||||||
Orlando & Orange County Expressway Authority Expressway Revenue (Citigroup Eagle Class A Certificates 20070107) (FSA Insured), | 45,090,000 | 45,090,000 | ||||||
Orlando & Orange County Expressway Authority Expressway Revenue (JP Morgan PUTTERs, Series 2285) (FSA Insured), | 11,380,000 | 11,380,000 | ||||||
| 28 |
UBS RMA Tax-Free Fund Inc.
Statement of net assets—December 31, 2007 (unaudited)
| Face amount | Value | |||||||
| Municipal bonds and notes—(continued) | ||||||||
| Florida—(concluded) | ||||||||
Palm Beach County Health Facilities Authority Revenue (Bethesda Healthcare System Project), | $15,550,000 | $15,550,000 | ||||||
Palm Beach County Industrial Development Revenue (Children’s Home Society), | 1,745,000 | 1,745,000 | ||||||
Palm Beach County School Board Certificates of Participation (JP Morgan PUTTERs, Series 2089) (FSA Insured), | 11,545,000 | 11,545,000 | ||||||
Pinellas County Health Facilities Authority Revenue Refunding (Hospital Facilities-Bayfront Projects), | 4,100,000 | 4,100,000 | ||||||
Pinellas County Health Facilities Authority Revenue Refunding (Pooled Hospital Loan Program) (AMBAC Insured), | 2,600,000 | 2,600,000 | ||||||
| 301,289,459 | ||||||||
| Georgia—1.73% | ||||||||
Athens-Clarke County Unified Government Development Authority Revenue (University of Georgia Athletic Association Project), | 1,900,000 | 1,900,000 | ||||||
Atlanta Airport Passenger Facilities Charge Revenue (Citigroup Eagle Class A Certificates 720053030) (FSA Insured), | 28,985,000 | 28,985,000 | ||||||
Atlanta Water & Wastewater Revenue (Citigroup Eagle Class A Certificates 20060094) (FSA Insured), | 24,750,000 | 24,750,000 | ||||||
De Kalb County Development Authority Revenue (Robert W. Woodruff Arts Center), | 2,175,000 | 2,175,000 | ||||||
De Kalb Private Hospital Authority Revenue Anticipation Certificates (Egleston Children’s Health), Series B, | 3,250,000 | 3,250,000 | ||||||
| 29 |
UBS RMA Tax-Free Fund Inc.
Statement of net assets—December 31, 2007 (unaudited)
| Face amount | Value | |||||||
| Municipal bonds and notes—(continued) | ||||||||
| Georgia—(concluded) | ||||||||
Fulton County Development Authority Revenue | $7,500,000 | $7,500,000 | ||||||
Fulton County Development Authority Revenue | 8,000,000 | 8,000,000 | ||||||
Fulton County Development Authority Revenue | 1,415,000 | 1,415,000 | ||||||
Macon-Bibb County Hospital Authority Revenue Anticipation Certificates (Central Georgia Health), | 17,305,000 | 17,305,000 | ||||||
Municipal Electric Authority of Georgia (Project One Subordinated), Series D (FSA Insured), | 14,450,000 | 14,450,000 | ||||||
| 109,730,000 | ||||||||
| Hawaii—1.05% | ||||||||
Hawaii (ABN AMRO MuniTops Certificates Trust, Series 2002-34) (FSA Insured), | 10,420,000 | 10,420,000 | ||||||
Hawaii (Wachovia Bank Merlots), Series BR04 (AMBAC Insured), | 11,105,000 | 11,105,000 | ||||||
Honolulu City & County Wastewater Systems Revenue (Citigroup ROCS, Series RR-II-R-12194) (MBIA Insured), | 9,900,000 | 9,900,000 | ||||||
Honolulu City & County Wastewater Systems Revenue (JP Morgan PUTTERs, Series 1997) | 9,400,000 | 9,400,000 | ||||||
Honolulu City & County Wastewater Systems Revenue (Morgan Stanley Floater Certificates, Series 1976) (MBIA Insured), | 10,305,000 | 10,305,000 | ||||||
Honolulu City and County, Series A (ABN AMRO MuniTops Certificates Trust, Series 2004-16) (MBIA Insured), | 15,000,000 | 15,000,000 | ||||||
| 66,130,000 | ||||||||
| 30 |
UBS RMA Tax-Free Fund Inc.
Statement of net assets—December 31, 2007 (unaudited)
| Face amount | Value | |||||||
| Municipal bonds and notes—(continued) | ||||||||
| Idaho—0.33% | ||||||||
Idaho Health Facilities Authority Revenue (St. Luke’s Medical Center) (FSA Insured), | $13,990,000 | $13,990,000 | ||||||
Power County Pollution Control Revenue | 6,730,000 | 6,730,000 | ||||||
| 20,720,000 | ||||||||
| Illinois—10.07% | ||||||||
Chicago (ABN AMRO MuniTops Certificates Trust, Series 2001-31) (FGIC Insured), | 14,285,000 | 14,285,000 | ||||||
Chicago Board of Education (ABN AMRO MuniTops Certificates Trust, Series 2002-4) (FSA Insured), | 14,225,000 | 14,225,000 | ||||||
Chicago Board of Education (Dedicated), | 12,495,000 | 12,495,000 | ||||||
Series B (Bank of America Austin Certificates, Series 2007-177) (FSA Insured), | 17,600,000 | 17,600,000 | ||||||
Series D-1 (CIFG Insured), | 3,600,000 | 3,600,000 | ||||||
Series D-2 (CIFG Insured), | 39,250,000 | 39,250,000 | ||||||
Chicago Board of Education (Morgan Stanley Floater Certificates), Series 1732 (FSA Insured), | 10,577,000 | 10,577,000 | ||||||
Series 1733 (FSA Insured), | 15,715,000 | 15,715,000 | ||||||
Chicago Board of Education, | 23,590,000 | 23,590,000 | ||||||
Series D (FSA Insured), | 17,835,000 | 17,835,000 | ||||||
Chicago (Citigroup Eagle Class A Certificates 20070059) (FGIC Insured), | 17,500,000 | 17,500,000 | ||||||
| 31 |
UBS RMA Tax-Free Fund Inc.
Statement of net assets—December 31, 2007 (unaudited)
| Face amount | Value | |||||||
| Municipal bonds and notes—(continued) | ||||||||
| Illinois—(continued) | ||||||||
Chicago Metropolitan Water Reclamation District Refunding, Series C (Bank of America Austin Certificates, Series 2007-2015), | $14,605,000 | $14,605,000 | ||||||
Chicago O’Hare International Airport Revenue, Second Lien Series C, | 53,050,000 | 53,050,000 | ||||||
Chicago O’Hare International Airport Revenue, Third Lien Series C (CIFG Insured), | 52,900,000 | 52,900,000 | ||||||
Chicago Project, Series B-1 (FSA Insured), | 41,950,000 | 41,950,000 | ||||||
Chicago Refunding, Series F (MBIA Insured), | 13,000,000 | 13,000,000 | ||||||
Cook County (Capital Improvement), | 10,000,000 | 10,000,000 | ||||||
Cook County School District No. 036 Winnetka | 9,470,000 | 9,470,000 | ||||||
Illinois Development Finance Authority Multi-Family | 7,390,000 | 7,390,000 | ||||||
Illinois Development Finance Authority Revenue | 11,400,000 | 11,400,000 | ||||||
Illinois Development Finance Authority Revenue | 10,000,000 | 10,000,000 | ||||||
Illinois Development Finance Authority Revenue | 14,100,000 | 14,100,000 | ||||||
Illinois Development Finance Authority Revenue | 4,900,000 | 4,900,000 | ||||||
| 32 |
UBS RMA Tax-Free Fund Inc.
Statement of net assets—December 31, 2007 (unaudited)
| Face amount | Value | |||||||
| Municipal bonds and notes—(continued) | ||||||||
| Illinois—(continued) | ||||||||
Illinois Finance Authority Revenue (Northwestern Memorial Hospital), Series A-4, | $20,000,000 | $20,000,000 | ||||||
Illinois Health Facilities Authority Revenue | 26,460,000 | 26,460,000 | ||||||
Illinois Municipal Electric Agency Power Supply | 10,800,000 | 10,800,000 | ||||||
Series 2128 (FGIC Insured), | 22,720,000 | 22,720,000 | ||||||
Series 2144 (FGIC Insured), | 10,095,000 | 10,095,000 | ||||||
Illinois Toll & Highway Authority Priority | 21,675,000 | 21,675,000 | ||||||
Illinois Toll & Highway Authority Revenue | 17,755,000 | 17,755,000 | ||||||
Series 1355 (FSA Insured), | 11,260,000 | 11,260,000 | ||||||
Kane County Community United School District No. 304 Geneva, Series A (Bank of America Austin Certificates, Series 2007-2010) (FSA Insured), | 9,955,000 | 9,955,000 | ||||||
Lemont Township High School District (ABN | 29,010,000 | 29,010,000 | ||||||
Springfield Electric Revenue (JP Morgan PUTTERs), Series 1314 (MBIA Insured), | 7,375,000 | 7,375,000 | ||||||
Series 1883 (MBIA Insured), | 10,450,000 | 10,450,000 | ||||||
Western Springs Special Assessment | 9,674,000 | 9,674,000 | ||||||
| 636,666,000 | ||||||||
| 33 |
UBS RMA Tax-Free Fund Inc.
Statement of net assets—December 31, 2007 (unaudited)
| Face amount | Value | |||||||
| Municipal bonds and notes—(continued) | ||||||||
| Indiana—2.97% | ||||||||
Indiana Bond Bank Revenue Midyear Funding | $20,000,000 | $20,055,489 | ||||||
Indiana Development Finance Authority Revenue | 4,000,000 | 4,000,000 | ||||||
Indiana Finance Authority Environmental | 10,000,000 | 10,000,000 | ||||||
Indiana Finance Authority Highway Revenue | 10,000,000 | 10,000,000 | ||||||
Indiana Health Facility Financing Authority, Hospital | 12,215,000 | 12,215,000 | ||||||
Indiana Municipal Power Agency Power Supply | 5,150,000 | 5,150,000 | ||||||
Series RR-II-R-11234 (MBIA Insured), | 31,665,000 | 31,665,000 | ||||||
Indiana Municipal Power Agency Power Supply | 10,155,000 | 10,155,000 | ||||||
Indianapolis Local Public Improvement Bond | 10,000,000 | 10,000,680 | ||||||
Series F-2, | 15,000,000 | 15,001,379 | ||||||
Indianapolis Local Public Improvement Bond Bank | 2,000,000 | 2,000,000 | ||||||
Purdue University Revenue (Student Facilities | 12,150,000 | 12,150,000 | ||||||
| 34 |
UBS RMA Tax-Free Fund Inc.
Statement of net assets—December 31, 2007 (unaudited)
| Face amount | Value | |||||||
| Municipal bonds and notes—(continued) | ||||||||
| Indiana—(concluded) | ||||||||
Purdue University Revenue (Student Fee), Series V, | $24,515,000 | $24,515,000 | ||||||
Reid Hospital & Health Care Services, Inc. | 4,650,000 | 4,650,000 | ||||||
South Bend Community School Building Corp. | 15,780,000 | 16,258,923 | ||||||
| 187,816,471 | ||||||||
| Iowa—0.29% | ||||||||
Eclipse Funding Trust (Solar Eclipse), | 18,645,000 | 18,645,000 | ||||||
| Kansas—0.41% | ||||||||
Kansas Development Finance Authority Revenue | 9,125,000 | 9,125,000 | ||||||
Leawood Temporary Notes, Series 1, | 16,975,000 | 17,020,636 | ||||||
| 26,145,636 | ||||||||
| Kentucky—1.76% | ||||||||
Breckinridge County Lease Program Revenue | 28,050,000 | 28,050,000 | ||||||
Christian County Association of Leasing Trust Lease Program, Series B, | 27,000,000 | 27,000,000 | ||||||
Kentucky Public Energy Authority Gas Supply Revenue, Series A, | 29,297,000 | 29,297,000 | ||||||
Pendleton County Multi-County Lease Revenue | 17,000,000 | 17,000,000 | ||||||
Shelby County Lease Revenue, Series A, | 9,690,000 | 9,690,000 | ||||||
| 111,037,000 | ||||||||
| 35 |
UBS RMA Tax-Free Fund Inc.
Statement of net assets—December 31, 2007 (unaudited)
| Face amount | Value | |||||||
| Municipal bonds and notes—(continued) | ||||||||
| Louisiana—0.62% | ||||||||
Louisiana Public Facilities Authority Revenue (Citigroup Eagle Class A Certificates 20070056) (MBIA Insured), | $15,345,000 | $15,345,000 | ||||||
Louisiana Public Facilities Authority Revenue (Diocese Houma-Thibodaux Project), | 7,800,000 | 7,800,000 | ||||||
South Louisiana Port Commission Marine Terminal Facilities Revenue Refunding | 16,100,000 | 16,100,000 | ||||||
| 39,245,000 | ||||||||
| Maryland—1.39% | ||||||||
Baltimore Industrial Development Authority Revenue (Baltimore Capital Acquisition), | 19,700,000 | 19,700,000 | ||||||
Maryland Health & Higher Educational Facilities Authority Revenue (Beth Tfiloh Dahan Community School, Inc.), | 5,000,000 | 5,000,000 | ||||||
Maryland Health & Higher Educational Facilities Authority Revenue (Goucher College), | 12,405,000 | 12,405,000 | ||||||
Maryland Health & Higher Educational Facilities Authority Revenue (Pooled Loan Program), | 43,575,000 | 43,575,000 | ||||||
Series D, | 4,090,000 | 4,090,000 | ||||||
Maryland State & Local Facilities Lien, Second Series (Citigroup ROCS, Series RR-II-R-11162), | 3,200,000 | 3,200,000 | ||||||
| 87,970,000 | ||||||||
| Massachusetts—9.71% | ||||||||
Massachusetts Bay Transportation Authority Revenue Assessment, Series A (Bank of America Macon Certificates, Series 2007-331), | 27,980,000 | 27,980,000 | ||||||
Massachusetts (Central Artery), Series A, | 36,500,000 | 36,500,000 | ||||||
| 36 |
UBS RMA Tax-Free Fund Inc.
Statement of net assets—December 31, 2007 (unaudited)
| Face amount | Value | |||||||
| Municipal bonds and notes—(continued) | ||||||||
| Massachusetts—(continued) | ||||||||
Massachusetts Development Finance Agency Revenue (Eaglebrook School), | $12,660,000 | $12,660,000 | ||||||
Massachusetts Development Finance Agency Revenue (Harvard University), | 28,900,000 | 28,900,000 | ||||||
Series HH, | 30,000,000 | 30,000,000 | ||||||
Massachusetts Development Finance Agency Revenue (Smith College), | 25,900,000 | 25,900,000 | ||||||
Massachusetts Health & Educational Facilities Authority Revenue (Children’s Hospital), | 5,590,000 | 5,590,000 | ||||||
Massachusetts Health & Educational Facilities Authority Revenue (Harvard University), | 10,950,000 | 10,950,000 | ||||||
Series GG-1, | 40,000,000 | 40,000,000 | ||||||
Series R, | 1,800,000 | 1,800,000 | ||||||
Massachusetts Health & Educational Facilities Authority Revenue (Massachusetts Institute of Technology), Series J-1, | 18,300,000 | 18,300,000 | ||||||
Massachusetts School Building Authority Dedicated Sales Tax Revenue (Citigroup ROCS, Series RR-II-R-12193) (FSA Insured), | 13,115,000 | 13,115,000 | ||||||
Massachusetts State (Morgan Stanley Floater Certificates, Series 1798) (CIFG Insured), | 19,995,000 | 19,995,000 | ||||||
Massachusetts State Refunding, | 97,550,000 | 97,550,000 | ||||||
Series B, | 40,000,000 | 40,000,000 | ||||||
Series C, | 66,300,000 | 66,300,000 | ||||||
| 37 |
UBS RMA Tax-Free Fund Inc.
Statement of net assets—December 31, 2007 (unaudited)
| Face amount | Value | |||||||
| Municipal bonds and notes—(continued) | ||||||||
| Massachusetts—(concluded) | ||||||||
Massachusetts (Wachovia Bank Merlots), Series B-06 (FGIC Insured), | $5,985,000 | $5,985,000 | ||||||
Massachusetts Water Resources Authority Refunding (General Multi-Modal), Subordinated, | 24,850,000 | 24,850,000 | ||||||
Series C (FGIC Insured), | 28,800,000 | 28,800,000 | ||||||
Massachusetts Water Resources Authority, Series A (FGIC Insured), | 23,755,000 | 23,755,000 | ||||||
Montachusett Regional Transit Authority Revenue Anticipation Notes, | 14,500,000 | 14,518,749 | ||||||
Route 3 North Transport Improvements Association, Lease Revenue (Demand Obligation Bond), Series B (AMBAC Insured), | 22,800,000 | 22,800,000 | ||||||
University of Massachusetts Building Authority Project Revenue Refunding, Series 1 (AMBAC Insured), | 17,770,000 | 17,770,000 | ||||||
| 614,018,749 | ||||||||
| Michigan—0.92% | ||||||||
Allendale Public School District (Morgan Stanley Floater Certificates, Series 1937) (FSA Insured), | 5,265,000 | 5,265,000 | ||||||
Detroit School District (ABN AMRO MuniTops Certificates Trust, Series 2002-29) (FGIC Insured), | 7,000,000 | 7,000,000 | ||||||
Detroit Water Supply Systems (Citigroup ROCS, Series RR-II-R-11172) (FSA Insured), | 7,500,000 | 7,500,000 | ||||||
Kent Hospital Finance Authority Revenue Refunding (Spectrum Health), Series B-1 (FGIC Insured), | 10,550,000 | 10,550,000 | ||||||
| 38 |
UBS RMA Tax-Free Fund Inc.
Statement of net assets—December 31, 2007 (unaudited)
| Face amount | Value | |||||||
| Municipal bonds and notes—(continued) | ||||||||
| Michigan—(concluded) | ||||||||
Michigan Building Authority Revenue (Facilities Program), Series I, | $11,000,000 | $11,000,000 | ||||||
Michigan Hospital Finance Authority Revenue (Ascension), Series B3, | 11,700,000 | 11,700,000 | ||||||
University of Michigan Revenues (Hospital), Series A, | 5,000,000 | 5,000,000 | ||||||
| 58,015,000 | ||||||||
| Minnesota—0.39% | ||||||||
Midwest Consortium of Municipal Utilities Revenue (Draw Down-Association Financing Program), Series B, | 11,625,000 | 11,625,000 | ||||||
Minnesota School Districts Tax & AID Anticipation Borrowing Program Certificates (AID Anticipation Certificates), | 13,000,000 | 13,070,669 | ||||||
| 24,695,669 | ||||||||
| Mississippi—0.22% | ||||||||
Jackson County Port Facilities Revenue Refunding (Chevron USA, Inc. Project), | 4,000,000 | 4,000,000 | ||||||
Mississippi Business Finance Corp. Gulf Opportunity Zone (Chevron USA, Inc. Project), Series A, | 10,000,000 | 10,000,000 | ||||||
| 14,000,000 | ||||||||
| Missouri—1.47% | ||||||||
Curators University of Missouri Systems Facilities Revenue, Series B, | 3,200,000 | 3,200,000 | ||||||
Jackson County Special Obligation (JP Morgan PUTTERs, Series 1440) (AMBAC Insured), | 10,400,000 | 10,400,000 | ||||||
Missouri Development Finance Board Cultural Facilities Revenue (Nelson Gallery Funding), Series B (MBIA Insured), | 3,300,000 | 3,300,000 | ||||||
| 39 |
UBS RMA Tax-Free Fund Inc.
Statement of net assets—December 31, 2007 (unaudited)
| Face amount | Value | |||||||
| Municipal bonds and notes—(continued) | ||||||||
| Missouri—(concluded) | ||||||||
Missouri Health & Educational Facilities Authority Educational Facilities Revenue (JP Morgan PUTTERs, Series 2051), | $21,065,000 | $21,065,000 | ||||||
Missouri Health & Educational Facilities Authority Educational Facilities Revenue (Washington University), | 12,900,000 | 12,900,000 | ||||||
Series B, | 10,500,000 | 10,500,000 | ||||||
Missouri Health & Educational Facilities Authority Revenue (Washington University), Series A, | 9,000,000 | 9,000,000 | ||||||
St. Louis Airport Revenue Refunding (JP Morgan PUTTERs, Series 2124) (FSA Insured), | 10,355,000 | 10,355,000 | ||||||
University of Missouri University Revenues (Systems Facilities), | 6,365,000 | 6,365,000 | ||||||
Series B, | 5,800,000 | 5,800,000 | ||||||
| 92,885,000 | ||||||||
| Montana—0.34% | ||||||||
Montana Facility Finance Authority Revenue (Sisters of Charity Health Systems), | 21,810,000 | 21,810,000 | ||||||
| Nebraska—0.37% | ||||||||
Lancaster County Hospital Authority Health Facilities Revenue (Immanuel Health Systems), Series A, | 1,400,000 | 1,400,000 | ||||||
Omaha Public Power District Electric Revenue Sub-Systems, Series AA (Bank of America Austin Certificates, Series 2007-130) (FGIC Insured), | 17,000,000 | 17,000,000 | ||||||
Sarpy County Hospital Authority No. 1 Health Facilities Revenue (Immanuel Health Systems), Series B, | 4,945,000 | 4,945,000 | ||||||
| 23,345,000 | ||||||||
| 40 |
UBS RMA Tax-Free Fund Inc.
Statement of net assets—December 31, 2007 (unaudited)
| Face amount | Value | |||||||
| Municipal bonds and notes—(continued) | ||||||||
| Nevada—0.38% | ||||||||
Clark County School District (JP Morgan PUTTERs, Series 1599) (AMBAC Insured), | $9,370,000 | $9,370,000 | ||||||
Clark County School District (Wachovia Bank Merlots), Series C16 (FGIC Insured), | 6,990,000 | 6,990,000 | ||||||
Director Department of Business & Industry (Nevada Cancer Institute Project), | 7,600,000 | 7,600,000 | ||||||
| 23,960,000 | ||||||||
| New Hampshire—0.62% | ||||||||
New Hampshire Business Finance Authority Resource Recovery Revenue Refunding (Wheelabrator Technologies, Inc.), Series A, | 13,800,000 | 13,800,000 | ||||||
New Hampshire Health & Education Facilities Authority Revenue (Dartmouth College Issue), | 25,300,000 | 25,300,000 | ||||||
| 39,100,000 | ||||||||
| New Jersey—0.71% | ||||||||
New Jersey Tax and Revenue Anticipation Notes, | 45,000,000 | 45,187,803 | ||||||
| New Mexico—0.12% | ||||||||
Hurley Pollution Control Revenue (Updates-Kennecott Santa Fe), | 7,790,000 | 7,790,000 | ||||||
| New York—0.94% | ||||||||
Metropolitan Transportation Authority Dedicated Tax Fund, Series D-1 (AMBAC Insured), | 30,000,000 | 30,000,000 | ||||||
New York City Municipal Finance Authority Water & Sewer Systems Revenue (Citigroup Eagle Class A Certificates 20070112), | 11,800,000 | 11,800,000 | ||||||
New York City Municipal Water Finance Authority Water & Sewer Revenue (Citigroup ROCS, Series RR-II-R-12192), | 17,370,000 | 17,370,000 | ||||||
| 59,170,000 | ||||||||
| 41 |
UBS RMA Tax-Free Fund Inc.
Statement of net assets—December 31, 2007 (unaudited)
| Face amount | Value | |||||||
| Municipal bonds and notes—(continued) | ||||||||
| North Carolina—7.13% | ||||||||
Charlotte-Mecklenburg Hospital Authority Health Care Systems Revenue (Carolinas Healthcare Systems), Series A (Bank of America Austin Certificates, Series 2007-1006), | $18,750,000 | $18,750,000 | ||||||
Charlotte-Mecklenburg Hospital Authority Health Care Systems Revenue (Carolinas), Series E (FSA Insured), | 24,500,000 | 24,500,000 | ||||||
Charlotte-Mecklenburg Hospital Authority Health Care Systems Revenue Refunding (Carolinas Healthcare), | 6,800,000 | 6,800,000 | ||||||
Series C (AMBAC Insured), | 31,985,000 | 31,985,000 | ||||||
Series D, | 16,125,000 | 16,125,000 | ||||||
Charlotte Water & Sewer Systems Revenue, Series B, | 26,600,000 | 26,600,000 | ||||||
Charlotte Water & Sewer System Revenue Refunding, Series C, | 67,975,000 | 67,975,000 | ||||||
Durham County Industrial Facilities & Pollution Control Financing Authority Revenue (Research Triangle), | 10,000,000 | 10,000,000 | ||||||
Mecklenburg County Certificates of Participation, Series A, | 23,100,000 | 23,100,000 | ||||||
North Carolina Capital Facilities Finance Agency Educational Facilities Revenue (Wake Forest University), Series B, | 4,015,000 | 4,015,000 | ||||||
North Carolina Medical Care Commission Health | 17,200,000 | 17,200,000 | ||||||
North Carolina Medical Care Commission Health | 12,600,000 | 12,600,000 | ||||||
| 42 |
UBS RMA Tax-Free Fund Inc.
Statement of net assets—December 31, 2007 (unaudited)
| Face amount | Value | |||||||
| Municipal bonds and notes—(continued) | ||||||||
| North Carolina—(concluded) | ||||||||
North Carolina Medical Care Commission Hospital | $16,550,000 | $16,550,000 | ||||||
North Carolina (Morgan Stanley Floater Certificates, | 7,425,000 | 7,425,000 | ||||||
North Carolina Refunding, Series C, | 21,050,000 | 21,050,000 | ||||||
Union County, | 81,545,000 | 81,545,000 | ||||||
Series B, | 19,000,000 | 19,000,000 | ||||||
Series C, | 15,900,000 | 15,900,000 | ||||||
University of North Carolina Hospital Chapel Hill | 20,000,000 | 20,000,000 | ||||||
Wake County, Series A, | 10,000,000 | 10,000,000 | ||||||
| 451,120,000 | ||||||||
| Ohio—4.31% | ||||||||
Butler County Capital Funding Revenue (CCAO | 10,000,000 | 10,000,000 | ||||||
Centerville Health Care Revenue (Bethany Lutheran | 11,000,000 | 11,000,000 | ||||||
Cleveland-Cuyahoga County Port Authority | 30,000,000 | 30,000,000 | ||||||
Cleveland-Cuyahoga County Port Authority Revenue (Special Buildings 1&3 LLC), | 20,000,000 | 20,000,000 | ||||||
Cleveland Waterworks Revenue (Citigroup Eagle | 14,850,000 | 14,850,000 | ||||||
Columbus Sewer Revenue Refunding, | 18,900,000 | 18,900,000 | ||||||
Franklin County Hospital Revenue Refunding and | 28,710,000 | 28,710,000 | ||||||
| 43 |
UBS RMA Tax-Free Fund Inc.
Statement of net assets—December 31, 2007 (unaudited)
| Face amount | Value | |||||||
| Municipal bonds and notes—(continued) | ||||||||
| Ohio—(concluded) | ||||||||
Hamilton County Health Care Facilities Revenue | $6,190,000 | $6,190,000 | ||||||
Ohio Air Quality Development Authority Revenue | 6,700,000 | 6,700,000 | ||||||
Ohio Air Quality Development Authority Revenue | 14,200,000 | 14,200,000 | ||||||
Ohio (Common Schools), Series D, | 42,700,000 | 42,700,000 | ||||||
Ohio Water Development Authority Pollution | 11,310,000 | 11,310,000 | ||||||
Ohio Water Development Authority Pollution | 57,860,000 | 57,860,000 | ||||||
| 272,420,000 | ||||||||
| Oklahoma—0.91% | ||||||||
Oklahoma Industrial Authority Revenue Refunding | 6,440,000 | 6,440,000 | ||||||
Oklahoma Turnpike Authority Revenue Refunding, | 14,500,000 | 14,500,000 | ||||||
Series D (XLCA Insured), | 11,600,000 | 11,600,000 | ||||||
Series E (XLCA Insured), | 25,000,000 | 25,000,000 | ||||||
| 57,540,000 | ||||||||
| Oregon—0.31% | ||||||||
Klamath Falls Electric Revenue Refunding (Senior | 9,150,000 | 9,602,684 | ||||||
Oregon Tax Anticipation Notes, Series A, | 10,000,000 | 10,041,704 | ||||||
| 19,644,388 | ||||||||
| 44 |
UBS RMA Tax-Free Fund Inc.
Statement of net assets—December 31, 2007 (unaudited)
| Face amount | Value | |||||||
| Municipal bonds and notes—(continued) | ||||||||
| Pennsylvania—5.74% | ||||||||
Allegheny County Higher Education Building | $12,765,000 | $12,765,000 | ||||||
Beaver County Industrial Development Authority | 17,300,000 | 17,300,000 | ||||||
Beaver County, Series B (FSA Insured), | 24,700,000 | 24,700,000 | ||||||
Butler County General Authority Revenue (Hampton | 2,100,000 | 2,100,000 | ||||||
Cumberland County Municipal Authority Revenue | 10,440,000 | 10,440,000 | ||||||
Delaware County Authority, Hospital Revenue | 13,470,000 | 13,470,000 | ||||||
Delaware Valley Regional Finance Authority | 45,450,000 | 45,450,000 | ||||||
Series C, | 16,200,000 | 16,200,000 | ||||||
Franklin County Industrial Development Authority | 7,000,000 | 7,000,000 | ||||||
Geisinger Authority Health Systems (Geisinger | 7,600,000 | 7,600,000 | ||||||
Series B, | 12,800,000 | 12,800,000 | ||||||
Montgomery County Industrial Development | 44,900,000 | 44,900,000 | ||||||
Moon Industrial Development Authority First | 35,000,000 | 35,000,000 | ||||||
| 45 |
UBS RMA Tax-Free Fund Inc.
Statement of net assets—December 31, 2007 (unaudited)
| Face amount | Value | |||||||
| Municipal bonds and notes—(continued) | ||||||||
| Pennsylvania—(concluded) | ||||||||
Pennsylvania Public School Building Authority | $19,300,000 | $19,300,000 | ||||||
Series B (Bank of America Macon Certificates, | 28,270,000 | 28,270,000 | ||||||
Pocono Mountain School District (Morgan Stanley | 27,456,000 | 27,456,000 | ||||||
State Public School Building Authority Revenue | 14,790,000 | 14,790,000 | ||||||
University of Pittsburgh of the Commonwealth | 14,200,000 | 14,200,000 | ||||||
University of Pittsburgh of the Commonwealth | 9,000,000 | 9,000,000 | ||||||
| 362,741,000 | ||||||||
| South Carolina—0.89% | ||||||||
Charleston County School District Tax | 15,000,000 | 15,022,957 | ||||||
Scago Educational Facilities Corp. for Pickens School District (Morgan Stanley Floater Certificates, Series 1753) (FSA Insured), | 5,000,000 | 5,000,000 | ||||||
South Carolina Educational Facilities Authority for Private Nonprofit Institutions (Furman University), Series B, | 22,800,000 | 22,800,000 | ||||||
South Carolina Public Service Authority Revenue | 13,275,000 | 13,275,000 | ||||||
| 56,097,957 | ||||||||
| 46 |
UBS RMA Tax-Free Fund Inc.
Statement of net assets—December 31, 2007 (unaudited)
| Face amount | Value | |||||||
| Municipal bonds and notes—(continued) | ||||||||
| South Dakota—0.19% | ||||||||
Sioux Falls Sales Tax Revenue (Lehman Brothers Floater Certificates, Series 1886) (MBIA Insured), | $11,915,000 | $11,915,000 | ||||||
| Tennessee—2.39% | ||||||||
Blount County Public Building Authority (ABN AMRO MuniTops Certificates Trust, Series 2007-4) (XLCA Insured), | 22,700,000 | 22,700,000 | ||||||
Knox County Health Educational & Housing Facilities Board Revenue Refunding (Baptist Hospital Systems Project), | 13,270,000 | 13,270,000 | ||||||
Memphis Electric Systems Revenue (JP Morgan PUTTERs, Series 1798) (MBIA Insured), | 8,705,000 | 8,705,000 | ||||||
Metropolitan Government of Nashville & Davidson County, Industrial Development (David Lipscomb University Project), | 11,000,000 | 11,000,000 | ||||||
Metropolitan Government of Nashville & Davidson County, Industrial Development Refunding | 12,460,000 | 12,460,000 | ||||||
Montgomery County Public Building Authority Pooled Financing Revenue (Tennessee County Loan Pool), | 4,400,000 | 4,400,000 | ||||||
Shelby County Public Improvement and School, Series B, | 78,550,000 | 78,550,000 | ||||||
| 151,085,000 | ||||||||
| Texas—12.02% | ||||||||
Alamo Community College District (Bank of America Austin Certificates, Series 2007-127) | 18,000,000 | 18,000,000 | ||||||
Arlington Special Obligation (Special Tax-Dallas Cowboys), Series B (MBIA Insured), | 23,100,000 | 23,100,000 | ||||||
| 47 |
UBS RMA Tax-Free Fund Inc.
Statement of net assets—December 31, 2007 (unaudited)
| Face amount | Value | |||||||
| Municipal bonds and notes—(continued) | ||||||||
| Texas—(continued) | ||||||||
Austin Water & Wastewater Systems Revenue Refunding (FSA Insured), | $19,215,000 | $19,215,000 | ||||||
Bastrop Independent School District (School Building) (Bank of America Austin Certificates, Series 2006) (PSF-GTD), | 9,698,000 | 9,698,000 | ||||||
Bell County Health Facilities Development Corp. Revenue (Hospital-Scott & White), Series 2001-2 (MBIA Insured), | 27,000,000 | 27,000,000 | ||||||
Burleson Independent School District Refunding (LaSalle MuniTops Certificates, Series 2007-35) (PSF-GTD), | 11,000,000 | 11,000,000 | ||||||
Canyon Independent School District (School Building) (Bank of America Austin Certificates, Series 2000) (PSF-GTD), | 9,692,000 | 9,692,000 | ||||||
Cypress-Fairbanks Independent School District (Citigroup ROCS, Series RR-II-R-12104) (PSF-GTD), | 14,850,000 | 14,850,000 | ||||||
Dallas Waterworks & Sewer Systems Revenue Refunding (Bank of America Austin Certificates, Series 2007-136) (AMBAC Insured), | 19,995,000 | 19,995,000 | ||||||
Eagle Mountain & Saginaw Independent School District (ABN AMRO MuniTops Certificates Trust, Series 2006-74) (PSF-GTD), | 14,775,000 | 14,775,000 | ||||||
Ellis County (Bank of America Austin Certificates, Series 2007-181) (FGIC Insured), | 9,025,000 | 9,025,000 | ||||||
Fort Worth Independent School District (JP Morgan PUTTERs, Series 1673) (PSF-GTD), | 12,895,000 | 12,895,000 | ||||||
Grand Prairie Independent School District (Citigroup ROCS, Series RR-II-R-11161) (PSF-GTD), | 3,800,000 | 3,800,000 | ||||||
| 48 |
UBS RMA Tax-Free Fund Inc.
Statement of net assets—December 31, 2007 (unaudited)
| Face amount | Value | |||||||
| Municipal bonds and notes—(continued) | ||||||||
| Texas—(continued) | ||||||||
Gulf Coast Waste Disposal Authority Pollution Control Revenue Refunding (AMOCO Oil), | $3,700,000 | $3,700,000 | ||||||
Harris County (Citigroup Eagle Class A | 10,500,000 | 10,500,000 | ||||||
Harris County Health Facilities Development Corp. Revenue (Methodist Hospital Systems), Series A, 3.420%, VRD | 34,700,000 | 34,700,000 | ||||||
Harris County Health Facilities Development Corp. Revenue (St. Luke’s Episcopal Hospital), Series B, 3.750%, VRD | 14,300,000 | 14,300,000 | ||||||
Harris County Health Facilities Development Corp. Special Facilities Revenue (Texas Medical Center Project), Series B (FSA Insured), | 1,900,000 | 1,900,000 | ||||||
Harris County (JP Morgan PUTTERs, Series 1682) (MBIA-IBC Insured), | 12,670,000 | 12,670,000 | ||||||
Harris County Tax Anticipation Notes, | 15,000,000 | 15,019,836 | ||||||
Houston Higher Education Finance Corp. Revenue (Citigroup Eagle Class A Certificates 20070077), | 2,000,000 | 2,000,000 | ||||||
Houston Refunding (Public Improvement), Series D (Bank of America Austin Certificates, | 14,730,000 | 14,730,000 | ||||||
Houston Water & Sewer Systems Revenue (JP Morgan PUTTERs, Series 1995) (MBIA Insured), | 25,730,000 | 25,730,000 | ||||||
Lamar Consolidated Independent School District (Citigroup Eagle Class A Certificates 20070045) | 4,950,000 | 4,950,000 | ||||||
Laredo (Morgan Stanley Floater Certificates, Series 2065) (MBIA Insured), | 18,345,000 | 18,345,000 | ||||||
Lower Neches Valley Authority Industrial Development Corp. Exempt Facilities Revenue Refunding (ExxonMobil Project), Series A, | 11,900,000 | 11,900,000 | ||||||
| 49 |
UBS RMA Tax-Free Fund Inc.
Statement of net assets—December 31, 2007 (unaudited)
| Face amount | Value | |||||||
| Municipal bonds and notes—(continued) | ||||||||
| Texas—(continued) | ||||||||
Lubbock Refunding (ABN AMRO MuniTops Certificates Trust, Series 2007-17) (FSA Insured), | $12,635,000 | $12,635,000 | ||||||
North East Independent School District (Citigroup Eagle Class A Certificates 20070123) (PSF-GTD), | 8,935,000 | 8,935,000 | ||||||
North East Independent School District (School Building), Series A (LaSalle MuniTops Certificates, Series 2007-70) (PSF-GTD), | 39,995,000 | 39,995,000 | ||||||
North Texas Municipal Water District Water Systems Revenue (JP Morgan PUTTERs, Series 1656) | 3,530,000 | 3,530,000 | ||||||
Odessa (Wachovia Bank Merlots), Series D50 | 14,185,000 | 14,185,000 | ||||||
Pasadena Independent School District (ABN AMRO MuniTops Certificates Trust, Series 2006-57) | 21,380,000 | 21,380,000 | ||||||
Port Arthur Navigation District Refunding | 4,710,000 | 4,710,000 | ||||||
San Antonio Electric & Gas Refunding (Bank of America Austin Certificates, Series 2007-165), | 26,865,000 | 26,865,000 | ||||||
San Antonio Water Revenue (JP Morgan PUTTERs, Series 1196) (MBIA Insured), | 14,120,000 | 14,120,000 | ||||||
San Antonio Water Revenue Refunding (ABN AMRO MuniTops Certificates Trust, Series 2007-16) (FGIC Insured), | 37,270,000 | 37,270,000 | ||||||
San Marcos Consolidated Independent School District (JP Morgan PUTTERs, Series 1506) (PSF-GTD), | 7,825,000 | 7,825,000 | ||||||
Tarrant County Housing Finance Corp. Revenue Refunding (Multi-Family Housing Apartments Project), | 7,050,000 | 7,050,000 | ||||||
| 50 |
UBS RMA Tax-Free Fund Inc.
Statement of net assets—December 31, 2007 (unaudited)
| Face amount | Value | |||||||
| Municipal bonds and notes—(continued) | ||||||||
| Texas—(concluded) | ||||||||
Texas (Citigroup Eagle Class A Certificates 20070082), | $21,000,000 | $21,000,000 | ||||||
Texas (Citigroup Eagle Class A Certificates 20070139), | 8,685,000 | 8,685,000 | ||||||
Texas (Morgan Stanley Floater Certificates), | 10,135,000 | 10,135,000 | ||||||
Texas Multi-Mode-Mobility Fund, Series B, | 15,000,000 | 15,000,000 | ||||||
Texas Tax and Revenue Anticipation Notes, | 50,000,000 | 50,257,515 | ||||||
Texas Transportation Commission (Mobility Fund) (Bank of America Austin Certificates, | 24,064,000 | 24,064,000 | ||||||
University of Texas Permanent University Fund Refunding, Series B (JP Morgan PUTTERs, | 5,490,000 | 5,490,000 | ||||||
Waco (Citigroup ROCS, Series RR-II-R-11168) | 13,990,000 | 13,990,000 | ||||||
Waco Educational Finance Corp. Revenue | 14,800,000 | 14,800,000 | ||||||
Waco Educational Finance Corp. Revenue (Baylor University), Series A (XLCA Insured), | 28,125,000 | 28,125,000 | ||||||
Williamson County (JP Morgan PUTTERs, Series 1511) (FSA Insured), | 6,230,000 | 6,230,000 | ||||||
| 759,766,351 | ||||||||
| 51 |
UBS RMA Tax-Free Fund Inc.
Statement of net assets—December 31, 2007 (unaudited)
| Face amount | Value | |||||||
| Municipal bonds and notes—(continued) | ||||||||
| Utah—3.33% | ||||||||
Intermountain Power Agency Power Supply Revenue Refunding, | $19,300,000 | $19,300,000 | ||||||
Subseries B (FGIC Insured), | 56,500,000 | 56,500,000 | ||||||
Murray City Hospital Revenue (IHC Health Services, Inc.), | 11,200,000 | 11,200,000 | ||||||
Series B, | 12,660,000 | 12,660,000 | ||||||
Series C, | 52,700,000 | 52,700,000 | ||||||
Utah County Hospital Revenue (IHC Health Services, Inc.), Series B, | 44,025,000 | 44,025,000 | ||||||
Weber County Hospital Revenue | 14,100,000 | 14,100,000 | ||||||
| 210,485,000 | ||||||||
| Vermont—0.55% | ||||||||
University of Vermont & St. Agric College (ABN AMRO MuniTops Certificates Trust, Series 2005-58) (MBIA Insured), | 14,995,000 | 14,995,000 | ||||||
University of Vermont & St. Agric College (Citigroup Eagle Class A Certificates 20070088) | 19,800,000 | 19,800,000 | ||||||
| 34,795,000 | ||||||||
| Virginia—0.39% | ||||||||
Charlottesville Industrial Development Authority Educational Facilities Revenue (University of Virginia Foundation Projects), Series B, | 10,000,000 | 10,000,000 | ||||||
Richmond Public Utilities Revenue (Citigroup ROCS, Series RR-II-R-11262) (FSA Insured), | 4,875,000 | 4,875,000 | ||||||
| 52 |
UBS RMA Tax-Free Fund Inc.
Statement of net assets—December 31, 2007 (unaudited)
| Face amount | Value | |||||||
| Municipal bonds and notes—(continued) | ||||||||
| Virginia—(concluded) | ||||||||
Roanoke Industrial Development Authority Hospital Revenue (Carilion Health Systems), Series C-2 (FSA Insured), | $9,700,000 | $9,700,000 | ||||||
| 24,575,000 | ||||||||
| Washington—2.78% | ||||||||
King County Sewer Revenue (Citigroup Eagle Class A Certificates 20070084) (FSA Insured), | 43,000,000 | 43,000,000 | ||||||
King County Sewer Revenue (Junior Lien), | 23,195,000 | 23,195,000 | ||||||
Series B, | 22,200,000 | 22,200,000 | ||||||
Kitsap County Consolidated Housing Authority | 19,205,000 | 19,205,000 | ||||||
Washington (Citigroup ROCS, Series RR-II-R-11145) (FSA Insured), | 6,800,000 | 6,800,000 | ||||||
Washington (JP Morgan PUTTERs), | 20,960,000 | 20,960,000 | ||||||
Series 1802B (AMBAC Insured), | 17,250,000 | 17,250,000 | ||||||
Washington Health Care Facilities Authority | 15,800,000 | 15,800,000 | ||||||
Washington Housing Finance Commission Nonprofit Housing Revenue | 1,000,000 | 1,000,000 | ||||||
Washington Refunding, Series R 2004 A, | 6,355,000 | 6,364,142 | ||||||
| 175,774,142 | ||||||||
| Wisconsin—1.81% | ||||||||
Appleton Area School District Tax and Revenue | 25,000,000 | 25,082,385 | ||||||
| 53 |
UBS RMA Tax-Free Fund Inc.
Statement of net assets—December 31, 2007 (unaudited)
| Face amount | Value | |||||||
| Municipal bonds and notes—(concluded) | ||||||||
| Wisconsin—(concluded) | ||||||||
Kenosha Unified School District No. 1 Tax and | $28,000,000 | $28,090,170 | ||||||
Racine Unified School District Tax and Revenue | 36,055,000 | 36,158,452 | ||||||
Wisconsin Center District Tax Revenue, Series A, | 10,000,000 | 10,000,000 | ||||||
Wisconsin Health & Educational Facilities Authority Revenue (Wheaton Franciscan Services), Series B, | 15,200,000 | 15,200,000 | ||||||
| 114,531,007 | ||||||||
| Wyoming—0.21% | ||||||||
Uinta County Pollution Control Revenue Refunding (AMOCO Project), | 13,300,000 | 13,300,000 | ||||||
| Total municipal bonds and notes (cost—$5,827,495,765) | 5,827,495,765 | |||||||
| Municipal asset-backed securities (Multiple underlying bonds)—0.72% | ||||||||
| California—0.72% | ||||||||
JP Morgan Chase & Co. I-PUTTERs Trust, Series 1710P (FSA Insured), | 44,635,000 | 44,635,000 | ||||||
Series 1711P (FSA Insured), | 705,000 | 705,000 | ||||||
| Total municipal (multi-issuer) asset-backed securities (cost—$45,340,000) | 45,340,000 | |||||||
| Tax-exempt commercial paper—7.27% | ||||||||
| Arizona—0.44% | ||||||||
Salt River Agricultural Improvement & | 15,600,000 | 15,600,000 | ||||||
2.750%, due 04/09/08 | 12,500,000 | 12,500,000 | ||||||
| 28,100,000 | ||||||||
| Florida—1.47% | ||||||||
City of Jacksonville, | 27,460,000 | 27,460,000 | ||||||
| 54 |
UBS RMA Tax-Free Fund Inc.
Statement of net assets—December 31, 2007 (unaudited)
| Face amount | Value | |||||||
| Tax-exempt commercial paper—(continued) | ||||||||
| Florida—(concluded) | ||||||||
Florida Local Government Finance Commission, | $17,144,000 | $17,144,000 | ||||||
Jacksonville Electric Authority, | 15,000,000 | 15,000,000 | ||||||
Series 200-F, | 15,000,000 | 15,000,000 | ||||||
Series 2000-B, | 18,200,000 | 18,200,000 | ||||||
| 92,804,000 | ||||||||
| Georgia—0.49% | ||||||||
Burke County Development Authority Revenue | 10,000,000 | 10,000,000 | ||||||
Emory University, | 15,000,000 | 15,000,000 | ||||||
2.840%, due 02/21/08 | 6,000,000 | 6,000,000 | ||||||
| 31,000,000 | ||||||||
| Illinois—1.08% | ||||||||
Evanston Hospital, | 13,000,000 | 13,000,000 | ||||||
3.350%, due 01/10/08 | 25,000,000 | 25,000,000 | ||||||
3.450%, due 01/17/08 | 20,000,000 | 20,000,000 | ||||||
Illinois Educational Facilities Authority Revenue, | 10,000,000 | 10,000,000 | ||||||
| 68,000,000 | ||||||||
| Maryland—0.79% | ||||||||
Baltimore County Metro District, | 25,000,000 | 25,000,000 | ||||||
2.850%, due 03/07/08 | 25,000,000 | 25,000,000 | ||||||
| 50,000,000 | ||||||||
| Massachusetts—0.35% | ||||||||
Massachusetts Water Authority, | 22,000,000 | 22,000,000 | ||||||
| New York—0.22% | ||||||||
New York City Municipal Water Authority, | 14,200,000 | 14,200,000 | ||||||
| 55 |
UBS RMA Tax-Free Fund Inc.
Statement of net assets—December 31, 2007 (unaudited)
| Face amount | Value | |||||||
| Tax-exempt commercial paper—(concluded) | ||||||||
| Pennsylvania—0.08% | ||||||||
Montgomery County Industrial Development Authority, | $5,000,000 | $5,000,000 | ||||||
| Tennessee—0.40% | ||||||||
Tennessee State School Bond Authority, | 15,400,000 | 15,400,000 | ||||||
3.450%, due 02/11/08 | 10,000,000 | 10,000,000 | ||||||
| 25,400,000 | ||||||||
| Texas—1.43% | ||||||||
City of Houston, | 15,000,000 | 15,000,000 | ||||||
3.350%, due 03/10/08 | 10,000,000 | 10,000,000 | ||||||
Dallas Area Rapid Transit, | 10,000,000 | 10,000,000 | ||||||
Harris County Flood District, | 7,050,000 | 7,050,000 | ||||||
Harris County Metro Trust Authority, | 13,000,000 | 13,000,000 | ||||||
Harris County Toll Road, | 14,145,000 | 14,145,000 | ||||||
University of Texas, | 10,985,000 | 10,985,000 | ||||||
2.800%, due 06/06/08 | 10,000,000 | 10,000,000 | ||||||
| 90,180,000 | ||||||||
| Washington—0.52% | ||||||||
King County Sewer Revenue, | 15,000,000 | 15,000,000 | ||||||
3.440%, due 03/10/08 | 11,300,000 | 11,300,000 | ||||||
3.450%, due 03/10/08 | 6,700,000 | 6,700,000 | ||||||
| 33,000,000 | ||||||||
| Total tax-exempt commercial paper (cost—$459,684,000) | 459,684,000 | |||||||
| Number of shares | ||||||||
| Money market funds(3)—0.83% | ||||||||
AIM Tax Free Investments, | 18,100,000 | 18,100,000 | ||||||
| 56 |
UBS RMA Tax-Free Fund Inc.
Statement of net assets—December 31, 2007 (unaudited)
| Number of shares | Value | ||||||||
| Money market funds(3)—(concluded) | |||||||||
BlackRock Liquidity Fund Municipal Fund Portfolio Institutional Class, | 34,400,000 | $34,400,000 | |||||||
| Total money market funds (cost—$52,500,000) | 52,500,000 | ||||||||
| Total investments (cost—$6,385,019,765 which approximates cost for federal income tax purposes)—100.98% | 6,385,019,765 | ||||||||
| Liabilities in excess of other assets—(0.98)% | (62,077,678 | ) | |||||||
| Net assets (applicable to 6,323,443,082 shares of common stock outstanding equivalent to $1.00 per share)—100.00% | $6,322,942,087 | ||||||||
(1) | Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities, which represent 27.95% of net assets as of December 31, 2007, 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 reflect yield at December 31, 2007. |
| ACES | Adjustable Convertible Extendable Securities |
| AID | Anticipation Certificates of Indebtedness |
| AMBAC | American Municipal Bond Assurance Corporation |
| CCAO | County Commissioners Association of Ohio |
| CIFG | CDC IXIS Financial Guaranty |
| FGIC | Financial Guaranty Insurance Company |
| FSA | Financial Security Assurance |
| GTD | Guaranteed |
| IBC | Insured Bond Certificate |
| I-PUTTERs | Income Gain Share Puttable Tax-Exempt Receipts |
| MBIA | Municipal Bond Investors Assurance |
| PSF | Permanent School Fund |
| PUTTERs | Puttable Tax-Exempt Receipts |
| ROCS | Reset Option Certificates |
| VRD | Variable rate demand notes are payable on demand. The interest rates shown are the current rates as of December 31, 2007 and reset periodically. |
| XLCA | XL Capital Assurance |
Weighted average maturity—19 days
See accompanying notes to financial statements
| 57 |
UBS RMA California Municipal Money Fund
Statement of net assets—December 31, 2007 (unaudited)
| Face amount | Value | |||||||
| Municipal bonds and notes—92.77% | ||||||||
California Communities Notes Program Notes of Participations Tax and Revenue Anticipation Notes (County of Riverside), Series A-3, | $10,000,000 | $10,041,968 | ||||||
California, Daily Kindergarten Universal, | 400,000 | 400,000 | ||||||
Series B-2, | 13,400,000 | 13,400,000 | ||||||
California Department of Water Resources Power Supply Revenue, | 2,200,000 | 2,200,000 | ||||||
Series B-2, | 4,125,000 | 4,125,000 | ||||||
Series B-3, | 1,000,000 | 1,000,000 | ||||||
Series B-4, | 17,440,000 | 17,440,000 | ||||||
Series B-5, | 750,000 | 750,000 | ||||||
Series C-2 (AMBAC Insured), | 13,990,000 | 13,990,000 | ||||||
Series C-7 (FSA Insured), | 10,900,000 | 10,900,000 | ||||||
Series C-9, | 540,000 | 540,000 | ||||||
Subseries F-2, | 10,000,000 | 10,000,000 | ||||||
Subseries F-4, | 1,600,000 | 1,600,000 | ||||||
Subseries F-5, | 3,710,000 | 3,710,000 | ||||||
Subseries G-8 (MBIA Insured), 3.350%, VRD | 5,835,000 | 5,835,000 | ||||||
California Educational Facilities Authority Revenue (Pepperdine University), (Pre-refunded with US Government Securities to 09/15/08 @ 101) | 2,420,000 | 2,491,240 | ||||||
California Educational Facilities Authority Revenue Refunding (Carnegie Institution of Washington), Series A, | 10,100,000 | 10,100,000 |
| 58 |
UBS RMA California Municipal Money Fund
Statement of net assets—December 31, 2007 (unaudited)
| Face amount | Value | |||||||
| Municipal bonds and notes—(continued) | ||||||||
California Educational Facilities Authority Revenue Refunding (Stanford University), Series L-5, | $1,765,000 | $1,765,000 | ||||||
California Health Facilities Financing Authority Revenue (Adventist Health Systems), Series A, | 3,900,000 | 3,900,000 | ||||||
California Health Facilities Financing Authority Revenue (Hospital Adventist Health Systems), | 2,335,000 | 2,335,000 | ||||||
California Health Facilities Financing Authority Revenue (Insured Hospital Adventist), | 3,440,000 | 3,440,000 | ||||||
California Health Facilities Financing Authority Revenue (Kaiser Permanente), Series C, | 21,100,000 | 21,100,000 | ||||||
California Infrastructure & Economic Development Bank Revenue (Buck Institute for Age Research), | 15,500,000 | 15,500,000 | ||||||
California Infrastructure & Economic Development Bank Revenue (Contemporary Jewish Museum), | 600,000 | 600,000 | ||||||
California Infrastructure & Economic Development Bank Revenue (India Community Center), | 100,000 | 100,000 | ||||||
California Infrastructure & Economic Development Bank Revenue (J. Paul Getty Trust), Series B, | 8,120,000 | 8,120,000 | ||||||
California (Morgan Stanley Floater Certificates), | 4,989,500 | 4,989,500 | ||||||
California Municipal Finance Authority Pollution Control Revenue Refunding | 685,000 | 685,000 | ||||||
California Pollution Control Financing Authority Pollution Control Revenue Refunding | 7,235,000 | 7,235,000 | ||||||
Series F, | 5,100,000 | 5,100,000 |
| 59 |
UBS RMA California Municipal Money Fund
Statement of net assets—December 31, 2007 (unaudited)
| Face amount | Value | |||||||
| Municipal bonds and notes—(continued) | ||||||||
California Pollution Control Financing Authority Pollution Control Revenue Refunding | $5,900,000 | $5,900,000 | ||||||
California Public Works Board Lease Revenue (Morgan Stanley Floater Certificates), Series 1717 | 9,967,500 | 9,967,500 | ||||||
California Revenue Anticipation Notes, | 45,000,000 | 45,143,299 | ||||||
California School Cash Reserve Program Certificates of Participation 2007-2008, Series A, | 24,000,000 | 24,072,477 | ||||||
California, | 800,000 | 800,000 | ||||||
Series B, Subseries B-5, | 7,800,000 | 7,800,000 | ||||||
California Statewide Communities Development Authority Multi Family Revenue Refunding (Foxwoods Apartments), Series J, | 375,000 | 375,000 | ||||||
California Statewide Communities Development Authority Pollution Control Revenue Refunding (Chevron USA, Inc. Project), | 5,420,000 | 5,420,000 | ||||||
California Statewide Communities Development Authority Revenue (Cathedral High School Project), | 6,810,000 | 6,810,000 | ||||||
California Statewide Communities Development Authority Revenue (Kaiser Permanente), | 24,700,000 | 24,700,000 | ||||||
Series C, | 22,160,000 | 22,160,000 | ||||||
Series D, | 4,400,000 | 4,400,000 | ||||||
Series M, 3.410%, VRD | 3,400,000 | 3,400,000 | ||||||
California Statewide Communities Development Authority Revenue (Masters College), | 400,000 | 400,000 |
| 60 |
UBS RMA California Municipal Money Fund
Statement of net assets—December 31, 2007 (unaudited)
| Face amount | Value | |||||||
| Municipal bonds and notes—(continued) | ||||||||
California Statewide Communities Development Authority Revenue (North Peninsula Jewish Campus), | $650,000 | $650,000 | ||||||
California Statewide Communities Development Authority Revenue, Series J, | 18,500,000 | 18,500,000 | ||||||
California Statewide Communities Development Authority Revenue (Sweep Loan Program), | 13,480,000 | 13,480,000 | ||||||
California Statewide Communities Development Authority Revenue (Western University Health), Series A, | 10,000,000 | 10,000,000 | ||||||
California Transit Finance Authority (FSA Insured), | 4,200,000 | 4,200,000 | ||||||
California University Revenue (Citigroup ROCS, Series RR-II-R-11191) (FSA Insured), | 2,015,000 | 2,015,000 | ||||||
California, Weekly Kindergarten Universal, Public Series A-9, | 7,395,000 | 7,395,000 | ||||||
Alameda-Contra Costa Schools Financing Authority Certificates of Participation, Series K, | 5,000,000 | 5,000,000 | ||||||
Allan Hancock Joint Community College District (JP Morgan PUTTERs, Series 2350) (FSA Insured), 3.520%, VRD(1),(2) | 4,745,000 | 4,745,000 | ||||||
Arcadia Unified School District (Morgan Stanley Floater Certificates), Series 1709 (FSA Insured), 3.470%, VRD(1),(2) | 19,500,000 | 19,500,000 | ||||||
Association of Bay Area Governments Finance Authority for Nonprofit Corps. Certificates of Participation Refunding, Series D, | 250,000 | 250,000 | ||||||
Association of Bay Area Governments Finance Authority for Nonprofit Corps. Revenue (Jewish Home San Francisco), | 14,000,000 | 14,000,000 |
| 61 |
UBS RMA California Municipal Money Fund
Statement of net assets—December 31, 2007 (unaudited)
| Face amount | Value | |||||||
| Municipal bonds and notes—(continued) | ||||||||
Association of Bay Area Governments Finance Authority for Nonprofit Corps. Revenue (Oshman Family Jewish Community), | $2,800,000 | $2,800,000 | ||||||
Bay Area Government Association Improvement Bond Act 1915 (Windemere Ranch Assessment District-1), | 6,820,000 | 7,141,459 | ||||||
7.450%, due 09/02/08 | 10,000,000 | 10,481,554 | ||||||
Bay Area Toll Authority Toll Bridge Revenue | 32,740,000 | 32,740,000 | ||||||
Series A-1 (AMBAC Insured), | 10,000,000 | 10,000,000 | ||||||
Series A-2 (AMBAC Insured), | 6,400,000 | 6,400,000 | ||||||
Series B-2 (AMBAC Insured), | 10,000,000 | 10,000,000 | ||||||
Series G-1 (AMBAC Insured), | 12,500,000 | 12,500,000 | ||||||
Belmont-Redwood Shores School District (JP Morgan PUTTERs, Series 2103), (FSA Insured) | 13,185,000 | 13,185,000 | ||||||
Calleguas-Las Virgines Financing Authority Revenue (Calleguas Municipal Water District Project), Series A (Bank of America Austin Certificates, Series 2007-2023) (FGIC Insured), | 5,160,000 | 5,160,000 | ||||||
Chino Basin Regional Financing Authority Revenue (Inland Empire Utilities), Series A (AMBAC Insured), | 2,345,000 | 2,345,000 | ||||||
Citrus Community College District (Morgan Stanley Floater Certificates), Series 1745 (MBIA Insured), | 5,490,000 | 5,490,000 | ||||||
Desert Sands California Unified School District (ABN AMRO MuniTops Certificates Trust, Series 2006-41) (AMBAC Insured), | 17,000,000 | 17,000,000 |
| 62 |
UBS RMA California Municipal Money Fund
Statement of net assets—December 31, 2007 (unaudited)
| Face amount | Value | |||||||
| Municipal bonds and notes—(continued) | ||||||||
East Bay Municipal Utility District Wastewater Systems Revenue Refunding, | $10,525,000 | $10,525,000 | ||||||
Subseries A (Bank of America Austin Certificates, Series 2007-158) (AMBAC Insured), | 7,435,000 | 7,435,000 | ||||||
Subseries B (XLCA Insured), | 1,140,000 | 1,140,000 | ||||||
East Bay Municipal Utility District Water Systems Revenue (Citigroup Eagle Class A Certificates 20070069) (FGIC Insured), | 15,000,000 | 15,000,000 | ||||||
East Bay Municipal Utility District Water Systems Revenue (Morgan Stanley Floater Certificates), Series 1414 (MBIA Insured), | 2,400,000 | 2,400,000 | ||||||
East Bay Municipal Utility District Water Systems Revenue Refunding, Subseries B-1 (XLCA Insured), | 15,195,000 | 15,195,000 | ||||||
Foothill-De Anza Community College District (JP Morgan PUTTERs, Series 1837T) (AMBAC Insured), | 10,500,000 | 10,500,000 | ||||||
Foothill-De Anza Community College District (Morgan Stanley Floater Certificates), | 17,025,000 | 17,025,000 | ||||||
Series 1844 (AMBAC Insured), | 15,475,000 | 15,475,000 | ||||||
Irvine Improvement Bond Act 1915 Limited Obligation (Assessment District 04-20), Series B, | 10,088,000 | 10,088,000 | ||||||
Irvine Improvement Bond Act 1915 Limited | 3,150,000 | 3,150,000 | ||||||
Irvine Improvement Bond Act 1915 Limited | 3,300,000 | 3,300,000 | ||||||
Irvine Improvement Bond Act 1915 Limited | 6,700,000 | 6,700,000 |
| 63 |
UBS RMA California Municipal Money Fund
Statement of net assets—December 31, 2007 (unaudited)
| Face amount | Value | |||||||
| Municipal bonds and notes—(continued) | ||||||||
Irvine Ranch Water District Consolidated Bonds, | $665,000 | $665,000 | ||||||
Series B, | 5,260,000 | 5,260,000 | ||||||
Irvine Ranch Water District (Improvement | 900,000 | 900,000 | ||||||
Irvine Ranch Water District (Improvement | 300,000 | 300,000 | ||||||
Irvine Ranch Water District (Nos. 105, 140, | 4,000,000 | 4,000,000 | ||||||
Los Angeles Certificates of Participation (Loyola High School), Series A, | 700,000 | 700,000 | ||||||
Los Angeles County Tax and Revenue Anticipation Notes, | 25,000,000 | 25,104,920 | ||||||
Los Angeles Unified School District (Citigroup Eagle | 8,000,000 | 8,000,000 | ||||||
Los Angeles Unified School District (JP Morgan PUTTERs), | 12,710,000 | 12,710,000 | ||||||
Series 1558, (FGIC Insured), | 13,975,000 | 13,975,000 | ||||||
Series 2016, (FSA Insured), | 12,600,000 | 12,600,000 | ||||||
Los Angeles Unified School District Refunding, | 7,230,000 | 7,230,000 | ||||||
Los Angeles Unified School District Tax and | 26,400,000 | 26,613,939 | ||||||
Los Angeles Wastewater Systems Revenue | 2,400,000 | 2,400,000 | ||||||
Subseries B (FGIC Insured), | 16,800,000 | 16,800,000 |
| 64 |
UBS RMA California Municipal Money Fund
Statement of net assets—December 31, 2007 (unaudited)
| Face amount | Value | |||||||
| Municipal bonds and notes—(continued) | ||||||||
Los Angeles Water and Power Revenue | $39,000,000 | $39,000,000 | ||||||
Los Angeles Water and Power Revenue, | 6,600,000 | 6,600,000 | ||||||
Subseries A-4, | 5,000,000 | 5,000,000 | ||||||
Subseries B-2, | 1,500,000 | 1,500,000 | ||||||
Subseries B-3, | 9,000,000 | 9,000,000 | ||||||
Subseries B-6, | 2,300,000 | 2,300,000 | ||||||
Los Gatos Joint Union High School District (ABN AMRO MuniTops Certificates Trust, Series 2003-11) (FSA Insured), | 6,995,000 | 6,995,000 | ||||||
Mendocino-Lake Community College District (Morgan Stanley Floater Certificates), Series 1931 (MBIA Insured), | 11,330,000 | 11,330,000 | ||||||
Metropolitan Water District Southern California Waterworks Revenue (Citigroup Eagle Class A Certificates 20040044), | 8,380,000 | 8,380,000 | ||||||
Metropolitan Water District Southern California Waterworks Revenue (Citigroup Eagle Class A Certificates 20070071), | 15,000,000 | 15,000,000 | ||||||
Metropolitan Water District Southern California Waterworks Revenue (Citigroup ROCS, Series RR-II-R-11301), | 4,300,000 | 4,300,000 | ||||||
Metropolitan Water District Southern California Waterworks Revenue Refunding, | 9,660,000 | 9,660,000 | ||||||
Series A-2, | 7,570,000 | 7,570,000 | ||||||
Series C-2, | 12,230,000 | 12,230,000 |
| 65 |
UBS RMA California Municipal Money Fund
Statement of net assets—December 31, 2007 (unaudited)
| Face amount | Value | |||||||
| Municipal bonds and notes—(continued) | ||||||||
Metropolitan Water District Southern California Waterworks Revenue, | $7,830,000 | $7,830,000 | ||||||
Series B-2, | 500,000 | 500,000 | ||||||
Series B-3, | 3,900,000 | 3,900,000 | ||||||
Series C-1, | 800,000 | 800,000 | ||||||
Series C-2, | 2,800,000 | 2,800,000 | ||||||
Modesto Irrigation District Financing Authority Revenue (Morgan Stanley Floater Certificates), Series 1849 (MBIA Insured), | 3,950,000 | 3,950,000 | ||||||
Oakland Alameda County Coliseum Authority Lease Revenue (Coliseum Project), Series C-2, | 15,000,000 | 15,000,000 | ||||||
3.360%, VRD | 20,513,000 | 20,513,000 | ||||||
Oakland Certificates of Participation (Capital Equipment Project), | 8,000,000 | 8,000,000 | ||||||
Orange County Apartment Development Revenue | 13,200,000 | 13,200,000 | ||||||
Orange County Improvement Board (Assessment | 500,000 | 500,000 | ||||||
Orange County Water District Revenue Certificates of Participation, Series A, | 40,000,000 | 40,000,000 | ||||||
Poway Unified School District (Citigroup ROCS, Series RR-II-R-12224) (FSA Insured), | 7,100,000 | 7,100,000 | ||||||
Richmond Improvement Bond Act 1915 Limited Obligation (Improvement District No. 99-01), | 7,870,000 | 8,161,635 |
| 66 |
UBS RMA California Municipal Money Fund
Statement of net assets—December 31, 2007 (unaudited)
| Face amount | Value | |||||||
| Municipal bonds and notes—(continued) | ||||||||
Riverside Community College District (JP Morgan PUTTERs, Series 916) (FSA Insured), | $4,230,000 | $4,230,000 | ||||||
Riverside County Certificates of Participation (ACES Riverside County Public Facility), Series A, | 4,400,000 | 4,400,000 | ||||||
Rowland Unified School District (Morgan Stanley Floater Certificates), Series 1484 (FSA Insured), | 3,155,000 | 3,155,000 | ||||||
Sacramento County Certificates of Participation (Administration Center and Courthouse Project), | 6,135,000 | 6,135,000 | ||||||
Sacramento Municipal Utility District Electric Revenue (ABN AMRO MuniTops Certificates Trust, Series 2003-17) (MBIA Insured), | 21,870,000 | 21,870,000 | ||||||
San Bernardino County Certificates of Participation (County Center Refinancing Project), | 10,300,000 | 10,300,000 | ||||||
San Diego Community College District (Citigroup ROCS, Series RR-II-R-12197) (FSA Insured), 3.530%, VRD(1),(2) | 16,830,000 | 16,830,000 | ||||||
San Diego County and School District Tax and Revenue Anticipation Notes, Series A, | 7,000,000 | 7,030,052 | ||||||
San Diego County Water Authority Water Revenue Certificates of Participation (JP Morgan PUTTERs, Series 2334) (FSA Insured), | 5,120,000 | 5,120,000 | ||||||
San Francisco Bay Area Rapid Transportation District Sales Tax Revenue (ABN AMRO MuniTops Certificates Trust, Series 2007-12) (FSA Insured), | 1,675,000 | 1,675,000 | ||||||
San Francisco City and County Airports Community International Airport Revenue Refunding, Second Series 33I (XLCA Insured), | 4,350,000 | 4,350,000 | ||||||
Series 33J (XLCA Insured), | 18,200,000 | 18,200,000 | ||||||
San Francisco City and County Redevelopment Agency Revenue (Community Facilities District No. 4), | 14,340,000 | 14,340,000 |
| 67 |
UBS RMA California Municipal Money Fund
Statement of net assets—December 31, 2007 (unaudited)
| Face amount | Value | |||||||
| Municipal bonds and notes—(continued) | ||||||||
San Jose Redevelopment Agency Revenue (Merged Area Redevelopment Project), Series A, | $2,610,000 | $2,610,000 | ||||||
San Luis, Obispo County Financing Authority Revenue (Citigroup ROCS, Series RR-II-R-12015) | 7,830,000 | 7,830,000 | ||||||
San Mateo County Transportation District Sales Tax Revenue Refunding, Series A (ABN AMRO MuniTops Certificates Trust, Series 2006-19) | 13,660,000 | 13,660,000 | ||||||
Santa Ana Health Facilities Revenue (Multi Modal Town and County), | 1,000,000 | 1,000,000 | ||||||
Santa Clara County Financing Authority Lease Revenue (Housing Authority Office Project), Series A, | 475,000 | 475,000 | ||||||
Santa Clara Unified School District Tax and Revenue Anticipation Notes, | 12,000,000 | 12,051,818 | ||||||
Santa Clarita Community College District (Morgan Stanley Floater Certificates), Series 1828 | 18,115,000 | 18,115,000 | ||||||
Santa Cruz County Redevelopment Agency Tax Allocation (Live Oak/Soquel Community Improvement), (Pre-refunded with US Government Securities to 03/01/08 @ 102) | 1,455,000 | 1,485,482 | ||||||
Sequoia Union High School District (Morgan Stanley Floater Certificates), Series 2160 (FSA Insured), | 4,110,000 | 4,110,000 | ||||||
Simi Valley Multi-Family Housing Revenue Refunding (Lincoln Wood Ranch) (FHLMC Insured), | 15,050,000 | 15,050,000 | ||||||
Southern California Public Power Authority Transmission Project Revenue Refunding (Southern Transmission), Series B (FSA Insured), | 5,265,000 | 5,265,000 | ||||||
State Center Community College District (JP Morgan PUTTERs, Series 1972) (FSA Insured), | 3,735,000 | 3,735,000 |
| 68 |
UBS RMA California Municipal Money Fund
Statement of net assets—December 31, 2007 (unaudited)
| Face amount | Value | |||||||
| Municipal bonds and notes—(concluded) | ||||||||
Stockton Unified School District (JP Morgan PUTTERs, Series 2357) (FSA Insured), | $5,000,000 | $5,000,000 | ||||||
Turlock Irrigation District Certificates of Participation (Capital Improvement and Refunding Project), | 2,900,000 | 2,900,000 | ||||||
University of California Regents Pooled Revenue (Bank of America Austin Certificates, Series 2007-118) (MBIA Insured), | 10,325,000 | 10,325,000 | ||||||
University of California Regents Pooled Revenue, Series B-1, | 475,000 | 475,000 | ||||||
University of California Revenue (Bank of America Austin Certificates, Series 2007-119) | 9,970,000 | 9,970,000 | ||||||
University of California Revenue (Citigroup ROCS, Series RR-II-R-449) (FGIC Insured), | 3,750,000 | 3,750,000 | ||||||
University of California Revenue (Citigroup ROCS, Series RR-II-R-11253) (FGIC Insured), | 15,410,000 | 15,410,000 | ||||||
University of California Revenue (JP Morgan PUTTERs, Series 1671), | 6,100,000 | 6,100,000 | ||||||
| Total municipal bonds and notes (cost—$1,362,982,843) | 1,362,982,843 | |||||||
| Municipal asset-backed security (multiple underlying bonds)—1.07% | ||||||||
JP Morgan Chase & Co. I-PUTTERs Trust, Series 1711P (FSA Insured), | 15,650,000 | 15,650,000 | ||||||
| Tax-exempt commercial paper—4.92% | ||||||||
California Educational Facilities Authority Revenue Refunding (Carnegie Institute of Washington), | 9,000,000 | 9,000,000 | ||||||
2.700%, due 04/08/08 | 8,500,000 | 8,500,000 | ||||||
California Educational Facilities Authority Revenue Refunding (Stanford University), | 2,751,000 | 2,751,000 | ||||||
| 69 |
UBS RMA California Municipal Money Fund
Statement of net assets—December 31, 2007 (unaudited)
| Face amount | Value | |||||||
| Tax-exempt commercial paper—(concluded) | ||||||||
California Statewide Communities Development Authority Revenue (Kaiser Permanente), | $5,000,000 | $5,000,000 | ||||||
Contra Costa Transportation Authority, | 8,000,000 | 8,000,000 | ||||||
Contra Costa Water District, Series A, | 11,500,000 | 11,500,000 | ||||||
Northern California Transmission Agency, 2.950%, due 01/04/08 | 300,000 | 300,000 | ||||||
3.250%, due 01/04/08 | 10,000,000 | 10,000,000 | ||||||
Riverside County Transportation, | 10,500,000 | 10,500,000 | ||||||
San Diego County Regional Airport, | 5,000,000 | 5,000,000 | ||||||
San Diego County Regional Transportation Commission, | 1,726,000 | 1,726,000 | ||||||
| Total tax-exempt commercial paper (cost—$72,277,000) | 72,277,000 | |||||||
| Number of shares | ||||||||
| Money market fund(3)—0.54% | ||||||||
BlackRock Liquidity Fund California Municipal Fund Portfolio Institutional Class, | 8,000,000 | 8,000,000 | ||||||
| Total investments (cost—$1,458,909,843 which approximates cost for federal income tax purposes)—99.30% | 1,458,909,843 | |||||||
| Other assets in excess of liabilities—0.70% | 10,293,366 | |||||||
| Net assets (applicable to 1,469,554,831 shares of beneficial interest outstanding equivalent to $1.00 per share)—100.00% | $1,469,203,209 | |||||||
(1) | Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities, which represent 30.89% of net assets as of December 31, 2007, 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) | Rate shown reflects yield at December 31, 2007. |
| 70 |
UBS RMA California Municipal Money Fund
Statement of net assets—December 31, 2007 (unaudited)
| ACES | Adjustable Convertible Extendable Securities |
| AMBAC | American Municipal Bond Assurance Corporation |
| FGIC | Financial Guaranty Insurance Company |
| FHLMC | Federal Home Loan Mortgage Corporation |
| FSA | Financial Security Assurance |
| I-PUTTERS | Income Gain Share Puttable Tax-Exempt Receipts |
| MBIA | Municipal Bond Investors Assurance |
| PUTTERs | Puttable Tax-Exempt Receipts |
| ROCS | Reset Option Certificates |
| VRD | Variable rate demand notes are payable on demand. The interest rates shown are the current rates as of December 31, 2007 and reset periodically. |
| XLCA | XL Capital Assurance |
Weighted average maturity—31 days
See accompanying notes to financial statements
| 71 |
UBS RMA New York Municipal Money Fund
Statement of net assets—December 31, 2007 (unaudited)
| Face amount | Value | |||||||
| Municipal bonds and notes—92.34% | ||||||||
New York State Dormitory Authority Revenue (Cornell University), | $21,285,000 | $21,285,000 | ||||||
Series B, | 5,865,000 | 5,865,000 | ||||||
New York State Dormitory Authority Revenue (Mental Health Facilities Improvement), | 8,430,000 | 8,430,000 | ||||||
New York State Dormitory Authority Revenue (Mental Health Services), Subseries D-2B | 10,350,000 | 10,350,000 | ||||||
New York State Dormitory Authority Revenue (Metropolitan Museum of Art), | 5,847,000 | 5,847,000 | ||||||
New York State Dormitory Authority Revenue Non-State Supported Debt (Columbia University), Series B, | 15,300,000 | 15,300,000 | ||||||
New York State Dormitory Authority Revenue (Oxford University Press Inc.), | 4,400,000 | 4,400,000 | ||||||
New York State Dormitory Authority Revenue Secondary Issues (Citigroup Eagle Class A Certificates 200070096), | 7,000,000 | 7,000,000 | ||||||
New York State Dormitory Authority Revenue Secondary Issues (Morgan Stanley Floater Certificates), Series 1971, | 5,128,000 | 5,128,000 | ||||||
New York State Dormitory Authority Revenue Secondary Issues (Wachovia Bank Merlots), Series A-06 (FSA Insured), | 4,210,000 | 4,210,000 | ||||||
New York State Dormitory Authority State Personal Income Tax Revenue Refunding (Education), Series C (AMBAC Insured), | 20,000,000 | 20,000,000 | ||||||
New York State Energy Research & Development Authority Facilities Revenue (Con Edison), Subseries A-1, | 6,000,000 | 6,000,000 |
| 72 |
UBS RMA New York Municipal Money Fund
Statement of net assets—December 31, 2007 (unaudited)
| Face amount | Value | |||||||
| Municipal bonds and notes—(continued) | ||||||||
New York State Housing Finance Agency Revenue (Housing Historic Front Street), Series A, | $15,100,000 | $15,100,000 | ||||||
New York State Housing Finance Agency Revenue | 9,680,000 | 9,680,000 | ||||||
New York State Housing Finance Agency Revenue (North End), Series A (FNMA Insured), | 5,000,000 | 5,000,000 | ||||||
New York State Housing Finance Agency Service Contract Revenue Refunding, | 20,100,000 | 20,100,000 | ||||||
Series D, | 9,700,000 | 9,700,000 | ||||||
Series I, | 13,500,000 | 13,500,000 | ||||||
New York State Local Government Assistance Corp., Series B, | 5,500,000 | 5,500,000 | ||||||
Series C, | 13,200,000 | 13,200,000 | ||||||
Series G, | 13,665,000 | 13,665,000 | ||||||
New York State Thruway Authority Highway & Bridge Trust Fund (JP Morgan PUTTERs, Series 2032) (AMBAC Insured), | 6,995,000 | 6,995,000 | ||||||
New York State Thruway Authority Personal Income Tax Revenue (JP Morgan PUTTERs, Series 1186) (FSA Insured), | 6,225,000 | 6,225,000 | ||||||
New York State Thruway Authority Second Generation Highway & Bridge Trust Fund (JP Morgan PUTTERs, Series 1413) (AMBAC Insured), | 5,780,000 | 5,780,000 | ||||||
New York State Thruway Authority Second Generation Highway & Bridge Trust Fund (Wachovia Bank Merlots), Series H-02 (AMBAC Insured), | 4,175,000 | 4,175,000 |
| 73 |
UBS RMA New York Municipal Money Fund
Statement of net assets—December 31, 2007 (unaudited)
| Face amount | Value | |||||||
| Municipal bonds and notes—(continued) | ||||||||
New York State Thruway Authority Service Contract Revenue (Citigroup ROCS RR II R-10132) (AMBAC Insured), | $4,280,000 | $4,280,000 | ||||||
New York State Thruway Authority Service Contract Revenue (JP Morgan PUTTERs, Series 145) (AMBAC Insured), | 10,000,000 | 10,000,000 | ||||||
New York State Urban Development Corp. Revenue (Morgan Stanley Floater Certificates), Series 1718, | 6,700,000 | 6,700,000 | ||||||
New York State Urban Development Corp. Revenue (State Facilities & Equipment), | 5,000,000 | 5,000,000 | ||||||
Subseries A-3-B (CIFG Insured), | 14,000,000 | 14,000,000 | ||||||
Subseries A-3-C (CIFG Insured), | 21,315,000 | 21,315,000 | ||||||
Bellmore Union Free School District Tax | 1,700,000 | 1,703,387 | ||||||
Board of Cooperative Educational Services First Supervisory District Revenue Anticipation Notes, | 3,000,000 | 3,006,601 | ||||||
Dutchess County Industrial Development Agency Civic Facilities Revenue (Marist College), | 6,335,000 | 6,335,000 | ||||||
Dutchess County Industrial Development Agency Civic Facilities Revenue (Trinity-Pawling School Corp.), | 4,000,000 | 4,000,000 | ||||||
East Hampton Township Bond Anticipation Notes, Series B, | 3,583,000 | 3,597,095 | ||||||
Series D, | 3,000,000 | 3,012,270 | ||||||
Erie County Industrial Development Agency Civic Facilities Revenue (Our Lady of Victory Corp.), Series A, | 10,220,000 | 10,220,000 | ||||||
Erie County Industrial Development Agency School Facilities Revenue (JP Morgan PUTTERs, Series 2090) (FSA Insured), | 14,800,000 | 14,800,000 |
| 74 |
UBS RMA New York Municipal Money Fund
Statement of net assets—December 31, 2007 (unaudited)
| Face amount | Value | |||||||
| Municipal bonds and notes—(continued) | ||||||||
Erie County Water Authority (AMBAC Insured), | $6,550,000 | $6,550,000 | ||||||
Herricks Union Free School District Tax Anticipation Notes, | 2,000,000 | 2,003,490 | ||||||
4.125%, due 06/27/08 | 5,200,000 | 5,212,392 | ||||||
Hewlett-Woodmere Union Free School District Bond Anticipation Notes, | 11,800,000 | 11,862,563 | ||||||
Jay Street Development Corp. New York City Facility Lease Revenue (Jay Street Project), Series A-3, | 20,000,000 | 20,000,000 | ||||||
Kings Park Central School District Tax Anticipation Notes, | 12,000,000 | 12,031,306 | ||||||
Livingston County Industrial Development Agency Civic Facilities Revenue Refunding | 2,513,000 | 2,513,000 | ||||||
Long Island Power Authority Electric Systems Revenue (Morgan Stanley Floater Certificates), Series 1943 (FSA Insured), | 11,578,000 | 11,578,000 | ||||||
Long Island Power Authority Electric Systems Revenue, Series D (FSA Insured), | 1,660,000 | 1,660,000 | ||||||
Series E (FSA Insured), | 4,425,000 | 4,425,000 | ||||||
Series F (FSA Insured), | 3,800,000 | 3,800,000 | ||||||
Series G (FSA Insured), | 4,725,000 | 4,725,000 | ||||||
Subseries 1-A, | 5,000,000 | 5,000,000 | ||||||
Subseries 3-B, | 16,200,000 | 16,200,000 | ||||||
Merrick Union Free School District Tax Anticipation Notes, | 1,000,000 | 1,002,445 | ||||||
Metropolitan Transit Authority New York Dedicated Tax Fund (ABN AMRO MuniTops Certificates Trust, Series 2006-49) (MBIA Insured), | 10,375,000 | 10,375,000 |
| 75 |
UBS RMA New York Municipal Money Fund
Statement of net assets—December 31, 2007 (unaudited)
| Face amount | Value | |||||||
| Municipal bonds and notes—(continued) | ||||||||
Metropolitan Transportation Authority Commuter Facilities Revenue, | $1,800,000 | $1,828,846 | ||||||
Series B (MBIA Insured), | 3,100,000 | 3,149,679 | ||||||
Metropolitan Transportation Authority Dedicated Tax Fund, Series D-1 (AMBAC Insured), | 2,250,000 | 2,250,000 | ||||||
Metropolitan Transportation Authority Revenue (Citigroup Eagle Class A Certificates 20070074) (FSA Insured), | 9,850,000 | 9,850,000 | ||||||
Metropolitan Transportation Authority Revenue (Citigroup Eagle Class A Certificates 20070095) (FSA Insured), | 6,000,000 | 6,000,000 | ||||||
Metropolitan Transportation Authority Revenue (JP Morgan PUTTERs, Series 1659) (FSA Insured), | 6,790,000 | 6,790,000 | ||||||
Mineola Union Free School District Tax Anticipation Notes, | 16,500,000 | 16,538,649 | ||||||
New York City Housing Development Corp. Multi-Family Mortgage Revenue (The Crest), Series A, | 33,500,000 | 33,500,000 | ||||||
New York City Housing Development Corp. Multi-Family Rental Housing (Queenswood Apartments), Series A (FHLMC Insured), | 6,500,000 | 6,500,000 | ||||||
New York City Industrial Development Agency Civic Facility Revenue (Allen Stevenson School), | 5,455,000 | 5,455,000 | ||||||
New York City Industrial Development Agency Civic Facility Revenue (Center for Jewish History Project), | 21,585,000 | 21,585,000 | ||||||
New York City Industrial Development Agency Civic Facility Revenue (Convent Sacred Heart School), | 3,150,000 | 3,150,000 | ||||||
New York City Industrial Development Agency Civic Facility Revenue (Ethical Culture School Project), Series A (XLCA Insured), | 5,300,000 | 5,300,000 |
| 76 |
UBS RMA New York Municipal Money Fund
Statement of net assets—December 31, 2007 (unaudited)
| Face amount | Value | |||||||
| Municipal bonds and notes—(continued) | ||||||||
New York City Industrial Development Agency Civic Facility Revenue Refunding & Improvement (American Civil Project), | $7,300,000 | $7,300,000 | ||||||
New York City Industrial Development Agency Revenue (Liberty 1 Bryant Park LLC), | 4,800,000 | 4,800,000 | ||||||
Series B, | 31,050,000 | 31,050,000 | ||||||
New York City Industrial Development Agency Revenue (Liberty 123 Washington Project), | 32,500,000 | 32,500,000 | ||||||
New York City (Morgan Stanley Floater Certificates), Series 1973, | 8,845,000 | 8,845,000 | ||||||
New York City Municipal Finance Authority Water & Sewer Systems Revenue (Second General Resolution), Series CC-1, | 350,000 | 350,000 | ||||||
New York City Municipal Finance Authority Water & Sewer Systems Revenue, Series C (ABN AMRO MuniTops Certificates Trust, Series 2006-3) (XLCA Insured), | 8,335,000 | 8,335,000 | ||||||
New York City Municipal Water Authority (Bank of America Austin Certificates, Series 2007-132), 3.470%, VRD(1),(2) | 6,000,000 | 6,000,000 | ||||||
New York City Municipal Water Finance Authority Water & Sewer Systems Revenue (ABN AMRO MuniTops Certificates Trust, Series 2004-46) (FSA Insured), | 12,000,000 | 12,000,000 | ||||||
New York City Municipal Water Finance Authority Water & Sewer Systems Revenue (Second General Resolution), | 7,100,000 | 7,100,000 | ||||||
Series AA-2, | 1,225,000 | 1,225,000 | ||||||
New York City Municipal Water Finance Authority Water & Sewer Systems Revenue, Subseries C-1, | 6,500,000 | 6,500,000 |
| 77 |
UBS RMA New York Municipal Money Fund
Statement of net assets—December 31, 2007 (unaudited)
| Face amount | Value | |||||||
| Municipal bonds and notes—(continued) | ||||||||
New York City, | $950,000 | $950,000 | ||||||
Series E, | 2,000,000 | 2,033,340 | ||||||
Series E, Subseries E-2, | 880,000 | 880,000 | ||||||
Series F-3, | 9,000,000 | 9,000,000 | ||||||
Series I, Subseries I-3, | 700,000 | 700,000 | ||||||
Series I, Subseries I-5, | 2,600,000 | 2,600,000 | ||||||
Series I, Subseries I-6, | 3,425,000 | 3,425,000 | ||||||
Subseries A-4, | 700,000 | 700,000 | ||||||
Subseries A-4, | 1,900,000 | 1,900,000 | ||||||
Subseries A-5, | 4,520,000 | 4,520,000 | ||||||
Subseries A-6 (FSA Insured), | 1,050,000 | 1,050,000 | ||||||
Subseries E-4, | 7,900,000 | 7,900,000 | ||||||
Subseries E-5, | 3,660,000 | 3,660,000 | ||||||
Subseries H-1, | 2,450,000 | 2,450,000 | ||||||
Subseries H-2, | 1,400,000 | 1,400,000 | ||||||
Subseries H-2, | 100,000 | 100,000 | ||||||
New York City Transitional Finance Authority (Future Tax Secured), Subseries C-5, | 900,000 | 900,000 | ||||||
New York City Transitional Finance Authority (New York City Recovery), Series 3, Subseries 3-E, | 9,075,000 | 9,075,000 | ||||||
New York City Transitional Finance Authority Revenue (Depfa Floating Certificates, Series 3000), | 4,000,000 | 4,000,000 |
| 78 |
UBS RMA New York Municipal Money Fund
Statement of net assets—December 31, 2007 (unaudited)
| Face amount | Value | |||||||
| Municipal bonds and notes—(continued) | ||||||||
New York City Transitional Finance Authority Revenue (New York City Recovery), Series 1, Subseries 2-C, 3.670%, VRD | $4,450,000 | $4,450,000 | ||||||
New York City Trust for Cultural Resources Revenue (Museum of Broadcasting), | 9,215,000 | 9,215,000 | ||||||
Oneida County Industrial Development Agency Revenue Civic Facilities (Hamilton College) | 13,915,000 | 13,915,000 | ||||||
Onondaga County Industrial Development Agency Civic Facilities Revenue (Syracuse Home | 7,000,000 | 7,000,000 | ||||||
Otsego County Industrial Development Agency Civic Facilities Revenue (Mary Imogene Bassett), Series A, 3.430%, VRD | 4,375,000 | 4,375,000 | ||||||
Port Authority of New York and New Jersey Special Obligation Revenue (Versatile Structure Obligation), Series 3, | 7,975,000 | 7,975,000 | ||||||
Series 5, | 7,300,000 | 7,300,000 | ||||||
Riverhead Industrial Development Agency Civic Facilities Revenue (Central Suffolk Hospital Project), | 4,000,000 | 4,000,000 | ||||||
Riverhead Industrial Development Agency Civic Facilities Revenue Refunding (Central Suffolk Hospital), Series C, | 8,835,000 | 8,835,000 | ||||||
Rockland County Industrial Development Agency Civic Facilities Revenue (Rockland Jewish Community Center), | 7,000,000 | 7,000,000 | ||||||
Rockville Centre Union Free School District Tax Anticipation Notes, | 6,000,000 | 6,014,227 | ||||||
Saratoga County Industrial Development Agency Civic Facilities Revenue (Saratoga Hospital Project), Series A, | 3,955,000 | 3,955,000 | ||||||
Suffolk County Tax Anticipation Notes, | 26,000,000 | 26,109,720 |
| 79 |
UBS RMA New York Municipal Money Fund
Statement of net assets—December 31, 2007 (unaudited)
| Face amount | Value | |||||||
| Municipal bonds and notes—(concluded) | ||||||||
Suffolk County Water Authority Bond Anticipation Notes, | $18,700,000 | $18,700,000 | ||||||
Tompkins County Industrial Development Agency Revenue (Civic Facilities Cornell), Series A, | 16,080,000 | 16,080,000 | ||||||
Triborough Bridge & Tunnel Authority Revenue (Citigroup ROCS, Series RR II R-11225) (AMBAC Insured), | 6,500,000 | 6,500,000 | ||||||
Triborough Bridge & Tunnel Authority Revenue (General Purpose), Series C (AMBAC Insured), | 17,400,000 | 17,400,000 | ||||||
Triborough Bridge & Tunnel Authority Revenue (JP Morgan PUTTERs), | 7,920,000 | 7,920,000 | ||||||
Series 1916, | 7,595,000 | 7,595,000 | ||||||
Triborough Bridge & Tunnel Authority Revenue Refunding (ABN AMRO MuniTops Certificates Trust, Series 2002-31) (MBIA Insured), | 19,650,000 | 19,650,000 | ||||||
Triborough Bridge & Tunnel Authority Revenue Refunding, Subseries B-3, | 4,600,000 | 4,600,000 | ||||||
Triborough Bridge & Tunnel Authority Revenue, Series A, | 15,000,000 | 15,000,000 | ||||||
| Total municipal bonds and notes (cost—$998,077,010) | 998,077,010 | |||||||
| Tax-exempt commercial paper—10.14% | ||||||||
New York City General Obligation Bonds | 10,500,000 | 10,500,000 | ||||||
New York City Municipal Water Authority | 7,000,000 | 7,000,000 | ||||||
New York State Environmental Quality | 4,500,000 | 4,500,000 | ||||||
| 80 |
UBS RMA New York Municipal Money Fund
Statement of net assets—December 31, 2007 (unaudited)
| Face amount | Value | ||||||||
| Tax-exempt commercial paper—(concluded) | |||||||||
New York State Power Authority | $2,500,000 | $2,500,000 | |||||||
3.240%, due 01/09/08 | 13,000,000 | 13,000,000 | |||||||
3.280%, due 01/10/08 | 10,300,000 | 10,300,000 | |||||||
3.340%, due 01/10/08 | 1,662,000 | 1,662,000 | |||||||
3.470%, due 01/10/08 | 2,000,000 | 2,000,000 | |||||||
3.500%, due 01/10/08 | 9,000,000 | 9,000,000 | |||||||
3.330%, due 01/17/08 | 3,500,000 | 3,500,000 | |||||||
2.970%, due 01/18/08 | 10,805,000 | 10,805,000 | |||||||
Metropolitan Transportation Authority | 10,000,000 | 10,000,000 | |||||||
Port Authority of New York & New Jersey | 13,875,000 | 13,875,000 | |||||||
2.840%, due 03/10/08 | 11,035,000 | 11,035,000 | |||||||
| Total tax-exempt commercial paper (cost—$109,677,000) | 109,677,000 | ||||||||
| Number of shares | |||||||||
| Money market fund(4)—1.02% | |||||||||
BlackRock Liquidity Fund New York Municipal Fund Portfolio Institutional Class, | 11,000,000 | 11,000,000 | |||||||
| Total investments (cost—$1,118,754,010 which approximates cost for federal income tax purposes)—103.50% | 1,118,754,010 | ||||||||
| Liabilities in excess of other assets—(3.50)% | (37,879,067 | ) | |||||||
| Net assets (applicable to 1,080,989,498 shares of beneficial interest outstanding equivalent to $1.00 per share)—100.00% | $1,080,874,943 | ||||||||
(1) | Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities, which represent 18.57% of net assets as of December 31, 2007, 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) | Security purchased on a when-issued basis. When issued refers to a transaction made conditionally because a security, although authorized, has not yet been issued. |
(4) | Rate shown reflects yield at December 31, 2007. |
| 81 |
UBS RMA New York Municipal Money Fund
Statement of net assets—December 31, 2007 (unaudited)
| AMBAC | American Municipal Bond Assurance Corporation |
| CIFG | CDC IXIS Financial Guaranty |
| FHLMC | Federal Home Loan Mortgage Corporation |
| FNMA | Federal National Mortgage Association |
| FSA | Financial Security Assurance |
| MBIA | Municipal Bond Investors Assurance |
| PUTTERs | Puttable Tax-Exempt Receipts |
| ROCS | Reset Option Certificates |
| VRD | Variable rate demand notes are payable on demand. The interest rates shown are the current rates as of December 31, 2007 and reset periodically. |
| XLCA | XL Capital Assurance |
Weighted average maturity—26 days
See accompanying notes to financial statements
| 82 |
UBS RMA New Jersey Municipal Money Fund
Statement of net assets—December 31, 2007 (unaudited)
| Face amount | Value | |||||||
| Municipal bonds and notes—87.46% | ||||||||
New Jersey Economic Development Authority Manufacturing Facilities Revenue (Commerce Center Project), | $320,000 | $320,000 | ||||||
New Jersey Economic Development Authority Pollution Control Revenue Refunding (Exxon Project), | 1,150,000 | 1,150,000 | ||||||
New Jersey Economic Development Authority Revenue (Bayonne Project Improvement), | 2,375,000 | 2,375,000 | ||||||
Series B, | 2,790,000 | 2,790,000 | ||||||
Series C, | 10,150,000 | 10,150,000 | ||||||
New Jersey Economic Development Authority Revenue (RFC Container Co., Inc.), | 650,000 | 650,000 | ||||||
New Jersey Economic Development Authority Revenue (Crowley Liner Services Project), | 4,095,000 | 4,095,000 | ||||||
New Jersey Economic Development Authority Revenue (Hun School Princeton Project), | 855,000 | 855,000 | ||||||
New Jersey Economic Development Authority Revenue (JP Morgan PUTTERs, Series 853) (FSA Insured), 3.460%, VRD(2),(3) | 1,775,000 | 1,775,000 | ||||||
New Jersey Economic Development Authority Revenue (Kenwood USA Corp. Project), | 405,000 | 405,000 | ||||||
New Jersey Economic Development Authority Revenue (Lawrenceville School Project), | 3,000,000 | 3,000,000 | ||||||
Series B, | 7,900,000 | 7,900,000 | ||||||
New Jersey Economic Development Authority Revenue (MZR Real Estate Project), Series A, | 2,845,000 | 2,845,000 | ||||||
New Jersey Economic Development Authority Revenue (Republic Services, Inc. Project), | 2,910,000 | 2,910,000 |
| 83 |
UBS RMA New Jersey Municipal Money Fund
Statement of net assets—December 31, 2007 (unaudited)
| Face amount | Value | |||||||
| Municipal bonds and notes—(continued) | ||||||||
New Jersey Economic Development Authority Revenue (Stolthaven Project), Series A, | $5,105,000 | $5,105,000 | ||||||
New Jersey Economic Development Authority Revenue (Thermal Energy Limited Partnership), | 1,440,000 | 1,440,000 | ||||||
New Jersey Economic Development Authority Revenue Refunding (El Dorado Terminals), Series B, | 500,000 | 500,000 | ||||||
New Jersey Economic Development Authority Revenue Refunding (First Mortgage Franciscan), | 600,000 | 600,000 | ||||||
New Jersey Economic Development Authority School Revenue (Blair Academy Project), | 300,000 | 300,000 | ||||||
New Jersey Economic Development Authority School Revenue (Facilities Construction), | 7,510,000 | 7,510,000 | ||||||
Subseries R-3, | 10,450,000 | 10,450,000 | ||||||
New Jersey Economic Development Authority Speciality Facilities Revenue (Port Newark Container LLC), | 3,200,000 | 3,200,000 | ||||||
New Jersey Economic Development Authority Transportation, (Floating Rate-TRS, Series N-10 Regulation D) (AMBAC Insured), | 9,150,000 | 9,150,000 | ||||||
New Jersey Educational Facilities Authority (Princeton University), | 3,813,000 | 3,813,000 | ||||||
Series B, | 9,613,000 | 9,613,000 | ||||||
New Jersey Educational Facilities Authority Revenue Refunding (Institutional Advanced Study), | 8,300,000 | 8,300,000 | ||||||
New Jersey Health Care Facilities Authority (Community Hospital Group), | 4,555,000 | 4,555,000 |
| 84 |
UBS RMA New Jersey Municipal Money Fund
Statement of net assets—December 31, 2007 (unaudited)
| Face amount | Value | |||||||
| Municipal bonds and notes—(continued) | ||||||||
New Jersey Health Care Facilities Authority (Robert Wood Johnson University), | $2,585,000 | $2,585,000 | ||||||
New Jersey Health Care Facilities Authority (St. Peter’s Hospital), Series B, | 1,800,000 | 1,800,000 | ||||||
New Jersey Health Care Facilities Financing Authority Revenue (Childrens Specialized), Series B, | 500,000 | 500,000 | ||||||
New Jersey Health Care Facilities Financing Authority Revenue (Computer Program), | 5,000,000 | 5,000,000 | ||||||
Subseries A-2, | 8,220,000 | 8,220,000 | ||||||
Subseries A-3, | 610,000 | 610,000 | ||||||
Subseries A-5, | 1,660,000 | 1,660,000 | ||||||
Subseries A-6, | 570,000 | 570,000 | ||||||
New Jersey Health Care Facilities Financing Authority Revenue (Matheny School Hospital), Series A-2, | 2,300,000 | 2,300,000 | ||||||
New Jersey Health Care Facilities Financing Authority Revenue, | 7,690,000 | 7,690,000 | ||||||
Series A4, | 1,180,000 | 1,180,000 | ||||||
New Jersey Health Care Facilities Financing Authority Revenue (Southern Ocean County Hospital), | 3,620,000 | 3,620,000 | ||||||
New Jersey Health Care Facilities Financing Authority Revenue (Virtua Health), | 7,235,000 | 7,235,000 | ||||||
New Jersey Health Care Facilities Financing Authority (St. Barnabas Health Care System), Series A, | 3,040,000 | 3,040,000 |
| 85 |
UBS RMA New Jersey Municipal Money Fund
Statement of net assets—December 31, 2007 (unaudited)
| Face amount | Value | |||||||
| Municipal bonds and notes—(continued) | ||||||||
New Jersey Sports & Exposition Authority, | $923,000 | $923,000 | ||||||
Series B-2 (MBIA Insured), | 85,000 | 85,000 | ||||||
New Jersey State Housing & Mortgage Finance Agency Multi Family Revenue, Series H (FSA Insured), 3.400%, VRD | 1,165,000 | 1,165,000 | ||||||
New Jersey State Housing & Mortgage Finance Agency Revenue (Single Family Housing), Series N, | 1,470,000 | 1,470,000 | ||||||
New Jersey State Tax & Revenue Anticipation Notes, | 2,000,000 | 2,008,204 | ||||||
New Jersey State Transportation Trust Fund Authority (JP Morgan PUTTERs, Series 1144) (FSA Insured), | 2,295,000 | 2,295,000 | ||||||
New Jersey State Transportation Trust Fund Authority (Transportation System), | 1,500,000 | 1,511,885 | ||||||
Series C, | 1,200,000 | 1,208,768 | ||||||
New Jersey State Turnpike Authority Turnpike Revenue, Series C-1 (FSA Insured), | 4,500,000 | 4,500,000 | ||||||
New Jersey Turnpike Authority Revenue, | 7,400,000 | 7,400,000 | ||||||
East Brunswick Township Bond Anticipation Notes, | 4,000,000 | 4,003,342 | ||||||
Egg Harbor Township Bond Anticipation Notes, | 5,315,000 | 5,338,371 | ||||||
Essex County Improvement Authority Revenue | 600,000 | 600,000 | ||||||
Linden Bond Anticipation Notes, | 1,914,000 | 1,916,250 |
| 86 |
UBS RMA New Jersey Municipal Money Fund
Statement of net assets—December 31, 2007 (unaudited)
| Face amount | Value | |||||||
| Municipal bonds and notes—(concluded) | ||||||||
Port Authority of New York and New Jersey | $3,075,000 | $3,075,000 | ||||||
Series 2092 (FSA Insured), | 3,000,000 | 3,000,000 | ||||||
Port Authority of New York and New Jersey Special Obligation Revenue (Versatile Structure Obligation), | 800,000 | 800,000 | ||||||
Series 2, | 6,300,000 | 6,300,000 | ||||||
Series 3, | 4,985,000 | 4,985,000 | ||||||
Series 5, | 3,200,000 | 3,200,000 | ||||||
Ridgewood Bond Anticipation Notes, | 4,856,000 | 4,867,588 | ||||||
Rutgers State University Refunding, Series A, | 12,140,000 | 12,140,000 | ||||||
Salem County Improvement Authority Revenue (Friends Home Woodstown, Inc.), | 495,000 | 495,000 | ||||||
Union County Industrial Pollution Control Financing Authority Pollution Control Revenue Refunding (Exxon Project), | 11,400,000 | 11,400,000 | ||||||
Washington Township Morris County Bond Anticipation Notes, | 2,700,000 | 2,706,873 | ||||||
| Total municipal bonds and notes (cost—$239,160,281) | 239,160,281 | |||||||
| Tax-exempt commercial paper—1.51% | ||||||||
New Jersey Economic Development Authority Revenue (Keystone Energy Service Co.), | 3,000,000 | 3,000,000 | ||||||
Port Authority of New York & New Jersey, | 1,140,000 | 1,140,000 | ||||||
| Total tax-exempt commercial paper (cost—$4,140,000) | 4,140,000 | |||||||
| 87 |
UBS RMA New Jersey Municipal Money Fund
Statement of net assets—December 31, 2007 (unaudited)
| Number of shares | Value | |||||||
| Money market fund(4)—1.83% | ||||||||
BlackRock Liquidity Fund New Jersey Municipal Fund Portfolio Institutional Class, | 5,000,000 | $5,000,000 | ||||||
| Total investments (cost—$248,300,281 which approximates cost for federal income tax purposes)—90.80% | 248,300,281 | |||||||
| Other assets in excess of liabilities—9.20% | 25,163,250 | |||||||
| Net assets (applicable to 273,449,473 shares of beneficial interest outstanding equivalent to $1.00 per share)—100.00% | $273,463,531 |
(1) | Securities subject to Alternative Minimum Tax. |
(2) | Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities, which represent 7.06% of net assets as of December 31, 2007, are considered liquid and may be resold in transactions exempt from registration, normally to qualified institutional buyers. |
(3) | 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). |
(4) | Rate shown reflects yield at December 31, 2007. |
| ACES | Adjustable Convertible Extendable Securities |
| AMBAC | American Municipal Bond Assurance Corporation |
| FGIC | Financial Guaranty Insurance Company |
| FSA | Financial Security Assurance |
| MBIA | Municipal Bond Investors Assurance |
| PUTTERs | Puttable Tax-Exempt Receipts |
| VRD | Variable rate demand notes are payable on demand. The interest rates shown are the current rates as of December 31, 2007 and reset periodically. |
Weighted average maturity—20 days
See accompanying notes to financial statements
| 88 |
UBS RMA
Understanding your funds’ 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, 2007 to December 31, 2007.
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 entitled “Expenses paid during period” to estimate the expenses you paid on your account during this period.
Hypothetical example for comparison purposes
The second line 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 the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in a Fund and other funds.
To do so, compare these 5% hypothetical examples with the 5% hypothetical examples that appear in the shareholder reports of other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs. Therefore, the second line of the table for each Fund is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds, if those funds impose transactional costs—for example, exchange fees. In addition, if those transactional costs were included, your costs for those other funds would have been higher.
| * | Collectively refers to UBS RMA Money Market Portfolio, UBS RMA U.S. Government Portfolio, UBS RMA Tax-Free Fund Inc., UBS RMA California Municipal Money Fund, UBS RMA New York Municipal Money Fund and UBS RMA New Jersey Municipal Money Fund. |
| 89 |
UBS RMA
Understanding your funds’ expenses (unaudited) (continued)
The example does 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, 2007 | Ending account value December 31, 2007 | Expenses paid during period(1) 07/01/07 to 12/31/07 | ||||
| Actual | $1,000.00 | $1,023.20 | $2.90 | |||
| Hypothetical (5% annual return before expenses) | 1,000.00 | 1,022.27 | 2.90 |
(1) | Expenses are equal to the Portfolio’s annualized net expense ratio of 0.57%, multiplied by the average account value over the period, multiplied by 184 divided by 366 (to reflect the one-half year period). |
UBS RMA U.S. Government Portfolio
| Beginning account value July 1, 2007 | Ending account value December 31, 2007 | Expenses paid during period(1) 07/01/07 to 12/31/07 | ||||
| Actual | $1,000.00 | $1,019.80 | $3.05 | |||
| Hypothetical (5% annual return before expenses) | 1,000.00 | 1,022.12 | 3.05 |
(1) | Expenses are equal to the Portfolio’s annualized expense ratio of 0.60%, multiplied by the average account value over the period, multiplied by 184 divided by 366 (to reflect the one-half year period). |
UBS RMA Tax-Free Fund Inc.
| Beginning account value July 1, 2007 | Ending account value December 31, 2007 | Expenses paid 07/01/07 to 12/31/07 | ||||
| Actual | $1,000.00 | $1,015.30 | $2.94 | |||
| Hypothetical (5% annual return before expenses) | 1,000.00 | 1,022.22 | 2.95 |
(1) | Expenses are equal to the Fund’s annualized expense ratio of 0.58%, multiplied by the average account value over the period, multiplied by 184 divided by 366 (to reflect the one-half year period). |
| 90 |
UBS RMA
Understanding your funds’ expenses (unaudited) (concluded)
UBS RMA California Municipal Money Fund
| Beginning account value July 1, 2007 | Ending account value December 31, 2007 | Expenses paid 07/01/07 to 12/31/07 | ||||
| Actual | $1,000.00 | $1,014.70 | $3.04 | |||
| Hypothetical (5% annual return before expenses) | 1,000.00 | 1,022.12 | 3.05 |
(1) | Expenses are equal to the Fund’s annualized expense ratio of 0.60%, multiplied by the average account value over the period, multiplied by 184 divided by 366 (to reflect the one-half year period). |
UBS RMA New York Municipal Money Fund
| Beginning account value July 1, 2007 | Ending account value December 31, 2007 | Expenses paid 07/01/07 to 12/31/07 | ||||
| Actual | $1,000.00 | $1,014.80 | $3.24 | |||
| Hypothetical (5% annual return before expenses) | 1,000.00 | 1,021.92 | 3.25 |
(1) | Expenses are equal to the Fund’s annualized expense ratio of 0.64%, multiplied by the average account value over the period, multiplied by 184 divided by 366 (to reflect the one-half year period). |
UBS RMA New Jersey Municipal Money Fund
| Beginning account value July 1, 2007 | Ending account value December 31, 2007 | Expenses paid 07/01/07 to 12/31/07 | ||||
| Actual | $1,000.00 | $1,013.90 | $3.64 | |||
| Hypothetical (5% annual return before expenses) | 1,000.00 | 1,021.52 | 3.66 |
(1) | Expenses are equal to the Fund’s annualized expense ratio of 0.72%, multiplied by the average account value over the period, multiplied by 184 divided by 366 (to reflect the one-half year period). |
| 91 |
UBS RMA
Statement of operations
| For the six months ended December 31, 2007 (unaudited) | |||||
Money Market | U.S. Government Portfolio | ||||
| Investment income: | |||||
| Interest | $360,150,576 | $29,559,245 | |||
| Securities lending income (includes $245,530; $0; $0; $0; $0; $0, respectively, earned from an affiliated entity) | 959,220 | 140,297 | |||
| 361,109,796 | 29,699,542 | ||||
| Expenses: | |||||
| Investment advisory and administration fees | 35,248,586 | 2,793,633 | |||
| Service fees | 8,812,147 | 833,855 | |||
| Transfer agency and related services fees | 3,409,011 | 147,188 | |||
| Custody and accounting fees | 986,960 | 93,392 | |||
| Insurance expense | 242,892 | 19,642 | |||
| Reports and notices to shareholders | 206,046 | 8,762 | |||
| Federal and state registration fees | 189,074 | 38,357 | |||
| Directors’/Trustees’ fees | 72,044 | 11,522 | |||
| Professional fees | 58,984 | 56,269 | |||
| Interest expense | — | — | |||
| Other expenses | 32,814 | 6,221 | |||
| 49,258,558 | 4,008,841 | ||||
| Less: Fee waivers by investment advisor and administrator | (8,964,686 | ) | — | ||
| Net expenses | 40,293,872 | 4,008,841 | |||
| Net investment income | 320,815,924 | 25,690,701 | |||
| Net realized gains from investment activities | 701,237 | 183,210 | |||
| Net increase in net assets resulting from operations | $321,517,161 | $25,873,911 | |||
See accompanying notes to financial statements
| 92 |
| For the six months ended December 31, 2007 (unaudited) | ||||||
| Tax-Free Fund | California Municipal Money Fund | New York Municipal Money Fund | New Jersey Municipal Money Fund | |||
| $100,986,517 | $22,949,296 | $16,970,566 | $3,724,636 | |||
— | — | — | — | |||
| 100,986,517 | 22,949,296 | 16,970,566 | 3,724,636 | |||
| 11,037,140 | 2,757,372 | 2,111,267 | 485,371 | |||
| 3,518,133 | 821,264 | 596,922 | 129,434 | |||
| 957,083 | 170,675 | 148,117 | 47,893 | |||
| 394,031 | 91,982 | 66,855 | 15,101 | |||
| 84,848 | 20,401 | 13,545 | 3,349 | |||
| 49,011 | 10,896 | 9,116 | 4,015 | |||
| 146,251 | 17,338 | 17,403 | 19,859 | |||
| 30,334 | 12,401 | 10,327 | 7,467 | |||
| 63,419 | 57,784 | 57,595 | 62,338 | |||
| 11,607 | — | — | — | |||
| 29,142 | 6,697 | 5,620 | 4,851 | |||
| 16,320,999 | 3,966,810 | 3,036,767 | 779,678 | |||
| — | — | — | — | |||
| 16,320,999 | 3,966,810 | 3,036,767 | 779,678 | |||
| 84,665,518 | 18,982,486 | 13,933,799 | 2,944,958 | |||
| 250,049 | 60,525 | 8,232 | 10,646 | |||
| $84,915,567 | $19,043,011 | $13,942,031 | $2,955,604 | |||
| 93 |
UBS RMA
Statement of changes in net assets
| For the six months ended December 31, 2007 (unaudited) | For the year ended June 30, 2007 | |||||
| UBS RMA Money Market Portfolio | ||||||
| From operations: | ||||||
| Net investment income | $320,815,924 | $591,821,888 | ||||
| Net realized gains from investment activities | 701,237 | 476,854 | ||||
| Net increase in net assets resulting from operations | 321,517,161 | 592,298,742 | ||||
| Dividends to shareholders from: | ||||||
| Net investment income | (320,815,924 | ) | (591,821,888 | ) | ||
| Net increase in net assets from capital share transactions | 2,888,625,928 | 2,510,236,899 | ||||
| Net increase in net assets | 2,889,327,165 | 2,510,713,753 | ||||
| Net assets: | ||||||
| Beginning of period | 13,138,665,784 | 10,627,952,031 | ||||
| End of period | $16,027,992,949 | $13,138,665,784 | ||||
| Accumulated undistributed net investment income | $— | $— | ||||
| UBS RMA U.S. Government Portfolio | ||||||
| From operations: | ||||||
| Net investment income | $25,690,701 | $45,437,028 | ||||
| Net realized gains from investment activities | 183,210 | 71,177 | ||||
| Net increase in net assets resulting from operations | 25,873,911 | 45,508,205 | ||||
| Dividends to shareholders from: | ||||||
| Net investment income | (25,690,701 | ) | (45,437,028 | ) | ||
| Net increase in net assets from capital share transactions | 587,507,875 | 181,669,807 | ||||
| Net increase in net assets | 587,691,085 | 181,740,984 | ||||
| Net assets: | ||||||
| Beginning of period | 1,027,190,904 | 845,449,920 | ||||
| End of period | $1,614,881,989 | $1,027,190,904 | ||||
| Accumulated undistributed net investment income | $— | $— | ||||
See accompanying notes to financial statements
| 94 |
UBS RMA
Statement of changes in net assets
| For the six months ended December 31, 2007 (unaudited) | For the year ended June 30, 2007 | |||||
| UBS RMA Tax-Free Fund | ||||||
| From operations: | ||||||
| Net investment income | $84,665,518 | $135,538,846 | ||||
| Net realized gain (loss) from investment activities | 250,049 | (15,285 | ) | |||
| Net increase in net assets resulting from operations | 84,915,567 | 135,523,561 | ||||
| Dividends to shareholders from: | ||||||
| Net investment income | (84,665,518 | ) | (135,538,846 | ) | ||
| Net increase in net assets from capital share transactions | 1,419,802,810 | 1,337,547,818 | ||||
| Net increase in net assets | 1,420,052,859 | 1,337,532,533 | ||||
| Net assets: | ||||||
| Beginning of period | 4,902,889,228 | 3,565,356,695 | ||||
| End of period | $6,322,942,087 | $4,902,889,228 | ||||
| Accumulated undistributed net investment income | $— | $— | ||||
| UBS RMA California Municipal Money Fund | ||||||
| From operations: | ||||||
| Net investment income | $18,982,486 | $31,364,664 | ||||
| Net realized gains from investment activities | 60,525 | 1,374 | ||||
| Net increase in net assets resulting from operations | 19,043,011 | 31,366,038 | ||||
| Dividends to shareholders from: | ||||||
| Net investment income | (18,982,486 | ) | (31,364,664 | ) | ||
| Net increase in net assets from beneficial interest transactions | 240,455,153 | 287,062,299 | ||||
| Net increase in net assets | 240,515,678 | 287,063,673 | ||||
| Net assets: | ||||||
| Beginning of period | 1,228,687,531 | 941,623,858 | ||||
| End of period | $1,469,203,209 | $1,228,687,531 | ||||
| Accumulated undistributed net investment income | $— | $— | ||||
See accompanying notes to financial statements
| 95 |
UBS RMA
Statement of changes in net assets
| For the six months ended December 31, 2007 (unaudited) | For the year ended June 30, 2007 | |||||
| UBS RMA New York Municipal Money Fund | ||||||
| From operations: | ||||||
| Net investment income | $13,933,799 | $21,200,494 | ||||
| Net realized gains from investment activities | 8,232 | 1,714 | ||||
| Net increase in net assets resulting from operations | 13,942,031 | 21,202,208 | ||||
| Dividends to shareholders from: | ||||||
| Net investment income | (13,933,799 | ) | (21,200,494 | ) | ||
| Net increase in net assets from beneficial interest transactions | 248,276,576 | 219,892,774 | ||||
| Net increase in net assets | 248,284,808 | 219,894,488 | ||||
| Net assets: | ||||||
| Beginning of period | 832,590,135 | 612,695,647 | ||||
| End of period | $1,080,874,943 | $832,590,135 | ||||
| Accumulated undistributed net investment income | $— | $— | ||||
| UBS RMA New Jersey Municipal Money Fund | ||||||
| From operations: | ||||||
| Net investment income | $2,944,958 | $4,947,165 | ||||
| Net realized gain from investment activities | 10,646 | — | ||||
| Net increase in net assets resulting from operations | 2,955,604 | 4,947,165 | ||||
| Dividends to shareholders from: | ||||||
| Net investment income | (2,944,958 | ) | (4,947,165 | ) | ||
| Net increase in net assets from beneficial interest transactions | 93,727,557 | 45,085,845 | ||||
| Net increase in net assets | 93,738,203 | 45,085,845 | ||||
| Net assets: | ||||||
| Beginning of period | 179,725,328 | 134,639,483 | ||||
| End of period | $273,463,531 | $179,725,328 | ||||
| Accumulated undistributed net investment income | $— | $— | ||||
See accompanying notes to financial statements
| 96 |
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| 97 |
UBS RMA Money Market Portfolio
Financial highlights
Selected data for a share of common stock outstanding throughout each period is presented below:
| For the six months ended December 31, 2007 (unaudited) | |||
| Net asset value, beginning of period | $1.00 | ||
| Net investment income | 0.023 | ||
| Dividends from net investment income | (0.023 | ) | |
| Distributions from net realized gains from investment activities | — | ||
| Total dividends and distributions | (0.023 | ) | |
| Net asset value, end of period | $1.00 | ||
| Total investment return(2) | 2.32 | % | |
| Ratios/supplemental data: | |||
| Net assets, end of period (000’s) | $16,027,993 | ||
| Expenses to average net assets, net of fee waivers by advisor | 0.57 | %(3) | |
| Expenses to average net assets, before fee waivers by advisor | 0.70 | %(3) | |
| Net investment income to average net assets | 4.55 | %(3) |
(1) | Amount of distribution paid represents less than $0.0005 per share. |
(2) | 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. |
(3) | Annualized. |
(4) | During the period ended August 1, 2004 through June 30, 2005, UBS Financial Services Inc. waived a portion of its advisory and administration fees. The ratio excluding the waiver is the same since the fee waiver represents less than 0.005%. |
See accompanying notes to financial statements
| 98 |
For the years ended June 30, | |||||||||||||
| 2007 | 2006 | 2005 | 2004 | 2003 | |||||||||
| $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | |||||||||
| 0.048 | 0.037 | 0.016 | 0.005 | 0.010 | |||||||||
| (0.048 | ) | (0.037 | ) | (0.016 | ) | (0.005 | ) | (0.010 | ) | ||||
| — | — | (0.000 | ))(1) | (0.000 | )(1) | — | |||||||
| (0.048 | ) | (0.037 | ) | (0.016 | ) | (0.005 | ) | (0.010 | ) | ||||
| $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | |||||||||
| 4.87 | % | 3.71 | % | 1.65 | % | 0.51 | % | 1.02 | % | ||||
| $13,138,666 | $10,627,952 | $10,425,878 | $12,434,286 | $21,832,875 | |||||||||
| 0.58 | % | 0.58 | % | 0.58 | %(4) | 0.60 | % | 0.61 | % | ||||
| 0.71 | % | 0.71 | % | 0.58 | % | 0.60 | % | 0.61 | % | ||||
| 4.76 | % | 3.66 | % | 1.59 | % | 0.50 | % | 1.02 | % | ||||
| 99 |
UBS RMA U.S. Government Portfolio
Financial highlights
Selected data for a share of common stock outstanding throughout each period is presented below:
| For the six months ended December 31, 2007 (unaudited) | |||
| Net asset value, beginning of period | $1.00 | ||
| Net investment income | 0.020 | ||
| Dividends from net investment income | (0.020 | ) | |
| Net asset value, end of period | $1.00 | ||
| Total investment return(1) | 1.98 | % | |
| Ratios/supplemental data: | |||
| Net assets, end of period (000’s) | $1,614,882 | ||
| Expenses to average net assets | 0.60 | %(2) | |
| Net investment income to average net assets | 3.85 | %(2) |
(1) | Total investment return is calculated assuming a $10,000 investment on the first day of each period reported, reinvestment of all dividends and other distributions, if any, at net asset value on the payable dates, and a sale at net asset value on the last day of each period reported. Total investment return for the period of less than one year has not been annualized. Returns do not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions. |
(2) | Annualized. |
See accompanying notes to financial statements
| 100 |
For the years ended June 30, | |||||||||||||
| 2007 | 2006 | 2005 | 2004 | 2003 | |||||||||
| $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | |||||||||
| 0.046 | 0.034 | 0.015 | 0.005 | 0.010 | |||||||||
| (0.046 | ) | (0.034 | ) | (0.015 | ) | (0.005 | ) | (0.010 | ) | ||||
| $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | |||||||||
| 4.67 | % | 3.49 | % | 1.50 | % | 0.48 | % | 1.00 | % | ||||
| $1,027,191 | $845,450 | $1,111,698 | $1,250,917 | $2,510,453 | |||||||||
| 0.63 | % | 0.62 | % | 0.61 | % | 0.58 | % | 0.56 | % | ||||
| 4.58 | % | 3.38 | % | 1.49 | % | 0.48 | % | 1.00 | % | ||||
| 101 |
UBS RMA Tax-Free Fund Inc.
Financial highlights
Selected data for a share of common stock outstanding throughout each period is presented below:
| For the six months ended December 31, 2007 (unaudited) | |||
| Net asset value, beginning of period | $1.00 | ||
| Net investment income | 0.015 | ||
| Dividends from net investment income | (0.015 | ) | |
| Net asset value, end of period | $1.00 | ||
| Total investment return(1) | 1.53 | % | |
| Ratios/supplemental data: | |||
| Net assets, end of period (000’s) | $6,322,942 | ||
| Expenses to average net assets | 0.58 | %(2) | |
| Net investment income to average net assets | 3.01 | %(2) |
(1) | Total investment return is calculated assuming a $10,000 investment on the first day of each period reported, reinvestment of all dividends and other distributions, if any, at net asset value on the payable dates, and a sale at net asset value on the last day of each period reported. Total investment return for the period of less than one year has not been annualized. Returns do not reflect the deduction of taxes that a shareholder could pay on Fund distributions. |
(2) | Annualized. |
See accompanying notes to financial statements
| 102 |
| For the years ended June 30, | |||||||||||||
| 2007 | 2006 | 2005 | 2004 | 2003 | |||||||||
| $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | |||||||||
| 0.030 | 0.024 | 0.012 | 0.004 | 0.007 | |||||||||
| (0.030 | ) | (0.024 | ) | (0.012 | ) | (0.004 | ) | (0.007 | ) | ||||
| $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | |||||||||
| 3.07 | % | 2.40 | % | 1.23 | % | 0.38 | % | 0.67 | % | ||||
| $4,902,889 | $3,565,357 | $3,406,614 | $2,935,936 | $3,238,850 | |||||||||
| 0.59 | % | 0.60 | % | 0.59 | % | 0.60 | % | 0.63 | % | ||||
| 3.03 | % | 2.38 | % | 1.23 | % | 0.38 | % | 0.67 | % | ||||
| 103 |
UBS RMA California Municipal Money Fund
Financial highlights
Selected data for a share of beneficial interest outstanding throughout each period is presented below:
| For the six months ended December 31, 2007 (unaudited) | |||
| Net asset value, beginning of period | $1.00 | ||
| Net investment income | 0.015 | ||
| Dividends from net investment income | (0.015 | ) | |
| Net asset value, end of period | $1.00 | ||
| Total investment return(1) | 1.47 | % | |
| Ratios/supplemental data: | |||
| Net assets, end of period (000’s) | $1,469,203 | ||
| Expenses to average net assets | 0.60 | %(2) | |
| Net investment income to average net assets | 2.89 | %(2) |
(1) | Total investment return is calculated assuming a $10,000 investment on the first day of each period reported, reinvestment of all dividends and other distributions, if any, at net asset value on the payable dates, and a sale at net asset value on the last day of each period reported. Total investment return for the period of less than one year has not been annualized. Returns do not reflect the deduction of taxes that a shareholder could pay on Fund distributions. |
(2) | Annualized. |
(3) | During the year ended June 30, 2004, UBS Financial Services Inc. waived a portion of its advisory and administration fees. The ratio excluding the waiver is the same since the fee waiver represents less than 0.005%. |
See accompanying notes to financial statements
| 104 |
| For the years ended June 30, | |||||||||||||
| 2007 | 2006 | 2005 | 2004 | 2003 | |||||||||
| $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | |||||||||
| 0.029 | 0.023 | 0.011 | 0.003 | 0.006 | |||||||||
| (0.029 | ) | (0.023 | ) | (0.011 | ) | (0.003 | ) | (0.006 | ) | ||||
| $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | |||||||||
| 2.93 | % | 2.29 | % | 1.15 | % | 0.31 | % | 0.60 | % | ||||
| $1,228,688 | $941,624 | $808,762 | $739,133 | $767,006 | |||||||||
| 0.62 | % | 0.63 | % | 0.64 | % | 0.65 | %(3) | 0.66 | % | ||||
| 2.89 | % | 2.28 | % | 1.16 | % | 0.31 | % | 0.60 | % | ||||
| 105 |
UBS RMA New York Municipal Money Fund
Financial highlights
Selected data for a share of beneficial interest outstanding throughout each period is presented below:
| For the six months ended December 31, 2007 (unaudited) | |||
| Net asset value, beginning of period | $1.00 | ||
| Net investment income | 0.015 | ||
| Dividends from net investment income | (0.015 | ) | |
| Net asset value, end of period | $1.00 | ||
| Total investment return(1) | 1.48 | % | |
| Ratios/supplemental data: | |||
| Net assets, end of period (000’s) | $1,080,875 | ||
| Expenses to average net assets | 0.64 | %(2) | |
| Net investment income to average net assets | 2.92 | %(2) |
(1) | Total investment return is calculated assuming a $10,000 investment on the first day of each period reported, reinvestment of all dividends and other distributions, if any, at net asset value on the payable dates, and a sale at net asset value on the last day of each period reported. Total investment return for the period of less than one year has not been annualized. Returns do not reflect the deduction of taxes that a shareholder could pay on Fund distributions. |
(2) | Annualized. |
(3) | During the year ended June 30, 2004, UBS Financial Services Inc. waived a portion of its advisory and administration fees. The ratio excluding the waiver is the same since the fee waiver represents less than 0.005%. |
See accompanying notes to financial statements
| 106 |
| For the years ended June 30, | |||||||||||||
| 2007 | 2006 | 2005 | 2004 | 2003 | |||||||||
| $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | |||||||||
| 0.029 | 0.023 | 0.011 | 0.003 | 0.006 | |||||||||
| (0.029 | ) | (0.023 | ) | (0.011 | ) | (0.003 | ) | (0.006 | ) | ||||
| $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | |||||||||
| 2.95 | % | 2.28 | % | 1.13 | % | 0.29 | % | 0.62 | % | ||||
| $832,590 | $612,696 | $596,071 | $562,396 | $588,851 | |||||||||
| 0.67 | % | 0.67 | % | 0.67 | % | 0.67 | %(3) | 0.67 | % | ||||
| 2.92 | % | 2.27 | % | 1.12 | % | 0.29 | % | 0.62 | % | ||||
| 107 |
UBS RMA New Jersey Municipal Money Fund
Financial highlights
Selected data for a share of beneficial interest outstanding throughout each period is presented below:
| For the six months ended December 31, 2007 (unaudited) | |||
| Net asset value, beginning of period | $1.00 | ||
| Net investment income | 0.014 | ||
| Dividends from net investment income | (0.014 | ) | |
| Net asset value, end of period | $1.00 | ||
| Total investment return(1) | 1.39 | % | |
| Ratios/supplemental data: | |||
| Net assets, end of period (000’s) | $273,464 | ||
| Expenses to average net assets | 0.72 | %(2) | |
| Net investment income to average net assets | 2.73 | %(2) |
(1) | Total investment return is calculated assuming a $10,000 investment on the first day of each period reported, reinvestment of all dividends and other distributions, if any, at net asset value on the payable dates, and a sale at net asset value on the last day of each period reported. Total investment return for the period of less than one year has not been annualized. Returns do not reflect the deduction of taxes that a shareholder could pay on Fund distributions. |
(2) | Annualized. |
(3) | During the year ended June 30, 2004, UBS Financial Services Inc. waived a portion of its advisory and administration fees. The ratio excluding the waiver is the same since the fee waiver represents less than 0.005%. |
See accompanying notes to financial statements
| 108 |
| For the years ended June 30, | |||||||||||||
| 2007 | 2006 | 2005 | 2004 | 2003 | |||||||||
| $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | |||||||||
| 0.028 | 0.021 | 0.010 | 0.002 | 0.005 | |||||||||
| (0.028 | ) | (0.021 | ) | (0.010 | ) | (0.002 | ) | (0.005 | ) | ||||
| $1.00 | $1.00 | $1.00 | $1.00 | $1.00 | |||||||||
| 2.85 | % | 2.11 | % | 1.05 | % | 0.16 | % | 0.51 | % | ||||
| $179,725 | $134,639 | $134,174 | $137,440 | $161,854 | |||||||||
| 0.75 | % | 0.81 | % | 0.79 | % | 0.76 | %(3) | 0.73 | % | ||||
| 2.82 | % | 2.10 | % | 1.02 | % | 0.15 | % | 0.50 | % | ||||
| 109 |
UBS RMA
Notes to financial statements (unaudited)
Organization and significant accounting policies
UBS RMA Money Fund Inc. (the “Corporation”) and UBS RMA Tax-Free Fund Inc. (“RMA Tax-Free”) were organized under the laws of Maryland on July 2, 1982 and are registered with the Securities and Exchange Commission under the Investment Company Act of 1940, as amended, as open-end management investment companies. RMA Tax-Free is a diversified mutual fund and the Corporation is a series mutual fund 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”) and UBS Municipal Money Market Series (“Municipal Money Market Series”) were organized under Massachusetts law by Declarations of Trust dated November 21, 1986 and September 14, 1990, respectively, and are registered with the Securities and Exchange Commission under the Investment Company Act of 1940, as amended, as open-end management investment companies. Managed Municipal Trust currently offers two non-diversified series: UBS RMA California Municipal Money Fund (“RMA California”) and UBS RMA New York Municipal Money Fund (“RMA New York”). Municipal Money Market Series currently offers one non-diversified series: UBS RMA New Jersey Municipal Money Fund (“RMA New Jersey”, and when referred together with Money Market Portfolio, U.S. Government Portfolio, RMA Tax-Free, RMA California and RMA New York, collectively, the “Funds”).
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.
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UBS RMA
Notes to financial statements (unaudited)
The preparation of financial statements in accordance with US generally accepted accounting principles requires the Funds’ management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates. The following is a summary of significant accounting policies:
Valuation and accounting for investments and investment income—Investments are valued at amortized cost, unless the Fund’s Board of Directors/Trustees (the “Board”) determines that this does not represent fair value. Periodic review and monitoring of the valuation of securities held by the Funds is performed in an effort to ensure that amortized cost approximates market value. Investment transactions are recorded on the trade date. Realized gains and losses from investment transactions are calculated using the identified cost method. Interest income is recorded on an accrual basis. Premiums are amortized and discounts are accreted as adjustments to interest income and the identified cost of investments.
In September 2006, the Financial Accounting Standards Board (“FASB”) issued Statement on Financial Accounting Standards No. 157, “Fair Value Measurements” (“FAS 157”). This standard clarifies the definition of fair value for financial reporting, establishes a framework for measuring fair value and requires additional disclosures about the use of fair value measurements. FAS 157 is effective for financial statements issued for fiscal years beginning after November 15, 2007 and interim periods within those fiscal years. As of December 31, 2007, management does not believe the adoption of FAS 157 will impact the amounts reported in the financial statements, however, additional disclosures will be required about the inputs used to develop the measurements of fair value and the effect of certain measurements reported on the Statement of operations for a fiscal period.
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 to ensure that the value, including accrued interest, is at least equal to the repurchase price. In the
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UBS RMA
Notes to financial statements (unaudited)
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 and mortgage loans) may be subject to special risks and may not have the benefit of certain protections in the event of counterparty insolvency. If the seller (or seller’s guarantor, if any) becomes insolvent, a 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, advised or sub-advised by UBS Global Asset Management (Americas) Inc. (“UBS Global 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.
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 generally accepted accounting principles. These “book/tax” differences are either considered temporary or permanent in nature. To the extent these differences are permanent in nature, such amounts are reclassified within the capital accounts based on their federal tax-basis treatment; temporary differences do not require reclassification.
Concentration of risk
The ability of the issuers of the debt securities held by the Funds to meet their obligations may be affected by economic developments, including those particular to a specific industry, country or region.
Additionally, RMA California, RMA New York and RMA New Jersey follow an investment policy of investing primarily in municipal obligations of one state 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 those Funds.
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UBS RMA
Notes to financial statements (unaudited)
Investment advisor and administrator
Each Fund’s Board has approved an investment advisory and administration contract (“Advisory Contract”) for each Fund with UBS Financial Services Inc., an indirect wholly owned subsidiary of UBS AG, under which UBS Financial Services Inc. serves as investment advisor and administrator of the Funds. In accordance with the Advisory Contract, each Fund pays UBS Financial Services Inc. an investment advisory and administration fee, which is accrued daily and paid monthly, in accordance with the following schedules:
| Average daily net assets | Annual rate | ||
| Money Market Portfolio: | |||
| All | 0.50 | %† |
| † | UBS Financial Services Inc. has agreed to waive portions of its investment advisory and administration fee for the Money Market Portfolio (the “Portfolio”) so that the fee rate is reduced to the following: up to $1.0 billion in average daily net assets—0.50%; in excess of $1.0 billion up to $1.5 billion in average daily net assets—0.44%; and over $1.5 billion in average daily net assets—0.36%. UBS Financial Services Inc. has further agreed to cap the Portfolio’s aggregate management and shareholder services fees (paid pursuant to the Portfolio’s Shareholder Services Plan) so that the total of these 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 0.375% of the Portfolio’s average daily net assets. (UBS Financial Services Inc. is waiving a portion of its advisory and administration fees to offset the shareholder services fees, and this waiver continues for as long as the Portfolio’s Shareholder Services Plan remains in effect). Accordingly, for the six months ended December 31, 2007, UBS Financial Services Inc. waived $8,964,686 of its investment advisory and administration fees from the Portfolio. At December 31, 2007, UBS Financial Services Inc. owed the Portfolio $1,707,342 for fee waivers under the above agreement. |
| Average daily net assets | Annual rate | ||
| U.S. Government Portfolio, RMA California and RMA New York: | |||
| Up to $300 million | 0.50 | % | |
| In excess of $300 million up to $750 million | 0.44 | % | |
| Over $750 million | 0.36 | % | |
| RMA Tax-Free: | |||
| Up to $1.0 billion | 0.50 | % | |
| In excess of $1.0 billion up to $1.5 billion | 0.44 | % | |
| Over $1.5 billion | 0.36 | % | |
| RMA New Jersey: | |||
| Up to $300 million | 0.45 | % | |
| In excess of $300 million up to $750 million | 0.39 | % | |
| Over $750 million | 0.31 | % | |
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UBS RMA
Notes to financial statements (unaudited)
At December 31, 2007, the Funds owed UBS Financial Services Inc. for investment advisory and administration fees as follows:
| Money Market Portfolio | $6,642,150 | |
| U.S. Government Portfolio | 552,166 | |
| RMA Tax-Free | 2,043,934 | |
| RMA California | 510,356 | |
| RMA New York | 380,569 | |
| RMA New Jersey | 97,132 |
UBS Global AM serves as sub-advisor and sub-administrator to the Funds pursuant to sub-advisory and sub-administration contracts between UBS Financial Services Inc. and UBS Global AM (each a “Sub-Advisory Contract”). In accordance with each Sub-Advisory Contract, UBS Financial Services Inc. (not the Funds) pays UBS Global AM a fee, accrued daily and paid monthly, at an annual rate of 0.08% of the respective Fund’s average daily net assets.
Additional information regarding compensation to affiliate of a board member
Effective March 1, 2005, Professor Meyer Feldberg accepted the position of senior advisor to Morgan Stanley, resulting in him becoming 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. Fund 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, 2007, 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 | $7,366,501,824 | |
| U.S. Government Portfolio | 17,085,000,000 | |
| RMA Tax-Free | 1,588,801,000 | |
| RMA California | 487,796,500 | |
| RMA New York | 231,882,000 | |
| RMA New Jersey | 44,174,500 |
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
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UBS RMA
Notes to financial statements (unaudited)
investment advisor or sub-advisor, it is believed that under normal circumstances such compensation represents a small portion of the total value of the transactions.
Shareholder service plans
UBS Global Asset Management (US) Inc. (“UBS Global 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, Money Market Portfolio, U.S. Government Portfolio, RMA Tax-Free, RMA California and RMA New York pay UBS Global AM (US) a monthly service fee, which is accrued daily and paid monthly at an annual rate of up to 0.15% of average daily net assets, and RMA New Jersey is authorized to pay at the annual rate of up to 0.12% of average daily net assets, for providing certain shareholder services. Currently, UBS Global AM (US) is compensated for providing such services at the annual rate of 0.125% of the Fund’s average daily net assets for each of those Funds except for RMA New Jersey, which pays at the annual rate of 0.12% of the Fund’s average daily net assets. At December 31, 2007, the Funds owed UBS Global AM (US) for such service fees as follows:
| Money Market Portfolio | $1,660,537 | |
| U.S. Government Portfolio | 168,785 | |
| RMA Tax-Free | 656,762 | |
| RMA California | 154,267 | |
| RMA New York | 109,258 | |
| RMA New Jersey | 25,904 |
Transfer agency related services fees
UBS Financial Services Inc. provides certain services pursuant to a delegation of authority from PFPC Inc. (“PFPC”), the Funds’ transfer agent, and was compensated for these services by PFPC, not the Funds.
For the six months ended December 31, 2007, UBS Financial Services Inc. received from PFPC, not the Funds, total transfer agency related services fees as follows:
| Money Market Portfolio | $2,066,288 | |
| U.S. Government Portfolio | 89,555 | |
| RMA Tax-Free | 640,031 | |
| RMA California | 109,621 | |
| RMA New York | 91,321 | |
| RMA New Jersey | 30,806 |
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UBS RMA
Notes to financial statements (unaudited)
Securities lending
Each Fund may lend securities up to 33 1/3% of its total assets to qualified broker-dealers or institutional investors. The loans are secured at all times by cash, 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. UBS Financial Services Inc. and other affiliated broker-dealers have been approved as borrowers under the Funds’ securities lending program. UBS Securities LLC is the lending agent for each Fund. For the six months ended December 31, 2007, UBS Securities LLC earned $336,277 and $48,977 in compensation from the Money Market Portfolio and the U.S. Government Portfolio, respectively, as the Funds’ lending agent. At December 31, 2007, the Money Market Portfolio and U.S. Government Portfolio owed UBS Securities LLC $119,454 and $5,765, respectively, in compensation as the Funds’ lending agent. At December 31, 2007, the Money Market Portfolio and U.S. Government Portfolio had securities on loan having a market value of $200,203,875 and $119,251,075, respectively. The U.S. Government Portfolio’s custodian held US Government agency securities having an aggregate value of $123,204,420 as collateral for portfolio securities loaned as follows:
Principal amount (000) | Maturity dates | Interest rates | Value | ||||||
| $29,710 | Federal Home Loan Bank | 08/22/25 | 6.000 | % | $30,298,258 | ||||
| 23,650 | Federal National Mortgage Association | 09/15/09 | 6.625 | 25,282,251 | |||||
| 35,203 | Federal National Mortgage Association | 05/12/16 | 6.070 | 35,637,051 | |||||
| 30,410 | Federal National Mortgage Association | 06/07/22 | 5.780 | 31,986,860 | |||||
| $123,204,420 |
RMA Tax-Free, RMA California, RMA New York and RMA New Jersey did not loan any securities during the six months ended December 31, 2007.
Bank line of credit
RMA Tax-Free participates with certain other funds managed, advised or sub-advised by UBS Global AM in a $100 million committed credit facility
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UBS RMA
Notes to financial statements (unaudited)
with State Street Bank and Trust Company (“Committed Credit Facility”), to be utilized for temporary financing until the settlement of sales or purchases of portfolio securities, the repurchase or redemption of shares of RMA Tax-Free at the request of shareholders and other temporary or emergency purposes. Under the Committed Credit Facility arrangement, RMA Tax-Free has agreed to pay commitment fees, pro rata, based on the relative asset size of the funds in the Committed Credit Facility. Interest will be charged to RMA Tax-Free at the overnight federal funds rate in effect at the time of borrowings, plus 0.50%. For the six months ended December 31, 2007, RMA Tax-Free had an average daily amount of outstanding borrowing of $5,717,961 for 14 days with a related weighted average annualized interest rate of 5.22%, which resulted in $11,607 of interest expense.
Other liabilities and components of net assets
At December 31, 2007, the Funds had the following liabilities outstanding:
| Dividends payable | Loan Payable | Payable for investments purchased | Payable for cash collateral from securities loaned | Other accrued expenses* | ||||||
| Money Market Portfolio | $14,266,460 | — | — | $206,206,251 | $1,553,059 | |||||
| U.S. Government Portfolio | 1,096,847 | — | — | 888,290 | 132,014 | |||||
| RMA Tax-Free | 3,883,332 | $22,588,744 | $93,135,975 | — | 406,648 | |||||
| RMA California | 840,749 | — | 38,843,235 | — | 114,297 | |||||
| RMA New York | 629,668 | — | 41,110,978 | — | 106,946 | |||||
| RMA New Jersey | 138,642 | — | — | — | 67,628 |
| * | Excludes investment advisory and administration, service and securities lending fees. |
At December 31, 2007, the components of net assets for each of the Funds were as follows:
Accumulated paid in capital | Accumulated net realized gain | Total net assets | ||||
| Money Market Portfolio | $16,026,638,875 | $1,354,074 | $16,027,992,949 | |||
| U.S. Government Portfolio | 1,614,768,964 | 113,025 | 1,614,881,989 | |||
| RMA Tax-Free | 6,322,705,737 | 236,350 | 6,322,942,087 | |||
| RMA California | 1,469,118,145 | 85,064 | 1,469,203,209 | |||
| RMA New York | 1,080,836,157 | 38,786 | 1,080,874,943 | |||
| RMA New Jersey | 273,449,474 | 14,057 | 273,463,531 |
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UBS RMA
Notes to financial statements (unaudited)
Federal tax status
Each 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 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, 2007 and the fiscal year ended June 30, 2007 was ordinary income. The tax character of all distributions paid to shareholders by RMA Tax-Free, RMA California, RMA New York and RMA New Jersey during the six months ended December 31, 2007 and the fiscal year ended June 30, 2007 was tax-exempt income.
The components of accumulated earnings (deficit) on a tax basis for the current fiscal year will be determined after the Funds’ fiscal year ending June 30, 2008.
At June 30, 2007, the following Funds had net capital loss carryforwards available as reductions, to the extent provided in the regulations, of any future net realized capital gains. These losses expire as follows:
Fiscal ending | Money Market Portfolio | U.S. Government Portfolio | RMA Tax-Free | RMA California | RMA New York | RMA New Jersey | ||||||
| 2011 | — | — | — | — | — | $30 | ||||||
| 2012 | — | $49,241 | — | — | — | — | ||||||
| 2013 | $1,117,507 | 34,572 | $175 | — | $616 | 253 | ||||||
| 2014 | — | 69,517 | — | — | — | 657 | ||||||
| 2015 | — | — | 345 | — | — | — | ||||||
| $1,117,507 | $153,330 | $520 | — | $616 | $940 |
In accordance with US Treasury regulations, RMA Tax-Free has elected to defer realized capital losses of $15,285, arising after October 31, 2006. Such losses are treated for tax purposes as arising on July 1, 2007.
The Funds adopted the provisions of Financial Accounting Standards Board Interpretation No. 48 (“FIN 48”), “Accounting for Uncertainty in Income
| 118 |
UBS RMA
Notes to financial statements (unaudited)
Taxes.” The implementation of FIN 48 resulted in no material liability for unrecognized tax benefits and no material change to the beginning net asset value of the Funds.
As of and during the period ended December 31, 2007, the Funds did not have a liability for any unrecognized tax benefits. The Funds recognize interest and penalties, if any, related to unrecognized tax benefits as income tax expense in the Statement of operations. During the period, the Funds did not incur any interest or penalties.
Each of the tax years in the three year period ended December 31, 2007, remains subject to examination by the Internal Revenue Service and state taxing authorities. The adoption of FIN 48 had no impact on the operations of the Funds for the year ended December 31, 2007.
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, 2007: | Money Market Portfolio | U.S. Government Portfolio | RMA Tax-Free | ||||||
| Shares sold | 83,665,400,699 | 6,514,171,051 | 28,709,611,446 | ||||||
| Shares repurchased | (81,081,517,372 | ) | (5,951,155,006 | ) | (27,370,502,163 | ) | |||
| Dividends reinvested | 304,742,601 | 24,491,830 | 80,693,527 | ||||||
Net increase in shares outstanding | 2,888,625,928 | 587,507,875 | 1,419,802,810 |
For the year ended June 30, 2007: | Money Market Portfolio | U.S. Government Portfolio | RMA Tax-Free | ||||||
| Shares sold | 154,676,730,641 | 9,531,666,788 | 47,733,271,766 | ||||||
| Shares repurchased | (152,733,375,670 | ) | (9,393,420,823 | ) | (46,526,121,650 | ) | |||
| Dividends reinvested | 566,881,928 | 43,423,842 | 130,397,702 | ||||||
Net increase in shares outstanding | 2,510,236,899 | 181,669,807 | 1,337,547,818 |
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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, RMA New York and RMA New Jersey. Transactions in shares of beneficial interest, at $1.00 per share were as follows:
For the six months ended December 31, 2007: | RMA California | RMA New York | RMA New Jersey | ||||||
| Shares sold | 7,384,664,495 | 5,188,797,492 | 1,333,263,370 | ||||||
| Shares repurchased | (7,162,342,182 | ) | (4,953,787,558 | ) | (1,242,334,425 | ) | |||
| Dividends reinvested | 18,132,840 | 13,266,642 | 2,798,612 | ||||||
Net increase in shares outstanding | 240,455,153 | 248,276,576 | 93,727,557 |
For the year ended June 30, 2007: | RMA California | RMA New York | RMA New Jersey | ||||||
| Shares sold | 13,201,265,615 | 8,986,531,965 | 2,282,954,970 | ||||||
| Shares repurchased | (12,944,336,356 | ) | (8,786,992,178 | ) | (2,242,596,102 | ) | |||
| Dividends reinvested | 30,133,040 | 20,352,987 | 4,726,977 | ||||||
Net increase in shares outstanding | 287,062,299 | 219,892,774 | 45,085,845 |
Subsequent event—Reimbursement for postage related charges:
After the close of the fiscal period covered by this report, each Fund was reimbursed by UBS Financial Services Inc. in the amounts indicated below for prior year overcharges for postage related expenses:
| Money Market Portfolio | $877,352 | |
| U.S. Government Portfolio | 29,175 | |
| RMA Tax-Free | 49,815 | |
| RMA California | 11,143 | |
| RMA New York | 9,385 | |
| RMA New Jersey | 2,454 |
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UBS RMA
General information (unaudited)
Quarterly Form N-Q portfolio schedules
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.
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).
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Board approval of the investment advisory and administration contracts and sub-advisory and sub-administration contracts (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”), UBS Managed Municipal Trust (“Managed Municipal Trust”) and UBS Municipal Money Market Series (“Municipal Money Trust”) on July 18, 2007, the members of each board, including the board members who are not “interested persons” of RMA Money Fund, RMA Tax-Free Fund Managed Municipal Trust or Municipal Money 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 Contracts for the funds as follows: the board of RMA Money Fund approved the continuance of the Investment Advisory and Administration Contract between RMA Money Fund and UBS Financial Services Inc. (“UBS Financial Services”) with respect to each of UBS RMA Money Market Portfolio and UBS RMA U.S. Government Portfolio (each a “Portfolio” and together the “Portfolios”); the board of RMA Tax-Free Fund approved the continuance of the Investment Advisory and Administration Contract between RMA Tax-Free Fund and UBS Financial Services; the board of Managed Municipal Trust approved the continuance of the Investment Advisory and Administration Contract between Managed Municipal Trust and UBS Financial Services with respect to each of UBS RMA California Municipal Money Fund and UBS RMA New York Municipal Money Fund; and the board of Municipal Money Trust approved the continuance of the Investment Advisory and Administration Contract between Municipal Money Trust and UBS Financial Services with respect to UBS RMA New Jersey Municipal Money Fund (UBS RMA California Municipal Money Fund, UBS RMA New York Municipal Money Fund and UBS RMA New Jersey Municipal Money Fund, each a “Municipal Fund” and together with the Portfolios and the RMA Tax-Free Fund, each a “Fund” and together the “Funds”). In addition, each board approved the continuation of the Sub-Advisory and Sub-Administration Agreement between UBS Financial Services and UBS Global Asset Management (Americas) Inc. with respect to each Fund it oversees. Although the board members of RMA Money Fund, RMA Tax-Free Fund, Managed Municipal Trust and Municipal Money Trust met together, each board made decisions independently with respect to the Funds overseen by it. In preparing for the meeting, the board members had requested and received information from UBS Financial Services and UBS Global AM to assist them, including performance and expense information for other investment companies with similar investment objectives. Each board received and considered a variety of information about UBS Financial Services and UBS Global AM, as well as the advisory, sub-advisory,
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Board approval of the investment advisory and administration contracts and sub-advisory and sub-administration contracts (unaudited) (continued)
administrative, sub-administrative and distribution arrangements for each Fund overseen by it. In addition, one of the Independent Board Members and legal counsel to the Independent Board Members met several times with management and representatives of PricewaterhouseCoopers LLP (“PwC”) to discuss management’s proposed profitability methodology and made suggestions for changes to the methodology. As a result of management’s focus on the profitability methodology and this series of meetings, the Independent Board Members received extensive information on UBS Global AM’s profitability, a report from management on the methodology used and a report from PwC on industry practices with respect to profitability methodology. Each board received materials detailing the administrative and sub-administrative services provided to each Fund overseen by it by UBS Financial Services and UBS Global AM, respectively, which include providing accounting and financial analysis, ensuring that all financial and tax regulatory reporting requirements are met, certifying required Securities and Exchange Commission documentation and monitoring the performance of the Fund’s service providers.
The Independent Board Members also met for several hours the evening before the board meeting to discuss matters related to the Funds and other funds subject to their oversight and met again after management’s presentation was completed to review the disclosure that had been made to them at the meeting. At all of these sessions the Independent Board Members met in session with their independent legal counsel. The Independent Board Members also received a memorandum from their independent legal counsel discussing the duties of board members in considering approval of advisory, administration, distribution and service agreements.
In its consideration of the approval of the Investment Advisory and Administration Contracts and Sub-Advisory and Sub-Administration Contracts, each board considered the following factors:
Nature, extent and quality of the services under the investment advisory and administration contracts and the sub-advisory and sub-administration contracts—Each board received and considered information regarding the nature, extent and quality of management and sub-advisory services provided to each Fund overseen by it by UBS Financial Services under the applicable Investment Advisory and Administration Contract and UBS Global AM under the applicable Sub-Advisory and Sub-
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Board approval of the investment advisory and administration contracts and sub-advisory and sub-administration contracts (unaudited) (continued)
Administration Contract during the past year. Each board also received a description of the administrative and other services rendered to each Fund overseen by it and its shareholders by management, including in particular UBS Financial Services’ oversight of UBS Global AM’s provision of sub-advisory and sub-administration services. Each board noted that information received at regular meetings throughout the year related to the services rendered by UBS Financial Services concerning the management of each Fund’s affairs and UBS Financial Services’ role in overseeing UBS Global AM’s provision of sub-advisory and sub-administrative services to the Funds and management’s role in coordinating providers of other services to the Funds, including custody, accounting and transfer agency services. Each board’s evaluation of the services provided by UBS Financial Services and UBS Global 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 Financial Services’ and UBS Global AM’s investment management, sub-advisory and other capabilities and the quality of management’s administrative, sub-administrative and other services. Each board observed that the scope of services provided by management had expanded over time as a result of regulatory and other developments, including maintaining and monitoring UBS Global AM’s own and the Funds’ expanded compliance programs.
The boards had available to them the qualifications, backgrounds and responsibilities of each Fund’s senior personnel and the persons primarily responsible for the day-to-day portfolio management of each Fund and recognized that many of these persons report to the board regularly and that at each regular meeting the boards receive a detailed report on each Fund’s performance. The boards also considered, based on their knowledge of UBS Financial Services, UBS Global AM and their affiliates, the financial resources available to management and its parent organization, UBS AG. In that regard, the boards received extensive financial information regarding UBS Financial Services and UBS Global AM and noted that they are wholly owned, indirect subsidiaries of one of the largest financial services firms in the world. It was also noted that UBS Global AM, the sub-advisor, had well over $100 billion in assets under management and was part of the UBS Global Asset Management Division, which had over $700 billion of assets under management worldwide as of June 2007. In addition, management reported to the boards on, among other things, its disaster recovery plans and portfolio manager compensation plan.
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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 Contract and its Sub-Advisory and Sub-Administration Contract.
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 Financial Services in light of the nature, extent and quality of the advisory and administrative services provided by UBS Financial Services. Each board also reviewed and considered any fee waiver arrangement implemented and considered the actual fee rate for each Fund overseen by that board (after taking any waivers and reimbursements into account) (the “Actual Management Fee”). Each board also received and considered information comparing the applicable Fund’s Contractual Management Fee, Actual Management Fee and overall 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”).
In connection with its consideration of management fees for UBS funds generally, each board also received information from UBS Global AM with respect to fees paid by institutional or separate accounts but, 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 were not subject to all of the constraints of Rule 2a-7 under the 1940 Act to which the Funds are subject and, therefore, were not totally comparable. The boards also received information on fees charged to other funds managed by UBS Financial Services and sub-advisory fees payable to UBS Global AM.
The boards did not receive comparative information from Lipper with respect to the Funds’ sub-advisory and sub-administration fees (together, each a “Sub-Advisory Fee”). The boards noted that the compensation paid to UBS Global AM is paid by UBS Financial Services, not the Funds, and, accordingly, that the retention of UBS Global AM does not increase the fees otherwise incurred by the Funds’ shareholders.
UBS RMA Money Market Portfolio
Management noted to the board that the Portfolio and UBS Financial Services Inc. have entered into a written fee waiver agreement pursuant to which UBS Financial Services Inc. is contractually obligated to waive a portion of its management fees and/or reimburse the Portfolio so that the
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Portfolio’s aggregate management and service fees do not exceed 0.50%, for as long as the shareholder services plan between the Portfolio and UBS Global AM remains in effect.
The comparative Lipper information showed that the Portfolio’s Contractual Management Fee and its total expenses were in the second quintile and its Actual Management Fee was in the third quintile for its Expense Group for the comparison periods utilized in the Lipper report (with the first quintile representing that fifth of the funds in the Expense Group with the lowest level of fees or expenses, as applicable, and the fifth quintile representing that fifth of the funds in the Expense Group with the highest level of fees or expenses, as applicable).
UBS RMA U.S. Government Portfolio
The comparative Lipper information showed that the Portfolio’s Contractual Management Fee and its total expenses were in the third quintile and its Actual Management Fee was in the fourth quintile for its Expense Group for the comparison periods utilized in the Lipper report.
UBS RMA Tax-Free Fund
The comparative Lipper information showed that RMA Tax-Free Fund’s Contractual Management Fee was in the fourth quintile and that its Actual Management Fee and total expenses were in the third quintile for its Expense Group for the comparison periods utilized in the Lipper report. Although the board noted that the Contractual Management Fee was in the fourth quintile of the Tax-Free Fund’s Expense Group, the board focused on the Tax-Free Fund’s Actual Management Fee and its total expenses, which were in the third quintile of the Tax-Free Fund’s Expense Group. In addition, management noted to the board that the Tax-Free Fund’s Contractual Management Fee was very close to the Expense Group’s median.
UBS RMA California Municipal Money Fund
The comparative Lipper information showed that this Municipal Fund’s Contractual Management Fee was in the first quintile and its Actual Management Fee and total expenses were in the third quintile for its Expense Group for the comparison periods utilized in the Lipper report.
UBS RMA New York Municipal Money Fund
The comparative Lipper information showed that this Municipal Fund’s Contractual Management Fee was in the second quintile and its Actual
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Management Fee and total expenses were in the fourth quintile for its Expense Group for the comparison periods utilized in the Lipper report. Management also noted that although this Municipal Fund’s total expenses were in the fourth quintile, its total expenses were very close to the Expense Group median.
UBS RMA New Jersey Municipal Money Fund
The comparative Lipper information showed that this Municipal Fund’s Contractual Management Fee was in the second quintile, its Actual Management Fee was in the fourth quintile and total expenses were in the fifth quintile for its Expense Group for the comparison periods utilized in the Lipper report. Management explained to the board that although this Municipal Fund’s Contractual Management Fee contained breakpoints, the relatively high level of total expenses was in part the result of the Municipal Fund’s small size, which did not reach the first management fee breakpoint. Management reminded the board that at the July 2006 contract reconsideration meeting it had agreed to reduce its management fee at each breakpoint by 5 basis points effective August 1, 2006. Management noted that this reduction helped bring the Actual Management Fee closer to the Expense Group median; it also noted that the full effect of this reduction may not be reflected in the Lipper data given when the fee reduction became effective.
Taking all of the above into consideration, each board determined that the management fee and Sub-Advisory Fee for each Fund overseen by it were reasonable in light of the nature, extent and quality of the services provided to the applicable Fund under its Investment Advisory and Administration Contract and Sub-Advisory and Sub-Administration Contract.
Fund performance—The board of each Fund received and considered (a) annualized total return information of the 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, 2007 and (b) annualized performance information for each year during the past ten-years of the Fund through April 30, 2007. 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. Each board also noted that it had received information throughout the year at periodic intervals with respect to each Fund’s performance.
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Board approval of the investment advisory and administration contracts and sub-advisory and sub-administration contracts (unaudited) (continued)
UBS RMA Money Market Portfolio
The comparative Lipper information showed that the Portfolio’s performance was in the second quintile for each of the periods shown (with the first quintile representing that fifth of the funds in the Performance Universe with the highest performance and the fifth quintile representing that fifth of the funds in the Performance Universe with the lowest performance). Based on its review, the board concluded that the Portfolio’s investment performance was satisfactory.
UBS RMA U.S. Government Portfolio
The comparative Lipper information showed that the Portfolio’s performance was in the third quintile for the one-, three-and ten-year periods and since inception period and in the second quintile for the five-year period. Based on its review, the board concluded that the Portfolio’s investment performance was satisfactory.
UBS RMA Tax-Free Fund
The comparative Lipper information showed that RMA Tax-Free Fund’s performance was in the second quintile for the one-, three and five-year periods, the third quintile for the ten-year period and the fourth quintile for the since inception period. Based on its review, the board concluded that RMA Tax-Free Fund’s investment performance was satisfactory.
UBS RMA California Municipal Money Fund, UBS RMA New York Municipal Money Fund and UBS RMA New Jersey Municipal Money Fund
For RMA California Municipal Money Fund, the comparative Lipper information showed that the Fund’s performance was in the fourth quintile for the one-, three- and five-year periods and since inception and the fifth quintile for the ten-year period. For RMA New York Municipal Money Fund, the comparative Lipper information showed that the Fund’s performance was in the fourth quintile for the one-, three- and five- year periods and the fifth quintile for the ten-year and since inception periods. For RMA New York Municipal Money Fund, the comparative Lipper information showed that the Fund’s performance for the one-year period was in the fourth quintile and in the fifth quintile for the three-, five- and ten-year and since inception periods.
Management explained that, in comparison with its Performance Universe, each Municipal Fund’s portfolio was generally of higher overall credit quality and contained relatively little exposure to positions subject to the
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alternative minimum tax (“AMT”). In addition, management noted that each Municipal Fund’s portfolio had been maintaining a shorter average weighted maturity than many of its peers. Management explained that the investment management decision to stay heavily weighted at the short end of the yield curve as well as holding more short-term floating rate obligations was based on each Municipal Fund’s portfolio manager’s forecast of future interest rates and a balance between performance, safety and liquidity. These portfolio management decisions resulted in a lower yield over time when compared to each Municipal Fund’s Performance Group. Management also noted that, as California, New York and New Jersey are relatively high tax states, many Performance Group peers that may have a less sensitive (or not as affluent) client base hold significant exposures to AMT investments. Management explained that the yield differentials between AMT investments and non-AMT investments were frequently a leading reason for each Municipal Fund’s lower quintile placement. Based on its review and management’s explanation, the board concluded that each Municipal Fund’s investment performance was satisfactory.
Economies of scale—Each board received and considered information from management regarding whether there have been economies of scale with respect to the management of each Fund, 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.
Each board noted that each Fund’s Contractual Management Fee, after giving effect to the contractual waivers, contained breakpoints. The relevant boards considered that each Fund’s (with the exception of UBS RMA New Jersey Municipal Money Fund) asset level exceeded the breakpoints, 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. Accordingly, each board determined that economies of scale were passed on to shareholders in the form of breakpoints to the management fee for each of these Funds. With respect to UBS RMA New Jersey Municipal Money Fund, the board noted that the Fund had not yet reached the specified asset level at which a breakpoint to its Contractual Management Fee would be triggered, and therefore the Fund’s breakpoints reflected the potential for sharing economies of scale with shareholders if the Fund grows. Each board also noted that each Fund may experience other
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economies of scale as its asset levels fluctuate as certain expenses, such as fees for board members, auditors and legal fees, become a smaller percentage of overall assets if each Fund’s assets increased. Each board also noted that each Fund’s Sub-Advisory Fee did not contain breakpoints but also that, as the Sub-Advisory Fee is paid by UBS Financial Services, not the Funds, separate considerations of economies of scale with respect to the Sub-Advisory Fee were not relevant.
Generally, in light of UBS Financial Services’ profitability data, management fee, and the breakpoints currently in place, each board believed that UBS Financial Services’ sharing of current economies of scale with each Fund it oversees was acceptable.
Other benefits to UBS Global AM—The boards considered other benefits received by UBS Financial Services, UBS Global AM and their affiliates as a result of their relationship with the Funds, including the opportunity to offer additional products and services to Fund shareholders. In light of the costs of providing investment management, sub-advisory, administrative, sub-administrative and other services to the Funds and UBS Financial Services’ and UBS Global AM’s ongoing commitment to the Funds, the profits and other ancillary benefits that UBS Financial Services and its affiliates received were considered reasonable. In light of all of the foregoing, each board approved the Investment Advisory and Administration Contract and the Sub-Advisory and Sub-Administration Contract for each Fund overseen by it to continue for another year.
In making their decisions, the boards identified no single factor as being determinative in approving the Investment Advisory and Administration Contracts and the Sub-Advisory and Sub-Administration Contracts. Throughout the process, the Independent Board Members were advised by separate independent legal counsel. The boards discussed the proposed continuance of the Investment Advisory and Administration Contracts and the Sub-Advisory and Sub-Administration Contracts in a private session with their independent legal counsel at which no representatives of UBS Financial Services or UBS Global 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 | |
Principal Officers | ||
Kai R. Sotorp President
Mark F. Kemper Vice President and Secretary
Thomas Disbrow Vice President and Treasurer | Michael H. Markowitz Vice President (Taxable Funds)
EIbridge T. Gerry III Vice President (Tax-Free Funds) | |
Investment Advisor and Administrator
UBS Financial Services Inc.
1285 Avenue of the Americas
New York, New York 10019-6028
Sub-Advisor and Sub-Administrator
UBS Global Asset Management (Americas) Inc.
51 West 52nd Street
New York, New York 10019-6114
Principal Underwriter
UBS Global Asset Management (US) Inc.
51 West 52nd Street
New York, New York 10019-6114
The financial information included herein is taken from the records of the Funds without examination by independent 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.
©2008 UBS Global Asset Management (Americas) Inc. All rights reserved.
 |  |
UBS Global Asset Management (Americas) Inc.
51 West 52nd Street
New York, New York 10019
| Item 2. | Code of Ethics. |
Form N-CSR disclosure requirement not applicable to this filing of a semi-annual report.
| Item 3. | Audit Committee Financial Expert. |
Form N-CSR disclosure requirement not applicable to this filing of a semi-annual report.
| Item 4. | Principal Accountant Fees and Services. |
Form N-CSR disclosure requirement not applicable to this filing of a semi-annual report.
| Item 5. | Audit Committee of Listed Registrants. |
Not applicable to the registrant.
| Item 6. | Schedule of Investments. |
Included as part of the report to shareholders filed under Item 1 of this form.
| Item 7. | Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies. |
Not applicable to the registrant.
| Item 8. | Portfolio Managers of Closed-End Management Investment Companies. |
Not applicable to the registrant.
| Item 9. | Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers. |
Not applicable to the registrant.
| Item 10. | Submission of Matters to a Vote of Security Holders. |
The registrant’s Board has established a Nominating and Corporate Governance Committee. The Nominating and Corporate Governance Committee will consider nominees recommended by shareholders if a vacancy occurs among those board members who are not “interested persons” as defined in Section 2(a)(19) of the Investment Company Act of 1940, as amended. In order to recommend a nominee, a shareholder should send a letter to the chairperson of the Nominating and Corporate Governance Committee, Richard R. Burt, care of the Secretary of the registrant at UBS Global Asset Management (Americas) Inc., 51 West 52nd Street, New York, New York 10019-6114, and indicate on the envelope “Nominating and Corporate Governance Committee.” The shareholder’s letter should state the nominee’s name and should include the nominee’s resume or curriculum vitae, and must be accompanied by a written consent of the individual to stand for election if nominated for the Board and to serve if elected by shareholders.
| Item 11. | Controls and Procedures. |
| (a) | The registrant’s principal executive officer and principal financial officer have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended) are effective based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of this document. |
| (b) | The registrant’s principal executive officer and principal financial officer are aware of no changes in the registrant’s internal control over financial reporting (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 that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting. |
| Item 12. | Exhibits. |
| (a) | (1) Code of Ethics – Form N-CSR disclosure requirement not applicable to this filing of a semi-annual report. |
| (a) | (2) Certifications of principal executive officer and principal financial officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 is attached hereto as Exhibit EX-99.CERT. |
| (a) | (3) Written solicitation to purchase securities under Rule 23c-1 under the Investment Company Act of 1940 sent or given during the period covered by the report by or on behalf of the registrant to 10 or more persons – not applicable to the registrant. |
| (b) | Certifications of principal executive officer and principal financial officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 is attached hereto as Exhibit EX-99.906CERT. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| UBS Managed Municipal Trust | ||
| By: | /s/ Kai R. Sotorp | |
| Kai R. Sotorp | ||
| President | ||
Date: March 7, 2008
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/ Kai R. Sotorp | |
| Kai R. Sotorp | ||
| President | ||
Date: March 7, 2008
| By: | /s/ Thomas Disbrow | |
| Thomas Disbrow | ||
| Vice President and Treasurer | ||
Date: March 7, 2008